Professional Documents
Culture Documents
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FOREWARD
First of all, I would like to say Alhamdulillah, 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, Mrs. Rosmini
bt Abd. Hamid @ mustapha 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 wit h the project
work.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.
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CONTENT
Introduction ______________________________
Foreward ______________________________
Part 1 ______________________________
Part 2 ______________________________
Part 3 ______________________________
Reflection ______________________________
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Index numbers are commonly used statistical device for measuring the
combined fluctuations in a group r elated 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 th e 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 obtai n 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 µnet¶ 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 com monly 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
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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 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.
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Part 1
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Auestion c
(b) Record the items and their prices systematically as in
Table 1.Since items maybe differently packed,be sure to use
consistent measurements for each item selected so that
comparison can be done easily and accurately.
Auestion:
(c) Create at least two suitable graphical representations (the use of ICT is encouraged) to
compare and contrast the price of the items chosen.
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Auestion
(e) Identify an item that has a large price difference
among the shops. Calculate the mean and standard deviation
of that particular item. Hence, suggest and discuss possible
reasons for the price difference.
Answer:
Liquid dishwasher:
Mean=
=17.47
Standard deviation
= ¥( ²)/N ± ( )²
=¥ ² ² ²
- (17.47)²
=0.97
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Part 2
Every year SMK Indah organises a carnival to raise funds
for the school. This year the school plans to install air
conditioners in the school library. Last year, during the
carnival, your class made and sold butter cakes. Because
of the popularity of the butter cakes,your class has decided
to carry out the same project for this year¶s carnival.
Auestion
(a) Suggest a shop from Part 1 which you would go to purchase the ingredients
for the butter cakes.State and discuss your reasons for purchasing from the
shop you suggested.
Answer:
Mydin.This is because the total price of the ingredients
from this shop is the lowest from the three shops.
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