Index Number

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INDEX NUMBER
ADDITIONAL
MATHEMATICS
MODULE 20
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1
CHAPTER 11: INDEX NUMBER
CONTENTS PAGE
11.1 Conceptual Map 2
11.2 Calculate index number 3
11.3 Calculate price index 5
11.4 Calculate composite index 7
Past Year Question 9
Assessment 15
Answer 17
2
11.1 CONCEPT MAP
Fill in the fomula in the blank boxes
APLICATION OF INDEX
NUMBER
Price Index
Price index, I =
Where ,
P
1
= price of an item at a
specific time
P
0
= price of an item at a base
time
Composite Index Number
Composite index number, I
I =
Where ,
W = weightage of each item
I= Index number of each item
3
11.2 Calculate index number
Example 1:
Example 2:
The total sale of sun glasses in 2003 and 2004 are 80 and 96 pairs.
Calculate the index in 2004 given that 2003 is the base year.
Base year,
03
Q = 80
Specific year,
04
Q = 96
I =
03
04
Q
Q
x 100 = 120
2. The index of Perodua Kancil in 1996 based on 1990 is 140 and the index number of
Perodua Kancil in 2000 based on 1996 is 105. Find the index number of the Perodua
Kancil in 2000 based on 1990.
1990 1996 2000
100
=
105
x
x =
100
140
x 105
= 147
100 x
_ 100 105
Or x 100 = 140 x 100 = 105
90
96
P
P
=
100
140
96
00
P
P
=
100
105
Index number in 2000 based on 1990, I =
90
00
P
P
x 100
=
96
00
P
P
x
90
96
P
P
x 100
=
100
105
x
100
140
x 100
= 147
4
Exercise 11.2
1. The student population of a College MARA increased from 1000 students in year
2005 to 1380 students in year 2006. Calculate the index number to show change in the
student population of the school in year 2006 using year 2005 as the base year.
2. The price index of two items for the specific years are given in the following table.
Item 1995
(1990=100)
1999
(1990 = 100)
1999
(1995=100)
P 125 140 x
Q 135 y 120
Calculate the values of x and y
5
11.3 Calculate price index
Example 1
Exercise 11.3:
1. The price of a book was RM 0.90 in 1999. Its price became RM 1.35 in 2003.
Calculate the index price of the book in 2003 based on the year 1999
The price index of a packet of sugar weighing 1kg in year 2006 based on year
2004 was 115. If the price of a packet of the sugar in a year 2004 was RM 7.00,
find the price of a packet of sugar in year 2006.
Base year,
04
P = RM 7.00
Specific year ,
06
P = ?
Price Index, I =
04
06
P
P
x 100
=
00 . 7
06
P
x 100
06
P = x
= RM 8.05
6
2. The index number of the monthly house rental in Bertam Area in year 2004 based on
year 1999 was found to be 118. If the house rental in year 1999 was RM400 per month,
find the monthly house rental in year 2004.
3. The table shown the price per kg of good: A, B and C in the year 2005 and 2006.
Types of good Price Price index in 2006
(Base year = 2005) 2005 2006
A RM 1.20 RM 1.60 z
B x RM 2.30 110
C RM 0.60 y 102
Find the value of x, y and z
7
11.4 Calculate Composite Index
Example:
The table below show the price indices of 3 types of thing to make a cake in a certain
year. Calculte the composite index.
1.
Things Index Weightage
P 100 4
Q 120 2
R 145 4
I =
W
IW
= 100(4) +120(2) + 145(4)
4 + 2 +4
= 122
Exercise 11.4:
1. Calculate the composite index for each of the following data
Index number, I 120 110 105
Weightage, W 3 4 3
8
2. Table below shows the prices index and the weightage of three items in 2000
based on 1996.
Item Price Index Weightage
A 125 5
B x 3
C 110 2
The composite index in 2000 is 116. Find the value of x.
3. Diagram shows a bar chart which represent the cost of three components, A, B, C
The composite index is 107. find the value of m
A B C Component
m
6
4
Cost
9
Past Year Question
2005 (Paper 2)
1. Table 1 shows the prices and the price indices for the four ingredients P, Q, R and S used in
making biscuits of a particular kind. Diagram 1 is a pie chart which represent the relative amount
of the ingredients P, Q, R and S used in making these biscuits.
Ingredients Price per kg ( RM) Price index for the
year 2004 based on
the year 2001
Year 2001 Year 2004
P 0.80 1.00 x
Q 2.00 y 140
R 0.40 0.60 150
S z 0.40 80
Table 1
Diagram 1
a. Find the value x, y and z. [3 marks]
120
O
60
O
100
O
Q
P
S
R
10
b. (i) Calculate the composite index for the cost of making these biscuits in the year
2004 based on the year 2001
(ii) Hence, calculate the corresponding cost in the year 2001 if the cost in
the year 2004 was 2985 [ 5 marks]
c. The cost of making these biscuits is expected to increase by 50% from the year 2004
to the year 2007
Find the expected composite index for the year 2007 based on the year 2001
[2 marks]
Solution
11
2004 (Paper2)
2. Table 2 shows the price indices and percentage of usage of four items, P, Q, R and S, which are
the main ingredients in the production of a type of biscuit.
Item Price Index for the year 1995
based on the year 1993
Percentage of usage
(%)
P 135 40
Q x 30
R 105 10
S 130 20
Table 2
(a) Calculate
(i) the prices of S in the year 1993 if its price in the year 1995 is RM 37.70,
(ii) the price index of P in the year 1995 based on the year 1991 if its price index
in the year 1993 based on the year 1991 is 120. [5 marks]
12
(b) The composite index number of the cost of biscuit production for the year 1995 based
on the year 1993 is 128. Calculate
(i) The value of x
(ii) The price of a box of biscuit in the year 1993 if the corresponding price in the
year 1995 is RM 32. [5 marks]
Solution
2003( Paper 2)
3. Diagram 2 is a bar chart indicating the weekly cost of the items P, Q, R, S and T for the year
1990. Table 3 shows the prices and the price indices for the items
Weekly Cost ( RM)
12
15
24
30
33
P Q R S T Items
13
Diagram 2
Items Price in 1990 Price in 1995 Price Index in 1995
based on 1990
P x RM0.70 175
Q RM2.00 RM2.50 125
R RM4.00 RM5.50 y
S RM6.00 RM9.00 150
T RM2.50 z 120
Table 3
(a) Find the value of
(i) x
(ii) y
(iii) z [3 marks]
(b) Calculate the composite index for the items in the year 1995 based on the year 1990.
[2 marks]
14
(c) The total monthly cost of the items in the year 1990 is RM456. Calculate the
corresponding total monthly cost for the year 1995 [2 marks]
(d) The cost of the items increase by 20% from the year 1995 to the year 2000. Find the
composite index for the year 2000 based on the year 1990. [3 marks]
15
ASSESSMENT
(30 MINUTES)
1. Price indices of a Korean car in the year 2000 and 2002 based on the year 1998 are 116 and 125
respectively. Calculate the price indices for the year 1998 and 2000 if the year 2002 is used as the
base year.
Solution
2. The table below shows the price indices and percentage of usage of four items, J, K, L and M,
which are the the main ingredients in the production of a type of cheese cake.
Items Price index for the year
2004 based on the year 2002
Percentage of usage (%)
J 130 30
K y 20
L 102 40
M 145 10
(a) Calculate
(i) the price of M in the year 2002 if its price in the year 2004 is RM28.13
16
(ii) the price index of J in the year 2004 based on the year 2000 if its price index
in the year 2002 based on the year 2000 is 110.
(b) The composite index number of the cost of choclate cake production for the year 2004 based on
the year 2002 is 126. Calculate
(i) the value of y
(ii) the price of a box of cheese cake in the year 2002 if the corresponding price in the year
2004 is RM24
17
2. (a) Table 4 shows the price index and the weightage of four types of electrical
components in television items in 2000 based on 1996.
Electrical component Price Index Weightage
Capasitor 110 2
Diode 105 m
Resistor 120 4
Transistor 125 n
Table 4
Find the values of m and n given the composite index is 118 and the total weightage
is 10
(b) Table 5 shows the prices of four types of electrical components in television items in 1998 and
2000. Diagram 3 shows the pie chart that reflects the proportion of expenditure of Samsung
Factory in 1998.
18
Component Price
1998 2000
J RM6.00 RM7.20
K RM5.00 RM5.50
L RM4.00 RM5.20
M RM7.00 RM9.10
Table 5
Diagram 3
(i) Find the composite index for the four types of electrical component.
(ii) The expenditure for Samsung Factory in 1998 is RM1200. Find the corresponding
expenditure for Samsung Factory in 2000
J
120
o
K
80
o
L
70
o
K
19
ANSWER
Exercise 11.2
1. 138
2. x = 112, y = 162
Exercise 11.3
1. 150
2. 472
3. x = RM2.09 , y = RM0.61 , z = 133.33
Exercise 11.4
1. 111.5
2. x = 105
3. m = 10
Past Year Question
1. a. x = 125 , y = 2.80 , z = 0.50
b. (i) 129.44 (ii) 2306.94
c. 150
2. a. (i) RM129 (ii) 162
b. (i) x = 125 (ii) RM25
3. a. (i) x = RM0.40 (ii) y = 137.5 (iii) z = RM3.00
b. 140.9
c. RM642.5
d. 169.1
ASSESSMENT
1. 80, 92.8
2. a. (i) RM19.40 (ii) 143
b. (i) y = 158.5 (ii) RM19.05
3. a. m = 1 , n = 3 b. (i) 121.67 (ii) RM1460
20
PANEL OF ADDITIONAL MATHEMATICS MODULES
PROGRAM DIDIK CEMERLANG AKADEMIK
JABATAN PELAJARAN PULAU PINANG
NO TEACHERS NAME SCHOOLS NAME TOPICS
1 SUHAIMI BIN MOHD
TABIEE
SMKA AL-IRSHAD Functions
2 MOHD AMRAN BIN
WAHAB
SMK SERI BALIK PULAU Functions
3 SABARIAH BINTI DAHLAN SMK SERI MUDA Quadratic Equations
4 HANISAH BT ABDUL
RAHIM
SMK TAMAN INDERAWASIH Quadratic Functions
5 SHUKOR BIN MD NOOR SMK BAKTI Simultaneous Equations
6 NORA BT ROSDIN SMK PAYA KELADI Indices and Logarithms
7 ZAWEYAH BT SULAIMAN SMK PTG TOK JAYA Coordinate Geometry
8 WANISMAWATI BT
OTHMAN
SMK AIR ITAM Coordinate Geometry
9 MUMINAH BT ABDUL
RAHMAN
SMK(P) ST GEORGE Statistics
10 AZIZAH BT ABDUL
RAHMAN
SMK POKOK SENA Statistics
11 MIMI SHUHAIDA BT
PAWAN TEH
SMS TUN SYED SHEH
SHAHABUDIN
Circular Measure
12 AZIZAH BT ISMAIL SMK PENANTI Differentiations
13 DASIMAH BT AHMAD SMK SERI BALIK PULAU Differentiations
14 ZURAINI BT ABDULLAH SMK PTG TOK JAYA Solution of Triangles
15 SITI AISHAH BT ABDUL
AZIZ
SMK DATUK HJ AHMAD
BADAWI
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