All Free Statistics MCQs with Answers

• A. Three
• B. Two
• C. Four
• D. One

Explanation: Index numbers commonly use three types of averages: arithmetic mean, geometric mean and harmonic mean.

• 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.

• 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…

• 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…

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• A. ∑pn/∑po x100
• B. pn/po x100
• C. pn/pn-1 x100
• D. Both (a) and (b) but not (c)

Explanation: A chain index compares each period with the immediately preceding period, so its link relative is Pn/Pn−1 × 100.

• A. Fixed
• B. Constant
• C. Change
• D. None of these

Explanation: In the chain-base method, the reference period changes from one link to the next, so each period is compared with the preceding period.

• A. Science
• B. Education
• C. Intelligence
• D. Business

Explanation: Index numbers summarize changes in prices, quantities, or values and are widely used in economics and business for comparison and…

• A. variable
• B. Region of goods
• C. Device
• D. CostPolitical Science Mcqs

Explanation: An index number is a statistical device for measuring changes in a variable or a group of related variables over time.

• A. Simple 1. No.
• B. Aggregative 1. No.
• C. Appropriate
• D. Quantity Index Number

Explanation: A quantity index number measures changes in the physical quantities of goods, such as units produced or sold.

• A. Fixed Method
• B. Chain Method
• C. Aggregation Method
• D. Volume

Explanation: In the chain-base method, each period is compared with the immediately preceding period, so the preceding year’s price is used.

• A. Four
• B. Three
• C. Five
• D. Two

Explanation: Weighted index numbers are commonly divided into two main categories: weighted aggregative indices and weighted average-of-price-relatives…

• A. Price relative
• B. Link relative
• C. Retail prices
• D. None of these

Explanation: The price relative is the current-year price divided by the base-year price, multiplied by 100.

• A. Sensitive Price Index number
• B. Consumer Index Number
• C. Simple Aggregation 1. Number
• D. Chain Indices

Explanation: An index covering several items is an aggregate or composite index; the listed option refers to a simple aggregative index number.

• A. Commodities
• B. Time Series
• C. Whole sale
• D. Realtives

Explanation: Seasonal and cyclical movements are components of a time series, and index-number techniques can help measure such variations.