Correct Answer - Option 2 : 86.2
Given
The price index in 2016 is 116 using 2011 as base year
Formula
Index number = (index number for base year/index number of current year) × 100
Calculation
Case 1 - Base year = 2011
⇒ Current year = 2016
⇒ Price index = 116
⇒ Price index = (Index of 2016/index of 2011) × 100
⇒ 116 = (Index of 2016/index of 2011) × 100
⇒ (Index of 2016/index of 2011) = 116/100 ------(i)
Case 2
⇒ Base year = 2016
⇒ Current year = 2011
⇒ Price index = (Index of 2011/index of 2016) × 100
⇒ Price index = 1/(Index of 2016/index of 2011) × 100
From eq(i)
⇒ Price index = (1/116/100) × 100
⇒ 100 × 100/116
∴The price index in 2011 is 86.2 if base year is changed to 2016
