Which of the following is true for an ideal index number? MCQ with Answer and Explanation

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Which of the following is true for an ideal index number?

A. It should be easy to calculate.

B. It should use only base period weights.

C. It must be a simple average of relatives.

D. It must satisfy time reversal and factor reversal tests.

Answer: Option D

Solution (By JKSSB Mock Tests)

Fisher's ideal index satisfies both tests; these are desirable properties.

This question belongs to: Accountancy and Statistics Statistics

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Question #1

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Which measure of central tendency is most appropriate for finding the typical salary in a company with a few very high earners?

A. Mean

B. Mode

C. Median

D. Harmonic mean

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Correct Answer: Option C

Explanation:
Median is robust to outliers and better represents the typical salary.

This question belongs to: Accountancy and Statistics Statistics

Question #2

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If two attributes have perfect positive association, then:

A. (A) = (B)

B. (αβ) = 0

C. (AB) = 0

D. (AB) = (A) = (B)

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Correct Answer: Option D

Explanation:
Perfect positive association means all A's are B's and all B's are A's, so (AB) equals both marginals.

This question belongs to: Accountancy and Statistics Statistics

Question #3

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Which of the following is a function of census?

A. Issuing birth certificates

B. Collecting taxes

C. Conducting elections

D. Providing data on population size and characteristics

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Correct Answer: Option D

Explanation:
Census provides comprehensive demographic, social, and economic data.

This question belongs to: Accountancy and Statistics Statistics

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