The primary purpose of the Consumer Price Index (CPI) is to measure: MCQ with Answer and Explanation

Question
The primary purpose of the Consumer Price Index (CPI) is to measure:
A. Export price competitiveness
B. Changes in the retail prices of a fixed basket of consumer goods and services
C. Producer cost inflation
D. Wholesale market price trends
Answer: Option B
Solution (By JKSSB Mock Tests)
CPI tracks the average price change over time for a representative basket of goods and services purchased by households, serving as the main gauge of consumer inflation.
This question belongs to: Accountancy and Statistics Statistics
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Practice More Statistics Questions

Question #1
The time reversal test is satisfied if P₀₁ × P₁₀ = 1. This ensures:
A. Index is free from time bias
B. Index satisfies factor reversal
C. Index uses base year weights
D. Index is the geometric mean
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Correct Answer: Option A

Explanation:
Time reversal test checks that the index is symmetrical over time.
This question belongs to: Accountancy and Statistics Statistics
Question #2
A frequency polygon is a graph of:
A. Class boundaries against frequencies
B. Cumulative frequencies
C. Class frequencies against class midpoints
D. Class limits against frequencies
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Correct Answer: Option C

Explanation:
A frequency polygon plots class midpoints on the x‑axis and class frequencies on the y‑axis and joins them by straight lines.
This question belongs to: Accountancy and Statistics Statistics
Question #3
Data consistency in the theory of attributes requires that:
A. All class frequencies must equal N
B. Ultimate class frequencies must be positive or zero
C. Both A and C
D. No class frequency can be negative
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Correct Answer: Option C

Explanation:
For data to be consistent, no ultimate (or any) class frequency can be less than zero.
This question belongs to: Accountancy and Statistics Statistics
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