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

Question
Which formula fails the Factor Reversal Test?
A. Laspeyres' Index
B. Both B and C
C. Fisher's Ideal Index
D. Marshall-Edgeworth Index
Answer: Option B
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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Practice More Statistics Questions

Question #1
Which of the following pairs are mutually exclusive?
A. Getting an even number and a prime number on a die
B. Drawing a heart and a queen from a deck
C. Getting a 4 and an even number on a die
D. Getting a head and a tail in a single coin toss
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Correct Answer: Option D

Explanation:
Head and tail cannot occur simultaneously in one toss.
This question belongs to: Accountancy and Statistics Statistics
Question #2
If a country's population grows from 50 million to 55 million in 10 years, the average annual growth rate (approximate) is:
A. 1.0%
B. 0.5%
C. 2.0%
D. 1.5%
Discuss
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Correct Answer: Option A

Explanation:
Using the rule of 70 or simple approximation: Growth rate ≈ [(Final/Initial)^(1/t) - 1] × 100 = [(55/50)^(0.1) - 1] × 100 ≈ (1.1^0.1 - 1)×100 ≈ (1.0096 - 1)×100 ≈ 0.96% ≈ 1.0% per annum.
This question belongs to: Accountancy and Statistics Statistics
Question #3
Which of the following statements about attributes is false?
A. Consistency requires all ultimate frequencies to be positive.
B. The number of ultimate classes for n attributes is 2^n.
C. Ultimate class frequencies are mutually exclusive and exhaustive.
D. Yule's Q ranges from -1 to +1.
Discuss
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Correct Answer: Option A

Explanation:
Consistency requires non-negative (≥0), not strictly positive. Some can be zero.
This question belongs to: Accountancy and Statistics Statistics
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