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What is Chain Based Index Numbers?
HOW MUCH WILL A NEW CAR COST? THE AVERAGE COST OF A NEW CAR IN 1990 WAS $14371. IN 2003 THE AVERAGE COST HAD RISEN TO $22360. WHAT IS THE AMOUNT OF THE MONTHLY PAYMENT? THE AMOUNT
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If PA and PB are tangents to a circle from an outside point P, such that PA=10cm and ∠APB=60 o . Find the length of chord AB.
A chain based index is one whereas the index is calculated every year by using the previous year as the base year. This kind of index measures rate of change from year to year. This method is appropriate where weights are changing rapidly and items are constantly being brought into the index and unwanted items taken out. This can be a quantity or price index.
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