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ACTIVITY 1: COLLECTING INFORMATION

Respondents 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)

Food

600

950

House Rental

450

650

Transportation

500

700

Entertainment

200

320

Children Tuition Fee

120

180

Total

Name of interviewer: ____________________________________

Class: ___________________

.........................................................

...........................................

Respondents signature

Date

Respondents 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

Food

House Rental

Transportation

Entertainment

Children Tuition Fee

Year 2009
(RM)

Year 2011
(RM)

Total

Name of interviewer: ____________________________________

Class: ___________________

.........................................................

...........................................

Respondents signature

Date

Respondents 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

Food

House Rental

Transportation

Entertainment

Children Tuition Fee

Year 2009
(RM)

Year 2011
(RM)

Total

Name of interviewer: ____________________________________

Class: ___________________

.........................................................

...........................................

Respondents signature

Date

Respondents 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

Food

House Rental

Transportation

Entertainment

Children Tuition Fee

Year 2009
(RM)

Year 2011
(RM)

Total

Name of interviewer: ____________________________________

Class: ___________________

.........................................................

...........................................

Respondents signature

Date

Respondents 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

Food

House Rental

Transportation

Entertainment

Children Tuition Fee

Year 2009
(RM)

Year 2011
(RM)

Total

Name of interviewer: ____________________________________

Class: ___________________

.........................................................

...........................................

Respondents signature

Date

Respondents 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

Food

House Rental

Transportation

Entertainment

Children Tuition Fee

Year 2009
(RM)

Year 2011
(RM)

Total

Name of interviewer: ____________________________________

Class: ___________________

.........................................................

...........................................

Respondents signature

Date

Respondents 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

Food

House Rental

Transportation

Entertainment

Children Tuition Fee

Year 2009
(RM)

Year 2011
(RM)

Total

Name of interviewer: ____________________________________

Class: ___________________

.........................................................

...........................................

Respondents signature

Date

Respondents 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

Food

House Rental

Transportation

Entertainment

Children Tuition Fee

Year 2009
(RM)

Year 2011
(RM)

Total

Name of interviewer: ____________________________________

Class: ___________________

.........................................................

...........................................

Respondents signature

Date

Respondents 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

Food

House Rental

Transportation

Entertainment

Children Tuition Fee

Year 2009
(RM)

Year 2011
(RM)

Total

Name of interviewer: ____________________________________

Class: ___________________

.........................................................

...........................................

Respondents signature

Date

Respondents 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

Food

House Rental

Transportation

Entertainment

Children Tuition Fee

Year 2009
(RM)

Year 2011
(RM)

Total

Name of interviewer: ____________________________________

Class: ___________________

.........................................................

...........................................

Respondents signature

Date

Form 2
Expenditure of the year 2009

Item of
expenditure

No

R1

R2

R3

R4

R5

R6

R7

R8

R9

R10

Mean

Food

650

540

600

750

800

600

480

650

700

630

640

House Rental

450

300

400

400

350

450

400

400

390

400

394

Transportation

300

200

300

400

400

350

350

450

400

250

340

Entertainment

200

150

100

150

200

150

150

200

200

150

165

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

Expenditure of the year 2011

Item of
expenditure

No

R1

R2

R3

R4

R5

R6

R7

R8

R9

R10

Mean

Food

600

650

800

850

900

700

550

800

850

950

765

House Rental

500

450

500

450

400

500

500

500

400

400

460

Transportation

350

300

450

600

500

440

390

500

400

200

413

Entertainment

150

200

150

150

150

150

200

150

200

200

170

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

Food

640

765

House Rental

394

460

Transportation

340

413

Entertainment

165

170

Children Tuition Fee

113

136

Total

ACTIVITY 2: ANALYSING THE DATA


a) Calculate the percentage of increase in expenditure for each item in 2011 based on 2009.

No

Item of
expenditure

Average
expenditure year
2009

Average
expenditure year
2011

Food

640

765

House Rental

394

460

Transportation

340

413

Entertainment

165

170

Children Tuition Fee

113

136

Percentage
2011 based 2009

Total

b) Find the expenditure index for each item.


No

Item of
expenditure

Percentage
2011 based 2009

Index

Food

119.5

House Rental

116.8

Transportation

121.5

Entertainment

103.0

Children Tuition Fee

120.4

c) Determine the weightage of each item in percentage. Hence, or otherwise present tour
weightage in the form of pie chart.

No

Item of
expenditure

Percentage
2011 based 2009

Index

Percentage
(Weightage)

Degrees
(Weightage)

Food

119.5

20.6

74.0

House Rental

116.8

20.1

72.3

Transportation

121.5

20.9

75.3

Entertainment

103.0

17.7

63.8

Children Tuition
Fee

120.4

20.7

74.6

100

360.0

Total

Children Tuition
Fee
21%
Entertainment
18%

Food
20%

House Rental
20%
Transportation
21%

d) Find the value of expenditure composite index in the year 2011 based on year 2009

No

Item of
expenditure

Index,

Percentage
(Weightage)

Food

119.5

20.6

2461.7

House Rental

116.8

20.1

2347.7

Transportation

121.5

20.9

2539.4

Entertainment

103.0

17.7

1823.1

Children Tuition
Fee

120.4

20.7

2492.3

100

11664.1

Total

ACTIVITY 3: INTERPRETING THE REESULT


a) Describe the expenditure of each item based on the value of expenditure index you obtained.

Index,

No

Item of expenditure

Food

119.5

House Rental

116.8

Transportation

121.5

Entertainment

103.0

Children Tuition Fee

120.4

Index
125
120
115
110
105
100
95
90
Food

House Rental

Transportation

Entertainment

Children Tuition Fee

No
1

Item
Food

House Rental

Transportation

Entertainment

Children Tuition Fee

Descriptions
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%.
House rental index number is 116.8, increase with the percentage of
16.8% compare the previous year 2009.
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.
Entertainment with the small value of index number in the list of
item which is 103, increase with small percentage of 3%.
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,
2011 based 2009

Food

119.5

House Rental

116.8

Transportation

121.5

Entertainment

103.0

Children Tuition Fee

120.4

Index,
2013 based 2009

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

116.6

120

2009

2011

2013

Method 2
Index,
2013 based 2009

No

Item of expenditure

Food

20.6

2954.04

House Rental

20.1

2818.02

Transportation

20.9

3047.22

Entertainment

17.7

2187.75

Children Tuition Fee

20.7

2991.15

100

13998.15

Weightage

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.
Index,
2013 based 2009

No

Item of expenditure

Food

20.6

2954.04

House Rental

20.1

2818.02

Transportation

20.9

3047.22

Entertainment

17.7

2124

Children Tuition Fee

20.7

2484

100

13427.28

Weightage

ACTIVITY 5: CONCLUSION
a) 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.
Index,
2013 based 2009

No

Item of expenditure

Weightage

Food

20.6

2954.04

House Rental

20.1

2818.02

Transportation

20.9

3047.22

Entertainment

17.7

2124

Children Tuition Fee

20.7

2484

100

13427.28

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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