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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.
find a common tangent to two circles
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Properties of Vector Arithmetic If v, w and u are vectors (each with the same number of components) and a and b are two numbers then we have then following properties. v →
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