Weighted index numbers are preferred over simple indices because they: MCQ with Answer and Explanation

Weighted index numbers are preferred over simple indices because they:
A. Are easier to calculate
B. Do not require quantity data
C. Always satisfy the circular test
D. Account for the relative importance of different items in the basket
Answer: Option D
Solution (By JKExamLibrary)
Weighted indices assign weights (e.g., expenditure shares) to reflect the economic significance of items, providing a more realistic measure of overall change than simple indices that treat all items equally.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1 Report Error
If P(A)=0.35, P(B)=0.55, and P(A∩B)=0.20, then P(A'∩B') is:
A. 0.30
B. 0.80
C. 0.10
D. 0.70

Correct Answer: Option A


Explanation:
P(A∪B)=0.35+0.55-0.20=0.70. P(A'∩B') = 1 - 0.70 = 0.30.

This question belongs to: Accountancy and Statistics Statistics
Question #2 Report Error
In the context of population studies, 'Fecundity' means:
A. Physiological maximum capacity to reproduce
B. Number of stillbirths
C. Actual number of live births
D. Death rate of women in childbirth

Correct Answer: Option A


Explanation:
Fecundity is the biological capability to bear children, whereas fertility is the actual realization of births.

This question belongs to: Accountancy and Statistics Statistics
Question #3 Report Error
The population growth rate (r) in demography is the difference between:
A. CBR and CDR plus net migration rate
B. CBR and CDR only
C. IMR and MMR
D. TFR and NRR

Correct Answer: Option A


Explanation:
Growth rate includes natural increase (CBR-CDR) and net migration.

This question belongs to: Accountancy and Statistics Statistics