The circular test is satisfied if an index allows comparison of period 2 with period 0 via period 1, i.e., P₀₁ × P₁₂ = P₀₂. Which index commonly fails this test?
Explanation:
Laspeyres index uses fixed base-period weights, so P₀₁ × P₁₂ ≠ P₀₂ in general due to weight rigidity, failing the circular test; Fisher's index satisfies it under certain conditions.
Explanation:
Mailed questionnaires often suffer from low return rates, and respondents who reply may differ systematically from non-respondents, introducing bias that is difficult to assess or correct.
Explanation:
Class midpoint = (Lower limit + Upper limit) / 2 = (20 + 30) / 2 = 25. This represents the central value of the class for calculations like mean in grouped data.
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