Find index number using Chain base method
Item\Year | 2007 | 2008 | 2009 | 2010 |
Murder | 110 | 128 | 134 | 129 |
Rape | 30 | 45 | 40 | 48 |
Robbery | 610 | 720 | 770 | 830 |
Theft | 2450 | 2630 | 2910 | 2890 |
Solution:
Chain base method :
Chain base index number `I=("Value of variable in current year (period)")/("Value of variable in preceding year (period)") xx 100`
Item\Year | 2007 | 2008 | 2009 | 2010 |
Murder | `(110)/(110)xx100=100` | `(128)/(110)xx100=116.36` | `(134)/(128)xx100=104.69` | `(129)/(134)xx100=96.27` |
Rape | `(30)/(30)xx100=100` | `(45)/(30)xx100=150` | `(40)/(45)xx100=88.89` | `(48)/(40)xx100=120` |
Robbery | `(610)/(610)xx100=100` | `(720)/(610)xx100=118.03` | `(770)/(720)xx100=106.94` | `(830)/(770)xx100=107.79` |
Theft | `(2450)/(2450)xx100=100` | `(2630)/(2450)xx100=107.35` | `(2910)/(2630)xx100=110.65` | `(2890)/(2910)xx100=99.31` |
Total | 400 | 491.74 | 411.17 | 423.37 |
Aggregate index number `=("Total")/4` | `400/4=100` | `491.74/4=122.94` | `411.17/4=102.79` | `423.37/4=105.84` |
This material is intended as a summary. Use your textbook for detail explanation.
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