UBMSFSII.4 : BUSINESS MATHEMATICS [50 lectures : 3 Credit]
Course Objectives:Â
- 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.
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| Unit | Name of the Topic | No. of |
| Â | Â | lectures |
| Â | Â | Â |
| Unit I | Elementary Financial Mathematics. | 13 |
| Â | 1)Â Simple and Compound Interest: Interest compounded once a | Â |
| Â | year, more than once a year, continuous, nominal and effective | Â |
| Â | rate of interest. | Â |
| Â | 2)Â Annuity-Present and future value-sinking funds | Â |
| Â | 3)Â Depreciation of Assets: Equated Monthly Instalments (EMI)- | Â |
| Â | using flat interest rate and reducing balance method. | Â |
| Â | 4)Â Functions: Algebraic functions and the functions used in | Â |
| Â | business and economics, Break Even and Equilibrium point. | Â |
| Â | 5) Permutation and Combination: (Simple problems to be solved | Â |
| Â | with the calculator only) | Â |
| Unit II | Matrices and Determinants. | 12 |
| Â | 1)Â Matrices: Some important definitions and some important | Â |
| Â | results. Matrix operation (Addition, scalar multiplication, matrix | Â |
| Â | multiplication, transpose of a matrix) | Â |
| Â | 2)Â Determinants of a matrix of order two or three– properties | Â |
| Â | and results of Determinants | Â |
|  | 3) Solving a system of linear equations using Cramer’s rule |  |
| Â | 4)Â Inverse of a Matrix (up to order three) using ad-joint of a matrix | Â |
| Â | and matrix inversion method | Â |
| Â | 5) Case study– Input Output Analysis | Â |
| Unit III | Derivatives and applications of Derivatives | 13 |
| Â | 1)Â Introduction and Concept– Derivatives of constant function, | Â |
| Â | logarithmic functions, polynomial and exponential function | Â |
| Â | 2) | Rules of derivatives: addition, multiplication, quotient | Â |
| Â | 3) | Second order derivatives | Â |
| Â | 4) | Application of Derivatives: Maxima, Minima, Average Cost and | Â |
| Â | Â | Marginal Cost. Total revenue, Marginal revenue, Average | Â |
| Â | Â | revenue. Average and Marginal profit. Price elasticity of demand | Â |
| Unit IV | Â | Numerical Analysis [Interpolation] | 12 |
|  |  | Introduction and concept – Finite differences – forward |  |
|  |  | difference operator – Newton’s forward difference formula with |  |
| Â | Â | simple examples | Â |
|  |  | Backward Difference Operator. Newton’s backward |  |
| Â | Â | interpolation formula with simple examples. | Â |
| Â | Â | Â | Â |
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Reference Books :
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- Mathematics for Economics and Finance, Martin Anthony, Norman Biggs, Cambridge lowprice editions, 2000.
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- Business Mathematics, D.C. Sancheti, V.K. Kapoor, Sultan Chand & Sons Publications, 2006.
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- Business Mathematics, J.K. Singh, 2009,Himalaya Publishing House.
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- Mathematics for Business and Economics, J.D. Gupta, P.K. Gupta, Man Mohan, Tata McGrawHill Publishing Company Ltd.
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- Mathematics of Finance 2nd Edition Schaum’s Outline Series Peter Zima, Robert Brows Tata McGrawHill Publishing Company Ltd
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- Business Mathematics by Dr. Amarnath Dikshit & Dr. Jinendra Kumar Jain.
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- Business Mathematics by Bari – New Literature publishing company, Mumbai
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- Mathematics for Economics and Business, RS Bhardwaj, 2010,Excel Books
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- 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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