Question

After some consideration it has been decided to change the base year for the fuel index from 2000 to 2005.


(2000=100) (2005=100)
1998 92 A
1999 98 B
2000 100 C
2001 104 D
2002 110 E
2003 118 F
2004 120 G
2005 125 H
2006 115 I


Find the value of A.

Answer 1

To find the value of A, we need to use the new base year of 2005=100 to adjust the value from 1998 to the new base year.

First, we need to calculate the adjustment factor from 2000 to 2005:
Adjustment factor = (Value in 2005 / Value in 2000) = H/C = 125/100 = 1.25

Now, we can use this adjustment factor to find the value of A:
A = Value in 1998 * Adjustment factor
A = 92 * 1.25
A = 115

Therefore, the value of A is 115.