TOPIC PAGE

Introduction 1-2
Appreciation 3
A Brief History of Statistics 4
Statistics Today 5
Part 1 6-11
Part 2 12-16
Part 3 17-19
Further Exploration
-Air Pollution Index
-Limitation of the AQI
-Causes of Poor Air Quality
-Indices by Location
-Stock Market Index 20-26
-Types of Indices
- Index Versions
-Uses and Importance of Air
Pollution Index and Stock Market
Index
Conclusion 27
Reflection 28

Contents
 PROJECT WORK FOR ADDITIONAL
MATHEMATHICS 2010

CURRICULUM DEVELOPMENT DIVISION

MINISTRY OF EDUCATION MALAYSIA

PROJECT WORK 4
STATISTICS
NAME: NGEH CHEE JEN

CLASS: 5 PUTIH

IC NUMBER: 931026-08-6099

SUBJECT TEACHER: MR AZMI BIN NAZAR

SEKOLAH MENENGAH KEBANGSAAN METHODIST

AYER TAWAR
INTRODUCTION

We students taking Additional Mathematics are required to carry out a project work while
we are in Form 5.This year the Curriculum Development Division, Ministry of Education has
prepared four tasks for us. We are to choose and complete only ONE task based on our area
of interest. This project can be done in groups or individually, and I gladly choose to do this
individually. Upon completion of the Additional Mathematics Project Work, we are to gain
valuable experiences and able to:

-Apply and adapt a variety of problem solving strategies to solve

routine and non-routine problems

-Experience classroom environments which are challenging,

interesting and meaningful and hence improve their thinking skills

-Experience classroom environments where knowledge and skills are

applied in meaningful ways in solving real-life problems.

-Experience classroom environments where expressing ones

mathematical thinking, reasoning and communication are highly
encouraged and expected

-Experience a classroom environment that stimulates and enhances

effective learning.

-Acquire effective mathematical communication through oral and

writing, and to use the language of mathematics to express
mathematical ideas correctly and precisely

-Enhance acquisition of mathematical knowledge and skills through

problem-solving in ways that increase interest and confidence

-Prepare ourselves for the demand of our future undertakings and in

workplace

-Realise that mathematics is an important and powerful tool in

solving real-life problems and hence develop positive attitude
towards mathematics
-Train ourselves not only to be independent learners but also to
collaborate, to cooperate, and to share knowledge in an engaging
and healthy environment

-Use technology especially the ICT appropriately and effectively

-Train ourselves to appreciate the intrinsic values of mathematics and

to become more creative and innovative

-Realize the importance and the beauty of mathematics

APPRECIATION

Completing this project has been a most wonderful and enjoyable experience. In
doing so, I have learnt a great many things about index numbers, price comparison,
graphical representations and price index. Firstly, I would like to thank my Additional
Mathematics teacher, Mr. Azmi Nazar for his guidance and also giving me useful and
important information to complete this project work. Besides, I would like to thank my
parents for their support and encouragement. Last but not least, a big THANK YOU too to all
my friends for their help and cooperation in searching for information to complete this
project work.
A BRIEF HISTORY OF STATISTICS

By the 18th century, the term "statistics" designated the systematic collection of
demographic and economic data by states. In the early 19th century, the meaning of
"statistics" broadened, then including the discipline concerned with the collection,
summary, and analysis of data. Today statistics is widely employed in government, business,
and all the sciences. Electronic computers have expedited statistical computation, and have
allowed statisticians to develop "computer-intensive" methods.

The term "mathematical statistics" designates the mathematical theories of probability and
statistical inference, which are used in statistical practice. The relation between statistics
and probability theory developed rather late, however. In the 19th century, statistics
increasingly used probability theory, whose initial results were found in the17th and 18th
centuries, particularly in the analysis of games of chance (gambling). By 1800, astronomy
used probability models and statistical theories, particularly the method of least squares,
which was invented by Legendre and Gauss. Early probability theory and statistics was
systematized and extended by Laplace; following Laplace, probability and statistics have
been in continual development. In the 19th century, social scientists used statistical
reasoning and probability models to advance the new sciences of experimental psychology
and sociology; physical scientists used statistical reasoning and probability models to
advance the new sciences of thermodynamics and statistical mechanics. The development
of statistical reasoning was closely associated with the development of inductive logic and
the scientific method.

Statistics is not a field of mathematics but an autonomous mathematical science, like

computer science or operations research. Unlike mathematics, statistics had its origins in
public administration and maintains a special concern with demography and economics.
Being concerned with the scientific method and inductive logic, statistical theory has close
association with the philosophy of science; with its emphasis on learning from data and
making best predictions, statistics has great overlap with the decision science and
microeconomics. With its concerns with data, statistics has overlap with information science
and computer science.
STATISTICS TODAY

During the 20th century, the creation of precise instruments for agricultural research, public
health concerns (epidemiology, biostatistics, etc.), industrial quality control, and economic
and social purposes (unemployment rate, econometry, etc.) necessitated substantial
advances in statistical practices. Today the use of statistics has broadened far beyond its
origins. Individuals and organizations use statistics to understand data and make informed
decisions throughout the natural and social sciences, medicine, business, and other areas.
Statistics is generally regarded not as a subfield of mathematics but rather as a distinct,
albeit allied, field. Many universities maintain separate mathematics and statistics
departments. Statistics is also taught in departments as diverse as psychology, education,
and public health.
PART 1

The prices of goods sold in shops vary from one shop to another. Shoppers tend to buy
goods which are not only reasonably priced but also give value for their money. You are
required to carry out a survey on four different items based on the following categories i.e.
food, detergent and stationery. The survey should be done in three different shops.

QUESTION

a) Collect pictures, newspaper cuttings or photos on items that you have chosen. Design a
collage to illustrate the chosen items

Answer:
(b) Record the items and their prices systematically as in Table 1.Since items maybe
differently packed, be sure to use consistent measurements for each item selected so that
comparison can be done easily and accurately.

Answer:

Item Price(RM)
Category Shop A Shop B Shop C
Food 1. Self-Raising Flour (1000g) 3.70 3.60 3.99
2. Sugar (1000g) 1.65 1.65 1.65
3. Butter (250g) 4.10 4.50 4.30
4. Eggs(Grade A) 0.32 0.33 0.35
Total Price 9.77 10.08 10.29
Detergent 1. Liquid Detergent 12.90 12.95 12.99
2. Floor Cleaner 8.90 9.00 8.99
3. Clothes Softener 6.80 6.89 6.99
4.Powder Detergent 13.90 10.99 13.99
Total Price 42.50 39.83 42.96
Stationery 1. Ballpoint Pen 1.60 1.50 1.70
2. Liquid Paper 3.70 3.60 3.99
3. Ruler 0.45 0.50 0.50
4. Eraser 1.30 1.00 1.30
Total Price 7.05 6.60 7.49
Grand Total 59.32 56.51 60.74
(c) Create at least two suitable graphical representations (the use of ICT is encouraged) to
compare and contrast the price of the items chosen.

Answer:

Food

4.5

3.5

3
Self-Raising Flour (1000g)
2.5 Sugar (1000g)
Butter (250g)
2 Eggs(Grade A)
1.5

0.5

0
Shop A Shop B Shop C

Detergent

16

14

12

10
Liquid Detergent
8 Floor Cleaner
Clothes Softener
6 Powder Detergent

0
Shop A Shop B Shop C
Stationary

4.5

3.5

2.5 Ballpoint Pen

Liquid Paper
2 Ruler
Eraser
1.5

0.5

0
Shop A Shop B Shop C
(d) Based on the graphical representation that you have constructed in Part 1(c), interpret,
discuss and draw conclusions. Comment on your findings.

Answer:

Based on the graphical representation that I have constructed in Part 1(c), it is shown that
there are large and small differences among the pries of items in each category between the
shops.

In the food category, the smallest price differences are eggs, while the highest is the price of
butter. Sugar is a controlled item so the price in all three supermarkets are the same which
is RM 1.65 per kilo. Besides food, detergent also shows a large price difference between its
items. Among them are the price of clothes softener and powder detergent. On the other
hand, stationery items don’t have any obvious price difference. The graph also show that
most of the items that are high priced comes from Shop C, while the lowest price items
come from the Shop B. The graph 1(d) will show the conclusion of the difference among the
shops based upon the shops grand total.

61

60

59
Shop A
58 Shop B
Shop C
57

56

55

54
Grand Total

Graph 1(d)
(e) Identify an item that has a large price difference among the shops. Calculate the mean
and standard deviation of that particular item. Hence, suggest and discuss possible reasons
for the price difference.

Answer:

Powder Detergent

~ 13.90+10.99+13.99
Mean, x = 3

=12.96

Standard deviation

= √ ¿/N -( ~
x)2

2 2 2
= 13.90 +10.99 +13.99 −( 12.96 )2
√ 3

=1.393

Based on my research, I found out that Shop A sold this product for RM 13.90, Shop B for
RM 10.99 and Shop C RM 13.99. Shop B obviously has the lowest price. The reason for the
price difference could be because Shop B is currently having a Mega Sale or are trying to
clear old stock to bring in new ones. Besides, Shop B could be having promotions for this
item and are giving out free samples along with the item where else Shop A and Shop C are
selling at standard price.

PART 2
Every year SMK Indah organises a carnival to raise funds for the school. This year the school
plans to install air conditioners in the school library. Last year, during the carnival, your class
made and sold butter cakes. Because of the popularity of the butter cakes, your class has
decided to carry out the same project for this year’s carnival.

QUESTION

(a) Suggest a shop from Part 1 which you would go to purchase the ingredients for the
butter cakes. State and discuss your reasons for purchasing from the shop you suggested.

Answer:

Shop A. This is because the total price of the ingredients for baking the butter cakes from
this shop is the lowest among the three shops. Therefore I can save a lot from buying the
ingredients.

(b) Complete Table 2 with the prices of the items found in the Shop/supermarket that you
have chosen

Answer:

Ingredient Quantity per cake Price in the year Price in the year
2009 (RM) 2010 (RM)
Self-raising flour 250g 0.90 0.93
Sugar 200g 0.35 0.33
Butter 250g 3.30 4.10
Eggs (Grade A) 5 eggs (300g) 1.25 1.60
Table 2

(i)Calculate the price index for each of the ingredients in Table 2 for the year 2010 based on
the year 2009
Answer:

Ingredient Quantity Price in the Price in the Price index for the
per cake year year year 2010 based on the
2009 (RM) 2010 (RM) year 2009 (I)
Self-raising 250g 0.90 0.93 103.33
flour
Sugar 200g 0.35 0.33 94.29
Butter 250g 3.30 4.10 124.24
Eggs (Grade A) 5 eggs 1.25 1.60 128.00
(300g)

1.Self-Raising Flour

0.93
I= x 100
0.90

=103.33

2.Sugar

0.33
I= x 100
0.35

=94.29

3.Butter

4.10
I= x 100
3.30

=124.24

4.Eggs (Grade A)

1.60
I= x 100
1.25

=128.00
(ii)Calculate the composite index for making a butter cake in the year 2010 based on the
year 2009.Discuss how you obtained your answers.

Answer:

To calculate the composite index, weightage is needed

(W), Weight/Total weight

Ingredient Weightage (W)

Self-Raising Flour 250 ÷ 1000 = 0.25
Sugar 200 ÷ 1000 = 0.20
Butter 250 ÷ 1000 = 0.25
Eggs (Grade A) 300 ÷ 1000 = 0.30

Composite Index

∑ IW
Í =
∑W
[ ( 0.25 x 103.33 ) + ( 0.20 x 94.29 ) + ( 0.25 x 124.24 ) +( 0.30 x 128.00 ) ]
= 1

= 114.15

(iii)In the year 2009, the butter cake was sold at RM15.00 each. Suggest a suitable selling
price for the butter cake in the year 2010.Give reasons for your answer.

Answer:

In 2009, RM 15.00

In 2010, price is

χ
x 100 =114.15 %
15

χ x 100 = 114.15 x 15

1712.25
χ=
100

χ = 17.12
Thus, the suitable price for the butter cake for the year 2010 is RM 17.12 .The increase in
price is also suitable because of the rise in the price of the ingredients.

(c)

(i)Find out from reliable source how to determine suitable capacity of air conditioner to be
installed based on the volume/size of a room.

Answer:

For common usage, air conditioner is rated according to horse power (1HP), which is
approximately 750Watts of electrical power. It is suitable for a room size 1000ft³ which is
around 27m³ of volume.

(ii)Work in group to estimate the volume of your school Library. Explain how you arrive at
your answer. Hence, determine the number of air conditioners with the appropriate
capacity required for your library.

Answer:

After discussions and some measurements, my friends and I have come to the conclusion
that the volume of our school is 11,550 cubic feet [ 30ft X 35 ft X 18ft] or 311.85³ ≈ 311.9m³
[9m X10.5m X 5.5m]. This measurement was achieved by counting the number of 3x3 ft
asbestos ceiling in our school library. The height of the library is the standardized 11 feet.
When choosing an air conditioner, usually a 1HP [horse power] equipment can reduce 9,000
BTU/hr of heat. The cooling capacity of an air conditioning system is expressed in BTU’s or
tons. One ton of cooling capacity equals 12,000 BTU’s/hour of cooling capacity and also
referring to the cooling capacity of a ton of ice. The number of air conditioner needed for
the school library:

311.9
For 311.9 m³= 27 = 11.6 ≈ 12

This means our school library needs approximately 12 units of air conditioner.
(iii)If your class intends to sponsor one air conditioner for the School library, how many
butter cakes must you sell in order to buy the air conditioner

Answer:

The cost for 1 unit of 1HP air conditioner = RM1270

Cost for a cake = 0.93 + 0.33 + 4.1 + 1.6

= RM 6.96

Selling price = RM17.12

Profit = 17.12 -6.96

= RM 10.16

1270
Number of cakes to be sold to buy 1 unit of air conditioner =
10.16

= 125
PART 3

As a committee member for the carnival, you are required to prepare an estimated budget
to organize this year’s carnival. The committee has to take into the consideration the
increase in expenditure from the previous year due to inflation. The price of food,
transportation and tents has increased by 15%. The cost of games, prizes and decorations
remains the same, whereas the cost of miscellaneous items has increase by 30%.

QUESTION

(a)Complete Table 3 based on the information given above

Answer:

Expenditure Amount in 2009(RM) Amount in 2010(RM)

Food 1200.00 1380.00
Games 500.00 500.00
Transportation 300.00 345.00
Decorations 200.00 200.00
Prizes 600.00 600.00
Tents 800.00 920.00
Miscellaneous 400.00 520.00
Table 3
(b)Calculate the composite index for the estimated budget of the carnival in the year 2010
based on the year 2009. Comment on your answer.

Answer:

Expenditure Amount in Amount in Price Weightage,

2009(RM) 2010(RM) Index, I W
Food 1200.00 1380.00 115 12
Games 500.00 500.00 100 5
Transportation 300.00 345.00 115 3
Decorations 200.00 200.00 100 2
Prizes 600.00 600.00 100 6
Tents 800.00 920.00 115 8
Miscellaneous 400.00 520.00 130 4

Composite Index

∑ IW
Í =
∑W
115 ( 12 )+ 100 ( 5 )+100 ( 2 ) +100 ( 6 ) +115 ( 8 )+ 130(4 )
= (12+5+3+2+6+ 8+4 )

4465
=
40

= 111.625

The total price for the year 2009 is RM4000 while the total price for the year 2010 is
RM4465. The total price for the year 2010 has increased by 11.625%.This is because some
items have increased in price in the year 2010.
(c)The change in the composite index for the estimate budget for the carnival from the year
2009 to the year 2010 is the same as the change from the year 2010 to the year 2011.
Determine the composite index of the budget for the year 2011 based on the year 2009.

Answer:

Composite index for the year 2009 to the year 2010=111.625

Composite index for the year 2010 to the year 2011= 111.625

2011 2010 2011

I x 100 = I x I
2009 2009 2010
2011 1
I 2009 = 111.625 x 111.625 x 100

2011
I 2009 = 124.60
FURTHER EXPLORATION

Index numbers are being used in many different daily situations, for example air pollution
index, stock market index, gold index and property index.

Obtain information from the internet or other reliable sources on the importance of two
different types of index number of your choice. Elaborate the use and the importance of
these index numbers in daily life.
Further Exploration

Index numbers are being used in many different daily situations, for example air
pollution index, stock market index, gold index and property index

Obtain information from the internet or other reliable sources on the importance of
two different types of index numbers of your choice. Elaborate the use and the importance
of this index number in daily life.

Air Pollution Index

Air pollution is the introduction of chemicals, particulate matter, or biological materials that
cause harm or discomfort to human or other living organisms, or damages the natural
environment into the atmosphere.

The atmosphere is a complex dynamic natural gaseous system that is essential to support
life on planet Earth. Stratospheric ozone depletion due to air pollution has long been
recognized as a threat to human health as well as to the Earth’s ecosystems.

The Air Quality Index (AQI) (also known as the Air Pollution Index (API) or Pollutant
Standard Index (PSI) is a number used by government agencies to characterize the quality
of the air at given location. As the AQI increased, an increasingly large percentage of the
population is likely to experience increasingly severe adverse health effects. To compute
the AQI requires an air pollutant concentration from a monitor or model. The function used
to convert from air pollutant concentration to AQI varies by pollutant, and is different in
different countries. Air quality index values are divided into ranges and each range is
assigned a descriptor and a colour code. Standardized public health advisories are
associated with each AQI range. An agency might also encourage members of the public to
take public transportation or work from home when AQI level are high.

Limitation of the AQI

Most air contaminants do not have an associated AQI. Many countries monitor ground-level
ozone, particulates, sulphur dioxide, carbon monoxide and nitrogen dioxide and calculate air
quality indices for these pollutants.

Causes of Poor Air Quality

The AQI can worsen (go up) due to lack of dilution of are emissions by fresh air. Stagnant air,
often caused by an anticyclone or temperature inversion, or other lack of winds lets air
pollution remain in a local area.
Indices by Location

South Korea

The Ministry of Environment of South Korea uses the Comprehensive Air – quality Index
(CAI) to describe the ambient air quality based on health risk of air pollution. The index aims
to help the public easily understand air quality and protect the health of people from air
pollution. The CAI has values of 0 through 500, which are divided into six categories. The
higher the CAI value, the greater the level of air pollution. Of values of the five air pollutants,
the highest is the CAI value.

CAI Description Health Implication

0 – 50 Good A level that will not impact patients suffering from
diseases related to air pollution
51 – 100 Moderate A level which may have a meagre impact on patients
in case of chronic exposure
101 – 150 Unhealthy for sensitive A level that may have harmful impacts on patients
group and members of sensitive groups
151 – 250 Unhealthy A level that may have harmful impacts on patients
and members of sensitive groups(children, aged or
weak people) and also cause the general public
unpleasant feelings
251 – 350 Very unhealthy A level which may have a serious impact on patients
and members of sensitive groups in case of acute
exposure
351 - 500 Hazardous A level which may need to take emergency measures
for patients and members sensitive groups and have
harmful impacts on the general public
Malaysia

The air quality in Malaysia is reported as the API or Air Pollution Index. Four of the index’s
pollutant components (i.e., carbon monoxide, ozone, nitrogen dioxide and sulphur dioxide)
are reported in PM10 particulate matter is reported in μg/m3

Unlike the American AQI, the index number can exceed 500. Above 500, a state of
emergency is declared in the reporting area. Usually, this means that non-essential
government services are suspended, and all ports in the affected area closed. There may
also be a prohibition on private sector commercial and industrial activities in the reporting
area excluding the food sector.

Index Values* Levels of Health Cautionary Statement

Concern
0 – 50 Good None
51 – 100 Moderate None
101 – 150 Unhealthy for People with respiratory diseases such as asthma,
sensitive groups should limit outdoor exertion
151 – 200 Unhealthy People with respiratory diseases such as asthma,
should limit outdoor exertion; everyone else,
especially the elderly and children, should limit
prolonged outdoor exertion
201 – 300 Very unhealthy People with respiratory diseases such as asthma,
should limit outdoor exertion; everyone else,
especially the elderly and children, should limit
prolonged outdoor exertion
301 – 500 Hazardous Everyone should avoid any outdoor exertion; people
with respiratory disease, such as asthma, should
remain indoors

*An AQI of PM10 corresponds to a PM10 level of 150 micrograms per cubic meter (averaged
over 24 hours)
Stock Market Index

There are a number of interesting observations that one can make from this graph:

• The MACD indicator (bottom section of graph) has just given a sell signal
as evidenced by the blue histogram bars falling below the zero line. These
signals do not occur often – the last one, a buy signal, was given in May
2003 and the sell signal before that happened in September 1999.

• The more sensitive RSI (internal relative strength) oscillator (top section of
graph) has fallen below 70, thereby giving its first sell signal since 1998. (A
buy signal was registered four years later in 2002.)

• The 20- and 40-month moving averages (middle section of graph) are still
intact, but these are lagging indicators and the turning down and crossing
over of the two lines typically only serve as final confirmation of turning
points in the index.
A stock market index is a method of measuring a section of the stock market. Many indices
are cited by news of financial services firms and are used as benchmarks to measure the
performance of portfolios such as mutual funds.

Types of indices

Stock market indices may be classed in many ways. A ‘world’ or ‘global’ stock market index
includes (typically large) companies without regard for where they are domiciled or traded.
Two examples are MSCI World and S&P Global 100.

A national index represents the performance of the stock market of a given nation-and by
proxy, reflects investor sentiment on the state of its economy. The most regularly quoted
market indices are national indices composed of the stocks of large companies listed on a
nation’s largest stock exchanges such as the American S&P500, the Japanese Nikkei 225 and
the British FTSE 100.

The concept many be extended well beyond an exchange. The Dow Jones Total Stock
Market Index as its name implies represents the sticks of nearly every publicly traded
company in the United States including all U.S stocks traded on the New York Stock
Exchange (but not ADRs) and most traded on the NASDAQ and American Stock Exchange.
Russell Investment Group added to the family of indices by launching the Russell Global
Index.

More specialised indices exist tracking the performance of specific sectors of the market.
The Morgan Stanley Biotech Index for example consists of 36 American firms in the
biotechnology industry. Other indices may track companies of a certain size, a certain type
of management, or even more specialized criteria – one index published by Linux Weekly
News tracks stocks of companies that sell products and services based on the Linux
operating environment

Index Versions

Some indices, such as the S&P 500, have multiple versions. These versions can differ based
on how the index components are weighed and on how dividends are accounted for. For
example, there are three versions of the S&P 500 index: price return, which only considers
the price of the components, total return, which accounts for dividend reinvestment and
net total return, which accounts for dividend reinvestment after the deduction of a
withholding tax. As another example, the Wilshire 4500 and Wilshire 5000 indices have five
versions each: full capitalization total return, full capitalization total return, full
capitalization price, float-adjusted total return, float adjusted price and equal weight. The
difference between the full capitalization, float-adjusted and equal weight versions is in how
index components are weighed.
Uses and importance of air pollution index and stock market index

As everyone can see, the air pollution index is used by the government to measure
the air quality index and to detect any pollutants in our country’s air. This is to ensure the air
is clean and safe for us to inhale. Besides, an early warning can be given to us if the air
pollution is too high for us to get out of our homes. This warning is given based upon
readings and interpretations of the air pollution index.

As for stock market index, it is mainly for the business entrepreneurs. This type of
index is used to determine the outcome of a stock market and also the conclusion of a stock
market. The stock market index is important because a country’s economical state
sometimes depend on it.
Conclusion

After doing some researches, answering questions, drawing graphs and some
problem solving, I realize that the usage of statistics is very important in our daily life. It is
not just widely used in markets but also in interpreting the condition of the surrounding like
the air or the water. It is used especially in conducting air-pollution or water-pollution
surveys. In conclusion, statistics is a daily life necessity. Without it, surveys cannot be
conducted, the stock market cannot be interpreted and many more. So, we should be
thankful to the people who contributed in the idea of statistics.
REFLECTION

After spending countless hours, days and night to finish this project and also sacrificing my
time in this midyear holiday, there are several things that I want to say……

In the process of completing this project, it makes me realize how important Additional
Mathematics is to everyday’s life. In addition, completing this project makes me realize how
fun it is and likable is Additional Mathematics. To those who still don’t really like this
subject, you must take your first step to love it. You must make it like your friend. Then you
will also realize how important it is in your life.

I ADDITIONAL
MATHEMATICS