Conversion of fixed base index numbers into chain base index numbers
| Year | Index |
| 2008-09 | 126 |
| 2009-10 | 130.8 |
| 2010-11 | 143.3 |
| 2011-12 | 156.1 |
| 2012-13 | 167.6 |
| 2013-14 | 177.6 |
| 2014-15 | 181.2 |
| 2015-16 | 177.2 |
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 |
| 2008-09 | 126 | `=100` |
| 2009-10 | 130.8 | `(130.8)/(126)xx100=103.8095` |
| 2010-11 | 143.3 | `(143.3)/(130.8)xx100=109.5566` |
| 2011-12 | 156.1 | `(156.1)/(143.3)xx100=108.9323` |
| 2012-13 | 167.6 | `(167.6)/(156.1)xx100=107.3671` |
| 2013-14 | 177.6 | `(177.6)/(167.6)xx100=105.9666` |
| 2014-15 | 181.2 | `(181.2)/(177.6)xx100=102.027` |
| 2015-16 | 177.2 | `(177.2)/(181.2)xx100=97.7925` |
This material is intended as a summary. Use your textbook for detail explanation.
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