ADDITIONAL MATHEMATIC PROJECT WORK 2013

SELANGOR EDUCATION DEPARTMENT

KOLEJ ISLAM SULTAN ALAM SHAH,KLANG
ADDITIONAL MATHEMATICS PROJECT
WORK 2/2013

NAME:
CLASS:
I/C NUMBER:
TEACHER:

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CONTENTS

Title Page
Introduction
Foreward
(i) Price Index
(ii) Weightage
Part 1 (a) (iii) Composite Index

(b) Weightage Representation

(a) Family’s Monthly Expenditure for year 2013
Part 2 (b)(i)(ii) Calculating Price Indexes

(c)(i)(ii) Composite Index for Average Monthly

Expenditure for year 2013 Based on year 2012

a)Survey
Part 3 b)Decision

c)Justifications
a)Adjustment of Family Monthly Expenditure
Part 4
b)My Monthly Expenditure Budget

a)Outro talk
Reflection
b)Evidences of Surveying

Reference

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INTRODUCTION:
OBJECTIVES:

As a student who taking Additional Mathematics is required to carry out a project work while
we are in Form 5. This year, the Curriculum Development Division, Ministry of Education has
prepared two tasks. We are to choose and complete only ONE task based on their area of
interest. Upon completion of the Additional Mathematics Project Work, it is hoped that we will
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 classroom environments 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 increases interest and confidence;
prepare ourselves for the demands of their future undertakings and in workplace.
realise that mathematics is an important and powerful tool in solving real-life
problems and hence develope 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.
realise the importance and the beauty of mathematics.

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FOREWARD:

First of all, I would like to say Alhamdulillah, for giving me the strength and health to do this

project work. Not forgotten my parents for providing everything, such as money, to buy

anything that are related to this project work and their advise, which is the most needed for this

project. Internet, books, computers, and etc. They also supported me and encouraged me to

complete this task so that I will not procrastinate in doing it. Then I would like to thank my

teacher,Cik Nursuhailah Azmi for guiding me and my friends throughout this project. We had

some difficulties in doing this task, but she taught us patiently until we knew what to do. She

tried and tried to teach us until we understand what we supposed to do with the project

work.Last but not least, my friends from Perlis who were doing this project with me and sharing

our ideas. They were helpful that when we combined and discussed together, we had this task

done.I’m very grareful finished this project work with success. Thank you.

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PART 1:INTRODUCTION OF INDEX NUMBER

A) Describe in brief

i) Price index

A price index (plural: “price indices” or “price indexes”) is a normalized average (typically
a weighted average) of prices for a given class of goods or services in a given region, during a
given interval of time. It is a statistic designed to help to compare how these prices, taken as a
whole, differ between time periods or geographical locations.
Price indexes have several potential uses. For particularly broad indices, the index can be
said to measure the economy's price level or a cost of living. More narrow price indices can
help producers with business plans and pricing. Sometimes, they can be useful in helping to
guide investment.

History:

No clear consensus has emerged on who created the first price index. The earliest reported
research in this area came from Welsh poet Henry Rice Vaughan who examined price level
change in his 1675 book A Discourse of Coin and Coinage. Vaughan wanted to separate the
inflationary impact of the influx of precious metals brought by Spain from theNew World from
the effect due to currency debasement. Vaughan compared labor statutes from his own time to
similar statutes dating back to Edward III. These statutes set wages for certain tasks and
provided a good record of the change in wage levels. Vaughan reasoned that the market for
basic labor did not fluctuate much with time and that a basic laborers salary would probably
buy the same amount of goods in different time periods, so that a laborer's salary acted as a
basket of goods. Vaughan's analysis indicated that price levels in England had risen six to
eightfold over the preceding century.[1]

While Vaughan can be considered a forerunner of price index research, his analysis did not
actually involve calculating an index.[1] In 1707 Englishman William Fleetwood created
perhaps the first true price index. An Oxford student asked Fleetwood to help show how prices
had changed. The student stood to lose his fellowship since a fifteenth century stipulation
barred students with annual incomes over five pounds from receiving a fellowship. Fleetwood,
who already had an interest in price change, had collected a large amount of price data going
back hundreds of years. Fleetwood proposed an index consisting of averaged price relatives and
used his methods to show that the value of five pounds had changed greatly over the course of
260 years. He argued on behalf of the Oxford students and published his findings
anonymously in a volume entitled Chronicon Preciosum.

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Formal Calculation:

Given a set of goods and services, the total market value of transactions in in some period

would be

where

represents the prevailing price of in period

represents the quantity of sold in period

If, across two periods and , the same quantities of each good or service were sold, but under

different prices, then

and

would be a reasonable measure of the price of the set in one period relative to that in the other, and

would provide an index measuring relative prices overall, weighted by quantities sold.

Of course, for any practical purpose, quantities purchased are rarely if ever identical across any two

periods. As such, this is not a very practical index formula.

One might be tempted to modify the formula slightly to

This new index, however, doesn't do anything to distinguish growth or reduction in quantities sold from

price changes. To see that this is so, consider what happens if all the prices double

between and while quantities stay the same: will double. Now consider what happens if all the

quantities double between and while all the prices stay the same: will double. In either case

the change in is identical. As such, is as much a quantity index as it is a price index.Various

indices have been constructed in an attempt to compensate for this difficulty.

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ii) What is weightage?

Weightage is common word used in Asia. The meaning for weightage is a weighting
factor assigned to compensate for a perceived advantage or ⅟ weight factor or ratio; weight.
An example for its usage is: “The admission holds 80% weightage while the interview holds
20% weightage of the admission process”. Weightage also represent as the relative
importance of different items.
In a nutshell, weightage can also be said as stake.

iii) What is 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. Also known simply as a "composite".
Usually, a composite index has a large number of factors which are averaged together
to form a product representative of an overall market or sector. For example, the Nasdaq
Composite index is a market capitalization-weighted grouping of approximately 5,000
stocks listed on the Nasdaq market. These indexes are useful tools for measuring and
tracking price level changes to an entire stock market or sector. Therefore, they provide
a useful benchmark against which to measure an investor's portfolio. The goal of a well
diversified portfolio is usually to outperform the main composite indexes.

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B) State four ways of weightage representations.Find the examples of the representations

using internet or any printed materials.

1) Line Graph

The number of staffs in a company

10

0
A B C D E F
Weightage 5 6 8 4 9 3

Weightage

2) Pie Chart

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3) Percentage

4) Bar Chart

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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.
Conjecture:
First of all,I would like to make conjecture about my family expenditure that it will increasing
by year. This could be seen as the difference between this year’s average monthly expenditure
and the past years are very big. It is big as the years come as the prices of items are increasing
gradually. When the prices of items increase, the average monthly average expenditure also
increases.
For example when the price of food,entertainment and others increases, the expenditure will
also increases. This phenomenon of price increaseing will continue as time goes by.
a) In this case, I would to show my family’s monthly expenditure for the year 2013 to
observe this inflation that happen among us.

Item Average Monthly Percentage of

Expenditure for the Monthly Expenses
Year 2013 (to the (to the nearest %)
nearest RM)

Food 600 13
Accommodation 0 0
(Rental/Loan)
Transportation 1200 27
(Petrol/Loan/Bus Fare etc)

Clothing 400 9
Education 800 18
Recreation 300 7
Utilities 600 13
(Water/Electricity/Telephone)

Medication 200 4
Miscellaneous 400 9
TOTAL 4500 100
Table 1

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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.
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.
(b) (i)
In this case, I am going to select 2012 as the base year.
By selecting year 2012 as the base year, we can see the increment of price index from
year 2012 to 2013.
(ii)
Item Average Monthly Expenses Average Monthly
for the Year 2012 as the Expenses for the
Base Year (RM) Year 2013 (RM)
Food 550 600

Accommodation 0 0
(Rental/Loan)
Transportation 900 1200
(Petrol/Loan/Bus
Fare etc)

Clothing 300 400

Education 750 800

Recreation 250 300

Utilities 500 600
(Water/Electricity/
Telephone)

Medication 100 200

Miscellaneous 250 400

TOTAL 4100 4500

Table 2

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(c)(i) Price index is an example of index number which is widely used.

It tells us how the price changes over a fixed period of time.

Formula of price index as shown below:

(a) Q0 = Price of the item at the base time or year

(b) Q1 = Price of the item at specific time

We can calculate the price index of family expenditure of 2013 with base 2012 with this
formula .

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Item Price Indices for the year 2013 Based on Weightage

the Year 2012

Food 109 13
Accommodation 0 0
(Rental/Loan)
Transportation 133 27
(Petrol/Loan/Bus
Fare etc)

Clothing 133 9
Education 107 18
Recreation 120 7
Utilities 120 13
(Water/Electricity
/Telephone)

Medication 200 4

Miscellaneous 160 9

TOTAL 1082 100

Table 3

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ii) Then we need to calculate composite index for the average monthly expenditure in
the year 2013 based on the year 2012.
The formula of composite index is shown below:

Composite index = 109(13)+133(27)+133(9)+107(18)+120(7)+120(13)+200(4)+160(9)

100

= 127.71

Average Monthly Expenditure for the

year
2013(RM)
1400
1200
1000
800
600
400
200
0

Line Graph

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Blue line : 2012

Grey line: 2013

d) Conclusion:
In the nutshell , I would like to say that the composite index for the average monthly
expenditure in year 2013 based on year 2012 increases. This shows that almost all the items in
the table have increased. Nevertheless, this shows that my family needs a higher income as. As
we can observe, the case of inflation occurs as price of goods increases but the value of money
spent remains the same.The government should maintain the economical so that the people can
enjoy living in the country without corruption and economic problem involving the family
expenditure to stay alive. The government should to prevent cronyism in their life.
It can also be concluded that my family’s expenditure has increased as time passes by based
on my findings.

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PART 3:
My family decided to buy a new television set.

a) I have conducted a survey on the price of the television for two different brands
from three different shops. I would like to make a comparison between two modes
of payment, namely, cash payment by installment.

Table 4(a) shows the prices of televisions by cash payment in three different shops,
namely CBH Electricity,Indera Jaya Enterprise and Kayangan Square whereas
Table 4(b) shows the prices of televisions by installment.

Size of Price (RM) Mean Standard

Televisions Price Deviation

Brand CBH Indera Kayangan
(inches) (RM) (RM)
Electricity Jaya Square
Enterprise

24 599 580 580 586 11

Toshiba 32 899 860 880 880 20
40 1299 1280 1345 1308 33

24 599 580 580 586 11

Samsung 32 899 880 890 890 10

40 1099 1050 1075 1075 26

Table 4(a)

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Size of Price (RM) Mean Standard

Televisions Price Deviation

Brand CBH Indera Kayangan
(inches) (RM) (RM)
Electricity Jaya Square
Enterprise

24 660 588 600 616 39

Toshiba 32 960 876 949 928 46
40 1428 1416 1440 1428 12
24 660 588 600 616 39

Samsung 32 960 888 984 944 50

40 1200 1068 1152 1140 67

Table 4(b)

Calculate the mean by using the formula below:

Where ∑x = sum of data, n = number of data

To calculate the standard deviation need to use formula as shown below:

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b) Television that I want to buy.

Based on the findings from part (a) above,I decided to buy Toshiba 32 inches from
Indera Jaya Enterprise by using the cashment payment method.

From the data above, we can see that the price of the television that I have chosen which
is RM 860 is below the mean price. This shows that the price is cheaper than the
average price for that kind of television. This gives me advantage and chance to save
some money. Apart from that, the price is affordable accordance to my family average
household expenditure. The price also suits with my budget so I can achieve my budget
hopefully with success and great.
Other than that, the standard deviation for that television brand, Toshiba 32 inches is
RM 20 which means the data point are spread out over a large range of values is not so
high. A high standard deviation value means that the average data value is higher which
will result in insensibility for the consumers to buy. The television Toshiba 32 inches
has reasonable price as the standard deviation is not too high. So,that’s why I choose
this television as my decision to have this entertainment.So that I can enjoy my life!

c) The Ministry of Domestic Trade and Consumer Affairs wishes to present the Fair
Price Shop Award for the shops above.I am one of the panels for this award.

Based on my findings,the shop that deserves this award is Indera Jaya Enterprise.By
considering the value of the mean and the value of standard deviation,here are my justifications.
Indera Jaya Enterprise offers prices of television for both brands which below the mean price
which the average market price.This shows that Indera Jaya Enterprise is able to offer lower
prices for the consumers compared to other shops.Hence,this will benefit the consumers
especially for those who come from a low income family. It can be easily to make them become
easier
The data of standard deviation for prices of television in Indera Jaya Enterprise is
acceptable and can be determined as the standard deviation values are not too high.This shows
that the data does not have higher values by both means of payment.So that,we can afford this
things for our useful life.

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PART 4:

a) My family has a fixed monthly income. In order to buy the television, my family needs
to make some adjustment on the various types of expenditure. Here is the revised
monthly expenditure.
Item Average Monthly
Expenditure for
the Year 2013 (to
the nearest RM)
Food 600
Accommodation 0
(Rental/Loan)
Transportation 1200
(Petrol/Loan/Bus Fare etc)

Clothing 400
Education 800
Recreation 300
Utilities 600
(Water/Electricity/Telephone)

Medication 100
Miscellaneous 200
Savings 300
TOTAL 4500

So,I choose to pay by cash because my family’s savings is RM 300 per month so that I’ll
be able to buy the television Toshiba 32 inches from Indera Jaya Enterprise. So, I need
to save the money to RM 860 to make the payment.Then, I need to save money until 3
months so I will achieve RM 900 totally. Then I’ll buy the television with cash payment
method.The balance should be RM 40 left and I can save in the savings for the future event.

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b) Assuming that I have just started working with a monthly salary of RM2500, I intend
to save 10% of my salary every month. Besides, I also plan to contribute some money
to my parents monthly.

Item Average Monthly

Expenditure for
the Year 2013 (to
the nearest RM)
Food 400
Accommodation 250
(Rental/Loan)
Transportation 500
(Petrol/Loan/Bus Fare etc)

Clothing 150
Education 0
Recreation 150
Utilities 300
(Water/Electricity/Telephone)

Medication 100
Miscellaneous 100
Savings 250
Contributions to parents 300
TOTAL 2500
My monthly Expenditure Budget

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FURTHER EXPLORATION
For the further exploration,I would like to explore about the price of laptops in the
worldwide so that I can manage the survey very well then I can choose which is the better
laptops can be worthly to be buy.

Brands Type Price(RM)

Aspire V5-431P 1599
Aspire V5-471G 1899
Acer
Aspire V3-471 1399
Satellite L850 2149
Satellite C800 1399
Toshiba
Satellite L840 1999
M14x 2999

M17x 4499
Alienware
M18x 5699

The price of laptops on the worldwide nowadays

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The price of laptops in worldwide

6000

5000

4000

3000

2000

1000
0
Cheap Regular Expensive
Acer 1399 1599 1899
Toshiba 1399 1999 2149
Alienware 2999 4499 5699

Acer Toshiba Alienware

Bar Chart

Conclusion:

As a conclude, what I can say that index number is widely used in our daily lives. Price
index, composite index, weightage, mean and standard deviation are important for all of us
to calculate and compare prices when making a decision to buy something.
This can also be a method to help us to be clever when using money from our salary and
prevents overspending on items that are actually cheaper than first thought. If we are good
in using index number, it will help us to choose the right item from the right brand at the
right price. Sometimes,human thinks clumsy and hard to make decision and now
with learning of price index calculation and comparising the item what we want to buy so
we can make the best decision and wisely to use in our daily lives.
When,we think this just a ‘rubbish’ so we cannot manage our monthly expenditure as the
example wisely.So,think positively,be relax and cool and try to make awesome planning in
our lives. Regards.

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REFLECTION:

From conducting the project, a lot of information that I found.. I have learnt that money is
very important in our daily life hence agreeing with the saying, “money is not everything
but everything is money”. Apart from that, money is so vital for us to ensure the
sustainability of our normal life because without money, many things that we want to do
cannot be done.Then, I also learned the uses of index number in our life.
Some of the moral values that I practiced during this project are patience, creative and
innovative.This project also made me felt more confident to the works and not to give up
easily when we could not find the solution for the questions.I also learned to be
more discipline because discipline is very important in our life.Without it,we would be just
an irresponsible person and no useful for our lovable country,Malaysia.
To conduct a survey on the prices of the television indeed spent a lot of time and energy.
Without being patient, the survey might not have been conducted. Other than that,
my creativity is developed as I need to do some calculations on the data and to represent it.
Besides, I also gain the ability to innovate as I needed to do some modifications on the data
in certain circumstances.Without it, how can we be an intelligent person can be respected
as students in Malaysia. We can spread the knowledge to each other so the friendship with
be tighten and I can enjoy with my friends.

Last but not least, we need to do something that useful for our country so that our country
can be more relevant to worldwide that our country can achieve more successful project in
worldwide and be the well-known country as ‘Country Success or Great’

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EVIDENCES OF SURVEYING PLACE:

Kayangan Square(The Store),Kangar

CBH Electricity,Kangar

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REFERENCE:

: http://en.wikipedia.org/wiki/Price_index

: http://www.investopedia.com/terms/c/compositeindex.asp
: http://www.bumigemilang.com
: http://www.scribd.com/umair_pearl
: http://www.slidshare.com
: http://www.facebook.com
: http://www.kisas.org

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