Question: Compute chain Index numbers with 1986 prices as base from the following table giving the average wholesale price of the commodities A,B,C for years 1987 to 1990
| Commodities | 1986 | 1987 | 1988 | 1989 | 1990 |
| A | 20 | 16 | 28 | 35 | 21 |
| B | 25 | 30 | 24 | 36 | 45 |
| C | 20 | 25 | 30 | 24 | 30 |
Solution:
| Commodity | 1986 | 1987 | 1988 | 1989 | 1990 |
| A | 100 | 16/20*100=80 | 28/16*100=175 | 35/28*100=125 | 21/35*100=60 |
| B | 100 | 30/25*100=120 | 24/30*100=80 | 36/24*100=150 | 45/36*100=125 |
| C | 100 | 25/20*100=125 | 30/25*100=125 | 24/30*100=80 | 30/24*100=125 |
| Total of link relatives | 300 | 325 | 375 | 355 | 310 |
| Average | 100 | 108.33 | 125 | 118.33 | 103.33 |
| Chain Relatives | 100 | 108.33*100/100 =108.33 | 125*108.33/100 =135.41 | 118.33*135.41/100 =160.23 | 103.33*160.23/100 =165.5 |