Factor reversal test requires that the product of a price index and its corresponding quantity index equals: MCQ with Answer and Explanation

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Factor reversal test requires that the product of a price index and its corresponding quantity index equals:

A. Value index

B. Current year value

C. 1

D. Base year value

Answer: Option A

Solution (By JKSSB Mock Tests)

The product should equal the value ratio Σp₁q₁/Σp₀q₀, i.e., the value index.

This question belongs to: Accountancy and Statistics Statistics

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Question #1

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In a 2×2 contingency table for attributes, if (AB)=30, (Aβ)=20, (αB)=10, (αβ)=40, N is:

A. 100

B. 80

C. 90

D. 110

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Correct Answer: Option A

Explanation:
N = 30+20+10+40 = 100.

This question belongs to: Accountancy and Statistics Statistics

Question #2

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The Laspeyres price index is 120 and the Paasche price index is 110. Fisher's index is:

A. 115.5

B. 114.89

C. 115.0

D. 113.0

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Correct Answer: Option B

Explanation:
√(120×110)=√13200≈114.89.

This question belongs to: Accountancy and Statistics Statistics

Question #3

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A questionnaire that allows the respondent to write answers in his own words contains:

A. Closed-ended questions

B. Open-ended questions

C. Multiple choice questions

D. Ranking questions

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Correct Answer: Option B

Explanation:
Open-ended questions allow free expression without predefined options.

This question belongs to: Accountancy and Statistics Statistics

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