perfect positive

 perfect negative

highly positive

highly negative

 Time reversal test only

Factor reversal test only

 Both time and factor reversal tests

Circular test only

A is false but R is true

A is true but R is false

 Both A and R are true and R is the correct explanation of A

Both A and R are true but R is NOT a correct explanation of A

 Index numbers are specialized averages

 Index numbers are not expressed in percentages

 Index number is a statistical measure representing changes in a variable or group of related variables

Index numbers measure changes which are not directly measurable

 Index numbers are economic barometers

Index numbers are used in computing the real income or wages

Index numbers cannot be used in forecasting

The ideal average used in the construction of index numbers is the arithmetic mean

 Geometric mean is the most suitable average in the construction of index numbers

Paasche’s formula is a weighted aggregate index with base year quantity weights

Weighted index numbers are better and more representative than simple index numbers.

Base Year used in index numbers should be a normal year

Price relatives are formed to study price changes over time

Quantity relations are used to measure chnages in quantum of volume of productions or conception of a commodity

 Laspeyre’s formula is a weighted aggregate index with base year quantity weights

Fisher’s index formula is the arithmetic mean of Laspeyer’s and paasche’s formula

None of the above

Composite index number

Simple index number

Value index number

None of the above