Que. 2 (d) The following
table gives the averages wholesale
prices of four fruits for the
years 1996 to 2000. Compute
Chain Base Index Number.
Fruit
¯
/
Year®
|
1996
|
1997
|
1998
|
1999
|
2000
|
Banana
|
14
|
18
|
16
|
15
|
17
|
|
Oranges
|
20
|
22
|
15
|
18
|
26
|
Mango
|
17
|
25
|
18
|
19
|
20
|
|
Apple
|
19
|
20
|
22
|
23
|
24
|
For
each period
step 1 : link relative for ith period
= figure of ith period
* 100 figure of preceding period link relatives based on preceding years
fruit
/ year
1996
1997
1998
1999
2000
banana 100
450
89
94
113
oranges 100
110
68
120
144
mango 100
147
72
105
105
apple
100
105
110
104
104
total of link
400 812
329
423
466
relatives
averages
100
203
82.25
105.75 116.5
step 2 : chain link relatives
together by successive multiplication
to get chain indices
chain index
= current years
link relatives *preceding year
chain index / 100
chain
100 203*100/100
82.25*203/100 105.75*166.96/100
116.5*176.6/100
=203
=166.96 =176.6
=205.70
|
|