CMA Foundation · Fundamentals of Business Mathematics and Statistics · Index Numbers and Time Series
A shift of base: an index series with base 2010 = 100 shows 2018 = 180 and 2023 = 270. If the base is shifted to 2018 = 100, the index for 2023 and the percentage rise from 2018 to 2023 respectively are:
The shifted index for 2023 is 150 and the rise is 50 percent. Dividing 270 by the 2018 value of 180 and multiplying by 100 gives 150, and since the new base is 100, the increase over 2018 is 50 percent.
- A90 and 90 percent
- B150 and 50 percentCorrect
- C150 and 150 percent
- D170 and 70 percent
Explanation
New index for 2023 = 270/180 x 100 = 150. With 2018 = 100, the rise is 150 - 100 = 50 percent. Reporting 150 percent confuses the index level with the increase; 90 comes from subtracting 180 from 270.
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