The time reversal test is satisfied if P₀₁ × P₁₀ = 1. This ensures: MCQ with Answer and Explanation

Question

Share Report Error

The time reversal test is satisfied if P₀₁ × P₁₀ = 1. This ensures:

A. Index uses base year weights

B. Index is free from time bias

C. Index satisfies factor reversal

D. Index is the geometric mean

Answer: Option B

Solution (By JKSSB Mock Tests)

Time reversal test checks that the index is symmetrical over time.

This question belongs to: Accountancy and Statistics Statistics

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Statistics Questions

Question #1

Which of the following is a direct source of demographic data?

A. Census

B. Sample surveys

C. All of the above

D. Vital registration

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
All are sources that provide demographic data, though census and registration are more traditional.

This question belongs to: Accountancy and Statistics Statistics

Question #2

Factor reversal test requires that the product of a price index and its corresponding quantity index equals:

A. Value index

B. 1

C. Base year value

D. Current year value

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
The product should equal the value ratio Σp₁q₁/Σp₀q₀, i.e., the value index.

This question belongs to: Accountancy and Statistics Statistics

Question #3

Which measure of central tendency is most appropriate for finding the typical salary in a company with a few very high earners?

A. Median

B. Mode

C. Harmonic mean

D. Mean

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Median is robust to outliers and better represents the typical salary.

This question belongs to: Accountancy and Statistics Statistics

Explore All Statistics MCQs