Tag: index numbers

Quizzes (2) Questions (70)

Questions Related to index numbers

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

A weighted aggregate price index where the weight for each item is its base period quantity is known as the

  1. Paasche Index

  2. Consumer Price Index

  3. Producer Price Index

  4. Laspeyres Index
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A weighted aggregate price index where the weight for each item is its base period quantity is known as the Laspeyres Index.

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

For the given data calculate cost of living index number. is?

Group Food Clothing Fuel and lighting House Rent Miscellenious
I $70$ $90$ $100$ $60$ $80$
W $5$ $3$ $2$ $4$ $6$
  1. $78$
  2. $77$
  3. $92$
  4. $58$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cost of living index number $= \dfrac{\sum I _{i}W _{i}}{\sum W _{i}}$

$\sum I _{i}W _{i} = 1540$

$\sum W _{i} = 20$


$\Rightarrow$ Cost of living index number $= \dfrac{1540}{20} = 77$

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

A quantity index that is designed to measure changes in physical volume or production levels of industrial goods over time is known as the

  1. physical volume index

  2. time index

  3. Index of Industrial Production and Capacity Utilization

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A quantity index that is designed to measure changes in physical volume or production levels of industrial goods over time is known as the Index of Industrial Production and Capacity Utilization.

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

The CLI for the year 1996 and 1999 are $140$ and $200$ respectively.A person earns Rs $11200$ p.m in the year 1996.What should be his earnings in the year 1999 so as to maintain his former standard of living.

  1. Rs$14000$
  2. Rs$15600$
  3. Rs$16000$
  4. Rs$12500$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

CLI for the year $1996 = 140$

CLI for the year $1999 = 200$

Earning p.m. in $1996 = 11200$
Earning p.m. in $1999 = x$

$\Rightarrow$ $140:200 :: 11200:x$
$\Rightarrow$ $x = \dfrac{200}{140}\times 11200$

$\therefore x =$ Rs $16000$ 

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

Find $y$,if cost of living index number is $200$

Group Food Clothing Fuel and lighting House rent Miscellaneous
I $180$ $120$ $160$ $300$ $200$
W $4$ $5$ $3$ $y$ $2$
  1. $12$
  2. $6$
  3. $11$
  4. $7$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cost of living index number $= \dfrac{\sum I _{i}W _{i}}{\sum W _{i}}$

$\sum I _{i}W _{i} = 2200 + 300y$

$\sum W _{i} = 14 + y$


$\Rightarrow$ Cost of living index number $= \dfrac{2200 + 300y}{14 + y} = 200$

$\Rightarrow 2200 + 300y = 2800 + 200y$

$\therefore y = 6$

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

Calculate a price index for the following by using price relative method:

Commodity A B C D E
Price in 1991 (in Rs) 20 40 60 80 100
Price in 1992( in Rs) 70 45 70 90 105

  1. 152.24

  2. 153.33

  3. 159.33

  4. 161.24
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
 $Commodity$ $Price\, in\,1991$$(in\,Rs.)$ $P _0$   $Price\,in\,1992$$(in\,Rs.)$  $P _1$ $Price\, Relative$[$\dfrac{P _1}{P _0}\times 100$ ]
 $A$  $20$  $70$  $350$ 
 $B$  $40$  $45$   $112.5$
 $C$  $60$  $70$  $116.66$
 $D$  $80$  $90$  $112.5$
 $E$  $100$  $105$  $105$
 $Total$      $796.66$

$\Rightarrow$  Price index by using price relative method = $\dfrac{\sum\dfrac{ P _1}{ P _0}\times 100}{N}=\dfrac{796.66}{5}=159.33$

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

Construct an index for 1998 taking 1997 as base by average of Relatives:

Commodity A B C D E
Price in 1997 5 4 8 11 2
Price in 1998 7 6 9 12 2

  1. 122.32

  2. 126.04

  3. 132.32

  4. 134.45
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
 $Commodity$ $Price\,in\,1997$$(in Rs.)\, [P _0]$  $Price\,in\,1998$$(in\,Rs.)\,[P _1]$  $Price\,relative$$\dfrac{P _1}{P _0}\times 100$ 
 $A$ $5$  $7$  $140$ 
$B$  $4$  $6$  $150$ 
$C$  $8$  $9$  $112.5$ 
$D$  $11$  $12$  $109.09$ 
$E$  $2$  $2$  $100$ 
$Total$      $611.59$ 

$\Rightarrow$  $P _{01}=\dfrac{\sum \dfrac{P _1}{P _0}\times 100}{N}=\dfrac{611.59}{5}=122.32$

$\therefore$   Price index for $1998$, takin $1997$ base year is $122.32$