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Teknik Kuantan

Additional Mathematics
Project Work 2010

NAME :

FORM :

I/C NO.:

TEACHERS NAME :

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 CONTENT
Appreciation

Introduction

Part 1
Task 1

Part 2
Task 2

Part 3
Task 3

Conclusion

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 APPRECIATIO
N
After weeks of struggle and hard work to complete
assignment given to us by our teacher, Sir Ching . I finally
did it within 2 weeks with satisfaction and senses of
success because I have understood more deeply about the
interest and investment more than before. I have to be
grateful and thankful to all parties who have helped me in
the process of completing my assignment. It was a great
experience for me as I have learnt to be more independent
and to work as group. For this, I would like to take this
opportunity to express my thankfulness once again to all
parties concerned.
Firstly, I would like to thanks my Additional
Mathematics teacher, Sir Ching for patiently explained to
us the proper and precise way to complete this assignment.
With his help and guidance, many problems I have
encountered had been solved.
Beside that, I would like to thanks my parents for all
their support and encouragement they have given to me. In
addition, my parents had given me guidance on the
methods to account for investment which have greatly
enhanced my knowledge on particular area.

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 Last but not least, I would like to express my
thankfulness to my cousin and friends, who have patiently
explained to me and did this project with me in group.

INTRODUCTIO
N TO INDEX
NUMBERS
An index number is an economic data figure reflecting
price or quantity compared with a standard or base value.
The base usually equals 100 and the index number is
usually expressed as 100 times the ratio to the base value.
For example, if a commodity costs twice as much in 1970
as it did in 1960, its index number would be 200 relative to
1960. Index numbers are used especially to compare
business activity, the cost of living, and employment. They
enable economists to reduce unwieldy business data into
easily understood terms.
In economics, index numbers generally are time series
summarising movements in a group of related variables. In
some cases, however, index numbers may compare
geographic areas at a point in time. An example is a
country's purchasing power parity. The best-known index

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number is the consumer price index, which measures
changes in retail prices paid by consumers. In addition, a
cost-of-living index (COLI) is a price index number that
measures relative cost of living over time. In contrast to a
COLI based on the true but unknown utility function, a
superlative index number is an index number that can be
calculated. Thus, superlative index numbers are used to
provide a fairly close approximation to the underlying cost-
of-living index number in a wide range of circumstances.
There is a substantial body of economic analysis
concerning the construction of index numbers, desirable
properties of index numbers and the relationship between
index numbers and economic theory.

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Part 1

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 TASK 1

The prices of goods sold in shops very from one shop to another. Shoppers
tend to buy goods which are not only reasonably priced but also give value
for their money.

(a) Collect pictures, newspaper cuttings or photos on items that you have
chosen.
Design a collage to illustrate the chosen items.

FOOD

FLOUR BUTTER

SUGAR EGG (GRADE A)

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 DETERGENT

SOAP CLOROX

SOAP POWDER FABRIC SOFTENER

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 STATIONERY

PENCIL RUBBER

RULER PEN

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(b) Record the items and their prices systematically as in Table 1. Since
Items may be differently packed, be sure to use consistent measurements
for each item selected so that comparison can be done easily and
accurately.

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Table 1

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CATEGORY ITEM PRICE (RM)

SHOP A SHOP B SHOP C

1. Wheat
Flour
FOOD
2. Sugar

3. Butter

4. Eggs

Total price

1. Soap

DETERGENT 2. Clorox

3. Soap
Powder

4. Fabric
Softener

Total price

1. Pencil

STATIONERY 2. Rubber

3. Ruler

4. Pen

Total price

GRAND TOTAL

(c) Create at least two suitable graphical representations ( the use of ICT is
encouraged) to compare and contrast the prices of the items chosen.

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(d) Based on the graphical representations that you have constructed in Part
1(c), interpret, discuss and draw conclusions. Comments on your
findings.
(e) Identify an item that has a large price difference among the shops.
Calculate the mean and the standard deviation of that particular item.
Hence, suggest and discuss possible reasons for the price difference.

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PART 2

TASK 2

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Every year SMK Indah organizes a carnival to raise funds for the school.
This year the school plans to install air conditioners in the school library.
Last year, during the carnival, your class made and sold butter cakes.
Because of the popularity of butter cakes, your class has decided to carry out
the same project this years carnival.

(a) Suggest a shop from Part 1 from which you would go to purchase the
ingredients for the butter cakes. State and discuss your reasons for
purchasing from the shop you suggested.

(b) Complete Table 2 with the prices of the items found in the
shop/supermarket that you have chosen.

INGREDIENT QUALITY PRICE IN PRICE IN

PER CAKE THE YEAR THE YEAR
2009 (RM) 2010 (RM)

Self-raising flour 250 g 0.90 2.25

Sugar 200 g 0.35 0.70

Butter 250 g 3.30 8.25

Eggs (Grade A) 5 eggs (300 g) 1.25 3.75

Table 2

i. Calculate the price index for each of the ingredients in Table 2 for the
year 2010 based on the year 2009.
ii. Calculate the composite index for making a butter cake in the year
2010 based on the year 2009. Discuss how you obtained your
answers.
iii. In the year 2009, the butter cake was sold at RM15.00 each. Give
reasons for your answer.
(c)

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 i. Find out from reliable sources how to determine suitable capacity of
air-conditioner to be installed based on volume/size of a room.
ii. Work in groups to estimate the volume of your school library. Explain
how you arrive at your answer. Hence, determine the number of air
conditioners with the appropriate capacity required for your library.
iii. If your class intends to sponsor one air conditioner for the school
library, how many butter cakes must your class sell in order to buy the
air conditioner ?

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PART 3

TASK 3

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As a committee member for the carnival, you are required to prepare an
estimated budget to organise this years carnival. The committee has to take
into consideration the increase in expenditure from the previous year due to
inflation. The price of food, transportation and tents has increased by 15%.
The cost of games, prized and decorations remains the same, whereas the
cost of miscellaneous items has increased by 30%.

(a) Complete Table 3 based on the information given above.

EXPENDITURE AMOUNT IN 2009 AMOUNT IN 2010

(RM) (RM)

Food 1200.00 1380.00

Games 500.00 500.00

Transportation 300.00 345.00

Decorations 200.00 200.00

Prizes 600.00 600.00

Tents 800.00 920.00

Miscellaneous 400.00 520.00

Table 3

(b) Calculate the composite index for the estimated budget of the carnival in
the year 2010 based on the year 2009. Comment on your answer.

(c) The change in the composite index for the estimated budget for the

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carnival from the year 2009 to the year 2010 is the same as the change
from the year 2010 to the year 2011. Determine the composite index of
the budget for the year 2011 based on the year 2009.

FURTHER EXPLORATION

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Index numbers are being used in many different daily situations, for example
air pollution index, stock market index, gold index and property index.
Obtain information from the internet or other reliable sources on the
importance of two different types of index numbers of your choice.
Elaborate the use and the importance of these index numbers in daily life
situations.

Reflection
While you were conducting the project, what have you learnt? What moral
values did you practice? Represent your opinions or feelings creatively
through usage of symbols, illustrations, drawings, or even in a song.

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