468 (all the above Q. 6 The error(s) involved in the construction of index numbers is/ar (a) error of sampling tb) formula error ie error in collected data (Y) all the above Q.7 Element of subjectivity 1s involved in index mumbers due to: (a) choice of base year (b) selection of weights (c} che of commodities: (all the above Q.8 Most commonly used index number ts: (a), Diffusion index number (8) price index number (c) value index number (d) none of the above Q.9 One of the limitations in the construction of index numbers is: (2 the choice of the type of average (b) choice of investigators (c) choice of variables to be studied (d) all the above Q. 10 Consumer price index number is constructed foy (Xa well defined section of people (b) all people (c} factory workers only (d) all the above Q. IT Diffusion index reveals the changes in: (ay elite (b) industrial production tof a group of time seres (d) none of the ubove Q. 12. The first and fore most step in the construc- hoo of index aumbe (a) choice of base period (hy, choice of weights (4 to delineate the purpose of index numbers (d) all the above Q. 13 Base period for an index number should be: a year only PROGRAMMED STATISTICS (8%) a normal period (c) a period at distant past (A) none of the above Q. 14 Data for index numbers should be collected from: (a) the retailers: (b) the wholesale dealers (c), the selected group of persons 8 none of the above Q. 15 Most preferred type of average for index numbers is (a) arithinetic mean (5 geometric mean (c) harmonic mean (J) none of the above Q. 16 Most frequently used index number formu- lag are: (8 weighted formulae (b) unweighted formulae (c) fixed weight formulae (d) none of the above Q.17 The unweighted price index formula based ona items is: (@) z Pu] Pos {b) (d) none of the above Q. 18 Unweighted price index formula is: (a), most frequently used (b) seldom used (v) the best (d) all the above Q.19 Laspi index formula uses the weights of the: (a) base year (b) current yearIwoex NUMBERS tc) Py /Py (A) Po, + Pig =U Q.46 The discrepancy (Po; x Pig ~ 1) is termed 6 joint error (b) homogeneity error (6) formula error (d) none of the above Q.47 Factor reversal test was invented by: Walsh (b) AL. Bowley (e), John 1. Griftin (dS Teving Fisher Q. 48 The condition for the factor reversal test to be satisfied with usual notations is: (a) Py Qo, = Yor hy Faun Vo fey) Pear Vo v (d) all the above Q.49 The condition tor the price the circular test for four v fa) Py, Piz Py Py th) Poy Piz PP dices to satis! s data is: Q. 50 Circular test for prices indices is satisfied by the formul: {a) based on geometric mean o of price rela- tives (b) obttined by inethod S both (a) and (b) (a) neither (a) nor (b) Kelly's fixed weight Q. 51 Fisher's ideal formulst does not (a) time reversal test (% circular test (ce) factor reversal test {dd unit test ant if indices in the chain-base method (ay chain indices (85 link relatives Q. 53. The relation between fixed base indives Py,. pnd the chain-base indices Py. Ps lculated by the chain-base method most free from: homo; (c) rigidity of weights (@) ail the above Q.§5 When years are to be worked out to a new base period, this phenomenon is known as: (ay splicing OY tase shifting (e) both (a) and (b) (d) ovither (a) nor (b) Q. $6 Combining of two index number series h ing different base periods into one seties with comman base period ts known as: 6 splicing (b) base shifting (e) bath (a) and (b) (d) neither (a) nor (b) Q.57 Ifthe old series is connected, with the new series of index numbers, 1 is know ia) base silting (b), backward splicing (Y forward splicing (d) none of the above Q.58 If the new seri series, itis known as: (a), base shifting (86 backwaed splicing— INDEX NUMBERS (SF GNP > NNP (d) GNP = NNP tor reversal test permits the interchange of: (a) base periods (by price and quamity (2) weights (A) none of the above Q.73. The consumer price index in 1990 increases hy 80 per cent as compared to the hase 1980. A person in 1980 getting Rs, 60,000 Peg annum should now get: (Rs. 1.08000 per annum (b) Rs, 72,000 per annum (6) Rs. $4,000 per annum (d) none of the above Q.74 If a family spends on food, housing and clothing in the ratio of 5:3:2 and experi- ences the rise in prices of these heads by 40, 30 and 20 per cent respectively. the family budget will be increased by: (af 33 per cent (b) 30 per cent (c) 27 per cent {d) none of the above Q.75 If the index number for 1990 10 the base 1980 is 250, the index number for 1980 to the base 1990 (a, 4 (sy 40 (c) 400 (d) none of the above Q.76 IF Laspeyre's price index i Paasche’s price index 144, then index 1s: (a) 234 (by 180 (216 (d) none of the above 324 and her's ideal Q. 77 [fthe consumer price index for 1994 is 800. then the purchasing power of a rupee is: (a) 0,125 paise (88 12.5 paise (c) 8 paise (d) none of the above 473 Q.78 The consumer price index numbers for 1981 and 1982 to the base 1974 are 320 and 400 respectively. The consumer price inder for 1981 to the base 1982 is: (@) 125 «) 80 (©) 128 (d) none of the above Q.79. The index number for 1985 to the base 1980 is 125 and for 1980 to the base 1985 is 80, ‘The given indices satisly: (8 time reversal test (b) factor reversal test (c) circular test (d) all the above Q. 80 The price relatives for three commodities are 125, 120 and 130 with their respective weights 5, wand 8. If the price index for the set is 1125.25, the value of w is: fa) 6 (b) -7 67 (d) none of the above Q.81 Ifthe group indices are 80, 120 and 125 end their respective group weights are 60, 20 and 20, the consumer price index is: (a), 108.33 «97.00 (c) 98.49 (d) none of the above Q. 82. Which index satisfies factor reversal test? {a) Paasche’s index re's index. er's ideal index (8) Walsh price index Q.83 Ifa sub-index is zero, then the total index must: {a) be zero (b) be infinity (c} indeterminate a not be zero Q. 84 If the unit of measurement of a commodity changes, the value of index number (a), also changes (bY remains same(e) increases (d) decreases Q. 85 all the sub-indices are equal to ?, then the total index will be: (af equal to P (by equal twa 100 fey equal to | (dy equal to 0. Q. 86 The property. that on changing the unit of measurement of a commodity, the index number does not change, is called: (a) test of equality (hy test of homogeneity (ce) test of commensurability (d) test of proportionality Q.87 The property that a sub-index is zero or infinity but the Lota! index is not zen or infinity is known as: (a) test of randomness: (b). factor reversal test (¥ test of definiteness (J) none of the above Q. 88 ‘The property that in case of all sub-indices being ? resulting inte total index equal to P. is termed ast (ay test of randomness {8% test of proportionality (c) test of definiteness (dl) test of commensurability 1 spectal type of: Q.89 Index numbers are (a) averages (b) percentage relatives (cy td) all the above Q.90 The indes that indicates the prugress oF re= cession of an econumic cycle ina group of Une series Ist ta) value index (b), quantitative index te} ditfusion index (da) all the above Proot ANSWERS SECTION-B (1) economic barometers (2) (Avaverage (4) percentages (5) index numbers (8) forecasting | frequently (11) cost of living in (13) sales of company (14) non ter representative (16) relative i metric mean (18) anthmetic m reversible (21) weighted (22) 1 te (24) [Eau/2 J |x 100 Qs year method (27) 1871 (28) Fi Gerinan statistician (30) Cum year method (32) 1874 (33) {z Pu du [= Pov ax to Bo f (35) arithmetic mean (36) J mean (38) combined quanti Edgeworth (40) Kelly's (41) £ pling error (43) homogeneity unique (46) no binary (47) L tame reversal (50) joint error tor reversal (52) Py, X Qgy = Poy Pay Pay Paw iyy Pro (56) circular (57) is not (58) ing period (60) link relaty (62) easily (62) seasonal vat (45) comparable (66) splicit (68) backward splicing (69) fall (71) consumer price in index (72) wage policy (74 (75) consumer price index (77) basket (78) retailers | penditure (80) imputation « ily budget method (82) pn tu Pu [E400 pu) MC weights (84) wholesale pr industrutl production (86) deflator index number (88)INoex NUMBERS incthod of weighted relatives (90) Laspeyre’s (91) downward (92) units of measurements: 3) 667% Hin 120s (ngs 135] D (94) soa tine 325 2000 = 6500: Amt, reqd. 100 2m dae = (6500 - 500)] (95) 153 per cent (96) 200; 200 (97) circular (98) factor reversal (99) none (100) time and factor reversal (LOL) proportionality (102) simple aggre- galive index (103) commensurability (104) new: old (105) zero; infinite SECTION-C the Me Bd a Gd (6d Md db Ma Coda (Ne (2c (iayb (4)d C5)b (Moa (17) e (8) b (9a Oe 1b (22)e (23)b (24) ¢ (25)¢ (26)b (2a (28)d 9b Ge QHd Gb BHYe G4)¢ (35)d GB6)e Qa Gab Ae “Oc GH (a2) a (yb tye (45)a (46) 5 (47d (48) d (49a (S0)e GD b Gb Gd G4) d (S5)b 5G)a G7€ (Sb)b (59d (60) € (ol) c (62) b (63) a (64) b (65) b (66) a (67)d (68a (69)b (TO) TE (aye 475 (73a (T4)a (7S)b IB)e CIT) b_ IB) (79a (BO)e (BIPH (Re (BIA (BA) B (B5)a (B6VC (B7)c (BBYH (BY) dO) Suggested Reading 1, Agarwal, B.L., Basic Statistics. New Age In- ternational (P) Lid. Publishers, New Delhi. 3rd edn. 1996. 2, Berenson, MLL. ness Statistics Cliffs, 1979. 3. Chou, Ya Lu, Statistical Analys' with Busi ness and Economics, Applications, Holt Rinehart and Winston, New York, 1975. 4, Enns, P.G., Business Statistics, Richard T Irwin, Mlinois, 1985. oor, V.K., Fundamenta Sultan Chand & Son of Applied Statistics New Delhi, 1993. 6. Mudgett, B.D.. Index Numbers, Joho Wile New York, 1951. 7. Richards, LE. and Lacava, J.J., Business St tistics, MeGraw Hill Book Company, Ni York, 1978. 8. Spurr, W.A., Kellogg, L.S. and Smith, J. Business and Economic Statistics, Rich D, Irwin, Ilinois, 1954. 9. Summers, G.AWV.. Peters. CP, Smdent Supplement for Basic Sratis ‘An Jntroduction, Wadsworth Publishing C pany, California, 1977. s and Armstre