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MAT 201
Business Mathematics
Consultation:
By appointment
PRE-REQUISITE(S)
No pre-requisite is required.
RATIONALE:
This unit is an introduction to topics such as calculus, linear algebra and optimisation for
students studying in the areas of Business, Economics, Banking, Finance, Management
and Accounting. This subject explores various quantitative methods, which are of
particular relevance to those involved in decision-making and analysis. The course
describes situations in which mathematical arguments can be used in problem solving.
The primary objective is to provide students the mathematical framework and a more
scientific approach of modelling business and economic behaviour.
SYNOPSIS:
Students of this course are introduced to various mathematical tools. Topics include basic
Quantitative Methods, Mathematical Functions, Vectors and Matrices, Differentiation,
Integration, Optimisation, Partial Differentiation, Linear Programming, Sequences and
Series. Students are also exposed to Business Mathematics Techniques covering areas
such as Simple and Compound Interest, Present value, Discounting, Depreciation and
Amortisation.
OBJECTIVES:
On successful completion of this unit student will be able to:
1. Understand and use polynomial functions;
2. Find the domain and range of functions;
3. Sketch the graphs of quadratic functions and its applications in profit functions,
demand and supply functions;
4. Solve various types of equations and inequalities;
5. Understand and perform vectors addition and scale multiplication;
6. Solve a system of linear equations using Cramers rule, matrix inversion and row
operations;
7. Differentiate algebraic, exponential, and logarithmic functions using various rules
of differentiation;
8. Differentiate functions implicitly ;
9. Use first or second order derivatives to check the nature of turning or stationary
points of a function;
10. Differentiate functions of several variables;
11. Optimise univariate and multivariate functions (with and without constraint);
12. Apply sequences and series in management and finance;
13. Apply mathematical tools in the following areas of: computing interest, present
value, discount, depreciation and amortisation;
14. Optimise functions using a linear programming technique;
15. Integrate functions using various methods.
TOPICS:
Description
1. Basic Quantitative Methods
a) Arithmetic Operations
b) Terminology Notations
c) Simple Algebra
d) Equations
e) Simple Manipulation
f) Indices
g) Reciprocals
2.
Mathematical Functions
a) Relationships in Sets
b) Relations: Definitions and Notations
c) Functions: Definitions and Notations
d) Different types of Functions
e) Graphing a Function
f) Applications of Functions to Business and Economics
3.
4. Differentiation
a) Rules of Differentiation
b) Implicit Differentiation
c) Applications of Differential Calculus
5. Multivariate Differentiation
a) Partial derivatives
b) Stationary points
c) Maximum and minimum
d) Economics and Business Applications
6. Optimisation
a) Without Constraint
b) With Equality Constraint
c) With Inequality Constraint
7. Integration
a) General Rules of Integration
b) Methods of Integration
8. Sequence and Series
a) Sequence
b) Series
c) Arithmetic Progression
d) Geometric Progression
9. Business Mathematics
a) Simple and Compound Interest
b) Discounting and Present value
c) Depreciation and Amortisation
10. Linear Programming
Preference Texts
Anthony, M. & Biggs, N., (1996), Mathematics for Economics and Finance Methods
and Modelling, Cambridge University Press.
Haeussler, E.F.Jr. and Paul, R.S., (2005), Introductory Mathematical Analysis for
Business, Economics for Life and Social Sciences, 11th ed., Prentice Hall Editions.
: Business Studies
: Dr K Harikrishnan
Topics
Reference
Chapter 1
Chapter 3
and
Chapter 7
Chapter 7
Chapter 6
Chapter 6
FINAL EXAMINATION
ASSESSMENT:
There are 2 assessment items for this subject.
Assessment Items
Value
Due Date
1. Test
30%
Week 4 or 5 **
2. Final Examination
70%
REQUIREMENTS:
To gain a pass in this subject, students must:
Achieve a passing grade in the final examination i.e. score a minimum of 35 marks
out of 70 marks if there is an examination for this subject.
Attempt ALL areas of assessment; and achieve a total result of 50% or better
overall.
** - Please check on the notice board or My Acel for the actual date. HELP
University reserves the right to make any changes to the above where appropriate.
ACADEMIC INTEGRITY
Honesty and Responsibility
Academic integrity is an important tenet for HELP University. In pursuit of the highest
standards of academic integrity, the Department of Business Studies holds it students to
the highest ethical standards defined by the Rules and Regulations section of the
Academic Handbook. All students at the Department of Business Studies are subjected
to and are bound by the Student Academic Misconduct Rule to assure academic honesty.
Students are required to sign a pledge on the assignment cover sheet before submitting
your assignments to the Administration Office of the Faculty of Business, Economics &
Accounting.
What is Plagiarism?
Plagiarism is academic dishonesty or academic theft, and it is a serious academic offence.
Plagiarism includes, but is not limited to, the followings:
1. quote, paraphrase or summarize someone elses ideas, theories or data, in whole
or in part, without appropriate acknowledgement
2. borrow ideas, opinion or words, in whole or in part, from other sources without
properly crediting the author(s)
3. use any facts, statistics, diagrams or graphs, in whole or in part, without
acknowledging the source clearly
4. claim or imply original authorship of someone elses ideas, theories or data, in
whole or in part, as your own
5. employ or allow someone to help to revise, amend or write your work and pass
off as your own original work
6. collaborate with or allow other students to copy your work
7. draw on sources more than what you have acknowledged by citations
While a student is not discouraged to discuss an assignment with his/her friends or
classmates, the work he/she submits must be done by the student alone. If a student shares
his/her assignment with other students and they plagiarize it, the student is as guilty as
those students who plagiarized his/her assignment. All parties to plagiarism are
considered equally guilty. Under no circumstances should a student be involved in
collusion with other students unless he/she is permitted to work on an assignment jointly
by the lecturer/tutor. If a student is unsure what constitutes plagiarism, he/she is obliged
to consult the lecturer/tutor on the matter before submission of his/her assignment.
When and How to Reference?
Knowing when and how to cite is a students responsibility. If he/she is in doubt or need
more help on this matter, the student may consult the lecturer/tutor. The following list
comprises some of the sources a student will need to reference. The list is by no means
exhaustive, but simply consists of the most common sources used by students to complete
their work.
1. Books
2. Chapters in books
7
3.
4.
5.
6.
7.
8.
Journal articles
Conference papers
Newspaper articles
Magazines
Websites
Study guide
1st offence
10
MAT201
Subject Name
BUSINESS MATHEMATICS
This examination carries 70% of the total assessment for this subject.
Examiner(s)
MR ABC
Day
Date
Moderator(s)
MR XYZ
Time
Time allowed :
Reading 10 MINUTES
Writing 3 HOURS
INSTRUCTION(S):
1. This examination consists of SIX (6) questions:
Students are required to answer any FIVE (5) questions in the answer book provided.
2. Writing on the examination answer book is NOT permitted during reading time.
3. This is a CLOSED BOOK examination.
4. Students are NOT permitted to retain this examination paper.
5. Only Non-Programmable calculators are allowed to be used.
6. Students MUST pass this examination in order to pass the subject.
(This examination paper consists of 6 questions in XX printed pages, including cover page)
11
(4 marks)
ii) Calculate the new equilibrium price and quantity after a fixed tax of $10 per
unit is imposed and the amount of tax revenue.
(6 marks)
(b)
Given that the variable cost per unit is + 5 , the fixed costs are $300 and the
demand function is
= 125 2 ,
show that the associated profit function is
= 3 2 + 120 300 .
Using completing square method or otherwise, deduce the maximum profit.
(10 marks)
Question 2
(a)
(b)
annually
(3 marks)
ii)
quarterly
(3 marks)
iii)
continuously
(3 marks)
(c)
Find the present value of an annuity that yields an income of RM6000 at the end
of each year for 12 years, assuming the interest rate is 8% compounded annually.
(6 marks)
Question 3
(a)
= 2 (3 + 1)
ii)
= 2 5
(6 marks)
(b)
(c)
21
2
when = 0.
(4 marks)
2 + 3 3
Find,
i)
(2 marks)
ii)
(2 marks)
iii)
iv)
(4 marks)
Question 4
(a)
(b)
1 (4 3 3)
= 1
(4 marks)
0.25
13
+1
Question 5
(a)
(b)
Question 6
(a)
4
1 0
2
0 1
5 2
Let A = [ 2 2 1] , B = [
] and C= [
].
1 2 3
3 4
1 0 1
Determine if = + 2 .
(4 marks)
14
(b)
(c)
Find the maximum value of 2x + 3y and the point at which it occurs subject to the
following constraints (by using graphical method).
+ 30
2 0
40
0
(8 marks)
15
FORMULAS
Future Value
= ( + )
Present Value
= ( + )
Geometric Series
= (
Consumers Surplus
= ()
Producers Surplus
= ()
), || < 1
16