The Paasche index is weighted by: MCQ with Answer and Explanation

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The Paasche index is weighted by:

A. Base period prices

B. Base period quantities

C. Current period quantities

D. Fixed weights

Answer: Option C

Solution (By JKSSB Mock Tests)

Paasche price index uses current quantities as weights.

This question belongs to: Accountancy and Statistics Statistics

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Question #1

Chain base index numbers are advantageous when:

A. Short-term period-to-period changes are of primary interest

B. Data for the base period is unavailable

C. Long-term trends with a stable base are needed

D. Calculating weighted averages of quantities

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Correct Answer: Option A

Explanation:
Chain base indices use the previous period as base, making them sensitive to recent changes and suitable for analyzing short-term fluctuations, though they complicate long-term comparisons.

This question belongs to: Accountancy and Statistics Statistics

Question #2

Given P(A)=0.5, P(B)=0.3, P(A∩B)=0.1. Are A and B independent?

A. Yes, because P(A∩B)=P(A)P(B)

B. No, because 0.1 ≠ 0.15

C. Yes, because they are mutually exclusive

D. Cannot determine

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Correct Answer: Option B

Explanation:
P(A)P(B)=0.5×0.3=0.15 ≠ 0.1, so not independent.

This question belongs to: Accountancy and Statistics Statistics

Question #3

If the median of a data set is 50, it indicates that:

A. 50 is the most frequent value

B. The average value is 50

C. All values are 50

D. 50% of the values are less than or equal to 50

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Correct Answer: Option D

Explanation:
Median is the 50th percentile, dividing the data into two halves.

This question belongs to: Accountancy and Statistics Statistics

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