Question 1

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown in the following table.   What is the Laspeyres price index?

Accepted Answer

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

Question 2

A monthly price index that describes the changes in prices from one period to another for a "market basket" of goods and services is known as the ________.

Accepted Answer

A) Laspeyres index 
B) Deflator index 
C) Consumer Price Index 
D) Paasche index 
A) Laspeyres index 
B) Deflator index 
C) Consumer Price Index 
D) Paasche index C

Question 3

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown in the following table.   What is the Laspeyres price index?

Accepted Answer

A) 116.45 
B) 116.72 
C) 116.67 
D) 131.56 
A) 116.45 
B) 116.72 
C) 116.67 
D) 131.56 B

Question 4

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown in the following table.   What is the unweighted aggregate price index?

Accepted Answer

A) 98.4 
B) 107.0 
C) 117.5 
D) 128.8 
A) 98.4 
B) 107.0 
C) 117.5 
D) 128.8

Question 5

Besides measuring change in the prices of goods and services,the Consumer Price Index has a number of other applications such as ________.

Accepted Answer

A) to determine real disposable personal income 
B) to deflate sales or other data series 
C) to find the purchasing power of the dollar 
D) all of these answers are correct 
A) to determine real disposable personal income 
B) to deflate sales or other data series 
C) to find the purchasing power of the dollar 
D) all of these answers are correct

Question 6

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown in the following table.   What is Fisher's ideal index?

Accepted Answer

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

Question 7

An index number is a percent that measures the change in price,quantity,or value,compared to a base period.

Accepted Answer

A) True 
 B)False

Question 8

In January 2004,the price of coffee was $0.74 per pound. By January 2011,the price of coffee had increased to $2.63. The simple index is about ________.

Accepted Answer

A) 0.48 
B) 0.28 
C) 355 
D) 189 
A) 0.48 
B) 0.28 
C) 355 
D) 189

Question 9

An index number is a percent that measures the change from one period of time to another in terms of ________.

Accepted Answer

A) value 
B) price 
C) quantity 
D) Any of these answers is correct. 
A) value 
B) price 
C) quantity 
D) Any of these answers is correct.

Question 10

Two methods of computing a weighted price index are the Laspeyres method and the Paasche method.

Accepted Answer

A) True 
 B)False

Question 11

In the numerator of a value index,the price and quantity are both from the current period.

Accepted Answer

A) True 
 B)False

Question 12

A simple aggregate index compares the sum of values in the current period to the sum of values in a base period.

Accepted Answer

A) True 
 B)False

Question 13

The Simple Index P (simple price index)can be calculated by ________.

Accepted Answer

A) dividing a base-period price by a selected period price and multiplying the result by 100 
B) dividing a given period price by a base-period price and dividing the result by 100 
C) dividing a given period price by a base-period price and multiplying the result by 100 
D) calculating the simple average of the price relatives 
A) dividing a base-period price by a selected period price and multiplying the result by 100 
B) dividing a given period price by a base-period price and dividing the result by 100 
C) dividing a given period price by a base-period price and multiplying the result by 100 
D) calculating the simple average of the price relatives

Question 14

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown in the following table.   What is Fisher's ideal index?

Accepted Answer

A) 116.69 
B) 179.08 
C) 111.97 
D) 109.36 
A) 116.69 
B) 179.08 
C) 111.97 
D) 109.36

Question 15

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown in the following table.   What is the interpretation of the value index?

Accepted Answer

A) Value rose 9.4%. 
B) Value rose 79.1%. 
C) Value rose 12.7%. 
D) Value rose 12.0%. 
A) Value rose 9.4%. 
B) Value rose 79.1%. 
C) Value rose 12.7%. 
D) Value rose 12.0%.

Question 16

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown in the following table.   What is your interpretation of the Laspeyres price index?

Accepted Answer

A) Prices rose 98.4%. 
B) Prices declined 1.6%. 
C) Prices rose 7.0%. 
D) Prices rose 8.0%. 
A) Prices rose 98.4%. 
B) Prices declined 1.6%. 
C) Prices rose 7.0%. 
D) Prices rose 8.0%.

Question 17

A weighted price index that uses current-period quantities as weights is known as ________.

Accepted Answer

A) Fisher's ideal index 
B) the Laspeyres index 
C) the Paasche index 
D) the value index 
A) Fisher's ideal index 
B) the Laspeyres index 
C) the Paasche index 
D) the value index

Question 18

Prices and the number produced for selected agricultural items are as follows.   Using the Laspeyres method,what is the price index of agricultural production for 2006 (1980 = 100)?

Accepted Answer

A) 42.5 
B) 129.7 
C) 117.1 
D) 85.3 
A) 42.5 
B) 129.7 
C) 117.1 
D) 85.3

Question 19

The CPI for "educational books and supplies" in June of 2006 was 386.7 (1982-1984 = 100). Interpret this index.

Accepted Answer

A) There was no significant increase in the price of "educational books and supplies." 
B) The price of "educational books and supplies" increased 386.7 times. 
C) If the average price of a textbook in 1982-1984 was $25.00,the CPI for "educational books and supplies" would predict that the price of the textbook in June 2006 would be $71.68. 
D) If the average price of a textbook in 1982-1984 was $25.00,the CPI for "educational books and supplies" would predict that the price of the textbook in June 2006 would be $96.68. 
A) There was no significant increase in the price of "educational books and supplies." 
B) The price of "educational books and supplies" increased 386.7 times. 
C) If the average price of a textbook in 1982-1984 was $25.00,the CPI for "educational books and supplies" would predict that the price of the textbook in June 2006 would be $71.68. 
D) If the average price of a textbook in 1982-1984 was $25.00,the CPI for "educational books and supplies" would predict that the price of the textbook in June 2006 would be $96.68.

Question 20

An example of a weight used in the calculation of a weighted index is quantity consumed in a base period.

Accepted Answer

A) True 
 B)False

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown in the following table. What is the Laspeyres price index?

A monthly price index that describes the changes in prices from one period to another for a "market basket" of goods and services is known as the ________.

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown in the following table. What is the Laspeyres price index?

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown in the following table. What is the unweighted aggregate price index?

Besides measuring change in the prices of goods and services,the Consumer Price Index has a number of other applications such as ________.

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown in the following table. What is Fisher's ideal index?

An index number is a percent that measures the change in price,quantity,or value,compared to a base period.

In January 2004,the price of coffee was $0.74 per pound. By January 2011,the price of coffee had increased to $2.63. The simple index is about ________.

An index number is a percent that measures the change from one period of time to another in terms of ________.

Two methods of computing a weighted price index are the Laspeyres method and the Paasche method.

In the numerator of a value index,the price and quantity are both from the current period.

A simple aggregate index compares the sum of values in the current period to the sum of values in a base period.

The Simple Index P (simple price index)can be calculated by ________.

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown in the following table. What is Fisher's ideal index?

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown in the following table. What is the interpretation of the value index?

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown in the following table. What is your interpretation of the Laspeyres price index?

A weighted price index that uses current-period quantities as weights is known as ________.

Prices and the number produced for selected agricultural items are as follows. Using the Laspeyres method,what is the price index of agricultural production for 2006 (1980 = 100)?

The CPI for "educational books and supplies" in June of 2006 was 386.7 (1982-1984 = 100). Interpret this index.

An example of a weight used in the calculation of a weighted index is quantity consumed in a base period.

What Is Statistics

Describing Data: Frequency Tables, Frequency Distributions, and Graphic Presentation

Describing Data: Numerical Measures

Describing Data: Displaying and Exploring Data

A Survey of Probability Concepts

Discrete Probability Distributions

Continuous Probability Distributions

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Correlation and Linear Regression

Multiple Regression Analysis

Nonparametric Methods: Nominal Level Hypothesis Tests

Nonparametric Methods: Analysis of Ordinal Data

Time Series and Forecasting

Statistical Process Control and Quality Management

An Introduction to Decision Theory

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Exam 17: Index Numbers

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown in the following table. What is the Laspeyres price index?

A monthly price index that describes the changes in prices from one period to another for a "market basket" of goods and services is known as the ________.

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown in the following table. What is the Laspeyres price index?

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown in the following table. What is the unweighted aggregate price index?

Besides measuring change in the prices of goods and services,the Consumer Price Index has a number of other applications such as ________.

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown in the following table. What is Fisher's ideal index?

An index number is a percent that measures the change in price,quantity,or value,compared to a base period.

In January 2004,the price of coffee was $0.74 per pound. By January 2011,the price of coffee had increased to $2.63. The simple index is about ________.

An index number is a percent that measures the change from one period of time to another in terms of ________.

Two methods of computing a weighted price index are the Laspeyres method and the Paasche method.

In the numerator of a value index,the price and quantity are both from the current period.

A simple aggregate index compares the sum of values in the current period to the sum of values in a base period.

The Simple Index P (simple price index)can be calculated by ________.

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown in the following table. What is Fisher's ideal index?

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown in the following table. What is the interpretation of the value index?

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown in the following table. What is your interpretation of the Laspeyres price index?

A weighted price index that uses current-period quantities as weights is known as ________.

Prices and the number produced for selected agricultural items are as follows. Using the Laspeyres method,what is the price index of agricultural production for 2006 (1980 = 100)?

The CPI for "educational books and supplies" in June of 2006 was 386.7 (1982-1984 = 100). Interpret this index.

An example of a weight used in the calculation of a weighted index is quantity consumed in a base period.

What Is Statistics

Describing Data: Frequency Tables, Frequency Distributions, and Graphic Presentation

Describing Data: Numerical Measures

Describing Data: Displaying and Exploring Data

A Survey of Probability Concepts

Discrete Probability Distributions

Continuous Probability Distributions

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Correlation and Linear Regression

Multiple Regression Analysis

Nonparametric Methods: Nominal Level Hypothesis Tests

Nonparametric Methods: Analysis of Ordinal Data

Time Series and Forecasting

Statistical Process Control and Quality Management

An Introduction to Decision Theory

Filters