CA Foundation · Quantitative Aptitude · Index Numbers
An old price index series with base 2012 = 100 shows 120 for 2015 and 160 for 2018. A new series with base 2018 = 100 replaces it. Expressed on the new base (2018 = 100), the index for 2015 is:
The 2015 index on the new base 2018 = 100 is 75. Dividing the old 2015 index of 120 by the old 2018 index of 160 and multiplying by 100 gives 75. Inverting the ratio or subtracting the indices would be incorrect.
- A75Correct
- B133.33
- C40
- D192
Explanation
To express the old value on the base 2018, divide by the old index of 2018 and multiply by 100: 120/160 × 100 = 75. The value 133.33 comes from inverting the ratio (160/120). The value 40 comes from subtracting 120 from 160, which is wrong.
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