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Tests for an Ideal Index Number
1. Factor Reversal Test
Factor Reversal Test indicates that when the price index is multiplied along with a quantity index that is factors are reversed, it should result in the value index.
2. The time reversal test
If we reverse the time subscripts of a quantity or price index, the result must be reciprocal of the original index.
1. How many closed necklaces of length 7 can be made with 3 colors? (notice that 7 is a prime) 2. How many closed necklaces of length 10 can be made with 3 colors (this is di erent
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nc6:n-3c3=91:4
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A=30, B=45, b=4
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