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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.
How to Dealing With Exponents on Negative Bases ? Exponents work just the same way on negative bases as they do on positive ones: (-2)0 = 1 Any number (except 0) raised to the
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