Find index number using Fixed base method by taking average of years 2010,2011
| Year | Price |
| 2008 | 186 |
| 2009 | 196 |
| 2010 | 202 |
| 2011 | 214 |
| 2012 | 229 |
| 2013 | 216 |
| 2014 | 226 |
| 2015 | 230 |
Solution:1. Fixed base method by taking average of years :Average price for year `2010,2011` `=(202+214)/2=208`
`"Index Number I"=("Price of current year")/("Average base price") xx 100`
| Year | Price | Index number by taking
average of price in year `2010,2011`
`=(202+214)/2=208`
as base year price |
| 2008 | 186 | `186/208 xx 100=89.42` |
| 2009 | 196 | `196/208 xx 100=94.23` |
| 2010 | 202 | `202/208 xx 100=97.12` |
| 2011 | 214 | `214/208 xx 100=102.88` |
| 2012 | 229 | `229/208 xx 100=110.1` |
| 2013 | 216 | `216/208 xx 100=103.85` |
| 2014 | 226 | `226/208 xx 100=108.65` |
| 2015 | 230 | `230/208 xx 100=110.58` |
This material is intended as a summary. Use your textbook for detail explanation.Any bug, improvement, feedback then
Submit Here
