ADDITIONAL

MATHEMATICS PROJECT
WORK 2013
SELANGOR
(PROJECT 2)

NOTA PENTING
1) Dokumen ini sekadar draf ringkas untuk rujukan rakan-rakan.
Masih ada yang saya tidak sertakan iaitu contents, objectives,
foreward dan reflection.
2) Saya harap anda semua tidak bergantung sepenuhnya pada
jawapan saya. Bukan berniat untuk kedekut, tetapi saya takut
sekiranya saya melakukan kesalahan yang besar dalam jawapan
dan hal ini mampu memberi kesan kepada projek anda.

3) Sekiranya saya ada melakukan kesilapan, saya minta jasa baik

anda untuk memaklumkan kepada saya.
4) Mohon ampun atas segala kekurangan.

SMK BUKIT SENTOSA

NFMR.

INTRODUCTION (source: http://www.scribd.com/doc/33106504/Add-Math-Completetask4-2010-sample)

History of Index Number
Index numbers are meant to study the change in the effects of such factors which cannot be
measured directly. According to Bowley, Index numbers are used to measure the changes in
some quantity which we cannot observe directly. For example, 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, and which are capable of direct measurement. 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, we are not interested in comparing the prices of only one item, 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. Here
again, we have to consider all items of production and each item may have undergone a
different fractional increase (or even a decrease). How do we obtain a composite measure
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,
with a view to obtain a figure that represents the result of the change in the constitute
variables. Index numbers may be classified in terms of the variables that they are intended to
measure. In business, different groups of variables in the measurement of which index
number techniques are commonly used are (i)price, (ii) quantity, (iii) value and (iv) business
activity. Thus, we have index of wholesale prices, index of consumer prices, index of
industrial output, index of value of exports and index of business activity, etc. Here we shall
be mainly interested in index numbers of prices showing changes with respect to time,
although methods described can be applied to other cases. In general, the present level of
prices is compared with the level of prices in the past. The present period is called the current
period and some period in the past is called the base period.
Index Numbers
Index numbers are statistical measures designed to show changes in a variable or group of
related variables with respect to time, geographic location or other characteristics such as
income, profession, etc. A collection of index numbers for different years, locations, etc., is
sometimes called an index series.
Simple Index Number
A simple index number is a number that measures a relative change ina single variable with
respect to a base.
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.

PART 1
(a) Describe in brief
(i) price index,
(ii) weightage,
(iii) composite index.
Answer :
(i)

Price index :
an index number expressing the level of a group of commodity prices relative to
the level of the prices of the same commodities during an arbitrarily chosen base
period and used to indicate changes in the level of prices from one period to
another.

(ii)

Weightage :
the assignment of a quota (as of members of a legislature) to a particular
segment of the population as a special favor or concession in a proportion above
that allowable on a strictly numerical basis

(iii)

(iii) Composite index :

A grouping of equities, indexes or other factors combined in a standardized way,
providing a useful statistical measure of overall market or sector performance over
time.

(b) State four ways of weightage representations. Find the examples of the representations
using internet or any printed materials.
Answer :

Ways to represent weightage :

1) Pie chart

2) Bar graph

3) Line graph

4) Histogram

PART 2
We often hear complaints from the public about inflation. It causes an increase in the
household expenditure in a family. The household expenditure for every family is different.
a)

Complete Table 1 for your family's monthly expenditure for the year 2013.

Answer:

Monthly
salary

RM 6000

Number of
family members

Item

Average Monthly
Expenditure for the
year 2013
(to the nearest RM)

Percentage of
monthly expenses
(to the nearest %)

Food

1200

20.0

Accomodation
(Rental / Loan)

240

4.0

Transportation
(Petrol/ Loan / Bus
fare etc)

600

10.0

Clothing

240

4.0

Education

1500

25.0

Recreation

210

3.5

Utilities
(Water / Electricity /
Telephone)

210

3.5

Medication

300

5.0

Miscellaneous

1500

25.0

6000

100

TOTAL
Table 1

(b)

If we want to compare the cost of living from one year to another, we have to
calculate the price index that involves some of the items mentioned above.
(i) In order to calculate the price index of all the items above, we have to consider the
average monthly expenses of any previous year as the base year.
Select the appropriate year as the base year.
Answer:
Item

Average Monthly
Expenditure for the base
year 2008
(RM)

Food

700

Accomodation
(Rental / Loan)

200

Transportation
(Petrol/ Loan / Bus fare etc)

450

Clothing

120

Education

1000

Recreation

150

Utilities
(Water / Electricity /
Telephone)

180

Medication

200

Miscellaneous
TOTAL

1000
4000

(ii) Hence, complete Table 2 below:

Answer:
Average monthly
expenses for the year 2008
as the base year
(RM)

Average monthly
expenses for the year
2013
(RM)

Food

700

1200

Accomodation
(Rental / Loan)

200

240

Transportation
(Petrol / Loan / Bus fare etc)

450

600

Clothing

120

240

Education

1000

1500

Recreation

150

210

Utilities
(Water / Electricity / Telephone)

180

210

Item

Medication

300
200

Miscellaneous

1500
1000

TOTAL

4000
Table 2

6000

(c) ( i) Complete Table 3 based on the above information.

Item

Price indices for the year 2013

based on the year 2008

Weightage

Food

171.43

20.0

Accomodation
(Rental / Loan)

120.00

4.0

Transportation
(Petrol / Loan / Bus fare etc)

133.33

10.0

Clothing

200.00

4.0

Education

150.00

25.0

Recreation

140.00

3.5

Utilities
(Water / Electricity / Telephone)

116.67

3.5

Medication

150.00

5.0

Miscellaneous

150.00

25.0

TOTAL

1331.43

100

Table 3
Formula to calculate price index :

( ii)

Hence, calculate the composite index for the average monthly expenditure
in the year 2013 based on the selected base year.

Answer :
Formula to calculate composite index :

= (171.43 X 20) + (120 X 4) + (133.33 X 10) + (200 X 4) + (150 X 25) + (140 X 3.5) +
(116.67 X 3.5) +(150 X 5) + (150 X 25)
(20 + 4 + 10 + 4 + 25 + 3.5 + 3.5 + 5 + 25)

151.90

(d) Make a conclusion about your family's expenditure based on your findings.

Answer :
Based on the findings, I found that the average expenses for current year is higher than the
base year 2008. We spent a total of RM1200 for food in 2013 compared to only RM700 in
2008. Other expenses such as accommodation, utilities, transportation, clothing, education,
recreation, and medications also increase compared to the year 2008. This is due to the high
inflation rate in 2008. After the year 2008, daily expenses for our family had increased due to
the increasing of the prices of raw materials.

PART 3
Your family is planning to buy a new television set.
( a)

You have conducted a survey on the price of the television for two different brands
from three different shops. You would like to make a comparison between two
modes of payment, namely, cash payment and payment by installment.
Table 4 (a) shows the prices of televisions by cash payment in three different shops
whereas Table 4(b) shows the prices of televisions by instalment.
Complete Table 4 (a) and 4(b) using the data you obtained.

Answer:

Price (RM)
Brand

TS

SH

Size of
Television
(inches)

24
32
40
24
32
40

Hup
Liong
Shop
988
1788
2888
788
969
1288

Ramli
Electonics
&
Hardware
788
1599
2500
699
848
1269
Table 4(a)

Kedai
Elektrik
Chong
888
1690
2300
999
1200
1499

Mean
Price
(RM)

888.00
1693.33
562.67
828.67
1005.67
1352.00

Standard
Deviation
(RM)

81.65
1685.61
2512.02
125.78
1010.70
104.23

Price (RM)
Brand

TS

SH

Size of
Television
(inches)

24
32
40
24
32
40

Ramli
Electronics
Hup Seng
&
Hardware
1383.2
945.6
2503.2
1918.8
4043.2
3000.0
1103.2
838.8
1356.6
1017.6
1803.2
1522.8
Table 4(b)

Kedai
Elektrik
Chong
1154.4
2197.0
2990.0
1298.7
1560.0
1948.7

Mean
Price
(RM)

1161.07
2206.33
3344.40
1080.23
1311.40
1758.23

Standard
Deviation
(RM)

178.69
238.70
494.14
188.47
223.73
176.79

The mean and standard deviation of the data can be calculated using formula :

(b) Determine the brand and size of the television that you have decided to buy. Give
your reasons based on the findings from part (a) above.

Answer:
I want to buy a size 32 inch TS television. This is because there are only five members
in my family and only requires medium-sized television for our living room. I choose
this brand because I am confident of its quality as our family has long been using this
brand for other electrical appliances in our home. Although the brand TS is more
expensive than the brand SH, our family still can afford to buy it. I plan to buy from
Ramli Electronics & Hardware store because they offer 2 years of warranty. In
addition, they also offer the lowest price of televisions compared to the other two
shops.

(c) The Ministry of Domestic Trade and Consumer Affairs wishes to present the Fair Price
Shop Award for one of the above shops. If you are one of the panels for this award,
determine the shop that deserve the award. Do you consider the value of the mean and
the value of standard deviation in making your decision? Give your justifications.

Answer:
If I am one of the panel for the award, I would prefer Ramli Electronics & Hardware
shop because the mean price of all types of television for both brands is the lowest
compared to the other two shops. Standard deviation for the telivisons at the shop is
also the lowest. It shows that the prices of television offered by the Ramli Electronics
& Hardware shop is reasonable and affordable.

PART 4
(a)

Your family has a fixed monthly income. In order to buy the television, your
family needs to make some adjustment on the various types of expenditure.
[You can choose to pay by cash or by installment]
Show the average monthly expenditure that you have modified in a table.

Item

Average Monthly
Expenditure (RM)

Modified expenditure
(RM)

Food

1200

1200

Accomodation
(Rental / Loan)

240

240

Transportation
(Petrol/ Loan / Bus
fare etc)

600

500

Clothing

240

50

Education

1500

1300

Recreation

210

100

Utilities
(Water / Electricity
/ Telephone)

210

210

Medication

300

150

Miscellaneous

1500

750

Television

1500

TOTAL

6000

6000

(b)

Assuming you have just started working with a monthly salary of RM2 500. You
intend to save 10% of your salary every month.
Plan your monthly expenditure as in Table 1 above and add other items such as
savings and contributions to your parents.

Item

Average Monthly Expenditure (RM)

Food

400

Accomodation
(Rental / Loan)

300

Transportation
(Petrol/ Loan / Bus fare etc)

200

Clothing

100

Education

100

Recreation

50

Utilities
(Water / Electricity / Telephone)

100

Medication

100

Savings

250

Parents

600

Miscellaneous

300

TOTAL

2500