The Paasche price index uses weights of: MCQ with Answer and Explanation

Question Report Error

The Paasche price index uses weights of:

A. Base period quantities

B. Fixed quantities

C. Current period quantities

D. Both base and current

Answer: Option C

Solution (By JKExamLibrary)

Paasche = Σp₁q₁ / Σp₀q₁ × 100, using current quantities.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1 Report Error

For a moderately skewed distribution, the difference between mean and mode is approximately:

A. 2 (Median - Mean)

B. 2 (Mean - Median)

C. 3 (Median - Mean)

D. 3 (Mean - Median)

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Correct Answer: Option D

Explanation:
From empirical relation: Mean - Mode ≈ 3(Mean - Median).

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

Weighted mean is preferred over simple arithmetic mean when:

A. All observations are equally important

B. The sample size is very small

C. Observations have different levels of importance or reliability

D. The data is qualitative

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Correct Answer: Option C

Explanation:
Weighted mean assigns different weights to observations based on their relative importance, providing a more accurate central value when some data points carry more significance than others.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

The harmonic mean of 1, 2, and 4 is:

A. 7/12

B. 7/3

C. 3/7

D. 12/7

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Correct Answer: Option D

Explanation:
HM = 3 / (1 + 1/2 + 1/4) = 3 / 1.75 = 12/7.

This question belongs to: Accountancy and Statistics Statistics

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