Chapter 15,17,18 test review Flashcards

1
Q

hypothesis test that compares an observed frequency distribution to an expected frequency distribution on a nominal or ordinal scale.

A

Goodness of fit test

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2
Q

What are the three characteristics of a chi square distribution

A
  1. Always greater than or equal to zero
  2. It is a family of distributions based on the degrees of freedom
  3. They are positively squared.
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3
Q

What are two limitations to the chi square test

A
  1. If there are two categories with, they need to have an expected frequency of at least 5
  2. If there are more than two categories, then at least 20% of them need to have a frequency of more than 5
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4
Q

A number that expresses the relative change in price, quantity, or value compared to a base period.

A

Index number

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5
Q

Name three characteristics of a of an index

A
  1. It is a percent, but the percent is typically left off
  2. They have either a base or a base period their set against
  3. Most businesses report to the nearest whole number or 10th
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6
Q

Simple index that averages the price of items at different times

A

Simple average index

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7
Q

Simple index that sums prices of two periods and bases the index on the totals

A

Simple aggregate index

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8
Q

Weighted index that uses base-period quantities as weights

A

Laspeyres

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9
Q

Weighted index that uses current period quantities as weights

A

Paasche Price

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10
Q

Weighted index that uses the geometric mean of Laspeyres and Paasche indexes

A

Fishers ideal index

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11
Q

Weighted index that measures changes in both prices and quantities involved

A

Value index

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12
Q

This special index describes the changes in prices from one period to another for a “market basket” of goods and services

A

Consumer price index

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13
Q

A special index that reflects the prices of over 3400 commodities. It is a Laspeyres type index

A

Producer price index

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14
Q

What major functions does the CPI perform

A
  1. Illustrates erosion of purchasing power
  2. Works as a yardstick for revising wages, pensions, and other income
  3. An economic indicator for the rate of inflation
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15
Q

A persons current buying power compared to buying power of the base period of the index

A

real income

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16
Q

A collection of historical observations recorded over time that are presented in chronological order.

A

Time Series analysis

17
Q

The change of a variable over time

A

Trend pattern

18
Q

Patterns of highs and lows in a time series within a calendar year that tend to repeat annually

A

Seasonality

19
Q

A pattern of highs and lows occurring over periods of many years. Minimum of 1 year

A

cyclical pattern

20
Q

The random variable in a time series referred to as the residual variation

A

Irregular component

21
Q

Forecasting technique when a series is stationary and observations are equally weighted

A

Simple moving average

22
Q

Forecasting technique when series is stationary and observations are not equally weighted

A

Exponential smoothing

23
Q

A value applied in exponential smoothing to determine the weights assigned to past observations. Vale is between 0 and 1

A

Smoothing constant

24
Q

The mean of the absolute error is called

A

The mean absolute deviation or MAD

25
Q

The sum of the absolute relative (percent) errors

A

The mean absolute percent error or MAPE

26
Q

When successive residuals are correlated

A

Autocorrelation

27
Q

What is the method of determining the degrees of freedom when using chi square to test for independence on a contingency table

A

df = (r-1)(c-1)

28
Q

How to calculate expected frequency on chi square independence test

A

((row total)*(column total))/grand total

29
Q

How do you determine the df when using chi sq to test normality

A
  1. Population mean and standardiviation are known, k-1
  2. Population mean is known but standard deviation is estimated, K-2
  3. When population and deviation are estimated, k-3
30
Q

used to determine whether two nominal-scaled variables are related

A

Contingency table analysis

31
Q

What is the formula for real income

A

(Money income/CPI)*100

32
Q
A