The formula for the Factor Reversal Test requires that the product of the price index and quantity index equals the: MCQ with Answer and Explanation

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The formula for the Factor Reversal Test requires that the product of the price index and quantity index equals the:

A. 1

B. Volume Index

C. Base Index

D. Value Index

Answer: Option D

Solution (By JKSSB Mock Tests)

Factor Reversal Test states P01 * Q01 = V01, meaning the product of price and quantity indices should equal the ratio of total values.

This question belongs to: Accountancy and Statistics Statistics

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Question #1

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If the arithmetic mean of 5 numbers is 20, and the arithmetic mean of another 3 numbers is 28, the combined mean of all 8 numbers is:

A. 24

B. 22

C. 23

D. 25

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Correct Answer: Option C

Explanation:
Combined mean = (5×20 + 3×28) / (5+3) = (100 + 84) / 8 = 184 / 8 = 23. This formula weights each group's mean by its size.

This question belongs to: Accountancy and Statistics Statistics

Question #2

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Which of the following is a function of census?

A. Collecting taxes

B. Conducting elections

C. Providing data on population size and characteristics

D. Issuing birth certificates

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Correct Answer: Option C

Explanation:
Census provides comprehensive demographic, social, and economic data.

This question belongs to: Accountancy and Statistics Statistics

Question #3

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In a continuous frequency distribution, the class interval '10-20' means the class includes:

A. Values from 10 up to but not including 20 (in an exclusive series)

B. Values greater than 20

C. Only the values 10 and 20

D. Values from 10 up to exactly 20

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Correct Answer: Option A

Explanation:
In standard exclusive class intervals, the lower limit is included, but the upper limit is excluded and falls into the next class.

This question belongs to: Accountancy and Statistics Statistics

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