# MCQs Index Number 3

Multiple Choice Questions from Introductory Statistics for the preparation of exams and different tests. This page includes the MCQs Index Number test for the preparation of different statistics and job-related examinations. Let us start with the MQCs index number quiz, which is the third MCQs index number Test.

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

2. The circular test is satisfied for

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

4. Which method of construction of consumer price index number is the Laspeyres’ index number?

5. The prices used in the construction of consumer price index numbers are:

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

7. The consumer price index number is also known as

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

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

10. The Circular test is satisfied by:

11. Commodities subject to considerable price variation should best be measured by:

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

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

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

15. Depression in a business is?

16. The weights used in a quantity index are:

17. Which of the following indexex has a downward bias?

18. Which of the following indices satisfies both the time reversal and factor reversal tests?

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

20. 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?

• Construction of Index Numbers 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 include (i) Simple Aggregative Index Numbers, (ii) Simple Average of Relatives Index Numbers
• Weighted Index Numbers which include (i) Weighted Aggregative Index Numbers, (ii) Weighted Average of Relatives Index Numbers
• The Weighted Aggregative Index Numbers include (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 include (i) Choosing the class of people, (ii) Selection of commodities, (iii) Budget Inquiry, (iv) Collection of Prices, (v) Calculation of CPI Numbers

### MCQs Index Number

• How many steps are involved in the construction of the index number of prices:
• The circular test is satisfied for
• Which of the following indexes has a downward bias?
• The consumer price index number is also known as
• To measure changes in total monetary worth, one should compute:
• 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?
• Which of the following describes the advantage of using the Laspeyer’s method?
• When computing a weighted average of the relative index, we would be best able to compare indices from various periods if:
• Commodities subject to considerable price variations could best be measured by
• A primary difference between the average of relatives and aggregate methods is that
• A base period can be described as a normal period if:
• The weights used in a quantity index are:
• To measure how much the cost of some variable changes over time, we would use
• When the base year values are used as weights, the weighted average of the relative price index is the same as
• Depression in a business is?
• Which method of construction of consumer price index number is the Laspeyres’ index number?
• The prices used in the construction of consumer price index numbers are:
• The Circular test is satisfied by:
• Which of the following indices satisfies both the time reversal and factor reversal tests?
• Commodities subject to considerable price variation should best be measured by:

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