Page 283 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 283
Statistical techniques
6.3 Using an index number
Index numbers can also be used to forecast future data to be in cash flows.
The formula for using an index is:
Current index ÷ base index × base value
Test your understanding 9
The sales price of $20 was set when the index number was 100. The index
numbers for the coming months are:
January 102.7
February 105.5
March 108.3
Calculate the sales prices for January, February and March
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