Free Index Numbers and Time Series MCQs with Answers
34 Index Numbers and Time Series MCQs from Statistics, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.
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11. The weighty system changed with _______________?
- A. Yearly
- B. Basely
- C. Timely
- D. Averagely
Explanation: A weighting system changes with time when the relative importance or consumption pattern of items changes across periods. Thus, “timely” is the intended, though grammatically imperfect, option.
Correct answer: Timely12. Link relative = ________________?
- A. Pn/Po x 100
- B. Pn/Po x 100
- C. Pn/ Pn-1 x100
- D. Pn/P1 x 100
Explanation: A link relative compares the current period with the immediately preceding period, so it is Pₙ/Pₙ₋₁ × 100. Pₙ/P₀ × 100 is a fixed-base relative, not a link relative.
Correct answer: Pn/ Pn-1 x10013. Single number which shows ___________ changes in a phenomenon is called an Index Number?
- A. Overall
- B. Same
- C. Variation
- D. Capable
Explanation: An index number condenses the overall change in one or more related variables into a single figure, usually relative to a base period. The other choices do not describe this summarising purpose.
Correct answer: Overall14. The object of Index number also determines its _______________?
- A. Index Number
- B. Special purpose
- C. Reliable
- D. Scope
Explanation: The objective of constructing an index determines its scope, including the variables, items, population and period covered. A special-purpose index is one possible type, not what the object itself determines.
Correct answer: Scope15. 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: Three16. 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's17. 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 number18. 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: Purpose19. 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 year20. 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 index