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Chapter 10: Index number (F4)

(1) Find the value of x, y, z


(a) (b)
Item Price (2004) Price (2008) Price Index Item Price (2000) Price (2009) Price Index
A RM 5.00 RM 5.50 y P RM 3.00 RM 2.20 z
B RM 4.20 z 125 Q RM 0.80 x 125
C x RM 9.80 122.5 R y RM 8.00 80
[110,5.25,8] [73/1/3,1,10]
(c) (d)
Item Mass (2012) Mass (2014) Index Number Item Mass (2014) Mass (2015) Index Number
C x 55 110 G 45 x 108
D 75 96 y H y 80 95
E 85 z 85 I 50 70 z
[50,128,72.25] [48.6,84.21,140]
(e) (f)
Item Price (2013) Price (2016) Price Index Item Mass (2014) Mass (2015) Index Number
P x 0.95 114 A 25 27 x
Q 11.5 y 125 B 54 y 128
R 2.25 2.70 z C z 60 125
[5/6, 14.375,120] [108,69.12,48]

(2) Find the composite index: Junior


(a) [119.6] (b) [102/2/13]
Item Price Index Weightage Item Price Index Weightage
A 120 2 P 90 5
B 104 4 Q 124 2
C 135 4 R 105 6
(c) [128⅔] (d) [101]
Item Price Index Weightage Item Price Index Weightage
X 110 4 R 115 3
Y 124 5 S 102 2
Z 145 6 T 90 4
(e) [107.2] (f) [113.78]
Item Price Index Percentage Item Price Index Angle
A 108 20 R 106 90
B 104 40 S 121 80
C 130 10 T 124 120
D 90 10 U 98 70
E 110 20
(g) [128/2/3] (h) [118.6]
Item Price Index Weightage Item Price Index Weightage
X 110 4 X 125 4
Y 124 5 Y 104 4
Z 145 6 Z 135 2
(i) [105] (j) [126]
Item Price Index Weightage Item Price Index Weightage
X 95 3 X 120 2
Y 110 4 Y 150 8
Z 115 1 Z 90 5

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(3) Find the composite index: Intermediate and senior
(a) Given the composite index = 113.75, find w (b) Given the composite index = 115, find q
Item Price Index Weightage Item Price Index Weightage
A 102 5 P 120 5
B 115 w Q 125 2
C 125 5 R 110 q
[2] [9]
(c) Given the composite index = 118. (d) Given the composite index = 126⅔, find n
Item Price Index Item Price Index Weightage
A 130 P 140 n
B 120 Q 125 3
C 110 R 75 1
Given the ratio of A: B: C = 2: n : 4, find n. S 130 5
[4] [3]
(e) Given the composite index = 118.5, find p (f) Given the composite index = 138.4, find x.
Item Price Index Weightage Item Price Index Weightage
X 120 5 X 108 3
Y p 3 Y 114 2
Z 135 2 Z x 4
[105] [173.4]
(g) Given the composite index = 120.7, find r (h) Given the composite index= 126.7, find y.
Item Price Index Weightage Item Price Index Weightage
X 124 2 X 118 4
Y r 3 Y 134 3
Z 115 5 Z y 3
[128] [131]
(i) Given the composite index = 129, find r (j) Given the composite index = 130, find n
Item Price Index Weightage Item Price Index Weightage
A 95 2 C 145 6
B r 3 D 130 5–n
C 200 1 E 120 n
D 135 4 F 115 4
[120] [3]

(4) Find the index number (3 years) super senior


1. Based on the year 1999, the index numbers of a type 2. Based on the year 2000, the index numbers of a type
of food for the years 2000 and 2005 are 125 and 135 of cake for the years 2013 and 2015 are 115 and 150
respectively. Find the index number for the year 2005 respectively. Find the index number for the year 2015
based on the year 2000. [108] 10
based on the year 2013. [ 130 ]
23
3. Based on the year 2002, the index numbers of a type 4. Based on the year 1998, the index numbers of a type
of fish for the years 2000 and 2005 are 120 and 140
of cake for the years 2010 and 2013 are 105 and 120
respectively. Find
respectively. Find the index number for the year 2013 (a) the index number for the year 1998 based on the
2 3
based on the year 2010. [ 114 ] year 2005. [ 71 ]
7 7
(b) the index number for the year 2000 based on the
5
year 2005. [ 85 ]
7

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(5) Paper 2: Percentage Increasing or Decreasing
(a) Calculate the value of p, q and r.
Material Price per kg (RM) Price Index Weightage
2000 2005
E 40.00 p 130 2
F 50.00 75.00 q 5
G r 80.00 125 1
H 25.00 45.00 116 2
The cost of building a house is expected to increase by 40% from the year 2005 to the year 2010. Find the
expected composite index for the cost of building a house in the year 2010 based on the year 2000. [136.7,
191.38.]
(b) Find the value of x, y and z and hence find the composite index of 5 items given.
Item Price per kilogram (RM) Price index Percentage expenditure
Year 2005 Year 2007 (%)
P 0.90 x 150 10
Q 2.40 3.00 125 20
R 1.50 1.80 y 13
S 4.00 6.40 160 33
T z 3.85 110 24
The cost of all items increases by 25% from the year 2007 to the year 2012. Find the composite index for
the year 2012 based on the year 2005. [134.8, 168.5]
(c) The average prices of rice, flour, sugar and cooking oil are projected to rise 20%, 30%, 50% and 50%
respectively from the year 2011 to the year 2012.

Calculate the composite index number of these four foodstuffs for the year 2012 based on the year 2010.
[152/27/28]
(d) Find the value of x, y and z. If the cost of each material rose by 30% from the year 2009 to the year 2014,
find the composite index for the cost of producing the commercial product for the year 2014 based on the
year 2009. [196.3]
Raw Material Price (RM) per kg in the year Price index in 2009 Weightage
(2004 = 100)
2004 2009
J x 0.80 160 8
K 0.80 1.20 y 4
L 1.40 z 120 2
M 0.70 1.05 150 6

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(6) Index Number (Problem Solving)
1. The table shows the price changes of four items used in baking a certain cake form the year 2000 to the year 2005
and their respective weightages. Given that the composite index for the year 2005 based on year 2000 is 105, find
the percentage of price change of item S. [Increased by 20%]

Food Price change Weightage


P Increased by 15% 2
Q Unchanged 3
R Decreased by 20% 2
S 3

2. The table shows the price indices for 5 basic expenditures in the year 2005 based on the year 2003 together with
the changes in the price indices from 2005 to 2007 as well as the respective weightages.

Expenditure Price Index in 2005 based on 2003 Price Change from 2005 to 2007 W
Transport 155 Increased by 25% 3
Food 125 Decreased by 10% 2
Rental 115 Unchanged 1
Entertainment 105 Decreased by 15% 4
Petrol 135 Increased by 5% 5
(a) Calculate the price index for each of the expenditures in the year 2007 based on 2003.
[193.75,112.5,115,89.25,141.75]
(b) Calculate the composite index for the year
(i) 2005 based on 2003. [128⅓]
(ii) 2007 based on 2005. [101⅓]
7
(iii) 2007 based on 2003. [ 134 ]
15
3. The table below shows the price indices and percentages of usage of four items, A, B, C and D, which are the main
ingredients in the production of a brand of biscuit.

Item Price index for the year 2014 based on the year 2012 Percentage of usage (%)
A 115 20
B y 10
C 105 30
D 120 40
(a) Calculate the price of item D in the year 2012 if its price in the year 2014 was RM 2.50 [2.08]
(b) Calculate the price index of item A for the year 2014 based on the year 2010 if its price index for the year 2012
79
based on the year 2010 is 118.25. [ 135 ]
80
(c) The composite index of the cost of biscuit production for the year 2014 based on the year 2012 is 118. Calculate
(i) the value of y. [155]
(ii) the price of a box of biscuit in the year 2012 if its corresponding price in the year 2014 was RM 42. [35.59]

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