The geometric mean is more appropriate than the arithmetic mean when the data are: MCQ with Answer and Explanation

The geometric mean is more appropriate than the arithmetic mean when the data are:

A. Qualitative

B. Multiplicative in nature (ratios, growth rates)

C. Negative

D. Additive in nature

Answer: Option B

GM is suited for averaging ratios because it reflects compounding.

This question belongs to: Accountancy and Statistics Statistics

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Question #1 Report Error

Assertion (A): Median is better than Mean for skewed distributions. Reason (R): Median is entirely immune to extreme values.

A. Both A and R are true and R is the correct explanation

B. Both A and R are true but R is NOT the correct explanation

C. A is true but R is false

D. A is false but R is true

Correct Answer: Option A

Explanation:
Median is a positional average based on rank, so an extreme outlier does not shift the median's location.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

The primary measure of inflation used by RBI for monetary policy is:

A. Consumer food price index

B. Wholesale Price Index

C. GDP deflator

D. CPI (Combined)

Correct Answer: Option D

Explanation:
RBI adopted the CPI (Combined) as the key measure of inflation for policy targets.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

The Census of India 2011 was the:

A. 13th Census

B. 16th Census

C. 14th Census

D. 15th Census

Correct Answer: Option D

Explanation:
Since the first synchronous census in 1881, 2011 was the 15th decennial census.

This question belongs to: Accountancy and Statistics Statistics