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Time Reversal Test of an index number requires
AP₀₁ × P₁₀ = 1
BP₀₁ + P₁₀ = 1
CP₀₁ − P₁₀ = 0
DP₀₁ × P₁₀ = 100
Answer & Solution
Correct answer: A. P₀₁ × P₁₀ = 1
1. The Time Reversal Test says: an index from 0 to 1 multiplied by the index from 1 to 0 should equal 1 (ignoring 100 factor).
2. Equivalently, P₀₁ × P₁₀ = 1.
3. Fisher's Ideal Index satisfies this; Laspeyres and Paasche do not.
4. Hence (A) is correct.
_Source: Maharashtra Balbharati Std XII Mathematics & Statistics (Commerce), Ch 3 "Index Numbers", §3.5 ¶§3.5_
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