Which index number is most commonly used to measure inflation and changes in the purchasing power of money for standard households? MCQ with Answer and Explanation

Which index number is most commonly used to measure inflation and changes in the purchasing power of money for standard households?
A. Consumer Price Index (Cost of Living Index)
B. Index of Industrial Production
C. Sensex
D. Wholesale Price Index
Answer: Option A
Solution (By JKExamLibrary)
The CPI (or Cost of Living Index) measures the average change in prices paid by consumers for a basket of goods and services.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1 Report Error
If P(A|B) > P(A), then:
A. B has a negative influence on A
B. A and B are mutually exclusive
C. B positively influences the probability of A
D. A and B are independent

Correct Answer: Option C


Explanation:
Conditional probability greater than unconditional indicates a positive association.

This question belongs to: Accountancy and Statistics Statistics
Question #2 Report Error
Wholesale Price Index (WPI) in India is compiled by:
A. Office of Economic Adviser, DPIIT
B. NSSO
C. CSO
D. Labour Bureau

Correct Answer: Option A


Explanation:
The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade compiles WPI.

This question belongs to: Accountancy and Statistics Statistics
Question #3 Report Error
Which of the following is a characteristic of a good question in a questionnaire?
A. Being clear and concise
B. Being double-barreled
C. Using ambiguous words
D. Asking personal questions first

Correct Answer: Option A


Explanation:
Clarity and conciseness prevent confusion.

This question belongs to: Accountancy and Statistics Statistics