The circular test is satisfied by which index number formula?
A. Simple aggregative
B. Laspeyres
C. Fisher's ideal
D. Paasche
Answer: Option C
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.
No comments yet. Be the first to start the discussion!