The factor reversal test is satisfied by: MCQ with Answer and Explanation

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The factor reversal test is satisfied by:

A. Laspeyres index

B. Fisher index

C. Marshall-Edgeworth index

D. Paasche index

Answer: Option B

Solution (By JKSSB Mock Tests)

Only Fisher's ideal index satisfies both the time reversal and factor reversal tests.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1

The circular test is satisfied by:

A. Fisher index

B. Chain index using fixed weight price relatives

C. Both A and C

D. Fixed weight aggregates

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Correct Answer: Option C

Explanation:
Fixed weight aggregates and chain indices with consistent linking can satisfy circular test, while Fisher does not.

This question belongs to: Accountancy and Statistics Statistics

Question #2

If the Laspeyres price index is 125 and Paasche price index is 115, the Fisher index is:

A. 118.5

B. 119.83

C. 121.0

D. 120.0

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Correct Answer: Option B

Explanation:
F = √(125×115) = √14375 ≈ 119.83.

This question belongs to: Accountancy and Statistics Statistics

Question #3

Which of the following mortality measures uses a standard population?

A. Infant Mortality Rate

B. Standardized Death Rate

C. Crude Death Rate

D. Age-specific Death Rate

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Correct Answer: Option B

Explanation:
Standardized death rate applies age-specific rates to a standard age distribution.

This question belongs to: Accountancy and Statistics Statistics

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