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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- 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.
Correct answer: 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.
Correct answer: Ignores relative quantities- 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.
Correct answer: Price relative- 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.
Correct answer: 100- 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.
Correct answer: pn/pn-1 x100- 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.
Correct answer: Change- 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…
Correct answer: Business- 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.
Correct answer: Device- 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.
Correct answer: Quantity Index Number- 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.
Correct answer: Chain Method- 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…
Correct answer: Two- 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.
Correct answer: Price relative- 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.
Correct answer: Simple Aggregation 1. 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.
Correct answer: Time Series