Business mathematics consists of a set of mathematical and statistical tools that can be used for the fulfillment of one or more objective of a businesslike the maximization of out or sales, maximization of profits, minimization of cost etc. These tools are often known as quantitative techniques.
Main features of quantitative techniques
- Every management problem can be represented by one or more equations with the help of certain symbols. These symbols denote relevant variables and constants of the problems.
- The solution of the model is obtained by the application of one or more techniques from the set of quantitative techniques.
- The quantitative techniques take care of the policies and capacities of different departments and hence avoid the occurrence of any contradiction between them.
- This is interdisciplinary approach to problem solving.
- These techniques attempt to analyze the business problem in actual working environment which often differ from the ideal conditions assumed in mathematics, economics and other disciplines.