The Laspeyres quantity index uses which price weights? MCQ with Answer and Explanation

The Laspeyres quantity index uses which price weights?
A. Geometric mean prices
B. Average prices
C. Base period prices
D. Current period prices
Answer: Option C
Solution (By JKSSB Mock Tests)
Laspeyres quantity index = Σ(q₁p₀)/Σ(q₀p₀) × 100, using base period prices (p₀) as weights to measure quantity changes holding prices constant at base levels.

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Practice More Statistics Questions

Question #1
For a dataset with values 2, 4, 8, 16, 32, the geometric mean is:
A. 8
B. 12
C. 10
D. 6

Correct Answer: Option A


Explanation:
Product = 32768. (32768)^(1/5) = 8 (since 8^5 = 32768).

This question belongs to: Accountancy and Statistics Statistics
Question #2
A set of values has mean 20. If each value is multiplied by 2 and then 5 is added, the new mean is:
A. 45
B. 25
C. 50
D. 40

Correct Answer: Option A


Explanation:
New mean = 2 × 20 + 5 = 45.

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Question #3
Which of the following is a direct method of collecting primary data?
A. Referring to old records
B. Observation method
C. Using internet databases
D. Reviewing literature

Correct Answer: Option B


Explanation:
Observation involves directly watching and recording behaviors.

This question belongs to: Accountancy and Statistics Statistics