Form 2

No

Item of
expenditure R1

Expenditure of the year 2009

R2

R3

R4

600

700

650

2. House rental 550

650

3. Transportatio 400
n
4. Education 250

1.

Food

R5

R6

R7

R8

1000 800

700

950

500

800

750

700

500

450

400

600

300

200

100

260

R9

R10

Mean

1100 900

600

800

850

500

300

450

605

500

550

650

450

350

485

150

300

400

250

140

235

5. Entertainmen 250 300

500
550
350
400
450 600
200 350 395
t
Total
2050 2450 2300 2850 2760 2450 3100 3250 2100 1890 2520

No

Item of
expenditure R1

Expenditure of the year 2011

R4
R5
R6
R7
R8
R9

R2
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editR3Master subtitle style

1.

Food

R10

Mean

750

850

730

1250 920

850

1000 1320 1070 950

969

2. House rental 600

700

650

850

800

750

950

600

350

500

675

3. Transportatio 500
n
4. Education 290
5. Entertainmen 320
t
Total
2470

650

550

450

750

600

600

700

550

400

575

320
350

250
520

130
600

300
450

190
500

320
500

430
750

280
230

170
400

268
462

7/29/12

2850 2720 3150 3280 2770 3400 3630 2380 2170 2882

Form 3
No

Item of expenditure

Food

800

969

House rental

605

675

Transportation

485

575

Education

235

268

Entertainment

395

462

Total

2520

2948

7/29/12

Average expenditure Average expenditure

year 2009 (RM)
year 2011 (RM)

Answers:
Activity 2
a)
No.

Item of expenditure

Food

House rental

Transportation

Education

Entertainment

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Percentage of increase in expenditure in

2011 based on 2009
969 x100%
800
= 121.13%
= increased 21.13%
675 x100%
605
= 111.57%
= increased 11.57%
575 x100%
485
= 118.55%
= increased 18.55%
268 x100%
235
= 114.04%
= increased 14.04%
462 x100%
395
= 116.96%
= increase 16.96%

b)
No.

Item of
expenditure

Average
Average
Price index, I
expenditure year expenditure year
2009
2011
800
968
969 x100%
800
= 121.13
605
675
675 x100%
605
= 111.57
485
575
575 x100%
485
= 118.55

Food

House rental

Transportation

Education

235

268

Entertainment

395

462

C) For year
2009,
No. Item of
expenditure
Food
1

House rental

Transportation

Education

Entertainment

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Percentage of expenditure
8000 x100%
25200
=31.74%
6050 x100%
25200
= 24.00%
4850 x100%
25200
=19.25%
2350 x100%
25200
=9.33%
3950 x100%
25200
=15.67%

268 x100%
235
= 114.04
462 x100%
395
= 116.96

Weightage
3

7/29/12

d)
Items

Price index, I

Weightage, W

Food

121.13

House rental

111.57

Transportation

118.55

Education

114.04

Entertainment

116.96

Composite index for the year 2011 based on year 2009

(121.13 x 3) + (111.57 x 2) + (118.55 x 2) + (114.04 x 1) + (116.96 x

=2)

1171.69

= 10
=
117.196
= 117.20
7/29/12

3+2+4+1

I forgot which question is this

sorry
Answers:
a)
No.

Item of
expenditure

Average monthly
Average monthly
Expenditure
expenditure in year expenditure in year index of each
2009
2013
item in year
2013 based
2009
800
968x120%
1161.6 x100%
=1161.6
800
= 145.2
605
675x120%
810 x100%
=810
605
= 133.88
485
575x120%
690 x100%
=690
485
= 142.27

Food

House rental

Transportation

Education

235

268x120%
=321.6

Entertainment

395

462x120%
=554.4

7/29/12

321.6 x100%
235
= 136.85
554.4x100%
395
= 140.35

b) (i)
+17.2%

Year
2009

Year
2011

+20%

Year
2013

The expenses of each item increased by 20% from the year

2011 to the year 2013. Therefore, the composite index for the
year 2013 based on the year 2011 is 120. Hence, the
composite index for the year 2013 based on year 2011

_
120
200 x I

2011

120

= 100

x 117.2

= 140.64

b) (ii)
Composite index of expenditure for the year 2013 based on year 2009
(145.2 x 3) + (133.88 x 2) + (142.27 x 2) + (136.85 x 1) + (140.35 x

=2)
=

1405.45
10

= 140.545

= 140.55
7/29/12

3+2+4+1

d)Composite index of expenditure for the year 2013 based on year 2009
= 140.55
Composite index of expenditure for the year 2013 based on year 2009 after
reduction

=
=

(127.20 x 3) + (126.92 x 2) + (129.89 x 2) + ( 126.59 x 1) + (126.04 x

2)
3+2+4+1
127.389
10

= 127.389

= 127.39
Difference = 140.55 127.39 = 13.16
The composite index of expenditure in the year
2013 based on year 2009 after reduction in
expenditure of some items showed a decrease of
13.16

7/29/12

7/29/12