Question 1

One of the classifications of time series is that they can be either
A)categorical or ordinal
B)stationary or non-stationary
C)inflationary or non-inflationary
D)increasing or decreasing

Accepted Answer

Time series data can be classified as stationary or non-stationary. Stationary time series have properties that do not depend on the time at which the series is observed, meaning their statistical properties such as mean, variance, and autocorrelation are constant over time. Non-stationary time series, on the other hand, have properties that change over time.

Question 2

Another name for the regression method is
A)linear method
B)univariate method
C)time series method
D)causal method

Accepted Answer

The regression method is also known as the causal method because it is used to identify and quantify the relationship between a dependent variable and one or more independent variables, implying a cause-and-effect relationship.

Question 3

Exponential smoothing is
A)a method to use number exponents to smooth the time series
B)one of the forecasting methods
C)a method of testing linearity
D)a method to find elasticity

Accepted Answer

Exponential smoothing is a widely used forecasting method that applies weighted averages of past observations, where the weights decrease exponentially as the observations get older, making it particularly useful for time series data.

Question 4

"Sensex" is related to
A)bse
B)nse
C)rbi
D)sebi

Accepted Answer

Sensex, also known as the S&P BSE Sensex, is the benchmark index of the Bombay Stock Exchange (BSE) in India, tracking the performance of 30 of the largest and most financially sound companies listed on the BSE.

Question 5

Fisher's Ideal Formula for calculating index nos. satisfies the________ tests
A)units test
B)factor reversal test
C)both a and b
D)do not satisfy any test

Accepted Answer

Fisher's Ideal Formula satisfies both the units test and the factor reversal test, making it a widely accepted method for calculating index numbers.

Question 6

_______________ is particularly suitable for the construction of index nos
A)harmonic mean
B)arithmetic mean
C)geometric mean

Accepted Answer

The geometric mean is particularly suitable for the construction of index numbers because it is adept at handling varying quantities and prices, providing a more accurate reflection of proportional changes over time.

Question 7

The________ of group indices given the General Index
A)harmonic mean
B)arithmetic mean
C)geometric mean
D)none of the above

Accepted Answer

The answer of The________ of group indices given the General...

Question 8

In computing Index Numbers, ___________ is concerned with the measurement of price changes over a period of years, when it is desirable to shift the base
A)unit test
B)circular test
C)time reversal test
D)none of the above

Accepted Answer

The circular test is concerned with the measurement of price changes over a period of years, especially when it is desirable to shift the base. This test checks the consistency of index numbers when the base period is changed.

Question 9

The formula should be independent of the unit in which or for which price and quantities are quoted in
A)unit test
B)time reversal test
C)factor reversal test
D)none of the above

Accepted Answer

The unit test ensures that the formula remains consistent regardless of the units used for price and quantities.

Question 10

Laspeyre's method and Paasche's method do not satisfy
A)unit test
B)time reversal test
C)factor reversal test
D)none of the above

Accepted Answer

Laspeyre's and Paasche's methods do not satisfy the time reversal test, which requires that if the price index is calculated from time 0 to time 1, the inverse calculation from time 1 to time 0 should yield the reciprocal of the original index.

Question 11

We use price index numbers
A)to measure and compare prices
B)to measure prices
C)to compare prices
D)none of the above

Accepted Answer

Price index numbers are used both to measure and compare prices over different periods or locations, providing a way to understand how prices change over time or vary between different markets.

Question 12

Simple aggregate of quantities is a type of
A)quantity control
B)quantity indices
C)both a and b
D)none of the above

Accepted Answer

Simple aggregate of quantities is a method used in the calculation of quantity indices, not quantity control.

Quiz 6: Time Series Analysis and Index Numbers: Part B

One of the classifications of time series is that they can be either

Another name for the regression method is

Exponential smoothing is

"Sensex" is related to

Fisher's Ideal Formula for calculating index nos. satisfies the________ tests

_______________ is particularly suitable for the construction of index nos

The________ of group indices given the General Index

In computing Index Numbers, ___________ is concerned with the measurement of price changes over a period of years, when it is desirable to shift the base

The formula should be independent of the unit in which or for which price and quantities are quoted in

Laspeyre's method and Paasche's method do not satisfy

We use price index numbers

Simple aggregate of quantities is a type of