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Chain Base Method

¹                      Chain Base Method Chain Index = πΏπ‘–π‘›π‘˜ π‘Ÿπ‘’π‘™π‘Žπ‘‘π‘–π‘£π‘’ π‘œπ‘“ 𝑑𝑕𝑒 π‘π‘’π‘Ÿπ‘Ÿπ‘’π‘›π‘‘ π‘¦π‘’π‘Žπ‘Ÿ 𝑋 π‘ƒπ‘Ÿπ‘’π‘£π‘–π‘œπ‘’π‘  π‘¦π‘’π‘Žπ‘Ÿ π‘π‘•π‘Žπ‘–π‘› 𝐼𝑛𝑑𝑒π‘₯ 100 The link relative = πΆπ‘’π‘Ÿπ‘Ÿπ‘’π‘›π‘‘ π‘¦π‘’π‘Žπ‘Ÿπ‘  π‘π‘Ÿπ‘–π‘π‘’ π‘ƒπ‘Ÿπ‘’π‘£π‘–π‘œπ‘’π‘  π‘¦π‘’π‘Žπ‘Ÿπ‘  π‘π‘Ÿπ‘–π‘π‘’ 𝑋 100 Example: 9 Convert the following fixed base index numbers into chain base index numbers: Year 2002 2003 2004 2005 2006 2007 F.B.I 376 392 408 380 392 400 Solution: year F.B.I Link Relative Chain Index 2002 2003 2004 2005 2006 2007 376 392 408 380 392 400 …… 392 376𝑋 100 = 104.26 408 392𝑋 100 = 104.08 380 408𝑋 100 = 93.14 392 380𝑋 100 = 103.16 400 392𝑋 100 = 102.04 392 376𝑋104.26 100 = 392 392 𝑋 104.08 100 = 408 408𝑋93.14 100 = 380 380𝑋103.16 100 = 392 392𝑋102.04 100 = 400 Merits of Chain Base Method: i. It is more free from seasonal variation than by the other methods. ii. Weights can be adjusted as frequently as possible. Demerits of Chain Base Method:...
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