ADDITIONAL MATHEMATICS PROJECT WORK 2/2013

Name: aaaaaaaaaaaaaaaaaaaaaaaaaaaaa I/C No: 960211-03-xxxx Class: 510 Ibnu Malik Teacher: Pn Nik Norlan School: KOLEJ ISLAM SULTAN ALAM SHAH

Title:OH MY MONEY

Contents
Title
Introduction Foreword (i) Price Index (ii) Weightage Part 1 (a) (iii) Composite Index (b) Weightage Representation (a) Familys Monthly Expenditure for year 2013 (b)(i)(ii) Calculating Price Indexes (c)(i)(ii) Composite Index for Average Monthly Expenditure for year 2013 Based on year 2012 (d) Conclusion (a) Survey on prices of Televisions Part 3 (b) Television That I Want to Buy (c) Fair Price Shop Award 15 17 18 14-15

Page
2 3 6 7 7 8-9 12 13

Part 2

18

Part 4

(a) Modified Monthly Expenditure to Buy New Television (b) My Own Monthly Expenditure Planning Reflection

20

21 24

ACKNOWLEDGEMENT
First of all, I wish to express gratitude to Allah s.w.t for his guidance and also giving me the strength to do this project work. Finally, the additional mathematics project work was successfully completed with the inspiration, the gift and the instruction were given by Him. Not forgotten my parents for providing everything, such as money, to buy anything that are related to this project work and their advise, support which are the most needed for this project. Internet, books, computers and all that. They also supported me and encouraged me to complete this task so that I will not procrastinate in doing it. Beside that My father teacher at SMK Mat Kilau , Kuantan Pahang, Tn Hj Mohd Rozali bin Senik for sharing ideas to ensure our task will finish completely. Then I would like to thank my teacher, 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 work. . 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.

OBJECTIVES
The aims of carrying out this project work are: to apply and adapt a variety of problem-solving strategies to solve problems. to improve thinking skills. to promote effective mathematical communication. to develop mathematical knowledge through problem solving in a way that increases students interest and confidence.

to use the language of mathematics to express mathematical ideas precisely. to provide learning environment that stimulates and enhances effective learning. to develop positive attitude towards mathematics

INTRODUCTION
As a student who takes Additional Mathematics in SPM, I am required to carry out a project work. This year the Curriculum Development Division, Ministry of Education has prepared two tasks for me. I need to choose one project based on my interest. This project can be done in groups or individually but the students are required to submit an individually written report. Upon completion of the Additional Mathematics Project Work, we are able 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 environment 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 environment 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 problemsand hence develop positive attitude towards mathematics. -Train ourselves not only to be independent learners but also to collaborate, tocooperate, 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 morecreative and innovative -Realize the importance and the beauty of mathematics

Part 1

a)(i)

Index numbers

1) An index number is a number that can be used to show changes in magnitude of a quantity over a specific period of time. 2) The specific period over which the changes occurred is called the base time. The base usually equals to 100 and thus the index number is usually expressed as a percentage, but the % sign is not usually written. 3) The formula for calculating index of a quantity, I is: Index number, Q1 X 100 Q0 where Q0 = quantity at base time, Q1 = quantity at a specific time. 4) If the index number is 125, it indicates that there is a +25 points or 25% rise of the quantity from base time to the specific time. 5) Conversely, if the index number is 97, it indicates that there is a -3 points or 3% fall of the quantity from base time to the specific time.

U.S Consumer Price Index Food and Beverage

(ii) Weightage Weightage is common word used in Asia. The meaning for weightage is aweighting factor assigned to compensate for a perceived advantage or aweight factor or ratio; weight. Weightage can also be defined as the importance or value when compared with another thing An example for its usage is: The admission holds 80% weightage while the interview holds 20% weightage of the admission process. In a nutshell, weightage can also be said as stake. (iii) Composite Index Composite index is a grouping of equities, indexes and other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time.

1) Unlike index number which is based on single quantity or price, the Composite index is the combination of the index numbers and involves two or more quantities. 2) The weightage is the value or quantity assigned to each item. This terms provide the importance or significance of each quantity. 3) The formula of composite index is: Composite index, where = index number for item , = the corresponding weightage for item

Composite index can also be defined as a group of indices combined to measure the overall price of an item over a period of time. For instance, we can take a look at the price of roti canai in the year 2013 based on the year 2010. A composite index may also be used in the natural or social sciences to summarize complex or multidimensional data or redundant measures. Usually, a composite index has a large number of factors which are averaged together to form a product representative of an overall market or sector. For example, the Nasdaq Composite index is a market capitalization-weighted grouping of approximately 5,000 stocks listed on the Nasdaq market. These indexes are useful tools for measuring and tracking price level changes to an entire stock market or sector. Therefore, they provide a useful benchmark against which to measure an investor's portfolio. The goal of a well-diversified portfolio is usually to outperform the main composite indexes

(b) . Ways of Weightage Representations

Weightage in a set of data can be represented in certain ways.

1) Bar Chart 2) Pie Chart

3) Percentage
4) Ratio

Part 2
We often hear complaints from the public about inflation. It causes an increase in the household expenditure in a family. So what is inflation and how does it affect us in our life? Basically, as citizens, we do get affected as it increases our household expenditure. With that, it will certainly cause problem to low-income families as their expenditure increase but at the same time, their monthly income remains the same. But on the other hand, the capitalists will sure benefit from this situation as they are owners of these large corporations which conduct these businesses. The parties who will be least affected are the middle-class people and the super-rich citizens, i.e. the millionaires. Technically, inflation is caused by the price increase of certain items from time to time. In this part were going to make a case study on my family household expenditure to investigate this so called inflation. CONJECTURE Based on my early stage investigation, I would say that my familys average monthly expenditure is increasing by the year. This could be seen as the difference between this years average monthly expenditure and the past years are very big. It is big as the years come as the prices of items are increasing gradually. When the prices of items increase, the average monthly average expenditure also increases. For example when the price of petroleum increases, the expenditure will also increases. This phenomenon of price hiking will continue as time goes by.

a)

My Family Household Expenditure

Item Food Accomodation (Rental / Loan) Transportation (Petrol/ Loan / Bus fare etc) Clothing Education Recreation Utilities (Water / Electricity / Telephone) Medication Miscellaneous TOTAL

Average Monthly Expenditure for the year 2013 (to the nearest RM) 800 1050 1600 100 600 100 450 100 200 RM 5000 Table 1

Percentage of monthly expenses (to the nearest %) 16 21 32 2 12 2 9 2 4 100%

(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.

(ii)
Item Average monthly expenses for the year 2011 as the base year (RM) 750 1050 1500 80 500 150 400 60 210 RM 4700 Table 2 Average monthly expenses for the year 2013 (RM) 800 1050 1600 100 600 100 450 100 200 RM 5000

Food Accomodation (Rental / Loan) Transportation (Petrol / Loan / Bus fare etc) Clothing Education Recreation Utilities (Water / Electricity / Telephone) Medication Miscellaneous TOTAL

(c) ( i) Item Food Accomodation (Rental / Loan) Transportation (Petrol / Loan / Bus fare etc) Clothing Education Recreation Utilities (Water / Electricity / Telephone) Medication Miscellaneous TOTAL Price indices for the year 2013 based on the year ... 107 100 107 125 120 67 112.5 167 95 1000.5 Table 3 Weightage 16 21 32 2 12 2 9 2 4 100

(c)(i) Item Price Indices for the year 2013 Based on the Year 2012 109 0 111 125 107 114 109 200 120 113 Table 3 (ii) Item I W IW Weightage

Food Accomodation (Rental/Loan) Transportation (Petrol/Loan/Bus Fare etc) Clothing Education Recreation Utilities (Water/Electricity/Telephone) Medication Miscellaneous TOTAL

14 0 23 12 19 9 14 2 7 100

Food Accomodation (Rental/Loan) Transportation (Petrol/Loan/Bus Fare etc) Clothing Education Recreation Utilities (Water/Electricity/Telephone) Medication Miscellaneous TOTAL

109 0 111 125 107 114 109 200 120 110

14 0 23 12 19 9 14 2 7 100

1526 0 2553 1500 2033 1026 1526 400 840 11404

The composite index for my family average monthly expenditure in the year 2013 based on the year 2010 can be calculated by using the formula below: Composite index = Composite Index = 11404 100 =114

(d) Conclusion The composite index for the average monthly expenditure in year 2013 based on year 2012 increases. This shows that almost all the items in the table have increased. Nevertheless, this shows that my family needs a higher income as. As we can observe, the case of inflation occurs as price of goods increases but the value of money spent remains the same. It can also be concluded that my familys expenditure has increased as time passes by based on my findings.

( ii)

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.

Part 3
In this part, were going to look at some of the applications of the topic of Statistics that we have learnt in Additional Mathematics. To do so, were going to do a case study on planning to buy a new (a) television set. I have conducted a survey on the price of the television for two different brands from three different shops. I would like to make a comparison between two modes of payment, namely, cash payment by installment. Table 4(a) shows the prices of televisions by cash payment in three different shops, namely my 10, Norman and giga whereas Table 4(b) shows the prices of televisions by installment.

Price (RM) Brand Size ofTelevision (inches) 24 32 40 24 32 40 My 10 Norman 586 873 1535 599 829 1299 Giga 594 934 1543 620 840 1410 Mean Price (RM) 576.7 900 1538.7 589.3 822.7 1369.3

Standard Deviation (RM) 18.10 25.39 0 30.43 15.66 50.84

PANASONIC

LG

550 893 1538 549 799 1399 Table 4(a)

Price (RM) Brand Size ofTelevision (inches) 24 32 40 24 32 40 My 10 770 1248 2153 769 1119 1959 Table 4(b) Norman 820 1236 2302 899 1244 1949 Giga 832 1320 2243 899 1218 2045 Mean Price (RM) 807.3 1268 2232.7 855.7 1193.7 1984.3

Standard Deviation (RM) 27.83 37.09 60.04 60.81 53.11 1989.2

PANASONIC

LG

The mean of the set of data can be calculated by using the following formula: Where x = sum of data, n = number of data The standard deviation of the set of data can be calculated by us the following formula:

(b) Based on my findings from part (a) above, I have decided to buy the television LG, 32
inches from My 10 by using the cash payment method. From the data above, we can see that the price of the television that I have chosen which is RM799 is below the mean price. This shows that the price is cheaper than the average price for that kind of television. This gives me advantage and chance to save some money. Apart from that, the price is affordable accordance to my family average household expenditure. Other than that, the standard deviation for that television brand, LG 32 inches is RM15.66 which means the average data value is not extreme. A high standard deviation value means that the average data value is extreme which will result in insensibility for the consumers to buy. The television LG 32 inches has reasonable price as the standard deviation is not too high.

(c) Fair Price Shop Award

The Ministry of Domestic Trade and Consumer Affairs wishes to present the Fair Price Shop Award for the shops above. I am one of the panels for this award. Based on my findings, the shop that deserves this award is My 10. By considering the value of the mean and the value of standard deviation, here are my justifications. offers prices of television for both brands which are below the mean price which the My 10 average market price. This shows that My 10 is able to offer lower prices for the consumers compared to other shops. Hence, this will benefit the consumers especially for those who come from a low income family. The data of standard deviation for prices of television offered from My 10 is acceptable and sensible as the standard deviation values are not too high. This shows that the data does not have extreme values by both means of payment. This means that the shop has put reasonable prices of the televisions

Part 4
(a) to My family has a fixed monthly income. In order to buy the television, my family needs make some adjustment on the various types of expenditure. Here is the revised expenditure. monthly Item Average Monthly Expenditure for the Year 2013 (to the nearest RM) 781 1031 1581 81 592 81 431 81 181 160 5000

Food Accomodation (Rental/Loan) Transportation (Petrol/Loan/Bus Fare etc) Clothing Education Recreation Utilities (Water/Electricity/Telephone) Medication Miscellaneous Savings TOTAL

Revised Monthly Family Expenditure From the table above, my family is able to save RM160 per month. By the way of cash payment to buy television My 10 32 inches which is priced at RM799 fromLG, my family will be able to buy the television price after saving the money for five months, which the amount of savings will reach RM800

(b)

Assuming that I have just started working with a monthly salary of RM2500, I intend to

save 10% of my salary every month. Besides, I also plan to contribute some money to my parents monthly Item Average Monthly Expenditure for the Year 2013 (to the nearest RM) Food Accomodation (Rental/Loan) Transportation (Petrol/Loan/Bus Fare etc) Clothing Education Recreation Utilities (Water/Electricity/Telephone) Medication Miscellaneous Savings Contributions to my Parents TOTAL 450 300 200 200 0 200 250 50 200 250 400 2500 Percentage of Monthly Expenses (to the nearest %) 18 12 8 8 0 8 10 2 8 10 16 100

My monthly Expenditure Budget Here is my own monthly expenditure budget after getting a job with monthly salary of RM2500.

CONCLUSION After doing research , answeringquestions and some solvin g problem ,I notice that index number is so close to our daily life. Solving problems will be easy by using price index and composite index..
FURTHER EXPLORATION
Brands Type 328i BMW 320i X6 E200 Mercedes E200K SL63 Price (RM) 258,000 108,000 413,900 298,000 119,800 545,000 For further investigation, I have chosen to investigate the prices of three cars from well-known luxurious brands, BMW and Mercedes.

*630i is compared to E200 as luxury sedan, 530i is compared to E200K as semi-sedan, X6 is compared to SL63 as family car. Graph of comparison of Audi and Volkswagen cars

REFLECTION
While I conducting this project, a lot of information that I had found. I have learnt how index number appear in our daily life. Apart from that, this project encourages the student to work together and share their knowledge. It is also encourage student to gather information from the internet, improve thinking skills and promote effective mathematical communication. Not only that, I had learned some moral values that I practice. This project had taught me to responsible on the works that are given to me to be completed. This project also had made me felt more confidence to do works and not to give easily when we could not find the solution for the question. I also learned to be more discipline on time, which I was given about three weeks to complete this project and pass up to my teacher just in time. I also enjoy doing this project I spend my time with friends to complete this project and it had tighten our friendship. Last but not least, I proposed this project should be continue because it brings a lot of moral value to the student and also test the students understanding in Additional Mathematics.