Introduction to Index Number Test

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Introduction to Index Number Test - 17

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Weekly Quiz Competition

Question 1
1 / -0

Human development covers which of the following aspects?

A
Economic aspects

B
Social aspects

C
Cultural aspects

D
All of the above
Question 2
1 / -0

HDI was devised by the United Nations Development Programme (UNDP) in 1990 in their first ____________.

A
HDI Ranking Report

B
Human Development Report

C
UNDP Agreement

D
none of the above

Solution

Human Development Index is a measure of human development over the years which includes per capita income for evaluating the utility which people get from different products, life expectancy which measures the progress made in health and nutrition and educational levels. Human development Index was devised by the United Nations Development Program (UNDP) in 1990 in their first Human development report.
Question 3
1 / -0

Calculate Laspyre's index from the following data-
Commodity Quantity Price Price
1996 1997
A 25 3 38
B 9 5 12
C 12 2 15

A
168.65

B
143.67

C
141.57

D
141.67

E
None of these

Solution
Question 4
1 / -0

P0 indicates:

A
Price of the base year

B
Price of the current year

C
Average price

D
None of these

Solution

P0 indicates the price of the base year. P0 plays an important role while measuring Index numbers. Index numbers measure a net or relative change in a variable or a group of variables. P1 is the price of current year.
Hence, option A is correct.
Question 5
1 / -0

The quotations for four different commodities for the years 2000 and 2005 are given below. Calculate the index number for 2005 , with 2000 as base year by using weighted average of price relatives method.

A
$$164.05$$

B
$$161.05$$

C
$$154.05$$

D
$$151.05$$

Question 6

1 / -0

Taking 1975 as the year with and index number 100, calculate an index number for 1979 , based on weighted average of price relatives.

Commodity	A	B	C	D
Weight	30	15	25	30
Price per unit in 1975	20	10	5	40
Price per unit in 1979	24	20	30	40

$$245$$

$$246$$

$$235$$

$$275$$

Solution

$$Commmodity$$	$$Weight$$ $$w$$	$$Price\,per\,unit\,in\,1975$$ $$P_0$$	$$Price\,per\,unit\,in\,1979$$	$$Price\,relative$$ $$I=\dfrac{P_1}{P_0}\times 100$$	$$I.w$$
$$A$$	$$30$$	$$20$$	$$24$$	$$120$$	$$3600$$
$$B$$	$$15$$	$$10$$	$$ 20$$	$$200$$	$$3000$$
$$C$$	$$25$$	$$5$$	$$30$$	$$600$$	$$15000$$
$$D$$	$$3 0$$	$$40$$	$$40$$	$$100$$	$$3000$$
$$Total$$	$$\sum w=100$$				$$\sum I.w=24600$$

$$\Rightarrow$$ $$P_{01}=\dfrac{\sum .Iw}{\sum w}=\dfrac{24600}{100}=246$$

Question 7

1 / -0

Find the consumer price index number for 1991 on the base of 1990 from the following data using the method of weighted relatives.

Item	Quantity(units)	Price in 1990	Price in 1991
A	20	200	320
B	14	400	420
C	15	100	120
D	18	40	60
E	10	20	28

123.45

113.47

198.26

137.27 Solution

$$Item$$	$$Quantity$$ $$(Units)$$ $$w$$	$$Price\,in\,1990$$ $$P_0$$	$$Price\,in\,1991$$ $$P_1$$	$$Price\,relative$$ $$I=\dfrac{P_1}{P_0}\times 100$$	$$Iw$$
$$A$$	$$20$$	$$200$$	$$320$$	$$160$$	$$3200$$
$$B$$	$$14$$	$$400$$	$$420$$	$$105$$	$$1470$$
$$C$$	$$15$$	$$100$$	$$120$$	$$120$$	$$1800$$
$$D$$	$$18$$	$$40$$	$$60$$	$$150$$	$$2700$$
$$E$$	$$10$$	$$20$$	$$28$$	$$140$$	$$1400$$
$$Total$$$$(\sum)$$	$$77$$				$$10570$$

$$\Rightarrow$$ $$P_{01}=\dfrac{\sum Iw}{\sum w}=\dfrac{10570}{77}=137.27$$

Question 8

1 / -0

Calculate weighted index number for 2001 from the following data:

Item	A	B	C
Quantity	20	15	10
Price in 2000	200	100	20
Price in 2001	320	120	28

134.56

142.22

148.77

150.78 Solution

$$Item$$	$$Quantity$$ $$w$$	$$Price\,in\,2000$$ $$P_0$$	$$Price\,in\,2001$$ $$P_1$$	$$I=\dfrac{P_1}{P_0}\times100$$	$$Iw$$
$$A$$	$$20$$	$$ 200$$	$$320$$	$$160$$	$$3200 $$
$$B$$	$$15$$	$$100$$	$$120$$	$$120$$	$$1800$$
$$C$$	$$10$$	$$20$$	$$28$$	$$140$$	$$1400$$
$$Total$$	$$\sum w=45$$				$$\sum Iw=6400$$

$$\therefore$$ By using weighted average price relative method.

$$\Rightarrow$$ $$P_{01}=\dfrac{\sum Iw}{\sum w}=\dfrac{6400}{45}=142.22$$

Question 9
1 / -0

Using $$2005$$ as base year , the price of a commodity in $$2007$$ is 125. Calculate the index number for 2007 if 2006 is taken as the base year.

A
105.93

B
104.23

C
103.93

D
112.3
Question 10
1 / -0

________ is a statistical device for measuring changes in the magnitude of a group of related variables.

A
Correlation

B
Standard deviation

C
Index numbers

D
Both A and C

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Introduction to Index Number Test - 17

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Introduction to Index Number Test - 17

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Question 1

Economic aspects

Social aspects

Cultural aspects

All of the above

Question 2

HDI Ranking Report

Human Development Report

UNDP Agreement

none of the above

Solution

Question 3

168.65

143.67

141.57

141.67

None of these

Solution

Question 4

Price of the base year

Price of the current year

Average price

None of these

Solution

Question 5

$$164.05$$

$$161.05$$

$$154.05$$

$$151.05$$

Question 6

$$245$$

$$246$$

$$235$$

$$275$$

Solution

Question 7

123.45

113.47

198.26

137.27

Solution

Question 8

134.56

142.22

148.77

150.78

Solution

Question 9

105.93

104.23

103.93

112.3

Question 10

Correlation

Standard deviation

Index numbers

Both A and C

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