Quantitative Techniques

Quantitative Techniques in Business
Board of Studies
Prof. H. N. Verma Prof. M. K. Ghadoliya

Vice- Chancellor Director,
Jaipur National University, Jaipur School of Distance Education and Learning
Jaipur National University, Jaipur
Dr. Rajendra Takale
Prof. and Head Academics
SBPIM, Pune
___________________________________________________________________________________________
Subject Expert Panel
Prof. Milind M. Kulkarni Ashwini Pandit

Professor, Sinhgad College of Engineering Subject Matter Expert
Pune
___________________________________________________________________________________________
Content Review Panel
Tejaswini Mulay
Subject Matter Expert
___________________________________________________________________________________________
Copyright ©
This book contains the course content for Quantitative Techniques in Business.
First Edition 2013
Printed by
Universal Training Solutions Private Limited
Address
05th Floor, I-Space,
Bavdhan, Pune 411021.
All rights reserved. This book or any portion thereof may not, in any form or by any means including electronic
or mechanical or photocopying or recording, be reproduced or distributed or transmitted or stored in a retrieval
system or be broadcasted or transmitted.
___________________________________________________________________________________________
Index
I. Content....................................................................... II
II. List of Tables. ......................................................... VII
III. Case Study............................................................... 76
IV. Solved Examples.................................................... 79
V. Bibliography............................................................. 86
VI. Self Assessment Answers........................................ 89
Book at a Glance
I
Content
Chapter I.........................................................................................................................................................I
Matrices & Determinants..............................................................................................................................1
Aim..................................................................................................................................................................1
Objective..........................................................................................................................................................1
Learning Outcome.......................................................................................................................................... 1
1.1 Introduction............................................................................................................................................... 2
1.2 Matrix........................................................................................................................................................ 2
1.3 Types of Matrix......................................................................................................................................... 2
1.3.1 Row Matrix............................................................................................................................... 2
1.3.2 Column Matrix.......................................................................................................................... 2
1.3.3 Square Matrix........................................................................................................................... 2
1.3.4 Zero or Null Matrix................................................................................................................... 2
1.3.5 Diagonal Matrix........................................................................................................................ 3
1.3.6 Unit or Identity Matrix.............................................................................................................. 3
1.4 Operations on Matrices............................................................................................................................. 3
1.4.1 Addition of Two Matrices......................................................................................................... 3
1.4.2 Subtraction of Two Matrices..................................................................................................... 3
1.4.3 Scalar Multiplication of a Matrix.............................................................................................. 3
1.4.4 Multiplication of Two Matrices................................................................................................ 4
1.5 Determinants............................................................................................................................................. 4
1.5.1 Singular and Non-singular Matrices......................................................................................... 4
1.6 Properties of Determinants....................................................................................................................... 4
1.7 Difference between Matrices & Determinants......................................................................................... 5
1.8 Uses & Applications of Matrices & Determinants................................................................................... 5
1.9 Solutions to System of Linear Equations.................................................................................................. 5
Summary........................................................................................................................................................ 7
References...................................................................................................................................................... 7
Recommended Readings.............................................................................................................................. 8
Self Assessment.............................................................................................................................................. 9
Chapter II..................................................................................................................................................... II
Mathematical Logic.....................................................................................................................................11
Aim................................................................................................................................................................11
Objectives..................................................................................................................................................... 11
Learning Outcome.........................................................................................................................................11
2.1 Introduction............................................................................................................................................. 12
2.1.1 Statement................................................................................................................................ 12
2.1.2 Compound statement.............................................................................................................. 12
2.1.3 Truth Table.............................................................................................................................. 12
2.2 Logical Connectives................................................................................................................................ 13
2.2.1 Conjunctions........................................................................................................................... 13
2.2.2 Disjunction.............................................................................................................................. 13
2.2.3 Negation.................................................................................................................................. 13
2.2.4 Conditional.............................................................................................................................. 14
2.3 Tautology and Contradiction................................................................................................................... 14
2.4 Laws of Algebra of Propositions............................................................................................................. 14
Summary.......................................................................................................................................................16
References.................................................................................................................................................... 16
Recommended Readings............................................................................................................................ 16
Self Assessment............................................................................................................................................ 17
II
Chapter III................................................................................................................................................... 19
Set Theory.................................................................................................................................................... 19
Aim............................................................................................................................................................... 19
Objective........................................................................................................................................................19
Learning Outcome........................................................................................................................................ 19
3.1 Definition . ............................................................................................................................................ 20
3.2 Standard Sets........................................................................................................................................... 20
3.3 Types of Sets........................................................................................................................................... 20
3.3.1 Finite set.................................................................................................................................. 20
3.3.2 Infinite set: If the set contains an infinite number of elements it is called an infinite set....... 20
3.3.3 Null set or Empty set: ............................................................................................................ 20
3.3.4 Universal set: ......................................................................................................................... 20
3.4 List of Symbols....................................................................................................................................... 20
3.4.1 Belongs to (∈)......................................................................................................................... 20
3.4.2 Not Belongs to (∉ ) : x ∉ A : x is not an element of set A..................................................... 20
3.4.3 Equal to ( = ) : A = B : A and B are equal sets........................................................................ 20
3.4.4 Not Equal to ( ≠ ) : A≠B : A and B are unequal sets............................................................... 20
3.4.5 Subset (⊂) : A⊂ B : Set A is a subset of set B........................................................................ 21
3.4.6 Not a Subset (⊄) .................................................................................................................... 21
3.5 Operations on Sets.................................................................................................................................. 21
3.5.1 Intersection (∩) . .................................................................................................................... 21
3.5.2 Complementary Set ( ′ or ) .................................................................................................... 21
3.6 De Morgan’s Law................................................................................................................................... 22
3.7 Application . ............................................................................................................................................ 22
Summary...................................................................................................................................................... 23
References.................................................................................................................................................... 23
Self Assessment............................................................................................................................................ 24
Chapter IV.................................................................................................................................................. 26
Arithmetic Progression & Geometric Progression.................................................................................. 26
Aim............................................................................................................................................................... 26
Objective....................................................................................................................................................... 26
4.1 Introduction:............................................................................................................................................ 27
4.2 Arithmetic Progression:.......................................................................................................................... 27
4.3 Geometric Progression:........................................................................................................................... 27
4.4 Sequences . ............................................................................................................................................ 27
4.4.1 Definition................................................................................................................................ 27
4.4.2 nth Term of the Sequence ( t ) n. ............................................................................................... 28
4.4.3 Sum of the First n Terms (S ) n. .............................................................................................. 28
4.5 Arithmetic Sequence or Arithmetic Progression..................................................................................... 29
4.5.1 Definition................................................................................................................................ 29
4.5.2 nth Term of an A.P.................................................................................................................... 29
4.5.3 Sum of the First n Terms of an A.P. (S ) n............................................................................... 29
4.5.4 Properties of an A.P................................................................................................................. 29
4.6 Geometric Progression............................................................................................................................ 30
4.7 nth Term of a G.P.................................................................................................................................... 30
4.8 Sum of the First n Terms of a G.P. (S ) n................................................................................................. 30
Summary...................................................................................................................................................... 31
References.................................................................................................................................................... 32
Self Assessment............................................................................................................................................ 33
III
Chapter V..................................................................................................................................................... 35
Probability................................................................................................................................................... 35
Aim............................................................................................................................................................... 35
Objective....................................................................................................................................................... 35
5.1 Introduction:............................................................................................................................................ 36
5.2 Definition . ............................................................................................................................................ 36
5.3 Sample Space & Events:......................................................................................................................... 36
5.4 The Venn Diagram:................................................................................................................................. 36
5.5 Rules of Probability:............................................................................................................................... 36
5.6 Applications:........................................................................................................................................... 37
5.7 Conditional Probability:.......................................................................................................................... 37
5.7.1 Independent & Dependent Events:......................................................................................... 37
5.7.2 Multiplication Rule:................................................................................................................ 37
5.7.3 Conditional Probability: Independent events.......................................................................... 37
5.7.4 Conditional Probability: Dependent Events........................................................................... 37
5.7.5 Multiplication Rule: Dependent Events.................................................................................. 37
5.8 How to calculate the Probabilities?......................................................................................................... 38
5.9 Steps to solve probability........................................................................................................................ 38
Summary...................................................................................................................................................... 40
References.................................................................................................................................................... 40
Self Assessment Questions.......................................................................................................................... 41
Chapter VI .................................................................................................................................................. 43
Permutation & Combination..................................................................................................................... 43
Aim............................................................................................................................................................... 43
Objective....................................................................................................................................................... 43
6.1 Introduction to principles of counting:................................................................................................... 44
6.2 Definition of Permutation: ..................................................................................................................... 44
6.3 Combination: ......................................................................................................................................... 44
6.4 Fundamental principles of counting:...................................................................................................... 44
6.4.1 Addition Rule :........................................................................................................................ 44
Summary...................................................................................................................................................... 46
References.................................................................................................................................................... 46
Self Assessment............................................................................................................................................ 47
Chapter VII................................................................................................................................................. 49
Interpolation................................................................................................................................................ 49
Aim............................................................................................................................................................... 49
Objective....................................................................................................................................................... 49
7.1 Introduction:............................................................................................................................................ 50
7.2 Definition of Interpolation:..................................................................................................................... 50
7.3 Application:............................................................................................................................................. 50
7.4 Need & Importance of Interpolation....................................................................................................... 50
7.5 Methods of Interpolation:....................................................................................................................... 51
7.5.1 Graphical Method:................................................................................................................. 51
7.5.2 Newton’s method of advancing differences:........................................................................... 51
7.5.3 Lagrange’s Method:................................................................................................................ 51
7.5.4 Newton-Gauss Foreword Method:.......................................................................................... 51
7.5.5 Newton-Guass Backward Method:......................................................................................... 51
IV
Summary...................................................................................................................................................... 53
References.................................................................................................................................................... 53
Self Assessment............................................................................................................................................ 54
Chapter VIII................................................................................................................................................ 56
Commercial Arithmetic.............................................................................................................................. 56
Aim............................................................................................................................................................... 56
Objective....................................................................................................................................................... 56
8.1 Introduction:............................................................................................................................................ 57
8.2 Commission & Brokerage:..................................................................................................................... 57
8.2.1 Application of Commission:................................................................................................... 57
8.3 Profit & Loss:.......................................................................................................................................... 57
8.4 Formulae . ............................................................................................................................................ 58
8.5 Interest . ............................................................................................................................................ 58
8.5.1 Interest:................................................................................................................................... 58
8.5.2 Simple Interest........................................................................................................................ 58
8.5.3 Compound Interest.................................................................................................................. 58
8.6 Present Worth.......................................................................................................................................... 58
8.7 True Discount (T.D.)............................................................................................................................... 58
8.8 Sum Due (S.D.)....................................................................................................................................... 58
8.9 Insurance . ............................................................................................................................................ 59
Summary...................................................................................................................................................... 60
References.................................................................................................................................................... 60
Self Assessment............................................................................................................................................ 61
Chapter IX................................................................................................................................................... 63
Relations & Functions................................................................................................................................ 63
Aim............................................................................................................................................................... 63
Objective....................................................................................................................................................... 63
9.1 Relation................................................................................................................................................... 64
9.2 Domain & Range of a Relation:.............................................................................................................. 64
9.3 Functions . ............................................................................................................................................ 64
9.3.1 Range, image, co-domain....................................................................................................... 65
9.4 Break Even Analysis:.............................................................................................................................. 65
Summary...................................................................................................................................................... 66
References.................................................................................................................................................... 66
Self Assessment............................................................................................................................................ 67
Chapter X.................................................................................................................................................... 69
Statistics....................................................................................................................................................... 69
Aim............................................................................................................................................................... 69
Objectives..................................................................................................................................................... 69
10.1 Introduction............................................................................................................................. 70
10.2 Definition of Statistics.......................................................................................................................... 70
10.3 Scope and Applications of Statistics..................................................................................................... 70
10.4 Characteristics of Statistics................................................................................................................... 70
10.5 Functions of Statistics........................................................................................................................... 71
10.6 Limitations of Statistics........................................................................................................................ 71
10.7 Classification......................................................................................................................................... 71
V
10.8 Objectives of Classification.................................................................................................................. 71
10.9 Characteristics of Classification............................................................................................................ 72
10.10 Frequency Distribution....................................................................................................................... 72
10.10.1 Discrete or Ungrouped Frequency Distribution.................................................................. 72
10.10.2 Continuous or Grouped Frequency Distribution................................................................ 72
10.10.3 Cumulative Frequency Distribution.................................................................................... 72
Summary...................................................................................................................................................... 73
References.................................................................................................................................................... 73
Self Assessments.......................................................................................................................................... 74
VI
List of Tables
Table 1.1 Difference between Matrices & Determinants........................................................ 5
Table 2.1 Conjunction Table......................................................................................................................... 13
Table 2.2 Disjunction Table.......................................................................................................................... 13
Table 2.3 Negation Table.............................................................................................................................. 13
VII
Chapter I
Matrices & Determinants
Aim
Aim of this chapter is to introduce the concept of matrices & determinants
Objective
Objective of this chapter is
• To understand the different types of matrices & determinants
• To bring forward an idea of applications of matrices in various fields
Learning Outcome
After end of this chapter students will conversant with
• What matrices are
• Performing basic operations on matrices
• Special forms of matrices
• The matrix determinant
• How to calculate the different matrices i.e. 2x2, 3x3, 2x3 matrix
1
1.1 Introduction
The study of matrices & determinants is of immense significance in business & economics.
We find the application of matrices & determinants in various topics of economics & management such as linear
programming, theory of games, general equilibrium analysis, matrix multiplier, input-output analysis & so.
With the help of matrices & determinants, we can solve equations & system of equations.
1.2 Matrix
A matrix is simply a set of numbers arranged in a rectangular table.
It is written in either ( ) or [ ] brackets.
A set of numbers arranged in a rectangular array of ‘m’ rows and ‘n’ columns, of an order m x n (Read as m by
n).
A=
Matrices are used to solve problems in:

• electronics
• statics
• robotics
• linear programming
• optimization
• intersections of planes
• genetics
Matrix Notation:
A matrix is written with ( ) or [ ] brackets.
Do not confuse a matrix with a determinant which uses vertical bars | |. A matrix is a pattern of numbers; a
determinant gives us a single number. The size of a matrix is written: rows × columns.
1.3 Types of Matrix

1.3.1 Row Matrix
A matrix having a single row is called a row matrix.
A=
1.3.2 Column Matrix

A matrix having a single column is called a column matrix.
A=

1.3.3 Square Matrix

A matrix having equal number of rows and columns is called a square matrix.
A=
1.3.4 Zero or Null Matrix

A matrix having each and every element as a zero is called zero or null matrix.
A=
2
1.3.5 Diagonal Matrix
A square matrix having all elements zero except the principal diagonal elements is called a diagonal matrix.
Matrix elements as a , a , a etc are called principal diagonal elements.
A=
1.3.6 Unit or Identity Matrix

A square matrix which is a diagonal matrix having all principal diagonal elements as one (unity).
A=
1.3.7 Equal Matrices

Two matrices A and B are said to be equal if A and B have the same order and each and every element of matrix A
is equal to the corresponding element of matrix B.
A=
1.4 Operations on Matrices
1.4.1 Addition of Two Matrices

Necessary Condition: The two matrices must be of same order.
Properties
Consider A, B, C matrices having the same order.
• (A+B) =( B+A)
• A+(B+C) = (A+B)+C
• A+ zero matrix = A
1.4.2 Subtraction of Two Matrices

Necessary Condition
The two matrices must have the same order.
Properties
Consider A, B and C are the matrices having same order.
• A-B = -(B-A)
• A-(B-C) = (A-B)-C=(A-C)-B
• A - zero matrix = A
• A A = zero matrix
1.4.3 Scalar Multiplication of a Matrix

Necessary Condition: Scalar must not be zero.
A=
3
Procedure
Let any non-zero scalar be K . and matrix
A
then scalar multiplication is denoted by
KA=
1.4.4 Multiplication of Two Matrices

Necessary Condition:
• Order is important in matrix multiplication. AB is not always equal to BA.
• The number of columns of the first matrix must match the number of rows of the second matrix.
• If the order of matrix A is m n and of matrix B is n l then the order of the resultant matrix of AB must be m l
Properties
Consider A, B, C are matrices.
• AB = BA
• ABC = (AB)C = A(BC)
• A(B+C) = AB + AC
• AI = IA = A
1.5 Determinants:
A determinant of a matrix represents a single number.
We obtain this value by multiplying and adding its elements in a special way.
We can use the determinant of a matrix to solve a system of simultaneous equations.
For example, if we have the (square) 2 × 2 matrix: then The determinant of this matrix is written within vertical
lines as follows:
A=
1.5.1 Singular and Non-singular Matrices

A square matrix A is said to be singular if |A| = 0.
A square matrix A is said to be non-singular if |A| ¹ 0.
Examples
1. Consider matrix A = 3 -6 then |A| = 3 -6 = 0
1 -2 1 -2
Therefore, matrix A is called a singular matrix.
2. Consider matrix A = 2 4 then |A| = 2 4 = 08
-5 -6 -5 -6
Therefore, matrix A is called a non-singular matrix.
1.6 Properties of Determinants:

• The value of determinants remains unchanged if its rows & columns are interchanged
• If any two rows/columns of a determinant changes by minus sign only
• If any two rows or columns of a determinant are identical, then its value is zero
• If each element of a row/column of a determinant is expressed as a sum of two or more terms, then the determinant
can be expressed as the sum of two or more determinants
4
• If each element of a row/column of a determinant is multiplied by the same constant & then added to the
corresponding elements of some other row/column, then value of determinant remains same
• If each element of a row/column of a determinant is zero, then its value is zero
1.7 Difference between Matrices & Determinants
Features Matrices Determinants

• A determinant is a square array of
• A matrix is simply a set of numbers numbers (written within a pair of vertical
Definition:
arranged in a rectangular table. lines) which represents a certain sum of
products.
Way of writing • It is written in Brackets • It is written in two straight lines
• These are resulted in set of numbers

Result • These are resulted in single number.
grouped in bracket.
• Scalar multiplication affect all the • Scalar multiplication only affects single
Affection
numbers in the matrix row & single column.
Nature • Matrices contain many elements • It has single number.
Value • Matrices can be negative • Determinants are always positive.
Table 1.1 Difference between matrices & determinants
1.8 Uses & Applications of Matrices & Determinants:

• Graph theory:
The adjacency matrix of a finite graph is a basic notion of graph theory.
• Linear combinations of quantum states in physics:
The first model of quantum mechanics by Heesenberg in 1925 represented the theory’s operations by
infinite dimentional matrices acting on quantum states. This is also referred to as Matrix Mechanics.
• Computer graphics
4x4 transformation rotaion matrices are commonly used in computer graphics.
• Solving linear equations:
Using row reduction
Cramer’s rule (Determinants)
Using the inverse matrix
• Cryptography:
It consists of Encryption & Decryption.
In Encryption data is converted into some unreadable form.
In decryption data, encrypted data converted into readable form.
5
1.9 Solutions to System of Linear Equations

Consider system of equations as,
a x + b y = c ……………..(1)
a x + b y = c ……………..(2)
Note:
x, y are variables of the equations. a1 ,b1 , a2 , b2 are coefficients of variables c1 , c2 are constants. then the solution
can be obtained by Crammer’s Rule as follows:
step 1: Solve the determinant of coefficients of variables say delta
=
Step 2: Solve the determinant replacing constants in the place of coefficients of variable x say delta x ( ) x
=
Step 3: Solve determinant replacing constants in the place of coefficients of variable y say delta y ( ) y
=
Step 4: Obtain solution as

x = /  and y =
Note: For a system of three variables obtain solution as, x = /  and y = z= / 
Solved Examples:
1) Solve 2x+3y = 9
-x + y = -2
Using Crammer’s Rule
= 2+3 = 5
= 9+6 = 15 x
= -4+9
=5
Therefore, solution is as x = / = 15/5 = 3 x y = = 5/5 = 1 y
6
Summary
• A matrix is defined as a rectangular array of elements.
If the arrangement has m rows and n columns, then the matrix is of order mxn (read as m by n).
A matrix is enclosed by a pair of parameters such as ( ) or [ ]. It is denoted by a capital letter.
• Two matrices are said to be comparable if they have the same order.
• Addition and subtraction of two matrices is possible only if they have the same order.
If two matrices A and B are of same order, then A - B = A + (- B).
• Commutative law, associative law holds good for addition of matrices.
• The additive identity of a matrix A of order mxn is the zero matrix of order mxn.
• The additive inverse of a matrix A is -A.
• The multiplication of two matrices A and B is possible if the number of columns of A is equal to the number
of rows B.
Suppose A is a matrix of order mxn and B is a matrix of order nxp, the matrix AB is of order mxp.
• If A, B and C are the matrices which can be multiplied then
• Matrix multiplication is not commutative, i.e., AB BA (always)
• Associative law holds good for matrix multiplication, i.e., (AB)C = A(BC)
• Matrix multiplication is distributive with respect to addition A(B + C) = AB + AC or (A + B)C = AC + BC
• If A is a matrix of order mxn and is a scalar (real or complex) then the matrix kA is obtained by multiplying
each element of A by k.to every square matrix, a value can be associated which is known as the determinant
of the matrix.
• Note that the determinant of kA where k is a scalar and A is a square matrix, is given by kn times determinant
of A.i.e., is |kA| = kn |A|
• The value of the determinant remain unchanged if its rows and columns are interchanged
If two rows or columns of a determinant are interchanged, then the sign of the determinant is changed.
If any two rows or columns of a determinant are equal, then its value is zero.
If each element of a row or column of a determinant multiplied by k, then its value is multiplied by k.
If two rows or columns of determinant are proportional, the value of the determinant is zero.
A square A = [aij] is said to be symmetric if AT = A,
i.e., if aij = aji
A square matrix A is said skew symmetric if AT = - A, i.e., aij = - aji
Any square matrix A can be expressed as the sum of a symmetric matrix and a skew symmetric matrix
as follows
For a 2 x 2 matrix, the adjoint is got by interchanging elements in the leading diagonal and changing
signs in the other diagonal.
7
References
• Dr. V.N. Kala, Rajashri Rana. Matrices. 2009.Laxmi Publication ltd. First Edition. P1-25 & 140-144.
• TR Jain, SC Agarwal. Business Mathematics & Statistics. V.K Enterprises.2009-10. Revised. P1-40.
• TR Jain, SC Aggarwal, Quantitative Methods. 2008-09. FK Publication. P1-92.
• J.O.Bird(2001), Newnes engineering mathematics pocket book, Matrices & determinants, Butterworth &
hannmen, p230-240.
• Gareth Williams (2009), Gareth Williams, Matrices & determinants, Jones& Bartlett Publications, 7th Edition,
p69-165.
• David Poole(2005), Linear Algebra, Matrix, Cengage learning, 2nd Edition, p134-150.
Recommended Readings
• David McMahon, Linear Algebra Demystified, Matrices, McGraw-hill publication, 2005, p34-74
• Howard Anton, Elementary Linear Algebra, Matrices, FM Publications, 10th edition 2010, p1-106.
• Warner Greub, Linear Algebra graduate texts in mathematics, Springer, 1975, p83-131
8
Self Assessment
1. Given the Matrix P= & aij is the element of matrix P in the ith row & the jth column, State the
value of a21.
a. 2
b. 3
c. 4
d. 5
2. It is given that P= and Q= . Find the value of x+y, if P=Q.

a. 3
b. 5
c. 6
d. 8

3. A _______ is rectangular array of numbers/elements enclosed in large brackets.
a. Square Matrix
b. Determinant
c. Paranthesis
d. Matrix
4. Addition or Subtraction of two matrices can only be carried out if they are of the _______.
a. different order
b. same order
c. complimentary
d. greater or smaller
5. The multiplication of matrix by a number is called __________.

a. rectangular multiplication
b. scalar multiplication
c. square multiplication
d. multiplication
6. Choose correct option from the following.

The matrix A=
a. Symmetric
b. Square matrix
c. Null matrix
d. Diagonal Matrix
7. Using determinants, find the area of triangle whose vertices are

(2, -7), (1, 3), (10, 8).
a. -47.5
b. 47.5
c. 45.0
d. 45.9
9
8. Add the following two matrices

A = B =
a.
b.
c.
d.
9. Multiply the matrix
a.
b.
c.
d.
10. Find the inverse of A =
a.
b.
c.
d.
10
Chapter II
Mathematical Logic
Aim
• Aim of this chapter is to introduce the mathematical logic in management perspective by defining the areas of
foundation of mathematics
Objectives
• To treat the operations of formal logic in symbolical & algebraic way
• To understand the logical connectives to describe the statements
• To explain different laws of algebra of prepositions
• To enrich the different statement patterns in mathematical logic
Learning Outcome
At the end of this chapter students will able to
• Use the mathematical logic in defining management problems
• Solve the complex procedures into simpler form
• Apply the mathematical logic & its applications to analyze & define concepts of management
11
2.1 Introduction
Mathematical logic
Mathematical Logic is a tool for providing precise meaning to mathematical statements.
It includes:
• A formal language for expressing them.
• A concise notation for writing them.
• A methodology for objectively reasoning about their truth or falsity
2.1.1 Statement
• A statement/simple statement, or a proposition, is a declarative sentence that is either true or false, but not
both
• Simple statement is basic building block of logic
2.1.2 Compound statement

• 0Compound statement is combination of two or more statements. E.g. Today is Friday and Today is Holiday
2.1.3 Truth Table

• The value of statement is represented by Truth table. Only TRUE (T) & FALSE (F) is appeared in Truth
Table.
• The compound statements are basically connected with the connectives:
Negation
Conjunction
Disjunction
Conditional
Bi-conditional
• Symbols p, q, r, called statement variables
• Symbols ~, ∧, ∨, →, and ↔ are called logical connectives
• If A and B are statement formulas, then the expressions (~A), (A ∧ B), (A ∨ B), (A → B) and (A ↔ B) are
statement formulas
• Expressions are statement formulas that are constructed only by using above statements
Truth value (Truth)

• One of the values “truth” or “falsity” assigned to a statement
True is abbreviated to T or 1
False is abbreviated to F or 0
• Negation (Falsity)
The negation of p, written ∼p, is the statement obtained by negating statement p
Truth values of p and ∼p are opposite
Symbol ~ is called “not” ~p is read as “not p”
Example:
p: A is a consonant.
~p: it is the case that A is not a consonant.
Precedence of logical connectives is:

~ highest
∧ second highest
12
∨ third highest
→ fourth highest
↔ fifth highest
2.2 Logical Connectives:

2.2.1 Conjunctions:
• Conjunction is the combination of statements using “AND”
• The conjunctions of two statements are TRUE, only if each component is True
• It is represented by the sign ‘^’
p q p^q
T T T
T F F
F T F
F F F
Table 2.1 Conjunction table
2.2.2 Disjunction:
• Disjunction is the combination of statements using “OR”
• The conjunction of two statements is true if either one component is true
• It is represented as sign ‘v’
p q pvq
T T T
T F T
F T T
F F F
Table 2.2 Disjunction table
2.2.3 Negation:
• Negation is the NOT of a simple statement
• The Truth value of negation of a statement is the opposite of the truth value of the original statement
• It is represented as sign ‘~’
p -p
T F
F T
Table 2.3 Negation table
13
2.2.4 Conditional:
• Conditional statement is the statement in the form, if p, then “p implies q”
• The conditional pq is true unless p is true & q is False
• It is represented as sign “”
p q p q
T T T
T F F
F T T
F F T
Table 2.4 Conditional table
Bi-conditional:
• Bi-conditional is statement in the form p if and only if q or p if q
• If p & q have the same value, p↔q is true, otherwise will be False
• It is represented as sign “↔
p q p↔ q
T T T
T F F
F T F
F F T
Table 2.5 Bi-conditional able
2.3 Tautology and Contradiction

• Tautology: A statement is said to be a tautology if it is true for all the truth value of its components
• Contradiction or Fallacy: A statement is said to be a contradiction if it is false for All the truth value of its
components
2.4 Laws of Algebra of Propositions

Identity:
p V p ≡ p p Λ p ≡ p p → p ≡ T p ↔ p ≡ T
p V T ≡ T p Λ T ≡ p p → T ≡ T p ↔ T ≡ p
p V F ≡ p p Λ F ≡ F p → F ≡ ~p p ↔ F ≡ ~p
T → p ≡ p
F→p≡T
Commutative:
p V q ≡ q V p p Λ q ≡ q Λ p p → q ≠ q → p p ↔ q ≡ q ↔ p

Complement:
p V ~p ≡ T p Λ ~p ≡ F p → ~p ≡ ~p p ↔ ~p ≡ F
~p → p ≡ p
14
Double Negation:
~(~p) ≡ p
Associative:
p V (q V r) ≡ (p V q) V r
p Λ (q Λ r) ≡ (p Λ q) Λ r
Distributive:
p V (q Λ r) ≡ (p V q) Λ (p V r)
p Λ (q V r) ≡ (p Λ q) V (p Λ r)
Absorbtion:
p V (p Λ q) ≡ p
p Λ (p V q) ≡ p

De Morgan’s law:
~(p V q) ≡ ~p Λ ~q
~(p Λ q) ≡ ~p V ~q

Equivalence of Contrapositive:
p → q ≡ ~q → ~p
Others:
p → q ≡ ~p V q
p ↔ q ≡ (p → q) Λ (q → p)
15
Summary
• Mathematical logic is logic relevant to the study of mathematics, logic relies on the following:
A statement (or a proposition) may be described as an assertive sentence, which is either true or false,
but not both
The statements formed by combining two or more simple statements with logical connectives are called
compound or composite statements. ‘True' or ‘False' are called the truth values of a statement. If a
statement is true, then its truth value is ‘True' denoted by ‘T'. If a statement is false, then its truth value
is ‘False' denoted by ‘F'
It is a tabular form showing the truth values of various simple and compound statements in a number
of rows and columns
The statements are described in Negation, Conjunction, Implication, Dissjunction.etc
Two statement patterns s and s are said to be logically equivalent if they have identical truth tables
• Tautology: A statement is said to be a tautology if it is true for all the truth value of its components
References
• Joseph S. Fulda (1993). Exclusive Disjunction and the Bi-conditional: An Even-Odd Relationship. Mathematics
Magazine 66 (2):124
• Philip P. Hallie (1954). A Note on Logical Connectives. Mind 63 (250):242-245
• Dean P. McCullough (1971). Logical Connectives for Intuitionist Propositional Logic. Journal of Symbolic
Logic 36 (1):15-20.
• Heinrich Wansing (2006). Logical Connectives for Constructive Modal Logic. Synthese 150 (3)
• Leidn university, http://www.math.leidenuniv.nl/~redig/lecturenotesstatistics.pdf, last accessed date: 14th oct
2010
• Star, Statistics http://www.stat-help.com/intro.pdf , last accessed date: 14th oct 2010
• Richald, Statistics, http://people.richlan,.edu/james/lecture/m170, last accessed date: 14th oct 2010
• Art of problem solving, Statistics, http://www.artofproblemsolving.com/LaTeX/Examples/statistics_firstfive.
pdf last accessed date: 14th oct 2010
• Answers.com, Statistics, http://www.answers.com/topic/statistics last accessed date: 14th oct 2010
16
Self Assessment
1. John likes music & Films.
a. p ^ q
b. p  q
c. p ~ q
d. p v q
2. Peter is a doctor or an Engineer.

a. p ^ q
b. p ~ q
c. p  q
d. p v q
3. John likes Yamaha and Alex likes Hero Honda.

a. p  q
b. p ~ q
c. p ^ q
d. p v q
4. 2+4=6 and 6 is composite number.

a. p ~ q
b. p ^ q
c. p  q
d. p v q
5. 2+6 ≠ 7 or 7 is prime number.

a. p ~ q
b. p v q
c. p  q
d. p ^ q
6. If a number is not real then it is complex.

a. p q
b. ~p ~q
c. p ~q
d. ~p q
7. If Alex is intelligent or hardworking then logic is easy.

a. (~p ~q)
b. (~r ~s)
c. (p q) r
d. p ^ q = r
17
8. If 3 is not odd and 2 is not even then 7 is not odd or 8 is not even.
a. (~p ~q) (~r ~s)
b. ~p v q = ~r v ~s
c. p V q = r V s
d. (p q) r.
9. Write TRUTH TABLE for following statement

~p v ~q
10. Write TRUTH TABLE for following statement

p^(~p v ~q)
18
Chapter-III
Set Theory
Aim
• Aim of this chapter is to understand the concept of Set theory
Objective
• To understand the types of sets
• To explain general framework of set theory
• To understand the properties of set theory
• To emphasize on operations of set theory
Learning Outcome
At the end of this chapter students will be conversant with following
• Elementary operations of sets i.e. Union, Intersection etc
• Formal logic behind set theory is clearly understood
• Elementary fact of set theories helps to explain the functional & binary relation between two sets
• The importance of set theory in applied mathematics such as, Descriptive set theory, Fuzzy set theory, Inner
model theory, Large Cardinals, Determinacy, Forcing etc
19
3.1 Definition
A set is a collection of well-defined objects enclosed in curly brackets, generally denoted by capital letters.
The objects which form the set are called elements or members of the set.
e.g. A = {1,2,3,……100}= set of numbers from 1 to 100

V = {a,e,i,o,u }= set of all vowels
3.2 Standard Sets

• N = set of all natural numbers = {1,2,3,4……}
• Z = set of all integers = {….. 3,-2,-1,0,1,2,3,…….}
• Q = set of all rational numbers = {p/q : p, are integers , q≠0}
• R = set of all real numbers
3.3 Types of Sets

3.3.1 Finite set: If the set contains a finite number of elements it is called a finite set. A= {10,20,40}
3.3.2 Infinite set: If the set contains an infinite number of elements it is called an infinite set.
A= {10,20,40,…………..}
3.3.3 Null set or Empty set: The set having no element is called a null set or an empty set. It is denoted by
the symbol ‘φ'.
A= or A= {}
3.3.4 Universal set

A set of all possible outcomes of all the sets is called Universal set. It is denoted by the letter ‘U’
Let A = {1,2} B= {2,3,4} C= {5,6,7,8} then Universal set can be defined as U = {1,2,3,4,5,6,7,8}
Or U = {x | x ≤ 8 }
3.4 List of Symbols

3.4.1 Belongs to (∈) : x ∈ A : x is an element of set A If A = set of all the capital letters of the English
alphabet. X = element x has value ‘B' then
x is one of the elements of set A and can be written as x ∈ A and read as x belongs to set A.
3.4.2 Not Belongs to (∉ ) : x ∉ A : x is not an element of set A

If A= set of all capital letters of the English alphabet.
x= element x is having value ‘b’
then value of x is ‘b’ (i.e. small ‘b’ and not capital ‘B’) Thus, it is not an element of set A and can be written as x ∉
A and read as x does not belong to set A.
3.4.3 Equal to ( = ) : A = B : A and B are equal sets.

Let A= {1,2,3} B= {1,2,3} then A = B
A= {10,20,30}B= {20,30,10}even then A = B
3.4.4 Not Equal to ( ≠ ) : A≠B : A and B are unequal sets.

Let A= {1,2,3} B= {10,20,30} then A ≠ B
A= {10,20,30}B= {20,30,10,40} even then A ≠B
20
3.4.5 Subset (⊂) : A⊂ B : Set A is a subset of set B
Let A={1,2,3,4} B={1,2,3,4,5,6}
Since every element of set A is also an element of set B, A is called subset of B.
Symbolic representation as x ∈ B for ∀ χ ∈ A [∀: all or every]
Therefore, A ⊂ B
3.4.6 Not a Subset (⊄):

A ⊄ B: A is not a subset of B
Let A={1,2,3,4} B={2,3,4,5,6}
Since every element of set A is not an element of set B, A is not a subset
of B. Symbolic representation is as x ∉ B for x ∈ A [ : all or every ]
Here, an element having value 1 is in A but it is not in set B [ 1∈A but
1∉B] Thus, A ⊄ B.
3.5 Operations on Sets

3.5.1 Union (∪): A ∪ B: Union set of sets A and B It contains all the elements of set A as well as set B.
If A= {a, b, c, d, e}B = {d, f, g}then A∪ B = {a, b, c, d, e, f, g}
3.5.1 Intersection (∩):

A ∩ B: Intersection set of sets A and B
It contains all the elements which are common to set A and set B.
If A= {a, b, c, d, e} B = {d, f, g} then A ∩ B = {d }
If there is no common element between the two sets A and B then the sets are called Disjoint sets. Or if A ∩ B = φ
then sets A and B are called Disjoint sets.
Let A= {1,2,3} B={4,5,6} then A ∩ B = φ
3.5.2 Complementary Set ( ′ or ) :

A′ or A : Complementary set of A. If a set has all elements of a Universal set except the elements of set A,
then that set is called the complementary set of A. It is denoted by A′ or Ac
Let U = {1,2,3,4,5} A= {1,3} then A′ or Ac = {2,4,5}
• Difference ( - ) : A−B : Different set of sets A and B.

The different set of two sets A and B are the set of elements of A which
are not in B and is denoted by A− B
Let A = {1,2,3,4,5,6,7} B = {2,4,6}
then A- B = {1,3,5,7 }
Note that A − B ≠ B − A
The different set of two sets B and A is the set of elements of B which are
not in A and is denoted by B − A
Let A = {1, 2, 3, 4, 5, 6, 7} B = {2, 4, 6}
then B− A = { }= φ
Example:
Let A= {1, 2, 3, a} B= {1, 2, b, c, l, m}
then A- B = {3, a}
B- A = {b, c, l, m}
21
• Cartesian Product (x): A x B: Cartesian product of sets A and B.

For non-empty sets A and B, A x B is the set of all ordered pairs (a, b) of
elements a∈ A , b∈ B
Thus, A x B = {(a, b): a∈ A, b∈ B}
Note that A x B ≠ B x A
Example:
Let A= {a, b, c} B = {1,2}then
A x B = {(a, 1) (a, 2) (b, 1) (b, 2) (c, 1) (c, 2) }
B x B = {(1, 1) (1, 2) (2, 1) (2, 2) } Note that (1, 2) ≠ (2, 1)
3.6 De Morgan’s Law

• The complement of the union of two sets is equal to the intersection of
their complements.
(A∪B)′ = A′∩B′ or (A ∪B)c = Ac ∩Bc
• 0The complement of the intersection of two sets is the union of their
complements.
(A∪B)′ = A′∩B′ or (A ∪B)c = Ac ∩Bc
Some more results:

If A is a finite set, then we denote the number of elements in A by symbol n(A) or m(A)
Consider A and B as finite sets then,
• n(A∪B) = n(A) + n(B)- n(A∩B)
• n(A∪B∪C) = n(A)+n(B)+n(C)- n(A∩B)- n(B∩C)- n(A∩C) + n(A∩B∩
3.7 Application:
• All mathematical concepts are now defined formally in terms of sets and set theoretic concepts. For example,
mathematical structures as diverse as graphs, manifolds, rings, and vector spaces are all defined as sets having
various (axiomatic) properties
• Equivalence and order relations are ubiquitous in mathematics, and the theory of relations is entirely grounded
in set theory
• Set theory is also a promising foundational system for much of mathematics, i.e. all mathematical theorems
can be derived using an aptly designed set of axioms for set theory, augmented with many definitions,
using first or second order logic
• For example, properties of the natural and real numbers can be derived within set theory, as each number system
can be identified with a set of equivalence classes under a suitable relation whose field is some infinite set
• Set theory as a foundation for mathematical analysis, topology, abstract algebra, and discrete mathematics is
likewise uncontroversial; mathematicians accept that (in principle) theorems in these areas can be derived from
the relevant definitions and the axioms of set theory
• Few full derivations of complex mathematical theorems from set theory have been formally verified, however,
because such formal derivations are often much longer than the natural language proofs mathematicians
commonly present
• One verification project, Metamath, includes derivations of more than 10,000 theorems starting from
the ZFC axioms and using first order logic
22
Summary
• Set theory begins with a fundamental binary relation between an object o and a set A. If o is a member (or element)
of A, we write o ∈A. Since sets are objects, the membership relation can relate sets as well
• A derived binary relation between two sets is the subset relation, also called set inclusion. If all the members
of set A are also members of set B, then A is a subset of B, denoted A ⊆ B
• There are six Concepts available in set theory. The concepts are, Union
• The set A and B is symbolized by A∪B .That is group the values of the set A and B. Intersection
• The set A and B symbolized by A ∩B. It means we only select the common values of the set A and B.
Complement
• It is represented by Ac is the all values of U that are not components of A. Difference
• The sets A and B are the group of all objects. In that entity that is an element of accurately one A and B. Cartesian
Product
• A x B is the Cartesian product of set A and B. Powers Set Whose elements are all possible subsets of A is called
the power set of A
References
• Rajendra Akerkar, Discrete Mathematics: Set theory, Dorling Kindersley Publication India. 2008. 2nd Impression
2009. P109-123
• T. Veeraranjan, Discrete Mathematics with graph theory & Combinatorics: Set theory, McGraw-Hill Publication,
7th Edition. 2008. P51-64
• Seymour Lipschutz, Set theory and related topics: Set Theory, Mcgraw-Hill Publication. 1998, 2nd Edition.
P1-35
• Donald Waters(2006), Quantitative Methods for business, Set Theory, Prentice Hall Publication,4th Edition
• Diana Bedward (1999), Quantitative methods, Set theory, Elsevier,
• J. Curwin Slater(2007), Quantitaitve Methods, Set theory, Thomson Learning,
23
Self Assessment
1. The Universal set U= {1,2,…..,9} an the sets:
A= {1,2,3,4,5},
B={4,5,6,7},
C={5,6,7,8,9},
D={1,3,5,7,9},
E={2,4,6,8}
F={1,5,9}.
Find out the following;
&

A= {1,2,3,4,5},
B={4,5,6,7},
C={5,6,7,8,9},
D={1,3,5,7,9},
E={2,4,6,8}
F={1,5,9}.
&

A= {1,2,3,4,5},
B={4,5,6,7},
C={5,6,7,8,9},
D={1,3,5,7,9},
E={2,4,6,8}
F={1,5,9}.
&

A= {1,2,3,4,5},
B={4,5,6,7},
C={5,6,7,8,9},
D={1,3,5,7,9},
E={2,4,6,8}
F={1,5,9}.
&
5. Determine which of the following sets are finite:

a. Lines parallel to the x axis,
b. Letters in the English alphabet
c. Months in the year
d. Animals living on the earth
24
6. Find the elements of the set A=[{1,2,3}{4,5},{6,7,8}]. Determine whether each of the following is True or
False.

7.
8. 0
9. {{4,5}}⊆ A
10. Consider the class A of Set = =[{1,2,3}{4,5},{6,7,8}]. Find the subclass of B of A, consists of the sets in A
with exactly;
a. Three elements
b. Four elements
11. let A={a,b,c,d,e} B={a,b.d.f,g} C={b,c,e,g,h} D={d,e,f,g,h}. Find

a. A∪B

B∩C

C∩D

A∩D
15. Find A∩B when A = {11, 13, 16} and B = {7, 11, 16, 17}.
a. {7, 11, 16}
b. {8,11, 16}
c. {11, 13, 16}
d. {11, 13, 17}
16. Find A∪B when A = {11, 13, 16} and B = {7, 11, 16, 17}.
a. {7,11,13,16,17}
b. {11,13,16,17}
c. {7,11,16,17}
d. {7,11,!7}
25
Chapter IV
Arithmetic Progression & Geometric Progression
Aim
• Aim of this chapter is to introduce the basic concept of Arithmetic & Geometric Progression
Objective
Objective of this chapter is to understand the following topics;
• Progression/sequences
• Arithmetic & geometric progression
• Applications of A.P & G.P
• Properties of A.P & G.P
Learning Outcome
At the end of this chapter students will be conversant with
• Use of A.P. & G.P. in mathematics & its allied branches
• Able to define the arithmetic representation of series
• Able to define the geometric representation of series
• Able to apply the AP & GP in
26
4.1 Introduction:
A series in which terms increase or decrease by a common difference is called Arithmetic Progression.
The following series are in A.P.
1+2+3+4+5+….. common difference = 1
3+5+7+9+11+…… common difference = 2 are series, in the first of these series, the first term is 3 and next terms
are obtained by adding 2 each time the preceding term. In the second of these series each term, beginning with the
second, is the double of the preceding term.
Note-1:
The nth term of A.P. is also called general term & denoted by, i = a+(n-1)d
Note-2
The rule to find the common difference (d): Subtract first term from the second term.
4.2 Arithmetic Progression:

• An arithmetic progression is a list of numbers where the difference between successive numbers is
constant.
• The terms in an arithmetic progression are usually denoted as u1; u2; u3 etc. where u1 is the initial term
in the progression, u2 is the second term, and so on; un is the nth term.
• An example of an arithmetic progression is,
2, 4, 6, 8, 10, 12, 14.
Since, the difference between successive terms is constant, we have
u3 - u2 = u2 - u1
and
In general,
un+1 – un = u2 – u1
We will denote the difference u2 - u1 as d, which is a common notation.
4.3 Geometric Progression:

A geometric progression is a list of terms as in an arithmetic progression but in this case the ratio of successive
terms is a constant. In other words, each term is a constant time the term that immediately precedes it. Let’s write
the terms in a geometric progression as u1; u2; u3; u4 and so on.
An example of a geometric progression is

10, 100, 1000, 10000.
Since the ratio of successive terms is constant, we have
The ratio of successive terms is usually denoted by r and the first term again is usually written a.
4.4 Sequences
4.4.1 Definition
• A sequence is a collection of numbers arranged in some order and obtained in succession according to some
definite rule
• The individual numbers forming a sequence are called the terms of the sequence
Examples
Let 2, 4, 6, 8, 10, 12, 14,……… be a sequence and 2 or 4 or 6 etc. are the
terms of the sequence.
27
4.4.2 nth Term of the Sequence ( t ) n

For a sequence we can find the nth term according to some definite rule used in that sequence.
Examples
(1) Let 3, 6, 9, 12, 15, 18, 21……………… be a sequence. Find t . n
Here, we observe that the first term is 3 (i.e.3x1),the second term is 6
(i.e. 3x2), the third term is 9 (i.e. 3x3) etc.
So, in general the nth term is 3x n that is 3n.
Therefore, t = 3n n
Quantitative Methods
(2) Let the sequence be 21, 22, 23, 24, 25,26,…………. Find t . n
Here, t = 2n n
If the nth term of the sequence is given, we can find the terms of the sequence in succession.
Examples
(1) Let t = 2n-1, find the sequence. n
For n=1 t = 2(1)-1 = 1 1
For n=2 t = 2(2)-1 = 3 2
For n=3 t = 2(3)-1 = 5 3
For n=4 t = 2(4)-1 = 7 4
Therefore the required sequence is 1, 3, 5, 7,……………
(2) Let t = 1/n, find the sequence. n
Here, the required sequence is 1/1, 1/2, 1/3, 1/4,……….
4.4.3 Sum of the First n Terms (S ) n

Consider the sequence t ,t ,t ,t ,……….t then the sum of the first n terms is 1 2 3 4 n
denoted by sn.
S = t1 + t2 + t3 +t4 + ……….t n
The sum of the first n-1 terms is denoted by Sn-1
S = t + t + t +t + ……….t n-1 1 2 3 4 n-1
The nth term can be obtained using the sum of the sequences as follows
t = S -S n n n-1
Example
(1) If S = 3n2 – 4n, find the sequence. n
Let S = 3n2 - 4n …………………….(1) n
S = 3(n-1)2 - 4(n-1) n-1
= 3(n2 - 2n +1)- 4n+4 using (a-b)2 = a2 – 2ab+b2
S = 3n2 -10n +7 ………………….(2) n-1
Subtracting (2) from (1), we get tn
t = S -S n n n-1
Therefore, t =(3n2 - 4n)-(3n2 -10n +7) n
t = 6n- 7For n =1 t = 6(1)-7 = -1 n 1
For n =2 t = 6(2)-7 = 5 2
For n =3 t = 6(3)-7 = 11 3
For n =4 t = 6(4)-7 = 17 4
Therefore, the required sequence is -1, 5, 11,17,…………..
28
4.5 Arithmetic Sequence or Arithmetic Progression
4.5.1 Definition
If for a sequence t - t is constant for all ‘n’, then it is called an arithmetic n+1 nsequence or arithmetic progression.
(A.P.)
The constant difference t - t is called the common difference of the A.P. and n+1 n denoted by ‘d’.
In general, the terms of A.P. are a, a+d, a+2d,a+3d,………
4.5.2 nth Term of an A.P.

To find the nth term of an A.P whose first term and common difference is known,
we use the following formula as,
t = a+(n-1)d where a= first term and d = common difference. n
Example
(1) Find the n th term of -26,-23, -20 ,-17 ,…………..
Since t2-t1 = -23-(-26) = 3
t3-t2 = -20-(-23) = 3
Therefore, the difference is constant and the given sequence is A.P.
Here, the first term = a= -26
Common difference = d= 3
Using t = a+(n-1)d we have, n
t = -26+(n-1)(3) n
t = -26+3n-3 n
Therefore the nth term = 3n-29.
4.5.3 Sum of the First n Terms of an A.P. (S ) n

To find the sum of the first n terms of an A.P.
If the first term (a) and common difference (d) is known then,
S = n/2 [ 2a + (n-1)d] n
If the first term (a) and the last term of the nth term (L) is known then,
S = n/2 [ 2a + L ] n
Example
(1) Find the sum of n terms of A.P. -26, -23, -20, -17, …………..
Here, first term = a= -26
And common difference = d = 3
Therefore, using S = n [ 2a + (n-1)d] we get, n
2
S = n/2 [ 2(-26) +(n-1)(3)] n
S = n/2 [ n-55] n
S = n/2 (n-55) n
4.5.4 Properties of an A.P.

(1) Let a, b, c, d,………be an A.P. and x a constant quantity.
Then a+x, b+x, c+x,………….
a-x, b-x, c-x,………….
ax, bx, cx, ………….
a/x, b/x, c/x,…………. are all in A.P.
(2) When three quantities are in A.P., the middle one is called the
arithmetic mean (AM) of the other two. Let a, b, c be an A.P. then the
AM between them is b = a+c/2
29
4.6 Geometric Progression

If for a sequence the ratio t /t is constant for all ‘n’, then it is called a n+1 n geometric sequence or geometric progression.
(G.P.)
The constant ratio t /t is called the common ratio of the G.P. and denoted n+1 n by ‘r’.
In general, the terms of G.P. are a, ar, ar2, ar3,………th
4.7 nth Term of a G.P.

To find the n th term of a G.P. whose first term and common ratio is known, we use the following formula as
t = ar(n-1) where a = first term and r = common ratio. n
Example
(1) Find the nth term of 5, 15, 45, 135, …………..
Since t2/t1 = 15/5 = 3
t3/t2 = 45/15 = 3
Therefore, the ratio is constant and the given sequence is G.P.
Here, the first term = a= 5
Common ratio = r= 3
Using t = ar(n-1) we have, n
t = 5x 3(n-1) n
Therefore the n th term = t = 5x 3(n-1) n
4.8 Sum of the First n Terms of a G.P. (S ) n

To find the sum of the first n terms of a G.P.
If first term(a) and common ratio(r) is known then,
(i) if r¹1 and r < 1 then
S = a ( 1- rn) n
1- r
(ii) if r¹1 and r > 1 then

S = a ( rn - 1) n
r-1
(iii) if r =1 then
The sequence a , ar, ar2, ar3, ……………… can be written as,
a,a,a,a,………..n times.
Therefore, S = an n
Example
(1) Find the sum of n terms of G.P. 5,15,45,135,………….
Here, first term = a= 5
And common ratio= r = 3
Since r¹1 and r > 1 then
Therefore, using S = a (rn - 1) we get, n
r-1
n S = 5 [3 -1] n
31
S = 5 (3n-1) n
2
Note
(1) Sum of the series as n tends to infinity and r<1 is (S ) = a / (1-r)
(2) Geometric mean of two numbers is obtained as G.M.= ab
30
Summary
• Arithmetic progression:
An arithmetic progression or arithmetic sequence is a sequence of numbers such that the difference of any two
successive members of the sequence is a constant.
The following formula is used for solving the nth :
tn = arn-1
where a, the first term
n, number of terms
r, the common ratio
• Geometric progression:
A geometric progression is a sequence of numbers where each term after the first is found by multiplying
the previous one by a fixed non-zero number called the common ratio
Formula:
tn = arn-1
where a, the first term
n, number of terms
r, the common ratio
Points to Remember:
Arithmetic Progression:
• Tn = a + (n+1)d
• Sn = =
• Tn = Sn - Sn-1
• A.M. of a & b =
• Sn = A.M. x n
Geometric Progression:
• Tn= arn-1
• Sn = =
• Sum of the terms of an infinite G.P =
• Sum of the square of the terms which are in infinite G.P. is
• Tn = Sn – Sn-1
• G.M. of a & b =
• Product of all
• n terms of a G.P. = (G.M.)n
31
References
• H. Dubner, Large Sophie Germain primes, Math. Comp. 65 (1996), 393-396
• R. K. Guy, Unsolved Problems in Number Theory, 2nd ed., Springer-Verlag, 1994, pp. 15-18.
• G. H. Hardy and E. M. Wright, An Introduction to the Theory of Numbers, 5th ed., Oxford Univ. Press, New
York, 1979
• L. J. Lander and T. R. Parkin, Consecutive primes in arithmetic progression, Math. Comp. 21 (1967), 489
• H. L. Nelson, There is a better sequence, J. Recreational Math. 8 (1) (1975), 39-43
• P. A. Pritchard, A. Moran, and A. Thyssen, Twenty-two primes in arithmetic progression, Math. Comp. 64
(1995), 1337-1339
• Donald Waters(2006), Quantitative Methods for business, Progression, Prentice Hall Publication,4th Edition
• Diana Bedward (1999), Quantitative methods, Arithmetic Progression, Elsevier
• J. Curwin Slater(2007), Quantitaitve Methods, Progression, Thomson Learning
32
Self Assessment
1. IF all the terms of an arithmetic progression are multiplied by a constant quantity te resulting terms will always
form;
a. Geometric progression
b. Arithmetic progression
c. Either arithmetic or geometric
d. Both progressions
2. Find the terms specified in the following series;

a. 12th & 77th terms in the series 10, 12, 14, 16,……
b. 32, 162
c. 172, 32
d. 34, 68
e. 32, 164
3. 7th & 11th terms of the series 1/3, 1/9, 1/27, 1/81, …..
a. 37 311
b. 1/310, 1/311
c. 1/311, 1/37
d. 1/37, 1/311
4. The first term of an arithmetic progression is -15 & its 46th term is 120, what are the values of 23rd & 6th term.
a. 54, 0
b. 51, 0
c. 51, 3
d. 54, 3
5. If the 6th term of an arithmetic progression is 10 & 9th term is 14.5, then find 2nd term.
a. 2.5
b. 7.5
c. 4
d. Cannot be determined
6. Which term of the arithmetic progression 2/3, ¾, 5/6 , …… in 23/6 ?

a. 72
b. 73
c. 58
d. 63
7. Find the sum of ten terms of an A.P. whose 5th term is 5 & 7th term is 3.
a. 45
b. 36
c. 72
d. 55
33
8. How many integers are there between 300 & 600 that are divisible by 9?
a. 1500
b. 276
c. 284
d. 248
9. Find the first term & the common ratio of G.P. whose 6th term & 9th are 160 & 1280 respectively?
a. 3, 5
b. 10, 4
c. 10, 2
d. 5, 2
10. If 7/12 , -2m and 12/7 form a G.P. then what is the value of ‘m’?
a. 2
b. ½
c. 1/
d. 1/2
34
Chapter V
Probability
Aim
• Aim of this chapter is to introduce probability
Objective
Objectives of this chapter are
• To enlighten the students with the term of probability by providing its definitions and various
terminologies used in probability
• To explore the conditional probability and steps to solve probability
• To enable the students to solve practical problems on how to calculate probability using Addition
theorem, multiplication theorem
Learning Outcome
At the end of this chapter students will be conversant with
• Acquire basic knowledge about probability with its basic terminologies
• Enable and enrich themselves with the various approaches to probability
• Come out with solutions of calculating probability using Addition theorem, multiplication theorem
35
5.1 Introduction:
Every human activity has an element of uncertainty. Uncertainty affects the decision making process. “Probably”-
this word is often used by us like probably it may snow today; probably there may be a surprise test tomorrow etc.
So, there is a need to handle uncertainty systematically and scientifically. Hence, probability theory is used.
5.2 Definition:
• “Probability is the ratio of favorable events to the total number of equally likely events.”-By Laplace
• “Probability is an attitude of mind towards uncertain events.”-By Connor
• Probabilities are associated with experiments where the outcome is not known in advance or cannot be
predicted
Example: If you toss a coin, will you obtain a head or tail?
• If you roll a die will obtain 1, 2, 3, 4, 5 or 6?
• Probability measures and quantifies “how likely” an event, related to these types of experiment, will happen
• The value of a probability is a number between 0 and 1 inclusive
• An event that cannot occur has a probability (of happening) equal to 0 and the probability of an event that is
certain to occur has a probability equal to 1
• In order to quantify probabilities, we need to define the sample space of an experiment and the events that may
be associated with that experiment
5.3 Sample Space & Events:

• The sample space is the set of all possible outcomes in an experiment
• An event is a subset of the sample space
Example:
If a die is rolled, the sample space S is given by,
S = {1, 2, 3, 4, 5, 6}
If two coins are tossed, the sample space S is given by

S = {HH,HT,TH,TT} , where H = head and T = tail.
5.4 The Venn Diagram:

A venn diagram is a pictorial presentation of the sample space of an experiment
It is usually drawn as a rectangular figure representing the sample space & it contains circles or other shapes
representing events in the sample space
Heads Tails Venn diagram representing outcomes of tossing a coin.
A B Venn diagram representing outcomes of selecting a manager.

A= candidate has over 3yrs experience.
B= candidate has post graduate qualification.
5.5 Rules of Probability:

• A probability is number assigned to the occurrence of an event in sample space.
• A probability of an event must be greater than or equal to 0 & less than or equal to 1 or 100% i.e.
• 0 means probability cannot be negative.
• If A & B are mutually exclusive events, then the probability of (A or B) is equal to the sum of the probabilities
of A & B.
36
5.6 Applications:
• Probability used in risk assessment at any organizational level, especially at top management where the crucial
decisions are taken
• It is also applied to the commodity markets in trading
• Governments typically apply probabilistic method in Environmental regulation where it is called Pathways
analysis
• It is also applicable where consumer products, such as automobiles & consumer electronics, utilize reliability
theory in the design of the product in order to reduce the probability of failure, the probability of failure may
be closely associated with the product’s warranty
5.7 Conditional Probability:

5.7.1 Independent & Dependent Events:
Two events A & B are independent events if the occurrence of event A is in no way related to the occurrence or
non-occurrence of event B.
Likewise for independent events the occurrence of event B is in no way related to the occurrence of event A.
5.7.2 Multiplication Rule:

The joint probability of two independent events is equal to the product of their marginal probabilities.
P(A and B) = P(A).P(B)
5.7.3 Conditional Probability: Independent events

If the probability of an event is subject to a restriction on the sample space, the probability is said to be conditional
probability.
We define the conditional probability of event A, given that B has occurred, in case of A & B being independent
events, as the probability of event A.
P(A|B) = P(A).
5.7.4 Conditional Probability: Dependent Events

We define the conditional probability of event A; given that event B occurred when both A & B are dependent events,
as the ratio of number of elements in B.
P (A|B) = .
5.7.5 Multiplication Rule: Dependent Events

A joint probability of two dependent events A & B is equal to probability of A multiplied by probability of B, given
that A has occurred.
P(A and B) = P(A).P(A|B)
This formula is derived from the formula of conditional probability of dependent events.
P(B|A) =
P(A and B) = P(B|A).P(A)
37
5.8 How to calculate the Probabilities?

• Classical Probability Formula:
• It is based on the fact that all outcomes are equally likely
Total number of outcomes in E
P(E) = ________________________________________________
Total number of outcomes in the sample space
• Empirical Probability Formula:
It uses real data on present situations to determine how likely outcomes will occur in the future.
Let us clarify this using an example:
30 people were asked about the colors they like and here are the results:
Color frequency
red 10
blue 15
green 5
If a person is selected at random from the above group of 30, what is the probability that this person likes the
red color?
Let event E be “likes the red color”.
Hence,
Frequency for red color

P(E) = _______________________________________________
Total frequencies in the above table
P (E) = 10 / 30 = 1 / 3
5.9 Steps to solve probability

To solve any problem on probability the steps involved are
• Define the events
• Find the total outcome of the experiment
• Find the probability of each event
• If the words “either, or” are used check whether the events are mutually exclusive or not to apply addition
rule
• If the words “both, and” are used check whether the events are independent or dependent to apply proper
multiplication rule
• To find the total outcome of the experiment use 2n or 6n in the case of coin or dice respectively, where n is
the number of coins or dice thrown at a time or a coin or dice thrown n times. In all other cases, use nCr =
For example,
6C3 =
Example 1:
What is the chance of getting a King in a draw from a pack of 52 cards?
Answer:
The total no. of cards = 52
The total no. of Kings = 4
38
Bayes Theorem:
Statement:
Thomas Bayes addressed both the case of discrete probability distributions of data and the more complicated case
of continuous probability distributions.
In the discrete case, Bayes theorem relates the conditional and marginal probabilities of events A and B, provided
that the probability of B does not equal to zero.
Each term in Bayes’ theorem has a conventional name:
• P(A) is the prior probability or marginal probability of A. It is “prior” in the sense that it does not take into
account any information about B.
• P(A|B) is the conditional probability of A, given B. It is also called the posterior probability because it is derived
from or depends upon the specified value of B.
• P(B|A) is the conditional probability of B given A. It is also called the likelihood.
• P(B) is the prior or marginal probability of B, and acts as a normalizing constant.
Bayes’ theorem in this form gives a mathematical representation of how the conditional probability of event A given
B is related to the converse conditional probability of B given A.
P (A|B) = P (B|A).P(A)
P (B)
39
Summary
• Probability theory is a branch of mathematics concerned with the analysis of random phenomena. The
outcome of a random event cannot be determined before it occurs, but it may be any one of several
possible outcomes. The actual outcome is considered to be determined by chance
• The probability of an event is to find out how many times event will happen because of a research. They will
give a clearly results. The probability is the study of chance or possibility of an event to happening like straight
or not directly, probability plays a role in the all activities
• As a mathematical foundation for statistics, probability theory is essential to many human activities
that involve quantitative analysis of large sets of data
• The probability of event A is the number of ways event A can occur divided by the total number of
possible outcomes
• Discrete probability theory deals with events that occur in countable sample spaces whereas continuous
probability theory deals with events that occur in a continuous sample space
References
• Charles Miller Grinstead, James Laurie Snell, Introduction of Probability: Probability, AMS Bookstore, 1997,
p133-137
• Frederick Mosteller, Probability: Probability, Dover Publications, 1987, First Edition, p1-100
• Dartmouth, Probability http://www.dartmouth.edu/~chance/teaching_aids/books_articles/probability_book/
book.pdf, last accessed: 18 oct 2010
• Math Goodies, Probability, http://www.mathgoodies.com/lessons/vol6/intro_probability.html, last accessed:
18 oct 2010
• Britannica Encyclopedia, Probability, http://www.britannica.com/EBchecked/topic/477530/probability-theory,
last accessed: 18 oct 2010
• Donald Waters(2006), Quantitative Methods for business, Probability , Prentice Hall Publication,4th Edition
• Diana Bedward (1999), Quantitative methods, Probability, Elsevier
• J. Curwin Slater(2007), Quantitaitve Methods, Probability , Thomson Learning,
40
Self Assessment
1. If one event is unaffected by the outcome of another event, the two events are said to be;
a. Dependent
b. Independent
c. Mutually exclusive
d. All of the above.
2. The probability that the sum 8 appears in asingle toss a pair of fair dice is,
a. 4/36
b. 5/36
c. 6/36
d. 7/36
3. If P(A or B) = P(B)
a. A & B must be mutually exclusive
b. A & B must be independent
c. P(A)=P(B)
d. Occurrence of A implies occurrence of B.
4. For any two events A & B, which of the following is TRUE?

a. P(A or B) = P(A) + P(B) – P(A and B)
b. P(A or B) = P(A) + P(B)
c. P(A and B) = P(A) x P(B)
d. P(A or B) = P(A) - P(B)
5. A fair coin is tossed twice. The probability that two heads will occur is;
a. 0.15
b. 0.25
c. 0.375
d. 0.50
6. If P(A or B) = P(A) + P(B) the A & B are;

a. Independent
b. Dependent
c. Conditional
d. Mutually exclusive
7. Which of the following is not correct?

a. P(A/B) = P(A and B)/P(B)
b. P(A and B) = P(B/A).P(A)
c. P(B or A) = P(B). P(A/B)
d. P(B and A) = P(A/B).P(B)
41
8. Bayes theorem is formula for

a. Conditional probability under statistical dependence
b. Conditional probability under statistical independence
c. Unconditional probability under statistical dependence
d. Unconditional probability under statistical independence
9. If P(A), P(B) & P(B/A) are 0.4, 0.5, 0.7 respectively, then P(A/B) is;
a. 0.140
b. 0.560
c. 0.320
d. 0.286
10. If P(AB) = 0.8 and P(A) = 0.40 then the probability of occurrence of event B given that event A has occurred
is;
a. 0.21
b. 0.20
c. 0.30
d. 0.31
42
Chapter VI
Permutation & Combination
Aim
• Aim of this chapter is to introduce the concept of permutation & combination
Objective
• To explain the fundamental principle of counting
• To enlighten the students with permutation concept & its uses
• To explicate the complementary combinations & its use in probability
• To elucidate the applications of permutation & combination
Learning Outcome
At the end of this chapter students will be acquainted with the following
• Understand the concept of permutations and combinations
• Distinguish between permutation and combination
• Understand factorial notation
• Understand the meanings of nPr and nCr
• Develop the skill in solving the problems
43
6.1 Introduction to principles of counting:

• If one operation can be performed in m ways and And a second operation can be performed in n ways then both
the operations could be performed simultaneously or sequentially in mxn ways
• Addition Principle: If One Operation can be performed in m ways and another operation can be performed in
n ways then one of the two operations could be performed in m+n ways
• For Example, a person wants to borrow a book from the library. There are Five novels and Six story books
which he wants to read. He could select any one of the min m+n=5+6=11 ways
6.2 Definition of Permutation:

Permutation means arrangement of things.
The word arrangement is used, if the order of things is considered.
Note: The sign ‘!’ indicates the factorial notation. It can be calculated as
n! = n(n-1)! Or n! = n (n-1) (n-2)! Or n! = n(n-1)(n-2)…………1

Where 0! = 1 and 1! = 1
For example it can be calculated as,
3! = 3 x 2 x 1 = 6
4! = 4 x 3 x 2 x 1 = 24
5! = 5 x 4 x 3 x 2 x 1 = 120
6.3 Combination:
Combination means selection of things.
The word selection is used, when the order of things has no importance.
The total number of these combinations is denoted by nCr and calculated as ,
Example:
• Suppose we have to form a number of consisting of three digits using the digits 1,2,3,4,
• To form this number the digits have to be arranged.
• Different numbers will get formed depending upon the order in which we arrange the digits.This is an example
of Permutation.
• Now suppose that we have to make a team of 11 players out of 20 players, This is an example of combination,
because the order of players in the team will not result in a change in the team.
• No matter in which order we list out the players the team will remain the same! For a different team to be formed
at least one player will have to be changed.
6.4 Fundamental principles of counting:

6.4.1 Addition Rule :
If an experiment can be performed in ‘n’ ways, & another experiment can be performed in ‘m’ ways then either of the
two experiments can be performed in (m+n) ways. This rule can be extended to any finite number of experiments.
6.4.2 Multiplication Rule:

If a work can be done in m ways, another work can be done in ‘n’ ways, then both of the operations can be performed
in m x n ways. It can be extended to any finite number of operations.
44
Factorial n:
The product of first ‘n’ natural numbers is denoted by n!
n! = n(n-1) (n-2) ………………..3.2.1.
Example:
5! = 5 x 4 x 3 x 2 x 1 =120
Note:
0! = 1
Proof n! =n, (n-1)! Or (n-1)! = [n x (n-1)!]/n = n! /n
Putting n = 1,
We have, O! = 1! /1 or 0 = 1.
Note that:
An important result:
• The fundamental principle of counting (F.P.C) states that if an operation can be performed in m different ways
and if for each such choice, another operation can be performed in n different ways, then both operations, in
succession can be performed in exactly mn different ways. The principle can also be generalized, for even more
than two operations.
• For n Î N, the factorial of n is defined as n! = 1 ´ 2 ´ 3 ´ ..... ´ n. 0! is defined as 1.
• The arrangements of a number of things taking some or all of them at a time are called permutations. The total
number of permutations of n distinct things taking r(1 £ r £ n) at a time is denoted by nPr or by P(n, r).
• For 1 £ 4 £ n, nPr = n(n - 1)(n - 2)...... r factors.
• In particular, nPn = n(n - 1)(n - 2).....n factors.
• = n(n - 1)(n - 2)...... 3.2.1. = n!
• If p1 objects are of first kind and p2 objects are of the second kind, then the total number of permutations of all
the p1+p2 objects is given by
• If p1 objects are of the ith kind and i = 1,2,3,….r, then the total number of permutations of all the p1+p2+p3+.......+pr
objects is given by,
• The number of permutations of n different things taking r at a time when each thing is allowed to repeat any
number of times in any arrangement is given by nr.
• The number of circular permutations of n different things is given by (n - 1)!.
• If the number of circular permutations of n different things when an anticlockwise circular permutation and its
corresponding clockwise circular permutation are considered as same circular permutation, then the number
of circular permutations is
• The selections (groups) of a number of things taking some or all of them at a time are called combinations. The
total number of combinations of n distinct things taking r(1£ r £ n) at a time is denoted by nCr or by C(n, r).
45
Summary
Permutaions:
The different arrangements of a given number of things by taking some or all at a time, are called permutation.
Number of permutation- number of all permutations of n things, taken r at a time is given by;
Combiantions:
Each of the different groups or selections which can be formed by taking some or all of a number of objects, is
called a combination.
Number of combinations: the number of all combinations of n things, taken r at a time is;
References
• Krishna R. Kumar, Discrete Mathematics, Permutation & Combination, Firewall Media, 2005, p23-47.
• G. Shankar Rao, Discrete mathematical structure, Permutation, New Age International, 2002, p14-54.
• R.C. Pennar, Discrete Mathematics, Combination, World Scientific, 1999, p54-67.
• Donald Waters(2006), Quantitative Methods for business, Permutation & Combination, Prentice Hall
Publication,4th Edition
• Diana Bedward (1999), Quantitative methods, Permutation, Elsevier,.
• J. Curwin Slater(2007), Quantitative Methods, Combination ,Thomson Learning.
46
Self Assessment
Evaluate the following:
1.
a. 860
b. 870
c. 880
d. 885
2. 60
a. 204020
b. 205320
c. 215320
d. 225320
3.
a. 24
b. 53
c. 23
d. 22
4. How many words can be formed by using all the letters of the word ‘BIHAR’?
a. 121
b. 120
c. 123
d. 130
5. In how many ways can a cricket eleven be chosen out of batch of 15 players?
a. 1360
b. 1365
c. 1370
d. 1375
6. How many words can formed from the letters of the word ‘DIRECTOR’ so that the vowels are always
together?
a. 2100
b. 2121
c. 2160
d. 2170
7. In how many different ways can the letters of the word ‘RUMOUR’ be arranged ?
a. -180
b. 90
c. 30
d. 720
47
8. From a group of 7 men & 6 women, five persons are to be selected to form a committee so that at least 3 men
are there on the committee. In how many ways can it be done?
a. 564
b. 645
c. 735
d. 756
9. In how many different ways can the letters of the word ‘MACHINE’ be arranged so that the vowels may occupy
only the odd positions?
a. 210
b. 576
c. 144
d. 1728
10. In how many ways can a group of 5 men & 2 women be made out of total of 7 men & 3 women?
a. 266
b. 5040
c. 11760
d. 86400
48
Chapter VII
Interpolation
Aim
• Aim of this chapter is to introduce the concept of Interpolation
Objective
Objective of this chapter are;
• To enlighten the different methods of interpolation
• To describe interpolation techniques to calculate the desired figures
• To entails the degree of dependent & independent variables which helps in calculation & methods of
interpolation
Learning Outcome
At the end of this chapter students are able to understand the following;
• Meaning of Interpolation
• Methods of Interpolation
• Application of interpolation in management & other sectors
49
7.1 Introduction:
Interpolation is the method of statistical estimation & the word literally means making insertions.
Simply interpolation is understood by following example;
If we need to know the population of our country, for any intermediary year, say 1985, one logical approach would be
to work forward from the population of 1981, by adding births & inflow of the people into the country & deducting
deaths & outflow of people from the country during 1981-1985.
Thus the data on population of the year 1985 is required, 100% accurate figures are really not required.
7.2 Definition of Interpolation:

• “Interpolation” may be defined as the technique of obtaining the most likely estimates of certain quantity under
certain assumptions. - D.N. Elhance
• Interpolation is a statistical device used to estimate the most likely figure under certain assumptions within the
given limits
• Interpolation provides us the missing quantity of a series so that we can establish the while extrapolation are
the techniques of obtaining the most likely estimates of certain quantity under certain assumptions
• Interpolated figures are not perfect substitutes of the original figures. They are only best possible substitutes
on certain hypothesis
7.3 Application:
• Interpolation is widely used by businessmen, administrators, sociologists, economist & financial analysis.
• It helps in completing the incomplete, lost or destroyed records.
• Eg. In financial analysis the interpolation used to find out the IRR(internal rate of return) of a project, all
investment decisions which require to use of the Present value & future value interest factor tables.
7.4 Need & Importance of Interpolation

• Inadequacy of data:
Sometimes it is not possible to collect the whole data about the problem under study. Even if it were
possible to collect the whole data it may not be worthwhile to do so due to a large amount of expenditure
involved or due to organizational difficulties
Technique of interpolation can be used for making best estimates, at the least cost
These estimates will be a more useful figure than rough estimates
• To estimate intermediate value:
In certain cases data is collected after long intervals
For example; in India the census of population is collected after every ten yrs
The technique of interpolation will be needed to estimate the figure of population for intermediate
years
• Lost Data:
Sometimes the data is lost due to fire, earthquake etc. The interpolation technique is help to fill the gaps
in statistical information due to lost data
• Uniformity of Data:
Statistics concerning a particular phenomenon are collected by different agencies , it destroys its
uniformity.
In such cases comparison of data becomes difficult. So to establish uniformity of data, the techniques
of interpolation is used.
• Forecasting:
The forecasting activity regarding data is practical utility for economic planning, policy formulation,
production decisions etc.
50
7.5 Methods of Interpolation:
7.5.1 Graphical Method:
• It is simplest method of Interpolation.
• In this method the data is represented in graph, i.e. on X-axis all independent variables & on Y-axis all dependent
variables are taken.
• The curve is formed after joining the points, this curve give interrelation between two variables.
• From the point of X-axis, for which the value of y is to be interpolated, a line parallel to Y-axis will be drawn.
• From the point where this line will cut the curve, a line parallel to X-axis will be drawn, here the value of y will
be found from the point where the line cuts Y-axis, this is called Interpolated figure or Value
7.5.2 Newton’s method of advancing differences:

• This method is applicable for the following cases
• The independent variable advances by equal intervals
• The value to be interpolated is different from the equidistant value
• The value to be interpolated lies in the beginning of the data
• This method is known as finite or advancing differences method because after finding out differences in the
values of y, the process is extended further till only one difference remains
• We also taken into consideration that the +ve & -ve sign while calculating the differences
7.5.3 Lagrange’s Method:

• Lagrange’s interpolating polynomial is another very good formula for interpolation
• This method has no restriction on the x-variable whether it should be equally spaced or not
• This method can be used for any value of x either for interpolation
• It is also to estimate the argument of x for given value of y, it means the Lagrange;s formula can be used for inverse
interpolation also.The only demerit of Lagrange’s formula is that, it required heavy computational work
7.5.4 Newton-Gauss Foreword Method:

It is method which is used in particular situation. It is used when the independent variable (a) advance by equal
intervals (b) the value to be interpolated falls in the middle of the series.
The formula is as under;
+ + + +
Where X =
7.5.5 Newton-Guass Backward Method:

• This is also known as Newton Gregory backward formula
• Its applicability is described below
• When the argument x advances with the equal jumps
• When the x-value to be interpolated lies near the end of the series
• Diagonal difference table is used in Newton’s backward formula, but the differences are used in reverse
order.
51
The formula is as under;

If there are n arguments & n corresponding entries, Newton’s backward formula for the entry to be interpolated
for the argument x is,
Where,

52
Summary
• Algebraic expressions in which the variables concerned have only non-negative integral exponents are called
polynomials
• The standard form of a polynomial in one variable is that in which the terms of the polynomial are written in
the decreasing order of the exponents of the variable
• Interpolation provides us the missing quantity of a series so that we can establish the while extrapolation are
the techniques of obtaining the most likely estimates of certain quantity under certain assumptions
• Methods of Interpolation are
• Graphical method, Lagrange’s Method, Newton-Gauss Forward Method, Newtons-Gauss Backward method.
etc.
References
• TR Jain, AS Sandhu, Quantitative Methods: Interpolation, VK Publication, 2006-07, p7.1-7.38
• B.R.Agarwal, Programmed Statistics, Interpolation, New Age International, 2nd Edition, 2007, p405-425.
• N.P Bali, P.N.Gupta, A textbook of Quantitative Techniques, Interpolation, Laxmi Publications, 1st edition,
2008, p134-145.
• Waters Donald(2006), Quantitative Methods for business, Interpolation, Prentice Hall Publication,4th
Edition
• Bedward Diana(1999), Quantitative methods, Interpolation, Elsevier,
• J. Curwin & Slater(2007), Quantitaitve Methods, Interpolation of Polynomials, Thomson Learning,
53
Self Assessment
1. Graphical Interpolation method is,
a. Simple
b. Algebrical
c. Fully reliable
d. Reliable
2. Interpolation is helpful in estimating:

a. A series
b. An intermediary value of given argument
c. Entry of alternative values
d. A series of value
3. Lagrange Formula is useful for ;

a. Interpolation
b. Arithmetic functions
c. Inverse range
d. Inverse extrapolation
4. Lagrange’s polynomials interpolation can be used even if;

a. The given arguments are not equally spaced
b. Extrapolation is to be done
c. Inverse interpolation is to be done
d. Relation to be mapped
5. Interpolation formulae are based on the fundamental assumptions that the data can be expressed as;
a. A linear function
b. A quadratic function
c. A polynomial function
d. A binomial function
6. If is constant then may be;

a. Constant
b. At equal intervals
c. Both a & b
d. At un equal interivals
7. The problems of interpolation are simpler than prediction because;

a. Interpolation has fewer restriction than prediction
b. Interpolation is based on more stringent restriction than prediction
c. There are no restriction than interpolation
d. It is easier to find out
54
8. A finance company offers to give Rs. 100000after 10 yrs, if Rs.20000 is deposited today. Calculate the implicit
rate of interest using the tables.
a. 5%
b. 10%
c. 12.45%
d. 17.45%
9. A finance company offers to give Rs.18000 annually for 15 yrs. If a deposit of Rs.90000 is made now. Calculate
the implicit rate of interest using the tables.
a. 5.092%
b. 32.33%
c. 9.08%
d. 18.42%
10. A project requires an initial outlay of Rs.35 lakh & has the following cost flow projections:
Year Cash Flows (in Lakh Rs)

0 35
1 15
2 10
3 10
4 20
Using interest tables & interpolation techniques find out the IRR of the project.
a. 12.11%
b. 19.81%
c. 13.01%
d. 35.05%
55
Chapter-VIII
Commercial Arithmetic
Aim
• Aim of this chapter is to introduce & represent the elementary principles of commercial arithmetic related to
commercial world.
Objective
• To understand the terms such as Commission & Brokerage
• To understand the use of Present Worth, Sum Due & True Discount
• To describe the concept of Insurance
• To infuse a confidence about tracking the various mercantile & business problems that encounter in examination
& real life as well
Learning Outcome
At the end of this topic students will able to use the following;
• Use of present Worth, Sum Due & True Discount in the Commercial World
• Application of the commission & brokerage in different sectors of economy
• Application of arithmetic terms in insurance
• Able to apply the arithmetic topics in real life & business
56
8.1 Introduction:
A good deal of business is done by means of agents. An agent can be defined as a person appointed to transact
business in the name & for the account of another. His remuneration is usually in the form of an allowance on the
amount of the business transacted, which is fixed by specific agreement, or in accordance with the usage of the
trade. This remuneration is generally called as the agents commission & in most cases is a percentage of the amount
of the transaction.
8.2 Commission & Brokerage:

• Commission/brokerage means any payment received by a person acting on behalf of another person or for any
services in the course of buying/selling of goods or in relation to any transaction relating to any asset.
• For earning commission or brokerage, three parties should be present in a transaction, i.e. the Buyer, the seller
and the broker/commission agent.
• The person receiving income as commission/brokerage should not own the subject matter dealt with by him
and the ownership should vest with his principal only.
8.2.1 Application of Commission:

• Commission is applied to following agents;
• Real Estate Agents: The Agents dealing in selling real estate properties are real estate agents.
• Canvassing Agent: These are the persons who sells articles as books, aluminum ware from house to house.
• Producer
• Travelling Salesmen
• Retail Clerks
• Employment Agencies
8.3 Profit & Loss:

• Sales Price (Sp): The price at which goods/services are sold.
• Cost Price (SP): The expenses occurred in making a product (or providing a service) and it includes the price
of the raw material.
• Revenue: is compensation received for your product or services.
• Cost of Goods Sold: are the variable expenses related to the sale of your product.
• Operating Expenses: are fixed expenses, such as rent, and utilities.
• Operating Income: is profit after operating income.
• Earnings before Taxes: is income including other income and expenses, but before taxes.
• Income Taxes: are federal, state, and local taxes.
• Net Earnings: is the profit earned by the business, and it includes all expenses, including taxes.
57
8.4 Formulae:
• If the shop sells a thing for more than they paid for it, then the difference is the ‘profit’:
Profit = Selling price - Cost price
• If the shop sells a thing for less than they paid for it, then the difference is the ‘loss’:
Loss = Cost price - Selling price
• Both profit and loss can be expressed either in dollars, OR as a percentage of the cost price:
Profit Percentage = (Profit / Cost Price) x 100
• Occasionally profit is also mentioned in terms of sales price i.e.:
Profit on selling price= (Profit / Sales Price) x 100
8.5 Interest:
8.5.1 Interest:
• It is the price paid for the use of borrowed money, or, money earned by deposited funds.
• Assets that are sometimes lent with interest include money, shares, consumer goods through hire purchase,
major assets such as aircraft, and even entire factories in finance lease arrangements.
• The interest is calculated upon the value of the assets in the same manner as upon money.
8.5.2 Simple Interest:

It is the interest calculated on the original principal alone for the time during which money lent is being used. If ‘P’
is the principal, ‘R’ is the rate of interest & ‘T’ is the period, then simple interest (SI) is given by the formula,
SI = PRT/100.
8.5.3 Compound Interest:

When the interest produced after each prefixed period is added to the principal & whole amount is considered as
principal for the calculation of interest for the next period, then the sum by which the original principal is increased
at the end of all prefixed period is called compound interest.
8.6 Present Worth

Definition:
Present Worth is the value on a given date of a future payment or series of future payments, discounted to reflect
the time value of money and other factors such as investment risk.
Present Worth can be calculated by following formula;
Where,
PV = present worth
C= cash flow
i= interest rate
8.7 True Discount (T.D.):

The true discount is the difference between the sum due at the end of the given time and its present worth.
Thus, True discount (T.D.) = interest on present worth.
8.8 Sum Due (S.D.):

Sum due is calculated by adding Present Worth with True Discount.
Sum Due (SD) = Present Worth (PV) + True Discount (TD).
58
8.9 Insurance:
• Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for
payment.
• An insurer is a company selling the insurance;
• An insured or policyholder is the person or entity buying the insurance policy.
• The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance
coverage, called the premium.
59
Summary
Commission & brokerage-
• Commission/brokerage means any payment received by a person acting on behalf of another person or for any
services in the course of buying/selling of goods or in relation to any transaction relating to any asset.
Profit & Loss-
• If selling price is greater than cost price, the seller is said to have a profit.
• If selling price is less than cost price, the seller is said to have incurred a loss.
• Cost price= it is the price at which an article is purchased.
• Selling Price= it is price at which an article is sold.
Formulae:
Gain= SP –CP
Loss = CP – SP
Gain % =
Loss % =
Present Worth =
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a
lender.
Present Worth is the value on a given date of a future payment or series of future payments, discounted to reflect
the time value of money and other factors such as investment risk.
The true discount is the difference between the sum due at the end of the given time and its present worth.
Sum due is calculated by adding Present Worth with True Discount.
References
• G.R. Veena, Business Mathematics, Commercial Arithmetic, New Age International Publishers, 2006, p215-
255, 268-270
• R.S Aggarwal, Quantitative Methods, S.Chand Publications, 2008, p251-293 & 632-636
• Oscar Williams, Commercial Arithmetic, Profit & Loss Bibliobazar, 2008, p3-85
• S. Jackson, Commercial Arithmetic, Special Application, 2009, p23, 45-67.
• Geo H. Douglas, Modern Commercial Arithmetic, Business Mathematics, Commision agent, 2007, p34-90
• John Henry Moore, New Commercial Arithmetic, Bibliobazaar LLC, 2008, p50-145.
• Augustus D morgan, Elkements of Arithmetic, Taylor & Walton, 1900, p125-150.
• Frederick calder, Elementary rules of Arithmetic, revised edition, 1852, p106, 171.
60
Self Assessment
1. A man purchased a cow for Rs. 3000 and sold it the same day for Rs. 3600, allowing the buyer a credit of 2
years. If the rate of interest be 10% per annum, then the man has a gain of:
a. 0%
b. 5%
c. 7.5%
d. 10%
2. The true discount on Rs. 2562 due 4 months hence is Rs. 122. The rate percent is:
a. 12%
b. 33 %
c. 15%
d. 14%
3. A trader owes a merchant Rs. 10,028 due 1 year hence. The trader wants to settle the account after 3 months.
If the rate of interest 12% per annum, how much cash should he pay?
a. Rs. 9025.20
b. Rs. 9200
c. Rs. 9600.
d. Rs. 9560
4. If Rs. 10 be allowed as true discount on a bill of Rs. 110 due at the end of a certain time, then the discount
allowed on the same sum due at the end of double the time is:
a. Rs. 20.
b. Rs. 21.81
c. Rs. 22
d. Rs. 18.33
5. A man wants to sell his scooter. There are two offers, one at Rs. 12,000 cash and the other a credit of Rs. 12,880
to be paid after 8 months, money being at 18% per annum. Which is the better offer?
a. Rs. 12,000 in cash
b. Rs. 12,880 at credit
c. Both are equally good
d. 1800 at credit
6. Find the present worth of Rs. 930 due 3 yeears hence at 8% per annum. Also find the discount.
a. 700
b. 750
c. 800
d. 540
7. The true discount on a bill due 9 months hence at 12% per annum is Rs.540. Find the amount of the bill and
its present worth.
a. 6250
b. 6000
c. 6010
d. 6015
61
8. A man buys an article for Rs. 27.50 and sells it for Rs. 28.60. find his gain percent.
a. 5%
b. 4%
c. 6%
d. 5.2%
9. A dishonest dealer professes to sell his goods at cost price but uses a weight of 960gms for a kg. weight. Find
his gain percent.
a. 4
b. 3
c. 5
d. 6
10. An article is sold at a certain price. By selling it at 2/3 of that price one losses 10%. Find the gain percent at
original price.
a. 30 %
b. 35 %
c. 42 %
d. 37 %
62
Chapter-IX
Relations & Functions
Aim
• Aim of this chapter is to introduce the mathematical concept of relation & function
Objective
• To understand relation & functions
• To identify domain & range in ordered pairs
• To evaluate functions
• To create or find a real world example of domain & range
Learning Outcome
At the end of this chapter, students will be conversant with the following
• Defining the relation & its domain and range
• Defining the function & its domain & range
• Difference between relation & function
63
9.1 Relation:
A relation is just a set of ordered pairs. There is absolutely nothing special at all about the numbers that are in a
relation.
In other words, any bunch of numbers is a relation so long as these numbers come in pairs.
In maths Relation is just a set of ordered pairs.
Note: {} is the symbol for ‘SET’.
Example: {(0, 1), (55, 22), (3,-50)}
9.2 Domain & Range of a Relation:

The Domain is the set of all the first numbers of the ordered pairs.
In other words, the domain is all of the x-values.
The Range is the set of the second numbers in each pair, or the y-values.
Example: if Relation is {(0, 1), (55, 22), (3,-50)}, then

Domain is {0 55 3}
Range is {1 22 -50}
NOTE: when writing the domain & range, do not repeat the values
Relation can be written in several ways;

• Ordered Pairs
• Table
• Graph/mapping.
Examples:
What is the domain and range of the following relation?
{(-1, 2), (2, 51), (1, 3), (8, 22), (9, 51)}
Ans:
Domain: -1, 2, 1, 8, 9
Range: 2, 51, 3, 22, 51
What is the domain and range of the following relation?

{(-5,6), (21, -51), (11, 93), (81, 202), (19, 51)}
Ans:
Domain: -5, 21, 11, 81, 19
Range: 6, -51, 93, 202, 51
9.3 Functions:
A function is a relationship between two sets of numbers.
We may think of this as a mapping; a function maps a number in one set to a number in another set.
Notice that a function maps values to one and only one value.
Two values in one set could map to one value, but one value must never map to two values: that would be a
relation, not a function.
Example:
If we write (define) a function as:
f(x) = x2 then we say: ‘f of x equals x squared’ and we have,
f( - 1) = 1
f(1) = 1
f(7) = 49
f(1 / 2) = 1 / 4
f(4) = 16 and so on.
64
9.3.1 Range, image, co-domain
If D is a set, we can say,
, which forms a new set, called the range of f.
D is called the domain of f, and represents all values that f takes.

In general, the range of f is usually a subset of a larger set.
This set is known as the co-domain of a function.
Example: With the function f(x) = cos x, the range of f is [-1, 1], but the co-domain is the set of real numbers.
Notations
When we have a function f, with domain D and range R, we write:
If we say that, for instance, x is mapped to x2, we also can add
Notice that we can have a function that maps a point (x, y) to a real number, or some other function of two
variables.
We have a set of ordered pairs as the domain.
Recall from set theory that this is defined by the Cartesian product. If we wish to represent a set of
all real-valued ordered pairs we can take the Cartesian product of the real numbers with itself to obtain
.
When we have a set of n-tuples as part of the domain, we say that the function is n-ary (for numbers n=1,2 we say
unary, and binary respectively).
9.4 Break Even Analysis:

• Break-even analysis is a technique widely used by production management and management accountants.
• It is based on categorizing production costs between those which are “variable” (costs that change when the
production output changes) and those that are “fixed” (costs not directly related to the volume of production).
• Total variable and fixed costs are compared with sales revenue in order to determine the level of sales volume,
sales value or production at which the business makes neither a profit nor a loss (the “break-even
point”).
• In its simplest form, the break-even chart is a graphical representation of costs at various levels of activity shown
on the same chart as the variation of income (or sales, revenue) with the same variation in activity.
• The point at which neither profit nor loss is made is known as the “break-even point” and is represented on the
chart below by the intersection of the two lines:
NOTE: The break Even point is the point where the revenue from sales is equal to the cost of production.
For Calculating Total cost, we should know that,

Profit (P) = Revenue (R) – Cost (C).
Where,
Total Cost = Fixed cost + Variable Cost.
65
Summary
• A relation is just a set of ordered pairs. There is absolutely nothing special at all about the numbers that are in
a relation.
• In other words, any bunch of numbers is a relation so long as these numbers come in pairs.
• The Domain is the set of all the first numbers of the ordered pairs, & The Range is the set of the second numbers
in each pair, or the y-values.
• A function is a relationship between two sets of numbers.
• Two values in one set could map to one value, but one value must never map to two values: that would be a
relation, not a function.
• Break-even analysis is a technique widely used by production management and management accountants.
References
• TR. Jain, Quantitative Methods, Relation & Functions, FK Publication, 2nd Edition, p54
• Author Stream, Relation & Functions, www.authorstream.com/.../sadamava-373982-2-1-relations-functions-
ppt-relationsfunctions-powerpoint-education/, Last accessed-10th October 2010.
• Tutor Vista.Com, Relation & Functions, www.tutorvista.com › Math › Algebra, Last accessed-10th October
2010.
• Purple Math, Relation & Fuinctions, www.purplemath.com/modules/fcns.htm, last accesed-10th Ocober
2010.
• Donald Waters(2006), Quantitative Methods for business, Relation & fuinction, Prentice Hall Publication,4th
Edition
• Diana Bedward (1999), Quantitative methods, Relation & Functions, Elsevier.
• J. Curwin Slater(2007), Quantitaitve Methods, Relation & Functions, Thomson Learning.
66
Self Assessment
1. What is the domain and range of the following relation?
{(-1, 2), (2, 51), (1, 3), (8, 22), (9, 51)}
domain:______
range:______
2. What is the domain and range of the following relation?

{(-5, 6), (21, -51), (11, 93), (81, 202), (19, 51)}
domain:______
range:______
3. Which relations below are functions? _________

a. Relation #1 {(-1, 2), (-4, 51), (1, 2), (8,-51)}
b. Relation #2 {(13, 14), (13, 5) , (16,7), (18,13)}
c. Relation #3 {(3, 90), (4, 54), (6, 71), (8, 90)}
d. Relaton #4 {(1,3)(2,4)(2,5)(3,4)}
4. Which relations below are functions? _______________

a. Relation #1 {(3,4), (4,5), (6,7), (8,9)}
b. Relation #2 {(3,4), (4,5), (6,7), (3,9)}
c. Relation #3 {(-3,4), (4,-5), (0,0), (8,9)}
d. Relation #4 {(8, 11), (34,5), (6,17), (8,19)}
5. Which relations below are functions? _______________

a. Relation #1 {(3,4), (4,5), (6,7), (3,-9)}
b. Relation #2 {(3,4), (4,5), (6,7), (5,4)}
c. Relation #3 {(0,4), (4,-5), (0,0), (8,9)}
d. Relation #4 {(8, 11), (34,5), (6,17), (6,19)}
6. For the following relation to be a function, X cannot be what values?

{(8, 11), (34,5), (6,17), (X ,22) }
a. 8, 34, 6
b. 11, 5, 17
c. 8, 34, 6, 11, 5, 17, 22
d. 8, 34, 6, 11, 5, 17
7. For the following relation to be a function, X can not be what values?

{(12,14), (13,5) , (-2,7), (X,13)}
a. 12, 13, -2
b. 14, 5,7,13
c. 12,13,-2,14,5,7,13
d. 12,13,-2,14,5,7
67
8. For the following relation to be a function, X can not be what values?

{(12, 13), (-11, 22), (33, 101), (X ,22)}
a. 12, -11, 33
b. 13, 22, 101
c. 12, -11, 33, 13, 22, 101, 22
d. 12, 33
9. Suppose the weights of four students are shown in the following table.
Student 1 2 3 4
Weight 120 100 150 130
Find domain
a. {1, 2, 3, 4}
b. {120,100,150,130}
c. {2,3,4}
d. {1,3,5}
10. Suppose the weights of four students are shown in the following table.
Student 1 2 3 4
Weight 200 190 100 100
Find Range.
a. {200,190,100,100}
b. {200,100}
c. {200.190}
d. {200.190.100}
68
Chapter X
Statistics
Aim
• Aim of this chapter is to introduce statistics by defining it and giving its scope, applications, characteristics,
functions and limitations
Objectives:
• To enlighten the students with the term statistics by providing various definitions
• To decide weather statistics is a science or an art
• To elaborate the scope, applications, characteristics, functions and limitations of statistics
• To explore as to why there is distrust on statistics
Learning Outcome
At the end of this chapter students will be conversant with the following
• Scope, applications, characteristics, functions and limitations of statistics
• Methods of data collection
• Statistical method of data interpretation & classification
• Importance of statistical methods in project preparation at different levels of methodologies
69
10.1 Introduction
Statistics can be referred as a subject that deals with numerical facts and figures. It is the set of mathematical tools
and techniques that are used to analyze data. The word statistics is said to have been derived from the German word
Statistik meaning political science or from Old Italian word stato meaning state or from New Latin word status
meaning of which is position or form of government or political state. Statistical analysis involves the process of
collecting and analyzing data and then summarizing the data into a numerical form.
10.2 Definition of Statistics

The word statistics refers either to quantitative information or to a method of dealing with quantitative information.
There are many definitions to the term statistics given by different authors which are as given below:
• Prof.A.L.Bowley defined statistics as “Numerical statement of facts in any department of enquiry placed in
relation to each other.”
• Webster defined statistics as “The classified facts respecting the condition of the people in a state especially those
facts which can be stated in numbers or in tables of numbers or in any tabular or classified arrangement.”
10.3 Scope and Applications of Statistics

Statistics is associated with almost all the sciences as well as social, economic and political activities. The applications
of statistics are so numerous and it is of great use to human beings in many ways. Science has become so important
today that hardly any science exists independent of this and hence the statement-“Science without Statistics bear
no fruit; Statistics without Science has no root.”
• Statistical data and statistical methods are helpful in proper understanding of the economic problems and help
in solving a variety of economic problems such as wages, prices, analysis of time series etc. Statistical methods
help in formulating economic policies and in evaluating their effect
• Statistical methods are being widely used in all business and trade activities like production, financial analysis,
distribution, costing, market research, man power planning, business forecasting etc. Business executives and
managers rely mainly on statistical techniques to study the need and desire of the consumers.
• In industry, statistics is widely used in ‘quality control’. To find whether the product is confirming to specifications
or not, statistical tools like inspection plans, control charts etc are of great use
• A government’s administrative system is fully dependent on production statistics, income statistics, labour
statistics, economic indices of cost, price etc. All the departments of a government depend upon statistics for
efficient functioning
• In biology, medicine and agriculture, statistical methods are applied in the study of growth of plant, movement
of fish population in the ocean, migration of birds, effect of newly invented medicines, theories of heredity,
estimation of yield of crop, effect of fertilizer on yield, birth rate, death rate, population growth, growth of
bacteria etc
10.4 Characteristics of Statistics

• Some of its important characteristics are given below:
Statistics are aggregates of facts
Statistics are numerically expressed
Statistics are affected to a marked extent by multiplicity of causes.
• Statistics are enumerated or estimated according to a reasonable standard of accuracy.
Statistics are collected for a predetermine purpose
Statistics are collected in a systemic manner
Statistics must be comparable to each other
70
10.5 Functions of Statistics
• The various functions of statistics are as given below:
• It simplifies the mass of data. With the help of statistical methods, the complex data is simplified into
diagrammatic and graphical representations, averages etc.
• It presents the facts in a definite form. Facts that are expressed in numbers are more convincing than expressed
in statements. Statistics helps to present the data or facts in precise and definite form for easy understanding.
• It helps in comparison of data of same kind.
• Statistical methods are extremely helpful in formulating and testing hypothesis and developing new
theories.
• It helps to predict future trends and to estimate any value of the population from the sample chosen.
• It helps in bringing out the hidden relations between variables.
• With the help of statistics, decision making process becomes easier.
10.6 Limitations of Statistics

• Statistics, inspite of being widely used in many fields and being involved in every sphere of human activity,
faces certain limitations which are as follows:
• Statistics does not deal with qualitative aspects like honesty, intelligence etc. It deals with only quantitative
data.
• It does not study individual facts because individual items taken separately do not form a statistical data.
Statistical methods can be applied only to the aggregate of facts.
• Statistical tools do not provide the best solution to problems under all circumstances. It is one of the methods
of studying a problem and it should be supplemented by some other methods.
• Statistical analysis is based on probability and not on certainty. So statistical results are not universally true and
they are true only on an average.
• Common man cannot handle statistics properly, only statisticians can handle statistics properly.
• The most important limitation of statistics is that they are liable to be misused and misinterpreted. Increasing
misuse of statistics has led to increasing distrust in statistics.
10.7 Classification
Classification refers to grouping of data into homogeneous classes and categories. A group or a class category has
to be determined on the basis of the nature of the data and the purpose for which it is going to be used.
10.8 Objectives of Classification

• To condense the mass of data: Statistical data collected during the course of an investigation is in the raw form.
With raw data we can’t make any conclusion unless it is properly classified into small groups or classes.
• To prepare the data for tabulation: Only classified data can be presented in the tabular form.
• To study the relationships: Relationship between the variables can be established only after the various
characteristics of the data have been known, which is possible only through classification.
• To facilitate comparison: Classification helps us to find conclusions based onthecomparison of variables.
71
10.9 Characteristics of Classification

• The following are general guiding principles for a good classification.
• Exhaustive: Classification must be exhaustive. i.e. each and every item in the data must belong to one of the
classes.
• Mutually exclusive: Each item of information should fit only in one class, i.e. overlapping of items is not
allowed.
• Suitability: The classification should conform to the object of inquiry. For example, if the study is regarding the
economic condition of workers then classification must not be done on the basis of their religion.
• Homogeneity: The items included in each class must be homogeneous; Else there should be further classification
in to sub groups.
• Flexibility: A good classification should be flexible. It should be adjustable
To the new and changed situations and conditions.
• 0Stability: The basic principle of classification should be retained throughout.
10.10 Frequency Distribution

A classification according to the number possessing the same value of the Variable is known as frequency distribution
of the given raw data.
Tally Marks ( | ) : It facilitates counting the frequency of a value of a variate in a systematic manner. The distinct
values of the variate are written down in ascending or descending order in a column. As we go through the given
raw data, one by one a tally mark is inserted in each case against the respective value. It will be easy to count if
tally marks are arranged in blocks of five i.e. every fifth tally mark is marked by a slanting line over the preceding
four. For example for the value of variate 5 we can give tally marks as ||||, for the value of variable 13 we can give
tally marks as|||| |||||||.
10.10.1 Discrete or Ungrouped Frequency Distribution

This type of distribution shown above is called Discrete or Ungrouped Frequency Distribution. The ungrouped
frequency distribution is quite handy if the values of the variables are largely repeated otherwise there is hardly
any condensation.
10.10.2 Continuous or Grouped Frequency Distribution

In this form of distribution the frequencies refer to groups of values. This becomes necessary in the case of some
variables which can take any fractional value and in whose case an exact measurement is not possible. e.g. the
height, Weight income ,etc.
10.10.3 Cumulative Frequency Distribution

In cumulative distribution, the cumulative frequencies (c.f.) are derived by successively adding the frequencies
of the successive individual class intervals. The cumulative frequency of a given class can be represented by the
total of all the previous class frequencies including the frequency of that class. There are two types of cumulative
frequencies.
• ‘less than’ type: It will represent the total frequency of all classes less than and equal to the class value to which
it relates.
• ‘more than’ type: It will represent the total frequency of classes more than and equal to the class value to which
it relates.
72
Summary
• Statistics helps in creating more efficiency in the decision making process
• Statistics can be said as a collection of methods for planning experiments, obtaining data, and then organizing,
summarizing, presenting, analyzing, interpreting, and drawing conclusions
• The purpose of statistics is to obtain some overall understanding of group characteristics
• It is important to know how to understand statistics so that improper judgments are not made
References
• J.K. Sharma, Business Statistics, Statistics, Dorling Kindersley Pvt. Ltd. 4th Impression, 2009, p1-26 & 27-
60.
• T.R. Jain, S.C.Agarwal, Statistics for BBA, Statistics, VK Enterprises, 2009-10, p1-13, 14-24.
• J. Medhi, Statistical Methods, Methods of Data Collection, New Age International Publishers, First Edition,
reprint-2005, p8-12.
• S.P.Rajagopalan and R.Sattanathan. Business Statistics and Operations Research.2008.Tata McGraw-Hill
Education.First Reprint Edition.p1-6
2010
73
Self Assessment
1. Statistics deals with following
a. Qualitative
b. Qualitative & Quantitative
c. Quantitative
d. Productive
2. Which of the following are the functions of statistics?

a. It simplifies the mass of data.
b. It presents the facts in a definite form.
c. Statistics are numerically expressed.
d. It gives us numerical representation
3. Which of the following is not a characteristic of Statistics?

a. Statistics are aggregates of facts.
b. Statistics are affected to a marked extent by multiplicity of causes.
c. It helps in bringing out the hidden relations between variables.
d. Statistics are collected in a systemic manner.
4. Common man cannot handle statistics properly, only _________ can handle statistics properly.
a. technicians
b. statisticians
c. artisans
d. administrators
5. “By statistics we mean quantitative data affected to a market extent by multiplicity of causes.” This definition
is defined by:
a. Yule and Kendall
b. Webster
c. Prof.A.L.Bowley
d. Tippet
6. Statistics is an art or a science?

a. Art
b. Science
c. Only a.
d. Both a. and b.
7. Statistics can be referred as a subject that deals with ________

facts and figures.
a. Alphanumerical
b. Alphabetical
c. Numerical
d. Quantatitive
74
8. “Statistics is both science and art. It is a science, as its methods are basically systematic and have general
applications. It is an art, as its successful application depends to a considerable degree on the skill and special
experience of a statistician.” This statement is given by ___________.
a. Tippet
b. Peter Drucker
c. Webstar
d. Oxford
9. In industry, statistics is widely used in ___________.

a. manufacturing
b. sales
c. quality control
d. distributed
10. ______________of data leads to false conclusions.

a. Misinterpretation
b. Understanding
c. Conceptualization
d. Summarizing
75
Application I
Interpolation:
• In financial analysis Interpolation is used widely in;
• Determination of IRR
• Finding out yield to maturity bond debenture
• Time value of money
• Present & future value tables.
• Example:
• The cash inflows of a project involving an initial outlay of Rs.22 lakh is as follows;
Year Rs. In lakh

1 10
2 10
3 6
4 3
The IRR is the rate at which the total value of discounted cash outflow is exactly equal to the disc. Cash inflows.
The IRR of the project can be determined only through a process of trial and error.
To begin with, let us try Disc rate of 14 %.
Using PV interest factor table , the discounted cash inflows will be,
(10x0.877) + (10x0.769) + (6x0.675) + (3x0.592)
= Rs. 22.29 lakh
Since it is higher than initial outflow, we must discount at higher rate.
Likewise at 15 % interest rate
(10x0.870)+(10x0.756)+(6x0.658)+(3x0.572) = Rs.21.93 Lakh
Now we know that as the rate increased by 1 % the Discounte cash flows falls from 22.29 to 21.93
Therefore the descent rate would be, around 22 lakh because it should be higher than 21.93 & lower than 22.29
lakh
So, The IRR = 14% + x 1 = 14 + 0.806
76
Application II
Statistics:
• Statistics in School:
• May be used to see the performance of students collectively in studies, sports or other activities
• Gives information about the school’s population change every year
• Helps in processing certain evaluations and surveys given to help improve the planning and co-ordination of
all school activities
• Decide the relationship of educational presentation to other factors like socioeconomic background
Statistics in Social Science:

• Helps in providing the government more information about its citizens
• Statistical results may initiate social reforms that would help benefit the standard of living
77
Application III
Statistics in Sports
Gives a brief summary of the events in a game with help of tables , graphs and other parameters
• Statistics in Science
• Rare species of different wildlife could be protected through regulations and laws developed using statistics
• Epidemics and diseases are examined with the help of statistics
• Helps in the evaluation of certain medical practices and the effectiveness of drugs
78
Solved Examples
Chapter I
Matrices & Determinants
Q.1. Solve,
x+y+z=6
y+z=3
y–z=1
Solution: Using Crammer’s Rule,
= 1(-1-1)-1(0)+1(0)
= -2+0+0
= -2
=
= 6(-1-1)-1(-3-1)+1(3-1)
= -12+4+2
= -6
=
= 1(-3-1)-6(0)+1(0)
= -4+0+0
= -4
=
= 1(1-3)-1(0)+6(0)
= -2+0+0
= -2
Therefore, solution is as
X=
= -6/-2
=3
Y= /
= -4/-2
=2
Z=
= -2/-2
=1
Therefore, X =3, Y = 2, Z = 1
79
Chapter II
Mathematical Logic
Q. Solve according to De Morgan’s Law.
Prepare truth table for, ~ (p∨ q) = ~p ∧ ~q
Solution:
p q ~p ~q
T T T F F F F
T F F T F T T
F T F T T F T
F F F T T T T
Q. Prove that, p→q = ~p⋁q = ~q→~p

Solution:
~q→~p
p q p→q ~p ~q ~p⋁q
T T T F F T T
T F F F T F F
F T T T F T T
F F T T T T T
Chapter III
Set Theory
Q. In a class of 42 students, every student studies at least one of the subjects. Mathematics (A), English
(B) and Commerce (C).
14 students study Mathematics, 20 Commerce and 24 English. 3 students study Mathematics and Commerce,
2 study English and Commerce and there are no students who study all the three subjects. Find the number
of students who study Mathematics and English and not Commerce.
Solution:
Given that:
U=42, n(A)=14, n(B)=24, n(C)=20, n(A∩C)=3, n(B∩C)=2, n(A∩B∩C)=0
We have to find n(A∩B)=?

n(A∪B∪C) = U
= n(A)+n(B)+n(C)-n(A∩B)-n(B∩C)-n(A∩C)+n(A∩B∩C)42
= 14+24+20-n(A∩B)3-2+0
Therefore, solving
n(A∩B)=11
Number of students who study Mathematics and English and not Commerce = 11
80
Q. It is known that in a group of people, each of the members speaks at least one of the languages English,
German, and Russian. 31 speaks English, 36 speaks German, 27 speaks Russian, 10 speak both English
and German, 9 both English and Russian and 11 both German and Russian. Prove that the group contains
at least 64 people and not more than 73 people.
Let A represent English, B represent German and C represent Russian.
Given that : n(A)=31, n(B)=36, n(C)=27,n(A∩B)=10,n(A∩C)=9, n(B∩C)=11
n(A∪B∪C) = n(A)+n(B)+n(C)-n(A∩B)-n(B∩C)-n(A∩C)+n(A∩B∩C)
= 31+36+27-10-11-9+n(A∩B∩C)
n(A∪B∪C) = 64+n(A∩B∩C)
If there is no person who speaks all the three languages then n(A∩B∩C)=0
Thus people in the group =64+0 =64. But, if there are some persons who speak all the three languages
then, Considering, n(A∩B)=10,n(A∩C)=9,n(B∩C)=11
We have, n(A∩B∩C)=9(cannot be more than9)
Thus the Maximum number of people in the group = 64+9 = 73.
Chapter VI
Arithmetic & Geometric Progression
Q. A gas lighter has to light 100 gas lamps. He takes 1.5 minutes to go from one lamp post to the next.
Each lamp burns 10 cubic feet of gas per hour. How many cubic feet of gas has been burnt by 8.30 p.m.,
if he lights the first lamp at 6.00 pm.?
Solution:
First lamp burns for 150 minutes. (From 6.00 to 8.30pm.)
Second lamp burns for, (150 - 1.5)
Third lamp burns for, (150 - 2 x 1.5)
Fourth lamp burns for, (150 - 3 x 1.5)
Similarly, 100 lamp burns for (150 - 99 x 1.5)
Therefore, Total time = 150 x 100 - 1.5(1+2+3+…….+99)
= 15000 - 1.5 (99 x 100 )
Since, 1+2+3….+99 in A.P.2
= 15000 -7425 = 7575 minutes.
Therefore, Total gas burnt = 7575 (10/60)
= 1262.50 cubic feet.
81
Q. A car is purchased for Rs. 80,000. Depreciation is calculated at 5 % per annum for the first 3 years and
after that at 10 % per annum for the next 3 years; depreciation is calculated on the diminishing value.
Find the value of the car after a period of 6 years.
Solution:
Let the cost of the car = Rs. P
Depreciation in the first year = P x 5/100………… (5%)
Depreciated value after the first year = cost depreciation
= P - (P x 5/100)
= P (1- (5/100))
Depreciation for the second year = P (1- (5/100)) x 5/100,
Since (5% on diminishing value)
Depreciated value after the second year is as,
= [P (1- (5/100))] - [P (1- (5/100)) x 5/100 ], Can be simplified as,
= P [1- (5/100)]2
Similarly after 3 years = P [1- (5/100)]3 , For the next 3 years 10 % depreciation is [1-(10/100)]3
Therefore, after 6 years the value of the car is,
= P [1 - (5/100)]3 x [1-(10/100)]3
(Since P = cost of the car = 80,000 given)
= 80,000 x [1 - (5/100)]3 x [1 - (10/100)]3
= 50,002
Chapter V
Probability
Q. An urn contains 3 white and 5 red balls and another urn contains 2 white and 4 red balls. One urn is
selected at random and a ball is drawn from it at random.
Find the probability that the ball drawn is red.
Solution:
The required event happens if one of the following two mutually exclusive events happens.
Let event A : First urn is selected and the ball drawn is red.
Let event B : second urn is selected and the ball drawn is red.
Probability that out of two urns, the first one is selected is ½.
When it is known to be selected, probability that the ball is red for the first urn is 5/8.
Thus, P(A) = (½)(5/8) = 5/16
When it is known to be selected, the probability that the ball is red for the second Urn is 4/6
Thus P(B) = (½) (4/6) = 1/3
Required probability = P(A∪B) = P(A) + P(B)
= 5/16 + 1/3
P = 31/48.
82
Q. If P(A) = ½, P(B) = 1/3, P(A∩B) = ¼, Find P(A/B), P(A∪B), P(A‘∩Β’).
Solution:
P(A/B) = P(A∩B)/ P(B) = (¼)/1/3) = ¾
P(A∪B) = P(A) + P(B)- P(A∩B) = ½ + 1/3 ¼ = 7/12
P(A‘∩Β’) = P(A ∪ B)' ……… Using De Morgan's Law
= 1 - P(A∪B) . …….. [ P(A) + P(A') = 1 ]
= 1 - 7/12
= 5/12.
Chapter VI
Permutations & Combinations
Q. 4 men and 3 women are to be seated for a dinner such that no 2 women sit together and no 2 men sit
together. Find the number of ways in which this can be arranged?
Solution:
Let the seven chairs be numbered as 1, 2, 3, 4, 5, 6, 7
Now 3 women can be placed in 3 even places in 3P3 ways = 3!
In the remaining 4 places 4 men can be arranged as 4P4 ways = 4!
The total number of ways of arrangement according to the given condition is

3! X 4! = 144.
Q. Find n and r, if nPr = 110, nCr = 55.
Solution:
We know that,
n
Cr =
55 =
Therefore, by solving, r! = 2
Since,
r! = 2
gives r = 2
n
P2 = n(n-1) = 110
by solving , we get n = -10 or n = 11
But n can’t be negative.
Thus, n =11
83
Chapter VIII
Commercial Arithmetic
Q. A salesman receives (9/2) % commission on sales upto Rs.3000 and 5% commission on the sales
over Rs.3000. Find his total income on a sale of Rs. 7500.
Solution:
Since, on Rs.100 the commission is 9/2.
Therefore, on Rs. 3000 the commission is = 135
Thus, for sales up o Rs. 3000 commission is 135
Now sales over Rs. 3000 is (7500-3000) = 4500

Since on Rs.100 the commission is Rs. 5
Therefore, on Rs. 4500 the commission is 4500x 5 = 225
100
Thus, sales over Rs. 3000, commission is 225
Therefore, the total commission on a sale of Rs. 7500 = 135+225 = Rs. 360
Q. Find the present worth of Rs. 560 due 3 years hence at 4% per annum simple interest. Find also the
true discount.
Solution:
Let Present Worth (P.W.) = Rs. P
S.D. = P.W. + T.D.
S.D. = P + P.n.r /100 ………………simple interest = pnr/100
Where , n= no of yrs. & r = rate of interest.
S.D. = P ( 1 + n.r/100) …………….equation (1)
Let n = number of years = 3
r = rate of interest = 4
S.D.= 560 (given)
Thus, solving equation (1), we get P = 500
T.D. = S.D - P.W.
T.D. = 560 - 500 = 60
Thus,
Present Worth = Rs.500
True Discount = Rs. 60
84
Chapter IX
Relation & Functions
Q. A company has fixed costs of Rs. 26,000. The cost of producing one item is Rs. 30. If this item sells
at Rs. 43, what is the break-even point?
Solution:
Let x = number of items produced and sold
C(x)
= Total cost = fixed cost + variable cost
= 26,000 + 30x
R(x)
= Total revenue
= 43x
At the break-even point, C(x) = R(x)

26,000 + 30x = 43x
By solving, x = 2,000 items.

Therefore, break-even point is at 2,000 items.
85
Bibliography
References
• Rajendra Akerkar, Discrete Mathematics: Set theory, Dorling Kindersley Publication India. 2008. 2nd Impression
2009. P109-123.
• T. Veeraranjan, Discrete Mathematics with graph theory & Combinatorics: Set theory, McGraw-Hill Publication,
7th Edition. 2008. P51-64.
• Seymour Lipschutz, Set theory and related topics: Set Theory, Mcgraw-Hill Publication. 1998, 2nd Edition.
P1-35.
• H. Dubner, Large Sophie Germain primes, Math. Comp. 65 (1996), 393-396.
• R. K. Guy, Unsolved Problems in Number Theory, 2nd ed., Springer-Verlag, 1994, pp. 15-18.
• G. H. Hardy and E. M. Wright, An Introduction to the Theory of Numbers, 5th ed., Oxford Univ. Press, New
York, 1979.
• L. J. Lander and T. R. Parkin, Consecutive primes in arithmetic progression, Math. Comp. 21 (1967), 489.
• H. L. Nelson, There is a better sequence, J. Recreational Math. 8 (1) (1975), 39-43.
• P. A. Pritchard, A. Moran, and A. Thyssen, Twenty-two primes in arithmetic progression, Math. Comp. 64
(1995), 1337-1339.
• Charles Miller Grinstead, James Laurie Snell, Introduction of Probability: Probability, AMS Bookstore, 1997,
p133-137
• Frederick Mosteller, Probability: Probability, Dover Publications, 1987, First Edition, p1-100
• Dartmouth, Probability http://www.dartmouth.edu/~chance/teaching_aids/books_articles/probability_book/
book.pdf, last accessed: 18 oct 2010
• Math Goodies, Probability, http://www.mathgoodies.com/lessons/vol6/intro_probability.html, last accessed:
18 oct 2010
• Britannica Encyclopedia, Probability, http://www.britannica.com/EBchecked/topic/477530/probability-theory,
last accessed: 18 oct 2010
• Krishna R. Kumar, Discrete Mathematics, Permutation & Combination, Firewall Media, 2005, p23-47.
• G. Shankar Rao, Discrete mathematical structure, Permutation, New Age International, 2002, p14-54.
• R.C. Pennar, Discrete Mathematics, Combination, World Scientific, 1999, p54-67.
• TR Jain, AS Sandhu, Quantitative Methods: Interpolation, VK Publication, 2006-07, p7.1-7.38
• B.R.Agarwal, Programmed Statistics, Interpolation, New Age International, 2nd Edition, 2007, p405-425.
• N.P Bali, P.N.Gupta, A textbook of Quantitative Techniques, Interpolation, Laxmi Publications, 1st edition,
2008, p134-145.
• G.R. Veena, Business Mathematics, Commercial Arithmetic, New Age International Publishers, 2006, p215-
255, 268-270
• R.S Aggarwal, Quantitative Methods, S.Chand Publications, 2008, p251-293 & 632-636
• Oscar Williams, Commercial Arithmetic, Profit & Loss Bibliobazar, 2008, p3-85
• S. Jackson, Commercial Arithmetic, Special Application, 2009, p23, 45-67.
• Geo H. Douglas, Modern Commercial Arithmetic, Business Mathematics, Commision agent, 2007, p34-90
• TR. Jain, Quantitative Methods, Relation & Functions, FK Publication, 2nd Edition, p54
• Author Stream, Relation & Functions, www.authorstream.com/.../sadamava-373982-2-1-relations-functions-
ppt-relationsfunctions-powerpoint-education/, Last accessed-10th October 2010.
• Tutor Vista.Com, Relation & Functions, www.tutorvista.com › Math › Algebra, Last accessed-10th October
2010.
86
• Purple Math, Relation & Fuinctions, www.purplemath.com/modules/fcns.htm, last accesed-10th Ocober
2010.
• J.K. Sharma, Business Statistics, Statistics, Dorling Kindersley Pvt. Ltd. 4th Impression, 2009, p1-26 & 27-
60.
• T.R. Jain, S.C.Agarwal, Statistics for BBA, Statistics, VK Enterprises, 2009-10, p1-13, 14-24.
• J. Medhi, Statistical Methods, Methods of Data Collection, New Age International Publishers, First Edition,
reprint-2005, p8-12.
• S.P.Rajagopalan and R.Sattanathan. Business Statistics and Operations Research.2008.Tata McGraw-Hill
Education.First Reprint Edition.p1-6
Recommended Reading
• Dr. V.N. Kala, Rajashri Rana. Matrices. 2009.Laxmi Publication ltd. First Edition. P1-25 & 140-144.
• TR Jain, SC Agarwal. Business Mathematics & Statistics. V.K Enterprises.2009-10. Revised. P1-40.
• TR Jain, SC Aggarwal, Quantitative Methods. 2008-09. FK Publication. P1-92.
• J.O.Bird(2001), Newnes engineering mathematics pocket book, Matrices & determinants, Butterworth &
hannmen, p230-240.
• Gareth Williams (2009), Gareth Williams, Matrices & determinants, Jones& Bartlett Publications, 7th Edition,
p69-165.
• David Poole(2005), Linear Algebra, Matrix, Cengage learning, 2nd Edition, p134-150.
• David McMahon, Linear Algebra Demystified, Matrices, McGraw-hill publication, 2005, p34-74
• Howard Anton, Elementary Linear Algebra, Matrices, FM Publications, 10th edition 2010, p1-106.
• Warner Greub, Linear Algebra graduate texts in mathematics, Springer, 1975, p83-131
2010
• Joseph S. Fulda (1993). Exclusive Disjunction and the Bi-conditional: An Even-Odd Relationship. Mathematics
Magazine 66 (2):124.
• Philip P. Hallie (1954). A Note on Logical Connectives. Mind 63 (250):242-245.
• Dean P. McCullough (1971). Logical Connectives for Intuitionist Propositional Logic. Journal of Symbolic
Logic 36 (1):15-20.
• Heinrich Wansing (2006). Logical Connectives for Constructive Modal Logic. Synthese 150 (3)
• Donald Waters(2006), Quantitative Methods for business, Set Theory, Prentice Hall Publication,4th Edition
• Diana Bedward (1999), Quantitative methods, Set theory, Elsevier,
• J. Curwin Slater(2007), Quantitaitve Methods, Set theory, Thomson Learning,
• Donald Waters(2006), Quantitative Methods for business, Progression, Prentice Hall Publication,4th Edition
• Diana Bedward (1999), Quantitative methods, Arithmetic Progression, Elsevier
• J. Curwin Slater(2007), Quantitaitve Methods, Progression, Thomson Learning
• Donald Waters(2006), Quantitative Methods for business, Probability , Prentice Hall Publication,4th Edition
• Diana Bedward (1999), Quantitative methods, Probability, Elsevier
• J. Curwin Slater(2007), Quantitaitve Methods, Probability , Thomson Learning,
87
• Donald Waters(2006), Quantitative Methods for business, Permutation & Combination, Prentice Hall
Publication,4th Edition
• Diana Bedward (1999), Quantitative methods, Permutation, Elsevier,.
• J. Curwin Slater(2007), Quantitative Methods, Combination ,Thomson Learning.
• Waters Donald(2006), Quantitative Methods for business, Interpolation, Prentice Hall Publication,4th
Edition
• Bedward Diana(1999), Quantitative methods, Interpolation, Elsevier,
• J. Curwin & Slater(2007), Quantitaitve Methods, Interpolation of Polynomials, Thomson Learning,
• John Henry Moore, New Commercial Arithmetic, Bibliobazaar LLC, 2008, p50-145.
• Augustus D morgan, Elkements of Arithmetic, Taylor & Walton, 1900, p125-150.
• Frederick calder, Elementary rules of Arithmetic, revised edition, 1852, p106, 171.
• Donald Waters(2006), Quantitative Methods for business, Relation & fuinction, Prentice Hall Publication,4th
Edition
• Diana Bedward (1999), Quantitative methods, Relation & Functions, Elsevier.
• J. Curwin Slater(2007), Quantitaitve Methods, Relation & Functions, Thomson Learning.
2010
88
Self Assessment Answers
Chapter I
1. c
2. a
3. d
4. b
5. b
6. a
7. a
8. a
9. a
10. a
Chapter II
1. a
2. d
3. c
4. b
5. b
6. d
7. a
8. a
9.
P Q ~P ~Q
T T F F
T F F T
F T T F
F F T T
10.
P Q ~P ~Q ~P v ~Q P ^ (~P v ~Q)
T T F F F F
T F F T T T
F T T F T F
F F T T T F
Chapter III
6. False
7. True
8. False
9. True
10. a) There are two sets in three elements, {1, 2, 3} & {6, 7, 8}. Hence B= [{1, 2,3},{6,7,8}]
b) There are no sets in A with four elements; hence B is empty, that is, B=∮.
11. -{a,b,c,d,e,f,g}
12. -{b,g}
13. -{e,g,h}
14. -{d,e}
15. . {7, 11, 16}
16. . {7,11,13,16,17}
89
Chapter IV
1. b
2. a
3. d
4. b
5. c
6. b
7. a
8. a
9. d
10. b
Chapter V
1. b
2. b
3. d
4. a
5. b
6. d
7. c
8. a
9. b
10. b
Chapter VI
1. b
2. b
3. b
4. b
5. b
6. c
7. a
8. d
9. b
10. c
Chapter VI
1. a
2. b
3. a
4. d
5. c
6. c
7. a
8. d
9. d
10. b
90
Chapter VIII
1. a
2. c
3. b
4. d
5. a
6. b
7. b
8. b
9. a
10. b
Chapter IX
1. domain = -1.2.1.8.9
range= 2.51.3.22
2. domain= -5.21.11.81.19
range= 6.-51.93.202.51
3. Relation #1 and Relation #3 are both functions.
4. Relation #1 and Relation #3 are functions because each x value, each element in the domain, has one
and only one y value, or one and only number in the range.
5. Relation #2 is only function.
6. a
7. a
8. d
9. a
10. d
Chapter X
1. b
2. d
3. c
4. b
5. a
6. d
7. c
8. a
9. c
10. a
91

Quantitative Techniques

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Quantitative Techniques

Загружено:

Авторское право:

Доступные форматы

Quantitative Techniques in Business

Prof. H. N. Verma Prof. M. K. Ghadoliya

Prof. Milind M. Kulkarni Ashwini Pandit

First Edition 2013

II. List of Tables. ......................................................... VII

III. Case Study............................................................... 76

IV. Solved Examples.................................................... 79

VI. Self Assessment Answers........................................ 89

• To understand the different types of matrices & determinants

• To bring forward an idea of applications of matrices in various fields

• What matrices are

• Performing basic operations on matrices

• Special forms of matrices

• The matrix determinant

Matrices are used to solve problems in:

1.3 Types of Matrix

1.3.2 Column Matrix

1.3.3 Square Matrix

1.3.4 Zero or Null Matrix

1.3.6 Unit or Identity Matrix

1.3.7 Equal Matrices

1.4 Operations on Matrices

1.4.1 Addition of Two Matrices

1.4.2 Subtraction of Two Matrices

1.4.3 Scalar Multiplication of a Matrix

1.4.4 Multiplication of Two Matrices

1.5.1 Singular and Non-singular Matrices

1.6 Properties of Determinants:

1.7 Difference between Matrices & Determinants

Features Matrices Determinants

Way of writing • It is written in Brackets • It is written in two straight lines

• These are resulted in set of numbers

Table 1.1 Difference between matrices & determinants

1.8 Uses & Applications of Matrices & Determinants:

1.9 Solutions to System of Linear Equations

Step 4: Obtain solution as

Note: For a system of three variables obtain solution as, x = /  and y = z= / 

Therefore, solution is as x = / = 15/5 = 3 x y = = 5/5 = 1 y

2. It is given that P= and Q= . Find the value of x+y, if P=Q.

5. The multiplication of matrix by a number is called __________.

6. Choose correct option from the following.

7. Using determinants, find the area of triangle whose vertices are

8. Add the following two matrices

9. Multiply the matrix

10. Find the inverse of A =

• To treat the operations of formal logic in symbolical & algebraic way

• To understand the logical connectives to describe the statements

• To explain different laws of algebra of prepositions

• To enrich the different statement patterns in mathematical logic

• Use the mathematical logic in defining management problems

• Solve the complex procedures into simpler form

2.1.2 Compound statement

2.1.3 Truth Table

Truth value (Truth)

Precedence of logical connectives is:

2.2 Logical Connectives:

Table 2.1 Conjunction table

Table 2.2 Disjunction table

Table 2.3 Negation table

Table 2.4 Conditional table

Table 2.5 Bi-conditional able

2.3 Tautology and Contradiction

2.4 Laws of Algebra of Propositions