Index numbers are primarily used to: MCQ with Answer and Explanation

Index numbers are primarily used to:
A. Measure absolute values of economic variables
B. Compare relative changes in a variable or group of variables over time or space
C. Determine the mode of categorical data
D. Calculate the arithmetic mean of a dataset
Answer: Option B
Solution (By JKSSB Mock Tests)
Index numbers express relative changes in a variable (e.g., prices, quantities) compared to a base period or location, facilitating comparison of trends, inflation, or economic performance.

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Practice More Statistics Questions

Question #1
Crude birth rate for a population of 200,000 with 4,000 live births in a year is:
A. 20 per 1000
B. 2 per 1000
C. 0.2 per 1000
D. 50 per 1000

Correct Answer: Option A


Explanation:
CBR = (4000 / 200000) × 1000 = 0.02 × 1000 = 20 per 1000.

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Question #2
The value of a random variable that occurs with the highest frequency in a probability distribution is called the:
A. Median
B. Mode
C. Variance
D. Expected value

Correct Answer: Option B


Explanation:
By definition, the mode represents the most probable or most frequent outcome.

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Question #3
The total fertility rate in India is currently around replacement level (2.1). Which state has the highest TFR?
A. Kerala
B. Bihar
C. Tamil Nadu
D. West Bengal

Correct Answer: Option B


Explanation:
Bihar has one of the highest TFRs (around 3.0).

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