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What is Chain Based Index Numbers?
A standard deck of cards contains 52 cards. One card is selected at random. Determine a) The probability that the card is a 8 or an Ace? b) The probability that the card is
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Equal groupings - when we want to find how many objects there are in several equal-sized sets. (e.g., if there are 3 baskets, each with 4 bananas, 4 oranges and 4 apples, respec
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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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