Index Numbers and Price Analysis Quiz

A numerical representation of how prices change over time for a group of goods and services.

An index comparing the prices of a group of commodities at a specific time and place to their prices in a base period.

A price index that tracks the changes in the wholesale prices of goods.

A price index reflecting changes in the retail prices of goods and services consumed by individuals.

A numerical measure that quantifies changes in the volume of goods produced or consumed.

An index comparing the total value of goods and services at a certain period with the total value in a base period.

The period used as a reference point for calculating an index.

The specific year for which we want to calculate an index.

A measure of the dispersion or spread of data points around the mean. Calculated as the square root of the variance. Often used in statistics and data analysis to understand how much values vary from the average.

A statistical measure that describes the relative variability of data. Calculated as the ratio of the standard deviation to the mean. Helps compare the spread of different distributions, even if they have different scales.

The middle value of a sorted dataset. Represents the 50th percentile, meaning half of the data points are below it and half are above.

The most frequent value in a dataset. It's the peak of the distribution, showing the value that occurs most often.

A measure that indicates how skewed or asymmetrical a distribution is. Positive skew indicates a long tail on the right, while negative skew suggests a long tail on the left.

A statistical measure that describes the 'peakedness' of a distribution. High kurtosis indicates sharp peaks, while low kurtosis suggests flatter peaks.

A method to measure changes in price levels over time by simply adding up the prices of all goods in the current period and dividing by the sum of the prices in the base period.

A measure of the average price change of a group of goods over time, calculated by dividing the total value of the goods in the current period by the total value in the base period, and then multiplying by 100.

When constructing an index number, weighting methods assign importance to different goods based on their relative significance in the economy.

This method involves measuring the price change of each good individually, then averaging these individual price changes, and finally multiplying by 100. This index takes into account the relative importance of different goods.

A method used to construct an index number that weights each good based on its value in the base period.

A method for calculating a price index by first calculating the relative price of each commodity and then averaging these relative prices using either the arithmetic or geometric mean.

The ratio of the current price of a commodity to its price in the base period. It indicates the percentage change in price.

The arithmetic mean of the price relatives is calculated by summing all the price relatives and dividing by the number of commodities.

The geometric mean of price relatives is calculated by multiplying all price relatives and taking the nth root, where n is the number of commodities.

A weighted aggregate price index where the quantities consumed in the base year determine the weights. It focuses on how prices change over time compared to the base year.

A weighted aggregate price index where the weights are determined by the quantities consumed in the current year. It reflects how prices change in the present year compared to the base year.

A weighted method that uses the geometric mean of the Laspeyre and Paasche indices. It attempts to balance the 'old' and 'new' consumption patterns for a more neutral price index.

A weighted aggregate price index that uses the arithmetic mean of the Laspeyre and Paasche indices. It's another approach to balancing the 'old' and 'new' consumption patterns.

A method for calculating an index that involves assigning weights to different items based on their importance or quantity consumed.

A price index that uses the geometric mean of individual price relatives.

The year used as a reference point for calculating a price index. The index is usually set to 100 in the base year.

A price index that uses quantities consumed in the base year as weights. It shows how much more consumers have to spend to maintain the same consumption pattern as in the base year.

A price index that uses quantities consumed in the current year as weights. It shows how much more consumers must spend to achieve the current year's consumption pattern.

A price index that uses the geometric mean of Laspeyre's and Paasche's indices. It's considered a more accurate measure, balancing the weight of base and current year quantities.

A price index that considers the quantities of goods and services consumed in both the base and current years. It's used to measure changes in the cost of living.

A price index that focuses on the wholesale prices of raw materials and semi-finished goods. It provides insights into the price levels in the production chain.