CA Foundation Exam > CA Foundation Questions > The quantity Index number using Fisher formul...
Start Learning for Free
The quantity Index number using Fisher formula satisfies:
- a)Unit Test
- b)Factor Reversal Test
- c)Circular Test
- d)Time Reversal Test
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
The quantity Index number using Fisher formula satisfies:a)Unit Testb)...
Explanation:
The Fisher’s Ideal Index formula is given by:
I = √(P1Q1 + P2Q2 + … + PnQn)/(P0Q0)
Where,
I = Index number
Pi = Price of commodity i in the current year
Qi = Quantity of commodity i in the base year
P0 = Price of commodity i in the base year
Q0 = Quantity of commodity i in the base year
The Fisher’s Ideal Index formula satisfies the Time Reversal Test.
Time Reversal Test:
This test examines the reliability of the index number when the base year and the current year are interchanged. In other words, if the index number is calculated using the current year as the base year and the base year as the current year, will it give the same result? The Fisher’s Ideal Index formula satisfies the Time Reversal Test. This means that if the base year and current year are interchanged, the index number will remain the same. This property makes the Fisher’s Ideal Index formula more reliable and accurate compared to other index number formulas.
The Fisher’s Ideal Index formula is given by:
Where,
I = Index number
Pi = Price of commodity i in the current year
Qi = Quantity of commodity i in the base year
P0 = Price of commodity i in the base year
Q0 = Quantity of commodity i in the base year
The Fisher’s Ideal Index formula satisfies the Time Reversal Test.
Time Reversal Test:
This test examines the reliability of the index number when the base year and the current year are interchanged. In other words, if the index number is calculated using the current year as the base year and the base year as the current year, will it give the same result? The Fisher’s Ideal Index formula satisfies the Time Reversal Test. This means that if the base year and current year are interchanged, the index number will remain the same. This property makes the Fisher’s Ideal Index formula more reliable and accurate compared to other index number formulas.
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
|
|
Top Courses for CA FoundationView all
The quantity Index number using Fisher formula satisfies:a)Unit Testb)Factor Reversal Testc)Circular Testd)Time Reversal TestCorrect answer is option 'D'. Can you explain this answer?
Question Description
The quantity Index number using Fisher formula satisfies:a)Unit Testb)Factor Reversal Testc)Circular Testd)Time Reversal TestCorrect 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 The quantity Index number using Fisher formula satisfies:a)Unit Testb)Factor Reversal Testc)Circular Testd)Time Reversal TestCorrect 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 The quantity Index number using Fisher formula satisfies:a)Unit Testb)Factor Reversal Testc)Circular Testd)Time Reversal TestCorrect answer is option 'D'. Can you explain this answer?.
The quantity Index number using Fisher formula satisfies:a)Unit Testb)Factor Reversal Testc)Circular Testd)Time Reversal TestCorrect 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 The quantity Index number using Fisher formula satisfies:a)Unit Testb)Factor Reversal Testc)Circular Testd)Time Reversal TestCorrect 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 The quantity Index number using Fisher formula satisfies:a)Unit Testb)Factor Reversal Testc)Circular Testd)Time Reversal TestCorrect answer is option 'D'. Can you explain this answer?.
Solutions for The quantity Index number using Fisher formula satisfies:a)Unit Testb)Factor Reversal Testc)Circular Testd)Time Reversal TestCorrect 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 The quantity Index number using Fisher formula satisfies:a)Unit Testb)Factor Reversal Testc)Circular Testd)Time Reversal TestCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The quantity Index number using Fisher formula satisfies:a)Unit Testb)Factor Reversal Testc)Circular Testd)Time Reversal TestCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for The quantity Index number using Fisher formula satisfies:a)Unit Testb)Factor Reversal Testc)Circular Testd)Time Reversal TestCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of The quantity Index number using Fisher formula satisfies:a)Unit Testb)Factor Reversal Testc)Circular Testd)Time Reversal TestCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The quantity Index number using Fisher formula satisfies:a)Unit Testb)Factor Reversal Testc)Circular Testd)Time Reversal TestCorrect 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!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup