Chain base index numbers are advantageous when: MCQ with Answer and Explanation

Chain base index numbers are advantageous when:
A. Long-term trends with a stable base are needed
B. Calculating weighted averages of quantities
C. Data for the base period is unavailable
D. Short-term period-to-period changes are of primary interest
Answer: Option D
Solution (By JKSSB Mock Tests)
Chain base indices use the previous period as base, making them sensitive to recent changes and suitable for analyzing short-term fluctuations, though they complicate long-term comparisons.

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Practice More Statistics Questions

Question #1
In India, the registration of births and deaths is compulsory under:
A. The Constitution of India
B. The Registration of Births and Deaths Act, 1969
C. The Vital Statistics Act, 1971
D. The Census Act, 1948

Correct Answer: Option B


Explanation:
RBD Act, 1969 mandates registration.

This question belongs to: Accountancy and Statistics Statistics
Question #2
The term 'Demography' was first used by:
A. John Graunt
B. Thomas Malthus
C. Achille Guillard
D. Karl Pearson

Correct Answer: Option C


Explanation:
Achille Guillard coined the term 'Demography' in 1855 in his book 'Elements de Statistique Humaine'.

This question belongs to: Accountancy and Statistics Statistics
Question #3
The Laspeyres index formula is:
A. Σp₁q₀ / Σp₀q₀ × 100
B. Σp₁q₁ / Σp₀q₁ × 100
C. Σp₁q₁ / Σp₀q₀ × 100
D. √( Σp₁q₀/Σp₀q₀ × Σp₁q₁/Σp₀q₁ ) × 100

Correct Answer: Option A


Explanation:
Laspeyres uses base period weights.

This question belongs to: Accountancy and Statistics Statistics