We use cookies to improve your experience on our site and to show you relevant advertising. By browsing this website, you agree to our use of cookies. Learn more   

AtoZmath.com
Support us
(New) All problem can be solved using search box
I want to sell my website www.AtoZmath.com with complete code
Home What's new College Algebra Games Feedback About us
Algebra Matrix & Vector Numerical Methods Statistical Methods Operation Research Word Problems Calculus Geometry Pre-Algebra


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
4. Example-4
(Previous example)		6. Example-6
(Next example)

5. Example-5


Find index number using Fixed base method by taking base year 2005, Chain base method, Fixed base method by taking average of years 2009,2010,2011
YearPrice
20051650
20061690
20071730
20081750
20091810
20101850
20111870
20121900
20131950


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 2005 as base year
Base Price = 1650 for base year 2005
The index number will be taken as 100 for the price 1650 in the base year 2005

2. Chain base method :

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

Price for the year 2005 is not given here.
Hence, we will take the index number for 2005 as 100.

3. Fixed base method by taking average of years :

Average price for year `2009,2010,2011` `=(1810+1850+1870)/3=1843.3333`

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


YearPriceFixed base index number
base year `2005`

`=("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 `2009,2010,2011`

`=(1810+1850+1870)/3=1843.3333`
as base year price
20051650`1650/1650 xx 100=100``1650/1650 xx 100=100``1650/1843.3333 xx 100=89.51`
20061690`1690/1650 xx 100=102.42``1690/1650 xx 100=102.42``1690/1843.3333 xx 100=91.68`
20071730`1730/1650 xx 100=104.85``1730/1690 xx 100=102.37``1730/1843.3333 xx 100=93.85`
20081750`1750/1650 xx 100=106.06``1750/1730 xx 100=101.16``1750/1843.3333 xx 100=94.94`
20091810`1810/1650 xx 100=109.7``1810/1750 xx 100=103.43``1810/1843.3333 xx 100=98.19`
20101850`1850/1650 xx 100=112.12``1850/1810 xx 100=102.21``1850/1843.3333 xx 100=100.36`
20111870`1870/1650 xx 100=113.33``1870/1850 xx 100=101.08``1870/1843.3333 xx 100=101.45`
20121900`1900/1650 xx 100=115.15``1900/1870 xx 100=101.6``1900/1843.3333 xx 100=103.07`
20131950`1950/1650 xx 100=118.18``1950/1900 xx 100=102.63``1950/1843.3333 xx 100=105.79`


This material is intended as a summary. Use your textbook for detail explanation.
Any bug, improvement, feedback then Submit Here


4. Example-4
(Previous example)		6. Example-6
(Next example)


Share this solution or page with your friends.


Home What's new College Algebra Games Feedback About us
 
Copyright © 2024. All rights reserved. Terms, Privacy
 
 

.