Index NumbersMCQPYQ June 22Question 3803 of 197
All Questions

Which test is known for shift base index no.

Options

AFactor test
BUnit test
CCircular test
DTime reversal test
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Correct Answer

Option cCircular test

All Options:

  • AFactor test
  • BUnit test
  • CCircular test
  • DTime reversal test

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Detailed Solution & Explanation

The **Circular Test** is concerned with the measurement of price changes over a period of years when it is desirable to **shift the base** period. Formally, for three periods: P01×P12×P20=1    P01×P12=P02P_{01} \times P_{12} \times P_{20} = 1 \implies P_{01} \times P_{12} = P_{02} This facilitates easy base-shifting without reconstructing the entire series. Hence, **Option C** is the correct answer.

About This Chapter: Index Numbers

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Construction of Index Numbers, Time Series

This chapter covers Construction of Index Numbers, Time Series and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

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