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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
650
600
House Rental
450
500
Transportation
300
350
Entertainment
200
150
100
130
Total
1700
1730
Class: ___________________
.........................................................
...........................................
Respondents signature
Date
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
540
650
House Rental
300
450
Transportation
200
300
Entertainment
150
200
100
140
Total
1290
1740
Class: ___________________
.........................................................
...........................................
Respondents signature
Date
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
800
House Rental
400
500
Transportation
300
450
Entertainment
100
150
150
140
Total
1550
2040
Class: ___________________
.........................................................
...........................................
Respondents signature
Date
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
750
850
House Rental
400
450
Transportation
400
600
Entertainment
150
150
130
130
Total
1830
2180
Class: ___________________
.........................................................
...........................................
Respondents signature
Date
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
800
900
House Rental
350
400
Transportation
400
500
Entertainment
200
150
100
140
Total
1850
2090
Class: ___________________
.........................................................
...........................................
Respondents signature
Date
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
700
House Rental
450
500
Transportation
350
440
Entertainment
150
150
100
140
Total
1650
1930
Class: ___________________
.........................................................
...........................................
Respondents signature
Date
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
480
550
House Rental
400
500
Transportation
350
390
Entertainment
150
200
120
140
Total
1500
1780
Class: ___________________
.........................................................
...........................................
Respondents signature
Date
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
650
800
House Rental
400
500
Transportation
450
500
Entertainment
200
150
110
150
Total
1810
2100
Class: ___________________
.........................................................
...........................................
Respondents signature
Date
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
700
850
House Rental
390
400
Transportation
400
400
Entertainment
200
200
120
100
Total
1810
1950
Class: ___________________
.........................................................
...........................................
Respondents signature
Date
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
630
950
House Rental
400
400
Transportation
250
200
Entertainment
150
200
100
150
Total
1530
1900
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
100
100
150
130
100
100
120
110
120
100
113
Total
1700 1290 1550 1830 1850 1650 1500 1810 1810 1530
1652
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
130
140
140
130
140
140
140
150
100
150
136
1730 1740 2040 2180 2090 1930 1780 2100 1950 1900
1944
Total
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
113
136
Total
1652
1944
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
113
136
Total
1652
1944
Percentage
2011 based 2009
581.2
Item of
expenditure
Percentage
2011 based 2009
Index
Food
119.5
House Rental
116.8
Transportation
121.5
Entertainment
103.0
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
581.2
100
360.0
Total
581.2
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
Total
581.2
100
11664.1
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
120.4
Index
125
120
115
110
105
100
95
90
Food
House Rental
Transportation
Entertainment
No
1
Item
Food
House Rental
Transportation
Entertainment
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.
No
Item of expenditure
Index,
2011 based 2009
Food
119.5
House Rental
116.8
Transportation
121.5
Entertainment
103.0
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
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
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
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%.