Acknowledgement: Additional Mathematics Project Work 4
Acknowledgement: Additional Mathematics Project Work 4
Acknowledgement: Additional Mathematics Project Work 4
Acknowledgement
First of all, we would like to express our gratitude to all those who have helped us
to do this project work and finish it on time.
Not to forget our parents who have provided us financially with all the things that
we need to use to do this project work and also for their moral advise. They also
supported and encouraged us to complete this task so that we will not procrastinate in
doing it.
Besides that, we would also like to thank each and every member of our group
and our other classmates who are also doing this project work. Although this project has
to be done individually but we cooperated while doing this project work through
disscussion and sharing of ideas to ensure our task will finish completely.
Last but not least, thank you to any party which is involved either directly or
indirectly in helping and guiding us to complete this project work. Thank you everyone.
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Objectives
The aims of carrying out this project work are:
Introduction
A Brief History of Statistic 2|Page
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Statistics Today
During the 20th century, the creation of precise instruments for agricultural
research, public health concerns (epidemiology, biostatistics, etc.), industrial
quality control, and economic and social purposes (unemployment rate,
econometry, etc.) necessitated substantial advances in statistical practices.
Today the use of statistics has broadened far beyond its origins.
Individuals and organizations use statistics to understand data and make
informed decisions throughout the natural and social sciences, medicine,
business, and other areas. Statistics is generally regarded not as a subfield of
mathematics but rather as a distinct, albeit allied, field. Many universities
maintain separate mathematics and statistics departments. Statistics is also
taught in departments as diverse as psychology, education, and public health.
Index Number
Index numbers are today one of the most widely used statistical indicators.
Generally used to indicate the state of the economy, index numbers are aptly
called ‘barometers of economic activity’. Index numbers are used in comparing
production, sales or changes exports or imports over a certain period of time.
The role-played by index numbers in Indian trade and industry is impossible to
ignore. It is a very well known fact that the wage contracts of workers in our
country are tied to the cost of living index numbers.
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of the industry. Some sectors might have increased their production more than
2.15 times while other sectors may have increased their production only
marginally.
1. Establishes trends
Index numbers when analyzed reveal a general trend of the phenomenon under
study. For eg. Index numbers of unemployment of the country not only reflects
the trends in the phenomenon but are useful in determining factors leading to
unemployment.
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1. Price Index
The most frequently used form of index numbers is the price index. A price
index compares charges in price of edible oils. If an attempt is being made to
compare the prices of edible oils this year to the prices of edible oils last year, it
involves, firstly, a comparison of two price situations over time and secondly, the
heterogeneity of the edible oils given the various varieties of oils. By constructing
a price index number, we are summarizing the price movements of each type of
oil in this group of edible oils into a single number called the price index. The
Whole Price Index (WPI). Consumer Price Index (CPI) are some of the popularly
used price indices.
2. Quantity Index
A quantity index measures the changes in quantity from one period to
another. If in the above example, instead of the price of edible oils, we are
interested in the quantum of production of edible oils in those years, then we are
comparing quantities in two different years or over a period of time. It is the
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quantity index that needs to be constructed here. The popular quantity index
used in this country and elsewhere is the index of industrial production (HP). The
index of industrial production measures the increase or decrease in the level of
industrial production in a given period compared to some base period.
3. Value Index
The value index is a combination index. It combines price and quantity
changes to present a more spatial comparison. The value index as such
measures changes in net monetary worth. Though the value index enables
comparison of value of a commodity in a year to the value of that commodity in a
base year, it has limited use. Usually value index is used in sales, inventories,
foreign trade, etc. Its limited use is owing to the inability of the value index to
distinguish the effects of price and quantity separately.
Index number Is a measure used to show the change of a certain quantity for a
stated period of time by choosing a specific time as the base year. In general an
index number is the comparison of a quantity at two different times and is
expressed as a percentage.
Q1
I= ×100
Q0
I = index number
Q 1 = quantity at specific time
Q
o = quantity at base time
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The composite index is the weighted mean for all the items in a certain situation.
∑ Wᵢ Iᵢ
Ī = ∑ Wᵢ
Ī = Composite index
W = weightage
I = index number
PART 1
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The prices of good sold in shops are vary from one shop to another. Shoppers
tend to buy goods which are not only reasonably priced but also give value for their
money. We had carried out a survey on four different items based on the following
categories which is food, detergent and stationery. The survey was done in three
different shops. Informations below shows the results from our research.
Question (a)
Picture
Stationary
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Food
Detergent
Question (b)
Data
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Question (c)
Graph
Food
14
12
Self Raising Flour
10
Sugar
8 Butter
6 Eggs
4
2
0
Giant H&L Everise
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Detergent
25
20
washing powder
dish washer
15
liquid bleach
tile cleaner
10
0
Giant H&L Everise
Stationery
18
16
14
pencil
12 highlighter
10 permenant marker
8 card indexing
6
4
2
0
Giant H&L Everise
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40
35
30
25
20 Giant
H&L
15 Everise
10
5
Everise
0
food H&L
detergent Giant
stationary
40
35
30
25
Giant
20 H&L
Everise
15
10
0
food detergent stationary
Question (d)
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Based on all the graph in question 1(C) , we can conclude that Giant
supermarket offers the lowest price for their customers. Then followed by H&L
supermarket and Everise supermarket. This is because the supplier of the giant
supermarket gives the special price for it as it buy by bulk. H&L supermarket offer the
normal price for their customer as it does not get special price from the supplier. While
Everise supermarket have to sold the items at the higher price because the shop buy
the items by bulk from Giant supermarket.
Other factors that influenced the prices of goods in the shops is such as the
location of the shop, the population of the customers, the status of the shop, the size of
the shop, and the rent for the shop.
Giant supermarket can offer the lowest price because it is situated at stratergic
place so indirectly this factor can attract customer buy at the mall. When there are many
customers, the demand of the items will be high and the mall can buy by bulk directly
with the supplier to get the special price. The status of the shop also influenced the
price of the goods sold. As example the shop with status mall will offer the lowest price
than the shop with status mini market. The size of the shop also will influenced the
price. When the size of the shop is bigger its mean it can sell many different items in the
shop. Indirectly the shop will known as one stop center and it will attract many
customers as the people nowadays are very busy. Giant supermarket is a bigmall and it
provides many items that we need in our life. Eventhough Giant supermarket have to
pay rent for the place, but it not gives too much effects to the price of goods sold as it
has many buyers.
H&L supermarket and Everise supermarket cannot offer the prices as Giant
supermarket because they are situated outside the urban area like Giant supermarket.
So the population of the customer will not be as many as customer in Giant
supermarket. These shops get the supply for their goods from Giant supermarket. Even
they buy by bulk with giant but their prices still will be higher than giant. The size of
these shop also small and cannot provide too much goods for their customers. They just
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sold basic needed for their customers. As they not have too much customers, so the
rent that they have to pay will influenced the price of the goods sold.
As a conclusion, there are many factors that affect the price of the goods solds in
a shop. So, we must be a smart customer to ensure we can get the lowest price. The
graph below will show the conclusion of the difference among the shops based upon the
shops grand total.
grand total
82.2
82
grand total
81.8
81.6
81.4
81.2
81
Giant H&L Everise
Question (e)
The item that has large price different among the shops is marker. Giant
supermarket sold it at RM 3.00. Everise supermarket sold it at RM3.90 while H&L
supermarket sold it at RM 3.60.
x́=
∑x
N
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σ =√ σ 2
Or
∑ x 2 − X́ ¿2
σ=
√ N
¿0.8498
The difference of the price of the marker in these three shops is maybe due to
the price given by the supplier to the shops. Giant supermarket can sold it at lowest
prices because the demand of the buyers for the the item is high so it can buy by bulk
with the supplier. So the shop can get the special price. The demand of the item in H&L
supermarket and Everise supermarket are low. This is because the customers are more
interested to buy the stationery items in mall or stationery shops as there are more
options to choose. So H&L supermarket and Everise supermarket cannot buy by bulk
the stationery items with their supplier.
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PART 2
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Every year our school organises a carnival to raise funds for the school. This
year our school plans to install air conditioners in the school library. Last year, during
the carnival, our class made and sold butter cakes. Because of the popularity of butter
cakes, our class has decided to carry out the same project for this year’s carnival.
Question (a)
From the data in Part 1, we would go to Giant Supermarket to purchase the ingredients
that are needed for the butter cakes. This is because Giant Supermarket offers the
lowest price among the shops for the items we want to buy. So our class will able to sell
the butter cakes at a low price and gain some profits from the sale. Futhermore, Giant
Supermarket is located not far from our school. So it is easier for my friends and I to go
there and shop for the ingredients.
Question (b)
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Question (b)(i)
Calculate Price Index
P1
I= ×100
P0
Self raising-four
1.00
¿ ×100
0.90
¿ 111.11
Sugar
0.36
¿ × 100
0.35
= 102.86
Butter
3.50
¿ ×100
3.30
=106.06
Eggs (Grade A)
1.37
¿ ×100
1.25
=109.60
Question (b)(ii)
Composite index
∑ Wᵢ Iᵢ
Ī = ∑ Wᵢ
=107.74
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To calculate composite index, firstly use the formula of composite index. Get the value
for the formula. Let the quantity per cake be as weightage, W. Obtain the price index
from the calculation in question (i). Then, calculate by using the calculator.
Question (b)(iii)
On 2009, RM 15.00
On 2010, suitable price is :
x
×100=107.74 %
15
x × 100=107.74 × 15
1616.10
x=
100
x=16.20
Thus, the suitable price for the butter cake for the year 2010 is RM 16.20. The
increase in price is also suitable because of the rise in the price of the ingredients.
Question (c)
For common usage, air conditioner is rated according to horse power (1HP),
which is approximately 700W to 1000W of electrical power. It is suitable for a
room size 1000ft which is around 27m of volume. If we buy an air conditioner
with 3HP, it is suitable for a room around 81m.
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(iii) Our class intends to sponsor one air conditioner for the school library. The
calculation below is to find how many butter cakes we must sell in order to
buy the air conditioner.
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PART 3
Question (a)
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Question (b)
Composite Index
∑ Wᵢ Iᵢ
Ī = ∑ Wᵢ
115 ( 12 )+ 100 ( 5 )+115 ( 3 ) +100 (2 )+100 ( 6 )+115 ( 8 ) +130( 4)
=
(12+5+3+2+ 6+8+ 4)
4465
¿ =111.625
40
The total price for the year 2010 increase by 111.625%. This is because some price in
the year 2009 increased in the year 2010.
Question (c)
The change in the composite index for the estimate budget for the carnival from the
year 2009 to the year 2010 is the same as the change from the year 2010 to the year
2011. Below are the calculation to determine the composite index of the budget for the
year 2011 based on the year 2009.
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=111.625
=111.625
1
Í 2011 =111.625 ×111.625×
2009
100
Í 2011 =124.60
2009
Further Exploration
Air Pollution Index
Air pollution is the introduction of chemicals, particulate matter, or biological
materials that cause harm or discomfort to humans or other living organisms, or
damages the natural environment into the atmosphere.
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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.
Indices by location
South Korea
The Ministry of Environment of South Korea uses the Comprehensice Air-quality Index
(CAI) to describe the ambient air quality based on health risk of air pollution. The index
aims to help the public easily understand air quality level and protect the health of
people from air pollution. - The CAI has values of 0 through 500, which are divided into
six categories. The higher the CAI value, the greater the level of air pollution. - Of
values of the five air pollutants, the highest is the CAI value.
0-50 Good A level that will not impact patients suffering from diseases
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101- Unhealthy for A level that may have harmful impacts on patients and
150 sensitive groups members of sensitive groups.
Malaysia
The air quality in Malaysia is reported as the API or Air Pollution Index. Four of the
index's pollutant components (i.e., carbon monoxide, ozone, nitrogen dioxide and sulfur
dioxide) are reported in PM10 particulate matter is reported in μg/m³.
Unlike the American AQI, the index number can exceed 500. Above 500, a state of
emergency is declared in the reporting area. Usually, this means that non-essential
government services are suspended, and all ports in the affected area closed. There
may also be a prohibition on private sector commercial and industrial activities in the
reporting area excluding the food sector.
Index Values* Levels of Health Cautionary Statements
0-50 Good None
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A comparison of three major U.S. stock indices: the NASDAQ Composite, Dow Jones
Industrial Average, and S&P 500. All three have the same height at March 2007. Notice
the large dot-com spike on the NASDAQ, a result of the large number of tech.
companies on that index.
Types of indices
Stock market indices may be classed in many ways. A 'world' or 'global' stock market
index includes (typically large) companies without regard for where they are domiciled
or traded. Two examples are MSCI World and S&P Global 100.
The concept may be extended well beyond an exchange. The Dow Jones Total Stock
Market Index, as its name implies, represents the stocks of nearly every publicly traded
company in the United States, including all U.S. stocks traded on the New York Stock
Exchange (but not ADRs) and most traded on the NASDAQ and American Stock
Exchange. Russell Investment Group added to the family of indices by launching
the Russell Global Index.
More specialised indices exist tracking the performance of specific sectors of the
market. The Morgan Stanley Biotech Index, for example, consists of 36 American firms
in the biotechnology industry. Other indices may track companies of a certain size, a
certain type of management, or even more specialized criteria — one index published
by Linux Weekly News tracks stocks of companies that sell products and services
based on the Linux operating environment.
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Index versions
Some indices, such as the S&P 500, have multiple versions.[1] These versions can differ
based on how the index components are weighted and on how dividends are accounted
for. For example, there are three versions of the S&P 500 index: price return, which only
considers the price of the components, total return, which accounts for dividend
reinvestment, and net total return, which accounts for dividend reinvestment after the
deduction of a withholding tax. As another example, the Wilshire 4500 and Wilshire
5000 indices have five versions each: full capitalization total return, full capitalization
price, float-adjusted total return, float-adjusted price, and equal weight. The difference
between the full capitalization, float-adjusted, and equal weight versions is in how index
components are weighted.
Uses and Importance of Air Pollution Index and Stock Market Index
As everyone can see, the air pollution index is use by the government to
measure the air quality index and to detect any pollutants in our country’s air. This is to
ensure the air is clean and safe for us to inhale. Besides that, an early warning can be
given to us if the air pollution is too high for us to get out of our homes. This warning is
given based upon readings and interpretations of the air pollution index.
As for the stock market index, it is mainly for the business entrepreneurs. This type of
index is used to determine the outcome of a stock market and also the conclusion of a
stock market. The stock market index is important because a country’s economical state
sometimes depend on it.
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Reflection
After spending countless hours to finish this project and also sacrificing our
time to complete this task, we have learnt a few things.
Additional Mathematics...
From the day we were born...
From the day we were able to holding pencil...
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in our life...
But after countless of hours...
Countless of days ...
Countless of nights ...
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WE
Additional
mathemati
cs!!! 33 | P a g e
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Conclusion
After doing many researches, answering questions, drawing graphs and some
problem solving, we learnt that the usage of index number is important in daily life.
Although it is not widely used in markets but it is needed in interpreting the
condition of the surrounding like the air or the water especially in conducting an air-
pollution survey. In conclusion, statistics is a daily life necessities. Without it,
surveys can’t be conducted, the stock market can’t be interpreted and many more.
So, we should be thankful of the people who have contributed in the idea of
statistics which has helped us in our daily lives.
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