Description
linkedIndex = previousIndex*(linkPrice/priorPrice).
Historical price series need compatible quantities, quality, dates and currency conventions. Rebasing or splicing a series changes its numerical scale without resolving source comparability or proving a change in living standards.
linkedIndex = previousIndex*(linkPrice/priorPrice).
When to use this tool
Use Price Series Chain Link Term when checking a supplied historical price or index transformation.
How to use the tool and how it works
- Enter previousIndex, linkPrice, priorPrice. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read linkedIndex. Use the output convention below.
Require positive priorPrice and nonnegative previousIndex and linkPrice. linkedIndex = previousIndex*(linkPrice/priorPrice).1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| previousIndex | Previous Index | Required. Finite number; minimum 0. |
| linkPrice | Link Price | Required. Finite number; minimum 0. |
| priorPrice | Prior Price | Required. Finite number; strictly above 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| linkedIndex | Linked Index | Required. Finite number. |
{
"input": {
"previousIndex": 100,
"linkPrice": 12,
"priorPrice": 10
},
"output": {
"linkedIndex": 120
}
}Limitations and assumptions
- Prices must describe comparable units and quality. This forms one chain link without reconstructing a full index, checking historical sources or adjusting a commodity basket.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Verify the original quotation basis and comparable series concepts, and use appropriate historical evidence for quality and unit adjustments.
References
Similar or alternative tools
- Historical Price Unit Factor
targetUnitPrice = quotedPrice*targetQuantity/sourceQuantity; provenanceKey = JSON.stringify([source,dateLabel,commodity]).
- Historical Money Price Base Gap
rebasedAmount = nominalAmount*targetPriceIndex/sourcePriceIndex; comparisonGap subtracts suppliedComparison.