Tag: applied statistics

Quizzes (6) Questions (70)

Questions Related to applied statistics

Multiple choice business mathematics and statistics introduction to index number introduction to index numbers index numbers applied statistics

How many types are used for the calculation of index numbers:

  1. $2$
  2. $3$
  3. $4$
  4. $5$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

$\Rightarrow$  There are $Two$ types used for the calculation of index numbers.

$\Rightarrow$  Types of calculating index numbers are :
$(1)$  Simple Aggregative Method.
$(2)$  Simple Average of price relative method.

Multiple choice business mathematics and statistics introduction to index number introduction to index numbers index numbers applied statistics

An index number is called a simple index when it is computed from: 

  1. Single variable

  2. Bi-variable

  3. Multiple variables

  4. None of them
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

$\Rightarrow$  An index number is called a simple index when it is computed from : $Single\, variable$.

$\Rightarrow$  Simple index numbers grant equal importance to all items no matter what share it has. In other words, it considers each item to be equal with respect to the given variable. 
$\Rightarrow$  A simple index number is a number that measures a relative change in a single variable with respect to a base.

Multiple choice business mathematics and statistics introduction to index number introduction to index numbers index numbers applied statistics

Consumer price index indicates:

  1. Rise

  2. Fall

  3. Both (a) and (b)

  4. Neither (a) and (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Consumer Price Index (CPI) indicates the measure of the average change over time in the prices paid by consumers for a market basket of consumer goods and services.

It indicates both Rise and Fall in the price.
Multiple choice business mathematics and statistics introduction to index number introduction to index numbers index numbers applied statistics

Consumer price index numbers are obtained by:

  1. Laspeyre's formula

  2. Fisher ideal formula

  3. Marshall Edgeworth formula

  4. Paasche's formula
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

CPI figures for most countries are usually calculated by using a Laspeyre's Index or Lowe Index.


The CPI calculated via a Paasche index, helps give an idea of what today basket would have cost at yesterday prices.
Answer. (A)

Multiple choice business mathematics and statistics introduction to index number introduction to index numbers index numbers applied statistics

Most commonly used index number is:

  1. Volume index number

  2. Value index number

  3. Price index number

  4. Simple index number
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Price Index Number is a normalized average (typically a weighted average) of price relatives for a given class of goods or services in a given region, during a given interval of time. It is the most commonly used index number.

Multiple choice business mathematics and statistics introduction to index number introduction to index numbers index numbers applied statistics

When the price of a year is. divided by the price of a particular year we get:

  1. Simple relative

  2. Link relative

  3. (a) and (b) both

  4. None of them
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

$\Rightarrow$  When the price of year is divided by the price of particular year we get : $Simple\,\,relative.$

$\Rightarrow$  Under this method, the price Index for a given year is calculated as the simple average of the price relatives of the different items included in the index numbers. 
$\Rightarrow$  The simple average used, here, may be of any type viz. arithmetic mean, geometric mean, harmonic mean, median or mode, but arithmetic mean is usually preferred to, for its simplicity in calculation and geometric mean for its ability of measuring the relative changes which is the inherent feature of an index number.

Multiple choice business mathematics and statistics introduction to index number introduction to index numbers index numbers applied statistics

When the price of a divided by the price of the preceding year, we, get:

  1. Value index

  2. Link relative

  3. Simple relative

  4. None of them
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

$\Rightarrow$  When the price of divided by the price of the preceding year, we get : $Link\,\,relative.$

$\Rightarrow$  This method is based on the assumption that the trend is linear and cyclical variations are of uniform pattern. 
$\Rightarrow$  The link relatives are percentages of the current period (quarter or month) as compared with the previous period. With the computations of the link relatives and their average, the effect of cyclical and the random components is minimized. Further, the trend gets eliminated in the process of adjustment of chain relatives
$\Rightarrow$  This method is less complicated than the ratio to moving average and the ratio to trend methods.However, this method is based upon the assumption of a linear trend which may not always hold true.