MCQs Index Numbers 1

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

1. The index number that can be used for multi-purpose is:


2. Index numbers are free from a unit of measurement because the index number shows


3. _______ method uses quantities consumed in the base period when computing a weighted index


4. An index number computed for a single commodity is called


5. Paasche’s price index number is also called


6. Chaining process used to make a comparison of the index number is


7. The index for the base period is always taken as


8. The __________ index number has a wide scope


9. Increased demand for coolers in summer and heaters in winter is an example of


10. The price relative formula is $\frac{?}{P0}\times 100$


11. The commodities subject to considerable prices variations can be best measured by


12. The index give by $\frac{\sum p_n q_n}{\sum p_0 q_0}\times 100$


13. In the fix base method, the base period should be


14. Long term variations are regarded as


15. If Laspeyre’s index number is 200, Paasche’s index number is 200 then the Fisher index number will be


16. Price relatives computed for chain base method are called


17. In the chain base method, the base period is


18. The most suitable average for index numbers is


19. Index number having upward bias is


20. The price used in the construction of consumer price index numbers is


MCQs Index Numbers
  • 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 include (i) Choosing the class of people, (ii) Selection of commodities, (iii) Budget Inquiry, (iv) Collection of Prices, (v) Calculation of CPI Numbers

Learn about Index 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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2 Responses

  1. Mani says:

    Mcqs # 10 and 19 arevwrong answers plz chck it.

    • Dear!
      The questions in quiz are generated randomly. Therefore, it becomes difficult to identify wrong question on the basis of just question number. It will be helpful if you provide at least the statement of the wrong question.

      Thank your for visitng and sharing your comment.

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