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Chapter 11: Index Number Name:………………………....

11.1 Index Number/Price Index

Q1 P1
Index Number, I = × 100 Price Index, I = × 100
Qo Po
Qo = quantity at base time Po = price of item at base time
Q1 = quantity at specific time P1 = price of item at specific time

Examples

1. The number of students in a school in the years 1999 and 2003 are 580 and 700
respectively. Calculate the index number for the number of students in the school in
the year 2003 based on the year 1999. [120.69]

2. A factory produces 10 000 cans of drink in the year 2000 and 12 500 cans in the
year 2001. Calculate the index number for the production of cans drink in the year
2001 based on the year 2000. [125]

3. The number of cars sold by a company in the year 1998, 1999 and 2001 are 240, 260
and 320 respectively.
Calculate
(a) the index number for the number of cars sold by the company in the year 1999
based on the year 1998. [108.3]
(b) the index number for the number of cars sold by the company in the year 2001
based on the year 1998. [133.3]

Sri Bintang Tuition Centre, Kuching @Biid09

Additional Mathematics Form 4
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4. The price of a bottle of vinegar is RM1.20 in the year 1997 and RM1.85 in the year
2000. Calculate the price index for vinegar in the year 2000 based on the year 1997.
[154.17]

5. The price of a tour package to Pulau Redang is RM320 in the year 2000 and RM450
in the year 2005. Calculate the price index for the tour package in the year 2005
based on the year 2000. [140.63]

6. The table below shows the prices of 4 different types of dishes sold at a food stall in
Kuching in the years 2005 and 2008.
Food Price in 2005 Price in 2008
Mee Goreng RM2.00 RM3.50
Mee Kolok RM3.00 RM3.50
Mee Jawa RM2.50 RM4.00
Mee Kampua RM2.50 RM3.50

Calculate the price index for each of the dishes in 2008 based on the year 2005.
[175, 116.67, 160, 140]

Sri Bintang Tuition Centre, Kuching @Biid09

Additional Mathematics Form 4
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7. The table below shows the prices of three items, A, B and C, as well as their
respective prices indices.
Items A B C
Price in the RM1.40 RM12.50 z
year 2000
Price in the RM2.10 y RM0.60
year 2005
Price Index x 125 150
Find the values of x, y and z.
[150, RM15.63, RM0.40]

8. The price indices for an item in the years 2001 and 2002 based on the year 2000
were 108 and 120 respectively. Given that the price of the item in the year 2001 was
RM80, find the price of the item in the year 2002. [RM88.89]

9. Based on the years 1995, the price index of a certain item for the year 2000 is 117.
Based on the year 2000, the price index of the item for the year 2005 is 138. Find the
price index of the item for the year 2005 based on the year 1995. [161.46]

Sri Bintang Tuition Centre, Kuching @Biid09

Additional Mathematics Form 4
 4

10. The index numbers for an item in the years 2001 and 2002, based on the year 1997,
are 108 and 120 respectively. Calculate
(a) the index number in the year 2007 based on the year 2002,
(b) the index number in the year 2002 based on the year 2001.
[(a) 83.33, (b) 111.1]

11.2 Composite Index

Composite Index, I =
−
∑ IW
∑W
I = Price Index
W = Weightage
Examples

1. Calculate the composite index for the table below.

Index Number Weightage

115 10
138 31.25
122.5 58.75
[126.59]

2. The following table shows the quantity sold by 4 different car companies together
with their weightage. Find the composite index.
Type of cars Index Number Weightage
P 118 16
Q 123 24
R 176 38
S 113 22
[140.14]

Sri Bintang Tuition Centre, Kuching @Biid09

Additional Mathematics Form 4
 5

3. The table below shows the index numbers for 5 commodities P, Q, R, S and T in
the year 2007 based on the year 2004 and their weightages.
Commodity Index Number Weightage
P 110 8
Q 118 3
R 127 7
S 114 3
T 130 9
Find the composite index of the commodities in year 2007 based on year 2004
[121.2]

4. The table below shows the prices of 4 items in the years 1995 and 1999 together
with their weightages.
Item 1995 1999 Weightage
Gula RM1.00 RM1.30 5
Tepung RM2.00 RM2.40 3
Daging Lembu RM2.50 RM2.70 2
Beras RM1.80 RM2.60 8

Calculate the composite index of all the items in the year 1999 based on the year
1995. [132.3]

Sri Bintang Tuition Centre, Kuching @Biid09

Additional Mathematics Form 4
 6

5. The table shows the index numbers for 3 items in the year 2006 based on the year
2002.
Item P Q R
Index Number 115 98 124
Weightage 8 x 12 – x

Given that the composite index is 117.8, calculate the value of x.

[2]

6.
Goods E F G H
Price Index 125 105 115 130

E F
o
35
x
H 125
o
G

The table shows the price indices for four types of goods imported in the year 2000
based on the year 1995. The quantity of goods imported is shown in the pie chart.
Calculate
(a) the value of x,
(b) the composite index for the imported goods in the year 2000 based on the
year 1995.
[(a) 110o, (b) 121.7]

Sri Bintang Tuition Centre, Kuching @Biid09

Additional Mathematics Form 4
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7. The index numbers obtained in the year 2005 based on the year 2000 for three
groups of participants in a certain competition are 114, 126 and x respectively.
Given that the percentage of the three groups of participants recorded in year 2000
are 20%, 3y% and y% respectively, calculate
(a) the value of y,
(b) the value of x if the composite index obtained in the year 2005 based on the
year 2000 is 118.
[y = 20, (b) x = 98]

SPM FORMAT

1.

Price
Price per kg index in 9
Ingredients (RM) yr 2003 C
7
based on
yr 2000 Weekly cost ( RM '000)
4 B
2000 2003
A 1.80 x 112 A
B 2.40 3.00 y
C z 1.50 125
Items
A cosmetic product is made from 3 ingredients, A, B and C. The bar chart shows
weekly cost in the year 2000. The table shows the prices and the price indices for
the ingredients.
(a) Find the values of x, y and z.
(b) Calculate the composite index for the cost of producing the cosmetic product
in the year 2003 using the year 2000 as the base year.
(c) If the total monthly cost of the ingredients in the year 2000 was RM250 000 ,
find the total monthly cost of the ingredients in the year 2003.
[(a) x = 2.02, y = 125, z = 1.20 (b) 122.4 (c) RM306 000 ]

Sri Bintang Tuition Centre, Kuching @Biid09

Additional Mathematics Form 4
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2. An alloy is made by using three types of metallic elements, P, Q and R. Table

below shows the cost prices of the elements.
Cost price per kilogram (RM)
Element

Year 2003 Year 2006

P 12 t
Q x y
R 10 15
(a) Calculate the value of t given that the index number of element P in the year
2006 based on the year 2003 is 110.
(b) The index number of element Q in the year 2006 based on the year 2003 is
10 less than the index number of element R in the year 2006 based on the
year 2003. The sum of the cost price per kg for element Q in the years 2003
and 2006 is RM12.00. Calculate the values of x and y.
(c) The composite index for the cost of making an alloy in the year 2006 based
on the year 2003 is 130. Calculate
(i) the cost price of the alloy in the year 2006 if its corresponding price in
the year 2003 is RM1000.
(ii) the value of n if the quantities of elements P, Q and R used are in the
ratio of 2 : n : 1.
[(a) 13.20, (b) x = 5, y = 7, (c) (i) RM1300 (ii) n = 2]

3. Table below shows the price indices and percentage of usage of four items, K, M, R
and S, in the making of a type of bread.
Item Price index for the year 2005 Percentage of usage
based on the year 2000 (%)
K 150 20
L 130 20
R m 10
S 125 50
(a) Calculate
(i) the price of K in the year 2000 if the price in the year 2005 is RM500,
(ii) the price index of L in the year 2005 based on the year 2003 if its price
index in the year 2003 based on the year 2000 is 120.
(b) The composite index number of the cost of bread production for the year
2005 based on the year 2000 is 130.
Calculate
(i) the value of m,
(ii) the price of the bread in the year 2005 if the price in the year 2000 is
RM5.
[(a)(i) RM333.33 (ii) 108.3 (b)(i) m = 115 (ii) RM6.50]

Sri Bintang Tuition Centre, Kuching @Biid09

Additional Mathematics Form 4