Question 1

The __________ method for computing a weighted price index uses base year weights.

Accepted Answer

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

Question 2

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 your real income in 2005?

Accepted Answer

$53,642
Explanation:

Question 3

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

Accepted Answer

105.31
Exp

Question 4

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown next.   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 5

The Consumer Price Index (1982-84 = 100) reports a CPI in August 2010 for new and used motor vehicles as 97.620. What is the percentage change in the price of new and used motor vehicles compared to the base?

Accepted Answer

Decreased 2.38 perce

Question 6

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 7

The Consumer Price Index measures the change in prices of a fixed market basket of goods and services from one period to another.

Accepted Answer

A) True 
 B)False

Question 8

The following data was collected on mutual fund prices.   Compute the Laspeyres index to compare mutual fund prices in 2010 to 2000.

Accepted Answer

153.04
Explanation: Use formul

Question 9

The following data was collected on mutual fund prices.   Compute value index to compare mutual fund prices in 2010 to 2000.

Accepted Answer

245.86
Explanation: Use formul

Question 10

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 11

In a weighted index, the __________ variable is usually the weight.

Accepted Answer

The answer of In a weighted index, the __________ variable...

Question 12

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown next.   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 selected vegetables purchased at wholesale prices for 1995 and 2007 are shown next.   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

Question 14

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 15

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 16

_____ is the usual index number associated with the base period for the CPI.

Accepted Answer

The answer of _____ is the usual index number associated...

Question 17

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

Question 18

A special-purpose aggregate price index that reflects the level of stock prices in the U.S. market is the ______________.

Accepted Answer

A)  American Stock Exchange Index 
B)  Consumer Confidence Index 
C)  Customer Satisfaction Index 
D)  Dow Jones Industrial Average (DJI
A)  
A)  American Stock Exchange Index 
B)  Consumer Confidence Index 
C)  Customer Satisfaction Index 
D)  Dow Jones Industrial Average (DJI
A)

Question 19

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown next.   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 20

The take home pay of an employee working in an urban area for 1993 and 2007 are:   If the CPI rose from 159 in 1993 to 210 in 2007 (1982-84 = 100), what was the "real" take home pay of the employee in 2007?

Accepted Answer

A)  $5,000 
B)  $15,000 
C)  $113,200 
D)  $53,904 
A)  $5,000 
B)  $15,000 
C)  $113,200 
D)  $53,904

The __________ method for computing a weighted price index uses base year weights.

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 your real income in 2005?

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

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

The Consumer Price Index (1982-84 = 100) reports a CPI in August 2010 for new and used motor vehicles as 97.620. What is the percentage change in the price of new and used motor vehicles compared to the base?

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 Consumer Price Index measures the change in prices of a fixed market basket of goods and services from one period to another.

The following data was collected on mutual fund prices. Compute the Laspeyres index to compare mutual fund prices in 2010 to 2000.

The following data was collected on mutual fund prices. Compute value index to compare mutual fund prices in 2010 to 2000.

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

In a weighted index, the __________ variable is usually the weight.

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

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

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

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

_____ is the usual index number associated with the base period for the CPI.

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 ______________.

A special-purpose aggregate price index that reflects the level of stock prices in the U.S. market is the ______________.

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

The take home pay of an employee working in an urban area for 1993 and 2007 are: If the CPI rose from 159 in 1993 to 210 in 2007 (1982-84 = 100), what was the "real" take home pay of the employee in 2007?

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 __________ method for computing a weighted price index uses base year weights.

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 your real income in 2005?

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

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

The Consumer Price Index (1982-84 = 100) reports a CPI in August 2010 for new and used motor vehicles as 97.620. What is the percentage change in the price of new and used motor vehicles compared to the base?

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 Consumer Price Index measures the change in prices of a fixed market basket of goods and services from one period to another.

The following data was collected on mutual fund prices. Compute the Laspeyres index to compare mutual fund prices in 2010 to 2000.

The following data was collected on mutual fund prices. Compute value index to compare mutual fund prices in 2010 to 2000.

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

In a weighted index, the __________ variable is usually the weight.

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

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

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

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

_____ is the usual index number associated with the base period for the CPI.

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 ______________.

A special-purpose aggregate price index that reflects the level of stock prices in the U.S. market is the ______________.

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

The take home pay of an employee working in an urban area for 1993 and 2007 are: If the CPI rose from 159 in 1993 to 210 in 2007 (1982-84 = 100), what was the "real" take home pay of the employee in 2007?

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