The factor reversal test links: MCQ with Answer and Explanation

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The factor reversal test links:

A. Two different base years

B. Price index and cost of living index

C. Time series and cross-sectional data

D. Price index and quantity index to the value ratio

Answer: Option D

Solution (By JKSSB Mock Tests)

It requires Price index × Quantity index = Value index.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1

Base shifting of an index number series is done to:

A. Calculate Fisher index

B. Change the base year to a more recent one

C. Convert chain base to fixed base

D. Adjust for quality changes

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Correct Answer: Option B

Explanation:
Base shifting allows comparison of index series by changing the reference period to a more relevant year.

This question belongs to: Accountancy and Statistics Statistics

Question #2

In the context of attributes, the notation (Aβ) represents:

A. Number having A and B

B. Number having A but not B

C. Number not having A but having B

D. Number not having A and not having B

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Correct Answer: Option B

Explanation:
β means not B.

This question belongs to: Accountancy and Statistics Statistics

Question #3

If the Neonatal Mortality Rate is 25 per 1,000 live births, this means:

A. 25 out of every 1,000 newborns die within the first 28 days

B. 25 mothers die per 1,000 births

C. Life expectancy is 25 years

D. 25% of infants die before age 1

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Correct Answer: Option A

Explanation:
NMR of 25 indicates that for every 1,000 live births, 25 infants die before reaching 28 days of age, highlighting risks in the immediate postnatal period.

This question belongs to: Accountancy and Statistics Statistics

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