Which test of index numbers is based on the idea that an index should be independent of the units of measurement? MCQ with Answer and Explanation

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Which test of index numbers is based on the idea that an index should be independent of the units of measurement?

A. Unit test

B. Factor reversal test

C. Time reversal test

D. Circular test

Answer: Option A

Solution (By JKSSB Mock Tests)

Unit test requires that the index number should be independent of the units in which prices or quantities are measured.

This question belongs to: Accountancy and Statistics Statistics

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Question #1

The main advantage of using secondary data is that it:

A. Saves time and cost compared to primary data collection

B. Is always tailored to the researcher's specific needs

C. Eliminates the need for data validation

D. Guarantees higher accuracy than primary data

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Correct Answer: Option A

Explanation:
Secondary data is readily available from existing sources, significantly reducing the time, effort, and financial resources required for data collection compared to gathering primary data.

This question belongs to: Accountancy and Statistics Statistics

Question #2

General Fertility Rate is a better measure of fertility than CBR because it:

A. Is simpler to compute

B. Does not require birth data

C. Includes males

D. Relates births to women of reproductive age

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Correct Answer: Option D

Explanation:
GFR restricts the denominator to the population at risk, i.e., women 15-49 years.

This question belongs to: Accountancy and Statistics Statistics

Question #3

In a bolt factory, machines A(25%), B(35%), C(40%) produce bolts with defective rates 5%,4%,2%. A bolt is defective. Probability it came from C is:

A. 0.02

B. 0.40

C. 0.35

D. 0.23

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Correct Answer: Option D

Explanation:
Bayes: P(C|D) = (0.4×0.02) / (0.25×0.05+0.35×0.04+0.4×0.02) = 0.008/0.0345 ≈ 0.2319.

This question belongs to: Accountancy and Statistics Statistics

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