Which of the following index numbers satisfies the Circular Test? MCQ with Answer and Explanation

Question
Which of the following index numbers satisfies the Circular Test?
A. Kelly's Fixed Weight Index
B. Paasche's Index
C. Fisher's Ideal Index
D. Laspeyres' Index
Answer: Option A
Solution (By JKSSB Mock Tests)
Fisher's index fails the Circular Test. Only indexes with constant weights, like Kelly's or simple geometric mean of price relatives, pass it.
This question belongs to: Accountancy and Statistics Statistics
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Practice More Statistics Questions

Question #1
A researcher wants to compare mortality between two towns with different age structures. She should use:
A. Standardized death rate
B. Neonatal mortality rate
C. Infant mortality rate
D. Crude death rate
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Correct Answer: Option A

Explanation:
Standardization removes the confounding effect of age.
This question belongs to: Accountancy and Statistics Statistics
Question #2
The midpoint of a class interval 20-30 (exclusive) is:
A. 20
B. 25
C. 30
D. 50
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Correct Answer: Option B

Explanation:
Class midpoint = (Lower limit + Upper limit) / 2 = (20 + 30) / 2 = 25. This represents the central value of the class for calculations like mean in grouped data.
This question belongs to: Accountancy and Statistics Statistics
Question #3
Life expectancy at birth is an indicator of:
A. Fertility
B. Mortality conditions
C. Economic growth
D. Migration
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Correct Answer: Option B

Explanation:
Life expectancy summarizes the mortality pattern of a population.
This question belongs to: Accountancy and Statistics Statistics
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