Mathematics is everywhere; it is the language of nature.

This is the uniformity that

we have

discovered in nature and now use it for our purpose. However, the path was not easy
and nature

loves to play hide and seek. Mathematical truths are hidden inside puzzles and we
need to solve

them to get
those.

Mathematics is useful and is

needed for

Learning some clever techniques, to solve our

problems

To get a thought process structured so that we have discipline in problem

solving

First, to discuss about Mathematics we need to be careful about some of its

peculiarities.

Mathematics is a language and like all other language it has idiosyncrasy, it has rules
and there is

no point to ask the validity of those rules (at lest at this level, when you will get access
to higher,

may be very high level mathematics then you can design your own rule and therefore
your own

world). We have to accept those rules if we want to get into your

world.

Mathematics is structured. The rules that we talked before can be quite irritating. It
may be

annoyingly stupid to the extent that we may tend to avoid those. Many of you do
not like

mathematics. Most probably, you did not like to go along with this rigidness. Human
beings are

naturally flexible in their cognition, so rigidity is not a natural

choice.

Mathematics does not have any foundation, though it can solve problems and
give correct

solutions. This is an important fact and is related with the unfriendliness of

Mathematics. We

normally are accustomed with learning things that have foundations along with
superstructure

built on it. But, although mathematics has a very strong and internally consistent
superstructure it

is weak in foundation (se weak that you can safely ignore it). This weakness is very
well known

among mathematicians. In few occasions there were considerable tension among

mathematicians

regarding its foundation to the extent that the future of the discipline was at stake but
somehow it

made its way but still there is no foundation for the

discipline.

If you are not a math fanatic the good news is you do not have to like Mathematics to
go through

this course. In fact, you will most probably in problem if you start liking
mathematics. The

concepts that we will discuss in this class are many in number (and of course
interesting if you

like math) compared to the time allotted for this course so there is no scope (and
certainly no

need) to get into any concept in great details. We are business students and we just
need to learn

sufficient math so that we can serve our purpose and get our
problems solved.
Chapter 01: Linear Equations and Functions
(Class 1)

To start with the discussion we will have few

definitions

Set: Mathematical concepts start with the concept of set. A set is a fundamental
mathematical

entity with elements in it. A set is loosely a collection of elements that follows some
rules. For

our purpose, we can safely ignore the last phrase “that follows some rules”. So, for our
purpose

set is a collection of
objects.

Ordered pair: A set with two elements is an ordered pair if it maintains a certain
ordering among

its elements. (2,3) is a set where we have the first element 1 less than the second
one. This is an

ordering and this can be said as an

ordered pair.

However, this ordering will not have much significance unless we have many of
those. Like if

we have a group of sets which have the same ordering between first and second
element then that

can be meaningfully conceptualized into a relationship. All the following sets have
the same

ordering: the first element is 1 less than the

second one:

(2,3) (5,6) (9,10) (-2,-1) and so

on.

Variables: Variables are mathematical entities that can take different values. Their
values can

change that’s why they are called variables. There are two different types of variables.
Those are
dependent variable and independent variable. Independent variable is one which
can take any

value it wants but the value of dependent variable is dependent on the value of
independent

variable. Besides these two there is parameters which are variables (in the sense that
it can take

different values) but not under the control of the modeler, like
tax rate.

Function and relationships: When we have a set of ordered pairs then can
consider the first

elements of the pairs as a variable and second element of the pairs as another
variable. If we set

things up in this way then we can consider a relationship between these two
variables. For

example, if we consider the four ordered pairs mentioned early then let’s call the first
elements x

and the second element y. Then the relationship between x and y will be x=y-1
or x+1=y.

Condition for being function: The relationship that we mentioned earlier is not
necessarily a

function. To qualify a relationship as function it needs to pass vertical line test. That
mean for a

particular value of independent variable the function will have to have one and only
one value.

However, one value of function can have multiple value of independent

variable.

Functions are important as all the mathematical theories are valid for functions.
Functions are the

basic blocks of relationship that can be exploited by mathematical

theories.
Equality: This is a basic type of mathematical relationship. This means that R.H. S and
L.H.S of

an equation sign are always equal to each other, not more not less than one
another. This is a

very powerful
statement.

There are two types of

equations

Conditional equation: That just tells a behavioral relationship and that is true for the
time being.

It does not tell anything whether the relationship remains same over time or not.
Most of the

equations are of this

type.

Identity equation: This type of equation gives a relationship that is true

irrespective of the

environment. That is by
definition.

Concept of solution: Solution of an equation is the value of the unknown (typically a

variable)

that makes both R.H. S. and L.H. S. equal to each other. In case of linear
relationship, it is a

unique value but for non-linear cases, this can have multiple
values.

Inequality (solution as a range): If the equation is an inequality then its solution

becomes more

interesting. Since now in that case one side of the equality sign is bigger than the
other (it does

not matter how big). So, the potentially the value of the solution can grow or
diminish at one

direction. Typically, we handle this situation in the following way. First, we

convert the
inequality relationship into an equality relationship and then solve the equation. The
solution

found in this case serves as the boundary between the solution and non-solution
sides. One side

of the boundary will satisfy the relationship with inequality sign and that side needs to
be found

out by direct checking. We will talk more about that once we study linear
programming.

Cartesian coordinate system a graph and pictorial description of a straight line (linear
function)

Functions are models that are useful to solve equations that represent real life
problems.

Linear equation: If in a function, dependent and independent variables appear with

power one

and are not multiplied with each other then such function is called linear function. In
fact linear

function is the only type of function that we can solve. It is easiest to solve (other
non linear

types of function can be solved for particular cases) and unfortunately not commonly
found. In

fact, all the relationships that we may encounter in reality are all non-linear
relationships. But

since they are difficult to solve, we normally “somehow” convert that non-linear
relationship into

linear one and solve that. This solution may serve us up to a small window bow
but as we

increase our focus errors creep to an

unacceptable level.
Nonlinear equation: When in an equation variables appear with power different than
one and

they are multiplied or divided by one another then the relationship can be termed as
non linear

relationship. This is little complicated and there is no uniform (deductive) method to

solve such

equations. The only solution is numerical

solution.

Equation of a straight line: Since in Mathematics we need to solve everything in a

very precise

way we need to explicitly write down the relationship that we may call a function. Two
pieces of

information are needed to write down an equation. Those two pieces are normally
slope and

intercept. In that case the equation looks like y=m*x+c here m is the slope and c is the
intercept,

y-intercept to be
specific.

y intercept (x=0), x intercept (y=0),

slope

Determination of slope: If two points on a straight line is given by (x​1​,y​1​) and (x​2​,y​2​)
then the

slope of the straight line is given by m=(y​1​-y​2​)/(x​1​-x​2​) Explanations of slopes and

intercepts: Slope tells us how much the value of the function (y

value) will change if there is a one-unit change in x value. It is an important parameter

as it gives

us the responsiveness of one variable with the

other.

Positive slope (supply curve): Positive slope means when one variable makes a move
in positive

direction (increases) then the other variable moves in the same direction (positive).
In typical

setup of supply curve where two variables are quantity supplied and price we get
a positive
sloped
relationship.

Negative slope (demand curve) ): Negative slope means when one variable makes
a move in

positive direction (increases) then the other variable moves in the opposite direction
(negative).

In typical setup of demand curve where two variables are quantity demanded and
price we get a

negative sloped
relationship.

Vertical line (salt or medicine demand curve): This curve gives us a relationship where
change in

one variable (independent variable) does not have any effect on other. Salt or
medicine demand

curve show such behavior. In this case slope is

zero.

Horizontal line (molasses supply curve): In this case slope of the curve is
very high.

Parallel lines: If two curves have same slope then they are called parallel line.
They never

intersect with each

other.

Perpendicular lines: In this case two lines stand over each other in a
perfect way.
Piecewise linear function: In this case straight lines are piecewise continuous.
Between these

continuous segments they have finite

jumps.

To identify a linear function, we need to have two pieces of information, they may
come in the

form of two intercepts or one intercept and one

slope

Exampl
e:

Problem 1: High tech athletic shoes: A large sporting goods retailer with multiple
stores is

attempting to predict the demand for the latest basketball shoe. It is estimated that 300
pairs will

be sold per day in the retailers store if the new shoe is priced at $200. At a price of
$175 dollars

375 pairs will be

sold.

If price is plotted on the horizontal axis determine the slope-intercept form of the
equation for

deman
d

Predict the expected demand at a price of $225, at a price

of $160.

Identify P intercept and interpret the

meaning

Identify two points given, calculate slope, then intercepts, write equation in the
form of

Y=mX+C. Explain each term and give physical

significance.

Slope
m=(300-375)/(200-175)

m=-75/2
5

m=-
3
So the slope of the equation
is -3

To find constant we need to

300=(-3)*200+C

So
C=900

So the equation becomes

Q=(-3)*P+900

Problem 2: Angie’s bake shop makes birthday chocolate chips cookies that costs $2
each. Angie

expects that 10% of the cookies will crack and be discarded. Angie wants a 60%
markup on cost

and produces 100 cookies. What should Angie price each

cookie?

Assuming Angie can sell the cracked cookies for $1.10 each, what should Angie
price each

cookie
.
Show how verbal information can be put into math and solve that to get useful
information

Problem 3: Circuit city sells camcorder. It knows that the people will not pay more than
$799 for

that particular version of recorder. If it expects 65% markup what is the maximum
price that it

may offer to its

wholesaler?

Problem 4: The Eastside Nursery ordered 27 tree seedlings. Some of the seedlings
were elms,
costing $17 each. The remainder of the seedlings were maples at $11 each. The total
cost of the

seedlings is $375. Find the number of elms and the number of

maples.

x = 13 elm seedlings and 127 - 132 = 14 maple

seedlings

Problem 5: Jane Anderson purchased a commercial building and plans to fix it up. The
building

can be used for both retail stores and office space. She thinks she can get a total
annual rent of

$135,000, with 3.5 times as much rent coming from retail stores as from office space.
Find the

rent she expects from office space and also the rent she expects from
retail stores.

Problem 6: Excluding managers, there are 22 full-time employees at a large Harley

Davidson

shop. New employees receive $10.75 per hour, while more experienced and
higher-skilled

workers average $19.45 per hour. The company spends $401.80 per hour in wages,
not counting

benefits. Find the number of each type of

worker.

Problem 7: Florida Vegetables, Inc. makes $0.10 on a head of lettuce and $0.08 on
a bunch of

carrots. Last week, a total of 12,900 heads of lettuce and bunches of carrots were
sold, with a

total revenue of $1174. How many heads of lettuce and how many bunches of carrots
were sold?

Problem 8: An appliance store bought 8 large refrigerators and 10 washer/dryer

combination

sets. The store’s cost for a washer/dryer was $462 and the total paid for all of the
appliances was

$10,860. Find the cost of a

refrigerator.
Problem 9: The weekly salary for each salesperson at a clothing store is found using
the formula

S = $280 + .05x, where x = employee’s total sales for the week. Find the salary of two
part-time

employees with the following weekly sales: (a) $2940 and (b)
$4450.

Problem 10: The Guitar Shoppe bought 6 sets of bongo drums and 7 Alvarez
guitars for

$2445.80. The guitars cost $269 apiece. Find the cost for a set of
bongo drums.

Problem 11: A biscuit recipe that feeds 7 requires 2 cups of flour. How much flour is
needed for

enough biscuits to feed a church group of 125? Round to the nearest whole
number.