Deck 9: Time Series and Index Numbers in Business and Economics

Question 1

A forecast that projects company's sale is the

A)economic forecast
B)technological forecast
C)demand forecast
D)financial forecast

Answer 1

demand forecast

Question 2

If the slope of the trend line is positive, it shows

A)rising trend
B)dclining trend
C)stagnation
D)uncontrollable

Answer 2

rising trend

Question 3

Index numbers are expressed in:

A)Ratios
B)Squares
C)Percentages
D)Combinations

Answer 3

Percentages

Question 4

Another name of consumer's price index number is:

A)Whole-sale price index number
B)Cost of living index
C)Sensitive
D)Composite

Question 5

An orderly set of data arranged in accordance with their time of occurrence is called:

A)Arithmetic series
B)Harmonic series
C)Geometric series
D)Time series

Question 6

Increase in the number of patients in the hospital due to heat stroke is:

A)Secular trend
B)Irregular variation
C)Seasonal variation
D)Cyclical variation

Question 7

In time series seasonal variations can occur within a period of:

A)Four years
B)Three years
C)Two years
D)One year

Question 8

In a straight line equation Y = a + bX; b is the:

A)Y-intercept
B)Slope
C)X-intercept
D)Trend

Question 9

In business and economics, index numbers can be classified as

A)price index numbers
B)quantity index numbers
C)value index numbers
D)All of the above

Question 10

__________ ignore(s) the relative importance of the commodities being measured.

A)Simple Aggregative Method
B)Weighted Aggregative Method
C)Neither methods
D)Both methods

Question 11

The circular test is satisfied by

A)Laspeyres' Index
B)Paasche's Index
C)Fisher's Ideal Index
D)None of the above

Question 12

The components or a time series are

A)Secular trend
B)Irregular variation
C)Cyclical variation
D)All of the above

Question 13

The coefficient of correlation

A)Has no limit
B)Can be less than 1
C)Can be more than 1
D)Varies between + 1

Question 14

Index number are expressed in

A)Ratios
B)Squares
C)Percentages
D)Combinations

Question 15

Symbolically time reversal test is given as

A)Po1 x P10
B)Po1 x P10 = 1
C)Po1 x P10 ? 1
D)None of the above

Question 16

Consumer price index indicates

A)Rise
B)Fall
C)Both (a) and (b)
D)None of the above

Question 17

Fisher's ideal index number is the geometric mean of the

A)Laspeyre's and Marshall Edgeworth indices
B)Laspeyre's and Paasche's indices
C)Both (a) and (b)
D)None of the above

Question 18

An index which is constructed from a group of variables is considered as:

A)Composite index
B)Univariate index
C)Multiple index
D)None of the above

Question 19

Purchasing power of money can be accessed through:

A)Simple index
B)Fisher's index
C)Consumer price index
D)Volume index