Which of the following is true for an ideal index number? MCQ with Answer and Explanation

Question Report Error

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

A. It should use only base period weights.

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

C. It must be a simple average of relatives.

D. It should be easy to calculate.

Answer: Option B

Solution (By JKExamLibrary)

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

This question belongs to: Accountancy and Statistics Statistics

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Statistics Questions

Question #1 Report Error

A bag contains 5 white and 3 black balls. If one ball is drawn, the probability it is black is:

A. 3/5

B. 5/8

C. 1/8

D. 3/8

View Answer & Solution Discuss

Correct Answer: Option D

Explanation:
Total balls = 8. Favorable outcomes (black) = 3. Probability = 3/8.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

General Fertility Rate (GFR) relates live births to the number of women aged:

A. 20-40 years

B. 15-49 years

C. Above 50 years

D. All ages

View Answer & Solution Discuss

Correct Answer: Option B

Explanation:
GFR uses the female population in the reproductive age group 15-49 as denominator.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

The main purpose of classification is to:

A. Make data look attractive

B. Reduce the bulk of data and bring out similarities

C. Increase the volume of data

D. Remove all data

View Answer & Solution Discuss

Correct Answer: Option B

Explanation:
Classification organizes data into homogeneous groups for analysis.

This question belongs to: Accountancy and Statistics Statistics

Explore All Statistics MCQs