Laspeyre's formula does not obey:
A)Factor Reversal Test
B)Time Reversal Test
C)Circular Test
D)None

Name: Laspeyre's formula does not obey: A)Factor Reversal Test B)Time Reversal Test C)Circular Test D)None
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Question

Quizplus · Accepted Answer

Laspeyre's formula does not satisfy the Time Reversal Test, which requires that if the prices and quantities of two periods are reversed, the index should be the reciprocal of the original index.

Laspeyre's Formula Does Not Obey