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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.
- b)Base year prices are taken as weights in Laspeyre’s quantity index numbers.
- c)Fisher’s Ideal Index formula obeys time reversal and factor reversal tests.
- d)None of these.
Correct answer is option 'D'. 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:
Circular test, time reversal test, and factor reversal test are three important tests that should be satisfied by any index number formula to prove its correctness and reliability. Let us discuss each statement one by one:
a) Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.
- This statement is False. Both Simple Aggregative and simple Geometric mean of price relatives formula do not satisfy the circular test. This is because both these formulas use the base year prices as weights, which results in a circular reference problem.
b) Base year prices are taken as weights in Laspeyres quantity index numbers.
- This statement is True. Laspeyres quantity index numbers use the base year prices as weights to calculate the index numbers. This formula is widely used in the construction of price indices.
c) Fishers Ideal Index formula obeys time reversal and factor reversal tests.
- This statement is also False. Fisher's Ideal Index formula is known to satisfy the time reversal test, but it does not satisfy the factor reversal test. This is because the Fisher's Ideal Index formula uses the geometric mean of the price relatives as weights, which makes it difficult to satisfy the factor reversal test.
d) None of these.
- This statement is the correct answer. The correct answer is None of these because the first and the third statements are False, and the second statement is True.
Circular test, time reversal test, and factor reversal test are three important tests that should be satisfied by any index number formula to prove its correctness and reliability. Let us discuss each statement one by one:
a) Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.
- This statement is False. Both Simple Aggregative and simple Geometric mean of price relatives formula do not satisfy the circular test. This is because both these formulas use the base year prices as weights, which results in a circular reference problem.
b) Base year prices are taken as weights in Laspeyres quantity index numbers.
- This statement is True. Laspeyres quantity index numbers use the base year prices as weights to calculate the index numbers. This formula is widely used in the construction of price indices.
c) Fishers Ideal Index formula obeys time reversal and factor reversal tests.
- This statement is also False. Fisher's Ideal Index formula is known to satisfy the time reversal test, but it does not satisfy the factor reversal test. This is because the Fisher's Ideal Index formula uses the geometric mean of the price relatives as weights, which makes it difficult to satisfy the factor reversal test.
d) None of these.
- This statement is the correct answer. The correct answer is None of these because the first and the third statements are False, and the second statement is True.
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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.b)Base year prices are taken as weights in Laspeyres quantity index numbers.c)Fishers Ideal Index formula obeys time reversal and factor reversal tests.d)None of these.Correct answer is option 'D'. 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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.b)Base year prices are taken as weights in Laspeyres quantity index numbers.c)Fishers Ideal Index formula obeys time reversal and factor reversal tests.d)None of these.Correct answer is option 'D'. 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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.b)Base year prices are taken as weights in Laspeyres quantity index numbers.c)Fishers Ideal Index formula obeys time reversal and factor reversal tests.d)None of these.Correct answer is option 'D'. 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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.b)Base year prices are taken as weights in Laspeyres quantity index numbers.c)Fishers Ideal Index formula obeys time reversal and factor reversal tests.d)None of these.Correct answer is option 'D'. 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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.b)Base year prices are taken as weights in Laspeyres quantity index numbers.c)Fishers Ideal Index formula obeys time reversal and factor reversal tests.d)None of these.Correct answer is option 'D'. 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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.b)Base year prices are taken as weights in Laspeyres quantity index numbers.c)Fishers Ideal Index formula obeys time reversal and factor reversal tests.d)None of these.Correct answer is option 'D'. 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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.b)Base year prices are taken as weights in Laspeyres quantity index numbers.c)Fishers Ideal Index formula obeys time reversal and factor reversal tests.d)None of these.Correct answer is option 'D'. 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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.b)Base year prices are taken as weights in Laspeyres quantity index numbers.c)Fishers Ideal Index formula obeys time reversal and factor reversal tests.d)None of these.Correct answer is option 'D'. 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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.b)Base year prices are taken as weights in Laspeyres quantity index numbers.c)Fishers Ideal Index formula obeys time reversal and factor reversal tests.d)None of these.Correct answer is option 'D'. 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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.b)Base year prices are taken as weights in Laspeyres quantity index numbers.c)Fishers Ideal Index formula obeys time reversal and factor reversal tests.d)None of these.Correct answer is option 'D'. 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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.b)Base year prices are taken as weights in Laspeyres quantity index numbers.c)Fishers Ideal Index formula obeys time reversal and factor reversal tests.d)None of these.Correct answer is option 'D'. 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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.b)Base year prices are taken as weights in Laspeyres quantity index numbers.c)Fishers Ideal Index formula obeys time reversal and factor reversal tests.d)None of these.Correct answer is option 'D'. 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)Simple Aggregative and simple Geometric mean of price relatives formula satisfy circular Test.b)Base year prices are taken as weights in Laspeyres quantity index numbers.c)Fishers Ideal Index formula obeys time reversal and factor reversal tests.d)None of these.Correct answer is option 'D'. 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
|
Follow Us
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup