Conversion of fixed base index numbers into chain base index numbers
| Year | Index |
| 2008-09 | 134.8 |
| 2009-10 | 115.28 |
| 2010-11 | 115.57 |
| 2011-12 | 107.29 |
| 2012-13 | 109.91 |
| 2013-14 | 112.80 |
| 2014-15 | 106.24 |
| 2015-16 | 102.48 |
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 | 134.8 | `=100` |
| 2009-10 | 115.28 | `(115.28)/(134.8)xx100=85.5193` |
| 2010-11 | 115.57 | `(115.57)/(115.28)xx100=100.2516` |
| 2011-12 | 107.29 | `(107.29)/(115.57)xx100=92.8355` |
| 2012-13 | 109.91 | `(109.91)/(107.29)xx100=102.442` |
| 2013-14 | 112.8 | `(112.8)/(109.91)xx100=102.6294` |
| 2014-15 | 106.24 | `(106.24)/(112.8)xx100=94.1844` |
| 2015-16 | 102.48 | `(102.48)/(106.24)xx100=96.4608` |
This material is intended as a summary. Use your textbook for detail explanation.
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