UBMSFSII.4 : BUSINESS MATHEMATICS [50 lectures : 3 Credit]
Course Objectives:
- The objectives of the course are to enable students to learn and to have a good working practice of mathematical tools for taking appropriate decisions in managerial situations
- The objective of this course is to provide primary knowledge regarding some Mathematical techniques to be used in managerial decision making.
- All the concepts in the syllabus should be illustrated with examples from Management, Commerce and Economics
- To enable the students to gain knowledge about the basic mathematical tools used in business and statistical techniques that facilitate comparison and analysis of business data.
| Unit | Name of the Topic | No. of |
| lectures | ||
| Unit I | Elementary Financial Mathematics. | 13 |
| 1) Simple and Compound Interest: Interest compounded once a | ||
| year, more than once a year, continuous, nominal and effective | ||
| rate of interest. | ||
| 2) Annuity-Present and future value-sinking funds | ||
| 3) Depreciation of Assets: Equated Monthly Instalments (EMI)- | ||
| using flat interest rate and reducing balance method. | ||
| 4) Functions: Algebraic functions and the functions used in | ||
| business and economics, Break Even and Equilibrium point. | ||
| 5) Permutation and Combination: (Simple problems to be solved | ||
| with the calculator only) | ||
| Unit II | Matrices and Determinants. | 12 |
| 1) Matrices: Some important definitions and some important | ||
| results. Matrix operation (Addition, scalar multiplication, matrix | ||
| multiplication, transpose of a matrix) | ||
| 2) Determinants of a matrix of order two or three– properties | ||
| and results of Determinants | ||
| 3) Solving a system of linear equations using Cramer’s rule | ||
| 4) Inverse of a Matrix (up to order three) using ad-joint of a matrix | ||
| and matrix inversion method | ||
| 5) Case study– Input Output Analysis | ||
| Unit III | Derivatives and applications of Derivatives | 13 |
| 1) Introduction and Concept– Derivatives of constant function, | ||
| logarithmic functions, polynomial and exponential function |
| 2) | Rules of derivatives: addition, multiplication, quotient | ||
| 3) | Second order derivatives | ||
| 4) | Application of Derivatives: Maxima, Minima, Average Cost and | ||
| Marginal Cost. Total revenue, Marginal revenue, Average | |||
| revenue. Average and Marginal profit. Price elasticity of demand | |||
| Unit IV | Numerical Analysis [Interpolation] | 12 | |
| Introduction and concept – Finite differences – forward | |||
| difference operator – Newton’s forward difference formula with | |||
| simple examples | |||
| Backward Difference Operator. Newton’s backward | |||
| interpolation formula with simple examples. | |||
Reference Books :
- Mathematics for Economics and Finance, Martin Anthony, Norman Biggs, Cambridge lowprice editions, 2000.
- Business Mathematics, D.C. Sancheti, V.K. Kapoor, Sultan Chand & Sons Publications, 2006.
- Business Mathematics, J.K. Singh, 2009,Himalaya Publishing House.
- Mathematics for Business and Economics, J.D. Gupta, P.K. Gupta, Man Mohan, Tata McGrawHill Publishing Company Ltd.
- Mathematics of Finance 2nd Edition Schaum’s Outline Series Peter Zima, Robert Brows Tata McGrawHill Publishing Company Ltd
- Business Mathematics by Dr. Amarnath Dikshit & Dr. Jinendra Kumar Jain.
- Business Mathematics by Bari – New Literature publishing company, Mumbai
- Mathematics for Economics and Business, RS Bhardwaj, 2010,Excel Books
- Business Mathematics, Zameerudin, Qazi, V.K. Khanna & S.K. Bhambri, Vikas Publishing House Pvt. Ltd, New Delhi
(P.S. This post has been updated on 12th November 2014 as per the revised 2014-15 syllabus)
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