STAGE-2

S-203 - BUSINESS MATHEMATICS & STATISTICS

of quantitative nature, in a suitable form for
i. Introduction:
taking business decisions.
This course comprises basic concepts and
techniques of mathematics & statistics. A iii. Outcomes:
thorough knowledge in the areas of basic On completion of this course, students should
mathematics and presentation of data, is an be able to:
essential skill for management accountant. The describe and demonstrate the use of
management accountant should understand mathematical and statistical techniques,
statistical concepts, because of the need to understand the proper use of formulae and
estimate the uncertainties of business ratios,
decisions. This course also gives basic describe reasonableness in the
understanding of mathematical techniques computation of answer,
applied for, forecasting in corporate planning understand and apply techniques for
and Financial Management. summarising and analysing data,
describe and demonstrate the use of
ii. Objectives:
probability, in case of involvement of risk
To provide the students with the basic
and uncertainty,
knowledge of mathematics and statistics to
describe and apply financial mathematical
enable them to:
techniques, and
Use and interpret mathematical and
describe and demonstrate forecasting
statistical methods, and present the results
techniques.
INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION-A
BUSINESS MATHEMATICS
1. Preliminaries
2. Mathematical Functions
3. Differentiation 50%
4. Optimisation: Application
5. Integral Calculus
6. Matrix Algebra
7. Sequence And Series
8. Mathematics of Finance
SECTION-B
STATISTICS
9. Probability Theory 25%
10. Probability Distributions
11. Decision-Making
12. Statistical Forecasting
SECTION-C
OPERATIONAL RESEARCH
13. Network Analysis 25%
14. Linear Programming
15. Optimisation
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section.
This weightage does not necessarily specify the number of marks to be allocated to that section in the
examination.
CONTENTS Formula, Distance Formula, Rectangular Co-
ordinate System
SECTION-A
2. Mathematical Functions
BUSINESS MATHEMATICS
Functions, Domain Range Relationship,
1. Preliminaries Restricted Domain and Range, Univariate,
Factorization, Equations, Inequalities, Absolute Bivariate and Multivariate Functions. Value of
Value Relationships. Quadratic Equation and the Functions. Graph Representation of the
Nature of Roots, Mid-Points, Two Point Functions, Type of Functions (Constant, Linear,
Rational, Combinations, Composite, Polynomial,
etc.), Applications of the Linear Functions, Break-
Even Models (Analysis)
3. Differentiation 9. Probability Theory
The Limit and Introduction, Average rate of Introduction to sets and set operation,
change, Concepts of derivative and permutations and combinations, Basic probability
differentiation, Basic Rules of Differentiation. concepts, Statistical dependence and
Instantaneous-rate of change. Partial Derivatives independence, Rues of Probability (Additive and
and Mixed Partial Derivatives Multiplicative). Conditional Probability, Marginal
Probability, Joint Probability.
4. Optimisation: Application
Derivatives, Maxima and Minima, Curve 10. Probability Distribution
Sketching, 1st and 2nd Derivative Tests, Restricted- Probability Distributions, Measures of Central
domain considerations revenue, Cost and profit Tendency, Statistical Dispersions, Normal and
applications, additional applications Binomial Distributions.
5. Integral Calculus 11. Decision-Making
Concepts of Anti-derivatives, Integration, Rules of Sampling Methods (Probability and Non-
Integration, Definite and indefinite integrals. Probability Sampling), Sampling Distribution of
Application of Integral Calculus. Mean), Estimation (Confident Innerves) for single
population mean, Test of hypothesis (t & z test)
6. Matrix Algebra
for single population mean, Chi-Squire Test,
Concept of Matrices, Addition, Subtraction,
Concept of Sample Size.
Multiplication, Inverse of Matrices, Solution of
linear equation with the help of Matrices (up to 12. Statistical Forecasting
three variables), The Determinant and its Linear Correlation Coefficient, Coefficient of
Properties. Cramer’s Rule, Gaussian Elimination Determination, Linear regression model, Least
Method, Method of Elimination. Slope Intercept square methods, semi-average, moving average,
form, selected applications Index Number (Simple and Weighted).
7. Sequence and Series
SECTION-C
Concept of Sequence and Series, Arithmetic And
Geometric Progression and its business OPERATIONAL RESEARCH
applications. Arithmetic and Geometric Means
13. Network Analysis
etc.
Critical Path Analysis (CPM), Gantt Charts
8. Mathematics of Finance Analysis of network, crashing program evaluation
Concepts of Interest rate, Simple and Compound and network analysis, activity-on-arrow and
Interest, singe-payment computations, Present activity-on mode diagrams, probabilities
value, Nominal and Effective Interest Rates. network.
Concept of Annuities and Their Future Value,
14. Linear Programming
Annuities and their present value, Mortgages,
Optimisation by linear programming using
Cost-Benefit Analysis, Discounted Cash Flow, Net
graphical and simplex methods. Sensitivity
Present Value.
Analysis.
SECTION-B
15. Optimisation
BUSINESS STATISTICS Linear and non-Linear Optimisation.

Recommended Books
CORE READINGS
TITLE AUTHOR PUBLISHER
Quantitative Techniques T. Lucy DP. Publications Ltd.,
Aldine place, 142-144 Uxbridge Road
Shepherds Bush, Green, London W12 8AW.
Introduction to Statistics Ronald E. Walpole Macmillan Publishing Co. Inc. New York.
Applied Mathematics for Business, Frank S. Budnick McGraw-Hill Company Inc., Princeton
Economics & the Social Sciences. Road, S-1 Hightslown, NJ08520, New York.
Business Mathematics PBP Professional Business Publications, Lahore.
ADDITIONAL READING
Business Mathematics Mirza Muhammad Farooq Kitab Ghar, 32-33 Urdu Bazar,
Hassan & Muhammad Karachi.
Ali Mirza