Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

If the index number of the current year is computed on the basis of quantities of base year $(P_{01})$ and another index number is computed on the basis of quantities of current year $(P_{10})$ and index numbers satisfy time reversed test, then $P_{01}.P_{10}=$

Options:

$\frac{3}{2}$

1

2

$\frac{1}{2}$

Correct Answer:

1

Explanation:

The correct answer is Option (2) → 1

The time-reversed test for index numbers states,

$P_{01}×P_{10}=1$

It is so because to ensure consistence between the two index numbers.