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प्रश्न
State the test of adequacy of index number
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उत्तर
Index numbers are studied to know the relative changes in price and quantity for any two years compared.
There are two tests which are used to test the adequacy of an index number.
The two tests are as follows:
(i) Time Reversal Test
(ii) Factory Reversal Test
APPEARS IN
संबंधित प्रश्न
State with reasons whether you agree or disagree with the following statement:
Index numbers can be constructed without the base year.
Index numbers that measure changes in the level of output or physical volume of production in the economy −
Device that measures changes in an economic variable or a group of variables over a period of time –
Identify & explain the concept from the given illustration.
Agricultural Research Institute constructed an index number to measure changes in the production of raw cotton in Maharashtra during the period 2015-2020.
Discuss about Cost of Living Index Number
Using Fisher’s Ideal Formula, compute price index number for 1999 with 1996 as base year, given the following:
| Year | Commodity: A | Commodity: B | Commodity: C | |||
| Price (Rs.) | Quantity (kg) | Price (Rs.) | Quantity (kg) | Price (Rs.) | Quantity (kg) | |
| 1996 | 5 | 10 | 8 | 6 | 6 | 3 |
| 1999 | 4 | 12 | 7 | 7 | 5 | 4 |
Choose the correct alternative:
Another name of consumer’s price index number is:
Choose the correct alternative:
Consumer price index are obtained by:
An Enquiry was made into the budgets of the middle class families in a city gave the following information.
| Expenditure | Food | Rent | Clothing | Fuel | Rice |
| Price(2010) | 150 | 50 | 100 | 20 | 60 |
| Price(2011) | 174 | 60 | 125 | 25 | 90 |
| Weights | 35 | 15 | 20 | 10 | 20 |
What changes in the cost of living have taken place in the middle class families of a city?
Choose the correct pair :
| Group A | Group B | ||
| 1) | Price Index | a) | `(sump_1q_1)/(sump_0q_0) xx100` |
| 2) | Value Index |
b) |
`(sumq_1)/(sumq_0) xx 100` |
| 3) | Quantity Index | c) | `(sump_1q_1)/(sump_0q_1) xx100` |
| 4) | Paasche's Index | d) | `(sump_1)/(sump_0) xx 100` |
