CA Foundation · Quantitative Aptitude · Index Numbers
A consumer price index with base 2012 = 100 was discontinued when it read 200 in 2019. A new series with base 2019 = 100 reads 130 in 2023. Using splicing to express the new series on the old base, what is the 2023 value on the 2012 base?
The spliced 2023 index on the 2012 base is 260. Splicing links the new series to the old one by multiplying 130 by 200/100, since the old index was 200 at the linking year 2019. Simply adding 130 to 200 would be wrong.
- A230
- B260Correct
- C330
- D150
Explanation
Splicing multiplies the new index by the old index at the linking year divided by 100. Spliced value = 130 × 200/100 = 260. Adding the figures to get 330 (200 + 130) is a mistake, because index numbers on different bases must be chained, not added.
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