PART 2

WE OFTEN HEAR COMPLAINTS FROM THE PUBLIC ABOUT INFATION. IT CAUSES AN INCREASE IN THE HOUSEHOLD EXPENDITURE IN A FAMILY THE HOUSEHOLD EXPENDITURE FOR EVERY FAMILY IS DIFFERENT. a) COMPLETE TABLE 1 FOR YOUR FAMILYS MONTHLY EXPENDITURE FOR THE YEAR 2013 AVERAGE MONTHLY EXPENDITURE FOR THE YEAR 2013 (TO THE NEAREST RM) 1200 650 4110 PERCENTAGE OF MONTHLY EXPENSES (TO THE NEAREST %) 13 8 45

ITEM

FOOD
ACCOMODATION (RENTAL/LOAN) TRANSPORTATION (PETROL/LOAN/BUS FARE ETC) COTHING EDUCATION RECREATION UTILITIES (WATER/ELECTRICITY/ TELEPHONE) MEDICATION

400 300 500 600

4 3 6 7

300 1000

3 11

MISCELLANOUS

9060 TOTAL

100

TABLE 1

b) IF WE WANT TO COMPARE THE COST OF LIVING FROM ONE YEAR TO ANOTHER WE HAVE TO CALCULATE THE PRICE INDEX THAT INVOLVES SOME OF THE ITEMS MENTIONED ABOVE i) IN ORDER TO CALCULATE THE PRICE INDEX OF ALL THE ITEMS ABOVE,WE HAVE TO CONSIDER THE AVERAGE MOTHLY EXPENSES OF ANY PREVIOUS YEAR AS THE BASE YEAR. SELECT THE APPROPRIATE YEAR AS THE BASE YEAR. ii) HENCE COMPLETE TABLE 2 BELOW: AVERAGE MONTHLY EXPENDITURE FOR THE YEAR 2012 AS THE BASE YEAR (RM) 1200 650 3800 AVERAGE MONTHLY EXPENSES FOR THE YEAR 2013 (RM)

ITEM

FOOD
ACCOMODATION (RENTAL/LOAN) TRANSPORTATION (PETROL/LOAN/BUS FARE ETC) COTHING EDUCATION RECREATION UTILITIES (WATER/ELECTRICITY/ TELEPHONE) MEDICATION

1200 650 4110

400 240 400 500

400 300 500 600

300 1000

300 1000

MISCELLANOUS

8490 TOTAL TABLE 2

9060

c) (i) COMPLETE TABLE 3 BASED ON THE ABOVE INFORMATION USING THE FORMULA

Where the specific year is 2013 and the base year is 2012 PRICE INDEX FOR THE YEAR 2013 BASED ON THE YEAR 2012, I 100 100 WEIGHTAGE, W IW

ITEM

FOOD
ACCOMODATION (RENTAL/LOAN) TRANSPORTATION (PETROL/LOAN/BUS FARE ETC) COTHING EDUCATION

13 8

1300 800

108.16

45

4867.2

100 125

4 3

400 375

RECREATION UTILITIES (WATER/ELECTRICITY/ TELEPHONE) MEDICATION

125 120

6 7

750 840

100 100 978.16 TABLE 3

3 11 100

300 1100 10732.2

MISCELLANOUS
TOTAL

(ii) HENCE CALCULATE THE COMPOSITE INDEX FOR THE AVERAGE MONTHLY EXPENDITURE IN THE YEAR 2013 BASED ON THE SELECTED BASE YEAR

Composite Index,

(d) BASED ON MY FAMILYS EXPENDITURE THERE IS AN INCREASE IN TOTAL MONTHLY EXPENDITURE FROM 2012 TO 2013. MAINLY AN INCREASE IN MONTHLY EXPENDITURE FOR TRANSPORTATION, CLOTHING, EDUCATION, RECREATION AND UTILITIES WHEREAS THE OTHERS REMAINED CONSTANT.

PART 3

YOU HAVE CONDUCTED A SURVEY ON THE PRICE OF THE TELEVISION FOR TWO DIFFERENT BRANDS FROM THREE DIFFERENT SHOPS. YOU WOULD LIKE TO MAKE A COMPARISON BETWEEN TWO MODES OF PAYMENT,NAMELY,CASH PAYMENT AND PAYMENT BY INSTALLMENT TABLE 4 (a) SHOWS THE PRICES OF TELEVISION BY CASH PAYMENT IN THREE DIFFERENT SHOPS WHEREAS TABLE 4 (b) SHOWS THE PRICES OF TELEVISION BY INSTALLMENT. COMPLETE TABLE 4 (a) AND 4 (b) USING THE DATA OBTAINED. Standard Deviation

BRAND

SIZE OF TELEVISION (INCHES) SHOP A 24 32 40 24 32 40 899.95 999.95 1099.95 849.95 949.95 1049.95

PRICE (RM)

SHOP B
869.95 969.95 1069.95 799.95 899.95 999.95

SHOP C
849.95 949.95 1049.95 819.95 919.95 1019.95

MEAN PRICE (RM) 873.30 973.30 1073.30 823.30 923.30 1023.30

STANDARD DEVIATION (RM) 19.80 19.75 19.65 19.85 19.80 19.70

SAMSUNG

PHILIPS

TABLE (a)

BRAND

SIZE OF TELEVISION (INCHES) SHOP A 24 32 40 24 32 40 75 83.30 91.60 70.80 79.15 87.50

PRICE (RM)

SHOP B
72.50 80.80 89.15 66.65 75 83.30

SHOP C
70.80 79.15 87.50 68.80 76.65 85

MEAN PRICE (RM) 72.75 81.10 89.40 68.75 76.90 85.25

STANDARD DEVIATION (RM) 2.30 0.45 2.40 1.70 2.85 2.40

SAMSUNG

PHILIPS

TABLE (b)

(b) DETERMINE THE BRAND AND SIZE OF THE TELEVISION THAT YOU HAVE DECIDED TO BUY. GIVE YOUR REASONS BASED ON THE FINDINGS FROM PART (a) ABOVE. (NOT CALCULATION-NOT MY JOB) (c) THE MINISTRY OF DOMESTIC TRADE AND CONSUMER AFFAIRS WISHES TO PRESENT THE FAIR PRICE SHOP AWARD FOR ONE OF THE ABOVE SHOPS. IF YOU ARE ONE OF THE PANELS FOR THIS AWARD, DETERMINE THE SHOP THAT DESERVE THE AWARD. DO YOU CONSIDER THE VALUE OF THE MEAN AND THE VALUE OF STANDARD DEVIATION IN MAKING YOUR DESISION? GIVE YOUR JUSTIFICATION... (NOT CALCULATION-NOT MY JOB)

PART 4

(a) YOUR FAMILY HAS A FIXED MONTHLY INCOME.IN ORDER TO BUY THE TELEVISION, YOUR FAMILY NEEDS TO MAKE SOME ADJUSTMENT ON THE VARIOUS TYPES OF EXPENDITURE. (YOU CAN CHOOSE TO PAY BY CASH OR BY INSTALLMENT) (BASED ON PART 3 (b) AND (c) SO I CANT DO IT ^_^) (b) ASSUMING YOU HAVE JUST STARTED WORKING WITH A MONTHLY SALARY OF RM 2500. YOU INTEND TO SAVE 10% OF YOUR SALARY EVERY MONTH. PLAN YOUR MONTHLY EXPENDITURE AS IN TABLE 1 ABOVE ADD OTHER ITEMS SUCH AS SAVINGS AND CONTRIBUTION TO YOUR PARENTS. (ALSO BASED ON PART 3 (b) AND (c) SO I CANT DO IT ^_^)