Exam 15: Chi-Square Applications

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. To deflate sales, the actual sales are multiplied by the wholesale price index and the result Multiplied by 100.

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 the European Union produce than the United States?

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. An index of 239.2 and an index of 86.4 are actually percents. iii. All indexes have the same base, namely 1982-84, written 1982 - 84 = 100.

i. The base number for most indexes is 1. ii. Most business and economic indexes are carried either to the nearest whole percent, such as 312 Or 96, or to the nearest 10th of a percent, such as 97.5 and 178.6. iii. Converting data to indexes makes it easier to compare the trend in a series composed of Exceptionally large numbers.

The following data was collected on mutual fund prices. Compute value index to compare mutual fund prices in 2015 to 2010.

The wholesale price of a straight back desk chair in 2012 was $20; in 2013, $23; and in 2014, $18. What were the indexes for 2012 and 2014 using 2013 = 100?

i. No systematic approach to collecting and reporting data in index form was evident in North America until about 1900. ii. The CPI can be used in determining "real" income. iii. Purchasing power of the dollar is determined by finding the inverse of the CPI.

What component(s) does the CPI include?

i. The base period for one index might be 1982-84, while the base period for another index might be 1977. ii. The base number for most indexes is 1. iii. Most business and economic indexes are carried either to the nearest whole percent, such as 312 or 96, or to the nearest 10th of a percent, such as 97.5 and 178.6.

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. 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. The largest component of the Canadian CPI is Food.

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

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

Real income is computed by:

An index which compares current prices times current quantities to base period prices times base Period quantities called?

Prices and the number produced for selected agricultural items are: Using the Laspeyres method, what is the price index for these items for 2014 (2000 = 100)?

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 price of food 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.

If the Laspeyres index is 135.41 and the Paasche index is 145.34, what is Fisher's ideal 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 2009?

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.

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?