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Home > Statistical Methods calculators > Fixed base method and Chain base method example
1. Fixed base method and Chain base method example ( Enter your problem )
( Enter your problem )
  1. index number using Fixed base method by taking base year 2005 Example-1
  2. index number using Fixed base method by taking average of years 2010,2011 Example-2
  3. index number using Chain base method Example-3
  4. Example-4
  5. Example-5
  6. Example-6
 		Other related methods
  1. Fixed base method and Chain base method
  2. Unweighted Index Number
  3. Fixed base method and Chain base method for bivariate grouped data
  4. Conversion of fixed base index numbers into chain base index numbers
  5. Weighted Index Numbers
  6. Weighted average method
  7. Cost of living Index number
3. index number using Chain base method Example-3
(Previous example)		5. Example-5
(Next example)

4. Example-4


Find index number using Fixed base method by taking base year 2008, Chain base method, Fixed base method by taking average of years 2010,2011
YearPrice
2008230
2009250
2010230
2011250
2012270
2013280
2014300
2015300


Solution:
1. Fixed base method :

`"Index Number I"=("Price of current year")/("Price of base year") xx 100`

We will find the fixed base index number by taking 2008 as base year
Base Price = 230 for base year 2008
The index number will be taken as 100 for the price 230 in the base year 2008

2. Chain base method :

`"Index Number I"=("Price of current year")/("Price of preceding year") xx 100`

Price for the year 2008 is not given here.
Hence, we will take the index number for 2008 as 100.

3. Fixed base method by taking average of years :

Average price for year `2010,2011` `=(230+250)/2=240`

`"Index Number I"=("Price of current year")/("Average base price") xx 100`


YearPriceFixed base index number
base year `2008`

`=("Price of current year")/("Price of base year") xx 100`		Chain base index number

`=("Price of current year")/("Price of preceding year") xx 100`		Index number by taking
average of price in year `2010,2011`

`=(230+250)/2=240`
as base year price
2008230`230/230 xx 100=100``230/230 xx 100=100``230/240 xx 100=95.83`
2009250`250/230 xx 100=108.7``250/230 xx 100=108.7``250/240 xx 100=104.17`
2010230`230/230 xx 100=100``230/250 xx 100=92``230/240 xx 100=95.83`
2011250`250/230 xx 100=108.7``250/230 xx 100=108.7``250/240 xx 100=104.17`
2012270`270/230 xx 100=117.39``270/250 xx 100=108``270/240 xx 100=112.5`
2013280`280/230 xx 100=121.74``280/270 xx 100=103.7``280/240 xx 100=116.67`
2014300`300/230 xx 100=130.43``300/280 xx 100=107.14``300/240 xx 100=125`
2015300`300/230 xx 100=130.43``300/300 xx 100=100``300/240 xx 100=125`


This material is intended as a summary. Use your textbook for detail explanation.
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3. index number using Chain base method Example-3
(Previous example)		5. Example-5
(Next example)


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