Index numbers

I've quoted you

From my U7 practice paper - task is to use trend data calculated in previous task and index numbers given to index figures for the next quarter.

I've been given a list of quarters and their index numbers and then 2 blank columns headed 'unindexed trend' and 'indexed trend'.

Presumably, I fill in 'unindexed trend' with the trend data from the previous task.

Then what?! How do I calculated the indexed trend?

And how do I get the next year Q1 figure when my moving average trends only got me to Q2 of the previous year?!

I'm sorry, I don't understand your question

Using a trend and projecting that trend into the future appears on a few exams.

Often you find that the trend rises by the same amount each quarter, and assume this will continue so you add the quarterly increase.

Sometimes you can't see an obvious figure, so text books recommend finding the average rate of growth and using that.


Hopefully that enables you to extrapolate your unindexed trend into the future.

Once you've done that, take each value and multiply it by the index for that quarter to produce an indexed trend.

Without seeing your question I have had to have a bit of a shot in the dark, but the style of question sounds reasonably common and I hope what I've written helps.