11 INDEX NUMBER

1.1 Calculate Index number 1 The student population of school A increased from 768 students in year 1999 to 960 students in year 2002. Calculate the index number to show the change in the student population in year 2002 based on year 1999. 2 The student population of a school B decreased from 800 students in year 2000 to 720 students in year 2002. Calculate the index number to show the change in the student population in year 2002 based on year 2000.

[125]

[90]

3 Company A sold 504 units of a certain model of DVD player in year 2001. It only managed to sell 441 units in year 2003. Calculate the index number in year 2003 based on year 2001.

Company B sold 910 units of a certain model of television in year 2002. It managed to sell 1021 units in year 2003. Calculate the index number in year 2003 based on year 2002.

[87.50]

[112.2]

1.2 Calculate price index 1 Given Price of a semi auto Year washing machine RM480 2002 RM560 2003 Calculate Price index for the year (a) 2003 based on year 2002 (b) 2002 based on year 2003 Round off your answer to the nearest integer. 2 Given Cost of cell phone Year RM 5010 1992 RM 1550 2005 Calculate Price index for the year (a) 2005 based on year 1992 (b) 1992 based on year 2005 Round off your answer to the nearest integer.

[117, 86] Index Number

[31,323]

169

3 The price of a plate of fried noodles in the year 1998 and the year 2005 are RM2.40 and RM3.00 respectively. Calculate the price index for a plate of fried noodles in the year 1998 based on the year 2005.

A particular pen cost RM0.80 in the year 1997 and RM0.90 in the year 1999. Calculate the price index of the pen in the year 1999 based on year 1997.

[80]

[112.5]

5 Given Price Item Price in Price in index in 1990 1995 1995 based on 1990 P RM2.00 RM2.50 x Q RM6.00 RM9.00 y Find the value of (i) x (ii) y

Given Price index in 2005 based on 2000 R RM15.00 RM16.50 x S RM24.00 RM30.00. y Find the value of (iii) x (iv) y Item Price in 2000 Price in 2005

[ 125, 150]

[ 110 , 125]

7 Given Price per kg (RM) Year 2001 P 0.80 Q 0.45 Find the value of (i) x (ii) y Year 2004 1.05 0.70

Given Price per kg (RM) Year 2000 P 12.0 0 Q 14.1 0 Find the value of (iii) x (iv) y Year 2003 11.85 15.60

x y

x y

[131.3, 155.6] [98.75 , 110.6] Index Number

170

9 The diagram below shows the price indices of three types of house.
Year house Terrace Bungalow Apartment 1995 (1990=100) 160 q 175 2000 (1990=100) 240 180 r 2000 (1995=100) p 200 140

1 0

The diagram below shows the price indices of three types of fruit. 2003 2003 Year 1996 (1992=100 (1992=100 (1996=100) house
) )

Find the value of p, q and r.

Banana 125 150 Rambutan q 150 Durian 110 r Find the value of p, q and r.

p 120 135

[150, 90, 245] [120, 125, 148.5]

1.3 Find Q0 or Q1 given relevant information 1 The price of a plate of fried noodles in year 2005 was RM3.00 The price index for a plate of fried noodles in the year 1998 based on the year 2005 was 80. Calculate the price of the fried noodle in year 1998.. 2 A particular pen cost RM0.80 in the year 1997 and the price index of the pen in the year 1999 based on year 1997 was 112.5. Calculate the price for that particular pen in year 1999.

[RM2.40]

[RM0.90]

3 The average monthly phone bill for a school in the year 2000 was RM60.00. The price index of the phone bill was 125 in the year 2004, using year 2000 as the base year. Calculate the average monthly phone bill for the school in the year 2004.

4 Hanims total salary in the year 1996 is RM12200. The price index for Hanims total salary is 134 in the year 2000 based on the year 1996. Calculate Hanims total salary in the year 2000.

Index Number

171

[RM75]

[RM16,348]

5 The price for 1 kg of salt in the year 2002 was RM1.20. The price index of 1 kg of salt in the year 2002 using year 2001 as the base year was 150. Calculate the price of 1 kg of salt in the year 2001.

6 A companys profits from online sales in the year 2002 were RM1.8 million. The price index of the profit from online sales through internet for the company in year 2002 based on year 2001 is 120. Calculate the profits from online sales in the year 2001.

[RM0.80]

[RM1.5 million]

7 The price indices of an item in year 1987 and 1999 based on year 1996 were 105 and 120 respectively. If the price of the same item in year 1999 was RM50.40, find the price of the item in year 1987.

8 The price index for a scientific calculator in the year 1998 and the year 2000 are 130 and 145 respectively when the year 1985 is used as the base year. Find the price of the scientific calculator in the year 1998 if the price in the year 2000 is RM58.00

[RM44.10]

[RM52]

2.1 Calculate composite index 1 The table below shows the index numbers and the weightages of three items. Calculate the composite index of all the items. Item A B C Index 105 120 116 number weightage 4 1 5 2 The table below shows the index numbers and the weightages of three items. Calculate the composite index of all the items. Item A B C Index 117 105 120 number weightage 3 1 2

Index Number

172

[112]

[116]

The table below shows the price indices of four types of food items in year 2000 based on year 1995, together with their respective weightages. Food Item Price weightage Index Meat 120 8 Rice 110 7 Milk 130 2 vegetable 90 3 Calculate the composite index of all the food items in year 2000 based on year 1995.

The table below shows the price indices of four types of magazines in year 2002 based on year 2000, together with their respective weightages. Magazine Price Index weightage EDGE 115 3 DIGEST 105 6 TRADING 85 7 WOMEN 180 4 Calculate the composite index of all the magazines in year 2002 based on year 2000.

[113]

[114.5]

Index Number

173

The table 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 Percentage of Index in usage (%) year 2002 based on year 1999 P 115 20 Q 125 40 R 120 10 S 85 30 Calculate the composite index of all the items in year 2002 based on year 1999.

The table 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 pie. Item Price Index Percentage of in year 2004 usage (%) based on year 2000 P 80 20 Q 120 30 R 110 10 S 85 40 Calculate the composite index of all the items in year 2004 based on year 2000.

[110.5]

[97]

2.2 Finding index number or weightage given relevant information 1 The table below shows the price index and the weightages of three types of item in the year 1997 using 1993 as the based year. Item Price index Weightage P 105 x Q 120 1 R 116 5 The composite index of all the items in year 1997 based on year 1993 was 112. Find the value of x. 2 The table below shows the price indices and the weightage of four types of food for the year 2000 using 1995 as the base year. Food Price index Weightage chicken 123 7 fish 115 p Beef 138 5 prawn 148 3 The composite index of the four types of food for the year 2000 based on year 1995 was 128.5. Calculate the value for p

Index Number

174

[4]

[5]

The table below shows the price index and the weightages of three types of item in the year 2001 using 1999 as the based year. Item Price index Weightage W a 3 X 90 2 Y 110 5 The composite index of all the items in year 2001 based on year 1999 was 133. Find the value of a.

The table below shows the price indices of four types of bag sold by a trader for the year 1998 using 1995 as the base year. Bag Price Monthly index expenditure in year 1998(RM) A x 3000 B 122 4000 C 119 5000 D 110 2000 The composite index of the four types of bag for the year 1998 based on year 1995 was 113. Calculate the value for x

[200]

[95]

The table 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 Percentage of Index in usage (%) year 2002 based on year 1999 P 115 20 Q 125 p R x 10 S 85 30 The composite index of all the items in year 2002 based on year 1999 was 110.5. Find the value of (i) p (ii) x

The table 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 pie. The composite index of all the items in year 2004 based on year 2000 was 97 Item Price Index Percentage of in year 2004 usage (%) based on year 2000 P 80 20 Q 120 30 R 110 x S y 40 Calculate the value for (i) x (ii) y

Index Number

175

[40, 120]

[ 10, 85]

2.3

Solve problems involving index number and composite index 1. Table below shows the prices, price indices and the weightage for Mr. Loos various expenditures.

expenditure Food Transport Clothing Utility Rental 2000 900 x 300 600 250

Price 2003 1089 480 336 y 275

Price index 121 120 z 117 110

Weightage 10 5 4 6 3

Find (a) the value for x, y and z (b) The composite index for the year 2003 using year 2000 as the based year. (c) Mr. Loos monthly expenditure in year 2003 was RM4200.00. Find his corresponding monthly expenditure in the year 2000.
Answer :[RM400, RM702, 112. 117.5 RM3574.47]

2. Table below shows the prices and the price indices for the four ingredients, P,Q,R and S, used in making
biscuits of a particular kind. Ingredients P Q R S Price per kg (RM) Year 2001 0.80 2.00 0.40 z Year 2004 1.00 y 0.60 0.40 Price index for the year 2004 based on the year 2001 x 140 150 80

Diagram below show a pie chart which represents the relative amount of the ingredients P,Q,R and S, used in making these biscuits.

(a) Find the value of x, y and z. (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 of making these biscuits in the year 2001 if the cost in the
Index Number

176

year 2004 was RM2985.

Answer (a) 125, 2.80, 0.50 (b) 129.44, RM2306.09 3. Table below 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 P Q R S (a) Calculate (i) (ii) Price index for the year 1995 Based on the year 1993 135 x 105 130 Percentage of usage (%) 40 30 10 20

the price of S in year 1993 if its price in the year 1995 is RM37.70. 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. (b) The composite index number of the lost 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 RM32.00 Answer (a) RM29.00, 162, (b) 125, RM25.00

Past Years Questions

SPM 2008 P2 Q13 1. Table below shows the prices and the price indices of four ingredients, fish, flour, salt and sugar, used to make a type of fish cracker. Ingredients Fish Flour Salt Sugar Price (RM) per kg for the year 2004 2005 3.00 1.50 k 1.40 4.50 1.80 0.90 1.47 Price index for the year 2005 based on the year 2004 150 h 112.5 105

(a) Find the value of h and of k. [3 marks] (b) Calculate the composite index for the cost of making these crackers in the year 2005 based on the year 2004. [3 marks] (c) The composite index for the cost of making these crackers increases by 50% from the year 2005 in the year 2009. Calculate (i) the composite index for the cost of making these crackers in the year 2009 based the year 2004 (ii) the price of a box of these crackers in the year 2009 if its corresponding price in the year 2004 is RM25 [4 marks] Answers h=120, k=0.8 126.375, 189.563, 47.39
Index Number

177

2 SPM 2007 P2Q13 Table below shows the prices and the price indices of five components, P,Q,R,S and T. used to produce a kind of toy. component Price (RM) for the year Price index for the year 2006 based on 2004 2006 the year 2004 P 1.20 1.50 125 Q x 2.20 110 R 4.00 6.00 150 S 3.00 2.70 y T 2.00 2.80 140 Diagram below shows a pie chart which represents the relative quantity of components used.

(a) Find the value of x and of y

[3marks] (b) Calculate the composite index for the production cost of the toys in the year 2006 based on the year 2004 [3marks] (c) The price of each component increases by 20% from the year 2006 to the year 2008. Given that production cost of one toy in the year 2004 is RM55, calculate the corresponding cost in the year 2008 [4marks] Answer : 2.00, 90, 123.5 148.20, RM81.51 3. SPM 2006 P2 Q 15 A particular kind of cake is made by using four ingredients, P,Q, R and S. Table below shows the prices of the ingredients. Ingredient Price per kilogram (RM) Year 2004 Year 2005 P 5.00 w Q 2.50 4.00 R x y S 4.00 4.40 (a) The index number of ingredient P in the year 2005 based on the year 2004 is 120. Calculate the value of w. [ 2 marks] (b) The index number of ingredient R in the year 2005 based on the year 2004 is 125. The price per kilogram of ingredient R in the year 2005 is RM2.00 more than its corresponding price in the year 2004. Calculate the value of x and of y. [3marks]
Index Number

178

(c) The composite index for the cost of making the cake in the year 2005 based on the year 2004 is 127.5 Calculate (i) the price of a cake in the year 2004 if its corresponding price in the year 2005 is RM 30.60 (ii) the value of m if the quantities of ingredients P,Q,R and S used in the ratio of 7: 3: m : 2 [5 marks] [Answers: 6, 8, 10, RM24, 4 ] 4. SPM 2005 P2Q13 Table below shows the prices and the price indices for the four ingredients, P,Q, R and S, used in making biscuits of a particular kind. Ingredients P Q R S Price per kg (RM) Year 2001 0.80 2.00 0.40 z Year 2004 1.00 y 0.60 0.40 Price index for the year 2004 based on the year 2001 x 140 150 80

Diagram below show a pie chart which represents the relative amount of the ingredients P,Q,R and S, used in making these biscuits.

(c) Find the value of x, y and z. (d) (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 of making these biscuits in the year 2001 if the cost in the year 2004 was RM2985. [Answer (a) 125, 2.80, 0.50 (b) 129.44, RM2306.09] 5. SPM 2004 P2Q12 Table below shows the price indices and the percentage of usage of four items, P,Q, R and S, which are the main ingredients in the production of a type of biscuit. Items P Q R S (a) Calculate (i)
Index Number

Price index for the year 1995 based on the year 1993 135 x 105 130

Percentage of usage (%) 40 30 10 20

the price of S in the year 1993 if its price in the year 1995 is RM 37.70

179

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] (b) The composite index number of the lost 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 RM32. [5 marks] [Answers: RM29, 162, 125, RM25]

(ii)

6. SPM 2003 P2 Q13 Diagram below is a bar chart indicating the weekly cost of the items P,Q,R ,S and T for the year 1990. Table below shows the prices indices for the items.

Index Number

180

Items

Price in 1990

Price in 1995

P x RM 0.70 Q RM2.00 RM2.50 R RM4.00 RM5.50 S RM6.00 RM9.00 T RM2.50 Z (a) Find the value of (i) x (ii) y (iii) z (b) Calculate the composite index for the items in the year 1995 based on the year 1990.

Price index in 1995 based on 1990 175 125 y 150 120 [3 marks]

[2 marks] (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 increases by 20% from the year 1995 to the year 2000. Find the composite index for the year 2000 based on the year 1990. [3marks]
[ Answer:RM0.40, 137.5,RM3.00, 140.9 RM642.5 ]

Index Number

181