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. Factor reversal test

B. Circular test

C. Unit test

D. Time reversal test

Answer: Option C

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

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The base year of the current series of CPI-IW (2016 series) is:

A. 2001

B. 2016

C. 2012

D. 2010

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Correct Answer: Option B

Explanation:
The current CPI-IW series has base year 2016, replacing the 2001 series.

This question belongs to: Accountancy and Statistics Statistics

Question #2

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Which of the following is a merit of secondary data?

A. Saves time and cost

B. Specific to research objectives

C. Originality

D. High accuracy

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Correct Answer: Option A

Explanation:
Secondary data is already available, saving the time and expense of collection.

This question belongs to: Accountancy and Statistics Statistics

Question #3

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If a population has a TFR of 2.0 and NRR of 0.9, this implies:

A. The population is growing rapidly

B. Mortality among women of reproductive age is high enough to prevent replacement

C. The population is at replacement level

D. Fertility is low, mortality is zero

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Correct Answer: Option B

Explanation:
Even though TFR is near replacement, NRR

This question belongs to: Accountancy and Statistics Statistics

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