MCQs Index Numbers 3

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

1. How many steps are involved in the construction of the index number of prices:


2. A base period can be described as a normal period if:


3. Commodities subject to considerable price variations could best be measured by


4. The consumer price index number is also known as


5. Depression in a business is?


6. To measure changes in total monetary worth, one should compute:


7. A primary difference between the average of relatives and aggregate methods is that


8. Which of the following describes the advantage of using the Laspeyer’s method?


9. The circular test is satisfied for


10. If an index number calculations over 8 years with a base value of 100 gave an index for 2015 of 120, what would be the percentage relative for 2015?


11. The weights used in a quantity index are:


12. When the base year values are used as weights, the weighted average of the relative price index is the same as


13. When computing a weighted average of the relative index, we would be best able to compare indices from various periods if:


14. Which of the following index has a downward bias?


15. To measure how much the cost of some variable changes over time, we would use


Index number
  • 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

Muhammad Imdad Ullah

Currently working as Assistant Professor of Statistics in Ghazi University, Dera Ghazi Khan. Completed my Ph.D. in Statistics from the Department of Statistics, Bahauddin Zakariya University, Multan, Pakistan. l like Applied Statistics, Mathematics, and Statistical Computing. Statistical and Mathematical software used is SAS, STATA, GRETL, EVIEWS, R, SPSS, VBA in MS-Excel. Like to use type-setting LaTeX for composing Articles, thesis, etc.

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