CA Foundation · Quantitative Aptitude · Index Numbers
An old index series (base 2008 = 100) ended in 2016 at 160. A new series (base 2016 = 100) shows 110 for 2019. The old series is spliced to the new series, so that the new series is expressed on base 2008 = 100. What is the spliced index for 2019 on base 2008?
The spliced index for 2019 is 176. The new series value 110 is multiplied by the old series value for 2016, which is 160, and divided by 100. This links the two series on the old base 2008 = 100.
- A176Correct
- B50
- C150
- D145.5
Explanation
Spliced index = new index × old index of the splicing year / 100 = 110 × 160 / 100 = 176. Dividing instead gives 110 / 160 × 100 = 68.75 and is wrong. Adding the differences, 160 + 10 = 170, is not valid either, since indices are linked by ratio.
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