The Family Budget Method for calculating the Consumer Price Index is equivalent to: MCQ with Answer and Explanation

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The Family Budget Method for calculating the Consumer Price Index is equivalent to:

A. Laspeyres' Method

B. Simple Aggregative Method

C. Paasche's Method

D. Fisher's Method

Answer: Option A

Solution (By JKSSB Mock Tests)

The family budget method (weighted average of price relatives) mathematically reduces to Laspeyres' formula (using base year weights).

This question belongs to: Accountancy and Statistics Statistics

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Question #1

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Assertion (A): The probability of an impossible event is zero. Reason (R): The sample space of an impossible event contains all outcomes.

A. A is false but R is true

B. Both A and R are true and R is the correct explanation of A

C. Both A and R are true but R is NOT the correct explanation of A

D. A is true but R is false

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Correct Answer: Option D

Explanation:
A is true, but R is false because the sample space (or favorable outcomes set) of an impossible event is the empty set (Φ).

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Question #2

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For a skewed distribution, which measure of central tendency is generally MOST resistant to extreme values?

A. Mode

B. Median

C. Arithmetic mean

D. Geometric mean

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Correct Answer: Option B

Explanation:
The median is the middle value when data is ordered, making it less affected by outliers or extreme values compared to the mean, which incorporates all values in its calculation.

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Question #3

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The census in India is conducted every:

A. 7 years

B. 10 years

C. 5 years

D. 12 years

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Correct Answer: Option B

Explanation:
India’s decennial census occurs every 10 years.

This question belongs to: Accountancy and Statistics Statistics

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