# MCQs Index Numbers Quiz 4

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

Multiple Choice Questions about Index Number. The test about Index Numbers for the preparation of FPSC Statistical Officer will help you in online preparation for the post of Lecturers, Statistical Officers, and other statistics related jobs.

1. If the average wages index for 2003 at constant 1998 prices were to be 96, which of the following comments would be correct?

2. The following table shows the index of prices (1995=100) for a certain commodity over the period 1995-2000:

The percentage increase in the price between 2002 and 2004 is nearest to

3. Weighted price index numbers include

4. The most suitable average for index numbers is

5. Which index number may be weighted

6. If all the items are given equal weights the index number is called

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

8. The following table shows the index of prices (1995=100) for a certain commodity over the period 1995-2000:It has been decided to rebase the index so that 2005=100. The index for 2003 will now be nearest to

9. The weights used in the price index are

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

11. Commodities subject to considerable prices variations can best be measured by a

12. Chaining process used to make comparison of index number is

13. Express the following average weekly wages as index numbers with base 1998.

14. If all values are not of equal importance the index number is called

15. Index for the base period is always taken as

16. Price relatives computed for chain base method are called

17. Price relative = $\frac{?}{p_0}\times$

18. Index numbers computed by considering the relative importance of variables are called

19. If the index for 2003 were to be 116 and the RPI 204, express the index for 2003 at constant 1998 prices.

20. In index numbers __________ can be used as average

• 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