Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

Which index number does not satisfy the unit test?

Options:

Fisher's Price Index

Paasches Index number

Simple Aggregate Index

Walsch Formula

Correct Answer:

Simple Aggregate Index

Explanation:

The correct answer is Option (3) → Simple Aggregate Index

$\text{Unit test: index should be independent of units of measurement}$

$\text{Fisher, Paasche and Walsh indices satisfy unit test}$

$\text{Simple Aggregate Index depends on units}$

The correct answer is Simple Aggregate Index.