Question 1

If the Laspeyres index is 140.78 and the Paasche index is 98.01, what is Fisher's ideal index?

Accepted Answer

A)  117.144 
B)  117.46 
C)  137.22 
D)  173.14 
A)  117.144 
B)  117.46 
C)  137.22 
D)  173.14 B

Question 2

If the Consumer Price Index is 172.2 (2002 = 100), what is the purchasing power of the dollar?

Accepted Answer

A)  $1.00 
B)  $0.33 
C)  $0.58 
D)  $0.50 
E)  $0.72 
A)  $1.00 
B)  $0.33 
C)  $0.58 
D)  $0.50 
E)  $0.72 C

Question 3

An index of clothing prices for 2014 based on 2000 is to be constructed. The clothing items
Considered are shoes and dresses. The information for prices and quantities for both years is given
Below. Use 2000 as the base period and 100 as the base value.  
Determine the Laspeyres' price index for 2014.

Accepted Answer

A)  111.8 
B)  112.9 
C)  113.3 
D)  112.5 
E)  113.0 
A)  111.8 
B)  112.9 
C)  113.3 
D)  112.5 
E)  113.0 B

Question 4

If the Laspeyres index is 111.95 and the Paasche index is 122.58, what is Fisher's ideal index?

Accepted Answer

A)  117.144 
B)  13722 
C)  137.22 
D)  173.14 
A)  117.144 
B)  13722 
C)  137.22 
D)  173.14

Question 5

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below.   What is Laspeyres' price index?

Accepted Answer

A)  98.4 
B)  107.0 
C)  108.0 
D)  117.5 
E)  115.6 
A)  98.4 
B)  107.0 
C)  108.0 
D)  117.5 
E)  115.6

Question 6

i. 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.
ii. The concept of real income is sometimes called deﬂated income or income expressed in constant
Dollars and the CPI is called the deﬂator.
iii. To deﬂate sales, the actual sales are multiplied by the wholesale price index and the result
Multiplied by 100.

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)  (i), (ii), and (iii) are all false statements. 
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)  (i), (ii), and (iii) are all false statements.

Question 7

In 2000, an executive earned $100,000. In 2009, the executive earned $125,000. The CPI in 2000
Was 172.2, and the CPI in 2009 was 214.537. Using the CPI base, 1982-1984 = 100, what was the real
Income in 2000?

Accepted Answer

A)  $58,265 
B)  $58,072 
C)  $58,000 
D)  $58,999 
A)  $58,265 
B)  $58,072 
C)  $58,000 
D)  $58,999

Question 8

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 9

An index number is a percent that can measure the change from one period of time to another in:

Accepted Answer

A)  Value. 
B)  Price. 
C)  Quantity. 
D)  Volume. 
E)  Value, price, quantity or volume. 
A)  Value. 
B)  Price. 
C)  Quantity. 
D)  Volume. 
E)  Value, price, quantity or volume.

Question 10

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below.
Using the Laspeyres method, what is the price index for these items?

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 11

i. Social security, old-age pensions, many apartment leases and many labor contracts are tied to the
Change in the CPI.
ii. 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."
iii. If two or more series of index numbers have the same year as the base period, then they can be
Compared directly.

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)  (i), (ii), and (iii) are all false statements. 
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)  (i), (ii), and (iii) are all false statements.

Question 12

i. Etienne Laspeyres developed a method in the latter part of the 19th century to determine a
Weighted index using base-period weights.
ii. If we are constructing a weighted index of the price of food for 2000 using the Laspeyres'
Method and 1982-84 = 100, we use the amounts consumed in the base period, q0, as weights.
iii. The Laspeyres' method allows for a meaningful comparison of prices over time; however, if does
Not reﬂect changes in buying patterns over time.

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)  (i), (ii), and (iii) are all false statements. 
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)  (i), (ii), and (iii) are all false statements.

Question 13

The take home pay of an employee working in an urban area for 1995 and 2014 are:   If the CPI rose from 70 in 1995 to 172.2 in 2014 (2002 = 100), what was the "real" take home pay of
The employee in 2014?

Accepted Answer

A)  $5,000 
B)  $7,143 
C)  $11,200 
D)  $7,666 
E)  $13,200 
A)  $5,000 
B)  $7,143 
C)  $11,200 
D)  $7,666 
E)  $13,200

Question 14

i. To deﬂate sales, the actual sales are multiplied by the wholesale price index and the result
Multiplied by 100.
ii. The CPI serves only one major function: as an economic indicator of the rate of inﬂation.
iii. 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.

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)  (iii) is a correct statement, but not (i) or (ii). 
E)  (i), (ii), and (iii) are all false statements 
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)  (iii) is a correct statement, but not (i) or (ii). 
E)  (i), (ii), and (iii) are all false statements

Question 15

The Consumer Price Index (1982-84 = 100) reports a CPI in August 2010 for Rent of Shelter as
239)115. What is the percentage change in the price of Rent of Shelter compared to the base?

Accepted Answer

A)  Increased 139.115 percent 
B)  Decreased 139.115 percent 
C)  Increased 239.115 percent 
D)  Decreased 239.115 percent 
A)  Increased 139.115 percent 
B)  Decreased 139.115 percent 
C)  Increased 239.115 percent 
D)  Decreased 239.115 percent

Question 16

The following table shows the average earnings by gender of Canadian workers.   The changes in earnings for men and women are to be compared. Unfortunately, the base period of
1998 is different for the two groups.
Determine the average earnings increase for both men and women over the period 1998 to 2002.

Accepted Answer

A)  Women's earnings increased by 12.1% and men's earnings increased by 12.0%. 
B)  Women's earnings increased by 7.9% and men's earnings increased by 9.9%. 
C)  Women's earnings increased by 9.6% and men's earnings increased by 10.4%. 
D)  Women's earnings increased by 9.6% and men's earnings decreased by 10.4%. 
E)  Women's earnings increased by 5.9% and men's earnings increased by 4.0%. 
A)  Women's earnings increased by 12.1% and men's earnings increased by 12.0%. 
B)  Women's earnings increased by 7.9% and men's earnings increased by 9.9%. 
C)  Women's earnings increased by 9.6% and men's earnings increased by 10.4%. 
D)  Women's earnings increased by 9.6% and men's earnings decreased by 10.4%. 
E)  Women's earnings increased by 5.9% and men's earnings increased by 4.0%.

Question 17

The 2009 CPI was 214.537 (1982-84 = 100). What is the purchasing power of the dollar relative to
The base?

Accepted Answer

A)  $0.47 
B)  $0.74 
C)  $0.44 
D)  $0.56 
A)  $0.47 
B)  $0.74 
C)  $0.44 
D)  $0.56

Question 18

i. All indexes have the same base, namely 1982-84, written 1982 - 84 = 100.
ii. The base period for one index might be 1982-84, while the base period for another index might
Be 1977.
iii. The base number for most indexes is 1.

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

Question 19

An index of clothing prices for 2014 based on 2000 is to be constructed. The clothing items
Considered are shoes and dresses. The information for prices and quantities for both years is given
Below. Use 2000 as the base period and 100 as the base value.  
Determine the Paasche price index for 2014.

Accepted Answer

A)  111.8 
B)  112.9 
C)  113.3 
D)  112.5 
E)  113.0 
A)  111.8 
B)  112.9 
C)  113.3 
D)  112.5 
E)  113.0

Question 20

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 Japan produce than the United States?

Accepted Answer

A)  184.6 
B)  84.6 
C)  15.4 
D)  52.6 
E)  32.1 
A)  184.6 
B)  84.6 
C)  15.4 
D)  52.6 
E)  32.1

If the Laspeyres index is 140.78 and the Paasche index is 98.01, what is Fisher's ideal index?

If the Consumer Price Index is 172.2 (2002 = 100), what is the purchasing power of the dollar?

An index of clothing prices for 2014 based on 2000 is to be constructed. The clothing items Considered are shoes and dresses. The information for prices and quantities for both years is given Below. Use 2000 as the base period and 100 as the base value. Determine the Laspeyres' price index for 2014.

If the Laspeyres index is 111.95 and the Paasche index is 122.58, what is Fisher's ideal index?

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. What is Laspeyres' price index?

In 2000, an executive earned $100,000. In 2009, the executive earned $125,000. The CPI in 2000 Was 172.2, and the CPI in 2009 was 214.537. Using the CPI base, 1982-1984 = 100, what was the real Income in 2000?

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

An index number is a percent that can measure the change from one period of time to another in:

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. Using the Laspeyres method, what is the price index for these items?

The take home pay of an employee working in an urban area for 1995 and 2014 are: If the CPI rose from 70 in 1995 to 172.2 in 2014 (2002 = 100), what was the "real" take home pay of The employee in 2014?

The Consumer Price Index (1982-84 = 100) reports a CPI in August 2010 for Rent of Shelter as 239)115. What is the percentage change in the price of Rent of Shelter compared to the base?

The 2009 CPI was 214.537 (1982-84 = 100). What is the purchasing power of the dollar relative to The base?

i. All indexes have the same base, namely 1982-84, written 1982 - 84 = 100. ii. The base period for one index might be 1982-84, while the base period for another index might Be 1977. iii. The base number for most indexes is 1.

An index of clothing prices for 2014 based on 2000 is to be constructed. The clothing items Considered are shoes and dresses. The information for prices and quantities for both years is given Below. Use 2000 as the base period and 100 as the base value. Determine the Paasche price index for 2014.

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 Japan produce than the United States?

What Is Statistics

Describing Data: Frequencydistributions and Graphic Presentation

Describing Data: Numerical Measures

Describing Data: Displaying and Exploring Pata

A Sulvey of Probability Concepts

Discrete Probability Distributions

Continuous Probabilitydistributions

Sampling Methods and the Central Umit Theorem

Estimation and Confidence Intervals

One-Sample Tests of Hypothesis

Two Sample Tests of Hypothesis

Analysis of Variance

Linear Regression and Correlation

Multiple Regression and Correlation Analysis

Decision Making and Payoff Tables in Investment Scenarios

Filters

Exam 15: Chi-Square Applications

If the Laspeyres index is 140.78 and the Paasche index is 98.01, what is Fisher's ideal index?

If the Consumer Price Index is 172.2 (2002 = 100), what is the purchasing power of the dollar?

If the Laspeyres index is 111.95 and the Paasche index is 122.58, what is Fisher's ideal index?

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. What is Laspeyres' price index?

In 2000, an executive earned $100,000. In 2009, the executive earned $125,000. The CPI in 2000 Was 172.2, and the CPI in 2009 was 214.537. Using the CPI base, 1982-1984 = 100, what was the real Income in 2000?

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

An index number is a percent that can measure the change from one period of time to another in:

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. Using the Laspeyres method, what is the price index for these items?

The take home pay of an employee working in an urban area for 1995 and 2014 are: If the CPI rose from 70 in 1995 to 172.2 in 2014 (2002 = 100), what was the "real" take home pay of The employee in 2014?

The Consumer Price Index (1982-84 = 100) reports a CPI in August 2010 for Rent of Shelter as 239)115. What is the percentage change in the price of Rent of Shelter compared to the base?

The 2009 CPI was 214.537 (1982-84 = 100). What is the purchasing power of the dollar relative to The base?

i. All indexes have the same base, namely 1982-84, written 1982 - 84 = 100. ii. The base period for one index might be 1982-84, while the base period for another index might Be 1977. iii. The base number for most indexes is 1.

An index of clothing prices for 2014 based on 2000 is to be constructed. The clothing items Considered are shoes and dresses. The information for prices and quantities for both years is given Below. Use 2000 as the base period and 100 as the base value. Determine the Paasche price index for 2014.

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 Japan produce than the United States?

What Is Statistics

Describing Data: Frequencydistributions and Graphic Presentation

Describing Data: Numerical Measures

Describing Data: Displaying and Exploring Pata

A Sulvey of Probability Concepts

Discrete Probability Distributions

Continuous Probabilitydistributions

Sampling Methods and the Central Umit Theorem

Estimation and Confidence Intervals

One-Sample Tests of Hypothesis

Two Sample Tests of Hypothesis

Analysis of Variance

Linear Regression and Correlation

Multiple Regression and Correlation Analysis

Decision Making and Payoff Tables in Investment Scenarios

Filters