ADDITIONAL

MATHEMATICS
PROJECT WORK
2/2013 (SELANGOR)


NAME: Tan Jai Led
I/C NUMBER:
ANGKA GILIRAN:
SCHOOL: SMJK YU HUA
DATE: 15
th
June 2013

CONTENTS

Num Title Page
1 Acknowledgement 1
2 Objectives 2
3 Introduction: History of Index
Number
3-4
4 Part 1 Questions
(a)
(b)
4-5
4
5
5 Part 2 Questions
(a)
(b)
(c)
(d)
6-8
6
6-7
7-8
8
6 Part 3 Questions
(a)
(b)
(c)
9-10
9
10
10
7 Part 4 Questions
(a)
(b)
11-12
11
11-12
8 Further Exploration 13-16
9 Conclusion 17
10 Reflection 17
ACKNOWLEDGEMENT

I would like to thank my teacher Mr Thean for helping me
finish this project. He has provided me with a lot of information about
how to do this project perfectly.

I would also like to thank my parents for helping me finish my
Add Math project. They help me by sending me to various shops so
that I can ask about the prices of television and collect data for my
project. They also provided me with our monthly expenses so that I
can fill the table provided.

Lastly, I would like to thank my friends for cooperating with me
throughout doing the project. They exchange information with me so
that we can do better together.

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 price index as our task. Upon completion of
Add Math project, I gained valuable experience and able to:
(a) Apply and adapt a variety of problem solving strategies to solve routine and
non-routine problems.
(b)Acquire effective mathematical communication through oral and writing, and
to use the language of mathematics to express mathematical ideas correctly and
precisely.
(c)Enhance acquisition of mathematical knowledge and skills through problem-
solving in ways that increase interest and confidence
(d) Realize that mathematics is an important and powerful tool in solving real-
life problems and hence develop positive attitude towards mathematics.
(e) Train ourselves not only to be independent learners but also to collaborate,
to cooperate, and to share knowledge in an engaging and healthy environment
(f)Use technology especially the ICT appropriately and effectively
(g)Train ourselves to appreciate the intrinsic values of mathematics and to
become more creative and innovative
(h)Realize the importance and the beauty of mathematics


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. 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 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 in a 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.

PART 1
(a) Describe in brief
(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) 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.
(i) Pie Chart

(ii) Bar graph

(iii) Line Graph

(iv) 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 different
a) Complete Table 1 for your familys monthly expenditure for the year
2013.
ITEM Average Monthly
Expenditure for the
year 2013
(to the nearest RM)
Percentage of
monthly expenses
(to the nearest %)
Food 700 19
Accommodation (Rental/ Loan) 500 14
Transportation
(Petrol/Loan/Bus fare etc)
500 14
Clothing 100 3
Education 500 14
Recreation 200 6
Utilities
(Water/Electricity/Telephone)
300 8
Medication 300 8
Miscellaneous 500 14
TOTAL 3600 100

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.
Item Average Monthly Expenditure for
the year 2012
(to the nearest RM)
Food 700
Accommodation (Rental/ Loan) 1300
Transportation
(Petrol/Loan/Bus fare etc)
700
Clothing 100
Education 500
Recreation 500
Utilities
(Water/Electricity/Telephone)
400
Medication 200
Miscellaneous 600
TOTAL 5000

(ii) Hence, complete Table 2 below
Item Average
Monthly
Expenditure for
the year 2012 as
base year ( RM)

Average
Monthly
Expenditure for
the year
2013(RM)

Food 700 700
Accommodation (Rental/ Loan) 1300 500
Transportation
(Petrol/Loan/Bus fare etc)
700 500
Clothing 100 100
Education 500 500
Recreation 500 200
Utilities
(Water/Electricity/Telephone)
400 300
Medication 200 300
Miscellaneous 600 500
TOTAL 5000 3600

c) (I ) Complete Table 3 based on the above information.
Item Price indices for the
year 2013 based on
year 2012
Weightage
Food 100.00 19
Accommodation
(Rental/ Loan)
38.46 14
Transportation
(Petrol/Loan/Bus fare etc)
71.40 14
Clothing 100.00 3
Education 100.00 14
Recreation 40.00 6
Utilities
(Water/Electricity/Telephone)
75.00 8
Medication 150.00 8
Miscellaneous 83.30 14
TOTAL 758.16 100

Formula to calculate price index:

I =index number
Q1 = quantity at specific time
Q0 = quantity at base time


(II) Hence, calculate the composite index for the average monthly
expenditure in the year 2013 based on year 2012.
Formula to calculate composite index:

d) Make a conclusion about your familys expenditure based on your findings.
Based on my findings, I found out that the average monthly expenses in year
2012 are higher than the current year, 2013. We spent RM1300 in
accommodation in year 2012 compared to RM 500 in year 2013. This is
because of the different prices of land in two different locations. Transportation
fee decreases from RM 700 to RM 500 due to shorter distance from new school.
Other fees remain constant due to reduce in quantity but increase in quality.
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 payments 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.
Brand Size of
Television
( Inches)
Price(RM) Mean
Price
(RM)
Standard
Deviation
(RM)
HUP LEE
SHOP
SENG
HENG
JIT SIN
SHOP
AB 24 899 1000 900 933 47.38
32 1199 1300 1500 1333 125.08
40 1399 1500 1600 1500 75.72
EF 24 999 1100 1300 1133 125.08
32 1499 1700 1600 1600 75.28
40 2199 1900 2000 2033 124.28
Table 4(a)



Brand Size of
Television
( Inches)
Price(RM) Mean
Price
(RM)
Standard
Deviation
(RM)
HUP LEE
SHOP
SENG
HENG
JIT SIN
SHOP
AB 24 1099 1250 1000 1116 106.35
32 1399 1550 1600 1516 91.16
40 1599 1750 1700 1683 62.81
EF 24 1199 1350 1400 1316 90.43
32 1699 1950 1700 1783 118.09
40 2399 2150 2100 2216 136.30
Table 4(b)

(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.
I will buy a 24 inch EF television. This is because it fits the size of my furniture
exactly. I choose this brand although it is more expensive than brand AB
because it has a history of good serviceability rate and as such very reliable. I
choose to buy it at Hup Lee Shop because it offers the lowest price compared to
other shops. It also offers longer warranty than 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 deserves the award. Do you consider the
value of the mean and the value of standard deviation in making your decision?
Give your justifications.
If I am one of the panels for this award, I would choose Hup Lee Shop as the
award winner. This is because the mean price of all types of television for both
brands is the lowest compared to the other two shops. Standard deviation of all
the televisions in this shop is also comparatively low. This shows that Hup Lee
Shop has the cheapest televisions in town. It is therefore affordable by anyone
who would like to own a television plus the price are quite reasonable.

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.
Item Average Monthly
Expenditure
(RM)
Modified Expenditure
(RM)
Food 700 500
Accommodation (Rental/ Loan) 500 500
Transportation
(Petrol/Loan/Bus fare etc)
500 500
Clothing 100 0
Education 500 500
Recreation 200 0
Utilities
(Water/Electricity/Telephone)
300 300
Medication 300 200
Miscellaneous 500 101
Television - 999
TOTAL 3600 3600


(b) Assuming you have just started working with a monthly salary of RM2500.
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 contribution to your parents.
Item Average Monthly Expenditure(RM)
Food 350
Accommodation (Rental/ Loan) 300
Transportation
(Petrol/Loan/Bus fare etc)
200
Clothing 50
Education 300
Recreation 50
Utilities (Water/Electricity/Telephone) 100
Medication 200
Savings 250
Parents 700
Miscellaneous 300
TOTAL 2500






Further Exploration
Index numbers are being used in many different daily situations, for example air
pollution index, stock market index, gold index and property index.

Air Pollution Index

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 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.

Malaysia
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 PM10 particulate matter is reported
in microgram/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.



Stock Market Index

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 nation
and 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 FTSE100.

The concept may be extended well beyond an exchange. The Dow Jones Total
Stock Market Index, as its name implies, 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 ADR s) and most traded on the
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. The Morgan Stanley Biotech Index, for example, 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 one index published by Linux Weekly News tracks stocks of
companies that sell products and services based on the Linux operating
environment.

Uses and importance of air pollution index and stock market index

As everyone can see, the air pollution index is use by the government to
measure the air quality index and to detect any pollutants in our countrys air.
This is to ensure the air is clean and safe for us to 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
pollution 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
countrys economical state sometimes depend on it.
Conclusion
After doing research, answering questions, drawing graphs and some problem
solving, I saw that the usage of index number 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
cant be conducted, the stock market cant be interpret and many more. So, we
should be thankful of the people who contribute in the idea of statistics.


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.
I have learnt that additional mathematics is a very interesting subject and that it
is used frequently in our daily lives without us realising it. It can also help us
improve the quality of our daily life indirectly. While doing this project, I had
the chance to practice managing my time so as to pass up my project on time. It
teaches me to be punctual and it also teaches me to be a patient person.