image

 

image

 

Shifting from Fixed to chain base

As discussed earlier, conditions change over a period due to revised weightings system, inclusion of new items and disappearance of old ones etc. Due to all these factors, sometimes it is necessary to convert the indices from fixed base to chain base. This can be explained with the help of following problem.

Problem: Convert the following indexes with base 1980 to chain indexes.

 

image

 

image

Share This