Which of the following is a characteristic of a good index number? MCQ with Answer and Explanation

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Which of the following is a characteristic of a good index number?

A. It should satisfy the circular test.

B. It should not be based on a basket of items.

C. It should be biased.

D. It should use only current year weights.

Answer: Option A

Solution (By JKSSB Mock Tests)

Desirable properties include satisfying tests like time reversal, factor reversal, circular.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1

In a random experiment, an event consisting of a single outcome is called:

A. Sure event

B. Null event

C. Simple event

D. Compound event

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Correct Answer: Option C

Explanation:
An elementary or simple event contains exactly one sample point.

This question belongs to: Accountancy and Statistics Statistics

Question #2

Which of the following is not a measure of dispersion?

A. Variance

B. Standard deviation

C. Mode

D. Range

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Correct Answer: Option C

Explanation:
Mode is a measure of central tendency.

This question belongs to: Accountancy and Statistics Statistics

Question #3

Maternal Mortality Ratio (MMR) is expressed per 100,000 live births to:

A. Match infant mortality rate units

B. Align with census data

C. Avoid very small numbers for a relatively rare event

D. Simplify calculation

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Correct Answer: Option C

Explanation:
Maternal deaths are uncommon; using 100,000 as the base yields manageable numbers (e.g., 100-500) instead of tiny decimals, facilitating interpretation and cross-country comparison.

This question belongs to: Accountancy and Statistics Statistics

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