Which formula fails the Factor Reversal Test? MCQ with Answer and Explanation

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Which formula fails the Factor Reversal Test?

A. Laspeyres' Index

B. Fisher's Ideal Index

C. Both B and C

D. Marshall-Edgeworth Index

Answer: Option C

Solution (By JKSSB Mock Tests)

Only Fisher's Ideal Index satisfies both the Time Reversal and Factor Reversal Tests; Laspeyres and Marshall-Edgeworth fail the factor test.

This question belongs to: Accountancy and Statistics Statistics

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Question #1

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A data set has a mean of 50 and a standard deviation of 5. If 3 is added to each value, the new coefficient of variation is:

A. 9.43%

B. 12%

C. 10%

D. Unchanged

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Correct Answer: Option A

Explanation:
New mean = 53, SD unchanged=5. CV = (5/53)×100 ≈ 9.43%.

This question belongs to: Accountancy and Statistics Statistics

Question #2

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The condition (A) ≥ (AB) is necessary for:

A. Consistency of data

B. Independence

C. Negative association

D. Zero association

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Correct Answer: Option A

Explanation:
Consistency requires that marginal frequencies are not less than the joint frequencies.

This question belongs to: Accountancy and Statistics Statistics

Question #3

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General Fertility Rate (GFR) is the number of live births per:

A. 1000 women of reproductive age (15-49)

B. 1000 total population

C. 1000 married women

D. 1000 live births

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Correct Answer: Option A

Explanation:
GFR = (Live births / Women aged 15-49) × 1000, focusing on the population at risk.

This question belongs to: Accountancy and Statistics Statistics

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