The time reversal test checks whether an index number yields consistent results when: MCQ with Answer and Explanation

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The time reversal test checks whether an index number yields consistent results when:

A. The formula is applied to different data

B. Weights are changed

C. Units are changed

D. The base and current periods are reversed

Answer: Option D

Solution (By JKExamLibrary)

The product of the forward and backward indices should be 1.

This question belongs to: Accountancy and Statistics Statistics

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Question #1 Report Error

Which of the following is true for an ideal index number?

A. It should be easy to calculate.

B. It must satisfy time reversal and factor reversal tests.

C. It must be a simple average of relatives.

D. It should use only base period weights.

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Correct Answer: Option B

Explanation:
Fisher's ideal index satisfies both tests; these are desirable properties.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

The literacy rate in India as per 2011 Census is:

A. 65.38%

B. 74.04%

C. 82.14%

D. 90.0%

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Correct Answer: Option B

Explanation:
The overall literacy rate was 74.04%.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

If two attributes have perfect positive association, then:

A. (AB) = 0

B. (αβ) = 0

C. (A) = (B)

D. (AB) = (A) = (B)

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Correct Answer: Option D

Explanation:
Perfect positive association means all A's are B's and all B's are A's, so (AB) equals both marginals.

This question belongs to: Accountancy and Statistics Statistics

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