Exam 17: Index Numbers

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown next. What is the simple price relative for peas?

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

If the Laspeyres index is 111.95 and the Paasche index is 122.58, what is Fisher's ideal index?

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

As chief statistician for the county, you want to compute and publish every year a special-purpose index, which you plan to call Index of County Business Activity. Three series seem to hold promise as the basis for the index; namely, the price of cotton, the number of new cars sold, and the rate of money turnover for the county (published by a local bank). Arbitrarily you decide that money turnover should have a weight of 60 percent; number of new cars sold, 30 percent; and the price of cotton, 10 percent. What is the Index of County Business Activity for 1981 (the base year) and for 2006?

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown next. What is the simple price relative for cabbage?

The ________________ index measures the average change in prices received in the primary markets of the United States by producers of commodities.

An index of clothing prices for 2006 based on 1985 is to be constructed. The prices for 1985 and 2006 and the quantity consumed in 1985 are shown next. Assuming that the number sold remained constant , what is the weighted index of price for 2006 using 1985 as the base?

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

If the Consumer Price Index in June 2006 was about 202.9 (1982-84 = 100), what was the purchasing power of the dollar?

List some example items that are included in the CPI that represent a typical "market basket" of goods.

The index for a single commodity is called the __________.

The Consumer Price Index (1982-84 = 100) reports a CPI in August 2010 for Energy as 212.372. What is the percentage change in the price of energy compared to the base?

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 2000?

A value index method computes a simple aggregate index.

Real income is computed by:

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown next. What is the simple price relative for broccoli?

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

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown next. What is Paasche's price index?

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