Mathematics for Management Course Guide Book

Department of Management
Degree Program B.A. in Management
Module Title Management Science
Module Coordinator TBA
Course Number MGMT 2131
Course Title Mathematics for Management
ECTS credit points 6
Course Information Academic Year: II Semester: II
Meeting Day: Meeting Time:
Meeting Location:
Instructor’s Office location: SE-01, Office - 06
Contact E-mail: silgeta21@gmail.com
Information Consultation Hours:
Student workload Lecture Discussion Assignment Home Study Tutorial Assessment Total
50 10 20 45 27 10 162 hrs.
Pre-requisites No Prerequisite
Status of the course Core

Course Description
This course is designed to expose management students to the basic concepts and area of managerial application
of mathematics. Under this course topics like: linear equations and their applications, matrix algebra and its
applications, linear programming, mathematics of finance, elements and application of calculus will be covered.

Course Objectives
At the end of this course students will be able to:
• Differentiate the various techniques of mathematics that can be employed in solving business problems
• Know the way these mathematical techniques are utilized
• Appreciate the importance of mathematics in solving real world business problems
• Use different mathematical techniques for supporting managerial decisions

Course Outline
CHAPTER ONE: LINEAR EQUATIONS AND THEIR INTERPRETATIVE APPLICATIONS
1.1 Linear Equations, Functions and Graphs
1.2 Applications of Linear Equations
1.2.1 Linear Cost Output Relations, Variable Cost, Fixed Cost, Total Cost, Average Cost,
Marginal cost, Total Revenue, and Total Profit
1.2.2 Break Even Analysis: Model and Solutions
1.2.3 Market Equilibrium Analysis

CHAPTER TWO: MATRIX ALGEBRA AND ITS APPLICATIONS

2.1 The concepts of Matrix
2.2 Dimensions and Types of Matrix
2.3 Matrix Operations and Techniques
2.4 Inverse of a Matrix
2.5 Matrix Applications
2.5.1 Solving Systems of Linear Equations
2.5.2 Markov Chains: Concepts, Models and Solutions
CHAPTER THREE: INTRODUCTION TO LINEAR PROGRAMMING
3.1 Concepts of Linear Programming
3.2 Formulation of Linear Programming Models
3.2.1 The Maximization Problem
3.2.2 The Minimization Problem
3.3 Graphic method of Linear Programming Problem
CHAPTER FOUR: MATHEMATICS OF FINANCE
4.1 Simple Interest and Discount
4.1.1 Computing Simple Interest
4.1.2 Promissory Notes and Bank Discount
4.2 Compound Interest
4.2.1 Compound Amount (Maturity Value)
4.2.2 Present Value (Principal) of Compound Amount
4.2.3 Nominal and Effective Interest Rate
4.3 Ordinary Annuities
4.3.1.1 Sum of Ordinary Annuity
4.3.1.2 Sinking Fund Payments
4.3.1.3 Present Value of Ordinary Annuity
4.3.1.4 Amortization
4.3.1.5 Mortgage Payments

CHAPTER FIVE: ELEMENTS AND APPLICATIONS OF CALCULUS

5.1 Differential Calculus
5.1.1 Concept
5.1.2 Rules of Differentiation
5.1.3 First and Second Derivative for Extreme
5.1.4 Business Application of Differential Calculus
5.1.4.1 Marginal Analysis
5.1.4.2 Optimization Problems
5.2 Integral Calculus
5.2.1 Concept
5.2.2 Indefinite and Definite Integration
5.2.3 Rules of Integration
5.2.4 Business Applications of Integral calculus
Delivery mode/methodology: Lecture, assignments, class work, homework, group discussion, and etc
Assessment Mechanisms: Continuous assessment (quizzes, tests, assignments) covers 50% and summative exam will
cover the remaining.
Course policy: All students are expected to abide by the Academic legislation of the university throughout this course.

References:
➢ Bowen Earl K et. Al, Mathematics with applications in Business and Economics, 1987
➢ Barnett Raymond A. and Ziegler Michael R, Essentials of College Mathematics for business and Economics, life
science and social science, 3rd ed., 1989
➢ Ann j. Hughes, Applied Mathematics: For Business, Economics, and the social Science, 1983.
➢ Ronald E. Larson and Bruce H. Edwards, Finite Mathematics with Calculus, 1991
➢ Ronald J. Harshbager and James J. Reynolds, Mathematics Applications.
➢ Ronald J. Harshbager and James J. Reynolds, Finite Mathematics, 3 rd Ed.
➢ Hole Poul G., Finite Mathematics and Calculus with Applications to Business, 1974.
➢ Dexter j Booth and John K Turner, Business mathematics with Statistics, 1996,
➢ Teresa Bradley and Paul Patton, “Essential Mathematics for Economics and Business’, Jon Wiley and Sons,
December 1999