The circular test is satisfied by which index number formula? MCQ with Answer and Explanation

Question
The circular test is satisfied by which index number formula?
A. Paasche
B. Simple aggregative
C. Laspeyres
D. Fisher's ideal
Answer: Option D
Solution (By JKSSB Mock Tests)
Fisher's ideal index satisfies the circular test under certain conditions due to its geometric mean formulation, while Laspeyres and Paasche generally fail it due to fixed weight structures.
This question belongs to: Accountancy and Statistics Statistics
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Practice More Statistics Questions

Question #1
If the sum of 20 observations is 400, what is the Arithmetic Mean?
A. 200
B. 20
C. 40
D. 10
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Correct Answer: Option B

Explanation:
Mean = Sum of observations / Number of observations = 400 / 20 = 20.
This question belongs to: Accountancy and Statistics Statistics
Question #2
If Net Reproduction Rate (NRR) < 1, the population in the long run will:
A. Stabilize
B. Grow
C. Fluctuate unpredictably
D. Decline
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Correct Answer: Option D

Explanation:
NRR below 1 indicates that each generation is not replacing itself, leading to eventual population decline.
This question belongs to: Accountancy and Statistics Statistics
Question #3
The time reversal test is satisfied by which of the following weighted index formulas?
A. Paasche
B. Both A and C
C. Fisher
D. Laspeyres
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Correct Answer: Option C

Explanation:
Only Fisher's index satisfies time reversal; L and P do not.
This question belongs to: Accountancy and Statistics Statistics
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