Paasche's price index formula is: MCQ with Answer and Explanation

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Paasche's price index formula is:

A. Σp₁q₀ / Σp₀q₀ × 100

B. Σp₁q₁ / Σp₀q₀ × 100

C. Σp₁q₁ / Σp₀q₁ × 100

D. Σp₁(q₀+q₁) / Σp₀(q₀+q₁) × 100

Answer: Option C

Solution (By JKSSB Mock Tests)

Paasche index uses current period quantities: Σp₁q₁ / Σp₀q₁ × 100.

This question belongs to: Accountancy and Statistics Statistics

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Question #1

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The crude birth rate and crude death rate of a country are 18 and 6 per 1000. The rate of natural increase is:

A. 12 per 1000

B. 0.6%

C. 3%

D. 1.2%

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Correct Answer: Option A

Explanation:
RNI = 18-6 = 12 per 1000.

This question belongs to: Accountancy and Statistics Statistics

Question #2

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If the price index for 2021 (base 2020) is 110 and for 2022 (base 2021) is 105, the chain index for 2022 with base 2020 is:

A. 115.5

B. 115.0

C. 110.0

D. 105.0

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Correct Answer: Option A

Explanation:
Chain index = 110 × (105/100) = 115.5.

This question belongs to: Accountancy and Statistics Statistics

Question #3

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The geometric mean is not defined when any observation is:

A. Greater than 1

B. A fraction

C. Zero or negative

D. Positive

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Correct Answer: Option C

Explanation:
GM requires all values to be strictly positive; zero or negatives make it undefined.

This question belongs to: Accountancy and Statistics Statistics

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