Which test of index numbers is violated by Laspeyres index? MCQ with Answer and Explanation

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Which test of index numbers is violated by Laspeyres index?

A. Unit test

B. Time reversal test

C. Factor reversal test

D. Circular test

Answer: Option B

Solution (By JKSSB Mock Tests)

Laspeyres does not satisfy time reversal test; P₀₁(L) × P₁₀(L) ≠ 1.

This question belongs to: Accountancy and Statistics Statistics

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Practice More Statistics Questions

Question #1

If NRR = 1, it indicates:

A. High population growth

B. Zero fertility

C. Population is exactly replacing itself

D. Population is declining

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Correct Answer: Option C

Explanation:
NRR = 1 means each woman is replaced by exactly one daughter who survives to reproductive age, implying exact replacement.

This question belongs to: Accountancy and Statistics Statistics

Question #2

If (A)=80, (B)=60, N=100, and (AB)=50, the value of (Aβ) is:

A. 30

B. 40

C. 10

D. 20

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Correct Answer: Option A

Explanation:
(Aβ) = (A) - (AB) = 80 - 50 = 30.

This question belongs to: Accountancy and Statistics Statistics

Question #3

If P(A)=0.4, P(B)=0.5, and A and B are independent, then P(A∪B) is:

A. 0.7

B. 0.5

C. 0.2

D. 0.9

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Correct Answer: Option A

Explanation:
0.4+0.5 - (0.4×0.5)=0.9-0.2=0.7.

This question belongs to: Accountancy and Statistics Statistics

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