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CA Foundation · Quantitative Aptitude · Index Numbers

An old price index series with base 2010 = 100 stood at 125 in 2018 and was then discontinued. A new series with base 2018 = 100 shows 120 for 2022. Splicing the new series to the old base, what is the index for 2022 on the 2010 base?

The spliced 2022 index on the 2010 base is 150. Multiply the new-series index 120 by the old-series index at the link year, 125, and divide by 100. This applies the 20% rise since 2018 to the 2018 level of 125.

  1. A145
  2. B150Correct
  3. C245
  4. D105

Explanation

Splicing multiplies the new-series value by the old-series value at the link year and divides by 100: 120 × 125 ÷ 100 = 150. Adding the rise of 20 points to 125 (145) is incorrect because the 20% rise applies to the 2018 level of 125. Adding 125 and 120 (245) is meaningless.

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