BUSINESS MATHEMATICS & STATISTICS

COURSE DESCRIPTION
The scope of the course is to see the horizon of Mathematics & Statistics
application in business and financial affairs. The course stresses business
applications using arithmetic, algebra, and ratio-proportion and graphing.

Applications include payroll, cost-volume-profit analysis and merchandising

mathematics. The course also includes Statistical Representation of Data,
Correlation, Time Series and Exponential Smoothing, Elementary Probability and
Probability Distributions. This course stresses logical reasoning and problem solving
skills.

INDENTED LEARNING OUTCOMES

At the conclusion of this course, the student should be able to:
1. Apply arithmetic and algebraic skills to everyday business problems.
2. Use ratio, proportion and percent in the solution of business problems.
3. Solve business problems involving commercial discount, markup and
markdown.
4. Solve systems of linear equations graphically and algebraically and apply to
cost volume profit analysis.
5. Apply Statistical Representation of Data, Correlation, Time Series and
Exponential Smoothing methods in business decision making
6. Use elementary probability theory and knowledge about probability
distributions in enveloping profitable business strategies.

COURSE CONTENT
SET THEORY AND SYSTEM OF LINEAR EQUATIONS
Set Theory, Types of sets
Methods of Representing sets ,Venn Diagram
System of Linear Equations and its Applications
Week 01, 02 Solution of Linear system of equations as well as solution
by graphically method
Quadratic Inequalities

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 Sets and properties of sets
Slopes, distance between two points, graphical
understanding
Rate, Ratio, proportion, percentage, Interest, depreciation
and fraction.
Pie chart, bar chart and word problems
Week 03, 04 Real number and real line
Solution of linear equations involving one and two
variables and presenting them in real line
Mathematical concepts in Business
Discount, profits and general understanding of business
Mathematics of merchandise

MATRICES
Introduction of matrices, addition, subtraction and
multiplication of matrices
Inverse of matrices and linear solution
Week 05, 06 Exponents and radicals
Solution of linear equations involving more than two
variables
Introduction to optimization and linear programming

DESCRIPTIVE STATISTICS
Introduction to Statistics
Constructing a Frequency Distribution
Graphing Frequency Distribution
Measures of Central Tendency
Week 07 Percentiles, Deciles and Quartiles
Measures of Dispersion and skewness
Range and Semi-Interquartile Range
Coefficient of Variation
Chebysshevs Inequality

Week 08 Mid-Term
PROBABILITY
Definitions of Probability
Addition and Multiplication Rules of Probability
Probability Distribution
Discrete Probability Distribution
Expected Values and Variance
Week 11 Continuous Probability Distribution
The Binomial Distribution
The Poisson Distribution
Hyper geometric Distribution
The Normal Distribution

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 SAMPLING AND SAMPLING DISTRIBUTION
Population and Sample
Parameters and Estimators
Reasons for Sampling
Random Sampling
Week 12 Stratifies Random Sampling
Systematic Sampling
Cluster Sampling
Sampling Distributions
Point and Interval Estimation
Determination of Sample Size

TESTING OF HYPOTHESIS
The rationale of Hypothesis Testing
Type of Errors
Testing Hypothesis about One Mean
Week 13
Testing Hypothesis about Two Means
Testing Hypothesis about Proportions
Goodness of Fit
Contingency Table Analysis
REGRESSION AND CORRELATION ANALYSIS
The Functional Relationship between Two Variables
Scatter Diagram
Linear Correlation
Week 14 Inferences Concerning Correlation Coefficient
The Linear Regression Equation
The Principle of Least Squares
Estimating Regression Equation
Coefficient of Determination
Multiple Regression and Correlation Analysis
TIME SERIES AND INDEX NUMBERS
Introduction to Time Series
Components of Time Series
Measures of Trend and Seasonal Variation
Week 15 Time Series Analysis in Forecasting
Defining and Index Number
Un-weighted Aggregate Index
Price, Quantity and Value Indices
CPI and its Use
Week 16 Final Exam

TEXT BOOKS:
1. Mansfield, E., Statistics for Business & Economics: Methods and Applications.
2. Danier, W. W., Terrell, J. C., Business Statistics: Basic Concepts and
Methodology.

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