Shifting of Base Year

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">Most index numbers are subjected to revision from time to time due to different reasons&period; In most cases it becomes compulsory to change the base year because numerous changes took place with the passage of time&period; For example changes may happen due to disappearance of old items&comma; inclusion of new ones&comma; changes in weights of commodities or changes in conditions&comma; habits&comma; and standard of life etc&period; <&sol;p>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<h3 align&equals;"justify">Shifting from one fixed base to another fixed base<&sol;h3>&NewLine;<p align&equals;"justify">&NewLine;To convert a fixed base to a new fixed base each old index is divided by the index of new base sought multiplied by 100&period; It can be illustrated with the help of following problem&period; <&sol;p>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<p align&equals;"justify"><strong>Problem&colon;<&sol;strong> Following series is given to the base year 1995&period; Now convert it into the new series with base year 1998&period; <&sol;p>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p align&equals;"justify"><a href&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;wp-content&sol;uploads&sol;2010&sol;06&sol;image151&period;png"><img title&equals;"image" style&equals;"border-top-width&colon; 0px&semi; display&colon; inline&semi; border-left-width&colon; 0px&semi; border-bottom-width&colon; 0px&semi; border-right-width&colon; 0px" height&equals;"65" alt&equals;"image" src&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;wp-content&sol;uploads&sol;2010&sol;06&sol;image&lowbar;thumb151&period;png" width&equals;"500" border&equals;"0" &sol;><&sol;a> <&sol;p>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<p align&equals;"justify"><a href&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;wp-content&sol;uploads&sol;2010&sol;06&sol;image152&period;png"><img title&equals;"image" style&equals;"border-top-width&colon; 0px&semi; display&colon; inline&semi; border-left-width&colon; 0px&semi; border-bottom-width&colon; 0px&semi; border-right-width&colon; 0px" height&equals;"315" alt&equals;"image" src&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;wp-content&sol;uploads&sol;2010&sol;06&sol;image&lowbar;thumb152&period;png" width&equals;"500" border&equals;"0" &sol;><&sol;a> <&sol;p>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<h3 align&equals;"justify">Shifting from chain base to fixed base<&sol;h3>&NewLine;<p>One of the disadvantages of chain base method is that the comparison between distant periods is not immediately evident&period; Therefore it becomes necessary to convert chain base indices into fixed base indices&period; This can be illustrated with the help of following problem&period;<&sol;p>&NewLine;<p><strong>Problem&colon;<&sol;strong> Convert the following chain indexes into the new series with base year 1970&period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;