Which of the following is NOT an application of the Consumer Price Index (CPI)? MCQ with Answer and Explanation

Which of the following is NOT an application of the Consumer Price Index (CPI)?

A. Measuring macroeconomic industrial output

B. Measuring inflation for households

C. Deflating income to find real income

D. Wage negotiations and determining Dearness Allowance

Answer: Option A

Industrial output is measured by the Index of Industrial Production (IIP). CPI measures the retail price impact on consumers.

This question belongs to: Accountancy and Statistics Statistics

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Question #1 Report Error

The factor reversal test requires that the product of a price index and a quantity index should equal:

A. 100

B. 1

C. The Fisher index

D. The value ratio (Σp₁q₁/Σp₀q₀)

Correct Answer: Option D

Explanation:
It ensures that the product of price and quantity indices equals the change in total value.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

If all observations are multiplied by a constant k, the geometric mean is multiplied by:

A. k/n

B. 1/k

C. k

D. k²

Correct Answer: Option C

Explanation:
GM of (kx) = k × GM of x, since GM(kx) = (kⁿ ∏x)^(1/n) = k (∏x)^(1/n).

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

A 'questionnaire' is said to be reliable if it:

A. Has many open-ended questions

B. Yields consistent results on repeated administration

C. Measures what it intends to measure

D. Is long and detailed

Correct Answer: Option B

Explanation:
Reliability refers to consistency of measurement.

This question belongs to: Accountancy and Statistics Statistics