INDEX NUMBERS

PAPER 2

1. Diagram 1 is a bar chart indicating the cost of the items P, Q, R, S and T for the year
1990. Table 1 shows the price indices for the items.

DIAGRAM 1

Price Index in 1995

Item Price in 1990 Price in 1995
based on 1990
P x RM0.70 175
Q RM2.00 RM2.50 125
R RM4.00 RM5.50 y
S RM6.00 RM9.00 150
T RM2.50 z 120

TABLE 1
(a) Find the value of
(i) x,
(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. [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.
[3 marks]
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.

Price index for the year 1995 Percentage of use

Item
based on the year 1993 (%)
P 135 40
Q x 30
R 105 10
S 130 20
TABLE 2
(a) Calculate
(i) the price of S in the year 1993 if its price in the year 1995 is RM37.70,
(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,
(ii) the price of a box of biscuit in the year 1993 if the corresponding price
in the year 1995 is RM32. [5 marks]

3 Table 3 shows the prices for the four items in the year 2004 and 2005 together with
the price indices for the year 2005 based on the year 2004 and their weightages.

Price (RM) Price index for the year

Items 2005 based on the Weightage
Year 2004 Year 2005
year 2004
A 45 54 120 4
B x 21 150 3
C 110 121 y 1
D 70 z 90 2
TABLE 3

(a) Calculate
(i) the value of x, y and z.
(ii) the composite index for these items in the year 2005 based on the year
2004. [6 marks]

(b) The expenses of the items are expected to increase by 10% from the year 2005
to the year 2006.
(i) Calculate the composite index in the year 2006 based on the year 2004.
(ii) The expenses for the items in the year 2005 is RM1350, estimate the
expenses in the year 2006. [4 marks]

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4 Table 4 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 2 is a pie chart which
represents the relative amount of the ingredients P, Q, R, and S, used in making
these biscuits.

Price per kg (RM) Price index for the year

Ingredients 2004 based on the
Year 2001 Year 2004
year 2001
P 0.80 1.00 x
Q 2.00 y 140
R 0.40 0.60 150
S z 0.40 80

TABLE 4

P
Q S DIAGRAM 2
o o
120 60
(a) Find the value of
100o x, y and z. [3
marks]
R
(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 cost of making these biscuits in the year 2001 if the
cost in the year 2004 was RM2985. [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]

5 A particular kind of cake is made by using four ingredients, P, Q, R, and S. Table 5

shows the prices of the ingredients.

Ingredients Price per kilogram (RM)

3
 Year 2004 Year 2005
P 5.00 w
Q 2.50 4.00
R x y
S 4.00 4.40
TABLE 5

(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 y. [3 marks]

(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 RM30.60,
(ii) the value of m if the quantities of ingredients P, Q, R, and S used are in
the ratio of 7 : 3: m : 2. [5 marks]

Answer

1 (a) (i) x = RM0.40,

(ii) y = 137.5

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 (iii) z = RM3.00
(b) 140.9
(c) RM642.50
(d) 169.1

2 (a) (i) RM29.00

(ii) 162
(b) (i) 125
(ii) RM25.00

3 (a) (i) x = 14, y = 110, z = 63

(ii) 122
(b) (i) 134.2
(ii) RM1485

4 (a) x = 125, y = 2.80, z = 0.50

(b) (i) 129.44
(ii) RM2306.99
(c) 194.1

5 (a) x = 6,
(b) x = 8, y = 10
(c) (i) RM24.00
(ii) m=4