Time reversal test in index numbers implies that if the base and current periods are interchanged, the resulting index should be the ______ of the original. MCQ with Answer and Explanation

Question

Time reversal test in index numbers implies that if the base and current periods are interchanged, the resulting index should be the ______ of the original.

A. Reciprocal

B. Half

C. Square

D. Double

Answer: Option A

Solution (By JKSSB Mock Tests)

P₀₁ × P₁₀ = 1, i.e., they are reciprocals.

This question belongs to: Accountancy and Statistics Statistics

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Question #1

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Which of the following distributions will definitely have Mean < Median < Mode?

A. Positively skewed distribution

B. U-shaped distribution

C. Negatively skewed distribution

D. Symmetrical distribution

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Correct Answer: Option C

Explanation:
In a left-skewed (negative) distribution, extreme low values drag the mean down below the median and mode.

This question belongs to: Accountancy and Statistics Statistics

Question #2

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For a dataset with an outlier, the median is preferred over the mean because the median is:

A. Always an integer

B. Based on all observations

C. Less sensitive to extreme values

D. Easier to calculate

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Correct Answer: Option C

Explanation:
The median depends only on the middle observation(s) in ordered data, making it robust to outliers that can disproportionately influence the mean's value.

This question belongs to: Accountancy and Statistics Statistics