When the base year of a fixed base index series is changed from 2010 to 2015, the new index for 2020 is obtained by: MCQ with Answer and Explanation

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When the base year of a fixed base index series is changed from 2010 to 2015, the new index for 2020 is obtained by:

A. Adding the old indices

B. Multiplying old index by 100/index of new base year

C. Dividing old index by old index of new base year and multiplying by 100

D. Taking the geometric mean of the two indices

Answer: Option C

Solution (By JKExamLibrary)

New index = (Old index for target year / Old index for new base year) × 100.

This question belongs to: Accountancy and Statistics Statistics

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