Acknowledgement

First of all, I would like to say Alhamdulillah, for giving me the strength and health
to do this project work and finish it on time.
Not forgotten to my parents for providing everything, such as money, to buy anything
that are related to this project work, their advise, which is the most needed for this project
and facilities such as internet, books, computers and all that. 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 to my teacher, Mdm Fazilah for guiding me throughout this
project. Even I had some difficulties in doing this task, but she taught me patiently until
we knew what to do. She tried and tried to teach me until I understand what I¶m
supposed to do with the project work.
Besides that, my friends who always supporting me. Even this project is individually but
we are cooperated doing this project especially in disscussion and sharing ideas to ensure
our task will finish completely.
Last but not least, any party which involved either directly or indirect in
completing this project work. Thank you everyone.

Objectives
The aims of carrying out this project work are:
i. To apply and adapt a variety of problem-solving strategies to solve
problems.
ii. To improve thinking skills.
iii. To promote effective mathematical communication.
iv. To develop mathematical knowledge through problem solving
in a way that increases students¶ interest and confidence.
v. To use the language of mathematics to express mathematical
ideas precisely.
vi. To provide learning environment that stimulates and enhances
 effective learning.
vii. To develop positive attitude towards mathematics

Introduction
By the 18th century, the term " statistics" designated the systematic collection of
demographic and economic data by states. In the early 19th century, the meaning of
"statistics" broadened, then including the discipline concerned with the collection,
summary, and analysis of data. Today statistics is widely employed in government,
business, and all the sciences. Electronic computers have expedited statistical
computation, and have allowed statisticians to develop "computer -intensive" methods.
The term "mathematical statistics" designates the mathematical theories of probability
and statistical inference, which are used in statistical practice. The relation between
statistics and probability theory developed rather late, however. In the 19th century,
statistics increasingly used probability theory, whose initial results were found in the17th
and 18th centuries, particularly in the analysis of games of chance (gambling). By 1800,
astronomy used probability models and statistical theories, particularly the method of
least squares, which was invented by Legendre and Gauss. Early probability theory and
statistics was systematized and extended by Laplace; following Laplace, probability and
statistics have been in continual development.
In the 19th century, social scientists used statistical reasoning and probability models to
advance the new sciences of experimental psychology and sociology; physical scientists
used statistical reasoning and probability models to advance the new sciences of
thermodynamics and statistical mechanics.
The development of statistical reasoning was closely associated with the development
of inductive logic and the scientific method. Statistics is not a field of mathematics but an
autonomous mathematical science , like computer science or operations research. Unlike
mathematics, statistics had its origins in public administration and maintains a special
concern with demography and economics. Being concerned with the scientific method
and inductive logic, statistical theory has close association with the philosophy of science
; with its emphasis on learning from data and making best predictions, statistics has great
overlap with the decision science and microeconomics. With its concerns with data,
statistics has overlap with information science and computer science .

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 stati stics 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 µbarometers 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.
By definition, an index number is a statistical measure designed to show changes in a
variable or a group or related variables with respect to time, geographic location or other
characteristics such as income, profession, etc.

Characteristics of an Index Numbers

1. These are expressed as a percentage: Index number is calculated as a ratio of

the current value to a base value and expressed as a percentage. It must be clearly
understood that the index number for the base year is always 100. An index number is
commonly referred to as an index.
2. Index numbers are specialized averages: An index number is an average with a
difference. An index number is used for purposes of comparison in cases where the series
being compared could be expressed in different units i.e. a manufactured products index
(a part of the whole sale price index) is constructed using items likeDairy Products,
Sugar, Edible Oils, Tea and Coffee, etc. These items naturally are expressed in different
units like sugar in kgs, milk in liters, etc. The index number is obtained as a result of an
average of all these items, which are expressed in different units. On the other hand,
average is a single figure representing a group expressed in the same units.