ACTIVITY 1: COLLECTING INFORMATION
Respondent’s detail (R1)
Name of Respondent: __________________________________________________________
Occupation: _________________________ Total family income: _______________________
Item Expenditure
Estimated monthly expenditure in the year 2009 and 2011 of each item
No Item of expenditure Year 2009(RM)
Year 2011(RM)
1 Food 600 950
2 House Rental 450 650
3 Transportation 500 700
4 Entertainment 200 320
5 Children Tuition Fee 120 180
Total
Name of interviewer: ____________________________________ Class: ___________________
......................................................... ...........................................
Respondent’s signature Date
Respondent’s detail (R2)
Name of Respondent: __________________________________________________________
Occupation: _________________________ Total family income: _______________________
Item Expenditure
Estimated monthly expenditure in the year 2009 and 2011 of each item
No Item of expenditure Year 2009(RM)
Year 2011(RM)
1 Food
2 House Rental
3 Transportation
4 Entertainment
5 Children Tuition Fee
Total
Name of interviewer: ____________________________________ Class: ___________________
......................................................... ...........................................
Respondent’s signature Date
Respondent’s detail (R3)
Name of Respondent: __________________________________________________________
Occupation: _________________________ Total family income: _______________________
Item Expenditure
Estimated monthly expenditure in the year 2009 and 2011 of each item
No Item of expenditure Year 2009(RM)
Year 2011(RM)
1 Food
2 House Rental
3 Transportation
4 Entertainment
5 Children Tuition Fee
Total
Name of interviewer: ____________________________________ Class: ___________________
......................................................... ...........................................
Respondent’s signature Date
Respondent’s detail (R4)
Name of Respondent: __________________________________________________________
Occupation: _________________________ Total family income: _______________________
Item Expenditure
Estimated monthly expenditure in the year 2009 and 2011 of each item
No Item of expenditure Year 2009(RM)
Year 2011(RM)
1 Food
2 House Rental
3 Transportation
4 Entertainment
5 Children Tuition Fee
Total
Name of interviewer: ____________________________________ Class: ___________________
......................................................... ...........................................
Respondent’s signature Date
Respondent’s detail (R5)
Name of Respondent: __________________________________________________________
Occupation: _________________________ Total family income: _______________________
Item Expenditure
Estimated monthly expenditure in the year 2009 and 2011 of each item
No Item of expenditure Year 2009(RM)
Year 2011(RM)
1 Food
2 House Rental
3 Transportation
4 Entertainment
5 Children Tuition Fee
Total
Name of interviewer: ____________________________________ Class: ___________________
......................................................... ...........................................
Respondent’s signature Date
Respondent’s detail (R6)
Name of Respondent: __________________________________________________________
Occupation: _________________________ Total family income: _______________________
Item Expenditure
Estimated monthly expenditure in the year 2009 and 2011 of each item
No Item of expenditure Year 2009(RM)
Year 2011(RM)
1 Food
2 House Rental
3 Transportation
4 Entertainment
5 Children Tuition Fee
Total
Name of interviewer: ____________________________________ Class: ___________________
......................................................... ...........................................
Respondent’s signature Date
Respondent’s detail (R7)
Name of Respondent: __________________________________________________________
Occupation: _________________________ Total family income: _______________________
Item Expenditure
Estimated monthly expenditure in the year 2009 and 2011 of each item
No Item of expenditure Year 2009(RM)
Year 2011(RM)
1 Food
2 House Rental
3 Transportation
4 Entertainment
5 Children Tuition Fee
Total
Name of interviewer: ____________________________________ Class: ___________________
......................................................... ...........................................
Respondent’s signature Date
Respondent’s detail (R8)
Name of Respondent: __________________________________________________________
Occupation: _________________________ Total family income: _______________________
Item Expenditure
Estimated monthly expenditure in the year 2009 and 2011 of each item
No Item of expenditure Year 2009(RM)
Year 2011(RM)
1 Food
2 House Rental
3 Transportation
4 Entertainment
5 Children Tuition Fee
Total
Name of interviewer: ____________________________________ Class: ___________________
......................................................... ...........................................
Respondent’s signature Date
Respondent’s detail (R9)
Name of Respondent: __________________________________________________________
Occupation: _________________________ Total family income: _______________________
Item Expenditure
Estimated monthly expenditure in the year 2009 and 2011 of each item
No Item of expenditure Year 2009(RM)
Year 2011(RM)
1 Food
2 House Rental
3 Transportation
4 Entertainment
5 Children Tuition Fee
Total
Name of interviewer: ____________________________________ Class: ___________________
......................................................... ...........................................
Respondent’s signature Date
Respondent’s detail (R10)
Name of Respondent: __________________________________________________________
Occupation: _________________________ Total family income: _______________________
Item Expenditure
Estimated monthly expenditure in the year 2009 and 2011 of each item
No Item of expenditure Year 2009(RM)
Year 2011(RM)
1 Food
2 House Rental
3 Transportation
4 Entertainment
5 Children Tuition Fee
Total
Name of interviewer: ____________________________________ Class: ___________________
......................................................... ...........................................
Respondent’s signature Date
Form 2
No Item of expenditure
Expenditure of the year 2009
R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 Mean
1 Food 650 540 600 750 800 600 480 650 700 630 640
2 House Rental 450 300 400 400 350 450 400 400 390 400 394
3 Transportation 300 200 300 400 400 350 350 450 400 250 340
4 Entertainment 200 150 100 150 200 150 150 200 200 150 165
5 Children Tuition Fee 100 100 150 130 100 100 120 110 120 100 113
Total 1700 1290 1550 1830 1850 1650 1500 1810 1810 1530
No Item of expenditure
Expenditure of the year 2011
R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 Mean
1 Food 600 650 800 850 900 700 550 800 850 950 765
2 House Rental 500 450 500 450 400 500 500 500 400 400 460
3 Transportation 350 300 450 600 500 440 390 500 400 200 413
4 Entertainment 150 200 150 150 150 150 200 150 200 200 170
5 Children Tuition Fee 130 140 140 130 140 140 140 150 100 150 136
Total 1730 1740 2040 2180 2090 1930 1780 2100 1950 1900
Form 3
No Item of expenditure Average expenditure year 2009
Average expenditure year 2011
1 Food 640 765
2 House Rental 394 460
3 Transportation 340 413
4 Entertainment 165 170
5 Children Tuition Fee 113 136
Total
ACTIVITY 2: ANALYSING THE DATAa) Calculate the percentage of increase in expenditure for each item in 2011 based on 2009.
NoItem of
expenditure
Average expenditure year
2009
Average expenditure year
2011
Percentage2011 based 2009
1 Food 640 765765640
×100=119.5
2 House Rental 394 460460394
×100=116.8
3 Transportation 340 413413340
×100=121.5
4 Entertainment 165 170170165
×100=103.0
5 Children Tuition Fee 113 136136113
×100=120.4
Total
b) Find the expenditure index for each item.
No Item of expenditure
Percentage2011 based 2009
Index
1 Food 765640
×100=119.5 119.5
2 House Rental460394
×100=116.8 116.8
3 Transportation413340
×100=121.5 121.5
4 Entertainment 170165
×100=103.0 103.0
5 Children Tuition Fee136113
×100=120.4 120.4
c) Determine the weightage of each item in percentage. Hence, or otherwise present tour weightage in the form of pie chart.
NoItem of
expenditurePercentage
2011 based 2009 IndexPercentage(Weightage)
Degrees(Weightage)
1 Food 765640
×100=119.5 119.5 20.6 74.0
2 House Rental460394
×100=116.8 116.8 20.1 72.3
3 Transportation413340
×100=121.5 121.5 20.9 75.3
4 Entertainment 170165
×100=103.0 103.0 17.7 63.8
5 Children Tuition Fee
136113
×100=120.4 120.4 20.7 74.6
Total 100 360.0
Food 21%
House Rental
20%Transportation21%
Enter-tainment
18%
Children Tu-ition Fee
21%
d) Find the value of expenditure composite index in the year 2011 based on year 2009
NoItem of
expenditureIndex,I
Percentage(Weightage)
WIW
1 Food 119.5 20.6 2461.7
2 House Rental 116.8 20.1 2347.7
3 Transportation 121.5 20.9 2539.4
4 Entertainment 103.0 17.7 1823.1
5 Children Tuition Fee 120.4 20.7 2492.3
Total 100 11664.1
Composite index , I=∑ IW
∑W
¿ 11664.1100
¿116.6
ACTIVITY 3: INTERPRETING THE REESULTa) Describe the expenditure of each item based on the value of expenditure index you obtained.
No Item of expenditureIndex,I
1 Food 119.5
2 House Rental 116.8
3 Transportation 121.5
4 Entertainment 103.0
5 Children Tuition Fee 120.4
Food House Rental Transportation Entertainment Children Tuition Fee
90
95
100
105
110
115
120
125
Index
No Item Descriptions 1 Food Food took up third largest value of index number in the entire item,
and the index number is 119.5. The percentage of increase of food compare the year 2009 is 19.5%.
2 House Rental House rental index number is 116.8, increase with the percentage of 16.8% compare the previous year 2009.
3 Transportation Transportation index number is 121.5, which is 21.5% of increase based 2009. Transportation took the largest index number in the list of item.
4 Entertainment Entertainment with the small value of index number in the list of item which is 103, increase with small percentage of 3%.
5 Children Tuition Fee Tuition fee index number is 120.4 with the increase of 20.4% from the based year 2009.
b) Make a conclusion based on the composite index of expenditure.
A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall expenditure. The composite index for overall expenditure is 116.6, the total expenditure increase 16.6% in the year 2011 based on the year 2009.
ACTIVITY 4: FURTHER EXPLORATION
a) In the year 2013, the cost of living is expected to increase by 20% based on year 2011. Calculate the expenditure index of each item in year 2013 based on year 2009.
No Item of expenditure Index,I2011 based 2009
Index,I2013 based 2009
1 Food 119.5119.5×120100
=143.4
2 House Rental 116.8116 .8×120
100=14 0.2
3 Transportation 121.5121.5×120
100=145.8
4 Entertainment 103.0103.0×120
100=123.6
5 Children Tuition Fee 120.4120.4×120
100=14 4.5
b) From the information in previous activity (4a), use at least two methods to find the composite index of expenditure in the year 2013 based on year 2009.
Method 1
Method 2
No Item of expenditureIndex,I
2013 based 2009 Weightage IW
1 Food119.5×120100
=143.4 20.6 2954.04
2 House Rental116.8×120100
=140.2 20.1 2818.02
3 Transportation121.5×120
100=145.8 20.9 3047.22
4 Entertainment103.0×120
100=123.6 17.7 2187.75
5 Children Tuition Fee120.4×120
100=144.5 20.7 2991.15
100 13998.15
Composite index , I=∑ IW
∑W
2009 2011 2013
116.6 120
I 2013/2009=116.6×120
100=139.92
¿ 13998.15100
¿139.98
c) The impact of 20% increase in expenditure index in the year 2013 can be reduced by controlling expenses for the certain items. Give your suggestions on how to reduce this percentage increase of expenditure for some items. Give reason for each suggestion given.
Transportation – by using the public transport and using the concept of car pooling, the cost transportation can be reducing.
Tuition Fee – by making use of school facilities and services, student no need go for tuition centre. Its can help to reduce the tuition fees for every families.
d) Show the impact of your suggestion on the composite index of expenditure.
By assume the index number for 2011 based on 2009 is 100 for both item transportation and tuition fee.
No Item of expenditureIndex,I
2013 based 2009 Weightage IW
1 Food119.5×120100
=143.4 20.6 2954.04
2 House Rental116.8×120100
=140.2 20.1 2818.02
3 Transportation121.5×120
100=145.8 20.9 3047.22
4 Entertainment100×120100
=120 17.7 2124
5 Children Tuition Fee100×120100
=120 20.7 2484
100 13427.28
Composite index , I=∑ IW
∑W
¿ 13427.28100
¿134.27
ACTIVITY 5: CONCLUSIONa) List three important items in a family expenditure. Explain how you select these important
items.
A traditional list of immediate "basic needs" is food (including water), shelter, and clothing. Many modern lists emphasize the minimum level of consumption of 'basic needs' of not just food, water, and shelter, but also sanitation, education, and healthcare. The basic needs for every living person in this world is food, house (rental) and transportation (for travel to gain the income)
b) What is the cost of living for a family in the year 2011 when compared to the year 2009?
Cost of living in the year 2011 is 16.6% more than year 2009 (is the base 100).
c) What are the impacts on a family if the cost of living increased by 20% in 2013?
Cost of living in the year 2013 is 39.98% more than year 2009 (is the base 100). An increase in the general level of prices implies a decrease in the purchasing power of the currency. That is, when the general level of prices rises, each monetary unit buys fewer goods and services. The effect of inflation is not distributed evenly in the economy, and as a consequence there are hidden costs to some and benefits to others from this decrease in the purchasing power of money.
d) If your suggestions are able to reduce the cost of living, how does it affect the Composite Index?
By assume the index number for 2011 based on 2009 is 100 for both item transportation and tuition fee.
No Item of expenditureIndex,I
2013 based 2009 Weightage IW
1 Food119.5×120100
=143.4 20.6 2954.04
2 House Rental116.8×120100
=140.2 20.1 2818.02
3 Transportation121.5×120
100=145.8 20.9 3047.22
4 Entertainment100×120100
=120 17.7 2124
5 Children Tuition Fee100×120100
=120 20.7 2484
100 13427.28
Composite index , I=∑ IW
∑W
¿ 13427.28100
¿134.27
e) What is the percentage of reduction in the cost of living in year 2013 if your suggestions are accepted?
The impact by controlling the 2 item above, we can reduce composite index by 5.71%.
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