# MCQs Index Numbers Quiz 2

Multiple Choice Questions from Introductory Statistics for the preparation of exams and different tests. This page includes the Index Numbers quiz for the preparation of different statistics and job-related examinations. Lets us start with the MCQs index numbers quiz, which is the second quiz of MCQs index numbers.

1. An index number that can serve many purposes is called

2. In simple price index numbers, the base period is

3. A relative obtained by dividing the price in a given year price in the base year and expressed as a percentage is called:

4. In Laspeyre’s Price Index, the quantities uses weight related to

5. In chain base methods the base period is:

6. Consumer’s price index numbers are calculated by:

7. The index numbers are used to measure the changes in the price of commodities is called

8. The index number for the base year is

9. For calculating weighted index numbers, which of the following method useful quantities consumed in the base period as weight:

10. $P_{on} = \frac{\Sigma p_n q_n}{\Sigma p_0 q_n}\times 100$ is the formula of:

11. The Basic types of index numbers are:

12. The variation in two or more variables studies by the index is called:

13. A relative obtained by dividing the price in a given year by price in proceeding year and expressed as a percentage is called:

14. The weights used in a quantity index are:

15. Time reversal test is satisfied by

16. All values of equal importance are used in calculating an index, the index is called:

• Construction of Index Numbers which follows steps (i) Object of Index Number, (ii) Choice of items, (iii) Choice of Base Period, (iv) Collection of Prices of Items, (v) Choice of Average, (vi) Selection of Proper Weights
• Fixed Base Method
• Chain Base Method
• Composite Index Numbers
• Un-Weighted Index Numbers which includes (i) Simple Aggregative Index Numbers, (ii) Simple Average of Relatives Index Numbers
• Weighted Index Numbers which includes (i) Weighted Aggregative Index Numbers, (ii) Weighted Average of Relatives Index Numbers
• The Weighted Aggregative Index Numbers includes (i) Laspeyre’s Index Number, (ii) Paasche’s Index Number, (iii) Fisher Idea Index Number, Value Index Number,
• Consumer Price Index Numbers. The important steps in the construction of CPI numbers which includes (i) Choosing the class of people, (ii) Selection of commodities, (iii) Budget Inquiry, (iv) Collection of Prices, (v) Calculation of CPI Numbers 