Laspeyres' price index formula uses which of the following as weights? MCQ with Answer and Explanation

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Laspeyres' price index formula uses which of the following as weights?

A. Average of base and current year quantities

B. Arbitrary quantities

C. Base year quantities

D. Current year quantities

Answer: Option C

Solution (By JKSSB Mock Tests)

Laspeyres' index uses base year quantities (q0) as weights to measure price changes.

This question belongs to: Accountancy and Statistics Statistics

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Question #1

Two events A and B are such that P(A)=0.5, P(B)=0.3, P(A∩B)=0.1. They are:

A. Mutually exclusive

B. Both mutually exclusive and independent

C. Independent

D. Neither mutually exclusive nor independent

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Correct Answer: Option D

Explanation:
P(A∩B)≠0 ⇒ not mutually exclusive. P(A)P(B)=0.15 ≠ 0.1 ⇒ not independent.

This question belongs to: Accountancy and Statistics Statistics

Question #2

The Paasche price index uses weights of:

A. Both base and current

B. Current period quantities

C. Fixed quantities

D. Base period quantities

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Correct Answer: Option B

Explanation:
Paasche = Σp₁q₁ / Σp₀q₁ × 100, using current quantities.

This question belongs to: Accountancy and Statistics Statistics

Question #3

Which of the following should be avoided in a good questionnaire?

A. Clear wording

B. Short questions

C. Double‑barreled questions

D. Logical sequence

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Correct Answer: Option C

Explanation:
A double‑barreled question asks about two issues at once, creating confusion. It should be avoided.

This question belongs to: Accountancy and Statistics Statistics

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