Question 1

Index numbers are
A)Special type of averages
B)Measure of the economic barometers
C)Measure of relative changes
D)All of these

Accepted Answer

Index numbers are indeed special types of averages that serve as economic barometers and measure relative changes in economic variables over time.

Question 2

…………… Index number is called ideal Index number
A)Kelley's
B)Paasche's
C)Laspeyer's
D)Fisher's

Accepted Answer

Fisher's index number is called the ideal index number because it satisfies both the time reversal test and the factor reversal test, making it a more comprehensive and balanced measure compared to other index numbers.

Question 3

Consumer price Index number is constructed for
A)A well defined section of people
B)All people
C)Factory workers only
D)All the above

Accepted Answer

The Consumer Price Index (CPI) is constructed for a well-defined section of people, often referred to as the "basket" of consumers, to measure the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Question 4

For a normal distribution, Q3 + Q1 - 2 Median = …………
A)2
B)1
C)3
D)0

Accepted Answer

In a normal distribution, the median is equal to the mean, and the distribution is symmetric around the median. Therefore, Q3 (the third quartile) and Q1 (the first quartile) are equidistant from the median. This means that Q3 - Median = Median - Q1. When you add Q3 + Q1 and subtract 2 times the Median, the result is 0 because the distances cancel out.

Question 5

Lorenz curve is used to study
A)Skewness
B)Kurtosis
C)Correlation
D)Dispersion

Accepted Answer

The Lorenz curve is used to study dispersion, specifically the distribution of income or wealth within a population. It shows the proportion of total income earned by cumulative percentages of the population, highlighting inequality.

Question 6

Moving average method of fitting trend in a time series data removes the effect of
A)Long term movements
B)Short term movements
C)Cyclic Variations
D)Irregular variations

Accepted Answer

The moving average method smooths out short-term fluctuations and highlights longer-term trends or cycles in the data.

Question 7

A time series is unable to adjust the influences like
A)Customs and policy changes
B)Seasonal changes
C)Long term influences
D)None of these

Accepted Answer

Time series analysis typically cannot adjust for sudden changes due to customs and policy changes, as these are external factors not captured by historical data patterns.

Question 8

The best average for constructing an Index number is
A)Arithmetic mean
B)Harmonic mean
C)Geometric mean
D)Weighted mean

Accepted Answer

The Geometric mean is the best average for constructing an Index number because it is most suitable for calculating average rates of change over time, especially when dealing with percentages and proportional growth, which are common in index numbers.

Question 9

…………. Index is based on the price and quantities of both base year and current year
A)Paasche's
B)Laspeyer's
C)Fishers
D)None of these

Accepted Answer

Fisher's Index is a geometric mean of Paasche's and Laspeyer's indices, using both base year and current year prices and quantities.

Question 10

When mean is less than median and median is less than mode the distribution is called ……………
A)Symmetric
B)Negatively skewed
C)Positively skewed
D)None

Accepted Answer

When the mean is less than the median, and the median is less than the mode, the distribution is negatively skewed. This means the tail of the distribution is longer on the left side.

Question 11

Co-efficient of standard deviation is
A)SD / Mediam
B)SD / Mean
C)SD/ Mode
D)AM / SD

Accepted Answer

The coefficient of standard deviation is calculated by dividing the standard deviation (SD) by the mean (average) of the dataset. This gives a relative measure of variability in relation to the mean.

Question 12

Measures of central tendency are called averages of the ……….. order
A)First
B)Second
C)Third
D)None

Accepted Answer

Measures of central tendency, such as the mean, median, and mode, are considered first-order averages because they are directly concerned with the central or typical values of a data set, without involving the calculation of deviations or higher-order statistical moments.

Question 13

The standard deviation of 10,16,10,16,10,10,16,16
A)4
B)6
C)3
D)0

Accepted Answer

The answer of The standard deviation of 10,16,10,16,10,10,16,16
A)4
B)6
C)3
D)0...

Question 14

……………… is called positional measure
A)Mean
B)Median
C)Mode
D)Harmonic Mean

Accepted Answer

Median is referred to as a positional measure because it represents the value at the middle position of a sorted list of numbers, thus indicating its position rather than being influenced by the actual values of the data set.

Question 15

Mean of 3 items is 30 two of them are 20 and 30. What is the other?
A)40
B)30
C)20
D)60

Accepted Answer

The mean of 3 items is 30, so the total of the 3 items is 3 * 30 = 90. If two of the items are 20 and 30, their total is 20 + 30 = 50. Therefore, the third item must be 90 - 50 = 40 to make the total 90.

Question 16

Index number for the base period is always taken as
A)200
B)50
C)1
D)100

Accepted Answer

The index number for the base period is always taken as 100 to provide a simple and straightforward reference point for comparing other values in the index series.

Question 17

Kelley's co-efficient of Skewness is based on
A)Mean
B)Quartiles
C)Percentiles
D)None of these

Accepted Answer

The answer of Kelley's co-efficient of Skewness is based on
A)Mean
B)Quartiles
C)Percentiles
D)None...

Quiz 6: Statistical Measures and Index Numbers

Index numbers are

…………… Index number is called ideal Index number

Consumer price Index number is constructed for

For a normal distribution, Q3 + Q1 - 2 Median = …………

Lorenz curve is used to study

Moving average method of fitting trend in a time series data removes the effect of

A time series is unable to adjust the influences like

The best average for constructing an Index number is

…………. Index is based on the price and quantities of both base year and current year

When mean is less than median and median is less than mode the distribution is called ……………

Co-efficient of standard deviation is

Measures of central tendency are called averages of the ……….. order

The standard deviation of 10,16,10,16,10,10,16,16

……………… is called positional measure

Mean of 3 items is 30 two of them are 20 and 30. What is the other?

Index number for the base period is always taken as

Kelley's co-efficient of Skewness is based on