Base year for constructing an index number should ideally be: MCQ with Answer and Explanation

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Base year for constructing an index number should ideally be:

A. The immediately preceding year

B. A normal year without extreme fluctuations

C. A year of war or economic crisis

D. The current year

Answer: Option B

Solution (By JKSSB Mock Tests)

A 'normal' base year avoids distortions in the index that would arise if the reference point was anomalous (e.g., drought, pandemic).

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1

A frequency polygon is drawn by joining:

A. Class limits with frequencies

B. Class midpoints with frequencies

C. Cumulative frequencies

D. Class boundaries with frequencies

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Correct Answer: Option B

Explanation:
Points are plotted at class midpoints and connected by straight lines.

This question belongs to: Accountancy and Statistics Statistics

Question #2

Which of the following is a principle of questionnaire design?

A. Ask personal questions at the beginning

B. Use double negatives

C. Use ambiguous terms

D. Maintain a logical flow from general to specific

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Correct Answer: Option D

Explanation:
Logical sequencing improves response quality and reduces dropout.

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Question #3

The mode can be located graphically using a:

A. Frequency polygon

B. Pie chart

C. Ogive

D. Histogram

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Correct Answer: Option D

Explanation:
In a histogram, the mode corresponds to the highest bar (modal class); for grouped data, the exact mode can be interpolated within this class using the histogram's geometry.

This question belongs to: Accountancy and Statistics Statistics

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