From the chain base index given below, perpare fixed base index numbers.

Question: From the chain base index given below, perpare fixed base index numbers.

Year: 1981 1982 1983 1984 1985
Index: 110 160 140 200 150

Solution:

Conversion from chain base to fixed base index

YearChain base indexConversionFixed index
1981110 110.0
1982160(160×110)/100176.0
1983140(140×176)/100246.4
1984200(200×264.4)/100492.8
1985150(150×492.8)/100739.2