The geometric mean is more appropriate than the arithmetic mean when the data are: MCQ with Answer and Explanation

The geometric mean is more appropriate than the arithmetic mean when the data are:
A. Multiplicative in nature (ratios, growth rates)
B. Negative
C. Qualitative
D. Additive in nature
Answer: Option A
Solution (By JKSSB Mock Tests)
GM is suited for averaging ratios because it reflects compounding.

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Practice More Statistics Questions

Question #1
Wholesale Price Index (WPI) in India primarily measures price changes for goods at which stage?
A. Factory gate before any distribution
B. Retail sale to consumers
C. First point of bulk sale in the market
D. Import at customs

Correct Answer: Option C


Explanation:
WPI tracks price movements of goods traded in bulk at the wholesale level (first point of mass sale), reflecting producer and wholesale market inflation, distinct from consumer-focused CPI.

This question belongs to: Accountancy and Statistics Statistics
Question #2
Chain base index numbers are calculated by:
A. Using geometric mean of prices only
B. Using the previous period as base for each link
C. Fixing one base period for all comparisons
D. Averaging fixed base indices

Correct Answer: Option B


Explanation:
Chain indices compute period-to-period changes (e.g., 2021/2020, 2022/2021) and chain them multiplicatively, allowing flexibility but complicating long-term interpretation due to changing bases.

This question belongs to: Accountancy and Statistics Statistics
Question #3
Total Fertility Rate (TFR) is a period measure that assumes:
A. Mortality rates remain constant
B. All women marry at the same age
C. Women will experience current age-specific fertility rates throughout their lives
D. Migration is zero

Correct Answer: Option C


Explanation:
TFR sums current ASFRs to estimate completed fertility for a hypothetical cohort, assuming no future changes in age-specific fertility behavior, making it a snapshot of current fertility intensity.

This question belongs to: Accountancy and Statistics Statistics