Index NumbersMCQPYQ June 22Question 3807 of 197
All Questions

Which one of the following is not appropriate for calculation of index number?

Options

AUnit test
BPrice relative test
CCircular test
DTime reversal test
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Correct Answer

Option bPrice relative test

All Options:

  • AUnit test
  • BPrice relative test
  • CCircular test
  • DTime reversal test

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Detailed Solution & Explanation

In index number theory, there are four standard tests of adequacy: 1. Unit Test 2. Time Reversal Test 3. Factor Reversal Test 4. Circular Test There is **no such test** as the "Price relative test". Price relative is a definition/formula, not a test of adequacy. Hence, **Option B** 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.

Key Concepts to Understand

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