Home › Maharashtra HSC Class 12 (Commerce) › businessmathematics › Index Numbers › Splicing of two index series is done to
Splicing of two index series is done to
AFind geometric mean (typical) (typical) (typical)
BAverage two indices (typical) (typical) (typical)
CCompute price relative (typical) (typical) (typical)
DCombine them into a continuous series with a common base
Answer & Solution
Correct answer: D. Combine them into a continuous series with a common base
1. Splicing joins two series with different base periods into one continuous index series.
2. Conversion factor = (new series' base period value in old series) / 100 (or vice versa).
3. Useful when official statistics change base year.
4. Hence (A) is correct.
_Source: Maharashtra Balbharati Std XII Mathematics & Statistics (Commerce), Ch 3 "Quantity and Value Index", §3.8 ¶§3.8_
Related questions
In quantity index ΣQ₁P₀ / ΣQ₀P₀ × 100, the weights areValue Index relatesTime Reversal Test of an index number requiresIf the base year price of an article is Rs 50 and the current year price is Rs 60, the priIn Cost of Living Index, the items are usually classified underFisher's ideal index is thePaasche's price index uses weights fromLaspeyres' price index uses weights from