MSM INSTITUTE

ECONOMICS TEST BY SHYLA AGGARWAL

CLASS XI
GROUP 1: CORRELATION AND INDEX NUMBERS
Time Allowed: 1 hr Maximum Marks: 20

1. Of the following three measures which can measure any type of relationship? [1]
(a) Karl Pearson’s coefficient of correlation (b) Spearman’s rank correlation
(c) Scatter diagram (d) None of these

2. Fisher’s index number is considered ideal because: [1]

(a) It is based on variable weights (b) It satisfies Time Reversal Test
(c) It satisfies Factor Reversal Test (d) All of these

3. Calculate the coefficient of correlation using Karl Pearson’s formula of the series given below using actual
mean method. [3]
X 10 12 15 23 20
Y 14 17 23 25 21

4. Calculate the correlation coefficient between the heights of fathers in inches (X) and their sons (Y) by
shortcut method. [3]
X 65 66 57 67 68 69 70 72
Y 67 56 65 68 72 72 69 71

5. Calculate coefficient of rank correlation between the marks in Economics and Statistics, as indicated by 8
answer books of each of the two examiners. [3]
Marks in Statistics 15 9 20 28 12 10 16 18
Marks in Economics 16 14 10 8 11 15 18 12

6. Find out the coefficient of rank correlation between X and Y. [3]

X 46 56 39 45 54 58 36 40
Y 30 60 40 50 70 70 30 50

7. Construct index numbers of prices of the items in the year 2019 from the following data by:
(i) Laspeyre’s Method, (ii) Paasche’s Method, and (iii) Fisher’s Method [3]

Items 2011 (Base Year) 2019 (Current Year)

Price Quantity Price Quantity
A 10 10 20 25
B 35 3 40 10
C 30 5 20 15
D 10 20 8 20
E 40 2 40 5

8. An enquiry into the budgets of the middle-class families in a certain city gave the following information
[3]
Expenses on Items Food Fuel Clothing Rent Miscellaneous
35% 10% 20% 15% 20%
Price (in Rs.) in 2004 1500 250 750 300 400
Price (in Rs.) in 1995 1400 200 500 200 250
What is the cost-of-living index of 2004 as compared with 1995?