Index Number In Our Daily Life

Name : Muhammad Afiq Naim Bin Abdullah Class : 5 Alfa I/C no : 951208-01-5871 Teacher : En. Alias Bin Md Shah

The objectives of carry out the project work are: -To apply and adapt variety of problem- solving strategies to solve problems. -To improve thinking skills. -To promote effective mathematical communication. -To develop mathematical knowledge through problem solving in a way that increases students interest and confidence. -To use the language of mathematics to express mathematical ideas precisely. -To provide learning environment that stimulates and enhances effective learning. -To develop positive attitude towards mathematics.

. Finally .First of all. thank you to my friends who shared their ideas with me to complete the project work successfully. Not forgetting my parents for providing money to buy anything related to this project work. Other than that. I would to say thank you to our additional mathematics teacher Mr Alias Bin Md Shah for guiding me throughout this project. I would like to say Alhamdulillah to Allah for giving me strength and good health condition to do the project work. They also supported me and encouraged me to complete the project work. He helps me a lot especially when I facing a problem in this project work.

Title Foreword Content Introduction Page Part 1 Part 2 Further Exploration .

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. Here again. ³Index numbers are used to measure the changes in some quantity which we cannot observe directly´. Index numbers are commonly used statistical device for measuring the combined fluctuations in a group related variables. If we wish to compare the price level of consumer items today with that prevalent ten years ago. changes in business activity in a country are not capable of direct measurement but it is possible to study relative changes in business activity by studying the variations in the values of some such factors which affect business activity. we are not interested in comparing the prices of only one item. and which are capable of direct measurement. According to Bowley. with a view to obtain a figure that represents the ‘net’ result of the change in the constitute variables. How do we obtain a composite measure. we have to consider all items of production and each item may have undergone a different fractional increase (or even a decrease).Index numbers are meant to study the change in the effects of such factors which cannot be measured directly. For example. but in comparing some sort of average price levels. We may wish to compare the present agricultural production or industrial production with that at the time of independence. This composite measure is provided by index numbers which may be defined as advice for combining the variations that have come in group of related variables over a period of time.

the present level of prices is compared with the level of prices in the past. index of value of exports and index of business activity. index of industrial output. (iii) value and (iv) business activity. Composite Index Number : A composite index number is a number that measures an average relative changes in a group of relative variables with respect to a base. In general.Index numbers may be classified in terms of the variables that they are intended to measure. locations. different groups of variables in the measurement of which index number techniques are commonly used are (i)price. is sometimes called an index series. geographic location or other characteristics such as income. Here we shall be mainly interested in index numbers of prices showing changes with respect to time .. we have index of wholesale prices. although methods described can be applied to other cases. etc. index of consumer prices. Index Numbers: Index numbers are statistical measures designed to show changes in a variable or group of related variables with respect to time. profession. . etc. A collection of index numbers for different years. etc. Simple Index Number : A simple index number is a number that measures a relative change in a single variable with respect to a base. In business. Thus. The present period is called the current period and some period in the past is called the base period. (ii) quantity.

(e) Identify an item that has a large price difference among the shops. Since items maybe differently packed. You are required to carry out a survey on four different items based on different categories. (b) Record the items and their prices systematically in a table. The survey should be done in three different shops. (a) Collect pictures. Design a collage to illustrate the chosen items. (d) Based on the graphical in (c ) . Shoppers tend to buy goods which are not only reasonably priced but also give value for their money.The prices of goods sold in shops vary from one shop to another. Calculate the mean and standard deviation of that particular item. be sure to use consistent measurements for each item selected so that comparison can be done easily and accurately. . (c) Create a suitable graphical representations to compare and contrast the price of the items chosen. Interpret and discuss your findings. Hence. Suggest and discuss possible reasons for the price difference. newspaper cuttings or photos on items that you have chosen.

(a) .

Item Price(RM) Shop A Shop B Shop C 1.Butter(250g) 4.00 Total Price 16.50 3.50 5.60 15.90 4.70 1.80 4.60 1.00 4.70 5.70 .B.00 2. Self-Raising Flour(1000g) 2.Sugar(1000g) 3.Eggs(Grade A) 1 Dozen 4.90 3.30 5.60 14.

(c ) .

Butter. . Eggs. there is small difference in the price of sugar only but the price difference between Self-Raising Flour. The graph 1(D) will show the conclusion of the difference among the shops based upon the shops total price.(D) Based on the graphical representations that I have construct in 1(c).

The expensive Eggs maybe have been cleaned through a certain processes and the higher price means a higher quality. The price difference of the Eggs is due to the standard of the shop and the type of company that supply the Eggs although the Eggs have same grade. .(E) The item that has a large price difference among the shops is Eggs.

Every year SMK Tun Abdul Razak organizes a carnival to raise funds for the school. Your class has decided to carry out the same project for this year’s carnival. Because of the popularity of the cakes . the cakes was sold at RM 12. (E) in the year 2011. Suggest a suitable selling price for the cakes in the year 2012. price in year before and price this year. (D) Calculate the composite index for making a cake in the year 2012 based on the year 2011. Give reasons for your answer. (A) Suggest a shop from part 1 which you would go to purchase the ingredients for the cakes. (B) Construct a table which four main ingredients that you use with the quantity .00 each. State and discuss your reasons for purchasing from the shop you suggested. Last year . Your class made and sold a cakes. (C ) Calculate the price index for each of the ingredients in table in (B) for the year 2012 based on the year 2011. . during the carnival . Discuss your findings.

30 0.20 0.85 2012(RM) 0.30 4.40 0.85 0.36 4.30 4.90 Sugar Butter Eggs 200 g 250 g 5 Eggs(300g) 0.30 0.42 105.90 0.88 120 102.40 0. (B) Ingredients Quantity Price in the year Price in the year 2011(RM) Self-Raising Flour 250 g 0.20 0.38 105 .(A) The shop that I would go to purchase the Ingredients is Shop C because the total price of shop C is the lowest between the other shop.42 (C ) Ingredients Quantity Self-Raising 250 g Flour Sugar Butter Eggs 200g 250 g 5 Eggs(300g) Price in the Price in the Price index for the year year 2011(RM) year 2012(RM) 2012 based on the year 2011(I) 0.36 4.

The increasing in the index number of the ingredients is mainly due to the increasing price of the petroleum every year. .(D) Ingredients Weightage (W) Self-Raising Flour Sugar Butter Eggs 250/1000 = 1/4 200/1000 = 1/5 250/250 = 1 300/720= 5/12 The composite index of the ingredients used for making a cake is 105.32 .

64 . .(E) The most suitable price of the cake in the year 2012 is RM 12.00 in the year 2011. The price of the cake need to be increased due to the rise of the ingredients. The cake was sold at the price of RM 12.

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an increasingly large percentage of the population is likely to experience increasingly severe adverse health effects. To compute the AQI . 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.Further Exploration Index numbers are being used in many different daily situations. As the AQI increases. Obtain information from the internet or other reliable sources on the importance of two different types of index number of your choice. 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 a given location. or biological materials that cause harm or discomfort to humans or other living organisms. stock market index . Air Pollution Index Air pollution is the introduction of chemicals. 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. for example air pollution index. Elaborate the use and the importance of these index numbers in daily life. particulate matter. gold index and property index .

. the greater the level of air pollution. The higher the CAI value. the highest is the CAI value. and each range is assigned a descriptor and a color code. The index aims to help the public easily understand air quality level and protect the health of people from air pollution. sulphur dioxide. The function used to convert from air pollutant concentration to AQI varies by pollutant. particulates. An agency might also encourage members of the public to take public transportation or work from home when AQI levels are high. which are divided into six categories.requires an air pollutant concentration from a monitor or model . Air quality index values are divided into ranges. . Stagnant air. Standardized public health advisories are associated with each AQI range. Many countries monitor ground-level ozone. or other lack of winds lets air pollution remain in a local area . and is different in different countries. 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. often caused byan anticyclone or temperature inversion. Limitations of the AQI Most air contaminants do not have an associated AQI. Causes of Poor Air Quality The AQI can worsen (go up) due to lack of dilution of air emissions by fresh air.The CAI has values of 0 through 500.Of value sof the five air pollutants. carbon monoxide and nitrogen dioxide and calculateair quality indices for these pollutants. .

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Other indices may track companies of a certain size.The concept may be extended well beyond an exchange. . total return. stocks traded on the New York Stock Exchange (but not ADRs) and most traded on the NASDAQ and American Stock Exchange. have multiple versions. and equal weight. there are three versions of the S&P500 index : price return. including all U. and equal weight versions is in how index components are weighted. As another example. The Dow ones Total Stock Market Index. full capitalization price. which only considers the price of the components. Index versions Some indices. The difference between the full capitalization. for example. floatadjusted. the Wilshire 4500 and Wilshire 5000 indices have five versions each : full capitalization total return. which accounts for dividen investment. such as the S&P 500. a certain type of management. which accounts for dividen investment after the deduction of a withholding tax. float-adjusted total return.S. and net total return. as its name implies . More specialised indices exist tracking the performance of specific sectors of the market. For example. The Morgan Stanley Biotech Index. 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 . consists of 36 American firms in the biotechnology industry. represents the stocks of nearly every publicly traded company in the United States. Russell Investment Group added to the family of indices by launching the Russell Global Index . [1] These versions can differ based on how the index components are weighted and on how dividends are accounted for. floatadjusted price.

an early warning can be given to us if the air pollution is to high for us to get out of our homes. As for the stock market index. This warning is given based upon readings and interpretations of the air pollution 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 acountry’s economical state sometimes depend on it.Uses and importance of air pollution index and stock market index As everyone can see . This is to ensure the air is clean and safe for us to inhale. Besides that . the air pollution index is use by the government to measure the air quality index and to detect any pollutants in our country’s air .

statistics is a daily life important. So .we should be thankful of the people who contribute in the idea of statistics. I saw that the usage of index number is important in daily life. answering questions.Conclusion After doing research. . Especially in conducting an air-pollution survey. In conclusion. surveys can’t be conducted. It is not just widely used in markets but also in interpreting the condition of the surrounding like the air or the water. drawing graphs and some problem solving. the stock market can’t be interpret and many more. Without it.