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

MCQs about Index Numbers

- 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 on Index Numbers

- All values of equal importance are used in calculating an index, the index is called:
- The Basic types of index numbers are:
- The weights used in a quantity index are:
- A relative obtained by dividing the price in a given year price in the base year and expressed as a percentage is called:
- A relative obtained by dividing the price in a given year by the price in the proceeding year and expressed as a percentage is called:
- In simple price index numbers, the base period is
- In chain base methods the base period is:
- For calculating weighted index numbers, which of the following methods are useful quantities consumed in the base period as weight:
- $P_{on} = \frac{\Sigma p_n q_n}{\Sigma p_0 q_n}\times 100$ is the formula of:
- The time reversal test is satisfied by
- The index number for the base year is
- An index number that can serve many purposes is called
- The index numbers used to measure the changes in the price of commodities is called
- Consumer’s price index numbers are calculated by:
- The variation in two or more variables studied by the index is called:
- In Laspeyre’s Price Index, the quantities use weight related to
- Commodities subject to considerable price variations can best be measured by a
- The weights used in a quantity index are
- Theoretically best average used in the construction of a composite index is
- Which of the following price indices are prepared by the Federal Bureau of Statistics?