CONTENTS

No. Content Page

1 Objectives 3

2 Foreword 4

3 Introduction 5

4 Part 1 6

5 Part 2 8

6 Part 3 13

7 Part 4 16

8 Reflection 18

9 References 19
OBJECTIVES
We students taking Additional Mathematics are required to carry out a project work
while we are in Form 5.This year the Curriculum Development Division, Ministry of
Education has prepared four tasks for us. We are to choose and complete only ONE
task based on our area of interest. This project can be done in groups or individually,
but each of us are expected to submit an individually written report. Upon completion
of the Additional Mathematics Project Work, we are to 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 increase interest and confidence
 Prepare ourselves for the demand of our future undertakings and in workplace
 Realise that mathematics is an important and powerful tool in solving real-life
problems and hence develop 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


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FOREWARD
First of all, I would like to thank the school and the Ministry of Education to give me
this opportunity to do this project work so that i can not only learn about add maths
but also I can understand it in a real world situation. 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, Puan Tan M.N 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 twork. Last but not least, my friends 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.

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INTRODUCTION
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 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.

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

Answer:

Percentage of
Monthly Number of Average Monthly
monthly
salary family Expenditure for the
expenses
members year 2013
(to the nearest
(to the nearest RM)
%)

 
Food 1200  20.0
Accomodation    
(Rental / Loan) 240 4.0
Transportation
(Petrol/ Loan / Bus 600 10.0 
fare etc)
Clothing 240 4.0
Education 1500 25.0

Recreation 210 3.5

Utilities 210 3.5
(Water /
Electricity /
Telephone)
RM 6000 5 Medication 300 5.0
Miscellaneous 1500 25.0
TOTAL  6000 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.
Select the appropriate year as the base year.

Answer:

Item Average Monthly Expenditure for the

base year 2008 (RM)
Food 700
Accomodation 200
(Rental / Loan)
Transportation 450
(Petrol/ Loan / Bus fare etc)
Clothing 120
Education 1000
Recreation 150
Utilities 180
(Water / Electricity / Telephone)
Medication 200
Miscellaneous 1000
TOTAL 4000

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 (ii) Hence, complete Table 2 below

Answer:
 
Average monthly expenses Average monthly
Item for the year 2008 as the base expenses for the
year (RM) year 2013 (RM)
700 1200
Food
Accomodation 200 240
(Rental / Loan)
Transportation 450 600
(Petrol / Loan / Bus fare
etc)
Clothing 120 240

Education 1000 1500

Recreation 150 210

Utilities 180 210

(Water / Electricity /
Telephone)
Medication 200 300

Miscellaneous 1000 1500

TOTAL 4000 6000

Table 2

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(c) (Complete Table 3 based on the above information.
 
Item Price indices for the year 2013 Weightage
based on the year 2008
Food 171.43 20.0

Accomodation 120.00 4.0

(Rental / Loan)
Transportation 133.33 10.0
(Petrol / Loan / Bus fare
etc)
Clothing 200.00 4.0

Education 150.00 25.0

Recreation 140.00 3.5
Utilities 116.67 3.5
(Water / Electricity /
Telephone)
Medication 150.00 5.0
Miscellaneous 150.00 25.0
TOTAL 1331.43 100
Table 3

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Formula to calculate price index :

(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

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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 instalment.
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)
Size of Ramli Mean Standard
Brand Television Hup Kedai Price Deviation
Electonics
(inches) Liong Elektrik (RM) (RM)
&
Shop Chong
Hardware
24 988 788 888 888.00 81.65
TS 32 1788 1599 1690 1693.33 1685.61
40 2888 2500 2300 562.67 2512.02
24 788 699 999 828.67 125.78
SH 32 969 848 1200 1005.67 1010.70
40 1288 1269 1499 1352.00 104.23
Table 4(a)

Price (RM)
Size of Ramli Mean Standard
Brand Television Kedai Price Deviation
Hup Electronics
(inches) Elektrik (RM) (RM)
Seng &
Chong
Hardware
24 1383.2 945.6 1154.4 1161.07 178.69
TS 32 2503.2 1918.8 2197.0 2206.33 238.70
40 4043.2 3000.0 2990.0 3344.40 494.14
24 1103.2 838.8 1298.7 1080.23 188.47
SH 32 1356.6 1017.6 1560.0 1311.40 223.73
40 1803.2 1522.8 1948.7 1758.23 176.79
Table 4(b)

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

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(b)Determine 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.

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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 instalment]
Show the average monthly expenditure that you have modified in a table.

Average Monthly
Item Expenditure (RM) Modified expenditure (RM)

Food 1200 1200

Accomodation 240 240

(Rental / Loan)
Transportation 600 500
(Petrol/ Loan / Bus fare etc)
Clothing 240 50
Education 1500 1300
Recreation 210 100
Utilities 210 210
(Water / Electricity /
Telephone)
Medication 300 150
Miscellaneous 1500 750
Television - 1500
TOTAL 6000 6000

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(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 300
(Rental / Loan)
Transportation 200
(Petrol/ Loan / Bus fare etc)
Clothing 100

Education 100

Recreation 50

Utilities 100
(Water / Electricity / Telephone)

Medication 100
Savings 250
Parents 600
Miscellaneous 300
TOTAL 2500

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REFLECTION

While I was conducting this project I have found a lot of information about index
numbers. I have learnt the sentimental uses of index numbers. Along the way I also
learned some moral values that I practiced. This project has taught me to be more
responsible on the works that are given to me which must be completed. This project
also made me feel more confidence to do work and not to give up easily when I can’t
find a solution to the particular problem. In times I also learned to be more discipline
by doing work on time and passing it on time. Finally I enjoyed the time I spent with
my friends during the school holiday to complete this project.

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REFERENCES

1. http://www.scribd.com/doc/146502584/Additonal-Mathematics-Project-
Work-2013-Selangor-Project-2
2. http://www.scribd.com/doc/92572607/Additional-Mathematics-Project-2012
3. http://www.scribd.com/doc/33106504/Add-Math-Complete-task4-2010-
sample
4. http://en.wikipedia.org/wiki/Index_(economics)
5. http://www.bumigemilang.com/?cat=239
6. http://www.melvister.com/2013/05/contoh-kerja-kursus-add-math-2013-
setiap-negeri.html
7. http://www.bumigemilang.com/?p=25162
8. Additional Mathematics Text Book

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