Quantitative Techniques 3BCOM

QUANTITATIVE
TECHNIQUES
Semester – III
Student Workbook
2023
For Private circulation only
All rights reserved. No part of this work may be reproduced in any form, by any
means, without written permission from JAIN UNIVERSITY.
The workbook is developed for the students of JAIN UNIVERSITY.
For Internal Circulation Only
Edition: 2020
Revised : 2023
NOTE:
THE WORKBOOK IS ONLY A DIRECTIVE FOR STUDENTS AND NOT

EXHAUSTIVE TOWARDS THE COURSE. THE STUDENTS MUST REFER
TO THE REFERENCE BOOKS AND READING LISTS MENTIONED.
Developed by:
School of Commerce Studies
JAIN UNIVERISTY
Published Printed by:

Center for Virtual Learning & Innovation,
JAIN UNIVERSITY

INDEX
Sl. No. Module Page No.
1 Module - 1 01-64
2 Module - 2 65-99
3 Module - 3 100-138
4 Module - 4 139-226
5 Module - 5 227-276
Course Objectives
The objective of this course is to develop a strong foundation in mathematics and statistical theory
as the basis for growth over a professional career and to develop a high level of expertise in the
application of statistics in finance.
Course Outcomes (CO)

1. Identifying business problems into arithmetic matrices and linear equations for finding
solution by applying appropriate methods
2. Illustrate the application of Ratio and Proportion in day-to-day business activities
3. Examine the financial aspects of present value and future values of money with help of
mathematical expressions, formulae and relationships in a variety of contexts
4. Distinguish the various data dispersion in the business scenario to minimize the risk
5. Assess the relationship between variables by using Correlation and Regression techniques
to find predictive solutions in business

Program: BCOM Semester: III
Subject: QUANTITATIVE TECHNIQUES
Total Hours: 45 Credits: 3
Module 1: Matrices & Determinants

Definition & Types of matrices - Matrix arithmetic - Determinants –concept and solutions 2x2 and
3x3 matrices - Cramer’s rule –solutions for simultaneous equations with two and three variables -
Inverse of a matrix – minors, cofactors and ad-joint of a matrix - Business application based
problems and solutions.
Module 2: Ratio and Proportions

Concepts of ratios - Duplicate, triplicate , sub duplicate and triplicate ratios - Proportions –concepts
and types - Commercial problems based on ratios and proportions.
Module 3: Commercial Arithmetic

Simple interest - Compound interest - Annuities - Bill discounting - Commercial application based
problems and solutions.
Module 4: Univariate Data Analysis

Measures of central tendency - Measures of dispersion- concepts - Absolute and relative measures
Range-concepts and problems - Quartile deviation- computation of QD and Coefficient of QD -
Mean deviation - Standard deviation – computation of SD and Coefficient of variation.
Module 5: Bivariate Data Analysis

Correlation – meaning & types - Spearman’s Rank correlation - Probable error - Concurrent
deviation – Regression - Regression lines - Commercial application-based problems on correlation
and regression.
Reference Books:
• Quantitative methods for business decisions by: G.K.Ranganath, Himalaya publishers
• Quantitative methods for business by:7 authors, Vision publishing house
• Business Mathematics, J.K.Singh, Himalaya publications
• Business Statistics , S.D.Sharma, Prsentishall
• Statistical Methods, by S.P.Gupta, S.Chand
Online Resources:
https://www.mathplanet.com/education/algebra-2/matrices/
https://www.hitbullseye.com/Ratio-and-Proportion
http://www.theretirementdesk.co.uk/annuity-case-studies/
https://statisticsbyjim.com/basics/measures-central-tendency-mean-median-mode/
https://www.toppr.com/guides/business-mathematics-and-statistics/measures-of-central-
tendency-and-dispersion/measure-of-dispersion/

COURSE MAPPING:
PO1 PO2 PO3 PO4 PO5 PO6 PO7

CO 1 3 1 2 1 1 1 2
CO 2 3 1 2 2 1 1 2
CO 3 3 1 2 2 1 1 2
CO 4 3 1 2 2 1 1 3
CO 5 3 1 3 2 1 1 3
Total 15 5 11 9 5 5 12

Module – 1
Matrices and Determinants
1.1 Introduction
In the 19th Century, the concept of matrices was introduced by French Mathematician Caley but
until the 20th Century the theory was not well advanced. These days, however matrices have been
found to be of great utility in all the branches of science. Matrices all the more useful for practical
business purposes and therefore occupy important place business mathematics and quantitative
methods.
Definition of Matrix
A system of mn elements (real or complex) written in rectangular array of m rows and n columns
is called an m×n matrix. It is read as m cross n matrix.
A matrix is a rectangular arrangement of numbers in horizontal lines (rows) and vertical lines
(columns). Numbers are enclosed in square brackets or open brackets or pair of double bars. It is
denoted by A, B, C, …
2 3 1 2 3
For example, A2×2 = ( ) ; B2×3 = ( ) m≠n
1 0 2×2 0 5 0 2×3
An m×n matrix can be written in general as
𝑎11 𝑎12 𝑎13 ........... a1𝑛

𝑎21 𝑎23 ...........a2𝑛
𝑎22
Am×n = 𝑎31 𝑎33 ...........a3𝑛 aij
𝑎32
𝑎𝑖1
𝑎
( 𝑚1 𝑎𝑚2 𝑎𝑚3 ..........a𝑚𝑛 )
The number occurring in the ith row and jth column of the matrix is denoted by aij. They are called
the elements of the matrix.
The horizontal and vertical lines are mathematically called as rows and columns.
Order of Matrix: The number of rows and columns a matrix consists of is called its order.
𝑎 𝑏
Example: ( ) is a matrix of order 2 by 2
𝑐 𝑑 2×2
Notations: A matrix is usually denoted by capital letters. The elements of a matrix are shown
enclosed in ordinary brackets ( ) or square brackets [ ].
For Private circulation only 1

 2 3  2 4
Example : A =   or A =  
 4 8 3 8 
Remark:
(i) In a matrix, the number of rows need not be equal to the number of columns.
(ii) A matrix has no value.
1.2 Types of Matrices

Any matrix is broadly classified into two types, i.e., Rectangular matrix and Square matrix.
Rectangular Matrix
Any matrix with unequal number of rows and columns.
1 2
2 −4 3 2
3 4
For example, A = [ ] or A = [1 0 5 −1]
7 5
5 6 −4 8 3×4
−3 8 4×2
In particular, a rectangular matrix may be a row matrix or column matrix.
(i) Row Matrix:

A Matrix is said to be a Row Matrix, if it has only one row and any number of columns i.e., if it is
the type 1 × n.
Example : [3 6 7 -4 0] is a row matrix of order (1 x 5)

[0 0 0 0] is a row matrix of order (1 x 4)
(𝑎11 𝑎12 𝑎13 )1×3
(ii) Column Matrix:

A matrix is said to be column matrix, if it has only one column and any number of rows i.e; if it
is of the type m x 1.
1 𝑎11
2
Example: [ ] and (𝑎21 )
3 𝑎31 3×1
4 4×1
Square Matrix
A matrix in which the number of rows is equal to the number of columns is called a square
matrix.

𝑎11 a12
Example = [ ]
𝑎21 a22
1 2 3
[4 5 6] is square matrix of order (3 x 3)
7 -2 -3
Principal Diagonal
In a square matrix, the diagonal which start from left hand top corner and ends at right hand bottom
corner is called “The Principal Diagonal or Leading Diagonal” and the elements in this diagonal
are called principal diagonal elements.
Diagonal Matrix
A Diagonal Matrix is a square matrix in which all the elements except the elements in the principal
diagonal are zeros.
9 0 0
 
Example :  0 − 2 0  is a diagonal matrix of dimension (3 x 3)
0 0 1
 
(
1 0
0 1
) is a diagonal matrix of dimension (2 x 2) 5I3 = 5 0 0
0 5 0
0 0 5
0 0 4
(0 3 0) is not a diagonal matrix
2 0 0
Scalar Matrix
It is diagonal matrix in which all the elements in the principal diagonal elements are equal.
3 0 0
7 0
Example (0 3 0) ( ) and are Scalar Matrix is of order 2 and 3 respectively.
0 7
0 0 3
Remarks: (i) Every Scalar Matrix is a diagonal Matrix

(ii) Every Diagonal Matrix is a Square Matrix
Unit Matrix (Identity Matrix)

A scalar matrix in which all the principal diagonal elements are one is called as a “Unit or Identity
Matrix”. It is always denoted by I.
Remarks:-

(i) Every Unit Matrix in a Scalar Matrix as well as a Diagonal Matrix. But the converse is
not true.
 1 1  0 1   1 1   1 0 
(ii)         are not unit matrices.
 1 1  1 0   0 0   0 0 
Example:
1 0 0
1 0  
I = [1]1 x 1 I =   22 I = 0 1 0 33
Unit matrices of order 1, 2, 3
0 1 0 0 1
 
Triangular Matrix
Any square matrix in which all the elements above or below the principal diagonal elements are
zeros.
(a) Upper Triangular Matrix
A Square Matrix, all of whose elements below the principal diagonal are zero is called an “Upper
Triangular Matrix”.
 2 3 4  2 3 4
   
Example A =  0 1 2  A =  0 1 2
 0 0 2  0 0 2
   
(b) Lower Triangular Matrix
A square matrix, all of whose elements above the leading diagonal are zero is called a “Lower
Triangular Matrix”.
 2 0 0
  2 0 0
Example B =  3 1 0  𝐵 = (3 1 0 )
 4 5 6 4 5 6
 
Thus and are upper and lower Triangular Matrices respectively
1.3 Transpose of a Matrix

The matrix obtained from a given matrix A by inter-changing its rows and columns is called
Transpose of A is denoted by A’ or AT.
2 3 1
Example: Consider A = ( ) of order (2 x 3)
1 4 2
If we interchange its rows and columns, then we get
2 1
T
A’ (or) A = (3 4). This matrix is called the Transpose of the Matrix A.
1 2

Symmetric Matrix
A symmetric matrix is a square matrix that remains unaltered when its transpose is calculated.
That means, a matrix whose transpose is equal to the matrix itself, is called a symmetric matrix.
Any square matrix A is said to be symmetric matrix, if satisfied the conditions A = AT

1 2 3 1 2 3
T
Example: A = (2 3 4) A = (2 3 4) aij = aji
3 4 −5 3 4 −5
1 2 3 1 2 3
𝐴 = (2 1 4) 𝐴𝑇 = (2 1 4)
3 4 1 3 4 1
Skew Symmetric Matrix

A matrix can be skew symmetric only if it happens to be square. In case the transpose of a matrix
happens to be equal to the negative of itself, then one can say that the matrix is skew symmetric.
Therefore, for a matrix to be skew symmetric, A’ = −A.
If A = − At Aij = − Aji
0 1 2 0 −1 −2
Example: 𝐴 = (−1 5 3) 𝐴𝑇 = (1 5 −3) = − A
−2 −3 8 2 3 8
Zero Matrix or Null Matrix

A Matrix of any order in which all the elements are zeros, is called a zero Matrix or Null Matrix
(Void Matrix). It is always denoted by ‘0’
0 0 0
0 0
Example: [0 0], [0 0 0], ( ) , (0 0 0) are all Null Matrices.
0 0
0 0 0
Sub Matrix
The matrix formed by deleting or omitting either some rows or columns from a Matrix. A is known
as the sub-matrix of A.
2 6 7 8
Example: If A = (3 1 2 3)
4 2 3 5
2 6 7 6 7 8 3 1 2
Sub Matrices of ‘A’ are ( ) ( ) and ( )
3 1 2 1 2 3 4 2 3
Equality of Matrices

Two Matrices of the same order are said to be equal only when the corresponding elements (the
elements in the respective of the two matrices) are equal.
3 −4 2 3 −1 3 −4 2
Let, A = ( ) B=( ) C=( )
−1 4 7 −4 4 −1 4 7
Here, A = C but A  B  C
Find the values of x, y, z and a in the following equation.
x+3 = 0 → x = 0 – 3 = − 3
2y+x = −7 → 2y − 3 = −7 ➔ 2y = −7 + 3 ➔ 2y = −4 ➔ y = −2
z−1 = 3 ; z = 3 +1 = 4
4a – 6 = 2a ➔ 4a – 2a = 6 ➔ a =3
1.4 Concepts of addition, subtraction and Multiplication of matrices – related Problems
Addition and Subtraction
We say that two matrices can be added or subtracted only when their orders are same. The sum
and difference is obtained by adding or subtracting the corresponding elements of the matrices.
a 1 b 1  c1 d 1 
   
Example: (a) Let,  a 2 b 2  3  2 c 2 d 2  3  2
a  c d 
 3 b3  3 3
a 1 b1 c1 d1

   
then A + B =  a 2 b 2   c 2 d 2
a b 3  c d 3 
 3  3
a 1 c1 b1 d1 
 
= a 2  c 2 b 2 d 2
a  c b 3  d 3  3  2
 3 3

5 2 0 −3 1 2
(b) A = ( ) and B=( ) Find A+B and A – B
3 1 4 2×3 7 4 −5 2 × 3
5−3 2+1 0+2 2 3 2

Then A + B = ( )= ( )
3+7 1+4 4−5 10 5 −1 2 × 3
5 − (−3) 2 − 1 0−2
A–B=( )
3−7 1 − 4 4 − (−5)
5+3 2−1 0−2

A–B=( )
3−7 1−4 4+5
8 1 −2
A–B=( )
−4 −3 9
1 2
1 2  
(c ) If A =   and B = 4 5
3 4 6 7
 
Then A+ B is not defined as they are not of the same order.
Multiplication of a Matrix by a Scalar

The product of a Matrix A by a Scalar number K is a matrix whose each element is K times the
corresponding elements of A.
𝑎 𝑏1 𝑐1
Thus, if A = ( 1 )
𝑎2 𝑏2 𝑐2
𝑘𝑎 𝑘𝑏1 𝑘𝑐1
Then kA = ( 1 )
𝑘𝑎2 𝑘𝑏2 𝑘𝑐3

2 4 −4 −8
Similarly -2 ( )= ( )
3 6 −6 −12
−1 0 −5 0
and 5( )= ( )
2 3 10 15
Thus kA is called the Scalar multiplication of the Matrix A.
5 3 6 8
Example 1: If A =( ) and B = ( ) find out 2A + 3B
4 6 9 1
5 3 10 6
Solution : 2A = 2( )= ( )
4 6 8 12
6 8 18 24
3B = 3 ( ) = ( )
9 1 27 3
10 6 18 24
Consider 2A+3B = ( )+ ( )
8 12 27 3
10 + 18 6 + 24 28 30
= ( )= ( )
8 + 27 12 + 3 35 15
9 1 1 5
Example 2: If A =( ), B = ( ) find a Matrix X such that 2A+5B+2X=0
4 3 7 12
2A+5B+2X=0 → 2A+5B = −2X
2X = −2A – 5B
2X = − (2A+ 5B)
1
X = − 2 (2𝐴 + 5𝐵)
9 1 1 5
2𝐴 + 5𝐵 = 2 ( ) + 5( )
4 3 7 12
2×9 2×1 5×1 5×5

2𝐴 + 5𝐵 = ( )+( )
2×4 2×3 5×7 5 × 12
18 2 5 25
2𝐴 + 5𝐵 = ( )+( )
8 6 35 60
18 + 5 2 + 25
2𝐴 + 5𝐵 = ( )
8 + 35 6 + 60
23 27
2𝐴 + 5𝐵 = ( )
43 66
1
X = − 2 (2𝐴 + 5𝐵)
1 23 27
X = −2 ( )
43 66
−23 −27
2 2
X= ( 43 −66)
− 2 2
−23 −27
2 2
X= ( 43 )
− −33
2
−11.5 −13.5
X= ( )
−21.5 −33
11.5 13.5
X=− ( )
21.5 33
Verification:
2A+5B+2X=0
23 27 11.5 13.5
( )−2( )
43 66 21.5 33
23 27 23 27 0 0
( )− ( )= ( )
43 66 43 66 0 0
Solution: Given 2A+5B+2X=0. 2X = -2A-5B
18 2 5 25 23 27
2A = ( ); 5B = ( ) 2A+5B = ( )
8 6 35 60 43 66

−23 −27
2X = −(2A+5B) = ( )
−43 −66
−1
𝑋= (2𝐴 + 5𝐵)
2
−1 23 27
𝑋= ( )
2 43 66
−23 −27
2 2
𝑋 = (−43 )
−33
2
18 2 5 25 −23 −27
2X = −( )− ( )=( )
8 6 35 60 −43 −66
23 27
− 1 23 27 −2 −2
X= ( ) = ( 43 )
2 43 66 − 2 −33
 1 3 5  0 1 2 9 8 7
Example 3: What is the value of   + 2   − 3  
 2 4 6 3 4 5  6 5 4
1 3 5 0 1 2 9 8 7
Solution: ( )+2( )−3( )
2 4 6 3 4 5 6 5 4
1 3 5 0 2 4 27 24 21
=( )+( )−( )
2 4 6 6 8 10 18 15 12
1 + 0 − 27 3 + 2 − 24 5 + 4 − 21 −26 −19 −12

=( )=( )
2 + 6 − 18 4 + 8 − 15 6 + 10 − 12 −10 −3 4
4 6 −10
Example 4: Solve for A and B if A – 2B = ( )
6 −4 2
4 −8 2
and 2A – B = ( )
4 0 2
4 6 −10
Solution: Now A – 2B = ( ) ………………………. (i) 3x+6y = 24
6 −4 2
3x+5y = 19

4 −8 2
2A – B = ( ) ………………………. (ii) y = 5, x = -2
4 0 2
8 12 −20
(i) × 2 2A – 4B = ( ) …………………. (iii)
12 −8 4
8 12 −20
(iii) – (ii) 2A – 4B = ( )
12 −8 4
4 −8 2
2A – B = ( )
4 0 2
4 20 −22
− 3B = ( )
8 −8 2
4 20 22
− −3
B = ( 38 8
3
2)
−3 −3
3
Substituting the value of B in equation (ii), we get

4 6 −10 4 −8 2
A – 2B = ( ) 2A – B = ( )
6 −4 2 4 0 2
4 20 22 4 20 22
− −3 4 6 −10 − −3 4 −8 2
A − 2 ( 38 8
3
2) = (6 −4 ) 2A - ( 38 8
3
2) = ( )
−3 − 2 −3 −3 4 0 2
3 3 3
8 40 44 4 20 22
−3 − 4 6 −10 4 −8 2 − −3
A − ( 16 16
3 3
4) = (6 −4 ) 2𝐴 = ( ) + ( 38 8
3
2)
−3 − 2 4 0 2 − −3
3 3 3 3
8 40 44 8 44 28
4 6 −10 −3 − 3 −
3 3 3 3
A=( ) + ( 16 16 4) 2𝐴 = ( 4 8 4)
6 −4 2 −3 −3 −3
3 3 3
8 40 44 4 22 14
4−3 6− −10 + −
3 3 3 3 3
A=( 16 16 4 ) 𝐴=( 2 4 2)
6 − 3 −4 + 2−3 −3
3 3 3

4 22 14 4 20 22
− − −3
A= (32 4
3 3
2) B = ( 38 8
3
2)
−3 −3
3 3 3 3
21 16 1
Example 5: Solve for A and B if 3A+2B = ( ) … (1)
21 2 12
−12 −11 5
and 2A – 3B = ( ) … (2)
1 −16 8
42 32 2
Multiply the equation (1) by 2 6A+4B = ( ) … (3)
42 4 24
−36 −33 15
Multiply the equation (2) by 3 6A−9B = ( ) … (4)
3 −48 24
78 65 −13
(3) – (4) 13B = ( )
39 52 0
6 5 −1
B=( )
3 4 0
By substituting the value of B in equation (1), we get
6 5 −1 21 16 1
3A+2( )= ( )
3 4 0 21 2 12
12 10 −2 21 16 1
3A+( )= ( )
6 8 0 21 2 12
21 16 1 12 10 −2
3A = ( )−( )
21 2 12 6 8 0
9 6 3
3A = ( )
15 −6 12
3 2 1 6 5 −1
A= ( ) B=( )
5 −2 4 3 4 0
By substituting the values of A and B in equation (1), we have
21 16 1
3A+2B = ( )
21 2 12

Solution:
42 32 2
(1) ×2 6𝐴 + 4𝐵 = ( ) … (3)
42 4 24
−36 −33 15
(2) ×3 6𝐴 − 9𝐵 = ( ) … (4)
3 −48 24
78 65 −13
(3) – (4) 13𝐵 = ( )
39 52 0
6 5 −1
𝐵= ( )
3 4 0
Now substituting the value of B in equation (1), we get

 21 1 6 1 
3A+2B =  
 21 2 1 2 
6 5 −1 21 16 1
3A + 2 ( )= ( )
3 4 0 21 2 12
12 10 −2 21 16 1
3A + ( )= ( )
6 8 0 21 2 12
21 16 1 12 10 −2
3A = ( )− ( )
21 2 12 6 8 0
9 6 3
3A = ( )
15 −6 12
𝟑 𝟐 𝟏
A=( )
𝟓 −𝟐 𝟒
𝟔 𝟓 −𝟏
𝑩= ( )
𝟑 𝟒 𝟎
5 6 7 3 2 1
Example 6: If A = (8 9 0) B = (9 0 8) find 5A + 3B
1 2 3 7 6 5
5 6 7 3 2 1
Solution : Given, A = (8 9 0) and B = (9 0 8)
1 2 3 7 6 5

3 2 1 25 30 35
5A = 5 (9 0 8) = ( 40 45 0)
7 6 5 5 10 15
3 2 1 9 6 3
3B = 3 (9 0 8) = (27 0 24)
7 6 5 21 18 15
Consider,
25 30 35 9 6 3
5A + 3B= (40 45 0 ) + ( 27 0 24)
5 10 15 21 18 15
25 + 9 30 + 6 35 + 3 34 36 38
= (40 + 27 45 + 0 0 + 24 ) = (67 45 24)
5 + 21 10 + 18 15 + 15 26 28 30
 1 2 2 0
Example 7 : If A =   and B =  find A1 + B1
− 1 3 1 5
1 − 1  2 1 
Solution : A1 =   , B1 =  
2 3 0 5
1 1  2 1 3 0
A1 + B1 =   +   =  
2 3 0 5  2 8
Multiplication of Matrices
Two Matrices can be multiplied only when the number of columns of the first matrix is equal to
the number of rows of second Matrix. Hence product is defined.
i.e., A&B be can be multiplied if. A is of order m×n and B is of order n×p. the matrix AB will be
of order m×p.
x u 
a b c   * a u + b v + c w
Step1 :    y v  =  
d e f  23  z w * *  22
  32

x u 
a b c  
Step 2 :   = * a u + b v + c w
  y v  * 
d e f  23  z w  *  22
  32
x u 
a b c    = * *
Step 3 :    y v   
d e f  23  z w a u + b v + c w * 22
  32
𝑥 𝑢 ∗ ∗
𝑎 𝑏 𝑐
𝑺𝒕𝒆𝒑 𝟒: [ ] [𝑦 𝑣] = [∗ 𝑑𝑢 + 𝑒𝑣 + 𝑓𝑤 ]
𝑑 𝑒 𝑓 2×3 2×2
𝑧 𝑤 3×2
Combining the above four steps, gives us
𝑥 𝑢
𝑎 𝑏 𝑐 𝑎𝑥 + 𝑏𝑦 + 𝑐𝑧 𝑎𝑢 + 𝑏𝑣 + 𝑐𝑤
[ ] [𝑦 𝑣] =[ ]
𝑑 𝑒 𝑓 2×3 𝑑𝑥 + 𝑒𝑦 + 𝑓𝑧 𝑑𝑢 + 𝑒𝑣 + 𝑓𝑤 2×2
𝑧 𝑤 3×2
Example 7 :
2 5 3
If A 1 21 x 2, B =   C =   form as many products as you can.
4 5 2 x 2' 5 2 x1
AB, BC, CA and AC
Solution:
𝟐 𝟓
𝑨𝑩 = [𝟏 𝟐]𝟏×𝟐 [ ] 𝑨𝑩 is or order 1 × 𝟐
𝟒 𝟓 𝟐×𝟐
The number columns of matrix A (2) = The number of rows of matrix B (2).
Therefore, multiplication of AB is possible.
𝐴𝐵 = (1 × 2 + 2 × 4 1 × 5 + 2 × 5)1×2
𝐴𝐵 = (2 + 8 5 + 10)1×2
AB = (10 15)1×2
𝟐 𝟓 𝟑
𝑩𝑪 = [ ] [ ]
𝟒 𝟓 𝟐×𝟐 𝟓 𝟐×𝟏

𝟐×𝟑+𝟓×𝟓
𝑩𝑪 = ( )
𝟒 × 𝟑 + 𝟓 × 𝟓 𝟐×𝟏
𝟔 + 𝟐𝟓
𝑩𝑪 = ( )
𝟏𝟐 + 𝟐𝟓 𝟐×𝟏
𝟑𝟏
𝑩𝑪 = ( )
𝟑𝟕 𝟐×𝟏
𝟑
𝑪𝑨 = [ ] [𝟏 𝟐]𝟏×𝟐 (𝑪𝑨)𝟐×𝟐
𝟓 𝟐×𝟏
𝟑×𝟏 𝟑×𝟐 𝟑 𝟔
=[ ] = [ ]
𝟓×𝟏 𝟓×𝟐 𝟓 𝟏𝟎 𝟐×𝟐
𝟑
𝑨𝑪 = [𝟏 𝟐]𝟏×𝟐 [ ]
𝟓 𝟐×𝟏
AC = [ 𝟏 × 𝟑 + 𝟐 × 𝟓 ]
𝐴𝐶 = [ 𝟏 × 𝟑 + 𝟐 × 𝟓 ]
Matrix Multiplication BA is not possible, because number of columns in Matrix B (3) is not
equal to the number of rows in Matrix A (1).
2 4 7  1 2 5
   9  then find 4 A + 2 B
Example 8: A =  4 0 − 3 + 3 7
− 6 − 8 − 5 4 − 2 − 7
2 4 7  1 2 5 
If 4 A + 2 B = 4 9 0 − 3  + 2 3 7 9 
− 6 − 8 − 5 4 − 2 − 7
Solution :
 8 16 2 8  2 4 1 0   1 0 2 0 3 8 

=  36 0 1 2  + 6 1 4 18  =  4 2 1 4 3 0 
− 2 4 − 3 2 − 2 0 8 − 4 − 1 4 − 1 2 3 6 − 3 4

1 2 3 
Given that A = 2 4 6  verify (5 A)1 = 5 A1
Example 9 :
1 2 3
 5 1 0 15 
 
Solution : 5A = 1 0 2 0 3 0
 5 1 0 15 
 5 10 5 
(5 A) = 10 2 0 10
1
15 3 0 15
1 2 1 
A1 = 2 4 2
3 6 3 
1 2 1 
5 A = 5 2 4 2
1
3 6 3 
1 2 1   5 10 5 
5 A = 5 2 4 2 = 10 2 0 3 0
1
3 6 3  15 30 15 
(5 A)1 = 5 A1
4 2 8 4
Example 10 : If A = [ ] and 𝐵 = [ ] Show that (𝐴𝐵)′ = 𝐵 ′ 𝐴′
6 4 6 2
Order of A = 2x2
Order of B = 2x2
No.of columns in first matrix A = 2
No.of rows in second matrix B = 2
The condition is satisfied for multiplication. We can do AB

𝟒 𝟐 𝟖 𝟒
𝑨= ( ) 𝑩= ( )
𝟔 𝟒 𝟐×𝟐 𝟔 𝟐 𝟐×𝟐
𝟒∗𝟖+𝟐∗𝟔 𝟒∗𝟒+𝟐∗𝟐
AB = ( )
𝟔∗𝟖+𝟒∗𝟔 𝟔 ∗ 𝟒 + 𝟒 ∗ 𝟐 𝟐×𝟐
𝟑𝟐 + 𝟏𝟐 𝟏𝟔 + 𝟒
AB = ( )
𝟒𝟖 + 𝟐𝟒 𝟐𝟒 + 𝟖 𝟐×𝟐
𝟒𝟒 𝟐𝟎 𝟒𝟒 𝟕𝟐
AB = ( ) (AB)T = ( )
𝟕𝟐 𝟑𝟐 𝟐×𝟐 𝟐𝟎 𝟑𝟐 𝟐×𝟐
𝟖 𝟔 𝟒 𝟔
B’ = ( ) A’ = ( )
𝟒 𝟐 𝟐 𝟒
𝟑𝟐 + 𝟏𝟐 𝟒𝟖 + 𝟐𝟒
B’A’ = ( )
𝟏𝟔 + 𝟒 𝟐𝟒 + 𝟖
𝟒𝟒 𝟕𝟐
B’ A’ = ( )
𝟐𝟎 𝟑𝟐
(AB)’ = B’ A’. So, it is proved.
𝟖 𝟒 𝟒 𝟐
𝑩= ( ) 𝑨= ( )
𝟔 𝟐 𝟐×𝟐 𝟔 𝟒 𝟐×𝟐
𝟓𝟔 𝟑𝟐
BA = ( ) Therefore, AB ≠ BA
𝟑𝟔 𝟐𝟎 𝟐×𝟐
𝒙 𝟐 𝟑 𝟒 𝟒
Example 11: Solve for x, y, z given that (𝒚) = (𝟒 𝟓 𝟔) (𝟓 )
𝒛 𝟕 𝟖 𝟗 𝟑×𝟑 𝟔 𝟑×𝟏
Solution:
𝒙 𝟐 𝟑 𝟒 𝟒
(𝒚) = (𝟒 𝟓 𝟔) (𝟓 )
𝒛 𝟕 𝟖 𝟗 𝟑×𝟑 𝟔 𝟑×𝟏
𝒙 𝟐×𝟒+𝟑×𝟓+𝟒×𝟔
(𝒚) = (𝟒 × 𝟒 + 𝟓 × 𝟓 + 𝟔 × 𝟔)
𝒛 𝟕 × 𝟒 + 𝟖 × 𝟓 + 𝟗 × 𝟔 𝟑×𝟏

𝒙 𝟖 + 𝟏𝟓 + 𝟐𝟒
(𝒚) = (𝟏𝟔 + 𝟐𝟓 + 𝟑𝟔)
𝒛 𝟐𝟖 + 𝟒𝟎 + 𝟓𝟒 𝟑×𝟏
𝒙 𝟒𝟕
(𝒚) = ( 𝟕𝟕 )
𝒛 𝟏𝟐𝟐 𝟑×𝟏
Therefore, x = 47, y = 77 and z = 122
Example 12:
Keerthi buys 8 dozen of pens, 10 dozen of pencils and 4 dozen of rubber. Pens cost Rs. 18 per
dozen, pencils Rs. 9 per dozen and Rubber Rs. 6 per dozen. Represent the quantities bought by a
row matrix and prices by a column matrix and hence obtain the total cost.
Solution:
Quantities are expressed as row matrix.
(8 10 4)1×3
18
Prices are expressed as column matrix ( 9 )
6 3×1
18
Total cost = (8 10 4)1×3 ( 9 )
6 3×1
= (8 × 18 + 10 × 9 + 4 × 6)
= 144+90+24
= Rs. 258
Example 13:
A finance company has offices located in every division, every district and every taluka in a state
in India. Assume that there are 5 divisions, 30 districts and 200 talukas in the state. Each office
has 1 head clerk, 1 cashier, 1 clerk and 1 peon. A divisional office has, in addition, an office
superintendent, 2 clerks, 1 typist, and 1 peon. A district office has, in addition, 1 clerk and 1 peon.
The basic monthly salaries are as follows: Office superintendent Rs.1500, Head Clerk Rs.900,
Cashier Rs.750, Clerks and Typists Rs.675 and Peons Rs.450.

Using matrix notation, find (i) the total number of posts of each kind in all the offices taken
together, (ii) the total basic monthly salary bill of each kind of office, and (iii) the total basic
monthly salary of all the offices taken together.
Solution:
Let the offices in all the locations be denoted by matrix A = (5 30 200)
OS HC C Cl T P
1 1 1 3 1 2
Let the number of employees denoted by matrix B = (0 1 1 2 0 2)
0 1 1 1 0 1
1500
900
Let the basic monthly salaries of various types of employees of
750
these offices correspond to the elements of the column matrix C=
675
675
( 450 )
(i) The total number of posts of each kind in all the offices taken together = AB
1 1 1 3 1 2
𝐴𝐵 = (5 30 200) (0 1 1 2 0 2) =
0 1 1 1 0 1
(ii)
1 1 1 −1 −2 −1
Example 13: 𝐼f A = [2 −3 4] , B = [ 6 12 6 ] find A𝐵
3 −2 3 5 10 15
A = 3x3 B = 3×3 AB = 3×3
1 1 1 −1 −2 −1
𝐴𝐵 = (2 −3 4) ( 6 12 6 )
3 −2 3 3×3 5 10 15 3×3
𝐴𝐵
1 × (−1) + 1 × 6 + 1 × 5 1 × (−2) + 1 × 12 + 1 × 10 1 × (−1) + 1 × 6 + 1 × 15
= (2 × (−1) + (−3) × 6 + 4 × 5 2 × (−2) + (−3) × 12 + 4 × 10 2 × (−1) + (−3) × 6 + 4 × 15)
3 × (−1) + (−2) × 6 + 3 × 5 3 × (−2) + (−2) × 12 + 3 × 10 3 × (−1) + (−2) × 6 + 3 × 15 3×3

−1 + 6 + 5 −2 + 12 + 10 −1 + 6 + 15
= (−2 − 18 + 20 −4 − 36 + 40 −2 − 18 + 60)
−3 − 12 + 15 −6 − 24 + 30 −3 − 12 + 45 3×3
𝟏𝟎 𝟐𝟎 𝟐𝟎
= (𝟎 𝟎 𝟒𝟎)
𝟎 𝟎 𝟑𝟎 𝟑×𝟑
2 3
4 2 − 1
Example 14 : Given A =   and B − 3 0 
3 −7 1
− 1 5
Show that (AB)1 = B1A1
4 3
2 − 3 − 1
A = 2 − 7 B1 = 
1 
3 0 5 
− 1 − 7
𝟐 𝟑
𝟒 𝟐 −𝟏 𝟖−𝟔+𝟏 𝟏𝟐 + 𝟎 − 𝟓 𝟑 𝟕
𝑨𝑩 = [ ] [−𝟑 𝟎] = [ ] = [ ]
𝟑 −𝟕 𝟏 𝟐×𝟑 𝟔 + 𝟐𝟏 − 𝟏 𝟗 + 𝟎 + 𝟓 𝟐×𝟐 𝟐𝟔 𝟏𝟒 𝟐×𝟐
−𝟏 𝟓 𝟑×𝟐
𝟑 𝟐𝟔
(𝑨𝑩)𝟏 = [ ]
𝟕 𝟏𝟒
𝟒 𝟑
𝟐 −𝟑 −𝟏
𝑩𝟏 𝑨𝟏 = [ ] [ 𝟐 −𝟕]
𝟑 𝟎 𝟓 𝟐×𝟑
−𝟏 𝟏 𝟑×𝟐
2 × 𝟒 + (−𝟑) × 𝟐 + (−𝟏) × (−𝟏) 𝟐 × 𝟑 + (−𝟑) × (−𝟕) + (−𝟏) × 𝟏

= [ ]
𝟑 × 𝟒 + 𝟎 × 𝟐 + 𝟓 × (−𝟏) 𝟑 × 𝟑 + 𝟎 × (−𝟕) + 𝟓 × 𝟏 𝟐×𝟐
𝟑 𝟐𝟔
= [ ] = (𝑨𝑩)′
𝟕 𝟏𝟒 𝟐×𝟐
𝟑 𝟐𝟔
(𝑨𝑩)𝟏 = [ ]
𝟕 𝟏𝟒

1 2 2
 2  satisfies the equation.
Example 15 : Prove that A = 2 1
2 2 1 
A2 – 4A – 5I = 0 where I is the identity matrix and 0 is the zero matrix.
Solution : A2 = A × A
1 0 0 1 2 2
Let , I = 0 1 0 and Given, A = 2 1 2
0 0 1 2 2 1
1 2 2 1 2 2
A = A. A = 2 1
2
2 2 1
 2
2 2 1  2 2 1
1 + 4 + 4 2+2+4 2 + 4 + 2 9 8 8
= 2 + 2 + 4 4 +1+ 4 4 + 2 + 2 = 8 9 8
2 + 4 + 2 4+2+2 4 + 4 + 1 8 8 9
Consider, L.H.S =A2 – 4A − 5I
9 8 8 1 2 2 1 0 0
= (8 9 9 ) − 4 (2 1 2 ) − 5 (0 1 0)
8 8 9 2 2 1 0 0 1
9 8 8 4 8 8 5 0 0
= (8 9 9 ) − (8 4 8 ) − (0 5 0 )
8 8 9 8 8 4 0 0 5
0 0 0
= (0 0 0)
0 0 0
Therefore, L.H.S. = R.H.S. (proved)

2 1 1 1 0 0
  where I = 0 1 1
Example 16: If A = − 1 0 1  calculate A − 5 A + 9 I
2
 1 3 − 1 0 0 1

Solution :
2 1 1  2 1 1 
A 2 = A. A = − 1 0 1  − 1 0
 1 
1 3 − 1  1 3 − 1
2.2 + 1(−1) + 1.1 2.1 + 1.0 + 1.3 2.1 + 1.1 + 1.(−1) 

= (−1)2 + 0(−1) + 1.1 (−1)1 + 0.0 + 1.3 (−1)1 + 0.1 + 1(−1) 
(1).2 + 3(−1) + (−1).1 1.1 + 3.0 + (−1)3 1.1 + 3.1 + (−1)(−1)
4 − 1 + 1 2+3 2 + 1 − 1 4 5 2 
= − 2 + 1 −1+ 3 − 1 − 1  = − 1 2 − 2
2 − 3 − 1 1− 3 1 + 3 + 1  − 2 − 2 5 
 2 1 1   10 5 5 
5 A = 5 − 1 0 1  = − 5 0 5 
 1 3 − 1  5 15 − 5
1 0 0 9 0 0 
9I = 9 0 1 0 = 0 9 0 
0 0 1 0 0 9
Consider, A2 – 5A+9I
4 5 2   10 5 5  9 0 0

  − 1 2 − 2 − − 5 0 5  + 0 9 0
− 2 − 2 5   2 15 − 5 0 0 9
− 6 0 − 3 9 0 0  3 0 − 3

4   
2 − 7 + 0 9 0 =  4 11 − 7
− 7 − 1 7 1 0  0 0 9 − 7 − 1 7 19 

1.6 Summary:
- Matrix is arrangement of elements in rows and columns.
- Types of Matrices.
• Square Matrix
• Diagonal Matrix
• Scalar Matrix
• Unit Matrix
• Transpose of Matrix
• Symmetric Matrix
• Skew Symmetric Matrix.
- Addition of Matrices.
We say that two matrices can be added or subtracted only when their orders are same.
- Multiplication of Matrices
Two matrices can be multiplied only when the number of columns of the first matrix is
equal to the number of rows of second matrix.
1.7 Terminal questions
(1) Define matrix.

(2) What is row matrix?
(3) Give the meaning of column matrix.
(4) What is scalar matrix?
(5) Give the meaning of null matrix.
(6) What is a diagonal matrix?
(7) What is unit matrix? Give example.
(8) Give the meaning of column matrix.
(9) Give the meaning of triangular matrix.
(10) Give the properties of matrix multiplication.
(11) When do we say A is skew symmetric?
(12) What is a symmetric matrix?
Terminal questions – Problems

𝟏 𝟒 𝟐 𝟒
𝟏. 𝒊𝒇 A = [ ] 𝒂𝒏𝒅 B = [ ] , 𝒇𝒊𝒏𝒅 𝟒𝑨 + 𝟓𝑩
𝟓 𝟔 𝟎 𝟔
𝟑 −𝟏 𝟐 𝟏 𝟒 𝟔
𝟐. 𝑰𝒇 𝑨 = [ ] 𝒂𝒏𝒅 𝑩 = [ ] 𝒇𝒊𝒏𝒅 𝟐𝑨 − 𝟑𝑩
𝟑 𝟏 𝟐 𝟏 𝟑 −𝟏

𝟗
𝟏 𝟏 𝟓
𝟑. 𝒊𝒇 A = [ ] B = [ ] find a matrix such that 2𝑨 + 𝟓𝑩 = 𝟎
𝟒
𝟑 𝟕 𝟏𝟐
𝟏 𝟒 𝟐 𝟒
𝟒. 𝒊𝒇 2𝑨 + B = [ ] 𝒂𝒏𝒅 A-2𝑩 = [ ] 𝒇𝒊𝒏𝒅 𝑨 𝒂𝒏𝒅 𝑩
𝟓 𝟔 𝟎 𝟔
𝟐𝟏 𝟏𝟔 𝟏 −𝟏𝟐 −𝟏𝟏 𝟓
𝟓. 𝑺𝒐𝒍𝒗𝒆 𝒇𝒐𝒓 𝑨 and B 𝑰𝒇 3𝑨 + 𝟐𝑩 = [ ] 𝒂𝒏𝒅 𝑩 = [ ]
𝟐𝟏 𝟐 𝟏𝟐 𝟏 𝟏𝟔 𝟖
𝟐 𝟑 𝟒 𝟏 𝟑 𝟎
𝟔. 𝒊𝒇 A = [𝟏 𝟐 𝟑] B = [𝟏 𝟐 𝟏] find a 𝑨B & B𝑨
𝟏 𝟏 𝟏 𝟎 𝟎 𝟐
1 3
7. i f A =  prove that A − A − 31 = 0
2

1 0
𝟕 𝟎
𝟏 −𝟑 𝟐
𝟖. 𝑰𝒇 𝑨 = [ ] 𝑩 = [𝟐 −𝟔] 𝒗𝒆𝒓𝒊𝒇𝒚 (𝑨𝑩)𝟏 = 𝑩𝟏 𝑨𝟏
𝟒 𝟎 𝟑
𝟏 𝟒
𝟐 𝟒 𝟒
𝟗. 𝒊𝒇 A = [𝟒 𝟐 𝟒] 𝒑rove that A𝟐 − 𝟖𝑨 − 𝟐𝟎𝑰 is a null matrix.
𝟒 𝟒 𝟐
𝟒 𝟑
𝟐 𝟏 𝟑
𝟏𝟎. 𝑰𝒇 𝑨 = [ ] 𝒂𝒏𝒅 𝑩 = [𝟎 𝟔] Find A + 𝑩𝟏 And A𝟏 + B
𝟑 𝟒 𝟓
𝟓 𝟕
Verify that A+B' = A'+ B.
𝟏 𝟐 𝟑
𝟏𝟏. 𝒊𝒇 A = [ 𝟏 𝟐 𝟑 ] 𝑺how that A𝟐 is a null matrix.
-1 -2 -3
𝟎 𝟏 𝟐
𝟏𝟐. 𝒊𝒇 A = [𝟐 −𝟑 𝟎 ] 𝒑rove that A𝟐 + 𝟒𝑨𝟐 − 𝑨 − 𝟏𝟐𝑰 is a null matrix.
𝟏 𝟏 -1
𝟏 𝟐 −𝟑 𝟑 -1 𝟓
𝟏𝟑. Find AB and BA if A = [𝟓 𝟎 𝟐 ] B = [𝟒 𝟐 𝟓]
𝟏 -1 𝟏 𝟐 𝟎 𝟑
3 8 1 4 0 2
14. 𝐼f A = [2 −6 3 ] , B = [6 2 3] verify 3A + 3B = 3(𝐴 + 𝐵)
7 4 −5 1 3 2
1.8 Answers for the Terminal Questions:
3 8
1.  
5 8

3 − 1 4 − 1 4
2. 
3 − 7 7 
1  - 2 3 − 2 7
3. X = 
2 − 4 3 − 6 6
 2 0   -1 1 
4. A =  3 13  &  4 −6 
 5 5   5 5 
3 2 1  6 4 − 1
5. A =   ,B= 
5 − 2 4 3 4 0 
5 1 2 5 9 1 2
   
6. A B = 3 7  & BA = 5 8 11
2 5  2 2 2 
5 3 3  0 4 - 9
13. A B = 19 - 5 16 & BA = 19 3 - 3
 1 - 3 0   5 1 0 
Determinants
1.9 Introduction
The working knowledge of determinant is basic necessity for a student of commerce as a large
number of physical phenomena are expressed in terms of linear simultaneous equations which
depend for their solution on the knowledge of various methods of solving a system of linear
equations. This will enable the student to avail the advantages of the determinants in business
mathematics & quantitative methods.
1.10 Concepts and Meaning of Determinants
Determinant of a Square Matrix
Every square matrix A is associated with a real number called its Determinant and is denoted by
|A| or ∆A.
There are two methods of finding the determinants of a matrix.

They are (i) expansion method (ii) using properties of determinants.
Determinants of order 2 x 2
a b  5 4
If A =   A=( )
c d  3 2
a b
Then A =  |𝐴| = (5 × 2) − (4 × 3)
c d 
= a×d − b×c |𝐴| = 10 – 12 = − 2 aij
= ad – bc
3 4 7 + − +
A = (5 2 1 ) (− + −) (−1)i+j
6 8 9 + − +
|𝐴| = 3 × |2 1 5 1 5 2
|−4× | |+7×| |
8 9 6 9 6 8
|𝐴| = 3 (18 − 8) − 4(45 − 6) + 7(40 − 12)

= (3 × 10) – (4×39) + (7×28)
= 30 – 156 + 196
= 70
|𝐴| = 3 |2 1| − 5 |4 7| + 6 |4 7
|
8 9 8 9 2 1
|𝐴| = 3 (18 − 8) − 5(36 − 56) + 6(4 − 14)

|𝐴| = 30 + 100 − 60
|𝐴| = 70
Shortcut method of finding determinant value of a matrix

3 4 7 3 4
5 2 1 5 2
6 8 9 6 8
(3×2×9) + (4×1×6) + (7×5×8) = 54 + 24 + 280 = 358

(4×5×9) + (3×1×8) + (7×2×6) = 180 + 24 + 84 = 288

|A| = 358 – 288 = 70
Determinants of order 3 x 3
a1 b1 c
a2 b2 c2 = 0
a3 b3 c3
a1 b1 c1
A = a 2 b2 c2
a3 b3 c3
And its value is the number

b2 c2 a2 c.3 a2 b2
A = a1 − b1 + c1
b3 c3 a3 c3 a3 c3
= a1(b2 c3 − b3 c2 ) − b1 (a2 c3 − a3c2 ) + c1 (a2b3 − a3b2 )
This is called the expansion of the determinants along its first row. To obtain this expansion we
multiply each element of the first row by the determinant of the second order which is obtained by
leaving the row and the column passing through the element.
Singular and Non – Singular Matrix:
A square matrix is said to be singular if and only if | A | = 0

The square matrix A is said to be non-singular if and only if | A | ≠ 0
Example:
1 3 1 3
1) A = [ ] ⇒ |𝐴| = | | = 9-9 = 0
3 9 3 9
Therefore, A is singular matrix.
1 4 1 4
2) A = [ ] ⇒ |𝐴| = | | = 6 - 20 = -14 ≠ 0
5 6 5 6
Therefore A is non-singular matrix.
Properties of determinants:-
1. The value of a determinant remains unchanged if its rows and columns are interchanged.

2. If any two rows (or columns) of a determinant are interchanged, the value of the determinant
changes any in sign.
3. If any two rows (or column) of a determinant are identical, then its value is zero.
4. If each elements of any row (or column) of a determinants is multiplied by a constant k, then
the value of the determinant is multiplied by k.
5. If each element of any row (or column) of a determinant is zero, then its value is zero.
6. If each element of any row (or column) of a determinant is multiplied by the same constant
and then added to the corresponding elements of any other row (or column), then the value of
determinant is unaltered.
3 4 𝑥
Example 21: If | 2 1 3| = −𝟒𝟎, 𝑓𝑖𝑛𝑑 𝒙.
−5 −1 2
3 4 𝑥
Solution: Given | 2 1 3| = −40 
−5 −1 2
|𝐴| = 3 | 1 3| − 4 | 2 3| + 𝑥 | 2 1
|
−1 2 −5 2 −5 −1
|𝐴| = 3 (2 + 3) − 4(4 + 15) + 𝑥(−2 + 5)
|𝐴| = 3 × 5 − 4 × 19 + 3𝑥 = −40
|𝐴| = 15 − 76 + 3𝑥 = −40
3𝑥 = −40 − 15 + 76
3𝑥 = 21
𝒙=𝟕
Example 22:
Evaluate the following determinant
x 1 2
2 x 2
3 1 x
|𝐴| = 𝑥 |𝑥 2 2 2 2 𝑥
| − 1| | + 2| |
1 𝑥 3 𝑥 3 1
|𝐴| = 𝑥 (𝑥 2 − 2) − (2𝑥 − 6) + 2(2 − 3𝑥)

|𝐴| = 𝑥 3 − 2𝑥 − 2𝑥 + 6 + 4 − 6𝑥
|𝐴| = 𝑥 3 − 10𝑥 + 10
Example 23:
3 𝑥 −1
Solve for x, given that |−4 6 7 |=0
2 −1 4
Solution :
3 𝑥 −1
|−4 6 7 |=0
2 −1 4
6 7 −4 7 −4 6
3| |−𝑥| | −1| |=0
−1 4 2 4 2 −1
3(24 + 7) − 𝑥(−16 − 14) − 1(4 − 12) = 0
3(31) − 𝑥(−30) − 1(−8) = 0
93 + 30𝑥 + 8 = 0
30𝑥 = −93 − 8
30𝑥 = −101
101
𝑥=− = −𝟑. 𝟑𝟕
30
Example 24:
−3 −6 1
Find 𝑦, 𝑖𝑓 | 5 𝑦 −2| = 7
2 −3 5
Solution :
To find y
 -3 (5y – 6) + 6 (25 + 4) + 1 (-15 – 2y) = 7

 - 15y + 18 + 150 + 24 – 15 – 2y = 7
 - 17y + 177 = 7
 - 17y = 7 – 177
 - 17y = – 170
 + 17y = +170

y = 10
Example 25:
𝑥 3 𝑦 1 2 −1
𝑆𝑜𝑙𝑣𝑒𝑓𝑜𝑟 𝑥 𝑎𝑛𝑑 𝑦, 𝑔𝑖𝑣𝑒𝑛 𝑡ℎ𝑎𝑡 |4 3 1| = 16 𝑎𝑛𝑑 |−𝑥 1 2 | = 28
1 2 4 𝑦 −1 1
Solution:
Expanding the first matrix, we get
3 1 4 1 4 3
𝑥| | − 3| |+𝑦| |
2 4 1 4 1 2
𝑥 (12 − 2) − 3 (16 − 1) + 𝑦(8 − 3)
10𝑥 − 45 + 5𝑦 = 16
𝟏𝟎𝒙 + 𝟓𝒚 = 𝟔𝟏 … (1)
Expanding the second matrix, we get
1 2 −1
|−𝑥 1 2 | = 28
𝑦 −1 1
1 2 −𝑥 2 −𝑥 1
1| | − 2| | − 1| |
−1 1 𝑦 1 𝑦 −1
(1 + 2) − 2 (−𝑥 − 2𝑦) − 1(𝑥 − 𝑦)
3 + 2𝑥 + 4𝑦 − 𝑥 + 𝑦 = 28
3 + 𝑥 + 5𝑦 = 28
𝒙 + 𝟓𝒚 = 𝟐𝟓 … (2)

Now we can get the values of x and y, by solving the equations (1) and (2).
Subtracting equation (2) from equation (1),
10𝑥 + 5𝑦 = 61 … (1)
𝑥 + 5𝑦 = 25 … (2)
___________________
9𝑥 = 36 → 𝒙 = 𝟒
By substituting the value of x =4 in equation (2), we get
4 + 5𝑦 = 25
𝟐𝟏
5𝑦 = 21 → 𝒚 =
𝟓
𝟐𝟏
The value of x is 4 and the value of y is .
𝟓
𝟏𝟎 𝟓 𝒙 𝟔𝟏
10x+5y = 61 ( ) (𝒚) = ( )
𝟏 𝟓 𝟐𝟓
x + 5y = 25
𝟏𝟎 𝟓 ∆𝒙 𝟏𝟖𝟎
Det ∆ = | | = 𝟒𝟓 𝒙= = =𝟒
𝟏 𝟓 ∆ 𝟒𝟓
𝟔𝟏 𝟓
∆𝒙 = | | = 𝟏𝟖𝟎
𝟐𝟓 𝟓
𝟏𝟎 𝟔𝟏 ∆𝒚 𝟏𝟖𝟗
∆𝒚 = | | = 𝟏𝟖𝟗 𝒚= = = 𝟒. 𝟐
𝟏 𝟐𝟓 ∆ 𝟒𝟓
1.15 Solution of Simultaneous equations using Cramer’s Rule – Related Problems
Finding the solution of simultaneous equation using determinant is called Cramer’s rule.
Considering the system of equations

a1 x + b1 y = c1 .............................................. (i ) x+ y=2

a2 x + b2 y = c2 ............................................. (ii) 3x + 4y = 18
In two variables x and y y = 12; x = -10
1 1 𝑥 2
𝐴=( ) ; 𝑋 = (𝑦 ) ; 𝐵 = ( )
3 4 18
𝐴𝑋 = 𝐵 X = A-1B
1 1
∆= | |=4−3=1
3 4
2 1 ∆𝑥 −10
∆𝑥 = | | = 8 − 18 = −10 𝑥= = = −𝟏𝟎
18 4 ∆ 1
1 2 ∆𝑦 12
∆𝑦 = | | = 18 − 6 = 12 𝑦= = = 𝟏𝟐
3 18 ∆ 1
Method: To solve simultaneous equations using Cramer’s rule
a1 b1
Let  ,  is the determinant formed by taking the coefficients of x and y
a 2 b2
∆x or ∆1 = ∆y or ∆2 =
∆1 is obtained by replacing 1st column element by R.H.S values. ∆2 is obtained by replacing 2nd
column by R.H.S values.
|||ly for system of three unknowns
a1x + b1 y + c1 z = d1
a2x + b2 y + c2 z = d2
a3x + b3 y + c3 z = d3
a b d1 1 1 d b d1 1 1
Δ= a b d Δ
2 2 2 2 o r Δ1 =d b d2 2 2
a b d3 3 3 d b d3 3 3
a d c
1 1 1 a b d
1 1 1
Δy o r Δ2 =a d c Δ
2 2 2 y o r Δ3 =a b d
2 2 2
a d c
3 3 3 a b d
3 3 3

1  
x= ,y= 2 ,z= 3
  
𝛥1
𝑡ℎ𝑒𝑛 𝑥 = ,
𝛥
𝛥2
𝑦 =
𝛥
𝛥3
𝑧 = 𝛥
Solve for x and y given two equations:

x+y=2 1 1
3x + 4y = 18 3 4
Solution: AX=B A = coefficient matrix

X = variable matrix
B = solution matrix
STEP1: Convert the equations in matrix notation AX = B
1 1 𝑥 2
( )( ) = ( )
3 4 𝑦 18
STEP2: Find the determinant value of the coefficient matrix
1 1
=| |= 4−3= 1
3 4
STEP3: Find the determinant value of the matrix obtained by replacing the
First column of the coefficient matrix with solution matrix elements
2 1 2 1
( ) x = | | = 8 − 18 = −10
18 4 18 4
∆𝑥 −10
x= = = −𝟏𝟎
 1
STEP4: Find the determinant value of the matrix obtained by replacing the
Second column of the coefficient matrix with solution matrix elements
1 2 1 2
( ) y = | | = 18 − 6 = 12
3 18 3 18

∆𝑦 12
y= = = 𝟏𝟐
 1
The values of x = −10 and y = 12
𝑥 −10
The solution to the given problem is (𝑦) = ( )
12
Verification: x + y = 2 -10+12 = 2
Example 26: 𝑥 − 16 = 2𝑦
3𝑥 − 1 = −𝑦
Using Cramer’s rule solve for x and y.
Solution:
𝑥 − 2𝑦 = 16
3𝑥 + 𝑦 = 1.
STEP1: Convert the equations in matrix notation AX = B
1 −2 𝑥 16
( ) (𝑦) = ( )
3 1 1
Here
1 −2
∆= | | = 1 × 1 − (−2) × 3 = 1 + 6 = 𝟕
3 1
16 −2 ∆𝒙 𝟏𝟖
∆𝑥 = | | = 16 × 1 − (−2) × 1 = 16 − (−2) = 16 + 2 = 𝟏𝟖 𝒙= =
1 1 ∆ 𝟕
1 16 ∆𝒚 𝟒𝟕
∆𝑦 = | | = 1 × 1 − 16 × 3 = 1 − 48 = −𝟒𝟕 𝒚= =−
3 1 ∆ 𝟕
Example 27: If 15 kgs of Commodity A and 17 kgs of Commodity B together cost Rs.241 and 25
kgs of A and 13 kgs of B together cost Rs.279. Find the prices of each per kg by using Crammer’s
rule method.
Items Qty A (x) Qty B (y) Total

Commodity A 15 27 241
Commodity B 25 13 279

Solution :
Let price per kg of commodity 𝐴 = 𝑥 and commodity 𝐵 = 𝑦
15 kg coffee + 17 kg tea = 241
25 kg coffee + 13 kg tea = 279
15x + 17y = 241

25x + 13y = 279
15 17 𝑥 241
Step1: [ ] [ ]=[ ]
25 13 𝑦 279
15 17
∆= | | = 15 × 13 − 17 × 25 = 195 − 425 = −𝟐𝟑𝟎
25 13
241 17
∆𝑥 = | | = 241 × 13 − 17 × 279 = 3133 − 4743 = −1610
279 13
15 241
∆𝑦 = | | = 15 × 279 − 241 × 25 = 4185 − 6025 = −1840
25 279
∆𝑥 −1610
𝑥= = =𝟕
∆ −230
∆𝑦 −1840
𝑦= = =𝟖
∆ −230
The cost of one kg of commodity A is Rs.7/-

The cost of one kg of commodity B is Rs.8/-
Example 28:
Solve by Cramer’s rule:
x + y + z = 11,
2x – 6y – z = 0,
3x + 4y + 2z = 0.
Solution:
Writing down the equations in the matrix notation, we get

1 1 1 𝑥 11
(2 −6 −1) (𝑦) = ( 0 )
3 4 2 𝑧 0
1 1 1
−6 −1 2 −1 2 −6
∆ = |2 −6 −1| = 1 | | − 1| | + 1| |
4 2 3 2 3 4
3 4 2
∆ = (−12 + 4) − (4 + 3) + (8 + 18)
∆ = −8 − 7 + 26 = 𝟏𝟏
11 1 1
−6 −1
∆𝑥 = | 0 −6 −1| = 11 | | = 11(−12 − (−4)) = 11 × (−8) = −𝟖𝟖
4 2
0 4 2
∆𝑥 −88
𝑥= = = −𝟖
∆ 11
1 11 1
2 −1
∆𝑦 = |2 0 −1| = −11 | | = −11 × (4 + 3) = −𝟕𝟕
3 2
3 0 2
∆𝑦 −77
𝑦= = = −𝟕
∆ 11
1 1 11
2 −6
∆𝑧 = |2 −6 0 | = 11 | | = 11 × (8 + 18) = 𝟐𝟖𝟔
3 4
3 4 0
∆𝑧 286
𝑧= = = 𝟐𝟔
∆ 11
Therefore, the values of x, y and z are −8, −7 and 26.
𝒙 −𝟖
The solution for the problem is (𝒚) = (−𝟕)
𝒛 𝟐𝟔
Example 29: Solve:

2 x + y − z = 6, x + 3 y + 2 z = 3, 3x − y = 5
Solution :

The given equations are: 2 x + y − z = 6, x + 3 y + 2 z = 3, 3x − y = 5
Step1: Matrix notation A X = B
2 1 −1 𝑥 6
(1 3 2 ) (𝑦) = (3)
3 −1 0 𝑧 5
Step2: Find the determinant value of the coefficient matrix A

2 1 −1
3 2 1 2 1 3
∆ = |1 3 2 | = 2| | − 1| | − 1| |
−1 0 3 0 3 −1
3 −1 0
∆ = 4 + 6 + 10 = 𝟐𝟎
Step3: Find the determinant value of the matrix obtained by replacing the
First column of coefficient matrix with solution matrix
6 1 −1
3 2 3 2 3 3
∆𝑥 = |3 3 2 | = 6| | − 1| | − 1| |
−1 0 5 0 5 −1
5 −1 0
∆𝑥 = 12 + 10 + 18 = 𝟒𝟎
∆𝑥 40
𝑥= = =𝟐
∆ 20
Second column of coefficient matrix with solution matrix
2 6 −1
3 2 1 2 1 3
∆𝑦 = |1 3 2 | = 2| | − 6| | − 1| |
5 0 3 0 3 5
3 5 0
∆𝑦 = −20 + 36 + 4 = 𝟐𝟎
∆𝑦 20
𝑦= = =𝟏
∆ 20
Third column of coefficient matrix with solution matrix

2 1 6
3 3 1 3 1 3
∆𝑧 = |1 3 3| = 2 | |−1| | + 6| |
−1 5 3 5 3 −1
3 −1 5
∆𝑧 = 36 + 4 − 60 = −𝟐𝟎
∆𝑧 −20
𝑧= = = −𝟏
∆ 20
 x = 2, y = 1, z = −1
Self-Assessment Questions 2:
1. Write the method of Cramer’s rule.
2. Solve the following equation using Cramer’s rule:

3x – y = 6, 2x – 3y = 15
x + 2y + 16 = 0, 2x + 4 = 3y
x + 2 y + 3z = 6, 2 x + 4 y + z = 7, 3x + 2 y + 9 z =14
2 x + y − z = 3, x + y + z = 1, x − 2 y − 3z = 4
4 x + y = 7, 3 y + 4 z = 5, 3z + 5 x = 2
3. The cost of one pencil, 3 Ball pen and 4 Ink pen is Rs. 19, the cost of 4 pencil, 2 Ball pen and
3 Ink pen is Rs. 17, again the cost of 2 pencil, 2 Ball pen and 2 Ink pen is Rs. 12. Find the value
of each of them.
Solution:
Pencil (x) Ball pen (y) Ink pen (z) Cost (Rs.)
1 3 4 19
4 2 3 17
2 2 2 12
Let us take cost of Pencil as x, cost of Ball pen as y and cost of Ink pen is z.
x + 3y + 4z = 19
4x + 2y + 3z = 17
2x + 2y + 2z = 12

Step1: Matrix notation A X = B
1 3 4 𝑥 19
(4 2 3) (𝑦) = (17)
2 2 2 𝑧 12
Step2: Find the determinant value of the coefficient matrix A
1 3 4
2 3 4 3 4 2
∆ = |4 2 3| = 1 | | − 3| | + 4| |
2 2 2 2 2 2
2 2 2
∆ = −2 − 6 + 16 = 𝟖
First column of coefficient matrix with solution matrix
19 3 4
2 3 17 3 17 2
∆𝑥 = |17 2 3| = 19 | | −3| | + 4| |
2 2 12 2 12 2
12 2 2
∆𝑥 = −38 + 6 + 40 = 𝟖
∆𝑥 8
𝑥= = =𝟏
∆ 8
Second column of coefficient matrix with solution matrix
1 19 4
17 3 4 3 4 17
∆𝑦 = |4 17 3| = 1 | | − 19 | | + 4| |
12 2 2 2 2 12
2 12 2
∆𝑦 = −2 − 38 + 56 = 𝟏𝟔
∆𝑦 16
𝑦= = =𝟐
∆ 8
Third column of coefficient matrix with solution matrix

1 3 19
2 17 4 17 4 2
∆𝑧 = |4 2 17| = 1 | | − 3| | + 19 | |
2 12 2 12 2 2
2 2 12
∆𝑧 = −10 − 42 + 76 = 𝟐𝟒
∆𝑧 24
𝑧= = =𝟑
∆ 8
𝑥 1
The solution is (𝑦) = (2)
𝑧 3
The cost of one Pencil is Rs.1

The cost of one Ball pen is Rs.2
The cost of one Ink pen is Rs.3.
(Hint: x+3y+4z=19, 4x+2y+3z=17, 2x+2y+2z=12)
4. Using Cramer’s rule,

Solve x + y + z = 6, 2 x + 3 y − z = 5, 6 x − 2 y − 3z = − 7
5. For a certain crop to get more yield, it is necessary to use 19 units of urea, 17 units of potash,
12 units of nitrogen for one quintal of the mixture. ‘P’ contains 1, 4, 2 units of the chemicals.
One quintal of mixture ‘Q’ contains 3, 2, 2 units and one quintal of the mixture ‘R’ contains 4,
3, 2 units of these chemicals respectively. How much of each type of mixture should be used
to get the yield more? Solve by using Cramer’s rule.
(Hint: x+3y+4z=19, 4x+2y+3z=17, 2x+2y+2z=12)
Urea Potash Nitrogen

P 1 4 2
Q 3 2 2
R 4 3 2
Available units 19 17 12
P Q R
Chemicals Available units
(x) (y) (z)
Urea 1 3 4 19
Potash 4 2 3 17
Nitrogen 2 2 2 12

6. The price of 4 Mathematics books, 2 Accounting books, 3 Computer books is Rs.1340. The
cost of 1 Mathematics, 3 Accounting and 2 Computer books is Rs.810 and the cost of 2
Mathematics books, one Accounting book and one Computer book is Rs.580. Find the rate per
book of each book.
(Hint: 4x+2y+3z=1340, x+3y+2z=810, 2x+y+z=580)
Mathematics Accounting Computer

Cost (Rs.)
(x) (y) (z)
4 2 3 1340
1 3 2 810
2 1 1 580
4x + 2y + 3z = 1340
x + 3y + 2z = 810
2x + y + z = 580
Step1: Convert the equations into matrix notation, i.e., AX = B
4 2 3 𝑥 1340
(1 3 2) (𝑦) = ( 810 )
2 1 1 𝑧 580
Step2: Find the determinant value of coefficient matrix
4 2 3 4 2
1 3 2 1 3 = (12+8+3) – (2+8+18) = 23 – 28 = − 5
2 1 1 2 1
4 2 3
3 2 1 2 1 3
∆ = |1 3 2| = 4 | | − 2| | + 3| | = 4(1) − 2(−3) + 3(−5)
1 1 2 1 2 1
2 1 1
∆ = 4(1) − 2(−3) + 3(−5) = 4 + 6 − 15 = −𝟓
Step3: Find the determinant value of the matrix obtained by replacing the first column of the
coefficient matrix by the solution matrix
1340 2 3 ∆𝑥 −750
∆𝑥 = | 810 3 2| = −750 𝑥= = = 𝟏𝟓𝟎
∆ −5
580 1 1

Step4: Find the determinant value of the matrix obtained by replacing the second column of
the coefficient matrix by the solution matrix
4 1340 3 ∆𝑦 −500
∆𝑦 = |1 810 2| = −500 𝑦= = = 𝟏𝟎𝟎
∆ −5
2 580 1
Step5: Find the determinant value of the matrix obtained by replacing the third column of the
coefficient matrix by the solution matrix
4 2 1340
∆𝑧 = |1 3 810 |
2 1 580
3 810 1 810 1 3
∆𝑧 = 4 | |− 2| | + 1340 | |
1 580 2 580 2 1
∆𝑧 = 4(1740 − 810) − 2(580 − 1620) + 1340(1 − 6)
∆𝑧 = 3720 + 2080 − 6700) = −900
∆𝑧 −900
𝑧= = = 𝟏𝟖𝟎
∆ −5
𝑥 150
The solution is (𝑦) = (100)
𝑧 180
The cost of one Mathematics book is Rs.150

The cost of one Accounting book is Rs.100
The cost of one Computer book is Rs.180
Answers for the Self-Assessment Questions 2:
2. x = 3, y = 3
x = -8, y = -4
x = 1, y = 1, z = 1.
x = 2, y = -1, z = 0.
x = 1, y = 3, z = 1.
3. x = 1, y = 2, & z = 3
4. P = 1, Q = 2, R = 3.

5. P = 1, Q = 2, R = 3.
6. Mathematics = 150, Accounting = 100, & Computer Science = 180.
1.12 Minors and Co-factors
The minor of an element aij is the determinant of the submatrix obtained by deleting the ith row
and jth column of matrix.
a1 b1 c1
Consider, A = a 2 b2 c2
a3 b3 c3
The minor of the element a1 is the second order determinant obtained by deleting the 1st row and
the 1st column.
b2 c2
Thus minor of a1 =
b3 c3
a2 c2 𝑎2 𝑏2
Minor of b1 = minor of 𝑐1 = | |
a3 c3 𝑎3 𝑏3
b1 c1
Minor of a 2 = and so on
b3 c3
1 2 3
Example: Let A 4 5 6
7 8 9
5 6 1 3
Minor of 1 = minor of 5 =
8 9 7 9
1.13 Adjoint of a Square Matrix
Adjoint of square matrix ‘A’ is the transpose of the matrix formed by the cofactors of A . It is
denoted by adj A .
A (adj A) = (adj A) A= |A|I where I is the Unit Matrix.
3 4 1 8 −4 2 −1
A = 𝐴−1 = 4 ( ) = (− 5 3 )
8 
For Example :
5 −5 3 4 4

1
𝐴−1 = 𝐴𝑑𝑗(𝐴)
|𝐴|
⌈𝐴⌉ = |3 4| = 3 × 8 − 4 × 5 = 24 − 20 = 𝟒
𝟏 8 −4
𝑨−𝟏 = 𝟒 | |
5 8 −5 3
⌈𝐴⌉ ≠ 0, 𝑡ℎ𝑒𝑟𝑒𝑓𝑜𝑟𝑒 𝑖𝑛𝑣𝑒𝑟𝑠𝑒 𝑒𝑥𝑖𝑠𝑡𝑠.
𝐴𝑑𝑗(𝐴)
𝐴−1 =
|𝐴|
Adjoint matrix = (Cofactor matrix)T
Cofactor of the element aij = (−1)𝑖+𝑗 𝐷𝑒𝑡(𝑀𝑖𝑛𝑜𝑟 𝑎𝑖𝑗 )
Cofactor of 3 (a11) = (−1)1+1 (8) = 8

Cofactor of 4 (a12) = (−1)1+2 (5) = −5
Cofactor of 5 (a21) = (−1)2+1 (4) = −4
Cofactor of 8 (a22) = (−1)2+2 (3) = 3
8 −5
Cofactor matrix of A ( )
−4 3
Example 30:
−2 1 0
Find the inverse of the square matrix 𝐴 = ( 3 −1 4)
2 5 3
Solution:
𝒂𝒅𝒋 𝑨
𝑨−𝟏 =
|𝑨|
−2 1 0
|𝑨| = | 3 −1 4| = −2 |−1 4| − 1 |3 4
| = 46 − 1 = 𝟒𝟓 ≠ 0
5 3 2 3
2 5 3
|𝐴| ≠ 0, 𝑡ℎ𝑒 𝑚𝑎𝑡𝑟𝑖𝑥 𝑖𝑠 𝑛𝑜𝑛 − 𝑠𝑖𝑛𝑔𝑢𝑙𝑎𝑟 𝑎𝑛𝑑 𝑡ℎ𝑒𝑟𝑒𝑓𝑜𝑟𝑒 𝐴−1 𝑒𝑥𝑖𝑠𝑡𝑠.

𝒂𝒅𝒋 𝑨 = (𝑪𝒐𝒇𝒂𝒄𝒕𝒐𝒓 𝒎𝒂𝒕𝒓𝒊𝒙 𝒐𝒇 𝑨)𝑻
𝑪𝒐𝒇𝒂𝒄𝒕𝒐𝒓 𝒐𝒇 𝒂𝒊𝒋 = (−𝟏)𝒊+𝒋 𝒅𝒆𝒕(𝑴𝒊𝒏𝒐𝒓 𝒂𝒊𝒋 )
−1 4
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎11 = (−1)1+1 | | = −23
5 3
3 4
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎12 = (−1)1+2 | | = −(9 − 8) = −1
2 3
3 −1
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎13 = (−1)1+3 | | = 17
2 5
1 0
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎21 = (−1)2+1 | | = (−1)(3) = −3
5 3
−2 0
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎22 = (−1)2+2 | | = −6
2 3
−2 1
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎23 = (−1)2+3 | | = (−1)(−10 − 2) = 12
2 5
1 0
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎31 = (−1)3+1 | |=4
−1 4
−2 0
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎32 = (−1)3+2 | | = (−1)(−8) = 8
3 4
−2 1
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎33 = (−1)3+3 | | = −1
3 −1
−23 −1 17
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝐴 = ( −3 −6 12 )
4 8 −1
𝒂𝒅𝒋 𝑨 = (𝑪𝒐𝒇𝒂𝒄𝒕𝒐𝒓 𝒎𝒂𝒕𝒓𝒊𝒙 𝒐𝒇 𝑨)𝑻
−23 −1 17 𝑇
𝒂𝒅𝒋 𝑨 = ( −3 −6 12 )
4 8 −1
−23 −3 4
𝒂𝒅𝒋 𝑨 = ( −1 −6 8 )
17 12 −1
𝒂𝒅𝒋 𝑨
𝑨−𝟏 =
|𝑨|
𝟏 −23 −3 4
𝑨−𝟏 = ( −1 −6 8 )
𝟒𝟓
17 12 −1
𝒂𝒅𝒋 𝑨
𝑨−𝟏 =
|𝑨|
−2 1 0
|𝑨| = | 3 −1 4| = −2 |−1 4| − 1 |3 4 3 −1
| +0| |
5 3 2 3 2 5
2 5 3
|𝑨| = −𝟐(−𝟐𝟑) − 𝟏(𝟏) = +𝟒𝟔 − 𝟏 = 𝟒𝟓
|𝑨| ≠ 𝟎, 𝒕𝒉𝒆 𝒎𝒂𝒕𝒓𝒊𝒙 𝒊𝒔 𝒏𝒐𝒏 − 𝒔𝒊𝒏𝒈𝒍𝒖𝒍𝒂𝒓, 𝒂𝒏𝒅 𝒕𝒉𝒆𝒓𝒆𝒇𝒐𝒓𝒆 𝒕𝒉𝒆 𝒊𝒏𝒗𝒆𝒓𝒔𝒆 𝒆𝒙𝒊𝒔𝒕𝒔.
Cofactor of aij = (−1)i+j det.Minor aij
−𝟏 𝟒
𝑪𝒐𝒇𝒂𝒄𝒕𝒐𝒓 𝒐𝒇 𝒂𝟏𝟏 = (−𝟏)𝟏+𝟏 | | = −𝟐𝟑
𝟓 𝟑
𝟑 𝟒
𝑪𝒐𝒇𝒂𝒄𝒕𝒐𝒓 𝒐𝒇 𝒂𝟏𝟐 = (−𝟏)𝟏+𝟐 | | = (−𝟏)(𝟏) = −𝟏
𝟐 𝟑
𝟑 −𝟏
𝑪𝒐𝒇𝒂𝒄𝒕𝒐𝒓 𝒐𝒇 𝒂𝟏𝟑 = (−𝟏)𝟏+𝟑 | | = 𝟏𝟕
𝟐 𝟓
𝟏 𝟎
𝑪𝒐𝒇𝒂𝒄𝒕𝒐𝒓 𝒐𝒇 𝒂𝟐𝟏 = (−𝟏)𝟐+𝟏 | | = (−𝟏)(𝟑) = −𝟑
𝟓 𝟑
−𝟐 𝟎
𝑪𝒐𝒇𝒂𝒄𝒕𝒐𝒓 𝒐𝒇 𝒂𝟐𝟐 = (−𝟏)𝟐+𝟐 | | = −𝟔
𝟐 𝟑
−𝟐 𝟏
𝑪𝒐𝒇𝒂𝒄𝒕𝒐𝒓 𝒐𝒇 𝒂𝟐𝟑 = (−𝟏)𝟐+𝟑 | | = (−𝟏)(−𝟏𝟐) = 𝟏𝟐
𝟐 𝟓

𝟏 𝟎
𝑪𝒐𝒇𝒂𝒄𝒕𝒐𝒓 𝒐𝒇 𝒂𝟑𝟏 = (−𝟏)𝟑+𝟏 | |=𝟒
−𝟏 𝟒
−𝟐 𝟎
𝑪𝒐𝒇𝒂𝒄𝒕𝒐𝒓 𝒐𝒇 𝒂𝟑𝟐 = (−𝟏)𝟑+𝟐 | |= 𝟖
𝟑 𝟒
−𝟐 𝟏
𝑪𝒐𝒇𝒂𝒄𝒕𝒐𝒓 𝒐𝒇 𝒂𝟑𝟑 = (−𝟏)𝟑+𝟑 | | = −𝟏
𝟑 −𝟏
−𝟐𝟑 −𝟏 𝟏𝟕
Cofactor Aij = ( −𝟑 −𝟔 𝟏𝟐 )
𝟒 𝟖 −𝟏
Adjoint of A = [ Cofactor A ] T
−𝟐𝟑 −𝟑 𝟒
Adjoint of A = ( −𝟏 −𝟔 𝟖 )
𝟏𝟕 𝟏𝟐 −𝟏
𝟏
𝑨−𝟏 = 𝒂𝒅𝒋 𝑨
|𝑨|
−𝟏
𝟏 −𝟐𝟑 −𝟑 𝟒
𝑨 = ( −𝟏 −𝟔 𝟖)
𝟒𝟓
𝟏𝟕 𝟏𝟐 −𝟏
𝟐𝟑 𝟑 𝟒
− −
𝟒𝟓 𝟒𝟓 𝟒𝟓
𝟏 𝟔 𝟖
𝑨−𝟏 = − −
𝟒𝟓 𝟒𝟓 𝟒𝟓
𝟏𝟕 𝟏𝟐 𝟏
( 𝟒𝟓 − )
𝟒𝟓 𝟒𝟓
Example 31.
2 −1 3
Find the adjoint of 𝐴 = (4 −1 5) and verify 𝐴(𝑎𝑑𝑗𝐴) = (𝑎𝑑𝑗𝐴)𝐴 = |𝐴|𝐼
1 2 3
Solution:
𝑎𝑑𝑗(𝐴) = (𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝐴)𝑇
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎𝑖𝑗 = (−1)𝑖+𝑗 det (𝑀𝑖𝑛𝑜𝑟𝑎𝑖𝑗 )

−1 5
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎11 = (−1)1+1 | | = −𝟏𝟑
2 3
4 5
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎12 = (−1)1+2 | | = −𝟕
1 3
4 −1
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎13 = (−1)1+3 | |=𝟗
1 2
−1 3
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎21 = (−1)2+1 | |=𝟗
2 3
2 3
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎22 = (−1)2+2 | |=𝟑
1 3
2 −1
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎23 = (−1)2+3 | | = −𝟓
1 2
−1 3
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎31 = (−1)3+1 | | = −𝟐
−1 5
2 3
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎32 = (−1)3+2 | |=𝟐
4 5
2 −1
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎33 = (−1)3+3 | |=𝟐
4 −1
−13 −7 9
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝐴 = ( 9 3 −5)
−2 2 2
−13 −7 9 𝑇 −𝟏𝟑 𝟗 −𝟐
(𝑨) (𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑇
𝑨𝒅𝒋 = 𝑜𝑓 𝐴) = ( 9 3 −5) = ( −𝟕 𝟑 𝟐)
−2 2 2 𝟗 −𝟓 𝟐
2 −1 3 −13 9 −2 𝟖 𝟎 𝟎
𝐴(𝑎𝑑𝑗𝐴) = (4 −1 5) ( −7 3 2 ) = (𝟎 𝟖 𝟎) = 𝟖 𝑰
1 2 3 9 −5 2 𝟎 𝟎 𝟖
A11 = -26+7+27 = 8 A21 = -52+7+45 = 0

A12 = 18-3-15 = 0
A13 = -4-2+6 = 0

𝑎𝑑𝑗(𝐴) = (𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝐴)𝑇
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎𝑖𝑗 = (−1)𝑖+𝑗 𝑑𝑒𝑡(𝑀𝑖𝑛𝑜𝑟 𝑎𝑖𝑗 )
−1 5
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎11 = (−1)1+1 | | = −𝟏𝟑
2 3
4 5
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎12 = (−1)1+2 | | = −𝟕
1 3
4 −1
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎13 = (−1)1+3 | |=𝟗
1 2
−1 3
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎21 = (−1)2+1 | |=𝟗
2 3
2 3
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎22 = (−1)2+2 | |=𝟑
1 3
2 −1
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎23 = (−1)2+3 | | = −𝟓
1 2
−1 3
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎31 = (−1)3+1 | | = −𝟐
−1 5
2 3
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎32 = (−1)3+2 | |=𝟐
4 5
2 −1
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎33 = (−1)3+3 | |=𝟐
4 −1
−13 −7 9
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑚𝑎𝑡𝑟𝑖𝑥 𝑜𝑓 𝐴 = ( 9 3 −5)
−2 2 2
𝐴𝑑𝑗𝑜𝑖𝑛𝑡 𝑜𝑓 𝐴 = (𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝐴)𝑇
−13 9 −2
𝐴𝑑𝑗𝑜𝑖𝑛𝑡 𝑜𝑓 𝐴 = ( −7 3 2)
9 −5 2

2 −1 3 −13 9 −2 8 0 0
𝐴 (𝑎𝑑𝑗 𝐴) = (4 −1 5) ( −7 3 2 ) = ( 0 8 0) = 8 𝐼3
1 2 3 9 −5 2 0 0 8
−13 9 −2 2 −1 3 8 0 0
(𝑎𝑑𝑗 𝐴) 𝐴 = ( −7 3 2 ) (4 −1 5) = ( 0 8 0) = 8 𝐼3
9 −5 2 1 2 3 0 0 8
Therefore, L.H.S. = R.H.S. proved.
Solution:
Cofactor of 2 = (−1)1+1 (−3 − 10) = −13
Cofactor of −1 = (−1)1+2 (12 − 5) = −7
Cofactor of 3 = (−1)1+3 (8 + 1) = 9
Cofactor of 4 = (−1)2+1 (−3 − 6) = 9
Cofactor of −1 = (−1)2+2 (6 − 3) = 3
Cofactor of 5 = (−1)2+3 (4 + 1) = −5
Cofactor of 1 = (−1)3+1 (−5 + 3) = −2
Co factor of 2 = (−1)3+2 (10 − 12) = 2
Co factor of 3 = (−1)3+3 (−2 + 4) = 2
−13 −7 9 𝑇 −13 9 −2
𝑨𝒅𝒋 𝑨 = ( 9 3 −5) = ( −7 3 2)
−2 2 2 9 −5 2
2 −1 3
|𝑨| = |4 −1 5| = 𝟖
1 2 3
2 −1 3 −13 9 −2 8 0 0
𝑨(𝑨𝒅𝒋 𝑨) = (4 −1 5) ( −7 3 2 ) = (0 8 0)
1 2 3 9 −5 2 0 0 8

𝑨(𝑨𝒅𝒋 𝑨) = 𝟖 𝑰 = |𝑨| 𝑰 = L.H.S.
Now the R.H.S.

−13 9 −2 2 −1 3 8 0 0
(𝑨𝒅𝒋 𝑨) 𝑨 = ( −7 3 2 ) (4 −1 5) = (0 8 0)
9 −5 2 1 2 3 0 0 8
(𝑨𝒅𝒋 𝑨) 𝑨 = 𝟖 𝑰 = |𝑨| 𝑰 = R.H.S.
Therefore, L.H.S. = R.H.S. proved.
1.14 Inverse of a Square Matrix
A matrix X is said to be inverse of the matrix A if X A= A X = I where I is the identity matrix.

X is denoted by A −1 (called the inverse of A )
𝟏
𝑨−𝟏 = 𝑨𝒅𝒋(𝑨)
|𝑨|
Adj A = ( Cofactor matix of A )T
Cofactor of aij = (−1)i+j Det ( Minor of aij)
|A| = 0, then A-1 is indeterminate, A-1 does not exist.

(Singular)
The necessary and sufficient condition for the existence of an inverse for a matrix A is
|A| ≠ 0 (Non-singular)
−1
For the square matrix A, A is given by
1
adj A provided A  0
A
−1 1
Thus A = adj A
A
Example 32:
12 15
Find the inverse of   a-1 = (1/6) 3 -15
2 3 
Solution : -2 12

−1
We know inverse of A, A = ( ) Adj A
| A|
Now, calculate A = 3 x 12 –2 x 15
= 36 + 30
=6
Now, calculate adj A
Co-factor of 12 = 3
Co-factor of 15 = -2
Co-factor of 2 = -15
Co-factor of 3 = 12
3 − 2 
Co factor matrix = − 15 12
 
3 − 1 5 
Adj A = Transpose of co-factor matrix  
 − 2 1 2
3 15 
  3 15   1 − 5 
−1 Adj A 2 12  6 − 6   2 2
Now, A = = =   =
 2 
− 2 6 −1
A 6 12

6  3 
Example 33:
1 2 − 1
− 1 1 2 
Find the inverse of 
2 − 1 1 
Solution :
1 2 − 1
 2 
Let A = − 1 1
2 − 1 1 
𝟏
|𝑨|
Cofactor of aij = (-1)i+j Det ( Minor of aij)

1 2 −1
 A = −1 1 2
2 −1 1
|𝐴| = 1 | 1 2| − 2 |−1 2| − 1 |−1 1 |

−1 1 2 1 2 −1
|𝐴| = (1 + 2) − 2(−1 − 4) − 1(1 − 2)
|𝐴| = 3 + 10 + 1 = 𝟏𝟒
|A| ≠ 0, the matrix is non-singular, therefore the inverse exists.
Cofactor of aij = (−1)i+j Det ( Minor of aij)

1 2
Cofactor of a11 = (−1)1+1 | | = 1 − (−2) = 1 + 2 = 𝟑
−1 1
−1 2
Cofactor of a12 = (−1)1+2 | | = (−1)(−1 − 4) = 𝟓
2 1
−1 1
Cofactor of a13 = (−1)1+3 | | = 1 − 2 = −𝟏
2 −1
2 −1
Cofactor of a21 = (−1)2+1 | | = (−1)(2 − 1) = −𝟏
−1 1
1 −1
Cofactor of a22 = (−1)2+2 | |= 1+2=𝟑
2 1
1 2
Cofactor of a23 = (−1)2+3 | | = (− 1)(−1 − 4) = 𝟓
2 −1
2 −1
Cofactor of a31 = (−1)3+1 | |=4+1=𝟓
1 2
1 −1
Cofactor of a32 = (−1)3+2 | | = (−1)(2 − 1) = −𝟏
−1 2
1 2
Cofactor of a33 = (−1)3+3 | |= 1+2=𝟑
−1 1

 3 5 − 1
 
Cofactor matrix  − 1 3 5 
 5 −1 3 
 
Adjoint matrix = [ Cofactor matrix ] T
 3 −1 5 
 
Adjoint matrix  5 3 − 1
 −1 5 3 
 
𝟏
|𝑨|
𝟏 𝟑 −𝟏 𝟓
𝑨−𝟏 = (𝟓 𝟑 −𝟏)
𝟏𝟒
−𝟏 𝟓 𝟑
𝟑/𝟏𝟒 −𝟏/𝟏𝟒 𝟓/𝟏𝟒

−𝟏
𝑨 = ( 𝟓/𝟏𝟒 𝟑/𝟏𝟒 −𝟏/𝟏𝟒)
−𝟏/𝟏𝟒 𝟓/𝟏𝟒 𝟑/𝟏𝟒
Example 34:
3 −1 2
 1 
Compute the inverse of the matrix 0 4
1 −2 5
Solution :
3 −1 2
 1  = A
Let 0 4
1 −2 5
The determinant is the given matrix A is

3 −1 2
|𝐴| = |0 4 1| = 3(20 + 2) + 1(0 − 1) + 2(0 − 4) = 𝟓𝟕
1 −2 5
|𝐴| ≠ 0, 𝑡ℎ𝑒𝑟𝑒𝑓𝑜𝑟𝑒 𝑡ℎ𝑒 𝑖𝑛𝑣𝑒𝑟𝑒 𝑜𝑓 𝐴 𝑒𝑥𝑖𝑠𝑡𝑠.

𝟏
|𝑨|
To find adj A
Cofactor of 3 = (− 1)1+1 (2 0 + 2) = 2 2
Cofactor of -1 = (− 1)1+ 2 (0 − 1) = 1
Cofactor of 2 = (− 1)1+3 (0 − 4) = − 4
Cofactor of 0 = (− 1)2+1 (− 5 + 4) = 1
Cofactor of 4 = (− 1)2+2 (15 − 2) = 13
Cofactor of 1 = (− 1)2+3 (− 6 + 1) = 5
Cofactor of 1 = (− 1)3+1 (− 1 − 8) = − 9
Cofactor of -2 = (− 1)3+ 2 (3 − 0) = − 3
Cofactor of 5 = (− 1)3+3 (1 2 − 0) = 1 2
2 2 1 − 4  −9 
T
2 2 1
   − 3 
Adj A = − 1 1 3 5  = − 1 13
− 9 − 3 1 2 − 4 5 12
2 2 1 
 57 57 −7 
2 2 1 − 7   57 
A −1 =
1 
−  = − 1 13 −3

1 1 3 5  57 57 
57  

57

− 7 − 3 12 
 −3 
 57 5 12 
 57 5 7 
Example 35 :
1 − 3 2 
 
Find the inverse of A = 0 2 8 
− 1 5 7 

Solution :
1 − 3 2 
 
Given, A = 0 2 8 
− 1 5 7 
adj A
We know A−1 =
A
Calculate, A = 1 ( 14 − 4 0) − (− 3) (0 + 8) + 2 (0 + 2)
= − 2 6 + 3( 8 ) + 4
= − 26 + 24 + 4
= − 2 6 + 28 + 4
Again calculate, adj A

 2 8 0 8 0 2 
− − + 
 5 7 −1 7 −1 5 
 −3 2 1 2 1 −3 
Cofactor of A = − + − 
 5 7 −1 7 −1 5 
 
+ − 3 2 − 1 2
+
1 −3 
 2 8 0 8 0 2 
14 − 4 0 − (0 + 8) 0 + 2  − 2 6 − 8 2
− (− 21 − 10) 7+2 − (5 − 3)  =  31 9 − 2
= 
− 2 4 − 2 4 − 8(8 − 0) (2 − 0) − 2 8 − 8 2 
− 2 6 31 − 2 8
 adj A = − 8 9 − 8 
2 −2 2 
− 2 6 31 − 2 8
8 9 − 8  − 13
31 − 14
  2 
2 −2 2   
= = 4 9 − 4
2 2
 
 1 −1 1
 

1.16 Summary:-
- Determinant of a square matrix.

Every square matrix A is associated with a number called the determinant of the matrix.
- Properties of Determinant:
• The value of the determinant is unaltered, if its corresponding rows and columns are
interchanged.
• A determinant changes its sign when two of its rows (or columns) are interchanged.
• The value of the determinant is zero if any two of its rows or columns are identical.
• If all the elements of one row (or column) be multiplied by a constant number ‘k’, then the
value of the determinant is multiplied by ‘k’.
• If the elements of any row or any column of a determinant is the sum (difference) of two or
more elements, then the determinant can be expressed as sum (difference) of two or more
determinant.
• The value of the determinant remains unaltered by adding (or subtracting) to all the elements
of any particular row (or column) the some multiple or corresponding elements of one or
more other rows (columns).
• If all the elements in a row (or column) of a determinant are zeros, then the value of the
determinant is a zero.
• In a determinant, if all the elements on one side of the principle diagonal are zeros, then the
value of the determinant is equal to the product of the elements.
Minor of an element:
The minor of an element in a determinant obtained by deleting the row and the column in
which the element appears.
Cofactor of an element:
If the minors are multiplied by proper signs which are given below then it is called co – factor
of that element.

+ − + 
− + −
 
+ − + 
Adjoint:
Adjoint of a matrix is the transpose of co – factors of elements of the given matrix:
Inverse of matrix:
1
A -1 = adj A
A
(A) Simultaneous equation using Cramer rule:
Consider the system of equations.

a11x + a12y = b1 ………………. (1)
a21x + a22y = b2 ………………. (2)
a 11 a 1 2
Let Δ =
a 21 a 2 2
a 11 b1
Δ1 =
a 21 b2
b1 a 12
Δ2 =
b2 a 22
1 
Then, x = & y= 2
 
1.17 Terminal Questions:
 4 − 2
1. Find the minor and co-factor of -2 in the matrix  
 3 18 
− 2 − 3 4
 2 7 
2. Find the minor and co-factor of 4 in the matrix  3
 1 7 6

3. Find the inverse of the following:
 1 4 7  − 7 2 5
− 3 1 
a)  
 
b) − 2 3 5 c)  6 1 6
 5 11  − 5 6 0  1 2 3
0 1 2 
 
4. Find the adjoint of 3 0 5 and show that A. adj A = adj A.A = A . I
1 4 6
11 4 − 3
 9  and show that A. adj A = adj A.A = A . I
5. Find the adjoint of  2 5
 8 − 7 6 
6. Show that following matrices are singular

1 3 9
1 4   
a)   b ) 1 4 8
 4 1 6  1 5 7
7. Show that following matrices are non-singular:

2 - 1 - 1
1 5 
a)   b ) 3 1 1 
2 - 7  1 - 2 2 
8. Compute the inverse of the following:

1 3 2 1 - 1 0
3 2
a)   b ) 2 1 1 c ) 2 - 4 4
 
- 2 - 3 5 2 3 0 1 2
9. Solve
a) 3x – y = 6, 2x + 3y = 15.
b) x + y + z = 6, x + 2y + 32 = 14, -x + y – z = -2.
c) x + y = 3, y + z = 5, z + x = 4.
d) x + y + z = 6, x – y + z = 2, 3x + 4y +8z = 5.
10. The prices of three commodities P, Q and R are Rs. X, Rs. Y, Rs. Z per unit respectively. A
purchases 4 units of R & R sells 3 units of P & 5 units of Q. B purchases 3 units of Q and sells

2 units of P and 1 unit of R. C purchases 1 unit of P, sells 4 units of Q and 6 units of R. In the
process A, B and C earn Rs. 6,000, Rs. 5,000 and Rs. 13,000 respectively. Find the prices of
P, Q & R.
1.18 Answers for the Terminal Questions:

1. 3
2. 19
-3 0 4 2 -1   -9 4 11 
11 -1    
3. a)   b ) -2 5 3 5 -19 c ) -1 2 -2 6 16 
-5 -3  3 -2 6 11   11 7 2 -19
- 1 5 −1 
 3 2   4 4 4  - 19 13 6 
8. a )  5 5  b)  1 7 − 3  c) - 1  -4 1 10 
− 2 −3   4 4 4 136 
 5 5 1 − 1 3 5  − 3 4 3 4 − 6 8
 4 4 4
9. a) x = 3, y = 3
b) x = 1, y = 2, z = 3.
c) x = 1, y = 2, z = 3
d) x = 6, y = 3, z = 5.
10. x = 3,000 y = 1,000 z = 2,000.

Find the inverse of the following matrix
1 2 3
𝐴 = (2 4 1 )
3 2 9
Solution:
𝑎𝑑𝑗 𝐴
𝐴−1 =
|𝐴|
𝐴𝑑𝑗 𝐴 = [ 𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑚𝑎𝑡𝑟𝑖𝑥 𝑜𝑓 𝐴]𝑇
Cofactor of aij = (-1)i+j det.Minor aij
|𝐴| = 1 |4 1| − 2 |2 1| + 3 |2 4
|
2 9 3 9 3 2
|𝐴| = 1(4 × 9 − 2 × 1) − 2(2 × 9 − 3 × 1) + 3(2 × 2 − 4 × 3)
|𝐴| = (36 − 2) − 2(18 − 3) + 3(4 − 12)
|𝐴| = 34 − 30 − 24 = −𝟐𝟎
|A| ≠ 0, the matrix is non-singular and therefore the inverse exists.
Cofactor of aij = (-1)i+j det.Minor aij
4 1
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎11 = (−1)1+1 | | = 4 × 9 − 2 × 1 = 𝟑𝟒
2 9
2 1
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎12 = (−1)1+2 | | = (−1)(2 × 9 − 3 × 1) = −𝟏𝟓
3 9
2 4
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎13 = (−1)1+3 | | = (2 × 2 − 3 × 4) = −𝟖
3 2
2 3
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎21 = (−1)2+1 | | = (−1)(2 × 9 − 3 × 2) = −𝟏𝟐
2 9
1 3
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎22 = (−1)2+2 | | = (1 × 9 − 3 × 3) = 𝟎
3 9
1 2
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎23 = (−1)2+3 | | = (−1)(1 × 2 − 3 × 2) = 𝟒
3 2

2 3
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎31 = (−1)3+1 | | = (1 × 2 − 3 × 4) = −𝟏𝟎
4 1
1 3
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎32 = (−1)3+2 | | = (−1)(1 × 1 − 3 × 2) = 𝟓
2 1
1 2
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑜𝑓 𝑎33 = (−1)3+3 | | = (1 × 4 − 2 × 2) = 𝟎
2 4
34 −15 −8
𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑚𝑎𝑡𝑟𝑖𝑥 = (−12 0 4)
−10 5 0
𝐴𝑑𝑗 𝐴 = [ 𝐶𝑜𝑓𝑎𝑐𝑡𝑜𝑟 𝑚𝑎𝑡𝑟𝑖𝑥 𝑜𝑓 𝐴]𝑇
34 −12 −10
𝐴𝑑𝑗𝑜𝑖𝑛𝑡 𝑚𝑎𝑡𝑟𝑖𝑥 = (−15 0 5 )
−8 4 0
𝑎𝑑𝑗 𝐴
𝐴−1 =
|𝐴|
𝟏 𝟑𝟒 −𝟏𝟐 −𝟏𝟎
𝑨−𝟏 = (−𝟏𝟓 𝟎 𝟓 )
−𝟐𝟎
−𝟖 𝟒 𝟎
−𝟏𝟕/𝟏𝟎 𝟑/𝟓 𝟏/𝟐

−𝟏
𝑨 = ( 𝟑/𝟒 𝟎 −𝟏/𝟒)
𝟐/𝟓 −𝟏/𝟓 𝟎
𝑎11 𝑎12 𝑎13 + − +

(𝑎21 𝑎22 𝑎23 ) (− + −)
𝑎31 𝑎32 𝑎33 + − +
Solve by Cramer’s rule:

x + 2y + 16 = 0, 2x + 4 = 3y
1 2 𝑥 −16
Step1: [ ] [𝑦 ] = [ ]
2 −3 −4
1 2
Step2: ∆= | | = −3 − 4 = −7
2 −3

−16 2 ∆𝑥 56
Step3: ∆𝑥 = | | = 48 + 8 = 56 𝑥= = = −𝟖
−4 −3 ∆ −7
1 −16 ∆𝑦 28
Step4: ∆𝑦 = | | = −4 + 32 = 28 𝑦= = = −𝟒
2 −4 ∆ −7

MODULE – 2
RATIO AND PROPORTION
Ratio
2.1 Meaning, Definition, Characteristics and Terms
Meaning
The relationship between any two or more numerical expressed in the same unit. This is found
out with a view to making a comparison between the magnitudes of any two or more related
phenomena, viz., marks secured by two or more students, heights of two or more persons, weights
of two or more articles. It is expressed at the lowest possible magnitude either in the form of a
fraction as 1/2 or in the form of a parallel as 1:2 or in the form of a quotient as 0.5 (of 1/2), in
accordance with the nature of the data. Thus, if two students, A and B have secured marks as 30
and 60 respectively, the said two marks can be expressed in any of the following three forms of
ratio:
A 30 1
= = (Fractional form)
B 60 2
A : B = 30: 60 =1: 2 (Parallel form)
A/B =30/60 = 0.5 (Quotient form)
Definition
From the foregoing discussion the term, ‘ratio’ can be defined as ‘a relation between
any two or more numbers expressed in the same unit, which is expressed in some arithmetic
form with a view to making meaning full comparison between any two or more related
phenomena.’
2.2 Different Types of Ratios
There are different types of ratios which may be identified as under:
1. Unit ratio
A unit ratio or a ratio of equality is one in which both the terms are equal.
m
Thus is a unit ratio when m = n i.e., 1: 1
n
2. Ratio of greater inequality

A ratio of greater inequality is one in which the value of the antecedent term is greater than
value of its consequent term.

m
Thus, would be ratio of greater inequality when m > n viz., 3 : 2, 5 : 4 etc.
n
3. Ratio of lesser inequality
A ratio of lesser inequality is one in which the value of the antecedent term is less than the
value of its consequent term.
m
Thus, would be a ratio of lesser inequality when m < n viz., 2 : 3, 4 : 5 etc.
n
4. Inverse ratio
An inverse ratio is one which is obtained by interchanging the antecedent and the subsequent
m
terms in a given ratio. Thus, if the given ratio is or m:n then its inverse ratio would be
n
n
or n : m. The product of the given ratio
m
m n
And its inverse would be equal to 1. Thus,  = 1
n m
This ratio is also, otherwise called, ‘Reciprocal ratio’ as it is obtained by multiplying the
1 1
ratio of these reciprocals of its two terms. Thus, the inverse of m: n=  = n: m
m n
5. Compound ratio
A compound ratio is one, which is obtained by multiplying the antecedent terms, and the
consequent terms with the consequent terms of the given ratios. Thus, the compound ratio
of the ratios 3 : 5, and 4 : 7 would be 3  4 =12 : 35
5 7
Similarly, the compound ratio of the ratio 1 : 2, 2 : 3, and 3 : 4 would be
1×2×3 1
= = 1: 4
2×3×4 4
6. Duplicate ratio
A duplicate ratio is one which is obtained by squaring up the respective terms of a given
ratio. Thus if the given ratio is 3 : 4, then its duplicate ratio would be 32: 42 or 9 : 16.
7. Sub-duplicate ratio
A Sub-duplicate ratio is one, which is obtained by taking the square roots of the respective
terms of a given ratio. Thus, if the given ratio is 4 : 9, then its sub-duplicate ratio would be
4 : 9 or 2 : 3

8. Triplicate ratio
A triplicate ratio is one which is obtained by taking cubes of respective terms of a ratio.
Thus, if the given ratio is 1 : 2 then its triplicate ratio would be 13 : 23 or 1 : 8.
9. Sub–triplicate ratio
A sub-triplicate ratio is one which is obtained by taking the cube roots of the respective
terms of a ratio. Thus, if the given ratio is 8 : 27, then its sub-triplicate ratio would be 3 8 :
3 2 7 or 2 : 3.
10. Continued ratio

A continued ratio is one which is obtained by taking the relation between the magnitudes of
three or more quantities of the same kind. Thus, the ratio of x: y: z: w and 3: 4: 5: 6 are
examples of a continued ratio.
For example, if the monthly income of three persons X, Y and Z are Rs 300, Rs.500 and
Rs.800 respectively, then their ratio of income which is 3: 5: 8 is a matter of continued ratio.
Let us now study the worked examples on few problems on the concept ratio
Worked examples
1. A bag contains `1, `0.5, `0.25 coins in the ratio 5:6:8.

If the total amount is Rs.840/-, find the number of coins in each type.
Solution:
Coins are in the ratio 5 : 6 : 8
5 6 8
Ratio of value of given amount = : : =5:3:2
1 2 4
Given the total amount is Rs. 840/-
5
Value of 1Re coins =  840 = R s. 420 / −
10
3
Value of 50p coins =  840 = R s. 252 / −
10
2
Value of 25p coins =  840 = R s.168 / −
10
Number of 1Rs. Coins = (420/1) = 420 coins;
Number of 50ps coins = 252*2 = 504 coins;
Number of 25ps coins= 168*4 = 672 coins
2. In a mixture of 35 liters, the ratio of milk and water is 4:1.

If 7 liters of water is added, then find the ratio of the given mixture.
Solution:
Given ratio = 4 : 1
Total quantity of mixture = 35 liters
4
Quantity of milk = 5 × 35 = 28 𝑙𝑖𝑡𝑒𝑟𝑠
1
Quantity of water = 5 × 35 = 7 𝑙𝑖𝑡𝑒𝑟𝑠
If 7 liters of water is added,

Then the new ratio of milk : water is 28 : (7+7) = 28:14. i.e., 2:1
3. Three containers have a mixture of milk and water in the ratio 6:1, 5:2, and 3:1. If all the
mixtures are taken together, find the ratio of milk and water in the final mixture.
Solution:
1st container Ratio = 6:1 → Milk = 6/7; Water = 1/7
2nd container Ratio = 5:2 → Milk = 5/7; Water = 2/7
3rd container Ratio = 3:1 → Milk = 3/4; Water = 1/4
6 5 3 24+20+21 65
Total quantity of milk in the final mixture: 7 + 7 + 4 = =
28 28
1 2 1 4+8+7 19
Total quantity of water in the mixture: = +7+4= = 28
7 28
65 19
New ratio of the final mixture is: : = 65 : 19
28 28
4. A, B and C start a business with a capital of Rs.10,500. Of this Rs.4400 is contributed by

A, Rs.3700 is contributed by B and the rest by C. After 5 months C withdraws Rs.800 from
the capital, while Rs.400 was added to the capital by both A and B. At the end of the year,
profit was 14% of the original capital. Find the profit received by each partner.
Solution: Initial month (1-5 months) From 6th month (7 months)

Total contribution: Rs.10,500 A’s share: Rs.4400 Rs.4800
B’s share: Rs.3700 Rs.4100
C’s share: Rs.2400 Rs.1600
A’s share in the capital:
= Rs.4400 used for 5 months and Rs.4800 for next 7 months
= Rs.4400×5 + Rs.4800×7 = Rs.55600
B’s share in the capital:
= Rs.3700×5 + Rs.4100 ×7 = Rs.47200
C’s share in the capital:

= Rs.2400×5 + Rs.1600 ×7 = Rs.23200
Ratio of the capital used = A:B:C = 55600 : 47200 : 23200 = 139 : 118 : 58
Total = 139+118+58 = 315
Profit = 14% of Rs.10500 = Rs.1470

139 556
A’s profit = 315 × 1470 = 𝑅𝑠. 648.67 A’s profit = 1260 × 1470 = 𝑅𝑠. 648.67
118 472
B’s profit = 315 × 1470 = 𝑅𝑠. 550.67 B’s profit = 1260 × 1470 = 𝑅𝑠. 550.67
58 232
C’s profit = 315 × 1470 = 𝑅𝑠. 270.66 C’s profit = 1260 × 1470 = 𝑅𝑠. 270.66
5. Five years ago, Ajay’s father’s age was 5 times his son’s age. After 2 years he will be 3 times
Ajay’s. Find the ratio of their present ages.
Solution:
5 years ago, Let Ajay’s age be x.
Let father’s age be 5x.
Presently, Let Ajay’s age be x+5.
Let father’s age be 5x+5.
After 2 years, Let Ajay’s age be x+5+2 = x+7.
Let father’s age be 5x+5+2 = 5x+7.
Given: After 2 years, Ajay’s Father’s age =3 times Ajay’s age

i.e., 5x+7 = 3(x+7)
5x +7 = 3x + 21
5x − 3x = 21 – 7
2x = 14 → x = 7
 Ajay’s present age be x+5 = 7+5 = 12.
 Ajay’s Father’s age be 5x + 5 = 5(7) + 5 = 35+5 = 40
Thus, ratio of their present ages = 12 : 40 = 3:10
Aliter:
Son’s age Father’s age
Age before Five years x 5x
Present age x+5 5x + 5
Age after two years x+5+2 = x+7 5x+5+2 = 5x+7
Now, after two years father’s age will 3 times of his son’s age → 5x+7 = 3(x+7)
→ 5x+7 = 3x+21
→ 5x – 3x = 21 – 7
→ 2x = 14
→ x=7
Therefore, the present age of son = x+5 = 7+5 = 12 years

the present age of father = 5x+5 = 5×7+5 = 40 years
the ratio of their present ages = 12 : 40 → 3 : 10
Five years ago, Ajay’s father’s age was 5 times his son’s age. After 2 years he will be 3 times
Ajay’s. Find the ratio of their present ages.
Alternate method:
Son’s age Father’s age

Age before Five years x−5 5(x−5) = 5x – 25
Present age x 5(x−5) + 5 = 5x−20
Age after two years x+2 5(x−5) + 5+2 = 5x−18
Now, after two years father’s age will 3 times of his son’s age → 5x−18 = 3(x+2)
→ 5x−18 = 3x+6
→ 5x – 3x = 18+6
→ 2x = 24
→ x = 12

Therefore, the present age of son = x = 12 years
the present age of father = 5x – 20 = 5 ×12 – 20 = 40 years
the ratio of their present ages = 12 : 40 → 3 : 10
2.6 Questions
Self-Assessment Questions:
1. Find the ratio of

1) 15 and 35 15/35 3/7 3 : 7
2) 125 and 175,
3) 7.7 and 9.9,
4) 6.9 and 4.6,
5) 7.40 and 0.37,
6) 1.7 m and 34 cm,
7) 1.250 kg. and 750 gm.
8) 8 doz. and 6 gross, [ 1 gross = 12 dozen ]
9) 1.75 lit and 250ml,
10) 0.175 m 50 cm, 17.5 : 50 7 : 20
5 6 5 15 75
11) 18 𝑎𝑛𝑑 × = 108 = 25 ∶ 36
15 18 6
8 6 71 7
12) 7 9 𝑎𝑛𝑑 5 7 × 41 = 497 ∶ 369
9
1) 3 : 7
2) 5 : 7
3) 7 : 9
4) 3 : 2
5) 20 : 1
6) 5 : 1
7) 5 : 3
8) 1 : 9
9) 7 : 1
10) 7 : 20
11) 75 : 108 = 25 : 36
12)
Termianl Questions:

1. Find the ratio between the price of items costing Rs. 750 and Rs.500.
2. Write the duplicate and sub-duplicate ratio of 1:9.
3. Write the triplicate and sub-triplicate ratio of 1:8.
4. A mixture of nuts and screws is in the ratio 4:3. If 7 screws are added to the mixture, the ratio
becomes 3:4. Find the number of nuts in the mixture.
5. The ratio between the ages of A and B is 6:5 and the sum of their ages is 44 years. Find the
ratio of their ages after 8 years.
6. The ratio between the ages Sachin’s and Prem’s age at present is 2:3. Sachin is 6 years younger
than Prem. Find the ratio of Sachin’s age and Prem’s age after 6 years.
7. A, B and C start a business with investments of Rs.54,000, Rs.44,000 and Rs.40,000
respectively. If the profit for the year is Rs.6850, find the profit earned by each partner.
8. A travels 700 kms. By a bike and a bicycle in the ratio of 13 : 1. Find the distance covered by
each of the means.
Answers:
Answers for the self-assessment questions:
(i) 3:7
(ii) 5:7
(iii) 7 : 9
(iv) 3 : 20
(v) 20 : 1
(vi) 10 : 2
(vii) 5 : 3
(viii) 1 : 9
(ix) 7:1
(x) 7 : 20
(xi) 25 : 36
(xii) 397 : 369
Answers for terminal questions:

1. 3: 2
2. 1:81, 1:3
3. 1:512, 1:2
4. 12
5. 35 Kgs
6. 8:11
7. 3:4
8. Rs.2650, Rs.2200, Rs.2000
9. 650 kms, 50kms

Proportion
2.3 Meaning, Definition and Terms
Meaning
If four quantities say a, b, c and d are so related that the relationship between a and b is equal to
the relationship between c and d, then the said four quantities are said to be in proportion.
Definition
From the above meaning the term proportion may be defined as equality in two ratios as a : b = c
: d, which is usually expressed as a : b : : c : d and read as a is to b is equal to c is to d.
For example, the ratio 2:3 is equal to the ratio 6:9, and hence, it can be said that the numbers 2, 3,
6 and 9 are in proportion.
Terms
In a proportion, the various quantities involved are called terms of the proportion. Thus, in the
proportion, a: b :: c: d, a, b, c and d are different terms of the proportion. In the above case, a is
the first term, b the second, c the third and d the fourth term. Again a and d in the said case are
called extreme terms, while b and c are called middle or mean terms of the proportion.
Thus, in the numerical example of proportion 2: 3 :: 6 : 9, 2 and 9 are the extreme terms, and 3 and
6 are the middle or mean terms.
It may be noted that in a proportion the product of the two extreme terms is equal to the
product of the two mean terms. Thus, in a proportion of a: b:: c : d, ad = bc. In the numerical
example given above, in 2 : 3 : : 6 : 9, 2 x 9 = 3 x 6.
Where, however, the mean terms of a proportion happen to be the same, the product of the extreme
terms is equal to the square of the mean terms.
Thus in the proportion, a : b : : b : c, ac = b2, for example if a proportion stands like 1 : 3 : : 3 : 9,

then 1 x 9 = 32
From the above it, also, follows that the continued mean term of a proportion is equal to the square
root of the two extreme terms. Thus, in the case of a: b:: b : c
b = ac
In the above numerical example, also 3 = 1 9
In the above two examples, both 6 and 3 are the continued mean terms of the respective proportion.
2.4 Different Types of Proportion
There are different types of proportion which may be annotated as under:

1. Simple Proportion
When the number of related terms remains within four it is a case of simple proportion. the
examples of such a proportion are : a : b : : c : d, and 2 : 3 : : 8 : 12.
The method used to solve a problem involving such a proportion is called Rule of three. Under
this rule the value of any one of the four terms can be ascertained directly when the values of the
other three terms are known or given.
2. Compound proportion
When the number of related terms exceeds four, it is a case of compound proportion. The example
of such a proportion are : (i) a : b : : c : d : : e : f, (ii) 2 : 3 : : 8 : 12 : : 6 : 9
The method used to solve a problem involving such a proportion is known as compound Rule of
Three. Under this rule, various possible simple proportions with four terms are formed out of the
given compound proportion, and for each such simple proportion the solutions are found out by
the Rule of Three cited above.
3. Continued Proportion
A continued proportion is one in which there is a chain of ratios between the related terms. The
examples of continued proportion are: (i) a : b = b : c = c : d and so on (ii) 1 : 2 = 2 : 4 = 8 : 16
and so on.
It may be noted that the second term is called a mean proportional between the first and the third
terms; the third proportional to the first and the second terms. The fourth term is called the fourth
proportional to the first and the second and third terms. To find the third proportional to the 1st and
the 2nd term is the same thing as finding the fourth proportional to the first, second and third terms.
Example1. Find the third proportional to 8 and 12.
Solution:
The third proportional to 8 and 12 means the fourth proportional to 8, 12 and 12.
Let the fourth proportional be x. Then 8, 12, 12 and x form the proportion as thus,
8 : 12 = 12 : x
8 12
  =  8x = 12  12
12 x
 x = 12  12 = 18
8
Thus, 18 is the third proportional to 8 and 12.
The same 18 is also, the fourth proportional to 8, 12 and 12.

4. Direct proportion
A direct proportion means a positive correlation between the two related terms where an increase
in the value of one is followed by a proportionate increase in the value of another and a decrease
in the value of one is followed by proportionate decrease of in the value of another. The example
of such proportion are:
(a) The ratio between cost and quantity of an article
(b) The height and weight of a person.
5. Inverse proportion
An inverse proportion means a negative correlation between the two related terms whereby an
increase in the value of one is followed by a proportionate decrease in the value and vice versa.
The examples of inverse proportion are:
(a) The ratio between number of workers and amount of time.
Here, more workers means less time will be required to do a work.
(b) The ratio between price and demand.
Here, price increases means demand decreases and vice versa.
The following examples will show how various problems on proportion are solved.
Example1. From the following terms, form the possible proportions: a,b,c and d.
Solution
The possible proportions that can be formed with the given terms are:
a : b = c : d, i.e., a : b : : c : d, and
a : c = b : d, i.e., a : c : : b : d
Example2. From the numbers given below, construct the possible proportions:
6, 14, 15 and 35
Solution
The possible proportions that can be constructed with the numbers given are :
 6 3 15 3 
6 : 14 : : 15 : 35  6 : 1 4 = = and15 : 3 5 = = 
 1 4 7, 3 5 7 
 2 2
6 : 15 : : 14 : 35  6 : 15 = and1 4 : 3 5 = 
 5 5
Example 3. Find the fourth proportional of 6, 14 and 15

Solution
Let the 4th proportional of 6, 14 and 15. 6, 14, 15, x 6:14 = 15:x
6 15
Thus, 6 : 14 = 15 : x  =  6x = 14 × 15
14 x

14 × 15
𝑥= = 35
6
Hence, the 4th proportional of 6, 14, and 15 = 35
Example 4. Find the third proportional of 6 and 15
Solution
Let the third proportional of 6 and 15 be x
6, 15, 15, x
6 15
Then, 6 : 15 = 15 : 1x  =  6x = 15 x 15
15 x
15  15 2 2 5
x = = = 3 7. 5
6 6
Hence, the third proportional of 6 and 15 = 37.5
Example 5. Find the mean proportional of 4 to 16

Solution
Let the Mean Proportional of 4 and 16 be x.
4, x , x, 16
4 x
Then, 4: x = x: 16  = = x 2 = 16  4 = 6 4
x 16
x = 6 4 = 8.
Example 6. If a : b = 4 : 5, find the value of (3a – 2b) : (2a + 3b).
Solution
𝑎 4
=
𝑏 5
𝑎 𝑏
= 5 = 𝑘 (𝑠𝑎𝑦)
4
𝑎
= 𝑘 → 𝒂 = 𝟒𝒌
4
𝑏
= 𝑘 → 𝒃 = 𝟓𝒌
5

Substituting the values of a and b in the proportion (3a – 2b) : (2a + 3b) we get,
(3(4k ) − 2(5k )): (2(4k ) + 3(5k ))
(12k – 10k) : (8k+15k)
2k : 23k
2 : 23
Aliter:
Since, a : b = 4 : 5  5a = 4b --> a = 4/5b
Substituting the values of a and b in the proportion (3a – 2b): (2a + 3b) we get,
 4  4  2 23 2
 3  b − 2b : 2  b + 3b   b : b  2: 23 (or )
 5  5  5 5 23
Example 7. If a : 3 : 15 = 5 : b : 5, find values of a and b.
Solution:
Given, a : 3 : 15 = 5 : b : 5
 a = 3 = 15 = 3
5 b 5
a
Thus, = 3  a = 15
5
3
And = 3 b = 1
b
Hence, the value of a = 15, and b = 1.
0020
Example 8. If a + b : a – b = 4 : 3, find the values of a and b.
Solution
Given, a + b : a – b = 4 : 3
𝑎+𝑏 4
=
𝑎−𝑏 3
3(𝑎 + 𝑏) = 4(𝑎 − 𝑏)
3𝑎 + 3𝑏 = 4𝑎 − 4𝑏

3𝑎 − 4𝑎 = −4𝑏 − 3𝑏
−𝑎 = −7𝑏
𝑎 7
=
𝑏 1
𝒂 = 𝟕 𝑎𝑛𝑑 𝒃 = 𝟏
Example 9: A concrete mixture was made of cement, chips, and sand. The ratio of the cement and
chip is the same as that of the chips and the sand. If 100 bags of cement and 900 bags of sand were
used in a mixture, find the number of bags of chips that were used in the mixture.
Solution:
Let the number of bags of chips be x. Cement:Chip = Chip:Sand
Cement chip chip Sand
Thus, according to the proportion 100 : x = x : 900

10 0 x
 =  x 2 = 9 0 0  10 0
x 900
x = 900  100 = 300

Hence, the number of bags of chips used in the mixture = 300 bags
Example 10. Divide Rs.4720 among a, b and c so that a:b = 3:4 and b:c = 5:6.
Solution:
Given: a:b = 3:4 × 5 = 15:20 a:b:c
b:c = 5:6 × 4 = 20:24 15: 20 :: 20 : 24
 a : b : c = 15 : 20 : 24
Total = 15 + 20 + 24 = 59
A’s share: 15  4720 =1200

59
B’s share: 20  4720 =1600

59
C’s share: 24  4720 =1920

59

Example 11. Divide Rs.332 into 3 parts such that 4 times of the first part, 5 times of the second
part and seven times third part are equal.
Solution
Let the first part, second part and third part be a, b and c.
𝑥 𝑥 𝑥
Then, 4a = 5b = 7c = x (say) + 5 + 7 = 332
4
x x x 1 1 1
a = , b = and c = 𝑥 (4 + 5 + 7) = 332
4 5 7
1 1 1 4×5×7 4×5×7 4×5×7 83

a :b : c = : : = ∶ ∶ 𝑥 = 332
4 5 7 4 5 7 140
140
𝑎: 𝑏: 𝑐 = 35: 28: 20 𝑥 = 332 × = 𝟓𝟔𝟎
83
Sum = 35+28+20=83
35 𝑥 560
First part:  332 =140 𝑎= = = 140
83 4 4
28 𝑥 560
Second part:  332 =112 𝑏= = = 112
83 5 5
20 𝑥 560
Third part:  332 = 80 𝑐= = = 80
83 7 7

We can use the following equation to solve problems of more than two proportions:
Ist group 2nd group
𝑴𝒂𝒏 × 𝑫𝒂𝒚𝒔 × 𝑯𝒐𝒖𝒓 × 𝑬𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒄𝒚 𝑴𝒂𝒏 × 𝑫𝒂𝒚𝒔 × 𝑯𝒐𝒖𝒓 × 𝑬𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒄𝒚

=
𝑾𝒐𝒓𝒌 𝒅𝒐𝒏𝒆 𝑾𝒐𝒓𝒌 𝒅𝒐𝒏𝒆
(or)
𝑴𝟏 × 𝑫𝟏 × 𝑯𝟏 × 𝑬𝟏 𝑴𝟐 × 𝑫𝟐 × 𝑯𝟐 × 𝑬𝟐
=
𝑾𝑫𝟏 𝑾𝑫𝟐
Example 12. If the cost of 10 metres of cloth is Rs.225, find the cost of 22 metres of cloth.
Solution
Length (mts) Cost (Rs)
10 225
22 x
As the length of the cloth increases, cost also increases. Length (mts) Cost (Rs)
 length and cost are directly proportional. 10 225
22 x
10:22 = 225: x
10 x = 22  225 10x = 22×225
2 2  2 25
x= = 495
10
 22 metres of cloth costs Rs.495.
Example 13 If 60 men can complete a job in 12 days, how many days will 36 men take to complete
the same job?
Solution
Men Days
60 12
36 x
As the number of men increases, days required to complete the job decreases.
 Men and days are indirectly proportional.
60:36=x: 12
3 6 x = 12  6 0

12  6 0
x= = 20
36
 36 men can complete the job in 20 days.
2.6 Questions:
Self-Assessment Questions:
I. Answer the following:
1. State which of the following are proportions.

(i) 2 : 3 : : 6 : 9 (ii) 1 : 3 : : 4 : 15
(iii) 3 : 5 : : 6 : 15 (iv) 7 : 9 : : 14 : 18
(v) 10 : 51 : : 5 : 2.55
II Answer the following:
1. Find the 4th proportional to each of the following:

(i) 4, 5, 24
(ii) 1.5, 4.5, 3.5
(iii)6, 12, 15
(iv) 1/2 , 1/3, ¼
1
(v) 1/7, 1/5, 1
7
2. Find the mean proportional of each of the following:

(i) 1 and 9
(ii) 9 and 25
(iii) 17.5 and .007
1 4
(iv) and
16 25
(v) 2x and 8x
(vi) 360 a4 and 250 a2 b2
3. Find the third proportional of each of the following:

2
(i) 4, 6, (ii) 3, 12 (iii) 2.4, 3.6, (iv) 2 3 m, 4m
4. If a : b = 3 : 4, b : c = 5 : 9, and c : d = 18 : 25, find a : d
15 : 20 : 36 18 : 25
270 : 360: 648 648 : 900

5. If x : y = 3 : 4, find the ratio (7x – 4y ) : (3x +y).
𝑥 3 3 𝑥 3 𝑥 𝑦
= 4 → 𝑥 = 4𝑦 =4 → = = 𝑘 (𝑠𝑎𝑦)
𝑦 𝑦 3 4
3 3
(7 × 4 𝑦 − 4𝑦) ∶ (3 × 4 𝑦 + 𝑦) 𝑥 = 3𝑘 𝑎𝑛𝑑 𝑦 = 4𝑘
21 9
( 4 𝑦 − 4𝑦) ∶ ( 4 𝑦 + 𝑦) (21𝑘 − 16𝑘) ∶ (9𝑘 + 4𝑘)
5 13
(4 𝑦) ∶ ( 4 𝑦) = 𝟓 ∶ 𝟏𝟑 𝟓 ∶ 𝟏𝟑
6. If x:y=5:3 and y:z=5:6. Find the ratio of x:y:z. (Ans: 25:15:18)
7. If x:y=2:3, y:z=4:5 and z:w=6:7 Find the ratio of x:y:z:w.
8. Find the value of the symbols in each of the following:

1. 14 : x = Rs.10 : Rs. 25, (ii) 75 : 15 = y : 7,
(iii) z : 75 =7 : 17.5, (iv) 2.5 : 1.5 = x : 3,
1
(v) 7 : x =12 : 20, (vi) 2 : 1.5 = 6 : x.
2
III Answer the following:
1. Divide a sum of Rs.123.50 among a man, a woman and a boy, when the man works for 16
hours, woman for 14 hours and the boy for 10 hours, and the ratio of their hourly wages is
1 1 1 16 14
: : : : 2 = 64 ∶ 42 ∶ 24 = 32 ∶ 21 ∶ 12 = 60.80,
3 4 5 3 4
2. Divide Rs.850 among 4 girls, 5 boys, and 6 teachers in such a way that the ratio in shares of 1
girl, 1 boy and 1 teacher is 9: 8: 4.
2 5 2
3. Divide Rs.17,640 among P, Q, R and S such that Q gets th of P, R th of Q, and S th of
5 8 13
the sum of Q and R.
𝟐 5 2 𝟏 2 2 1 2 13 𝟏
P 𝑄 = 𝟓𝑷 𝑅 = 8 (5 𝑃) = 𝑷 𝑆= ( 𝑃 + 4 𝑃) = × 20 𝑃 = 𝑷
𝟒 13 5 13 𝟏𝟎
2 1 1
1 : 5 ∶ 4 ∶ 10 20 : 8 : 5 : 2 10,080 4,032 2,520 1,008
3 2 4
4. Divide Rs. 1,647 into three parts such that th of the first rd of the second and th of
7 3 8
the third are equal.
5. Divide Rs. 3,262 among X, Y and Z such that if Rs. 35, Rs.15 and Rs.12 are deducted from
their respective shares, the remainders are in the ratio of 3: 5: 8.

6. Divide Rs. 1,890 in three parts such that three times of the first, five times of the second, and
six times of the third are equal.
7. If the cost of 15 kgs of sugar is Rs.375, find the cost of 25 kgs of sugar.
8. If 8 men can build a wall in 6 days, how many days will 12 men take to complete the same
work?
2.7 Answers:
I. (i) (iv) and (v)
II. 1. (i) 30
(ii) 10.5
(iii) 30
(iv) 1/6
(v) 1 3/5
2. (i) + 3
(ii) 15
(iii) 0.35
1
(iv)
10
(v) 4x
(vi) 300a3b
1. (i) 9
(ii) 48
(iii) 54
(iv) 6 m
2. 3: 10
6. (i) 35
(ii) 35
(iii) 3
(iv) 5
(v) 12.5
(vi) 4.5

III. 1. Rs. 60.80, Rs. 39.90 Rs. 22.80
2. Rs. 306, Rs.340, Rs.204
3. Rs.10,080, Rs. 4,032 Rs. 2,520, Rs.1,008
4. Rs. 756, Rs.486, Rs. 405
5. Rs.635, Rs. 1,015, Rs.1,612
6. Rs. 900 Rs. 540, Rs. 450
7. 625
8. 4
Rule of Three:
(i) Meaning and Procedure
Under this rule, the value of any one of the four items a proportion can be easily ascertained when
the values of the other three items are given:
i) Arrange the given data in a sequential order.
ii) Denote the item to be ascertained by x and take it as the 4th term.
iii) Consider every pair of the given items as independent of the other pairs.
iv) Compare each complete pair of the items separately with the incomplete pair that contains
the 4th unknown term to estimate the expected answer.
v) If the expected answer is larger, is larger item in the concerned pair should be put at the
top, and if the expected answer is smaller, the smaller item should be taken to the top.
vi) Lastly multiply the items thus arranged and get product as the desired result
vii) Round off the final result to the practicable extent.
We can use the following equation to solve problems of more than two proportions:
1st group 2nd group

𝑴𝒂𝒏 × 𝑫𝒂𝒚𝒔 × 𝑯𝒐𝒖𝒓 × 𝑬𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒄𝒚 𝑴𝒂𝒏 × 𝑫𝒂𝒚𝒔 × 𝑯𝒐𝒖𝒓 × 𝑬𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒄𝒚
=
𝑾𝒐𝒓𝒌 𝒅𝒐𝒏𝒆 𝑾𝒐𝒓𝒌 𝒅𝒐𝒏𝒆
(or)
𝑴𝟏 × 𝑫𝟏 × 𝑯𝟏 × 𝑬𝟏 𝑴𝟐 × 𝑫𝟐 × 𝑯𝟐 × 𝑬𝟐
=
𝑾𝑫𝟏 𝑾𝑫𝟐
The following Examples will show the operation of the rule of three in relation to the proportional
problems:
Example1. 15 men work 8 hours a day to complete a piece of work in 25 days. How many days
will be taken by 12 men for doing a similar assignment working 10 hours a day?

Solution:
Men Hour Days

15 8 25
12 10 x
Following the working rule,
𝑀1 × 𝐷1 × 𝐻1 𝑀2 × 𝐷2 × 𝐻2
=
𝑊𝐷1 𝑊𝐷2
15 × 8 × 25 = 12 × 10 × 𝑥
15×8×25
x = = 25
12×10
Hence, 25 days will be taken by 12 men to complete the assignment working 10 hours a day.
Arranging the data in the sequential order we have,

15 men working 8 hours a day to do 1 work take 25 days
12 men working 10 hours a day to do 1 work take x-days
Comparing each complete pair of data with the incomplete pair we get
More Men less days i.e., inversely proportional
More hours less days i.e., inversely proportional
Men 12: 15
:: 25: x
Hours 10: 08
15 8
 x = 25 x 12
x 10
= 25
Example2. A typist with a speed of 38 words a minute undertakes to copy a manuscript of 500
pages in 45 days. At the end of 20 days, he finds that working 4 hours a day he has been able to
finish only 150 pages. He calls in a friend with a speed of 60 words a minute to finish the work
in time. How hard should they both work together so that they finish the work within time?
Solution
From the second line of the problem, it is observed that the typist working 4 hours a day at a speed
of 38 words typed 150 pages in 20 days. From the third line it is understood that the typists have
to type the remaining 350 pages in the remaining 25 days at a combined speed of 98 words a
minute working for some hours a day. We have to find for how many hours they should work in
a day to finish the whole work in time.

Days Hour Efficiency Work done
20 4 38 150 pages
25 x 98 350 pages
Following the rule,
𝐷1 × 𝐻1 × 𝐸1 𝐷2 × 𝐻2 × 𝐸2
=
𝑊𝐷1 𝑊𝐷2
20 × 4 × 38 25 × 𝑥 × 98
=
150 350
4×20×38×350
x = = 2.895 Hours
150×25×98
Both of them have to work nearly 3 hours a day to finish the remaining work in the stipulated
time.
Aliter:
From the second line of the problem it is observed that the typist working 4 hours a day at a speed
of 38 words typed 150 pages in 20 days. From the third line it is understood that the typists have
to type the remaining 350 pages within the remaining 25 days at a speed of 98 words a minute
working for some hours a day.
Now, arranging the data in the sequential order we have ,
150 pages are typed in 20 days of 4 hours at a speed of 38 words
350 pages are typed in 25 days of x hours at a speed of 98 words
Comparing each pair of the completed data with the incomplete

Pair we have,
More pages More hours i.e Directly Proportional
More days less hours i.e Inversely Proportional
@ More words less hours i.e Inversely Proportional
Pages 150 : 350

Days 25: 20 ::4: x
Words 98: 38
350 2 0 3 8
 x = 4   = 3 hours
15 0 2 5 9 8
Hence, both the typists are to work 3 hours a day.

Example3. If 30 men working 8 hours a day can do a piece of work in 24 days. In how many
days 18 men working 10 hours a day will finish double the work?
Solution
Men Hour Days Work done

30 8 24 1
18 10 x 2
Following the rule,
𝑀1 × 𝐷1 × 𝐻1 𝑀2 × 𝐷2 × 𝐻2
=
𝑊𝐷1 𝑊𝐷2
30 × 8 × 24 18 × 10 × 𝑥
=
1 2
30×8×24×2
x = = 64 days
18×10
Therefore 18 men working 10 hours a day will finish double the work in 64 days.
According to the rule of three, arranging the data in the sequential order we have.
30 men working 8 hours a day do 1 work in 24 days
18 men working 10 hours a day do 2 work in x days
Comparing each pair of the completed data we have,
more men less days, which is inversely proportional
more hour more days , which is inversely proportional
more work more days, which is directly proportional
Hence, we can write the compound proportion as under:
Men 18 : 30
hours 10 : 08 : : 24 : x
Work 1:2
30 8 2
 x = 24    Hence, the required number of days = 64
18 10 1
Example4. 20 cows take 27 days to graze a field of 90 square meters area. For how many days a
field of 56 square meters will be sufficient for 16 cows?
Solution
Cows Days Work done

20 27 90
16 x 56
Following the rule,

𝑀1 × 𝐷1 𝑀2 × 𝐷2
=
𝑊𝐷1 𝑊𝐷2
20 × 27 16 × 𝑥
=
90 56
20×27×56
x = = 21 Days
90×16
Therefore, 16 cows require 21 days to graze the field of 56 square meters.
Aliter:
20 cows take 27 days to graze 90 square meters.
16 cows take x days to graze 56 square meters.
More Cow less days i.e inversely proportional
More square meters more days i.e. directly proportional
Hence, we write the compound proportion as under:
Cow 16: 20
:: 27: x
Square meter 90: 56
20 56
𝑥 = 27 × × = 21 𝑑𝑎𝑦𝑠
16 90
Example5. A contractor undertakes to dig a canal 12 kms long in 350 days and employs 45 men
1
for the same. After 200 days of working, he finds that only 4 2 kms of canal has been completed.
How many extra men must be employed to finish the work in time?
Solution
45 men dig a canal 4½ kms long in 200 days

X men dig a canal 7½ kms long in 150 days
Men Days Work done

45 200 4½
x 150 7½
Following the rule,
𝑀1 × 𝐷1 𝑀2 × 𝐷2
=
𝑊𝐷1 𝑊𝐷2

45 × 200 𝑥 × 150
=
9⁄2 15⁄2
45×200×15
x = = 100 Men
150×9
The remaining work will be completed by 100 men in 150 days.

Therefore, 100 – 45 = 55 men are required.

More days less men required i.e inversely proportional
More kms More men required i.e. directly proportional
Hence, we can write the compound proportion as.
Days 150 : 200

1 1
Kms 4 :7 : 45: x
2 2
1
7
200
 x = 4 5x x 2
15 0 1
4
2
2 0 0 15 2
= 4 5x x x = 10 0
15 0 2 9
Hence, 100 men can do the remaining work in the remaining days. The extra men to be employed
= 100 - 45 = 55
2.5 Summary:
• Ratio is the comparison of two numbers. The ratio of two quantities ‘a’ & ‘b’ may be
denoted in each of the following ways a : b or a/b.
Types of ratio:
1. Duplicate ratio: If a : b is given ratio its duplicate ratio a2 : b2.
2. Sub – duplicate ratio: If a : b is given ratio its sub – duplicate ratio is a : b
3. Triplicate ratio: If a : b is given ratio its triplicate ratio is a3 : b3.
4. Sub – triplicate ratio: If a : b is given ratio its sub – triplicate ratio is 3 a : 3 b
• Proportion: If we express the fact that one ratio is equal to another ratio, we form a
proportion. i.e. a : b = c : d. In a proportion the first and last terms (outside terms) are
called extremes, and the second and third terms are called means.
Types of Proportion:
(a) Direct Proportion.
(b) Inverse Proportion.
(c) Continued Proportion.
3.6 Questions
1. Two workers are engaged in a work for which they are to receive Rs.28. One works for 3
days of 9 hours each, and the other for 3 days of 8 hours each, but the second one does as
much work in 2 hours as the first in 3 hours. How could the amount be divided between the
two workers?
Worker Hour Days Efficiency Work done Ratio of work

First 9 3 1 = 9×3×1 = 27
3 3 27 : 36 = 3 : 4
Second 8 3 8 × 3 × 2 = 36
2
Therefore Rs.28 is to be divided in the ratio of 3 : 4

3
Amount earned by first worker = 28 ×7 = 12
4
Amount earned by second worker = 28 ×7 = 16
2. A contractor engaged 150 labourers to raise an embankment 27 miles long in 90 weeks. The
men are to work 8 hours a day for 6 days a week. At the end of 60 weeks, it was found that
18 miles of the work had been finished. How should the gang be reduced, if at all, to finish
the work in time, if the men put in 9 hours a work a day, all days of week?
Solution:
Men Hour Days Weeks Work done
150 8 6 60 18
x 9 7 30 9
Following the rule,
𝑀1 × 𝐷1 × 𝐻1 × 𝑊1 𝑀2 × 𝐷2 × 𝐻2 × 𝑊2
=
𝑊𝐷1 𝑊𝐷2
150 × 8 × 6 × 60 𝑥 × 9 × 7 × 30
=
18 9
150×8×6×60×9
x = = 114.29 Men
9×7×30×18

Approximately 115 men are required to finish the remaining work in time.
Therefore, 150 – 115 = 35 men are to be reduced from gang.
3. Pasturage is completely exhausted in 40 days by 60 heads of cattle, or in 50 days by 50 heads

of cattle. Assuming that all the time there is a uniform growth of grass, find how many days
the pasturage should support 30 heads of exactly similar cattle.
In 40 days, the pasture provides 2400 feeds and in 50 days 2500 feeds.
Thus 10 days growth on the pasture allows for 100 extra feeds or, alternatively, enough grass
grows every day to feed ten cows.
Consequently, the quantity of grass on the pasture before the cows start grazing is enough
for (2400 – 40×10) or (2500 – 50×10), i.e., 2000 feeds.
We have already seen that the daily growth is adequate to feed 10 cows endlessly.
So, out of 30 cows the remaining 20 would maze 2000 feeds and it takes 100 days to consume
the 2000 feeds that already exist on the pasture.
Hence, the pasture would last 100 days if 30 cows were to graze on it.
4. If 75 men can do a piece of work in 12 days of 10 hours each, how many men will perform
a piece of work twice as great in a tenth part of the time, if they work the same number of
hours a day, supposing that two of the second set can do as much work in an hour as three
of the first set?
Men Hour Days Efficiency Work done

75 10 12 1 1
x 10 1.2 3/2 2
Following the rule,
𝑀1 × 𝐷1 × 𝐻1 × 𝐸1 𝑀2 × 𝐷2 × 𝐻2 × 𝐸2
=
𝑊𝐷1 𝑊𝐷2
75 × 10 × 12 × 1 𝑥 × 10 × 1.2 × 1.5
=
1 2
75×10×12×1×2
x = = 1000 Men
10×1.2×1.5
1000 men are required to perform the required work.

5. X can do a piece of work in 11½ days which Y can do in 7¾ days. If X’s wages are Rs. 4.57
per week and Y’s wages are Rs.6.69 per week, what should X have charged for which Y was
given Rs.35.50?
Solution:
Days Efficiency Work done

X = 11.5 1 x
Y = 7.75 1.484 35.5
Following the rule,
𝐷1 × 𝐸1 𝐷2 × 𝐸2
=
𝑊𝐷1 𝑊𝐷2
11.5 × 1 7.75 × 1.484

=
𝑥 35.5
11.5 ×35.5
x = = 35.50
7.75×1.484
X should have charged Rs.35.50.
6. 2 men and 5 boys can do half a piece of work in 5 days, and 3 men and 4 boys can do 1/3 of
it in 3 days. How many days will 9 men take to do it all?
Men Boys Days Work done

2 5 5 1
2
3 4 3 1
3
9 --- ? 1
1
2 men and 5 boy’s one day work = 2𝑥 + 5𝑦 = 10
→ 𝟐𝟎𝒙 + 𝟓𝟎𝒚 = 𝟏 … (1)
1
3 men and 4 boy’s one day work = 3𝑥 + 4𝑦 = 9
→ 𝟐𝟕𝒙 + 𝟑𝟔𝒚 = 𝟏 … (2)
Solving (1) and (2) we get the solution for the problem.
(1) × 27 → 540𝑥 + 1350𝑦 = 27 … (3)
(2) × 20 → 540𝑥 + 720𝑦 = 20 … (4)

7 1
(3) – (4) → 630 y = 7 → y = 630 = 90
Substituting in (1),
1
20𝑥 + 50 × 90 = 1
1
20𝑥 = 1 − 50 × 90
5
20𝑥 = 1 − 9
4
20𝑥 = 9
4 1
𝑥= =
9×20 9×5
1
𝑥= 45
1
This implies one man will do the work in 45 days, or man’s 1 day work = 45.
45
Therefore, 9 men will do the work in 5 days. ( 9 )
Aliter:
Condition 1:- 2 men and 5 boys can do half a piece of work in 5 days.
Therefore, full work will be done in 10 days
condition 2:- 3 men and 4 boys can do 1/3 of the same work in 3 days
Therefore, full work will be done in 9 days
condition 3:- we have to find what is time taken by 9 men
We will represent boy with b and men with m

From condition 1, total work done in 10 days is 10( 2m + 5b ) … (1)
From condition 2, total work done in 9 days is 9( 3m + 4b ) … (2)
From condition 2, total work done in x days is x (9m) … (2)
Same work has been done in the above two cases, but manpower are different
we can rewrite (1) and (2) as
10( 2m + 5b ) = 9 (3m + 4b)
20m + 50b = 27m + 36b
7m = 14b
m = 2𝑏
Now, equating (1) and (3),
10 ( 2m + 5b ) = x (9m)
10 (2 × 2 𝑏 + 5𝑏) = 9 × 2 𝑏𝑥
90𝑏 = 18 𝑏𝑥
90
𝑥 = =5
18
Therefore, 9 men will take 5 days to complete the work.
7. A piece of work can be done by 10 men or 25 women or 80 boys in 100 days. In how many
days will the work be done under similar conditions by 25 men and 10 boys and 80 women?
If a boy is paid Rupee 0.5 per day as wages, what will be the total wages for the entire work
when completed?
Given that 10 men = 25 women = 80 boys
25 men 25 men
10 boys → ? men
80 boys = 10 men
1 boy = 10/80 = 0.125 man
10 boys = 0.125 × 10 = 1.25 men 1.25 men
10 men = 25 women
80
Multiply 25 on both sides,
80 80
10 × 𝑚𝑒𝑛 = 25 × 𝑤𝑜𝑚𝑒𝑛
25 25
80
10 × 𝑚𝑒𝑛 = 80 𝑤𝑜𝑚𝑒𝑛
25
32 𝑚𝑒𝑛 = 80 𝑤𝑜𝑚𝑒𝑛 32 men
32 men = 80 women
Therefore, 25 men and 10 boys and 80 women are equivalent to

(25+1.25+32) = 58.25 men

This gives 25 men and 10 boys and 80 women = 25 + 1.25 + 32 = 58.25 men
Men Days
10 100
58.25 x
This is indirect proportion problem, i.e., more men less days.
10 × 100 = 58.25 𝑥
10×100
𝑥= = 𝟏𝟕. 𝟏𝟕 𝒅𝒂𝒚𝒔
58.25
Therefore, the work will be done by 25 men and 10 boys and 80 women in 17.17 days.
10 boys 10 boys
25 men → ? boys
80 boys = 10 men
25
Multiply 10 on both sides,
25 25
80 × 𝑏𝑜𝑦𝑠 = 10 × 𝑚𝑒𝑛
10 10
25
80 × 𝑚𝑒𝑛 = 25 𝑚𝑒𝑛
10
200 𝑏𝑜𝑦𝑠 = 25 𝑚𝑒𝑛 200 boys
80 boys = 25 women
80
Multiply on both sides,
25
80 80
80 × 𝑏𝑜𝑦𝑠 = 25 × 𝑤𝑜𝑚𝑒𝑛
25 25
80
80 × 𝑏𝑜𝑦𝑠 = 80 𝑤𝑜𝑚𝑒𝑛
25
256 𝑏𝑜𝑦𝑠 = 80 𝑤𝑜𝑚𝑒𝑛 256 boys

Therefore, 25 men and 10 boys and 80 women are equivalent to
(10+200+256) = 466 boys
Boys Days
80 100
466 x
This is indirect proportion problem, i.e., more men less days.
80 × 100 = 466 𝑥
80×100
𝑥= = 𝟏𝟕. 𝟏𝟕 𝒅𝒂𝒚𝒔
466
(ii) 80 boys’ one day wage @ Rs.0.5 is Rs.40.

Therefore, total wage for 80 boys for 100 days @ Rs.0.5/day is Rs.4000.
(or 80 boys × 0.5 per day × 100 days = 4000 )
8. In a besieged town there is sufficient foodstuff for a garrison of 10,000 soldiers to last for 4
weeks at the rate of 9½ oz per diet per head. At the end of a week, it was decided to reduce
the diet allowance so that the remaining stock may last for 6 weeks. If, in the meanwhile, the
number of soldiers had been reduced to 9500, what should be the estimated daily allowance
per head?
Total food available = 10000 men × 4 weeks × 9.5 oz. = 3,80,000 oz.
Consumption of food for one week = 10000 men × 1 week × 9.5 oz. = 95,000 oz.
Remaining food = 3,80,000 – 95,000 = 2,85,000 oz.
Men Weeks Efficiency Work done

10000 1 9.5 95,000
9500 6 x 2,85,000
Following the rule,
𝑀1 × 𝑊1 × 𝐸1 𝑀2 × 𝑊2 × 𝐸2
=
𝑊𝐷1 𝑊𝐷2
10000 × 1 × 9.5 9500 × 6 × 𝑥

=
95000 285000
10000×1×9.5×28500
x = = 5
95000×9500×6

Therefore, the estimated daily allowance is 5 oz.
9. A besieged town has provision to last for 3 weeks, if the population is 22400. How many
people must be sent away, in order that the provision may last for 7 weeks?
This is indirect proportion problem (more persons, less food days.
Persons Weeks
22,400 3
x 7
7𝑥 = 22400 × 3
22400 × 3
𝑥= = 9,600 𝑝𝑒𝑟𝑠𝑜𝑛𝑠
7
The food will be sufficient for only 9600 persons.

Therefore, (22400 – 9600 ) = 12800 persons should be sent away.
10. A contractor undertook to do a work in 132 days and employed 168 men for the same but,
after 36 days he found that only a quarter of the work had been accomplished. How many
more men should he employ to finish the work in time?
Men Days Work done

168 36 1/4
x 96 3/4
Following the rule,
𝑀1 × 𝐷1 × 𝐻1 × 𝑊1 𝑀2 × 𝐷2 × 𝐻2 × 𝑊2
=
𝑊𝐷1 𝑊𝐷2
168 × 36 𝑥 × 96
=
1⁄4 3⁄4
168×36×3
x = = 189
96
The remaining work will be completed by 189 men.

Therefore, (189 – 168) = 21 extra men are to be employed.

11. If 18 tonnes of coal are carried 400 kms by rail for Rs.7.50, how much will it cost to send
280 tonnes to a distance of 576 kms by ship whose charges are 3/10 of the charges of rail?
Tonnes KMs Efficiency Work done

18 400 1 7.5
280 576 3/10 x
𝑀1 × 𝐷1 × 𝐻1 × 𝑊1 𝑀2 × 𝐷2 × 𝐻2 × 𝑊2
=
𝑊𝐷1 𝑊𝐷2
18 × 400 × 1 280 × 0.3 × 576

=
7.5 𝑥
280 ×0.3 ×576×7.5
x = = 50.4
18×400×1
12. The cost of digging a pit was Rs.1,347. How much will it cost, if the wages of workmen per
day had been increased by 1/8 of the former wages and the length of working day increased
by 1/20 of the former period.
Day Efficiency Work done

1 1 1347
21/20 9/8 x
𝑀1 × 𝐷1 × 𝐻1 × 𝑊1 𝑀2 × 𝐷2 × 𝐻2 × 𝑊2
=
𝑊𝐷1 𝑊𝐷2
1×1 21 9
= 20 × 8
1347 𝑥
21 9
× ×1347
x = 20 8
= 1591.14
1×1
3.7 Answers for Terminal Questions:

1. Rs. 12, Rs 16
2. 35 men
3. 100 days
4. 1,000 men
5. Rs 35 : 75

6. 5 days
7. 17 days, Rs. 4,000
8. 5
9. 12800
10. 21 men
11. Rs. 50.40
12. Rs 1591.14

Module – 3
Commercial Arithmetic
3.1 Simple Interest:
If the interest on a given principal at a given rate of interest is the same for every year, then this
principal is said to be lent at simple interest at the said rate.
Formulae used in Calculating Simple Interest
1. Amount = Principal + Simple Interest S I = Simple Interest
2. Simple Interest = Amount – Principal P = Principal Amount

3. Principal = Amount – Simple Interest r = Interest Rate
4. SI = P n r n = Time in years
𝑆𝐼
5. 𝑃 = A = Future value (Maturity amount)
𝑛𝑟
6. A = P (1 + n r )
𝑆𝐼
7. 𝑟 = 𝑃𝑛
3.2 Commercial Application of Simple Interest:
Example 1:
Find the simple interest on Rs.2,276 for 2 years and 6 months at 12.5% p.a.
Solution:
Given, P = 2,276; r = 12.5% (or) 0.125 n = 2 years 6 months = 2.5 years
SI = P n r
SI = 2276 × 2.5 × 0.125
SI = Rs.711.25
FV = P(1+nr) = 2276 * (1+2.5*0.125) = Rs.2,987.25
Example 2:
A sum of money amounts to Rs.855 in 3½ years at the rate of 4% p.a. simple interest. Find the
sum.
Solution:
Given A = 855, r = 0.04, n = 3.5 years; To find P.
We know that A = P (1 + n r)
855 = P (1 + 3.5 × 0.04)

855
𝑃= (1+3.5×0.04)
855
𝑃= (1+0.04)
855
𝑃= = 𝑅𝑠. 𝟕𝟓𝟎
1.04
Example 3:
A person deposited Rs.6200 on June 20th 2007. It amounted to Rs.6250 on September 1st 2007 at
the rate of simple interest. Find the rate of interest.
Solution:
Here, P = 6200, A = 6250
 S I = 6250 − 6200 = 50
n = Jun+Jul+Aug+Sep
1
= 10+31+31+1 = 73 days = 5 years (or) 0.2
P n r = 50
6200 × 0.2 × r = 50
50
𝑟= = 0.0403
6200 × 0.2
r = 4.03%
Example 4:
In what time will a sum of Rs.2000 amounts to Rs.2240 at the rate of 4% p.a. simple interest?
Solution:
Here, P = 2000, A = 2240 ; r = 0.04. To find n.
 S I = 2240 − 2000 = 240
P n r = 240
2000 × n × 0.04 = 240

240
𝑛= =3
2000 × 0.04
n = 3 years

Example 5:
A father left a will of Rs.35 lakhs between his two daughters aged 8.5 and 16 years such that they
may get equal amounts when each of them reach the age of 21 years. The original amount of Rs.35
lakhs has been instructed to be invested at 10% p.a. simple interest. How much did the elder
daughter get at the time of the will?
SOLUTION:
Let Rs. x be the amount that the elder daughter got at the time of the will. A = P (1 + n
Therefore, the younger daughter got Rs.(35– x). r)
The elder daughter’s money earns interest for (21 - 16) = 5 years @ 10% p.a. simple interest.
The younger daughter’s money earns interest for (21 - 8.5) = 12.5 years @ 10% p.a. simple interest.
Principle
Daughter Years Interest Maturity amount (Rs.)
Amount (Rs.)
x (1 + 5 × 0.1)
= x (1 + 0.5)
Elder x 21 – 16 =5 10%
= x + 0.5 x
= 1.5 x
(35− x) (1+12.5 × 0.1)
= (35− x) (2.25)
Younger 35 − x 21 – 8.5 = 12.5 10%
= 35×2.25 – 2.25x
= 78.75 – 2.25 x
Condition Maturity amount of elder daughter and younger daughter are same
x + 0.5x = 78.75 – 2.25x
1.5x = 78,75,000 – 2.25x
1.5x + 2.25x = 78.75
3.75x = 78.75
𝟕𝟖. 𝟕𝟓
𝒙=
𝟑. 𝟕𝟓
x = 21 → Rs. 21 lakhs
As the sum of money that each of the daughters get when they are 21 is the same,
x + x  5  0.1= (3500000 − x) + (3500000 − x) 12.5  0.1 A = P (1 +

nr)
x + 0.5x = 3500000 − x + 4375000 − 1.25x
A = P + SI
x + 0.5x = 7875000 − 2.25x A = P + Pnr
A = P (1+nr)
x + 0.5x + 2.25x = 7875000
3.75x = 7875000
7875000
x=
3.75
x = 2100000
Therefore, the elder daughter gets Rs.21,00,000 and

the younger daughter gets Rs.14,00,000 at the time of will.
Example6:
A man left Rs.1,30,000 for two sons aged 10 years and 16 years with the direction that the sum
should be divided in such a way that the two sons get the same amount when they attain the age
of 18 years. Assuming the rate of simple interest is 12 % p.a. Calculate how much the elder son
got in the beginning.
Let Rs. x be the amount that the elder son got at the time of the agreement.
Therefore, the younger son got Rs.(1,30,000 – x).
The elder son’s money earns interest for (18 – 16) = 2 years @ 12% p.a. simple interest.
The younger son’s money earns interest for (18 – 10) = 8 years @ 12% p.a. simple interest.
Principle
Son Years Interest Maturity amount (Rs.)
Amount (Rs.)
x (1 + 2 × 0.12)
Elder x 18 – 16 = 2 12%
1.24 x
(1,30,000 − x) (1 + 8×0.12)
Younger 1,30,000 − x 18 – 10 = 8 12%
2,54,800 – 1.96 x
As the sum of money that each of the sons get when they are 18 is the same,
1.24 x = 2,54,800 – 1.96 x
1.24 x + 1.96 x = 2,54,800

3.2 x = 2,54,800
254800
𝑥= 3.2
𝑥 = 𝑅𝑠. 79,625
Therefore, the elder son gets Rs.79,625 and

the younger son gets Rs.50,375 at the time of agreement.
Example7:
Ram lent Rs.6,000/- to Shiva for 3 years and Rs.8,000/- to Krishna for 5 years at the same rate of
simple interest per annum. He got a total interest of Rs.5,220 from both. Find the rate of interest
per annum.
Solution:
SI = P n r
Given that
Interest from Shiva = 6000 × 3 × r
Interest from Krishna = 8000 × 5 × r
The total interest received from the both the persons = 6000 × 3 × r + 8000 × 5 × r = 5220
18000 r + 40000 r = 5220
58000 r = 5220
5220
r=
58000
r = 0.09
Therefore, the rate of interest is 9% per annum.
Example8:
A person borrowed Rs.6,400. After 2 years and 3 months he paid Rs.6,136 in cash with a horse
and cleared the amount. If the rate of interest was 3½ % p.a., find the value of the horse.
Solution:
Given P = 6400; n = 2.25; r = 0.035 A = P(1+nr)

A = 6400 (1+2.25×0.035) = 6904 A = P + SI
The amount with interest after 2¼ years is Rs.6904

The amount paid back in cash is Rs.6136
Difference … (6904 – 6136) = 768
Therefore, the value of the horse is Rs.768.
Example9:
A sum of money lent out at S.I. amounts to Rs.3,224 in 2 years and Rs.4,160 in 5 years. Find the
sum and the rate of interest.
Solution:
3224 = P(1+2r) … (1)

A = P(1+nr)
4160 = P(1+5r) … (2)
Dividing equation (2) by equation (1), we get
4160 𝑃(1+5𝑟)
(2) / (1) = =
3224 𝑃(1+2𝑟)
1+5𝑟
→ 1.2903 = 1+2𝑟
→ 1.2903(1 + 2𝑟) = 1 + 5𝑟
→ 1.2903 + 2.5806 𝑟 = 1 + 5𝑟
→ 1.2903 − 1 = 5𝑟 − 2.5806 𝑟
→ 0.2903 = 2.4194 𝑟
0.2903
→ 𝑟 = 2.4194 = 𝟎. 𝟏𝟏𝟗𝟗𝟗 (𝑜𝑟) 𝟏𝟐% (𝑟𝑜𝑢𝑛𝑑𝑒𝑑 𝑜𝑓𝑓)
Substituting the value of r = 0.12 in equation (1), we get
3224 = P (1 + 2 × 0.12)
3224 = P (1.24)
3224
→𝑃= = 𝑹𝒔. 𝟐𝟔𝟎𝟎
1.24

Example10:
A man lent Rs.8000 for 3 years and Rs.6300 for 5 years to two persons at the same rate of interest.
He received Rs.415 more as interest from the one than what he received as interest from the other.
What is the rate of interest per annum?
Solution:
SI = P n r
Interest from the first person = Pnr = 8000×3×r = 24000r
Interest from the second person = Pnr = 6300×5×r = 31500r
Given that the difference in interest is Rs.415.

→ |8000 × 3 × 𝑟 − 6300 × 5 × 𝑟| = 415
→ |24000 𝑟 − 31500 𝑟| = 415
→ |−7500 𝑟| = 415
→ 7500 𝑟 = 415
415
→ 𝑟 = 7500 = 𝟎. 𝟎𝟓𝟓 (𝑜𝑟) 𝟓. 𝟓%
Example11:
A sum of money becomes double in 20 years at simple interest, in how many years will it triple?
2P = P (1 + 20 r) A = P(1+nr)
2 = 1 + 20r
2 – 1 = 20r
1 = 20 r
r = 0.05 (or) 5%
3P = P (1+n×0.05)
2 = 0.05n
n = 40
The amount will become triple in 40 years.
1. Find the interest on Rs.7434 for 8.75 years at the 2.5% interest per annum.
2. In what time a sum of Rs.9000 will amount to Rs.10575 at 5% per annum.

3. If the interest on certain principal in 8 years at 3.5% interest per annum is Rs.77, what is
the principal?
4. A sum of money becomes double in 20 years at simple interest, in how many years will it
triple?
5. A certain sum of money at simple interest amounts to Rs.5600 in 3 years and to Rs.6000
in 5 years. Find the principal and rate of interest.
6. A sum of money amounts to Rs.855 in 3.5 years at 4% simple interest per annum. Find the
sum.
7. A man lent Rs.8000 for 3 years and Rs.6300 for 5 years to two persons at the same rate of
interest. He received Rs.415 more as interest from the one than what he received as interest
from the other. What is the rate of interest per annum?
8. A depositor placed a sum of Rs. 50000 into his savings A/c with a bank on12th March 2004
and withdraw the entire balance in his A/c on 29th June 2004. The bank rules permit simple
interest at 3.75% p.a. How much did he withdraw from his account?
9. Find the period in which Rs.5500 will amount to Rs. 6050 at 4% p.a.
10. An investment became Rs.43520 at the end of the 3rd year and Rs.51200 at the end of the
5th year. Find the investment and the rate of simple interest.
43520 = P(1+3r)
51200 = P(1+5r)
11. Find the simple interest on Rs. 300 at 8% p.a. for 14 weeks.
12. M borrowed Rs.12,650 from a moneylender at 18% p.a. simple interest. After 3 years, he
paid Rs.10,381 and gave a buffalo to clear off the debt. What is the cost of the buffalo?
13. A person borrowed Rs.6,400. After 2 years and 3 months he paid Rs.6136 in cash with a
horse and cleared the amount. If the rate of interest was 3½ % p.a. Find the value of the
horse.
14. If simple interest is Rs. 360 for 2 years @ 6% p.a. Find the sum.
15. At what rate of simple interest will Rs. 800 amount to Rs. 836 in 9 months?
16. A sum of money lent out at S.I. amounts to Rs. 3,224 in 2 years and Rs. 4,160 in 5 years.
Find the sum and the rate of interest.
3224 = P(1+2r)
4160 = P(1+5r)
17. In what time will Rs. 800 amount to Rs. 896 at 6% P.A. simple interest?
18. A man left Rs. 1,30,000 for two sons aged 10 years and 16 years with the direction that the
sum should be divided in such a way that the two sons get the same amount when they
attain the age of 18 years. Assuming the rate of simple interest is 12 ½ % p.a. Calculate
how much the elder son got in the beginning.
Answers for the Terminal Questions:

1. 1626.19
2. 3.5 years
3. Rs.275
4. 40
5. Rs.5000 & 4%
6. Rs.750
7. 5.5
8. Rs. 50558.4
9. 2.5 years
10. Rs. 32000, 12%
3.4 Compound Interest
Definition of Interest
Interest is the compensation received by the lender of money from the borrower, calculated at a
specified rate of percent and for a specified time, on the sum of money lent by the lender to the
borrower.
Calculation of Compound Interest

We will be using the following symbols in the ensuing text and problems on Simple and Compound
interest.
P= Principal (or, the present value of the money lent)

n= Number of periods for which the money is lent
r= Rate of interest percent per annum, expressed as a decimal
I= Rupees of interest earned for the interest period
F= Amount to be received (Future value) at the end of ‘n’ periods.
Important Formulae in Compound Interest

(a) To find the amount due after ‘n’ years, where ‘n’ is a positive number.
𝐹 = 𝑃(1 + 𝑟)𝑛
(b) To find the present value (or, the Principal) when Fn, r and ‘n’ are given
𝐹
P= (1+𝑟)𝑛
(c) To find the value of ‘r’ when F, P, and ‘n’ are given
𝑙𝑜𝑔 𝐹−𝑙𝑜𝑔 𝑃
𝑟 = 𝐴𝑛𝑡𝑖𝑙𝑜𝑔 [ ]−1
𝑛
𝐹 = 𝑃(1 + 𝑟)𝑛 log (ab) = log a + log b
Taking log on both sides, log an = n log a
log F = log P + n log(1+r)
log F – log P = n log(1+r)
log 𝐹−log 𝑃
= log(1 + 𝑟)
𝑛
log 𝐹−log 𝑃
𝐴𝑛𝑡𝑖𝑙𝑜𝑔 ( 𝑛
)=1+𝑟

log 𝐹−log 𝑃
𝑟 = 𝐴𝑛𝑡𝑖𝑙𝑜𝑔 ( )−1
𝑛
(d) To find the value of ‘n’ when F, P, and ‘r’ are given
𝑙𝑜𝑔 𝐹−𝑙𝑜𝑔 𝑃
𝑛=[ ]
𝑙𝑜𝑔(1+ 𝑟)
Example 1:
Calculate the amount and compound interest on Rs.100 for 15 years, allowing compound interest
at the rate of 12% per annum.
Solution :
Given P = Rs.100 𝐹 = 𝑃(1 + 𝑟)𝑛
n = 15 years
r = 12% = 12/100 = 0.12
Required to find (i) F and (ii) Interest

(i) 𝐹 = 𝑃(1 + 𝑟)𝑛
→ 𝐹 = 100(1 + 0.12)15
→ 𝐹 = 100 (1.12)15
→ 𝑭 = 𝟓𝟒𝟕. 𝟑𝟓
(ii) I = F−P
= Rs.547.35 – Rs.100.00
= Rs.447.35
Example 2: CalcES
Given F = Rs.800; P = Rs.500; n = 3 years. Find r.
Required to find ‘r’. F = P(1+r)n

log 𝐹−log 𝑃
𝑟 = 𝐴𝑛𝑡𝑖𝑙𝑜𝑔 ( )−1 800 = 500 (1+r)3
𝑛
1
log 800−log 500 800 3
𝑟 = 𝐴𝑛𝑡𝑖𝑙𝑜𝑔 ( )−1 (500) =1+𝑟
3
1
2.9031−2.6990 800 3
𝑟 = 𝐴𝑛𝑡𝑖𝑙𝑜𝑔 ( )−1 (500) −1=𝑟
3
𝑟 = 𝐴𝑛𝑡𝑖𝑙𝑜𝑔(0.068) − 1 r = 0.1696
𝑟 = 1.1695 − 1

𝑟 = 𝟎. 𝟏𝟔𝟗𝟓 (𝑜𝑟) 𝟏𝟔. 𝟗𝟓%
Example 3:
In how many years will Rs.500 amount to Rs.881.17 at 12% per annum compound interest?
Solution:
Given F = Rs. 881.17; P = Rs. 500; r = 12% = 0.12

Required to find 'n'
log 𝐹− log 𝑃
𝑛= F = P (1+r)n
log (1+𝑟)
log 881.17− log 500

𝑛= 881.17 = 500 (1+0.12)n
log (1+0.12)
log 881.17−log 500 881.17

𝑛= = (1.12)𝑛
log (1.12) 500
2.945−2.699
𝑛= log(1.762) = 𝑛 𝑙𝑜𝑔 (1.12)
0.0492
𝑛 = 𝟓 𝒚𝒆𝒂𝒓𝒔 𝑛 = 𝟓 𝒚𝒆𝒂𝒓𝒔
Example 4.
Find the difference between compound and simple interest on Rs.5000 invested for 4 years at 8%
per annum.
Solution:
Given P = Rs.5000; n = 4 years; r = 8% = 0.08
Required CI – SI =?
Using the formula, the differential interest ‘I’ can be calculated as follows:
CI = P(1+r)n – P CI = 5000 (1+0.08)4 – 5000 = 6802.44 – 5000 = 1802.44
CI = P { (1+r)n – 1 } SI = P n r = 5000 × 4× 0.08 = 1600
SI = P n r CI – SI = 1802.44 – 1600 = Rs.202.44
CI – SI = P { (1+r)n – 1 } – P n r
CI – SI = P { (1+r)n – 1 – n r }
CI – SI = P { (1+r)n – (1 + n r) }
I = P [ (1 + r ) n − (1 + rn) ]
Simple Interest = P n r = 5000×4×0.08 = 1600
= 5000[ (1.0 8) 4 − (1 + 0.0 8  4) ]
I = 5000 (1.3605 – 1.32) Compound Interest = P(1+r)n – P

I = 5000 (0.0405) = 5000(1.08)4 – 5000 = 1802.44
= Rs. 202.50
Difference in Interest = 1802.44 – 1600 = Rs.202.44
Example 5.
What will Rs.1500 amount to in three years if it is invested in 20% p.a. interest, interest being
compounded annually?
Solution:
Given P = 1500; n = 3 ; r = 0.2 F = P(1+r)n
F = 1500(1+0.2)3
F = 2592
Therefore, the amount will become Rs.2592 after 3 years.
Example 6.
Simple interest on a certain sum of money for 3 years at 5% per annum is Rs.5250. What will be
the compound interest on that sum at the same rate for the same period?
Solution:
Given simple interest Pnr = 5250 ; n = 3 years; r = 0.05
Therefore, P×3×0.05 = 5250
P = 5250 / (3×0.05) = 35000
Compound interest on Rs.35000 for 3 years at 5% rate of interest is, F = P(1+r)n
CI = 35000 × (1+0.05)3 – 35000
CI = Rs.5516.88
The compound interest on the sum at the same rate for the same period is Rs.5516.88
Example 7.
If a sum of money grows to 144/121 times when invested for two years in a scheme where interest
is compounded annually, how long will the same sum of money take to treble if invested at the
same rate of interest in a scheme where interest is computed using simple interest method?

Solution:
Given that the money grows to 144/121 times of 2 years at compound interest.
Therefore, we can write 144 P = P(1 + r ) 2 F = P(1+r)n

121
Canceling P and taking square root on both sides, we get
12
=1+𝑟
11
12
𝑟= −1
11
𝑟 = 0.0909
Now, the same money grows 3 times at simple interest at this interest rate. Therefore,
3P = P(1+ 0.0909 n) A = P(1+nr)
Canceling P on both sides,
3 = 1+ 0.0909 n
3 – 1 = 0.0909 n
2 = 0.0909 n
2
𝑛=
0.0909
n = 22
Therefore, the amount trebles in 22 years.
Example 8.
If the interest is compounded half-yearly, then what will be the compound interest (in Rs) on a
sum of Rs.10000 for 3 years at the rate of 10% per annum? 𝑚×𝑛
𝑟
𝐴 = 𝑃 (1 + )
Solution: 𝑚
Given interest type = Compound, half-yearly; P = 10000; n = 3; r = 0.1; m = 2
0.1 2×3
Compounded amount = 10000 (1 + ) = 13,400.96
2

Compound interest = 13,400.96 – 10,000 = Rs.3,400.96
𝑅 𝑚
Effective rate interest 𝑟 = (1 + 𝑚) − 1
Given R = 0.1 and m = 2
0.1 2
Effective rate interest 𝑟 = (1 + ) − 1 = 0.1025
2
𝐴 = 𝑃(1 + 𝑟)𝑛
𝐴 = 10000(1 + 0.1025)3 = 𝟏𝟑, 𝟒𝟎𝟎. 𝟗𝟔 (𝒐𝒓) 𝑹𝒔. 𝟏𝟑, 𝟒𝟎𝟏 (𝑅𝑜𝑢𝑛𝑑𝑒𝑑 𝑜𝑓𝑓)
Therefore, compound interest = 13401 – 10000 = Rs.3401/-
Example 9.
A sum will fetch compound interest of Rs.1160.50 after 2 years at 11% p.a. What will be the
simple interest (in Rs) for the same amount at the same rate of interest for 2 years?
Solution:
A = P(1+r)n
Given CI = 1160.5, n = 2; r = 0.11
1160.5 = P(1+0.11)2 – P
1160.5 = P (1.112 − 1)
1160.5 = 0.2321 P
1160.5
𝑃=
0.2321
P = 5000
To find simple interest for the same amount at the same rate of interest for 2 years. SI = Pnr
= 5000 × 2 × 0.11
= 1100
Therefore, the simple interest is Rs.1100.

Example 10.
If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal
is Rs.28,090, and Rs.29,775.40 respectively, what is the rate of interest?
Solution: A = P(1+r)n
Given 28,090 = P(1+r)2 … (1) and
29,775.4 = P(1+r)3 … (2)
Divide (2) by (1), we get
29775.4 𝑃(1 + 𝑟)3

=
28090 𝑃(1 + 𝑟)2
1.06 = (1 + 𝑟)3−2
1.06 = 1 + 𝑟
𝑟 = 1.06 − 1
𝑟 = 𝟎. 𝟎𝟔 (𝑜𝑟) 6%
Example 11.
A bank offers 5% compound interest per half year. A customer deposits Rs.3200 each on 1st
January and 1st July of a year. At the end of the year, what is the amount he would have gained by
way of interest?
Solution:
Given r = 0.05; Interest type = Compound 𝑟 𝑚𝑛

𝐴 = 𝑃 (1 + )
𝑚
Investment on 1st January = 3200
Interest rate = 0.05
Amount after six months = P (1+nr) = 3200(1+1×0.05) = 3200 × 1.05 = 3360
After one year, Rs.3360 will become
P (1+nr) = 3360(1+1×0.05) = 3360 × 1.05 = 3528
For the investment on 1st January, the amount after one year is
𝐴 = 3200 (1 + 0.05)2 = 𝟑𝟓𝟐𝟖
For the investment on 1st July, the amount after six months is

𝐴 = 3200 (1 + 0.05) = 𝟑𝟑𝟔𝟎
Total amount invested is 3200 × 2 = 6,400.
Total amount received with interest at the end of one year is 3528+3360 = 6,888
Therefore, amount gained as interest is 6,888 – 6,400 = Rs.488.
Example 12.
A sum of Rs.4000 becomes Rs.6000 in 1 year at a certain rate of compound interest. What will be
the sum (in Rs) after 4 years?
Solution:
Given P = 4000; A = 6000; n = 1
A = P (1+r)n
4000 (1+r)1 = 6000
6000
1+𝑟 =
4000
1 + 𝑟 = 1.5
𝑟 = 1.5 − 1
𝑟 = 0.5 (𝑜𝑟) 50%
Therefore, the sum of four years is
4000 (1+0.5)4 = Rs.20,250
Example 13.
The simple and compound interest that can be earned in two years at the same rate is Rs.1,000 and
Rs.1,040 respectively. What is the rate (percent per annum) of interest?
Solution: SI = P n r
Simple interest in two years = 2Pr = 1000 … (1)
Compound interest in two years = P(1+r)2 – P = 1040 CI = P(1+r)n - P

= P(1+r2+2r) – P = 1040
CI = P { (1+r)n – 1 }
= P (1+r +2r – 1 ) = 1040
2
= P ( r2+2r) = 1040
= Pr (r+2) = 1040 … (2)
𝑃𝑟 (𝑟+2) 1040
(2) divided by (1) gives = = 1000
2𝑃𝑟
𝑟+2
= = 1.04
2
= 𝑟 + 2 = 2.08
→ 𝑟 = 0.08 (𝑜𝑟) 𝟖 %
Example 14.
Find the amount on the investment of Rs.1,50,000 for 5 years at 8% p.a. compound interest, interest
being given on quarterly basis.
𝑟 𝑚𝑛
Given P = 1,50,000; n = 5 years; Rate of interest = 8% or 0.08 𝐴 = 𝑃 (1 + )
𝑚
Number of times Interest is given in a year = 4 (=m)
𝑟 𝑚𝑛
𝐴 = 𝑃 (1 + ) 𝐴 = 𝑃 (1 + 𝑟)𝑛
𝑚
0.08 4×5
𝐴 = 150000 (1 + 4
) 𝐴 = 150000 (1 + 0.08)5
𝐴 = 150000 (1 + 0.02)20 𝐴 = 150000 (1.08)5
𝐴 = 150000 (1.02)20 𝐴 = 150000 × 1.4693
𝐴 = 150000 × 1.4859 𝐴 = 150000 × 1.4693
𝐴 = 𝑅𝑠. 𝟐, 𝟐𝟐, 𝟖𝟖𝟓 𝐴 = 𝑹𝒔. 𝟐, 𝟐𝟎, 𝟑𝟗𝟓
Annual rate of interest is 8%
If interest is given on quarterly basis, that interest is called effective rate of interest
𝑹 𝒎
Effective rate of interest = 𝒓 = (𝟏 + ) − 𝟏
𝒎
where r = effective rate of interest
R = Nominal rate of interest
m = how many times interest is given in a year
To convert nominal interest of 8% into effective rate of interest if interest is paid on quarterly
basis
𝟎. 𝟎𝟖 𝟒
Effective rate of interest = 𝒓 = (𝟏 + ) −𝟏
𝟒
Effective rate of interest = 𝒓 = 𝟏. 𝟎𝟖𝟐𝟒 − 𝟏
Effective rate of interest = 𝒓 = 𝟎. 𝟎𝟖𝟐𝟒 (𝒐𝒓) 𝟖. 𝟐𝟒%
𝐴 = 𝑃 (1 + 𝑟)𝑛
𝐴 = 150000 (1 + 0.0824)5 = 𝑅𝑠. 𝟐, 𝟐𝟐, 𝟖𝟓𝟗

(Interest = 12% p.a.)
Eff.rate = 12.6825%
Amount after one year at 12%, interest being paid annually is
𝐴 = 𝑃 (1 + 𝑟)𝑛 = 100(1 + 0.12)1 = 100 × 1.12 = 𝟏𝟏𝟐
Amount after one year at 12%, interest being paid on monthly basis is
𝑟 𝑚𝑛
𝐴 = 𝑃 (1 + )
𝑚
0.12 12×1
= 100 (1 + )
12
= 100 × (1.01)12
= 100 × 1.1268
= 112.68
Calculation of amount with effective rate of interest,

𝐴 = 𝑃 (1 + 𝑟)𝑛 = 100(1 + 0.1268)1 = 100 × 1.1268 = 𝟏𝟏𝟐. 𝟔𝟖
By applying effective rate of interest @ 12.68% p.a., we get
𝑅 𝑚
𝐸𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟 = (1 + ) −1
𝑚
where r = effective rate of interest

R = nominal rate of interest
m = number of times interest being paid
For 12% p.a. nominal rate of interest, the effective rate of interest, if interest is being paid
on monthly basis is,
0.12 12
Effective rate of interest 𝑟 = (1 + ) − 1 = 1.1268 − 1 = 𝟎. 𝟏𝟐𝟔𝟖 (𝒐𝒓) 𝟏𝟐. 𝟔𝟖%
12
Effective rate of interest for 6.9% p.a. nominal rate is
0.069 12
Effective rate of interest 𝑟 = (1 + ) − 1 = 1.0712 − 1 = 𝟎. 𝟎𝟕𝟏𝟐 (𝒐𝒓) 𝟕. 𝟏𝟐%
12
Amount after one year at effective rate of interest is
𝐴 = 𝑃 (1 + 𝑟)𝑛 = 100(1 + 0.1268)1 = 100 × 1.1268 = 𝟏𝟏𝟐. 𝟔𝟖
If interest is calculated on monthly basis, the effective rate of interest becomes 12.6825%
Interest Interest Total

Month Principal % amount amount
1 100 0.01 1.00 101.00
2 101 0.01 1.01 102.01
3 102.01 0.01 1.02 103.03
4 103.0301 0.01 1.03 104.06
5 104.0604 0.01 1.04 105.10
6 105.101 0.01 1.05 106.15
7 106.152 0.01 1.06 107.21
8 107.2135 0.01 1.07 108.29
9 108.2857 0.01 1.08 109.37
10 109.3685 0.01 1.09 110.46
11 110.4622 0.01 1.10 111.57
12 111.5668 0.01 1.12 112.68
12.68

3.5 Nominal rate of interest and Effective rate of interest:
Nominal rate of interest is the rate of interest received when the conversion period is one year. On
the other hand, when the conversion period is less than one year (i.e., when interest is computed
at lesser frequency than one year), the realized rate of interest is the Effective rate of interest which
will be greater than the Nominal rate. The Effective rate of interest can be computed as follows:
m m
 R  R
r = 1 +  − 1 r = 1 +  − 1
 m  m
where
R = Nominal rate of interest (i.e., the contracted of the agreed rate of interest)
r = Effective rate of interest
m = The Number of times interest is computed in a year
i.e., the number of conversion periods in a year.
Example: To find effective rate of interest for Nominal rate of interest of 8% p.a. paid on monthly
basis.
0.08 12
𝑟 = (1 + ) − 1 = 1.083 − 1 = 0.083 (or) 8.3%
12
Value of m while calculating effective rate of interest
Basis No.of times (m)

Yearly (=12/12) = 1
Half-yearly (=12/6) = 2
Quarterly (=12/3) = 4
Monthly (=12/1) = 12
Example1.
Find the final amount by both Nominal and Effective rates of interest in each of the following
cases.
i) Rs.1000 lent at 12% p.a., interest payable half-yearly for 5 years
ii) Rs.75 lent at 8% p.a., interest payable quarterly for 10 years
iii) Rs.5000 invested at 18% p.a., interest payable monthly for 4 years
Solution:
i) Given: R = 12% (nominal rate of interest), r = Effective rate of interest,
m=2
Effective rate of interest can be computed as follows:

𝑅 𝑚
𝑟 = [1 + ] − 1
𝑚
0.12 2
𝑟 = [1 + ] −1
2
𝑟 = [1 + 0.06]2 − 1
𝑟 = [1.06]2 − 1
𝑟 = 1.1236 − 1
𝑟 = 0.1236
r= Effective rate of interest = 12.36%
Therefore, the amount after five years at 12.36% effective rate of interest for Rs.1000 is
A = P(1+r)n = 1000 × (1+0.1236)5 = 1000 × 1.79085 = 1790.85
The amount after five years at 12% nominal rate of interest for Rs.1000 is
(interest calculated on annual basis)
A = P(1+r)n = 1000 × (1+0.12)5 = 1000 × 1.7623 = 1762.34
Alternate method
𝑟 𝑚𝑛 0.12 2×5
𝐴 = 𝑃 (1 + ) = 1000 (1 + ) = 1000 (1 + 0.06)2×5 = 1000 × 1.79085 = 𝟏𝟕𝟗𝟎. 𝟖𝟓
𝑚 2
ii) Rs.75, lent at 8% p.a., interest payable quarterly for 10 years
Given: R = 8% (nominal rate of interest), r= Effective rate of interest, P = 75

m = 4 (number of times interest being calculated)
m
 R
r = 1 +  − 1
 m
4
 0.0 8 
r = 1 + −1
 4 
r = 1 + 0.0 2 − 1
4
r = 1.0 2 − 1
4
r = 1.08243 − 1
r = 0.08243
r= Effective rate of interest = 8.24%

Therefore, the amount after ten years at 8.24% effective rate of interest for Rs.75 is
A = P(1+r)n = 75 × (1+0.0824)10 = 75 × 2.2074 = Rs.165.56
The amount after ten years at 8% nominal rate of interest for Rs.75 is
(interest calculated on annual basis)
A = P(1+r)n = 75 × (1+0.08)10 = 75 × 2.1589 = 161.92
Alternate method
𝑟 𝑚𝑛 0.08 4×10
𝐴 = 𝑃 (1 + ) = 75 (1 + ) = 75 (1 + 0.02)40 = 75 × 2.208 = 𝟏𝟔𝟓. 𝟔𝟎
𝑚 4
(iii) Rs.5000 invested at 18% p.a., interest payable monthly for 4 years
Given: P = 5000; R = 18% (nominal rate of interest), r = Effective rate of interest,

m =12 (monthly basis)
m
 R
r = 1 +  − 1
 m
12
 0.1 8 
r = 1 + −1
 1 2 
r = 1 + 0. 0 151 2 − 1
r = 1.015 12 − 1
r = 0.1956 (or) 19.56%
A = P(1+r)n
A = 5000 (1+0.1956)4
A = Rs.10216.77 (or) Rs.10,217/- (rounded off)
Alternate method
𝑟 𝑚𝑛 0.18 12×4
𝐴 = 𝑃 (1 + ) = 5000 (1 + ) = 5000 (1 + 0.015)48 = 𝑹𝒔. 𝟏𝟎𝟐𝟏𝟕. 𝟑𝟗
𝑚 12
The amount after four years at 18% nominal rate of interest for Rs.5000 is
(Interest calculated on annual basis)
A = P(1+r)n = 5000 × (1+0.18)4 = 5000 × 1.9388 = Rs.9,684/-

3.6 Varying Rates of Interest:
It may be possible that the interest rate may change during the period of loan (or, investment). In
such a case, the compound interest formula may be used by merely adding as many compounding
factors as are equal to the number of interest rate changes. For instance, if ‘p’ is the original
amount lent, ‘r’ is the interest rate for ‘n1’ interest periods, ‘r2’ is the interest rate for ‘n2’ interest
periods, ‘r3’ is the interest rate for ‘n3’ interest periods, and so on, the compound interest formula
can be written as follows:
𝐹 = 𝑃(1 + 𝑟1 )𝑛1 (1 + 𝑟2 )𝑛2 (1 + 𝑟3 )𝑛3 …
Example 1
A person deposits a sum of Rs.1,000 in a bank account. For long-term deposits, the bank offers
compound interest at the rate of 8% per annum for first 3 years, at the rate of 10% for the next 3
years and from the 7th year onwards, at the rate of 12% per annum. If the person makes a 10 years
deposit, how much will he receive at the end of the 10th year?
Period 1 FV = 1000*(1.08)3 = 1259.71

Period 2 FV = 1259.71*(1.1)3 = 1676.68
Period 3 FV = 1676.68*(1.12)4 = 2638.28
Solution: Given
P = Rs.1,000 A = P (1+r)n
r1 = 8% = 0.08 ; n1 = 3 years
r2 = 10% = 0.1 ; n2 = 3 years
r3 = 12% = 0.12 ; n3 = 4 years
𝐹 = 𝑃(1 + 𝑟1 )𝑛1 (1 + 𝑟2 )𝑛2 (1 + 𝑟3 )𝑛3
= 1000 (1.08)3 (1.10)3 (1.12)4 = 2638.28
= Antilog [log 1000+3 log 1.08+3 log 1.10 + 4 log 1.12]

= Antilog [3.0000 + 0.1242 + 0.1968]
= Antilog (3.4212) = Rs 2,637.55
Amount after three years A = 1000 (1+0.08)3 = 1259.71
Amount after next three years (6 years) A = 1259.71 (1+0.1)3 = 1676.67
Amount after next four years (10 years) A = 1676.67 (1+0.12)4 = 2638.27

A = P (1+r1)n1 (1+r2)n2 (1+r3)n3
A = 1000 (1+0.08)3 (1+0.1)3 (1+0.12)4 = Rs.2638.28
Example:
What principal invested today will amount to Rs.1630.80 in 4 years at 13% per annum compound
interest?
Given A = 1630.80; n = 4; r = 0.13; P = ?
A = P (1+r)n
1630.80 = P (1+0.13)4
1630.80
𝑃= = 𝑅𝑠. 𝟏𝟎𝟎𝟎
1.134
Example:
Mr.Dhoni borrowed Rs.50,000 from a money lender but could not repay any amount in a period of 4 years.
The money-lender is now demanding Rs.75,000 from him. What is the compound interest rate percent per
annum charged by the money lender?
Given P = 50000; n = 4; r = ?; A = 75000
log 𝐹−𝑙𝑜𝑔𝑃
75000 = 50000 (1+r)4 𝑟 = 𝐴𝑛𝑡𝑖𝑙𝑜𝑔 ( )−1
𝑛
75000
= (1 + 𝑟)4
50000
1.5 = (1+r)4 Log 1.5 = 4 Log (1+r)

1
(1.5)4 = 1 + 𝑟 0.1761 / 4 = Log (1+r)
1.1067 = 1 + 𝑟 0.044 = Log (1+r)
1.1067 − 1 = 𝑟 Antilog (0.044) = 1+r
𝒓 = 𝟎. 𝟏𝟎𝟔𝟕 (𝒐𝒓) 𝟏𝟎. 𝟔𝟕% 1.1067 = 1+ r
1. Find the amount of Rs.55000 in 8 years at 12% per annum interest compounded.
2. Calculate the compound interest on Rs.75,000 at 14% for 4 years.

3. What is the present value of Rs.10,000 due after 1 year if the compound interest is reckoned at 12%?
What will be the present value if Simple Interest is allowed instead of compound interest? Do you find
any difference? What are the reasons?
4. What is the present value of an amount of Rs.10,000 payable after 5 years if the compound interest rate
allowed is 14% per annum?
5. A sum of money Rs.50,000 was lent at compound interest of 15% per annum for 42 months. What is
the amount due?
6. Find in how many years Rs. 30,000 will become Rs.3,00,000 at 9% per annum compound interest.
7. Mr. Dhoni borrowed Rs.50,000 from a money lender but could not repay any amount in a period of 4
years. The money-lender is now demanding Rs.75,000 from him. What is the compound interest rate
percent per annum charged by the money lender?
8. Find the difference between the simple and compound interest on Rs.25,000 for 3 years at 10% per
annum.
9. Karnataka Bank issued a Bond of a face value of Rs.50,000 which will amount to Rs.2,80,000 in 10
years. Assuming that interest is computed annually, what is the annual rate of interest accruing to the
investor?
10. A certain sum of money invested today amounts to Rs.3,763 in 2 years and to Rs.4,720 in 4 years. Find
the principal and the compound rate of interest allowed.
11. J.K.Ltd, issued discount bonds of a face value of Rs. 28,000 each at a discounted price of Rs. 5000,
with a maturity period of 10 years. In addition, 2.5% of Rs. 5000, i.e., Rs. 125 would be payable to the
allottees as upfront discount at the time of allotment. What is the annual realized rate of interest to the
investor if he chooses to hold the bond for 10 years time?
12. The Discount Bonds of J.K.Ltd. mentioned in Exercise No. 11 have an inbuilt option of early
withdrawal by the investor. Accordingly, if the investor exercises this option, he would be paid Rs.
13,500 at the end of the sixth year or Rs. 19,500 at the end of eight year. What, then, are the realized
rate of interest? The discounted price remains the same as Rs. 5000 for any of the options, with an
additional upfront discount of Rs. 125 allowed at the time of allotment.
13. Find the effective rate of interest of i) 6% payable quarterly ii)8% payable half yearly
14. A Person deposits a sum of Rs. 1,0000 in a bank account. For long-term deposits, the bank
offers compound interest at the rate of 5% per annum for first 5 years, at the rate of 6% for the
next 4 years and from the 7th year onwards, at the rate of 7% per annum, If the person makes
a 10 years deposit, how much will he receive at the end of the 10th year?
15. A person wishes to have 12500 in cash 5 years hence. He has decided to open a fixed deposit
account with a bank that pays 12% per annum as interest. If the bank compounds interest once
in six months, how much should he deposit in the bank today?
16. Calculate compound interest and the amount for an investment of Rs.20000 for a period of 4
years. The rate of interest are first two years 10% and the next two years 12%. The interest
compounded annually for first two years and half yearly for the last two years.
17. What principal invested today will amount to Rs.1630.80 in 4 years at 13% per annum
compound interest?
1
18. Find the amount due 5 2 years hence on Rs.1000 at 14% per annum compound interest.
19. National Savings Certificates (VIII issue) of a face value of Rs.100 will pay Rs.201.50 exactly six
years hence. What is the rate of compound interest paid?
20. At what rate per cent per annum will a sum of money double itself in 5 years if lent at compound
interest?
21. In how many years will a sum of money double itself if compound interest is applied at 8% per annum?
2P = P(1+0.08)n A = P(1+r)n
2 = (1.08)n

log 2 = n log 1.08
𝑙𝑜𝑔 2
𝑛= = 𝟗 𝒚𝒆𝒂𝒓𝒔
𝑙𝑜𝑔 1.08
Answers
1. Rs. 136177.9
2. Rs. 51672
3. Rs. 8928.57
4. Rs. 5193.7
5. Rs. 81547.8
6. 26.72 Years
7. 10.67%
8. Rs. 775
9. 18.8%
10. Rs.3000, 12%
11. 19.10% Hint: Rs. 4875 should be taken as the present value
12. Withdrawal after 6 years: 18.5% / after 8 years: 18.92%
13. i) 6.13%, ii) 8.16%
14. 17241.22
15. Rs. 6980.90
16. Rs. 10552.50
17. Rs.1000.20
18. 2058.78
19. 12.386%
20. 14.87%
3.8 ANNUITIES
An annuity is a series of equal payments at regular intervals guaranteed for a fixed number of
years. Example: Regular deposits to a savings account, monthly home mortgage payments,
monthly insurance payments, pension payments.
1. Annuity Certain: An unconditional agreement to make a fixed (finite) number of annuity

payments, either at the beginning or at the end of the period, is called an Annuity Certain
2. Annuity Contingent: If the Payment of an annuity or the duration of annuity Payments or
both are subject to the happening of any event, the annuity is called annuity contingent.
3. Perpetuity: An annuity which is for an infinite period is called Perpetuity.
4. Deferred Annuity: When the annuity payments begin only after the lapse of a certain specified
period of time, the annuity is called Deferred Annuity.
5. An Annuity Certain can be further classified as follows:
a) Annuity Immediate: When the annuity payments are payable at end of each stipulated
time period, it is called an Annuity Immediate.
b) Annuity Due: When the annuity payments are payable at the beginning of each
stipulated time period, it is called an annuity due.

Future value of Annuity Immediate
A [ (1 + r ) n − 1] 𝐴
F= ... …….. (1) 𝐹𝑉 = [(1 + 𝑟)𝑛 − 1]
r 𝑟
Example 1. Calculate the amount on annuity of Rs.5000 for 15 years, if the rate of interest is
12% p.a.
Solution Nothing is mentioned about the type of annuity. Therefore it should be taken as
Annuity Immediate.
Given Annuity (A) = Rs.5000; n = 15 years and r = 0.12

𝐴
𝐹= {(1 + 𝑟)𝑛 − 1}
𝑟
5000
𝐹= {(1 + 0.12)15 − 1}
0.12
5000
𝐹= {(1.12)15 − 1}
0.12
𝐹 = 41666.67 {5.4736 − 1}
𝐹 = 41666.67 × 4.4736
𝐹 = 𝑅𝑠. 𝟏, 𝟖𝟔, 𝟒𝟎𝟎 F = P (1+r)n
P = F / (1+r)n
Present value of an Annuity Immediate
A[ (1 + r ) n − 1] 𝐴 {(1+𝑟)𝑛 −1}
 PV = 𝑃𝑉 = [ (1+𝑟)𝑛 ]
r (1 + r ) n 𝑟
Example 1. What is the present value of an annuity of Rs.2000 for 5 years at 12% p.a?
Solution: Nothing is said about the type of annuity. Therefore, it should be taken as an annuity
immediate.
Given Annuity (A) = Rs.2000

r = 0.12
n = 5 years
PV = ?

A[ (1 + r ) n − 1]
PV =
r (1 + r ) n
2000[ (1 + 0.1 2) 5 − 1]
=
(0.1 2) (1 + 0.1 2) 5
2000[ (1.1 2) 5 − 1]
=
(0.1 2) (1 + 0.1 2) 5
2000 [1.7623) − 1]
= = Rs.7209.33
(0.1 2) (1.7623)
Future value of Annuity Due

𝑨[(𝟏 + 𝒓)𝒏 − 𝟏]
𝑭= (𝟏 + 𝒓)
𝒓
Example 1:
Suppose you open a Recurring deposit A/c with a company and put in Rs.1000 at the beginning
of each year for 5 years. The company agrees to pay interest of 15% p.a. How much will you get
at the end of 5 years?
Solution:
Payments will be made at the beginning of each year. A = 1000; n = 5; r = 0.15
Therefore, it is an annuity due.
A [ (1 + r ) n − 1]
F = (1 + r ) (Annuity Due)
r
1000 [ (1 + 0.15) 5 − 1]
= (1 + 0.15)
0.15
1000[ (1.15) 5 − 1] (1.1 5)
=
0.15
1000 (1.1631)
=
0.15
F = Rs.7753.75
Example:
A farmer borrows Rs.30,000 at a concession rate 6% p.a. from government to make improvement
on his agriculture land. This type of loan is to be repaid in 20 equal installments beginning at the
end of the year. What is the value of each installment?
Given P = 30,000; r = 0.06; n = 20; Type = End – Annuity Immediate

𝑨[(𝟏 + 𝒓)𝒏 − 𝟏]
𝑷𝑽 =
𝒓(𝟏 + 𝒓)𝒏
𝑨[(𝟏 + 𝟎. 𝟎𝟔)𝟐𝟎 − 𝟏]
𝟑𝟎, 𝟎𝟎𝟎 =
𝟎. 𝟎𝟔(𝟏 + 𝟎. 𝟎𝟔)𝟐𝟎
𝟑𝟎, 𝟎𝟎𝟎 × 𝟎. 𝟎𝟔(𝟏 + 𝟎. 𝟎𝟔)𝟐𝟎

= 𝑨
(𝟏 + 𝟎. 𝟎𝟔)𝟐𝟎 − 𝟏
𝑨 = 𝑹𝒔. 𝟐, 𝟔𝟏𝟓. 𝟓𝟒
F = P(1+r)n
F = 30,000(1+0.06)20
F = Rs.96,214.06
𝐴
𝐹𝑉 = [(1 + 𝑟)𝑛 − 1]
𝑟
𝐴
96,214.06 = [(1 + 0.06)20 − 1]
0.06
96214.06 × 0.06
= 𝐴
[(1 + 0.06)20 − 1]
A = Rs.2,615.53
𝐴
𝐹𝑉 = [(1 + 𝑟)𝑛 − 1]
𝑟
𝐴
30000 = [(1 + 0.06)20 − 1]
0.06
𝐴 = 𝑹𝒔. 𝟖𝟏𝟓. 𝟓𝟒
The farmer has to pay Rs.815.54 at the end of each year.

Present Value of Annuity due
In this case also the “Present value of an Annuity Immediate multiplied by (1+r) will yield the
present value of an annuity due”
A [ (1 + r ) n − 1]
 P= (1 + r )
r (1 + r ) n
Example 1:
Supposing you expect to receive an annuity of Rs.1000 p.a. for 5 years, each receipt occurring at
the beginning of the year. The discount rate is 12%. What is the present value of this annuity?
Solution :
The annuity is receivable at the beginning of each year. Therefore, it is an annuity due.
Given A = 1000; r = 0.12; n=5
A [ (1 + r ) n − 1]
PV = (1 + r )
r (1 + r ) n
1000 [ (1.12)5 − 1]
PV = (1.12)
(0.12) (1.12)5
1000(0.7623)(1.12)
PV = (0.12)(1.7623)
853.8 2
PV =
0.2115
PV = Rs.4,037/-
Example 2:
A travelling salesman bought a motor cycle under a hire purchase scheme, wherein he has to pay
Rs.1,500 per month for 40 months, each payment payable at the beginning of the month. If the
dealer has charged interest at 18% p.a., what is cash price of the motor cycle? (There is no initial
payment and ignore documentation and other charges)
Given A = 1500; n = 40 months (or) 40/12 years; r = 0.18,

payment type = monthly (beginning), therefore m = 12
Therefore, the present value of annuity of 1500 for 40 months at 18% interest rate is

𝑟 𝑚𝑛
(1 + 𝑚) − 1 𝑟
𝑃𝑉 = 𝐴 𝑚𝑛 (1 + )
𝑟 𝑟 𝑚
𝑚 (1 + 𝑚)
0.18 40
(1 + 12 ) − 1 0.18
𝑃𝑉 = 1500 40 (1 + 12 )
0.18 0.18
12 (1 + 12 )
PV = Rs. 45,546.87/-
Therefore, the cash price of motor cycle is Rs.45,547/-.
Example 3:
A person deposits Rs.5000 at the beginning of each quarter in his savings account in a bank which
pays 8% interest per annum compounded quarterly. Find the balance at the end 3 years.
Given A = 5000; n = 3 years; r = 0.08, payment type = quarterly; no.of payments = 12
Therefore, the future value of annuity of 5000 for 3 years at 8% interest rate is
𝑟 𝑚𝑛
{(1 +
𝐹𝑉 = 𝐴 𝑚) − 1} (1 + 𝑟 )
𝑟 𝑚
𝑚
12
 0.08 
1 +  −1
 4   .08 
FV = 5000 1 + 
.08  4 
4
FV = Rs.68,401.66
Therefore, the future value is Rs.68,402/-.
Example 4:
Mr A deposited Rs.700 at the end of each month of calendar year 2010 in an investment account
of 9% annual interest rate. Calculate the future value of the annuity on Dec 31, 2015. Compounding
is done on monthly basis.
Solution:
Given A = 700; n = 6 years; r = 0.09, payment type = monthly; No.of payments = 12×6 =72
No.of years = From 2010 January to 2015 December

2010, 2011, 2012, 2013, 2014, 2015 = 6 years

Therefore, the future value of monthly annuity of 700 for 6 years at 9% interest rate is
𝑟 𝑚𝑛
(1 + 𝑚) − 1
𝐹𝑉 = 𝐴 𝑟
𝑚
0.09 12×6
(1 + 12 ) −1
𝐹𝑉 = 700
0.09
12
FV = 66,504.92
Therefore, the future value is Rs.66,505/-.
Example 5:
Alan decides to set aside Rs.5000 at the end of each month for his child’s college education. If the child
were to be born today, how much will be available for its college education when she turns 19 years old?
Assume an interest rate of 5% compounded monthly.
Given A = 5000; n = 19 years; r = 0.05; Payment mode – Monthly (end), m = 12
𝑟 𝑚𝑛
{(1 +
𝐹𝑉 = 𝐴 𝑚) − 1}
𝑟
𝑚
0.05 12×19
{(1 + 12 ) − 1}
𝐹𝑉 = 5000
0.05
12
FV = 18,96,733.58
The amount that will be available for the daughter’s college is Rs.18,96,733/-.
Example6:
What equal payments at the beginning of each year for 10 years will pay for a piece of property
priced at present Rs.6,00,000/-, if money is worth 5% effective.
Given PV = 6,00,000; r = 0.05; n = 10 years. Payment Type: Annuity Due
(1 + 𝑟)𝑛 − 1
𝑃𝑉 = 𝑨 [ ] (1 + 𝑟)
𝑟 (1 + 𝑟)𝑛

(1.05)10 − 1
6,00,000 = 𝑨 [ ] (1.05)
0.05 (1.05)10
6,00,000 × 0.05 (1.05)10

= 𝑨
[(1.05)10 − 1] (1.05)
𝑨 = 𝑹𝒔. 𝟕𝟒, 𝟎𝟎𝟐. 𝟔𝟏
We know by compound interest, FV = P (1+r)n

FV = 6,00,000 (1+0.05)10
FV = Rs.9,77,337/-
Now to find the Annuity of the FV of Rs.9,77,337/- with equal payments at the beginning of every
year at 5%.
(1+𝑟)𝑛 −1
𝐹𝑉 = 𝑨 [ ] (1 + 𝑟)
𝑟
(1 + 0.05)10 − 1
9,77,337 = 𝐴 [ ] (1 + 0.05)
0.05
𝐴 = 𝑅𝒔. 𝟕𝟒, 𝟎𝟎𝟑/−
Example7:
A Company needs Rs.10,00,000 at the end of 5 years from now. It would like to set aside an equal
amount each year from its profit. If the present market rate of interest is 16%, how much should
be annual amount to be invested?
Given FV = 10,00,000; r = 0.16; n = 5 years. To find Annuity (A).
𝐴
𝐹𝑉 = [(1 + 𝑟)𝑛 − 1]
𝑟
𝑨
10,00,000 = [(1 + 0.16)5 − 1]
0.16

𝐴 = 𝑅𝒔. 𝟏, 𝟒𝟓, 𝟒𝟎𝟗. 𝟑𝟖/−
Example8:
A certain amount was invested on Jan 1, 2010 such that it generated a periodic payment of Rs.1,000
at the beginning of each month of the calendar year 2010. The interest rate on the investment was
13.2%. Calculate the original investment and the interest earned.
Given A = 1,000; r = 0.132; n = 1 year. Payment = Every month beginning
𝑟 𝑚𝑛
{(1 +
𝑃𝑉 = 𝐴 𝑚) − 1} (1 + 𝑟 )
𝑟 𝑟 𝑚𝑛 𝑚
(1 +
𝑚 𝑚)
0.132 12
{(1 + 12 ) − 1} 0.132
𝑃𝑉 = 1000 (1 + )
0.132 0.132 12 12
12 (1 + 12 )
PV = Rs. 11,307.32
Total amount generated for 12 months = 1000 × 12 = Rs.12,000
Therefore, amount earned through interest = 12000 – 11307.32 = Rs.692.68.
Example9:
A person on his retirement has become eligible to receive an annuity of Rs.12,000 p.a. from his
employer towards pension. This pension will be payable only for 10 years. Alternatively, the
employee will be paid a lump sum amount on the date of retirement in lieu of annual pension. If
the current discount rate is 14% p.a., what should be paid to the retiring employee in a lump sum,
if he opts for such a scheme?
Solution:
Given A = 12,000; n = 10; r = 0.14;
Type = Annuity immediate
(beginning or end of the year not given, so we can assume end of the year)
𝐴[(1 + 𝑟)𝑛 − 1]
𝑃𝑉 =
𝑟(1 + 𝑟)𝑛
12000 [ (1 + 0.14)10 − 1]
PV =
0.14 (1 + 0.14)10
PV = Rs. 62,593.39

Example10:
A machine purchased at a cost of Rs.75,000 has a productive life of 8 years after which its scrap
1
value is estimated to be nil. Assuming that costs are expected to go up by 33 3 % over the next 8
years, how much depreciation should annually be set aside out of profit as depreciation found so
as to provide enough money to place the asset after 8 years? The amount set aside annually can be
invested at the rate of 14% p.a. C.I.
Solution:
1
33 % 𝑜𝑓 75000 = 75000 × 0.3333 = 25,000
3
Therefore, the cost of the machine should be taken as 75000+25000 = Rs.1,00,000
Now we have FV = 1,00,000; n = 8 years; r = 0.14. To find A.
𝐴
𝐹𝑉 = [(1 + 𝑟)𝑛 − 1]
𝑟
𝐴
1,00,000 = [(1 + 0.14)8 − 1]
0.14
𝐴 = 𝑅𝑠. 𝟕, 𝟓𝟓𝟕/−
Example 11:
A person repaid his loan in 5 equal annual installments starting from the beginning of the first year.
If each installment was Rs.50,000 and the compound interest charged was 12% p.a., what was the
amount borrowed?
𝐴[(1 + 𝑟)𝑛 − 1]
𝑃𝑉 = (1 + 𝑟)
𝑟(1 + 𝑟)𝑛
50000[(1 + 0.12)5 − 1]
𝑃𝑉 = (1 + 0.12) = 𝑅𝑠. 2,01,867.47
0.12(1 + 0.12)5

Example 12:
An investment which requires an initial outlay of Rs.1,00,000 will yield an annuity of 20,000 for
12 years. If the discount rate is 14% p.a. Should we accept this investment proposal?
𝐴[(1 + 𝑟)𝑛 − 1]
𝑃𝑉 =
𝑟(1 + 𝑟)𝑛
20000[(1 + 0.14)12 − 1]
𝑃𝑉 = = 𝑅𝑠. 1,13,205.84
0.14(1 + 0.14)12
Since the present value is more than the initial outlay, we can accept the investment proposal.
Example 13:
An insurance company offers an annuity scheme called the Jeevan Raksha Scheme. One of the
options in this scheme is as follows. If a lump sum amount is paid now, commencing from the
end of year, the company will pay an annuity of Rs.12,000 p.a. Annuitant’s life expectation is 15
years. How much should be deposited in lump sum now? If the interest rate is 9% per annum.
Solution:
Given A = 12000; n = 15 years; r = 0.09; Type = Annuity Immediate
𝐴[(1 + 𝑟)𝑛 − 1]
𝑃𝑉 =
𝑟(1 + 𝑟)𝑛
12000[(1 + 0.09)15 − 1]
𝑃𝑉 = = 𝑅𝑠. 𝟗𝟔, 𝟕𝟐𝟖. 𝟐𝟔
0.09(1 + 0.09)15
A sum of Rs.96,728 should be deposited in lump sum.
Perpetuity
Future Value of a Perpetuity does not exist (it is an infinite value).

However the Present Value of Perpetuity can be found by the following formula.
A
P =
r
Where P is the present value of perpetuity.

Example 1 :
What is the present value of an income of Rs.2,000 a year to be received forever? Assume the
discount rate to be 16%.
Solution :
The income is to be received forever. Therefore, it is perpetuity. The present value of a perpetuity
is
𝐴 2000
𝑃∞ = = = 𝑅𝑠. 12,500
𝑟 0.16
Example 2:
A person desires to endow a bed in a hospital, the cost of which is Rs.6,000 p.a. If the money is
worth 12% p.a., how much should he provide in perpetuity?
A 6000
P = = = R s. 50,000
r 0.12
Example 3 :
What must be deposited today in order to earn an annual income of Rs.7,000, in perpetuity,
beginning from the end of 15 years from now? Interest rate is 14% p.a.
𝐴 7000
𝑃∞ = = = 𝑅𝑠. 50,000
𝑟 0.14
The present value of Rs.50,000 after 15 years at 14% interest p.a. is FV = P(1+r)n
𝐹𝑉 50000
𝑃𝑉 = = = 𝑹𝒔. 𝟕, 𝟎𝟎𝟒. 𝟖𝟐 (𝒐𝒓) 𝑹𝒔. 𝟕, 𝟎𝟎𝟓/−.
(1 + 𝑟)𝑛 (1 + 0.14)15
Example 4:
At what rate converted semi-annually will the present value of a perpetuity of Rs.675 payable at
the end of each 6 months be Rs.30,000?
𝐴 675
𝑃∞ = 𝑟⁄ = 𝑟⁄ = 𝑅𝑠. 30,000 → 𝑟 = 0.045 (𝑜𝑟) 4.5%
𝑚 2
1. Calculate the present value of an annuity of Rs.3000 for 6 years at 14% p.a.
2. A machine costs Rs.25,000. It will yield cash profit of Rs.7,500 p.a. for the next 5 years. If
the interest rate is 18% p.a., would you consider investing in the machine?
3. A person wants to provide for his daughter’s college studies which will require Rs.10,000 p.a.
for 5 years. The money will be needed one year from now. How much should he deposit in
his bank account now in such a way that the account will be closed at the end of 5 years? Bank
allows compound interest at the rate of 12% p.a.

4. A person on his retirement has become eligible to receive an annuity of Rs.12,000 p.a from his
employer towards pension. This pension will be payable only for 10 years. Alternatively, the
employee will be paid a lump sum amount on the date of retirement in lieu of annual pension.
If the current discount rate is 14% p.a., what should be paid to the retiring employer in a lump
sum, if he opts for such a scheme?
5. A farmer borrows Rs.30,000 at a concession rate of 6% p.a. from government to make
improvement on his agriculture land. This type of loans is to be repaid in 20 equal installments
beginning at the end of the year. What is the value of each installment?
6. What is the present value of an annuity of Rs. 2000 @ 5% compound interest per annum? The
payment being made for 10 years, at the beginning of the year.
7. A person deposits Rs.5000 at the beginning of the each quarter in his savings account in a bank
which pays 8% interest per annum compounded quarterly. Find the balance at the end 3 years.
8. What equal payments at the beginning of each year for 10 years will pay for a piece of property
priced at Rs.600000, if money is worth 5% effective.
9. What is the perpetuity of Rs. 500 at 5% C.I. per annum?
10. At what rate converted semi-annually will the present value of a perpetuity of Rs. 675 payable
at the end of each 6 months be Rs.30000?
11. Calculate the present value on Jan 1, 2011 of an annuity of Rs.500 paid at the end of each
month of the calendar year 2011. The annual interest rate is 12%.
12. A certain amount was invested on Jan 1, 2010 such that it generated a periodic payment of
Rs.1,000 at the beginning of each month of the calendar year 2010. The interest rate on the
investment was 13.2%. Calculate the original investment and the interest earned.
13. Alan decides to set aside Rs.50 at the end of each month for his child’s college education. If
the child were to be born today, how much will be available for its college education when she
turns 19 years old? Assume an interest rate of 5% compounded monthly.
14. Mr A deposited Rs.700 at the end of each month of calendar year 2010 in an investment
account of 9% annual interest rate. Calculate the future value of the annuity on Dec 31, 2011.
Compounding is done on monthly basis.
15. Calculate the present value on Jan 1, 20X0 of a perpetuity paying Rs.1,000 at the end of each
month starting from January 20X0. The monthly discount rate is 0.8%.
16. A Company needs Rs.10,00,000 at the end of 5 years from now. It would like to set aside an
equal amount each year from out of its profits. If the present market rate of interest is 16%,
how much should be annual amount to be invested?
17. A machine purchased at a cost of Rs.75,000 has a productive life of 8 years after which its
1
scrape value is estimated to be nil. Assuming that costs are expected to go up by 33 3% over
the next 8 years, how much depreciation should annually be set aside out of profit as
depreciation found so as to provide enough money to place the asset after 8 years? The amount
set aside annually can be invested at the rate of 14% p.a. C.I.
18. An investment which requires an initial outlay of Rs.1,00,000 will yield an annuity of
Rs.20,000 for 12 years. If the discount rate is 14% p.a., should we accept this investment
proposal?
19. An insurance company offers an annuity scheme called the Jeevan Raksha Scheme. One of the
options in this scheme is as follows. If a lump sum amount is paid now, commencing from the
end of year, the company will pay an annuity of Rs.12,000 p.a, annuitant’s life expectation is
15 years. How much should be deposited in lump sum now, if the interest rate is 9% per annum.

20. What is the future value of an annuity of Rs.2,500 p.a. payable at the beginning of each year
for 10 years if the rate of interest is 16% p.a. compounded quarterly?
21. Calculate the present value of an annuity due of Rs. 750 p.m. for 25 months if the interest rate
is 12% p.a.
22. A travelling salesman bought a motor cycle under a hire purchase scheme, wherein he has to
pay Rs.1,500 per month for 40 months, each payment payable at the beginning of the month.
If the dealer has charged interest at 18% p.a., what is cash price of the motor cycle? (There is
no initial payment and ignore documentation and other charges)
23. A person repaid his loan in 5 equal annual installments starting from the beginning of the first
year. If each installment was Rs.50,000 and the compound interest charged was 12% p.a., what
was the amount borrowed?
24. A person desires to endow a bed in a hospital the cost of which is Rs.6,000 p.a. If the money
is worth 12% p.a., how much should he provide in perpetuity?
25. What must be deposited today in order to earn an annual income of Rs.7,000, in perpetuity,
beginning from the end of 15 years from now? Interest rate is 14% p.a.
Answers for the terminal questions:

1. 11,665.83
2. P.V= Rs 23,454.11; Benefit is less than cost. Therefore it is not profitable to invest in the
machine
3. Rs 36,048.60
4. Rs, 62,593.38
5. Rs.2615.56
6. 16220
7. 6840
8. 74,005
9. 10000
10. 4.5%
11. 5,627.54
12. 11,307.32; 692.68
13. 17,460.10
14. 6566.48
15. 125,000

MODULE - 4
UNIVARIATE DATA ANALYSIS
MEASURES OF CENTRAL TENDENCY
Structure:
4.1 Learning Objectives
4.2 Meaning and Objective of Central Measures
4.3 Arithmetic Mean
4.4 Median
4.5 Quartiles
4.6 Mode
4.7 Summary
4.8 Questions
4.9 Answers
4.1 Learning Objectives

To understand
• To understand Measures of Central tendency
• To understand types of averages, Arithmetic Mean, (Simple and Weighted) Median
and mode
4.2 Meaning and Objectives of Central tendency Measures
Meaning: - Quantitative data in a mass exhibit a tendency to concentrate at some value somewhere
in the centre, this tendency are called central tendency or the property of values to concentrate
around a central value is called central tendency
Measure of Central tendency/Average is the typical value of the entire group which describes the
mass of entire data or the central value around which all other values concentrate.
Example: In the age group of 24 to 34 years for men, the marriage age is generally 28 years, the
age group values tendency to concentrate towards the age 28 years is central tendency, whereas
the value 28 is the central measure or the average.
Definition: - An average is a single value selected from a group of values to represent them in
some way, value which is supposed to stand for whole group of which it is a part has typical of all
the values in the group - A.E Waugh.
Objectives:
1. To get a single value that describes the characteristics of the entire group.
2. To facilitate comparison.
3. To know about the universe from the sample.
4. To establish mathematical relationship.

Requisites of an ideal average:
1. It should be rigidly defined.
2. It should be easy to understand.
3. It should be simple to compute.
4. It should be based on all the items.
5. It should not be unduly affected by extreme values.
6. It should be capable of further algebraic extreme values.
7. It should have sampling stability.
Limitations
1. Since average is a single value representing a group of values, it must be properly
interpreted.
2. An average may give a value that does not exist in the data.
3. At times the average may give absurd result.
4. Measure of central value fails to give an idea about the formation of the series.
5. Unless the data shows a single clear concentration of observations, an average may not be
meaningful at all.
Types of averages.
1. Arithmetic Mean
- Simple AM
- Weighted AM
2. Median
3. Mode
4.3 Arithmetic mean
4.3.1 Calculation of Arithmetic Mean
a) Individual observations (Raw data)

1. Direct method
AM of a given set of observations is obtained by adding all the observations in the set and divide
the sum by number of observations.
Let x1, x2, x3 ….xn are the given n observations then their AM denoted by 𝑥̅  is given by
𝑥1 + 𝑥2 + 𝑥3 + … + 𝑥𝑛
𝑥̅ =
𝑛
1
= 𝑛∑𝑥
2. Shortcut method
In this method, the deviation of each value from the assumed mean should be found out and is
represented by ‘d’. Any value within the series or outside the series can be taken as the assumed
mean.
Let x1, x2, x3 ….xn are the given n observations then their AM denoted by 𝑥̅ is given by

∑𝑑
𝑥̅ = 𝐴 + Here A = assumed mean
𝑛
d=x–A
n = number of items
b) Discrete Series
1. Direct method
Let x1, x2, x3 ….xn be n observations having frequencies f1, f2…….. fn, then the AM is given
By,
f x + f x + ..... = f n x n  fx
x= 1 1 2 2 =
f1 + f 2 + ..... + f n N
Where N = Total frequency.
2. Shortcut method
In this method, the deviation of each value from the assumed mean should be found out
and is represented by ‘d’. Any value within the series or outside the series can be taken as the
assumed mean. The deviation is multiplied by the corresponding frequencies and is represented as
‘fd’. Then the total of ‘fd’ is found out and is divided by total frequency. To that value assume
mean is added which will give the value of A.M.
 fd
x =A+ Here,
N
A = assumed mean
d = x-A
f = frequency.
N = Total frequency.
c) Continuous series
1. Direct method – under this method formula for calculating AM is
 fx
X =
N
Here x = mid-point of various classes
f = frequency
N = Total frequency
2. Shortcut method – When shortcut method is used, A.M. Is computed by
∑ 𝑓𝑥
𝑥̅ =
𝑁
1 1
𝑥̅ = 𝐴 + ∑ 𝑓𝑑 (𝑜𝑟) 𝐴 + ∑ 𝑓𝑑
𝑁 ∑𝑓
A – Assumed mean
d – Deviation of the midpoint from assumed mean (A)
N – Total frequency.

3. Step deviation method – In step deviation method, in order to simplify calculations, we divide
the deviations by the class width. The formula for calculating A.M. is
∑𝑑
𝑥̅ = 𝐴 + ( × ℎ)
𝑁
1
𝑥̅ = 𝐴 + (ℎ × ∑ 𝑓𝑑)
𝑁
where,
𝑥−𝐴
𝑑= ℎ
A = Assumed Mean
h = Height of the class interval
Illustration1.
Compute Arithmetic Mean using direct and short-cut method.
Income: 3000, 3500, 3600, 3900, 4000, 4500, 5000, 6000, 7000, 8000
Solution:
Here the variable(x) is income
Income (X)
3000
3500
3600
3900
4000
4500
5000
6000
7000
8000
Total = 48500
Direct method:
1 48500
𝑥̅ = 𝑛 ∑ 𝑥 = = 4850
10
Short-cut method:
̅ = 𝑨 + ∑𝒅
𝑿 𝒏
Assumed Mean A = 5000
Therefore 𝒅=𝑿−𝑨
𝒅 = 𝑿 − 𝟓𝟎𝟎𝟎

Income(X) d = X – 5000
3000 -2000
3500 -1500
3600 -1400
3900 -1100
4000 -1000
4500 -500
5000 0
6000 1000
7000 2000
8000 3000
Total = 48500 d = -1500
d −1500
x = A+ = 5000 + 10 = 5000 − 150 = 4850
n
Step-deviation method:
∑𝑑 𝑋−𝐴
𝑥̅ = 𝐴 + ( × ℎ) where 𝑑 = ; ℎ = 𝑠𝑐𝑎𝑙𝑒
𝑁 ℎ
Income (X) 𝑑 = 𝑥 − 5000 𝑥−5000

𝑑 = 1000
3000 -2000 -2.0
3500 -1500 -1.5
3600 -1400 -1.4
3900 -1100 -1.1
4000 -1000 -1.0
4500 -500 -0.5
5000 0 0
6000 1000 1.0
7000 2000 2.0
8000 3000 3.0
Total = 48500 d = -1.5
∑𝑑
𝑥̅ = 𝐴 + ( × ℎ)
𝑁
−1.5
𝑥̅ = 5000 + ( × 1000)
10
−1500
𝑥̅ = 5000 + ( 10 )
𝑥̅ = 5000 − 150
𝑥̅ = 𝟒𝟖𝟓𝟎

Illustration2. Compute A.M. using direct and short-cut method.
Marks (X) 5 10 15 20 25 30 35
No.of Students (f) 8 12 18 12 17 16 17
Solution: Here the variable(x) is marks

Marks (X) f fX d = x – 20 fd
5 8 40 -15 -120
10 12 120 -10 -120
15 18 270 -5 -90
20 12 240 0 0
25 17 425 5 85
30 16 480 10 160
35 17 595 15 255
Total N = 100 2170 ∑ f d = 170
Direct method:
 fx 2170
x = = = 𝟐𝟏. 𝟕
N 100
Short-cut method:
 fd
x = A+ , where d = X – A = X – 20
N
170
= 20 +
100
= 21.70
Step-Deviation method:
Marks (X) f 𝑥 − 20 fd
𝑑=
5
5 8 -3 -24
10 12 -2 -24
15 18 -1 -18
20 12 0 0
25 17 1 17
30 16 2 32
35 17 3 51
𝑓𝑑 𝑥−𝐴
Total N = 100 34 𝑥̅ = 𝐴 + (ℎ × ) , where 𝑑 =
𝑁 ℎ
; A = X – 20; h = 5
34
𝑥̅ = 20 + (5 × 100)
= 21.70

Illustration3.
Compute arithmetic mean using direct and step deviation method.
Production (in tonnes) 0 - 100 100 - 200 200-300 300-400 400-500

No. of factories 18 12 16 14 20
Solution:
Mid point 𝑿−𝟐𝟓𝟎

C.I. f fX d= fd
(X) 𝟏𝟎𝟎
𝟓𝟎−𝟐𝟓𝟎
0-100 18 50 900 = -2 -36
𝟏𝟎𝟎
100-200 12 150 1800 -1 -12
200-300 16 250 4000 0 0
300-400 14 350 4900 1 14
400-500 20 450 9000 2 40
- N = 80 ∑ f X = 20600 ∑fd=6
Direct method
 fx 20600
x = = = 257.50
N 80
Step deviation method

∑ 𝑓𝑑 𝑋−𝐴
𝑥̅ = 𝐴 + ( 𝑁 × ℎ) 𝑑= ; 𝐴𝑠𝑠𝑢𝑚𝑒 𝐴 = 𝟐𝟓𝟎 𝑎𝑛𝑑 ℎ = 𝟏𝟎𝟎
ℎ
6
= 250 + 80 × 100 = 250 + 7.50 = 257.50
Properties of Arithmetic Mean

1. Sum of the deviations of the given set of observations from their A.M is Zero i.e. (x-x) = 0
2. Sum of the square of the deviations of the given set of observations is minimum when taken
from A.M. i.e. (x-x)2 is minimum.
 x,
3. Since x = , n x =  x . In other words if we replace each item in the series by the mean,
n
then the sum of these substitutions will be equal to the sum of the individual items.
4. If we have A.M. and number of items of 2 or more than 2 related groups are known then their
combined mean can be computed by
→ → →
𝑛1 𝑥 +𝑛2 𝑥 2 +......𝑛𝑘 𝑥 𝑘
x =
𝑛1 +𝑛2 +𝑛3 ......+𝑛𝑘

Problems
1. Calculate AM using direct and shortcut method.
Marks 0-10 10-20 20-30 30-40 40-50 50-60 60-70

Students 8 12 13 16 7 14 10
Solution:
Marks Mid-point Students fx X–A fd

X f d
0-10 5 8 40 -30 -240
10-20 15 12 180 -20 -240
20-30 25 13 325 -10 -130
30-40 35 16 560 0 0
40-50 45 7 315 10 70
50-60 55 14 770 20 280
60-70 65 10 650 30 300
N = 80 ∑fm = 2840 ∑fd =
Direct Method: X =
 fx
N
2840
=
80
= 35.5 marks
Short- cut Method:
X = A+
 fd
N
40
X = 35 +
80
= 35.5
2. Compute AM using Step-deviation method for the following data.
Marks 0-10 10-20 20-30 30-40 40-50 50-60 60-70

Students 3 12 17 18 12 14 24
Solution:
Marks Students Mid point 𝑋 − 35 fd
f X 𝑑=
10
5 − 35 −30
0-10 3 5 = = −3 -9
10 10
10-20 12 15 -2 -24
20-30 17 25 -1 -17

30-40 18 35 0 0
40-50 12 45 1 12
50-60 14 55 2 28
60-70 24 65 3 72
Total 100 62
1 𝑋−𝐴 𝑋−35
𝑋̅ = 𝐴 + (𝑁 ∑ 𝑓𝑑 × ℎ) where 𝑑 = =
ℎ 10
62
𝑋̅ = 35 + (100 × 10)
𝑋̅ = 35 + 6.2
𝑋̅ = 𝟒𝟏. 𝟐
Cumulative Frequency Distributions
Marks Students Less than cumulative frequency

f Class Less than
Cumulative
frequency
0-10 3 Below 10 3
10-20 12 Below 20 =12 +3 = 15
20-30 17 Below 30 = 17+15 = 32
30-40 18 Below 40 = 18+ 32 = 50
40-50 12 Below 50 =12 + 50 = 62
50-60 14 Below 60 =14 + 62 = 76
60-70 24 Below 70 = 24 + 76 = 100
Total 100
Marks Students More than cumulative frequency

f Class More than
Cumulative
frequency
0-10 3 Above 0 3 + 97 = 100
10-20 12 Above 10 12 + 85 = 97
20-30 17 Above 20 17 + 68 = 85
30-40 18 Above 30 18 + 50 = 68
40-50 12 Above 40 12 + 38 = 50
50-60 14 Above 50 14 + 24 = 38

60-70 24 Above 60 24
Total 100
3. Calculate AM from the following data.

Monthly income
No. of families
(in ‘000 Rs.)
Below 10 20
Below 20 40
Below 30 80
Below 40 120
Below 50 140
Below 60 180
Below 70 200
Solution:
First the given cumulative distribution has to be reduced to ordinary frequency distribution.
No.of Mid 𝑋 − 35
Monthly 𝑑=
Families point 10 fd
Income (Rs.)
f x
0-10 20 5 -3 -60
10-20 40-20 = 20 15 -2 -40
20-30 80-40 = 40 25 -1 -40
30-40 120-80 = 40 35 0 0
40-50 140-120 = 20 45 1 20
50-60 180-140 = 40 55 2 80
60-70 200-180 = 20 65 3 60
Total N = 200 20
1 𝑋−𝐴 𝑋−35
𝑋̅ = 𝐴 + (𝑁 ∑ 𝑓𝑑 × ℎ) where 𝑑 = =
ℎ 10
20
𝑋̅ = 35 + (200 × 10)
𝑋̅ = 35 + 1
𝑋̅ = 𝟑𝟔
4. Following are the data related with the monthly income of 300 families in a village.
Monthly income ( Rs.) No. of families
Above 0 300
Above 10 280
Above 20 200

Above 30 160
Above 40 100
Above 50 60
Above 60 40
Above 70 20
Solution:
Monthly No. of Mid Point 𝑋 − 45 fd
Income (Rs.) families x 𝑑=
10
f
0-10 300-280 = 20 5 -4 -80
10-20 280-200 = 80 15 -3 -240
20-30 200-160 = 40 25 -2 -80
30-40 160-100 = 60 35 -1 -60
40-50 100-60 = 40 45 0 0
50-60 60-40 = 20 55 1 20
60-70 40-20 = 20 65 2 40
70-80 20 75 3 60
Total 300 -340
1 𝑋−𝐴 𝑋−45
𝑋̅ = 𝐴 + (𝑁 ∑ 𝑓𝑑 × ℎ) where 𝑑 = =
ℎ 10
−340
𝑋̅ = 45 + ( 300 × 10)
𝑋̅ = 45 − 11.33
𝑋̅ = 𝟑𝟑. 𝟔𝟕

A few selected problems for your reference on application mean and combined mean
1. The 𝑋̅ weight of 6 students in a class is 120 kg. The weights of first five students were
100, 120, 130, 105 and 115 kgs. respectively. Find the weight of 6th student?
Solution:
_
X=
x
n
120 =
x
6
∑ 𝑥 = 720
i.e., The total weight of 6 students.
The weight of 5 students
= 100 + 120 + 130 + 105 +115
= 570
  The weight of the 6th student = 720 – 570 = 150 kg.
2. In a class of 60 students 10 have failed with an average mark of 15. If the total marks of all the
students was 1800, find the average marks of those who have passed.
Solution:
Total marks of 60 students = 1800. (Given)
∑𝑥
We know that 𝑥̅ = 𝑛
∑𝑥
Average mark of 10 numbers of failed students = 15 = 10
Therefore, total marks of failed students = 15 × 10 = 150
 Total Marks of passed students = 1800 – 150 = 1650
Number of passed students = 50

1650
 Average mark of passed students = = 33
50
3. In a class of 50 students, 10 have failed and their average marks is 2.5. The total marks scored
by the entire class were 281. Find the average of those who have passed.
Solution:
The total marks of 50 students = 281

Less marks of 10 students who have failed = - 25
Marks of 40 students who have passed in the Examination = 256
256
 X of 40 students who have passed = = 6.4 marks
40

4. The average weight of the 10 different balls was 35.686 gms. The average of the first four
balls was 25.680 gms and that of the last three was 25.686 gms. If the average of the fifth
and the sixth balls was 0.042 gms greater than the weight of the seventh ball, what was the
weight of the seventh ball?
Solution:
Given,
The total weight of 10 balls = 35.686×10 = 356.86 gms
The total weight of first 4 balls = 25.686 × 4 = 102.72 gms
The total weight of last 3 balls = 25.686 × 3 = 77.058 gms
Let the weight of 7th ball may be x.
The average of the 5th and 6th ball was greater than 0.042 the weight of 7th ball.
Therefore, ̅̅̅̅̅
𝑋56 = 𝑥 + 0.042 𝑔𝑚𝑠
𝑥5 +𝑥6
= 𝑥 + 0.042
2
𝑥5 + 𝑥6 = 2(𝑥 + 0.042 )
𝑥5 + 𝑥6 = 2𝑥 + 0.084
We have now
Weight of 10 balls = weight of 4 balls + weight of 2 balls + x + weight of 3 balls.
The equation to be solved here is
356.86 = 102.72 + 2𝑥 + 0.084 + 𝑥 + 77.058

356.86 − 102.72 − 102.72 − 0.084 = 2𝑥 + 𝑥
356.86 − 102.72 − 0.084 − 77.058 = 3𝑥
176.998 = 3𝑥
𝑥 = 59 𝑔𝑚𝑠
Therefore, the weight of 7th ball is 59 grams.
5. The numbers 3.2, 5.8, 7.9 and 4.5 have frequencies x, (x+2), (x-3) and (x+6) respectively.
If the AM is 4.876, find x.
Solution:
X f fX fX
Numbers Frequency
3.2 x 3.2x 3.2x
5.8 x+2 5.8 (x + 2) 5.8x + 11.6
7.9 x-3 7.9 (x – 3) 7.9x – 23.7
4.5 x+6 4.5 (x + 6) 4.5x + 27.0
Total 4x + 5 21.4x+14.9

We have total of frequency
∑f = x + (x+2) + (x-3) + (x+6)
=x+x+2+x–3+x+6 = 4x + 5
∑fX = 3.2 + 5.8(x+2) + 7.9(x-3) + 4.59x+6)

= 3.2x + 5.8x + 11.6 + 7.9x – 23.7 + 4.5x + 27 = 21.4x + 14.9
We know that X =
 fx  4.876 = 21.4𝑥+14.9
N 4𝑥+5
4.876(4x +5) = 21.4x + 14.9

19.504x + 24.38 = 21.4x + 14.9
19.504x − 21.4x = 14.9 – 24.38
−1.896x = − 9.48
x=5
6. The mean weight of 100 workers in a factory is 50 kg. If the mean weight of men in the
factory is 55 kgs and that of women is 45 kgs, find the number of men and women in the
factory.
Solution: Let N1 denotes men.

N2 denotes women.
Let X 1 = men average weight
X 2 = women average weight
N1 + N2 = 100 given
X 1 = 55 kgs, X 2 = 45 kgs
X 1 2 = 50 kg N1 = ? N2 = ?
We know that X 12 =
(N X ) + (N
1 1 2 X2)
N1 + N 2
N1 + N2 = 100
N2 = 100 − N1
55 N1 + 45(100 − N 1 )
50 =
100
5000 = 55N1 + 4500 – 45 N1
5000 = 10 N1 + 4500
10 N1 = 5000 – 4500
10 N1 = 500
N1 = 50
We know that N1 + N2 = 100

Put N1 = 50,
50 + N1 = 100
N2 = 100 – 50 = 50
N1 = men = 50 N2 = women = 50
7. The mean age group of 100 children was 9.35 years. The mean age of 25 of them was 8.75
and that of 65 was 10.51 years. What was the mean age for the remainder?
Solution:
The first group of children may be N1
The second group of children may be N2
And N3 the number of remaining
X 1 = The first group children average age.
X 2 = The second group children average age.
X 3 = The mean age of remainder.
N1 + N2 + N3 = 100
X = 9.35 yrs
X=
(N X ) + (N
1 1 X 2 ) + (N 3 X 3 )
2
N1 + N 2 + N 3
2.5 * 8.75 + 65 *10.51 + 10 X 3
=
100
935 = 218.75 + 863.15 + 10 X 3
935 = 901.9 + 10 X 3
10 X 3 = 935 - 901.9
10 X 3 = 33.1
X 3 = 3.31
8. The mean age of 100 persons is 30 years. If the mean age of the group of men is 32 years
and that of the group of women is 27 years, find the number of men and women.
Solution:
Let the mean age of men may be X 1
Let the mean age of women may be X 2
Let the number of men may be N1
Let the number of women may be N2
N1 + N2 = 100
X = 30 yrs (Given)
X=
(N X ) + (N
1 1 2 X2)
N1 + N 2

32 N1 + 27(100 − N1 )
30 =
100
3000 = 32 N1 + 2700 – 27 N1
3000 = 5 N1 + 2700
-5 N1 = -3000 + 2700
5 N1 = 300
N1 = 36
Put N1 = 60 here
60 + N2 = 100
N2 = 100 – 60 = 40  Men = 60, Women = 40.
9. The mean weight of 150 students is 60 kg. The mean weight of boys is 70 kg and that of girls
is 55 kg. Find the number of boys and girls.
Solution:
Let the boys may be N1 and their average weight X 1
Let the girls may be N2 and their average weight X 2
X = given = 150
X 1 = 70; X 2 = 55
N1 + N2 = 150; N2 = 150 - N1
N1 = ? N2 = ?
We know that
X 12 =
(N1 X 1 ) + (N 2 X 2 )
N1 + N 2
70 N 1 + 55(150 − N 1 )
60 =
150
9000 = 70 N1 + 8250 – 55 N1
9000 = 8250 + 15N1
15 N1 = 9000 – 8250
15 N1 = 750
750
N1 = = 50
15
Put N1 = 50 here
50 + N2 = 100
N2 = 150 – 50 = 100
N1 = men = 50
N2 = women = 100

10. Find the missing frequency from the following distribution if its mean is 15.25.
X: 10 12 14 16 18 20
f: 3 7 ? 20 8 5
Solution:
X f fX
10 3 30
12 7 84
14 x 14x
16 20 320
18 8 144
20 5 100
N = 43 + x ∑f X = 678 + 14x
Let the missing frequency may be x
X =
 fx
N
678 + 14 x
15.25 =
43 + x
(43 + x) 15.25 = 678 + 14x
655.75 + 15.25 x = 678 + 14x
15.25 x − 14x = 678 − 655.75
1.25 x = 22.5
22.5
X= = 17.8
1.25
 The missing frequency is 17.8 or 18.
11. You are given the following incomplete information and the mean 25. Find out the
missing frequencies.
C.I 0-10 10-20 20-30 30-40 40-50 Total
F 5 - 15 - 5 45
Solution:
Let the missing frequency may be x and y. the total frequencies given = 45.
C.I Frequency m.p fm
f m
0-10 5 5 25
10-20 x 15 15x
20-30 15 25 375
30-40 20−x 35 700-35x
40-50 5 45 225
N = 45 ∑fx = 1325 – 20x
Total = 45
Frequencies = 5, x, 15, y, 5
Missing frequency y = 45 – 5 – x – 15 – 5

Missing frequency y = 45 – ( 5 + 15 + 5) – x
The sum of frequencies known = 5 + 15 + 5 = 25

x+ y + 25 – 25
x+ y = 45 – 25
 x + y = 20 …. (1)
X =
 fx
N
1325 − 20 x
25 =
45
By c.m, we get
25 * 45 = 1325 – 20 x
1125 = 1325 – 20 x
20 x = 200
x = 10
We know that x + y = 20 i.e., equation (1)
Put x = 10,
10 + y = 20
y = 20 – 10 =10
 x = 10; y = 10.
4.3.2 Merits and Demerits of Arithmetic Mean
Merits of Arithmetic Mean

• It is simple to understand and easy to compute
• It is based on each and every item in the series.
• Mean is rigidly defined.
• It is capable of further algebraic treatment.
• It is stable in relation to sampling fluctuations.
• It is not necessary to arrange the value in an array.
Demerits
• It is unduly affected by extreme values.
• In case of open-ended classes the value of mean cannot be computed without making
assumption of the size of the CI.
• Sometimes A.M. may be a value, which is not assumed by the variable.
• It cannot be found out graphically.
Weighted Arithmetic Mean

In computing simple A.M, it is assumed that all items are of equal importance. This may
not be the case always where items vary in importance; they must be assigned some weights in
proportion to their importance. The formula to calculate the weighted A.M is

xw =
Wx
W
Weights are numbers or percentages, which stand for relative importance of numbers.
1. A candidate obtains the following marks in P.U.C examination in 1998.

English Kannada Physics Chemistry Mathematics Biology
60 65 80 70 85 80
Find out weighted mean if weights are 1, 1, 3, 2, 4 and 1 respectively.
Solution:
Calculation of X W
P.U.C Exam 1998 Marks W WX
X
English 60 1 60
Kannada 65 1 65
Physics 80 3 240
Chemistry 70 2 140
Mathematics 85 4 340
Biology 80 1 80
∑W = 12 ∑WX = 925
Xw =
WX =
925
where,
W 12
= 77.083333 or 77 W = Weight
= 77 marks X = Variable marks
X W = a.m. of 1st group.
2. A contractor employs three types of workers – male, female and children. The wage for a
male and female worker is Rs.304 and Rs.20 respectively per day and to a child worker
Rs.10 per day. What is the average wage paid by the contractor?
Solution:
In this problem the weightage between male, female and children is not given and hence we can
take arbitrary weights or numbers 20, 15, 5 respectively.
Wage per day X W WX

30 20 600
20 15 300
10 5 50
∑W = 40 ∑WX = 950
30 + 20 + 10 60
1. Simple A.M. = = = Rs.20
3 3

∑ 𝑊𝑋 950
2. 𝑋𝑤 = ∑𝑊
= = 𝟐𝟑. 𝟕𝟓
40
Therefore Weighted mean = Rs. 23.75 per day.
3. The following table gives the marks of the candidates.
Subject Weights W Marks by candidates

X. Y
A 1 70 80
B 2 65 64
C 3 58 56
D 4 63 60
Find the weighted average marks of candidate by what figures would the second
candidate have had to increase his marks in subject ‘B’, all other marks remaining same,
in order that both the candidates have the same plate?
Solution:
Subjects Weight Marks by

W X Y WX WY
A 1 70 80 70 80
B 2 65 64 130 128
C 3 58 56 174 168
D 4 63 60 252 240
∑W = 10 ∑WX = 626 ∑WY = 616
X Student
Xw = 
WX 626
= = 62.6
 W 10
Y Student
Xw =
WX =
616
= 61.6
W 10
Y Student scored 10 marks (626 – 616 = 10) in total. Y’s individual score of marks in paper B is
less when compare to student X, student Y would have increased the marks in subject B where the
W is 2. So 10/2 is the marks he has to score in the subject B, in order to be equal with the marks
of X, (i.e., 5 marks).
Thus, Y’s marks are now,

Y’s marks = (80  1) + (64  5) + (56  3) + (60  4)
= 80 + 320 + 168 +240 = 808

4.4 MEDIAN
Median of a set of values is the middle most value when they are arranged in ascending order of
magnitude. It is a value greater than half of the values and less than remaining half. The median is
denoted by ‘M’. Median is a positional average the term position refers to the place of value in a
series. The place of median in a series is such that an equal number of items lie on either side.
4.4.1 Calculation of Median

(A) Individual observations
1. In case of individual observations, first the data is to be arranged in ascending order or

descending order of magnitude.
 n + 1  th
2. Formula used for individual observation is M =   term in a arrayed series
 2 
3. If there are even numbers of items in the series, then median is half way between the two
middle items. E.g.: - There are 10 items in a series. Their median M=5.5th term. Therefore
median value = average of 5 and 6th term.
B) Discrete series
• Arrange the data in ascending order.

• Find out less than cumulative frequency (cf).
N +1
• Look at the cf column, find the total which is equal to or just > than and
2
determine the value of the variable corresponding to it. That gives the value of the
median
C) Continuous series.
1. Find out less than Cf.

2. Find out the median class by locating in the Lcf, the value equal to or just greater than N /2.
Use the following formula to obtain the median.

N − m
M = L+ 2  c
 f 
 
Where, L= lower limit of the median class
N = Total frequency
M =cumulative frequency of the class preceding the median class.
F = frequency of the median class.
C= width of the median class

Problems
1. Find the median of the following.
Marks: 73 79 83 43 21 05 98 86 53
Solution:
Data should be arranged in ascending order. ( n = 9)
Marks: 5 21 43 53 73 79 83 86 98
n +1
Median = The size of th value
2
9 + 1 10
= = = 5 The size of 5th item = 73
2 2
Hence, median = 73 marks.
2. Calculate A.M and Median of the following data.

Wages of workers (per week in Rs.)
354 400 550 315 215 200 600 560
Solution:
In order to calculate median the given data should be arranged in ascending order
Calculate of a.m and median
Wages in Rs.
200
215
315
354
400
550
560
600
∑W = 3194 N = 8
mean =
X 3194
= = 399.25
n 8
n +1 8 +1 9
Median = the size of = = = 4.5
2 2 2
4 item + 5 item 354 + 400 754
th th
The size of 4.5th item = = = = 377
2 2 2
3. Calculate Median from the following data.

Income in Rs. 2500 800 1000 1200 1400 1600 1800 2000
No. of Workers 200 25 100 150 200 100 125 300

Solution:
Income arranged in No. of worker Cumulative
ascending order f frequency
800 25 25
1000 100 125
1200 150 275
1400 200 475
1600 100 575
1800 125 700
2000 300 1000
2500 200 1200
N + 1 1200 + 1 1201
Median = The size of = = = 600.5
2 2 2
The size of 600.5th item = 1800.
Hence, Median = Rs.1800.
4. Find the median from the following data.

Marks 0-10 10-20 20-30 30-40 40-50 50-60 60-70
Students 3 7 11 9 8 3 9
Solution:
Marks Students Cumulative
X f frequency
0-10 3 3
10-20 7 10
20-30 11 21 (c)
30-40 9 (f) 30 Median
40-50 8 38 class
50-60 3 41
60-70 9 50
N = 50
𝑁
−𝑐
2
Median = 𝐿 + ×ℎ
𝑓
where L = lower limit of the median class

N = Total number of items
c = cumulative frequency of the pre-median class
f = frequency of the median class
h = height of the median class

50
− 21
2
Median = 30 + × 10
9
25 − 21
Median = 30 + × 10
9
4
Median = 30 + × 10
9
40
Median = 30 +
9
Median = 30 + 4.44
Median = 34.44
5. From the following data compute median of the average deposit balance of savings for the
branch during March 2002.
Average
Less than
Deposit 100-200 200-300 300-400 400-500 500-600 600-700
100
Balance
No. of
26 68 145 242 188 65 16
Deposits
Solution:
Average of deposit No. of deposits Cumulative
X f frequency
0-100 26 26
100-200 68 94
200-300 145 239
300-400 242 481
400-500 188 669
500-600 65 734
600-700 16 750
𝑁
−𝑐
2
𝑓
where L = lower limit of the median class

N = Total number of items
c = cumulative frequency of the pre-median class
f = frequency of the median class
h = height of the median class
750
− 239
2
Median = 300 + × 100
242
375 − 239
Median = 300 + × 100
242
136
Median = 300 + × 100
242
13600
Median = 300 +
242
Median = 300+ 56.20

Median = 356.20
6. Calculate median form the following data.
Marks more than 0 10 20 30 40 50

No. of. Students 150 140 120 100 80 60
The given cumulative frequency distribution data should be converted into ordinary frequency
distribution.
Marks No. of students Less than

X f cumulative
frequency
0-10 = 150 – 140 10 10
10-20 = 140 – 120 20 30
20-30 = 120 – 100 20 50
30-40 = 100 – 80 20 70 ( = cf )
40-50 = 80 – 60 20 ( =f ) 90
50-60 = 60 60 150
More than 50 60
N 150
Median = The size of = = 75
2 2
The size of 75th item lies in the C.I. 40-50

N − cf
75 − 70 50
Median = L + 2  i = 40 +  10 = 40 +
f 20 20

= 40 + 2.5 = 42.5
7. Calculate median from the following data.
Less than 10 20 30 40 50 60 70 80 90
frequency 10 25 35 40 50 80 100 125 150
Solution:
Calculation of median.
C.I Frequency Less than

cumulative
frequency
0-10 10 10
10-20 (25-10 = ) 15 25
20-30 (35-25 = ) 10 35
30-40 (40-35 = ) 5 40
40-50 (50-40 = ) 10 50
50-60 (80-50 = ) 30 80
60-70 (100-80 = ) 20 100
70-80 (125-100 = ) 25 125
80-90 (150-125 = ) 25 150
N 150
2 2
The size of 75th item lies in the C.I. 50-60
N
− cf
2 75 − 50 250
Median = L +  i = 50 +  10 = 50 +
f 30 30
= 50 + 8.33 = 58.33
8. 10 percent of the workers in a firm employing a total of 1000 workers earn less than Rs. 5 per
day, 200 earn between Rs. 5 and 9,99. 30 percent between 10 and 14.99, 250 workers between
15 and 19.99 and the rest 20 and above what is the median age?
Solution:
Convert the given data into frequency distribution form.
Wages (in Rs.) No. of workers f cf

Below 5 10 100 100
1000
100
5-9.99 …… 200 300
10-14.99 30 300 600
1000 
100
15-19.99 …… 250 850
20 and above (rest) 150 1000
N 1000
2 2
The size of 500th item lies in class interval 10-14.99
But the real limits of this class are 9.995-14.995.

𝑁 1000
−𝑐 − 300
2 2
Median = 𝐿 + × ℎ = 9.995 + ×5 =
𝑓 300
1000
= 9.995 + = 9.995 + 3.3 = 13.33
300
9. In a group of 1000 workers the monthly wages of 24% are below Rs.90 and those of 15% are
90 and under Rs. 90, 15% earned Rs. 95 and under 100 and 5% get Rs. 100 and under 105.
The balance Rs. 105 and above. Find the median value.
Solution:
Wages in Rs. No. of workers f cf
Below 90 24% 24 240
1000  = 240
100
90 – 95 15% 15 390
1000  = 150
100
95 – 100 15% 150 540
100 – 105 5% 50 590
105 & above 41% 410 1000
𝑁 1000
−𝑐 − 390
2 2
Median = 𝐿 + × ℎ = 95 + ×5 =
𝑓 150
110
= 95 +
= 95+ 3.67 = 98.67
30
Hence, median wage = Rs. 98.67
10. You are given the following data. Find the missing frequency when median is 50.
Expenditure (in Rs.) 0 -20 20-40 40-60 60-80 80-100
Frequency 14 ? 27 21 15

Solution:
Let the missing frequency may be f1.
Expenditure (in Rs.) No. of families c.f

f
0-20 14 14
20-40 f1 14+ f1
40-60 27 41+ f1
60-80 21 62+ f1
80-100 15 77+ f1
The given median is 50.

N 77 + f1
Therefore, the median class is 40-60 and here =
2 2
𝑁
−𝑐
2
𝑓
77+𝑓1
−(14+𝑓1 )
2
50 = 40 + × 20
27
77+𝑓1 −28−2𝑓1
50 = 40 + × 20
2×27
77+𝑓1 −28−2𝑓1
50 − 40 = × 20
2×27
77+𝑓1 −28−2𝑓1
10 = × 20
2×27
540
= 77 + 𝑓1 − 28 − 2𝑓1
27
27 = 77 + 𝑓1 − 28 − 2𝑓1
27 − 77 + 28 = 𝑓1 − 2𝑓1
−22 = −𝑓1
𝒇𝟏 = 𝟐𝟐
11. An incomplete distribution is given below:
Height 5.1-6.0 6.1-7.0 7.1-8.0 8.1-9.0 9.1-10.0 10.1-11.0 11.1-12

(in inches)
No. of plants 3 8 27 - 17 11 9
Given medium height of a plant is 8.53 Inches.
Solution:
Let the missing frequency may be x. The given inclusive class interval should be converted into
exclusive class interval. Subtract 0.05 from the lower limit and add 0.05 to the upper limit.

Height in Inches No. of plants (f) c.f.
5.05 - 6.05 3 3
6.05 - 7.05 8 11
7.05 - 8.05 27 38
8.05 - 9.05 x 38+x
9.05 - 10.05 17 55+x
10.05 - 11.05 11 66+x
11.05 - 12.05 9 75+x
N = 75+x
The given median is 8.53 inches. Therefore the median class is 8.05 – 9 .05
𝑁
−𝑐
2
𝑓
We have from the above table, L = 8.05; c = 38 ; f = x; and h = 1
75+𝑥
− 38
2
Median = 8.05 + ×1
𝑥
75+𝑥 − 76
8.53 = 8.05 +
2𝑥
75+𝑥 − 76
8.53 − 8.05 =
2𝑥
0.48 × 2𝑥 = 75 + 𝑥 − 76
0.96𝑥 − 𝑥 = −1
−0.04𝑥 = −1
1
𝑥=
0.04
𝒙 = 𝟐𝟓
Hence, missing frequency = 25.
10. An income distribution is given below. Its median is 2,600 and computes the value of a.m.
by completing the distribution.
Size 1000- 1500- 2000- 2500- 3000- 4000 5000- Total

1500 2000 2500 3000 4000 -5000 6000
Frequency 120 ? 400 500 ? 50 20 1500
Solution:
Size Frequency cf Size m.p f fx

1000-2000 120 120 1000-1500 1250 120 150000
1500-2000 x 120 + x 1500-2000 1750 130 227500
2000-2500 400 520 + x 2000-2500 2250 400 900000
2500-3000 500 1020 + x 2500-3000 2750 500 1375000

3000-4000 410 – x 1430 – x 3000-4000 3500 280 980000
4000-5000 50 1070 – x 4000-5000 4500 50 225000
5000-6000 20 1090 – x 5000-6000 5500 20 110000
N = 1500 ∑f x =
3967500
Given, Median = 2600; Therefore, the median class is 2500 – 3000.

𝑁
−𝑐
2
𝑓
We have from the above table, L = 2500; c = 520 + x ; f = 500; and h = 500
1500
−(520+𝑥)
2
2600 = 2500 + × 500
500
750 −520−𝑥
2600 − 2500 = × 500
500
100 = 230 − 𝑥
100 = 230 − 𝑥
𝑥 = 230 − 100
𝑥 = 130
Therefore, frequency of the class interval 1500 – 2000 is 130 and
Frequency of the class interval 3000 – 4000 is 410 – 130 = 280.
1 3967500
𝑋̅ = ∑ 𝑓𝑥 = = 𝑅𝑠. 2645
𝑛 1500
Merits and Demerits of Median
Merits
Merits
1. It is rigidly defined.
2. It is simple to understand and easy to compute.
3. It is not affected by extreme values.
4. It can be computed for distribution with open-ended classes.
5. It can also be obtained graphically.
6. It can be used for the study of qualitative data.
Demerits
1. It is necessary to arrange the data in the order of magnitude.
2. It is not based on each and every item of the distribution.
3. It is not suitable for further mathematical treatment.
4. It is more affected by sampling, fluctuations compared to A.M.
5. In case of even number of observations, for ungrouped data median cannot be determined
exactly.

4.5 Partition values
Partition values are those values which divide the distribution in equal ratio. Some of the
important partition values are quartiles, deciles and percentiles.
Quartiles are three values of the distribution which divide them into four equal parts.
• The first quartile Q1 is known as lower quartile, which divide the distribution in the ratio
1:3.
• The second quartile Q2 is but median, which divide the distribution in the ratio 2: 2.
• The third quartile Q3 is known as upper quartile, which divide the distribution in the ratio
3:1.
Calculation of Quartiles
A) Individual observations/ raw data.

In case of individual observations, first the data is to be arranged in ascending order or
descending order of magnitude.
The formula used finding the rth quartile is,
𝑖(𝑛+1)
𝑄𝑖 = 4 th term in a arrayed series, r = 1,2,3.
B) Discrete series
1. Arrange the data in ascending order.
2. Find out less than cumulative frequency (lcf).
rN
3. Look at the lcf column, find the total which is just greater than or equal to and
4
determine the value of the variable corresponding it gives the value of the rth quartile, r =
1,2,3
C) Continuous series.
1. Find out less than CF.
2. Find out the ith quartile class by locating in the LCF, the value equal to or just greater than
𝑖𝑁
in the LCF.
4
3. Use the following formula to obtain the ith quartile.
𝑖×𝑁
−𝑐
4
𝑄𝑖 = 𝐿 + ×ℎ
𝑓
Where, L= lower limit of the ith quartile class

N = Total frequency
c = cumulative frequency of the class preceding the ith quartile class.
f = frequency of the ith quartile class.
c= width of the ith quartile class

1. Calculate quartiles, median from the following.
Marks : 22, 26, 14, 30, 18, 11, 35, 12, 32, 41
Solution:
Marks arranged in ascending order 11, 12, 14, 18, 22, 26, 30, 32, 35, 41
N + 1 10 + 1 11
Q1 = The size of = = = 2.75th item
4 4 4
The size of 2.75th item
= 2nd item + 0.75 (3rd item – 2nd item)
=12 + 0.75 (14 – 12) = 12 + 0.75  2
= 12 + 1.50 = 13.5 marks
𝑁+1 𝑁+1 10+1

Q2 = Median = The size of 2 ( ) = ( )= ( ) = 5.5th item
4 2 2
The size of 5.5th item
= 5th item + 0.5 (6th item – 5th item)
= 22 + 0.5  4
= 22 + 2 = 24
𝑁+1 𝑡ℎ 10+1
Q3 = The size of 3 ( 4 ) 𝑖𝑡𝑒𝑚 = 3 ( 4 ) = 8.25𝑡ℎ 𝑖𝑡𝑒𝑚
The size of 8th item + 0.25 (9th item – 8th item)
= 32 + 0.25 (35 – 32) = 32 + 0.75
= 32.75 marks
𝑸𝟑 −𝑸𝟏 𝟑𝟐.𝟕𝟓−𝟏𝟑.𝟓
Quartile deviation = = = 𝟗. 𝟔𝟐𝟓
𝟐 𝟐
𝑸 −𝑸 𝟑𝟐.𝟕𝟓−𝟏𝟑.𝟓
Coefficient of Quartile deviation = 𝑸𝟑 +𝑸𝟏 = 𝟑𝟐.𝟕𝟓+𝟏𝟑.𝟓 = 𝟎. 𝟒𝟏𝟔
𝟑 𝟏
2. Calculation Q1, Q3, X and median from the following data.
Wages (X) 20 40 60 80 100 120 140 160

No.of workers ( f ) 3 20 60 18 12 17 18 22
Solution:
Wages No. of workers fX c.f
(in Rs.) f
20 3 60 3
40 20 800 23
60 (Q1) 60 3600 83
80 (Q2) 18 1440 101
100 12 1200 113
120 (Q3) 17 2040 130
140 18 2520 148
160 22 3520 170
N = 170 ∑fm = 15180

X=
 fm = 15180 = 89.29
N 170
X = Rs.89.29
N +1 170 + 1 171
Q1 = The size of = = = 42.75
4 4 4
The size of 42.75 = 60
Therefore, Q1 = 60
 N +1
Q3 = The size of 3   = 42.75  3 = 128.25
 4 
The size of 128.25th item = 120.
Hence, Q3 = 120.
N + 1 170 + 1 171
Median (Q2) = The size of = = = 85.5
2 2 2
The size of 85.5th item = 80
Median = 80.
𝑸𝟑 −𝑸𝟏 𝟏𝟐𝟎−𝟔𝟎
Quartile deviation = = = 𝟑𝟎
𝟐 𝟐
𝑸 −𝑸 𝟏𝟐𝟎−𝟔𝟎
Coefficient of Quartile deviation = 𝑸𝟑 +𝑸𝟏 = 𝟏𝟐𝟎+𝟔𝟎 = 𝟎. 𝟏𝟔𝟕
𝟑 𝟏
Calculation of Quartiles – Continuous Series
3. Calculate Q1 and Q3 for the following data. Also find QD and Coefficient of QD..
Weekly wages 0-20 20-40 40-60 60-80 80-100 100-120 120-140

No. of workers 20 30 50 60 80 40 20
Solution:
No. of persons Less than
Weekly wages
f cumulative frequency
0-20 20 20
20-40 30 50
40-60 50 100 (Q1 class)
60-80 60 160 (Q2 class)
80-100 80 240 (Q3 class)
100-120 40 280
120-140 20 300

N 300
The size of = = 75
4 4
The size of 75th item lies in the C.I. 40-60.

75 − 50
𝑁
−𝑐 500
Q1 = 𝐿 + 4 𝑓 × ℎ = 40 +  20 = 40 +
50 50
= 40 + 10 = 50
N
Q3 = The size of  3 = 75  3 = 225
4
3𝑁
−𝑐 225 − 160
4
Q3 = 𝐿 + × ℎ = 80 + × 20
𝑓 80
= 80 + 16.25 = 96.25
2𝑁
−𝑐 150 − 100
4
Q2 = 𝐿 + × ℎ = 60 + × 20
𝑓 60
= 60 + 16.67 = 76.67
Inter-Quartile Range = Q3 – Q1 = 96.25 – 50 = 46.25
Semi-Inter-Quartile Range (or) Quartile Deviation

𝑸 −𝑸 𝟗𝟔.𝟐𝟓−𝟓𝟎
Quartile Deviation = 𝟑 𝟐 𝟏 = = 𝟐𝟑. 𝟏𝟐𝟓
𝟐
𝑸𝟑 −𝑸𝟏 𝟗𝟔.𝟐𝟓−𝟓𝟎
Coefficient of Quartile Deviation = = = 𝟎. 𝟑𝟏𝟔
𝑸𝟑 +𝑸𝟏 𝟗𝟔.𝟐𝟓+𝟓𝟎
Deciles: are the values which divide the distribution into 10 equal parts.
𝑖𝑁 1×300
−𝑐 − 20
Di = 𝐿 + 10 𝑓 ×ℎ D1 = 20 + 10
× 20 = 26.67
30
where
Di = ith Decile
L = lower limit of the Di class
N = Total frequency
c = Cumulative frequency of pre-Di class
f = Frequency of Di class
h = Height of Di class
𝑁 300
−𝑐 − 20
10 10
D1 = 𝐿 + × ℎ = 20 + × 20 = 𝟐𝟔. 𝟔𝟕 (1/10 th 300 = 30)
𝑓 30
6×𝑁 6×300
−𝑐 − 160
10 10
D6 = 𝐿 + × ℎ = 80 + × 20 = 𝟖𝟓 (6/10 th 300 = 180)
𝑓 80
8×𝑁 8×300
−𝑐 − 160
10 10
D8 = 𝐿 + × ℎ = 80 + × 20 = 𝟏𝟎𝟎 (8/10 th 300 = 240)
𝑓 80

Percentiles:
𝑖𝑁
−𝑐
Pi = 𝐿 + 100𝑓 ×ℎ
where
Pi = ith Percentile
L = lower limit of the Pi class
N = Total frequency
c = Cumulative frequency of pre-Pi class
f = Frequency of Pi class
h = Height of Pi class
P65 and P48
4. Find Mean, Median, and Quartiles.

Weekly wages 20 - 29 30-39 40-49 50-59 60-69 70-79
No. of workers 15 30 50 80 40 35
Solution:
The given inclusive distribution has to be converted into exclusive form. The procedure to be
adopted here is very simple. The difference between upper limit and lower limit of any class is
one. Divide it by 2 to get 0.5. Deduct this 0.5 from lower limit and add 0.5 to the upper limit of all
classes so that the distribution can be converted into exclusive form or continuous frequency
distribution.
Wages in Rs. No. of workers m.p d' fd' cf

19.5 - 29.5 15 24.5 -2 -30 15
29.5 - 39.5 30 34.5 -1 -30 45
39.5 - 49.5 50 44.5 0 0 95
49.5 - 59.5 80 54.5 1 80 175
59.5 - 69.5 40 64.5 2 80 215
69.5 - 79.5 35 74.5 3 105 250
∑ fd'=205
𝑁 250
−𝑐 − 45
4 4
Q1 = 𝐿 + × ℎ = 39.5 + × 10 = 𝟒𝟑
𝑓 50
2𝑁 250
−𝑐 − 95
4 2
Q2 = 𝐿 + × ℎ = 49.5 + × 10 = 𝟓𝟑. 𝟐𝟓
𝑓 80
3𝑁 3×250
−𝑐 − 175
4 4
Q3 = 𝐿 + × ℎ = 59.5 + × 10 = 𝟔𝟐. 𝟔𝟐𝟓
𝑓 40
Inter-Quartile Range = Q3 – Q1 = 62.625 – 43 = 19.625

Semi-Inter-Quartile Range (or) Quartile Deviation

𝑸𝟑 −𝑸𝟏 𝟔𝟐.𝟔𝟐𝟓−𝟒𝟑
Quartile Deviation = = = 𝟗. 𝟖𝟏𝟐𝟓
𝟐 𝟐
𝑸 −𝑸 𝟔𝟐.𝟔𝟐𝟓−𝟒𝟑
Coefficient of Quartile Deviation = 𝑸𝟑 +𝑸𝟏 = = 𝟎. 𝟏𝟖𝟔
𝟑 𝟏 𝟔𝟐.𝟔𝟐𝟓+𝟒𝟑
Range = Largest value – Smallest value

R = 79.5 – 19.5 = 60
𝑳−𝑺
Coefficient of Range = 𝑳+𝑺
𝟕𝟗.𝟓−𝟏𝟗.𝟓
Coefficient of Range = 𝟕𝟗.𝟓+𝟏𝟗.𝟓 = 𝟎. 𝟔𝟎𝟔
X = A+
 fd'  c
N
205
= 44.5 + 10
250
2050
= 44.5 +
250
= 44.5 + 8.2 = 52.7
N 250
The size of = = 125
2 2
The size of 125th item lies in the C.I = 49.5-59.5

N
− cf
Q3= L + 2 c
f
125 − 95
= 49.5 + 8
80
240
= 49.5 +
80
= 49.5 + 3 = 52.5
N 250
The size of = = 62.5
4 4
The size of 62.5th item lies in the C.I 39.5-49.5

N
− cf
Q1 = L + 4 c
f
62.5 − 45
= 39.5 +  10
50

175
= 39.5 +
50
= 39.5 + 3.5 = 43
3N
The size of = 62.5  3 = 187.5
4
The size of 187.5th item in the C.I 39.5-49.5

3N
− cf
Q3 = L + 4 c
f
187.5 − 175
= 59.5 +  10
40
125
= 59.5 +
40
= 59.5 + 3.125 = 62.625
X = 52.7, Median = 53.25 Q1 = 43 & Q3 = 65.625
5. Find P30, P65 and P87 for the following distribution.
Weekly wages 20 - 29 30-39 40-49 50-59 60-69 70-79

No. of workers 15 30 50 80 40 35
Solution:
Wages in Rs. No. of workers Cumulative
frequency
19.5 - 29.5 15 15
29.5 - 39.5 30 45
39.5 - 49.5 50 95
49.5 - 59.5 80 175
59.5 - 69.5 40 215
69.5 - 79.5 35 250
𝒊×𝑵
−𝒄
𝟏𝟎𝟎
𝑷𝒊 = 𝑳 + ×𝒉
𝒇
30×250
− 45
100
𝑷𝟑𝟎 = 39.5 + × 10 = 𝟒𝟓. 𝟓 (30/100 of 250 = 75)
50
65×250
− 95
100
𝑷𝟔𝟓 = 𝟒𝟗. 𝟓 + × 10 = 𝟓𝟕. 𝟗𝟒 (65/100 of 250 = 162.5)
80
87×250
− 215
100
𝑷𝟖𝟕 = 𝟔𝟗. 𝟓 + × 10 = 𝟕𝟎. 𝟐𝟏 (87/100 of 250 = 217.5)
35

5: The rate of sales tax as a percentage of sales, paid by 400 shopkeepers of a market during an
assessment year ranged from 0 to 25%. The sales tax paid by 18% of them was not greater than
5%. The median rate of sales tax was 10% and 75% percentile of sales tax was 15%. If only 8%
of shopkeepers paid sales tax at a rate of greater than 20% but not greater than 25%, summarize
the information in the form of frequency distribution taking intervals of 5%. Also find the modal
rate of sales tax.
Solution: Form the various data given in the question, we can take 5 as the class interval.
The first class will be 0-5 and the frequency will be 18% of 400 or 72.
Therefore, the next class will be 5 – 10. Its frequency is calculated as follows.
n
− Cf
2 200 − 72
Median = L + i = 5+  i  f = 128
f 128
The next class will be 10-15. Its frequency is calculated as follows:
 n 
75  − Cf
 100  300 − 200
P15 = L +  i  15 = 10 +  5  f = 100
f f
The last class will be 20-25 and its frequency will be 8% of 400 or 32.
Thus, the penultimate class will be 15-20 and its frequency will be 68.
Classes Number of shopkeepers
(Sales tax paid in %) f
0–5 72 f
5 – 10 128 f1
10 – 15 100 f3
15 – 20 68
20 – 25 32
N = 400
4.6 MODE
(Using direct & step deviation method only & excluding missing frequency problems)
The mode or modal value is that value in a series of observation which occurs with greatest
frequency mode is the most fashionable or typical value of a distribution because it is repeated
highest number of times in a series. According to Croxten and Cowden the mode of a distribution
is the value at the point around which the items tend to be heavily concentrated.
Calculation of Mode
Calculation of Mode for continuous series ascertains the modal class by inspection i.e. the class
with highest frequency. This determines the value of mode by applying the following formula.
1
Mode = l + XC
1 +  2
Where, l = lower limit of the model class

1 = the difference between frequency of modal class and frequency of pre-modal class (ignoring
signs) always positive. = f1-f0
2 = the difference between the frequency of the modal class and the frequency of the post model
class or succeeding class (ignoring signs) = f1-f2
c= class width of the modal class.
 f1 − f 0 
Mode = 1+   *C
 2 f1 − f 0 − f 2 
Where l = lower limit of modal class
f1 = Frequency of modal class
f0 = Frequency of preceding the modal class
f2 = frequency of proceeding the modal class
C=Width of C.I
Note while applying the above formula for calculating mode, it is necessary to see that the CI is
uniform throughout. If they are unequal, on the assumption that the frequencies are uniformly
distributed throughout the class the class intervals are re-distributed.
Grouping and Analysis Table
We apply grouping and analysis method under the following situations to ascertain the
modal class.
• If the differences between maximum frequency and frequency preceding it or succeeding
it are very small and the items are concentrated on either side, it is desirable to prepare a
grouping table and analysis table.
• If the given distribution is bi-modal or multi-modal distribution.
Note:
1. Generally modal class will be the class with highest frequency but sometimes it may be a class
other than the class with highest frequency. In such situations, mode is obtained by the formula:
cf 2
Mode = l +
f0 + f2
2. If there is a tie in the modal class, we use the empirical relation between mean median and mode
given by
Mode = 3 median –2 mean.
3. If the highest frequency class is the same as modal class using grouping and analysis method
 f1 − f 0 
given by Mode = l +  
 2 f1 − f 0 − f 2 
Merits and Demerits of Mode
Merits

1. The logic behind its computation is logical and easily understood.
2. It can be easily computed.
3. Even when some of the extreme values are missing it can be computed.
4. It is not affected by extreme values.
5. It can be used for study of qualitative data.
6. It can be graphically found out.
Demerits
1. It is not based on all values.
2. It cannot be used in deep statistical analysis.
3. It is not as stable as A.M.
4. For some frequency distributions mode is ill defined.
Empirical Relationship between mean, median and mode

Slightly skewed distribution, the mean, median and mode show a rough relation among
themselves.
Mean – Mode = 3 (mean –median) the above relation can also be written as
Mode = 3 Median –2 Mean.
Find mode for the following data.
2, 5, 2, 3, 5, 5, 6, 4, 5, 3, 5, 2, 7, 1 5 = 5 times
Since 5 is repeated very often, Mode = 5 2 = 3 times
3 = 2 times
7, 10, 7, 8, 10, 11, 9, 10, 8, 10, 7, 10, 8, 6
Since 10 is repeated very often, Mode = 10
1. Calculate mode from the following data.

Monthly rent (Rs.) 400 800 1200 1600 2000 2400 2800
No.of families 50 101 253 300 250 95 43
Solution:
By inspection we can say the modal value or size or rent is Rs.1600 since this value is
occurring most number of times. i.e.300.
2. Calculate mean, median and mode of the following.

No. of children per family 1 2 3 4 5 6 7
No. of families 6 8 10 14 10 8 2
Solution:
No. of Children per No. of families fX c.f

family(X) (f)
1 6 6 6
2 8 16 14

3 10 30 24
4 14 56 38
5 10 50 48
6 8 48 56
7 2 14 58
N = 58 ∑fm = 220
X =
 fx220
== 3.79
N 58
N 58
2 2
The size of 29th item = 4. Hence, median = 4.
Mode = By inspection we can say mode is 4 since it is the variable around with maximum
Frequency is occurring.
3. Calculate the modal value from the following.
Profits per shop No. of shops

0-100 12
100-200 18
200-300 27
300-400 24
400-500 10
500-600 6
Solution:
Profits per shop No. of shops
0-100 12
100-200 18 f0
200-300 27 f1
300-400 24 f2
400-500 10
500-600 6
By inspection we can say mode lies in the C.I “200-300” – Here we can apply directly the formula
because it is uni-modal distribution.
𝒇𝟏 − 𝒇𝟎
𝑴𝒐𝒅𝒆 = 𝑳 + ×𝒉
𝟐𝒇𝟏 − 𝒇𝟎 − 𝒇𝟐
where, L = Lower limit of modal class
f1 = the frequency of the modal class
f0 = the frequency of the pre-modal class
f2 = the frequency of the post-modal class
h = height of the modal class

27 − 18
𝑀𝑜𝑑𝑒 = 200 + ( × 100) = 𝟐𝟕𝟓
2 × 27 − 18 − 24
Find mode for the following data.
Distance travelled (in kms.) No. of executives

0 – 9,999 35
10,000 – 19,999 50
20,000 – 29,999 65
30,000 – 39,999 80
40,000 – 49,999 72
50,000 – 59,999 24
60,000 – 69,999 18
The given data is discontinuous.

First, convert the data into continuous class interval type (exclusive class interval).
Subtract 0.5 from the lower limit and add 0.5 to the upper limit of all class intervals.
Distance travelled (in kms.) No. of executives

0 – 9,999.5 35
9,999.5 – 19,999.5 50
19,999.5 – 29,999.5 65
29,999.5 – 39,999.5 80
39,999.5 – 49,999.5 72
49,999.5 – 59,999.5 24
59,999.5 – 69,999.5 18
𝒇𝟏 − 𝒇𝟎
𝑴𝒐𝒅𝒆 = 𝑳 + ×𝒉
𝟐𝒇𝟏 − 𝒇𝟎 − 𝒇𝟐
80 − 65
𝑀𝑜𝑑𝑒 = 29999.5 + × 10000 = 𝟑𝟔, 𝟓𝟐𝟏. 𝟐𝟒
2 × 80 − 65 − 72
4.7 Summary
• The concept of concentration of values around a central value is central tendency. The
central value around which all other values are concentrated is measure of central
tendency.
• Types of central measures:
1. Arithmetic mean
2. Median
3. Mode
• Arithmetic mean is the average
 Wx
• The weighted A.M is x W =
W
• Median is the middlemost value

• Mode is most frequently occurring value.
Central measure Raw data Discrete data Continuous data

Arithmetic mean-  fx
x x=
direct method  fx N
x= x=
n N
Short-cut method  fd
d x = A+
 fd N
x = A+ x = A+
n N
Step deviation  fd  fd
method d x = A+ d1 x = A+ c
x = A+ c N N
n
Median  n + 1 M=the value of x N 
M =
 2 
 th N +1  2 − m
just > than M=L+   Xc
term in a arrayed 2  f 
series. in the lcf  
Quartiles  n +1 Qr =the value of N 
Qr = r   4 − m
 4  x just > than
Qr = L +   Xc
N +1 f
th in the lcf ;  
term in a arrayed 4  
series; r=1,2,3 r=1,2,3 ; r=1,2,3
Mode Z = most Z = most  f1 − f 0 
frequently frequently Z= l+  
occurring value occurring value  2 f1 − f 0 − f 2 
4.8 Questions
Section A (2 Marks)
1. What is the meaning of Measures of central tendency? (Refer 2.5)
2. State the requisites of central tendency. (Refer5.2)
3. State any 4 limitations of an average. (Refer 5.2)
4. What are the types of Averages? (Refer 5.2)
5. Mention the formula used to calculate Arithmetic mean using step deviation method. (Refer
5.3)
6. State 2 merits and 2 demerits of Arithmetic mean. (Refer 5.3)
7. What is the meaning of Median? (Refer 5.4)
8. Mention the formula used to calculate Median for continuous series. (Refer 5.4)
9. State 2 merits and 2 demerits of Median. (Refer 5.4)
10. What are quartiles? (Refer 5.5)
11. What are the different types of quartiles? (Refer 5.5)

12. What is mode? (Refer 5.6)
13. Mention the formula used to calculate Mode for continuous series. (Refer 5.6)
14. State 2 merits and 2 demerits of Mode. (Refer 5.6)
Section B & Section C (5 Marks & 14 Marks Questions)
1. Find the mode for the following data

a. 2, 5, 2, 3, 5, 5, 6, 4, 5, 3, 5, 2, 7, 1 (Answer : 5 )
b. 7, 10, 7, 8, 10, 11, 9, 10, 8, 10, 7, 10, 8, 6 (Answer : 10 )
c.
X 0 10 20 30 40 50 60 70 80
F 4 5 8 11 25 16 12 12 1
(Answer : 40)
d.
X 25 35 45 55 65 75 85
F 10 12 17 22 16 15 11
(Answer : 55 )
2. Find Arithmetic Mean

a. 23, 25, 29, 21, 26. (Answer : 24.8)
b. 48, 57, 62, 55, 63, 71, 68, 53 (Answer : 59.625 )

c. 37.5, 44.6, 43.0, 41.8, 46.3 (Answer : 42.64 )
3. Find Median
a. 23, 27, 15, 18, 25, 28, 30, 20, 25
b. 47.2, 45.0, 51.2, 45.7, 50.6, 51.2, 46.3, 43.1, 44.5
4. Find median for the following discrete frequency distribution

x 10 15 20 25 30
f 2 4 7 4 2
x 25 35 45 55 65 75 85 5.
f 13 18 21 19 15 12 9
6. Find A.M. for the following discrete frequency distribution
x 5 10 15 20 25 30
f 3 7 12 15 7 6
[Ans. 18.4]
7. Find Arithmetic Mean

Classes 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90
F 8 11 14 15 18 16 10 8
[Ans. 50.2]
8. Find median of the following data.
Classes 10-15 15-20 20-25 25-30 30-35 35-40 40-45
F 13 15 18 16 18 12 8
[Ans. 26.45]
9. Find median for the following frequency distributions.

Classes 10-19 20-29 30-09 40-49 50-59 60-69 70-79
F 9 16 12 25 15 12 11
10. Calculate Median

Classes 40-50 50-60 60-70 70-80 80-90 90-100 100-110 110-120
F 5 8 12 15 16 13 9 6
[Ans. 81.25]
11.
C.I 20-40 40-60 60-80 80-100 100-120 120-140 140-160 160-180
F 11 18 23 25 21 9 15 8
[Ans. 90.4]
12. Calculate the value of Mean and median from the following data.
Marks (Less than) No. of students

80 100
70 90
60 80
50 60
40 32
30 20
20 13
10 5
Classes: 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80
Frequencies: 5 8 7 12 28 20 10 10
[Ans. Mean = 45, Median = 46.4286]

13. Obtain the mean and mode for the following distribution
Classes 0-10 10- 20- 30- 40- 50- 60- 70- 80-
20 30 40 50 60 70 80 90
F 32 65 100 184 288 167 98 46 20
[Ans. Mean = 43.74, Mode = 44.6222]
14. Find the mean and mode for the following frequency distribution
Classes 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-99
F 41 52 61 180 67 45 40 14
[Ans. Mean = 53.4, Mode = 54.6293]
15. Obtain the mean and mode for the following distribution.
Classes 0-10 10-20 20-30 30-40 40-50 50-60
F 8 15 23 31 17 6
[Ans. Mean = 30.2, Mode = 33.6364]
16. Calculate Mean and Mode for the following frequency distribution.
Classes 0-5 5-10 10-15 15-20 20-25 25-30 30-35
F 15 16 23 50 22 10 9
[Ans. Mean = 16.26, Mode = 17.3333]
17. Calculate mean and mode for the following data:

Marks Less Less Less Less Less Less Less Less
than than than than than than than than
10 20 30 40 50 60 70 80
No. of 15 35 60 84 96 127 198 250
students
[Ans. Mean = 50.4, Mode = 28.33]
18. Find the missing frequency for the following data when arithmetic mean is 28 and hence
calculate mode from it.
Classes 0-10 10-20 20-30 30-40 40-50 50-60
F 12 18 27 …. 17 06
[Ans. 20]
19. Calculate the median and mode for the following distribution.
Classes 15-25 25-35 35-45 45-55 55-65 65-75 75-85 85-95
frequencies 8 10 15 25 40 20 15 7
[Ans. Med = 58, Mode = 29.28]

20. Find mean, median and mode for the following data.
Classes 0-9 10-19 20-29 30-39 40-49
frequencies 1 15 10 7 3 50-59
[Ans. Mean = 5, Med. = 5, Mode = 6]
21. Calculate the arithmetic mean and median of the frequency distribution given below.
Hence calculate the mode using the empirical relation of these averages.
Classes Frequency
130-134 5
135-139 14
140-144 28
145-149 24
150-154 18
155-159 10
160-164 1
[Ans. Mean = 45.5 Med = 45.125, Mode = 43.3889]
22. Find the mean, median and mode the following distribution.
Monthly rent No. of families
(in Rs.) (Paying rent)
20-40 6
40-60 9
60-80 11
80-100
100-120 20
120-140 15
140-160 10
160-180 8
180-200
[Ans. Mean = 110, Med = 110, Mode = 110.9091]
23. Calculate A.M., median and mode for the following data.
Marks No. of students
More than 0 200
More than 10 190
More than 20 172
More than 30 142
More than 40 110
More than 50 70
More than 60 50
More than 70 35

More than 80 22
More than 90 10
More than 100 00
24. Calculate A.M., median and mode for the following data.
Marks No. of students

More than 30 100
More than 35 92
More than 40 80
More than 45 62
More than 50 40
More than 55 24
More than 60 14
More than 65 6
More than 70 0
25. A candidate obtains the following marks in P.U.C. examination in 1998.

English Kannada Physics Chemistry Mathematics Biology
60 65 80 70 85 80
Find out weighted mean of weights are 1, 1, 3, 2, 4 and 1 respectively.
26. In a frequency distribution of 100 families given below, the number of families
corresponding to expenditure group Rs. 600-800 is missing from the table. However the
median is to be Rs.500. Find the missing frequency.
Expenditure
Group (Rs.) 0-200 200-400 400-600 600-800 800-100
No. of families 15
14 23 27 ?

27. Calculate the model size of collar from the following data:
Size of collar (in inches 12.0 12.5 13.0 13.5 14.0 14.5 15.0 15.5
No. of persons wearing it 10 28 38 42 45 15 8 7
(Hint : use Grouping and Analysis Table)
28. Find the value of missing frequencies for the following incomplete distribution by using
appropriate formula when mode value given is 36.
Variable Frequency
0 – 10 5
10 – 20 7
20 – 30 --
30 – 40 --
40 – 50 10
50 – 60 6
N=50
29. A marketing research firm in collaboration with the local trade association collected data of
profitability of 250 firms is state capital for a year and the following data were obtained:
Profit/Losses (RS.Crores) No. of firms

-10 - -5 12
-5 – 0 19
0–5 38
5 – 10 45
10 – 15 70
15 – 20 33
20 – 25 25
25 - 30 8
Calculate Mean, Median, Mode and Standard deviation.

30. Mumbai suffered an estimated loss of over Rs.5,000 crores due to floods in August, 2005. A
number of retail outlets that were insured against flood loss filed insurance claims. According to
an expert, insurance companies settled the following claims.
Amount of error No. of

(Rs.) consumers
500 – 1000 7
1000 – 1500 16
1500 – 2000 25
2000 – 2500 47
2500 – 3000 82
3000 – 3500 58
3500 – 4000 29
4000 – 4500 12
4500 - 5000 5

Calculate Mean, Median, Mode and Standard deviation.
31. The data given below relate to sale of diesel at a petrol pump situated near Panipat on
National Highway No.1. Calculate model sale of diesel per vehicle. Also construct a histogram
and locate mode.
Diesel (litres) No. of vehicles Diesel (litres) No. of vehicles

0–5 328 20-25 598
5 – 10 350 25-30 524
10 – 15 720 30-35 378
15 - 20 664 35-40 244

MEASURES OF DISPERSION
Learning Objectives
• To Understand Measures of Variation
• To Understand Range and coefficient of range
• To Understand Quartile deviation and coefficient of QD
• To Understand Mean deviation and coefficient of MD
• To Understand Standard deviation and coefficient of variation
Meaning and Objectives of Measures of Variation
Meaning
The measure of scatterness or spread of the values in a distribution from the central measure
(average) is called Variation / Dispersion measures.
Objectives
1. To measure exactly the reliability of an average.
2. To serve us basis for the control of variability.
3. To serve compare 2 or more series with regarded to their variability.
4. To facilitate the use of other statistical measures.
Qualities of a good measure of variation
1. It should be simple to understand and easy to compute.

2. It should be rigidly defined.
3. It should be based on each and every item of the series.
4. Should be capable of further algebraic treatment.
5. It should have sampling stability.
6. It should not be affected by extreme values.

Absolute and relative measures of variation
Measure of variation may be either absolute or relative.
Absolute measure of variation is expressed in same statistical unit in which original data is given
such as rupees, kgs, liters etc. These values may be used to compare the variation in two
distributions provided the variables are expressed in the same unit. In case the two sets of data are
expressed in different units, absolute measures of dispersion are not comparable; in such cases the
measure of relative dispersion should be used.
A measure of relative variation is the ratio of measure of absolute variation to an appropriate

average. It is called co-efficient of variation because co-efficient means a pure number i.e.
independent of unit of measurement.
Measures of variation
1. Range.
2. Quartile deviation.
3. Mean deviation.
4. Standard deviation.
Range
The difference between the largest item and the smallest item is known as range.
It is defined as the difference between the values of the largest items and the smallest item included
in the distribution.
Calculation of Range
Range = L – S, where L = Largest item and S = Smallest item

The relative measure corresponding to range is called co-efficient of range, which is obtained by
L−S
the formula.
L+S
PROBLEMS:
1. Compute the range and its coefficient from the following data:
X 8 10 12 14 16 18 20 22 24 26 28 30
f 20 18 30 60 80 100 95 110 140 180 200 20
Solution:
Computation of range and its coefficient
Range = L – S
= 30 – 8
= 22

30 − 8 22
=
30 + 8 38
Coefficient of Range = 0.579
2. Compute range and its coefficient of the series and state which one is more dispersed and
which is more uniform.
Series A Series B
Variable Frequency Variable Frequency
15 8 20 100
20 12 40 81
25 20 60 130
30 18 80 95
35 37 100 63
40 43 120 71
45 28 140 77
Solution:
A series B series
Range = L – S Range = L – S
= 45 – 15 = 140 – 20
= 30 = 120
Coefficient of range Coefficient of range

L−S L−S
= =
L+S L+S
45 − 15 140 − 20
= =
45 + 15 140 + 20
30 120
= =
60 160
= 0.5 = 0.75
Since Coefficient of Range is lesser for Series A, it is more uniform.

Also, since Range is more for series B, it is more dispersed.

3. Compute range its co-efficient from the following distribution:
C.I 150-160 160-170 170-180 180-190 190-200
f 22 18 35 60 34
Solution:
While computing range the frequencies are never taken into account. The upper of the last
class and lower limit of the smallest is only taken into account.
Computation of range its coefficient
Range = L – S
= 200 – 150 = 50
L−S
Coefficient of Range =
L+S
200 − 150
=
200 + 150
50
=
350
= 0.143
Merits and Demerits of range
Merits of range
1. Range is simple to understand and easy to calculate.
2. If one is interested in getting a quick rather than very accurate picture of variability, one may
compute range.
Limitations
1. Range is not based on each and every item of the distribution.
2. Range is affected by extreme values in the series.
3. Range cannot be calculated for open-ended classes.
4. Range is highly affected by fluctuation of sampling.
Quartile Deviation
Inter quartile range represents the difference between the third quartile and first quartile.
Interquartile Range = Q3 - Q1

Calculation of Quartile Deviation
Very often, Interquartile range is reduced to the form of semi-interquartile range or Quartile
deviation by dividing it by 2. Thus the QD is obtained by dividing the range between lower the
upper quartile by 2. If Q1 and Q3 are lower and upper quartile, then
Q − Q1
Quartile Deviation = 3
2
QD is an absolute measure of dispersion; the relative measure corresponding to this measure is
called co-efficient of QD.
Q3 − Q1
Co-efficient of QD =
Q3 + Q1
Problems:
1. Calculation of quartile deviation and its co-efficient – Individual Observation
Roll No. 1 2 3 4 5 6 7 8 9 10 11
Marks 53 78 85 14 10 86 89 90 95 100 69
Solution:
Marks arranged in ascending order:

10, 14, 53, 69, 78, 85, 86, 89, 90, 95, 100.
N +1 11 + 1 12
Here, = = =3
4 4 4
The size of 3rd item = 53 Hence, Q1 = 53
 N + 1)  11 + 1 12
Here, 3  = 3 = 3=9
 4  4 4
The size of 9th item = 90 Hence, Q3 = 90

Where, Q3 = 3rd Quartile; Q1 = 1st Quartile
Q3 − Q1
Quartile deviation =
2
90 − 53 37
=
2 2
=
= 18.5
Q3 − Q1
Quartile deviation co-efficient =
Q3 + Q1

90−53
= 90+53
= 0.258
2. From the following marks of 12 students, compute the quartile deviation and its co-
efficient.
Sl.No 1 2 3 4 5 67 8 9 10 11 12
Marks 37 78 86 91 94 35 42 44 53 55 57
Solution:
Marks arranged in ascending order.
35 37 42 44 53 55 57 78 86 91 93 94
Computation of quartile deviation

N + 1 12 + 1 13
Here, = =
4 4 4
= 3.25
The size of 3.25th item = 3rd item + 0.25 (4th item – 3rd item)
= 42 + 0.25 (44 – 42)
= 42 + 0.25 (2)
= 42 + 0.50 = 42.5
[N+ 1]
3
4
Here,
= 9.75
The size of 9.75 item = 86 + 0.75 (91 – 86)
th
= 86 + 0.75 (5)
= 86 + 3.75 = 89.75
Q3 − Q1
Q.D =
2
89.75 − 42.5 47.25
= = = 23.625
2 2
Q3 − Q1
Q3 + Q1
89.75 − 42.5 23.625
= =
89.75 + 42.5 132.25
= 0.1786389
3. Calculate quartile deviation and it’s co-efficient from the following.
X 0-10 10-20 20-30 30-40 40-50 50-60 60-80
f 18 25 33 42 38 71 23

Solution:
Computation of quartile deviation and its co-efficient
X f cf
0-10 18 18
10-20 25 43
20-30 33 76
30-40 42 118
40-50 38 156
50-60 71 227
60-70 23 250
N 250
Here, = = 62.5
4 4
The size of 62.5th item lies in the C.I 20-30.
N
− cf
Q1 = L + 4 i
f
62.5− 43
20 +  10
33
=
195
= 20 +
33
= 20 + 5.91
= 25.91
N
Here,  3 = 62.5  3 = 187.5
4
The size of 187.5th item lies in the C.I 50-60.

3N
− cf
Q3 = L + 4 i
f
1875 − 156
= 50 +  10
71
315
= 50 +
71
= 50 + 4.4366197
= 54.4366197
Q3 − Q1
Quartile deviation = 2
54.43 − 25.90
=
2
= 14.265

Quartile deviation co-efficient
Q − Q1
= 3
Q3 + Q1
54.4366197 − 25.90909
=
54.4399197 + 25.90909
14.263764
=
80.345709
= 0.1775298
4. Calculate quartile deviation and it’s co-efficient from the following.
Size 5-7 8-10 11-13 14-16 17-19

f 14 24 38 20 4
Solution
The given inclusive distribution is to be converted into exclusive first.

Size Frequency Cumulative frequency
(f) (cf)
4.5-7.5 14 14
7.5-10.5 24 38
10.5-13.5 38 76
13.5-16.5 20 96
16.5-19.5 4 100
N = 100
N 100
Here, = = 25
4 4
The size of 25th item = 7.5-10.5
N
− cf
Q1 = L + 4 i
f
25 − 14 33
= 7.5 +  3 = 7.5 +
24 24
= 7.5 + 1.375 = 8.875
N 100
Here, 3 =  3 = 25  3 = 75
4 4
The size of 75th item lies in the C.I 10.5-13.5.

3𝑁
−𝑐𝑓
4
Q3 = 𝐿 + ×𝑖
𝑓

75 − 38 111
= 10.5 +  3 = 10.5 + = 10.5 + 2.9210526
38 38
= 13.421052
Q3 − Q1
Q.D =
2
13.421052 − 8.875 4.546052

= = = 2.273026
2 2
Q3 − Q1
Q3 + Q1
13.421052 − 8.875 4.546052
= = = 0.2038949
13.421052 + 8.875 22.296052
Merits of Quartile deviation

1. It is superior to range as a measure of variation.
2. It has special utility in measuring variation in case of open ended distribution.
3. The QD is not affected by the extreme items.
Limitations
1. QD ignores 50% items.

2. It is not capable of mathematical manipulation.
3. It is affected by sampling fluctuations.
Standard Deviation
Karl Pearson introduced the concept of Standard deviation in 1893. It is a most important measure
of variation and is widely used in statistical formulae. Standard deviation is also called as root
mean square deviation. The reason is that it is the square root of the mean of the squared deviations
from the Arithmetic mean.
Standard deviation is defined as positive square root of the A.M of the Squares of the deviations
of the given observations from the A.M. The standard deviation is denoted by Greek letter 
(sigma).
Calculation of Standard Deviation

Calculation of S.D. of individual observation

∑(𝑥 − 𝑥̅ )2
𝜎= √
𝑛
∑ 𝑥2
𝜎= √ − 𝑥̅ 2
𝑛
∑ 𝑓(𝑥 − 𝑥̅ )2
𝜎= √
𝑁
2
∑ 𝑓𝑥 2 ∑ 𝑓𝑥
𝜎= √ − ( )
𝑁 𝑁
2
∑ 𝑓𝑑2 ∑ 𝑓𝑑
𝜎 =ℎ×√ − ( )
𝑁 𝑁
𝒙−𝒂
where 𝒅 = 𝒉
a) When deviations are taken from actual mean

∑(𝑥−𝑥̅ )2
𝜎= √ 𝑛
b) When deviations are taken from assumed mean
=
d 2
 ∑d
− 
2
n n
Where d = x - a
Calculation of standard deviation in case of discrete series/ continuous series

a) When deviations are taken from actual mean.
=  f ( x − x) 2
N
b) When deviations are taken from the assumed mean.
 fd   fd1 
2 2
= −   , d = x-a

N  N 
c) Step deviation method
 fd   fd1 
2 2
 = −  xC
N  N 
 

x− A
Where d =
c
Problems on Standard Deviation
1. Ten measurements were made with the following results. Find standard deviation.
Length (in cms) 77 73 75 70 72 76 75 72 74 76
Solution:
∑(𝑥−𝑥̅ )2
Standard deviation 𝜎 = √ 𝑛
∑𝒙 𝟕𝟒𝟎
̅=
𝒙 = = 𝟕𝟒
𝒏 𝟏𝟎
x 𝒙−𝒙 ̅ ̅) 𝟐
(𝒙 − 𝒙
(𝒙 − 𝟕𝟒) (𝒙 − 𝟕𝟒)𝟐
77 3 9
73 -1 1
75 1 1
70 -4 16
72 -2 4
76 2 4
75 1 1
72 -2 4
74 0 0
76 2 4
∑(𝒙 − 𝒙 𝟐
740 0 ̅) = 44
∑(𝑥 − 𝑥̅ )2 44
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 𝜎 = √ = √ = √4.4 = 𝟐. 𝟎𝟗𝟖
𝑛 10
∑ 𝒙𝟐
𝝈= √ ̅𝟐
−𝒙
𝒏
x x2
77 5929
73 5329
75 5625
70 4900
72 5184

76 5776
75 5625
72 5184
74 5476
76 5776
740 54804
∑ 𝒙𝟐
𝝈= √ ̅𝟐
−𝒙
𝒏
𝟓𝟒𝟖𝟎𝟒
𝝈= √ − 𝟕𝟒𝟐
𝟏𝟎
𝝈 = √𝟓𝟒𝟖𝟎. 𝟒 − 𝟓𝟒𝟕𝟔 = √𝟒. 𝟒 = 𝟐. 𝟎𝟗𝟖
Short-cut method
Steps:
1. Take the deviations of the items from an assumed mean i.e., obtain (X-A). Denote those
deviations by d. Take the total of these deviations ie., obtain ∑d.
2. Square these deviations and obtain the total ∑d2
3. Substitute the values of ∑d2 , ∑d and N in the formula.
2
∑ 𝑑2 ∑𝑑
𝜎=√ − ( )
𝑁 𝑁
where d = x – A ; A = Assumed Mean
x d=x–A d2
( d = x – 73 )
77 4 16
73 0 0
75 2 4
70 -3 9
72 -1 1
76 3 9
75 2 4
72 -1 1
74 1 1
76 3 9
740 10 54

2
∑ 𝑑2 ∑𝑑
𝜎=√ − ( )
𝑁 𝑁
54 10 2
𝜎=√ − ( )
10 10
𝜎 = √5.4 − 1
𝜎 = √4.4
𝜎 = 𝟐. 𝟎𝟗𝟖
Find the standard deviation
Solution:
2. Calculate S.D. from the following data:
Income (in Rs) 10 20 30 40 50 60 70 80 90

No. of persons 3 7 9 10 11 12 15 18 15
Solution:
∑ 𝑓(𝑥−𝑥̅ )2 ∑ 𝑓𝑥
Standard Deviation 𝜎 = √ 𝑥̅ =
𝑁 𝑁
Income No.of 𝒙−𝒙̅ ̅) 𝟐

(𝒙 − 𝒙 ̅) 𝟐
(𝒙 − 𝒙
fx
(X) persons (f) 𝒙 − 𝟓𝟗. 𝟓 (𝒙 − 𝟓𝟗. 𝟓)𝟐 𝒇(𝒙 − 𝟓𝟗. 𝟓)𝟐
10 3 30 -49.5 2450.25 7350.75
20 7 140 -39.5 1560.25 10921.75
30 9 270 -29.5 870.25 7832.25
40 10 400 -19.5 380.25 3802.5
50 11 550 -9.5 90.25 992.75
60 12 720 0.5 0.25 3.00
70 15 1050 10.5 110.25 1653.75

80 18 1440 20.5 420.25 7564.5
90 15 1350 30.5 930.25 13953.75

N = 100 5950 54075.00
∑ 𝑓𝑥 5950
𝑥̅ = = = 𝟓𝟗. 𝟓
𝑁 100
∑ 𝑓(𝑥−𝑥̅ )2 54075
Standard Deviation 𝜎 = √ = √ = √540.75 = 𝟐𝟑. 𝟐𝟓𝟒
𝑁 100
Step-Deviation Method:
2
𝜎 =ℎ×√ − ( )
𝑁 𝑁
𝒙−𝑨
where 𝒅 = , 𝑨 = 𝑨𝒔𝒔𝒖𝒎𝒆𝒅 𝑴𝒆𝒂𝒏 = 𝟓𝟎; 𝒉 = 𝟏𝟎
𝒉
Income No.of persons 𝑿 − 𝟓𝟎

𝒅= f×d f × d2
(X) (f) 𝟏𝟎
𝟏𝟎 − 𝟓𝟎
10 3 = = −𝟒 -12 48
𝟏𝟎
20 7 -3 -21 63
30 9 -2 -18 36
40 10 -1 -10 10
50 11 0 0 0
60 12 1 12 12
70 15 2 30 60
80 18 3 54 162
90 15 4 60 240
N = 100 95 631

2
𝜎 =ℎ×√ − ( )
𝑁 𝑁
631 95 2
𝜎 = 10 × √ − ( ) = 𝟐𝟑. 𝟐𝟓𝟒
100 100
3. Calculate S.D. from the following data:
Salary (in Rs) 0-10 10-20 20-30 30-40 40-50 50-60 60-70
No, of employees 17 13 20 25 30 15 20
Solution:
2
𝜎 =ℎ×√ − ( )
𝑁 𝑁
𝒙−𝑨
where 𝒅 = , 𝑨 = 𝑨𝒔𝒔𝒖𝒎𝒆𝒅 𝑴𝒆𝒂𝒏 = 𝟑𝟓; 𝒉 = 𝟏𝟎
𝒉
Mid point 𝒙 − 𝟑𝟓
No.of persons
Income (X) x 𝒅= fd f d2
(f) 𝟏𝟎
𝟓 − 𝟑𝟓
0 - 10 17 5 = = −𝟑 -51 153
𝟏𝟎
10 - 20 13 15 -2 -26 52
20 - 30 20 25 -1 -20 20
30 - 40 25 35 0 0 0
40 - 50 30 45 1 30 30
50 - 60 15 55 2 30 60
60 - 70 20 65 3 60 180
N = 140 23 495
∑ 𝒇𝒅
̅ = 𝑨 + (𝒉 ×
𝑴𝒆𝒂𝒏 = 𝒙 )
𝑵

𝟐𝟑
̅ = 𝟑𝟓 + (𝟏𝟎 ×
𝒙 ) = 𝟑𝟔. 𝟔𝟒𝟑
𝟏𝟒𝟎
2
𝜎 =ℎ×√ − ( )
𝑁 𝑁
495 23 2
𝜎 = 10 × √ − ( ) = 𝟏𝟖. 𝟕𝟑
140 140
Coefficient of Variation
𝑺𝒕𝒂𝒏𝒅𝒂𝒓𝒅 𝑫𝒆𝒗𝒊𝒂𝒕𝒊𝒐𝒏
𝑪𝑽 = × 𝟏𝟎𝟎
𝑴𝒆𝒂𝒏
18.73
𝑪𝑽 = × 100 = 𝟓𝟏. 𝟏𝟏
36.643
4. Find the S.D. from the following data:

Age under 10 20 30 40 50 60 70 80
No. of persons dying 10 40 85 125 160 200 220 280
Solution:
Age No. of persons fd’2
m.p d’ fd’
molar dying
0-10 10 5 -3 -30 90
10-20 30 15 -2 -60 120
20-30 45 25 -1 -45 45
30-40 40 35 0 0 0
40-50 35 45 1 35 35
50-60 40 55 2 80 160
60-70 20 65 3 60 180
70-80 60 75 4 240 960
N = 280 ∑fd'=415 - 135= 280 ∑ fd'2 = 1590
 fd   fd1 
2 2
= −  xC
N  N 
 
2
1590  280 
= −   10
280  280 
= 5.6785714 − 1  10

= 4.6785714  10
= 2.1630005  10
= 21.63
Co-efficient of variation:
Standard deviation is the absolute measure of variation. The corresponding relative measure is
known as the co-efficient of variation. This measure was developed by Karl Pearson and is the
most commonly used measure of relative variation. It is used in the problems that need to compare
the variability of 2 or more than 2 series. The series for which the co-efficient of variation is more
is said to be more consistent. Consistent co-efficient of variation is denoted by (C.V) and obtained
by the formula.
CV = (Standard deviation / Mean) x 100
𝝈
𝑪𝑽 = × 𝟏𝟎𝟎

Problems on Coefficient of Variation
1. Find which of the following player is more consistent in scoring. Would you also
accept him as a better run greater? Why?
Player 1 5 7 16 27 39 53 56 61 80 101 105
Player 2 0 4 16 21 41 43 57 78 83 90 95
Solution:
X Y
X2 Y2
Player 1 Player 2
5 25 0 0
7 49 4 16
16 256 16 256
27 729 21 441
39 1521 41 1681
53 2809 43 1849
56 3136 57 3249
61 3721 78 6084
80 6400 83 6889
101 10201 90 8100
105 11025 95 9025
550 39872 ∑ Y = 528 37590

To find coefficient of variation
𝑪𝑽 = × 𝟏𝟎𝟎
𝑴𝒆𝒂𝒏
𝝈
𝑪𝑽 = × 𝟏𝟎𝟎
̅
𝒙
Calculation for Player 1
∑𝑥 550
𝑥̅ = = = 𝟓𝟎
𝑛 11
∑ 𝑥2 39872
𝜎𝑥 = √ − 𝑥̅ 2 = √ − 502 =
𝑛 11
𝜎𝑥 = √3624.73 − 2500 = √3624.73 − 2500 = √1124.73 = 𝟑𝟑. 𝟓𝟒
𝑥 33.54
𝐶𝑉𝑥 = × 100 = × 100 = 𝟔𝟕. 𝟎𝟖
𝑥̅ 50
Calculation for Player 2
∑𝑦 528
𝑦̅ = = = 𝟒𝟖
𝑛 11
∑ 𝑦2 37590
𝜎𝑦 = √ − 𝑦̅ 2 = √ − 482
𝑛 11
𝜎𝑦 = √3417.27 − 2304 = √1113.27 = 𝟑𝟑. 𝟑𝟔
𝑦 33.36
𝐶𝑉𝑦 = × 100 = × 100 = 𝟔𝟗. 𝟓𝟎
𝑦̅ 48
Coefficient of variation for Player 1 = 67.08
Coefficient of variation for Player 2 = 69.50
Since the CV for Player 1 is less than the CV for Player 2, it is concluded that Player 1 is more
consistent.
The average of Player 1 is 50 and the average of Player 2 is 48.

Therefore, Player 1 is a better run getter.
X X- X x2 Y Y- Y y2
Batsman x Batsman B y
A
5 -45 2025 0 -48 2304
7 -43 1849 4 -44 1936
16 -34 1156 16 -32 1024
27 -23 529 21 -27 729
39 -11 121 41 -7 49
53 3 9 43 -5 25
56 6 36 57 9 81
61 11 121 78 30 900
80 30 900 83 35 1225
101 51 2601 90 42 1764
105 55 3025 95 47 2209
N = 11, 156 -156 ∑ x2 =12372 ∑ Y = 528 163 - 163 ∑ y2 = 12246
∑X = 550 =0 =0
X=
X Y =
Y
N N
550 528
= = 50 = = 48
11 11
x =
X 2
y =
Y 2
N N
12372 12246
= =
11 11
= 1124.7272 = 1113.2727
= 33.536952 = 33.365741
 
C.V =  100 C.V =  100
X Y
33.536952 33.365741
=  100 =  100
50 48
= 67.07% = 69.51196%
A is a better run getter and more consistent player.

2. Calculate which company shares are more consistent and stable in prices. Take
assumed mean as 74 and 80.
X co’s shares 55 61 73 75 76 81 83 85
Y co’s shares 63 73 81 86 53 28 30 46
Solution:
X co’s shares X- X d2 Y co’s shares Y- Y d2

X d Y d
55 -19 361 63 -17 289
61 -13 169 73 -7 49
73 -1 1 81 1 1
75 1 1 86 6 36
76 2 4 53 -27 729
81 7 49 28 -52 2704
83 9 81 30 -50 2500
85 11 121 46 -34 1156
N = 8, ∑X = 30 ∑ x2= 787 ∑ Y = 460 -187 ∑ y2 = 7464
589 -33 7
= -3 = 180
X=
X Y =
Y
N N
589 460
= = 73.625 = = 57.5
8 8
d  d  d  d 
2 2 2 2
x = −  y = − 
N  N  N  N 
   
787  − 3 
2 2
7464  180 
= −  = − 
8  8  8  8 
= 98.375 − 0.140625 = 933 − 506.25
= 9.91 = 20.66
 
C.V =  100 C.V =  100
X Y
9.9113255 20.657928
=  100 =  100
73.625 57.5
991.13255 2065.7928
= =
73.625 57.5
= 13.46% = 35.93%
Company X’s shares are more consistent.

1. You are given below the daily wages paid to workers in two factories, X & Y.
Find:
i) Which factory pays higher average wages?
ii) In which factory are wages more variable?
Daily wages (in Rs) 50-60 60-70 70-80 80-90 90-100

No. of workers X 15 30 45 20 10
No. of workers Y 20 35 50 10 05
Solution:
𝑪𝑽 = × 𝟏𝟎𝟎
𝑴𝒆𝒂𝒏
Calculation for Company X
∑ 𝑓𝑑 𝑥−75
𝑥̅ = 𝐴 + ℎ × ; where A = 75, 𝑑 =
𝑁 10
2
𝜎𝑥 = ℎ × √ − ( )
𝑁 𝑁
Calculation of CV for Factory X
No. of 𝒙 − 𝟕𝟓
Daily
workers Mid-point 𝒅= 𝒇𝒅 𝒇𝒅𝟐
Wages X 𝟏𝟎
f
50-60 15 55 -2 -30 60
60-70 30 65 -1 -30 30
70-80 45 75 0 0 0
80-90 20 85 1 20 20
90-100 10 95 2 20 40
TOTAL N = 120 -20 150
∑ 𝑓𝑑 (−20)
𝑥̅ = 𝐴 + ℎ × = 75 + 10 × = 𝟕𝟑. 𝟑𝟑
𝑁 120
2
𝜎𝑥 = ℎ × √ − ( )
𝑁 𝑁

150 −20 2
𝜎𝑥 = 10 × √ − ( ) = 𝟏𝟏. 𝟎𝟓𝟓
120 120
𝜎𝑥 11.055
𝐶𝑉𝑋 = × 100 = × 100 = 𝟏𝟓. 𝟎𝟕
𝑥̅ 73.33
Calculation of CV for Factory Y
Daily No. of Mid-point 𝒙 − 𝟕𝟓 𝒇𝒅 𝒇𝒅𝟐

Wages Y workers 𝒅=
𝟏𝟎
f
50-60 20 55 -2 -40 80
60-70 35 65 -1 -35 35
70-80 50 75 0 0 0
80-90 10 85 1 10 10
90-100 5 95 2 10 20
TOTAL 120 -55 145
∑ 𝑓𝑑 (−55)
𝑦̅ = 𝐴 + ℎ × = 75 + 10 × = 𝟕𝟎. 𝟒𝟐
𝑁 120
2
𝜎𝑦 = ℎ × √ − ( )
𝑁 𝑁
145 −55 2
𝜎𝑦 = 10 × √ − ( ) = 𝟗. 𝟗𝟗𝟏
120 120
𝜎𝑦 9.991
𝐶𝑉𝑌 = × 100 = × 100 = 𝟏𝟒. 𝟏𝟗
𝑦̅ 70.42
Factory X Factory Y
Mean 73.33 70.42
Coefficient of variation 15.07 14.19
(i) Factory X is paying more average wages.
(ii) Factory X wages are more variable.

In order to find out the factory paying higher wages we shall have to compute X of two & in order
to find out which company share are more variable we shall have to find out C.V.
Daily No, of m.p (x – 75) fd’ fd’2

Wages workers X x d
50-60 15 55 -2 -30 60
60-70 30 65 -1 -30 30
70-80 45 75 0 0 0
80-90 20 85 1 20 20
90-100 10 95 2 20 40
N = 120 ∑fd' = -60 + 40 = -20 ∑ fd'2 = 150
Daily No, of m.p (m – 75) Fd' Fd' 2

Wages workers Y m d
50-60 20 55 -2 -40 80
60-70 35 65 -1 -35 35
70-80 50 75 0 0 0
80-90 10 85 1 10 10
90-100 05 95 2 10 20
N = 120 ∑fd' = 20 -70 = -55 ∑ fd'2 = 145
X = A+
 fd   c Y = A+
 fd   c
N N
− 20 − 55
= 75 +  10 = 75 +  10
120 120
− 200 − 550
= 75 + = 75 +
120 120
= 75 − 1.6666666 = 75-4.5833333
= 73.3333334 = 70.416667
 fd    fd    fd    fd  
2 2 2 2
= −   C.I = −   C.I
N  N  N  N 
   
150  − 20  145  − 55 
2 2
= −   10 = −   10
120  120  120  120 
= 1.25 − 0.0277777  10 = 1.2083333 − 0.2100694  10
= 1.1055416  10 = 0.9991315  10
= 11.055416 = 9.991315

 
C.V =  100 C.V =  100
X Y
11.055416 9.991315
=  100 =  100
73.3333334 70.416667
1105.5416 999.1315
= =
73.3333334 70.416667
= 15.075567% = 14.18849%
X Co. pays more wages and Y Co. wages are more variable.
4. A tyre dealer received samples of tyres from two suppliers X & Y. He had the sample
tested for length of life with the following results.
Length life in months 4–8 8 – 12 12 – 16 16 - 20

Supplier X 10 16 30 4
Supplier Y 2 42 12 4
Which supplier’s tyres are more uniform regarding their length of life.
Solution:
In order to find out uniformity in the length of life we shall have to find out co-efficient of variation.
Length of Supplier Mid- X − 10 fd’ fd’2

life X point 4
(in months) (f) m
4-8 10 6 -1 -10 10
8-12 16 10 0 0 0
12-16 30 14 1 30 30
16-20 4 18 2 8 16
N = 60 ∑fd' = 38 -10 = 28 ∑ fd'2 = 56
Length of Supplier m.p X − 10 fd’ fd’2

life Y m 4
(in
months)
4-8 2 6 -1 -2 2
8-12 42 10 0 0 0
12-16 12 14 1 12 12
16-20 4 18 2 8 16
N = 60 ∑fd' = 20-2= 18 ∑ fd'2 = 30

X = A+
 fd   c Y = A+
 fd   c
N N
28 18
= 10 + 4 = 10 + 4
60 60
28 18
= 10 + = 10 +
15 15
= 10 + 1.8666666
= 10 + 1.2
= 11.866666 = 11.2
 fd    fd    fd    fd  
2 2 2 2
= −  C = −  C
N  N  N  N 
   
56 28 2 30 18 2
= 4 × √60 − (60) = 4 × √60 − (60)
= 0.9333333 − 0.2177777  4 = 0.5 − 0.09  4
= 0.7155556  4 = 0.41  4
= 0.84590516  4 = 0.6403124  4
= 3.40 = 2.56
 
C.V =  100 C.V =  100
X Y
3.4 2.56
= 11.87 × 100 = 11.2 × 100
= 28.62% = 22.87%
Company Y is more uniform

Example:
Goals scored by two teams A and B in a football season were as follows:
No.of goals scored in

Team A Team B
a match
0 27 17
1 9 9
2 8 6
3 5 5
4 4 3

Find out which team is more consistent.
Solution:
𝑪𝑽 = × 𝟏𝟎𝟎
𝑴𝒆𝒂𝒏
Calculation for Team A
∑ 𝑓𝑥
𝑥̅ = 𝑁
2
∑ 𝑓𝑥 2 ∑ 𝑓𝑥
𝜎𝑥 = √ − ( )
𝑁 𝑁
Calculation of CV for Team A
X f fx f x2
0 27 0 0
1 9 9 9
2 8 16 32
3 5 15 45
4 4 16 64
TOTAL N = 53 56 150
∑ 𝑓𝑥 56
𝑥̅ = = = 𝟏. 𝟎𝟓𝟕
𝑁 53
2
∑ 𝑓𝑥 2 ∑ 𝑓𝑥
𝜎𝑥 = √ − ( )
𝑁 𝑁
150 56 2
𝜎𝑥 = √ − ( ) = 𝟏. 𝟑𝟎𝟗
53 53
𝜎𝑥 1.309
𝐶𝑉𝑋 = × 100 = × 100 = 𝟏𝟐𝟑. 𝟖𝟒
𝑥̅ 1.057

Calculation for Team B
∑ 𝑓𝑥
𝑥̅ = 𝑁
2
∑ 𝑓𝑥 2 ∑ 𝑓𝑥
𝜎𝑥 = √ − ( )
𝑁 𝑁
Calculation of CV for Team B
X f fx f x2
0 17 0 0
1 9 9 9
2 5 10 20
3 6 18 54
4 3 12 48
TOTAL N = 40 49 131
∑ 𝑓𝑥 49
𝑥̅ = = = 𝟏. 𝟐𝟐𝟓
𝑁 40
2
∑ 𝑓𝑥 2 ∑ 𝑓𝑥 131 49 2
𝜎𝑥 = √ − ( ) = √ − ( ) = 𝟏. 𝟑𝟑𝟐
𝑁 𝑁 40 40
𝜎𝑥 1.332
𝐶𝑉𝑋 = × 100 = × 100 = 𝟏𝟎𝟖. 𝟕𝟑
𝑥̅ 1.225
Since CV of Team B is less than the CV of Team A, Team B is more consistent in scoring goals.
5. Following particulars relate to wages by two firms A and B belonging to the same
industry.
Firm A Firm B
No. of workers 856 684
Average wages Rs 55.20 Rs 57.40
Variance 144 196
i) Which firm pays higher wages?

ii) Which firm has greater variability in wages?
Solution:

Firm A Firm B
No. of workers N1 = 856 N2 = 684
Average wages 𝑥̅ =Rs 55.20 (47251) 𝑦̅ = Rs 57.40 (39261)
Variance ( = SD2 ) 𝜎𝑥 2 =144 𝜎𝑦 2 = 196
SD = √𝑽𝒂𝒓𝒊𝒂𝒏𝒄𝒆 √144 = 12 √196 = 14
𝑆𝐷 12 14
𝐶𝑉 = × 100 × 100 = 𝟐𝟏. 𝟕𝟒 × 100 = 𝟐𝟒. 𝟑𝟗
𝑀𝑒𝑎𝑛 55.2 57.4
(i) Since the average wage of company B is more than average wage of company M, we
conclude that company B is paying higher wages. But, in terms of amount total wages,
Firm A has paid more amount of wages.
(ii) Since the CV of company B is more than CV of company A, we conclude that company
B is more variable in their wages.
6. From the following information, find

a. Which of the factory pay larger amount as daily wages?
b. What is average daily wage of the two factories taken together?
c. Which factory wages are more variable?
Factory A Factory B
No. of wages earners 250 200
Average daily wages (M) 40 45
S.D. 10 15
̅𝟏 +𝒏𝟐 𝒙
𝒏𝟏 𝒙 ̅𝟐 𝟐𝟓𝟎×𝟒𝟎+𝟐𝟎𝟎×𝟒𝟓 𝟏𝟎𝟎𝟎𝟎+𝟗𝟎𝟎𝟎 𝟏𝟗𝟎𝟎𝟎
̿=
Combined Mean = 𝒙 = = = = 𝟒𝟐. 𝟐𝟐
𝒏𝟏 +𝒏𝟐 𝟐𝟓𝟎+𝟐𝟎𝟎 𝟒𝟓𝟎 𝟒𝟓𝟎
𝒏𝟏 (𝝈𝟏 𝟐 +𝒅𝟏 𝟐 ) + 𝒏𝟐 (𝝈𝟐 𝟐 +𝒅𝟐 𝟐 )

Combined SD = 𝝈𝟏𝟐 = √ 𝒏𝟏 +𝒏𝟐
̅𝟏 − 𝒙
𝒅𝟏 = 𝒙 ̿ = 𝟒𝟎 − 𝟒𝟐. 𝟐𝟐 = −𝟐. 𝟐𝟐
̅𝟐 − 𝒙
𝒅𝟐 = 𝒙 ̿ = 𝟒𝟓 − 𝟒𝟐. 𝟐𝟐 = 𝟐. 𝟕𝟖
𝟐𝟓𝟎(𝟏𝟎𝟐 +(−𝟐.𝟐𝟐)𝟐 ) +𝟐𝟎𝟎(𝟏𝟓𝟐 +(𝟐.𝟕𝟖)𝟐 )

𝝈𝟏𝟐 = √ = 𝟏𝟐. 𝟕2
𝟐𝟓𝟎+𝟐𝟎𝟎

Solution:
In order to find out (i) We shall have to find N X and in order to find out (ii) We shall have to find
out C.V.
X=
X Y =
X
N N
Y = NY
 X = NX
= 250  40 = 200  45
= 10,000 = 9,000
Factory A pays larger amount as daily wages.
 
C.V A =  100 C.V B =  100
X Y
10 15
=  100 =  100
40 45
= 25% = 33.3333%
Factory B’s wages are more variable.
N1 X 1 + N 2 X 2
X 12=
N1 + N 2
250  40 + 200  45
=
250 + 200
10000 + 9000 19000

= =
450 450
= 42.22
7. If C.V. = 58%; S.D. = 21.2 Find X .


C.V =  100
X
21.2
58 =  100
X
58 X = 2120 .
X = 36.551724
8. The Mean and Standard Deviation of monthly salary (in Rs.) are given below for two factories
A and B.
Number of Average Monthly Standard deviation of
Factory
Employees Salary Monthly Salary
A 100 ̅̅̅
𝒙𝟏 = 2,500 1 = 200
B 120 ̅̅̅
𝒙𝟐 = 2,800 2 = 250
(i) Find the pooled Mean and pooled Standard Deviation.

(ii) Which factory has better consistent salary structure?
Solution:
n1 x1 + n 2 x 2 100  2500 + 120  2800 586000

(i) x1,2 = = = = 2663.64
n1 + n 2 100 + 120 220
n1 (σ12 + d12 ) + n 2 (σ 22 + d 22 )
σ1,2 =
n1 + n 2
( )
2
d 12 = x 1 − x 1,2 = (2500 − 2663.64)2 = 26,778
= (x ) = (2800 − 2663.64)
2
d 22 2 − x1,2 2
= 18,594
100(40,000 + 26,778) + 120(62,500 + 18,594)

σ 1,2 = = 273.11
220
σ1 200
(ii) C.V. A =  100 =  100 = 8%
x2 2500
σ2 250
C.V.B =  100 =  100 = 8.93%
x2 2800
Factory A has better consistent salary structure.
Summary
• Dispersion is scatterness of values from the central measure.

• Measures of dispersion: 1. Range.2. Quartile deviation. 3. Mean deviation.4. Standard
deviation
• The square of standard deviation is Variance.
•
Dispersion measure Absolute measure Relative measure
Mean

Median
Mode
Range L-S L−S

5.17 L+S
Quartile deviation Q3 − Q1 Q3 − Q1
2 Q3 + Q1
Mean deviation from
mean- raw data
 x−x Mean deviation
mean
n
Mean deviation from
mean- discrete and
 f / x− x/ Mean deviation
N mean
continuous data
Mean deviation from  x−M Mean deviation
median- raw data median
n
Mean deviation from f x−M Mean deviation

median- discrete and median
N
continuous data
Mean deviation from  x−Z Mean deviation
mode- raw data mod e
n
Mean deviation from f x−Z Mean deviation

mode- discrete and mod e
N
continuous data
Standard deviation – raw 
data(direct method) =
 ( x − x) 2
C.V =
X
 100
n
Standard deviation – raw 
data(short cut method) = d 2
d 
− 
2
C.V =  100
X
n n

 f ( x − x)
Standard deviation-
C.V =  100
2
discrete and continuous = X
data(direct method) N
Standard deviation – 
 fd −  
2
2
 fd1  C.V =  100
discrete and continuous =  X
N 
data (short cut method)  N 
Standard deviation discrete 
 fd   fd1 
2
2
C.V =  100
& continuous data (step  = −  xc X
N  N 
deviation meth method)  
Questions and Answer

Section A
1. What is the meaning of dispersion? (Refer 5.10)
2. State 4 qualities of a good measure of variation. (Refer 5.10)
3. What are absolute and relative measures of variation? (Refer 5.10)
4. State the measure of variation. (Refer 5.10)
5. What is Range? Mention the formula used to calculate range. (Refer 5.11)
6. State 2 merits and 2 demerits of range. (Refer 5.11)
7. What is Quartile deviation? State 2 merits and 2 demerits of the same. (Refer 5.12)
8. What is Standard Deviation? (Refer 5.14)
9. What is co-efficient of variation? (Refer 5.15)
1. Section B & Section C
1. Find the semi-inter quartile range for the following distribution:
Monthly No. of Monthly No. of

Income(Rs.) Families Income (Rs.) Families
0-75 14 200-250 334
75-100 52 250-350 443
100-150 200 350-550 218
150-200 239 550-800 225
[Ans : Q1 = Rs. 184.5711, Q3 = Rs. 360.7798, Q.D = Rs. 88.1044]
2. Find out an appropriate measure of dispersion for the following data:
Income : Less than 50 50 – 70 70 – 90 90 – 100

Frequency : 50 100 140 300
Income : 110 – 130 130 – 150 Above 150
Frequency : 230 125 51
[Ans : Q1 = Rs. 84.1129, Q3 = Rs. 123.6522, Q.D = Rs. 19.7647]
3. For the following frequency distribution find the lower and upper quartiles and hence
the value of co-efficiency of quartile deviation.
Weekly Wages : Below 50 50-60 60 – 70 70 - 80 Above 80

No. of Workers : 20 50 48 40 14
[Ans : Q1 = Rs.54.60, Q3 = Rs.72.75, Q.D = Rs.0.1425]
4. From the following distribution calculate the value of Quartile Deviation.
Classes : 300 – 399 400 – 499 500 – 599 600 - 699 700 - 799 800 - 899

Frequencies: 14 46 58 76 68 62
Classes : 900 – 999 1000-1099 1100 – 1199
Frequencies: 48 22125 6
[Ans : Q1 = Rs.568.4655, Q3 = Rs.860.7903, Q.D = Rs.292.3248]
5. Calculate quartile deviation its co-efficiency from the following data:
Marks No. of Students Marks No. of Students

0–5 2 30 – 45 32
5 – 10 7 35 – 40 20
10 – 15 15 40 – 45 16
20 – 25 35 50 – 55 8
25 – 30 40
[Ans : Q1 = 20.5, Q3 =34.6094, Q.D = 0.1280]
6. Calculate coefficient of Q.D. from the following data:

Profit Less than (Rs. Lakhs) 200 300 400 500 600
No. of Co’s 8 20 40 40 50
[Ans : Classes : 100–200 200-300 300-400 400-500 500-600

8 12 20 6 4
Q1 =Rs. 237.5, Q3 =Rs. 387.5 lakhs, Coe. Of Q.D =0.24]
7. Calculate the appropriate measure of dispersion from the following data.
Wages in (Rs.) Below 34 35-37 38-40 41-43 Over 44

No. of Wage earners 14 60 95 24 7
[Ans : Q1 = Rs.36.3, Q3 = Rs.39.9, Q.D = Rs.1.8]
8. Find the mean deviation of the following series :
Variable : 10 11 12 13 14 Total
Frequency 3 12 18 12 3 48
[Ans :M.D from mean = 0.75]
9. Calculate mean deviation from the following data:
Size of item 8 9 10 11 12 13 14 15
Frequency 6 9 13 21 33 9 14 7
[Ans : Mean = 11.832, M.D. from mean = 1.4363]

10. Calculate the standard deviations given the squares of deviations for two series,
calculated from their actual means.
Sum of the squares of deviation of the items
Series N
from the mean
A 150 2,40,000
B 200 5,00,000
[Ans : A = 40, B=50]
11. Find the standard deviation.

Class-Interval 5 – 15 15 – 25 25 – 35 35 – 45 45 – 55
Classe
s :
Frequencies 8 12 15 9 6
[Ans : 12.3304]
12. Find the mean and standard deviation.

Classes 110-120 120-130 130-140 140-150 150-170 160-160 170-180
Frequencies 25 30 40 45 80 110 70
[Ans :Mean = 153.375, S.D. 17.7090]
13. From the following observations prepare a frequency distribution table in ascending
order starting with 5-10 (exclusive method) and find out the mean and the standard
deviation.
Scores
19 18 15 35 32 30 8 12
17 8 18 19 18 30 36 42
35 37 30 39 25 24 26 28
8 17 19 21 24 10 16 15
18 17 12 21 29 30 31 19
22 21 21 28 35
[Ans. Classes 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-45
Frequencies 3 3 14 7 5 6 6 1
14. The number of runs scored by batsmen A and B during a test series is shown below:
A 5 26 97 76 112 89 6 108 24 16
B 51 47 36 60 58 39 44 42 71 50
Make a comparative study of their performance and find out who is more consistent.

[Ans : X = 51.8 X = 41.9939 CV (X) = 75.1233
Y = 49.8 Y = 10.1568 CV (y) = 20.3952
15. The runs scored by two cricketers in 10 innings are given below :
A 42 17 83 59 72 76 64 45 40 20
B 28 70 31 10 59 108 82 14 3 45
Find who is a better batsman and who is more consistent.
[Ans : X = 51.8 X = 21.6138 CV (X) = 41.7227

Y =45.0 Y =32.5484 CV (y) = 72.3298
16. Following are the marks obtained by two students A and B in 10 tests of 100 marks
each.
Test 1 2 3 4 5 6 7 8 9 10
Marks obtained by A 44 80 76 48 52 72 68 56 60 54
Marks obtained by B 48 75 54 60 63 69 72 51 57 66
If the consistency of performance is the criterion for a awarding a prize, who should get
the prize?
[Ans : X =61.0 X =11.7047, CV (X) = 19.1880

Y =61.5 Y =8.6188 CV (y) = 14.011111]
17. Weight of eight students in Kilograms are as follows. If the weighing machine shows
weigh less by two kilograms, find mean and coefficient of variation.
48, 53, 46K, 56, 47, 52, 48, 50.
[Ans : Mean = 50, S.D. = 3.2016, CV = 6.4032]
18. An analysis of the monthly wages paid to workers in two firms. A and B belonging to
the same industry. Gives the following results.
Firm A Firm B
No. of Workers 60 150
Average 269 575
Variance of wage 100 121
distribution
Find out
(a) Which firm pays larger amount as monthly wages?
(b) In which firm is there greater variability in individual wages.

[Ans: Total wages of firm A = N1 X 1 = Rs. 16140, Total wages of firm B = N2 Y2 =
Rs. 41250, CV (A) = 3.7175 XCV (B) = 4]
19. An organization has two units A and B. An analysis of weekly wages paid to workers
gave the following results.
Unit A Unit B
No. of Wage Earners 500 670
Average weekly wage 65 72
Standard Deviation 9 10
(a) Which unit pays larger amount as weekly wages?

(b) In which unit there is greater variability in wage distributions.
(c) Find the combined average wage and the combined standard deviation wages for
the whole organization.
[Ans :Total wages paid by A = N1 X 1 = Rs. 32500] Total wages paid by B = N2, Y2 = Rs.
48420 ,CV (A) = 13.8462, CV (B) 13.8889
32. Calculate the following:

(i) X and Y ; given X = 4, Y = 3, C.V. (X) = 10, C.V. (Y) = 15.
(ii) Coefficient of quartile deviation: given Q1 = 46.8, Q3 = 81.7.
[Ans: (i) X = 40, Y = 50, (ii) Q.D. = 17.45]
33. A consignment of 180 articles is classified according to the size of the article as under.
Find the standard deviation and its coefficient:
Measurement No. of articles Measurement No. of articles.

More than 80 5 More than 30 150
34. Find the standard deviation and coefficient of variation from the following data:
Wages No. of workers Wages No. of workers
Upto 10 12 Upto 50 157
Upto 20 30 Upto 60 202
Upto 30 65 Upto 70 222
Upto 40 107 Upto 80 230
35. Find the coefficient of variation from the following data :

Number of Number of
Wages (Rs.) Wages (Rs.)
workers workers
Upto Rs. 300 12 Upto Rs. 700 157
Upto Rs. 400 30 Upto Rs. 800 202
Upto Rs. 500 65 Upto Rs. 900 222

Upto Rs. 600 107 Upto Rs. 1000 230
36. Weights of a group of individuals are given below in kilogram. Find out standard
deviation and its coefficient:
Weight above (in kgs) 0 10 20 30 40
No. of persons 100 88 55 25 10
37. Calculate coefficient of quartile deviation and coefficient of variation form the following
data:
Marks (below) 20 40 60 80 100
No. of students 8 20 50 70 80
[Ans : Q1 = 40, Q3 =70, Coe. Of Q.D. = 0.2727, Mean =53, S.D. =22.6053 C.V. =
42.6515]
38. From an analysis of monthly wages paid to workers in two organizations C and D, the
following results were obtained:
C D
No. of Workers 550 600
Average monthly wage 600 648.5
Obtain the average monthly wages and the variability in individual wages of all the workers
in the two organizations taken together.
39. An analysis of monthly wages of workers of two organizations C and D give the following
results:
Organization
C D
No. of workers 40 60
Average monthly wages Rs. 60 Rs. 48
Variance 100 144
Obtain the average monthly wages and standard deviation of wages of all workers in the
two organizations taken together. Which organization is more equitable in regard to
wages?
[Ans : Combined mean = 52.8, Combined S.D. 12.6870]
40. You are supplied with the following data about height of boys and girls of a college:
Boys Girls
Number 72 38
Average height 68 61
Variance of heights 9 4
i. Compute the combined average height of the students in the college.

ii. Compare the combined standard deviation of the students in the college.
iii. Obtain measures of variability separately for boys and girls. Who have greater
variability in heights?

41. A tyre dealer received samples of tyres from two suppliers X and Y. He had the samples
tested for length of life with the following results.
Length of life in Suppliers

months. X Y
4–8 10 2
8 – 12 16 42
12 – 16 30 12
16 – 20 4 4
Which supplier’s tyres are more uniform regarding their length of life?
References:
1. Sanchethi & Kapoor: Business Mathematics, Sultan Chand 2009 7th Edition.
2. Zamiruddin & Khanna: Business Mathematics
3. Saha: Mathematics for Cost Accountants
4. Soni: Business Mathematics
5. J.K. Singh: Business Mathematics, Himalaya Publishing House, 2nd Edition, 2011.

MODULE – 5
ANALYSIS OF BIVARIATE DATA
CORRELATION AND REGRESSION ANALYSIS
5.1 Meaning and Significance of Correlation:
Sometimes we want to know the relationship between the variables instead of just doing the
comparison, which we have been doing so far with the help of central tendency and dispersion.
Whenever we think of bivariate or a multivariate distribution, the idea of their relation come into
our mind at once. These variables may be ‘Price and Supply’, ‘Income and Saving’, ‘Income and
Investment’ or ‘Income and Consumption’ etc. The relationship between two series when
measured quantitatively is known as Correlation. Due to this correlation, change in the value of
one series brings about a change in the value of the other series. This change may be in the same
or in the opposite direction; and magnitude of change may not be the same. ‘Correlation is a
Statistical Technique which shows the relationship between two or more variables’.
Correlation is the associated variation between 2 or more variables or correlation is an analysis of

the co-variation between two or more variables.
Or
Two variables are said to be correlated if change in one variable affects the change in the
corresponding variable.
5.2 Types of correlation:
1. Positive correlation: -
If the variables vary in the same direction, then they are said to be positively correlated.
Example: -
1) Amount of rainfall (x); yield of crops (y)
2) Price of an Item (x); supply (y)
Price (Rs.) 30 35 40 45
Supply ( Kgs.) 90 110 130 150
2. Negative correlation: -
If the variables deviate in opposite directions, then they are said to be negatively correlated.
Example: -
i) Pressure (x) and volume (y) of gas.
ii) Price (x) and demand (y).
Price (Rs.) 30 35 40 45
Demand ( Kgs.) 90 70 50 30
3. Perfect Correlation. If the amount of change in one variable is at a constant ratio to the change
in the other variable, the correlation is Perfect.
Example:
Price (in Rs) 20 21 22 23

Quantity Supplied (in Kgs.) 100 200 300 400
4. Non-Correlation: - If there is no associated variation between the two variables, the variables
are said to be non-correlated or uncorrelated.
Example: -
1) Temperature and money circulation
Types of correlation
(i) Positive Correlation: If the values of the two Y

variables deviate in the same direction, i.e. an
increase in the value of the one variable results on an
average, in a corresponding increase in the values of
the other variable or if a decrease in the values of one
variable results a corresponding decrease in the other
variable, then the correlation is said to be positive.
Example: Height and weight
X
Positive correlation
(ii) Negative correlation: If the values of the two Y

variables deviate in opposite direction, i.e. an
increase (or decrease) in the value of the one variable
results on an average, in a corresponding decrease (or
increase) in the values of the other variable or if an
increase in the values of one variable results a
corresponding decrease in the other variable, then the
correlation is said to be negative. Example: Price and
demand X
Negative correlation
(iii) Perfect linear correlation: When all the points lie exactly on a straight line, it is called perfect
linear correlation. If the plotted points (xi, yi) are approximately on or near about a straight line,
then the correlation between the variables is said to be linear. Example: Earnings and expenditure
(iv) Perfect correlation: If the deviation in one variable is followed by a corresponding and
proportional deviation in the other, then the correlation is said to be perfect correlation.
i.e. r = +1 (positive and perfect)
Y
r = −1 (negative and perfect)
•• •• • •
(v) No correlation: If r = 0, there is no relation between the
variables. If the plotted points lie scattered all over the graph • • • • • •
paper, then there is no correlation between the two variables
and the variables are said to be statistically independent. The
variables x and y are said to be independent. X
No correlation
(vi) Curvilinear correlation: If the plotted points in a bivariate

Y
distribution more or less form a curve, then the correlation

Curvilinear correlation
X
between the two variables is said to be curvilinear. For
example, the correlation between the production of rice and
rainfall in cms. in a village is a curvilinear correlation.
5.3 Measures of correlation:
The degree of relationship between the two variables can be measured using the following methods
a) Scatter diagram.
b) Karl – Pearson’s coefficient of correlation.
c) Spearman’s Rank correlation coefficient.
d.) Concurrent deviation method
5.3.1 Scatter Diagram:
It is graphical presentation of bi-variate data. Here one variable (x) is taken along the x axis and
the other variable (y) is taken along the y axis and each pair of (x, y) values are represented by a
point of the graph.
Scatter diagram
Scatter diagram is a graphical method of showing the correlation between the two variables x and y. The
values of each pairs of values of (xi, yi) are plotted on a coordinate plane by choosing a suitable scale. The
diagram of points so obtained is called a scatter diagram.
On a paper draw two axes at right angles one axis corresponding to x and the other to y. For each of the
data, there will correspond a pair of values x,y which in turn will correspond to a point whose abscissa on
the diagram is x and the ordinate is y. The data represented in this way will give a swarm of points on the
diagram. We can interpret the way scatter of cluster as the properties of relationship between the two
variables.
Y Y
X
Scatter Diagram - X
Scatter Diagram :
Positive correlation
Negative correlation
Advantages
1. It is readily comprehensible and enable us to form a rough idea of the nature of relationship between
the two variables x and y.
2. It is not affected by extreme observation.
3. It is not influenced by the size of extreme items.

Disadvantages
1. It is not a suitable method if the number observations are large.

2. It enables us to obtain an approximate estimating line or line of best fit by this method.
3. It is only a rough measure of correlation where the exact magnitude cannot be known.
5.3.2 Karl Pearson’s coefficient of correlation:
The degree of variation between two variables is given by Karl – Pearson’s coefficient of
correlation. It is denoted by ‘r’ or ‘rxy’ and is given by
cov ( x , y ) cov( x , y ) cov(x, y )

r= = =
V(x) V( y ) S.D(x)  S.D( y )  x.  y
1
( x − x ) ( y − y )
= n
1 2  1 2
 n ( x − x)   n ( y − y) 
∑ 𝑥𝑦
= 𝑛 − 𝑥̅ 𝑦̅
2 2
√∑ 𝑥 − 𝑥̅ 2 √∑ 𝑦 − 𝑦̅ 2
𝑛 𝑛
𝑛 ∑ 𝑥𝑦 − ∑ 𝑥 ∑ 𝑦
=
√𝑛 ∑ 𝑥 2 − (∑ 𝑥)2 √𝑛 ∑ 𝑦 2 − (∑ 𝑦)2
Or
N  dxdy −  dx dy
r=
(Nd x 2
− ( d x) 2 )( N  d y 2 − ( d y ) 2 )
r=  dxdy
 dx . dy
2 2
.
x y
1

1 − xy
xy − x y i i
Cov ( x, y ) n
 (x, y) = = n = i =1
Var( x) .Var( y ) x y n n
x y
1 2 1 2
2
i −x 2
i −y
n i =1 n i =1

Where x = mean of x series
y = mean of y series
n = number of pairs of observations
We can also write
n n n
N  xi y i −  xi y i
i =1 i =1 i =1
r =
2 2
n
 n   n n

N  x −   xi 
2
i N  y −   yi  2
i
i =1  i =1  i =1  i =1 
n n n
N d
i =1
xd y − d d
i =1
x
i =1
y
r =
2 2
n
 n  n
 n 
N 
i =1
d x2 
−  d x 
 i =1 
N 
i =1
d y2 −  d y 
 i =1 

where dx = xi − A ; dy = yi − B ; A and B are arbitrary values in x and y series respectively.
PROBLEMS ON KARL PEARSON’S CORRELATION COEFFICIENT
Find the coefficient of correlation between the heights of brothers and sisters from the following data:
Heights of brothers (in cm) (x) : 65 66 67 68 69 70 71
Heights of sisters (in cm) (y) : 67 68 66 69 72 72 69
Solution:
n
 xy − x y
1
n i =1
Direct Method: r=
n n
 y
1 2 1 2
x2 − x 2
−y
n i =1 n i =1

x y x2 y2 xy
65 67 4225 4489 4355
66 68 4356 4624 4488
67 66 4489 4356 4422
68 69 4624 4761 4692
69 72 4761 5184 4968
70 72 4900 5184 5040
71 69 5041 4761 4899
476 483 32396 33359 32864
∑𝒙 𝟒𝟕𝟔 ∑𝒚 𝟒𝟖𝟑
̅=
𝒙 = = 𝟔𝟖 ̅=
𝒚 = = 𝟔𝟗
𝒙 𝟕 𝒙 𝟕
32864
− 68  69
7 4694.88 − 68  69
r= =
32396
− 682 33359
− 69 2 4628 − 682 4765.57 − 692
7 7
2.86
r= = 0.6682
2  2.14
There is a moderate positive relationship between the heights of brothers and sisters.
Short-cut method:
𝒏 ∑ 𝒅𝒙 𝒅𝒚 − ∑ 𝒅𝒙 ∑ 𝒅𝒚
𝒓=
𝟐
√𝒏 ∑ 𝒅𝒙 𝟐 − (∑ 𝒅𝒙 )𝟐 √𝒏 ∑ 𝒅𝒚 𝟐 − (∑ 𝒅𝒚 )
where dx = x – A ; dy = y – B
x y dx = x−68 dy = y−69 dx2 dy2 dxdy
65 67 -3 -2 9 4 6
66 68 -2 -1 4 1 2
67 66 -1 -3 1 9 3
68 69 0 0 0 0 0
69 72 1 3 1 9 3
70 72 2 3 4 9 6
71 69 3 0 9 0 0
0 0 28 32 20

𝑛 ∑ 𝑑𝑥 𝑑𝑦 −∑ 𝑑𝑥 ∑ 𝑑𝑦
𝑟=
2
√𝑛 ∑ 𝑑𝑥 2 −(∑ 𝑑𝑥 )2 √𝑛 ∑ 𝑑𝑦 2 −(∑ 𝑑𝑦 )
7  20 − 0  0 140 140
r = = = = 0.6682
7  28 − 0 2 7  32 − 0 2 7  28 7  32 209.53
Example 4.2:
Calculate the correlation coefficient from the following data:
X : 12 9 8 10 11 13 7
Y : 14 8 6 9 11 12 3
Solution:
𝑁 ∑ 𝑑𝑥 𝑑𝑦 −∑ 𝑑𝑥 ∑ 𝑑𝑦
r =
2
√𝑁 ∑ 𝑑𝑥2 −(∑ 𝑑𝑥 )2 √𝑁 ∑ 𝑑𝑦
2 −(∑ 𝑑 )
𝑦

12 14 3 5 9 25 15
9 8 0 -1 0 1 0
8 6 -1 -3 1 9 3
10 9 1 0 1 0 0
11 11 2 2 4 4 4
13 12 4 3 16 9 12
7 3 -2 -6 4 36 12
70 63 7 0 35 84 46
7  46 − 7  0 322 322
r = = = = 0.9485
7  35 − 7 2
7  84 − 0 2
196 588 339.48
There is a strong positive correlation between X and Y.
Example 4.3
Calculate the Karl Pearson’s correlation coefficient between the marks in English and Hindi obtained by
10 students.

Marks in English : 10 25 13 25 22 11 12 25 21 20
Marks in Hindi : 12 22 16 15 18 18 17 23 24 17
Solution:
𝒓=
𝟐
√𝒏 ∑ 𝒅𝒙 𝟐 − (∑ 𝒅𝒙 )𝟐 √𝒏 ∑ 𝒅𝒚 𝟐 − (∑ 𝒅𝒚 )

10 12 -8 -6 64 36 48
25 22 7 4 49 16 28
13 16 -5 -2 25 4 10
25 15 7 -3 49 9 -21
22 18 4 0 16 0 0
11 18 -7 0 49 0 0
12 17 -6 -1 36 1 6
25 23 7 5 49 25 35
21 24 3 6 9 36 18
20 17 2 -1 4 1 -2
Total 4 2 350 128 122
𝒓=
𝟐
√𝒏 ∑ 𝒅𝒙 𝟐 − (∑ 𝒅𝒙 )𝟐 √𝒏 ∑ 𝒅𝒚 𝟐 − (∑ 𝒅𝒚 )
𝟏𝟎 × 𝟏𝟐𝟐 − 𝟒 × 𝟐
𝒓= = 𝟎. 𝟓𝟕𝟒𝟖
√𝟏𝟎 × 𝟑𝟓𝟎 − 𝟒𝟐 √𝟏𝟎 × 𝟏𝟐𝟖 − 𝟐𝟐
(For deviations of X, dx = x – 13)
10 132 − 54  2 1212 1212

r = = = = 0.5748
10  640 − 542 10 128 − 2 2 3484 1280 2111.76
There is a moderate positive correlation between marks in English and marks in Hindi.

Example 4.4
Calculate the correlation coefficient between x and y from the following data:
X series Y series
Number of pairs of observations 15 15
Arithmetic mean 25 18
Standard deviation 3.01 3.03
Sum of the squares of deviation from mean (𝑥 − 𝑥̅ )2 136 138
Sum of the product of the deviations of x and y series from their respective means = 122
(𝑥 − 𝑥̅ )(𝑦 − 𝑦̅)

Solution:
𝟏 122
∑(𝒙−𝒙
̅)(𝒚−𝒚
̅)
𝒏 15
r= = = 0.8917
𝟏 𝟏 3.01×3.03
̅)𝟐 √ ∑(𝒚−𝒚
√ ∑(𝒙−𝒙 ̅ )𝟐
𝒏 𝒏
Example 4.5
A computer operator while calculating the correlation coefficient between two variates x and y for 25 pairs
of observations obtained the following constants:
N = 25,  x = 125,  x2 = 650,  y = 100,  y2 = 460,  xy = 508
It was however later discovered at the time of checking that he had copied down two pairs as (6,14) and
(8,6) while the correct pairs were (8,12) and (6,8). Obtain the correct value of the correlation coefficient.
Solution:
Corrected  x = Incorrect  x − 6 − 8 + 8 + 6 =125 +0 = 125
Corrected  y = Incorrect  y − 14 − 6 + 12 + 8 =100 +0 = 100
Corrected  x 2 = Incorrect  x2 − 62 − 82 + 82 + 62 =650 +0 = 650
Corrected  y 2 = Incorrect  y2 − 142 − 62 + 122 + 82 =460 – 24 = 436
Corrected  xy = Incorrect  xy − 84 − 48 + 96 + 48 =508 +12 = 520

1 520 125 100
∑ 𝑥𝑦−𝑥𝑦 − 
𝑛 25 25 25 0.8
r= = = = 0.67
1 2 2 1 2 2 650 436 1 .2
√ ∑ 𝑥 −𝑥 √ ∑ 𝑦 −𝑦 −5 2
−4 2
𝑛 𝑛 25 25
1. Calculate Karl Pearson’s co-efficient of correlation from the following data:

X 7 9 13 16 19 21 25 34
Y 11 13 16 16 19 26 23 36
Solution:
X- X dx2 Y= Y dy2 dxdy
X
dx (x − x ) 2 Y
Dy (y− y )
2
( x − x )( y − y )
7 -11 121 11 -9 81 99
9 -9 81 13 -7 49 63
13 -5 25 16 -4 16 20
16 -2 4 16 -4 16 8
19 +1 1 19 -1 1 -1
21 +3 9 26 +6 36 18
25 +7 49 23 +3 9 21
34 +16 256 36 +16 256 256
∑X = 144 +27 ∑ x2= 546 ∑ Y = 160 = +25 ∑ y2 = 464 = +485
-27 - 25 -1
=0 =0 = 484
X=
X =
144
= 18 and Y =
 Y = 160 = 20
N 8 N 8
1
 dxdy
The formula for correlation is, r = n
1 2 1 2
 n  dx   n  dy 
Substituting the values from the above table in the formula, we get
484
r= = 0.9615
√546𝑋464
Therefore, there is a high degree of positive correlation between the variables.

2. From the following table, find correlation co-efficient between age and playing habits of
students.
AGE (YEARS) 15 16 17 18 19 20
NO. OF STUDENTS 250 200 150 120 100 80
REGULAR PLAYERS 200 150 90 48 30 12
SOLUTION:
AGE (YEARS) 15 16 17 18 19 20
NO. OF STUDENTS 250 200 150 120 100 80
REGULAR PLAYERS 200 150 90 48 30 12
Playing habit 0.8 0.75 0.6 0.4 0.3 0.15
Given that Age is the variable ‘X’ and the other variable ‘Y’ is the percentage of regular players.
It is calculated by the following formula.
Age (X) Playing habit dx = X – 17 dy = Y- dx2 dy2 dx dy

(Y) 0.6
15 0.8 -2 0.2 4 0.04 -0.4
16 0.75 -1 0.15 1 0.0225 -0.15
17 0.6 0 0 0 0 0
18 0.4 1 -0.2 1 0.04 -0.2
19 0.3 2 -0.3 4 0.09 -0.6
20 0.15 3 -0.45 9 0.2025 -1.35
Total 3 -0.6 19 0.395 -2.7
𝑛 ∑ 𝑑𝑥𝑑𝑦 − ∑ 𝑑𝑥 ∑ 𝑑𝑦 6 × (−2.7) − 3 × (−0.6)

𝑟= =
2 √6 × 19 − 32 √6 × 0.395 − (−0.6)2
√𝑛 ∑ 𝑑𝑥2 − (∑ 𝑑𝑥 )2 √𝑛 ∑ 𝑑𝑦2 − (∑ 𝑑𝑦 )
r = − 0.991
There is a strong negative correlation between age and playing habits.

𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑙𝑎𝑦𝑒𝑟𝑠
𝑌= × 100
𝑁𝑜.𝑜𝑓 𝑆𝑡𝑢𝑑𝑒𝑛𝑡𝑠
200 150 90
Y=  100 = 80 Y= 100 = 75 Y= 100 = 60
250 200 150
48 30 12
Y= 100 = 40 Y= 100 = 30 Y=  100 = 15
120 100 80

AGE Playin X - 17 dx2 % of regular players
X g habit dx
Y (Y – 40)/10 dy2 dxdy
dy
15 80 -2 4 80 4.0 16 -8
16 75 -1 1 75 3.5 12.25 -3.5
17 60 0 0 60 2.0 4 0
18 40 +1 1 40 0.0 0 0
19 30 +2 4 30 -1.0 1 -2
20 15 +3 9 15 -2.5 6.25 -7.5
∑X = 105 3 ∑ dx = 19 ∑ Y = 300
2 6.0 39.5 -21
X=
X 105
= = 17.5
N 6
Y=
 Y = 300 = 50
N 6
The formula for correlation is
𝑁 ∑ 𝑑𝑥𝑑𝑦 − ∑ 𝑑𝑥 ∑ 𝑑𝑦
𝑟=
2
√𝑛 ∑ 𝑑𝑥2 − (∑ 𝑑𝑥 )2 √𝑛 ∑ 𝑑𝑦2 − (∑ 𝑑𝑦 )
6×(−21)−(3)(6)
𝑟=
√6×19−(3)2 √6×39.5−(6)2
−126−18 −144
𝑟= = = −𝟎. 𝟗𝟗𝟏
10.247 ×14.177 145.276
Therefore, there is a high degree of negative correlation between age and playing habit of
students.
3. From the following data compute the co-efficient of correlation.

X Y
Mean 14.6 12.7
Sum of Squares of deviations from mean 115.96 59.04
Sum of the products of deviations of X and 53.95
Y series from their respective means
No. of pairs of value 10
∑(𝒙 − 𝒙
̅)(𝒚 − 𝒚
̅) = 𝟓𝟑. 𝟗𝟓 ….. ( dxdy)
Solution:
𝟏 𝟓𝟑.𝟗𝟓
∑(𝒙−𝒙
̅)(𝒚−𝒚
̅) ∑ 𝑑𝑥𝑑𝑦 𝟓𝟑.𝟗𝟓
𝒏 𝟏𝟎
𝒓= = = = = 𝟎. 𝟔𝟓𝟐
𝟏 𝟏 √∑ 𝑑𝑥 2 ×∑ 𝑑𝑦 2 𝟏𝟏𝟓.𝟗𝟔 𝟓𝟗.𝟎𝟒 √𝟏𝟏𝟓.𝟗𝟔×𝟓𝟗.𝟎𝟒
̅)𝟐 √ ∑(𝒚−𝒚
√ ∑(𝒙−𝒙 ̅ )𝟐 √ √
𝒏 𝒏 𝟏𝟎 𝟏𝟎

5.4 Probable error – concept, uses and interpretation:
Probable error:
It is defined as the difference while calculating correlation co-efficient for a sample of observations
instead of the entire population. It is given by
1 − r 2 
PE = 0.6745  
 n 
r = co-efficient of correlation
n = Number of observations
Limits of population correlation coefficient r : r  P.E.
4. If r = 0.6 and n = 64, find out the probable error of the co-efficient of correlation and
determine the limits for population r.
1−𝑟 2
Solution: 𝑃. 𝐸 = 0.6745 ×
√𝑛
1−(0.6)2
= 0.6745 ×
√64
1−0.36
= 0.6745 ×
8
0.64
= 0.6745 
8
0.43168
= 8
= 0.054
Limits of population correlation coefficient r : r  P.E. = 0.6  0.054
Lower limit of r = r – P.E. = 0.6 – 0.054
= 0.546
Upper limit of r = r + P.E. = 0.6 + 0.054
= 0.654
Therefore, the limits for population correlation coefficient is (0.546, 0.654)

2. The correlation coefficient is 0.64 and its P.E. is 0.1372. What is the value of n?
1−𝑟 2
𝑃. 𝐸. = 0.6745 ×
√𝑛
1−(0.64)2
0.1372 = 0.6745 ×
√𝑛
0.5904
0.1372 = 0.6745 ×
√𝑛
𝟎.𝟏𝟑𝟕𝟐 𝟏 𝟎.𝟔𝟕𝟒𝟓×𝟎.𝟓𝟗𝟎𝟒
×= √𝒏 =
𝟎.𝟔𝟕𝟒𝟓×𝟎.𝟓𝟗𝟎𝟒 √𝒏 𝟎.𝟏𝟑𝟕𝟐
𝟏
(𝟎. 𝟑𝟒𝟒𝟓)𝟐 = 𝒏
𝟏
𝒏 = (𝟎.𝟑𝟒𝟒𝟓)𝟐 = 𝟖. 𝟒𝟑
𝒏=𝟗
5.3.3 Spearman’s Rank Correlation Co-Efficient:
The coefficient of rank correlation is based on the various values of the variables and is denoted
by . It is applied in the problems in which data cannot be measured quantitatively but qualitative
assessment is possible such as beauty, honesty, etc.
When the data is quantitative we use Karl Pearson’s correlation coefficient. But if the either
qualitative or quantitative we use Spearman’s correlation coefficient. Here we rank observations
for both variables separately either in the ascending or descending order of values taken by them.
In case of repeated observations, we assign the average ranks to these observations. Depending
upon the data being non-repeated or repeated values, we use the following formulae suggested by
Spearman, which is denoted by ‘’. Its limits are similar to ‘r’, which lies between ‘-1’ and ’+1’.
The coefficient of rank correlation is given by
6 ∑ 𝑑2 6 ∑ 𝑑2
𝜌 =1−[ ] (or) 𝜌 =1−[ ]
𝑛(𝑛2 −1) 𝑛3 −𝑛
where di = Rank (x) – Rank (y)
n = number of pairs or observations
Expression for Spearman’s Rank Correlation in case of repeated ranks

  n 2 m1 (m12 − 1) m 2 (m 22 − 1)  
 6   d i + +  + ... 

 = 1 −    
i =1 12 12
n (n − 1)
2 
 
 
where m1, m2,… are the number of times a rank is repeated.
Merits of rank correlation
• It is simpler to understand and easy to calculate as compared to Karl Pearson’s method.

• It is useful for qualitative data such as beauty, honesty, efficiency, etc.
• It is the useful method when the actual data is not given but only the ranks are given.
Demerits of rank correlation
• It cannot be used for grouped frequency distribution.

• It is not accurate as Karl Pearson’s coefficient of correlation.
• It cannot be used in a continuous series.
• When the number of items is more than 30 and if the ranks are known, this method consumes more
time and therefore cannot conveniently be used.
PROBLEMS ON SPEARMAN’S RANK CORRELATION

Calculation of rank correlation – When ranks are not repeated
5. Calculate the rank correlation co-efficient for the following data:
X 60 34 40 50 45 41 22 43 42 66 64 46
Y 75 32 35 40 45 33 12 30 36 72 41 57
SOLUTION:
X R1 Y R2 D = Rx - Ry ( R1 - R2 )2= D 2
60 10 75 12 -2 4
34 2 32 3 -1 1
40 3 35 5 -2 4
50 9 40 7 2 4
45 7 45 9 -2 4
41 4 33 4 0 0
22 1 12 1 0 0
43 6 30 2 4 16
42 5 36 6 -1 1
66 12 72 11 1 1
64 11 41 8 3 9
46 8 57 10 -2 4
∑ D 2 = 48
The Spearman’s Rank Correlation is
6 ∑ 𝑑2
𝜌 =1−[ ]
𝑛(𝑛2 − 1)
6 × 48
𝜌 =1−[ ]
12(122 − 1)
288
𝜌 =1−[ ]
1716
= 1 – 0.168
𝜌 = 0.832
There is high positive correlation between X and Y.
6. From the following data calculate the co-efficient of rank correlation between X & Y.
X 36 56 20 65 42 33 44 50 15 60
Y 50 35 70 25 58 75 60 45 80 38
7. Ten competitors in a beauty pageant are ranked by three judges in the following order:
1st Judge 1 5 4 8 9 6 10 7 3 2
nd
2 Judge 4 8 7 6 5 9 10 3 2 1
3rd Judge 6 7 8 1 5 10 9 2 3 4
Use rank correlation co-efficient to discuss which pair of judges have the nearest approach
to common taste in beauty.
SOLUTION:
Computation of rank correlation
Judge Judge Judge D1 = (R1-R2)2 D2 = (R2-R3)2 D3 = (R3-R1)2
1st R1 2nd R2 3rd R3 R1-R2 D1 2 R2-R3 D2 2 R1-R3 D3 2
1 4 6 -3 9 -2 4 -5 25
5 8 7 -3 9 1 1 -2 4
4 7 8 -3 9 -1 1 -4 16
8 6 1 2 4 5 25 2 49
9 5 5 4 16 0 0 4 16
6 9 10 -3 9 -1 1 -4 16
10 10 9 0 0 1 1 0 1
7 3 2 4 16 1 1 5 25
3 2 3 1 1 -1 1 0 0
2 1 4 1 1 -3 9 -2 4
∑D2=74 ∑D2=44 ∑D =156
2

rk between 1st& 2nd judge rk between 2nd&3rd judge rk between 3rd & 1st judge
6 D 2 6 D 2 6 D 2
rk = 1 − rk = 1 − rk = 1 −
N3 − N N3 − N N3 − N
6  74 6  44 6  156
rk = 1 − rk = 1 − rk = 1 −
10 3 − 10 10 3 − 10 10 3 − 10
444 264 936
rk = 1 − rk = 1 − rk = 1 −
1000 − 10 1000 − 10 1000 − 10
444 264 936
rk = 1 − rk = 1 − rk = 1 −
990 990 990
rk = 1− 0.48484 rk = 1− 0.2666666 rk = 1− 0.9454545
rk = 0.5515 rk = 0.7333334 rk = 0.0545455
The rk is maximum between Judges 2nd& 3rd..

Therefore, Judge 2 and Judge 3 have the nearest approach to common taste in beauty.
Calculation of rank correlation – When ranks are given

8. Two ladies were asked to rank 7 different types of lipsticks. The ranks given by them
are given below.
X 2 1 4 3 5 7 6
Y 1 3 2 4 5 6 7
Calculate Spearman’s rank correlation.
Solution
Calculation of Spearman’s rank correlation.
X Y ( R1 - R2 ) ( R1 - R2 ) 2
R1 R2 D D2
2 1 1 1
1 3 -2 4
4 2 2 4
3 4 -1 1
5 5 0 0
7 6 1 1
6 7 -1 1
∑ D 2 = 12
6 ∑ 𝐷2
𝑟𝑘 = 1 − [ 𝑁3−𝑁 ]

6×12
= 1 − [73−7]
72
= 1−
343 − 7
72
= 1−
336
= 1 – 0.214
= 0.786
9. Ten competitors in a “Urban Edge-Summer Fall 2001” fashion show are ranked by 3
judges X, Y and Z in the following order:
JUDGE X 1 6 5 10 3 2 4 9 7 8
JUDGE Y 3 5 8 4 7 10 2 1 6 9
JUDGE Z 6 4 9 8 1 2 3 10 5 7
Use rank correlation to find out which pair of judges have the nearest approach to fashion
design.
Solution:
Judge X Judge Y Judge Z ( R1 - R2 ) 2 ( R2 − R3 ) 2 ( R3 − R1 ) 2
R1 R2 R3 D12 2 D23 2 D31 2
1 3 6 4 9 25
6 5 4 1 1 4
5 8 9 9 1 16
10 4 8 36 16 4
3 7 1 16 36 4
2 10 2 64 64 0
4 2 3 4 1 1
9 1 10 64 81 1
7 6 5 1 1 4
8 9 7 1 4 1
∑ D12 = ∑ D23 = 214
2 2
∑ D13 2 = 60
200
Rank correlation Rank correlation Rank correlation
between 1st and 2nd judge between 2nd and 3rd judge between 1st and 3rd judge
6 D12 2 6 D23 2 6 D31 2

r12 = 1 − r23 = 1 − r13 = 1 −
N3 − N N3 − N N3 − N
6  200 6  214 6  60
= 1− = 1− = 1−
10 3 − 10 10 3 − 10 10 3 − 10

1200 1284 360
= 1− = 1− = 1−
1000 − 10 1000 − 10 1000 − 10
1200 1284 360

=1− =1− =1−
990 990 990
= 1 – 1.212 = 1 – 1.270 = 1 – 0.364
= − 0.212 = − 0.270 = 0.636
Judges 1st and 3rd have the nearest approach fashion design.
Calculation of rank correlation – When ranks are repeated
10. Ten students obtained the following marks in Statistics and Accountancy. Find the rank
correlation coefficient.
Students A B C D E F G H I J
Statistics 115 109 112 87 98 120 98 100 98 118
Accountancy 75 73 85 70 76 82 65 73 68 80
Solution:
Ranks are not given while assigning ranks equal values should be awarded equal ranks.
Statistics R1 Accounting R2 D ( R1 - R2 ) 2
X Y D2
115 8 75 6 2 4.00
109 6 73 4.5 1.5 2.25
112 7 85 10 -3 9.00
87 1 70 3 -2 4.00
98 3 76 7 -4 16.00
120 10 82 9 1 1.00
98 3 65 1 2 4.00
100 5 73 4.5 0.5 0.25
98 3 68 2 1 1.00
118 9 80 8 1 1.00
N = 10 ∑ D 2 = 42.50
For repeated ranks find the mean of the ranks.
Substituting the values from the table, we get

 1 1 
6 D 2 + (m3 − m) + (m3 − m)
rk = 1 −  
12 12
N −N
3

 1 1 
642.5 + (33 − 3) + (2 3 − 2)
 12 12 
=1−
10 − 10
3
642.5 + 2 + 0.5)
=1−
1000 − 10
6  45
= 1−
990
270
= 1−
990
= 1 – 0.273
r = 0.727
5.5 Questions and Answers:
1. Explain the meaning and significance of the concept of correlation. How will you calculate
it from statistical point of view?
2. Define Karl Pearson’s coefficient of correlation. What is it intended to measure?
3. How do you interpret a calculated value of Karl Pearson’s coefficient of correlation?
Discuss in particular the values of r=0, r = -1 and r = +1.
4. Explain what is meant by coefficient of correlation between two variables. What are the
different methods of finding correlation? Distinguish between Positive and Negative
correlation.
5. In a private data if  (X − X ) 2
= 400,  (Y − Y ) 2
= 25 and  (X − X ) (Y − Y ) = 65, find
coefficient of correlation. (Ans. 0.65)
6. In a bivariate data of Cov (X, Y) = 50, Var (X) = 150 and Var (Y) = 144, find correlation
coefficient.
(Ans. 0.34)
7. If bxy = 0.3 and byx = 1.4, find correlation coefficient. (Ans. 0.65)
8. From the following data in six cities calculate the co-efficient of correlation between the density of
population and death rate
9.
City A B C D E F
Density of population 200 500 400 700 600 300
Population (in 000) 30 90 40 42 72 24
No. Of deaths 300 1440 560 840 1224 312

10. Following are the results of B.com Examination in a college. Compare co-efficient correlation
between age and success in the examination and interpret the result.
Age of candidates 20-21 21-22 22-23 23-24 24-25 25-26

Candidate appeared 120 100 70 40 10 5
Successful candidates 72 55 35 18 4 1
12. The following table gives the distribution of the total population and those who are totally or partially
blind among them. Find out if there is any relation between age and blindness.
Age (years) 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80
Population (‘000) 100 60 40 36 24 11 6 3
Blind 55 40 40 40 36 22 18 15
13. Given the following calculate Karl Person’s co-efficient of r between X and Y series
X Y
Sum of the deviations from assumed mean -14 18
Sum of squares of deviations from assumed mean 4304 6304
Sum of products of deviations from their respective assumed 1510
means
No. of pairs of observations 12
14. The following table gives the distribution of the density of population and the death rates. Find out if
there is any relationship between density of population and death rate.
15.
Districts A B C D E
Kilometers 120 150 80 50 200
Population 24000 75000 48000 40000 50000
No. Of deaths 288 1125 768 720 650
16. Calculate Karl Pearson’s correlation coefficient for the following bivariate data and comment
on the result.
X 33 32 46 36 28 40 35 38 41
Y 31 30 28 26 30 31 30 34 34
(Ans. 0.0615)
17. Calculate Karl Pearson’s coefficient of correlation between the marks out of 25 marks secured
by 10 students in Statistics and Accountancy.
Marks in Statistics 18 17 23 22 21 20 19 19 20 21
Marks in Accountancy 16 12 20 15 22 15 11 14 19 16
(Ans. 0.6)

18. For the following data, find the coefficient of correlation and comment on the result.
Supply (Units) 83 91 86 82 80 93 96 89 85
Price (per Unit) 133 117 130 140 146 100 95 115 127
(Ans. −0.9806)
19. Compute correlation coefficient for the following bivariate data

X 100 102 104 105 92 96 98 99 100 93
Y 98 100 103 101 94 92 104 96 95 97
(Ans. 0.6)
20. Calculate Karl Pearson’s correlation coefficient for the following data and comment on the
result.
Price (Rs.) 90 80 90 182 120 100
Supply (kg.) 150 100 120 170 160 100
(Ans. 0.7207)
21. Compute correlation coefficient for the following bivariate data.

Cost of advertising (thousands) 78 98 75 90 65 39 62 82 25 36
Sales (lakh Rs.) 84 91 68 86 53 47 58 62 60 51
(Ans. 0.7804)
22. Compute rank correlation coefficient for the following data.

X 75 37 35 82 87
Y 46 48 52 63 29
(Ans. 0.4)
23. The following are the marks obtained by 10 students in two subjects X and Y. Find rank
correlation coefficient:
X 76 57 68 47 99 61 44 82 58 30
Y 74 42 72 63 75 41 64 68 67 20
(Ans. 0.7939)
24. Calculate Spearmans correlation coefficient for the following data:

Marks in Physics 16 11 21 20 19 27 37 35 16 26 23
Marks in Chemistry 20 28 11 30 27 19 24 29 19 14 30
(Ans. 0.3)
25. Ten competitors were ranked in a beauty contest by three judges. Which pair of Judges has
the common taste is beauty:
Rank of Judge X 1 6 5 9 7 8 10 3 2 4
Rank of Judge Y 3 5 8 1 6 9 4 7 10 2
Rank of Judge Z 6 4 9 10 5 7 8 1 2 3
(Ans. Pxy = -0.21,Pyz = -0.29,Pxz = 0.64) Judges X and Z have common taste in beauty.

26. Find rank correlation coefficient for the data given below:
X 20 80 40 60 28 12 15 20
Y 30 60 20 10 50 30 40 30
27. Three judges ranked 10 entries in a fashion show. Find out which pair of judges have the
common taste in fashion show.
Judge A 1 5 4 7 8 6 9 3 2 10
Judge B 4 5 7 9 10 3 2 1 6 8
Judge C 6 3 8 0 9 7 4 5 1 2
(Ans: There exist common taste regarding fashion show between I & II, II & III judges. rk between
I & II = 0.345, II & III= 0.3434, III & I =0.9091)
28. Calculate the coefficient of concurrent deviations from the following data:
No. of pairs of observations = 96

No. of pairs of concurrent deviations = 36
(r = -0.492)
29. Calculate the coefficient of correlation and find its probable error from the following data:
X 7 6 5 4 3 2 1
Y 18 16 14 12 10 6 8
(r = 0.9643, P.E. = 0.0179)
30. Calculate the co-efficient of correlation from the following data.

X 48 33 40 9 16 16 65 24 16 57
Y 13 13 24 6 15 4 20 9 6 19
31. Calculate rank correlation co-efficient for the following data:

X 93 85 83 71 69 71 52 71 69 60
Y 98 43 43 43 51 58 60 71 83 51
32. Calculate co-efficient correlation under rank difference method for the following data.
X 53 98 95 81 70 81 65 81
Y 25 47 82 76 53 61 75 70

REGRESSION ANALYSIS
5.6 Linear Regression Analysis
Correlation analysis examines the extent and degree of relationship between the two variables i.e.,
it measures the closeness with which two or more variables co-vary in a given period of study.
Similarly, we can estimate or predict the value of a variable given the value of another variable on
the basis of some functional relationship between them. The statistical technique of estimating or
predicting the value of the unknown variable with the value of the known variable is called
Regression Analysis. The unknown value is the dependent variable and the known value is called
the independent variable.
Regression analysis is the theory of estimation of unknown values of a variable with the help of
known values of the other variable
Regression analysis is a statistical technique for estimating the relationships among variables. It includes
many techniques for modeling and analyzing several variables, when the focus is on the relationship
between a dependent variable and one or more independent variables. More specifically, regression analysis
helps one understand how the typical value of the dependent variable changes when any one of the
independent variables is varied, while the other independent variables are held fixed. Most commonly,
regression analysis estimates the conditional expectation of the dependent variable given the independent
variables — that is, the average value of the dependent variable when the independent variables are fixed.
5.6.1 Concepts of Regression Lines or regression Equations:
When we have two variables say x and y, a mathematical relationship between them is framed.
This can be done using the method of least squares which results in the following equations known
as regression equations.
1. Regression equation of x on y:
Here the assumption is x is treated as a dependent variable and y is treated as an independent
variable. It is given by
( x − x ) = bxy ( y − y )
Here,
x =∑x/n
y=∑y/n
bxy = Regression coefficient of x on y
𝑆𝐷(𝑥)
=r 𝑆𝐷(𝑦)
σx
= r
σy
n XY −  X  y
=
n Y 2 − n( Y )
2

𝑛∑𝑋𝑌−∑𝑋∑𝑌
= or
𝑛 ∑ 𝑌 2 −(∑𝑌)2
∑( x − x)( y − y )
=
[∑ ( y − y ) 2]
2. Regression equation of y on x:
Here the assumption is y is treated as a dependent variable and x is treated as an
independent variable. It is given by
( y − y ) = byx ( x − x )
b yx Regression co efficient of y on x
Here, X =
x Y=
y
N N
𝑏𝑦𝑥 = Regression coefficient of y on x
𝑆𝐷(𝑦)
= 𝑟 𝑆𝐷(𝑥)
𝜎𝑦
=𝑟 𝜎𝑥
𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌
= 𝑛 ∑ 𝑋 2 −(∑ 𝑋)2
∑(𝑥−𝑥)(𝑦−𝑦)
= ∑(𝑥−𝑥)2
Expression for regression coefficients.
y Cov.( x, y )
The regression coefficient of y on x is: byx = r =
x Var( x)
1 n
 xi y i − x y
n i =1
=
1 n 2

2
xi − x
n i =1
x Cov.( x, y )
The regression coefficient of x on y is: bxy = r =
y Var( y )

1 n
 xi y i − x y
n i =1
=
1 n 2

2
yi − y
n i =1
Correlation coefficient is the geometric mean of two regression coefficients.
y x
We have byx = r and bxy = r
x y
y x
byx  bxy = r  r
x y
byx  bxy = r2
b yx  b xy = r
Therefore, correlation coefficient is the geometric mean of two regression coefficients.
Formulas to remember
The regression line of X on Y is X = a + bY
x Cov.( x, y )
The regression coefficient of x on y is: bxy = r =
y Var( y )
1 n
 xi y i − x y
n i =1 n XY −  X  y
= (or) =
n Y 2 − n( Y )
2
1 n 2
y − y
2
n i =1 i
̅ − 𝒃𝒀
𝒂= 𝑿 ̅
The regression line of Y on X is Y = a + bX
y Cov.( x, y )
The regression coefficient of y on x is: byx = r =
x Var( x)

1 n
 xi y i − x y
n i =1 n XY −  X  Y
= (or) =
n X 2 − (  X )
n 2
1

2
x 2
− x
n i =1 i
̅ − 𝒃𝑿
𝒂= 𝒀 ̅
Properties of regression coefficients
1. The correlation coefficient is the geometric mean of two regression coefficients.

2. If one of the regression coefficients is greater than unity, then the other is less than unity.
3. Arithmetic mean of regression coefficients is greater than the correlation coefficient.
4. Regression coefficients are independent of change of origin but not of scale.
5. Both regression coefficients will have the same sign. i.e., either both are positive or both are negative.
6. The sign of correlation is same as that of regression coefficients.
7. The two lines of regression always intersect at the means ( x, y ) .

8. If r = 0, then regression coefficients are zero.
9. The regression lines become identical if r = 1.
10. It follows from the regression equations that x = x and y = y , if r = 0, and the lines are perpendicular
to each other.
Difference between correlation and regression
Correlation Regression
1. It is a relationship between two or more Regression means stepping back to average

variables. value.
2. It is a measure of direction and degree of Regression coefficients are the mathematical

linear relationship between two variables. measures expressing the average relationship
between the two variables.
3. It is symmetric in x and y. It is not symmetric.
i.e. rxy = ryx i.e. byx  bxy

Correlation Regression
4. It does not reflect upon the nature of It reflects on the nature of variables, i.e. which
variable (dependent or independent is dependent and which is independent. It
variable) estimates the value of dependent variable for
any given value of independent variable.
5. It does not imply cause and effect It indicated the cause and effect relationship
relationship. between the variables.
6. It is a relative measure and independent of It is an absolute measure of finding out the

units of measurement. relationship between two or more variables.
7. It indicates degree of association. It is used to forecast the nature of dependent

when the value of independent variable is
known.
8. It has limited application as it is confined to It has wider applications as it also studies non-
the study of linear relationship between two linear relationship between two variables.
variables.
Utility of regression analysis
1. The cause and effect relationship are indicated from the study of regression analysis.
2. It establishes the rate of change in one variable in terms of the changes in another variable.
3. It is useful in economic analysis as regression equation can determine an increase in the cost of living
index for a particular increase in general price level.
4. It helps in prediction and thus it can estimate the values of unknown quantities.
5. It helps in determining the coefficient of correlation as r = b yx  b xy .
6. It enables us to study the nature of relationship between the variables.
7. It can be useful to all natural, social and physical sciences, where the data are in functional relationship.
Problems on Regression Equations and Coefficients

11. From the following data
(a) Calculate the two regression equations.
(b) Estimate the value of X when Y = 40.
(c) Determine the value of correlation co-efficient.
X 20 24 26 34 36
Y 10 12 14 18 26

Solution:
X x= x2 = Y y= y2 = xy
X- X (X - X )2 Y- Y (Y - Y )2
20 -8 64 10 -6 36 +48
24 -4 16 12 -4 16 +16
26 -2 4 14 -2 4 +4
34 +6 36 18 +2 4 +12
36 +8 64 26 +10 100 +80
∑X = 140 ∑x=0 ∑ x2= ∑Y=80 ∑y=0 ∑ y2 = 160 ∑ xy = 160
184
X=
X =
140
Y =
Y =
80
N 5 N 5
= 28 = 16
𝟏 𝟏
̅) 𝟐
𝝈𝒙 = √𝒏 ∑(𝒙 − 𝒙 ̅ )𝟐
𝝈𝒚 = √𝒏 ∑(𝒚 − 𝒚
𝟏 𝟏
𝝈𝒙 = √𝟓 (𝟏𝟖𝟒) = 𝟔. 𝟎𝟔𝟔 𝝈𝒚 = √𝟓 (𝟏𝟔𝟎) = 𝟓. 𝟔𝟓𝟕
∑ 𝑥𝑦 160
𝑟= = = 0.9325
√∑ 𝑥 2 ∑ 𝑦 2 √184×160
(a) Regression equation of Y on X

y
Y −Y = r (X − X )
x
y 5.656
r = 0.9325  = 0.8694 (Regression coefficient of Y on X)
x 6.066
Substituting the values, we get

Y - 16 = 0.8694 (X – 28)
Y - 16 = 0.8694 X – 24.3432
Y = 0.8694 X + 16 – 24.3432
Y = − 8.34 + 0.8694 X
(b) Regression equation X on Y

x
X −X =r (Y − Y )
y

x 6.066
r = 0.9325  = 1.00
y 5.656
Substituting the values, we get

X - 28 = 1.00 (Y – 16)
X - 28 = Y – 16
X = Y + 12
(c) When Y = 40, X will be

X = 12 + 40 = 52
(d) r = byx  bxy

(correlation coefficient is the geometric mean of two regression coefficients)
= 0.8695652  1
= 0.8695652
= 0.9325
Another method:
X x= x2 = Y y= y2 = xy
X- X (X - X )2 Y- Y (Y - Y )2
20 -8 64 10 -6 36 +48
24 -4 16 12 -4 16 +16
26 -2 4 14 -2 4 +4
34 +6 36 18 +2 4 +12
36 +8 64 26 +10 100 +80
∑X = 140 ∑x=0 ∑ x2= ∑Y=80 ∑y=0 ∑ y2 = 160 ∑ xy = 160
184
Y = a + bX
𝒙𝒚
𝒃𝒚𝒙 = 𝒙𝟐 ̅ − 𝒃𝑿
𝒂= 𝒀 ̅
𝟏𝟔𝟎
𝒃𝒚𝒙 = 𝟏𝟖𝟒 = 𝟎. 𝟖𝟔𝟗𝟔 𝒂 = 𝟏𝟔 − 𝟎. 𝟖𝟔𝟗𝟔 × 𝟐𝟖 = −𝟖. 𝟑𝟒𝟗
Regression equation of Y on X is Y = −8.349 + 0.8696 X

X = a + bY
𝒙𝒚
𝒃𝒙𝒚 = 𝒚𝟐 ̅ − 𝒃𝒀
𝒂= 𝑿 ̅
𝟏𝟔𝟎
𝒃𝒚𝒙 = 𝟏𝟔𝟎 = 𝟏 𝒂 = 𝟐𝟖 − 𝟏 × 𝟏𝟔 = 𝟏𝟐
Regression equation of X on Y is X = 12 + Y
(d) r = byx  bxy
𝑟 = √0.8696 × 1 = √0.8696 = 𝟎. 𝟗𝟑𝟐𝟓
12. Obtain the two regression equations from the following:

X series Y series
Mean 20 25
Variance 4 9
Coefficient of correlation 0.75
Also find the value of Y when X is 24.
Solution:
S.D = √𝑉𝑎𝑟𝑖𝑎𝑛𝑐𝑒 =
x = 4 = 2
y = 9 = 3
Regression equation X on Y ( x = a + by )
𝑥 − 𝑥̅ = 𝑏𝑥𝑦 (𝑦 − 𝑦̅)
𝜎𝑥
𝑥 − 𝑥̅ = 𝑟 (𝑦 − 𝑦̅)
𝜎𝑦
2
𝑥 − 20 = 0.75 × (𝑦 − 25)
3
𝑥 − 20 = 0.5(𝑦 − 25)
𝑥 − 20 = 0.5𝑦 − 12.5
𝑥 = 0.5𝑦 − 12.5 + 20

𝒙 = 𝟕. 𝟓 + 𝟎. 𝟓𝒚
𝒙 = 𝒂 + 𝒃𝒙𝒚 𝒚
𝜎𝑥 2
𝑏𝑥𝑦 = 𝑟 = 0.75 × = 𝟎. 𝟓
𝜎𝑦 3
𝑎 = 𝑥̅ − 𝑏𝑦̅
𝑎 = 20 − 0.5 × 25
𝑎 = 20 − 12.5
𝒂 = 𝟕. 𝟓
Regression equation of X on Y is x = a + bY
X = 7.5 + 0.5 Y
Regression equation Y on X
𝑦 − 𝑦̅ = 𝑏𝑦𝑥 (𝑥 − 𝑥̅ )
𝜎𝑦
𝑦 − 𝑦̅ = 𝑟 (𝑥 − 𝑥̅ )
𝜎𝑥
3
𝑦 − 25 = 0.75 × (𝑥 − 20)
2
𝑦 − 25 = 1.125(𝑥 − 20)
𝑦 − 25 = 1.125𝑥 − 22.5
𝑦 = 1.125𝑥 − 22.5 + 25
𝒚 = 𝟐. 𝟓 + 𝟏. 𝟏𝟐𝟓𝒙
When X = 24, Y = 2.5 + 1.125 × 24

Y = 2.5 + 27
Y = 29.5
13. From the following data find

i) The most probable value of X when Y is 20 and of Y when X is 30.
ii) The co-efficient of correlation.
The mean value of X = 6. The mean value of Y = 8.

The regression co-efficient of X on Y = − 1.3 bxy
The regression co-efficient of Y on X = − 0.65 byx
𝒓 = √𝒃𝒙𝒚 𝒃𝒚𝒙 = √(−𝟏. 𝟑)(−𝟎. 𝟔𝟓) = 𝟎. 𝟗𝟏𝟗
Solution:
Given 𝑥̅ = 6; 𝑦̅ = 8; 𝑏𝑥𝑦 = − 1.3; 𝑏𝑦𝑥 = −0.65
Regression line of X on Y X = a + bxyY
bxy = −1.3
a = 𝑥̅ − 𝑏𝑥𝑦 𝑦̅
a = 6 − (−1.3) × 8
a = 6 + 10.4
a = 𝟏𝟔. 𝟒
Regression line of X on Y X = 16.4 − 1.3 Y
When Y = 20, X = 16.4 – 1.3×20
X = − 9.6
Regression line of Y on X Y = a + byxX

byx = −0.65
a = 𝑦̅ − 𝑏𝑦𝑥 𝑥̅
a = 8 − (−0.65) × 6
a = 8 + 3.9
a = 𝟏𝟏. 𝟗
Regression line of Y on X Y = 11.9 − 0.65Y
When X = 30, Y = 11.9 – 0.65×30
X = − 7.6
Correlation Coefficient 𝒓 = √𝒃𝒙𝒚 𝒃𝒚𝒙
𝒓 = √(−𝟏. 𝟑)(−𝟎. 𝟔𝟓)

𝒓 = − 𝟎. 𝟗𝟏𝟗𝟐

14. To study the relationship between expenditure on accommodation Rs. X and
expenditure on food and entertainment, Rs. Y an enquiry into 50 families gave the
following results.
∑X = 8500, ∑Y = 9600, X =60, Y =20, r = 0.6.
Estimate the expenditure on food and entertainment when expenditure on accommodation is
Rs.200.
Solution:
The required answer can be obtained by regression equation on Y on X.
Regression equation Y on X
y
Y −Y = r (X − X )
x
9600
Y = = 192, r = 0.6, Y = 20
50
8500
X= = 170 , X = 60
50
20
Y – 192 = 0.6 × (X – 170)
60
Y – 192 = 0.2 (X – 170)
Y – 192 = 0.2 X – 34
Y = 158 + 0.2 X
Estimation: When X = 200, the value of Y will be
Y = 0.2 (200) = 158 = 198
Example
In the estimation of regression equations of two variables X and Y, the following results were obtained.
X = 90, Y = 70, N = 10, x 2
= 6360, y 2
= 2860,  xy = 3900, where x and y are deviations
from their respective means. Obtain the two lines of regression.
Solution:
1
n
 xy 3900
byx = = = 0.6132
1
x 2 6360
n

1
n
 xy 3900
bxy = = = 1.3636
1
n
y 2 2860
y-intercept = Y − byx X = 70 − 0.6132  90 = 14.81 ( constant a y = a + bx)
x-intercept = X − bxy Y = 90 − 1.3636  70 = −5.45 ( constant a x = a + by)
Regression line of Y on X : Y = 14.81 + 0.61 X
Regression line of X on Y : X = − 5.45 + 1.36 Y
Example
By using the following data, find the two li nes of regression and from them compute correlation coefficient.
X = 250 ; Y = 300 ;  XY = 7900 ; X 2
= 6500 ; Y 2
= 10000 ; and N = 10.
Solution:
(i) Regression Line of Y on X: Y − Y = b yx ( X − X )
1 n

n i =1
X i Yi − X Y 7900
10
− 25  30
byx = = = 1 .6
1 n 2 6500
X − X
2
− 25 2
n i =1 i 10
Regression Line of Y on X: Y − 30 = 1.6 ( X − 25)
Regression Line of Y on X: Y = 1.6 X − 10

(ii) Regression Line of X on Y: X − X = b xy (Y − Y )
1 n
 X i Yi − X Y 7900
n i =1 10
− 25  30
bxy = = = 0 .4
1 n 2 10000
Y − Y
2
− 30 2
n i =1 i 10
Regression Line of X on Y: X − 25 = 0.4 (Y − 30)
Regression Line of X on Y: X = 0.4 Y + 13
r= b yx  b xy = 1.6  0.4 = + 0.8
Example
Find the mean values of the variables X and Y and correlation coefficient between them from the following
regression lines:
2y − x − 50 = 0 … (1)
3y − 2x − 10 = 0 … (2)
Solution:
By solving the given lines, we get x = 130 and y = 90.
− x + 2y = 50
− 2x + 3y = 10 2x = 3y - 10
(1) x 2 -2x + 4y = 100 (3)
-2x + 3y = 10 (4)
Subtracting (4) from (3), we get
̅ = 90
𝒀

substituting the value of y =90 in equation (1), we get
-X+2×90 = 50
-X+180 = 50
-x = 50 – 180
̅ = 130
𝑿
Therefore, the mean value of x is 130 and mean value of y is 90.
− x + 2y = 50 -X = -2Y+50 X = 2Y-50 X = -50+2Y bXY = 2

2 10 10 2 2
− 2x + 3y = 10 3Y = 2X+10 Y = 3𝑋 + 3
Y= 3
+ 3𝑋 bYX = 3
2 4
Correlation coefficient = √𝑏𝑥𝑦 𝑏𝑦𝑥 = √2 × 3 = √3 = 1.15 (Not valid)
1 1
− x + 2y = 50 2Y = 50+X Y = 25+2 𝑋 bYX = 2
3 3
− 2x + 3y = 10 -2X = 10–3Y X = -5+2 𝑌 bXY = 2
3 1 3
Correlation coefficient = √𝑏𝑥𝑦 𝑏𝑦𝑥 = √2 × 2 = √4 = 𝟎. 𝟖𝟔𝟔
Regression line of Y on X Y = 25 + 0.5 X (from equation (1) )
Regression line of X on Y X = -5 + 1.5 Y (from equation (2) )
Regression coefficient of Y on X byx = 0.5
Regression coefficient of X on Y bxy = 1.5

From (1), we have byx = 0.5
From (2), we have bxy = 1.5
Therefore, correlation coefficient r = b yx  b xy = 0.5 1.5 = + 0.867
− x + 2y = 50 … (X on Y)
− 2x + 3y = 10 … (Y on X)
-x = 50 – 2y (or) x = -50+2y → bxy = 2

10 2 2
3y = 10 + 2x (or) y= 3
+ 3 𝑥 → byx = 3
r= byx  bxy = 0.667  2 = 1.334 = 1.155
− x + 2y = 50 … (Y on X)
𝟏
2y = 50 + x (or) y = 25 + 𝟐 𝒙 byx = ½ = 0.5
− 2x + 3y = 10 … (X on Y)
− 2x = 10 – 3y
𝟑
2x = −10 + 3y (or) x = −𝟓 + 𝟐 𝒚; bxy = 3/2 = 1.5
𝑟 = √𝑏𝑦𝑥 × 𝑏𝑥𝑦
𝑟 = √0.5 × 1.5 = √0.75 = +𝟎. 𝟖𝟔𝟕

Example
Find out the likely production corresponding to rainfall of 40 cms. from the data given below:
Rainfall (in cms) Output (in qtls)

Average 30 50
Standard deviation 5 10
Correlation 0.8
Solution:
Given x = 30 ; y = 50 ; x = 5 ; y = 10 and r = 0.8

y 10
Regression coefficient on y on x byx = r = 0.8  = 1.6
x 5
Regression Line of Production of Rainfall is Production = a + b(rainfall)
where a = y − b x = 50 − 1.6  30 = 2
i.e. Production = 2 + 1.6 (rainfall)
When rainfall is 40 cms., Production = 2 + 1.6 (40) = 66 qtls.
Example
Given the following information :
X Y
Arithmetic mean 6 8
Standard deviation 5 40 3
Correlation 8 15
Find (i) the regression coefficient of Y on X

(ii) the regression equation of X on Y
(iii) the most likely value of Y where X = 100
Solution:
y 8 40 3
(i) the regression coefficient of Y on X : byx = r = = 1.4222
x 15 5
(ii) the regression equation of X on Y : X − X = b xy (Y − Y )
x 8 5
bxy = r =  = 0.2
y 15 40 3
The regression equation of X on Y : X − 6 = 0.2 (Y − 8)

(iii) The regression equation of Y on X : Y − 8 = 1.4222 ( X − 6)
The most likely value of Y where X = 100 : Y − 8 = 1.4222 (100 − 6) = 141.69
Obtain the regression line of Y on X for the following data and

i. Estimate Y when X = 48.
ii. Find the correlation coefficient
X 55 56 42 47 36 49 42 60 72 63
Y 150 147 125 128 118 145 140 155 160 149
Solution:
Correlation coefficient
Regression line of Y on X : ( )
1 1 1 1 2
𝜎𝑥 = √𝑛 ∑ 𝑑𝑥2 − 𝑛 (∑ 𝑑𝑥 )2 𝜎𝑦 = √𝑛 ∑ 𝑑𝑦2 − 𝑛 (∑ 𝑑𝑦 )
dx = dy =
X Y dx2 dy2 dxdy
X – 56 Y – 140
55 150 -1 10 1 100 -10
56 147 0 7 0 49 0
42 125 -14 -15 196 225 210
47 128 -9 -12 81 144 108
36 118 -20 -22 400 484 440
49 145 -7 5 49 25 -35
42 140 -14 0 196 0 0
60 155 4 15 16 225 60
72 160 16 20 256 400 320
63 149 7 9 49 81 63
522 1417 -38 17 1244 1733 1156

= 56+ = 140+
Regression line of Y on X : ( )
( )
( )
When X = 48, 𝒀 = 𝟏𝟑𝟕. 𝟎𝟒

dx = dy =
X Y dx2 dy2 dxdy
X – 55 Y – 140
55 150 0 10 0 100 0
56 147 1 7 1 49 7
42 125 -13 -15 169 225 195
47 128 -8 -12 64 144 96
36 118 -19 -22 361 484 418
49 145 -6 5 36 25 -30
42 140 -13 0 169 0 0
60 155 5 15 25 225 75
72 160 17 20 289 400 340
63 149 8 9 64 81 72
522 1417 -28 17 1178 1733 1173
𝜎𝑦
Regression line of Y on X is 𝑌 − 𝑌̅ = 𝑟 𝜎 (𝑋 − 𝑋̅)
𝑥
1 −28
𝑋̅ = 𝐴 + ∑ 𝑑𝑥 = 55 + = 55 − 2.8 = 𝟓𝟐. 𝟐
𝑁 10
1 17
𝑌̅ = 𝐴 + ∑ 𝑑𝑦 = 140 + = 140 + 1.7 = 𝟏𝟒𝟏. 𝟕
𝑁 10
2
1 1
𝜎𝑥 = √ ∑ 𝑑𝑥2 − ( ∑ 𝑑𝑥 )
𝑛 𝑛
1178 −28 2
𝜎𝑥 = √ −( ) = 𝟏𝟎. 𝟒𝟗
10 10
2
1 1
𝜎𝑦 = √ ∑ 𝑑𝑦2 − ( ∑ 𝑑𝑦 )
𝑛 𝑛
1733 17 2
𝜎𝑦 = √ − ( ) = 𝟏𝟑. 𝟎𝟓
10 10

𝑁 ∑ 𝑑𝑥 𝑑𝑦 − ∑ 𝑑𝑥 ∑ 𝑑𝑦
𝒓=
√𝑁 ∑ 𝑑𝑥2 − (∑ 𝑑𝑥 )2 √𝑁 ∑ 𝑑𝑦2 − (∑ 𝑑𝑦 )2
10 × 1173 − (−28) × 17
𝒓=
√10 × 1178 − (−28)2 √10 × 1733 − (17)2
11730 + 476
𝒓= = 𝟎. 𝟖𝟗𝟐
104.86 × 130.54
𝜎𝑦
Regression line of Y on X is 𝑌 − 𝑌̅ = 𝑟 𝜎 (𝑋 − 𝑋̅)
𝑥
13.05
Regression line of Y on X is 𝑌 − 141.7 = 0.892 × 10.49 (𝑋 − 52.2)
Regression line of Y on X is 𝑌 − 141.7 = 1.11 (𝑋 − 52.2)
Regression line of Y on X is 𝑌 − 141.7 = 1.11𝑋 − 57.94
Regression line of Y on X is 𝑌 = 1.11𝑋 − 57.94 + 141.7
(i) Regression line of Y on X is 𝒀 = 𝟏. 𝟏𝟏𝑿 + 𝟖𝟑. 𝟕𝟔
(ii) When X = 48, 𝑌 = 1.11 × 48 + 83.76 = 𝟏𝟑𝟕. 𝟎𝟒
(iii) Correlation coefficient between X and Y is 0.892
Example:
(i) Find the two lines of regression from the following data.
(ii) Find the estimate of Y when X = 66.
(iii) Find the estimate of X when Y = 75.
(iv) Find the correlation coefficient between X and Y.
X: 57 58 59 59 60 61 62 64
Y: 67 68 65 68 72 72 69 71

Solution:
(i) Regression line of X on Y is X = a + bY
where b is the regression coefficient of X on Y

1
𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌 ∑ 𝑋𝑌−𝑋̅𝑌̅
𝑛
i.e. 𝑏𝑥𝑦 = (𝑜𝑟) 1
𝑛 ∑ 𝑌 2 − (∑ 𝑌)2 ∑ 𝑌 2 − 𝑌̅ 2
𝑛
𝑎 = 𝑋̅ − 𝑏𝑌̅
X Y X2 Y2 XY
57 67 3249 4489 3819
58 68 3364 4624 3944
59 65 3481 4225 3835
59 68 3481 4624 4012
60 72 3600 5184 4320
61 72 3721 5184 4392
62 69 3844 4761 4278
64 71 4096 5041 4544
480 552 28836 38132 33144
∑𝑿 𝟒𝟖𝟎 ∑𝒀 𝟓𝟓𝟐
̅=
𝑿 = = 𝟔𝟎 ̅=
𝒀 = = 𝟔𝟗
𝒏 𝟖 𝒏 𝟖
Regression line of X on Y = X = a + bY
𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌
The regression coefficient of x on y is: 𝑏𝑥𝑦 =
𝑛 ∑ 𝑌 2 − (∑ 𝑌)2
8 × 33144 − 480 × 552

𝑏𝑥𝑦 =
8 × 38132 − 5522
265152 − 264960
𝑏𝑥𝑦 = = 𝟎. 𝟓𝟒𝟓
305056 − 304704
̅ − 𝒃𝒀
𝒂= 𝑿 ̅
𝒂 = 𝟔𝟎 − 𝟎. 𝟓𝟒𝟓 × 𝟔𝟗

𝒂 = 𝟐𝟐. 𝟒
Regression line of X on Y = X = a + bY
Regression line of X on Y is X = 22.40 + 0.545 Y
Regression line of Y on X is Y = a + bX
𝑛 ∑ 𝑋𝑌−∑ 𝑋 ∑ 𝑌
The regression coefficient of x on y is: 𝑏𝑦𝑥 =
𝑛 ∑ 𝑋 2 − (∑ 𝑋)2
8 × 33144 − 480 × 552

𝑏𝑦𝑥 =
8 × 28836 − 4802
265152 − 264960
𝑏𝑦𝑥 = = 𝟎. 𝟔𝟔𝟕
230688 − 230400
̅ − 𝒃𝑿
𝒂= 𝒀 ̅
𝒂 = 𝟔𝟗 − 𝟎. 𝟔𝟔𝟕 × 𝟔𝟎
𝒂 = 𝟐𝟖. 𝟗𝟖
Regression line of Y on X is Y = a + bX
Regression line of Y on X is Y = 28.98 + 0.667 X
(ii) Find the estimate of Y when X = 66.
Y = 28.98 + 0.667 X
Y = 28.98 + 0.667 × 66
Y = 73.00
(iii) Find the estimate of X when Y = 75.
X = 22.40 + 0.545 Y
X = 22.40 + 0.545 × 75
X = 63.27
(iv) Find the correlation coefficient between X and Y.
We know that correlation coefficient r = √𝒃𝒙𝒚 × 𝒃𝒚𝒙

r = √𝟎. 𝟓𝟒𝟓 × 𝟎. 𝟔𝟔𝟕 = √𝟎. 𝟑𝟔𝟑𝟓 = 𝟎. 𝟔𝟎𝟑
𝑛 ∑ 𝑥𝑦−∑ 𝑥 ∑ 𝑦
The regression coefficient of y on x is: byx = 𝑛 ∑ 𝑥𝑖2 −(∑ 𝑥)2
8×33144−480×552 192
= 8×28836−4802
= 288 = 0.6667
552 480
a = Y − bX = − 0.6667  = 29
8 8
The regression equation of Y on X : Y = 29 + 0.6667 X
Estimate of Y when X = 66 is Y = 29 + 0.6667 × 66 = 73
𝑛 ∑ 𝑥𝑦−∑ 𝑥 ∑ 𝑦
The regression coefficient of x on y is: bxy = 𝑛 ∑ 𝑦𝑖2 −(∑ 𝑦)2
𝑎 = 𝑋 − 𝑏𝑌
8×33144−480×552 192
8×38132−5522
= 352
= 0.5455
480 552
a = 𝑋 − 𝑏𝑌 = 8
− 0.5455 × 8
= 22.36
The regression equation of X on Y : X = 22.36 + 0.5455 Y
When Y = 75, X = 22.36 + 0.5455×75 = 63.273
Short-cut Method:
n xy −  x  y
n  x i2 − ( x )
The regression coefficient of y on x is: byx = 2 ,
n xy −  x  y
n  y i2 − ( y )
The regression coefficient of x on y is: bxy = 2
where x = X – A and y = Y – B

X Y x = X – 60 y = Y – 69 x2 y2 xy
57 67 -3 -2 9 4 6
58 68 -2 -1 4 1 2
59 65 -1 -4 1 16 4
59 68 -1 -1 1 1 1
60 72 0 3 0 9 0
61 72 1 3 1 9 3
62 69 2 0 4 0 0
64 71 4 2 16 4 8
480 552 0 0 36 44 24
n xy −  x  y
n  x i2 − ( x )
The regression coefficient of y on x is: byx = 2
8 × 24 − 0 × 0
𝑏𝑦𝑥 = = 𝟎. 𝟔𝟔𝟔𝟕
8 × 36 − 02
𝑎 = 𝑌̅ − 𝑏𝑋̅ = 69 − 0.6667 × 60 = 𝟐𝟗
The regression equation of Y on X : Y = 29 + 0.6667 X
Estimate of Y when X = 66 is Y = 29 + 0.6667 × 66 = 73
n xy −  x  y
n  y i2 − ( y )
The regression coefficient of x on y is: bxy = 2 ; a = X − bY
8  32 − 8  8 192
= = 0.5455
8  44 − 8 2 352
480 552
a = X − bY = − 0.5455 = 22.36
8 8
The regression equation of X on Y : X = 22.36 + 0.5455 Y
1. Explain the concept of regression and point out its usefulness in dealing with business
problems.
2. Distinguish between correlation and regression analysis and indicate the utility of
regression analysis in economic activities.

3. What is linear regression? Why are there, in general, two regression lines? When do
they coincide? Explain the use of regression equations in economic enquiry.
4. If bxy = 0.3 and byx = 1.4 find correlation coefficient. (Ans. 0.65)
5. If regression line of Y on X is 3X+4Y=20. Find regression coefficient of Y on X.
(Ans. -0.75)
6. If regression line of X on Y is 5x+2y=16, find regression coefficient of X on Y.
(Ans. -0.4)
7. In a bivariate data given below, estimate the value of Y when X = 10.
X 3 5 1 2 3 1 1 7
Y 5 1 6 0 0 1 2 1
(Ans. Y=0.2)
8. Obtain the regression equation of Y on X for the following bivariate data
X 5 60 50 30 50 10 15 20 30 30
Y 130 395 300 335 350 240 250 300 310 300
(Ans. Y=213+2.8X)
9. Obtain the two regression equations and estimate the sales when the purchase is equal
to 105.
Purchase 62 72 98 76 81 56 76 92 49 88
Sales 112 124 131 117 132 96 120 136 85 97
(Ans. X=0.65Y+0.02, Y=0.78X+56.27, 138.17)
10. Estimate the value of Y when X = 37

X 45 43 46 44 42 40 41
Y 41 39 40 36 38 35 37
(Ans. 33)
11. Obtain the regression line of Y on X for the following data and
iii. Estimate Y when X = 48.
iv. Find the correlation coefficient
X 55 56 42 47 36 49 42 60 72 63
Y 150 147 125 128 118 145 140 155 160 149
(Ans. Y=83.76+1.11X, 137.04, 0.84)
12. Obtain the estimate of X when Y=15

X Y
Mean 900 12
S.D. 80 2
r=0.5
(Ans. 960)
13. In a bivariate data, given  X =40,  Y =60,  XY =1150,  Y 2

=4160, X 2
=1720 and N=10. Find correlation coefficient and regression equation of Y on X.

(Ans. 0.37, Y=3.67+0.58Y)

14. Obtain the two regression equations from the following:
A series B series
X 30 32
S.D 16 25
Correlation 0.76
(Ans: Regression on equation X on Y: 14.4352 + 0.4864 Y
Regression on equation Y on X: -3.625 +1.1875 X)
15. Compute the two regression coefficients from the data given below and find the value
of ‘r’ using the same:
X 7 4 8 6 5
Y 6 5 9 8 2
[Ans. bxy=1.2;byx=0.4; r = 0.6928]
16. The following table gives the ages and blood pressure (BP) of 10 women.
AGE 56 42 36 47 49 42 60 72 63 55
BP 147 125 118 128 145 140 155 160 149 150
(i) Find the correlation coefficient between X and Y.
(ii) Determine the regression equation of Y on X.
(iii) Estimate the blood pressure of a women whose age is 45 years.
[Ans. (i) r = 0.89 (ii) Y= 83.758 +1.11 X (iii) Y=134]
17. For a bivariate data the mean value of X is 20 and the mean value of Y is 45. The regression
coefficient Y on X is 4 and that of X on Y is 1/9. Find
i. The coefficient of correlation.
ii. The standard deviation of X if the standard deviation of Y is 12.
iii. Also write down the equations of regression lines.
((i) 0.67 (ii) 2 (iii) y = 4x-35, 9x = y+135)
18. A panel of judges A and B graded seven debators and independently awarded the following
marks:
Debator 1 2 3 4 5 6 7
Marks by A 40 34 28 30 44 38 31
Marks by B 32 39 26 30 38 34 28
An eighth debator was awarded 36 marks by Judge A while Judge B was not present. If Judge
B was also present, how many marks would you expect him to award to eighth debator
assuming same degree of relationship exists in judgement?
(33 marks)
19. Construct two regression equations for the following data and estimate the value of X
when Y = 70 and Y when X = 650.
X 100 200 300 400 500 600 700

Y 30 50 60 80 100 110 130

20. Find the two regression equation from the following data:
X 5 4 3 16 10 8 3
Y 10 15 12 9 12 4 1
21. The following data related to the ages of husbands and wives.
Age of husbands 25 28 30 32 35 36 38 39 42 55
Age of wives 20 26 29 30 25 18 26 35 35 46
Obtain the two regression equations and determine the most likely ages of husband for the age of
wife 25 years.
22.Find the regression equations from the following and estimate the yield for 10 inches rainfall.
Rainfall (in inches) X 1 2 3 4 5 6 7 8 9
Yield (tons) y 1 3 2 5 5 7 6 9 8
23. From the following results obtain the regression equations and estimate the yield of crops when
rainfall is 29 cms and estimate the rain fall when the yield is 600 kg.
Rainfall Yield
(in cms) (in kgs.)
X 26.7 508.4
S.D 4.6 36.8
Coefficient of Correlation 0.52

[Subject Code:----------------]
THIRD SEMESTER UNIVERSITY EXAMINATION
Subject: QUANTITATIVE TECHNIQUES
Time: 03 HOURS Maximum Marks:50
SECTION – A
1. Answer any FOUR of the following questions. (4x5=20)
a. If 15 kgs of Commodity A and 17 kgs of Commodity B together cost Rs.241 and 25 kgs of A and
13 kgs of B together cost Rs.279. Find the prices of each per kg by using Cramer’s rule method.
3 2 4
b. Divide Rs.1,647 into three parts such that 7 𝑡ℎ of the first, 3 𝑟𝑑 of the second and 5 𝑡ℎ of the
third are equal.
c. If a sum of money grows to 144/121 times when invested for two years in a scheme where
interest is compounded annually, how long will the same sum of money take to treble if
invested at the same rate of interest in a scheme where interest is computed using simple
interest method?
d. The mean weight of 100 workers in a factory is 50 kg. If the mean weight of men in the factory
is 55 kgs and that of women is 45 kgs, find the number of men and women in the factory.
e. Ten students obtained the following marks in Statistics and Accountancy. Find the rank
correlation coefficient.
Students A B C D E F G H I J
Statistics 115 109 112 87 98 120 98 100 98 118
Accountancy 75 73 85 70 76 82 65 73 68 80
SECTION – B
2. Answer any TWO of the following questions. (2x9=18)
a. A contractor undertakes to dig a canal 12 kms long in 350 days and employs 45 men for the
same. After 200 days of working, he finds that only 4.5 kms of canal has been completed. How
many extra men must be employed to finish the work in time?
b. A person on his retirement has become eligible to receive an annuity of Rs.12,000 p.a. from
his employer towards pension. This pension will be payable only for 10 years. Alternatively,
the employee will be paid a lump sum amount on the date of retirement in lieu of annual
pension. If the current discount rate is 14% p.a., what should be paid to the retiring employee
in a lump sum, if he opts for such a scheme?
c. Following are the marks obtained by two students A and B in 10 tests of 100 marks each. If
the consistency of performance is the criterion for awarding a prize, who should get the price?
Test A B
1 44 48
2 80 75
3 76 54
4 8 60
5 52 63

6 72 69
7 68 72
8 66 51
9 50 57
10 54 66
SECTION – C
3. Answer the following questions. (COMPULSORY) 1x12=12
a. A person repaid his loan in 5 equal annual instalments starting from the beginning of the first
year. If each instalment was Rs.50,000 and the compound interest charged was 12% p.a., what
was the amount borrowed? (6 marks)
b. Find out the likely production corresponding to rainfall of 40 cms. from the data given below:
Rainfall (in cms) Output (in qtls.)

Average 30 50
Standard deviation 5 10
Correlation 0.8
(6 marks)

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QUANTITATIVE

The workbook is developed for the students of JAIN UNIVERSITY.

For Internal Circulation Only

THE WORKBOOK IS ONLY A DIRECTIVE FOR STUDENTS AND NOT

Published Printed by:

For Private circulation only

Sl. No. Module Page No.

Course Outcomes (CO)

For Private circulation only

Subject: QUANTITATIVE TECHNIQUES

Total Hours: 45 Credits: 3

Module 1: Matrices & Determinants

Module 2: Ratio and Proportions

Module 3: Commercial Arithmetic

Module 4: Univariate Data Analysis

Module 5: Bivariate Data Analysis

For Private circulation only

PO1 PO2 PO3 PO4 PO5 PO6 PO7

For Private circulation only

𝑎11 𝑎12 𝑎13 ........... a1𝑛

For Private circulation only 1

1.2 Types of Matrices

In particular, a rectangular matrix may be a row matrix or column matrix.

(i) Row Matrix:

Example : [3 6 7 -4 0] is a row matrix of order (1 x 5)

(ii) Column Matrix:

For Private circulation only 2

Remarks: (i) Every Scalar Matrix is a diagonal Matrix

Unit Matrix (Identity Matrix)

For Private circulation only 3

1.3 Transpose of a Matrix

For Private circulation only 4

Any square matrix A is said to be symmetric matrix, if satisfied the conditions A = AT

Skew Symmetric Matrix

Zero Matrix or Null Matrix

For Private circulation only 5

Find the values of x, y, z and a in the following equation.

1.4 Concepts of addition, subtraction and Multiplication of matrices – related Problems

Addition and Subtraction

a 1 b1 c1 d1

For Private circulation only 6

5−3 2+1 0+2 2 3 2

5+3 2−1 0−2

Multiplication of a Matrix by a Scalar

For Private circulation only 7

Thus kA is called the Scalar multiplication of the Matrix A.

2A+5B+2X=0 → 2A+5B = −2X

2×9 2×1 5×1 5×5

Solution: Given 2A+5B+2X=0. 2X = -2A-5B

For Private circulation only 9

1 + 0 − 27 3 + 2 − 24 5 + 4 − 21 −26 −19 −12

For Private circulation only 10

Substituting the value of B in equation (ii), we get

For Private circulation only 11

By substituting the value of B in equation (1), we get

By substituting the values of A and B in equation (1), we have

For Private circulation only 12

Now substituting the value of B in equation (1), we get