STA304 GDB 1 Solution Fall 2021, STA304 GDB Solution Fall 2022, STA304 GDB Solution 2021, STA304 GDB No 1 Solution fall 2021.

STA304 GDB No 1 Due Date 22 December 2021 and Read the gdb instruction Carefully before submitting in the LMS portion.

**Question No 1:**

Different Between time reversal test and factor reversal test.

**Question No 2:**

Write down steps of construction of an index number.

__Question No 1 Solution Fall 2021:__

__Question No 1 Solution Fall 2021:__**Factor Reversal Test:**

A test for index numbers in which an index number of quantity, obtained if symbols for price and quantity are interchanged in an index number of price, is multiplied by the original price index to give an index of changes in total value. For example, Fisher’s price index is given by.

**Time Reversal Test:**

A test that may be used under the axiomatic approach requires that if the prices and quantities in the two periods being compared are interchanged the resulting price index is the reciprocal of the original price index. When an index satisfies this test, the same result is obtained whether the direction of change is measured forwards in time from the first to the second period or backwards from the second to the first period.