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Work 4


I/C NUMBER : 931011-06-5818
 Acknowledgement..........................

 Objectives........................................

 Introduction……………………………….

 Part 1…………………………………………

 Part 2…………………………………........

 Part 3………………………………………..

 Further exploration………………….

 Reflections……………………………….

 Conclusion………………………………..

First of all, I would like to say Alhamdulillah, for giving me the

strength and health to do this project work and finish it on time.
Not forgotten to my parents for providing everything, such as
money, to buy anything that are related to this project work, their
advise, which is the most needed for this project and facilities such as
internet, books, computers and all that. 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 to my teacher, Madam Nor Anita for

guiding me throughout this project. Even I had some difficulties in
doing this task. but she taught me patiently until we knew what to do.
She tried and tried to teach me until I understand what I am supposed
to do with the project work.
Besides that, my friends who always supporting me. Even this project
individually but we are cooperated doing this project especially in
discussion and sharing ideas to ensure our task will finish completely.
Last but not least, any party which involved either directly or indirect in
completing this project work. Thank you everyone.

The aims of carrying out this project work are:

I. To apply and adapt a variety of problem-solving strategies to solve

ii. To improve thinking skills.

iii. To promote effective mathematical communication.

iv. To develop mathematical knowledge through problem solving

in a way that increases students interest and confidence.

v. To use the language of mathematics to express mathematical ideas


vi. To provide learning environment that stimulates and enhances

effective learning.

vii. To develop positive attitude towards mathematic

A Brief History Of Statistic

By the 18th century, the term " statistics" designated the collection of
demographic systematic and economic data by states. In the early
19thcentury, 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, econometric, 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 state stick departments. Statistics
is also taught in departments as diverse as psychology, education, and
public health.

Index Number

Index numbers are today one of the most widely used statistical
indicators. Generally used to indicate the state of the economy, index
numbers are aptly called µbarometers of economic activity. Index
numbers are used in comparing production, sales or changes exports
or imports over a certain period of time. The role-played by index
numbers in Indian trade and industry is impossible to ignore. It is a
very well known fact that the wage contracts of workers in our country
are tied to the cost of living index numbers.

By definition, an index number is a statistical measure designed to

show changes in a variable or a group or related variables with respect
to time, geographic location or other characteristics such as income,
profession, etc.

Characteristics of an Index Numbers

1. These are expressed as a percentage: Index number is

calculated as a ratio of the current value to a base value and
expressed as a percentage. It must be clearly understood that the
index number for the base year is always 100. An index number is
commonly referred to as an index.

2. Index numbers are specialized averages: An index number is an

average with a difference. An index number is used for purposes of
comparison in cases where the series being compared could be
expressed in different units i.e. a manufactured products index (a part
of the whole sale price index) is constructed using items like Dairy
Products, Sugar, Edible Oils, Tea and Coffee, etc. These items naturally
are expressed in different units like sugar in kg, milk in liters, etc. The
index number is obtained as a result of an average of all these items,
which are expressed in different units. On the other hand, average is a
single figure representing a group expressed in the same units.

3. Index numbers measures changes that are not directly

measurable: An index number is used for measuring the magnitude
of changes in such phenomenon, which are not capable of direct
measurement. Index numbers essentially capture the changes in the
group of related variables over a period of time. For example, if the
index of industrial production is 215.1 in 1992-93 (base year 1980-81)
it means that the industrial production in that year was up by 2.15
times compared to 1980-81. But it does not, however, mean that the
net increase in the index reflects an equivalent increase in industrial
production in all sectors of the industry. Some sectors might have
increased their production more than 2.15 times while other sectors
may have increased their production only marginally.

Uses of index numbers

1. Establishes trends
Index numbers when analyzed reveal a general trend of the
phenomenon under study. For eg. Index numbers of unemployment of
the country not only reflects the trends in the phenomenon but are
useful in determining factors leading to unemployment.

2. Helps in policy making It is widely known that the dearness

allowances paid to the employees is linked to the cost of living index,
generally the consumer price index. From time to time it is the cost of
living index, which forms the basis of many a wages agreement
between the employees union and the employer. Thus index numbers
guide policy making.

3. Determines purchasing power of the rupee Usually index numbers

are used to determine the purchasing power of the rupee. Suppose the
consumers price index for urban non-manual employees increased
from 100 in 1984 to 202 in 1992, the real purchasing power of the
rupee can be found out as follows: 100/202=0.495 It indicates that if
rupee was worth 100 paise in 1984 its purchasing power is 49.5 paise
in 1992.

4. Deflates time series data Index numbers play a vital role in adjusting
the original data to reflect reality. For example, nominal
income(income at current prices) can be transformed into real
income(reflecting the actual purchasing power) by using income
deflators. Similarly, assume that industrial production is represented in
value terms as a product of volume of production and price. If the
subsequent years industrial production were to be higher by 20% in
value, the increase may not be as a result of increase in the volume of
production as one would have it but because of increase in the price.
The inflation which has caused the increase in the series can be
eliminated by the usage of an appropriate price index and thus making
the series real.

Types of index numbers

Three are three types of principal indices. They are:

1. Price Index
The most frequently used form of index numbers is the price index. A
price index compares charges in price of edible oils. If an attempt is
being made to compare the prices of edible oils this year to the prices
of edible oils last year, it involves, firstly, a comparison of two price
situations over time and secondly, the heterogeneity of the edible oils
given the various varieties of oils. By constructing a price index
number, we are summarizing the price movements of each type of oil
in this group of edible oils into a single number called the price index.
The Whole Price Index (WPI). Consumer Price Index (CPI) are some of
the popularly used price indices.

2. Quantity Index
A quantity index measures the changes in quantity from one period to
another. If in the above example, instead of the price of edible oils, we
are interested in the quantum of production of edible oils in those
years, then we are comparing quantities in two different years or over
a period of time. It is the quantity index that needs to be constructed
here. The popular quantity index used in this country and elsewhere is
the index of industrial production (HP). The index of industrial
production measures the increase or decrease in the level of industrial
production in a given period compared to some base period.

3. Value index
The value index is a combination index. It combines price and quantity
changes to present a more spatial comparison. The value index as
such measures changes in net monetary worth. Though the value
index enables comparison of value of a commodity in a year to the
value of that commodity in a base year, it has limited use. Usually
value index is used in sales, inventories, foreign trade, etc. Its limited
use is owing to the inability of the value index to distinguish the effects
of price and quantity separately.

The prices of good sold in shops are vary from one shop to another.
Shoppers tend to buy goods which are not only reasonably priced but
also give value for their money. I had carried out a survey on four
different items based on the following categories which is food,
detergent and stationery. The survey was done in three different
shops. Informations below shows the results from my research.
Question (a)

Question (b)

Category Item Price (RM)

Mydin Embat Si comel

FOOD 1.self-raising 2.00 2.50 2.10
2.sugar 1.80 1.90 1.95
3.butter 3.50 3.60 3.60
4.eggs(grade A) 8.20 8.50 8.40
Total price 15.50 16.50 15.95
DETERGENT 1.dishwash 1.80 2.00 1.95
2.softener 3.90 4.20 4.00
3.floor cleaner 10.90 11.00 11.30
4.powder 9.50 9.50 9.60
Total price 26.10 26.70 26.85
STATIONARY 1.Eraser 0.80 0.80 0.70
2.marker 3.00 3.60 3.90
3.pencil colour 5.50 5.40 5.30
4.scissor 2.30 2.30 2.40
Total price 11.60 12.10 12.30

Grand total 53.20 55.30 55.10

(d) Based on the graphical representation that you have
constructed in Part 1(c), interpret,discuss and draw
conclusions.Comments on your findings.


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 difference are of those sugar, while the
highest is the price of eggs. Besides food, detergent also shows a large
price difference between its items. Among them is the price of liquid
dishwasher and clothes detergent. On the other hand, stationery items
doesn’t have any obvious price difference. The graph also show that
most of the items that are high priced comes from the KOOP SARJANA,
while the lowest price items come from the KIOSK PUM. the graph 1(d)
will show the conclusion of the difference among the shops based upon
the shops grand total.
(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.


Liquid Dishwasher

Mean = 18.9+17+16.5
= 17.47

Standard Deviation

= √18.9²+17²+16.5²


The large price difference of clothes detergent among the shops

maybe because of the standard of the shop. A high standard shop or
supermarket, the items sold intend to be much more expensive than a
regular shop or supermarket. Also, the price difference of the items
may also due to the quality of the item present. A better quality means
a higher price.
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


From the data in Part 1, I would go to Mydin Mall to purchase the

ingredients for the butter cakes. This is because Mydin Mall offers the
lowest price among the shops for the items I want to buy. So my class
will able to sold the butter cakes at the low price and get some profits
form the sale. Futhermore, Mydin Mall is located not far from my
school. So it is easier to my friends and I to go there.



To calculate the composite index, weight age is needed

(W), weight
Total weight

ingredient Quantity per Price in the year Price in the year

cake 2009(RM) 2010(RM)
Self-raising flour 250 g 0.90 1.00
Sugar 250 g 0.35 0.36
Butter 250 g 3.30 3.50
Eggs (Grade A) 5 eggs(300 g) 1.25 1.37

(i) Calculate Price Index.

I= P1
____ x 100

Self-raising flour Sugar

1.00 0.36
X 100 x 100
0.90 0.35

=111.11 = 102.86

Butter Eggs (Grade A)

3.50 1.37
X 100 x 100
3.30 1.25

= 106.06 = 109.60
(ii) Composite index

= (5 x 111.11) + (4 x 102.86) + (5 x 106.06) + (6 x 109.60)



= 107.74

To calculate composite index firstly use the formula of composite

index. Get the value for the formula. Lets quantity per cake be as
weight age, W. Obtain the price index from the calculation in question
(i). Then, calculate by using the calculator.

On 2009, RM 15.00
On 2010, suitable price is :

__ x 100 = 107.74%


X x 100 = 107.74 x 15
X = 1616.10

X = 16.20

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

Question (c)

(i) To determine suitable capacity of air conditioner to be

installed based on volume/ size of a room.
For common usage, air conditioner is rated according to
horse power (1HP), which is approximately 700W to 1000W
of electrical power. It is suitable for a room size 1000ft
which is around 27m of volume. If we buy an air conditioner
with 3HP, it is suitable for a room around 81m.

(ii) Estimate the volume of school library

By using a measuring tape, the dimension for the library is:

Height= 3.6 cm
Width= 9.0 m
Length=20.12 m
Volume of the room= 3.6 x 9.0 x 20.12
= 651.903

One unit of air conditioner with 3HP is for 813 マ

For 651.903 = 651.90

= 8.048

This means our school library needs 8 unit of air conditioner.

(iii) My class intends to sponsor one air conditioner for the school
library. The calculation below is to find how many butter cakes
we must sell in order to buy the air conditioner.

1 unit of 3 HP air conditioner = RM 1800

Cost for a cake = RM 6.23
Selling price = RM 16.20
Profit = RM 16.20- RM6.23
= RM 9.97

Number of cakes to buy 1 unit of air conditioner =

_____ = 180.54 = 181


As a committee member for the carnival, I am required to prepare an

estimated budget to organize this year¶s carnival. I have taken into
consideration the increases 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%.

(a) Table 3 has been completed based on the above information.

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

Food 1200.00 1380.00
Games 500.00 500.00
Transportation 300.00 345.00
Decoration 200.00 200.00
Prizes 600.00 600.00
Tents 800.00 920.00
miscellaneous 400.00 520.00

Table 3

(b)Calculation to find the composite index

Expenditure Amount in Amount in Price index, Weight age,

2009 (RM) 2010 (RM) I= 1/0 x 100 W

Food 1200.00 1380.00 115 12

Games 500.00 500.00 100 5
Transportati 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
Miscellaneo 400.00 520.00 130 4


= 115(12)+100(5)+115(3)+100(2)+100(6)+115(8)+130(4)


= 4465



The total price for the year 2010 increase by 111.625%. This is
because some price in the year 2009 increased 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. Below are the
calculation to determine the composite index of the budget for
the year 2011 based on the year 2009.

Composite index for the year 2009 to the year 2010


Composite index for the year 2010 to the year 2011

I(2011) x 100 = I(2010) x I(2011)
I(2009) I(2009) I(2010)

I(2011) =111.625 x 111.625 x 1

I(2009) 100

I(2011) =124.60


Air pollution is the introduction of chemicals, particulate matter, or

biological materials that cause harm or discomfort to humans 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 a given location. As
the AQI increases, 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 color 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 levels are high.

Limitations 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 air 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 level 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

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
meager impact on patients in
case of chronic exposure.
101-150 Unhealthy for A level that may have harmful
sensitive impacts on patients and
groups members of sensitive groups.

151-200 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 A level which may have a
unhealthy 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 of
sensitive groups and have
harmful impacts on the general


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 sulfur dioxide) are reported in ppmv but
PM10 particulate matter is reported in g/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.
CAI Description Health implication
0-50 good None

51-100 moderate None

101-150 Unhealthy for People with respiratory disease,

sensitive such as asthma should limit
groups outdoor exertion.

151-200 unhealthy People with respiratory disease,

such as asthma should avoid
outdoor exertion, everyone else
especially the elderly and
children, should limit prolonged
outdoor exertion.
201-300 Very People with respiratory disease,
unhealthy such as asthma should avoid
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
athma, should remains indoors.

A comparison of three major U.S. stock indices: the NASDAQ

Composite,Dow Jones Industrial Average, and S&P 500. All three have
the same height at March 2007. Notice the large dot-com spike on the
NASDAQ, a result of the large number of tech. companies on that

A stock market index is a method of measuring a section of the stock

market. Many indices are cited by news or 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 nation²and 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&P 500, the Japanese
Nikkei 225, and the British FTSE 100.

The concept may be extended well beyond an exchange. The Wilshire

5000 Index, the original total market index, represents the stocks 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 or
Limited Partnerships), NASDAQ and American Stock Exchange. Russell
Investment Group added to the family of indices by launching the
Russell Global Index.

More specialized indices exist tracking the performance of specific

sectors of the market. Some examples include the Wilshire US REIT
which tracks more than 80 American Real Estate Investment Trusts
and the Morgan Stanley Biotech Index which 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 ² 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 weighted
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 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 weighted



As everyone can see, the air pollution index is use by the government
to measure the quality of air index and to detect any pollutants in our
country air. This is to ensure the air is clean and safe for us it inhale.
Besides that, 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 index.

As for the 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 economical state
sometimes depend on it.

After spending countless hours, days and night to finish this project
and also sacrificing
After spending countless hours, days and night to finish this project
and also sacrificing I can say...
Additional Mathematics...
From the day I had born...
From the day I was able to holding pencil...
From the day I start learning...
From the day I heard your name...
I always thought that you will be my greatest obstacle and rival in

in my life...
But after countless of hours...
Countless of days...
Countless of nights...
After sacrificing my precious
time just for you...
Sacrificing my play Time..
Sacrificing my Chatting...
Sacrificing my Facebook...
Sacrificing my internet...
Scarifying my Anime...
Scarifying my Movie…
I realized something really important in you

I really love you…

You are my real friend…
You are my partner… Your are my soul mate…
After doing research, answering questions, drawing
graphs and some problem solving, I saw that the usage of
statistics is important in 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. Especially in conducting an air-
pollution survey. In conclusion, statistics is a daily life necessity.
Without it, surveys can be conducted, the stock market can be
interpret and many more. So, we should be thankful of the people who
contribute in the idea of statistics.