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 $P_{01}.P_{10}=$
Answer & explanation
Correct answer: option 2
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.