Mathematical Economics-Online Practice Exam 3

Test

# Question

1. Standard error of estimate of regression of y values from y, is given by

# Question

2.  If all the scatter of points live on a straight upward line from left to right the correlation is said to be-

perfect positive

perfect negative

highly positive

highly negative

# Question

3. Fisher’s ideal index number satisfies-

Time reversal test only

Factor reversal test only

Both time and factor reversal tests

Circular test only

# Question

4. Assertion (A): Fisher Index Number is the geometric mean of Laspeyres and Paasche indices.

Reason (R): It satisfies both time reversal and factor reversal tests.

A is false but R is true

A is true but R is false

Both A and R are true and R is the correct explanation of A

Both A and R are true but R is NOT a correct explanation of A

# Question

5. Which of the following is NOT correct?

Index numbers are specialized averages

Index numbers are not expressed in percentages

Index number is a statistical measure representing changes in a variable or group of related variables

Index numbers measure changes which are not directly measurable

# Question

6. Which of the following is NOT correct ?

Index numbers are economic barometers

Index numbers are used in computing the real income or wages

Index numbers cannot be used in forecasting

The ideal average used in the construction of index numbers is the arithmetic mean

# Question

7. Which of the following is NOT correct ?

Geometric mean is the most suitable average in the construction of index numbers

Paasche’s formula is a weighted aggregate index with base year quantity weights

Weighted index numbers are better and more representative than simple index numbers.

Base Year used in index numbers should be a normal year

# Question

8. Which of the following is NOT correct ?

Price relatives are formed to study price changes over time

Quantity relations are used to measure chnages in quantum of volume of productions or conception of a commodity

Laspeyre’s formula is a weighted aggregate index with base year quantity weights

Fisher’s index formula is the arithmetic mean of Laspeyer’s and paasche’s formula

# Question

9. Simple price index is defined as

None of the above

# Question

10. If the changes in the average level of various items is being studied together, this index number would be called a-

Composite index number

Simple index number

Value index number

None of the above

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