Turn on thread page Beta
    • Thread Starter

    What the hell does rebasing to 100 or whatver number mean?
    Is it some sort of scaling, do you subtract the difference or is it a percentage thing?

    It's to do with indices. If you're comparing data points over time, one way to make the comparison simpler is to label a particular point as the "base", call it 100, then express all other points as a number relative to 100. Inflation in particular is often done this way. If you've got a basket of goods that cost £20 in 2005, £24 in 2006 and £26.40 in 2007, you might pick 2005 as the base year and call the price index 100, then 2006 has an index of 120 (24 / 20, x 100) and 2007 has an index of 132. It's then really easy to see that prices went up 20% in 2006, and were 32% higher in 2007 than in 2005.

    When you get a long way from your base year, though, and you're more interested in recent data than the base year, you can make your numbers more useful by rebasing. That's just tweaking all your indices up or down by the same proportion, such that a different year becomes 100. So, if we wanted to make 2006 our base year, we need to bring it down from 120 to 100, and everything else by the same proportion. So we multiply all the numbers by (100 / 120). 2006 becomes 100 and 2007 becomes 110 (132 x (100 / 120) = 110), so now we can easily see that prices went up by 10% in 2007. 2005, not that we care so much, becomes 83.3.

    great answer, thanks!

    Thanks a great deal
Submit reply
Turn on thread page Beta
TSR Support Team

We have a brilliant team of more than 60 Support Team members looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

Updated: February 18, 2018
Who is most responsible for your success at university
Useful resources

Articles and guides:

Hands typing

Degrees without fees

Discover more about degree-level apprenticeships.

A-Z of careers Advice on choosing a careerCV writing helpCovering letter helpInterview tips

Featured recruiter profiles:

CGI logo

CGI is open for applications

"Offering a range of apprentice and sponsored degree positions."

Deutsche Bank logo

Deutsche Bank is recruiting

"Thrive in an international banking environment"

ICAEW logo


"Merck is a global leader in specialized pharma & chemicals – join us!"

Army logo

The Army is recruiting now

"With hundreds of roles available, there’s more than one way to be the best."

Bianca Miller, runner-up on The Apprentice

Handle your digital footprint

What would an employer find out about you on Google? Find out how to take control.

Quick links:

Unanswered career sector and employment threads

Groups associated with this forum:

View associated groups

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.