Which of the following indices does NOT satisfy the time reversal test? MCQ with Answer and Explanation

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Which of the following indices does NOT satisfy the time reversal test?

A. Paasche index

B. Both Laspeyres and Paasche

C. Fisher index

D. Laspeyres index

Answer: Option B

Solution (By JKSSB Mock Tests)

Laspeyres and Paasche indices fail the time reversal test; Fisher's index satisfies it.

This question belongs to: Accountancy and Statistics Statistics

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Question #1

The formula for simple aggregative price index is:

A. (Σp₁q₁ / Σp₀q₁) × 100

B. (Σp₁q₀ / Σp₀q₀) × 100

C. (Σp₁ / Σp₀) × 100

D. (Σp₀ / Σp₁) × 100

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Correct Answer: Option C

Explanation:
Simple aggregative index sums current prices and divides by sum of base prices, multiplied by 100.

This question belongs to: Accountancy and Statistics Statistics

Question #2

The term 'urban agglomeration' in census refers to:

A. A planned satellite town

B. A metropolitan city only

C. A city with more than 100,000 population

D. An integrated urban area comprising a city and its outgrowths

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Correct Answer: Option D

Explanation:
Urban agglomeration includes a core town and contiguous urban outgrowths, like suburbs.

This question belongs to: Accountancy and Statistics Statistics

Question #3

Combined mean formula is essential when:

A. Calculating mode

B. All groups have the same size

C. Data is qualitative

D. Merging means from groups of different sizes

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Correct Answer: Option D

Explanation:
Combined mean = (n₁x̄₁ + n₂x̄₂) / (n₁ + n₂) weights each group's mean by its size, providing the correct overall mean when aggregating subgroup statistics.

This question belongs to: Accountancy and Statistics Statistics

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