Which average is most appropriate for calculating average of ratios like price-earnings ratios? MCQ with Answer and Explanation

Which average is most appropriate for calculating average of ratios like price-earnings ratios?
A. Mode
B. Arithmetic mean
C. Median
D. Harmonic mean
Answer: Option D
Solution (By JKSSB Mock Tests)
When averaging rates where numerators are same, harmonic mean is appropriate.

Discuss this Question (0)

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

Practice More Statistics Questions

Question #1
The General Fertility Rate is affected by:
A. Total population size
B. Marital status distribution
C. Age structure of women of reproductive age
D. Both A and B

Correct Answer: Option D


Explanation:
GFR does not account for age-marital composition; thus it is influenced by the proportion of married women and age distribution within 15-49.

This question belongs to: Accountancy and Statistics Statistics
Question #2
Yule's coefficient of association Q is calculated using frequencies from a:
A. Frequency distribution table
B. Time series data
C. Scatter plot
D. 2×2 contingency table for two binary attributes

Correct Answer: Option D


Explanation:
Yule's Q = [(AB)(αβ) - (Aβ)(αB)] / [(AB)(αβ) + (Aβ)(αB)], requiring the four cell frequencies of a 2×2 table cross-classifying two dichotomous attributes.

This question belongs to: Accountancy and Statistics Statistics
Question #3
Which fertility measure accounts for the age structure of the female population in the reproductive age group?
A. General Fertility Rate
B. Gross Reproduction Rate
C. Age Specific Fertility Rate
D. Crude Birth Rate

Correct Answer: Option C


Explanation:
Age Specific Fertility Rate (ASFR) calculates fertility for specific age groups of women, removing the bias of age structure.

This question belongs to: Accountancy and Statistics Statistics