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 $P_{01}.P_{10}=$ |
$\frac{3}{2}$ 1 2 $\frac{1}{2}$ |
1 |
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. |