Index numbers(composite index number)(average of relative index by chain base method)

1. NADEEM UDDIN
ASSOCIATE PROFESSOR
OF STATISTICS
https://www.slideshare.net/NadeemUddin17
https://nadeemstats.wordpress.com/listofbooks/

2. Commodities
Price
2004 2005 2006 2007 2008
Kappas 620 618 719 909 874
Wheat 204 219 245 288 305
Rice 616 671 704 767 910
Example – 8:
The following table gives the average whole-sale prices.
Construct the chain indices.

3. Solution:

4. Years
Commodities
Kappas Wheat Rice
2004 620 204 616
2005 618 219 671
2006 719 245 704
2007 909 288 767
2008 874 305 910
Example – 9:
The following table gives the average whole-sale prices.
Construct the chain indices.

5. Years Link Relatives Mean Chain Indices
Kappas Wheat Rice
2004 100 100
2005 105.32 105.32
2006 111.04
2007 117.64
2008 106.89
Solution:

6. Commodities Price
2002 2003 2004
A 10 12 13.5
B 16 16.5 17
C 18 18.5 19
D 20 21 21.5
1-Construct chain base indices.
Years Tea Coffee Sugar
2001 81 82 111
2002 77 96 119
2003 87 88 128
2004 75 89 139
2005 90 84 146
2-Construct chain base indices.
DO YOURSELF

7. Answers
1).100,107.73,113.28
2).100,106.45,110.78,109.28,116.35