Index NumbersMCQPYQ Dec 23Question 3814 of 197
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Fisher's index does not satisfy following test

Options

AUnit test
BTime Reversal test
CCircular test
DFactor Reversal test
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Correct Answer

Option cCircular test

All Options:

  • AUnit test
  • BTime Reversal test
  • CCircular test
  • DFactor Reversal test

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Detailed Solution & Explanation

Fisher's Ideal Index satisfies the Unit Test, Time Reversal Test, and Factor Reversal Test. However, it **does not satisfy** the **Circular Test** because the weights used in Fisher's index change from period to period (it uses both base-period and current-period weights). 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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