Additional Mathematics

Form 4

Chapter 10: Index Number

10.1 Index Number

Example:
1. The table shows the number of visitors to a theme park in the years 2010, 2011 and
2012.
Year Number of Visitors
2010 125 000
2011 140 000
2012 161 000

Calculate the index numbers for the number of visitors to the theme park
a) For the year 2011 based on the year 2010.
b) For the year 2012 based on the year 2010.
c) For the year 2012 based on the year 2011.

2. The number of cases of dengue fever reported in a certain state in the years 2011 and 2012 are
660 and 528 respectively. Calculate the index number for the number of dengue fever cases
reported in this state for the year 2012 based on the year 2011.

3. The price of a bowl of noodle soup is RM3.00 in the year 2008. Given the price index for a bowl
of noodle soup is 125 for the year 2012 based on the year 2008. Calculate the price of a bowl of
noodle soup in the year 2012.
4. The price of a laptop is RM2280 in the year 2013. If the price index for the year 2013 based on
the year 2011 is 95, calculate the price of the laptop in the year 2011.

5. The index number of an item R for the year 2006 taking the year 2003 as the base year is 120.
The index number of the item for the year the year 2009 taking the year 2006 as the base year is 130.
Find the index number for the year 2009 taking the year 2003 as the base year.

6. In the year 2013 the price index for a commodity, using 2009 as the base year, was 114. In the
year 2015 the price index for the same commodity, using 2013 as the base year, was 95. Find the
price index for th commodity in 2015 using 2009 as the base year.

7. The table shows the price indices for men’s clothing, women’s clothing and children’s clothing.
Year 2010 Year 2015 Year 2015
(2000=100) (2000=100) (2010=100)
Men’s Clothing 159 208 p
Women’s q 220 137
Clothing
Children’s 126 r 124
Clothing
Calculate the values of
(a) p, (b) q, (c ) r.
Give your answers to the nearest integer.
8. The table shows the price indices for three items in the year 2007 using 2004 as the base year
and also the changes in the prices from the year 2007 to year 2010 and from the year 2010 to 2012.

Price index Change in price Change in price

(a) Using 2004 as the base year, calculate the price indices of the following items in the years 2010
and 2012:
(i) rice,
(ii) eggs.
(b) Calculate the price index for cooking oil in 2012 based on the year 2007.
(c) Given that an egg cost 27 sen in 2010, find its price in 2007.
10.2 Composite Index
The composite index can be calculated using the following formula:

Example:
1. The table shows the price indices of four items in the year 2018 based on the year 2014 and their
respective weightage.
Item Price index Weightage
A 112.5 20
B 105 30
C 108 10
D 120 40
Calculate the composite index in the year 2018 based on the year 2014.

2. The table shows the price indices of four types of ingredients in the year 1997 based on the year
1994.
Ingredient Price index in the year 1997
based on the year 1994
A 128
B 110
C 125
D 90
Calculate the composite index of the ingredients in the year 1997 based on the year 1994.
3. The table shows the prices of four types of food in the years 2002 and 2007. The pie chart shows
the weightage for each type of food.

Calculate the composite index in the year 2007 based on the year 2002.

4. The table shows the price indices of three items in the year 2018 based on the year 2013 and
their respective weightage.
Item Price Index Weightage
A 136 y
B x 2
C 108 3
The prices of item B in the year 2013 and 2018 were RM30 and RM34.20 respectively. The
composite index of the three items in the year 2018 based on the year 2013 was 120. Find the values
of x and y.
5. The bar chart shows the weekly cost for five products P, Q, R, S and T of a company in the year
1998. The table shows the prices and price indices for the five products.

(a) Find the values of x, y and z.

6. The table shows the information related to four ingredients K, L, M and N used in the production
of a type of bread.
Ingredient Change in price index Percentage
from 2010 to 2012 of usage(%)
K Increased by 20% 10
L Decreased by 10% 30
M Increased by 40%
N Increased by 30% 40
The production cost for this bread was RM23 800 in the year 2012.
(a) If the price of ingredient N in the year 2010 was RM3.60, find its price in the year 2012.
(b) Percentage of usage for several ingredients were given in the table. Calculate the corresponding
production cost in the year 2010.
(c ) The production cost is expected to increase by 25% from the year 2012 to the year 2015.
Calculate the percentage of changes in production cost from the year 2010 to the year 2015.