
Index Numbers Quiz
47 questions

1. What is a price relative?
1 m

2. Which method is more suitable to compare the changes in a variable at two different time period?
1 m

3. If the quantity index number of an item for a certain year is 130, interpret it.
1 m

4. What is a base year?
1 m

5. Write the formula for the conversion of chain base index number into fixed base index number.
1 m

6. Define index number.
1 m

7. Define cost of living index number.
1 m

8. What is weight?
1 m

9. What is implicit weight?
1 m

10. Name the important basic tests of index numbers.
1 m

11. What is a chain base index number?
1 m

12. 'The price index number of oil is ` 500.' State whether this statement is true or false and if false, correct and rewrite it.
1 m

13. Which index number is used to find the rate of inflation? Write the formula to find the rate of inflation.
1 m

14. Which index number is used in India to find the rate of dearness allowance?
1 m

15. State the main difference between fixed base method and chain base method.
1 m

16. In which method does the base year change each year?
1 m

17. Which is the appropriate average for the construction of index number?
1 m

18. What kind of year should be selected as base year in the calculation of index number?
1 m

19. Which are the two methods to measure the changes in the values of any variable at two different times?
1 m

20. What do you mean by relative change?
1 m

21. What is index number?
1 m

22. Is an index number an absolute measure or a relative measure?
1 m

23. What is meant by current year?
1 m

24. Write down the formula to find index number of n items from price relatives.
1 m

25. How are the price relatives of a commodity expressed to make the comparison of price of commodity easy?
1 m

26. Use of which measure is convenient to study the change in prices of a commodity?
1 m

27. How are the changes in the value of a variable compared through index number?
1 m

28. What is the index number of base year?
1 m

29. If the base year with normal conditions is not available, then how is the price of base year taken?
1 m

30. Which methods are used to select the base year?
1 m

31. Write the main characteristics of fixed base method.
1 m

32. Write the main characteristics of chain base method.
1 m

33. Write down the formula to change index number of fixed base into index number of chain base?
1 m

34. In which method of index number, question of deciding the base year does not arise?
1 m

35. In which method of index number does the base year remain constant?
1 m

36. Write the formula to change index number of chain base into index number of fixed base.
1 m

37. Mention the formula for Laspeyre's index number.
1 m

38. Mention the formula for Paasche's index number.
1 m

39. Write down the formula for ideal index number.
1 m

40. Mention the important points to consider during the construction of cost of living index number.
1 m

41. Mention the types of weight in the study of index number.
1 m

42. What is the major difference between indirect weight and direct weight.
1 m

43. What is meant by direct weight?
1 m

44. Into which five sections is the information collected from the sample families divided during the family budget inquiry?
1 m

45. Which are the two popular methods for direct weight in the construction of index number?
1 m

46. What is taken as weight of price relative in family budget method?
1 m

47. Write down the formula for index number from the following two situations in total expenditure method of giving weight.
1 m

48. Explain the selection of average in the construction of index number.
1 m

49. Mention the ideal average and the suitable average for the construction of index number.
1 m

50. Which year's price of commodity is taken as weight in family budget method of cost of living index number?
1 m

51. Write down the formula for real wages from monthly wages and cost of living index number.
1 m

52. Check the facts of the statement: Index number of production of commodity is 250 ton.
1 m

53. Correct the statement: Index number of price of rice is ` 360.
1 m

54. At a point of two time piece of jaggery per kilogram is increased from ` 40 to
` 50, what is the price index number jaggery?
1 m

55. If the price of a commodity becomes 2.5 times of itself then what is the index number of price?
1 m

57. Index number of the year 2016 relative to year 2015 for the production of a commodity is 160. Then what is the percentage change in the production of a commodity?
1 m

58. If the price of a commodity increases three times, then what is the index number of price?
1 m

59. Price of commodity increases from ` 40 per 5 kg to ` 120 for 10 kg then what is the index number of price?
1 m

60. Price of current year of a commodity is times the price of base year then what is the index number of price of current year?
1 m

61. Production in the year 2016 was 40 ton and production in the year 2015 was 30 ton. Then what is the change in production in year 2015 in relation to year 2016.
1 m

62. There is 80% increase in sale of wheat in the year 2016 in relation to the year 2015 then what is the index number of sale of wheat in the year 2016?
1 m

63. Index number of price of commodity in year 2016 with base year 2015 is 125, then what is the index number of price of commodity in year 2015 with base year 2016?
1 m

Chapter 1 Practice Material
360 KB

Statistics Important Theory
2.9 MB