Q: Which of the following statements is/are correct? 1. A price index captures the change in the average price of a constant basket of commodities. 2. If the price index takes values 100, 110 and 121 in three consecutive years respectively, then the inflation rates in the 2nd and 3rd years are 10% and 21% respectively. Select the correct answer using the code given below.
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2
Correct Answer: (a)
The correct answer is (c) 'Both 1 and 2'. Among the 2 statements given, this option correctly identifies which statements are accurate regarding Numerical Ability (Quantitative Aptitude & Data Interpretation).