Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

Which one of the following statements is true ?

Options:

Time reversal test is satisfied by simple aggregative method and Fisher's method

Lespeyre's method and Paasche's Methods satisfy time reversal test

Lespeyre's method and Fisher's method satisfy time reversal test

Time reversal test is satisfied by Paasch'e method and simple aggregative method

Correct Answer:

Time reversal test is satisfied by simple aggregative method and Fisher's method

Explanation:

The correct answer is Option (1) → Time reversal test is satisfied by simple aggregative method and Fisher's method

Fisher's method is a bivariate method that combines both the Laspeyres and Paasche methods, and it satisfies the time reversal test.