The film is set in Hohman, Indiana, a fictionalized version of Shepherd's hometown of Hammond, named for Hohman Avenue, which runs through downtown Hammond. Local references in the film include Warren G. Harding Elementary School and Cleveland Street (where Shepherd spent his childhood). Other local references include mention of a person "swallowing a yo-yo" in nearby Griffith, the Old Man being one of the fiercest "furnace fighters in northern Indiana" and that his obscenities were "hanging in space over Lake Michigan," a mention of the Indianapolis 500, and the line to Santa Claus "stretching all the way to Terre Haute, Indiana." The Old Man is also revealed to be a fan of the Bears (whom he jokingly calls the "Chicago Chipmunks") and White Sox, consistent with living in northwest Indiana.

Answer this question based on the passage: what state is a christmas story based in? Okie... think carefully first, then make a decision:
The relevant information is: The film is set in Hohman, Indiana, a fictionalized version of Shepherd's hometown of Hammond, named for Hohman Avenue, which runs through downtown Hammond. So, the answer is Indiana.