# Sekolah Menengah Teknik Kuantan

NAME : FORM : I/C NO.: TEACHER’S NAME :

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CONTENT
Appreciation Introduction Part 1  Task 1 Part 2  Task 2 Part 3  Task 3 Conclusion

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APPRECIATIO N
After weeks of struggle and hard work to complete assignment given to us by our teacher, Sir Ching . I finally did it within 2 weeks with satisfaction and senses of success because I have understood more deeply about the interest and investment more than before. I have to be grateful and thankful to all parties who have helped me in the process of completing my assignment. It was a great experience for me as I have learnt to be more independent and to work as group. For this, I would like to take this opportunity to express my thankfulness once again to all parties concerned. Firstly, I would like to thanks my Additional Mathematics’ teacher, Sir Ching for patiently explained to us the proper and precise way to complete this assignment. With his help and guidance, many problems I have encountered had been solved. Beside that, I would like to thanks my parents for all their support and encouragement they have given to me. In addition, my parents had given me guidance on the methods to account for investment which have greatly enhanced my knowledge on particular area.

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Last but not least, I would like to express my thankfulness to my cousin and friends, who have patiently explained to me and did this project with me in group.

INTRODUCTIO N TO INDEX NUMBERS
An index number is an economic data figure reflecting price or quantity compared with a standard or base value. The base usually equals 100 and the index number is usually expressed as 100 times the ratio to the base value. For example, if a commodity costs twice as much in 1970 as it did in 1960, its index number would be 200 relative to 1960. Index numbers are used especially to compare business activity, the cost of living, and employment. They enable economists to reduce unwieldy business data into easily understood terms. In economics, index numbers generally are time series summarising movements in a group of related variables. In some cases, however, index numbers may compare geographic areas at a point in time. An example is a country's purchasing power parity. The best-known index
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number is the consumer price index, which measures changes in retail prices paid by consumers. In addition, a cost-of-living index (COLI) is a price index number that measures relative cost of living over time. In contrast to a COLI based on the true but unknown utility function, a superlative index number is an index number that can be calculated. Thus, superlative index numbers are used to provide a fairly close approximation to the underlying costof-living index number in a wide range of circumstances. There is a substantial body of economic analysis concerning the construction of index numbers, desirable properties of index numbers and the relationship between index numbers and economic theory.

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Part 1

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The prices of goods sold in shops very from one shop to another. Shoppers tend to buy goods which are not only reasonably priced but also give value for their money. (a) Collect pictures, newspaper cuttings or photos on items that you have chosen. Design a collage to illustrate the chosen items.

FOOD

FLOUR

BUTTER

SUGAR
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DETERGENT

SOAP

CLOROX

SOAP POWDER

FABRIC SOFTENER

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STATIONERY

PENCIL

RUBBER

RULER

PEN

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

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Table 1

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CATEGORY

ITEM SHOP A 1. Wheat Flour

PRICE (RM) SHOP B SHOP C

FOOD 2. Sugar 3. Butter 4. Eggs Total price 1. Soap DETERGENT 2. Clorox 3. Soap Powder 4. Fabric Softener Total price 1. Pencil STATIONERY 2. Rubber 3. Ruler 4. Pen Total price GRAND TOTAL (c) Create at least two suitable graphical representations ( the use of ICT is encouraged) to compare and contrast the prices of the items chosen.
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(d) Based on the graphical representations that you have constructed in Part 1(c), interpret, discuss and draw conclusions. Comments on your findings. (e) Identify an item that has a large price difference among the shops. Calculate the mean and the standard deviation of that particular item. Hence, suggest and discuss possible reasons for the price difference.

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PART 2

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Every year SMK Indah organizes 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 butter cakes, your class has decided to carry out the same project this year’s carnival. (a) Suggest a shop from Part 1 from which you would go to purchase the ingredients for the butter cakes. State and discuss your reasons for purchasing from the shop you suggested. (b) Complete Table 2 with the prices of the items found in the shop/supermarket that you have chosen.

INGREDIENT

QUALITY PER CAKE
250 g 200 g 250 g 5 eggs (300 g)

PRICE IN THE YEAR 2009 (RM)
0.90 0.35 3.30 1.25

PRICE IN THE YEAR 2010 (RM)
2.25 0.70 8.25 3.75

Self-raising flour Sugar Butter Eggs (Grade A)

Table 2
i. ii.

iii. (c)

Calculate the price index for each of the ingredients in Table 2 for the year 2010 based on the year 2009. Calculate the composite index for making a butter cake in the year 2010 based on the year 2009. Discuss how you obtained your answers. In the year 2009, the butter cake was sold at RM15.00 each. Give reasons for your answer.

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i.
ii.

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Find out from reliable sources how to determine suitable capacity of air-conditioner to be installed based on volume/size of a room. Work in groups 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. If your class intends to sponsor one air conditioner for the school library, how many butter cakes must your class sell in order to buy the air conditioner ?

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PART 3

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As a committee member for the carnival, you are required to prepare an estimated budget to organise this year’s carnival. The committee has to take into 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, prized and decorations remains the same, whereas the cost of miscellaneous items has increased by 30%. (a) Complete Table 3 based on the information given above.

EXPENDITURE
Food Games Transportation Decorations Prizes Tents Miscellaneous

AMOUNT IN 2009 (RM) 1200.00 500.00 300.00 200.00 600.00 800.00 400.00

AMOUNT IN 2010 (RM) 1380.00 500.00 345.00 200.00 600.00 920.00 520.00

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. (c) The change in the composite index for the estimated budget for the
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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.

FURTHER EXPLORATION
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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 these index numbers in daily life situations.

Reflection
While you were conducting the project, what have you learnt? What moral values did you practice? Represent your opinions or feelings creatively through usage of symbols, illustrations, drawings, or even in a song.

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