The simple Aggregative formula and weighted aggregative formula satisf...
ANSWER The simple Aggregative formula and weighted aggregative formula satisfy is.
Factor Reversal Test.
The factor reversal test requires that multiplying a price index and a volume index of the same type should be equal to the proportionate change in the current values (e.g. the “Fisher Ideal” price and volume indexes satisfy this test, unlike either the Paasche or Laspeyres indexes).
08
View all questions of this test
The simple Aggregative formula and weighted aggregative formula satisf...
Factor Reversal Test:
The factor reversal test is satisfied when the order of preference of alternatives is not affected by multiplying each alternative by a constant factor. Both the simple aggregative formula and the weighted aggregative formula satisfy this test.
Circular Test:
The circular test is not satisfied by either the simple aggregative formula or the weighted aggregative formula. This test requires that the preference order of alternatives does not change when one of the alternatives is added to or removed from the set of alternatives. However, in both formulas, the addition or removal of an alternative can change the preference order.
Unit Test:
The unit test is satisfied when the preference order of alternatives is not affected by changing the units of measurement used to express the alternatives. Both the simple aggregative formula and the weighted aggregative formula satisfy this test.
Conclusion:
In summary, the simple aggregative formula and the weighted aggregative formula satisfy the factor reversal test and unit test, but not the circular test.
The simple Aggregative formula and weighted aggregative formula satisf...
I think option should be d(none of these) as simple aggregative method do not satisfy unit test,factor reversal test,circular test.