To splice the two index series together, we need to adjust the second series to have 2010 as the base year.
From the first series:
2008 = 100
2010 = 100
From the second series:
2010 = 80
To adjust the second series to have 2010 as the base year, we need to find the adjustment factor.
Adjustment Factor = (Index Value for 2010 from the first series) / (Index Value for 2010 from the second series)
Adjustment Factor = 100 / 80
Adjustment Factor = 1.25
Adjusted index value for 2010 in the second series = 80 * 1.25 = 100
Now, we can splice the two index series together:
2007 - 94
2008 - 100
2009 - 115
2010 - 100
2011 - 90
2012 - 100
2013 - G
From the second series, we know that 2013 has an index value of 115 (as given).
Since we have adjusted the second series to have 2010 as the base year, we can directly use this value.
Therefore, the value of G is 115.
Consider the following two piece 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
Splice the two price index series to form one continuous series with 2010 as the base year.
Find the value of G.
1 answer
1 answer