CMA Foundation · Fundamentals of Business Mathematics and Statistics · Index Numbers and Time Series
A price index with base 2010 = 100 shows 180 for 2018. The base is shifted to 2018 = 100. If the old index for 2022 was 270, what is the new index for 2022 on base 2018?
The new index for 2022 is 150. In base shifting, divide the old index of the required year by the old index of the new base year and multiply by 100, so 270 divided by 180 times 100 equals 150.
- A90
- B150Correct
- C180
- D270
Explanation
New index = old index of the year / old index of the new base year × 100 = 270/180 × 100 = 150. Option 90 inverts the fraction (180/270 is about 67, not 90, so it is a mistaken halving). Option 270 leaves the index unchanged.
Did you get it right without looking?
One question tells you little. A timed set on Index Numbers and Time Series shows your real accuracy, how long you take and where you lose marks.
More Index Numbers and Time Series questions
- For a group of commodities, Laspeyres' price index is 144 and Paasche's price index is 100. What is Fisher's ideal price index?
- A firm's nominal sales were ₹9,00,000 in a year when the wholesale price index (base = 100) was 150. Deflating by the index, what are the sa…
- Quarterly seasonal indices computed for a company's sales are 95, 105 and 120 for the first three quarters. What must the seasonal index of …
- The Fisher ideal price index for 2023 with 2022 as base is 125. If the base is shifted to 2023, what is the Fisher price index for 2022 (exp…
- A time series is analysed by the multiplicative model. For a quarter, the deseasonalised sales are ₹ 80,000 and the seasonal index is 125. W…
- In a town, the consumer price index (base year 2015 = 100) stood at 250 in 2024. A clerk's monthly salary in 2024 is ₹40,000. What is the cl…