Lessons in Business Mathematics

GRADE 12 ABM
(FIRST Semester/ S. Y. 2020-2021)
Subject Title: Business Mathematics
Week 5 to 6: (4meetings) – 2nd Quarter
Target Goals:
 I can compare the forms (textual, tabular and graphical) of business data.
 I can analyze and interprets the data presented in the table using measures of central
tendency and variability and tests of significant differences.
 I can describe the different kinds of graphs and its essential parts for data presentation.
 I can give a set of business data; identify the graphs to be used.
 I can draw the graph/table to present the data.
 Use software (i.e., MS Excel) programs to compute and present graphical
representation of business data

Study the Situation below:

Your company wants to market a new skin care line to women. What are several key factors
that your company must know to effectively design and execute a marketing strategy? Assume that
the product might work for all women, will it be branded more for the younger teen crowd? Or, will it
be branded for the aging woman who's trying to hold on to her youthful skin?

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 In a scenario like this, the company needs data on the cost of goods sold, with the
ultimate product pricing and who is most likely to buy it. It will design the entire packaging
around its biggest segment, even though others may buy it. The analytics took not only
numbers and group sizes, but what a specific demographic respond to visually. Packaging for
a young Millennial group is much different than it would be for a Baby Boomer demographic.

What is Business Data?

Business Data is information that is captured and stored by a business as a digital asset that
may support strategy, decision making and day-to -day operations.

Effective Data Use

It isn't enough to have the data. Great business leaders use data effectively to make decisions.
Assume that a cell phone manufacturer uses components made in China. If tariffs are put on
that line of components, the costs of that phone costs will rise. Understanding the effects of
that data and what it does to the business owner's profit margin is imperative in developing a
strategy that keeps the company profitable. The business leader might seek to find a new
resource for components, which are less likely affected by tariffs or international political
situations. The business leader might decide to raise the cost of its final product, effectively
passing on the new cost to the consumer.

Presentation of Data
Presentation of data is of utter importance nowadays. Afterall everything that’s pleasing to
our eyes never fails to grab our attention. Presentation of data refers to an exhibition or
putting up data in an attractive and useful manner such that it can be easily interpreted. The
three main forms of presentation of data are:
1. Textual presentation
2. Data tables
3. Charts or Graphs
Textual Presentation
In this form of presentation, data is simply mentioned as mere text, that is generally in a
paragraph. This is commonly used when the data is not very large.
This kind of representation is useful when we are looking to supplement qualitative
statements with some data. For this purpose, the data should not be very long represented in

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tables or diagrams. It just has to be a statement that serves as a fitting evidence to our
qualitative evidence and helps the reader to get an idea of the scale of a phenomenon.
For example, “the 2002 earthquake proved to be a mass murderer of humans. As many as
10,000 citizens have been reported dead”. The textual representation of data simply requires
some intensive reading. This is because the quantitative statement just serves as an evidence
of the qualitative statements and one has to go through the entire text before concluding
anything.

Data Tables or Tabular Presentation

A table facilitates representation of even large amounts of data in an attractive, easy to read
and organized manner. The data is organized in rows and columns. This is one of the most
widely used forms of presentation of data since data tables are easy to construct and read.

Components of Data Tables

1) Table Number: Each table should have a specific table number for ease of access and
locating. This number can be readily mentioned anywhere which serves as a reference and
leads us directly to the data mentioned in that particular table.
2) Title: A table must contain a title that clearly tells the readers about the data it contains,
time period of study, place of study and the nature of classification of data.
3) Headnotes: A headnote further aids in the purpose of a title and displays more
information about the table. Generally, headnotes present the units of data in brackets at
the end of a table title.
4) Stubs: These are titles of the rows in a table. Thus, a stub display information about the
data contained in a particular row.
5) Caption: A caption is the title of a column in the data table. In fact, it is a counterpart if a
stub and indicates the information contained in a column.
6) Body or field: The body of a table is the content of a table in its entirety. Each item in a
body is known as a ‘cell’.
7) Footnotes: Footnotes are rarely used. In effect, they supplement the title of a table if
required.
8) Source: When using data obtained from a secondary source, this source has to be
mentioned below the footnote.
Reference: https://www.toppr.com/guides/economics/presentation-of-data/textual-and-tabular-presentation-of-data/

Frequency Distribution:
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A frequency distribution is a representation, either in a graphical or tabular format, that
displays the number of observations within a given interval.
A frequency distribution refers to summarizing a large data set into a small number of
intervals.

To construct a frequency distribution for this data, we will follow the following steps.
Step 1: Sort the data in ascending order
Step 2: Calculate the range of data
The range refers to the lower and upper limit for the data intervals.
Range = Highest score – lowest score
Step 3: Decide on the number of intervals in the frequency distribution
Step 4: Determine the intervals.
Step 5: Find the lowest and next lower limit
Step 6. Construct a frequency distribution table
Example.
Construct a frequency distribution table given the data below:
The IQ scores of the selected BIL students are:
118, 123, 124, 125, 127, 128, 129, 130, 130, 133, 136, 138, 141, 142, 149, 150, 154.
Solution:
Step I.
118, 123, 124, 125, 127, 128, 129, 130, 130, 133, 136, 138, 141, 142, 149, 150, 154.
Step 2.
R = HS – LS
R = 154 – 118
R = 36
Step 3
Number of intervals = 5
Step 4.
Interval = range ÷ number of intervals
Interval = 36 ÷ 5 = 7.2 or 7
Step 5:
Lowest limit: 118
Next lower limit: 118 + 7 – 1 = 12

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Ste 6:
Interval Tally Frequency
153 - 159 I 1
146 - 152 II 2
139 – 145 II 2
132 – 138 III 3
125 – 131 IIIII-I 6
118 – 124 III 3
Total 17

CHARTS OR GRAPHS
A graph or a chart may be defined as a visual presentation of data. Charts are used in
situations where a simple table won't adequately demonstrate important relationships or
patterns between data points. Example, a utility company uses a column chart to help its
customers see just how much energy they've used during the last billing cycle. A bakery may
use a pie chart to show how many breads it sells when compared to its other products, such
as cheesecakes and apple pies.
Line Graph
A line graph is usually used to show the change of information over a period of time. This
means that the horizontal axis is usually a time scale, for example minutes, days, months or
years.
Parts of a Line Graph:
1) Title – Daily Earnings of a Store for Five Days.
2) Label – Days in a week
3) Scale - Earnings
4) Points- Points plotted to match days in a week with the sales
5) Line – points are connected by lines

Example:
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The table shows the daily earnings of a store for five days .

Day Mon Tues Wed Thurs Fri

Earnings 300 450 200 400 650

Daily Earnings of a Store for Five Days.

How to A Line Graph?

1) Plot the scores on the x-axis.
2) Plot the frequency on the y-axis
3) Connect the points by a straight line

Histogram
A histogram is used to summarize discrete or continuous data. In other words, it provides
a visual interpretation of numerical data by showing the number of data points that fall within
a specified range of values (called “bins”). It is similar to a vertical bar graph. However, a
histogram, unlike a vertical bar graph, shows no gaps between the bars.
Parts of a Histogram:
1) Title
2) Scale
3) Labels
4) Bar

Example
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Jeff is the branch manager at a local bank. Recently, Jeff’s been receiving customer feedback
saying that the wait times for a client to be served by a customer service representative are
too long. Jeff decides to observe and write down the time spent by each customer on waiting.
Here are his findings from observing and writing down the wait times spent by 20 customers:

The corresponding histogram with 5-second bins (5-second intervals) would look as follows:

Reference: https://corporatefinanceinstitute.com/

Bar Graph

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Bar graphs generally have categories on the x-axis, and numbers on the y-axis (but these are
interchangeable). This means that you can compare numbers between different categories.
The categories need to be independent, that is changes in one of them do not affect the
others.
Parts of a Bar Graph:
1) Title
2) Scale
3) Labels
4) Bar

Example.
Here is a summary of 'some data' in a data table:
Some Data
Category 1 4.1
Category 2 2.5
Category 3 3.5
Category 4 4.7
And the same data displayed in a bar chart:

Pie charts
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A pie chart looks like a circle (or a pie) cut up into segments. Pie charts are used to show how
the whole breaks down into parts.
Parts of a Pie Chart
1) Title
2) Key (color of each area of the circle)
3) Circle
Example
Data shows the sales figures for a year, broken down by quarters:

Quarterly Sales Figures 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

  8.2 3.2 1.4 1.2

From the pie chart you can see immediately that sales in Quarter 1 were much bigger than all
the others: more than 50% of total annual sales.
Quarter 2 was next, with around 25% of sales.

General Rules in Making a Chart/Graph

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The following data.com has given seven tips in preparing a chart/ graph.
1) Check the data. If your data is weak, your graph is weak.
2) Explain encodings. Provide a legend, directly labeling, shapes or describing your graphic
in a -lead in paragraph.
3) Label axes. Label your axes so that readers know what scale points are plotted on.
4) Include units. Indicate the unit of the numbers or values in the graph. It could be hours,
ages, units, or even currency.
5) Keep your geometry in check. Size circles and other two-dimensional shapes by area,
unless it is a bar graph or something like that.
6) Include your sources. Always include where the data is from.
7) Consider your audience. Take into account who and what your graphs and charts are for,
and design accordingly.

Measures of Central Tendency

A measure of central tendency is a summary statistic that represents the center point or
typical value of a dataset. These measures indicate where most values in a distribution fall and
are also referred to as the central location of a distribution.
In statistics, the three most common measures of central tendency are the mean, median,
and mode. Each of these measures calculates the location of the central point using a
different method.
A. Mean ( x́)
The mean is the arithmetic average of the given data.
a.1. Mean of Ungroup data
Σx
x́=
n
a.2 Mean of Group data
Σfx
x́=
n
B. Median
The median is the middle value. It is the value that splits the dataset in half. To find the
median, order the data from smallest to largest, and then find the data point that has an
equal amount of values above it and below it.
b.1 Median for Ungroup data
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 th
~ ( n+1 )
x=
2
b.2 Median for Group data
n
~
x=Lm +

where :
2
[ ]
−cf
fm
i

Lm is the lower boundary of the median class

n
is half the sum of the absolute frequencies
2
cf is the cumulative frequency immediately above the median class
f m is the frequency of the median class
iis the class interval

C. Mode ( ^x )
The mode is the value that occurs the most frequently in your data set. If no value repeats,
the data do not have a mode.
c.1 Mode for Ungroup data (Highest frequency)
c.2 Mode for Group data (add the 2 scores with the highest frequency divided by 2)
Examples.
Find the Mean, Median and Mode of the Ungroup data.
25 10 10 20 15 15 20 25 20 20
Solution:
1) Mean
Σx
x́=
n
25+10+10+20+15+ 15+20+25+20+20
x́=
10
180
x́=
10
x́=18

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 2) Median
10 10 15 15 20 20 20 20 25 25
th
~ ( n+1 )
x=
2
~ (10+ 1)
x=
2
~ 11
x=
2
~
x=5.5 th term
Since it is 5.5th term .The median is between 5 th∧6 th term .
~ 20+20
x=
2
~
x=20
3) Mode ( ^x )
Since 20 appears the most (4 times), therefore the Mode ( ^x ) = 20

Find the Mean, Median and Mode of the Group data.

The following are the scores of 12ABM students in an Accounting Quiz

Score Frequency (F)

60-69 8
70-74 12
75-79 10
80-84 15
85-89 10
90 - 94 13
Total n = 68

Solution:
To find the Mean ( x́ ) , determine, the median of each score, then multiply with the
frequency.

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 ~
Score Frequency (f) x f~
x
65-69 8 67 536
70-74 12 72 864
75-79 10 77 770
80-84 15 82 1,230
85-89 10 87 870
90 - 94 13 92 1,196
Total n = 68 𝚺fx = 4,683

To solve for Mean

Σfx
x́=
n
4,683
x́=
68
x́=68.87
To find the Median ( ~
x)

Score Frequency (f) Cumulative

Frequency
65-69 8 8
70-74 12 20
75-79 10 30
80-84 15 45
85-89 10 55
90 - 94 13 68
Total n = 68
n
~
x=Lm +

Lm=79.5
[ ]
2
−cf
fm
i ~
x=79.5+
34−30
[
15
(5) ]
68 ~ 4
x=79.5+ (5)
n/2 = =34 15
2
cf = 30 ~
x=79.5+1.33
i=5 ~
x=80.83

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 To find the Mode ( ^x )
Since the interval 80-84 has the highest frequency which is 15, therefore,
80+84
^x =
2
^x =82

Variability
(Also called spread or dispersion) refers to how spread out a set of data is. Variability
gives you a way to describe how much data sets vary and allows you to use statistics to
compare your data to other sets of data. The four main ways to describe variability in a data
set are:
 Range
The range is the amount between your smallest and largest item in the set
 Interquartile Range
The interquartile range is almost the same as the range, only instead of stating the
range for the whole data set, give the amount for the “middle fifty“. It’s sometimes
more useful than the range because it tells where most of values lie. The formula is IQR
= Q3 – Q1, where Q3 is the third quartile and Q1 is the first quartile. Basically, taking
one of the smallest values (at the 25th percentile) and subtracting it from one of the
largest values (at the 75th percentile). The following boxplot shows the interquartile
range, represented by the box. The whiskers (the lines coming out from either side of
the box) represent the first quarter of the data and the last quarter.

 Variance

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 The variance of a data set gives a rough idea of how spread out the data is. A small
number for the variance means the data set is tightly clustered together and a large
number means the values are more spread apart. The variance is rarely useful except to
calculate the standard deviation.

 Standard Deviation
The standard deviation tells how tightly data is clustered around
the mean (the average). A small SD indicates that the data is tightly clustered and also
have a taller bell curve; a large SD tells that data is more spread apart.

Examples:
A. Range
Find the range for each of the following set of data:
1) 50 25 16 20 35 60 45 25 15 35
2) 24 12 32 64 48 36 40 44 56 60
3) 15 5 25 30 45 10 25 55 35 25

Answer:
To find the value of the Range, use the formula: R = Hs – Ls
1) 50 25 16 20 35 60 45 25 15 35
Solution:
Highest score = 60 Lowest score = 16
R = Hs – Ls
R = 60 – 16
R = 44

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 2) 24 12 32 64 48 36 40 44 56 60
Solution:
Highest score = 60 Lowest score = 12
R = Hs – Ls
R = 60 – 12
R = 48

3) 15 5 25 30 45 10 25 55 35 25
Solution:
Highest score = 55 Lowest score = 5
R = Hs – Ls
R = 50 – 5
R = 45
B. Interquartile Range
Find the designated interquartile range for the given set of data.
Given:
The following data are the result of the midterm exam of Grade 11- ABM in Gen. Math
52 56 45 58 65 40 35 68 72 60 85
50 78 80 49 49 58 42 56 68 70
1) Find the value of Q2
Solution:
List the data in ascending order.
35 40 42 45 49 49 50 52 56 56
58 58 60 65 68 68 70 72 78 80 85
Find the Median
Median = nth term + 1 = 21 +1 = 22 = 11th score
2 2 2
The 11 score is 58, so the median is 58 or the value of Quartile 2
th

2) Find the Interquartile range (IQR)

First half: 35 40 42 45 49 49 50 52 56 56
Median: 58
Second half: 58 60 65 68 68 70 72 78 80 85
Solve for Q1:
35 40 42 45 49 49 50 52 56 56
Q1 = 49+49 = 98 = 49
2 2
Solve for Q3:
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 58 60 65 68 68 70 72 78 80 85
Q3 = 68+70 = 138 = 69
2 2
Now, find the Inter-Quartile Range (IQR)
IQR = Q3 – Q1
IQR = 85 – 49
IQR = 36
C. Variance.
A population consist of four observations: {1,3,5,7}. Find the variance
1) Compute for the population mean

μ=
∑x
n
1+3+5+7
μ=
4
μ=4
2) Find the variance
2
Σ ( x 1−μ )2
σ =
n

σ2 =
[ ( 1−4 )2 + ( 3−4 )2 +( 5−4 )2+ ( 7−4 ) ² ]
4
σ =5
2

D. A population consist of four observations: {1,3,5,7}. Find the standard deviation

Population standard deviation.
∑x
σ=

σ =√ 5
√ n

σ =2.24
Test of Significant Difference:
Statistical inferences are based on probabilities and as such cannot be expressed with full
certainty. When a test shows that a difference is statistically significant, then it simply suggests
that the difference is probably not due to chance.
Stages in performing a test of significance.
1. State the null hypothesis of no or chance difference and the alternative.
2. Determine P, i.e., probability of occurrence of your estimate by chance or simply
accepting or rejecting your null hypothesis.
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 3. Draw conclusion on the basis of P value, i.e., decide whether the difference observed is
due to chance or play of some external factors on the sample.

Various tests of significance.

Parametric Tests:
 Use the actual values
 Cannot be used when very less Sample is present
 Use for Qualitative research
Non parametric Tests:
 Use only order or grades not actual values.
 Can be used when Very few sample is avail
 Use for Quantitative Research

Reference:
https://www.slideshare.net/benitaregi1/tests-of-significance 5209398#: ~:text=Test%20of%20significance%20is
%2

When to Use Each Chart and Graph Type in Excel.

1) Column Charts: Some of the most commonly used charts, column charts, are best used
to compare information or if you have multiple categories of one variable (for example,
multiple products or genres). Excel offers seven different column chart types: clustered,
stacked, 100% stacked, 3-D clustered, 3-D stacked, 3-D 100% stacked, and 3-D,
pictured below. Pick the visualization that will best tell your data’s story.

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2) Bar Charts: The main difference between bar charts and column charts are that the
bars are horizontal instead of vertical. You can often use bar charts interchangeably
with column charts, although some prefer column charts when working with negative
values because it is easier to visualize negatives vertically, on a y-axis.

3) Pie Charts: Use pie charts to compare percentages of a whole (“whole” is the total of
the values in your data). Each value is represented as a piece of the pie so you can
identify the proportions. There are five pie chart types: pie, pie of pie (this breaks out
one piece of the pie into another pie to show its sub-category proportions), bar of pie,
3-D pie, and doughnut.

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 4) Line Charts: A line chart is most useful for showing trends over time, rather than static
data points. The lines connect each data point so that you can see how the value(s)
increased or decreased over a period of time. The seven line chart options are line,
stacked line, 100% stacked line, line with markers, stacked line with markers, 100%
stacked line with markers, and 3-D line.

How to Chart Data in Excel

Step 1: Enter Data into a Worksheet
1. Open Excel and select New Workbook.
2. Enter the data you want to use to create a graph or chart. In this example, we’re
comparing the profit of five different products from 2013 to 2017. Be sure to include
labels for your columns and rows. Doing so enables you to translate the data into a
chart or graph with clear axis labels. You can download this sample data below.

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 3. Step 2: Select Range to Create Chart or Graph from Workbook Data
Highlight the cells that contain the data you want to use in your graph by clicking and
dragging your mouse across the cells.
Your cell range will now be highlighted in gray and you can select a chart type.

How to Make a Chart in Excel

Once you input your data and select the cell range, you’re ready to choose your chart type to
display your data. In this example, we’ll create a clustered column chart from the data we
used in the previous section.
Step 1: Select Chart Type
Once your data is highlighted in the Workbook, click the Insert tab on the top banner. About
halfway across the toolbar is a section with several chart options. Excel provides
Recommended Charts based on popularity, but you can click any of the dropdown menus to
select a different template.

Step 2: Create Your Chart

From the Insert tab, click the column chart icon and select Clustered Column.

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 1. Excel will automatically create a clustered chart column from your selected data. The
chart will appear in the center of your workbook.
2. To name your chart, double click the Chart Title text in the chart and type a title. We’ll
call this chart “Product Profit 2013 - 2017.”

Reference: https://www.smartsheet.com/how-to-make-charts-in-excel

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Prepared by:

LEAH CAMELLO PIRA – MA. Ed

MATHEMATICS TEACHER

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