An index number measures changes in a variable relative to a: MCQ with Answer and Explanation

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An index number measures changes in a variable relative to a:

A. Base period value

B. Average value

C. Future value

D. Current value

Answer: Option A

Solution (By JKSSB Mock Tests)

Index numbers compare the current level to the base period level, usually expressed as percentage.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1

Which measure of central tendency minimizes the sum of absolute deviations?

A. Geometric mean

B. Arithmetic mean

C. Median

D. Mode

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Correct Answer: Option C

Explanation:
Median minimizes Σ|x - M|, while mean minimizes Σ(x - μ)².

This question belongs to: Accountancy and Statistics Statistics

Question #2

The mode of a dataset is the value that:

A. Is the minimum

B. Occurs most frequently

C. Lies in the middle

D. Is the average

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Correct Answer: Option B

Explanation:
Mode is the most common observation.

This question belongs to: Accountancy and Statistics Statistics

Question #3

Which measure of central tendency is not affected by extreme values?

A. Geometric mean

B. Arithmetic mean

C. Weighted mean

D. Median

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Correct Answer: Option D

Explanation:
The median depends only on the middle value(s) and is resistant to outliers.

This question belongs to: Accountancy and Statistics Statistics

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