As Chief Statistician for the Municipality, You Want to Compute

question 77

Multiple Choice

As chief statistician for the municipality, you want to compute and publish every year a special-purpose index, which you plan to call Index of Municipal Business Activity. Three series seem to hold promise as the basis for the index; namely, the price of wheat, the number of new automobiles sold and the rate of money turnover for the municipality (published by a local bank) . Arbitrarily you decide that money turnover should have a weight of 60 percent; number of new automobiles sold, 30 percent; and the price of wheat, 10 percent. What is the Index of Municipal Business Activity for 2010 (the base year) and for 2014?

• A) 100 for 2010, 139 for 2014
• B) 139 for 2010, 100 for 2014
• C) 100 for 2010, 61 for 2014
• D) 100 for 2010, 100 for 2014
• E) 100 for 2010, 160 for 2014

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Definitions:

Disagreements

Occurrences of conflicting opinions or views among individuals or groups.

Trade Discounts

A reduction in the listed price of goods or services offered by sellers to buyers in the business-to-business market or in bulk purchases.

Distribution Chain

A sequence of processes through which a product or service passes until it reaches the end consumer, including manufacturers, wholesalers, and retailers.

Federal Trade Commission

The Federal Trade Commission (FTC) is a United States government agency established to protect consumers and ensure a strong competitive market by enforcing antitrust and consumer protection laws.