Index Numbers and Price Analysis Quiz

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Questions and Answers

What was the price of Commodity A per unit in 2007?

90 N

95 N

85 N

80 N (correct)

Which commodity had the highest price increase from 2007 to 2013?

Commodity B

Commodity C

Commodity A

Commodity D (correct)

What is the total price per unit of all commodities in 2013?

285 N

352 N (correct)

300 N

325 N

What formula is used to calculate the Simple Average Price Relative Index?

S.A.P.R.I = (Sum of Price Relatives) / n (A) Signup and view all the answers

Using the arithmetic mean, how many items are considered for the price relative index calculation?

4 (A) Signup and view all the answers

What is the primary purpose of constructing index numbers?

To compare prices over time (C) Signup and view all the answers

Which of the following is NOT a method of constructing index numbers?

Geometric Average Index Number (A) Signup and view all the answers

How is the Simple Aggregate Index Number calculated?

By adding current year prices and dividing by the sum of base year prices (C) Signup and view all the answers

In the context of index numbers, what does 'weighted' refer to?

Prices are adjusted based on their importance (A) Signup and view all the answers

Which component is essential for calculating the Price Relative Index?

Proportion of current year to base year prices (D) Signup and view all the answers

What does the birth rate measure?

The number of births per 1000 population in a year (D) Signup and view all the answers

Which price index reveals changes in the retail price of commodities?

Retail price index (C) Signup and view all the answers

What is measured by a quantity index?

The changes in the volume of goods produced or consumed (A) Signup and view all the answers

What does a smaller coefficient of variation (C.V) indicate about a data distribution?

It is more consistently clustered around the mean. (C) Signup and view all the answers

Which of the following pairs correctly represents the components needed for any index number?

Base period and current year (A) Signup and view all the answers

Which measures are needed to analyze the scores of 150 applicants in the achievement test? (Select all that apply)

Semi-interquartile range (A), Median score (C), Standard deviation (D) Signup and view all the answers

In a symmetrical distribution, what relationship exists between mean, median, and mode?

Mean = Median = Mode (A) Signup and view all the answers

What does a value index compare?

The total value of a certain period with the total value in a base period (A) Signup and view all the answers

What does skewness indicate about a data distribution?

The lack of symmetry in the distribution. (A) Signup and view all the answers

What is a typical problem faced in the construction of index numbers?

Selection of data sources (A) Signup and view all the answers

What is true of a negatively skewed distribution?

Mean > Median > Mode (B) Signup and view all the answers

Which of the following best describes the purpose of price index numbers?

To compare prices of commodities over time (D) Signup and view all the answers

Why is the selection of a base period critical in index numbering?

It serves as a benchmark for future comparisons (D) Signup and view all the answers

Which of the following scores ranges would you expect to have the highest frequency based on the provided data?

50 – 59 (A) Signup and view all the answers

If the data is positively skewed, what is the expected relationship among mean, median, and mode?

Mode < Median < Mean (D) Signup and view all the answers

When estimating the standard deviation from grouped data, which value serves as a reference point for calculation?

The mean value. (A) Signup and view all the answers

What is the base year quantity for commodity A?

10 (B) Signup and view all the answers

Which commodity experienced the highest increase in price from the base year to the current year?

Commodity B (D) Signup and view all the answers

What formula can be used to calculate the Consumer Price Index Number based on Laspeyre?

Current Year Price / Base Year Price (A) Signup and view all the answers

In the example with commodities X, Y, and Z, what was the price change of commodity Z from 1999 to 2000?

Decreased by 1 (D) Signup and view all the answers

Using the weighted relative method for the Consumer Price Index, what is essential for calculation?

Value weights for quantities (A) Signup and view all the answers

How many feed components are mentioned for constructing an animal feedstuff index number?

5 (D) Signup and view all the answers

In the context of the Laspeyre price index, what needs to be interchanged for a Quantity or Volume index number?

Base quantities and current quantities (A) Signup and view all the answers

What is the total quantity for commodity C in the base year?

2 (D) Signup and view all the answers

What is the purpose of using weights in aggregate index numbers?

To attribute importance to each item based on their quantity (A) Signup and view all the answers

Which of the following methods uses current year quantities to determine weights?

Paasche’s method (C) Signup and view all the answers

What is the geometric mean of Laspeyre and Paasche indices called?

Fisher’s Ideal method (C) Signup and view all the answers

Which index number method calculates the arithmetic mean of Laspeyre's and Paasche's methods?

Bowley’s method (A) Signup and view all the answers

Which commodity saw the highest percentage increase from 2011 to 2012?

Rice (A) Signup and view all the answers

What is the weighted aggregate price index using Laspeyre’s method based on the example?

2.1461 (C) Signup and view all the answers

What is the total index number derived from the provided prices?

8.5952 (A) Signup and view all the answers

Which index method is not listed as one of the important methods for assigning weights?

Johnston’s method (C) Signup and view all the answers

Study Notes

Lecture Note on Descriptive Statistics (STS 102)

Course contents include statistical data (types, sources, collection methods), presentation of data (tables, charts, graphs), errors and approximations, frequency and cumulative distributions, measures of location (partition, dispersion, skewness, kurtosis), rates, proportions, and index numbers.
Reading lists include various textbooks on statistics for beginners, basic statistics courses, focusing on engineering, physical, and biological sciences, and higher secondary statistics.

Introduction

Statistics is crucial in fields like agriculture, economics, commerce, biology, medicine, industry, planning, and education.
Statistics involves collecting, organizing, summarizing, presenting, and analyzing data to draw valid conclusions.
Descriptive statistics summarizes and describes data, while inferential statistics uses data to make inferences about a larger population.

Statistical Data

Statistical data are raw facts obtained through measurement or counting of characteristics or phenomena.
Quantitative data is expressed numerically (e.g., ages of students).
Qualitative data is not numerical (e.g., student status, sex, and religion).
Primary data are collected directly from respondents (e.g., surveys, censuses, experiments).
Secondary data are obtained from existing sources (e.g., publications, newspapers, annual reports).

Methods of Data Collection

Direct observation: Observing events or phenomena directly.
Interviewing: Asking questions directly to individuals.
Questionnaires: Distributing questionnaires for gathering responses.
Abstraction from published statistics: Gathering data from existing published records.

Presentation of Data

Frequency tables: A tabular representation of data, organized into classes with their corresponding frequencies.
Graphs and charts: Useful for visualizing relationships within data: pictographs, bar charts, histograms, and cumulative frequency curves (ogives).

Measures of Location

Arithmetic mean (average): The sum of all values divided by the total number of values.
- Useful for both ungrouped and grouped data.
Geometric mean: Finding the average rate of growth or decline over a period.
Harmonic mean: Suitable for rates (e.g., kilometers per hour, naira per liter).
Median: The middle value in an ordered dataset, dividing it into two equal parts.
- Less sensitive to extreme values.
Mode: The value that appears most frequently in the dataset.

Errors and Approximations

Rounding: Used to make data clearer and more manageable when dealing with real-world measurements. This process can introduce errors.
Absolute error: The difference between the rounded figure and the actual figure.
Relative error: The absolute error divided by the actual figure.
Percentage error: The relative error expressed as a percentage.

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Description

Test your knowledge on index numbers, price relative calculations, and commodity price trends with this quiz. It covers essential concepts such as the Simple Average Price Relative Index and methods of constructing index numbers. Perfect for students in economics or finance courses.