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Contents Objectives Foreward History Part 1 Part 2 Part 3 Further Exploration Reflection Pages 2 3 4-5 6-12 13-16 17-18 19-26 27

OBJECTIVES We students taking Additional Mathematics are required to carry out a project work while we are in Form 5. This year the Curriculum Development Division, Ministry of Education has prepared four tasks for us. We are to choose and complete only ONE task based on our area of interest.Each of us are expected to submit an individually written report.Upon completion of the Additional Mathematics Project Work,we are to gain valuable experiences and able to: Apply and adapt a variety of problem solving strategies to solve routine and nonroutine problems; Experience classroom environments 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 environments 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 problems and hence develop positive attitude towards mathematics. Train ourselves not only to be independent learners but also to collaborate, to cooperate, 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 more creative and innovative Realize the importance and the beauty of mathematics

FOREWARD First of all, I would like to thank God for giving me the strength and health to do this project work. Not forgotten my parents for providing everything, such as money, to buy anything that are related to this project work and their advise, which is the most needed for this project. Internet, books, computers, and etc. They also supported me and encouraged me to complete this task so that I will not procrastinate in doing it. Then I would like to thank my teacher, Pn.Syibratul 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 projectwork.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.

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 (i) price, (ii) quantity, (iii) value and (iv) 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.

Index Numbers Index numbers are statistical measures designed to show changes in a variable or group of related variables with respect to time, geographic location or other characteristics such as income, profession, etc. A collection of index numbers for different years, locations, etc., is sometimes called an index series.

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.

PART 1
The price of goods sold in shop varies from one shop to another. Shoppers tend to buy goods which are not only reasonably price but also give value for their money. You are required to carry out a survey on four different items based on the following categories: food, detergent and stationery. The survey should be done in three different shops.

a) Collect picture, newspaper cuttings or photos on item that you have chosen. Design a collage to illustrate the chosen item.

Food:

Detergent:

Stationary:

(b) Record the items and their prices systematically as in Table 1(a), 1(b) and 1(c).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.

Category

Item Pasar Raya Shaan

Price(RM) Tesco 4.20 2.30 4.60 1.85 12.95 8.80 9.70 14.50 13.80 46.80 0.70 9.60 1.70 4.90 16.90 76.65 Giant 4.00 2.10 4.40 1.75 10.85 9.00 9.55 14.55 14.10 47.20 0.70 9.00 1.60 4.50 15.80 73.85

Food

Self-rising flour Sugar Butter Eggs (5 eggs) Total Price

3.90 2.10 4.50 1.80 12.30 8.90 9.70 14.60 13.90 47.10 0.80 9.40 1.90 4.80 16.90 76.30

Detergent

Kuat Harimau Trojan Breeze Top Total Price

Stationary

Eraser Pencil Highlighter Pen Total Price Grand Total

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

Food
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Self-rising flour Sugar Butter Pasar Raya Shaan Tesco Giant

Detergent
16 14 12 10 Pasar Raya Shaan 8 6 4 2 0 Trojan Breeze Top Tesco Giant

Stationary
12 10 8 Pasar Raya Shaan 6 4 2 0 Pencil Highlighter Pen Tesco Giant

(d) Based on the graphical representations that you have constructed in Part 1(c), interpret, discuss and draw conclusion. Comments your findings.

Based on the graphical representations that I have constructed in Part 1(c), it is shown that there are large and small differences among the prices of items in each category between the shops. In the food category, the smallest price difference is of those of eggs, while the highest is those of self-rising flour. Besides food, detergent also shows a large price difference between its items. Among them is the price of Kuat Harimau and Breeze. On the other hand, stationery items dont have any obvious price difference. The graph also show that most of the items that are high priced comes from Tesco, while the lowest price items come from Giant. The graph will show the conclusion of the difference among the shops based upon the shops grand total.

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Grand Total
90 80 70 60 50 40 30 20 10 0 Pasar Raya Shaan Tesco Giant Stationary Detergent Food

(e) Identify an item that has large price difference among the shops. Suggest and discuss possible reasons for the price difference. Pen: Pasar Raya Shaan Tesco Giant -RM4.80 -RM4.90 -RM4.50

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Reason of difference in price: Bulk buying from the retailer gives the lower price. Giant buys a large stock from the factory of the pen so they might have got a greater discount than the normal grocery shops like Tesco and Pasar Raya Shaan. Giant offers better discount and sale than most grocery shops.

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Part 2
Every year, SMK Setia Berjaya organizes a carnival to raise funds for the school. This year the school plans to install air conditions in the school library. Last year, during the carnival, your class made and sold butter cakes. Because the popularity of the butter cakes, your class has decided to carry out the same project for 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. I suggest getting the ingredients from Giant. It has the best prices for all the ingredients I need to make butter cakes. Giant is also not very far from my house so I can easily get the ingredients without much trouble. It is also open until 12am. This allows me to buy an extra late at night if I did not get enough to make the cakes. b) Complete table 2 with the prices of the items found in the supermarket that you have chosen.

Ingredients Self rising flour Sugar Butter Eggs

Quantity per cake 250g 250g 250g 5 eggs (300g)

Price in the year 2012 (RM) 0.90 0.35 3.30 1.25

Price in the year 2013 (RM) 1.00 0.53 4.40 1.75

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i)

Calculate the price index for each of the ingredients in table 2 for the year 2013. Price in the year 2013 (RM) 1.00 0.53 4.40 1.75 Price Index 111 151 133 140

Price in the year 2012 (RM) 0.90 0.35 3.30 1.25

ii)

Calculate the composite index for making a butter cake in the year 2013 based on the year 2012. Discuss how you obtained your answers.

Ingredients

Price index for the year 2013 based on the year 2012

Weightage,

Self rising flour Sugar Butter Eggs

111 151 133 140

0.25 0.20 0.25 0.30 1.00

27.75 30.20 33.25 42.00 133.2

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iii)

In the year 2012, the butter cake was sold at RM25.00 each. Suggest a suitable selling price for the butter cake in the year 2013. Give reasons for your answer.

On 2012: RM25 On 2013:

Thus, the suitable price of selling a butter cake in the year 2013 is RM33.30. The increase in price is also suitable because of the rise of price of ingredients.

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c) i)

Find out from reliable sources how to determine suitable capacity of air

conditioner to be installed based on volume/size of a room. The capacity of air conditioner depends on many factors like number of windows, doors, direction of room walls, sealing etc.. Experts do heat load calculation for determining capacity of ACs for commercial use. (Source: WikiAnswers.com) 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 for your library. The volume of the library is . This is calculated by finding the breadth, length and height

of the school library. The breadth of the library is 10m. Its length is 25m and the height is 3.5m. The number of air conditioners needed will be four. This is because one air conditioner will be able to cool in half an hour.

The cost of installing four air conditioners: RM4000. Cost of four air conditioners: RM3600 Service charge: RM400

To sponsor the installation of one air conditioner, my class must spend at least RM1000. Cost of making one butter cake: RM28.00 Profit of selling one butter cake: RM5.30 Number of butter cakes to be sold: : 189 188.68

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Part 3
a) Complete table 3 based on the information given. Expenditure Food Games Transportation Decorations Prizes Tents Miscellaneous Amount in 2012 (RM) 1500 600 400 200 600 900 400 Amount in 2013(RM) 1770 600 472 200 600 1062 544

b) Calculate the composite index for the estimated budget of the carnival in the year 2013 based on the year 2012. Comment on your answer. Ingredients Price index for the year 2013 based on the year 2012 Food Games Transportation Decorations Prizes Tents Miscellaneous 118 100 118 100 100 118 136 15 6 4 2 6 9 4 46 1770 600 472 200 600 1062 544 5248 Weightage,

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The composite index of the estimate budget of carnival in the year 2013 based on 2012 is 114.1 c) The change in the composite index for the estimated budget for the carnival from the year 2012 to the year 2013 is the same as the change from the year 2013 to the year 2014. Determine the composite index of the budget for the year 2014 based on the year 2012. Composite index of 2014 based on 2012

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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. Obtain information from the internet or other reliable source on the importance of two different types of index numbers of your choice. Elaborate the use the importance of these index numbers in daily life situations.

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Stock Market Index

A stock index or stock market index is a method of measuring the value of a section of the stock market. It is computed from the prices of selected stocks (sometimes a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments. An index is a mathematical construct, so it may not be invested in directly. But many mutual funds and exchange-traded funds attempt to "track" an index (see index fund), and those funds that do may not be judged against those that do not. Types of indexes 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. A 'national' index represents the performance of the stock market of a given nationand by proxy, reflects investor sentiment on the state of its economy. The most regularly quoted market indices are national indices composed of the stocks of large companies listed on a nation's largest stock exchanges, such as the American S&P 500, the Japanese Nikkei 225, and the BritishFTSE 100. The concept may be extended well beyond an exchange. The Wilshire 5000 Index, the original total market index, 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 or limited partnerships), NASDAQ and American Stock Exchange. Russell Investment Group added to the family of indices by launching the Russel Global Index.[1] More specialized indices exist tracking the performance of specific sectors of the market. Some examples include the Wilshire US REIT which tracks more than 80 American real estate investment trusts and the Morgan Stanley Biotech Index which 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. Index Version Some indices, such as the S&P 500, have multiple versions.[2] These versions can differ based on how the index components are weighted and on how dividends are accounted for. For example,
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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.[3] 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.[4][5] Criticism of capitalization-weighting The use of capitalization-weighted indices is often justified by the central conclusion of modern portfolio theory that the optimal investment strategy for any investor is to hold the market portfolio, the capitalization-weighted portfolio of all assets. However, empirical tests conclude that market indices are not efficient. This can be explained by the fact that these indices do not include all assets or by the fact that the theory does not hold. The practical conclusion is that using capitalization-weighted portfolios is not necessarily the optimal method. As a consequence, capitalization-weighting has been subject to severe criticism (see e.g. Haugen and Baker 1991, Amenc, Goltz, and Le Sourd 2006, or Hsu 2006), pointing out that the mechanics of capitalization-weighting lead to trend-following strategies that provide an inefficient risk-return trade-off. Also, while capitalization-weighting is the standard in equity index construction, different weighting schemes exist. First, while most indices use capitalization-weighting, additional criteria are often taken into account, such as sales/revenue and net income (see the Guide to the Dow Jones Global Titan 50 Index, January 2006). Second, as an answer to the critiques of capitalization-weighting, equity indices with different weighting schemes have emerged, such as "wealth"-weighted (Morris, 1996), fundamental-weighted (Arnott, Hsu and Moore 2005), diversity-weighted (Fernholz, Garvy, and Hannon 1998) or equal-weighted indices. A material mis-conception about Market Indices is that their peaks and troughs resonate with returns to investors in equity instruments. Rather, Market indices are indicators of the STATE OF CAPITAL MARKETS in absolute terms they, indicates the flow of capital in or out of the markets and the bargaining power of the participant. Effectively, market indices are a compound factor of 3 (three) variable components:- 1. The quantity of Share (whether Free Float or Total issued) ; and 2. The prices of the Equity Shares ; and 3. The constituent companies of the Market
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Index each influencing the determination of the state of capital market (and hence the marked index) in its own manner. [7] Indices and passive investment managment There has been an accelerating trend in recent decades to create passively managed mutual funds that are based on market indices, known as index funds. Advocates claim that index funds routinely beat a large majority of actively managed mutual funds; one study[citation needed] claimed that over time, the average actively managed fund has returned 1.8% less than the S&P 500index - a result nearly equal to the average expense ratio of mutual funds (fund expenses are a drag on the funds' return by exactly that ratio). Since index funds attempt to replicate the holdings of an index, they obviate the need for and thus many costs of the research entailed in active management, and have a lower churn rate (the turnover of securities which lose fund managers' favor and are sold, with the attendant cost of commissions and capital gains taxes). Indices are also a common basis for a related type of investment, the exchange-traded fund or ETF. Unlike an index fund, which is priced daily, an ETF is priced continuously, is optional, and can be sold short. Ethical stock market indices A notable specialized index type is those for ethical investing indices that include only those companies satisfying ecological or social criteria, e.g. those of The Calvert Group, KLD, FTSE4Good Index, Dow Jones Sustainability Index and Wilderhill Clean Energy Index. In 2010, the OIC announced the initiation of a stock index that complies with Islamic law's ban on alcohol, tobacco and gambling. Other such equities, such as the Dow Jones Islamic Market World Index, already exist.[8] Another important trend is strict mechanical criteria for inclusion and exclusion to prevent market manipulation, e.g. in Canada when Nortel was permitted to rise to over 30% of the TSE 300 index value. Ethical indices have a particular interest in mechanical criteria, seeking to avoid accusations of ideological bias in selection, and have pioneered techniques for inclusion and exclusion of stocks based on complex criteria. Another means of mechanical selection is markto-future methods that exploit scenarios produced by multiple analysts weighted according to probability, to determine which stocks have become too risky to hold in the index of concern.

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Critics of such initiatives argue that many firms satisfy mechanical "ethical criteria", e.g. regarding board composition or hiring practices, but fail to perform ethically with respect to shareholders, e.g. Enron. Indeed, the seeming "seal of approval" of an ethical index may put investors more at ease, enabling scams. One response to these criticisms is that trust in the corporate management, index criteria, fund or index manager, and securities regulator, can never be replaced by mechanical means, so "market transparency" and "disclosure" are the only longterm-effective paths to fair markets.

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Air Pollution Index Air pollution index or also known as 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. In 1968, the National Air Pollution Control Administration undertook an initiative to develop an air quality index and to apply the methodology to Metropolitan Statistical Areas. The impetus was to draw public attention to the issue of air pollution and indirectly push responsible local public officials to take action to control sources of pollution and enhance air quality within their jurisdictions. Jack Fensterstock, the head of the National Inventory of Air Pollution Emissions and Control Branch, was tasked to lead the development of the methodology and to compile the air quality and emissions data necessary to test and calibrate resultant indices.[1] The initial iteration of the air quality index used standardized ambient pollutant concentrations to yield individual pollutant indices. These indices were then weighted and summed to form a single total air quality index. The overall methodology could use concentrations that are taken from ambient monitoring data or are predicted by means of a diffusion model. The concentrations were then converted into a standard statistical distribution with a preset mean and standard deviation. The resultant individual pollutant indices are assumed to be equally weighted, although values other than unity can be used. Likewise, the index can incorporate any number of pollutants although it was only used to combine SOx, CO, and TSP because of a lack of available data for other pollutants. While the methodology was designed to be robust, the practical application for all metropolitan areas proved to be inconsistent due to the paucity of ambient air quality monitoring data, lack of agreement on weighting factors, and non-uniformity of air quality standards across geographical and political boundaries. Despite these issues, the publication of lists ranking metropolitan areas

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achieved the public policy objectives and led to the future development of improved indices and their routine application.

Similar to Hong Kong, the air quality in Malaysia is reported as the API or Air Pollutant Index. Four of the index's pollutant components (i.e., carbon monoxide, ozone, nitrogen dioxide and sulfur dioxide) are reported in ppmv but PM particulate matter is reported in g/m3. This scale below shows the Health classifications used by the Malaysian government.

API

Air Pollution Level

0 - 50

Good

51 - 100

Moderate

101 - 200

Unhealthy

201 - 300

Very unhealthy

301+

Hazardous

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If the API exceeds 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 are closed. There may also be a prohibition on private sector commercial and industrial activities in the reporting area excluding the food sector. The highest API value ever recorded was 839 in Kuching on 23 September 1997 during the 1997 Southeast Asian haze. Uses and Importance of Index Number As everyone can see the air pollution index is used by the government to measure the air quality index and to detect any pollutants in our countrys 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 is 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 countrys economical state sometimes depend on it.

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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. After spending countless hours, days and night to finish this project and also sacrificing my time, video games and mangas in this one week period, there are several things I can say. Additional Mathematics... From the day I born... From the day I was able to holding pencil... From the day I start learning... And... From the day I heard your name... I always thought that you will be my greatest obstacle and rival in excelling i n m y l i f e . . . But after countless of hours... Countless of days... Countless of nights... After sacrificing my precious time just for you... Sacrificing my Computer Games... Sacrificing my Video Games... Sacrificing my Facebook... Sacrificing my Internet... Sacrificing my Anime... Sacrificing my Manga... I realized something really important in you... I really love you... You are my real friend... You my partner... You are my soul mate... I LOVE U ADDITIONAL MATHEMATICS...
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