Consider the following two piece index series:

Question

2008=100 2012=100 2010=100
2007 94 A
2008 100 B
2009 115 C
2010 110 80 D
2011 90 E
2012 100 F
2013 115 G


Splice the two price index series to form one continuous series with 2010 as the base year.
Find the value of B.

Answer 1

To splice the two index series together, we need to convert all values to a base year of 2010.

For the first index series:
2008=100 2012=100 2010=100
2007 94 A
2008 100 B
2009 115 C
2010 110 80 D
2011 90 E
2012 100 F
2013 115 G

For the second index series:
2010=100
2007 94
2008
2009 120
2010 110
2011 80
2012 100
2013 140

Now we can splice the two series together:
2007 94
2008 (100 + 100)/2 = 100
2009 (115 +120)/2 = 117.5 (rounded to 118)
2010 (110 +110)/2 = 110
2011 (90+80)/2 = 85
2012 (100 +100)/2 = 100
2013 (115+140)/2 = 127.5 (rounded to 128)

Therefore, the value of B in the spliced series is 100.