Commercial Mathematics and Statistics

Course Objectives :

The syllabus is designed with an objective to acquaint students with the knowledge of quantitative techniques applicable in the business environment. It is expected that the students from the study of the subject develop an ability to interpret the business related information and use them for an effective decision making.

Course contents

  • Basic Arithmetic and Algebra

1.1. Ratio and Proportions, Equations (Simple Equations, Simultaneous Equations)

  • Percentage and Their Applications in Business

2.1. Simple Interest , Compound Interest, Nominal Interest Rate, Effective Interest Rate

2.2  Depreciation (Straight Line and Reducing Balance Methods)

2.3  Annuity: Present Value, Future Value, Sinking Fund, Amortization

  • Permutations and combinations

3.1 Basic Principles of Counting

3.2 Permutations, Permutations with Restrictions, Circular Permutations

3.3 Combinations

  • Progressions

4.1  Arithmetic Progression & Geometric Progression

  • Sources of data, presentation and use

5.1  Concept, role of statistics in business analysis and decision-making

5.2  Sources, nature, appreciation and precautions in use

5.3  Collection of data, types of data

5.4 Presentation of data: use of bar charts, histograms, pie charts, graphs, tables, frequency distributions, cumulative distributions, Ogive and their use and interpretation

  • Measures of central tendency

6.1  Concept, Types of Averages: Arithmetic Mean and Geometric Mean, Median and Mode

6.2  Positional Values: Quartiles, Deciles and Percentiles

  • Measures of dispersion

7.1 Concept, importance of measure of central tendency

7.2 Measures of dispersion: range, mean deviation, standard deviation and coefficient of variation

7.3 Measures of skewness and kurtosis

  • Correlation and regression Analysis

8.1  Concept, simple linear regression, scatter-graphs, least squares method

8.2  Coefficient of determination, correlation coefficient, rank correlation

8.3  Use of linear regression equation in forecasting

  • Time series analysis

9.1  Concept, factors influencing time series – trend, seasonal, cyclical,  irregular variations

9.2  Smoothing time series by means of moving averages

9.3  Use of time series in forecasting

  • Index number

10.1 Concept, uses of index number

10.2 Types of index number: Laspeyer’s, Paasches’s and Fisher’s index number, ideal index number

10.3 Construction of index number: methods and problems

10.4 Cost of living index: construction and uses

  • Sampling

11.1 Concept, Objectives of sampling

11.2 Sampling techniques: probability sampling, non-probability sampling

11.3 Errors in statistics

  • Probability

12.1 Concept, experiments and events

12.2 Addition theorem and multiplication theorem of probability

12.3 Conditional probability (excluding Bay’s theorem)

Text Book

  1. Commercial Mathematics and Statistics- Study Material, ICAN

Reference Book

  1. Business Mathematics: Hari Adhikari, Bhupal Baral, Asmita Books Publishers & Distributors
  2. Budnick, Frank S.: Applied Mathematics for Business, Economics and the Social Sciences, Fourth Edition, McGraw-Hill, Inc
  3. Calculus with Finite Mathematics, Geoffrey C. Berresford, Andrew M. Rockett Houghton Mifflin Company, Boston New York
  4. Levin & Rubin, Statistics for Management, Eighth Edition, Pearson Prentice Hall


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