An index number constructed by taking the simple average of price relatives is called: MCQ with Answer and Explanation

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An index number constructed by taking the simple average of price relatives is called:

A. Weighted aggregative index

B. Chain index

C. Simple aggregative index

D. Simple average of relatives index

Answer: Option D

Solution (By JKSSB Mock Tests)

It is calculated as the arithmetic or geometric mean of individual price relatives.

This question belongs to: Accountancy and Statistics Statistics

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Question #1

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Consider the following statements about probability: 1. For any two events, P(A∪B) ≤ P(A) + P(B). 2. If A ⊆ B, then P(A) ≤ P(B). 3. For independent events, P(A|B) = P(A). Which of the above is/are correct?

A. 1, 2 and 3

B. 2 and 3 only

C. 1 and 2 only

D. 1 and 3 only

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Correct Answer: Option A

Explanation:
All are fundamental axioms/theorems of probability.

This question belongs to: Accountancy and Statistics Statistics

Question #2

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Which test of index numbers is violated by Laspeyres index?

A. Circular test

B. Time reversal test

C. Unit test

D. Factor reversal test

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Correct Answer: Option B

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

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Question #3

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If a variable can take only integer values, the data is:

A. Discrete

B. Continuous

C. Qualitative

D. Ordinal

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Correct Answer: Option A

Explanation:
Integer values are discrete.

This question belongs to: Accountancy and Statistics Statistics

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