Business Statistics

634 Business Statistics

Solution By taking 1992–1993 as the base year, the index value for 1993–1994 can be

computed by the formula:

Value in the period 1993 1994

Index number for the period 1993 1994 100

Value in the base period 1992 1993

350

100 106.06

330

 

−

− = ×

 

−

 

 

= × =

 

 

Similarly, other index values for different time periods can be computed easily as exhibited in

Table 16.38.

tabLe 16.38

Index values for 1993–1994 to 2002–2003 after taking 1992–

1993 as the base year

Year Minimum support price for wheat

(Rs per quintal)

Index values

1992–1993 330 100

1993–1994 350 106.06

1994–1995 360 109.09

1995–1996 380 115.15

1996–1997 ...