CA Foundation Exam > CA Foundation Notes > Quantitative Aptitude for CA Foundation > MCQ 16 - Index Numbers
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Page 1 CPT Section D Quantitative Aptitude, Chapter 16 Dr. N.V. Ravi Page 2 CPT Section D Quantitative Aptitude, Chapter 16 Dr. N.V. Ravi MCQ’s Page 3 CPT Section D Quantitative Aptitude, Chapter 16 Dr. N.V. Ravi MCQ’s (a) median (b) geometric mean (c) mode (d) arithmetic mean Answer: b Page 4 CPT Section D Quantitative Aptitude, Chapter 16 Dr. N.V. Ravi MCQ’s (a) median (b) geometric mean (c) mode (d) arithmetic mean Answer: b (a) base year quantities (b) current year quantities (c) average of current and base years (d) none of these Answer: b Page 5 CPT Section D Quantitative Aptitude, Chapter 16 Dr. N.V. Ravi MCQ’s (a) median (b) geometric mean (c) mode (d) arithmetic mean Answer: b (a) base year quantities (b) current year quantities (c) average of current and base years (d) none of these Answer: b (a) arithmetic mean of Laspyre’s and Paasche’s index (b) median of Laspyre’s and Paasche’s index (c) geometric mean of Laspyre’s and Paasche’s index (d) none of these Answer: cRead More
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FAQs on MCQ 16 - Index Numbers - Quantitative Aptitude for CA Foundation
| 1. What are index numbers in the context of CA Foundation? |  |
Index numbers in the context of CA Foundation refer to a statistical measure used to track changes in a variable or a group of variables over time. These numbers provide a way to compare data from different time periods, allowing analysts to assess trends and make forecasts.
| 2. How are index numbers calculated in CA Foundation? | |
Index numbers in CA Foundation are typically calculated using a specific formula. The formula involves selecting a base year and assigning it a value of 100. The index numbers for subsequent years are then calculated by dividing the value of the variable in the given year by the value in the base year and multiplying by 100.
| 3. What is the purpose of using index numbers in CA Foundation? | |
The purpose of using index numbers in CA Foundation is to measure and analyze changes in variables over time. These numbers provide a means to compare data from different periods, identify trends, and make predictions. They are commonly used in economics, finance, and business to monitor inflation, track stock market performance, and evaluate economic indicators.
| 4. How can index numbers be used in CA Foundation for forecasting? | |
Index numbers in CA Foundation can be used for forecasting by examining historical trends and projecting them into the future. By analyzing the changes in variables over time, such as prices or sales figures, and using statistical techniques, analysts can make predictions about future values. These forecasts can assist businesses in planning, budgeting, and decision-making.
| 5. What are the limitations of using index numbers in CA Foundation? | |
While index numbers are useful in analyzing data, they also have limitations in CA Foundation. One limitation is that they are based on assumptions and may not accurately reflect the true changes in variables. Additionally, index numbers may not capture the entire complexity of a variable and may overlook important factors. It is also essential to consider that index numbers are sensitive to the selection of the base year, which can impact the interpretation of the results.
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