Question 1

How can indexes be classified?

Accepted Answer

A) Price 
B) Quantity 
C) Value 
D) Weighted or unweighted 
A) Price 
B) Quantity 
C) Value 
D) Weighted or unweighted

Question 2

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

Question 3

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown in the following table.   What is Fisher's ideal index?

Accepted Answer

A) 112.33 
B) 179.08 
C) 111.97 
D) 109.36 
A) 112.33 
B) 179.08 
C) 111.97 
D) 109.36

Question 4

The following is Jim Walker's income for 1995 and 2007.   What was Jim's real income for 2007?

Accepted Answer

A) $37,000 
B) $67,000 
C) $34,387 
D) $38,908 
A) $37,000 
B) $67,000 
C) $34,387 
D) $38,908

Question 5

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

Accepted Answer

A) 112.70 
B) 179.08 
C) 111.97 
D) 109.36 
A) 112.70 
B) 179.08 
C) 111.97 
D) 109.36

Question 6

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

Accepted Answer

A) Value rose 28.8%. 
B) Value rose 15.6%. 
C) Value rose 17.5%. 
D) Value rose 20.0%. 
A) Value rose 28.8%. 
B) Value rose 15.6%. 
C) Value rose 17.5%. 
D) Value rose 20.0%.

Question 7

One function of the CPI is to allow consumers to determine the degree to which their purchasing power is being eroded by price increases.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) 116.45 
B) 116.71 
C) 116.67 
D) 131.56 
A) 116.45 
B) 116.71 
C) 116.67 
D) 131.56

Question 9

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown in the following table.   What is your interpretation of the Laspeyres price 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 10

Sean McCarthy earns $20,000 a year,while John Nowak earns $35,000. What is John's income as an index using Sean's income as the base?

Accepted Answer

A) 175.0 
B) 75.0 
C) 100.0 
D) 57.1 
A) 175.0 
B) 75.0 
C) 100.0 
D) 57.1

Question 11

The CPI for "personal computers and peripheral equipment" in June 2006 was 10.7 (1982-1984 = 100). Interpret this index.

Accepted Answer

A) There was no significant increase in the price of "personal computers and peripheral equipment." 
B) The price of "personal computers and peripheral equipment" increased 10.7%. 
C) The price of "personal computers and peripheral equipment" decreased 89.3%. 
D) If the average price of a computer in 1982-1984 was $3,000,the CPI for "personal computers and peripheral equipment" would predict that the price of a computer in June 2006 would be $893. 
A) There was no significant increase in the price of "personal computers and peripheral equipment." 
B) The price of "personal computers and peripheral equipment" increased 10.7%. 
C) The price of "personal computers and peripheral equipment" decreased 89.3%. 
D) If the average price of a computer in 1982-1984 was $3,000,the CPI for "personal computers and peripheral equipment" would predict that the price of a computer in June 2006 would be $893.

Question 12

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

Accepted Answer

A) 116.45 
B) 116.71 
C) 116.67 
D) 131.56 
A) 116.45 
B) 116.71 
C) 116.67 
D) 131.56

Question 13

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

Accepted Answer

A) Value rose 16.67%. 
B) Value rose 31.56%. 
C) Value rose 16.71%. 
D) Value rose 16.45%. 
A) Value rose 16.67%. 
B) Value rose 31.56%. 
C) Value rose 16.71%. 
D) Value rose 16.45%.

Question 14

The Laspeyres method uses the amounts consumed in the base period,q0,as weights to determine a price index.

Accepted Answer

A) True 
 B)False

Question 15

If the average wage was $7.67 per hour in 1998 and $14.90 per hour last month,what is the index of hourly wages for last month based on the 1998 information?

Accepted Answer

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

Question 16

How is the purchasing power of the dollar computed?

Accepted Answer

A) ($1/CPI)(100) 
B) ($1 − CPI)(100) 
C) ($1 × CPI)(100) 
D) (CPI/$1)(100) 
A) ($1/CPI)(100) 
B) ($1 − CPI)(100) 
C) ($1 × CPI)(100) 
D) (CPI/$1)(100)

Question 17

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown in the following table.   What is the unweighted aggregate price index?

Accepted Answer

A) 112.70 
B) 179.08 
C) 111.97 
D) 109.36 
A) 112.70 
B) 179.08 
C) 111.97 
D) 109.36

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

A) 112.70 
B) 179.08 
C) 111.97 
D) 109.36 
A) 112.70 
B) 179.08 
C) 111.97 
D) 109.36

Question 20

The wholesale price of a straight-back desk chair in 2004 was $70; in 2005,$80.50; and in 2006,$63. What were the indexes for 2005 and 2006 using 2004 = 100?

Accepted Answer

A) 115.0 and 90.0 
B) 1.15 and 0.9 
C) 1,150.0 and 900.0 
D) 87.0 and 111.1 
A) 115.0 and 90.0 
B) 1.15 and 0.9 
C) 1,150.0 and 900.0 
D) 87.0 and 111.1

How can indexes be classified?

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

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown in the following table. What is Fisher's ideal index?

The following is Jim Walker's income for 1995 and 2007. What was Jim's real income for 2007?

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

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

One function of the CPI is to allow consumers to determine the degree to which their purchasing power is being eroded by price increases.

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

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

Sean McCarthy earns $20,000 a year,while John Nowak earns $35,000. What is John's income as an index using Sean's income as the base?

The CPI for "personal computers and peripheral equipment" in June 2006 was 10.7 (1982-1984 = 100). Interpret this index.

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

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

The Laspeyres method uses the amounts consumed in the base period,q₀,as weights to determine a price index.

If the average wage was $7.67 per hour in 1998 and $14.90 per hour last month,what is the index of hourly wages for last month based on the 1998 information?

How is the purchasing power of the dollar computed?

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown in the following table. What is the unweighted aggregate price index?

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

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

The wholesale price of a straight-back desk chair in 2004 was $70; in 2005,$80.50; and in 2006,$63. What were the indexes for 2005 and 2006 using 2004 = 100?

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

Exam 17: Index Numbers

How can indexes be classified?

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

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown in the following table. What is Fisher's ideal index?

The following is Jim Walker's income for 1995 and 2007. What was Jim's real income for 2007?

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

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

One function of the CPI is to allow consumers to determine the degree to which their purchasing power is being eroded by price increases.

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

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

Sean McCarthy earns $20,000 a year,while John Nowak earns $35,000. What is John's income as an index using Sean's income as the base?

The CPI for "personal computers and peripheral equipment" in June 2006 was 10.7 (1982-1984 = 100). Interpret this index.

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

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

The Laspeyres method uses the amounts consumed in the base period,q0,as weights to determine a price index.

If the average wage was $7.67 per hour in 1998 and $14.90 per hour last month,what is the index of hourly wages for last month based on the 1998 information?

How is the purchasing power of the dollar computed?

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown in the following table. What is the unweighted aggregate price index?

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

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

The wholesale price of a straight-back desk chair in 2004 was $70; in 2005,$80.50; and in 2006,$63. What were the indexes for 2005 and 2006 using 2004 = 100?

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

The Laspeyres method uses the amounts consumed in the base period,q₀,as weights to determine a price index.