Deck 5: Time Series Analysis and Index Numbers: Part A

Question 1

A ______ is a value that may change within the scope of a given problem or set of operations

A)constant
B)variable
C)function
D)exponent

Answer 1

variable

Question 2

__________ variable is a factor that is not itself under study but affects the measurement of the study variables or the examination of their relationships.

A)exogenous
B)endogenous
C)extraneous
D)dependent

Answer 2

extraneous

Question 3

An index number is used:

A)to measure changes in quantity
B)to measure changes in demand
C)to measure changes in a variable over time
D)to measure changes in price

Answer 3

to measure changes in a variable over time

Question 4

The ratio of a new price to the base year price is called the:

A)price absolute
B)price decrease
C)price increase
D)price relative

Question 5

A simple aggregate quantity index is used to:

A)measure the change in price of a product
B)measure the change in quantity of a product
C)measure the overall change in quantity of a range of products
D)measure the overall change in price of a range of products

Question 6

A simple aggregate price index:

A)ignores relative quantities
B)compares relative quantities to relative prices
C)considers relative quantities
D)compares absolute prices to absolute quantities

Question 7

This index measures the change from month to month in the cost of a representative 'basket' of goods and services of the type bought by a typical household

A)paasche price index
B)retail price index
C)laspeyres price index
D)financial times index

Question 8

The Laspeyres and Paasche index are examples of:

A)weighted price index only
B)aggregate index numbers
C)weighted index numbers
D)weighted quantity index only

Question 9

The Laspeyres price index:

A)regards the current year quantities as fixed
B)regards the base year quantities as fixed
C)regards the base year prices as fixed
D)regards the current quality as fixed

Question 10

A scaling factor is used to:

A)change a simple index to a weighted index
B)convert the paasche index to a laspeyres index
C)change an aggregate index to a weighted index
D)change the base year

Question 11

The distinctive feature of the ______ index is that it uses a group of commodities purchased in the base period as the basis for comparison

A)paasche's
B)laspeyres
C)fisher's
D)dorbish-bowley

Question 12

________was developed to measure changes in the cost of living in order to determine the wage increases necessary to maintain a constant standard of living.

A)price index
B)sensex
C)correlation
D)regression

Question 13

____________ measure of living costs based on changes in retail prices

A)correlation
B)whole sale price index
C)consumer price index
D)regression

Question 14

Paasche index was developed by ______economist Hermann Paasche for measuring current price or quantity levels relative to those of a selected base period

A)american
B)british
C)australian
D)german

Question 15

The ratio-moving-average procedure can be used to deseasonalize data

A) true
B) false
C) either of the above
D) any of the above

Question 16

The weighing factor, used in the exponential smoothing method, is always a number between ______

A)zero and ten
B)five and ten
C)zero and one
D)zero and negative one

Question 17

A moving average of a time series is the value around which a series moves over time.

A) true
B) false
C) either of the above
D) any of the above

Question 18

In a time series analysis it is often important to analyze seasonal variations

A) true
B) false
C) either of the above
D) any of the above

Question 19

The index number for the price of a good in 2002 was 142 and in 2003, it was 148.5, on a base year of 1994. What is the percent increase in price of gasoline from 2002 to 2003

A)4.377%
B)4.577%
C)95.62%
D)6.5%

Question 20

Which one of the following is not a component of the multiplicative time series model?

A)trend
B)irregular variation
C)regression trend
D)seasonality

Question 21

Which of the following is not a component of the multiplicative time series model?

A)trend analysis
B)seasonal variation
C)cyclical variation
D)regressive variation

Question 22

The time series component that indicates a steady increase or decrease over time is known as a ____________

A)order
B)pattern
C)trend
D)seasonality

Question 23

A pattern in a times-series model that occurs over a duration of more than a year is called a ___________ variation

A)trend
B)seasonal
C)cyclical
D)regressive

Question 24

Which two components are smoothed out by the moving average

A)seasonality and irregular
B)cyclicality; seasonality
C)variability: randomality
D)randomality; seasonality

Question 25

If a value is missing in a time series we can do one of the following

A)just copy the previous value
B)estimate it as an average between two neighbouring values
C)take the overall mean as the best estimate of it
D)ignore it