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Bbe 105 - Business Calculations Methods PDF
Bbe 105 - Business Calculations Methods PDF
Bbe 105 - Business Calculations Methods PDF
BBE 105AB
MAMELLO MATUMELO G. LEBOKO
NUL-IEMS
____________________
Any part of this document may be reproduced without permission but with attribution to
the National University of Lesotho using the CC-BY-SA (share alike with attribution).
http://creativecommons.org/licenses/by-sa/4.0
ACKNOWLEDGEMENTS
The Institute of Extra Mural Studies’ (IEMS) Business and Management Development
Department of the National University of Lesotho wishes to acknowledge contributions of
the course authors and support of the Commonwealth of Learning (COL) in the creation of
this and other course guides for Open and Distance Learning (ODL) programmes at the
Institute. We are particularly grateful to the writer of this course guide, Mrs Matumelo M.
Leboko, course content editor, Dr........... University of Botswana and the course Designers,
Prof M. P. Ramollo (NUL) and Prof V Polaki (CHE).
TABLE OF CONTENTS
ACKNOWLEDGEMENTS ................................................................................................................................. 2
COURSE OVERVIEW..................................................................................................................................... 10
Introduction ............................................................................................................................................ 10
Course Goals ........................................................................................................................................... 10
Description .............................................................................................................................................. 10
Recommended Readings ........................................................................................................................ 10
Assignments and Activities ..................................................................................................................... 10
Assessment Methods .............................................................................................................................. 11
FEEDBACK ON MARKED TESTS AND ASSIGNMENTS ........................................................................................ 11
GRADING .................................................................................................................................................. 12
COURSE SCHEDULE ..................................................................................................................................... 12
STUDENT SUPPORT ..................................................................................................................................... 14
ACADEMIC SUPPORT .................................................................................................................................. 14
HOW TO SUBMIT ASSIGNMENTS ................................................................................................................. 15
TECHNICAL SUPPORT .................................................................................................................................. 15
TUTORS AND TUTORIAL .............................................................................................................................. 15
UNIT ONE – Real number systems and their operations ............................................................................ 16
Introduction ............................................................................................................................................ 16
Unit Objectives ........................................................................................................................................ 16
Unit Readings .......................................................................................................................................... 16
Assignment1............................................................................................................................................ 16
1.1 – Sets OF Real Numbers .................................................................................................................... 17
Introduction ........................................................................................................................................ 17
Subsets of Real Numbers .................................................................................................................... 17
Properties of real Numbers................................................................................................................. 20
Prime factorization.............................................................................................................................. 21
Summary ............................................................................................................................................. 22
1.2 Decimals and Fractions ..................................................................................................................... 23
Introduction ........................................................................................................................................ 23
Objectives............................................................................................................................................ 23
Introduction ........................................................................................................................................ 82
Objectives............................................................................................................................................ 82
Binomial Theorem ............................................................................................................................... 82
Unit four Summary.............................................................................................................................. 84
Activity 4.3 .............................................................................................................................................. 85
Unit Four- References ......................................................................................................................... 86
UNIT Five – INTRODUCTORY STATISTICS AND PROBABILITY ...................................................................... 87
Introduction ............................................................................................................................................ 87
Objectives ............................................................................................................................................... 87
Readings .................................................................................................................................................. 87
5.1 STATISTICS ......................................................................................................................................... 88
Introduction ........................................................................................................................................ 88
5.1.1 Frequency Tables and Charts ..................................................................................................... 88
5.1.2 Measures of averages ................................................................................................................ 92
5.1.3 Measures of Spread ................................................................................................................... 95
Summary ............................................................................................................................................. 96
5.2 – PROBABILITY................................................................................................................................... 98
Introduction ........................................................................................................................................ 98
Objectives............................................................................................................................................ 98
definition of terms .............................................................................................................................. 98
5.2.1 An Event ......................................................................................................................................... 98
5.2.2 Simple And Compound Events ..................................................................................................... 100
5.2.3 PRINCIPLES OF PROBABILITY ........................................................................................................... 102
5.2.4 CONDITIONAL PROBABILITY ............................................................................................................ 104
UNIT Five – SUMMARY.......................................................................................................................... 105
Activity 5 ............................................................................................................................................... 106
Unit Five- Bibliography ...................................................................................................................... 107
UNIT Six – EQUATIONS, GRAPHS AND FUNCTIONS .................................................................................. 108
Introduction .......................................................................................................................................... 108
Objectives ............................................................................................................................................. 108
Unit Readings ........................................................................................................................................ 108
COURSE OVERVIEW
INTRODUCTION
This course equips Business and Entrepreneurship students with problem solving skills
using mathematical concepts. These involve application of mathematical skills and
knowledge of differentiation and integration to solve problems related to: demand
and supply analysis, break even analysis, market equilibrium, marginal revenue, profit
and cost. This information can be analysed algebraically and graphically. The counting
strategies techniques will be employed to solve counting problems.
COURSE GOALS
After successfully completing this course, students should be able to:
DESCRIPTION
There are two contact hours weekly. The course is taught as a series of lectures,
interactive class discussions, and extensive problem solving activities which provide an
opportunity for students to solve mathematical problems on their own. Assistance will
be given in answering application questions.
RECOMMENDED READINGS
Introductory Mathematical Analysis, 10th Edition, Hauessler& Paul.
Intermediate Algebra, 2nd Edition, K. Elayn Martin-Gay
Introductory Statistics, 7th Edition, Mann
Precalculus Mathematics for Calculus, 6th Edition, Stewart, Redlin andWatson
A survey of Mathematics with Applications, 5th Edition, Angel and Porter
As you study this unit, you will come across a number of illustrations and
worked examples. Study these illustrations and worked examples carefully.
Then do Activities questions for that appear in Appendices at the end of the
module. The Activities Questions are practice exercises that are intended to
assist you to prepare for the examination.
You will be provided with detailed instructions for your project/s by your
Assignments and facilitator. The course has been designed to provide you with guidance and
Review Questions activities that will assist you to answer all related question in other course in
the following year.
ASSESSMENT METHODS
A continuous assessment approach will be taken to evaluate the leaner’s
understanding and mastery of given concepts. The goal of the course is to apply
mathematical methods learnt during course of the term to day-to-day business
situations. As a result, real life situations will be presented to test the learner’s
mastery and application of concepts. Assignments may therefore be modified by
the hosting institutions and tutors in line with the goals of the course.
Examination will be written at the end of the semester for all courses and all
students are expected to attend them.
GRADING
All grades are subject to participation and submission of assignments. Non
submission of any scheduled assignments will result in zero mark. All assessable
projects will be graded according to the following system:
Progression from one level to another
Score (%) Symbolic Classification
COURSE SCHEDULE
The course is worth 14 credits, and each credit is equivalent to 10 notional hours.
You are, therefore, advised to spend not less than 140 hours of study on this course.
The notional time includes:
Going over activities embedded in the study material
Peer group discussions that you will carry with your classmates when you
find it necessary or in case you get stuck with the study material.
One-on-one tutoring with your course facilitator by telephone or email
where necessary
Face-to-face tutorials of 6 hours per semester will be scheduled and
communicated to you at the beginning of the semester.
STUDENT SUPPORT
Note: During orientation sessions that will be held at IEMS Maseru main campus at
the beginning of the academic year, you will be informed of the region in which you
belong. Each region has qualified academic faculty members appointed to ensure
that you achieve your highest standard of academic performance. The duties of
academic faculty members at the regional level include:
Delivery of the scheduled lectures
Telephonic support
E-mail Support
You are required to contact the relevant Business Calculations Methods
facilitator/lecturer at times as prescribed at their lecture.
ACADEMIC SUPPORT
A subject coordinator is appointed for each module. This module co-ordinator is a
full-time IEMS lecturer who is available during office hours to provide academic
support to learners. The contact details of the co-ordinator given below do not
change, in a situation whereby the details change; the learners will be informed on
the new details on http//:www.nul.ls
Phone number:
Email:
Office hours:
The library can be accessed at both Roma and Maseru campuses in person. At
Libraries learners are expected to produce student identification cards to be allowed
in the libraries or to borrow books.
Refer to the library guide available on the university website for a comprehensive
list of library facilities and resources available.
TECHNICAL SUPPORT
Learners can access the following learning materials through www.thuto.ls
Important news and announcements
Programme and module information
Course and assignment handouts
PowerPoint presentations
Tutorials dates
Tutorial notes where lecturers find it necessary
Exam schedules, assignment due dates and personalised time tables
Etc.
TUTORS AND TUTORIAL
The dates, times and locations of these tutorials will be made available to you,
together with the name, telephone number and the address of your tutor. Each
assignment will be marked by your tutor. Pay close attention to the comments your
tutor might make on your assignments as these will help in your progress. Your
tutorials are important therefore try not to skip any. It is an opportunity to meet your
tutor and your fellow students. It is also an opportunity to get the help of your tutor
and discuss any difficulties encountered on your reading.
INTRODUCTION
The set of real numbers and its properties is called the real number system. Taking the
set of real numbers as our universal set, we review its subsets and basic properties.
Using factorization principle, we easily find the lowest common multiple and the
greatest common divisor which we use in arithmetic operations of fractions and
decimals. We then use the place value information to approximate a number to a given
accuracy.
UNIT OBJECTIVES
Upon completion of this unit you will be able to:
UNIT READINGS
As you complete this unit you are required to read the following chapters/articles:
ASSIGNMENT1
Further instructions and details of this assignment will follow together with a due
date.
Q1. Determine the set of real number the given numbers belong “to”.
Q4. Write given decimals as quotients of integers and estimate numbers to a certain
accuracy.
Natural Numbers
The set Natural Numbers is the set of real numbers that are used in counting. That
is, the natural numbers are the counting numbers. Therefore, the set of natural
numbers, denoted by ℕ, is ℕ = {1,2,3 … . . }
Whole Numbers
When we include zero in the set of natural numbers, then we get the set of Whole
numbers. That is, the set of whole numbers denoted by 𝑊, is 𝑊 = {0, 1, 2, 3 … . . }
Integers
If a number is greater than zero, then it is said to be positive. If it is less than zero
then it is said to be negative. Now, the set that contains the negatives of the
Natural numbers and the Whole numbers is the set of Integers, denoted by ℤ. That
is,
ℤ = { … , −2, − 1, 0, 1, 2, … }
Among the integers, there are numbers which have 1 and themselves as the only
factors. This numbers are called the Prime numbers. That is, a prime number is a
number which is divisible by itself and 1 only. The set of prime numbers, denoted by
P, is 𝑷 = {2, 3, 5, 7 … }.
Definition
Two numbers are said to be relatively prime if their common factor is 1 only.
e.g. 3 and 4 are relatively prime but 4 and 6 are not relatively prime because beside
1, their other common factor is 2. Note that 4 is not a prime number but 3 and 4 are
relatively prime according to the above definition.
Rational Numbers
A rational number is a number that can be written in the form 𝒂/𝒃, where 𝒂 and 𝒃
are relatively prime integers. Thus, the set of rational numbers, denoted by ℚ, is a
set of numbers that can be written as a quotient of two relatively prime integers.
Note that
All integers are rational numbers since they can be written as quotient of
3
integers, for example, 3 = 1.
ℕ⊂𝑊⊂ℤ⊂ℚ
Irrational Numbers
A number which is not rational is irrational. Therefore, the set of irrational numbers,
denoted by ℚ′ , is the set of all numbers that cannot be written as a quotient of
two integers. E.g 𝜋, √3, √7
The above information on subsets of real numbers can be summarized by the following chart:
Real
Numbers
Rational Irrational
Numbers Numbers
Non Integer
Integers
Fractions
Whole
Numbers
Natural
Numbers
Commutative 𝒂 + 𝒃 = 𝒃 + 𝒂 𝒂. 𝒃 = 𝒃. 𝒂
Identity 𝒂 + 𝟎 = 𝟎 + 𝒂 = 𝒂, 𝟎is 𝒂. 𝟏 = 𝟏. 𝒂 = 𝒂, 1 is
the additive identity the multiplicative identity
Distributive 𝒂. (𝒃 + 𝒄) = 𝒂. 𝒃 + 𝒂. 𝒄
Examples
b) 5 *2 + 5 *3 = 5(2 + 3)
Solution
b) Distributive property.
PRIME FACTORIZATION
To factor a number completely is to express the number as a product of its prime
factors. This process is called prime factorization. For example, the number 30 =
2 × 3 × 5 and 36 = 2 × 2 × 3 × 3 = 22 × 32
The idea of prime factorization is used in finding the greatest common factor (GCF)
and Lowest common multiple (LCM) of numbers.
Example
Use prime factorization to find the GCF and LCM of the numbers 36 and 60.
Solution
The prime factorization of the numbers is 36 = 22 × 32 and 60 = 22 × 3 × 5.
Then, the GCF is 22 × 3 = 12 and the LCM is 22 × 32 × 5 = 180.
Applications
Sears has a sale on mechanics' tool chests every 40 days and a sale on mechanics'
tool sets every 60 days. If both are on sale today, how long will it before they are
on sale together again?
Solution
Here we are required to find the LCM of 40 and 60. Instead of multiplying 40 and
60, we just write their prime factorization and identify the unique factors that occur
in both numbers. That is, 𝟔𝟎 = 22 × 3 × 5 and 40 = 2 × 2 × 2 × 5 = 23 × 5,
the LCM is 23 × 3 × 5 = 120. Thus it will take 120 days before they are on sale
together again.
SUMMARY
In this topic, you have been introduced to the system of real numbers. The set of
real numbers, contains the set of integers, Rational numbers, Whole numbers,
Natural numbers, and Irrational numbers.
4. Prime factorization can be used to find the LCM and GCF, true or false?
We noted that the set of integers is not closed with respect to division, rather the
result may be a rational number because it is a fraction or undefined. Below we look
at the fractions and their operations.
OBJECTIVES
Upon completion of this lesson you will be able to:
1.2.1 FRACTIONS
A fraction is simply one number divided by another, for instance ¾ is 3 (called the
numerator) divided by 4 (called the denominator).
3
= 3÷4
4
If the numerator is equal to the denominator, the fraction has the exact value of
one. If the numerator is larger than the denominator, the fraction is termed an
improper fraction, and it can be expressed as a whole number and a proper
fraction. For instance:
11
= 2¾
4
where 5 is multiplied by 4 (the denominator) to give 20, and then the extra 1 in ¼ is
added to give 21. The logic of this process will (should/may) become clearer when
we look at adding fractions together.
Equivalent fractions
Two or more fractions are said to be equivalent if they can be simplified to the same
fraction made of numerator and denominator which are relatively prime.
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1 2 3 5
e.g = = =
2 4 6 10
We can find equivalent fractions by multiplication or division by a special 1.
1. Multiplication
We can find the numerator and denominator by the same non-zero number
5
e.g Find the equivalent fractions of the number 6.
Solution
5 5 2 10 5 3 15 5 4 20
= × = , × = , × =
6 6 2 12 6 3 18 6 4 24
5 10 15 20
Therefore the equivalent fractions are 6 , 12 , 18 and .
24
2. Division
We can divide the numerator and denominator by the same non-zero number.
48
e.g find equivalent fractions to 60.
Solution
48 2 24 48 3 16 48 4 12 48 6 8 48 12 4
÷ 2 = 30 , ÷ 3 = 20 , ÷ 4 = 15 , ÷ 6 = 10 , 60 ÷ 12 = 5.
60 60 60 60
48 24 16 12 8 4
The equivalent fractions to 60 are 30 , 20 , 15 , 10 , 5.
A fraction is said to be in its simplest form if it has been expressed as a fraction
whereby the numerator and the denominator are relatively prime. Every fraction
can be written in its simplest form. Of the equivalent fractions above in 2, the
4
simplest is 5.
Adding fractions
Adding fractions together is simplest if the denominator is identical. For instance:
5 8 5+8 13 1
+ = = = 4
3 3 3 3 3
Note that the denominator remains unchanged in this process. What we did was to
add five objects, each with a value of one third, to eight objects with the same
individual value.
What happens if the denominators in the two fractions are not identical? One or
both fractions have to be transformed so that they have a common (shared)
denominator. In this example, we have expressed the mixed number used in the
example above as two separate fractions, by writing the whole number as a fraction
whose denominator is 1;
1 5 1
5 = +
4 1 4
5 1 (5 × 4) 1 20 1 20 + 1 21
+ = + = + = =
1 4 (1 × 4) 4 4 4 4 4
Note that both numerator and denominator are multiplied by the same amount. So
long as you carry out exactly the same multiplication to top and bottom, the value
of a fraction remains unchanged:
15 30 (7 × 30)
= =
3 6 (7 × 6)
Subtracting fractions
The methods used to subtract fractions are the same as are used to add them.
If the denominator is the same for both fractions:
5 3 5−3 2 1
– = = =
8 8 8 8 4
If the two fractions do not have an obvious common denominator, the two
denominators are multiplied together to obtain their LCM:
12 11 (12 × 7) 11 × 6 84 − 66 18 3
– = – = = =
6 7 (6 × 7) (7 × 6) 42 42 7
Multiplying fractions
To multiply two (or more) fractions, you simply need to multiply the numerators
together, and also multiply the denominators:
4 3 (4 × 3) 12 2
( )×( ) = = =
9 6 (9 × 6) 54 9
Note that if both fractions have values smaller than one (as in this case), the answer
will be smaller than either of the original fractions.
Dividing fractions
Whilst multiplying fractions looks very much like adding or subtracting, it is not
quite so easy to see how you can divide one fraction by another:
5 3
÷
8 4
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This expression is a fraction itself, with the numerator equal to 5/8 and the
denominator equal to ¾. By analogy with multiplication, the answer should look like
this:
5 3 (5 ÷ 3)
÷ =
8 4 (8 ÷ 4)
However, it is quite likely that either the numerator or denominator will not be a
2
whole number. For instance, in this case the numerator is 1 3. The way to solve this
is to multiply the numerator by the multiplicative inverse of the denominator and
multiply as usual:
5 3 5 4 5×4 20 5
÷ = ( )×( ) = = =
8 4 8 3 8×3 24 6
1.2.2 DECIMALS
What is a Decimal Number?
Almost everyone knows what a decimal number means, but let’s review it quickly
anyway. Every decimal number has one of the digits from 0 through 9 in each of
several positions. As you move from left to right, the digits represent smaller and
smaller numbers.
For example, what is the meaning of the expression “134.526”? The digits to the left
of the decimal point (“134” in this case) represent the size of the integer (whole-
number) part of the number. Reading digits from the decimal point to the left, the
first represents the “one’s” place, the next, the “ten’s” place, then the “hundred’s”
place, and so on. We can rewrite the whole number 134 as:
1 × 100 + 3 × 10 + 4 × 1,
or better, as:
The second expression is better, since we can see the progression of the exponents
(powers of 10) as we work through the digits (You will learn more on exponents
later). For the numbers after the decimal point, the digits are divided by the powers
1 1 1
(1 × 100) + (3 × 10) + (4 × 1) + (5 × ) + (2 × ) + (6 × )
10 100 1000
Decimal places
The decimal part of the number can be thought of as a series of fractions, with the
denominator being ten for the first decimal place to the right of the separator, 100
for the second decimal place, 1000 for the third and so on.
Decimal place refers to the number of digits after the point. For instance, 0.043 is a
number written to three decimal places.
Significant figures
You may also come across the related concept of 'significant figures'. This is based
on the same ideas about precision, but extends to the entire decimal number rather
than just the decimal part. Let's look at a real-life example. Looking on Wikipedia, I
find that the Earth's orbital period (or 'siderial' year) is 365.25636042 days. This
value means that the Earth does not go once around the Sun in an exact number of
days - the journey takes about a quarter of a day longer than 365 'whole' days. To
keep our calendars in pace with this, we have leap years every four years, where we
pretend that it takes 366 years to orbit the Sun once. However, if we did this every
four years we would gradually creep ahead, which is why we miss out leap years
occasionally (e.g at the start of a century).
So the 'real' value is 365.25636042 years (where that last '2' is 0.00000002 of a day
or about one millisecond). In practical terms, we take the value of a year to be 365
days, which is using the first three digits of the value, which we also call 'expressing
the value to three significant figures'. If we want to include the adjustment for leap
years in most four year intervals, we would describe the length of a year as 365.26
years. This value has five significant figures, and better describes the length of the
year. That there is a 6 rather than a 5 or a 7 in the second decimal place implies that
we can describe the length of the year with a certainty or precision of one part in
one hundred thousand (equivalent to a clock that gains or loses five minutes in the
space of a year). If we include eight significant figures the value is 365.25636, and
the value in the last decimal place implies a precision of one part in one hundred
million - a clock that gains or loses about a third of a second over one year.
The number of decimal places and the number of significant figures are clearly
related, and both are fundamentally concerned with the precision of the value. The
number of significant figures takes into account the size of the whole-number part.
The most significant digit gives information about the size of a number. There are
steps to be followed in determining the number of significant digits or figures. These
are
1) Non zero digits are always significant
2) Any zeros between non zero digits are significant.
3) The number of significant figures in decimal numbers is best observed when
the decimal number is in fraction form.
4) Any zero before and after the first and last non-zero digit may or may not be
significant. They are place holders. The last zeros may be significant if we are
estimating or rounding off a number.
5) The most significant digit is the first non-zero digit starting from the left of a
number.
Examples
How many significant figures are in each of the following numbers?
a) 23
b) 0.06
c) 3027
d) 0.0058080
e) 56000
Solutions
a) 23 has 2 significant figures (S.f)
6
b) 0.06 = 100, hence it has 1 S.f
c) 3027 has 4 S.f
58080 5808
d) 0.0058080 = 10000000 = 1000000, has 4 S.f
e) 56000 has 2 S.f
1.3 ESTIMATIONS
We will estimate numbers using significant figures and rounding off a number.
Approximations and Rounding off
When we round a number off, we approximate it by either
a) correcting it to a given number of significant figures or
b) writing it to a given number of decimal places or
c) writing it to the nearest given place value.
In this lesson you are expected to round off a number using the three techniques above.
The estimate must be close to the number being estimated.
In rounding off a number to a certain number of S.fs, follow these guidelines
1) Start counting S.fs from the first non-zero digit on the left.
2) If the next digit is greater than or equal to 5, round up by adding 1 to the next
digit on the left. Replace the rest of the digits with zeros if your number is a
whole number. The zeros are place holders.
3) If the next digit is less than 5, round down by keeping the digit on the left
unchanged while replacing the rest of the digits with zeros if your number is a
whole number. The zeros are place holders.
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Examples
Round off the following numbers to (i) 1 S.f (ii) 2 S.fs (iii) 3 S.fs
a) 3682
b) 7998
c) 7200
d) 0.0064089
Solutions
a) (i) 4000
(ii) 3700
(iii) 3680
b) (i)8000
(ii) 8000
(iii) 8000
c) (i) 7000
(ii) 7200
(iii) 7200
d) (i) 0.006
(ii) 0.0064
(iii) 0.00641
Ordering decimals
Compare numbers from left to right. Find where the digits differ and compare which one
is smaller or greater.
Examples
Arrange the following numbers in order of size, starting with the smallest;
(a) 0.45, 0.09, 0.48, 0.032, 0.5
(b) 3.74, 4.8, 4.15, 3.08, 4.22
(c) 6, 8.34, 6.02, 8.08, 6.009
Solutions
a) 0.032, 0.09, 0.45, 0.48, 0.5
b) 3.08, 3.74, 4.15, 4.22, 4.8
c) 6, 6.009, 6.02, 8.08, 8.34
a) 35.43 + 121.9
b) 7.005 − 0.55
c) 0.075 + 3.25 + 5
Solutions
3 5 . 4 3
a) 35.43 + 121.9 = + 1 2 1 . 9 0
1 5 7 . 3 3
7 . 0 0 5
b) 7.005 − 0.55 = − 0 . 5 5 0
6 . 4 5 5
0 . 0 7 5
3 . 2 5 0
c) 0.075 + 3.25 + 5 = + 5 . 0 0 0
9 . 3 2 5
Examples
Work out the following
a) 0.03 × 1.1
b) 0.25 × 0.2
c) 27.5 × 21.5
d) 0.1404 ÷ 0.06
e) 5.39 ÷ 1.1
f) 46.32 ÷ 0.4
Solutions
3 11 33
a) 0.03 × 1.1 = 100 × 10 = 1000 = 0.033
25 2 50
b) 0.25 × 0.2 = 100 × 10 = 1000 = 0.05
275 215 59125
c) 27.5 × 21.5 = × = = 591.25
10 10 100
Types of Decimals
3. If there is 1 repeating digit, multiply the first number by 10 to form another number.
If there are 2 repeating digits, multiply the original by 100 & so on. We multiply by
these powers of 10 so that the repeating digits appear after the decimal point in
both numbers.
4. Subtract the number obtained in (1) or (2) above from a number obtained in (3).
5. Lastly solve for the unknown variable which represents the original number.
Example
Convert the following decimals into fractions;
(a) 0. 3̅
(b) 0. ̅45
̅̅̅
(c) 3.646646 …
(d) 4.235̅
Solution
a) Let 𝑛 = 0. 3̅ … … … (1)
Since there is one repeating digit, multiply (1) by 10 to get 10𝑛 = 3. 3̅ … … … (2)
1 1
Subtract (1) from (2) to get 9𝑛 = 3.0 ⟹ 𝑛 = , that is 0. 3̅ = .
3 3
b) Let 𝑥 = 0. ̅̅
45̅̅ … … … (1) Since there are two repeating digits, multiply (1) by 100 to
get 100𝑥 = 45. 45 ̅̅̅̅ … … … (2) Subtract (1) from (2) to get 99𝑥 = 45 ⟹ 𝑥 = 45 = 5
99 11
̅̅̅ = 5 .
That is, 0. ̅45 11
c) Let 𝑛 = 3.646646 … = 3. ̅̅̅̅̅
646 … … … . (1) Since there are 3 repeating digits,
multiply (1) by 1000 then 1000𝑛 = 3646. ̅̅̅̅̅
646 … … … (2). Subtract (1) from (2) to
get
3643 3643
999𝑛 = 3643 ⟹ 𝑛 = 999 . That is, 3.646646 … = 999 .
d) Let 𝑛 = 4.235̅ … … … (1) There are 2 digits before the repeating digit, so multiply (1)
by 100 to get 100𝑛 = 423. 5̅ … … … (2), Now, there is one repeating digit so we
multiply (2) by 10 to get 1000𝑛 = 4235. 5̅ … … … (3),subtract (2) from (3) to get
3812 953
900𝑛 = 3812 ⟹ 𝑛 = = .
900 225
NB:
Non-repeating infinite decimals cannot be converted to fractions because they are irrational
numbers. Terminating and repeating decimals are rational numbers.
Several common fractions have exact and simple decimal equivalents, whilst others are either
complicated or do not have exact decimal solutions.
To convert a fraction of the form i/j to a decimal, all you need to do is a long division where you
write the numerator followed by a decimal point and as many zeroes as you want. For example,
to convert the fraction 7/27 into a decimal, begin with the long division displayed below:
0, 25925
2 7)7. 00000
54
160
135
250
243
70
54
160
135
25
At each stage in the long division, the remainder will have to be less than 27, so in
this case there are only27 possible remainders: 0, 1, . . . , 26. If the remainder were
27 or more, you could have divided at least one more 27 into it.
In the case above, the remainders are 16, 25, 7, 16, and 25. But once we are doing
the division in the part of the fraction where all the decimals in the numerator are
zero, if a remainder is repeated, the entire sequence of remainders will repeat from
that point on, forever. In the case above, as soon as we hit the remainder of 16, the
next one will have to be 25 and then the next one will have to be 7, and then 16,
25,7, 16, and so on, forever. Thus, the infinite decimal expansion becomes:
7/27 = .259259259259 . . .
Every fraction will eventually go into a cycle like this. The example above cycles all
of its digits. Other fractions may have a non-repeating part followed by a part that
repeats forever. For example, the fraction1/6 = .1666666 . . .
ACTIVITY 1
1. Identify which of the following are improper fractions;
21
a) 4
83
b) 126
7
c. 6
4
d. 5
a. 14 b. 4 c. 11 d. 9 e. 3 f. 17
5. Find the Lowest Common Multiple
a. 2 and 5 b. 2 , 3 and 4 c. 40 and 180 d. 108 and 72 e. 6, 8 and 36 f. 9 and 30
6. Perform the indicated operations
12 3
a. + 17
17
7 2
b. −3
9
2 1
c. −6
3
47 3
d. − 10
50
3 2
e. (5)
5 3
f. (9) (10)
1 3
g. (1 2)
1 1
h. 2 2 × 3 5
1 4
i. ÷5
2
1
j. 1÷8
2
k. 6 5 ÷ 20
4 2
l. 3 5 ÷ 1 15
INTRODUCTION
Exponents are shorthand for repeated multiplication, just like multiplication is a
shortened form of repeated addition. This unit introduces the learner to exponents
and explores the different formats of expressing numerals which are not whole
numbers.
OBJECTIVES
Upon completion of this unit you will be able to:
UNIT READINGS
As you complete this unit you are required to read the following chapters/articles:
2.1 EXPONENTS
INTRODUCTION
When you multiply one expression with itself more than twice, the expression
becomes long. However, that expression can be abbreviated by writing it as an
expression raised to the number of times the expression is written. That is, 𝑥 ∗ 𝑥 ∗
𝑥 ∗ 𝑥 can be abbreviated and written as 𝑥 4 . The expression𝑥 4 is an exponent. In
this unit you will learn types of exponents and their properties or rules.
OBJECTIVES
Upon completion of this lesson you will be able to:
For 𝑎 ∈ 𝑅 and 𝑛 a positive integer such that 𝑎 = 𝑥 𝑛 , 𝑥 is called the 𝑛𝑡ℎ root of 𝑎.
For example, 32 = 9, so 3 is the square root of 9. Note that although(−3)2 = 9, -3
is NOT the square root of 9 because(−3)2 = 32 = 9, that is, before you take the
square root, the number must be positive. However, (−2)3 = −8 means that -2 is
the cube root of -8. If 𝑛 is an even positive integer, the 𝑛𝑡ℎ root of negative
number is a complex number which we do not cover in this module, so the 𝑛𝑡ℎ root
of negative number, if 𝑛 is even, is undefined.
𝑛
Generally, the principal 𝑛𝑡ℎ root of𝑥 denoted by √𝑥 , is
𝑛 Positive if 𝑥 is positive
√𝑥 = {Negative if 𝑥 is negative and 𝑛 is odd
The sign √ is called the radical sign, the number inside the radical sign is called
the radicand. The radical sign together with the radicand is called the radical. The
𝑛 1
principal 𝑛𝑡ℎ root can be written in exponential form as √𝑥 = 𝑥 𝑛 . From here you
note that the exponent is a rational number, so the principal 𝑛𝑡ℎ root is one of the
𝑛 𝑛 𝑚
rational exponents. Generally, for, 𝑛 ∈ 𝑍, √𝑥 𝑚 = ( √𝑥 )𝑚 = 𝑥 𝑛 . The following
rules apply for all exponents. For all quotients, division is possible only when the
divisor is different from zero.
Rules/Laws of Exponents
We can multiply or divide exponents using the above rules. We can only add and
subtract exponents with the same power and base. There is no restriction on
division and multiplication as the rules of exponents should be applied.
Examples
a) 34 + 34
b) −52
c) (−3)2
d) 𝑎2 − 𝑏 2
e) 𝑎2 𝑏 7 + 𝑎5 𝑏 3 + 3𝑏 7 𝑎2
Solutions
a) 34 + 34 = 2 × 34 = 2 × 3 × 3 × 3 × 3 = 2 × 81 = 162.
NB: 34 + 34 ≠ 38
b) −52 = −5 × 5 = −25
c) (−3)2 = −3 × −3 = 9
d) 𝑎2 − 𝑏 2 cannot be simplified further than this.
e) 𝑎2 𝑏 7 + 𝑎5 𝑏 3 + 3𝑏 7 𝑎2 = 𝑎2 𝑏 7 + 3𝑎2 𝑏 7 + 𝑎5 𝑏 3 = 4𝑎2 𝑏 7 + 𝑎5 𝑏 3
STANDARD NOTATION
Astronomers, biologists, engineers, physicists and many others encounter quantities
whose measures involve very small or very large numbers. For example, the
distance of the earth from the sun is approximately 144,000,000,000 metres and
the distance that light will travel in 1 year is 5,870,000,000,000 metres.
Note that we have expressed 65 as a product of 6.5 and a power of 10. Clearly, 6.5
is between 1 and 10. So the standard form of 65 is 6.5 × 10¹. The formal definition is
as follows:
Example
Solution:
The decimal point is shifted to the left by 2 places, and 2 appears as the positive
index in the power of 10.
Examples
For multiplication and division, the laws of exponents are used. Here are the steps
to follow:
Just like with the exponents, the numbers in standard form can only be added and
subtracted if they are of the same order or size.
Here are some steps to adding and subtracting numbers in standard form
Examples
iii) 0.0012 + 0.047 = 1.2 × 10−3 + 4.7 × 10−2 = 0.12 × 10−2 + 4.7 × 10−2 =
4.82 × 10−2
iv) 5.10802 × 103 − 0.061 = 5.10802 × 103 − 6.1 × 10−2 = 5.10802 × 103 −
0.000061 × 103 = 5.107959 × 103
Next we look at the comparison of two or more related quantities, called ratio, and
use it to divide quantities.
2.2 RATIOS
OBJECTIVES
Upon completion of this lesson you will be able to:
Definition
A ratio is the quotient 𝒂/𝒃 , where 𝒃 ≠ 𝟎 that provides comparison between the
numbers 𝒂 and 𝒃 . Units of measure found in a ratio must be convertible to the
same unit of measure.
This can easily be expressed in terms of males to females. There is really no way
other than tradition and practice or your specific purpose to determine which figure
is the numerator and which is the denominator. The interpretation of the sex ratio
is that for every male there are 1.06 females. Sometimes we express this as the
ratio per 100, 1,000, or 100,000 persons. So, we could say 106 females for every 100
males. Other ratios commonly used are:
Population Density - the number of people per square mile. In 1990 in KZN, the
population density was: 666,168 persons / 1955 sq. Kilometre = 341 persons per
square kilometre.
𝒂/𝒃 𝒂÷𝒃 𝒂 𝐭𝐨 𝒃 𝒂∶ 𝒃
In writing the ratio of two numbers, it is usually helpful to express the ratio
(fraction) in simplest form.
For example, if there are 10 boys and 5 girls, then the ratio of boys to girls can be written as
10 2
10 𝑡𝑜 5 ≡ 2 to 1 𝑜𝑟 ≡ 𝑜𝑟 10: 5 ≡ 2: 1
5 1
The order in which the ratio is written is very important as you can see from the above
example that the ratio of boys to girls is 10:5 while the ratio of girls to boys is 5:10.
BUSINESS CALCULATIONS METHODS
Page | 45
NUL-IEMS
Note
Example
a. 8/4
b. 8/12
c. 4m/60cm
Solution
a. 8/4 ≡8:4
b. 8/12 ≡ 2/3
4𝑚 4000𝑐𝑚
c. ≡ ≡ 200: 3
60𝑐𝑚 60𝑐𝑚
2.3 RATES
A rate is a quotient that compares two quantities that cannot be converted to the
same unit of measure.
A group of 8 students must decide what kind of pizza to order for lunch. They
decided on pepperoni and extra cheese. In order for each student to have 2 slices of
pizza, where each box has 8 slices, they have to order 2 pizzas.
A ratio which shows the relationship between the number of slices and students is
2:1
Another way to figure out the total slices needed is to write a ratio comparing pizza
slices to people. Write the average number of slices per 1 person as a ratio in
fraction form (2/1)
What you have just written is a special type of ratio known as a rate. This rate
shows a relationship between quantities measured with different units (slices and
people).
When the rate is per 1 unit, such as slices per 1 student, it is called a unit rate. Unit
rates are easy to spot because they are often written with the word per or with a
slash (/) (for example, slices per person or slices/person).
1. “Mama T’s Pizza; Get 2 large 1-topping pizzas for just M19.98! 1 large 1-topping
pizza is M10.99”, or
2. “Toni’s Pizza 1 large 1-topping pizza for M10.99 3 large 1-topping pizzas: only
M29.70”
Is M19.98 for 2 pizzas at Mama T’s Pizza a good deal? To determine this, you must
find the price per pizza. Find the price per pizza by finding an equivalent fraction.
Therefore the price of one pizza is M9.99 and so it is cheaper to buy 2 large pizzas
for M19.98 instead of 2 single pizzas for M10.99 each.
Exercise:
Examples of rates:
2.4 PROPORTIONS
A proportion is a mathematical statement that two ratios or two rates are equal.
Each of the four numbers of a proportion are terms: First (a) and fourth terms (d)
are extremes; Second (b) and third terms (c) are means.
In a proportion, the product of the extremes is equal to the product of the means.
So;
6 x c = 13.8 x 16
C = (13.8) x (16/6)
C = M36.8
Direct Proportions
Using the relationship 𝑦 = 𝑘𝑥, if we substitute into the above example it will be as
follows;
Let
𝑥 = weight
𝑘 = 18
y = 3 x 18 = 54
Similarly 5 kg will cost M90. So how much will 6, 8 and 10 kgs cost?
Weight in kg 1 3 5 6 8 10
Cost in M 18 54 90 ………. …….. …….
Two quantities may change in such a manner that if one quantity increases, the
other quantity decreases and vice versa. Such quantities are said to be inversely or
indirectly proportional. For example, as the number of workers increases, time
taken to finish the job decreases. Similarly, if we increase the speed, the time taken
to cover a given distance decreases.
Observe that as the speed increases, time taken to cover the same distance
decreases.
As Jessica doubles her speed by running, time taken reduces to half. As she
increases her speed to three times by cycling, time decreases to one third. Similarly,
as she increases her speed to 15 times, time decreases to one fifteenth. (Or, in
other words, the ratio by which time decreases is inverse of the ratio by which the
corresponding speed increases).
Hence, in this example, cost of a book and number of books purchased in a fixed
amount are inversely proportional. Similarly, speed of a vehicle and the time taken
to cover a fixed distance changes in inverse proportion.
Think of more such examples of pairs of quantities that vary in inverse proportion.
You may now have a look at the furniture – arranging problem, stated in the
introductory part of this chapter.
Example
Solution
Joint Variation
In a joint variation, we deal with more than two quantities, mostly 3 quantities. The
variables may all be directly proportional (𝑦 = 𝑘𝑥𝑧 ) or one may be directly
𝑘𝑥
proportional and the other indirectly proportional to others (𝑦 = 𝑧 ).
Examples
If 3 copy typists can type 9 pages in 1½hours, how many pages can 9 copy typists
type in 3 hours if they work at the same rate?
Solutions
3
𝑇𝑦𝑝𝑖𝑠𝑡: 𝑃𝑎𝑔𝑒𝑠: ℎ𝑜𝑢𝑟𝑠 ≡ 3: 9: 2 ≡ 9: 𝑥: 3 We need to find the value of 𝑥. We note
that the more typists the more the number of pages can be typed, so the number of
typists is directly proportional to the number of pages to be typed. On the other
hand, more typists will take less time to type the given number of pages, therefore,
typists and the number of hours are indirectly proportional. Hence the relationship
between the typists (T), pages (P) and hours (H) is
𝑘𝑃
𝑇 = 𝐻 , where 𝑘 is the constant of proportionality. Using the given quantities,
𝑇𝐻 1 𝑃
𝑘 = 𝑃 = 2 . ∴ 𝑇 = 2𝐻 ⟹ 𝑃 = 2𝑇𝐻 = 2 × 9 × 3 = 54. That is, 9 copy typists can
type 54 pages in 3 hours.
Therefore in general;
𝑦 = 𝑘𝑥𝑧 or 𝑦 = 𝑘𝑥⁄𝑧
SUMMARY
In this unit you have studied proportional relationships. You learnt that two equal
ratios form a proportion and how to solve a proportion.
You explored and used ratios which provides a comparison between two numbers
and rates, which compare quantities with different units. Both rates and ratios are
used extensively in shopping, sports, data analysis, banking, and other aspects of
everyday life.
ACTIVITY 2
1. Write each ratio as a fraction in lowest terms
a. 30 metres to 60 metres
b. 45 km/h to 25 km/h
c. 6 minutes to 16 minutes
d. M300 to M450
2. Write each rate as a fraction in lowest terms
a. 48 litres in 14 minutes
b. 21 females to 51 males
c. M42.20 for 36 potatoes
d. 72 correct answers out of 96
3. Find the unit rate
a. 1500 metres in 6 seconds
b. 192km per 6 litres
c. 5 cars for 20 people
d. M36 for 4kg
4. Write each proportion
a. 48 is to 32 as 3 is to 2
b. 6 adults is to 10 children as 18 adults is to 30 children
c. If 12 pens cost M4 then 33 pens will cost M11
5. Solve each of the following
3 𝑥
a. =8
6
52 4
b. =1
𝑥
18 2.4
c. =
𝑥 28
3 𝑥
d. = 3.8
4
6. A motorist averages 30km/h for 5 hours. At what average speed would he need
to drive in order to cover the same distance in 3 hours?
7. If 6 women can sweep 9 rooms in 3 hours, how many rooms can 4 women
sweep in 12 hours if they work at the same rate?
8. A stationery shop can purchase 160 books costing M8.00 each. If the price is
reduced by 25%, how many books can be purchased?
9. If 3 copy typists can type 9 pages in 1½hours, how many pages can 9 copy
typists type in 3 hours if they work at the same rate?
10. A motorist averages 30km/h for 5 hours. At what average speed would he need
to drive in order to cover the same distance in 3 hours?
11. A tourist drove 156km and her car used 24 liters of petrol. At this rate can she drive
561km on a full tank of 50 liters? How did you decide?
INTRODUCTION
This is a quick reminder of what you have already learned when you were dealing
with fractions. There are some special fractions that you have come across. We are
mainly interested in a fraction called percentage.
OBJECTIVES
Upon completion of this lesson you will be able to:
UNIT READINGS
As you complete this unit you are required to read the following chapters/articles:
When you are asked to write a number as a percentage of another number you are
being requested to write that number as a fraction out of hundred. Here are the
steps:
Examples 1:
Make a fraction: 30
120
Make a fraction: 4
5
Note that
100
o We have multiplied by . This is fine since it is multiplication by one.
100
o Some people prefer to multiply by 100% . Again there is no problem since
100% is just another way of writing 100 .
100
30
Make a fraction:
150
30 30 1
Change to percentage: 100% 100% 20% .
150 150 5
1 1
i. To find of 78 you have to work out 78 39 .
2 2
2 2
ii. of 66 66 2 22 44
3 3
15 3
iii. To find 15% of 20 you have to work out 20 20 3 .
100 20
25 1
iv. Also 25% of 64 64 64 16 . Thus 25% of 64 is equal to 16.
100 4
SIMPLE INTEREST
When there is an agreement that interest will only be charged on the principal,
and never on the interest, you have what is called a simple interest.
Example
You borrow M 1,000.00 from Mr. Secha. This time he charges simple interest at
the rate of 10% per month. How much to you owe him after two months?
Solution
Mr. Secha charges 10% . Hence at the end of the first month the interest is
Simple interest means that he will only charge you interest on the principal.
Thus interest for the second month will still be the same as first month,
COMPOUND INTEREST
There is also another way of charging interest. Instead of charging interest on the
principal, it is charged over the amount owed periodically. This type of interest is
called compounded interest.
Example
Solution:
The principal amount M 2,000.00 is invested at the rate 10% per year.
(c) Using the steps in (a) and (b) above we can show that after 4 years the amount
owed is P4 (1.1) P3 (1.1) 2000, and the amount owed after 5 years is
4
In general if the principal amount P Maluti is invested at the rate R per interval
we have:
P1 P RP 1 RP ,
P2 P1 RP1 1 R P R1 R P (1 R) 2 P
P3 P2 RP2 (1 R) 3 P
PN (1 R ) N P
When the cost price is higher than the selling price you make a loss.
Example 1
If you use M 30.00 to buy a bag of potatoes from a supermarket, and after selling
all the potatoes in the bag you have collected M 45.00 . Then find the profit that you
have made.
Solution
BUSINESS CALCULATIONS METHODS
Page | 57
NUL-IEMS
The cost price of the potatoes is M30, the selling price is M45. Then the profit made
is M45-M30=M15.
Example 2
In Example 1 above, suppose that after spending M 30.00 to get a bag of potatoes
from the supermarket, you find that the demand for potatoes is not as good as you
had thought. You then decide to sell at a lower price. After selling all the potatoes
you have raised only M 20.00 . How much profit or loss have you made?
Solution:
Example 1
Thabo pays M 40.00 for a box of apples and M 30.00 for a box of bananas. After
selling all the bananas and apples at the market prices he finds that he has made
M 50.00 from the apples and M 39.00 from the bananas. He wants to know which
product was more profitable so that he can invest the money he has made wisely.
In percentage form
Even though the profit for apple seems to be more, it is the bananas that are making
more profit since Thabo has made 30 % profit. This means that had Thabo invested
M 100.00 on oranges he would have made M 30.00 profit; but for apples the
investment of M 100.00 would make M 25.00 . Therefore it would be wise for Thabo
to choose bananas.
DISCOUNT
Sometimes a product is bought at a reduced price, which is a certain percentage of
the original price for one reason or the other. This reduction percentage is called a
discount. Instead of selling a product at a reduced price, the retailor may increase the
cost price of an item by a certain percentage, this becomes the mark up price.
Examples
Solution
When you buy in this way you are buying on credit, which is also called hire
purchase.
Example
Thato has just bought herself a new car on hire purchase. She paid a deposit of
M 30,000.00 , and she will be paying monthly installments of M 3,500.00 over a
period of five years. Find out how much more she is going to pay if the cash price
of car was M 150,000.00 .
Solution
She is going to pay M 90,000.00 more than if she had paid cash.
3.3 TAX
3.3.1 VAT
The Value Added Tax (VAT) is the amount that is added to the bills for service
and purchases. Each time you buy goods the retailer has to charge you some
amount that goes to the government. This is one of the ways that most
governments around the world collect money. Some countries have the General
Sales Tax (GST) policy in place of the VAT.
Example 1
You are about to buy goods to the value of M 345.00 excluding VAT. Find the
total amount you are going to pay if VAT is 10% .
Solution
10 1
The VAT is 10% of M 345.00 M 345.00 M 345.00 M 34.50 .
100 10
3.3.2 PAYE
Another way by which the state collects money from its people is to charge them
on the money that they make. People who get a salary pay some tax on it.
People who make money by other means, for example business, are also
expected to pay tax. The money that you make over a certain period, for
example profit or salary per month, is called your income over that period. The
tax charged on this is called income tax. Governments have different policies on
how to charge this tax but all government charge income tax. This tax is also
known as Pay as You Earn (PAYE), since it is calculated as a percentage of the
amount of money that you get. The common practice is that some amount is put
aside without being charged tax, this is called the taxable free income. Then the
remainder, called the taxable income, is charged a certain percentage.
Example 1
You receive an offer of a job from a company in another country. The salary
package that you will be paidis M 180,000.00 per year (annually). The policy
of that country on income tax is that M 24,000.00 istax free and the taxable
income is taxed at 50% . Find the tax that you will per each month, and your
monthly take home salary.
Solution
The salary before tax is called the gross salary and the salary after tax is called
the net salary.
Example 2
Solution
a) The person who earns M30, 000 per annum does not pay tax as he/she is
within the tax free range.
b) 𝑀4,500 per month equals 𝑀54,000 per annum. The 𝑡𝑎𝑥𝑎𝑏𝑙𝑒 𝑖𝑛𝑐𝑜𝑚𝑒 =
𝑀54000 − 𝑀33,660 = 𝑀20,340. This amount is to be charged tax at
20%. That is 𝑀20,340 ∗ 20% = 𝑀4,068.00 is the PAYE paid per annum.
c) From M150, 000, you subtract the upper value in the range of 20%, i.e
150,000 − 56,964 = 93,036. Then 20% of 𝑀56,964 = 𝑀11,392.80 and
30% of 𝑀93,036 = 𝑀27,910.80. The total tax will be 𝑀11,392.80 +
𝑀27,910.80 = 𝑀39,303.60. But M56, 964 includes the tax free amount,
M6,732 will be subtracted from the sum of tax. That is, 𝑀39,303.60 −
𝑀6, 732 = 𝑀32,571.60. Hence the person who earns M150, 000 will pay
M32, 571.60 as tax.
Another approach of solving this can be:
𝑀150, 000 – 𝑀56,964 = 𝑀93,036. This amount is above M56, 964,
therefore needs to be charged at 30%. Then 30% of 𝑀93,036 𝑖𝑠
𝑀27, 910.80. Removing the tax free amount from M56, 964 before
charging 20% tax, you get that 𝑀56,964 − 𝑀33,660 = 𝑀23, 304. Then
20% 𝑜𝑓 𝑀23, 304 𝑖𝑠 𝑀4, 660.80. Hence the total tax will be
𝑀27, 910.80 + 𝑀4, 660.80 = 𝑀32, 571.60
SUMMARY
You have now learnt that
When a principal amount P is invested at the rate R per interval over a
period of T intervals
𝑆𝑖𝑚𝑝𝑙𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = 𝑃𝑅𝑇 and Total Amount A P PRT P1 RT .
Note that compound amount is a sequence of payments, next you will learn how to use
sequences that have a specified pattern to have future information given the current and
initial conditions. These sequences are referred to as Progressions.
ACTIVITY 3
Work out the following:
1) Hloni borrows M 4,500.00 from a bank for 3 years at 10.8% compounded annually.
Calculate:
a) The total amount he owes after 3 years.
b) The interest he must pay
2) Tumelo wants to borrow M 35,000.00 for 3 years. She can borrow from a bank at a
simple interest of 11% per annum or from a credit company at 8% compounded
annually. Work out the difference between the amounts of interest she would have
to pay the bank and the credit company.
3) Copy and complete the following table to compare two kinds of interest.
Principal Rate Period Total Amount Compound
(annually) in years (Simple Interest) Amount
(a) M 100 . 00 5% 2
(b) M 9,000 .00 10% 5
(c) M 5,000.00 12.5% 4
(d) M 250.00 7.5% 1
(e) M 75 . 00 5% 1
4) What percentage of
(a) 25 is 5 (b) 200 is 60 (c) 90 is 18
8) Tsepang has 36 marbles in his pocket. This is 60% of the total. How many marbles does he
have altogether?
9) Thabo saves M 50.00 out her wages every week. This is 25 % of her total weekly wage.
How much does she earn per week?
10) Big Apple Computer Center employs 120 computer programmers. This company has 400
employees. What percentage of the employees are programmers?
11) A bottle contains 2 liters of orange juice. Susan drinks 400 milliliters. What percentage is
left?
12) A company made 450 machines. If 8% were found to be faulty, how many were in good
condition?
13) Bokang spent M 50.00 on a T-Shirt. This was 20% of the money she had saved. How much
money
did she save?
14) Lebohang bought some shirts from a wholesaler for M 75.00 each. He sold them in his
shop and made 30 % profit. What is the selling price of each shirt?
15) Nthabiseng bought a Hi-fi for M 1,750.00 and later sold it at a loss of 8.4 % . How much did
she sell the Hi-fi for?
16) John bought a car for M 64,000.00 and sold it to his cousin for M 48,320.00 . Calculate his
perentage loss.
17) A shop bought a fridge for M 2,100.00 and sold it to a customer for M 2,800.00 . Find the
perentage profit made by the shop. Give your answer to 1 decimal place.
18) Limpho bought a bicycle for M 2790.00 . She later sold it to her friend for M1900.00 .
Calculate her percentage loss, correct to 1 decimal place.
19) Find the total cost of buying on credit and the interest for the following.
a) The cash price of a television is M 7,000.00 . It can be bought with a deposit of 20%
and 12 monthly payments of M 500.00 .
b) A cassette player costs M 2,500.00 . The credit requires a deposit of 15% and 12 monthly
installments of M 210.00 .
c) A bicycle that costs M 3,500.00 can be on credit with a deposit of 25% followed by 24
monthly installments of M150.00 .
20) The price of a computer is plus VAT at . Find the full cost, inclusive of VAT.
INTRODUCTION
In this unit, we learn about the formulae that can be used to solve problems that follow
a similar pattern (sequence). This will help us to find their values at a specified period or
time. As a result we can decide whether to increase or decrease their values. For an
example, we can determine whether the salary increment of IEMS staff is sustainable or
not by use of arithmetic (if the increment amount is a constant) or geometric
progression (if the increment is in percentage form). We can also determine the values
of assets such as printers over a given period and thus decide when to sell them when
they are still valuable. We will also learn different strategies of obtaining the number of
possible opportunities in passing a test, arranging items or selecting items given some
restrictions.
OBJECTIVES
Upon completion of this unit you will be able to:
1. Calculate the 𝒏th term and the sum of the first 𝑛 terms of a progression (A.P
or G.P).
2. Differentiate permutation questions to combination question.
READINGS
As you complete this unit you are required to read the following chapters/articles:
4.1 PROGRESSIONS
In this unit, you will learn the Progressions, followed by Counting strategies and conclude the
unit by Binomial theorem.
There are only four formulae that you need to know and use in this topic. These are:
4.1.1 SEQUENCES
Definition
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Examples:
a) 2, 3, 5, 7…
b) 3, 6, 9, 12…
c) 1, 3, 9, 27…
Solution
a) In this sequence, the first term is 2, except with the first and the second term,
the next term is obtained by adding 2 to the previous term. The formula is a1 2,
an 2n 1 where n 2, n
b) This is the sequence of the multiples of 3, the next term is obtained from the
previous term by adding 3, so the formula is a n 3n , n 1, n .
n1
c) The formula of the sequence is an 3 , n 1 .
ACTIVITY 1.1.1
a) 5, -1, -7,…
1 1 1 1
c) 1, , , , ,...
3 9 27 81
2n
a) a n
n 1
2
is an A.P. where d is the fixed number and a1 is the first term. This fixed number is
called the common difference.
a n a1 (n 1)d
n
Sn 2a1 (n 1)d n a1 a n
2 2
Examples
1. Determine whether the following sequences are A.P or not. If the sequence is an
A.P, find the n th term formula.
a) -1, 1, 3, 5, …
b) 4, 8, 16, 32, …
7 9
c) 3, ,4, ,...
2 2
b) n 8, a1 4, d 8
c) n 15, a1 2 , d 5
1
c) 1 + 2 + 3 + 4 +… + 112
4. Applications:
MSG Furniture Company had sales of M1, 500, 000 during its first year of
operation. If the sales increased by M160, 000 per year thereafter, find MSG’s
sales in the fifth year and its total sales over the first five years of operation.
Solution
1.
(n 5)
c) It is an A.P with a n
2
2.
a) a9 8 8 5 48
b) a8 4 7 8 52
1
c) a15 14 5 69.5
2
3.
20
a) Here a1 5, d 6 so S 20 2 5 (20 1) 6 1040
2
39
Then S 39 (22 98) 2340 . We used second part of the sum formula.
2
c) Exercise.
is a G.P where a1 is the first term and r is the fixed number. This fixed number is
called the common ratio.
an a1r n1
a1 (1 r n )
Sn ,r 1
1 r
Note that 1 r (1 r ) .
n n
The G.P problems are solved in a similar way as the A.P problems. Solve the
problems in the following activity as were done in the A.P example.
ACTIVITY 4.1
1. Determine whether the following sequences are G.P or not. If the sequence is
a G.P, find the n th term formula.
a) 4, 8, 16, 32, …
b) -1, 1, 3, 5, …
c) 10, 10 , 10 , 10 ,...
3 9 27
a) n 20, a1 3, r 1
b) n 23, a1 0.1, r 2
c) n 6, a1 2, r 3
a) n 6, a1 3, r 4
b) n 5, a1 3, r 2
1 1 1
c) S10 ,1 ...
2 4 8
4. Applications:
PCS had sales of M2, 500, 000 in its first year of operation. If thereafter, the sales
increased by 12% of the previous year, find the sales of the company in the fifth year
and the total sales over the first 5 years of operation.
Hint:
The counting strategies involve the selection and arrangement of items. This and
more follows in the next topic.
Examples
c) the first letter must be a vowel and the first digit cannot be a 0 and repetition
Solution
26 × 25 × 10 × 9 × 8 = 468,000
c) There are 5 vowels, so if the first letter is the vowels, there are 5
vowels to choose from in selecting the letter. For the second letter,
we choose from the remaining 25 letters. Since the 1st digit cannot be
a zero, it can be chosen from the remaining 9 digits and the 2 nd digit
from 9 digits including zero. The 3rd and last digit can be chosen from
4.2.2 PERMUTATION
Definition
Example
Solution
From the counting principle, we can look at these as 8 distinct experiments, thus,
the 8 books can be arranged in 8 × 7 × 6 × 5 × 4 × 3 × 2 × 1 = 8! = ways in a
book shelf.
Definition
The number of permutations possible when 𝑟 objects are selected from 𝑛 objects is
found by the permutation formula
𝑛!
𝑛𝑃𝑟 = 𝑃(𝑛, 𝑟) =
(𝑛 − 𝑟)!
Examples
1. In how many ways can 5 people boarding a bus be seated if the bus has 8 vacant
seats?
3. In how many ways can an investor select 4 mutual funds for his investment
portfolio from a recommended list of 8 mutual funds?
Solution
3. One can invest in a certain stock after checking return and other
aspects. Therefore, before selection he has to arrange them
according to a certain criteria, the most preferred first and the least
preferred last. Thus, the investor can select the mutual funds in
8! 8!
𝑃(8,4) = (8−4)! = 4! = 1680 ways.
Examples
Find the number of distinguishable permutations that can be formed from the
letters of the word COMMITTEE.
Solution
There are 9 letters that form the word committee and there are 1-c, 1-o, 2-m, 1-
9! 9!
i, 2-t,2-e. Hence there are 1!1!2!1!2!2! = 2!2!2! = 45,360 distinguishable
permutations of the word committee.
The word “and” suggests that the arrangement are done at the same time to
make one item, hence the two experiments need to be multiplied. They are
actually independent.
Examples:
In a village there are 5 eligible bachelors and 3 ladies ready for marriage. In how
many ways can
(a) They be sited on two benches if the bachelors and the ladies are not to sit on
the same bench.
(b) Their marriages be arranged assuming no polygamy.
Solution
(a) Bachelors can be seated in 5! ways and ladies can be seated in 3! ways. To
satisfy the given conditions, they can be seated in 5! × 3! = 720 ways.
(b) Since there are more bachelors than ladies, we first choose 3 bachelors from
5! 5!
5 and they can be chosen in P(5,3) = (5−3)! = 2! = 60ways. Hence their
marriages can be arranged in P(5,3) × P(3,3) = 360 ways.
4.2.3 COMBINATION
Definition
Example
How many subsets of 2 elements can be formed from the set containing 𝐴, 𝐵 and
𝐶?
Solution
The element 𝐴 can be paired with 𝐵 or C. The element 𝐵 can be paired with 𝐶.
Therefore, the subsets are {𝐴, 𝐵}, {𝐴, 𝐶} and {𝐵, 𝐶}.
We now define the formula that is used to determine the number of subsets
without actually listing them. That is, we determine the number of ways of
forming the subsets of size 𝑟 taken from 𝑛 objects without listing the subsets.
Definition
For 𝑛 > 0 and 𝑟 > 0 with 𝑟 ≤ 𝑛, let 𝐶(𝑛, 𝑟) denote the number of combinations
of 𝑟 objects taken from 𝑛 objects. Then,
𝑛!
𝐶(𝑛, 𝑟) =
𝑟! (𝑛 − 𝑟)!
𝑛
The other notations for combination are ( ) , 𝑛𝐶𝑟 and 𝑛𝐶𝑟
𝑟
Example
Solution
7! 7!
1. 𝐶(7,4) = 4!(7−4)! = 4!3! = 35 .Therefore the possible number of committees is
35.
12!
2. 𝐶(12,6) = 6!6! = 924. The quorum can be formed in 924 ways.
The word “and” suggests that the choosing (combinations) are done at the same
time to make one item, hence the two experiments need to be multiplied. They are
actually independent.
Example
Suppose the investor has decided to purchase shares in the stocks of 2 mine
companies, 2 energy development companies and 2 electronics companies. In how
many ways can the investor select the group of six companies for the investment
from the recommended list of 5 mine companies, 3 energy development companies
and 4 electronics companies?
Solution
The mine companies can be selected in 𝐶(5,2) ways, the energy development
companies in 𝐶(3,2) ways and the electronics companies in 𝐶(4,2) ways. Thus,
using the generalised counting principle, there are 𝐶(5,2) × 𝐶(3,2) × 𝐶(4,2) =
180 ways of selecting the group of 6 companies for investment.
Furthermore, there may be other conditions that suggest the minimum or the
maximum of a task. In such cases, the most commonly used words are at least and
at most respectively.
Example
Find the number of ways in which a committee of 5 can be chosen from 5 men and
6 women if it must contain
Solution
(a) There are 5 men and 6 women, making a total of 11 people. Then, a
committee of 5 regardless of gender can be selected in 𝐶(11,5) = 462
ways.
(b) If the committee is to have exactly 3 men and 2 women, then it will be
selected in 𝐶(5,3) × 𝐶(6,2) = 10 × 15 = 150 ways.
(c) At least 2 men means 2 men or more, so you can find the different
combinations by using the table as follows:
No. of men No. of Women
2 3
3 2
4 1
5 0
That means we can form the committee using the first combination
𝐶(5,2) × 𝐶(6,3) or the second combination 𝐶(5,3) × 𝐶(6,2) or third or
fourth. The number of ways is the sum of the 4 combinations, i.e
𝐶(5,2) × 𝐶(6,3) + 𝐶(5,3) × 𝐶(6,2) + 𝐶(5,4) × 𝐶(6,1) + 𝐶(5,5) ×
𝐶(6,0) .
(d) At most 2 women means 2 women or less, so the committee can be
selected in 𝐶(5,3) × 𝐶(6,2) + 𝐶(5,4) × 𝐶(6,1) + 𝐶(5,5) × 𝐶(6,0) ways.
SUMMARY
So far, you learnt the Progressions, followed by Counting strategies
1. There are only four formulae that you need to know and use in progressions. These
are:
Next you will learn how to find particular terms of the expansion using the expansion
of two terms, called binomial.
ACTIVITY 4.2
5. How many distinct permutations are there of the letters of the word
(a) anna (b) mmamathe (c) mississipi
(d) Maseru (e) possibilities (f) committee
6. In how many ways can 4 boys and 3 girls be seated in a row of seven seats if
a. they may sit in any order?
b. the boys and the girls must alternate?
7. In a premier league having 16 teams, how many football games are played if
each team plays each of the other teams twice?
9. How many different sums of money can be formed from 5lisente, 10lisente,
20lisente, 50lisente, 1Loti, 2Maloti and 5Maloti if
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(a) two coins are used, (b) at least three coins are used?
OBJECTIVES
Upon completion of this lesson you will:
BINOMIAL THEOREM
The theorem states that, for 𝑛 > 0 and 𝑟 > 0 with 𝑟 ≤ 𝑛,
𝑛 𝑛 𝑛 𝑛 𝑛
(𝑎 + 𝑏)𝑛 = ( ) 𝑎𝑛 + ( ) 𝑎𝑛−1 𝑏 + ( ) 𝑎𝑛−2 𝑏 2 + ⋯ + ( ) 𝑎𝑏 𝑛−1 + ( ) 𝑏 𝑛
0 1 2 𝑛−1 𝑛
𝑛 𝑛 𝑛!
The term ( ) is the binomial coefficient. Recall that ( ) = 𝑟!(𝑛−𝑟)!
𝑟 𝑟
𝑛
The 𝒌𝒕𝒉 term of the binomial expansion of (𝑎 + 𝑏)𝑛 is( ) 𝑎𝑛−𝑘+1 𝑏 𝑘−1 .
𝑘−1
The constant term is the term where the exponent or power of the variable in
the expansion is zero. If the binomial expression involves more than one
variable, there will be no constant term.
NB:
Before you use binomial theorem, make sure that the expansion is in the form
(𝑎 + 𝑏)𝑛 .
Examples
Solutions
3 3 3 3
1. a)(𝑎 + 𝑏)3 = ( ) 𝑎3 + ( ) 𝑎3−1 𝑏 + ( ) 𝑎3−2 𝑏 2 + ( ) 𝑎3−3 𝑏 3 = 𝑎3 + 3𝑎2 𝑏 +
0 1 2 3
3𝑎𝑏 2 + 𝑏 3
4 4
b)(3𝑥 − 1)4 = (3𝑥 + (−1))4 = ( ) (3𝑥)4 + ( ) (3𝑥)4−1 (−1) +
0 1
4 (3𝑥)4−2 (−1)2 4 (3𝑥)4−3 (−1)3 4 (3𝑥)4−4 (−1)4
( ) +( ) +( ) = (3𝑥)4 +
2 3 4
4(3𝑥)3 (−1) + 6(3𝑥)2 (−1)2 + 4(3𝑥)1 (−1)3 + (−1)4 = (3𝑥)4 − 4(3𝑥)3 +
54𝑥 2 − 12𝑥 + 1 = 81𝑥 4 − 108𝑥 3 + 54𝑥 2 − 12𝑥 + 1
20 20 𝑦 20 𝑦 2
2. (2𝑥 + 𝑦2)20 = ( ) (2𝑥)20 + ( ) (2𝑥)20−1 ( 2) + ( ) (2𝑥)20−2 ( 2) + ⋯ =
0 1 2
𝑦 𝑦 2 𝑦
(2𝑥)20 + 20(2𝑥)19 ( ) + 190(2𝑥)18 ( ) + ⋯ = 220 𝑥 20 + 20 × 219 𝑥19 ( ) +
2 2 2
𝑦 2
190 ∗ 218 𝑥18 ( 2) + ⋯ = 220 𝑥 20 + 20 × 219 𝑥18 𝑦 + 190 × 218 𝑥16 𝑦 2 + ⋯
12 12−10 10 12 12
3.(3 + 𝑦)12 = ⋯ + ( )3 𝑦 + ( ) 312−11 𝑦11 + ( ) 312−12 𝑦 12 = ⋯ +
10 11 12
66 × 32 𝑦10 + 12 × 3𝑦11 + 𝑦12 = ⋯ + 594𝑦 10 + 36𝑦 11 + 𝑦12
12
4. Using the 𝑘 𝑡ℎ term formula, the 𝑘 𝑡ℎ term is( ) (3𝑥)12−𝑘+1 (𝑥2)𝑘−1 =
𝑘−1
12 2𝑘−1 12 2𝑘−1 12
( ) (3𝑥)13−𝑘 𝑥 𝑘−1 = ( ) 313−𝑘 𝑥13−𝑘 𝑥 𝑘−1 = ( ) 313−𝑘 𝑥14−2𝑘 2𝑘−1 .
𝑘−1 𝑘−1 𝑘−1
a) In the fifth term, 𝑘 = 5, so using the term obtained above, we have
12 12
( ) 313−5 𝑥14−2∗5 25−1 = ( ) 38 𝑥 4 24 = 495 × 38 × 16𝑥 4 = 7920 × 38 𝑥 4 .
5−1 4
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b) For the constant term, we need to find it’s position in the expansion, that is, we
need to find the value of 𝑘. Recall that, in the constant term, the value of the
exponent is zero, so 14 − 2𝑘 = 0 ⟹ 𝑘 = 7. That means that the constant term is
12
the 7𝑡ℎ term. Therefore the constant term is ( ) 313−7 𝑥14−2∗7 27−1 =
7−1
12
( ) 36 𝑥 0 26 = 924 ∗ 36 ∗ 26 = 924 ∗ 729 ∗ 64.
6
7 7
c) For the term involving 𝑥 7 , 14 − 2𝑘 = 7 ⟹ 𝑘 = 2. There is no position such as 2,
2
hence in the expansion of (3𝑥 + 𝑥)12, there is no term that involves 𝑥 7 .
2
d) In (3𝑥 + )12 , the term that involves 𝑥 6 , is in the 4𝑡ℎ position, so we are going to
𝑥
2 12 12 2
write 1st term to 4th term. That is, (3𝑥 + )12 = ( ) (3𝑥)12 + ( ) (3𝑥)12−1 ( ) +
𝑥 0 1 𝑥
12 2 2 12 2 3 2
( ) (3𝑥)12−2 (𝑥) + ( ) (3𝑥)12−3 (𝑥) + ⋯ = (3𝑥)12 + 12 ∗ (3𝑥)11 (𝑥) + 66 ∗
2 3
2 2 2 3
(3𝑥)10 ( ) + 220 ∗ (3𝑥)9 ( ) + ⋯ = 312 𝑥12 + 24 ∗ 311 𝑥10 + 264 ∗ 310 𝑥 8 +
𝑥 𝑥
1760 ∗ 39 ∗ 𝑥 6 + ⋯
o A single term of the binomial expansion can be obtained using the 𝒌𝒕𝒉 term
𝑛
formula( ) 𝑎𝑛−𝑘+1 𝑏 𝑘−1
𝑘−1
We will next apply counting strategies concepts in statistics and in determining the
probability of an event.
ACTIVITY 4.3
1. Expand;
a. (𝑥 2 − 1)4
b. (𝑥 3 − 1/𝑥 2 )3
2. Find the coefficients of x, 𝑥 2 and 𝑥 3 in (𝑥 + 2)5
3. Find the coefficients of x, 𝑥 2 and 𝑥 4 in (𝑥 − 2)7
4. Find the exact value of (1 − 0.1)3 without the use of a calculator. Verify your answer
with a calculator.
6
5. For the expansion of the expression given in x 22
x
a. Write down the constant term.
6
b. Find the term involving x .
c. Write down the fifth term.
INTRODUCTION
We begin the unit with some basic data analysis. Since Statistics involves the collection
and interpretation of data, we must first know how to understand, display and
summarise large amounts of quantitative information, before undertaking a more
sophisticated analysis.
Statistical analysis of quantitative data is important throughout the pure and social
sciences. Probability is the language we use to model uncertainty. The data and
examples we looked at in statistics are the outcomes of scientific experiments. However,
those outcomes could be different—many different kinds of uncertainty and
randomness are part of the mechanism which leads to the actual data we see. If we are
to develop a proper understanding of such experimental results, we need to be able to
understand the randomness underlying them. In this unit, we will look at the
fundamentals of probability theory, which we can then use in the later chapters for
modelling the outcomes of experiments, such as those to be discussed in the statistics
section.
OBJECTIVES
Upon completion of this unit you will be able to:
READINGS
As you complete this unit you are required to read the following chapters/articles:
5.1 STATISTICS
INTRODUCTION
A set of data on its own is very hard to interpret. There are lots of information
contained in the data, but it is hard to see. We need ways of understanding
important features of the data, and to summarise it in meaningful ways.
The use of graphs and summary statistics for understanding data is an important
first step in the undertaking of any statistical analysis. For example, it is useful for
understanding the main features of the data, for detecting outliers, and data which
has been recorded incorrectly. Outliers are extreme observations which do not
appear to be consistent with the rest of the data. The presence of outliers can
seriously distort some of the more formal statistical techniques, and so preliminary
detection and correction or accommodation of such observations is crucial, before
further analysis takes place.
For qualitative and discrete quantitative data, we often use all of the observed
values as our categories. However, if there are a large number of different
observations, consecutive observations may be grouped together to form combined
categories.
Discrete variable: If a variable can assume only specific values (e.g. integers), it is
called a discrete variable. E.g Number of children in a family.
Continuous variable: If a variable can assume any values between a given limits, it
called a continuous variable. Example: Season rainfall, measurement of height or
weight.
For large sets of data, it is usefully to represent the data in summarized form. This
can be done by grouping data into smaller sets, whose measurements fall within
certain limits. This data that falls between given limits is called a class. The limits are
called class limits.
Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Rain 10.1 11.3 7.5 9.5 11.5 12.7 8.3 7.2 11.6 12.1 11.2 10.8
Date 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Rain 10.9 10.6 12.8 7.5 13.2 9.5 8.4 9.2 9.5
The numbers 7.5, 10.5, and 13.5 are class limits. The number of measurements that
fall in each class are indicated. These are called the frequency.
The number that is half way between the class limits is called the class midpoint. In
the above example 9 is the class midpoint for 7.5-10.5 and 12 is the class midpoint
for 10.5-13.5. To find the class midpoint we add the class limits and then divide by
2.
7.5 10 .5 18 9
E.g. The class midpoint for 7.5-10.5 is
2 2
The class midpoint is also called the class mark and the class limit is called the class
boundary.
The data above can be arranged starting with the smallest measurement as shown
below
The number 9.5 appears more times than the other numbers and is called the
mode. There are 21 measurements, thus the 11th measurement is half way of the
list. The 11th measurement is 10.6. It is called the median.
Histograms
Once the frequency table has been constructed, pictorial representation can be
considered. For most continuous data sets, the best diagram to use is a histogram.
In this the classification intervals are represented to scale on the abscissa (𝑥 −axis)
of a graph and rectangles are drawn on this base with their areas proportional to
the frequencies. Hence the ordinate (𝑦 −axis) is frequency per unit class interval (or
more commonly, relative frequency — see below). Note that the heights of the
rectangles will be proportional to the frequencies if and only if class intervals of
equal width are used.
The 𝑦 −axis values are chosen so that the area of each rectangle is the proportion
of observations falling in that bin. Consider the first bin (0–39). The proportion of
observations falling into this bin is 11/20 (from the frequency table). The area of our
rectangle should, therefore, be 11/20. Since the rectangle has a base of 40, the
height of the rectangle must be 11=(20_40)=0:014. In general therefore, we
calculate the bin height as follows:
When the data are discrete and the frequencies refer to individual values, we
display them graphically using a bar chart with heights of bars representing
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frequencies, or a frequency polygon in which only the tops of the bars are marked,
and then these points are joined by straight lines. Bar charts are drawn with a gap
between neighbouring bars so that they are easily distinguished from histograms.
Frequency polygons are particularly useful for comparing two or more sets of data.
Example
From the following data collected, the following bar chart and subsequent
frequency polygon may be plotted.
Frequency 3 1 5 2 3 6 11 4 4 1
Number of seeds 85 86 87 88 89 90 91 92 93 94
A third method which is sometimes used for qualitative data is called a pie chart.
Here, a circle is divided into sectors whose areas, and hence angles are proportional
to the frequencies in the different categories. Pie charts should generally not be
used for quantitative data – a bar chart or frequency polygon is almost always to be
preferred.
Whatever the form of the graph, it should be clearly labelled on each axis and a fully
descriptive title should be given, together with the number of observations on
which the graph is based.
It is the most used measure of central tendency. Easy to compute, takes all
measurements into consideration. It is reliable. This is the location measure often
used when talking about the average of a set of observations.
However, the term “average” should be avoided, as all measures of location are
different kinds of averages of the data.
S = {1, 2, 3, 4, 5, 6, 7, 8, 9}
𝑥̅ = (1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9)/9 = 5
Median
The sample median is the middle observation when the data are ranked in
increasing order. We will denote the ranked observations x(1);x(2); : : : ;x(n). If there
are an even number of observations, there is no middle number, and so the median
is defined to be the sample mean of the middle two observations.
Example 1
S = {1, 6, 3, 8, 2, 4, 9}
If we want to find the median, we need to find the value, 𝑥, where half the values
are above 𝑥 and half the values are below 𝑥. Begin by ordering the list:
S = {1, 2, 3, 4, 6, 8, 9}
Notice that the value 4 has three scores below it and three scores above it.
Therefore, the median, in this example, is 4. In some instances, it is quite possible
that the value of the median will not be one of your observed values.
Example 2
S = {1, 2, 3, 4, 6, 8, 9, 12}
Since the set is already ordered, we can skip that step, but if you notice, we don’t
have just one value in the middle of the list. Instead, we have two values, namely 4
and 6. Therefore, the median can be any number between 4 and 6. In most cases,
the average of the two numbers is reported. So, the median for this set of integers
is
(4+6)/2 = 5
Mode
The mode is the value which occurs with the greatest frequency. Consequently, it
only really makes sense to calculate or use it with discrete data, or for continuous
data with small grouping intervals and large sample sizes. For discrete data with
possible outcomes y1; : : : ;yk occurring with frequencies f1; : : : ; fk, we may define
the sample mode to be
Less important and ambiguous. There is possibility that different classes can have
the same highest frequency, and hence yield modal values.
Example
R = {2, 8, 1, 9, 5, 2, 7, 2, 7, 9, 4, 7, 1, 5, 2}
The number that appears the most is the number 2. It appears four times.
Therefore, the mode for the set R is the number 2. Note that if the number 7 had
appeared one more time, it would have been present four times as well. In this
case, we would have had a bimodal distribution, with 2 and 7 as the modes.
Any class midpoint can be used to work out the mean as follows
sum of (d i f i )
mean Assumed mean C
N
X i Assumed mean
di
C
Range
This is the difference between the largest and smallest observation. So, for our
ranked data, we have;
This measure can sometimes be useful for comparing the variability of samples of
the same size, but it is not very robust, and is affected by sample size (the larger the
sample, the bigger the range), so it is not a fixed characteristic of the population,
and cannot be used to compare variability of different sized samples.
It is the average squared distance of the observations from their mean value. The
second formula is easier to calculate with. The divisor is 𝑛 − 1 rather than 𝑛 in order
to correct for the bias which occurs because we are measuring deviations from the
sample mean rather than the “true” mean of the population we are sampling from
Example
Find the variance and standard deviation for the following set of test scores:
Since we are measuring dispersion about the mean, we will need to find the mean
for this data set.
75+80+82+87+96
𝜇= = 84
5
Therefore, the variance for this set of test scores is 50.8. To get the standard
deviation, denoted by σ, simply take the square root of the variance.
𝜎 = √𝜎 2 = √50.8 = 7.1274118
The variance and standard deviation are generally the most used quantities to
report the measure of dispersion. However, there are other quantities that can also
be reported.
SUMMARY
As we have already remarked, the sample mean is by far the most important
measure of location, primarily due to its attractive mathematical properties (for
example, the sample mean of the sum of two equal length columns of data is just
the sum of the sample means of the two columns). When the distribution of the
data is roughly symmetric, the three measures will be very close to each other
anyway. However, if the distribution is much skewed, there may be a considerable
difference, and all three measures could be useful in understanding the data.
Using the plots described in this section, we can gain an empirical understanding
of the important features of the distribution of the data.
5.2 – PROBABILITY
INTRODUCTION
Probability is the language we use to model uncertainty. The data and examples we
looked at in the last chapter were the outcomes of scientific experiments. However,
those outcomes could have been different—many different kinds of uncertainty and
randomness were part of the mechanism which led to the actual data we saw. If we
are to develop a proper understanding of such experimental results, we need to be
able to understand the randomness underlying them. In this chapter, we will look at
the fundamentals of probability theory, which we can then use in the later chapters
for modelling the outcomes of experiments, such as those discussed in the previous
unit.
OBJECTIVES
Upon completion of this lesson you will be able to:
DEFINITION OF TERMS
An experiment is a process that, when performed, results in one and only one
outcome of many observations.
e.g 1. Tossing a coin results in a head or tail. Tossing a coin is an experiment, the
outcomes are head or tail.
Sample Space
A sample space is the set of all possible outcomes when an experiment (activity) is
carried out. It is denoted by 𝑆.
Examples
1. When a coin is being tossed the possible outcomes are Head (H) and Tail (T).
The sample space is therefore the set S H , T .
2. When we throw a six-sided die the possible outcomes are 1, 2, 3, 4, 5 and 6.
Thus S 1, 2, 3, 4, 5, 6.
5.2.1 AN EVENT
An event is a set of outcomes in an experiment. It is a subset of the sample space.
Examples:
Solution:
1. When tossing a coin, the events are getting a Head (H), Getting a Tail (T) or
getting both a head and a tail. We write A H , B T and C H , T as
events.
2. The possible events are 26 = 64. Five of those possible events are 𝐴 = {1}, 𝐵 =
{1,3,5}, 𝐶 = {2,4,6}, 𝐷 = {1,2,3}, 𝐸 = {4,5,6}.
HEAD HT
COIN (H/T) TAIL
HEAD
TAIL TH
TAIL TT
Notation:
o A ≡ event A
o B ≡ event B
o P(A) ≡ the probability of event A
o Ā ≡ the complement of event A ≡ not A (i.e., anything other than A)
o ⋃ ≡ union of events. For example, A ⋃ B means that either A or B occur.
o ∩ ≡ intersection of events. For example, A ∩ B means that both A and B
occur.
Example
In the example of tossing a coin twice, an event that two heads occurred,
Example
In the experiment of tossing a coin twice, the event that at least a head occurred
{𝐻𝑇, 𝑇𝐻, 𝑇𝑇} , is a compound event.
Definition
The Probability of an event is the number of chances that the event could occur out
of all the possible chances in the sample space.
Examples
1. When a coin is being tossed: The sample space is 𝑆 = {𝐻, 𝑇}, if A H and
𝐵 = {𝑇}, then
a) Probability of A is 1 out of 2 and we write P ( A) or P H .
1 1
2 2
b) P T .
1
2
2. When we roll a six-sided die:
1
a. 𝑃({4}) = 6
b. P 1, 3
2 1
6 3
c. P1,3, 5 .
3 1
6 2
Example
0 ≤ P(𝐴) ≤ 1
Rule 2: All possible outcomes taken together have probability exactly equal to 1.
Rule 3: When two events are disjoint (cannot occur together), the probability of
their union is the sum of their individual probabilities.
P(𝐴̅) = 1 − P(𝐴)
Addition Principle
𝑛2 outcomes in event 𝐴2
𝑛𝑘 outcomes in event 𝐴𝑘
Multiplication Principle
𝑛1 outcomes in stage 1
𝑛2 outcomes in stage 2
𝑛𝑘 outcomes in stage k
Example
The number of distinct outcomes obtained from throwing two identical six-sided
dice cannot be obtained by considering this as a two stage process (the result
from the first die and then the result from the second – since the outcomes from
the two stages are not distinct. There are not 36 possible outcomes from
throwing two identical six-sided dice; there are only 21 distinct outcomes.
e.g. The number of distinct outcomes obtained from throwing a red six-sided
dice and a green six-sided dice can be determined by the multiplication principle.
There are 36 possible outcomes in this case.
P A B
P A / B .
P B
P A B P A PB P A B
Examples
Solutions
1.
𝑃(𝐴∩𝐵) 1 1
2. a) 𝑃(𝐴⁄𝐵 ) = = 4 ÷ 3 = 3/4
𝑃(𝐵)
𝐵 𝑃(𝐴∩𝐵) 1 1
b) 𝑃 (𝐴) = = 4 ÷ 2 = 1/2
𝑃(𝐴)
3. The mode which is a quick measure of central tendency or average. The mode is
the most typical or most frequently observed value in a given set of data. It is the
observation with the highest frequency in a given set.
4. The standard deviation is the most useful measure of variation. It can be defined
as the square root of the variance for a given set of data.
5. The issues discussed in this unit can be summarised in the following way: there
are basically two separate ways of calculating probability which are as stated below:
ii. calculation based on empirical probability. This is probability calculated using the
results of an experiment that has been performed a number of times. Empirical
probability is often referred to as Relative frequency or Subjective probability.
There are four basic laws of probability: 1. addition law for mutually exclusive
events 2. addition law for events that are not mutually exclusive 3. multiplication
law for independent events 4. multiplication law for dependent events.
Assuming two events, A and B, the probability of event A, given that event B has
occurred is referred to as the conditional probability of event A.
ACTIVITY 5
1. If we randomly pick two television sets in succession from a shipment of 240
television sets of which 15 are defective, what is the probability that they will
both be defective?
2. Two students are randomly selected from a statistics class and it is observed
whether or not they suffer from a maths anxiety.
a) How many outcomes are possible?
b) Write a sample space by use of a tree diagram.
c) Write the following events:
(i) Both students are males
(ii) Both students are females
3. A pair of dice consisting of a six-sided die and a four-sided die is rolled and the
sum is determined. Let A be the event that a sum of 5 is rolled and let B be the
event that a sum of 5 or a sum of 9 is rolled. Find
a) P(A),
b) P(B)
c) P(A \ B).
57 51 58 52 50 59 57 51 59 56
50 53 54 50 57 51 53 55 52 54
(a) n
(b) x
(c) x
(d) 𝜎
2
(e) s
(f) median
(g) mode
(h) range
8. A poll of 500 people determines that 382 like ice cream and 362 like cake. How
many people like both if each of them likes at least one of the two?
INTRODUCTION
In the real world, it's very common that one quantity depends on another quantity.
For example, if you work in a fast food outlet, your pay packet depends on the number
of hours you work. Or, the amount of concrete you need to order when constructing a
building will depend on the height of the building. This chapter is
about functions (expression of relationships between quantities) and their graphs.
The graph of a function is really useful if we are trying to model a real-world problem.
("Modelling" is the process of finding the relationship between quantities.)
Sometimes we may not know an expression for a function but we do know some values
(maybe from an experiment). The graph can give us a good idea of what function may
be applied to the situation to solve the problem.
OBJECTIVES
Upon completion of this unit you will be able to:
1. Explain what mathematical equations are all about and how to formulate
them
2. State the business applications of linear and quadratic equations
3. Recognise the linear equations that are applicable to business decisions
4. Formulate equations for the solution of simple decision problems.
5. Explain what simultaneous equation systems are all about
6. Describe how simultaneous equation systems are formulated and solved.
7. Sketch the graphs of linear and quadratic functions
8. Formulate cost, revenue and profit functions from the worded problems.
UNIT READINGS
As you complete this unit you are required to read the following chapters/articles:
We will firstly study the equations, linear and quadratic, secondly formulate
functions on cost, revenue and profit and lastly sketch their graphs.
6.1 EQUATIONS
An Equation is a mathematical model expressing the relationship between variables.
Although there are several types of equations, depending on the degree of relationship,
our major concern here is on Linear and Quadratic Equations.
Examples
𝑎) 5𝑥 + 7𝑥 𝑏) − 3𝑥 + 4𝑥 − 2 + 5
Solutions
𝑎) 5𝑥 + 7𝑥 = (5 + 7)𝑥 = 12𝑥
𝑏) − 3𝑥 + 4𝑥 − 2 + 5 = (−3 + 4)𝑥 + (5 − 2) = 1𝑥 + 3 = 𝑥 + 3
1
𝑐) 2
𝑥 + 34𝑥 + 5 = (12 + 34)𝑥 + 5 = 54𝑥 + 5
An expression with one equal sign is called an equation. We will deal with linear and
quadratic equations. Linear equations are composed of variables of power one and
quadratic equations have the highest exponent of the variable as two. For example,
A linear equation in the variable, 𝑥, for example, can be written in the form: 𝒂𝑥 + 𝒃 =
0, Where 𝒂 and 𝒃 are constants and 𝒂 ≠ 0. Linear equations are classified as first-degree
equations. Unknown variables in a linear equation can be solved for, using simple
algebraic operations.
Solutions
i) 5𝑥 – 3𝑥 = 6 ⟹ (5 − 3)𝑥 = 6 ⟹ 2𝑥 = 6 ⟹ 𝑥 = 3
1. For the phrase that involves a variable, write the mathematical expression accordingly.
Examples
a) 4 times 𝑥 increased by 9.
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b) 4 decreased by 3 times 𝑦.
c) 6 less than the product of 5 times 𝑦, increased by 3.
Solution
a) 4𝑥 + 9
b) 4 − 3𝑦
c) 6 − 5𝑦 + 3
2. If the phrase does not involve a given variable, state what the variable of your
choice represents and then formulate the required expression or equation.
Examples
Solution
a) Let 𝑥 be the unknown number, then the equation becomes 13 − 3𝑥 = 40. The
solution becomes 13 − 3𝑥 = 40 ⟹ −3𝑥 = 27 ⟹ 𝑥 = −9. That is, the
unknown number is −9.
b) Let the unknown number be 𝑦. Then the equation becomes 3𝑦 = 𝑦 − 12. The
number is
3𝑦 − 𝑦 = −12 ⟹ 2𝑦 = −12 ⟹ 𝑦 = −6.
c) Let 𝑡 be the unknown number. The equation becomes 3 + 𝑥 = 5(𝑥 + 7). The
solution is
3 + 𝑥 = 5(𝑥 + 7) ⟹ 3 + 𝑥 = 5𝑥 + 35 ⟹ 𝑥 = −8.
d) The equation becomes 𝑝𝑟𝑜𝑓𝑖𝑡 = 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 − 𝑐𝑜𝑠𝑡 ⟹ 𝑝𝑟𝑜𝑓𝑖𝑡 = 10𝑥 −
(6𝑥 + 80000) = 10𝑥 − 6𝑥 − 80000 = 4𝑥 − 80000. Since profit is M60 000,
you must find 𝑥 that makes this profit. That is, 60000 = 4𝑥 − 80000 ⟹ 4𝑥 =
60000 + 80000 ⟹ 4𝑥 = 140000 ⟹ 𝑥 = 35000.
e) Let 𝑐 be the cost price before tax. Since it is sold for 𝑅3.00, the required
equation becomes
3.00 = 𝑐 + 7%𝑐 = 1.07𝑐 ⟹ 𝑐 = 2.80.
The above equations form a system of equations in two unknowns (𝑥 and 𝑦). The system
of linear equations can be solved by Substitution method, Elimination method or
Graphical method. Before we look at the details of these methods, note that the system
of equations can either have exactly one solution (consistent system) or many solutions
(dependent system) or no solution (inconsistent system). These types of solutions will be
demonstrated along with the methods used to solve the systems.
Substitution Method
Guidelines:
b) Substitute the expression of the variable in (a) above into the other equation
(different from the one used in (a)). Then you get an equation in one variable.
c) Back substitute the value obtained in (b) into the expression found in (a) to
Examples
2𝑥 + 𝑦 = 1
a)
3𝑥 + 4𝑦 = 14
𝑥 − 1⁄2 𝑦 = 2
b)
𝑦 = 2𝑥 − 4
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Solutions
2𝑥 + 𝑦 = 1 … . (1)
a)
3𝑥 + 4𝑦 = 14 … (2)
From (1), 𝑦 = 1 − 2𝑥 … (3). Now, substituting (3) into (2) gives
3𝑥 + 4(1 − 2𝑥) = 14 ⟹ 3𝑥 + 4 − 8𝑥 = 14 ⟹ −5𝑥 = 10 ⟹ 𝑥 = −2
Substituting 𝑥 = −2 into (3) gives 𝑦 = 1 − 2 × (−2) = 1 − (−4) = 5.
Therefore the solution to the system is 𝑥 = −2, 𝑦 = 5.
𝑥 − 1⁄2 𝑦 = 2 … . (1)
b)
𝑦 = 2𝑥 − 4 … … (2)
In this case, step (a) of the guidelines is not necessary since equation (2) has already
solved for 𝑦. Therefore, substituting (2) into (1) yields
1
𝑥 − 2 (2𝑥 − 4) = 𝑥 − 𝑥 + 2 = 2 ⟹ 2 = 2.
The statement 2 = 2 is true, so the system has infinitely many solutions. If the
obtained statement was false (such as 2 = 0), then the system would not have a
solution. Note that instead of substituting (2) into (1) we could have made 𝑥 in (1) the
1
subject of the formula, 𝑥 = 2 + 2 𝑦 and substituted it into (2) to get
1
𝑦 = 2 (2 + 2 𝑦) − 4 = 4 + 𝑦 − 4 ⟹ 𝑦 = 𝑦 ⟹ 0 = 0 which is a true statement.
Elimination Method
Guidelines
Example
3𝑥 – 4𝑦 = 13 … . . (1)
3𝑦 + 2𝑥 = 3 … … . (2)
Solution:
3𝑥 – 4𝑦 = 13 … . (1) 2𝑥 + 3𝑦 = 3 … (2)
6𝑥 – 8𝑦 = 26 … (3) 6𝑥 + 9𝑦 = 9 … (4)
3𝑥 − 4(−1) = 13 ⟹ 3𝑥 + 4 = 13 ⟹ 3𝑥 = 13 − 4 ⟹ 3𝑥 = 9 ⟹ 𝑥 =
3.
The solution is therefore 𝑥 = 3; 𝑦 = −1 . Note that this substitution will yield the
same result if equation (2) is used in the substitution.
Graphical Method
In this method, we will be required to use the graph and sketch graphs in pencils.
You will use this method in topic 3 of this unit. Here we will state the guidelines
only.
Guidelines
0
NUL-IEMS
1) Identify the variable or quantities that the problem seeks to find, assign them to
letters, say 𝑥.
2) Express all unknown quantities in terms of the variables.
3) Set up a system of equations that expresses the relationships between the
expressions obtained in (2) above,
4) Solve the system and interpret the results. State your final answer as a sentence
that answers the question posed in the problem.
Example
Solution
Let 𝑥 = number produced of model A per day, 𝑦 = number produced of model B per
day. These require a total of: 4𝑥 + 5𝑦 = 335 (labour) and 9𝑥 + 14𝑦 = 850
(capital). We now have the simultaneous equations:
4𝑥 + 5𝑦 = 335. . . (1)
Solving for 𝑥 and 𝑦 simultaneously by: Multiplying eq. (1) by 9 and eq. (2) by 4 we
get
⟹ 4𝑥 = 160 ⟹ 𝑥 = 40
𝑎𝑥 2 + 𝑏𝑥 + 𝑐 = 0
where 𝑎, 𝑏, and 𝑐 are constant numbers and 𝑎 ≠ 0. There are two basic methods of
solving quadratic equations:
(1) By Factorisation
FACTORIZATION
The zero-product property learnt in Unit 1 will be useful when we solve quadratic
equations by factoring.
1. Make one side of the equation equal to zero using the additive inverse.
Examples
i) 𝑥 2 − 15 = 2𝑥
ii) 𝑥 2 − 64 = 0
iii) 𝑥 2 = 4𝑥 − 3
Solutions
i) 𝑥 2 − 15 = 2𝑥 ⟹ 𝑥 2 − 2𝑥 − 15 = 0 ⟹ (𝑥 − 5)(𝑥 + 3) = 0
⟹ 𝑥 − 5 = 0 or 𝑥 + 3 = 0 ⟹ 𝑥 = 5 or 𝑥 = −3
ii) 𝑥 2 − 64 = 0 ⟹ (𝑥 − 8)(𝑥 + 8) = 0 ⟹ 𝑥 − 8 = 0 𝑜𝑟 𝑥 + 8 = 0
⟹ 𝑥 = 8 𝑜𝑟 𝑥 = −8
iii) 𝑥 2 = 4𝑥 − 3 ⟹ 𝑥 2 − 4𝑥 + 3 = 0 ⟹ (𝑥 − 3)(𝑥 − 1) = 0
⟹ 𝑥 − 3 = 0 or 𝑥 − 1 = 0 ⟹ 𝑥 = 3 or 𝑥 = 1
QUADRATIC FORMULA
Some quadratic equations may be difficult to factorize, then the quadratic formula
becomes handy.
Recall:
b b 2 4ac
x .
2a
For you to be able to use the quadratic formula, you need to write the quadratic equation
in standard form and then identify the values of 𝑎, 𝑏, 𝑐 and then substitute them
accordingly.
Examples
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i) x 2 5x 4 0 ii) 2 x 2 7 x 5 0
Solutions
Application example
Suppose that the weekly profit (in thousands of Maloti) of the PC Company is given by
𝑝 = 𝑥 2 + 16𝑥 − 24, where 𝑥 is the number of refrigerators produced and sold. How
many refrigerators must be produced and sold to have a weekly profit of M40, 000?
Solution
Here we are to find the values of 𝑥 for which 𝑝 = 40,000. Since the equation is in
thousands of Maloti, we solve the equation for 𝑝 = 40. i
16 16 2
40 x 2 16x 24 x 2 16x 24 40 0 x 2 16x 64 0 x 8 8 2
2
⟹ 𝑥 = −8 − 8√2 𝑜𝑟 𝑥 = −8 + 8√2 ⟹ 𝑥 = −30.63 𝑜𝑟 𝑥 ≅ 3.31371. Since we cannot
have a negative refrigerators, our only solution is 3.31371. Therefore, to have a weekly
profit of M40,000, about 3314 refrigerators need to be produced and sold.
You will sketch the quadratic equations and solve problems that require maximum or
minimum quantities in the next topic on Graphs.
When solving the system of equations with more than one variable, using the method
of substitution one variable was made the subject of the formula. If that variable was
𝑦, then the equation 𝑦 = 𝑚𝑥 + 𝑐 can be written to indicate that 𝑦 depends on 𝑥 as
𝑓(𝑥) = 𝑚𝑥 + 𝑐. This equation is now called a function, which is our next topic.
ACTIVITY 6.1
1. Write the following phrases as mathematical expressions
5. A cell phone company charges a monthly fee of $10 for the first 1000 text messages
and 10 cents for each additional text message. MIriam’s bill for text messages for the
month of June is $38.50. How many text messages did she send that month?
6. A rental company charges $65 a day and 20 cents a mile for renting a truck. Michael
rented a truck for 3 days, and his bill came to $275. How many miles did he drive?
7. A woman earns 15% more than her husband. Together they make $69, 875 per year.
What is the husband’s annual salary?
8. Lipolelo wants to buy a house, so she has decided to save one quarter of her salary.
Lipolelo earns M47.00 per hour and receives an extra M28.00 a week because she
declined company benefits. She wants to save at least M550.00 each week. How many
hours must she work each week to achieve this?
y = 6x – 11 −7𝑥 − 2𝑦 = −13
(a) (b)
− 2x − 3y = −7 𝑥 − 2𝑦 = 11
(c) 𝑥 − 𝑦 = 11, 2𝑥 + 𝑦 = 19
6.2 FUNCTIONS
In this unit, you will be introduced to the concept of functions and mappings. You will also
be given instructive and application examples of functions in economics.
Definition of a function
Given sets A and B, a rule that maps the elements of set A to exactly one element of set B
is a function, otherwise that rule is a relation. Set A, which is the set of inputs is called the
domain while set B is called the codomain (set of possible outputs). The range is the set
of all outputs. The codomain and range are not the same and they are not always equal.
A relation is a function if for every 𝒙 in the domain there is exactly one 𝒚 in the
codomain. From the diagram below, if 𝑓 is a rule that maps A to B, then 𝑓 is a function
where there are mappings of one to one or one to many.
The relation is not a function if the element of A is mapped to more than one element in set B.
In other words, if we start off with an input, and we apply the function or rule, we get an
output. For example, we might have a function that added 3 to any number. So if we
apply this function to the number 2, we get the number 5. If we apply this function to the
number 8, we get the number 11. If we apply this function to the number 𝑥, we get the
number 𝑥 + 3.
At first sight, it seems that we can pick any number we choose for the argument.
However, that is not the case, as we shall see later. But because we do have some choice
in the number we can pick, we call the argument the independent variable. The output of
the function, e.g. 𝑓(𝑥), 𝑓(5), 𝑒𝑡𝑐. depends upon the argument, and so this is called the
dependent variable.
𝑓(𝑥) = √𝑥
then the domain of 𝑓 is understood to be the set of all nonnegative real numbers
domain of 𝑓 = [0, ∞]
A systematic way of finding the domain and range of a function for which you are only
given a formula is as follows:
The domain of 𝑓 consists of all 𝑥 for which 𝑓(𝑥) is well-defined (“makes sense”)
The range of 𝑓 consists of all 𝑦 for which you can solve the equation 𝑓(𝑥) = 𝑦
Example
Solution
The expression 1/𝑥 2 can be computed for all real numbers 𝑥 except 𝑥 = 0 since
this leads to division by zero. Hence the domain of the function 𝑓(𝑥) = 1/𝑥 2 is
To find the range we ask “for which 𝑦 can we solve the equation 𝑦 = 𝑓(𝑥) for 𝑥,"
i.e. we ask, for which 𝑦 can you solve 𝑦 = 1/𝑥 2 for 𝑥?
If 𝑦 = 1/𝑥 2 then we must have 𝑥 2 = 1/𝑦, so first of all, since we have to divide by
𝑦, 𝑦 can't be zero. 𝑥 2 = 1/𝑦 says 𝑦 must be positive. On the other hand if 𝑦 > 0
then 𝑦 = 1/𝑥 2 has a solution. This shows that the range of f is all positive real
numbers, i.e range = {𝑦 ∶ 𝑦 > 0} = (0, ∞)
Example. One can define a function 𝑓 by saying that for each 𝑥 the value of 𝑓(𝑥) is
the solution 𝑦 of the equation
𝑥 2 + 2𝑦 − 3 = 0
3 − 𝑥2
𝑦=
2
3−𝑥 2
Thus we see that the function we have defined is 𝑓(𝑥) = 2
The first definition is the implicit definition, the second is explicit. You see that with
an “implicit function” it isn't the function itself, but rather the way it was defined
that's implicit.
Example
1
Given the function 𝑓(𝑥) = , find
√𝑥−5
Examples
In each of the following, state whether 𝑓(𝑥) has a maximum or a minimum value and find
that value.
a) 𝑓(𝑥) = 100𝑥 2 − 20𝑥 + 25 c) 𝑓(𝑥) = −2𝑥 2 − 16𝑥 + 13
b) 𝑓(𝑥) = 4𝑥 − 50 − 0.1𝑥 2 d) 𝑓(𝑥) = 𝑥(𝑥 + 3) − 12
Solutions
a) Here 𝑎 = 100, 𝑏 = −20, 𝑐 = 25. Since 𝑎 > 0, 𝑓 has minimum value, which is
(−20) 1 1
𝑓 (− 2×100) = 𝑓 (10) = 100 × (1/10)2 − 20 × (10) + 25 = 24.
b) Here 𝑎 = −0.1, 𝑏 = 4, 𝑐 = −50. Since 𝑎 < 0, 𝑓 has a maximum value. The
4 4
maximum value is 𝑓 (− 2×(−0.1)) = 𝑓 (0.2) = 𝑓(20) = −10.
c) and d) left as exercises.
The application of quadratic functions will be done in subtopic 6.2.6 and graphing of
these functions is done under the graphs topic. Next we will look at the basics of some
functions applicable in economics.
1 −𝑥
𝑦 = 2𝑥 and 𝑝 = (2) are exponential functions. The function 𝑦 = 𝑥 2 is not an
exponential function but an exponent.
The properties of exponential functions are the same as the laws of exponents.
The inverse of the exponential function is called the logarithmic function. The
function 𝑦 = log 𝑏 𝑥 is the logarithmic function where 𝑏 is the base and 𝑥 is the
argument. If the base is 10, then the logarithmic function is called the common
logarithm written as 𝑦 = log 𝑥 (omitting the base). If the base is 𝑒, then the
logarithm is called the natural logarithm written as 𝑦 = log 𝑒 𝑥 = ln 𝑥. The domain
of the logarithmic functions is the set of positive real numbers.
The properties of logarithmic functions are many but we will name only those that
will be useful when solving some equations.
1. log 𝑏 𝑥 𝑎 = 𝑎 log 𝑏 𝑥
2. log 𝑏 𝑥𝑦 = log 𝑏 𝑥 + log 𝑏 𝑦
3. log 𝑏 𝑏 = 1
4. log 𝑏 𝑥/𝑦 = log 𝑏 𝑥 − log 𝑏 𝑦
The common use of property 1 and property 3 is when we solve natural logarithm
question.
Example
Solution
Definition
Suppose a firm has a fixed cost of 𝐹 Maloti, a production cost of 𝑐 Maloti per unit
and a selling price of 𝑠 Maloti per unit. Let 𝑥 denote the number of units of a
product manufactured or sold. Then, the cost function 𝐶(𝑥), the revenue function
𝑅(𝑥) and the profit function 𝑃(𝑥), assuming that they are linear, are given as
𝐶(𝑥) = 𝑐𝑥 + 𝐹
𝑅(𝑥) = 𝑠𝑥
Example
The management of a certain company finds that the monthly fixed costs
attributable to the production of their 100-watt light bulbs is $12,100. If the cos t of
producing each twin-pack of light bulbs is $0.60 and each twin-pack sells for $1.15,
find the company’s cost function, revenue function and profit function.
Solution
As studied in economic, the demand and supply curves may be linear or nonlinear.
As a reminder, we recall what they are below.
A demand equation expresses a relationship between the unit price and the
quantity demanded for a particular commodity. The function 𝑝 = 𝑓(𝑥) is a
decreasing function of 𝑥, where 𝑝 measures the unit price and 𝑥 the number of
units of the commodity. This is so because the quantity demanded is inversely
proportional to its unit price.
Similarly, the supply equation expresses the relationship between the unit price and
the quantity supplied by the manufacturer. This relationship is directly proportional
so the supply function 𝑝 = 𝑓(𝑥) is an increasing function.
Examples
b) A marketing firm estimates that 𝑛 months after the introduction of a client’s new
product, 𝑓(𝑛) thousands households will use it, where
10
𝑓(𝑛) = 𝑛(12 − 𝑛), 0 ≤ 𝑛 ≤ 12
9
Estimate the maximum number of households that will use the product.
Solutions
Next we will look at how we can sketch all the functions studied above.
6.3 GRAPHS
A vertical line through any element of the domain should intersect the graph of the
function exactly once. If the vertical line does not cut the graph once, then that graph is
not a function. This is known as the vertical line test of a function.
A coordinate system is in the plane of 𝑥 and 𝑦 as the ordered pair (𝑥, 𝑦). In graphing the
functions, we use the pairs of 𝑥 and 𝑦. The pair (𝑥, 𝑦) represent a point in the 𝑥𝑦- plane.
1. 𝑓(𝑥) = 𝑥
2. 𝑓(𝑥) = 𝑥 2
3. 𝑓(𝑥) = 𝑥 3
4. 𝑓(𝑥) = √𝑥
5. 𝑓(𝑥) = I𝑥I
1
6. 𝑓(𝑥) = 𝑥
Solution
1. 𝒇(𝒙) = 𝒙
We can choose any five values of 𝑥 and evaluate them to find the values of 𝑦 =
𝑓(𝑥) . The table gives you ordered pairs such as (-2,-2), (0,0) which are then
plotted as shown.
𝑥 -2 -1 0 1 2
𝑦 -2 -1 0 1 2
2. 𝑓(𝑥) = 𝑥 2
𝑥 -2 -1 0 1 2
𝑦 4 1 0 1 4
3. 𝑓(𝑥) = 𝑥 3
𝑥 -2 -1 0 1 2
𝑦 -8 -1 0 1 8
4. 𝑓(𝑥) = √𝑥
𝑥 -2 -1 0 1 4
𝑦 Undefined undefined 0 1 2
5. 𝑓(𝑥) = I𝑥I
𝑥 -2 -1 0 1 2
𝑦 2 1 0 1 2
1
6. 𝑓(𝑥) = 𝑥
𝑥 -2 -1 0 1 4
𝑦 -1/2 -1 Undefined 1 1/2
Example
1. The distance that Giselle can run is a function of the amount of time she
spends running. Giselle runs 𝟑miles in 𝟐𝟏minutes. Assume she runs at a
constant rate.
a. Write an equation in two variables that represents her distance run, 𝒚, as a
function of the time, 𝒙, she spends running.
3 𝑦
=
21 𝑥
1
𝑦 = ( )𝑥
7
b. Use the equation you wrote in part (a) to determine how many miles
Giselle can run in 𝟏𝟒 minutes
1 1
𝑦 = ( ) 𝑥 = ( ) 14 = 2
7 7
c. Use the equation you wrote in part (a) to determine how many miles
Giselle can run in 𝟐𝟖 minutes
1 1
𝑦 = ( ) 𝑥 = ( ) 28 = 4
7 7
d. Use the equation you wrote in part (a) to determine how many miles
Giselle can run in 𝟕 minutes.
1 1
𝑦 = ( )𝑥 = ( )7 = 1
7 7
e. The input of the function, 𝒙, is time, and the output of the function, 𝒚, is
the distance Giselle ran. Write the inputs and outputs from parts (b)–(d) as
ordered pairs, and plot them as points on a coordinate plane.
(𝟏𝟒, 𝟐), (𝟐𝟖, 𝟒), (𝟕, 𝟏)
g. Use the equation you wrote in part (a) to determine how many miles
Giselle can run in 𝟑𝟔 minutes. Write your answer as an ordered pair, as you
did in part (e), and include the point on the graph. Is the point in a place
where you expected it to be? Explain.
The function is continuous because we can find the distance Giselle runs
for any given amount of time she spends running.
h. Assume you used the rule that describes the function to determine how
many miles Giselle can run for any given time and wrote each answer as an
ordered pair. Where do you think these points would appear on the graph?
1 1 1
𝑦 = ( ) 𝑥 = ( ) 36 = 5
7 7 7
1
(𝟑𝟔, 5 7) The point is where I expected it to be because it is in line with the other
points.
There are many other functions that we may be required to graph and each type
of function will be graphed differently. The first basic graph that we explored is
the equation of a straight line. This type of a line can be formulated in various
forms and in each straight line, there may be a slope and there may be an
intercept.
Recall:
The equation of a straight line has the following forms which are helpful in graphing
the linear graphs:
−𝐴
1. General form: 𝐴𝑥 + 𝐵𝑦 + 𝐶 = 0 where 𝑚 = .
𝐵
𝑦−𝑦
2. The slope and point form: 𝑦 − 𝑦1 = 𝑚(𝑥 − 𝑥1 ) ≡ 𝑚 = 𝑥−𝑥1
1
3. Two-point form: Given the two points (𝑥2 , 𝑦2 ) and (𝑥1 , 𝑦1 ) on the same line,
𝑦−𝑦1 𝑦 −𝑦 𝑦 −𝑦
then the equation of the line is = 2 1 or 𝑦 − 𝑦1 = 2 1 (𝑥 − 𝑥1 ).
𝑥−𝑥1 𝑥2 −𝑥1 𝑥2 −𝑥1
𝑐
4. Intercept form: 𝑦 = 𝑚𝑥 + 𝑐. This line crosses the 𝑥 −axis at (− 𝑚 , 0) and the
𝑥 𝑦
𝑦 −axis at (0, 𝑐) or + 𝑏 = 1 means that the line crosses the 𝑥 −axis at (𝑎, 0)
𝑎
and the 𝑦 −axis at (0, 𝑏).
Examples
a) Find the equation of the line with intercepts (3, 0) and (0, 2).
b) Find the equation of the line through (2, 3) whose 𝑦-intercept is twice the
𝑥-intercept.
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NUL-IEMS
c) Find the equation of the line with slope 3 and passing through the point
(−2, −4).
d) Find the equation of the line passing through (−2,3) and perpendicular to the
line 2𝑥 − 3𝑦 + 6 = 0
Solutions
𝑥 𝑦
a) + 2 = 1 ⟹ 2𝑥 + 3𝑦 − 6 = 0
3
b) Let the 𝑥-intercept be at 𝑥 = 𝑎. Then, 𝑦-intercept will be at 𝑦 = 2𝑎. Therefore
𝑥 𝑦
the equation of the straight line will be 𝑎 + 2𝑎 = 1 ⟹ 2𝑥 + 𝑦 = 2𝑎 since the
line passes through (2, 3), we have 2(2) + 3 = 2𝑎 ⟹ 𝑎 = 7/2. Hence the
equation of the line is 2𝑥 + 𝑦 − 7 = 0.
c) Here 𝑚 = 3, so the equation becomes 𝑦 − (−4) = 3(𝑥 − (−2)) ⟹ 𝑦 + 4 =
3(𝑥 + 2) ⟹ 𝑦 = 3𝑥 + 2
2
d) Re-arranging the given equation to the form 𝑦 = 𝑚𝑥 + 𝑐, we get 𝑦 = 3 𝑥 + 2.
From this we note that the slope of the given line, say 𝐿1 𝑖𝑠 𝑚1 = 2/3. The
product of the slopes of this line and the unknown or required line say 𝐿2 , is -1.
1 3
That is 𝑚1 𝑚2 = −1 ⟹ 𝑚2 = − 𝑚 = − 2. Hence, the equation of 𝐿2 is 𝑦 − 3 =
2
3 3
− 2 (𝑥 − (−2)) ⟹ 𝑦 = − 2 𝑥
We sketch the linear graphs by using at least two points on the graph paper, which are
the 𝑥 − intercept and the 𝑦 − intercept.
Examples
a) 𝑥 + 𝑦 = 5,
b) 3𝑥 − 2𝑦 = 6
c) 5𝑦 = −3𝑥 + 15
d) 𝑦+𝑥+2 =0
Solutions
a) We can make a simple table for ordered pairs for the intercepts
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NUL-IEMS
𝑥 0 5
𝑦 = 5−𝑥 5 0
Then from this we get the ordered pairs (0,5) and (5,0) which we plot on the graph
paper y-axis
𝑦+𝑥 =5
=5
-2 0 2 4 x-axis6
𝑦 −3 0
From the ordered pairs (0, -3) and (2, 0), the graph becomes
2
y-axis
0
-1 0 1 2 x-axis 3
-1
-2 3𝑥 − 2𝑦 = 6
= 66
-3
-4
a>0 a<0
5 2
y
y
4 1
0
3 -4 -2 0 2 x 4
-1
2
-2
1 -3
0 -4
-4 -2 0 2 4
-5
x
In each parabola, there is a point called a vertex which is the lowest point on a parabola
that opens upward or the highest point on a parabola that opens downward. Every
parabola is symmetric with respect to the axis of symmetry through its vertex. The
𝑥 −coordinate of the vertex is the equation of the axis of symmetry. That is, the equation
−𝑏
𝑥=
2𝑎
Is the axis of symmetry of a parabola. The coordinates of the vertex are
−𝑏 −𝑏
𝑥= , 𝑦 = 𝑓(𝑥) = 𝑓 ( )
2𝑎 2𝑎
−𝑏 −𝑏
That is, the vertex is at ( 2𝑎 , 𝑓 ( 2𝑎 ) )
Examples
c) The vertex
(i) 𝑓(𝑥) = −2𝑥 2 + 4𝑥 − 5
(ii) 𝑔(𝑥) = 5𝑥 2 − 30𝑥 + 49
(iii) ℎ(𝑥) = 𝑥 2 − 9
(iv) 𝑓(𝑥) = 𝑥 2 + 9
Solutions
Examples
a) 𝑓(𝑥) = −2𝑥 2 + 4𝑥 − 5
b) 𝑔(𝑥) = 5𝑥 2 − 30𝑥 + 49
c) ℎ(𝑥) = 𝑥 2 − 9
d) 𝑓(𝑥) = 𝑥 2 + 9
Solutions
2
X=1, Axis of symmetry
y
x
0
-2 -1 0 1 2 3 4
-2
1; -3 vertex
-4
0; -5 2; -5
-6
-8
f(x)
-10
-1; -11 3; -11
-12
98
y
88
-1; 84 7; 84
78
68
g(x)
Axis of symmetry
58
48 0; 49 6; 49
38
28
18
8
3; 4 x
-2
-2 0 2 4 6 8
8
-4; 7 4; 7
y
6
4 h(x)
2
x
-3; 0 0 3; 0
-6 -4 -2 0 2 4 6
-2
-4
-6
-8
0; -9
-10
d) Left as an exercise.
SUMMARY
In this last topic of unit six we studied how to graph a linear function on the graph
paper. If there is a system of equations that is to be solved using graphical method,
we graph the two equations on the same axis and the point of intersection is the
solution to the system if the system has a unique solution. If the system has no
solution the graph yields two parallel lines or the lines coincide if the system has
infinitely many solutions. You also learnt that the vertex gives the information on
maximum or minimum value of a function. This is observed when we sketch the
quadratic graph.
It is instructive to note that Inverse function is not studied in isolation but more
importantly as a useful and powerful tool in understanding calculus which you will study
in the next unit.
(xii) Sketch the graph of the equation 𝑦 = 4𝑥 using the same coordinate
plane in part (e). What do you notice about the graph of the function
that describes the company’s constant rate of producing devices and
the graph of the equation 𝑦 = 4𝑥?
INTRODUCTION
In this unit, you will study how to develop necessary tools of calculus to compute rate of
change of cost, revenue and profit functions. The rate of change is known as the
derivative. You will use differentiation techniques to obtain derivatives for different
functions. You will also compute areas under curve as a mere routine exercise. The area
under a curve gave birth to the second branch of calculus known as integration. Recall
that the word to integrate connotes ―whole of‖ which could be interpreted to mean
―find the whole area of‖. This concept is what will be introduced in this unit and be fully
developed.
OBJECTIVES
Upon completion of this unit you will be able to:
READINGS
As you complete this unit you are required to read the following chapters/articles:
Finite Mathematics and Applied Calculus, 3rd Edition, Waner Costenoble, chapt 11-13
7.1 DIFFERENTIATION
Given the function 𝑦 = 𝑓(𝑥), the rate of change ∆𝑦 = 𝑓(𝑥 + ∆𝑥) − 𝑓(𝑥) is the exact
∆𝑦
change in 𝑦. Then the average rate of change is said to be a derivative of 𝑦 with
∆𝑥
∆𝑦 𝑑𝑦
respect to 𝑥 when ∆𝑥 becomes very small, close to zero. That is, lim = 𝑑𝑥 . The
∆𝑥→0 ∆𝑥
𝑑
symbol 𝑑𝑥 is the operator on the function 𝑓 to yield a rate of change of 𝑓 with respect to
𝑥. The derivative can also be denoted by 𝑓’(𝑥) or 𝑦’. This rate can be evaluated at a
𝑑𝑓
particular value of 𝑥 and the derivative at that value is denoted by | or 𝑓 ′ (𝑎).
𝑑𝑥 𝑥=𝑎
Before we go any further, we look at the differentiation formulas which we are going to
use and not prove.
𝑑 𝑑
2) The constant Multiple Rule: [𝑐𝑓(𝑥)] = 𝑐 𝑓(𝑥)
𝑑𝑥 𝑑𝑥
𝑑
3) The Power Rule: [𝑥 𝑛 ] = 𝑛𝑥 𝑛−1 , for any real number 𝑛.
𝑑𝑥
𝑑
5) The Product Rule: [𝑓(𝑥)𝑔(𝑥)] = 𝑓(𝑥)𝑔′ (𝑥) + 𝑔(𝑥)𝑓′(𝑥)
𝑑𝑥
𝑑 𝑓(𝑥) 𝑔𝑓 ′ −𝑓𝑔′
6) The Quotient Rule: [ ⁄𝑔(𝑥)] =
𝑑𝑥 𝑔2
𝑑𝑓 𝑑𝑓 𝑑𝑢
7) The Chain Rule: = 𝑑𝑢 𝑑𝑥 , if 𝑓 is a differentiable function of 𝑢 and 𝑢 a
𝑑𝑥
differentiable function of 𝑥.
Besides the above rules, we will use as rules, special derivatives, the derivatives of the natural
exponential and logarithmic functions.
1
A differentiable function is a function whose derivative can be obtained.
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NUL-IEMS
SPECIAL DERIVATIVES
𝑑
a) [𝑒 𝑥 ] = 𝑒 𝑥
𝑑𝑥
𝑑 𝑑
b) [𝑒 𝑢 ] = 𝑒 𝑢 (𝑢), where 𝑢 is a differentiable function of 𝑥.
𝑑𝑥 𝑑𝑥
𝑑 1
c) [ln 𝑥] =
𝑑𝑥 𝑥
𝑑 1 𝑑
d) [ln 𝑢] = (𝑢), where 𝑢 is a differentiable function of 𝑥.
𝑑𝑥 𝑢 𝑑𝑥
Examples
√𝑥−𝑥
a) 𝑓(𝑥) = 780 e) 𝑦 = 𝑥2
12
b) 𝑔(𝑥) = 𝑥 3 + 4𝑥 − 3 f) 𝑢 = − 𝑡 6
c) ℎ(𝑥) = √𝑥(𝑥 − 2) g) 𝑣 = (𝑥 + 𝑥 −2 )3
d) 𝑦 = 𝑥 −2⁄3
Solutions:
𝑑𝑓 𝑑
a) = 𝑑𝑥 (780) = 0
𝑑𝑥
𝑑 𝑑 𝑑 𝑑
b) 𝑔′ (𝑥) = 𝑑𝑥 (𝑥 3 + 4𝑥 − 3) = 𝑑𝑥 (𝑥 3 ) + 𝑑𝑥 (4𝑥) − 𝑑𝑥 (3) = 3𝑥 2 + 4
𝑑 𝑑 1 3 1
c) ℎ′ (𝑥) = √𝑥 𝑑𝑥 (𝑥 − 2) + (𝑥 − 2) 𝑑𝑥 (√𝑥) = √𝑥 + (𝑥 − 2) ∗ 2 𝑥 −1⁄2 = 2 √𝑥 −
√𝑥
𝑑 −2
d) 𝑦 ′ (𝑥) = 𝑑𝑥 𝑥 −2⁄3 = 𝑥 −5⁄3
3
𝑑 𝑑 1
𝑑 √𝑥−𝑥 𝑥2 (√𝑥−𝑥)−(√𝑥−𝑥) (𝑥 2 ) 𝑥 2 ( 𝑥 −1⁄2 −1)−(√𝑥−𝑥)(2𝑥)
e) 𝑦 ′ (𝑥) = 𝑑𝑥 ( ) = 𝑑𝑥 𝑑𝑥
= 2
𝑥2 (𝑥 2 )2 𝑥4
𝑥 3⁄2
= + 𝑥 2 − 2𝑥√𝑥
2
𝑑 12 𝑑
f) 𝑢′ (𝑡) = 𝑑𝑡 (− 𝑡 6 ) = −12 𝑑𝑡 (𝑡 −6 ) = −12 ∗ −6𝑡 −7 = 72⁄𝑡 7
𝑑𝑣 𝑑𝑣 𝑑𝑢 𝑑 𝑑
g) Let 𝑢 = 𝑥 + 𝑥 −2 , then 𝑣 = 𝑢3 , = 𝑑𝑢 𝑑𝑥 = 𝑑𝑢 (𝑢3 ) 𝑑𝑥 (𝑥 + 𝑥 −2 )
𝑑𝑥
= 3𝑢2 × (1 − 2𝑥 −3 )=3(𝑥 + 𝑥 −2 )2 (1 − 2𝑥 −3 ).
APPLICATIONS OF DERIVATIVES
We use derivatives to find rates of change in cost, profit and revenue functions. Suppose
that 𝑥 is the number of units sold in some time interval at a price 𝑝 Maloti and that 𝐶(𝑥)
is the total cost and 𝑅(𝑥) is the total revenue. Then, 𝑃(𝑥) = 𝑅(𝑥) − 𝐶(𝑥) is the total
profit and 𝑝(𝑥) is the price (or demand) function. The derivatives of these functions
results in the marginal analysis.
Marginal Cost
It is the rate of change in cost per unit change in production at a given output level.
Marginal cost is denoted by 𝐶 ′ (𝑥). This derivative approximates the extra cost of
producing one additional unit.
Marginal Revenue
It is the rate of change in revenue, denoted by 𝑅’(𝑥), per unit change in production at a
given output level. This derivative approximates the extra revenue for selling one
additional unit.
Marginal Profit
It is the rate of change in profit, denoted by 𝑃’(𝑥), per unit change in production at a
given output level. This derivative approximates the extra profit for selling one additional
unit.
N.B:
With the interpretations above, it can be noted that 𝑓(𝑥 + ∆𝑥) ≈ 𝑓(𝑥) + 𝑓 ′ (𝑥), where
the function 𝑓 can be any of the above functions. This is interpreted as the value of 𝑓 per
1 additional unit increase in 𝑥. For instance, if 𝑥 = 10, 𝑓(11) = 𝑓(10) + 𝑓′(10) is the
value of 11 items which can be obtained with the knowledge of the value of 10 items plus
the rate of change of 𝑓 when 𝑥 = 10.
Examples
c) Calculate the marginal profit for 𝑞 = 15, 𝑞 = 20 and 𝑞 = 25 and interpret the
results.
Solutions
1. a) 𝐶’(𝑥) = 8.45. This means that it costs an additional M8.45 to produce one
b) 𝐶’(𝑥) = 0.09𝑥. This means that the marginal cost depends on the production
level of 𝑥 units because 𝐶’(𝑥) is the function of 𝑥. That is, if the current production
is 1000 units, then the cost of producing one additional unit, of the 1000 already
produced, is 𝐶′(𝑥)|𝑥=1000 = 0.09𝑥|𝑥=1000 = 90. In other words, the cost of
producing the 1001st unit is M90.00 not the cost of producing 1001 units.
4600−100𝑞
2. 𝑞 = −0.06𝑝 + 46 ⟹ 𝑝 = , the cost function is 𝐶(𝑞) = 5000 + 100𝑞
6
4600−100𝑞 4600𝑞−100𝑞 2
a) Revenue function is 𝑅(𝑞) = 𝑝𝑞 = 𝑞 ( )=
6 6
4000𝑞−100𝑞 2
Profit function is 𝑃(𝑞) = 𝑅(𝑞) − 𝐶(𝑞) = − 5000.
6
c) 𝑃′ (15) = 16[4000−200×15]=166.67, this means that for the 16th new club member, profit
increases by M166.67.
𝑃′ (20) = 0. This means that the maximum profit is obtained when the club has 20
members. That is, the 21st member will not increase the profit.
𝑃′ (25) = −166.67 means that the 26th club member causes the club to have a loss of
M166.67.
Examples
10
𝑓(𝑛) = 𝑛(12 − 𝑛), 0 ≤ 𝑛 ≤ 12
9
a) Estimate the maximum number of households that will use the product.
b) It is noted that 𝑓(12) = 0, what does it mean?
Solutions
1. 𝑅 ′ (𝑥) = 80 − 0.8𝑥
i. Maximum revenue is obtained where 𝑅’(𝑥) = 0, that is, 80 − 0.8𝑥 =
0 ⟹ 𝑥 = 100. Therefore, 100 units should be manufactured to obtain
maximum revenue.
2. 𝑃′ (𝑥) = −0.002𝑥 + 3,
b) 𝑓(12) = 0 means that after 12 months none of the households will use a new
product.
The derivative of a function may not exist for some values of 𝑥. If the derivative of 𝑓 exists
at 𝑎, then the function 𝑓 is said to be differentiable at 𝑎. For example, for 𝑓(𝑥) = √𝑥,
1 −1⁄
𝑓(0) = 0 and 𝑓 ′ (𝑥) = 2 𝑥 2 yet 𝑓 ′ (0) is undefined. Therefore, 𝑓 is not differentiable
at 𝑥 = 0.
N.B
In determining the extremas (maxima and minima), two or more values may be
obtained when the derivative is equated to zero. To obtain the required extrema,
substitute the obtained values to the original function and choose appropriately.
TOPIC SUMMARY
You learnt that:
Rules of differentiation can be used to find rates of changes in cost, revenue and
profit.
Marginal cost 𝐶’(𝑥) approximates the extra cost of producing one additional unit.
Marginal revenue 𝑅′(𝑥) approximates the extra revenue of selling one additional
unit.
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Marginal profit 𝑃′(𝑥) approximates the extra profit of selling one additional unit.
You learnt that the derivative is the rate of change. The anti-derivative gives the original
function that was differentiated. This and more is in the next topic.
7.2 INTEGRATION
INTRODUCTION
Calculus involves the study of two basic operations:
OBJECTIVES
Upon completion of this lesson you will be able to:
7.2.1 ANTI-DERIVATIVE
We have solved problems of the type:
𝐺 ′ (𝑥) = 𝑓(𝑥)
Definition
∫ 𝑓(𝑥)𝑑𝑥 = 𝐺(𝑥) + 𝐶
is the integral of 𝑓 with respect to 𝑥, where 𝑓(𝑥) = 𝐺 ′ (𝑥) and 𝐶 is an arbitrary constant. The
process of finding 𝐺(𝑥) + 𝐶 when given 𝑓(𝑥) is called INDEFINITE INTEGRATION, or
evaluating the integral or integrating 𝑓(𝑥).
IN GENERAL
𝑑 𝑑
∫ 𝑑𝑥 (𝑓(𝑥))𝑑𝑥 = 𝑓(𝑥) + 𝐶 and 𝑑𝑥
∫ 𝑓(𝑥)𝑑𝑥 = 𝑓(𝑥)
Many of the properties (rules) that applied to differentiation have similar properties in
integration.
1. Power Rule
𝑥 𝑛+1
∫ 𝑥 𝑛 𝑑𝑥 = 𝑛+1
+𝐶 𝑛 ≠ −1
3. Sum Rule
∫[𝑓(𝑥) + 𝑔(𝑥)]𝑑𝑥 = ∫ 𝑓(𝑥)𝑑𝑥 + ∫ 𝑔(𝑥)𝑑𝑥
4. Difference Rule
𝑑
i. Recall that (𝑒 𝑥 ) = 𝑒 𝑥 , similarly, ∫ 𝑒 𝑥 𝑑𝑥 = 𝑒 𝑥 + 𝐶 . From this we have
𝑑𝑥
1
∫ 𝑒 𝑎𝑥 𝑑𝑥 = 𝑎 𝑒 𝑎𝑥 + 𝐶
Thus, in general
𝑎𝑥
∫ 𝑎 𝑥 𝑑𝑥 = 𝑙𝑛𝑎 + 𝐶 , 𝑎 > 0, 𝑎 ≠ 1
1
ii. ∫ 𝑥 𝑑𝑥 = ∫ 𝑥 −1 = 𝑙𝑛|𝑥| + 𝐶.
Examples
1. Integration by Substitution
2. Integration by Parts
1. Integration By Substitution
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REMINDER
Hence
𝑑𝑢
∫ [𝑔′ (𝑢) ] 𝑑𝑥 = ∫ 𝑔′ (𝑢)𝑑𝑢
𝑑𝑥
Integration by Substitution - Procedure:
1. Write 𝑢 as a function of 𝑥.
𝑑𝑢
2. Take the derivative 𝑑𝑥 .
3. Solve for 𝑑𝑥 in terms of 𝑑𝑢.
4. Substitute for 𝑢 and 𝑑𝑥 in the integral.
5. Before integrating make sure that the variable 𝑥 is eliminated from the integral.
6. After Integrating substitute back to write the answer in terms of 𝑥.
Examples
1. ∫(𝑥 + 1)9 𝑑𝑥 This is a composite function where the inner function is 𝑥 + 1. Now, let
𝑑 𝑑 𝑑𝑢
𝑢 = 𝑥 + 1, then 𝑑𝑥 (𝑢) = 𝑑𝑥 (𝑥 + 1) ⟹ 𝑑𝑥 = 1 ⟹ 𝑑𝑢 = 𝑑𝑥. Then the integral becomes
𝑢10 (𝑥+1)10
∫(𝑢)9 𝑑𝑢 = 10 + 𝐶. Thus, ∫(𝑥 + 1)9 𝑑𝑥 = 10 + 𝐶.
2. ∫(𝑥 2 + 2𝑥 + 5)4 (𝑥 + 1)𝑑𝑥, in this integral, there is the inner function 𝑥 2 + 2𝑥 + 5, so
let 𝑢 = 𝑥 2 + 2𝑥 + 5, integrating both sides with respect to 𝑥 we get
𝑑 𝑑 𝑑𝑢 𝑑𝑢
(𝑢) = (𝑥 2 + 2𝑥 + 5) ⟹ = 2𝑥 + 2 = 2(𝑥 + 1) ⟹ = 𝑑𝑥,
𝑑𝑥 𝑑𝑥 𝑑𝑥 2(𝑥+1)
now substituting 𝑢 and 𝑑𝑥 in the integral we get
𝑑𝑢 1 1 𝑢5
∫(𝑥 2 + 2𝑥 + 5)4 (𝑥 + 1)𝑑𝑥 = ∫ 𝑢4 (𝑥 + 1) 2(𝑥+1) = 2 ∫ 𝑢4 𝑑𝑢 = 2 ( 5 ) + 𝐶
(𝑥 2 + 2𝑥 + 5)5
= +𝐶
10
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NUL-IEMS
𝑑𝑢
3. ∫ 𝑥(3𝑥 − 5)3 𝑑𝑥: Let 𝑢 = 3𝑥 − 5, then integrating both sides we get 𝑑𝑥 = .
3
𝑥𝑢3 𝑑𝑢
Substituting for 𝑢 and 𝑑𝑥 gives ∫ 𝑥(3𝑥 − 5)3 = ∫ . We cannot integrate because
3
𝑢+5
we have both 𝑥 and 𝑢, so we remove 𝑥 by solving for 𝑥 in 𝑢 = 3𝑥 − 5 to get 𝑥 = .
3
𝑥𝑢3 𝑑𝑢 (𝑢+5) 𝑢3 𝑑𝑢 1 1 𝑢5 5𝑢4
Then ∫ =∫ = ∫(𝑢4 + 5𝑢3 )𝑑𝑢 = 9 [ 5 + ] + 𝐶.
3 3 3 9 4
(3𝑥−5)5 5(3𝑥−5)4
Hence ∫ 𝑥(3𝑥 − 5)3 𝑑𝑥 = + + 𝐶.
45 36
1
4. ∫ 𝑑𝑥 = ∫(𝑥 + 1)−1 𝑑𝑥, let 𝑢 = 𝑥 + 1, then 𝑑𝑥 = 𝑑𝑢. Substituting gives ∫(𝑥 +
𝑥+1
1)−1 𝑑𝑥 = ∫ 𝑢−1 𝑑𝑢 = ln 𝑢 + 𝐶 = ln |𝑥 + 1| + 𝐶.
5. Exercise
Integration by Parts
This is one of the main methods of integration which is used often. It is derived from the product rule of
the rules of derivatives.
Recall:
If 𝑢 and 𝑣 are two differentiable functions then
𝑑 𝑑𝑣 𝑑𝑢
(𝑢𝑣) = 𝑢 +𝑣
𝑑𝑥 𝑑𝑥 𝑑𝑥
which we can simply write as
𝑑(𝑢𝑣) = 𝑢𝑑𝑣 + 𝑣𝑑𝑢
Integrate on both sides to obtain
⟹ 𝑢𝑣 = ∫ 𝑢𝑑𝑣 + ∫ 𝑣𝑑𝑢
b) ∫ ln 𝑥 𝑑𝑥
Solutions
a) Let 𝑢 = 𝑥 ⟹ 𝑑𝑢 = 𝑑𝑥, then 𝑑𝑣 = √1 + 𝑥𝑑𝑥, then integrating both sides gives 𝑣 =
3
(1+𝑥)3/2 (1+𝑥)3/2 (1+𝑥)2
∫ √1 + 𝑥 𝑑𝑥 = 3/2
, Therefore ∫ 𝑥√1 + 𝑥 𝑑𝑥 = 𝑥 3/2
−∫ 3 𝑑𝑥 =
2
5 3 5
3
2𝑥 2 (1+𝑥)2 2𝑥(1+𝑥)2 4(1+𝑥)2
(1 + 𝑥) −
2
5 +𝐶 = − +𝐶
3 3 3 15
2
𝑑𝑥
b) Let 𝑢 = ln 𝑥 ⟹ 𝑑𝑢 = 𝑥
, then 𝑑𝑣 = 𝑑𝑥, then integrating both sides gives 𝑣 = 𝑥, then
𝑑𝑥
∫ ln 𝑥 𝑑𝑥 = 𝑥 ln 𝑥 − ∫𝑥 𝑥 = 𝑥 ln 𝑥 − ∫ 𝑑𝑥 = 𝑥 ln 𝑥 − 𝑥 + 𝐶
Note that, under the integration by parts, when determining the value of 𝑣, we integrate both
sides of the equation. This is similar to solving differential equations that are variable separable.
Instead of having the constant of integration 𝐶 as unknown, the initial conditions can be given to
help us find the value of 𝐶. That is, given the marginal cost function, we can determine the cost
function using integration if say the value of fixed cost is given. This is referred to as definite
integral.
7.2.4 DEFINITE INTEGRALS
Definite integration can be viewed as solving variable separable differential equation. Given the
derivative
𝑑𝑦
= 𝑥 2 … … … … . . . (1)
𝑑𝑥
We can solve for 𝑦 like we solved for 𝑣 in the integration by parts technique as follows:
𝑑𝑦
= 𝑥 2 ⟹ 𝑑𝑦 = 𝑥 2 𝑑𝑥
𝑑𝑥
Integrating both sides yields
∫ 𝑑𝑦 = ∫ 𝑥 2 𝑑𝑥 ⟹ 𝑦 = ∫ 𝑥 2 𝑑𝑥 … … … … (2)
Note that:
19
- From (4), 𝑦(3) − 𝑦(2) = 3
.
3
3 𝑥3
- From (2), if we are to find 𝑦 between 2 and 3, we can write it as 𝑦 = ∫2 𝑥 2 𝑑𝑥 = 3 2
|
27 8 19
= − = .
3 3 3
𝑏
The integral ∫𝑎 𝑓(𝑥) 𝑑𝑥 is the definite integral which, by the fundamental of theorem of calculus
states that:
If 𝑓(𝑥) is a continuous function for all 𝑥𝜖 [𝑎, 𝑏] and 𝐺(𝑥) is an anti-derivative of 𝑓(𝑥),
𝑏
then ∫𝑎 𝑓(𝑥) 𝑑𝑥 = 𝐺(𝑏) – 𝐺(𝑎). The numbers 𝑎 and 𝑏 are called the limits of
integration.
Examples
a) Evaluate the following integrals
𝑏 1
(i) ∫𝑎 𝑥 𝑑𝑥 (ii) ∫0 (6𝑥 5 − 2𝑥 3 + 7)𝑑𝑥
b) Find the cost function given that the marginal cost of a certain firm is
𝐶 ′ (𝑥) = 0.009𝑥 2 − 0.04𝑥 + 32 and that the cost of producing 100 units is M11400.
Solutions
a) We will use power rule to integrate the given functions and evaluate them using the limits
of integration.
𝑏
𝑏 𝑥2 1
(i) ∫𝑎 𝑥 𝑑𝑥 = 2 𝑎
| = 2 [𝑏 2 − 𝑎2 ]
1
1 6𝑥 6 2𝑥 4 1 1
(ii) ∫0 (6𝑥 5 − 2𝑥 3 + 7)𝑑𝑥 = ( − + 7𝑥)| = 1 − + 7 = 7
6 4 0 2 2
b) This is an indefinite integral question with given initial conditions. That is, we firstly need to
find the cost function and then evaluate it at the given conditions. Now,
0.009𝑥 3 0.04𝑥 2
𝐶(𝑥) = ∫(0.009𝑥 2 − 0.04𝑥 + 32) 𝑑𝑥 = ( − + 32𝑥 + 𝐶)
3 2
= 0.003𝑥 3 − 0.02𝑥 2 + 32𝑥 + 𝐶
Now, it is given that
𝐶(100) = 11400 ⟹ 𝐶(100) = 0.003(1003 ) − 0.02(1002 ) + 32(100) + 𝐶 ⟹
11400 = 6000 + 𝐶 ⟹ 𝐶 = 5400.
Therefore, the required cost function is 𝐶(𝑥) = 0.003𝑥 3 − 0.02𝑥 2 + 32𝑥 + 5,400.
The definite integral is sometimes viewed as the area enclosed by the curve 𝑓(𝑥) and the lines
𝑥 = 𝑎 and 𝑥 = 𝑏. We check the validity of this view in the next topic.
7.2.5 AREA UNDER A CURVE
Let 𝑦 = 𝑓(𝑥) be a continuous function of 𝑥 on a closed interval [a, b]. In this case for
better understanding, you assume that 𝑓(𝑥) is positive in the closed interval i.e. 𝑓(𝑥) >
0 for all 𝑥𝜖[𝑎, 𝑏]. Then the problem to be considered is to calculate the area bounded by
the graph 𝑦 = 𝑓(𝑥) and the vertical lines 𝑥 = 𝑎 and 𝑥 = 𝑏 and below by the 𝑥 – axis as
shown in the Figure below.
30
25
20
15
A B C
10
0
1 2 3 4
You can start by dividing the area into 𝑛 thin strips of uniform width 𝛥𝑥 = (𝑏 − 𝑎)/𝑛 by
lines perpendicular to the 𝑥 – axis at the end points 𝑥 = 𝑎 and 𝑥 = 𝑏. These will form
many intermediate points which can be numbered as 𝑥1 , 𝑥2 , . . 𝑥𝑛−1 .
The sum of the areas of these 𝑛 rectangular strips gives an approximate value for the area
under the curve. That is, if 1 unit is 1 strip, then 𝑛 = 3. Recall that the area of a rectangle
is length x width, so then the total area of the above diagram is
The diagram is a rectangle, so its area without cutting into strips is 25 × 3 = 75.
Using integration, if 𝑓(𝑥) = 25, the area under the curve 𝑓(𝑥), the lines 𝑥 = 1 and 𝑥 = 4
4 4 4 𝑥 4
is ∫1 𝑓(𝑥) 𝑑𝑥 = ∫1 25 𝑑𝑥 = 25 ∫1 𝑑𝑥 = 25 1| = 25(4 − 1) = 75, which is the enclosed
1
area above.
𝑏
Thus, the area under a curve can be obtained by the defined integral ∫𝑎 𝑓(𝑥)𝑑𝑥.
Example
Find the area enclosed by the curve 𝑓(𝑥) = 𝑥 2 , the lines 𝑥 = 2 and 𝑥 = 3.
Solution
3
3 𝑥3 27 8 19
By integration, the area is ∫2 𝑥 2 𝑑𝑥 = | = −3= .
3 2 3 3
If the area is enclosed by two curves, say 𝑓(𝑥) and 𝑔(𝑥), then the enclosed area becomes
𝑏
∫𝑎 [𝑓(𝑥) − 𝑔(𝑥)]𝑑𝑥 , where 𝑎 and 𝑏 are the 𝑥 values of the points of intersection of the
two curves. This is will not be covered in this module.
SUMMARY
This Unit introduced you to Differentiation and integration. You will have learnt
practical application of these concepts and how the topic of calculus can be linked
to previous units such as ratios, rates and proportion and calculating area .
ACTIVITY 7
1. What is the slope of the function 𝑦 = 𝑥 3 𝑎𝑡 𝑥 = 1 ?
𝑥
2. Compute the derivative of 𝑓(𝑥) = 𝑥−2 by a) using the quotient rule b) using the
limit definition of the derivative
𝑓(1+𝑥)−𝑓(1)
3. If 𝑔(𝑥) = 2𝑥 3 + ln𝑥 is the derivative of 𝑓(𝑥), find lim . Hint: find
𝑥→0 𝑥
𝑓(𝑥).
4. Sketch the graph of 𝑓(𝑥) = 3𝑥 4 − 8𝑥 3 + 10 after answering the following
questions2:
b. Where is the graph increasing, and where is decreasing?
c. Where is the graph concave upward, and where is it concave downward?
d. Where are the local minima and local maxima? Establish conclusively that
they are local minima and maxima
e. Where are the inflection points?
f. What happens to 𝑓(𝑥) as x →∞ and as x →−∞.
6 𝑥3
5. Compute ∫5 𝑑𝑥. Your answer should be in the form of an integer
𝑒 𝑥 +9
10
6. Evaluate ∫2 3√𝑧 − 1𝑑𝑧
7. Given the demand equation 𝑥 3/2 + 50𝑝 = 1000 and the cost function
𝐶(𝑥) = 50 + 𝑥 3/2, find
(i) the marginal cost.
(ii) the marginal revenue.
2
Refer to curve sketching guidelines in the Appendix
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8. Find the cost function given that the marginal cost of a certain firm is
𝐶 ′ (𝑥) = 24 − 0.03𝑥 + 0.006𝑥 2 and that the cost of producing 200 units is M22,
700.00
COURSE SUMMARY
LESSONS LEARNED
You are encouraged to reflect upon the lessons learned from this course. You should create
your own list of lessons learned. You should note areas or topics that you would like to
explore further. Just because the course has ended you should continue to gain additional
expertise by reading Communications and Business journals, articles and books. You may
even want to participate in workshops and conference in Business Communications.
It is hoped that you will take the knowledge and skill you have learned during completion of
this course to help improve your personal and business communications skills. This course
should support the entrepreneur who is just starting out and individuals working in more
mature organizations.
COURSE EVALUATION
As a final step you are asked to complete a course evaluation. Your institution will provide
you with the form and instructions on how to complete it and submit it.
COURSE APPENDICES
Here find
The following serve as a guide to sketching a curve 𝑦 = 𝑓(𝑥). Not every item is relevant
to every function, e.g, a function may not have an asymptote but the guidelines provide
all the information you need to make a sketch that displays the important aspects of the
function.
A. DOMAIN
It is often useful to start by determining the domain of 𝑓(𝑥), i.e. the set of values of
𝑥 for which 𝑓(𝑥) is defined.
B. INTERCEPTS
i) The y - intercepts, i.e. 𝑓(0) tells us where the curve crosses the y - axis.
ii) The x - intercepts, i.e. set 𝑦 = 0 and solve for 𝑥. This step can be omitted if
the equation is difficult to solve.
C. ASYMPTOTES
i) Vertical Asymptotes
𝑝(𝑥)
For a rational function 𝑓(𝑥) = 𝑞(𝑥) , we get the vertical asymptotes by
equating 𝑞(𝑥) to zero and solving for 𝑥. The value of 𝑥 gives a vertical line
which is an asymptote of the curve. In general, the line 𝑥 = 𝑐 is a vertical
asymptote of the graph of the function 𝑓 if either:
lim+ 𝑓(𝑥) = ∞ 𝑜𝑟 − ∞ or
𝑥→𝑐
lim 𝑓(𝑥) = ∞ 𝑜𝑟 − ∞
𝑥→𝑐 −
i.e. find the points where 𝑓”(𝑥) equals zero or doesn’t exist then test concavity.
Exercises:
𝑥 2 −4𝑥+4 𝑥 2 −32𝑥 𝑥 3 −1
1. 𝑓(𝑥) = 2. 𝑦 = 3. 𝑓(𝑥) = 𝑥 2 −𝑥−2
𝑥2 2𝑥+1
The second derivative test can be used to classify the critical points i.e. it can
determine whether the point gives the maximum or the minimum value just like the
first derivative test. The test can also be used in Applied Maxima or Minima
(Optimization) problems to determine the required dimensions that minimize or
maximize certain items or quantities.
15 56 125
d. e. f.
10 1000 1000000
2. Indicate the place value of each non-zero digit in the following decimals:
a. 5.6 b. 45.3 c. 176.5
3. Round off each of the following decimals to the nearest hundred, the nearest ten, the
nearest whole number, the nearest tenth, the nearest hundredth, and the nearest
thousandth:
(a) 60846.2785 (b) 340.0058 (c) 529.5060 (d) 499.8299
4. Copy and complete the following table bye estimating the given numbers to the specified
accuracy.
5. Estimate each of the following sums and differences. Then determine the exact
answers:
a) 58.93+129.67+70.14
b) 3,797.5-412.6
6. Perform the indicated operation on each of the following decimals::
(a) 0.007 0.3 (b) 0.5 0.06 (c) 18.09 6.2 (d) 0.0071 0.038
(d) 32.6 2.6 (e) 186 0.87 (f) 74.362 3.26
a) 7856 to 3 sf b) 59056 to 2 sf
c) 134 to 1 sf d) 547324 to 4 sf
e) 503 to 1 sf f) 8964 to 2 sf
g) 521 to 2 sf h) 94532 to 3 sf
i) 32 to 1 sf j) 4572974 to 5 sf
k) 1.457 to 2 sf l) 5.08 to 2 sf
m) 3.56 to 1 sf n) 12.57 to 1 sf
o) 7.3425 to 3 sf p) 0.074 to 1 sf
q) 367.4 to 2 sf r) 45.924 to 4 sf
s) 0.675 to 2 sf t) 168.305 to 4 sf
3 4 2 4
a) b) c) d)
5 13 9 11
Exercises A
1. What percentage of
(a) 25 is 5 (b) 200 is 60 (c) 90 is 18
(d) 100 is 20 (e) 55 is 11 (f) 160 is 4 ?
2. Find the number N given that
a) 20% N 15 (b) 14% N 63 (c) 8% N 50
(d) 55% of N 121 (e) 32% of N 12 (f) 20% N M 45.00
3. Find the unknown whole number given that
(a) 25% of x 75 (b) 110% of N 77 (c) 300% of y 75
4. Express the first number as a percentage of the second.
(a) 56, 200 (b) 785, 1000 (c) 45, 300
5. Tsepang has 36 marbles in his pocket. This is 60% of the total. How many marbles does
he have altogether?
6. Thabo saves M 50.00 out her wages every week. This is 25 % of her total weekly wage.
How much does she earn per week?
7. Big Apple Computer Center employs 120 computer programmers. This company has
400 employees. What percentage of the employees are programmers?
8. A bottle contains 2 liters of orange juice. Susan drinks 400 milliliters. What percentage
is left?
9. A company made 450 machines. If 8% were found to be faulty, how many were in
good condition?
10. Bokang spent M 50.00 on a T-Shirt. This was 20% of the money she had saved. How
much money did she save?
Exercises B
3. Copy and complete the following table.
11. Limpho bought a bicycle for M 2790.00 . She later sold it to her friend for M1900.00 .
Calculate her percentage loss, correct to 1 decimal place.
12. How much did a table cost a dealer if he used a 35 % markup on the cost and sold the
table for M 1080.00 .
13. Find the selling price of each of the following articles
a) A dress, costing M 800.00 , with a 25 % markup.
b) A camera, costing M 240.00 , with a 15 % markup.
14. A refrigerator was purchased by a store for M 5,500.00. It was marked to sell at a profit
of 28 % of the cost. It was sold at a discount of 10 % on the marked price. Find the
selling price, and the profit made from the sale. This profit is called the gross profit.
15. Tehoho bought a bicycle for M 2,100.00 and marked up the price of the bicycle by 30 %
. He sold it to his friend at a discount of 10 % .
a) What was Teboho’s gross profit?
b) What was his gross percentage profit?
Exercises C
1) Find the total cost of buying on credit and the interest for the following.
a) The cash price of a television is M 7,000.00 . It can be bought with a deposit of 20% and
12 monthly payments of M 500.00 .
b) A cassette player costs M 2,500.00 . The credit requires a deposit of 15% and 12
monthly installments of M 210.00 .
c) A bicycle that costs M 3,500.00 can be on credit with a deposit of 25% followed by 24
monthly installments of M150.00 .
2) Mrs. Boliba buys a M 6,750.00 fridge. She arranges to pay a deposit of M 2,000.00 and
M 475.00 per month for 12 months. How much does she pay for the fridge?
3) Lisebo buys a car. She pays a deposit of M 35,000.00 and M 1,250.00 per months for 36
months. What is the total cost of the car?
4) Mr. Ralintja buys bedroom furniture on hire purchase. The cash price is M 7,499.00 . The
deposit is M 2,099.00 and the balance plus a 15% interest on the balance must be paid in
six equal monthly installments. Calculate
i) the outstanding balance after payment of the deposit.
ii) the interest on the outstanding balance.
iii) the total amount to be paid
iv) the monthly installments
Exercises D
1) The VAT has just been raised from 10% to 14% by filling the table below find the increase
in tax.
(a) M 100.00
(b) M 320.00
(c) M 200.00
(d) M 55.00
(e) M 6,500.00
2) Work out the VAT at the rate of 14% for the following prices
7) Lineo’s monthly salary is M 5,660.00 . Calculate her net salary if the monthly PAYE is 25%
with M 1,500.00 tax free.
8) Limpho works at same company as Lineo, above, but her net monthly income is M 4,500.00
. How much is her gross monthly income.
Exercises E
1. A man has a salary of M450 per month. His salary is increased by 15%. What is his new
salary?
2. The selling price of a table is M32. The price is reduced by 20% at a sale. What is the
new selling price?
3. Chocolate bars normally cost 80 cents, but are on sale for 40 cents each. Calculate the
percentage discount.
4. 8% of the contents of a barrel of paraffin is removed. The barrel now contains 138 litres.
How much paraffin was removed?
5. A school buys boxes of pencils. Each box contains 144 pencils and costs M18 per box.
The school sells the pencils at 15 Lisente each. Does the school make a profit or a loss?
What is the profit or loss as a percentage?
6. A shopkeeper bought 4 radios each costing M45. He sold three of them at a 20% profit
and the other one at a loss of 40%.
(a) What was his total selling price for the four radios?
(b) What was his total loss or gain?
(c) What was his percentage loss or gain?
7. Calculate the simple interest and the accumulated value on the following.
(a) M1200 for 7 years at 5% per year.
(b) M1500 for 1 year at 4% per annum.
8. Mr. Chabane invested a sum of money for three years at 5% per annum simple interest.
The amount of interest received was M150.
(a) How much interest did Mr. Chabane get per year?
(b) How much money did he invest?
9. A business man borrowed M500 at 5% simple interest per annum.
(a) How much money did he owe after one year?
(b) He paid interest of M75. For how long did he borrow the money?
10. (a) Teboho puts M700 into a bank account and receives interest of M42 after one year.
What is the rate of interest?
(b) Khomotso puts M1200 into a bank and receives M384 in simple interest after four years.
What is the annual rate of interest?
11. A bank charges 4% compound interest on a M1000 loan, which is to be paid back in
three years. Find the total amount of interest to be paid by the borrower of this loan
after three years.
12. (a) You borrow M10, 000 for 3 years at 5% annual interest compounded annually. How
much will you have to pay after 3 years?
(b) Thato borrowed a loan of M600 for two years at the bank. A bank charges 8% compound
interest on this loan. Find how much interest will Thato have to pay the bank after two years.
BUSINESS CALCULATIONS METHODS
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