Exam 15: Chi-Square Applications

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 Aggregate price index for 2014.

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 2004.

The following data was collected comparing car prices and quantity sold (thousands). Compute the Paasche price index to compare car prices in 2010 to 2000.

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

An index of clothing prices for 2014 based on 2000 is to be constructed. The prices for 2000 and 2014 and the quantity consumed in 2000 are shown below. Assuming that the number sold remained constant, i.e., the same number were sold in 2014 as in 2000, what is the weighted index of price for 2014 using 2000 as the base?

The 2001 CPI was 171.1 (1982-84 = 100). What is the purchasing power of the dollar relative to the Base?

The Consumer Price Index in June 1998 was 248.4 (1982-84 = 100). What does this indicate about Prices from 1982-84 to June 1998?

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 and old age security pensions are periodically adjusted based on The Consumer Price Index. iii. The largest component of the Canadian CPI is Food.

How is the purchasing power of the dollar computed?

The number of items produced and the price per item for the Duffy Manufacturing Company are: What is the value index of production for 2000 using 1990 as the base period?

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.

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 2005.

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 Italian, G.R. Carli, has been credited with originating Fisher's Ideal Index. iii. Converting data to indexes makes it easier to compare the trend in a series composed of exceptionally large numbers.

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 2003.

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

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 determined by finding the inverse of the CPI.

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.

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

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.

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?