Question

149. Circular test, an index constructed for the year 'X' on
the base year 'y' and for the year 'y' on the base
year 'z' should yield the same result as an index
constructed for
'X'
on base year 'Z' i.e.
10,1 *I1,2 12,0 is equal to:
(a) 3
(b) 2
(c) 1
(d) None of these

Answer 1

Answer:

3 answer in first equation

Answer 2

Given: Circular test, an index constructed for the year 'X' on

the base year 'y' and for the year 'y' on the base

To Find: Year 'z' should yield the same result as an index constructed for

'X' on the base year 'Z' i.e. 10,1 *I1,2 12,0 is equal to

Solution:

n the calculation of an index the base year is the year with which the values from other years are compared.

The index value of the base year = 100.

In a circular test,

an index constructed for the base of the year 'X' on the base of year 'Y' and for the year 'Y' it is constructed on the base of the year 'Z'.

This implies that will yield the same result as an index constructed for 'X' on the base year 'Z' that is,

I to the base 01 × I to the base 12 × I to the base 20 is: 1

Therefore, the same result will be held by option (c) 1.

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