ADDITIONAL

MATHEMATICS
MODULE 20

INDEX NUMBER

CHAPTER 11: INDEX NUMBER

CONTENTS

PAGE

11.1

Conceptual Map

11.2

Calculate index number

11.3

Calculate price index

11.4

Calculate composite index

Past Year Question

Assessment

15

Answer

17

11.1

CONCEPT MAP

Fill in the fomula in the blank boxes

APLICATION OF INDEX
NUMBER

Price Index

Composite Index Number

Composite index number,

Price index, I =
=
Where ,
P1 = price of an item at a
specific time
P0 = price of an item at a base
time

Where ,
W = weightage of each item
I= Index number of each item

11.2 Calculate index number

Example 1:
The total sale of sun glasses in 2003 and 2004 are 80 and 96 pairs.
Calculate the index in 2004 given that 2003 is the base year.
Base year, Q03 = 80
Specific year, Q04 = 96
I=

Q04
x 100 = 120
Q03

Example 2:
2. The index of Perodua Kancil in 1996 based on 1990 is 140 and the index number of
Perodua Kancil in 2000 based on 1996 is 105. Find the index number of the Perodua
Kancil in 2000 based on 1990.
1990
100
_

1996
100

2000
x
105

100

x=

x
105
140
x 105
100

= 147
Or

x 100 = 140

x 100 = 105

P96
140
=
P90
100

P00
105
=
P96
100

Index number in 2000 based on 1990, I =

P00
x 100
P90

P00
P96
x
x 100
P96
P90

105
140
x
x 100
100
100

= 147

Exercise 11.2
1. The student population of a College MARA increased from 1000 students in year
2005 to 1380 students in year 2006. Calculate the index number to show change in the
student population of the school in year 2006 using year 2005 as the base year.

2. The price index of two items for the specific years are given in the following table.
Item
P
Q

1995
(1990=100)
125
135

1999
(1990 = 100)
140
Y

Calculate the values of x and y

11.3 Calculate price index

4

1999
(1995=100)
x
120

Example 1
The price index of a packet of sugar weighing 1kg in year 2006 based on year
2004 was 115. If the price of a packet of the sugar in a year 2004 was RM 7.00,
find the price of a packet of sugar in year 2006.
Base year, P04 = RM 7.00
Specific year , P06 = ?
Price Index, I =

P 06
x 100
P04

P 06
x 100
7.00

P06 =

= RM 8.05

Exercise 11.3:
1. The price of a book was RM 0.90 in 1999. Its price became RM 1.35 in 2003.
Calculate the index price of the book in 2003 based on the year 1999

2. The index number of the monthly house rental in Bertam Area in year 2004 based on

year 1999 was found to be 118. If the house rental in year 1999 was RM400 per month,
find the monthly house rental in year 2004.

3. The table shown the price per kg of good: A, B and C in the year 2005 and 2006.
Types of good
A
B
C

Price
2005

Price index in 2006

2006

RM 1.20
x
RM 0.60

RM 1.60
RM 2.30
Y

Find the value of x, y and z

11.4 Calculate Composite Index

Example:

(Base year = 2005)

z
110
102

The table below show the price indices of 3 types of thing to make a cake in a certain
year. Calculte the composite index.
1.
Things
Index
Weightage
P
100
4
Q
120
2
R
145
4
I

IW
W

= 100(4) +120(2) + 145(4)

4 + 2 +4
= 122

Exercise 11.4:
1. Calculate the composite index for each of the following data
Index number, I
Weightage, W

120
3

110
4

105
3

2. Table below shows the prices index and the weightage of three items in 2000
based on 1996.
Item

Price Index

Weightage

A
B
C

125
x
110

5
3
2

The composite index in 2000 is 116. Find the value of x.

3. Diagram shows a bar chart which represent the cost of three components, A, B, C
Cost
m
6
4
A

Component

The composite index is 107. find the value of m

Past Year Question

2005 (Paper 2)

1. Table 1 shows the prices and the price indices for the four ingredients P, Q, R and S
used in making biscuits of a particular kind. Diagram 1 is a pie chart which represent the
relative amount of the ingredients P, Q, R and S used in making these biscuits.
Ingredients Price per kg ( RM)

Price index for the

year 2004 based on
the year 2001

Year 2001
0.80
2.00
0.40
z

P
Q
R
S

Year 2004
1.00
Y
0.60
0.40
Table 1

x
140
150
80

Q
120O
100O

60O

Diagram 1
a. Find the value x, y and z.

[3 marks]

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 in the year 2001 if the cost in
the year 2004 was 2985

[ 5 marks]

c. The cost of making these biscuits is expected to increase by 50% from the year 2004
to the year 2007
Find the expected composite index for the year 2007 based on the year 2001
[2
marks]
Solution

2004 (Paper2)

10

2. Table 2 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 Index for the year 1995

Percentage of usage

P
Q
R
S

based on the year 1993

135
X
105
130
Table 2

(%)
40
30
10
20

(a) Calculate
(i) the prices of S in the year 1993 if its price in the year 1995 is RM 37.70,
(ii) 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 cost of biscuit production for the year 1995 based
on the year 1993 is 128. Calculate
(i) The value of x
11

(ii) The price of a box of biscuit in the year 1993 if the corresponding price in the
year 1995 is RM 32.

[5 marks]

Solution

2003( Paper 2)
3. Diagram 2 is a bar chart indicating the weekly cost of the items P, Q, R, S and T for the
year 1990. Table 3 shows the prices and the price indices for the items
Weekly Cost ( RM)
33
30
24
15
12

Items

Diagram 2
Items

Price in 1990

Price in 1995

12

Price Index in 1995 based

P
Q
R
S
T

x
RM2.00
RM4.00
RM6.00
RM2.50
Table 3

RM0.70
RM2.50
RM5.50
RM9.00
z

on 1990
175
125
y
150
120

(a) Find the value of

(i)

(ii) y
(iii) z

[3 marks]

(b) Calculate the composite index for the items in the year 1995 based on the year
1990.

[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

13

[2 marks]

(d) The cost of the items increase by 20% from the year 1995 to the year 2000. Find
the composite index for the year 2000 based on the year 1990.

[3 marks]

ASSESSMENT
(30 MINUTES)
1. Price indices of a Korean car in the year 2000 and 2002 based on the year 1998 are
116 and 125 respectively. Calculate the price indices for the year 1998 and 2000 if the
year 2002 is used as the base year.

14

Solution

2. The table below shows the price indices and percentage of usage of four items, J, K, L
and M, which are the the main ingredients in the production of a type of cheese cake.
Items

Price index for the year

Percentage of usage (%)

J
K
L
M

2004 based on the year 2002

130
Y
102
145

30
20
40
10

(a) Calculate
(i) the price of M in the year 2002 if its price in the year 2004 is RM28.13

(ii) the price index of J in the year 2004 based on the year 2000 if its price index
in the year 2002 based on the year 2000 is 110.

15

(b) The composite index number of the cost of choclate cake production for the year 2004
based on the year 2002 is 126. Calculate
(i) the value of y
(ii) the price of a box of cheese cake in the year 2002 if the corresponding price in
the year 2004 is RM24

2. (a) Table 4 shows the price index and the weightage of four types of electrical
components in television items in 2000 based on 1996.
Electrical component
Capasitor
Diode
Resistor
Transistor

Price Index
110
105
120
125
Table 4

Weightage
2
m
4
n

Find the values of m and n given the composite index is 118 and the total weightage
16

is 10

(b) Table 5 shows the prices of four types of electrical components in television items in
1998 and 2000. Diagram 3 shows the pie chart that reflects the proportion of expenditure
of Samsung Factory in 1998.

Component

Price
1998
RM6.00
RM5.00
RM4.00
RM7.00
Table 5

J
K
L
M

120o

17

2000
RM7.20
RM5.50
RM5.20
RM9.10

70o
K

80o
L

Diagram 3
(i)

Find the composite index for the four types of electrical component.

(ii)

The expenditure for Samsung Factory in 1998 is RM1200. Find the

corresponding expenditure for Samsung Factory in 2000

ANSWER
Exercise 11.2
1.

138

2.

x = 112, y = 162

Exercise 11.3
1.

150

2.

472

3.

x = RM2.09 , y = RM0.61 , z = 133.33

Exercise 11.4

18

1.

111.5

2.

x = 105

3.

m = 10

Past Year Question

1.

2.
3.

a.

x = 125 , y = 2.80 , z = 0.50

b.

(i) 129.44

c.

150

a.

(i) RM129

b.

(i)

x = 125 (ii) RM25

a.

(i)

x = RM0.40

b.

140.9

c.

RM642.5

d.

169.1

(ii) 2306.94
(ii) 162
(ii) y = 137.5

(iii) z = RM3.00

ASSESSMENT
1.

80, 92.8

2.

a.

(i) RM19.40

(ii) 143

b.

(i) y = 158.5

(ii) RM19.05

3.

a.

m=1, n=3

b.

(i) 121.67

19

(ii) RM1460

20