Chain base index numbers are particularly useful for analyzing:
A. Long-term structural changes
B. Short-term period-to-period fluctuations
C. International comparisons
D. Base year selection
Answer: Option B
Solution (By JKSSB Mock Tests)
Chain indices highlight recent changes by using the previous period as base, making them sensitive to short-term dynamics like monthly inflation, though less suitable for long-term trend analysis.
Assertion (A): In any probability distribution, P(A) + P(A') = 1. Reason (R): A and A' are mutually exclusive and exhaustive events. Choose the correct option:
A.Both A and R are true, and R is the correct explanation of A
B.A is false, R is true
C.Both A and R are true, but R is not the correct explanation of A
Explanation:
Fisher's ideal index, being the geometric mean of Laspeyres and Paasche indices, is the only common formula that satisfies both time reversal and factor reversal tests, ensuring mathematical consistency.
Explanation:
In exclusive class intervals, the upper limit is not included in the class; observations equal to the upper limit are counted in the next higher class to avoid overlap and ensure mutual exclusivity.
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