1. Diagram 1 is a bar chart indicating the cost of the items P, Q, R, S and T for the year 1990.

Table 1 shows
the price indices for the items.

Item Price in 1990 Price in 1995 Price Index in 1995 based on 1990
P x RM0.70 175
Q RM2.00 RM2.50 125
R RM4.00 RM5.50 y
S RM6.00 RM9.00 150
T RM2.50 z 120

(a) Find the value of x, y and z. [3 marks]

(b) Calculate the composite index for the items in the year 1995 based on the year 1990. [2 marks]

(c) The total monthly cost of the items in the year 1990 is RM456. Calculate the corresponding total
monthly cost for the year 1995. [2 marks]

(d) The cost of the items increases by 20% from the year 1995 to the year 2000. Find the composite
index for the year 2000 based on the year 1990. [3 marks]

2 Table 2 shows the price indices and percentage of usage of four items, P, Q, R and S, which are the main
ingredients in the production of a type of biscuit.
Price index for the year 1995 Percentage of use
Item
based on the year 1993 (%)
P 135 40
Q x 30
R 105 10
S 130 20
(a) Calculate
(i) the price of S in the year 1993 if its price in the year 1995 is RM37.70,
(ii) the price index of P in the year 1995 based on the year 1991 if its price index in the year 1993
based on the year 1991 is 120. [5 marks]

(b) The composite index number of the cost of biscuit production for the year 1995 based on the year
1993 is 128. Calculate
(i) the value of x,
 (ii) the price of a box of biscuit in the year 1993 if the corresponding price in the year 1995 is
RM32. [5 marks]
3 Table 3 shows the prices for the four items in the year 2004 and 2005 together with the price indices for
the year 2005 based on the year 2004 and their weightages.
Price (RM) Price index for the year
Items 2005 based on the Weightage
Year 2004 Year 2005
year 2004
A 45 54 120 4
B x 21 150 3
C 110 121 y 1
D 70 z 90 2
TABLE 3
(a) Calculate
(i) the value of x, y and z.
(ii) the composite index for these items in the year 2005 based on the year 2004. [6 marks]

(b) The expenses of the items are expected to increase by 10% from the year 2005 to the year 2006.
(i) Calculate the composite index in the year 2006 based on the year 2004.
(ii) The expenses for the items in the year 2005 is RM1350, estimate the expenses in the year
2006. [4 marks]

4 Table 4 shows the prices and the price indices for the four ingredients, P, Q, R, and S, used in making
biscuits of a particular kind. Diagram 2 is a pie chart which represents the relative amount of the
ingredients P, Q, R, and S, used in making these biscuits.

Price per kg (RM) Price index for the year

Ingredients 2004 based on the
Year 2001 Year 2004
year 2001 P
P 0.80 1.00 x Q S
o o
Q 2.00 y 140 120 60
R 0.40 0.60 150 100 o

S z 0.40 80
TABLE 4 R

(a) Find the value of x, y and z. [3 marks]

(b) (i) Calculate the composite index for the cost of making these biscuits in the year 2004 based on
the year 2001.
(ii) Hence, calculate the cost of making these biscuits in the year 2001 if the cost in the year 2004
was RM2985. [5 marks]

(c) The cost of making these biscuits is expected to increase by 50% from the year 2004 to the year
2007. Find the expected composite index for the year 2007 based on the year 2001. [2 marks]

2
5 A particular kind of cake is made by using four ingredients, P, Q, R, and S. Table 5 shows the prices of the
ingredients.

Price per kilogram (RM)

Ingredients
Year 2004 Year 2005
P 5.00 w
Q 2.50 4.00
R x y
S 4.00 4.40
TABLE 5

(a) The index number of ingredient P in the year 2005 based on the year 2004 is 120.
Calculate the value of w. [2 marks]

(b) The index number of ingredient R in the year 2005 based on the year 2004 is 125. The price per
kilogram of ingredient R in the year 2005 is RM2.00 more than its corresponding price in the year
2004.
Calculate the value of x and y. [3 marks]

(c) The composite index for the cost of making the cake in the year 2005 based on the year 2004 is
127.5.
Calculate
(i) the price of a cake in the year 2004 if its corresponding price in the year 2005 is RM30.60,
(ii) the value of m if the quantities of ingredients P, Q, R, and S used are in the ratio of 7 : 3: m : 2.
[5 marks]

ANSWER – INDEX NUMBERS

3
1 (a) (i) x = RM0.40,
(ii) y = 137.5
(iii) z = RM3.00
(b) 140.9
(c) RM642.50
(d) 169.1

2 (a) (i) RM29.00

(ii) 162
(b) (i) 125
(ii) RM25.00

3 (a) (i) x = 14, y = 110, z = 63

(ii) 122
(b) (i) 134.2
(ii) RM1485

4 (a) x = 125, y = 2.80, z = 0.50

(b) (i) 129.44
(ii) RM2306.99
(c) 194.1

5 (a) x = 6,
(b) x = 8, y = 10
(c) (i) RM24.00
(ii) m=4