All Free Statistics MCQs with Answers
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545 questions · page 33 of 55
321. Average calculated used in index number by __________ method?
- A. Three
- B. Two
- C. Four
- D. One
Explanation: Index numbers commonly use three types of averages: arithmetic mean, geometric mean and harmonic mean. Thus the number of methods referred to is three.
Correct answer: Three322. G.M. between __________ is called to be Fisher's Index Number?
- A. Paasche's Index Number
- B. Marshall and Laspeyr'es
- C. Laspeyre's and Paasche's
- D. Fisher and Paasche's
Explanation: Fisher's index is the geometric mean of the Laspeyres and Paasche indices, calculated as the square root of their product. It is therefore called the ideal index in many textbooks.
Correct answer: Laspeyre's and Paasche's323. Consumer price Index Number also called _________ is designed to measure changes?
- A. Cost Living Index number
- B. Whole Sale Index number
- C. weighted Index Number
- D. Consumer Index Number
Explanation: The Consumer Price Index tracks changes in the prices of goods and services purchased by consumers, so it is also called the Cost of Living Index. A wholesale index instead concerns prices at the wholesale level.
Correct answer: Cost Living Index number324. All Index numbers are not suitable for all _________________?
- A. Kind
- B. Chain relative
- C. Purpose
- D. Price
Explanation: An index number is designed for a particular objective, such as measuring prices, quantities or the cost of living, so no single index suits every purpose. This is why the purpose must be identified before selecting an index.
Correct answer: Purpose325. A scaling factor is used to_________________?
- A. Change a simple index to a weight index
- B. Convert the Paasche index to a Laspeyres index
- C. Change the base year
- D. change an aggregate index to a weighted index
Explanation: Multiplying an index by a scaling factor changes its reference base while preserving the measured relative movement. It does not convert one index formula into another type.
Correct answer: Change the base year326. The formula ∑poqn/∑poqo x100 is used to calculate_______________?
- A. The Laspeyres price index
- B. The Paasche quantity index
- C. The Laspeyres quantity index
- D. The Paasche price index
Explanation: The formula uses current quantities, qn, valued at base-period prices, p0, and compares them with base quantities valued at p0. That is the Laspeyres quantity index.
Correct answer: The Laspeyres quantity index327. The Laspeyres and Paasche index are examples of_________________?
- A. Aggregate index numbers
- B. Weighted index numbers
- C. Weighted price index only
- D. Weighted quantity index only
Explanation: Laspeyres and Paasche indices use weights, usually quantities from the base or current period, so both belong to weighted index numbers. They are not limited only to price or quantity indices because the general classification is weighted indices.
Correct answer: Weighted index numbers328. A simple aggregate price index_____________?
- A. Ignores relative quantities
- B. Compares relative quantities to relative prices
- C. Compares absolute prices to absolute quantities
- D. Compares relative quantities
Explanation: A simple aggregate price index is calculated from the sum of current prices divided by the sum of base-period prices, multiplied by 100. Since no quantities appear in this formula, it ignores relative quantities.
Correct answer: Ignores relative quantities329. The ratio of a new price to the base year price is called the___________?
- A. Price decrease
- B. Price absolute
- C. Price increase
- D. Price relative
Explanation: A price relative compares a commodity's price in the new period with its price in the base period, usually written as Pn/Po × 100. It measures the percentage level of the new price relative to the base price.
Correct answer: Price relative330. The index number of base period is always:_______________?
- A. 100
- B. 200
- C. The price of that year
- D. None of these
Explanation: The base period is assigned an index value of 100 by convention, and all other period values are interpreted relative to it. The actual base-year price is not itself the index number.
Correct answer: 100