CA Foundation Exam > CA Foundation Questions > Each of the following statements is either Tr...
Start Learning for Free
Each of the following statements is either True or False with your choice of the answer by writing F for False.
- a)Base year quantities are taken as weights in Laspeyre’s price Index number.
- b)Fisher’s ideal index is equal to the Arithmetic mean of Laspeyre’s and Paasche’s index numbers.
- c)Laspeyre’s index number formula does not satisfy time reversal test.
- d)None of these.
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Each of the following statements is either True or False with your cho...
Explanation:
Fisher's Ideal Index
Fisher's Ideal Index is a weighted geometric mean of Laspeyres and Paasche's Index Numbers. It is considered as the best index number formula because it overcomes the limitations of both Laspeyres and Paasche's Index Numbers.
Laspeyres Price Index Number
Laspeyres Price Index Number is a fixed base index number. It is used to measure the change in the price level of a given set of goods and services over a period of time.
Time Reversal Test
The time reversal test is used to check the consistency of an index number formula. If the formula satisfies the time reversal test, it means that if the time period is reversed, the index number will also be reversed.
Explanation of Answer
Option B is correct because Fisher's Ideal Index is the weighted geometric mean of Laspeyres and Paasche's Index Numbers, and not the arithmetic mean. Option A is incorrect because Laspeyres Price Index Number takes current year quantities as weights, not base year quantities. Option C is incorrect because Laspeyres index number formula satisfies the time reversal test. Option D is incorrect because option B is the correct answer.
Therefore, the correct answer is option B.
Fisher's Ideal Index
Fisher's Ideal Index is a weighted geometric mean of Laspeyres and Paasche's Index Numbers. It is considered as the best index number formula because it overcomes the limitations of both Laspeyres and Paasche's Index Numbers.
Laspeyres Price Index Number
Laspeyres Price Index Number is a fixed base index number. It is used to measure the change in the price level of a given set of goods and services over a period of time.
Time Reversal Test
The time reversal test is used to check the consistency of an index number formula. If the formula satisfies the time reversal test, it means that if the time period is reversed, the index number will also be reversed.
Explanation of Answer
Option B is correct because Fisher's Ideal Index is the weighted geometric mean of Laspeyres and Paasche's Index Numbers, and not the arithmetic mean. Option A is incorrect because Laspeyres Price Index Number takes current year quantities as weights, not base year quantities. Option C is incorrect because Laspeyres index number formula satisfies the time reversal test. Option D is incorrect because option B is the correct answer.
Therefore, the correct answer is option B.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Each of the following statements is either True or False with your choice of the answer by writing F for False.a)Base year quantities are taken as weights in Laspeyres price Index number.b)Fishers ideal index is equal to the Arithmetic mean of Laspeyres and Paasches index numbers.c)Laspeyres index number formula does not satisfy time reversal test.d)None of these.Correct answer is option 'B'. Can you explain this answer?
Question Description
Each of the following statements is either True or False with your choice of the answer by writing F for False.a)Base year quantities are taken as weights in Laspeyres price Index number.b)Fishers ideal index is equal to the Arithmetic mean of Laspeyres and Paasches index numbers.c)Laspeyres index number formula does not satisfy time reversal test.d)None of these.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Each of the following statements is either True or False with your choice of the answer by writing F for False.a)Base year quantities are taken as weights in Laspeyres price Index number.b)Fishers ideal index is equal to the Arithmetic mean of Laspeyres and Paasches index numbers.c)Laspeyres index number formula does not satisfy time reversal test.d)None of these.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Each of the following statements is either True or False with your choice of the answer by writing F for False.a)Base year quantities are taken as weights in Laspeyres price Index number.b)Fishers ideal index is equal to the Arithmetic mean of Laspeyres and Paasches index numbers.c)Laspeyres index number formula does not satisfy time reversal test.d)None of these.Correct answer is option 'B'. Can you explain this answer?.
Each of the following statements is either True or False with your choice of the answer by writing F for False.a)Base year quantities are taken as weights in Laspeyres price Index number.b)Fishers ideal index is equal to the Arithmetic mean of Laspeyres and Paasches index numbers.c)Laspeyres index number formula does not satisfy time reversal test.d)None of these.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Each of the following statements is either True or False with your choice of the answer by writing F for False.a)Base year quantities are taken as weights in Laspeyres price Index number.b)Fishers ideal index is equal to the Arithmetic mean of Laspeyres and Paasches index numbers.c)Laspeyres index number formula does not satisfy time reversal test.d)None of these.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Each of the following statements is either True or False with your choice of the answer by writing F for False.a)Base year quantities are taken as weights in Laspeyres price Index number.b)Fishers ideal index is equal to the Arithmetic mean of Laspeyres and Paasches index numbers.c)Laspeyres index number formula does not satisfy time reversal test.d)None of these.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Each of the following statements is either True or False with your choice of the answer by writing F for False.a)Base year quantities are taken as weights in Laspeyres price Index number.b)Fishers ideal index is equal to the Arithmetic mean of Laspeyres and Paasches index numbers.c)Laspeyres index number formula does not satisfy time reversal test.d)None of these.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Each of the following statements is either True or False with your choice of the answer by writing F for False.a)Base year quantities are taken as weights in Laspeyres price Index number.b)Fishers ideal index is equal to the Arithmetic mean of Laspeyres and Paasches index numbers.c)Laspeyres index number formula does not satisfy time reversal test.d)None of these.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Each of the following statements is either True or False with your choice of the answer by writing F for False.a)Base year quantities are taken as weights in Laspeyres price Index number.b)Fishers ideal index is equal to the Arithmetic mean of Laspeyres and Paasches index numbers.c)Laspeyres index number formula does not satisfy time reversal test.d)None of these.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Each of the following statements is either True or False with your choice of the answer by writing F for False.a)Base year quantities are taken as weights in Laspeyres price Index number.b)Fishers ideal index is equal to the Arithmetic mean of Laspeyres and Paasches index numbers.c)Laspeyres index number formula does not satisfy time reversal test.d)None of these.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Each of the following statements is either True or False with your choice of the answer by writing F for False.a)Base year quantities are taken as weights in Laspeyres price Index number.b)Fishers ideal index is equal to the Arithmetic mean of Laspeyres and Paasches index numbers.c)Laspeyres index number formula does not satisfy time reversal test.d)None of these.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Each of the following statements is either True or False with your choice of the answer by writing F for False.a)Base year quantities are taken as weights in Laspeyres price Index number.b)Fishers ideal index is equal to the Arithmetic mean of Laspeyres and Paasches index numbers.c)Laspeyres index number formula does not satisfy time reversal test.d)None of these.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup