Base shifting in index numbers is commonly done when: MCQ with Answer and Explanation

Question

Share Report Error

Base shifting in index numbers is commonly done when:

A. Calculating geometric means

B. The base year becomes too old and irrelevant

C. Prices have dropped significantly

D. Switching from WPI to CPI

Answer: Option B

Solution (By JKSSB Mock Tests)

As consumption patterns change over time, old base years lose relevance, requiring 'base shifting' to a more recent period.

This question belongs to: Accountancy and Statistics Statistics

Request complete Subject PDF

Discuss this Question (0)

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

Practice More Statistics Questions

Question #1

For a positive dataset, if the harmonic mean is equal to the arithmetic mean, what can be concluded?

A. The data are symmetric

B. All values are equal

C. The median equals the mode

D. There is one outlier

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
For positive numbers, AM = GM = HM only when all values are identical.

This question belongs to: Accountancy and Statistics Statistics

Question #2

If P(A)=0.3, P(B)=0.5, and P(A∩B)=0.15, then A and B are:

A. Mutually exclusive

B. Dependent

C. Both mutually exclusive and independent

D. Independent

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
P(A)P(B) = 0.3×0.5 = 0.15 = P(A∩B), satisfying the condition for independence.

This question belongs to: Accountancy and Statistics Statistics

Question #3

Consumer Price Index (CPI) measures changes in:

A. Retail prices of a fixed basket of goods and services

B. Industrial production

C. Export prices

D. Wholesale prices

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
CPI tracks the average change over time in the prices paid by consumers for a market basket of goods and services.

This question belongs to: Accountancy and Statistics Statistics

Explore All Statistics MCQs