Question 1

The wholesale price of a straight back desk chair in 1998 was $20; in 1999, $23; and in 2000, $18. What were the indexes for 1999 and 2000 using 1999 = 100?

Accepted Answer

A)  115.0 and 90.0 
B)  1.15 and 0.9 
C)  1150.0 and 900.0 
D)  87.0 and 111.1 
E)  87.0 and 78.3 
A)  115.0 and 90.0 
B)  1.15 and 0.9 
C)  1150.0 and 900.0 
D)  87.0 and 111.1 
E)  87.0 and 78.3 D

Question 2

i. An index number is a percent that measures the change in price, quantity, value, or some other item of interest from one time to another.
Ii) The base number for most indexes is 1.
Iii) Converting data to indexes makes it easier to compare the trend in a series composed of exceptionally large numbers.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false C

Question 3

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below.   What is Fisher's Ideal Index?

Accepted Answer

A)  107.5 
B)  102.6 
C)  112.8 
D)  103.2 
E)  102.7 
A)  107.5 
B)  102.6 
C)  112.8 
D)  103.2 
E)  102.7 B

Question 4

The take-home pay of Jon Greene and the CPI for 2003 and 2007 are:   What was Jon's real income in 2007?

Accepted Answer

A)  $50,175.00 
B)  $38,295.96 
C)  $39,650.00 
D)  $40,358.74 
E)  $42,780.27 
A)  $50,175.00 
B)  $38,295.96 
C)  $39,650.00 
D)  $40,358.74 
E)  $42,780.27

Question 5

Listed below are the top-steel producing nations, in millions of tonnes, for the year 2004. Express the amount produced by China, the European Union, Japan, and Russia as an index, using the United
States as a base. What percent more steel does China produce than the United States?

Accepted Answer

A)  197 
B)  252.6 
C)  152.6 
D)  52.6 
E)  47.4 
A)  197 
B)  252.6 
C)  152.6 
D)  52.6 
E)  47.4

Question 6

i. If two or more series of index numbers have the same year as the base period, then they can be compared directly.
Ii) When two or more series of index numbers to be compared do not have the same base period, we select a common base period for all series. Then we use the respective base numbers as the denominators and convert each base to the new base.
Iii) Canada pension plan payments and old age security pensions are periodically adjusted based on the
Consumer Price Index.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 7

i. The concept of real income is sometimes called deflated income or income expressed in constant dollars and the CPI is called the deflator. 
ii. To deflate sales, the actual sales are multiplied by the wholesale price index and the result multiplied by 100.
Iii) The CPI serves only one major function: as an economic indicator of the rate of inflation.

Accepted Answer

A)  (i) is a correct statement, but (ii) and (iii) are incorrect statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i) is a correct statement, but (ii) and (iii) are incorrect statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 8

i. The CPI serves only one major function: as an economic indicator of the rate of inflation. 
ii. To construct a special-purpose index designed to measure general business activity, the weights are based on the judgments of the statistician and assigned to each series.
Iii) The Consumer Price Index measures the change in prices of a fixed market basket of goods and services from one period to another.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 9

i. Canada pension plan payments ad old age security pensions are periodically adjusted based on the Consumer Price Index.
Ii) The largest component of the Canadian CPI is Food.
Iii) Besides measuring change in the prices of goods and services, the consumer price indexes have a number of other applications. The CPI is used to determine real disposable personal income, deflate sales or other series, find the purchasing power of the dollar and establish cost of living increases.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 10

i. To construct a special-purpose index designed to measure general business activity, the weights are based on the judgments of the statistician and assigned to each series.
Ii) The Consumer Price Index measures the change in prices of a fixed market basket of goods and services from one period to another.
Iii) The CPI is not just one index, but includes a large number of groups, subgroups and selected items, such as a food index, a transportation index and a shelter index.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 11

Below is Jim Walker's income for 1985 and 2000.   What was Jim's real income for 2000?

Accepted Answer

A)  $17,000 
B)  $27,000 
C)  $15,799 
D)  $21,487 
E)  $37,000 
A)  $17,000 
B)  $27,000 
C)  $15,799 
D)  $21,487 
E)  $37,000

Question 12

i. An index is a convenient way of comparing changes for different variables, i.e., average income and food prices. 
ii. The concept of real income is sometimes called deflated income. 
iii. Purchasing power of the dollar is the same as the CPI.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 13

The average weekly earnings (including overtime) in Canada since 2003 are given below.   Using 2003 as the base year, determine the index for 2005.

Accepted Answer

A)  101.3 
B)  1.3 
C)  201.3 
D)  103.5 
E)  106.8 
A)  101.3 
B)  1.3 
C)  201.3 
D)  103.5 
E)  106.8

Question 14

The take-home pay of Jon Greene and the CPI for 2003 and 2007 are:   What was Jon's real income in 2003?

Accepted Answer

A)  $34,046.69 
B)  $34,500.00 
C)  $59,880.00 
D)  $41,200.00 
A)  $34,046.69 
B)  $34,500.00 
C)  $59,880.00 
D)  $41,200.00

Question 15

i. When two or more series of index numbers to be compared do not have the same base period, we select a common base period for all series. Then we use the respective base numbers as the denominators and convert each base to the new base. 
ii. Canada pension plan payments ad old age security pensions are periodically adjusted based on the
Consumer Price Index.
Iii) The largest component of the Canadian CPI is Food.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 16

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below.

Accepted Answer

A)  110.3 
B)  98.4 
C)  108.0 
D)  118.5 
E)  115.6 
A)  110.3 
B)  98.4 
C)  108.0 
D)  118.5 
E)  115.6

Question 17

If the average hourly earnings in mining in 1988 were $7.67 and for the most recent month it was $14.90, what is the index of hourly earnings for the most recent month based on 1988?

Accepted Answer

A)  100.0 
B)  186.9 
C)  51.5 
D)  194.3 
E)  151.5 
A)  100.0 
B)  186.9 
C)  51.5 
D)  194.3 
E)  151.5

Question 18

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below.   What is the interpretation of the value index?

Accepted Answer

A)  Total value of purchases rose 10.3% 
B)  Total value of purchases rose 18.5% 
C)  Total value of purchases fell 1.6% 
D)  Total value of purchases rose 8% 
E)  Total value of purchases rose 15.6% 
A)  Total value of purchases rose 10.3% 
B)  Total value of purchases rose 18.5% 
C)  Total value of purchases fell 1.6% 
D)  Total value of purchases rose 8% 
E)  Total value of purchases rose 15.6%

Question 19

i. Millions of employees in automobile, steel and other industries have their wages adjusted upward when the CPI increases. The specifics are in the management-union contracts. These clauses in the contracts are referred to as "cola clauses."
Ii) If two or more series of index numbers have the same year as the base period, then they can be compared directly.
Iii) When two or more series of index numbers to be compared do not have the same base period, we select a common base period for all series. Then we use the respective base numbers as the denominators and convert each base to the new base.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 20

The average weekly earnings (including overtime) in Canada since 2003 are given below.   Using 2003 as the base year, determine the index for 2004.

Accepted Answer

A)  101.3 
B)  1.3 
C)  201.3 
D)  103.5 
E)  106.8 
A)  101.3 
B)  1.3 
C)  201.3 
D)  103.5 
E)  106.8

The wholesale price of a straight back desk chair in 1998 was $20; in 1999, $23; and in 2000, $18. What were the indexes for 1999 and 2000 using 1999 = 100?

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. What is Fisher's Ideal Index?

The take-home pay of Jon Greene and the CPI for 2003 and 2007 are: What was Jon's real income in 2007?

Listed below are the top-steel producing nations, in millions of tonnes, for the year 2004. Express the amount produced by China, the European Union, Japan, and Russia as an index, using the United States as a base. What percent more steel does China produce than the United States?

Below is Jim Walker's income for 1985 and 2000. What was Jim's real income for 2000?

i. An index is a convenient way of comparing changes for different variables, i.e., average income and food prices. ii. The concept of real income is sometimes called deflated income. iii. Purchasing power of the dollar is the same as the CPI.

The average weekly earnings (including overtime) in Canada since 2003 are given below. Using 2003 as the base year, determine the index for 2005.

The take-home pay of Jon Greene and the CPI for 2003 and 2007 are: What was Jon's real income in 2003?

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below.

If the average hourly earnings in mining in 1988 were $7.67 and for the most recent month it was $14.90, what is the index of hourly earnings for the most recent month based on 1988?

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. What is the interpretation of the value index?

The average weekly earnings (including overtime) in Canada since 2003 are given below. Using 2003 as the base year, determine the index for 2004.

What Is Statistics

Describing Data: Frequency Distributions and Graphic Presentation

Describing Data: Numerical Measures

A Survey of Probability Concepts

Discrete Probability Distributions

The Normal Probability Distribution

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of a Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Linear Regression and Correlation

Multiple Regression and Correlation Analysis

Chi-Square Applications for Nominal Data

Time Series and Forecasting

An Introduction to Decision Theory

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Exam 15: Index Numbers

The wholesale price of a straight back desk chair in 1998 was $20; in 1999, $23; and in 2000, $18. What were the indexes for 1999 and 2000 using 1999 = 100?

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. What is Fisher's Ideal Index?

The take-home pay of Jon Greene and the CPI for 2003 and 2007 are: What was Jon's real income in 2007?

Listed below are the top-steel producing nations, in millions of tonnes, for the year 2004. Express the amount produced by China, the European Union, Japan, and Russia as an index, using the United States as a base. What percent more steel does China produce than the United States?

Below is Jim Walker's income for 1985 and 2000. What was Jim's real income for 2000?

i. An index is a convenient way of comparing changes for different variables, i.e., average income and food prices. ii. The concept of real income is sometimes called deflated income. iii. Purchasing power of the dollar is the same as the CPI.

The average weekly earnings (including overtime) in Canada since 2003 are given below. Using 2003 as the base year, determine the index for 2005.

The take-home pay of Jon Greene and the CPI for 2003 and 2007 are: What was Jon's real income in 2003?

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below.

If the average hourly earnings in mining in 1988 were $7.67 and for the most recent month it was $14.90, what is the index of hourly earnings for the most recent month based on 1988?

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. What is the interpretation of the value index?

The average weekly earnings (including overtime) in Canada since 2003 are given below. Using 2003 as the base year, determine the index for 2004.

What Is Statistics

Describing Data: Frequency Distributions and Graphic Presentation

Describing Data: Numerical Measures

A Survey of Probability Concepts

Discrete Probability Distributions

The Normal Probability Distribution

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of a Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Linear Regression and Correlation

Multiple Regression and Correlation Analysis

Chi-Square Applications for Nominal Data

Time Series and Forecasting

An Introduction to Decision Theory

Filters