SMK Sultan Abu Bakar

Jalan Beserah, 25300, Kuantan, Pahang.

Additional Mathematics Project Work
K2/2014

Application of Index Number and Statistics





Name : Nur Syahirah binti Shafek Hamlan
I/C :
SPM ID:
Class : 5SC2




__________________
Teachers signature



CONTENT

OBJECTIVE 1
FOREWORD 2
INTRODUCTION 3-4


PART ONE 5-12
PART TWO 13-16
PART THREE 17-18
FURTHER EXPLORATION 19-21
CONCLUSION 22
REFLECTION 23






OBJECTIVE


I was given a task from the Pahang State Education Department to carry out an
Additional Mathematics project work this year. I was asked to complete this task and submit
an individually written report. Upon completion of the Additional Mathematics Project Work,
I want to gain valuable experiences and able to:
Apply and adapt a variety of problem-solving strategies to solve routine and non-
routine problems.
Experience a classroom environment which is challenging, interesting, meaningful
and hence improving our thinking skills.
Experience a classroom environment where knowledge and skills are applied in
meaningful ways in solving real-life problems.
Experience a classroom environment where expressing ones mathematical thinking,
reasoning and communication are highly encouraged and expected.
Experience a classroom environment that stimulates and enhances effective ways of
learning.
Prepare for the demands of my future undertakings and in workplace.
Realise that mathematics is an important and powerful tool in solving real-life
problems and hence develop positive attitude towards mathematics.
Train myself not only to be an independent learner but also collaborate, cooperate and
share knowledge in an engaging and healthy environment.
Use technology especially ICT appropriately and effectively.
Train myself to appreciate the intrinsic values of mathematics and to become more
creative and innovative.
Realise the importance and the beauty of mathematics.



FOREWARD
Praise to god for giving me the strength and health to do this project work. Not to forget
my parents for providing everything for me such as money to buy anything that are related to
this project work, computer, internet, books, time, energy and also their valuable advices to
me. They also supported me and encouraged me to complete this task that I will never
procrastinate in doing it. I also would like to thank my teacher, Puan Rabaiah binti Sujak for
guiding me throughout this work. Not to mention, my friends who are also doing this project
with me. They shared ideas and gave suggestions to me which are very helpful to me in order
to complete this task. I had some difficulties in doing this task but thanks to them, I had this
task done on time.














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 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 net 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 price, quantity, value and 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.


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.












BACKGROUND
The prices of goods sold in shops vary from one shop to another. Shoppers tend to buy goods
which are reasonably priced, giving value for their money. We, as consumers, should learn to
spend wisely and keep our daily expenses to the minimum.
PART ONE
I was required to carry out a survey on three different items based on the following
categories: food, detergent and stationary. The survey should be done in three different shops.
(a) Pictures, newspapers cuttings or photos on items that I have chosen are collected.
A collage to illustrate the chosen items was designed.





















(b) The items and their prices are recorded systematically as in Table 1(a), 1(b) and 1(c).
Since items may be differently packed, consistent measurements for each item are made sure
so that comparison can be done easily and accurately.
Category Item
Price (RM)
Shop A:
Giant
Shop B:
Tesco
Shop C:
Mydin
Food
1. Fresh milk
(1 litre)
6.90 7.49 6.50
2. Margarine
(250g)
5.80 5.00 5.30
3. Wheat flour
(1kg)
1.30 2.50 1.50
Total price (RM) 14.00 14.99 13.33
Table 1(a)
Category Item
Price (RM)
Shop P:
Giant
Shop Q:
Tesco
Shop R:
Mydin
Detergent
1. Bar soap
(3 bars)

4.50 4.30 3.99
2. Liquid
detergent
(1 litre)

7.99 8.00 7.80
3. Powdered
detergent
(5kg)
15.99 16.20 15.50
Total price (RM) 28.48 28.50 27.29
Table 1(b)
Category Item
Price (RM)
Shop X:
Giant
Shop Y:
Tesco
Shop Z:
Mydin
Stationeries
1. Pencil
(1 dozen)

9.90 8.20 7.90
2. Colouring
pencils
(12 pencils/box)
9.50 8.00 8.50
3. Whiteboard
marker
(1 item)
4.80 4.50 4.30
Total price (RM) 24.20 20.70 20.70
Table 1(c)
(c) Some suitable graphical representations (encouraged by the use of ICT) were created to
compare and contrast the prices of each category.
1) Bar charts

Food

Detergent

0
1
2
3
4
5
6
7
8
Giant Tesco Mydin
P
r
i
c
e

(
R
M
)

Shops
Fresh Milk
Margarine
Wheat flour
0
2
4
6
8
10
12
14
16
18
Giant Tesco Mydin
P
r
i
c
e

(
R
M
)

Shops
Bar soap
Liquid detergent
Powdered detergent

Stationeries

2) Pie charts


0
2
4
6
8
10
12
Giant Tesco Mydin
P
r
i
c
e

(
R
M
)

Shops
Pencil
Colouring pencils
Whiteboard marker
Giant
33%
Tesco
35%
Mydin
32%
Total price for food







Giant
34%
Tesco
34%
Mydin
32%
Total price for detergent
Giant
37%
Tesco
31%
Mydin
32%
Total price for stationeries
(d) Based on the graphical representations that I have constructed in Part 1(c), it shows that
there are large and small differences among the prices of items in each category between the
shops. The bar charts show that products from Mydin are much cheaper than products from
Tesco and Giant. From the pie charts, we can conclude that shop which is selling the products
with higher price is Giant. As a conclusion, shop which is selling their products with lower
prices among all of the shops is Mydin, followed by Tesco and the shop which is selling their
products with higher prices among all of the three shops is Giant.
(e) An item that has a large price difference among the shops was identified. Possible reasons
for the price difference are suggested.
Pencil (one dozen):
Giant = RM 9.90
Tesco = RM 8.20
Mydin = RM 7.90
Using the formula:

, where is sum of all data and N is is number of data.

The large price differences of pencils among the shops are maybe because of the standard of
the shop. A high standard shop or supermarket, the items sold intend to be much more
expensive than a regular shop. The price difference of the items may also due to the quality of
the item present. A better quality means a higher price.




PART TWO
Every year, my school organizes a carnival to raise funds for school improvement projects.
This year, my school is planning to install CCTV in order to enhance its security. Last year,
during the carnival, my class made and sold nasi lemak. Due to the popularity of this local
food, my class has decided to carry out the same project for this years carnival.
(a) Table 2 shows the prices of the given items for the year 2014.
Items
(For 10 packets of
Nasi Lemak)
Quantity
Price in the year
2013 (RM)
Price in the year
2014 (RM)
I
For the flavoured rice:
Rice 1 kg 2.80 3.00
Santan 150 g 1.50 1.90
Onion 10 g 0.15 0.30
Ginger 10 g 0.15 0.20
Salt 2 g 0.05 0.08
II
For the sambal:
Red onion 10 g 0.05 0.12
Garlic 5 g 0.04 0.08
Dried chillies 100 g 1.00 1.25
Anchovies 200 g 2.00 2.70
Cooking oil 100 g 0.25 0.32
III
Miscellaneous:
Fried groundnuts 200 g 0.50 0.84
Fried anchovies 150 g 1.50 1.80
Cucumber 200 g 0.20 0.31
5 Eggs 300 g 1.50 1.80
Banana leaves
(1 bundle)
300 g 1.00 1.20
Table 2




(b) The price index for each of the items in Table 2 for the year 2014 based on the year 2013
was calculated by using the formula below:

Where,

= Price of the item at the base time.

= Price of the item at the specific time.

Items
(For 10 packets of
Nasi Lemak)
Quantity
Price in the year
2013 (RM)
Price in the year
2014 (RM)
Price Index
for the year
2014 based on
the year 2013
(I)
I
For the flavoured rice:
Rice 1 kg 2.80 3.00 107.14
Santan 150 g 1.50 1.90 126.67
Onion 10 g 0.15 0.30 200.00
Ginger 10 g 0.15 0.20 133.33
Salt 2 g 0.05 0.08 160.00
II
For the sambal:
Red onion 10 g 0.05 0.12 240.00
Garlic 5 g 0.04 0.08 200.00
Dried chillies 100 g 1.00 1.25 125.00
Anchovies 200 g 2.00 2.70 135.00
Cooking oil 100 g 0.25 0.32 `128.00
III
Miscellaneous:
Fried groundnuts 200 g 0.50 0.84 168.00
Fried anchovies 150 g 1.50 1.80 120.00
Cucumber 200 g 0.20 0.31 155.00
5 Eggs 300 g 1.50 1.80 120.00
Banana leaves
(1 bundle)
300 g 1.00 1.20 120.00



(c) The composite index for the cost of a packet of nasi lemak in the year 2014 based on the
year 2013 was calculated by using the formula below:

Where,

= Index number

= Weightage

= 124.256
Items
(For 10 packets of
Nasi Lemak)
Quantity
Price Index for
the year 2014
based on the
year 2013 (I)
Weightage (W)

I
For the flavoured rice:
Rice 1 kg 107.14 1.000 107.14
Santan 150 g 126.67 0.150 19.00
Onion 10 g 200.00 0.010 2.00
Ginger 10 g 133.33 0.010 1.33
Salt 2 g 160.00 0.002 0.32
II
For the sambal:
Red onion 10 g 240.00 0.010 2.40
Garlic 5 g 200.00 0.005 1.00
Dried chillies 100 g 125.00 0.100 12.50
Anchovies 200 g 135.00 0.200 27.00
Cooking oil 100 g `128.00 0.100 12.80
III
Miscellaneous:
Fried groundnuts 200 g 168.00 0.200 33.60
Fried anchovies 150 g 120.00 0.150 18.00
Cucumber 200 g 155.00 0.200 31.00
5 Eggs 300 g 120.00 0.300 36.00
Banana leaves
(1 bundle)
300 g 120.00 0.300 36.00
Total 2.737 340.09
(d) In the year 2013, the nasi lemak was sold at RM2.50 each. A suitable selling price for a
packet of the nasi lemak in the year 2014 was suggested.
Price of a packet of nasi lemak in the year 2013 = RM2.50
Price of a packet of nasi lemak in the year 2014 =

Using the formula =

The suitable selling price for a packet of nasi lemak in the year 2014 is RM3.10. The
increasing in price is suitable because of the rise of price of the ingredients.


















PART THREE
In order to upgrade the security, your school has decided to install closed-circuit TV (CCTV).
(a) A suitable number of cameras to be installed and their placement were suggested.

I suggested two cameras to be installed at my school. The cameras will be installed near the
office entrance and near the principals cark park. This action will be done to avoid any
robbery or crime case happening at my school.
(b) An installation for a CCTV costs RM 800.
The total cost for two installations of CCTVs are RM 1600.
(c) My class intends to sponsor 10% of the cost. The number of packets of nasi lemak must
my class sell is calculated.
10% RM 1600 = RM 160
Price of a packet of nasi lemak = RM 3.10 + RM 0.40 (profit)
= RM 3.50
Packets of nasi lemak must be sold =

= 45.7
Approximately 46 packets of nasi lemak must be sold to sponsor 10% of the cost.
Block A
(d) I think my class can achieve the 10% target because many visitors from Kuantan will
come and visit our school during the carnival. This will increase the amount of our nasi
lemak sold. Last year, we had sold more than 100 packets of nasi lemak. So we dont have to
worry if no ones going to buy our nasi lemak. From the selling, we can sponsor 10% for the
cost of installation of the CCTVs.
I dont think that my class should carry out a different project since we can get a lot of
profit from selling this food. Moreover, nasi lemak is one of the most popular foods here in
Malaysia so I bet everyone loves nasi lemak.





















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.
1. Air Quality Index
What is Air Quality Index?
An air quality index (AQI) is a number used by government agencies to communicate
to the public how polluted the air is currently or how polluted it is forecast to become. As the
AQI increases, an increasingly large percentage of the population is likely to experience
increasingly severe adverse health effects. Different countries have their own air quality
indices which are not all consistent. Different countries also use different names for their
indices such as Air Quality Health Index, Air Pollution Index and Pollutant Standards Index.
Definition and usage
Air quality is defined as a measure of the condition of air relative to the requirements
of one or more biotic species or to any human need or purpose. 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
colour code. Standardized public health advisories are associated with each AQI range.
The AQI can go up (meaning worse air quality) due to a lack of dilution of air
pollutants. Stagnant air, often caused by an anticyclone, temperature inversion, or low wind
speeds lets air pollution remain in a local area, leading to high concentrations of pollutants
and hazy conditions. An agency might encourage members of the public to take public
transportation or work from home when AQI levels are high.
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.







Air Pollution Index in Malaysia
API Status Health Effect Health Advice
0 - 50 Good Low pollution
without any bad
effect on health.
No restriction for
outdoor activities to
the public. Maintain
healthy lifestyle.
51 - 100 Moderate Moderate pollution
that does not pose
any bad effect on
health.
No restriction for
outdoor activities to
the public. Maintain
healthy lifestyle.
101 - 200 Unhealthy Worsen the health
condition of high risk
people who is the
people with the heart
and lung
compilations.
Limited outdoor
activities fir the high
risk people. Public
need to reduce the
extreme outdoor
activities.
201 - 300 Very unhealthy Worsen the health
condition and low
tolerance if physical
exercises to people
and heart and lung
compilations. Affect
public health.
Old and high risk
people are advised to
stay indoors and
reduce physical
activities. People
with health
compilations are
advised to see doctor.
> 300 Hazardous Hazardous to high
risk people and
public health.
Old and high risk
people are prohibited
for outdoor activities.
Public are advised to
prevent from outdoor
activities.
> 500 Emergency Hazardous to high
risk people and
public health.
Public are advised to
follow orders from
National Security
Council and follow
the announcement in
mass media.







2. Body Mass Index (BMI)
The body mass index (BMI), or Quetelet index, is a measure of relative weight based on an
individual's mass and height. It is defined as the individual's body mass divided by the square
of their height with the value universally being given in units of kg/m2.

BMI can also be determined using a table or from a chart which displays BMI as a function
of mass and height using contour lines, or colours for different BMI categories, and may use
two different units of measurement.

The BMI is used in a wide variety of contexts as a simple method to access how much an
individual's body weight departs from what is normal or desirable for a person of his or her
height. There is however often vigorous debate, particularly regarding at which value of the
BMI scale the threshold for overweight and obese should be set, but also about a range of
perceived limitations and problems with the BMI.
'BMI' provides a simple numeric measure of a person's thickness or thinness, allowing health
professionals to discuss overweight and underweight problems more objectively with their
patients.



CONCLUSION
After doing this research, I have learnt that index numbers are daily life necessities. Without
it, surveys cannot be conducted. Mathematics are not just numbers. They are a very important
tool to solve real life problems and enhance our thinking skills. We should be thankful to the
people who contribute in the idea of index number.






















REFLECTION
While I was conducting the project, I have learnt and practice a lot of moral values.
We should be patient when facing hard times when doing a task and try to find ways to solve
problems that we are facing by seeking help from friends or teachers. We should also be
independent when doing a task and try to learn something new from it and appreciate the
intrinsic values of mathematics and to become a more creative and innovative person.








Pure mathematics is, in its way, the poetry of logical ideas.
Albert Einstein

One of the most amazing things about mathematics is the people who do maths
arent usually interested in application, because mathematics itself is truly a beautiful
art form. Its structures and patterns, and thats what we love, and thats what we get
off on.
Danica McKellar.

For the things of this world cannot be made known without knowledge of
mathematics.
- Roger Bacon