Business Maths - English Medium - GENESIS Scorewell Scanner

First Edition : December 2011
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No. Chapter Page No.
1 Application of Matrics and Determinant 1 - 4
2 Analytical Geometry 5 - 9
3 Application of Differentiation - I 10 - 13
4 Application of Differentiation - II 14 - 17
5 Application of Integration 18 - 21
6 Differential Equation 22 - 26
7 Interpolation and Fitting a Straight Line 27 - 29
8 Probability Distribution 30 - 33
9 Sampling Techniques and Statistical Inference 34 - 36
10 Applied Statistics 37 - 43
CONTENT
+2 Business Maths
www.GenesisTally.Com
1
APPLICATION OF MATRICES AND DETERMINANT
1
-
ESSENCE OF CHAPTER 1
1. Adjoint of a matrix
Step 1. Given matrix A
2. Cofactor Matrix = A
C
3. Adjoint A = A
C
T
Results : 1. Adj I = I
2. A (adj A) = (adj A) A = A I
3. Adj (AB) = (adj B) (adj A)
4. A is a square matrix of order n
1
Adj A A
n
=
2. Inverse of a non singular matrix
1. Given matrix A
2.
A 0 =
, Inverse exists
3. Find : Adj A = A
C
T
4.
1
1
A adjA
A
=
,

A 0 =
Result : AA
1
= I (AB)
1
= B
1
A
1
3. A and B inverses to each other then AB = I
4, Rank of a matrix. It is denoted by
A positive integer r is said to be the rank of non zero matrix A.
i) there is atleast one minor of A of order r which is not zero. ii) every minor of A of order
greater than r is zero.
Elementary Transformation :
i. A has atleast one minor r which does not vanish
ii. Every minor A of order (r + 1) andhigher order vanish
Find Rank using Elementary Transformation
Step 1 Given matrix A
Step 2 The number of non zeros before the first non zero row element in a row is
less than such zeros in thenext row
Step 3 The rank of matrix is no. of non zero rows of thematrix.
Step 4 It is denoted by (A)
5. Testing the consistency of equations by rank method.
1. Given equation into matrix form AX = B is n unknown.
2. Augmented matrix [A B]
3. Convert into triangular form or Echlon form
4. (AB) (A) = , then the equations are consistent.
5. (AB) (A) = , then the equations are inconsistent.
6. (AB) (A) n = = , then the equations are consistent and have unique solution.
7. (AB) (A) n = < , then the equations are consistent and have infinitely many solutions.
6. Homogeneous Equation : AX = 0 is unknown
1. (A) n = the equations have trivial solution
Applictation of Matrics and Determinant
+2 Scorewell Scanner - GENESIS
2
2. (A) n < the equations have non-trivial solution
Note : Homogeneous equations always consistent.
7. Solution of Linear equations
1. Solution by matrix method
i) The equation into matrix form (i.e.) AX = B
ii) X = A
1
B
iii) Find A
1
then X = A
1
B
8. Determinant Method (Cramers Rule)
a
1
x + b
1
y + c
1
z = d
1
a
2
x + b
2
y + c
2
z = d
2
a
3
x + b
3
y + c
3
z = d
3
A =
a b c
a b c
a b c
1 1 1
2 2 2
3 3 3
A =
d b c
x d b c
d b c
1 1 1
2 2 2
3 3 3
A =
a d c
y a d c
a d c
1 1 1
2 2 2
3 3 3
A =
a b d
z a b d
a b d
1 1 1
2 2 2
3 3 3
0 A =
, Then the unique solution is given by
A
=
A
x
x ,
y
y
A
=
A
,
z
z
A
=
A
9. Input - Output Analysis
Two equations : a
11
+ a
12
+ d
1
= x
1
a
21
+ a
22
+ d
2
= x
2
b
ij
=
ij
j
a
x
i, j = 1, 2
11
11
1
=
a
b
x
12
12
2
=
a
b
x
21
21
1
=
a
b
x
22
22
2
=
a
b
x
11 12
21 22
B
| |
=
|
\ .
b b
b b
11 12
21 22
1
I B
1
| |
=
|

\ .
b b
b b
X = (I B)
1
D
Hawkins - Simon conditions
i) the main diagonal element in (I B) must be positive
ii) I B must be positive
10. Transition probability matrix
T =
A B
A
B
| |
|
\ .
Initial Market Share =
( )
A B
Share after one week = (A B) T
AT Equilibrium (AB)T = (AB)
+2 Business Maths
3
I. Choose and write the correct answer :
1. If the minor of a
23
equals the cofactor of a
23
in
ij
a then the minor of a
23
is
a) 1 b) 2 c) 0 d) 3
2. The Adjoint of
0 2
2 0
| |
|
\ .
is
a)
2 0
0 2
| |
|
\ .
b)
0 2
2 0
| |
|
\ .
c)
1 0
0 1
| |
|
\ .
d)
0 2
2 0
| |
|
\ .
3. The Adjoint of
1 0 0
0 1 0
0 0 1
| |
|
|
|
\ .
is
a)
1 0 0
0 1 0
0 0 1
| |
|
|
|
\ .
b)
1/3
1/3
1/3
0 0
0 0
0 0
| |
|
|
|
\ .
c)
1 0 0
0 1 0
0 0 1
| |
|
|
|
\ .
d)
2 0 0
0 2 0
0 0 2
| |
|
|
|
\ .
4. If AB = BA = A I then the matrix B is
a) the inverse of A b) the transpose of A c) the Adjoint of A d) 2A
5. If A is a square matrix of order 3 then AdjA is
a)
2
A b) A c)
3
A d)
4
A
6. If A = 0 then AdjA is
a) 0 b) 1 c) 1 d)
1
7. The inverse of
0 2
2 0
| |
|
\ .
is
a)
1
2
0
2 0
| |
|
|
\ .
b)
1
2
1
2
0
0
| |
|
|
\ .
c)
1
2
1
2
0
1
| |
|
|
\ .
d)
2 0
0 2
| |
|
\ .
8. If A =
0.8 0.6
0.6 0.8
| |
|
\ .
then A
1
is
a)
0.8 0.6
0.6 0.8
| |
|
\ .
b)
0.8 0.6
0.6 0.8
| |
|
\ .
c)
0.8 0.6
0.6 0.8
| |
|
\ .
d)
0.2 0.4
0.4 0.2
| |
|
\ .
9. For what value of k the matrix A, where A =
2
3 5
k | |
|
\ .
has no inverse?
a)
3
10
b)
10
3
c) 3 d) 10
Applictation of Matrics and Determinant
4
10. If A =
2 3 1
3 4 1
3 7 2
| |
|
|
|
\ .
then A
1
A is
a) 0 b) A c) I d) A
2
11. The rank of an n x n matrix each of whose elements is 1 is
a) 1 b) 2 c) n d) n
2
12. The rank of an n x n matrix each of whose elements is 2 is
a) 1 b) 2 c) n d) n
2
13. The rank of a zero matrix is
a) 0 b) 1 c) 1 d)
14. The rank of a non singular matrix of order n x n is
a) n b) n
2
c) 0 d) 1
15. A system of linear homogeneous equations has at least
a) one solution b) two solutions c) three solutions d) four solutions
16. The equatios AX = B can be solved by Cramers rule only when
a) A 0 = b) A 0 = c) A = B d) A B =
17. The number of Hawkins - Simon conditions for the viability of an input - output model is
a) 1 b) 3 c) 4 d) 2
18. If T =
A B
A 0.7 0.3
B x 0.8
| |
|
\ .
is a transition probability matrix, then the value of x is
a) 0.3 b) 0.2 c) 0.3 d) 0.7
Answers :
1. (c) 2. (b) 3. (c) 4. (c) 5. (a) 6. (a) 7. (b) 8. (b)
9. (b) 10. (c) 11. (a) 12. (a) 13. (a) 14. (a) 15. (a) 16. (b)
17. (d) 18. (b)
.
+2 Business Maths
5
1. Conics :
Locus of point which moves in a plane. Such that its distance from a fixed point in the plane bears
a constant ratio to its distance form a fixed St. line in that plane.
FP
e
PM
=
a parabola if e = 1
an ellipse if e < 1
a hyperbola if e > 1
2. ax
2
+ 2hxy + by
2
+ 2gx + 2fy + c = 0 is a general equation of conics.
i) Pair of Straight line if abc + 2fgh af
2
bg
2
ch
2
= 0
ii) Circle if a = b, and h = 0
iii) Parabola h
2
ab = 0
iv) an ellipse h
2
ab < 0
v) a hyperbola h
2
a > 0
3. Standard equation of parabola
ANALYTICAL GEOMETRY
2
-
P
L
S (Focus)
directrix
P (x, y) P
D'
x
V (0,0)
S (a, 0)
Directrix
N
x = a
Different types of parabola
Axis
Figure Vertex Focus Directrix
(0, 0) (a, 0) x = a
LLR
4a y = 0
Type Equation
2
4 y ax =
Open
left
ward
x = a
V(0,0)
S(a,0)
(0, 0) (a, 0) x = a
x = a
V(0,0)
S(a,0)
4a y = 0
Open
Right
ward
2
4 y ax =
Analytical Geometry
6
Note : (a + b + c)
2
= a
2
+ b
2
+ c
2
+ 2ab + 2bc + 2ca
(a b + c)
2
= a
2
+ b
2
+ c
2
2ab 2bc + 2ca
(a b c)
2
= a
2
+ b
2
+ c
2
2ab + 2bc 2ca
4. Ellipse :
if e < 1 (or) h
2
ab < 0
Standard equation of ellipse :
2 2
2 2
1
x y
a b
+ =
Axis
Figure Vertex Focus Directrix
(0, 0) (0, a) y = a
LLR
4a x = 0
Type Equation
2
4 x ay =
Open
down
ward
(0, 0) (0, a) y = a 4a x = 0
Open
up
ward
2
4 x ay =
y = a
V(0,0)
S(0,a)
y = a
V(0,0)
S(0,a)
CA = CA
1
= a CS = CS
1
= ae CZ = CZ
1
= a e
M
1
Z
1
C (0,0)
P
S
(ae,0)
x a e =
M
Z
A
(a,0)
A
1
(a,0)
S
1
(ae,0)
x a e =
AA' = 2a = length of major axis BB' = 2b = length of minor axis
b
2
= a
2
(1 e
2
) a > b e =
2
2
1
b
a
B (0,b)
B
1
(0,b)
+2 Business Maths
7
Note : SP + S'P = 2a (Length of major axis)
5. Standard Equation of Hyperbola :
2 2
2 2
1
x y
a b
=
1
AA
= 2a = length of transverse axis CA' = CA = a
1
BB = 2b = length of conjugate axis
SS
1
= 2ae = distance between the foci CS = CS' = ae
ZZ
1
= 2a e = distance between the directrices CZ = CZ' = a e
S(ae,0)

(a,0)
A
1
A
C
Z
1
a
x
e
=
a
x
e
=
Z

(a,0)
M
P
S
1
(ae,0)
Equation
2 2
2 2
1
x y
a b
+ =
2 2
2 2
1
x y
b a
+ =
Type x be the major axis (y = 0) y be the major axis (x = 0)
Centre (0, 0) (0, 0)
Vertices ( , 0) a (0, ) a
Foci ( , 0) ae (0, ) ae
Eqn. of directrices
a
x
e
=
a
y
e
=
LLR
2
2
b
a
2
2
b
a
Equation
2 2
2 2
1
x y
a b
=
Centre (0, 0)
Transverse axis x axis
Conjugate axis y axis
Vertices ( , 0) a
Foci ( , 0) ae
Directrices
a
x
e
=
LLR
2
2
b
a
b
2
= a
2
(e
2
1) e =
2
2
1
b
a
+
SP S'P = 2a (length of transverse axis)
Analytical Geometry
8
6. Asymptote : A straight line touches the curve at infinity.
i. Combined equation of asymptote
2 2
2 2
0
x y
a b
=
ii. It is always passes through centre C (0, 0)
iii. Slopes are
b
a
and
b
a
iv. angle between the asymptotes ( )

1
2tan
b
a
u =
v. Combined equation of asymptotes differs that of the hyperbola by a constant only.
7. Rectangular Hyperbola
1. asymptotes are at rt. angle
2. st andar d equati on xy = c
2
where c
2
=
2
2
a
3. eccentricity
2 e =
1. The eccentricity of a parabola is
a) 1 b) 0 c) 2 d) 1
2. The eccentricity of a conic is
1
2
. The conic is
a) a parabola b) an ellipse c) a circle d) a hyperbola
3. Eccentricity of the rectangular hyperbola is
a) 2 b)
1
2
c)
2
d)
1
2
4. Eccentricity of the hyperbola
2 2
1
4 5
x y
= is
a)
3
2
b)
9
4
c)
5
4
d) 4
5. Latus rectum of y
2
= 4ax is
a) 2a b) 3a c) 4a d) a
6. Latus rectum of an ellipse
2 2
2 2
1
x y
a b
+ =
(a > b) is
a)
2
2a
b
b)
2
2
a
b
c)
2
2b
a
d)
2
2
b
a
7. The length of the latus rectum of 3x
2
+ 8y = 0, is
a)
8
3
b)
2
3
c) 8 d)
3
8
8. The length of the latus rectum of 4x
2
+ 9y
2
= 36 is
a)
4
3
b)
8
3
c)
4
9
d)
8
9
+2 Business Maths
9
9. Focus of y
2
= 4ax is
a) (a, 0) b) (0, a) c) (0, a) d) (a, 0)
10. Focus of y
2
= 16x is
a) (2, 0) b) (4, 0) c) (8, 0) d) (2, 4)
11. The sum of focal distances of any point on the ellipse is equal to length of its
a) minor axis b) semi minor axis
c) major axis d) semi major axis
12. The difference between the focal distances of any point on the hyperbola is equal to length of its
a) transverse axis b) semi transverse axis
c) conjugate axis d) semi conjugate axis
13. Equation of the directrix of x
2
= 4ay is
a) x + a = 0 b) x a = 0 c) y + a = 0 d) y a = 0
14. Equation of the directrix of y
2
= 8x is
a) x + 2 = 0 b) x 2 = 0 c) y + 2 = 0 d) y 2 = 0
15.
2 2
2 2
1
x y
a b
+ =
represents an ellipse (a > b) if
a) b
2
= a
2
(1 e
2
) b) b
2
= a
2
(1 e
2
) c) b
2
=
2
2
1
a
e
d) b
2
=
2
2
1 e
a
16. The semi major and semi minor axes of

2 2
1
16 25
x y
+ = is
a) (4, 5) b) (8, 10) c) (5, 4) d) (10, 8)
17. In an ellipse
3
5
e =
, the length of semi minor axis is 2. The length of major axis is
a) 4 b) 5 c) 8 d) 10
18. The parabola x
2
+ 16y = 0 is completely
a) above x - axis b) below x - axis c) left of y - axis d) right of y - axis
19. Asymptotes of a hyperbola pass through
a) one of the foci b) one of the vertices
c) the centre of the hyperbola d) one end of its latus rectum
20. If a is the length of the semi transverse axis of rectangular hyperbola xy = c
2
then the value of
c
2
is
a) a
2
b) 2a
2
c)
2
2
a
d)
2
4
a
Answers :
1. (a) 2. (b) 3. (c) 4. (a) 5. (c) 6. (c) 7. (a) 8. (b)
9. (d) 10. (b) 11. (c) 12. (a) 13. (c) 14. (b) 15. (a) 16. (c)
17. (b) 18. (b) 19. (c) 20. (c)
.
Analytical Geometry
10
APPLICATION OF DIFFERENTIATION - I
3
-
1. Cost Function = Variable cost + Fixed cost
i. C(x) = f(x) + k
ii. Average cost = AC =
( ) C x
x
=
( ) f x k
x
+
iii. Average variable cost AVC =
( ) f x
x
iv. Average fixed cost AFC =
k
x
v. Marginal cost MC = ( ) ( )
d
C x
dx
= C'(x)
vi. Marginal Average Cost = MAC = ( )
d
AC
dx
2. Revenue Function : R(x)
i. R(x) = p x (p = demand function; x = number of units)
ii. Average Revenue = AR =
R
x
=
px
x
= p
iii. Marginal Revenue = MR =
dR
dx
= R'(x)
3. Profit Function : P(x) = R(x) C(x)
4. Elasticity :
Let y = f(x)
x dy
y dx
q =
Step 1 : Given y
Step 2 : find
dy
dx
Step 3 : find q
5. Elasticity demand :
Let q = f( | )
d
p dq
q dp
q =
Step 1 : Given q
Step 2 : find
dq
dp
Step 3 : find
d
q
6. Elasticity supply x = f(p)
s
p dx
x dp
q =
+2 Business Maths
11
7. Equlibrium quantity quantity of demand = quantity of supply
8.
q =
d
AR
AR MR
Marginal Revenue MR =
1
1
d
p
| |
|
| q
\ .
(or) MR =
1
1
d
AR
| |
|
| q
\ .
9. Derivate as a rate of change
i. Average rate of change of y wrt x
0 0
( ) ( ) f x x f x y
x x
+ A A
=
A A
ii. instantaneous rate of change of
dy
y
dx
=
iii. rate of change of radius wrt t =
dr
dt
iv. rate of change of volume wrt t =
dV
dt
10. Slope of tangent
1 1
tan ( , )
dy
m x y
dx

i.
0
dy
dx
=
tangent parallel to x axis
ii.
dy
dx
=
tangent parallel to y axis
11. Equation of tangent and normal
Step 1 y = f(x)
Step 2 Point on the curve (x
1
, y
1
)
Step 2 Find
dy
dx
Step 3 Slope of tangent
1 1
( , )
dy
m x y
dx
=
Step 4 Slope of normal =
1
m
Equation of tangent at (x
1
, y
1
) y y
1
= m (x x
1
)
Equation of tangent at (x
1
, y
1
) y y
1
=
1
1
( ) x x
m

12. Angl e bet ween t he cur ves y = f(x), y = g(x)
1 2
1 2
tan
1
m m
m m
u =
+
i. m
1
= m
2
the tangents are parallel
ii. m
1
m
2
= 1 the tangents are perpendicular
Application of Differentiation - I
12
1. The average fixed cost of the function C = 2x
3
3x
2
+ 4x + 8 is
a)
2
x
b)
4
x
c)
3
x
d)
8
x
2. If 60 units of some product cost `1400 and 40 units cost `1200 to manufacture, then the variable
cost per unit is
a) `100 b) `2600 c) `10 d) `5
3. If 20 units of some product cost `2500 and 50 units cost `3400 to produce, the linear cost function is
a) y = 30x + 1900 b) y = 20x + 5900 c) y = 50x + 3400 d) y = 10x + 900
4. Variable cost per unit is `40, fixed cost is `900 and unit selling price is `70. Then the profit
equation is
a) P = 30x 900 b) P = 15x 70 c) P = 40x 900 d) P = 70x + 3600
5. For the cost function
2
1
10
x
c e =
, the marginal cost is
a)
1
10
b)
2
1
5
x
e
c)
2
1
10
x
e
d)
1
10
x
e
6. Given the demand equation p = x + 10; (0
s
x
s
10) where p denotes the unit selling price and x
denotes the number of units demanded of some product. Then the marginal revenue at x = 3 units is
a) `5 b) `10 c) `4 d) `30
7. The demand for some commodity is given by q = 3p + 15 (0 < p < 5) where p is the unit price. The
elasticity of demand is
a)
2
9 15 p
p
+
b)
9 45 p
p
c)
15 9 p
p
d)
5
p
p
+
8. For the function y = 3x + 2 the average rate of change of y when x increases from 1.5 to 1.6 is
a) 1 b) 0.5 c) 0.6 d) 3
9. If y = 2x
2
+ 3x, the instantaneous rate of change of y at x = 4 is
a) 16 b) 19 c) 30 d) 4
10. If the rate of change of y with respect to x is 6 and x is changing at 4 units / sec, then the rate of
change of y per sec is
a) 24 units / sec b) 10 units / sec c) 2 units / sec d) 22 units / sec
11. The weekly profit P, in ruees of a corporation is determined by the number x of shirts produced per
week according to the formula P = 2000x 0.03x
2
1000. Find the rate at which the profit is
changing when the production level x is 1000 shirts per week.
a) `140 b) `2000 c) `1500 d) `1940
12. The bottom of a rectangular swimming tank is 25m by 40m. Water is pumped into the tank at the
rate of 500m
3
/ min. Find the rate at which the level of the water in the tank is rising?
a) 0.5 m/min b) 0.2 m/min c) 0.05 m/min d) 0.1 m/min
13. The slope of the tangent at (2, 8) on the curve y = x
3
is
a) 3 b) 12 c) 6 d) 8
14. The slope of the normal to the curve 5 + = x y at (9, 4) is
a)
2
3
b)
2
3
c)
3
2
d)
3
2
+2 Business Maths
13
15. For the curve y = 1 + ax x
2
the tangent at (1, 2) is parallel to x-axis. The value of a is
a) 2 b) 2 c) 1 d) 1
16. The slope of the tangent to the curve y = cos t, x = sin t at
4
t
= t is
a) 1 b) 0 c)
1
2
d) 1
17. The point at which the tangent to the curve y
2
= x makes an angle
4
t
with the x-axis.
a)
1 1
,
2 4
| |
|
\ .
b)
1 1
,
2 2
| |
|
\ .
c)
1 1
,
4 2
| |
|
\ .
d) (+1,1)
18. The tangent to the curve y = 2x
2
x + 1 at (1, 2) is parallel to the line
a) y = 3x b) y = 2x + 4 c) 2x + y + 7 = 0 d) y = 5x 7
19. The slope of the tangent to the curve y = x
2
logx at x = 2 is
a)
7
2
b)
2
7
c)
7
2
d)
2
7
20. The slope of the curve x = y

2
6y at the point where it crosses the y axis is
a) 6 b) 6 c)
1
6
d)
1
16
Answers :
1. (d) 2. (c) 3. (a) 4. (a) 5. (b) 6. (c) 7. (d) 8. (d)
9. (b) 10. (a) 11. (d) 12. (a) 13. (b) 14. (a) 15. (b) 16. (d)
17. (c) 18. (a) 19. (a) 20. (c)
.
Application of Differentiation - II
14
APPLICATION OF DIFFERENTIATION - II
4
-
1. Increasing and decreasing function
Let f be a continuous function [a, b]
i. f'(x) > 0 f is strictly increasing
ii. f'(x) < 0 f is strictly decreasing
iii. f'(x) = 0 f is constant function
iv. f'(x)
>
0 f is increasing
v. f'(x)
s
0 f is decreasing
2. To find increasing / decreasing interval
Step 1. Given y = f(x)
2. find
dy
dx
(or) f '(x)
3.
dy
dx
= 0 (or) f '(x) = 0 x = x
1
, x
2
are stationary pts or critical pts.
4. Draw number line
Cost (or) revenue function
5. Intervals are ( , x
1
) (x
1
, x
2
) (x
2
, )
6. Identify f'(x) > 0 (or) f'(x)
s
0 intervals
increasing decreasing
3. Maxima and Minima
2. find
dy
dx
3.
dy
dx
= 0 x = x
1
, x
2
are critical nos.
4. Find
2
2
d y
dx
6.
2
2
1
( ) =
d y
x x
dx
> 0 function is min at x = x
1
6.
2
2
1
( ) =
d y
x x
dx
< 0 function is max at x = x
1
4. Concavity on Convexity
2. Find
2
2
d y
dx
3.
2
2
d y
dx
= 0 x = x
1
, x
2
4.

0

x
1
x
2

+2 Business Maths
15
5. Intervals (
, x
1
), (x
1
, x
2
), (x
2
,
)
6. If
2
2
0 >
d y
dx
Concave upward
7. If
2
2
0 <
d y
dx
Convex upward
8. x = x
1
and x
2
are point of inflexion
5. Condition for point of inflexion
1. Given y = f(x)
2. f''(x) = 0 x = x
1
, x
2
3. f'''(x
1
)
=
0 x = x
1
have a point of inflexion
4. (or) where the second derivative change from + to
(or) to + are called point of inflexion
Quality Control
C
1
= Holding cost (or) storage cost (or) carrying cost
C
2
= Shortage cost
C
3
= Set up (or) ordering cost (or) procurement cost
i. Economic order quantity =
3
0
1
2
=
RC
q
C
ii. Optimum number of order =
1
0
3
2
=
RC
n
C
iii.Optimum number of order =
3
0
1
2
=
C
t
RC
iv. Minimum Average cost
1 3
0
2 = C RC C
v. At EOQ Carrying cost = Ordering cost
Carrying cost =
0
1
2

q
C Ordering Cost =
3
0

R
C
q
6. Partial Derivatives
Let u = f(x, y)
1.
c
c
f
x
2.
c
c
f
y
3.
2
c c c | |
=
|
c c c c
\ .
f f
x y x y
4.
2
2
c c c | |
=
|
c c
\ . c
f f
x x
x
5.
2
2
c c c | |
=
|
c c
c \ .
f f
y y
y
7. Eulers theorem on Homogeneous function
Let f be a homogeneous function in x and y of degree n.
c c
+ =
c c
f f
x y nf
x y
.
8. Partial Elasticities of Demand :
q
1
= f (p
1
p
2
)
1 1 1
1 1 1
c
=
c
Eq p q
Ep q p
1 2 1
2 1 2
c
=
c
Eq p q
Ep q p
16
Step 1 q
1
=
Step 2 Fi nd
1 2
1 2
,
q q
p p
c c
c c
Step 3 Substitute in formulae
1. The stationary value of x for f(x) = 3(x1) (x2) is
a) 3 b)
3
2
c)
2
3
d)
3
2
2. The maximum value of f(x) = cos x is

a) 0 b)
3
2
c)
1
2
d) 1
3. y = x
3
is always
a) an increasing function of x b) decreasing function of x
c) a constant function d) none of these
4. The curve y = 4 2x x
2
is
a) concave upward b) concave downward
c) straight line d) none of these
5. If
2 2
+
=
x y
u e , then
c
c
u
x
is equal to
a) y
2
u b) x
2
u c) 2xu d) 2yu
6. I f u = log (e
x
+ e
y
) then
c c
+
c c
u u
x y
is equal to
a)
1
+
x y
e e
b)
+
x
x y
e
e e
c) 1 d) e
x
+ e
y
7. If u = x
y
(x > 0) then
c
c
u
y
is equal to
a) x
y
logx b) logx c) y
x
logx d) logy
x
8. f(x, y) =
1 1
2 2
1 1
3 3
+
+
x y
x y
is a homogeneous function of degree
a)
1
2
b)
1
3
c)
1
6
d)
1
5
9. I f f(x, y) = 2x + ye
x
, then f
y
(1, 0) is equal to
a) e b)
1
e
c) e
2
d)
2
1
e
10. If f(x, y) = x
3
+ y
3
+ 3xy then f
xy
is
a) 6x b) 6y c) 2 d) 3
+2 Business Maths
17
11. If marginal revenue is Rs. 25 and the elasticity of demand with respect to price is 2, then average
revenue is
a) `50 b) `25 c) `27 d) `12.50
12. The elasticity of demand when marginal revenue is zero, is
a) 1 b) 2 c) 5 d) 0
13. The marginal revenue is `40 and the average revenue is `60. The elasticity of demand with respect
to price is
a) 1 b) 0 c) 2 d) 3
14. If u = x
2
4xy + y
2
then
2
2
c
c
u
y
is
a) 2 b) 2xy c) 2x
2
y d) 2xy
2
15. If z = x
3
+ 3xy
2
+ y
3
then the marginal productivity of x is
a) x
2
+ y
2
b) 6xy + 3y
2
c) 3(x
2
+ y
2
) d) (x
2
+ y
2
)
16. If q
1
= 2000 + 8p
1
p
2
then
1
1
c
c
q
p
is
a) 8 b) 1 c) 2000 d) 0
17. The marginal productivity of labour (L) for the production function P = 15K L
2
+ 2KL when L =
3 and K = 4 is
a) 21 b) 12 c) 2 d) 3
18. The production function for a firm is P = 3L
2
5KL + 2K
2
. The marginal productivity of capital (K)
when L = 2 and K = 3 is
a) 5 b) 3 c) 6 d) 2
19. The cost function y = 40 4x + x
2
is minimum when x
a) x = 2 b) x = 2 c) x = 4 d) x = 4
20. If R = 5000 units/year C
1
= 20 paise, C
3
= `20 then EOQ is
a) 1000 b) 5000 c) 200 d) 100
Answers :
1. (b) 2. (d) 3. (a) 4. (b) 5. (c) 6. (c) 7. (a) 8. (c)
9. (b) 10. (d) 11. (a) 12. (a) 13. (d) 14. (a) 15. (c) 16. (a)
17. (c) 18. (d) 19. (a) 20. (a)
.
18
1. Let f be a continuous defined on the closed interval [a, b]. F be an antiderivative of f.
( ) ( ) ( ) =
}
b
a
f x dx F b F a
2. Properties of definite integrals.
i.
( ) ( ) =
} }
b a
a b
f x dx f x dx
ii.
( ) ( ) ( ) = +
} } }
b c b
a a c
f x dx f x dx f x dx
iii.
( ) ( ) = +
} }
b b
a a
f x dx f a b x dx
iv.
0 0
( ) ( ) =
} }
a a
f x dx f a x dx
v.
0
( ) 2 ( )
=
} }
a a
a
f x dx f x dx
f(x) is an even function
( ) 0
=
}
a
a
f x dx
if f(x) is an odd function
f(x) = f(x) is an even function
f(x) = f(x) is an odd function
APPLICATION OF INTEGRATION
5
-
Area
y = f(x) x = g(y)
ordinates
x = a, x = b
abcissa
y = c, y = d
( ) =
} }
b b
a a
ydx f x dx
( ) =
} }
d d
c c
xdy g y dy
Cost Function ( ) = +
}
C MC dx K
Revenue function ( ) = +
}
R MR dx K
3. Consumer Surplus demand curve p = f(x)
0
0 0
0
( ) =
}
x
CS f x dx x p
+2 Business Maths
19
4. Producer surplus: p = g(x)
0
0 0
0
( )
x
PS p x g x dx =
}
At equilibrium demand curve = supply curve
5. Integration Formulae
1. = +
}
Kdx Kx c
2.
1
1
+
= +
+
}
n
n
x
x dx c
n
3. = +
}
ax
ax
e
e dx c
a
4.
1
log = +
}
dx x c
x
5.
1
2 2
1
sin
}
x
dx
a
a x
6. ( )
1
2 2
1 1
tan
x
dx c
a
a
a x

=
+
}
7.
2
1 1
= +
}
dx c
x
x
8.
( )
2
2 2 2 2 1
sin
2 2
x a
x
a x dx a x c
a
= + +
}
9. cos sin = +
}
xdx x c
10. sin cos = +
}
xdx x c
11. tan logsec = +
}
xdx x c
12. cot logsin = +
}
xdx x c
13.
2
sec tan = +
}
xdx x c
1. If f(x) is an odd function then
( )
}
a
a
f x dx
is
a) 1 b) 2a c) 0 d) a
2. If f(x) is an even function then
( )
}
a
a
f x dx
is
a)
0
2 ( )
}
a
f x dx
b)
0
( )
}
a
f x dx
c) 2a d) 2a
Application of Integration
20
3.
3
3
}
xdx
is
a) 0 b) 2 c) 1 d) 1
4.
2
4
2
}
x dx
is
a)
32
5
b)
64
5
c)
16
5
d)
8
5
5.
2
2
sin
t
t
}
xdx is
a) 0 b) 1 c) 1 d)
2
t
6.
2
2
cos
t
t
}
xdx is
a) 2 b) 2 c) 1 d) 1
7. The area under the curve y = f(x), the x-axis and the ordinates at x = a and x = b is
a) }
b
a
ydx
b) }
b
a
ydy
c) }
b
a
x dy
d) }
b
a
x dx
8. The area under the curve x = g(y), the y-axis and the lines y = c and y = d is
a) }
d
c
ydy
b) }
d
c
x dy
c) }
d
c
ydx
d) }
d
c
x dx
9. The area bounded by the curve y = e
x
, the x-axis and the lines x = 0 and x = 2 is
a) e
2
1 b) e
2
+ 1 c) e
2
d) e
2
2
10. The area bounded by y = x, y-axis and y = 1 is
a) 1 b)
1
2
c) log 2 d) 2
11. The area of the region bounded by y = x + 1 the x-axis and the lines x = 0 and x = 1 is
a)
1
2
b) 2 c)
3
2
d) 1
12. The area bounded by the demand curve xy = 1, the x-axis, x = 1 and x = 2 is
a) log 2 b)
1
log
2
c) 2 log2 d)
1
log 2
2
13. If the marginal cost function MC = 3e
3x
, then the cost function is
a)
3
3
x
e
b) e
3x
+k c) 9e
3x
d) 3e
3x
+2 Business Maths
21
14. I f the margi nal cost functi on MC = 2 4x, then then cost function is
a) 2x 2x
2
+ k b) 2 4x
2
c)
2
4
x
d) 2x 4x
2
15. The marginal revenue of a firm is MR = 15 8x. Then the revenue function is
a) 15x 4x
2
+ k b)
15
8
x
c) 8 d) 15x 8
16. The marginal revenue R'(x) =
1
1 + x
then the revenue function is
a) log 1 + + x k b)
1
( 1)
+ x
c)
2
1
( 1) + x
d)
1
log
1 + x
17. The consumers surplus for the demand function p = f(x) for the quantity x
0
and price p
0
is
a)
0
0 0
0
( )
}
x
f x dx p x
b)
0
0
( )
}
x
f x dx
c)
0
0 0
0
( )
}
x
p x f x dx
d)
0
0
( )
}
p
f x dx
18. The producers surplus for the supply function p = g(x) for the quantity x
0
and price p
0
is
a)
0
0 0
0
( )
}
x
g x dx p x
b)
0
0 0
0
( )
}
x
p x g x dx
c)
0
0
( )
}
x
g x dx
d)
0
0
( )
}
p
g x dx
Answers :
1. (c) 2. (a) 3. (a) 4. (b) 5. (a) 6. (a) 7. (a) 8. (b)
9. (a) 10. (b) 11. (c) 12. (a) 13. (b) 14. (a) 15. (a) 16. (a)
17. (a) 18. (b)
.
Differential Equation
22
DIFFERENTIAL EQUATION
6
-
1. Order : Highest ordered derivative (DE has been made free from radicals)
2. Degree : degree of highest ordered derivative
3. Formation of differential equation
Derived equation free from parameter
one constant - using
dy
dx
f (x, y, y
'
)
two constant - using
dy
dx
,
2
2
d y
dx
f (x, y, y', y
''
)
4. Variable seperable method
1. f(x)dy + g(y)dx = 0
f(x) is a function of x only
g(y) is a function of y only
2. f(x)dy = g(y)dx
3.
( ) ( )
dy dx
g y f x
=
seperating the variable
4. Integrating
Note :
dy
dx
= f(x) dy = f(x)dx
i)
dy
dx
= g(y)
( )
dy
g y
= dx
5. Homogeneous Differential equation
Step 1. General form
( , )
( , )
dy f x y
dy g x y
=
where f(x, y) and g(x, y) are homogeneous function.
Step 2. put y = vx of same degree x, y
Step 3.
dy dv
v x
dx dx
= +
Step 4.
( )
( )
dv f v
v x
dx g v
+ =
Step 5.
( )
( )
dv f v
x v
dx g v
=

( )
dv
x F v
dx
=

( )
dv dx
F v x
=
Step 6. Seperating v and x
Step 7. Integrating
Step 8. Put
y
v
x
=
6. First order Linear Differential Equations
Step 1. General form
dy
py Q
dx
+ =
+2 Business Maths
23
where P and Q - functions of x
Step 2. Find integrating factor =
pdx
e
}
Note :
log log
1
;
x x
e x e
x
= =
General Solution :
pdx pdx
ye Qe dx c
} }
= +
}
(or) ( ) ( ) y IF Q IF dx c = +
}
Note : i)
0
dy
py
dx
+ =
y(IF) = c
ii)
dx
px Q
dy
+ =
pdy
IF e
}
=
x(IF) = ( ) Q IF dy c +
}
7. Second order linear differential equations
I. General form
2
2
0
d y dy
a b cy
dx
dx
+ + =
Step 1. (aD
2
+ bD + c)y = 0
auxilar equation am
2
+ bm + c = 0
The roots are m
1
and m
2
Nature of roots Complementary function
1. m
1

=
m
2
1 2
m x m x
CF Ae Be = +
2. m
1
= m
2
= m
( )
mx
CF Ax B e = +
3. i o | ( cos sin )
x
CF e A x B x
o
= | + |
y = CF
II. General Form :
2
2
x
d y dy
a b cy e
dx
dx

+ + =
Step 1. (aD
2
+ bD + c)y =
x
e
o
Step 2. Auxilary equation am
2
+ bm + c = 0
Step 3. Find complementary function
Step 4. Particular integral
f(D) = aD
2
+ bD + c
Case (1) if ( ) 0 f =
PI =
1
( )
x
e
f D

=
1
( )
x
e
f

Case (2) if ( ) 0 f =
PI =
2
1
( )( )
x
e
a D D m

=
2
( )
x
x
e
a m

1
x
D
=

24
Case (3) if ( ) 0 f =
PI =
2
1
( )
x
e
a D

=
2
2!
x
x
e
a

y = CF + PI
1. The differential equation of straight lines passing through the origin is
a)
dy
x y
dx
=
b)
dy x
dx y
=
c)
0
dy
dx
=
d)
1 dy
x
dx y
=
2. The degree and order of the differential equation
2
2
6 0
d y dy
dx
dx
=
are
a) 2 and 1 b) 1 and 2 c) 2 and 2 d) 1 and 1
3. The order and degree of the differential equation
2
3 2
3 2
3 7 log
dy d y d y dy
x x
dx dx
dx dx
| |
+ + = +
|
\ .
are
4. The order and degree of
2
2
2 3
2
1
dy d y
dx
dx
(
| |
( + =
|
( \ .

are
5. The solution of xdy + ydx = 0 is
a) x + y = c b) x
2
+ y
2
= c c) xy = c d) y = cx
6. The solution of xdx + ydy = 0 is
a) x
2
+ y
2
= c b)
x
c
y
=
c) x
2
y
2
= c d) xy = c
7. The solution of
x y
dy
e
dx

=
is
a) e
y
e
x
= c b) y = log ce
x
c) y = log(e
x
+ c) d) e
x+y
= c
8. The solution of
t
dp
ke
dt

=
(k is a constant) is
a)
t
k
c p
e
=
b) p = ke
t
+ c c)
log
c p
t
k
=
d) t = log
c
p
9. In the differential equation (x
2
y
2
) dy = 2xy dx, if we make the substitutions y = vx then the
equation is transformed into
a)
2
3
1 v dx
dv
x
v v
+
=
+
b)
( )
2
2
1
1
v dx
dv
x
v v
=
+
c)
2
1
dv dx
x
v
=
d)
2
1
dv dx
x
v
=
+
+2 Business Maths
25
10. When y = vx the differential equation
2 2
dy
x y x y
dx
= + +
reduces to
a)
2
1
dv dx
x
v
=
b)
2
1
vdv dx
x
v
=
+
c)
2
1
dv dx
x
v
=
+
d)
2
1
vdv dx
x
v
=
11. The solution of the equation of the type

0
dy
Py
dx
+ =
(P is a function of x) is given by
a)
pdx
ye c
}
=
b) y Pdx c =
}
c)
pdx
xe y
}
=
d) y = cx
12. The solution of the equation of the type
dx
Px Q
dy
+ =
(P and Q are functions of y) is
a)
pdx
y Qe dy c
}
= +
}
b)
pdx pdx
ye Qe dx c
} }
= +
}
c)
pdy pdy
xe Qe dy c
} }
= +
}
d)
pdy pdx
xe Qe dx c
} }
= +
}
13. The integrating factor of
x
dy
x y e
dx
=
is
a) log x b)
1
x
e
c)
1
x
d)
1
x

2 2 3
(1 ) (1 )
dy
x xy x
dx
+ + = +
is
a)
2
1 x +
b) log (1 + x
2
) c) etan
1
x d) log(tan
1
x)
3
2 dy y
x
dx x
+ =
is
a) 2 log x b)
2
x
e c) 3 log(x
2
) d) x
2
16. The complementary function of the differential equation (D
2
D) y = e
x
is
a) A

+ Be
x
b) (Ax + B)e
x
c) A

+ Be
x
d) (A+Bx)e
x
17. The complementary function of the differential equation (D
2
2D + 1) y = e
2x
is
a) Ae
x
+ Be
x
b) A + Be
x
c) (Ax + B)e
x
d) A+Be
x
18. The particular integral of the differential equation
2
5
2
5 6
x
d y dy
y e
dx
dx
+ =
is
a)
5
6
x
e
b)
5
2!
x
xe
c) 6e
5x
d)
5
25
x
e
19. The particular integral of the differential equation
2
3
2
6 9
x
d y dy
y e
dx
dx
+ =
is
a)
3
2!
x
e
b)
2 3
2!
x
x e
c)
3
2!
x
xe
d) 9e
3x
26
20. The solution of
2
2
0
d y
y
dx
=
is
a) (A + B)e
x
b) (Ax + B)e
x
c)
x
x
B
Ae
e
+
d) (A + Bx)e
x
21. The order of the differential equation to be found is equal to the
a) number of constants b) number of terms
c) number of parameters d) number of variables
22. When y is absent, the general form of first order lenear differential has its solution in the form
a) ( ) y f x dx C = +
}
b) ) x fy dy C = +
}
c) ( ) x f x dx C = +
}
d) ( ) y f y dy C = +
}
23. e
logf(x)
= f(x) is true, when
a) f(x) = 0 only b) f(x) = 0 only c) f(x) > 0 only d) f(x)
=
0 only
24. Sol uti on of (D
2
+1)y = 0 is
a) y = (Ax +B)e
x
b) y = Acosx + Bsinx c) x = (Ay +B)e
y
d)
x
x
B
y Ae
e
= +
25. The complementary function of a Differential equation is B + Ae
x
. Then the Auxiliary equation is
a) m
2
+ m = 0 b) m
2
m = 0 c) m
2
+ 2m + 1 = 0 d) m
2
2m + 1 = 0
Answers :
1. (a) 2. (c) 3. (a) 4. (b) 5. (c) 6. (a) 7. (c) 8. (a)
9. (b) 10. (c) 11. (a) 12. (c) 13. (c) 14. (a) 15. (d) 16. (a)
17. (c) 18. (a) 19. (b) 20. (c) 21. (a) 22. (a) 23. (c) 24. (b)
25. (a)
+2 Business Maths
27
INTERPOLATION AND FITTING A STRAIGHT LINE
7
-
1. Two methods : Graphical and algebric
2. Interpolation :
1. The value of function may be either increase or decrease
2. The rise or fall in the uniform
3. Algebric Methods of interpolation
i) Finite difference
ii) Geogorys Newtons Formulae
iii) Lagranges Formulae
4. Forward differences operator
( ) ( ) ( ) f x f x h f x A = +
0 0 0 0 1 0
( ) ( ) ( ) y f x f x h f x y y A = A = + =
5. Backward difference operator
( ) ( ) ( ) f x f x f x h V =
1 n n n
y y y

V =
6. Shifting operators
E f(x) = f(x +h)
1 E A =
1 E = + A
7. Missing frequencies
1. No. of values of f(x) is given.
Example 5 values given.
2. Polynomial is of degree : 4
3. Fifth difference = 0
5
0
( ) 0 f x A =
5
0
0 y A =
(E
5
5 E
4
+ 10 E
3
10 E
2
+ 5E 1) y
0
= 0
8. Gregorys - Newton forward formulae
1. Prepare table
2 3
..... x y y y y A A A
2.
0
x x
u
h
=
3.
2 3
0 0 0 0
( 1) ( 1)( 2)
( ) .....
1! 2! 3!
u u u u u u
f x y y y y

= + A + A + A +
9. Gregorys Newtons backward formulae prepare table
Step 1:
2 3
..... x y y y y V V V
Step 2:
n
x x
u
h
=
1
1 2 1
1 3 3 1
1 5 10 5 1
1 1
1 4 6 4 1
10
Interpolation and Fitting a Straight Line
28
Step 3:
2 3
( 1) ( 1)( 2)
.....
1! 2! 3!
n n n n
u u u u u u
y y y y y
+ + +
= + V + V + V +
10. The Lagranges Formulae
1 2 0 2
0 1
0 1 0 2 0 1 0 1 2 1
( )( ).....( ) ( )( ).....( )
( )
( )( ).....( ) ( )( ).....( )
n n
n n
x x x x x x x x x x x x
f x y y
x x x x x x x x x x x x

= +

+ ....... +
0 1 1
0 1 1
( )( ).....( )
( )( ).....( )
n
n
n n n n
x x x x x x
y
x x x x x x

11. Fitting a straight line
1. The line of best fit y = ax + b
The normal equations a x nb y + =
2
a x b x xy + =
2. Short cut method : n is even n is odd

2( ) x midvalue
u
Int
=

x midvalue
u
Int
=
v = y assumed value
line of best fit v = au + b
normal equations
a u nb v + =
2
a u b u uv + =
Line of best fit :
Step 1: Prepare table
2
x y x x
Step 2: Find
2
n x xy x
Step 3: Substitute in normal equation find a and b
Step 4: line of best fit y = ax + b
1. ( ) f x A =
a) f(x + h) b) f(x) f(x + h) c) f(x + h) f(x) d) f(x) f(x h)
2. E
2
f(x)
a) f(x + h) b) f(x + 2h) c) f(2h) d) f(2x)
3. E =
a)
1+ A
b)
1 A
c)
1 V +
d)
1 V
4. ( 3 ) f x h V + =
a) f(x + 2h) b) f(x + 3h) f(x + 2h)
c) f(x + 3h) d) f(x + 2h) f(x 3h)
5. When h = 1,
2
( ) x A =
a) 2x b) 2x 1 c) 2x + 1 d) 1
6. The normal equations for estimating a and b so that the line y = ax + b may be the line of best fit
are
a)
2
and
i i i i i i
a x b x x y a x nb y + = + =
+2 Business Maths
29
b)
2 2
and
i i i i i i
a x b x x y a x nb y + = + =
c)
2
and
i i i i i i
a x nb x y a x b x y + = + =
d)
2 2
and
i i i i i i
a x nb x y a x b x y + = + =
7. In a line of best y = 5.8 (x 1994) + 41.6 the value of y when x = 1997 is
a) 50 b) 54 c) 59 d) 60
8. Five data relating to x and y are to be fit in a straight line. It is found that
x
= 0 and y =
15. Then the y-intercept of the line of best fit is,
a) 1 b) 2 c) 3 d) 4
9. The normal equations of fitting a straight line y = ax + b are 10a + 5b = 15 and 30a + 10b = 43.
The slope of the line of best fit is
a) 1.2 b) 1.3 c) 13 d) 12
10. The normal equations obtained in fitting a straight line y = ax + b by the method of least squares
over n points (x, y) are 4 = 4a + b and 120 24 xy a b = + . Then n =
a) 30 b) 5 c) 6 d) 4
Answers :
1. (a) 2. (b) 3. (a) 4. (b) 5. (c) 6. (a) 7. (c) 8. (c)
9. (b) 10. (c)
Interpolation and Fitting a Straight Line

30
PROBABILITY DISTRIBUTION
8
-
1. Random Variable - real valued function on the sample space
Discrete random variable Continuous random variable
1. Only finite or countable number of value all possible values between the certain limits
2. Probability mass function p(x) Probability density function f(x)
3. 0
s
p(x)
s
1 f(x)
>
0
4. F(x) = P(X
s
x) F(x) =
( )
x
f x dx
}
5. ( ) 1 P x =
( ) 1 f x dx
=
}
6. P(a < x
s
b) = F(b) F(a) P(a
s
x
s
b) = P(a
s
x < b)
= P(a < x
s
b) = P(a < x < b)
=
( )
b
a
f x dx
}
Note : ( ) ( ) 0 ( ) 1 ( ) ( )
d
F F f x F x
dx
= = =
2. Mathematical Expectation
Discrete Random Variable Continuous random variable
i) E(X) = ( )
i i
x p x
( ) xf x dx
}
E(X
2
) =
2
( )
i i
x p x
2
( ) x f x dx
}
ii) Mean = E(X) Variance =
2
2
( ) ( ) E X E X (

iii) Mean E(X) Variance V(X)
1. E(C) = C Var (C) = 0
2. E(aX) = aE(X) Var (aX) = a
2
Var X
3. E (aX + b) = aE(X) + b Var (aX + b) = a
2
VarX
Note : E(X + Y) = E(X) + E(Y) E(XY) = E(X) E(Y) (x and y are independents)
+2 Business Maths
31
3.
Binomial Poisson
1. repeated two alternatives rare event
2. parameter n, p

3. mean np np =
4. Variance npq

P(x) = nC
x
p
x
q
nx
P(x) =
!
x
e
x
x = 0, 1, 2, .... n x = 0, 1, 2, ....
mean > variance mean = variance
SD = npq SD =
p, q > 0

> 0
Note : P(atmost 2) = P(Xs 2)
P(atleast 2) = P(X
>
2)
P(exactly 2) = P(X = 2)
4. Normal distribution continuous Distribution
1. pdf
2
1
2
1
( )
2
x
f x e
| |
|
o
\ .
=
o t
- mean
SD o
Parameter N( , o
2
)
2. Standard Normal Distribution : N (0, 1)
= 0 o = 1
3. Binomial distribution tends to normal distribution
n neither p nor q is very small
5. Normal Probability Curve
1. bell shaped curve
2. mean = median = mode
3. x axis is an asymptote
4. It has unimodal curve
5. Point of inflexion x = o
6. Mean deviation about mean
2 4
5
o o
=
t
7. ( ) 0.6826 P x o < < + o =
( 2 2 ) 0.9544 P x o < < + o =
( 3 3 ) 0.9973 P x o < < + o =
8. Total area = 1
9. ( 0) (0 ) 0.5 P z P z < < = < < =
6. Standard Normal distribution
2
2
1
( )
2
Z
f z e
=
t
(Trial - Single Performance
Bernoulli Trial - only two out
comes)
Discrete Distributions
Probability Distribution
32
1. If a fair coin is tossed three times the probability function p(x) of the number of heads x is
a) b)
c) d) none of these
2. If a discrete random variable has the probability mass function as then
the value of k is
a)
1
11
b)
2
11
c)
3
11
d)
4
11
3. If the probability density function of a variable X is defined as f(x) = Cx (2 x), 0 < x < 2 then the
value of C is
a)
4
3
b)
6
4
c)
3
4
d)
3
5
4. The mean and variance of a binomial distribution are
a) np, npq b) pq, npq c) np, npq d) np, nq
5. If X N ( )
2
, o
, the standard Normal variate is distributed as
a) N (0, 0) b) b N (1, 0) c) N (0, 1) d) N (1, 1)
6. The normal distribution curve is
a) Bimodal b) Unimodal c) Skewed d) none of these
7. If X is a poission variate with P(X = 1) = P (X = 2), the mean of the Poisson variate is equal to
a) 1 b) 2 c) 2 d) 3
8. The standard deviation of a Poisson variate is 2, the mean of the poisson variate is
a) 2 b) 4 c)
2
d)
1
2
9. The random variables X and Y are independent if
a) E(X Y) = 1 b) E(X Y) = 0
c) E(X Y) = E(X) E(Y) d) E(X + Y) = E(X) + E(Y)
10. The mean and variance of a binomial distribution are 8 and 4 respectively. Then P(X = 1) is
equal to
a)
12
1
2
b)
4
1
2
c)
6
1
2
d)
10
1
2
11. If X N
2
( , ) o , the points of inflection of normal distribution curve are
a) b) o c) o d) 2 o
12. If X N
2
( , ) o , the maximum probability at the point of inflection of normal distribution is
x
p(x)
0
1
8
1
1
8
2
2
8
3
3
8
x
p(x)
0
1
8
1
3
8
2
3
8
3
1
8
x
p(x)
0
1
8
1
1
8
2
2
8
3
3
8
x
p(x)
0
k
1
2k
2
3k
3
5k
+2 Business Maths
33
a)
1
2
1
2
e
t
b)
1
2
1
2
e
t
c)
1
2 o t
d )
1
2t
13. If a random variable X has the following probability distribution then
the expected value of X is
a)
3
2
b)
1
6
c)
1
2
d)
1
3
14. If X ~ N (5, 1), the probability density function for the normal variate X is
a)
2
1 1
2 5
1
5 2
x
e
| |
|
\ .
t
b)
2
1 1
2 5
1
2
x
e
| |
|
\ .
t
c)
( )
2 1
5
2
1
2
x
e

t
d)
( )
2 1
5
2
1
x
e

t
15. If X ~ N (8, 64) the standard normal variate Z will be
a)
64
8
X
b)
8
64
X
c)
8
8
X
d)
8
8
X
16. If E(X) = 1 then E(5X 3) is
a) 2 b) 5 c) 8 d) 3
17 In a normal distribution mean 3 P o (

covers
a) 95.45% area of normal curve b) 68.27% area of normal curve
c) 99.73% area of normal curve d) 69.32% area of normal curve
X
p(x)
1
1
3
2
1
6
1
1
6
2
1
3
Answers :
1. (b) 2. (a) 3. (a) 4. (a) 5. (c) 6. (b) 7. (b) 8. (b)
9. (c) 10. (a) 11. (b) 12. (c) 13. (b) 14. (c) 15. (c) 16. (a)
17. (c)
Sampling Techniques and Statistical Inference

34
SAMPLING TECHNIQUES AND STATISTICAL INFERENCE
9
-
Sampling : Procedure of study about a part of population, sample toknow the population
Sample : Part of population
Parameter : Statistical constants of population
Statistics : Statistical constants of sample
Types of Sampling
Probabilitic sampling
or
Random sampling
Non-Probabilitic sampling
or
Non-Random sampling
Simple
Random
Sampling
Statified
Random
Sampling
Systamatic
Sampling
Cluster
Sampling
Convenience
Sampling
Expert
Sampling
Quota
Sampling
Errors
Sampling Error Non - sampling Error
Faculty
Selection
of sample
Substitution Faculty
demarcation
of sampling units
Errors due to
faculty
planning and
definitions
Response
errors
Errors
incoverage
Non
response
bias
+2 Business Maths
35
Estimation
1. Types of Estimator : Unbiased, consistent, efficient, sufficient, point estimate, interval estimate.
2. Confidence interval : Interval within which value of parameter lies.
Confidence interval for means
Population mean
o Population SD
X
Sample mean
S Sample SD
n Sample size
Confidence limit for
Popn size Sample size Confidence limit for
Infinite n
( )
C
S
X Z
n
Finite (N) n
( )
1
C
S N n
X Z
N
n

Level 95% 99%

Z
C
Value 1.96 2.58
Confidence intervals for proportions
p - proportion of success in a sample
n - sample size
P - proportion of success
Confidence interval for proportion
Popn size Sample size Confidence limit for
Infinite n ( )
C
pq
p Z
n
Finite (N) n ( )
1
C
pq N n
p Z
n N
Hypothesis Testing
1. Null hypothesis : There is no difference between the population parameter and sample
statistic.
2. Alternative hypothesis : Complement of Null hypothesis
3. Type I error : Rejecting a true
4. Type II error : Accepting a false
5. Critical region : Where H
0
is rejected
6. Acceptance region : Where H
0
is accepted
7. Level of Significance
Steps involved in testing of Hypothesis
1. Formulation of Null Hypothesis and Alternative hypothesis
0 0
: H = and
1 0
: H =
Sampling Techniques and Statistical Inference
36
2. Calculated
=
o/
X
Z
n
X
Sample mean, popn . mean
o popn. SD, n sample size
3. Set up suitable significance either 5% (Z
C
= 1.96) or 1% (Z
C
= 2.58)
4. Setting up the statistical test criteria
5. Setting up rejection region for the null hypothesis
for 5% Z
C
= 1.96 for 1% Z
C
= 2.58
Critical region >1.96 Z Critical region > 2.58 Z
Acceptance region <1.96 Z Acceptance region < 2.58 Z
Decision :
Critical legion : Null hypothesis rejected
Acceptance legion : Null hypothesis accepted
1. The standard error of sample mean is
a) Type I error
b) Type II error
c) Standard deviation of the sampling distribution of the mean
d) Variation of the sampling distribution of the mean
2. If a random sample size 64 is taken from a population whose standard deviation is equal to 32, then
standard error of the mean
a) 0.5 b) 2 c) 4 d) 32
3. The Z value that is used to establish 95% confidence interval for the estimation of a population
parameter is
a) 1.28 b) 1.65 c) 1.96 d) 2.58
4. Prob. of rejecting null hypothesis, when it is true is
a) Type I error b) Type II error c) Sampling error d) Standard error
5. Which of the following statement is true?
a) Point estimate gives range of values
b) Sampling is done only to estimate a static
c) Sampling is done to estimate the population to parameter
d) Sampling is not possible for an infinite population
6. The number of ways in which can select 2 customers out of 10 customers
a) 90 b) 60 c) 45 d) 50
Answers :
1. (c) 2. (c) 3. (c) 4. (a) 5. (b) 6. (c)
+2 Business Maths
37
APPLIED STATISTICS
10
-
LP Model
1. Decision variable that we seek to determine
2. Objective : optimize (maximize (or) minimize)
3. Constraints that we need to study.
Formulation of LP
Step 1 Study the given situation to find the key decision to made.
Step 2 Identify the variable involved and design them by symbols x
j
(j = 1, 2)
Step 3 Express the alternatives mathematically in term of variables, which generally are x
j

>
0 for
all j.
Step 4 Identify the constraints in the problem and express them as linear in equalities or equation
involving the decision variable.,
Step 5 Identify the objective function and express it as a linear function of the decision variables.
Graphical Method :
Step 1 State the problem mathematically
Step 2 Plot a graph representing all the constraints of the problem and identify the feasible legion.
The constraints of the problem and is restricted to the first quadrant only.
Step 3 Compute the co-ors of all the corner points of the feasible region.
Step 4 Find out the value of the objective function at each corner point determined in step 3.
Step 5 Select the corner point that optimize (maximizes or minimizes) the value of objective function.
It gives the optimum feasible solution.
O
x
2
x
1
Constraint 2
Constraint 1
Correlation and Regression
Correlation : The degree of relationship between two (or) more variable
Positive (change in same direction)
Types of correlation : negative (change in opposite direction)
zero (no change)
Coefficient of correlation
r (x, y) =
( ) ( )
( ) ( )

2 2
2 2
N XY X Y
N X X N Y Y
r (x, y) =
( ) ( )
( ) ( )

2 2
2 2
N dxdy dx dy
N dx dx N dy dy
Applied Statistics
38
r (x, y) =

2 2
xy
x y

=
=
x X X
y Y Y
Note : Correlation co-efficient lies between 1 and + 1
r = +1 perfectly positive correlated
r = 1 perfectly negative correlated
r = 0 uncorrelated
Procedure :
Step 1 Prepare table X Y X
2
Y
2
XY
Step 2 find
2 2
, , , , X Y X Y XY
Step 3 using formulae find r.
Regression :
A mathematical measure of the average relationship between two (or) more variable interms of the
original units of data.
Two regression lines
1. Regression line y on x :
= ( ) y y byx x x
byx =
( )( )
( )

2
2
n xy x y
n x x
2. Regression line x on y :
= ( ) x x bxy y y
bxy =
( )( )
( )

2
2
n xy x y
n y y
Step 1 Table X Y X
2
Y
2
XY
Step 2 find
2 2
, , , , X Y X Y XY
Step 3 using formulae find byx, bxy
Step 3 find the two regression lines.
Time series and Analysis
1. Time series : A statistical data which relate to successive intervals.
2. Components of time series
1. Secular trend 2. Seasonal variation
3. Cyclical variation 4. Irregular variation
3. Two models of a time series
i. Multiplication model
ii. Additive model
i. Multiplicative Model y
t
= T
t
x S
t
x C
t
x I
t
ii. Additive Model y
t
= T
t
+ S
t
+ C
t
+ I
t
4. Four methods to estimate the secular trend
1. Graphic method (or) free hand method
2. Method of semi average
3. Method of moving average
4. Method of least squares
5. Seasonal variation : Measured by the method of simple average.
Steps involved moving average - odd number of years (3 years)
Step 1 Add up first 3 values, place the sum against median year, 2nd year.
Step 2 Leave the first year item, add up the values of next 3 years, follow step 1
+2 Business Maths
39
Step 3 Leave the first two items add the next 3 years. sum place in the 4th place.
Step 4 This process must be continued till the value of the last item is taken for calculating the
moving area.
Step 5 Each 3 year moving total must be divided by 3 to get moving Avg. (Trend value)
Table : Year Production 3 year moving 3 year moving
Total Avg
Moving Avg : Even number of years (say 4 years)
1. Add up the first four value - place against middle of 2nd and 3rd year.
2. Leave the first year value and add from 2nd year to 5th year - place against middle of 3rd and 4th
rate.
3. Leave the first two value place against the middle of 4th and 5th value.
4. This process must be continued
5. Add the first two - 4 years moving total and write the sum against 3rd year.
6. Leave the first 4-year moving total and add the next 4 year moving total - placed against 4th year
7. This process must be continues
8. Divide the 4 year moving total centered by a and write the quotient in a new column.
Year Value 4 year moving 4 year moving Trend Value
Total Total centered
Method of semi average
Seasonal Indices
1. Arrange the data by years, month or quarter
2. Compute the total of each month or quarter
3. Divide each total b y the number of years. This gives seasonal average.
4. Compute averge of seasonal average Grand average
5. Seasonal Index =
Seasonal Average
100
Grand Average

Quarterly given =
Quarterly Avg.
100
Grand Avg.

Index Number
1. Definition : Index number is a special ratio u (usually percentages) which measures the (combined
average) change of several variable between two different times, places and situations.
7 years given
Year value semitotal semi avg.
Step 1 Two equal parts can be made omitting
middle year.
Step 2 Find the arithmetic mean of each part
Step 3 Difference in middle period
Step 4 Difference between semi avg.
Step 5 Annual increase (or) decrease in trend
Step 6 Find Trend value
8 years given
Year value semitotal semi avg.
Step 1 Two equal parts can be made
Step 2 Find the arithmetic mean of each part
Step 3 Difference in middle period
Step 4 Difference between semi avg.
Step 5 Annual increase (or) decrease in trend
Step 6 Half yearly increase (or) decrese in trend
Step 7 Find Trend value
Price Index Number
Quantity Index Number
Value Index Number
Special purpose of Index Number
2. Index Number
Applied Statistics
40
Index Number
Unweighted Index No. Weighted Index No.
Weighted aggregate
method
Weighted Avgs. of
relative method
3.
4. p
1
= Price of current year
p
0
= Price of base year
q
1
= quantity of current year
q
0
= quantity of base year
i. Laspere price index number =
1 0
01
0 0
100
L
p q
P
p q
ii. Paasches price index =

1 1
01
0 1
100
P
p q
P
p q
iii.Fishers price index =

01 01 01
L L P
P P P = =
1 0 1 1
0 0 0 1
100
p q p q
p q p q

Test of index number
1. Time reversal test
2. Factor reversal test
Time reversal Test :
01 10
1 P P =
1 0 1 1
01
0 0 0 1
p q p q
P
p q p q

=

0 1 0 0
10
1 1 1 0
p q p q
P
p q p q

=

Factor reversal Test :
1 1
01 01
0 0
p q
P Q
p q
1 0 1 1
01
0 0 0 1
p q p q
P
p q p q

=

0 1 1 1
01
0 0 1 0
p q p q
Q
p q p q

=

Cost of Living index no.
1. Aggregate Expenditure method =
1 0
0 0
100
p q
p q
2. Family budget method =

PV
V
where
1
0
100
p
P
p
=
V = p
0
q
0
value of weight
+2 Business Maths
41
UCL
CL
LCL
Statistical Quality Control
1. Variation occurs due to two types of causes
i. Chance cause ii. Assignable cause
2. The purpose for statistical quality control
i. Process control ii. Product control
3. Control chart consist 3 lines
1. A central line level of process
2. Upper control limit
3. Lower control limit
4. Control Chart
Control Chart of variables Control charts of Attributes
5. X Chart
1. Obtain the mean of each sample =
i
X
2. Obtain the mean of sample mean =
1
.......
n
X X
X
n
+
=
3. n total no. of observation
4.
2
UCL X A R = +
5.
2
LCL X A R =
6.
1
n
i
i
R R
=
=
7. The value of A
2
obtained from table
6. R Chart
1. Range of each sample R
2. Mean of sample range
3. The control limits are set at
4.
4
UCL D R =
5.
3
LCL D R =
6. Value of D
4
and D
3
can be obtained from table
Conclusion : All the points of the sample range is in the UCL of R chart process is in control.
1. A time series is set of data recorded
a) Periodically b) at equal time intervals
c) at successive point of time d) all the above
2. A time series consists of
a) two components b) three components c) four components d) none of these
3. The component of a time series attached to long term variation intermed as
a) Cyclic variations b) Secular trend c) irregular variation d) all the above
Applied Statistics
42
4. The components of time series which is attached to short term fluctuations in
a) Seasonal variation b) Cyclical variation c) irregular variation d) all the above
5. Cyclical variation in a time series caused by
a) lock out in a factory b) war in a country c) floods in the state d) none of these
6. The term prosperity, recession depression and recovery are in particular attached to
a) secular trend b) seasonal fluctuations
c) cyclical moments d) irregular variation
7. An additive model of time series with components T, S C and I
a) Y = T + S + C I b) Y = T + S x C + I c) Y = T + S + C + I d) Y = T + S + C x
8. A decline in the sales of icecream during November to March in associated with
a) Seasonal Var b) Cyclical Var c) Random Var d) Secular Trend
9. Index number is a
a) measures of relative changes b) a special type of an average
c) a percentage relative d) all the above
10. Index number are expressed
a) in percentage b) in ratio
c) in terms of absolute value d) all the above
11. Most commonly used index number is
a) Diffusion index no. b) Price index no. c) Value index no. d) none of these
12. Most frequently used index number is
a) weighted formulae b) unweighted formulae
c) fixed weighted for d) none of these
13. Laspere index formulae uses the weights of
a) base year quantities b) current year quantities
c) average of the weights of no. of years d) none of these
14. The weights used Paasches formulae belongs to
a) the base period b) the current period
c) to any arbitrary choosen period d) none of these
15. Variation in the item produced in a factory may be due to
a) Chance causes b) assignable causes c) both (a) and (b) d) none of these
16. Chance variation in the manufactured product is
a) controllable b) not controllable c) both (a) & (b) d) none of these
17. The cause leading to vast variation in the specification of a product are usually due to
a) random process b) assignable causes
c) non-traceable causes d) all the above
18. Variation due to assignable causes in the product occur due to
a) faulty process b) carelessness of operators
c) Poor quality d) all the above
19. Control chart statistical quality consists of
a) three control lines b) upper and lower control lines
c) the level of process d) all the above
20. The range of correlation coefficient is
a) 0 to
b)
to
c) 1 to 1 d) none of these
+2 Business Maths
43
21. X and Y are two variates, there can be atmost
a) one regression line b) two regression lines
c) three regression lines d) none of these
22. In a regression line Y on X, the variable X is known as
a) Independent variable b) dependent variable
c) both (a) and (b) d) none of these
23. Scatter diagram of the variate values (X, Y) give theidea about
a) functional relationships b) regression model
c) distribution of errors d) none of these
24. The line of regression intersect at the point
a) (X, Y) b) ( , X Y ) c) (0, 0) d) none of these
25. The term regression was introduced by
a) R.A. fisher b) Sir Francis Galto c) Kail Pearson d) none of these
Answers :
1. (d) 2. (c) 3. (b) 4. (d) 5. (d) 6. (c) 7. (c) 8. (a)
9. (d) 10. (a) 11. (a) 12. (a) 13. (a) 14. (b) 15. (c) 16. (d)
17. (b) 18. (d) 19. (a) 20. (c) 21. (b) 22. (a) 23. (a) 24. (b)
25. (b)

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First Edition : December 2011

Copyright 2011 GENESIS

iv. angle between the asymptotes ( )

16. The semi major and semi minor axes of

20. The slope of the curve x = y

2. The maximum value of f(x) = cos x is

11. The solution of the equation of the type

14. The integrating factor of

Interpolation and Fitting a Straight Line

Sampling Techniques and Statistical Inference

Level 95% 99%

ii. Paasches price index =

iii.Fishers price index =

2. Family budget method =

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