Fisher's ideal index is called 'ideal' primarily because it: MCQ with Answer and Explanation

Fisher's ideal index is called 'ideal' primarily because it:
A. Satisfies both time reversal and factor reversal tests
B. Uses only current period data
C. Is the easiest to calculate
D. Ignores quantity changes
Answer: Option A
Solution (By JKSSB Mock Tests)
Fisher's index earns the 'ideal' label by mathematically satisfying two key consistency tests (time reversal and factor reversal), ensuring logical coherence in index number construction.

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Practice More Statistics Questions

Question #1
The arithmetic mean of 5 numbers is 20. If one number is excluded, the mean of the remaining 4 numbers becomes 18. The excluded number is:
A. 22
B. 20
C. 28
D. 30

Correct Answer: Option C


Explanation:
Sum of 5 numbers = 5 × 20 = 100. Sum of 4 numbers = 4 × 18 = 72. Excluded number = 100 - 72 = 28.

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Question #2
Perinatal Mortality Rate includes stillbirths from which gestational age?
A. 32 weeks
B. 28 weeks
C. 24 weeks
D. 20 weeks

Correct Answer: Option B


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Per WHO definition, perinatal mortality includes late fetal deaths (stillbirths) from 28 completed weeks of gestation and early neonatal deaths (first 7 days), capturing risks around birth.

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Question #3
The primary measure of inflation used by RBI for monetary policy is:
A. CPI (Combined)
B. Wholesale Price Index
C. Consumer food price index
D. GDP deflator

Correct Answer: Option A


Explanation:
RBI adopted the CPI (Combined) as the key measure of inflation for policy targets.

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