1. Conversion of fixed base index numbers into chain base index numbers
| Year | Index |
| 2009 | 120 |
| 2010 | 132 |
| 2011 | 96 |
| 2012 | 144 |
| 2013 | 138 |
| 2014 | 108 |
Solution:
Conversion of fixed base index numbers into chain base index numbers :
Since base year is not mentioned here, So we will take 100 as the chain base index number for first year
`"Chain base index number"=("Fixed base index number of current year")/("Fixed base index number of preceding year") xx 100`
| Year | Fixed base index number | Chain base index number |
| 2009 | 120 | `=100` |
| 2010 | 132 | `(132)/(120)xx100=110` |
| 2011 | 96 | `(96)/(132)xx100=72.7273` |
| 2012 | 144 | `(144)/(96)xx100=150` |
| 2013 | 138 | `(138)/(144)xx100=95.8333` |
| 2014 | 108 | `(108)/(138)xx100=78.2609` |
This material is intended as a summary. Use your textbook for detail explanation.
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