Question 1

The Consumer Price Index is ______________.

Accepted Answer

A)  an annual price index published by the Bureau of Labor Statistics to measure the percent change in stock market indexes such as the DJIA 
B)  a Laspeyres index that allows consumers to determine the degree to which their purchasing power is being eroded by price increases 
C)  a monthly price index that measures the change in price of a fixed market basket of goods and services from one period to another 
D)  both a Laspeyres index that allows consumers to determine the degree to which their purchasing power is being eroded by price increases and a monthly price index that measures the change in price of a fixed market basket of goods and services from one period to another 
A)  an annual price index published by the Bureau of Labor Statistics to measure the percent change in stock market indexes such as the DJIA 
B)  a Laspeyres index that allows consumers to determine the degree to which their purchasing power is being eroded by price increases 
C)  a monthly price index that measures the change in price of a fixed market basket of goods and services from one period to another 
D)  both a Laspeyres index that allows consumers to determine the degree to which their purchasing power is being eroded by price increases and a monthly price index that measures the change in price of a fixed market basket of goods and services from one period to another D

Question 2

The Laspeyres method computes a weighted index.

Accepted Answer

A) True 
 B)False  True

Question 3

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown next.   What is your interpretation of the Laspeyres price index?

Accepted Answer

A)  Value rose 16.67%. 
B)  Value rose 35.56%. 
C)  Value rose 16.71%. 
D)  Value rose 16.45%. 
A)  Value rose 16.67%. 
B)  Value rose 35.56%. 
C)  Value rose 16.71%. 
D)  Value rose 16.45%. C

Question 4

Etienne Laspeyres developed a method in the latter part of the 18th century to determine a weighted index using base-period weights.

Accepted Answer

A) True 
 B)False

Question 5

The following data was collected on mutual fund prices.   Compute a simple aggregate index comparing mutual fund prices in 2010 to mutual fund prices in 2000.

Accepted Answer

147.22
Explanation: Use formul

Question 6

The purpose of an index is to _____________________________________.

Accepted Answer

express ch

Question 7

The ________ method of computing index numbers has the advantage that the consumption pattern is always up-to-date.

Accepted Answer

The answer of The ________ method of computing index numbers...

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Suppose your annual 2005 salary was $95,000 and your 2010 salary was $125,000. Assume the annual CPI rose from 177.1 to 215.9 during this period of time. What was the purchasing power of the dollar in 2010?

Accepted Answer

$0.463
Exp

Question 10

Another term for real income is _______________.

Accepted Answer

The answer of Another term for real income is _______________....

Question 11

The S&P 500 is a _______________________.

Accepted Answer

special-pu

Question 12

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 13

The _________ method for computing a weighted price index uses current year weights.

Accepted Answer

The answer of The _________ method for computing a weighted...

Question 14

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown next.   What is the simple price relative for red delicious apples?

Accepted Answer

114.73
Exp

Question 15

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.

Accepted Answer

155.93
Explanation: Use formul

Question 16

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

Question 17

The following data was collected comparing gasoline prices and quantities (millions of gallons).   Compute the Paasche price index to compare gas prices in 2010 to 2000.

Accepted Answer

121.97
Explanation: Use formul

Question 18

The following data was collected comparing gasoline prices and quantities (millions of gallons).   Compute a value index to compare gas prices in 2010 to 2000.

Accepted Answer

167.98
Explanation: Use formul

Question 19

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown next.   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 20

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 
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

The Consumer Price Index is ______________.

The Laspeyres method computes a weighted index.

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown next. What is your interpretation of the Laspeyres price index?

Etienne Laspeyres developed a method in the latter part of the 18^th century to determine a weighted index using base-period weights.

The following data was collected on mutual fund prices. Compute a simple aggregate index comparing mutual fund prices in 2010 to mutual fund prices in 2000.

The purpose of an index is to _____________________________________.

The ________ method of computing index numbers has the advantage that the consumption pattern is always up-to-date.

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

Suppose your annual 2005 salary was $95,000 and your 2010 salary was $125,000. Assume the annual CPI rose from 177.1 to 215.9 during this period of time. What was the purchasing power of the dollar in 2010?

Another term for real income is _______________.

The S&P 500 is a _______________________.

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

The _________ method for computing a weighted price index uses current year weights.

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown next. What is the simple price relative for red delicious apples?

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.

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

The following data was collected comparing gasoline prices and quantities (millions of gallons). Compute the Paasche price index to compare gas prices in 2010 to 2000.

The following data was collected comparing gasoline prices and quantities (millions of gallons). Compute a value index to compare gas prices in 2010 to 2000.

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

Besides measuring change in the prices of goods and services, the consumer price index has a number of other applications such as:

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

The Consumer Price Index is ______________.

The Laspeyres method computes a weighted index.

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown next. What is your interpretation of the Laspeyres price index?

Etienne Laspeyres developed a method in the latter part of the 18th century to determine a weighted index using base-period weights.

The following data was collected on mutual fund prices. Compute a simple aggregate index comparing mutual fund prices in 2010 to mutual fund prices in 2000.

The purpose of an index is to _____________________________________.

The ________ method of computing index numbers has the advantage that the consumption pattern is always up-to-date.

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

Suppose your annual 2005 salary was $95,000 and your 2010 salary was $125,000. Assume the annual CPI rose from 177.1 to 215.9 during this period of time. What was the purchasing power of the dollar in 2010?

Another term for real income is _______________.

The S&P 500 is a _______________________.

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

The _________ method for computing a weighted price index uses current year weights.

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown next. What is the simple price relative for red delicious apples?

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.

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

The following data was collected comparing gasoline prices and quantities (millions of gallons). Compute the Paasche price index to compare gas prices in 2010 to 2000.

The following data was collected comparing gasoline prices and quantities (millions of gallons). Compute a value index to compare gas prices in 2010 to 2000.

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

Besides measuring change in the prices of goods and services, the consumer price index has a number of other applications such as:

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

Etienne Laspeyres developed a method in the latter part of the 18^th century to determine a weighted index using base-period weights.

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