1. Appreciation
Firstly, I would like to give a big thanks to my parents for providing
everything, such as money, to buy anything that are related to this project work,
their advice and support. Then, I want to thank my teacher; Pn. Cikgu for teaching
me Additional Mathematics form 5 and guiding me throughout this project.
Last but not least, my friends who were doing this project with me and
sharing our ideas and knowledge. They were helping each other so we can
complete our project without any problems.

2. SEKOLAH MENENGAH ALAM MEGAH SEKSYEN 27
SHAH ALAM ,SELANGOR
NAME: ANIS SYAHIRAH BT. AB KAHAR
FORM: 5 SCIENCE 2
I/C NO: 960104-10-5826
TEACHER: PUAN HASNAH BT.

3. INTRODUCTION
First and foremost, I would like to thank to my Additional Mathematic teacher,
Pn. Hasnah as she gives us important guidance and commitment during this
project work.She has been a very supportive figure throughout this whole project.
I also would like to thank to all my friends for helping me and always supporting
me to complete this project.They have done a great job at surveying various
shops and sharing information with other people including me.Without them this
project cannot be done for this two weeks.
For their strong support, I would like to express my gratitude to my beloved
parents.Also for supplying the equipments and money needed to complete this
project.They have always been by my side and I hope they will still be there in the
future.
Last but not least, I would also like to thank all the nice shopkeepers, staffs and
citizens for helping me collect the much needed data and statistics for this.Not
forgetting to other people who were involved directly or indirectly towards
making this project a reality.
I really appreciate all the help I’ve got.Again, thank you very much!

4. OBJECTIVES
The aims for carrying out this project work are ;
1. To apply and adapt a variety of problemsolving strategies to solve
problems.
2. To improves thinking skills.
3. To promote effective mathematical communication.
4. To developed mathematical knowledge through problem solving in a way
that increases student’s interest and confidence.
5. To use the language of mathematics to express mathematical ideas
precisely.
6. To provide learning environment that stimulates and enhances effective
learning.
7. To develop positive attitudes towards mathematics.

6. Item Average Monthly Expenditure for Percentage of monthly
expenses
(to the nearest %)the year 2013 (to the nearest RM)
Food RM500 7.18%
Accomodation
(Rental / Loan)
RM1500 21.54%
Transportation
(Petrol / Loan/ Bus fare etc) RM2480
35.61%
Clothing RM300 4.31%
Education RM680 9.76%
Recreation RM300 4.31%
Utilities
(Water / Electricity /
Telephone)
RM605 8.69%
Medication RM200 2.87%
Miscellaneous RM400 5.74%
TOTAL RM6965 100.1%

7. Item Average Monthly Expenditure for
Average monthly expenses for
the year 2013
(RM)
the year 2013 (to the nearest RM)
Food RM450
Accomodation
(Rental / Loan)
RM1500
Transportation
(Petrol / Loan/ Bus fare etc)
RM2480
Clothing RM200
Education RM380
Recreation RM200
Utilities
(Water / Electricity /
Telephone)
RM605
Medication RM200
Miscellaneous RM300
TOTAL RM6315

8. Item Average Monthly Expenditure for Weightage
the year 2013 (to the nearest RM)
Food RM111.11
Accomodation
(Rental / Loan) RM100
Transportation
(Petrol / Loan/ Bus fare etc) RM100
Clothing RM150
Education RM178.95
Recreation RM150
Utilities
(Water / Electricity /
Telephone)
RM100
Medication RM100
Miscellaneous RM133.33
TOTAL RM1123.39

9. 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´. For example, changes in business activity in a country are not capable of
direct measurement but it is possible to study relative changes in business
activity by studying the variations in the values of some such factors which affect
business activity, and which are capable of direct measurement.
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 a
device 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 µnet¶ 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.

10. PART 1(a)
Desribe in brief:
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.
WEIGHTAGE:
Composite Index Number:
:A composite index number is a number that measures an average relative
changes in agroup of relative variables with respect to a base.

11. PART 1 (b)
State four ways of weightage representations.Find the examples of
the representations using internet or any printed materials:

12. PART 2
We often hear complaints from the public about inflation.It causes an increase
in the hosehold expenditure in a family.
The household expenditure for every family is different.
a) Complete Table 1 for your family’s monthly expenditure for the year
2013.
Item Average Monthly Expenditure for Percentage of monthly
expenses
(to the nearest %)the year 2013 (to the nearest RM)
Food RM500 7.18%
Accomodation
(Rental / Loan)
RM1500 21.54%
Transportation
(Petrol / Loan/ Bus fare etc) RM2480
35.61%
Clothing RM300 4.31%
Education RM680 9.76%
Recreation RM300 4.31%
Utilities
(Water / Electricity /
Telephone)
RM605 8.69%
Medication RM200 2.87%
Miscellaneous RM400 5.74%
TOTAL RM6965 100.1%

13. PART 2 (b)
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.
i. 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.
ii. Hence, complete Table 2 below:
Item Average Monthly Expenditure for
Average monthly expenses for
the year 2013
(RM)
the year 2013 (to the nearest RM)
Food RM450
Accomodation
(Rental / Loan)
RM1500
Transportation
(Petrol / Loan/ Bus fare etc)
RM2480
Clothing RM200
Education RM380
Recreation RM200
Utilities
(Water / Electricity /
Telephone)
RM605
Medication RM200
Miscellaneous RM300
TOTAL RM6315

14. PART 2 (c)
i. Complete Table 3 based on the above information.
Item Average Monthly Expenditure for Weightage
the year 2013 (to the nearest RM)
Food RM111.11
Accomodation
(Rental / Loan) RM100
Transportation
(Petrol / Loan/ Bus fare etc) RM100
Clothing RM150
Education RM178.95
Recreation RM150
Utilities
(Water / Electricity /
Telephone)
RM100
Medication RM100
Miscellaneous RM133.33
TOTAL RM1123.39
Hence, calculate the composite index for the average monthly
expenditure in the year 2013 based on the selected base year.
(d) Make a conclusion about your family‘s expenditure based on your
findings.

15. 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 installment.
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 installment.
Complete Table 4(a) and 4 (b) using the data you obtained.
(b)Determine the brand and size of the television that you have
decided to buy.Give your reasons based on the findings from
part (a) above. decided to buy.Give your reasons based on the
findings from part (a) above.
(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.

16. 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.
(b) Assuming you have just started working with a monthly salary
of RM 2500.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.

17. REFLECTION:
What have you learnt while conducting the project? What moral
values did you practice? Represent your feelings or opinions
creatively through the usage of symbols, drawings or lyrics in a
song or a poem.