Which test of index numbers is violated by Laspeyres index? MCQ with Answer and Explanation

Question Report Error

Which test of index numbers is violated by Laspeyres index?

A. Factor reversal test

B. Time reversal test

C. Circular test

D. Unit test

Answer: Option B

Solution (By JKExamLibrary)

Laspeyres does not satisfy time reversal test; P₀₁(L) × P₁₀(L) ≠ 1.

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 random experiment has outcomes that are:

A. Predictable with certainty

B. Always equally likely

C. Impossible to list

D. Uncertain but with known possible outcomes

View Answer & Solution Discuss

Correct Answer: Option D

Explanation:
In a random experiment, individual outcomes are uncertain, but the set of all possible outcomes is known.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

TFR is considered a better measure of fertility than CBR because it:

A. Includes male population

B. Uses total population

C. Is simpler

D. Eliminates the effect of age structure

View Answer & Solution Discuss

Correct Answer: Option D

Explanation:
TFR is a synthetic measure that is independent of the population's age composition.

This question belongs to: Accountancy and Statistics Statistics

Question #3 Report Error

When rolling a fair die, the probability of getting a number greater than 4 is:

A. 1/2

B. 1/6

C. 1/3

D. 2/3

View Answer & Solution Discuss

Correct Answer: Option C

Explanation:
Numbers >4 are 5,6 → 2 out of 6 → probability = 1/3.

This question belongs to: Accountancy and Statistics Statistics

Explore All Statistics MCQs