CIS QA LEVEL 2 WEEK 9 QUESTIONS
TOPIC: TIME SERIES AND INDEX NUMBER
OBJECTIVE QUESTIONS
1.
Time series analysis involves decomposing the series into its various
…………………………….
2. One of the following is not a composite factor of time series:
A. Cyclical variation.
B. Secular Trend.
C. Regular variation.
D. Random Variation.
3.When constant cash flows are received regularly forever, the series generated is termed………………..
4.
The price of an item rose by 30% in the period 2009 to 2012. What is the price of the item in 2012 (in L$) if it was L$180 in 2009?
A. 210
B. 130
C. 230
D. 234
E. 150

5. The following pieces of information are obtained for a particular item. The Laspeyre’s index is 115 and the
Fisher’s index is 118.2. Find the Paasche’s index
A. 135.9
B. 121.5
C. 116.6
D. 100.0
E. 95.5
6. The prices of a commodity in 2008 and 2009 were
N400,000 and N600,000 respectively. The price relative, using 2008 as the base year is
A. 33.33%
B. 66.67%
C. 150.00%
D. 50.00%
E. 160.00%
7.The following data were obtained for a particular consumer item:
Laspeyre’s index = 97.38
Fisher’s Ideal index = 97.64
What is the Paasche’s index?
A. 97.90

B. 97.51
C. 89.90
D. 99.51
8. An analyst estimated that ABC’s earnings will grow from N3 to N4.50 per share over the next eight years.
What is the rate of growth in ABC’s earnings?
A. 4.9%
B. 5.2%
C. 6.7%
D. 7.2%
9.The square root of the product of the Laspeyre’s index and Paasche’s Index is known as
……………………….
10. Which one of the following indices is increased by the weighted aggregate price index?
A. Laspeyre
B. Fisher
C. Paasche
D. Simple aggregate

E. Marshall and Edgeworth
11 . The Laspeyre’s price index uses the quantities of the ……………… as weights while Paasche’s price index uses the quantities of the ……………… as weights
12. Stock market indexes are used for the following purposes except:
A. To measure the general performance of the market.
B. To perform fundamental analysis.
C. To predict future price movement.
D. To analyze factors underlying stock price market.
13. Which of the following factors can affect stock prices?
A. The national economy.
B. The political situation in the country.
C. Global macroeconomic factors.
D. All of the above.

14. Which of the following is NOT a problem in the construction of index number?
A. Selection of sources of data
B. Definition of the purpose for which index is needed
C. Method of collecting data for index
D. Method of combining the data
E. Unweighted average price index
15. The prices of an accounting software in 2005 and
2006 were N15,000 and N20,000 respectively. The price relative index using 2005 as the base year is
....................
16. The technique of rounding off a number so that some digits are affected to make the number clearer and more understandable is.........................
THEORY
1.
The table below shows the average wholesale prices and production of fluid milk, butter and cheese for
1949, 1950 and 1958.
Compute the following:

a.
The price relative for milk corresponding to all the given year using 1949 as the base year. b.
An aggregate wholesale price index for the 1958 using 1949-1950 as base year c.
Fisher’s Ideal price index for year 1958 using 1949-
1950 as base year.
Prices Qties
Milk 3.95 3.89 4.13 9675 9717 10436
Butter 61.5 62.2 59.7 117.7 118.5 115.5
Cheese 34.8 35.4 38.9 77.93 74.39 82.79
2.
The table below shows the price per unit (p) and the quantities (q) of some essential food commodities for two consecutive years.
Year
Commodity
2009 2010
Price(N’00) quantity(kg) Price(N’00) quantity(kg)
Yam 4 6 5 5
Rice 8 10 7 12
Beans 10 5 12 9
Fish 5 3 6 5
Meat 6 4 8 6

You are required to calculate: a. Laspeyre’s price index b. Paasche’s price index c. Fisher’s price index