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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
5. Example-5
(Previous example)		2. Unweighted Index Number
(Next method)

6. Example-6


Find index number using Fixed base method by taking base year 2008, Chain base method, Fixed base method by taking average of years 2009,2010,2011
YearPrice
2008186
2009196
2010202
2011214
2012229
2013216
2014226
2015230


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 = 186 for base year 2008
The index number will be taken as 100 for the price 186 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 `2009,2010,2011` `=(196+202+214)/3=204`

`"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 `2009,2010,2011`

`=(196+202+214)/3=204`
as base year price
2008186`186/186 xx 100=100``186/186 xx 100=100``186/204 xx 100=91.18`
2009196`196/186 xx 100=105.38``196/186 xx 100=105.38``196/204 xx 100=96.08`
2010202`202/186 xx 100=108.6``202/196 xx 100=103.06``202/204 xx 100=99.02`
2011214`214/186 xx 100=115.05``214/202 xx 100=105.94``214/204 xx 100=104.9`
2012229`229/186 xx 100=123.12``229/214 xx 100=107.01``229/204 xx 100=112.25`
2013216`216/186 xx 100=116.13``216/229 xx 100=94.32``216/204 xx 100=105.88`
2014226`226/186 xx 100=121.51``226/216 xx 100=104.63``226/204 xx 100=110.78`
2015230`230/186 xx 100=123.66``230/226 xx 100=101.77``230/204 xx 100=112.75`


This material is intended as a summary. Use your textbook for detail explanation.
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5. Example-5
(Previous example)		2. Unweighted Index Number
(Next method)


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