CBSE

APPLIED MATHEMATICS

CLASS 12
Mapped on Reduced Syllabus Released by CBSE On 21 April 2022

NODIA AND COMPANY

CBSE Applied Mathematics
CBSE Class 12
Edition 2022
Copyright © By Nodia and Company

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CONTENTS

CHAP 1. MODULO ARITHMETIC 17 3.2 TYPES OF INEQUALITIES 84

1.1 MODULO ARITHMETIC 17 3.3 PROPERTIES OF INEQUALITIES 84

1.1.1 Properties of Modulo Operator 19 3.4 LINEAR INEQUALITIES 90

1.1.2 Modulo Arithmetic 22 3.4.1 Solution Of Inequalities 90
1.1.3 Application of Modulo Arithmetic 23 3.4.2 Interval 90
1.2 CONGRUENCES 24 3.4.3 System of Linear Inequalities in One Variable 90

1.3 PROPERTIES OF CONGRUENCES 25 3.5 APPLICATION OF INEQUALITIES 96

1.3.1 Properties of Addition 25 Unit 1 Case Study Questions 101

1.3.2 Properties of Multiplication 25
1.3.3 Exponential Property in Congruence 25 CHAP 4. MATRIX 106
1.3.4 Equivalence Class 30
1.4 LINEAR CONGRUENCE 32 4.1 INTRODUCTION 106

1.4.1 Some Important Theorems on Linear Congruence 32 4.2 MATRICES 106

1.4.2 Working Rule to Solve a Linear Congruence 32 4.2.1 Order of a Matrix 106
1.5 ARITHMETIC FUNCTIONS 35 4.3 TYPE OF MATRICES 107
1.5.1 Additive Function 35 4.3.1 Zero (or Null) Matrix 107
1.5.2 Multiplicative Function 35 4.3.2 Row Matrix 107
1.5.3 Number of Divisor Function 35 4.3.3 Column Matrix 108
1.5.4 Sigma Function or Sum of Positive Divisor Functions 37 4.3.4 Square Matrix 108
1.5.5 Möbius Function 40 4.3.5 Diagonal Matrix 108
1.5.6 Euler’s Function f (n ) 41 4.3.6 Scalar Matrix 108
1.5.7 An Important Result on Euler’s Function 41 4.3.7 Unit Matrix 108
4.3.8 Triangular Matrices 108
CHAP 2. NUMERICAL PROBLEMS 44 4.3.9 Equal Matrices 108

2.1 ALLIGATION AND MIXTURE 44 4.4 ALGEBRA OF MATRICES 112

2.1.1 Mixture 44 4.4.1 Addition of Matrices 112
2.1.2 Alligation 44 4.4.2 Difference of Matrices 113

2.2 BOATS AND STREAMS 51 4.4.3 Scalar Multiplication 113

4.5 MULTIPLICATION OF MATRICES 117
2.3 PIPES AND CISTERNS 57
4.5.1 Properties of Matrix Multiplication 117
2.4 RACES AND GAMES 64
4.6 TRANSPOSE OF MATRICES 123
2.4.1 Race 64
2.4.2 Games 64 4.7 PROPERTIES OF TRANSPOSE 124
2.5 PARTNERSHIP 69 4.8 SYMMETRIC MATRIX 129
2.5.1 Definition 69 4.9 SKEW-SYMMETRIC MATRIX 129
2.5.2 Partnership Deed 69
2.5.3 Difference Between Active Partner and Sleeping Partner69 CHAP 5. DETERMINANTS 136
2.5.4 Types of Partnership 69
5.1 INTRODUCTION 136
2.6 SCHEDULING 74
5.2 DETERMINANTS 136
2.6.1 Definitions 75
2.6.2 Gantt Chart 75 5.2.1 Rows 136

2.6.3 First Come First Served (FCFS) 75 5.2.2 Columns 136

2.6.4 Shortest Job First (SJF) 75 5.2.3 Order of the Determinant 136
5.2.4 Notation 136
CHAP 3. NUMERICAL INEQUALITIES 84 5.2.5 Constituents of Principal Diagonal 136

3.1 INTRODUCTION 84 5.3 SECOND ORDER DETERMINANT 137

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5.4 THIRD ORDER DETERMINANTS 138 8.3 INVERSE MATRIX METHOD 212
5.5 MINORS AND COFACTORS 138 8.3.1 Criterion for Consistency or Inconsistency 213

5.5.1 Minor 138 8.4 ROW REDUCTION METHOD 217

5.5.2 Cofactor 138 8.5 REAL LIFE PROBLEMS 222
5.6 EXPANSION OF A DETERMINANT 139
Unit 2 Case Study Questions 235
5.6.1 Expansion of a Determinant of Second Order 139
5.6.2 Expansion of a Determinant of Third Order 139
CHAP 9. HIGHER DERIVATIVES 248
5.7 AREA OF TRIANGLE 141
5.7.1 Collinear Point 141 9.1 IMPLICIT DIFFERENTIATION 248
5.8 PROPERTIES OF DETERMINANTS 143 9.2 LOGARITHMIC DIFFERENTIATION 250
5.8.1 Theorem 1 144 9.3 DERIVATIVES OF FUNCTIONS IN PARAMETRIC
5.8.2 Theorem 2 144 FORM 255
5.8.3 Theorem 3 144
9.4 HIGHER ORDER DIFFERENTIATION 257
5.8.4 Theorem 4 145
5.8.5 Theorem 5 145 CHAP 10. APPLICATION OF DERIVATIVES 263
5.8.6 Theorem 6 145
5.8.7 Theorem 7 145 10.1 INTRODUCTION 263
5.8.8 Theorem 8 146 10.2 DERIVATIVE AS A RATE OF MEASURE 263
5.8.9 Theorem 9 (Factor Theorem) 146
10.3 TANGENTS AND NORMALS 272
5.8.10 Theorem 10. 146
10.3.1 Tangent to the Curve y = f (x) at Given Point 272
5.8.11 Theorem 11 146
10.3.2 Normal to the curve y = f (x) at a Given Point 272
5.9 ELEMENTARY OPERATIONS 146
10.4 INCREASING AND DECREASING FUNCTION 282
CHAP 6. INVERSE OF MATRIX 161 10.4.1 Introduction 282
10.4.2 Steps to find Increasing and Decreasing Function 282
6.1 MINORS AND COFACTORS 161
10.5 COST AND REVENUE FUNCTION 285
6.2 IMPORTANT RESULT 161
10.5.1 Cost Function 285
6.2.1 Result 1 161 10.5.2 Revenue Function 285
6.2.2 Result 2 162
6.2.3 Result 3 162 CHAP 11. MAXIMA AND MINIMA 290
6.2.4 Result 4 162
11.1 INTRODUCTION 290
6.2.5 Result 5 162
6.2.6 Result 6 162 11.2 MEANING OF THE SIGN OF THE OBSERVATION
290
6.3 SINGULAR MATRIX 163
11.3 MAXIMUM AND MINIMUM VALUES 290
6.4 ADJOINT OF A MATRIX 165
11.4 LOCAL MAXIMA AND MINIMA 291
6.5 INVERSE OF A MATRIX 168
6.5.1 Important Result 168 11.5 FIRST DERIVATIVES TEST 292

6.6 ELEMENTARY ROW OPERATION 178 11.6 SECOND DERIVATIVES TEST 292
11.7 SUMMARY 293
CHAP 7. APPLICATION OF MATRICES 189
11.8 APPLICATION IN BUSINESS 304
7.1 INTRODUCTION 189 11.8.1 Maximisation of Revenue 304
7.2 LEONTIEF INPUT-OUTPUT MODEL 194 11.8.2 Minimization of Cost 304
11.8.3 Maximisation of Profit 304
CHAP 8. SOLUTION OF SIMULTANEOUS EQUATIONS 206 11.9 APPLIED PROBLEMS 310
8.1 SYSTEM OF SIMULTANEOUS EQUATIONS 206
CHAP 12. INTEGRATION 322
8.2 DETERMINANT METHOD (CRAMER RULE) 206
8.2.1 Solution of Two Linear Equations 206 12.1 INTRODUCTION 322
8.2.2 Solution of Three Linear Equations 208 12.2 INTEGRATION 322

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12.3 GEOMETRICAL INTERPRETATION OF INDEFINITE 15.1 INTRODUCTION 399
INTEGRAL 322
15.2 DIFFERENTIAL EQUATION 399
12.4 COMPARISON BETWEEN DIFFERENTIATION AND
15.3 ORDER AND DEGREE OF DIFFERENTIAL
INTEGRATION 323
EQUATION 399
12.5 BASIC RULE OF INDEFINITE INTEGRATION 323
15.4 SOLUTION OF A DIFFERENTIAL EQUATION: 401
12.5.1 Rule 1 323
12.5.2 Rule 2 323 15.5 FORMULATION OF DIFFERENTIAL EQUATION 404
12.5.3 Rule 3 323 15.6 DIFFERENTIAL EQUATIONS WITH VARIABLE
12.5.4 Rule 4 324 SEPARABLE 407
12.5.5 Rule 5 324 15.6.1 Equations Reducible to Variable Separable 409
12.6 PROPERTIES OF INDEFINITE INTEGRAL 327 15.7 EXPONENTIAL GROWTH AND DECAY 411
12.7 INTEGRATION BY SUBSTITUTION 333 15.7.1 Law of Natural Growth 411

12.7.1 Selection of Proper Substitution 333 15.7.2 Law of Natural Decay 411

12.8 INTEGRATION BY PARTS 339 Unit 3 Case Study Questions 420

12.9 INTEGRATION USING PARTIAL FRACTION 344
12.9.1 Partial Fractions of Type I 345
CHAP 16. PROBABILITY DISTRIBUTION 432
12.9.2 Partial Fractions of Type II 347 16.1 INTRODUCTION 432
12.9.3 Partial Fractions of Type III 350
16.2 RANDOM VARIABLE 432
12.10 INTEGRATION OF RATIONAL FUNCTION 352
16.3 DISCRETE RANDOM VARIABLE 433
12.10.1 Integrals of Type I 355
12.10.2 Integrals of Type II 357 16.3.1 Probability Distribution Function 433

12.10.3 Integrals of Type III 358 16.3.2 Expected Value 433

16.3.3 Variance For Discrete Random Variable 434
CHAP 13. DEFINITE INTEGRATION 365 16.3.4 Standard Deviation 434

13.1 INTRODUCTION 365 CHAP 17. BINOMIAL DISTRIBUTION 450

13.2 DEFINITE INTEGRATION AS AREA UNDER THE 17.1 INTRODUCTION 450
CURVE 365
17.2 BERNOULLI TRIAL 450
13.3 FUNDAMENTAL THEOREM OF INTEGRAL
CALCULUS 365 17.3 BINOMIAL DISTRIBUTION 450
13.4 EVALUATION OF DEFINITE INTEGRAL USING 17.3.1 Mean and Variance of Binomial Distribution 451
PROPERTIES 378
CHAP 18. POISSON DISTRIBUTION 467
13.4.1 Properties 1 and 2 378
13.4.2 Property 3 378 18.1 INTRODUCTION 467
13.4.3 Properties 4 and 5 380
18.2 POISON DISTRIBUTION 467
13.4.4 Property 6 381
13.4.5 Property 7 382 18.3 AS A LIMITING CASE OF BINOMIAL 468
13.4.6 Property 8 382 18.4 APPLICATION OF POISSON DISTRIBUTION 468

CHAP 14. APPLICATION OF INTEGRATION 384 CHAP 19. NORMAL DISTRIBUTIONS 481
14.1 INTRODUCTION 384 19.1 INTRODUCTION 481
14.2 MARGINAL COST AND TOTAL COST 384 19.2 DEFINITION 481
14.3 MARGINAL REVENUE AND TOTAL REVENUE 389 19.3 PROPERTIES OF NORMAL DISTRIBUTION 481
14.4 CONSUMERS’ AND PRODUCERS’ SURPLUS 393 19.4 STANDARD NORMAL DISTRIBUTION 482
14.4.1 Law of Demand 393 19.4.1 Properties of Standard Normal distribution 482
14.4.2 Law of Supply 393 19.4.2 As a Limiting Case of Binomial 482
14.4.3 Equilibrium Point 394
14.4.4 Consumer Surplus and Producer surplus 394 Unit 4 Case Study Questions 505

CHAP 15. DIFFERENTIAL EQUATION 399

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CHAP 20. INFERENTIAL STATISTICS 516 20.15 t-TEST 535
20.15.1 Conditions for the Use of t-test 535
20.1 INTRODUCTION 516
20.15.2 Applications of t-test 535
20.2 POPULATION 516 20.15.3 Use of t Table 535
20.3 TYPES OF POPULATION 516 20.16 ONE SAMPLE t-TEST 536
20.4 SAMPLE 517 20.17 TWO SAMPLE t-TEST 546
20.5 DIFFERENCE BETWEEN POPULATION AND
Unit 5 Case Study Questions 555
SAMPLE 517
20.6 TYPES OF SAMPLES 517 CHAP 21. INDEX NUMBER 561
20.6.1 Representative Sample 517
20.6.2 Non Representative Sample 517 21.1 INTRODUCTION 561
20.6.3 Difference between Representative and Non Representative 21.2 MEANING AND DEFINITION 561
Sample 517
21.3 USES OF INDEX NUMBERS 562
20.7 RANDOM SAMPLING 518
20.7.1 Simple Random Sampling 518
21.4 RELATIVE INDEX 562
20.7.2 Systematic Random Sampling 520 21.5 STEPS IN CONSTRUCTING INDEX NUMBERS 564
20.7.3 Stratified Random Sampling 521 21.5.1 Defining (Stating) the Purpose of the Index Number 564
20.7.4 Cluster Sampling 521 21.5.2 Selecting the Base Period 564
20.8 NON-RANDOM SAMPLING 521 21.5.3 Selecting the Items 564
20.8.1 Convenience Sampling 522 21.5.4 Obtaining Price Quotations 564
20.8.2 Judgement Sampling 522 21.5.5 Selecting the Appropriate System of Weight 565
20.8.3 Quota Sampling 522 21.5.6 Selecting the Appropriate Formula 565
20.8.4 Snowball Sampling 522 21.6 TYPES OF INDEX NUMBERS 565
20.9 BIASED AND UNBIASED SAMPLING 522 21.6.1 Price Index 565
20.9.1 Unbiased Sampling 522 21.6.2 Quantity Index 565
20.9.2 Biased Sampling 523 21.6.3 Value Index 565

20.10 PARAMETERS AND STATISTICS 523 21.7 NOTATIONS AND SYMBOLS USED IN INDEX
NUMBERS 565
20.10.1 Parameters 523
20.10.2 Statistics 523 21.8 LIMITATIONS OF INDEX NUMBERS 566
20.10.3 Relationship between Parameter and Statistic 524 21.9 METHODS OF CONSTRUCTING INDEX NUMBERS
20.10.4 Difference between Parameters and Statistics 524 566
20.10.5 Limitation of Statistic to generalize the estimation for Popu-
lation 524 21.10 SIMPLE INDEX NUMBERS 566
20.10.6 Sampling Distribution 525 21.10.1 Simple Aggregative Price Index 566
20.10.7 Relationship between population, sample and sampling dis- 21.10.2 Simple Average of Price Relatives Method 572
tributions 525 21.11 WEIGHTED PRICE INDEXES 578
20.11 CENTRAL LIMIT THEOREM 525
21.12 WEIGHTED AGGREGATE PRICE INDEX 578
20.11.1 Features of Central Limit Theorem 525
21.12.1 Laspeyre’s Weighting Method 578
20.12 STATISTICAL SIGNIFICANCE 527 21.12.2 Paasche’s Weighting Method 581
20.13 STATISTICAL INFERENCE 527 21.12.3 Fisher’s Ideal Method 586
21.12.4 Doorbish and Bowley’s Index 588
20.14 HYPOTHESIS TESTING 527
21.12.5 Marshall-Edgeworth Method 588
20.14.1 HYPOTHESIS 527
21.12.6 Tests of Adequacy of Index Numbers 590
20.14.2 Sampling Error 527
21.13 WEIGHTED AVERAGE OF PRICE RELATIVES 592
20.14.3 Procedure of Testing Hypothesis 528
20.14.4 Difference between Null Hypothesis and Alternative Hypoth- 21.14 CONSUMER PRICE INDEX 595
esis 529 21.14.1 Uses of Consumer Price Index (CPI) Number 595
20.14.5 Some Examples of developing hypothesis 529 21.14.2 Construction of a Consumer Price Index 595
20.14.6 Type I and Type II Errors in Hypothesis Testing 532 21.14.3 Aggregate Expenditure Method or Weighted Aggregate
20.14.7 Power of the Test 534 Method 595
20.14.8 Degrees of freedom 534 21.14.4 Weighted Average of Price Relative Method or Family

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 Budget Method 597 23.6 COMPOUND ANNUAL GROWTH RATE (CAGR) 669
23.6.1 Meaning 669
CHAP 22. TIME SERIES 607
23.6.2 Uses of CAGR 669
22.1 INTRODUCTION 607 23.6.3 Difference between CAGR and AGR 670
23.6.4 Calculation of CAGR 670
22.2 DEFINITION 607
23.7 LINEAR METHOD OF DEPRECIATION (STRAIGHT
22.3 USES OF TIME SERIES ANALYSIS 607 LINE METHOD) 673
22.3.1 Studying the Past Behaviour 607 23.7.1 Meaning of Depreciation 673
22.3.2 Forecasting Future Behaviour 607 23.7.2 Factors Affecting the Amount of Depreciation 673
22.3.3 Evaluating the Performance 607 23.7.3 Linear Method of Depreciation 674
22.3.4 Making a Comparative Study 608 23.7.4 Advantages of Linear Method of Depreciation 674
22.4 COMPONENTS OF TIME SERIES 608 23.7.5 Disadvantages of Linear Method of depreciation 675
22.4.1 Secular Trend (T) 608
22.4.2 Seasonal Variation (S) 609
CHAP 24. FINANCIAL MATHEMATICS II 680
22.4.3 Cyclical Variation (C) 609 24.1 INTRODUCTION 680
22.4.4 Irregular Variation (I) 610
24.2 JOINT STOCK COMPANY 680
22.5 MATHEMATICAL MODELS OF TIME SERIES 610
24.3 STOCKS 680
22.5.1 Additive Model 610
22.5.2 Multiplicative Model 610 24.4 SHARES 692
22.6 MEASUREMENT OF SECULAR TREND 610 24.4.1 Meaning 692
22.6.1 Method of Freehand Curve (Graphical Method) 610 24.4.2 Related Terms 693
22.6.2 Method of Moving Averages 611 24.4.3 Types of Shares 693
22.6.1 Method of Least Squares 622 24.4.4 Features of Equity Shares 693
24.4.5 Advantages of Equity Shares 693
Unit 6 Case Study Questions 634 24.5 DEBENTURES 698
24.5.1 Meaning 698
CHAP 23. FINANCIAL MATHEMATICS I 641
24.5.2 Difference between Shares and Debentures 698
23.1 PERPETUITY 641 24.5.3 Type of Debentures 699
23.1.1 Meaning 641 24.5.4 Features of Debentures 699
23.1.2 Real Life Examples 641 24.5.5 Advantages of Debentures 699
23.1.3 Types of Perpetuity 641 Unit 7 Case Study Questions 705
23.1.4 Present Value of a Growing Perpetuity 642
23.2 SINKING FUND 646 CHAP 25. LINEAR PROGRAMMING 711
23.2.1 Meaning 646
25.1 INTRODUCTION 711
23.2.2 Real Life Examples 647
23.2.3 Uses of Sinking Fund 647 25.2 GRAPHICAL SOLUTION OF SYSTEM OF
23.2.4 Differences between Sinking Fund and Saving Account648 INEQUALITIES IN TWO VARIABLES 711
23.2.5 Advantages of Sinking Funds 648 25.3 LINEAR PROGRAMMING PROBLEM (LPP) 717
23.3 VALUATION OF BONDS 654 25.4 GENERAL LINEAR PROGRAMMING PROBLEM 718
23.3.1 Bonds 654
25.5 PROPERTIES OF LINEAR PROGRAMMING
23.3.2 Definition of Bond 654
PROBLEM 718
23.3.3 Valuation of Bonds 654
23.3.4 Bond Valuation Methods 654 25.6 SOME MORE DEFINITIONS 718

23.4 CALCULATION OF EMI 659 25.7 EXTREME POINT THEOREM 719

23.4.1 Meaning of EMI 659 25.8 GRAPHICAL METHOD OF SOLUTION OF A L.P.P.
23.4.2 Methods of Calculating EMI 659 (BY CORNER POINT METHOD) 719
23.5 CALCULATIONS OF RETURNS 664 25.9 MATHEMATICAL FORMULATION OF LPP 727
23.5.1 Return on Investment (ROI) 664 25.10 ISO-PROFIT/ ISO-COST METHOD: 747
23.5.2 Nominal Rate of return 665
23.5.3 Effective Rate of Interest 665 Unit 8 Case Study Questions 753

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Chap 1 Modulo Arithmetic Page 1

CHAPTER 1

Modulo Arithmetic

1.1 Modulo Arithmetic n , then the remainder may be 0, 1, 2, 3, ..., (n - 1).

Modular arithmetic is a special type of arithmetic that Thus, m mod n may be either of 0, 1, 2, 3, ...,
involves only integers. It is a system of arithmetic for (n - 1).
integers in which the numbers ‘wrap around’ after
reaching a certain value. This value around which the EXAMPLE 1.1
numbers wrap around is called the modulus and written Evaluate the following:
as mod. The modulo arithmetic forms the basis of many (i) 8 mod 5 (ii) 4 mod 6
programming languages of computer.


Sol :
A familiar use of modulo arithmetic is in the 12
hour clock, in which a day is divided into two 12 hours
periods. The dial of the clock is divided into 12 equal parts Click : www.nodia.study/lema/am101
marked as 1, 2, 3, ..., 12. If the present time is say 9:00,
then 9 hours, by simple addition the clock should show
18:00. However, the clock shows 6:00 as it wraps around
every 12 hours, and so the hour number starts over again EXAMPLE 1.2
after it reaches 12, thereby showing 6:00 after 9 hours. It Evaluate the following:
can be easily understood as, when 18 is divided by 12, the (i) 26 mod 7 (ii) 22 mod 5
remainder is 4.


Sol :
Thus we can say that modulo arithmetic is the
arithmetic of remainder.
We know that when we divide an integer a by Click : www.nodia.study/lema/am102
another integer b , then we have
a = bq + r
where q and r are integers and 0 # r 1 b
Here a is the dividend, b is the divisor, q is the EXAMPLE 1.3
quotient and r is the remainder. Evaluate the following:
In modulo arithmetic, we consider the remainder r (i) 126 mod 7 (ii) 252 mod 5
as our output or answer when a is divided by b


Sol :
i.e., a mod b = r


Illustration Click : www.nodia.study/lema/am103
When 13 is divided by 4, the remainder is 1

EXAMPLE 1.4
Evaluate the following:
Thus, we write 13 mod 4 = 1. (i) 426 mod 27 (ii) 512 mod 25
Remark:

Sol :
When an integer m is divided by another positive integer
Page 2 Modulo Arithmetic Chap 1

Click : www.nodia.study/lema/am104 EXAMPLE 1.9

Today is Tuesday. My uncle will come after 45 days. In
which day my uncle will be coming. Find using modulo
arithmetic ?
EXAMPLE 1.5

Sol :
Evaluate the following:
(i) - 14 mod 4 (ii) - 85 mod 9
Click : www.nodia.study/lema/am109


Sol :

Click : www.nodia.study/lema/am105
EXAMPLE 1.10
The duration of flight travel from Chennai to London
through British Airlines is approximately 11 hours. The
airplane begins its journey on Sunday at 23:30 hours. If
EXAMPLE 1.6
the time at Chennai is four and half hours ahead to that
What time will it be after 200 hours, if the present time
of London’s time, then find the time at London, when will
is 5:00 am?
the flight lands at London Airport. Find using modulo


Sol : arithmetic


Sol :
Click : www.nodia.study/lema/am106
Click : www.nodia.study/lema/am110

EXAMPLE 1.11
It is 9:00 am currently in the digital watch. What time
will watch show (in am or pm) after 600 hours.


Sol :

EXAMPLE 1.7
What is the time 100 hours after 7 a.m. Find using modulo
Click : www.nodia.study/lema/am111
arithmetic ?


Sol :
1.1.1 Properties of Modulo Operator

Click : www.nodia.study/lema/am107 Property 1:

If the value of a is increased by a multiple of m (say, km
, where k is any integer) then
a mod m = (a + km) mod m

EXAMPLE 1.8
Property 2:
What is the time 150 hours before 11 p.m. Find using
modulo arithmetic? If a , b and m are positive integers then, addition
property of modulo arithmetic is


Sol : (a + b) mod m = (a mod m + b mod m) mod m
Property 3
Click : www.nodia.study/lema/am108 If a , b and m are positive integers then, subtraction
property of modulo arithmetic is
(a − b) mod m = (a mod m − b mod m) mod m
Chap 1 Modulo Arithmetic Page 3

Property 4: EXAMPLE 1.15

Using modulo arithmetic find the remainder when
If a , b and m are positive integers then, multiplication
(225 - 125) is divided by 11.
property of modulo arithmetic is
(a # b) mod m = (a mod m # b mod m) mod m


Sol :

EXAMPLE 1.12 Click : www.nodia.study/lema/am115

Using modulo arithmetic find the remainder when
(43 + 73) is divided by 7.


Sol :
EXAMPLE 1.16
Using modulo arithmetic find the remainder when
Click : www.nodia.study/lema/am112 (38 + 89 + 67) is divided by 9.


Sol :

EXAMPLE 1.13 Click : www.nodia.study/lema/am116

Using modulo arithmetic evaluate (358 + 461) (mod 8)


Sol :

Click : www.nodia.study/lema/am113

Applied Mathematics
CBSE Class XI and XII Commerce
A Text Book by NODIA Press
Based on New Syllabus Released By CBSE

No Missing Topic No Extra Topic

EXAMPLE 1.17
Using modulo arithmetic find the remainder when
For Teachers (35 + 81 + 82 + 19) is divided by 4.
Digital Specimen copy available for evaluation

Sol :
Whatsapp at 94140 63210
Hard Specimen Book Available for Teachers who adopt this
book as Text book and Recommend as Text Book to Students Click : www.nodia.study/lema/am117
Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
whose students have purchased book.

EXAMPLE 1.18
EXAMPLE 1.14 Find (8 # 16) (mod 7) ?
Using modulo arithmetic find the remainder when


Sol :
(73 - 43) is divided by 7.


Sol :
Click : www.nodia.study/lema/am118
Click : www.nodia.study/lema/am114
Page 4 Modulo Arithmetic Chap 1

EXAMPLE 1.19 EXAMPLE 1.25

Using modulo arithmetic evaluate (16 # 29) mod 7 Using modulo arithmetic find the remainder when


Sol : (523 # 124 # 329 # 832) is divided by 3.


Sol :

Click : www.nodia.study/lema/am119
Click : www.nodia.study/lema/am125

EXAMPLE 1.20
Using modulo arithmetic evaluate (25 # 51) mod 6 EXAMPLE 1.26


Sol : Find the last three digits of the product 5142 # 7466 .


Sol :

Click : www.nodia.study/lema/am120
Click : www.nodia.study/lema/am126

EXAMPLE 1.21
Using modulo arithmetic evaluate (14 # 8) mod 5 EXAMPLE 1.27


Sol : There are 81 boxes with 21 articles in each.
When we rearrange all of the articles so that
each box has 5 articles, how many articles will
Click : www.nodia.study/lema/am121 be left out without a box.


Sol :

EXAMPLE 1.22 Click : www.nodia.study/lema/am127

Using modulo arithmetic evaluate (246 # 176) mod 9


Sol :
1.1.2 Modulo Arithmetic
Click : www.nodia.study/lema/am122 Addition Modulo m :
Given two positive integers a and b , the addition modulo
m denoted as + m (where m is any positive integer) is
defined for set of integers as:
EXAMPLE 1.23 a + m b = (a + b) mod m
Find the last two digits of the product 4321 # 3215 .
Subtraction Modulo m


Sol :
Given two positive integers a and b , the subtraction
modulo m denoted as - m (where m is any positive
Click : www.nodia.study/lema/am123 integer) is defined for set of integers as:
a − m b = (a − b) mod m
Multiplication Modulo m
Given two positive integers a and b , the multiplication
EXAMPLE 1.24 modulo m denoted as K m (where m is any positive
Simplify (13 + 11) # 18 (mod 7). integer) is defined for set of integers as:


Sol : a K m b = (a # b) mod m

Click : www.nodia.study/lema/am124
Chap 1 Modulo Arithmetic Page 5

EXAMPLE 1.28 Click : www.nodia.study/lema/am132

(i) Find the sum of 3 and 11 in modulo 24.
(ii) Find the sum of 17 and 15 in modulo 9.
(iii) Find the sum of 35 and 17 in modulo 30.


Sol : EXAMPLE 1.33
Apply multiplication modulo to positive integers 81 and

Click : www.nodia.study/lema/am128 21 for modulo 5.

Sol :

Click : www.nodia.study/lema/am133
EXAMPLE 1.29
Find the sum of 31 and 148 in modulo 24.


Sol :

Click : www.nodia.study/lema/am129

EXAMPLE 1.30 1.1.3 Application of Modulo Arithmetic

(i) Apply subtraction modulo to positive integers 25
There are many application of modulo, ranging from
and 7 for modulo 5.
everyday life to Math and Science. Some of which are as
(ii) Apply subtraction modulo to positive integers 15
follows :
and 6 for modulo 25
1. A practical application of modulo arithmetic is to


Sol : calculate checksums within serial number identifiers.
For example, International Standard Book Number

Click : www.nodia.study/lema/am130 (ISBN) uses modulo 11 (for 10 digit ISBN) or modulo

10 (for 13 digit ISBN) arithmetic for error detection.
Likewise, International Bank Account Numbers
(IBANs), for example, make use of modulo 97
arithmetic to spot user input errors in bank account
EXAMPLE 1.31 numbers.
(i) Apply subtraction modulo to positive integers 45 2. In computer science, modular arithmetic is often
and 18 for modulo 9. applied in bitwise operations and other operations
(ii) Apply subtraction modulo to positive integers 95 .The modulo operation, as implemented in many
and 36 for modulo 11 programming languages and calculators, is an


Sol : application of modular arithmetic.
3. In music, arithmetic modulo 12 is used in the

Click : www.nodia.study/lema/am131
consideration of the system of twelve-tone equal
temperament.
4. On a calendar, arithmetic modulo 7 is used in
algorithms that determine the day of the week for a
given date.
EXAMPLE 1.32 5. Modular arithmetic also has wide application
(i) Apply multiplication modulo to positive integers 3 in disciplines such as law (e.g., apportionment),
and 11 for modulo 8. economics(e.g., game theory) and other areas of the
(ii) Apply subtraction modulo to positive integers 5 and social sciences.
13 for modulo 13.


Sol :
Page 6 Modulo Arithmetic Chap 1

divided by 8.
Ans : 6

10. Find the remainder when 512 # 398 # 114 # 756 is

divided by 5.
Ans : 4

1.2 Congruences
If two integers a and b leave the same remainder when
divided by a fixed number n (n dN), then we can say that
a is congruent to b modulo n or a is congruent to b (mod 
n ). It is written as a / b (mod n).
E X ERCISE 1.1 For example, consider 45 / 17 (mod 7)
Dividing 45 and 17 by 7, we have
1. Evaluate the following:
(i) 22 mod 4 (ii) 35 mod 7
(iii) –15 mod 2 (iv) 4 mod 9
Ans : (i) 2, (ii) 0, (iii) 1, (iv) 4
We observe that both 45 and 17 leave the same remainder
2. Evaluate the following:
3, when divided by 7.
(i) 43 (mod 6)
Thus, we can say that 45 / 17 (mod 7).
(ii) 97 (mod 5)
Alternatively, we can understand or define
(iii) - 17 (mod 4)
congruence modulo in another way as:
Ans : (i) 1, (ii) 2, (iii) 3
a / b (mod n) if n divides (a - b)
3. Evaluate the following: since the difference of a - b is an integral multiple of n .
(i) (57 - 42) mod 11 We observe that in above example 45 / 17 (mod 7)
(ii) (62 + 53) mod 7 as 7 divides 45 − 17 = 28 completely i.e., 28 is a multiple
(iii) (9 # 8) mod 5 of 7.
Ans : (i)4, (ii) 3, (iii) 2 Definition:
4. Evaluate the following : If a and b are any two integers and n is a positive integer
(i) 45 + 13 18 (ii) 55 - 11 17 such that (a -n b) i.e., (a - b) is divisible by n , then a is said
Ans : (i) 11, (ii) 5 to be congruent to b modulo n and is expressed as
a / b (mod n)
5. Evaluate the following :
or a - b / (mod n)
(i) 5 9 7 8 (ii) 13 9 11 7
Ans : (i) 5, (ii) 3 or a - b = kn for some integer k .
Here n is said to be modulo of the congruence.
6. Find the last two digits of the product 4895 # 6789


Illustration
Ans : 55
/ 7 (mod 5) as 4 divides (32 - 7)
32
7. Find the last two digits of the product 123 # 234 # 345 46 / 10 (mod 4) as 4 divides (46 - 10)
Ans : 90 If n does not divide (a - b), then a is called incongruent
to b modulo n . For example, 46 _ 12 (mod 7) as 7 does
8. Find the last three digits of the product 2345 # 4567 . not divide (46 - 12).
Ans : 615

9. Find the remainder when 481 + 392 + 604 + 937 is

Chap 1 Modulo Arithmetic Page 7

1.3 Properties of Congruences

Sol :

If a , b , c are any integers and n is a positive integer, then
(i) a / b (mod n) + a = b + kn for some integer k . Click : www.nodia.study/lema/am134
(ii) a / b (mod n) + a and b leave the same remainder
when divided by n .
(iii) An integer is congruent to its remainder
i.e., a / r (mod n) EXAMPLE 1.35
(iv) Every integer is congruent to itself Find a such that a / 9 (mod 7).
i.e., a / a (mod n)
(v) If a / b (mod n), then b / a (mod n)

Sol :
(vi) If a / b (mod n), then - a / - b (mod n)
(vii) If a / b (mod n) and b / c (mod n), then Click : www.nodia.study/lema/am135
a / c (mod n)

1.3.1 Properties of Addition

If a , b , c , d are any integers and n is a positive integer, EXAMPLE 1.36
then If x is an odd integer, prove that x2 / 1 (mod 8).
(i) (a + b) (mod n) / a (mod n) + b (mod n)


Sol :


Illustration
Let a = 37 , b = 13 , c = 50 , n = 3 , then
(37 + 13) (mod 3) / 50 (mod 3) = 2
Click : www.nodia.study/lema/am136
Also, 37 (mod 3) / 1 and 13 (mod 3) / 1
50 (mod 3) / 37 (mod 3) + 13 (mod 3)
(37 + 13) (mod 3) / 37 mod 3 + 13 mod 3 EXAMPLE 1.37
(ii) If a / b (mod n), then (a + k) / (b + k) (mod n), for Find the last digit (unit digit) of 2212 .
any integer k .

Sol :
(iii) If a / b (mod n) and c / d (mod n), then (a + c)
/ (b + d) (mod n).
(iv) If a / b (mod n), c / d (mod n), then (a - c) Click : www.nodia.study/lema/am137
/ (b - d) (mod n).

1.3.2 Properties of Multiplication

If a , b , c , d are any integers and n is a positive integer, EXAMPLE 1.38
then Evaluate :
(i) a $ b (mod n) / a (mod n) $ b (mod n) (i) 610 mod 5 (ii) 316 (mod 4)
(ii) If a / b (mod n) and c / d (mod n), then

Sol :
ac / bd (mod n).
(iii) If a / b (mod n), then ka / kb (mod n) for any integer
k. Click : www.nodia.study/lema/am138
1.3.3 Exponential Property in Congruence
For any integers a , b and a positive integer n , if
a / b (mod n), then ak / bk (mod n), where k is a positive EXAMPLE 1.39
integer. Evaluate 315 mod 7 .


Sol :
EXAMPLE 1.34
Find the least positive integer (mod 11) to which 283 is
congruent.
Click : www.nodia.study/lema/am139
Page 8 Modulo Arithmetic Chap 1

EXAMPLE 1.40 Click : www.nodia.study/lema/am145

Find the least non-negative remainder when 730 is divided
by 5.


Sol :
EXAMPLE 1.46

Click : www.nodia.study/lema/am140 Find remainder when 224 is divided by 17.

Sol :

Click : www.nodia.study/lema/am146
EXAMPLE 1.41
Find the least non-negative remainder when 3100 is divided
by 7.


Sol : EXAMPLE 1.47
Find remainder when 1135 is divided by 13.

Click : www.nodia.study/lema/am141

Sol :

Click : www.nodia.study/lema/am147
EXAMPLE 1.42
Show that 220 - 1 is divisible by 41.


Sol : EXAMPLE 1.48
Find remainder when 2340 is divided by 341.

Click : www.nodia.study/lema/am142

Sol :

Click : www.nodia.study/lema/am148
EXAMPLE 1.43
Show that 5 48 - 1 is divisible by 24.


Sol : EXAMPLE 1.49
Find the remainder when 250 is divided by 7.

Click : www.nodia.study/lema/am143

Sol :

Click : www.nodia.study/lema/am149
EXAMPLE 1.44
Show that 224 - 1 is divisible by 17.


Sol : EXAMPLE 1.50
Find the remainder when 312 + 512 is divided by 13.

Click : www.nodia.study/lema/am144

Sol :

Click : www.nodia.study/lema/am150
EXAMPLE 1.45
Find the remainder when 3 40 is divided by 23.


Sol :
Chap 1 Modulo Arithmetic Page 9

EXAMPLE 1.51 EXAMPLE 1.57

Find the remainder when 1653 is divided by 7 Find remainder when 4444 4444 is divisible by 9.


Sol :

Sol :

Click : www.nodia.study/lema/am151 Click : www.nodia.study/lema/am157

EXAMPLE 1.52 EXAMPLE 1.58

Show that 3247 - 11 is divisible by 17. What is the last digit in the ordinary decimal representation


Sol : of
(i) 2 400 (ii) 3 400

Click : www.nodia.study/lema/am152


Sol :

Click : www.nodia.study/lema/am158
EXAMPLE 1.53
Show that 53103 + 10353 is divisible by 39.


Sol :

Click : www.nodia.study/lema/am153

EXAMPLE 1.54
Show that 3287 - 3 is divisible by 23.


Sol :

EXAMPLE 1.59
Click : www.nodia.study/lema/am154 What is the last digit of 1717 ?


Sol :

EXAMPLE 1.55 Click : www.nodia.study/lema/am159

Show that 232 + 1 is divisible by 641.


Sol :

EXAMPLE 1.60
Click : www.nodia.study/lema/am155 Find the last two digits of 21000 .


Sol :

EXAMPLE 1.56 Click : www.nodia.study/lema/am160

Show that 111333 + 333111 is divisible by 7.


Sol :

EXAMPLE 1.61
Click : www.nodia.study/lema/am156 Find the last three digit of 2 40 .
Page 10 Modulo Arithmetic Chap 1

Sol : EXAMPLE 1.65

Find the positive integers less than 50 forming the
equivalence class 4 for modulo 6
Click : www.nodia.study/lema/am161

Sol :

1.3.4 Equivalence Class Click : www.nodia.study/lema/am165

An equivalence class is the name that we give to the subset
of S which includes all elements that are equivalent to
each other. In modulo arithmetic an equivalence class
consists of those integers that have the same remainder.

EXAMPLE 1.62 E X ERCISE 1. 2

Find all the positive integers less than 30 forming the
equivalence class of 5 for modulo 7.
1. Evaluate 510 (mod 3).


Sol : Ans : 1

2. Evaluate 99 (mod 11).

Click : www.nodia.study/lema/am162 Ans : (i) 1, (ii) 5

3. Find the remainder when 212 is divided by 41.

Ans : 37
EXAMPLE 1.63
Find all the positive integers less than 40 forming the 4. Find the remainder when 910 is divided by 11.
equivalence class of 7 for modulo 9. Ans : 1


Sol : 5. Find the remainder when 2102 is divided by 5.
Ans : 4
Click : www.nodia.study/lema/am163 6. Find the remainder when 3200 is divided by 13.
Ans : 9

Applied Mathematics
CBSE Class XI and XII Commerce
A Text Book by NODIA Press
Based on New Syllabus Released By CBSE

No Missing Topic No Extra Topic

EXAMPLE 1.64
Find all the positive integers less than 60 forming the
equivalence class of 8 for modulo 11.
For Teachers


Sol : Digital Specimen copy available for evaluation
Whatsapp at 94140 63210
Click : www.nodia.study/lema/am164 Hard Specimen Book Available for Teachers who adopt this
book as Text book and Recommend as Text Book to Students
Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
whose students have purchased book.
Chap 1 Modulo Arithmetic Page 11

1.4 Linear Congruence the linear congruence will have a unique solution in
An expression of the form ax / b (mod n), where a , b and the set "0, 1, 2, ... (n - 1), which can be found by trial
n are positive integers is called a linear congruence. method.
For example, 4x / 2 (mod 6) is a linear congruence. (ii) If gcd(a, n) = d (! 1) and d does not divide b
The integral value(s) of x which satisfy the given , then there will be no solution of the congruence
congruence are called its solutions. Thus, an integer x0 is ax / b (mod n).
said to be a solution of linear congruence ax / b (mod n) (iii) If gcd(a, n) = d (! 1) and d divides b , then
n congruence ax / b (mod n) will have exactly d
if ax0 / b (mod n) i.e., if .
(ax0 - b) solutions which are incongruent (mod n).
In this case, first we shall find the least positive
A linear congruence can have unique solution, many
integral value x0 which satisfies
solutions or no solution depending on the values of a , b
and n . a x / b b mod n l by using trial method
d d d
Consider a linear congruence
4x / 2 (mod 6) Let x0 be the least solution of a x / b b mod n l ,
d d d
where x is any integer. ...(1) then the solution of the given congruence which are
We observe that x = 2 and x = 5 satisfy equation (1). incongruent (mod n) are
Thus, 2 and 5 are the solutions of equation (1). Again, we
observe that –4, –1,  8, 11, 14, 17 and many more values of x = x0, x0 + n , x0 + 2n , ..., x0 + (d − 1) n (mod n)
d d d
x are also solutions of (1). Infact, every integer congruent
to 2 modulo 6 and congruent to 5 modulo 6 are solutions
of equation (1). EXAMPLE 1.66
Thus, any integer of the form 2 + 6k and 5 + 6k , Find the number of incongruent solutions of the following
where k is any integer, is a solution of (1). linear congruences :
Remark : (i) 10x / 5 (mod 3) (ii) 7x / 2 (mod 4)
(i) All the congruent solutions 2 + 6k are considered

Sol :
as single solution and similarly, all the congruent
solutions (5 + 6k) are considered as another single
solution since they are congruent. Click : www.nodia.study/lema/am166
(ii) Solutions are considered distinct if and only if they are
‘incongruent’ to each other (mod n) in a / b (mod n).
(iii) Solutions (unique or distinct) lie in the set {0, 1, 2,
3, ..., (n - 1)} for ax / b (mod n). EXAMPLE 1.67
Find the number of incongruent solutions of the following
1.4.1 Some Important Theorems on Linear linear congruences :
Congruence (i) 6x / 4 (mod 3)
1. If (a, n) = 1 i.e., a and n are co-prime, then the linear (ii) 18x / 12 (mod 6)
congruence ax / b (mod n) has a unique solution.

Sol :
2. If (a, n) = d and db , then the linear congruence
ax / b (mod n) has exactly d solutions which are
incongruent (mod n). Click : www.nodia.study/lema/am167
3. If (a, n) = d and db , then the linear congruence
ax / b (mod n) has no solution.
Remark :
Two natural numbers a and b are said to be co-prime or EXAMPLE 1.68
relatively prime to each other if g.c.d. (a, b) = 1. Find the number of incongruent solutions of the following
linear congruences :
1.4.2 Working Rule to Solve a Linear Congruence (i) 8x / 12 (mod 20) (ii) 14x / 8 (mod 7)
Consider a linear congruence ax / b (mod n)

Sol :
1. Find the g.c.d. of a and n , and let d = g.c.d. (a, n).
2. (i) If a and n are co-prime i.e., g.c.d. (a, n) = 1, then
Page 12 Modulo Arithmetic Chap 1

Click : www.nodia.study/lema/am168 EXAMPLE 1.74

Solve 5x / 4 (mod 6).


Sol :

EXAMPLE 1.69
Solve the linear congruence 5x / 3 (mod 4).
Click : www.nodia.study/lema/am174


Sol :

Click : www.nodia.study/lema/am169 EXAMPLE 1.75

Solve 3x - 2 / 0 (mod 11).


Sol :

EXAMPLE 1.70
Find the least positive value of x such that
Click : www.nodia.study/lema/am175
(i) 71 / x (mod 8)
(ii) 78 + x / 3 (mod 5)
(iii) 89 / (x + 3) (mod 4)
EXAMPLE 1.76


Sol : Solve : (x − 1) (x + 2) / (x − 2) (x + 7) (mod n), if n is odd.


Sol :
Click : www.nodia.study/lema/am170
Click : www.nodia.study/lema/am176
EXAMPLE 1.71
Find the least positive value of x such that 96 / x (mod 5)
7


Sol :

Click : www.nodia.study/lema/am171

EXAMPLE 1.72
Find the least positive value of x such that 5x / 4 (mod 6)


Sol :

Click : www.nodia.study/lema/am172
E X ERCISE 1. 3
EXAMPLE 1.73 Find the number of incongruent solutions of the following
If x is congruent to 13 modulo 17 then 7x - 3 is congruent linear congruences:
to which number modulo 17 ? 1. 9x / 2 (mod 5)
Ans : Unique solution


Sol :
2. 10x / 3 (mod 2)
Click : www.nodia.study/lema/am173 Ans : No solution
Chap 1 Modulo Arithmetic Page 13

3. 15x / 10 (mod 5)
Ans : Five solutions

4. 8x / 4 (mod 3)
Ans : Unique solution

Solve the following linear congruences:

5. 7x / 13 (mod 11)
Ans : x = 5 (mod 11)

6. 6x / 2 (mod 3)
Ans : No solution

7. 6x / 4 (mod 10)
Ans : x = 4, 9 (mod 10)

8. 12x / 4 (mod 7)
Ans : x = 5 (mod 7)

9. 8x / 5 (mod 6)
Ans : No solution

10. 15x / 12 (mod 21)

Ans : x = 5, 12, 19 (mod 21)

******
Page 14 Numerical Problems Chap 2

CHAPTER 2

Numerical Problems

2.1 Alligation and Mixture litres of alcohol. Hence the concentration of this solution
is 0.2 (= 10/50) or 20%.
2.1.1 Mixture


Illustration 2
Mixing of two or more qualities of things If 30 litres of pure milk is mixed with 10 litres of water
produces a mixture. When two items of different the concentration of this solution can be expressed as 75%
qualities are thus mixed, the quality of the (= 30
40 ) milk or 25% water.
resultant mixture lies in between the qualities We can also have two solutions mixed together to
of the original constituent items, i.e., it will be give a new solution. Such problems can also be handled
higher than the lowest quality and lower than the highest in the same manner as other mixtures. In the weighted
quality of the items being mixed. average rule, the quality of the constituents (p1, p2, etc.)
If two types of a product of different prices per will then be the concentrations of various solutions mixed
unit are mixed, the unit price of the resultant mixture together.
will lie between the prices of the two types that form
the mixture. Here, the average quality is essentially the 2.1.2 Alligation
weighted average to the two constituent items. Alligation is a practical method which enables us to find
If q1 is the quantity (or number of items) of one the ratio in which two or more ingredients at the given
particular item of quality p1 and q2 be the quantity (or price must be mixed to produce a mixture of the desired
number of items) of the second item of quality p2 are price.
mixed together to give a new mixture, then the weight
Mean Price
average value (p) of the quality of the mixture is given by
p q + p2 q2 The cost price of a unit quantity of such a mixture is
p = 1 1 called it’s Mean Price/Average Price.
q1 + q2
Even if there are more than two groups of items According to the Weighted Average rule the quantity
mixed, the weighted average rule can be applied. We will terms come on one side and the price terms come on the
only have to take figures (as shown in the formula for the other side. If we do this we get the rule
two groups) for all the groups in the numerator as well as q1 p − p2
= .
the denominator and calculate the weighted average. For q2 p1 − p
example, if there are four groups of quantities q1, q2, q3 and This is called the RULE OF ALLIGATION. This rule
q 4 whose respective qualities are p1, p2, p3 and p 4 , then the connects quantities and prices in mixtures. This can also
weighted average quality of the group can be written as be written as
p q + p2 q2 + p3 q3 + p 4 q 4 q1 p −p
p = 1 1 = 2 .
q1 + q2 + q3 + q 4 q2 p − p1
A mixture can also be a solution i.e a liquid In a descriptive manner, the Rule of Alligation can be
mixed with another liquid which is normally water. The written as
concentration of the solution is expressed as the proportion Quantity of Cheaper Rate of Dearer − Average Rate
= .
Quantity of Dearer Average Rate − Rate of Cheaper
(or percentage) of the liquid in the total solution.
This rule is a very powerful rule and is useful in


Illustration 1 problems on weighted averages and mixtures. This rule is
If 10 litres of pure alcohol is mixed with 40 litres of also useful in a number of problems which can be treated
water, then in a total solution of 50 litres, there is 10 as mixtures and applied to parameters other than price
Chap 2 Numerical Problems Page 15

also. EXAMPLE 2.1

In actual practice, to apply alligation rule, we do Find the ratio in which the rice at < 17.20 a kg
not need to remember the above formula at all. It can be be mixed with rice at < 22.80 a kg to produce a
made very simple by representing the rule pictorially. The mixture worth < 20.40 per kg.
above formula can be represented as follows:

Sol :

Click : www.nodia.study/lema/bm101

EXAMPLE 2.2
In what ratio must a grocer mix two varieties of
salt costing < 7.20 and < 5.70 respectively so as
to get a mixture worth < 6.30 per kg?


Sol :
We write the dearer and cheaper prices in one
line with some gap in between them. Then, we write the
average price in between these two but in the line below
Click : www.nodia.study/lema/bm102
the line in which dearer and cheaper prices are written.
Then, take the differences of quantities as shown along
the arrows continued, i.e., in a diagonally opposite corner. EXAMPLE 2.3
The difference between the top left hand quantity (Dearer In what ratio must water be mixed with milk to gain 10%
Price) and Average Price has to be written at the bottom by selling the mixture at cost price ?
right hand corner. Similarly, the difference between the

Sol :
top right hand corner (Cheaper Price) and the Average
Price has to be written at the bottom left hand corner.
Now the ratio of the two quantities in the bottommost Click : www.nodia.study/lema/
line will give us the ratio of the quantities of Dearer and
Cheaper varieties. Please note that since we took Dearer
bm103
Price on the top left corner, the ratio with the Bottom
Right figure in the numerator will give the ratio of Dearer
Quantity to Cheaper Quantity. EXAMPLE 2.4
A milkman mixed some water with milk to gain 20% by
selling the mixture at the cost price. Find the ratio of
Applied Mathematics water and milk.

CBSE Class XI and XII Commerce

Sol :

A Text Book by NODIA Press

Based on New Syllabus Released By CBSE Click : www.nodia.study/lema/
No Missing Topic No Extra Topic bm104

For Teachers EXAMPLE 2.5

Digital Specimen copy available for evaluation In what ratio must turmeric powder at < 60 per kg be
Whatsapp at 94140 63210 mixed with turmeric powder at < 65 per kg so that 10%
Hard Specimen Book Available for Teachers who adopt this may be gained by selling the mixture at < 68.20 per kg ?
book as Text book and Recommend as Text Book to Students

Sol :
Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
whose students have purchased book.
Page 16 Numerical Problems Chap 2

Click : www.nodia.study/lema/bm105 EXAMPLE 2.10

DK Sharma had < 28000. He lent a part of it at 8% simple
interest and the remaining at 6 23 % simple interest. His
total annual income was < 1960. Find the sum lent at
EXAMPLE 2.6 different rates.
In an examination out of 500 students, 70% boy and 80%
girls are passed. If total pass percentage was 76%, find the

Sol :
number of girls.


Sol : Click : www.nodia.study/lema/bm110

Click : www.nodia.study/lema/
EXAMPLE 2.11
bm106 Two milk vessels A and B contain milk and water mixed
in the ratio 5 : 2 and 8 : 5 respectively. Find the ratio
in which these mixtures are to be mixed to get a new
EXAMPLE 2.7 mixture containing milk and water in the ratio 9 : 4.
A manufacturer mixes two kinds of red chilli powder

Sol :
costing < 35 per kg and < 40 per kg in the ratio of 8 : 7.
What is his profit/loss percent if he sells the mixture at
the rate of < 37.50 per kg? Click : www.nodia.study/lema/bm111


Sol :

EXAMPLE 2.12
Click : www.nodia.study/lema/ A container contains 100 litre of milk. From this container,
bm107 10 litre of milk was taken out and replaced by water. This
process was further repeated two times. How much milk is
now there in mixture in the container?


Sol :
EXAMPLE 2.8
How many kg of sugar costing < 18.30 per kg must be
mixed with 126 kg of sugar costing < 8.55 per kg so that Click : www.nodia.study/lema/bm112
20% may be gained by selling the mixture at < 14.40 per
kg?


Sol : EXAMPLE 2.13
8 litres are drawn from a cask full of wine and is then filled
Click : www.nodia.study/lema/bm108 with water. This operation is performed two more times.
The ratio of the quantity of wine now left in the cask to
that of water is 8 : 19. How much wine did the cask hold
initially?
EXAMPLE 2.9


Sol :
25 kg of type A sandal powder, which costs < 614 per
kg, was mixed with a certain amount of type B sandal
powder, which costs < 695 per kg. Then the mixture was Click : www.nodia.study/lema/bm113
sold at the rate of < 767 per kg and 18% profit was earned.
What was the amount (in kg) of type B sandal powder in
the mixture?
EXAMPLE 2.14


Sol : How much water must be added to a bucket which contains
40 litres of milk at the cost price of < 35 per litre so that
Click : www.nodia.study/lema/bm109 the cost of milk reduces to < 20 per litre?
Chap 2 Numerical Problems Page 17

Sol : bm118
Click : www.nodia.study/lema/bm114

EXAMPLE 2.15
40 litres of a mixture contains milk and water in the ratio
3 : 1. Find the amount of milk to be added to the mixture
so as to have milk and water in ratio 4 : 1.


Sol :

Click : www.nodia.study/lema/bm115

EXAMPLE 2.16 E X ERCISE 2. 1

A large vessel contains a mixture of orange, pineapple
and apple juices in the respective ratio of 4 : 6 : 5. Now 1. In what ratio must rice at < 18.60 per kg be mixed
15 litres of this mixture is taken out and 8 litres of orange with rice at < 21.60 per kg so that the mixture be
juice and 2 litres of pineapple juice is added to the vessel. worth < 20 per kg ?
If the resultant quantity of orange juice in mixture is 10 Ans : 8 : 7
litres less than the resultant quantity of pineapple juice
mixture, what was the initial quantity of mixture in the 2. In what ratio must a grocer mix two varieties of
vessel ? pulses costing < 30 and < 40 respectively so as to get


Sol : a mixture worth < 31 per kg?
Ans : 7 : 3

Click : www.nodia.study/lema/bm116 3. In what ratio must water be mixed with milk to gain
16 23 % on selling the mixture at cost price?
Ans : 1 : 6

EXAMPLE 2.17 4. A milkman mixed some water with milk to gain 25%
How many litres of water should be added to a 20 litres by selling the mixture at the cost price. Find the ratio
mixtures containing milk and water in the ratio of 7 : 3 of water and milk.
such that the resultant mixture has 40% water in it? Ans : 1 : 4


Sol : 5. If < 170 is divided among 100 students such that each
boy got < 2 and each girl each girl got one <, then find
Click : www.nodia.study/lema/bm117 the number of girls.
Ans : 30

6. How many kgs. of rice costing < 36 per kg must be

EXAMPLE 2.18 mixed with 36 kg of rice costing < 27 per kg so that
The cost of Type 1 rice is < 60 per kg and Type 2 rice is 20% gain may be obtained by selling the mixture at
< 80 per kg. If both Type 1 and Type 2 are mixed in the < 36 per kg?
ratio 2 : 3, find the price per kg of the mixed variety. Ans : 10.8 kg


Sol : 7. A butler stole wine from a butt of sherry which
contained 40% of spirit and he replaced what he had
Click : www.nodia.study/lema/ stolen by wine containing only 16% spirit. The but
was then 24% strength only. How much of the butt
Page 18 Numerical Problems Chap 2

did he steal? 1. Still water : The water of a river or any other water
Ans : 23 body which is not flowing is known as still water.
2. Stream : It is the flowing water of a river which is
8. Mahalaxmi General Store has 1000 kg of sugar, part moving at a certain speed.
of which he sells at 8% profit and the rest at 18% 3. Downstream : If the boat rows/sails along the
profit. He gains 14% on the whole. Find the quantity direction of stream, then it is said to move downstream
sold at 8% profit. and the speed at which the boat is moving is called
Ans : 400 kg downstream speed.
4. Upstream : If the boat rows/sails in the direction
9. Milk and water in two vessels A and B are in the
opposite to that of the stream, then it is said to move
ratio 4 : 3 and 2 : 3 respectively. In what ratio the
upstream and the speed at which the boat is moving
liquids in both the vessels should be mixed to obtain
is called upstream speed.
a new mixture in vessel C containing half milk and
5. When the boat is moving downstream, the speed of
half water?
the water aids (and thus adds to) the speed of the
Ans : 7 : 5
boat. Thus, we have
10. The respective ratio of milk and water in the mixture Speed of the boat with the stream = Speed of the
is 4 : 3. If 16 litres of water is added to this mixture boat in still water + Speed of the stream.
the respective ratio of milk and water becomes 8 : 7. 6. When the boat is moving upstream, the speed of the
What is the quantity of milk in the original mixture? water opposes (and hence reduces) the speed of the
Ans : 48 litre. boat. Thus, we have
Speed of the boat against stream = Speed of the
boat in still water - Speed of the stream.

Applied Mathematics
7. The speeds of the boat against the stream and the
speed of the boat with the stream, are RELATIVE
CBSE Class XI and XII Commerce SPEEDS.
8. If u is the speed of the boat down the stream and v
A Text Book by NODIA Press is the speed of the boat up the stream, then we have
Based on New Syllabus Released By CBSE
the following two relationships:
No Missing Topic No Extra Topic Speed of the boat in still water = u + v
2
Speed of the water current = u − v

For Teachers
2
9. In problems instead of a boat, it may be a swimmer
Digital Specimen copy available for evaluation but the approach is exactly the same. Instead of
Whatsapp at 94140 63210 boats/swimmers in water, it could also be a cyclist
Hard Specimen Book Available for Teachers who adopt this cycling against or along the wind. The approach to
book as Text book and Recommend as Text Book to Students solving the problems still remains the same.
Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
whose students have purchased book. EXAMPLE 2.19
A boat is rowed downstream at 15 km/hr and upstream at
8 km/hr. Find the speed of the stream.
2.2 Boats and Streams

Sol :
In this section we will discuss numerical problems related
to boat and stream when they are rowing/sailing along the Click : www.nodia.study/lema/bm119
direction of stream of opposite to it by using the concept
of speed, distance and time. In class X we have studied
speed, distance and time which are related as
EXAMPLE 2.20
Distance = Speed # Time
A boat running downstream covers 48 km in 4 hours,
Let us discuss some useful terms and result related
while for covering the same distance upstream it take 6
to the motion of boat.
Chap 2 Numerical Problems Page 19

hours. What is the speed of the boat in still water? EXAMPLE 2.25
A man can row at 10 km/hr in still water. If the river is


Sol :
running at 2 km/hr, it takes him 75 minutes to row to a
place and back. How far is the place?
Click : www.nodia.study/lema/bm120

Sol :

EXAMPLE 2.21
Click : www.nodia.study/lema/bm125
The speed of a boat when travelling downstream is
42 km/h, whereas when travelling upstream it is 34 km/h,
what is the speed of the boat in still water and the speed EXAMPLE 2.26
of the stream? A steamer goes downstream from one port to another in 4
hours. It covers the same distance upstream in 5 hours. If


Sol :
the speed of the stream is 4 km/hr, then find the distance
between the two ports.
Click : www.nodia.study/lema/bm121

Sol :

EXAMPLE 2.22
Click : www.nodia.study/lema/bm126
A boat covers a distance of 60 km in 5 hours running
downstream. While returning, it covers the same distance
in 7 12 hours. What is the speed of the stream? EXAMPLE 2.27
A boatman rows to a place 9 km distant and back in 4


Sol :
hours. He finds that he can row 12 km with the stream in
the same time as 4 km against the stream. Find the speed
Click : www.nodia.study/lema/bm122 of the stream.


Sol :

EXAMPLE 2.23
A boatman goes 8 km against the current of stream in 2
Click : www.nodia.study/lema/bm127
hour and goes 4 km along the current in 20 minutes. How
long will he take to go 4 km in still water?
EXAMPLE 2.28


Sol :
The speed of a motor boat in still water to that of the
current of water is as 35 : 5. The boat goes along with the
Click : www.nodia.study/lema/bm123 current in 5 hours 10 minutes. Find the time in which it
will come back.


Sol :
EXAMPLE 2.24
A boat running upstream takes 8 hours 30 minute to cover
a certain distance, while it takes 4 hours to cover the same
Click : www.nodia.study/lema/bm128
distance running downstream. What is the ratio between
the speed of the boat and the speed of water current
respectively? EXAMPLE 2.29
A man can row by 6 km/hr in still water. It takes him


Sol :
twice as long to row upstream as to row downstream the
river. Find the speed of stream.
Click : www.nodia.study/lema/bm124

Sol :
Page 20 Numerical Problems Chap 2

Click : www.nodia.study/lema/bm129

Sol :

Click : www.nodia.study/lema/bm134
EXAMPLE 2.30
A boat takes half time in moving a certain distance
downstream than upstream. What is the ratio between
EXAMPLE 2.35
speed of boat in still water and speed of current?
A motor boat whose speed is 18 km/hr in still water


Sol : takes 2 hour more to go 48 km upstream than to return
downstream to the same spot. Find the speed of the

Click : www.nodia.study/lema/bm130 stream.

Sol :

EXAMPLE 2.31 Click : www.nodia.study/lema/bm135

A man can row 30 km upstream and 44 km downstream in
10 hours. In 13 hours, he can row 40 km upstream and 55
km downstream. Determine the speed of the man in still
water and the speed of the current.


Sol :

Click : www.nodia.study/lema/bm131

EXAMPLE 2.32
Ritu can row downstream 20 km in 2 hours, and upstream E X ERCISE 2. 2
4 km in 2 hours. Find her speed of rowing in still water
and the speed of the current. 1. In a river, Mahesh takes 3 hours in rowing 3 km


Sol : upstream or 15 km downstream. What is the speed
of the current?
Ans : 2 km/hr
Click : www.nodia.study/lema/bm132
2. A boat goes 2.4 km downstream in 10 hours. It takes
2 hours more to cover the same distance against the
EXAMPLE 2.33
stream. What is the speed of the boat in still water?
A boat goes 16 km upstream and 24 km downstream in 6
Ans : 2.2 km/hr
hours. It can go 12 km upstream and 36 km downstream
in the same time. Fine the speed of the boat in still water
and the speed of the stream. 3. A boat goes 6 km in an hour in still water. It takes
thrice as much time in covering the same distance


Sol :
against the current. Find the speed of the current.
Ans : 4 km/hr
Click : www.nodia.study/lema/bm133
4. Raju can row 7 12 km/hr in still water. If in a river
running at 1.5 km an hour, it takes him 50 minutes
EXAMPLE 2.34 to row to a place and back, how far off is the place?
The speed of a boat in still water is 15 km/hr. It can go Ans : 3 km
15 km upstream and return down stream to the original
point in 2 hrs 15 minutes. Find the speed of the stream. 5. Jethalal can row three-quarters of a kilometre against
Chap 2 Numerical Problems Page 21

the stream in 11 14 minutes and return in 7 12 minutes. the time taken by the pipe to empty the full tank is
Find the speed of the man in still water. y hours.
Ans : 5 km/hr 6. If a pipe fills 1x part of a tank in 1 hour, then the
time taken by the pipe to fill the tank completely is
6. Ambar can row 7 12 kms an hour in still water and he x hours.
finds that it takes him twice as long to row down the 7. Two pipes can fill a tank in x and y hours respectively.
river. Find the rate of the stream. If both the pipes are opened simultaneously, then
Ans : 2.5 km/hr time taken by both the pipes to fill the tank is xxy +y
hours.
7. A boat covers 32 km upstream and 36 km downstream
8. If two pipes A and B together can fill a tank in x
in 7 hours. Also, it covers 40 km upstream and 48 km
hours and the pipe A alone can fill the tank in y
downstream in 9 hours. Find the speed of the boat in
hours, then time taken by pipe B alone to fill the
still water and that of the stream.
tank is y xy- x hours.
Ans : 10 km/hr, 2 km/hr
9 If a pipe A can fill a tank in x hours and a pipe B
8. A boat goes 8 km upstream and then returns. Total can empty the full tank in y hours (where y > x ),
-x
time taken is 4 hours 16 minutes. If the velocity of then net part filled in 1 hour is y xy .
current is 1 km/hr , find the actual velocity of the 10. If a pipe A can fill a tank in x hours and a pipe B
boat. can empty the full tank in y hours (where x > y ),
-y
Ans : 4 km/hr then net part emptied in 1 hour xxy
11. Three pipes A, B and C can fill a tank in x, y and
9. The speed of a boat in still water is 11 km/hr. It can z hours respectively. If all the three pipes are opened
go 12 km upstream and return downstream to the simultaneously, then time taken by all the pipes to
original point in 2 hours 45 minutes. Find the speed fill it is xy +xyz
yz + zx hours.
of the stream. 12. If two pipes are filing a tank at the rate of x hours
Ans : 5 km/hr and y hours respectively and a third pipe is emptying
it at the rate of z hours, then in one hour the part of
10. Kritika can row her boat a speed of 5 km/hr in still
the tank filled is x1 + y1 − z1 .
water. If it takes her 1 hour more to row the boat 5.25
Time taken to fill the tank is yz +xyz
zx − xy
km. upstream then to return downstream, find the
Problems on pipes and cisterns are similar to
speed of the stream.
problems on time and work. In pipes and cistern problems,
Ans : 2 km/hr
the amount of work done is the part of the tank of filled or
emptied. And, the time taken to do a piece of work is the
time take to fill or empty a tank completely or to a desired
level. There is only one difference between the problems
2.3 Pipes and cisterns on regular work and those in pipes and cisterns. In pipes
Pipe is a hollow cylindrical tube, usually made of metal or and cisterns, a filling pipe or tap does positive work and
plastic, through which a liquid or gas can flow. Cistern is an emptying pipe or a leak does negative work.
is an artificial reservoir, tank or a container which is used
for storing liquids such as water, chemicals, petroleum
EXAMPLE 2.36
products etc.
Two pipe can fill a small tank in 24 minutes and 30 minutes
Let us discuss some useful terms and result related
respectively. If both the pipes are opened simultaneously
to the pipes and cisterns.
in the empty tank, how much time will be taken by them
1. Inlet: A pipe which is connected to fill a tank is
to fill it?
known as an inlet.
2. Outlet: A pipe which is connected to empty a tank is

Sol :
known as an outlet.
3. If a pipe fills a tank in x hours, then part filled in 1
hour is 1x .
Click : www.nodia.study/lema/bm136
4. If a pipe empties a full tank in y hours, then part
emptied in 1 hour is y1 .
5. If a pipe empties y1 part of a tank in 1 hour, then
Page 22 Numerical Problems Chap 2

EXAMPLE 2.37 EXAMPLE 2.42

Two small diameter pipes can fill a large tank in 20 hour A pipe can fill a large tank in 10 hours and another pipe
and 30 hours respectively. If both the pipes are opened can empty in 15 hours. If both the pipes are opened in
simultaneously, then find the time that the tank will be an empty tank, find then the time taken to fill the tank
filled. completely.


Sol :

Sol :

Click : www.nodia.study/lema/bm137 Click : www.nodia.study/lema/bm142

EXAMPLE 2.38 EXAMPLE 2.43

If a pipe can fill a large tank in 4 hours and another pipe If a pipe can fill a large tank in 7 hours and another pipe
fills the same tank in 12 hours, then how long will it take can empty the full tank in 13 hours, If both the pipes are
if both the pipes are opened together? opened in the empty tank, then how long will it take to


Sol : fill the tank?


Sol :

Click : www.nodia.study/lema/bm138
Click : www.nodia.study/lema/bm143
EXAMPLE 2.39
Three different diameter pipes individually can fill a EXAMPLE 2.44
cistern in 5, 6 and 7 hours respectively. If all the three A large pipe can fill a tank in 4 hours but there is a leakage
pipes are opened together, then how much time is required also, due to which it takes 4.5 hours for the tank to be
to fill the cistern. filled. How much time will the leakage take in emptying


Sol : the tank, if the tank is filled initially?


Sol :

Click : www.nodia.study/lema/bm139
Click : www.nodia.study/lema/bm144
EXAMPLE 2.40
A small tank can be filled by a pipe in 12 minutes. Another EXAMPLE 2.45
pipe can empty the tank in 18 minutes. If both pipes are A pipe fills a tank in 2 hours and another pipe fills the
open, how long will it take to fill or empty the tank? same tank in 4 hours. But a third pipe empties the full


Sol : tank in 6 hours. If all of them are opened together, how
much time will it take to fill the tank?

Click : www.nodia.study/lema/bm140


Sol :

Click : www.nodia.study/lema/bm145
EXAMPLE 2.41
A pipe can fill large tank in 15 hours. Due to a leak in
the bottom, it is filled in 20 hours. If the tank if full, how EXAMPLE 2.46
much time will the leak take to empty it? Two pipes can fill a tank individually in 1 hour and 75


Sol : minutes respectively. There is also an outlet pipe which
empty the tank. If all the three pipes are opened together,
the tank is full in 50 minutes. How much time will be
Click : www.nodia.study/lema/bm141 taken by C to empty the full tank?
Chap 2 Numerical Problems Page 23

Sol : respectively and a third pipe can empty it in 4 hours. If

the pipes be opened in order at 10 AM, 11 AM and 12

Click : www.nodia.study/lema/bm146
AM respectively at what time the tank will be emptied.


Sol :

EXAMPLE 2.47 Click : www.nodia.study/lema/bm151

A pump can fill a tank with water in 4 hours. Because of
a leak in the tank, it takes 4 23 hours to fill the tank. How
much time will be taken leak to empty the tank? EXAMPLE 2.52


Sol : A pipe can fill a cistern in 6 minutes and another pipe can
fill that cistern in 7 minutes. Both the pipes are opened

Click : www.nodia.study/lema/bm147
alternatively for 1 minute each. In what time will they fill
the cistern?


Sol :

EXAMPLE 2.48
In 1 minute 74 of a bucket is filled. Find the time in which Click : www.nodia.study/lema/bm152
the rest of the bucket can be filled.


Sol :
EXAMPLE 2.53

Click : www.nodia.study/lema/bm148
Nine taps of same capacity can fill a water tank completely
in 20 minutes. How many taps of the same capacity are
required to fill up the same water tank in 15 minute?


Sol :
EXAMPLE 2.49
Two pipes A and B can fill a small tank in 24 minutes
and 32 minutes respectively. If both the pipes are opened Click : www.nodia.study/lema/bm153
together, after how much time after B should be closed so
that the tank is full in 18 minutes?


Sol : EXAMPLE 2.54
Three pipes A, B, C can fill a tank in 12 hours. After

Click : www.nodia.study/lema/bm149
working at it together for 4 hours, C is closed, now A
and B can fill the remaining part in 14 hours. Find the
number of hours taken by C alone to fill the tank.


Sol :
EXAMPLE 2.50
Two pipes can fill a cistern in 14 hours and 16 hours
respectively. The pipes are opened simultaneously and it Click : www.nodia.study/lema/bm154
is found that due to leakage in the bottom it took 32
minutes more to fill the cistern. When the cistern is full,
in what time will the leak empty it? EXAMPLE 2.55


Sol : A tap can fill a tank in 6 hours. After half the tank is
filled, three more similar taps are opened. What is the

Click : www.nodia.study/lema/bm150
total time taken to fill the tank completely?


Sol :

EXAMPLE 2.51 Click : www.nodia.study/lema/bm155

Two pipes can fill a tank in 15 hours and 12 hours
Page 24 Numerical Problems Chap 2

EXAMPLE 2.56 cistern is full in 20 minutes. How long will the waste
A tank is three-fourths full. A pipe can fill the tank in 12 pipe take to empty the full cistern?
minutes. Another pipe can empty it in 8 minute. If both Ans : 10 minutes
pipes are open, how long will it take to empty the tank?
6. A cistern can be filled by two pipes filling separately


Sol :
in 12 and 16 minutes respectively. Both the pipe are
opened together for a certain time but being clogged,
Click : www.nodia.study/lema/bm156 only 78 of the full quantity of water flows through
the former and only 56 through the later pipe. The
obstructions, however, being suddenly removed, the
cistern is filled in 3 minutes from the moment. How
EXAMPLE 2.57
long was it before the full flow began?
A tap can fill a tank in 20 minutes and another outlet
Ans : after 4 12 minute
pipe can empty it in 12 minutes. If the tank is already
two-fifths full and both the taps are opened together, will 7. A cistern has three pipes A, B and C . A and B can
the tank be filled or emptied? how long will it take before fill it in 3 hours and 4 hours respectively while C
the tank is either filled completely or emptied completely, can empty the completely filled cistern in 1 hour. If
as the case may be ? the pipes are opened in order at 3 P.M., 4 P.M. and


Sol : 5 P.M. respectively, at what time will the cistern be
empty ?
Ans : 7 : 12 PM
Click : www.nodia.study/lema/bm157
8. A large tanker can be filled by two pipes A and B in
60 minutes and 40 minutes respectively. How many
minutes will it take to fill the tanker from empty state
if B is used for half the time and A and B fill it
together for the other half ?
E X ERCISE 2.3 Ans : 30 minutes

9. A pipe can empty a tank in 40 minutes. A second pipe

1. A pipe can fill a tank in 3 minutes and another pipe with diameter twice as much as that of the first is also
can fill it in 4 minutes. How long would it take both attached with the tank to empty it. How much time
pipes, working together, to fill it? will the two pipes together take to empty the tank ?
Ans : 127 minutes Ans : 8 minutes
2. A tap can fill a cistern in 8 hours and another tap can 10. A tap can fill a tank in 40 minutes and another outlet
empty it in 16 hours. Find the time taken to fill the pipe can empty it in 24 minutes. If the tank is already
tank, if both the taps are open. two-fifths full and both the taps are opened together,
Ans : 16 hours will the tank be filled or emptied? How long will it
take before the tank is either filled completely or
3. A pipe can fill a tank in 12 hours. Due to leak in the
emptied completely, as the case may be ?
bottom, it is filled in 16 hours. If the tank is full, how
Ans : Empty in 24 minutes
long will it take to empty from the leak.
Ans : 48 hours

4. Pipes A and B can fill a tank in 6 hours and 9 hours

respectively and pipe C can empty it in 12 hours. If 2.4 Races and Games
all the pipes are opened together in the empty tank,
in how much time will it be full ? 2.4.1 Race
Ans : 5 17 hours
A race is a competition in which two or more the
5. A cistern has two taps which fill it in 12 minutes and competitors trying to cover a given distance in the least
15 minutes respectively. There is also a waste pipe in time. Since Races and Games is a sub-topic of Time, Speed
the cistern. When all the three are opened, the empty and Distance, all the formulas of time, speed and distance
Chap 2 Numerical Problems Page 25

are applicable to Races and Games questions. their mathematics meaning related to game :
Let us discuss some useful terms and result related 1. Game of 100 : A game of 100, means that the person
to the race. among the contestants who scores 100 points first is
1. Race course : The places like grounds, roads, rivers, the winner.
lakes, etc., where races take place are called the race 2. A beats B by 20 points : A score 100 point and B
course. score 80 point.
2. Starting point : The point from where the race starts 3. In a game of 100 A can give B 20 points : While
is known as the starting point. A need to score 100 point, B need to score only
3. Winning post : The point at which the race ends is (100 − 20) = 80 points.
called the goal or winning post.
4. Dead Heat : If in a race all the participants reach the
goal at the same time, the race is called dead heat. Applied Mathematics
Therefore, dead heat is that type of race which ends
CBSE Class XI and XII Commerce
in a draw, i.e., no one is winner or loser.
Let us examine some of the general statement and A Text Book by NODIA Press
their mathematics meaning related to race : Based on New Syllabus Released By CBSE
1. A gives B a start of x meters : This statement No Missing Topic No Extra Topic
implies that, while A starts the race from starting
point, whereas, B starts 10 meters ahead of A. To

For Teachers
cover a race of 100 meters in this case, A will have
to cover 100 meters while B will have to cover only
(100 - x) . Digital Specimen copy available for evaluation
2. A give B a start of t minutes: This statement implies Whatsapp at 94140 63210
that A will start t minutes after B starts from the Hard Specimen Book Available for Teachers who adopt this
starting point. book as Text book and Recommend as Text Book to Students
3. A beats B by x m : This statement implies that in Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
the same time, while A reached the winning point,
whose students have purchased book.
whereas, B is behind A by x m. To cover a race of
100 meters in this case, A has covered 100 meters
while B has covered only (100 - x) .
4. A beats B by t second : This statement implies that EXAMPLE 2.58
in the same time, while A finished the race t second In 4 km race, Abhas beats Lekh by 28 meters or 7 seconds.
before B finishes. Determine Abhas’s time over the course.
5. A can give B a start of t minutes: This statement


Sol :
implies that A will start t minutes after B starts
from the starting point. Both A and B will reach the
finishing point at the same time. Click : www.nodia.study/lema/bm158
6. A gives B x meters and t minutes: This statement
implies that A and B start from the starting point at
the same instant, but while A reaches the finishing
EXAMPLE 2.59
point, B is behind by x meters, and, B takes t
minutes compared to A to complete the race. So, B In, a 500 m race, Amar beats Barun by 35 m or 7 seconds.
covers remaining x meters in extra t minutes. This Find Amar’s time over the course.
gives the speed of B as xt .

Sol :

2.4.2 Games
A game is structured form of play. The game may be Click : www.nodia.study/lema/bm159
played by two or more players or by two or more teams.
Winner of any game is usually based on points, goals or
run scored by a player or team. EXAMPLE 2.60
Let us examine some of the general statement and In a 500 metre, Sophia beats Anvi by 20 metres or 4
Page 26 Numerical Problems Chap 2

seconds. Find Sophia’s time over the course. EXAMPLE 2.65

In a race of 100 m, Adesh beats Bharat by 10 m and


Sol :
Chandra by 13 m. Determine the distance by which
Bharat will beat Chandra in a race of 180 m.
Click : www.nodia.study/lema/bm160

Sol :

EXAMPLE 2.61
Click : www.nodia.study/lema/bm165
Abhas can run 1 km in 3 minutes 10 seconds and Sanket
can cover the same distance in 3 minutes 20 seconds. By
what distance can Abhas best Sanket? EXAMPLE 2.66
Lekhraj runs 4 times as fast as Gautam. If Lekhraj gives


Sol :
Gautam a start of 60 m, how far must be the winning post
on the tracks so that Lekhraj and Gautam reach there at
Click : www.nodia.study/lema/bm161 the same time?


Sol :

EXAMPLE 2.62
Aachrya runs 1 34 times as fast as Nachiket. If Aachrya
Click : www.nodia.study/lema/bm166
gives Nachiket a start of 84 m, how far the winning post
be so that Aachrya and Nachiket might reach it at the
same time? EXAMPLE 2.67
In a 500 m race, the ratio of the speeds of Adesh and


Sol :
Ekbal is 3 : 4. Adesh has a start of 140 m. Then, by how
many metres Adesh wins.
Click : www.nodia.study/lema/bm162

Sol :

EXAMPLE 2.63
Click : www.nodia.study/lema/bm167
In a 500 m race, Pranit reaches the finishing point in 28
seconds and Samarth reaches in 35 seconds. By how much
distance does Pranit beat Samarth? EXAMPLE 2.68
In a kilometre race, Amar beats Akbar by 30 seconds


Sol :
and Akbar beats Anthony by 15 seconds. If Amar beats
Anthony by 180 m, then find the time taken by Amar to
Click : www.nodia.study/lema/bm163 run 1 kilometre.


Sol :

EXAMPLE 2.64
Dev and Tezas take part in 100 m race. Dev runs at a
Click : www.nodia.study/lema/bm168
speed of 5 km/h. Dev gives Tezas a start of 8 m and still
beats him by 8 seconds. Determine the speed of Dev.
EXAMPLE 2.69


Sol :
In a km race, Ishwar, Tejas and Virat, each running a
uniform speed get the gold, silver and bronze medals
Click : www.nodia.study/lema/bm164 respectively. If Ishwar beats Tejas by 100 m and Tejas
beats Virat by 100 m, then by how much meters does
Ishwar beat Virat?


Sol :
Chap 2 Numerical Problems Page 27

Click : www.nodia.study/lema/bm169 20 points. How many points can Bhagya give to Chagan
in a game of 90 points?


Sol :
EXAMPLE 2.70
In a mile race, Aakarsh can be given a start of 128 m by
Girish. If Girish can give Rachit a start of 4 m in a 100
Click : www.nodia.study/lema/bm174
m dash, then who out of Aakarsh and Rachit will win a
race of one and a half miles, and what will be the final
lead given by the winner to the loser? One mile is 1600 m. EXAMPLE 2.75
A can gives B 40 points, A can give C 64 points, and


Sol :
B can give C 30 points. How many points to make the
game?
Click : www.nodia.study/lema/bm170

Sol :

EXAMPLE 2.71
Click : www.nodia.study/lema/bm175
In a kilometre race, if Gaurang gives Hemang, a start of 40
metres, then Hemang wins by 19 seconds but if Gaurang
gives Hemang, a start of 30 seconds then Hemang wins by EXAMPLE 2.76
40 metres. Find the time taken by each to run a kilometre. At a game of billiard, A can give B 12 points in a game of
40 and A can give C 10 Points in game of 50. How many


Sol :
points can C and B in a game of 80?


Sol :
Click : www.nodia.study/lema/bm171
Click : www.nodia.study/lema/bm176
EXAMPLE 2.72
In a game of 100 points, Darpan can give 20 points to
Gagan and 28 points to Parth. Find how many points can
Gagan give Parth?


Sol : E X ERCISE 2. 4
Click : www.nodia.study/lema/bm172 1. In a kilometer race, Ram beats Bharat by 40 metres
or by 5 seconds. What is the time taken by Ram over
the course.
Ans : 2 minute
EXAMPLE 2.73
In a game, Pranit can give 20 points to Reyansh and 32 2. In a 300 m race Amar beats Bhavya by 22.5 m or 6
points to Samrat. Reyansh can give 15 points to Samrat. seconds. Find Bhavya’s time over the course.
How many points make the game? Ans : 80 seconds


Sol :
3. In a 100 m race, Seeta covers the whole distance in 36
seconds and Teena in 45 seconds. In this race, by how
Click : www.nodia.study/lema/bm173 many metres Seeta beats Teena.
Ans : 20 m

4. Akbar runs 1 23 times as fast as Roshan. If Akbar gives

EXAMPLE 2.74 Roshan a start of 80 m. How far must the winning
In a game of billiards of 60 points, Aarav can give Bhagya post be so that Akbar and Roshan might reach it at
15 points and in the same game, Aarav can give Chagan the same time?
Page 28 Numerical Problems Chap 2

Ans : 200 m book as Text book and Recommend as Text Book to Students
Word file of All Questions available also for Teachers
5. In a 800 m race, Amar beats Akbar by 74 m and in a Hard Specimen book will be given to those teachers only
600 m race, Akbar beats Anthony by 50 m. By how whose students have purchased book.
many meters will Amar beat Anthony in a race of
500 m?
Ans : 84.06 m

6. In a 800 metre race, Geeta defeated Lata by 15

seconds. If Geeta’s speed was 8 km/hr, then find the
speed of Lata.
Ans : 7 17
25 km/hr

7. Dheeraj and Fateh can cover a 200 m race in 22

seconds and 25 seconds respectively. When Dheeraj
finished the race then Fateh is at what distance from
the finishing line?
Ans : 24 m

8. In a game of Snooker, Bhupesh can give Deepak 16

Points in 80 and Bhupesh can give Narendra 15 point
in 90. How many points can Narendra give Deepak in
a game of 50?
Ans : 2 point

9. In a game, Badal can give 20 points to Chandu, Badal

can give 32 points to Deepak and Chandu can give 15
points to Deepak. How many points make the game?
Ans : 100

10. In a game of billiards, Rajesh can give Shailesh 10

points in 60 and he can give Tejendra 15 in 60. How
many points can Shalelsh give Tejendra in a game of
90?
Ans : 200

******

Applied Mathematics
CBSE Class XI and XII Commerce
A Text Book by NODIA Press
Based on New Syllabus Released By CBSE

No Missing Topic No Extra Topic

For Teachers
Digital Specimen copy available for evaluation
Whatsapp at 94140 63210
Hard Specimen Book Available for Teachers who adopt this
Chap 3 Numerical Inequalities Page 29

CHAPTER 3

Numerical Inequalities

3.1 Introduction in one variable because x is the only one variable

The word inequality means a mathematical expression in present in the expression.
which the sides are not equal to each other. Basically, an Similarly, 2x + 3y $ 6 is a linear inequality in two
inequality compares any two values and shows that one variables because there are two variables x and y are
value is less than, greater than, or equal to the value on the present in the expression.
other side of the equation. One property of real numbers

Note
is that they have order. This order allows us to compare 4x2 + 2x + 5 < 0 is not an example of linear inequality in
numbers and decide if they are equal to each other or one one variable, because the exponent of x is 2 in the first
is greater or less than the other. term. It is a quadratic inequality.
To show the inequality of numbers we use a symbolic
notation:
(i) Less than : The < sign stands for “less than.” So, Applied Mathematics
4 < 10 is true. Further, x < 10 means x can be any CBSE Class XI and XII Commerce
number less than 10. A Text Book by NODIA Press
(ii) Greater than : The > sign stands for “greater than”. Based on New Syllabus Released By CBSE
So, 11 > 10 is true. Further, x > 11 means x can be No Missing Topic No Extra Topic
any number greater than 11.
(iii) Or equal to : Sometimes we want to show an inequality
that is not strictly greater or less than. We use the For Teachers
same symbol, but with an underline, to show that Digital Specimen copy available for evaluation
the number might also be equal to the value we are Whatsapp at 94140 63210
comparing to. So 4 $ 4 is true, and so is 5 $ 4. So, Hard Specimen Book Available for Teachers who adopt this book
x # 3 means that x can be any number less than or as Text book and Recommend as Text Book to Students
equal to 3. Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
whose students have purchased book.

3.2 Types of inequalities

1. Numerical Inequalities: If only numbers are involved
in the expression, then it is a numerical inequality. 3.3 Properties of Inequalities
Example: 10 > 8 , 5 < 7 .
If a, b, c are any real numbers, then
2. Literal Inequalities: x < 2 , y > 5 , z < 10 are the
1. a > b or a = b or a < b . [Law of Trichotomy]
examples for literal inequalities.
2. If a > b and b > c , then a > c . [Law of Trichotomy]
3. Double Inequalities: 5 < 7 < 9 read as 7 less than 9
3. If a < b and b < c , then a < c .
and greater than 5 is an example of double inequality.
4. The sign of an inequality remains the same on adding
4. Strict inequality: Mathematical expressions involve
the same real number to each of its side.
only ‘<’ or ‘>’ are called strict inequalities.
Thus, if a, b and c are any real numbers, then
Example: 2x + 3 < 6 , 2x + 3y > 6 .
5. Slack inequality: Mathematical expressions involve a > b
only ‘#’ or ‘$’ are called slack inequalities. a + c > b + c
Example: 2x + 3 # 6 , 2x + 3y $ 6 . a < b
In the above examples, 2x + 3 < 6 is a linear inequality
Page 30 Numerical Inequalities Chap 3

a + c < b + c
5. The sign of an inequality remains the same on
subtracting the same real number from each of its
side.
Thus, if a, b and c are any real numbers, then
a > b
a - c > b − c
a < b
a - c < b − c
6. Sing of an inequality does not change when both sides EXAMPLE 3.1
of the inequality are multiplied or divided by the same If 7 > 5 , then − 7 > − 5 . Is it true?
positive real number.


Sol :
Thus, if p > 0 , then a < b
pa < pb and a < b .
p p Click : www.nodia.study/lema/cm101
and if p > 0 , then a > b
pa > pb and a > b .
p p
EXAMPLE 3.2
7. Sign of an inequality is reversed when both sides of
the inequality are multiplied or divided by the same If 9 < 13 then 1 > 1 . Is it true?
9 13
negative real number.

Sol :
Thus, if p < 0 , then a < b
pa > pb and a > b
p p Click : www.nodia.study/lema/cm102
and if p < 0 , then a > b

pa < pb and a < b EXAMPLE 3.3

p p
8. If a > b > 0 , then 1 < 1 . Is there any real number a for which a < 0 ?
a b
9. If a, b are positive real numbers such that a < b and if

Sol :
n is any positive rational number, then
(ii) a−n > b−n .
(i) an < bn .
1 1
Click : www.nodia.study/lema/cm103
(iii) a < b .
n n

10. For any real number a , - a # a # a .

EXAMPLE 3.4
Remarks:
1 4
Does > 7 hold?
1. Equal numbers may be added to (or subtracted from) 5 − 223
both sides of an inequality.


Sol :
2. Both sides of an inequality can be multiplied (or
divided) by the same positive number. But when both
sides are multiplied or divided by a negative number, Click : www.nodia.study/lema/cm104
then the sign of inequality is reversed.
3. If both the sides of an inequality are either positive or
negative, then on taking their reciprocal, the sign of EXAMPLE 3.5
inequality reverses. Using the inequality 17 > 8 , show that:
(i) 22 > 13 (ii) − 3 > − 12


Sol :

Click : www.nodia.study/lema/cm105
Chap 3 Numerical Inequalities Page 31

EXAMPLE 3.6 EXAMPLE 3.12

Using the inequality 18 > 8 , show that: For any real a, b, c, d, e :
(i) 9 > 4 (ii) − 9 < − 4 (i) If a > b # c = d < e , then is b < e true?


Sol : (ii) If d # a $ b > c , then is c > a true?


Sol :

Click : www.nodia.study/lema/cm106
Click : www.nodia.study/lema/cm112
EXAMPLE 3.7
Using the inequality 17 > 8 , show that: EXAMPLE 3.13
(i) 7 > 4 (ii) − 7 < − 4 If a > 0 , b < 0 such that a > b . Does a2 > b2 always hold?


Sol :

Sol :

Click : www.nodia.study/lema/cm107 Click : www.nodia.study/lema/cm113

EXAMPLE 3.8 EXAMPLE 3.14

If 2 < 3 , then show that 29 < 45 . If α < β then show that α − γ < β − γ where α, β, γ d R
4 4


Sol :

Sol :

Click : www.nodia.study/lema/cm108 Click : www.nodia.study/lema/cm114

EXAMPLE 3.9 EXAMPLE 3.15

Using the equality 7 2 4 prove that. If a > b, c > 0 then show that ac > bc for a, b, c d R
(i) 30 2 21 (ii) - 44 1 - 32


Sol :


Sol :

Click : www.nodia.study/lema/cm115
Click : www.nodia.study/lema/cm109
EXAMPLE 3.16
EXAMPLE 3.10 If a < b, c < 0 then show that ac > bc for a, b, c d R .
Using equality 15 2 21 show that


Sol :
(i) 28 1 52 (ii) - 40 2 - 70


Sol :
Click : www.nodia.study/lema/cm116
Click : www.nodia.study/lema/cm110
EXAMPLE 3.17

EXAMPLE 3.11 If a # b, b # c and c # a , then a = b = c

Using inequality 47 2 19 show that

Sol :
(i) 6 2 2 (ii) - 20 1 - 6


Sol : Click : www.nodia.study/lema/cm117

Click : www.nodia.study/lema/cm111 EXAMPLE 3.18

If p, q, r, s are positive real numbers such that p > q and
r > s then show that pr > qs .
Page 32 Numerical Inequalities Chap 3

Sol : Click : www.nodia.study/lema/cm124

Click : www.nodia.study/lema/cm118 EXAMPLE 3.25

If p > q and r < s then p − r > q − s 6p, q, r, s d R
EXAMPLE 3.19

Sol :

If a < b and c < 0 , then show that a > b .

Sol :
c c
Click : www.nodia.study/lema/cm125

Click : www.nodia.study/lema/cm119 EXAMPLE 3.26

p q
If p > q > 0 and 0 < r < s , then > 6p, q, r, s d R .
r s


Sol :
EXAMPLE 3.20
If m, n are positive real numbers, then show that m # n
if m2 # n2 . Click : www.nodia.study/lema/cm126


Sol :

EXAMPLE 3.27
Click : www.nodia.study/lema/cm120 If m < n then show that 1 > 1 for m > 0 , n > 0 ,
m n


Sol :

EXAMPLE 3.21
If b > a > 0 and c > 0 , then show that a + c > a .
Click : www.nodia.study/lema/cm127
b+c b


Sol :
EXAMPLE 3.28
Click : www.nodia.study/lema/cm121 If m < n then show that 1 > 1 for m < 0 , n < 0 ,
m n


Sol :

EXAMPLE 3.22
If m > n > 0 , then prove that mn lies between m and n . Click : www.nodia.study/lema/cm128


Sol :

EXAMPLE 3.29
Click : www.nodia.study/lema/cm122 If m < n then show that 1 < 1 for m < 0 , n > 0
m n


Sol :

EXAMPLE 3.23
If a, b are rationales such that a < b , then prove that Click : www.nodia.study/lema/cm129
a < a + b − a < b , there n is a natural number > 1.
n


Sol :

Click : www.nodia.study/lema/cm123

EXAMPLE 3.24
If a d R , show that a2 $ 0 .


Sol :
Chap 3 Numerical Inequalities Page 33

E X ERCISE 3.1 Solution of an inequality of single variable, is the value of

that variable, for which it is justified. Solving an inequality
1. Using the inequality 23 > 9 , show that: is the process of finding all the possible solutions of an
(i) 34 > 20 (ii) 10 > − 4 inequality.
Ans : Proof Solution Set :
A set of all the possible solutions of an inequalilty, is called
the solution set.
2. Using the inequality 24 > 8 , show that:
(i) 12 > 4 (ii) − 6 < − 2 3.4.2 Interval
Ans : Proof
If variable x can accept only those values which are
elements of set X , then set X is known as domain of x
. If the domain of x is the set then x d X . In most of
3. Using the inequality 16 > 7 , show that: applications the domain of our variables will be interval of
(i) 8 > 5 (ii) − 8 < − 5 numbers as following:
Ans : Proof
Open Interval:
If variable x is such that its value lies between two fixed
numbers a and b then "x | a 1 x 1 b , is called the open
4. Using the inequality 4 < 5 , show that 49 81
4 < 4 . interval. It is symbolically represented as @a, b 6 or ^a, bh .
Ans : Proof
Both a and b are not included in this.
Semi Open Interval:

5. Using the inequality 4 < 5 , show that 13 < 21 . "x | a # x 1 b , is called semi-open interval. It consists of a
and numbers between a and b but not b . It is represented
Ans : Proof
by 6a, b 6
Similarly, "x | a 1 x # b , is also a semi-open interval. It
consists of all numbers between a & b including b but a is
6. Using the inequality 8 > 5 , show that 30 > 21 . not contained in it. Symbolically it is represented as @a, b@.
Ans : Proof This interval is also know s semi-closed interval.
Closed Interval :
The interval "x | a # x # b , which consists of both a and
7. Using the inequality 9 > 6 , show that − 22 < − 16 .
b and numbers between a & b is called closed Interval. It is
Ans : Proof
represented by 6a, b@.

3.4.3 System of Linear Inequalities in One Variable

We have seen that the solution of an inequality will be the
set of all those values, that satisfies for a real value. So,
the solution of system is the set that has been found on the
intersection of the sets given as the solution of different
inequalities given in the system. Following is the process
used to solve the given set of equations.
1. System of linear inequalities is taken.
3.4 Linear inequalities 2. The solution set of given inequalities is obtained
Inequalities ax + b 1 0 , ax + b 2 0 , ax + b # 0 , ax + b $ 0 when differently and represented on a number line.
a ! 0 , are called Linear inequalities of one variable x . Here 3. With the help of number line the common solution set
a and b are constant quantities. Inequalities ax + by 1 0 is obtained.
, ax + by 2 0 , ax + by # 0 , ax + by $ 0 when a ! 0 , b ! 0 are 4. The common solution set is the solution of the given
called linear inequalities of two variables x and y . system of inequalities.

3.4.1 Solution Of Inequalities

Page 34 Numerical Inequalities Chap 3

EXAMPLE 3.30 Based on New Syllabus Released By CBSE

Solve 24x 1 100 , then No Missing Topic No Extra Topic
(i) x is a natural number.
(ii) x is an integer.


Sol : For Teachers
Digital Specimen copy available for evaluation
Whatsapp at 94140 63210
Click : www.nodia.study/lema/cm130 Hard Specimen Book Available for Teachers who adopt this book
as Text book and Recommend as Text Book to Students
EXAMPLE 3.31 Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
Solve - 12x 2 30 , when whose students have purchased book.
(i) x is a natural number.
(ii) x is an integer.


Sol :

EXAMPLE 3.35
Click : www.nodia.study/lema/cm131 Solve for real x : 4x + 3 1 5x + 7


Sol :
EXAMPLE 3.32
Solve 5x - 3 1 7 , When Click : www.nodia.study/lema/cm135
(i) x is an integer.
(ii) x is a real number.


Sol : EXAMPLE 3.36
Solve for real x : 5x - 3 $ 3x - 5

Click : www.nodia.study/lema/cm132

Sol :

Click : www.nodia.study/lema/cm136
EXAMPLE 3.33
Solve 3x + 8 2 2 , when
(i) x is an integer. EXAMPLE 3.37
(ii) x is a real number. Solve for real x : 3 ^1 − x h 1 2 ^x + 4h


Sol :

Sol :

Click : www.nodia.study/lema/cm133 Click : www.nodia.study/lema/cm137

EXAMPLE 3.34 EXAMPLE 3.38

Solve the inequality 3x + 5 1 x − 7 when Solve for real x : 3x - 7 2 5x - 1
(i) x is a natural number.

Sol :
(ii) x is an integer.
(iii) x is a real number.


Sol :
Click : www.nodia.study/lema/cm138

Click : www.nodia.study/lema/cm134 EXAMPLE 3.39

Solve for real x : 3x − 2 1 2x + 1


Sol :
Applied Mathematics
CBSE Class XI and XII Commerce
Click : www.nodia.study/lema/cm139
A Text Book by NODIA Press
Chap 3 Numerical Inequalities Page 35

EXAMPLE 3.40 EXAMPLE 3.47

Solve for real x : 3 ^x - 1h # 2 ^x - 3h Solve for real x : 37 − ^3x + 5h $ 9x − 8 ^x − 3h


Sol :

Sol :

Click : www.nodia.study/lema/cm140 Click : www.nodia.study/lema/cm147

EXAMPLE 3.41 EXAMPLE 3.48

Solve for real x : 3 ^2 - x h $ 2 ^1 - x h ^5x - 2h ^7x - 3h
Solve for real x : x 1 -


Sol : 4 3 5


Sol :

Click : www.nodia.study/lema/cm141
Click : www.nodia.study/lema/cm148
EXAMPLE 3.42
EXAMPLE 3.49
Solve for real x : x + x + x 1 11
2 3 ^2x - 1h ^3x - 2h ^2 - x h


Sol : Solve for real x : $ -
3 4 5


Sol :

Click : www.nodia.study/lema/cm142
Click : www.nodia.study/lema/cm149
EXAMPLE 3.43
Solve for real x : x 2 x + 1 EXAMPLE 3.50
2 2 ^5x - 2h ^7x - 3h
Solve for real x : x $ -


Sol : 2 3 5


Sol :

Click : www.nodia.study/lema/cm143
Click : www.nodia.study/lema/cm150
EXAMPLE 3.44
3 ^x - 2h 5 ^2 - x h EXAMPLE 3.51
Solve for real x : #
5 3 3 ^x - 2h 5 ^2 - x h


Sol : Solve for real x : $
5 3


Sol :

Click : www.nodia.study/lema/cm144
Click : www.nodia.study/lema/cm151
EXAMPLE 3.45
Solve for real x : 1 b 3x + 4 l $ 1 ^x − 6h EXAMPLE 3.52
2 5 3


Sol : Solve for real x : x + 3 $ 1
x+5


Sol :

Click : www.nodia.study/lema/cm145
Click : www.nodia.study/lema/cm152
EXAMPLE 3.46
Solve for real x : 2 ^2x + 3h − 10 1 6 ^x − 2h EXAMPLE 3.53


Sol :
Solve for real x : 2 ^2x + 3h − 10 # 6 ^x − 2h


Sol :
Click : www.nodia.study/lema/cm146
Page 36 Numerical Inequalities Chap 3

Click : www.nodia.study/lema/cm153 E X ERCISE 3 . 2

1. Solve for real x :
EXAMPLE 3.54
(i) x − 3 > 0 (ii) x + 5 # 0
Solve for real x : 5x - 2 - 7x - 3 2 x x+4 x−2
3 5 4
Ans : (i) (- 3, - 4) , (3, 3) (ii) [- 5, 2]


Sol :

Click : www.nodia.study/lema/cm154 2. Solve for real x :

(i) 2 # 3x - 4 # 5 (ii) 6 #− 3 (2x − 4) < 12
Ans : (i) (2, 3] (ii) (0, 1]
EXAMPLE 3.55
Solve for real x : 4 + 2x $ x − 3
3 2


Sol :
3. Solve for real x : - 3 # 4 - 7x # 18 .
2

Click : www.nodia.study/lema/cm155 Ans : [- 4, 2]

EXAMPLE 3.56 3x - 4
3 ^x − 2h 4. Solve for real x : 2 # 5
12
Solve for real x : 2x + 3 − 2 1
5 5
Ans : : 18 , 18 D
19 29


Sol :

Click : www.nodia.study/lema/cm156 2x − 1
5. Solve for real x : x−1 > 2
Ans : ( 34 , 1) , (1, 3)
EXAMPLE 3.57
Solve for real x : 2x + 3 − 3 2 x − 4 − 2
4 3


Sol : x+3 +x
6. Solve for real x : > 1.
x+2
Click : www.nodia.study/lema/cm157 Ans : (- 5, - 2) , (- 1, 3)

EXAMPLE 3.58
7. Solve the following system of inequations :
Solve for real x : 6x - 1 1 8 3x − 7 > 2 (x − 6) and 6 − x > 11 − 2x
1-x


Sol :
Ans : (5, 3)

Click : www.nodia.study/lema/cm158 8. Solve the following system of inequations :

4x − 9 < x − 11 and x − 5 $ 2x + 7 .
EXAMPLE 3.59 Ans : (- 3, - 12]
Solve for real x : 2 x − 3 + 3 x − 4 $ 4


Sol :
9. Solve the following system of inequations :
2x − 3 + 6 $ 2 + 4x and 2 (2x + 3) − 10 < 6 (x − 2).
Click : www.nodia.study/lema/cm159 4 3
Ans : φ
Chap 3 Numerical Inequalities Page 37

10. Solve the following system of inequations : Click : www.nodia.study/lema/cm162

x $ 1 and 6x < 1 .
2x + 1 4 4x − 1 2
Ans : φ EXAMPLE 3.63
Find all pairs of consecutive even positive integers, both of
which are larger than 5 such that their sum is less than 23.


Sol :

Click : www.nodia.study/lema/cm163

EXAMPLE 3.64
The longest side of a triangle is 3 times the shortest side
and the third side is 2 cm shorter than the longest side.
If the perimeter of triangle is at least 61 cm, find the
minimum length of the shortest side.
3.5 Application of inequalities

Sol :

Linear inequalities with one variable are applied to

solve many problems. These are vastly used in the field Click : www.nodia.study/lema/cm164
of engineering, economics, science etc. Some of these
applications are mentioned in the following examples.
EXAMPLE 3.65
A man wants to cut three length’s from a single piece of
EXAMPLE 3.60 board of length 91 cm. The second length is to be 3 cm
Ravin obtained 70 and 75 marks in first two unit tests. longer than the shortest and the third length is to be twice
Find the minimum marks he should get in the third test as long as the shortest. What are the possible lengths of
to have an average of at least 60 marks. the shortest board if the third piece is to be at least 5 cm


Sol : longer than the second?


Sol :

Click : www.nodia.study/lema/cm160
Click : www.nodia.study/lema/cm165
EXAMPLE 3.61
To receive grade A in a course, one must obtain an average EXAMPLE 3.66
of 90 marks or more in five examination (each of 100 Find all pairs of consecutive even positive integers, both
marks). If Sunita’s marks in first four examinations are of which are greater than 10, such that their sum is less
87, 92, 94 and 95, find minimum marks that Sunita must than 50.
obtain in fifth examination to get grade A in the course.

Sol :


Sol :

Click : www.nodia.study/lema/cm166
Click : www.nodia.study/lema/cm161
EXAMPLE 3.67
EXAMPLE 3.62 In drilling world’s deepest hole, it was found that the
Find the pairs of consecutive odd positive integers both temperature T in degree Celsius, x km below the surface
of which are smaller than 10 such that their sum is more of earth, was given by
than 11. T = 30 + 25 ^x − 3h, 3 1 x 1 15


Sol : At what depth will be temperature be 200cC and 300cC ?


Sol :
Page 38 Numerical Inequalities Chap 3

Click : www.nodia.study/lema/cm167 Ramchandra. In fact, Satish is so slow that in 5 hours

he covered fewer miles than Ramchandra did in 3 hours.
What are the possible values for Satish’s rate of speed?
EXAMPLE 3.68

Sol :
Lavanya plans to spend less than Rs 5000 on an electric
dryer, including the 9% GST and a Rs 640 setup charge.
In what range is the selling price (without GST) of the Click : www.nodia.study/lema/cm172
dryer that she can afford?


Sol :
EXAMPLE 3.73
The water temperature in a certain manufacturing process
Click : www.nodia.study/lema/cm168 must be kept at 143°F. The computer is programmed to
shut down the process if the water temperature is more
than 7° away from what it is supposed to be. For what
EXAMPLE 3.69 temperature readings is the process shut down?
Sanjay owns a piece of land on which he owes Rs 127,600

Sol :
to a bank. He wants to sell the land for enough money
to at least pay off the mortgage. The real estate agent
gets 6% of the selling price, and his city has a Rs 4000 Click : www.nodia.study/lema/cm173
real estate transfer tax paid by the seller. What should
the range of the selling price be for Sanjay to get at least
EXAMPLE 3.74
enough money to pay off his mortgage?
Research at a major university has shown that identical


Sol :
twins generally differ by less than 6 pounds in body weight.
If Lav weighs 127 pounds, then in what range is the weight
Click : www.nodia.study/lema/cm169 of her identical twin brother Kush?


Sol :

EXAMPLE 3.70
Shalvi is shopping for a new car. In addition to the price Click : www.nodia.study/lema/cm174
of the car, there is an 8% GST and a Rs 6880 road tax.
If Shalvi decides that she will spend less than Rs 400,000
total, then what is the price range for the car?

E X ERCISE 3 . 3


Sol :

Click : www.nodia.study/lema/cm170 1. A man wants to cut three lengths from a single piece
of board 95 cm. The second length is to be 3 cm longer
then the shortest, and third length is to be twice as
EXAMPLE 3.71 long as shortest. What are the possible length for the
Shivani made a score of 76 on her midterm exam. For her shortest board if the third piece is to be at least 4 cm
to get a grade B in the course, the average of her midterm longer than the second.
exam and final exam must be between 80 and 89 inclusive. Ans : 7 # x # 23
What possible scores on the final exam would give Shivani
a grade B in the course?


Sol :
2. In the first four papers each of 100 marks Reena got 90,
75, 73 and 85 marks. If she wants to have an average
Click : www.nodia.study/lema/cm171 of grater than or equal to 75 marks and less than 80
marks, find the range of marks she should score in
fifth paper.
EXAMPLE 3.72 Ans : 52 # x 1 77
Satish and Ramchandra both drive parcel delivery trucks
for United Express. Satish averages 20 mph less than
Chap 3 Numerical Inequalities Page 39

3. The marks scored by Anshika in two test were 65 and of the 9% solution, how many litres of 3% solution will
70. Find the minimum marks she should scored in have to be added?
third test to have an average of at least 60 marks. Ans : Hence the required amount to be added is
Ans : 45 more than 230 litres and less than 920 litres.

4. A solution is to be kept between 68c F and 77c F . 10. Lavanya is shopping for a new car. In addition to the
What is the range of the temperature in degree Celsius price of the car, there is an 8% GST and a Rs 13760
(C) if the Celsius/Fahrenheit (F) conversion formula road tax. If Shalvi decides that she will spend less
is given by F = 95 C + 32 ? than Rs 800,000 total, then what is the price range for
Ans : Between 20c F and 25c F . the car?
Ans : Rs 728000

5. A solution of 8% boric acid is to be diluted by adding

a 2% boric acid solution to it. The resulting mixture is

******
to be more that 4% but less than 6% boric acid. If we
have 640 litres of the 8% solution, how many litres of
the 2% solution will have to be added ?
Ans : 2 % boric acid solution must be more than 320
litres but less than 1280 litres.

6. How many litres of water will have to be added to

1125 litres of the 45% solutions of acid so that the
resulting mixture will contain more than 25% but less
than 30% of acid content?
Ans : More than 562.5 litres and less than 900 litres
of water need to be added. Applied Mathematics
CBSE Class XI and XII Commerce
A Text Book by NODIA Press
Based on New Syllabus Released By CBSE
7. IQ of a person is given by the formula IQ = MA # 100
CA No Missing Topic No Extra Topic
where MA is mental age and CA is chronological
age. If 80 # IQ # 140 for a group of 12 years old.
Children, find the range of their mental age. For Teachers
Ans : Minimum MA is 9.6 and maximum is 16.8. Digital Specimen copy available for evaluation
Whatsapp at 94140 63210
Hard Specimen Book Available for Teachers who adopt this book
8. The water acidity in a pool is considered normal when as Text book and Recommend as Text Book to Students
the average pH reading in three daily measurements Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
is between 8.2 and 8.5. If the first two pH readings whose students have purchased book.
are 8.48 and 8.35, find the range of pH value of the
third reading that will result in the acidity level being
normal.
Ans : The third pH value lies between 7.77 and 8.67.

9. A solution of 9% acid is to be diluted by adding 3%

acid solution to it. The resulting mixture is to be more
than. 5% but less than 7% acid. If there is 460 litres
Page 40 Unit 1 Case Study Chap 26

UNIT 1

Case Study Questions

EXAMPLE 26.1
A South Asian pickle, also known as pacchadi, achar, Click : www.nodia.study/lema/zm101
athanu, loncha, oorugai, or avakaai is a pickled food,
native to the Indian subcontinent, made from a variety of
vegetables and fruits, preserved in brine, vinegar, or edible EXAMPLE 26.2
oils along with various Indian spices. Event management is the creation, design, planning and
execution of personal or corporate events such as festivals,
conferences, ceremonies, weddings, formal parties,
concerts, or conventions. Event managers are much like
project managers in that they organise and manage
budgets, resources, and small teams to achieve small goals
necessary in pulling off the main event.

Simran, Varsha and Zara started a event management

business. They agree to receive profit from their business
each in the proportion to their investments. Simran and
Varsha put back into the business their shares of the
profit each year but Zara does not. Initially, investment of
Simran, Varsha and Zara is < 10000, < 20000 and < 60000
Lavanya and Taniya start a pickle making business in respectively. If the profit for the first year is < 18000 and
partnership, their capitals being in the ratio 4 : 3. At the for the second year is < 20000, calculate the amount of
end of 3 months, Lavanya takes out a sum equivalent to money each has in the business during the third year.
1
4 th of his capital and at the end of another 3 months,

Sol :
Taniya puts in a sum equivalent to what Lavanya took
out. If Taniya’s profit at the end of the year is < 20000
more than that of Lavanya, then find the amount of Click : www.nodia.study/lema/zm102
profits of each, profits and losses being divided on the
basis of average investment.


Sol :
Chap 26 Unit 1 Case Study Page 41

EXAMPLE 26.3 Falak, Manu and Oorvi made a self help group and started
Lac jewelry also referred to as lacquer jewelry originated a papad making business. They have invested < 200000,
in West Rajasthan and has since then gained popularity < 180000 and < 120000 respectively in the business. Falak
across India. Lac bangles in particular are considered and Manu receive respectively 12% and 8% of the annual
auspicious for the newly married brides to the extent profits for services, the remaining being divided among
that it has become a ubiquitous accessory for the newly Falak, Manu and Oorvi in proportion to their capitals. At
married. The best bangle craftsmen reside in the heart of the end of the year Falak receives altogether < 6480 more
lac work in Rajasthan – Maniharon ka Rasta, Jaipur. than Manu. Find what each receives.


Sol :

Click : www.nodia.study/lema/zm104

EXAMPLE 26.5
Vehicle Operating Costs (VOC) Vehicle operating costs
are the total costs incurred by road users using vehicles
from the origin zone to the destination zone. Vehicle
Juhi and Hina started a lac bangle business. Juhi puts in operating costs consist of two components, namely fixed
< 60000 more than Hina in the business. Hina has invested costs and variable costs.
her capital for 5 months while Juhi has invested her capital
for 4 months. If the share of Juhi is < 4800 more than that
of Hina out of the total profits of < 52800; find the capital
invested by each.


Sol :

Click : www.nodia.study/lema/zm103

EXAMPLE 26.4
Self-help groups are informal groups of people who come
The function C = 0.00004x + 2 gives the cost in Rs
together to address their common problems. While self-
per km for operating a company car and the function
help might imply a focus on the individual, one important
V = 200000 − 2x gives the value of the car, where x is
characteristic of self-help groups is the idea of mutual
the number of km on the odometer.
support – people helping each other.
(i) A car is replaced if the operating cost is greater than
Rs 4 per km and the value is less than Rs 120,000.
For what values of x is a car replaced?
(ii) If the company replaces any car for which the
operating cost is greater than Rs 4 per km or the
value is less than Rs 120,000, then for what values of
x is a car replaced?


Sol :

Click : www.nodia.study/lema/zm105
Page 42 Unit 1 Case Study Chap 26

EXAMPLE 26.6 of an image. The toner is then fused onto the paper using
Crude oil is a naturally occurring fossil fuel - meaning it heat, pressure, or a combination of both. Copiers can also
comes from the remains of dead organisms. Crude oil is use other technologies, such as inkjet, but xerography is
made up of a mixture of hydrocarbons - hydrogen and standard for office copying.
carbon atoms. It exists in liquid form in underground
reservoirs in the tiny spaces within sedimentary rocks.
The largest share of crude is used for energy carriers that
can be combined into gasoline, jet fuel, diesel, and heating
oils. Heavier products are used to make tar, asphalt,
paraffin wax, and lubricating oils.
The function S = 20 + 0.1x gives the amount of oil
in millions of barrels per day that will be supplied to a
small country and the function D = 30 − 0.5x gives the
demand for oil in millions of barrels per day, where x is
the price of oil in dollars per barrel.

CBSE head quarter in Delhi can rent a copy machine for 5

years from Digital Business Supply for Rs 750 per month
plus 60 paisa per copy. The same copier can be purchased
for Rs 80000, but then it costs only 20 paisa per copy for
supplies and maintenance. The purchased copier has no
value after 5 years.
(i) Write a formula for the 5-year cost under each plan.
(ii) Find the number of copies for which the 5-year costs
would be equal.
(iii) If CBSE makes 120,000 copies in 5 years, which plan
(i) The president worries if the supply is less than 22 is cheaper and by how much?
million barrels per day or if demand is less than 15 (iv) For what range of copies do the two plans differ by
million barrels per day. For what values of x does less than Rs 500?
the president worry?

Sol :
(ii) The country will be in recession if the supply of oil
is greater than 23 million barrels per day and the
demand is less than 14 million barrels per day. For
what values of x will the country be in recession?
Click : www.nodia.study/lema/zm107


Sol :

******

Click : www.nodia.study/lema/zm106

EXAMPLE 26.7
A photocopier (also called copier or copy machine) is a
machine that makes copies of documents and other visual
images onto paper or plastic film quickly and cheaply.
Most modern photocopiers use a technology called
xerography, a dry process that uses electrostatic charges
on a light-sensitive photoreceptor to first attract and then
transfer toner particles (a powder) onto paper in the form
Chap 4 Matrix Page 43

CHAPTER 4

Matrix

4.1 Introduction general, a m # n matrix is written as

R V
System of linear equations occur in several areas of Sa11 a12 a13 f a1n W
important technical and scientific applications. The Sa21 a22 a23 f a2n W
A = S W
importance of linear system has led to the development of Sf f f f f W
numerous methods for their solution. Sam1 am2 am3 f amnW
T Xm#n
It can be written in compact form as A = 6aij@m # n ,
Systems of linear simultaneous equations can be
expressed in matrix form and then converted as a single
where 1 # i # m ; 1 # j # n and i, j ! N . The number
equation, and it is partly for this reason that matrices are
of elements in m # n matrix is equal to mn .
so valuable in applications to engineering and science. It
The element aij is the i th row and j th column, and it
is called ^i, j hth element.
is also used in numerous applications other than system
of equations, in fields such as business, economics, and
psychology, as well as in scientific and technical areas. Note :
Let p be a prime number. Since, p = 1 # p = p # 1.
Thus possible orders of a matrix having p elements are
4.2 Matrices 1 # p and p # 1.
A matrix (plural matrices) is an ordered rectangular array
(i.e., arrangement or display) of numbers or functions, EXAMPLE 4.1
such as If a matrix has 18 elements, what are the possible orders
it can have ? What if it has 5 elements ?
2 y 7
A = >
x 8 0H


Sol :

Matrices are represented by capital letters like A, B

, C , etc. The elements of a matrix are always enclosed in Click : www.nodia.study/lema/dm101
the bracket 6 @ or parenthesis ^ h.

Element of Matrix
The numbers or functions in a matrix are called elements or EXAMPLE 4.2
R 3 5 19 − 7V
entries of the matrix. The elements in the above examples S W
Consider the matrix A = S 35 − 2 34 12W. Write
are 2, y , 7, x , 8 and 0. SS 3 1 − 5 17WW
Row and Column of Matrix (i) order of the matrix, T X
(ii) number of elements in the matrix,
A horizontal line of elements is called row of the matrix and
(iii) elements a13 , a21 , a 33 , a24 , a23 .
a vertical line of elements is called column of the matrix.


Sol :
The matrix in above example has 2 rows and 3 columns.

4.2.1 Order of a Matrix Click : www.nodia.study/lema/dm102

A matrix having m rows and n columns is called a matrix
of order m # n or simply m # n matrix (read as m by n
matrix). EXAMPLE 4.3
Construct a 3 # 4 matrix A = 6aij@, whose elements are
The matrix in the above example has order 2 # 3 . In
Page 44 Matrix Chap 4

given by aij = i . In the square matrix 6aij@ n # n , the line containing

j elements a11, a22, ..., ann is called the principal diagonal of
6aij@. The elements a11, a22, ..., ann are called the diagonal


Sol :

elements of square matrix 6aij@ n # n .

Click : www.nodia.study/lema/dm103
Illustration
R V
S1 4- 3W
Matrix S4 6 7 W is a square matrix, because number
EXAMPLE 4.4 SS W R V
Construct a 2 # 3 matrix B = 6bij@, whose elements are
2 88W S1 4W
T
of rows and X
columns are equal. S4 6W is not a square
given by bij = 1 i − 3j . SS WW
2 8
2


Sol : T X
matrix, because number of rows and columns are not equal.

Click : www.nodia.study/lema/dm104 4.3.5 Diagonal Matrix

A square matrix is called a diagonal matrix if all its non-
diagonal elements are zero. A diagonal matrix 6aij@ of order
n # n is usually written as diag ^a11, a22, ..., ann h.
EXAMPLE 4.5
Construct a 3 # 4 matrix whose elements are given by aij Illustration
R V
i + j if i $ j
= *1 S4 0 0W
2 _i − j i if i < j
.
Matrix S0 - 2 0W is a 3 # 3 diagonal matrix. This
SS W
0 0 6W


Sol : X also be written as diag 64, - 2, 6@.
diagonal Tmatrix can
Click : www.nodia.study/lema/dm105
4.3.6 Scalar Matrix
A square matrix is called a scalar matrix if all its non-
4.3 Type of Matrices diagonal elements are zero and all diagonal elements equal.


Illustration
R V
4.3.1 Zero (or Null) Matrix S4 0 0W
Matrix S0 4 0W is a scalar matrix of order 3 # 3 .
A matrix is called a zero matrix if all its elements are zero. SS W
4W
For example, 60 0 0@ is a zero matrix of order 1 # 3 . A
0 0
T X
zero matrix is denoted by O .
4.3.7 Unit Matrix
4.3.2 Row Matrix A square matrix is called a unit matrix if all its non-
A matrix is called a row matrix if it contains only one row. diagonal elements are zero and all diagonal elements unity.
For example, 61 5 4 3@ is a 1 # 4 row matrix and [4] is a A unit matrix is also known as an identity matrix.
1 # 1 row matrix. Illustration
1 0
4.3.3 Column Matrix >0 1H is a unit matrix of order 2 # 2 . This matrix is

A matrix is called a column matrix if it contains only one denoted by I2 .

R V
S1W Illustration
column. For example, S4W is a 3 # 1 column matrix. R V
SS2WW S1 0 0W
T X I 3 = S0 1 0W is a unit matrix of order 3 # 3 .
SS W
4.3.4 Square Matrix 0 0 1W
T X
A matrix is called a square matrix if the number of rows Note :
and columns in the matrix are equal. A square matrix
Every identity matrix and null square matrix is a scalar
having n rows (or columns) is called a square matrix of
matrix and every scalar matrix is a diagonal matrix.
order n or an n -square. matrix.
Chap 4 Matrix Page 45

4.3.8 Triangular Matrices a22 and b22 of A and B .

There are two types of triangular matrices:

Sol :
(a) Upper Triangular Matrix : A square matrix is called
an upper triangular matrix if all its elements below
Click : www.nodia.study/lema/dm108
the principal diagonal are zero. Thus, 6aij@ m # n is an
upper triangular matrix if (i) m = n and (ii) aij = 0
for i > j .
R V
Sa11 a12 a13W
For example, S 0 a22 a23W is an upper triangular
SS W
matrix. 0 0 a 33W
(b) Lower Triangular T MatrixX : A square matrix
is called a lower triangular matrix if all its
elements above the principal diagonal are zero.
Thus, 6aij@ m # n is a lower triangular matrix if
(i) m = n and (ii) aij = 0 for i < j .
R V
Sa11 0 0 W EXAMPLE 4.9
For example, Sa21 a22 0 W is a lower triangular matrix. Construct a 2 # 3 matrix whose elements aij are given by
SS W
a 31 a 32 a 33W (i) aij = 2i − 3j (ii) aij = i $ j
T X


Sol :
4.3.9 Equal Matrices
Two matrices are called equal if the matrices are of same Click : www.nodia.study/lema/dm109
order and their corresponding elements are equal. Thus,
the matrices 6aij@ m # n and 6bij@ p # q are equal if
(a) m = p ,
EXAMPLE 4.10
(b) n = q and
Construct a 3 # 2 matrix A, whose elements are given by
(c) aij = bij 6i, j . (6 means for all)
a b 4 0 3 y ^i + 2 j h2
For example, the matrices > H and >
6 7 zH
aij =
are equal 2
c x 6

Sol :
if a = 0 , b = 3 , y = 4 , c = 6 , x = 7 , z = 6 .

EXAMPLE 4.6
Click : www.nodia.study/lema/dm110
A is a matrix of the type 3 # 5 and R is a row of A, then
what is the type of R as a matrix ?


Sol : EXAMPLE 4.11
R V R V
Sx + y + z W S9W
Find the value of x , y and z if S x + z W = S5W.
Click : www.nodia.study/lema/dm106 SS W S W
y + z W S7W
T X T X
EXAMPLE 4.7

Sol :

If a matrix has 12 elements, what are the possible orders

it can have ? What, if it has 7 elements ? Click : www.nodia.study/lema/dm111


Sol :

Click : www.nodia.study/lema/dm107 EXAMPLE 4.12

Find the values of a , b, c and d from the matrix equation:
a − b 2a + c −1 5
>2a − b 3c + d H = > 0 13H
EXAMPLE 4.8
3 7 −1 7 9 0
Let A = > H and B = >
3 − 5 6H


Sol :
. Find the sum of
0 2 5
Page 46 Matrix Chap 4

Click : www.nodia.study/lema/dm112 Click : www.nodia.study/lema/dm117

EXAMPLE 4.13 EXAMPLE 4.18

R V R V
2x + y 4x 7 7y − 13 S x + 3 z + 4 2y − 7W S 0 6 3y − 2W
If > H =>
y x+6 H
, find the values of x and y .
5x − 7 4x If S4x + 6 a − 1 0 W = S 2x − 3 2c + 2W,
SS WW SS W
b − 3 3 b z + 2c 2b + 4 − 21 0 W


Sol : T X T X
Find the values of a , b, c , x , y and z .


Sol :
Click : www.nodia.study/lema/dm113
Click : www.nodia.study/lema/dm118
EXAMPLE 4.14
For what values of x and y are the following matrices
EXAMPLE 4.19
equal ?
Write the number of all possible matrices of order 2 # 2
2x + 2 y2 + 2 x + 4 3y
A = > H , B =>
5 − 6H
with each entry 1, 2 or 3.
2
5 y − 5y

Sol :


Sol :

Click : www.nodia.study/lema/dm119
Click : www.nodia.study/lema/dm114

EXAMPLE 4.20
EXAMPLE 4.15 What is the number of all possible matrices of order 3 # 3
Can you find the values of x and y so that the matrices with each entry 0 or 1 ?
3x + 7 5 0 y-2
> y + 1 2 − 3x H and >8 4 H may be equal ?

Sol :

Sol :
Click : www.nodia.study/lema/dm120
Click : www.nodia.study/lema/dm115
Applied Mathematics
CBSE Class XI and XII Commerce
EXAMPLE 4.16 A Text Book by NODIA Press
xy 4 8 w Based on New Syllabus Released By CBSE
If > H =>
0 6H
, find the values of x , y , z and w .
z+6 x+y No Missing Topic No Extra Topic


Sol :

For Teachers
Click : www.nodia.study/lema/dm116 Digital Specimen copy available for evaluation
Whatsapp at 94140 63210
Hard Specimen Book Available for Teachers who adopt this book
EXAMPLE 4.17 as Text book and Recommend as Text Book to Students
Find x , y , a and b if Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
3x + 4y 6 x − 2y 2 6 4
> a + b 2a − b − 3 H = >5 − 5 − 3H
whose students have purchased book.

Sol :
Chap 4 Matrix Page 47

Ans : a = 1,b = 2 ,c = 3 ,d = 4

2a − b c 0 4
8. If > H =>
− 1 5H
, then find a ,b,c and d
a −b d
Ans : a = 3 ,b =− 11 ,c = 13 ,d = 65
5 5 19 19

a 3a − b 3 2
9. If >2a + c 3c − d H = >4 7H, then find the
E X ERCISE 4.1 values of a ,b,c and d .
Ans : a = 3, b = 7 ,c =− 2 ,d =− 13
1. For a 2 # 2 matrix A = [aij ], whose elements are given
by aij = ij , write the value of a12
Ans : 12
10. Find the values of a ,b,c and d from the equation:
a − b 2a + c −1 5
>2a − b 3c + d H = > 0 13H
2. If A is a 3 # 3 matrix, whose elements are given by
Ans : a = 1, b = 2 , c = 3 , d = 4
aij = 13 − 3i + j , then write the value of a23 .
Ans : 1

3. Construct a 2 # 2 matrix A = [aij ], whose elements

(i + j) 2
are given by aij =
2
2 92
Ans : > 9 H
2 8

4. If a matrix has 8 elements, what are the possible

4.4 Algebra of matrices
orders it can have?
Ans : 1 # 8 ,8 # 1,2 # 4 ,4 # 2
4.4.1 Addition of Matrices
Let A = 6aij@ m # n and B = 6bij@ m # n be two matrices of same
order, then we define sum of matrices A and B as A + B
= 6aij + bij@ m # n .
5. Construct a 3 # 4 matrix, whose elements are given
by aij = 2i − j
R1 0 - 1 - 2V In simple words, A + B is a matrix obtained by
S W adding the corresponding elements of matrices A and B .
Ans : S3 2 1 0W
SS5 4 3 2WW
T X Note:
If A and B are not of same order, then A + B is not
x − y z −1 4
6. If > H =>
0 5H
find the value of x + y defined.
2x − y w
Ans : 3

Illustration
1 −1
A = >
2 0H
Let ,
7. Find the values of a ,b,c and d from the following
4 −1
B = >
1 − 2H
equation:
2a + b a − 2b −1 5
>5c − d 4c + 3d H = > 0 13H 3 5 3
C = >
0 1 2H
and
Page 48 Matrix Chap 4

1 −1 4 −1 So, A + O = A = O + A
A + B = > H +>
1 − 2H
Then,
2 0
4. Existence of Additive Inverse
1 + 4 −1 − 1 5 −2
=> H =>
3 − 2H For every matrix A = 6aij@, there exists a unique matrix

2+1 0−2
− A = 6− aij@ such that A + ^− Ah = O = ^− Ah + A . The
But, A + C is not defined as A and C are not of same
matrix - A is called the additive inverse of the matrix A.
order. Also, B + C is not defined as B and C are not of
PROOF :
same order.
Let A = 6aij@ be a m # n matrix, then
Properties of Matrix Addition
A + ^− Ah = 6aij@ + 6− aij@ = 6aij − aij@ = O ,
The addition operation on matrices has the following
properties: ^− Ah + A = 6− aij@ + 6aij@ = 6− aij + aij@ = O
1. Matrix Addition is Commutative So, A + ^− Ah = O = ^− Ah + A
If A and B are two matrices of same order, then
A + B = B + A. 4.4.2 Difference of Matrices
PROOF : Let A = 6aij@ m # n and B = 6bij@ m # n be two matrices of same
Let A = 6aij@ and B = 6bij@ be two matrices of same order, order, then we define difference of matrices A and B as
then A - B = 6aij − bij@ m # n .
A + B = 6aij@ + 6bij@
In simple words, A - B is a matrix obtained by

subtracting the elements of B from the corresponding
= 6aij + bij@
elements of A.
= 6bij + aij@

Note:
[Addition of real numbers is commutative] If A and B are not of same order, then A - B is not
= 6bij@ + 6aij@
defined.
= B+A

Illustration :
2. Matrix Addition is Associative 1 −1
A = >
2 0H
If A, B and C are three matrices of same order, then Let ,
A + ^B + C h = ^A + B h + C .
4 −1
B = >
1 − 2H
PROOF :
Let A = 6aij@, B = 6bij@ and C = 6cij@ be three matrices of
3 5 3
C = >
0 1 2H
same order, then and
A + ^B + C h = 6aij@ + ^6bij@ + 6cij@h
= 6aij@ + 6bij + cij@
1 −1 4 −1
A - B = > H −>
1 − 2H
Then,
2 0
= 6aij + ^bij + cij h@

= 6^aij + bij h + cij@
1 − 4 −1 + 1 −3 0
=> H =>
1 2H

2−1 0+2
[Addition of real numbers is associative]
= 6aij + bij@ + 6cij@
But A - C is not defined as A and C are not of same

= ^6aij@ + 6bij@h + 6cij@

order. Also, B - C is not defined as B and C are not of

same order.
= ^A + B h + C

3. Existence of Additive Identity 4.4.3 Scalar Multiplication
The null matrix is the additive identity for matrix addition. Let us now understand the operation of multiplication of
PROOF : a matrix by a scalar.
Let A = 6aij@ be a m # n matrix and let O be the m # n Let A = 6aij@ m # n be a matrix and let k be a scalar (i.e.,
null matrix, then real or complex number), then we define multiplication of
A + O = 6aij@ + 6Oij@ = 6aij + 0@ = 6aij@ = A , matrix A by a scalar k as kA = 6k aij@ m # n . In simple words,
O + A = 6Oij@ + 6aij@ = 60 + aij@ = 6aij@ = A
kA is a matrix obtained by multiplying each element of A

by scalar k .
Chap 4 Matrix Page 49

Illustration Click : www.nodia.study/lema/dm122

1 −1
A = >
2 0H
Let .

1 −1 EXAMPLE 4.23
2A = 2 >
2 0H
Then, 1 2 3 0 −1 5
If A = > H and B = >
2 3 − 4H
, find 2A - 3B .
2 3 1
2 ^1 h 2 ^− 1h 2 −2
=> H =>
2 ^2h 2 ^0h 4 0H


Sol :

Properties of Scalar Multiplication

The scalar multiplication operation on matrices has the
Click : www.nodia.study/lema/dm123
following properties:
Let A = 6aij@ and B = 6bij@ be matrices of same order.
Let k and l be two scalars, then
Applied Mathematics
1. k ^A + B h = kA + kB
CBSE Class XI and XII Commerce
PROOF :
A Text Book by NODIA Press
We have, k ^A + B h = k ^6aij@ + 6bij@h Based on New Syllabus Released By CBSE
= k 6aij + bij@
No Missing Topic No Extra Topic
= 6k ^aij + bij h@

= 6k aij + k bij@

= 6k aij@ + 6k bij@

For Teachers
Digital Specimen copy available for evaluation
= k 6aij@ + k 6bij@
Whatsapp at 94140 63210
= kA + kB
Hard Specimen Book Available for Teachers who adopt this book
2. ^k + l h A = kA + l A as Text book and Recommend as Text Book to Students
Word file of All Questions available also for Teachers
PROOF : Hard Specimen book will be given to those teachers only
^k + l h A = ^k + l h6aij@ = 6^k + l h aij@
We have, whose students have purchased book.

= 6kaij + laij@ = 6kaij@ + 6laij@

= k 6aij@ + l 6aij@ = kA + l A

EXAMPLE 4.24
If A = diagonal 61, - 2, 5@ and B = diagonal 63, 0, - 4@,
then find 3A - 2B .
EXAMPLE 4.21

Sol :
2 4 −2 5
If A = > H and B = > , then find ^3A - B h.
3 2 3 4H
Click : www.nodia.study/lema/dm124


Sol :

Click : www.nodia.study/lema/dm121 EXAMPLE 4.25 2016

0 3 0 4a
If A = > H and kA = >
− 8 5bH
, then find the values
2 −5
of k , a and b.
EXAMPLE 4.22
2 3 1 2 3 1

Sol :
Let A = > H , B => H , C = > H.
0 −1 −1 0 2 0
Click : www.nodia.study/lema/dm125
Verify that A + ^B + C h = ^A + B h + C


Sol :
Page 50 Matrix Chap 4

EXAMPLE 4.26 EXAMPLE 4.31

x2 2x 7
If > 2H + 2 > H = 3 > H, find the values of x and y .
Show that, if A, B and C are three matrices of the same
y 3y −3 order, then B = C & A + B = A + C .


Sol :

Sol :

Click : www.nodia.study/lema/dm126 Click : www.nodia.study/lema/dm131

EXAMPLE 4.27 EXAMPLE 4.32

3 4 1 y 7 0 Show that, if A, B and C are three matrices such that
If 2 > H + > H = > , find ^x - y h.
5 x 0 1 10 5H A + B = A + C , then B = C .


Sol :


Sol :

Click : www.nodia.study/lema/dm127 Click : www.nodia.study/lema/dm132

EXAMPLE 4.33
EXAMPLE 4.28
Find a matrix A such that 2A − 3B + 5C = O , where B
Find the value of x + y from the following matrix equation:
−2 2 0 2 0 −2
=> H and C = >
7 1 6H
x 5 3 −4 7 6 .
2> H +> H = >
15 14H
3 1 4
7 y−3 1 2


Sol :


Sol :

Click : www.nodia.study/lema/dm133
Click : www.nodia.study/lema/dm128

EXAMPLE 4.34
EXAMPLE 4.29 If X and Y are 2 # 2 matrices, then solve the following
x y x 6 4 x+y matrix equations for X and Y :
Given 3 > H => H +>
z+w 3 H
, 2 3
− 1 2w
2X + 3Y = > H
z w

4 0
find the values of x , y , z and w .
−2 2
3X + 2Y = >
1 − 5H


Sol :

Sol :
Click : www.nodia.study/lema/dm129
Click : www.nodia.study/lema/dm134
EXAMPLE 4.30
Find the value of k , a non-zero scalar, if
1 2 3 1 0 2 4 4 10
2> H + k> H = >
4 2 14H

−1 −3 2 3 4 5


Sol :

Click : www.nodia.study/lema/dm130
Chap 4 Matrix Page 51

E X ERCISE 4.2 Note :

1. If the order of A and B are m # n and n # p
1 2 3 3 −1 3
1. If A = > H and B = >
2H
, then find respectively, then the order of AB is m # p .
2 3 1 −1 0 2. The product AB is defined only if the number of
2A - B columns of A is equal to the number of rows of B .
-1 5 3 3. In the product AB , the matrix A is called pre-
Ans : >
5 6 0H multiplier matrix and the matrix B is called post-
multiplier matrix.
4. If AB is defined, then BA need not be defined.
5 2 3 6
2. Find X and Y , if X + Y = > H and X − Y = >
0 − 1H
5. If A and B are square matrices of same order, then
0 9 both AB and BA are defined.
4 4 1 −2 Illustration
Ans : X = > H, Y = >
0 4 0 5H 5 −1 4 2
A = >
− 2 0H
Let and B = > H
3 6
2#2 2#2

c11 c12
AB = 6cik@ 2 # 2 = >
c21 c22H
R V R V Then,
S8 0 W S 2 − 2W
3. If A = S4 − 2W and B = S 4 2 W, then find
SS3 6 WW SS− 5 1 WW To evaluate c11 (i.e., entry in first row and first column):
5 -1 4 2 ^5 h^4h + ^− 1h^3h * 17 *
>- 2 0H >3 6H = > H =>
* *H
X such thatT 2AX + 3X = 5B T X
R V
* *
S- 2 - 3 W
10

Ans : S 4 14 W
3
S 31 W To evaluate c12 (i.e., entry in first row and second column):
S- 3 - 73 W
5 -1 4 2 * ^5 h^2 h + ^− 1h^6 h * 4
>- 2 0H >3 6H = >* H => H
T X

* * *
3 4 1 y 7 0
4. If 2 > H + > H = >
10 5H
, find (x - y). To evaluate c21 (i.e., entry in second row and first column):
5 x 0 1
5 -1 4 2 * * * *
Ans : 10 >- 2 0 H >3 6H = > − 2 4 + 0 3 *H = >− 8 *H
^ h^ h ^ h^ h

To evaluate c22 (i.e., entry in second row and second

5. Find the value of x + y from the following equation: column):
5 -1 4 2 * * * *
2>
x 5
H +>
3 −4
H =>
7 6 >- 2 0 H >3 6H = >* − 2 2 + 0 6 H = >* − 4H
15 14H ^ h^ h ^ h^ h

7 y−3 1 2
17 4
AB = >
− 8 − 4H
Ans : 11
Thus,

a c 1 −1 3 5 4.5.1 Properties of Matrix Multiplication

6. If 2 > H + 5> H = 3 > H, then find a, b,
b d 0 2 4 6
The matrix multiplication operation on matrices has the
c and d following properties:
Ans : a = 2 , b = 6 , c = 10 , d = 4
1. Matrix Multiplication is Associative
For any three matrices A, B and C , we have ^AB h C = A ^BC h
, whenever both sides of above equality are defined.
2. Matrix Multiplication is Distributive Over Matrix
4.5 Multiplication of Matrices Addition
For any three matrices A, B and C , we have
Let A = 6aij@ m # n and B = 6b jk@ n # p be two matrices, then we
A ^B + C h = AB + AC
define multiplication of matrices A and B as AB = 6cik@ m # p

, where cik is obtained by first taking the element-wise and ^A + B h C = AC + BC
products of elements of i th row of A and k th column of B , whenever both sides of above equality are defined.
and then adding such products. 3. Existence of Multiplicative Identity
Page 52 Matrix Chap 4

For every square matrix A, there exists an identity matrix

R V
of same order such that IA = AI = A . S1 2W
4 5 6
(ii) A = >
0 1 2H
4. Matrix Multiplication is not Commutative in General and B = S1 0W
SS W
For any two matrices A and B , if both AB and BA 1 2W
T XR V
are defined, it is not necessary that AB = BA . (i.e., S2W
Commutativity may hold in some cases, but may not hold (iii) A = 81 − 1 − 2B and B = S4W
SS WW
in some other.) 0
T X
Illustration :

Sol :
1 2 3 0
A = > H and B = >
− 1 5H
(i) Let
0 4
Click : www.nodia.study/lema/dm135
1 2 3 0 1 10
AB = > H >
0 4 − 1 5H >− 4 20H
Then, =

3 0 1 2 3 6 EXAMPLE 4.36
BA = > H > H =>
− 1 18H
and
−1 5 0 4 Evaluate the following:
3 3 1 2 1 3 5
(i) * > H + > H 4 >
1 1 2 4 6H
So, AB ! BA
1 4
1 0 3 0
(ii) Let A = > H and B = > H R V
0 4 0 5
S1 - 1W 1 0 2 0 1 2
(ii) S0 2 W * > H 3 0 2H 4
1 0 3 0 3 0 ->
AB = > H > H = >
0 20H
Then, SS WW 4 0 1
0 4 0 5 2 3
T X
3 0 1 0 3 0
BA = > H > H = >
0 20H
R V
and
0 5 0 4 Sa W
Sb W c
(iii) 8a b c dB S W + 8a bB > H
So, AB = BA Sc W d
It can be observed from above example (ii) that Sd W
multiplication of diagonal matrices of same order will be R T X VR V
commutative. S1 0 2W S 2 W
(iv) 81 2 3B S2 0 1W S 1 W
5. Zero Matrix as the Product of Two Non-zero Matrices SS WS W
0 1 2W S- 3W
For real numbers, we have: T XT X


Sol :
Let a , b be any two real numbers. If ab = 0 , then
either a = 0 or b = 0 .
This result need not hold for the matrices. For Click : www.nodia.study/lema/dm136
matrices, we have the following:
If the product of two matrices is a zero matrix, then
it is not necessary that one of the matrices is a zero matrix.
EXAMPLE 4.37
Illustration
4 2
If B = > , then prove that ^B − 3I h^B − 2I h = O .
0 2 −1 3 − 1 1H
A = > H and B = >
0 0H
Let
0 1


Sol :
Then, both A and B are non-zero matrices, but
0 2 −1 3 0 0
AB = > H > H => H= O Click : www.nodia.study/lema/dm137
0 1 0 0 0 0

EXAMPLE 4.38
EXAMPLE 4.35 1 4 0 1
If A = > H and B = >
− 1 2H
Compute AB and BA, whichever exists, in each of the , then find 3A2 − 5B + 7I .
3 2
following cases:
1 2 3 1 −2

Sol :
(i) A = > H and B = >
2 3 1 2 3H
Chap 4 Matrix Page 53

Click : www.nodia.study/lema/dm138 Click : www.nodia.study/lema/dm143

EXAMPLE 4.39 EXAMPLE 4.44

R V
1 0
Solve the matrix equation 6x 1@ >
- 2 0H
S1 2 2W
= O for x .
If A = S2 1 2W, then prove that A2 − 4A − 5I = O .
SS W
2 2 1W

Sol :
T X


Sol :

Click : www.nodia.study/lema/dm144
Click : www.nodia.study/lema/dm139

EXAMPLE 4.45
R VR V
EXAMPLE 4.40 S1 0 2W Sx W
2 3 If 8x - 5 - 1B S0 2 1W S4W = O , find x .
If A = >
2H
, then prove that A3 − 4A2 + A = O . SS WS W
1 2 0 3W S1W
T XT X


Sol :

Sol :

Click : www.nodia.study/lema/dm140 Click : www.nodia.study/lema/dm145

EXAMPLE 4.41 EXAMPLE 4.46

R V
2 −2
If matrix A = >
−2 2 H
S0 1 0W
and A2 = pA , then write the value
If A = S0 0 1W, then prove that A3 = aI + bA + cA2 .
SS W of p.
a b cW
T X

Sol :


Sol :

Click : www.nodia.study/lema/dm146
Click : www.nodia.study/lema/dm141

EXAMPLE 4.47
EXAMPLE 4.42 R V
S2 3 1W
If A = >
2 3
H
1 0
and I = > H, then find a and b so that If A = S− 1 0 2 W and f ^x h = x2 − 5x + 7 , then find f ^Ah.
1 2 0 1 SS W
1 1 − 1W


Sol : T X
A2 = aA + bI .

Click : www.nodia.study/lema/dm147


Sol :

Click : www.nodia.study/lema/dm142
EXAMPLE 4.48
2 3
If A = >
− 1 2H
, then show that A is a root of the
EXAMPLE 4.43
If A = >
a 0
H
1 0
and B = > H, then find the value(s) of a , polynomial f ^x h = x2 − 4x + 7 .
1 1 5 1


Sol :

if exist, for which A2 = B .

Sol : Click : www.nodia.study/lema/dm148
Page 54 Matrix Chap 4

EXAMPLE 4.49 R2 - 3V
3 -1 3 S W
−5 −3 1. Compute the product > H
Show that the matrix B = >
− 12 − 7H
S1 0W
is a root of the -1 0 2 S
2 S3 1WW
equation B + 12B − I = O . 14 - 6
Ans : > H
T X


Sol : 4 5

Click : www.nodia.study/lema/dm149 Ra h g VRx V

S WS W
2. Find the product 8x y z BSh b f WSy W
SSg f c WWSSz WW
T XT X
EXAMPLE 4.50 Ans : 6ax2 + by2 + cz2 + 2hxy + 2fyz + 2gzx @1 # 1
0 0
If A = >
0H
, then find (i) A20 , (ii) A35 .
2


Sol :
1 2
3. If A = > H, then show that A2 − 3I = 2A
2 1
Click : www.nodia.study/lema/dm150 Ans : Proof

R1 2 3VR- 1 1 0V R- 1 1 0VR1 2 3V
EXAMPLE 4.51 S WS W S WS W
i 0 4. Show that : S0 1 0WS 0 - 1 1W ! S 0 - 1 1WS0 1 0W
If A = >
iH
, then find A19 . SS1 1 0WWSS 2 3 4WW SS 2 3 4WWSS1 1 0WW
0
T XT X T XT X


Sol : Ans : Proof

Click : www.nodia.study/lema/dm151
R 1 − 4 1V
3 2 4 5 6 S W
5. If A = > H, B = > H and C = S− 2 5 − 3W. verify
EXAMPLE 4.52 1 0 0 1 2 SS 3 6 5WW
R V that (AB) C = A (BC). T X
Sa 0 0W
If A = S0 a 0W, then find An . Ans :
SS W
0 0 aW


Sol : T X
R 1 3 2VR1V
S WS W
Click : www.nodia.study/lema/dm152 6. Find x , if 81 x x BS 2 5 1WS2W = O
SS15 3 2WWSSx WW
T XT X
Ans : - 2 , - 14

JR 0 6 7V R0 1 1VWNRS 2 VW
KS W S O
7. Evaluate: KS− 6 0 8W + S1 0 2WOS− 2W
KSS 7 − 8 0WW SS1 2 0WWOSS 3 WW
R10V T L X T XPT X
S W
Ans : S20W
SS28WW
T X
R2 0 1V
E X ERCISE 4.3 S W
8. If A = S2 1 3W, then find the value of A2 − 3A + 2I
SS1 − 1 0WW
T X
Chap 4 Matrix Page 55

R 1 - 1 - 1V
S W
2 3 5 8 -7 6
(iii) > H (iv) >
0H
Ans : S 3 - 3 - 4W
SS- 3 2 0 WW 0 8 2 3 -1
T X
R1 0 2V

Sol :
S W
9. If A = S0 2 1W, prove that A3 − 6A2 + 7A + 2I = O
SS2 0 3WW
Click : www.nodia.study/lema/dm153
T
Ans : proof X

4.7 Properties of Transpose

R 2 V R V
Sa ab acW S 0 c − bW 1. ^All
h = A , where A is any matrix.
10. If A = Sab b2 bcW and B = S− c 0 a W,
S W SS b − a 0 WW PROOF :
Sac bc c2 W
T
then show that BA =X O 3 # 3 $ T X Let A be m # n matrix.
Ans : proof Then Al is a n # m matrix.
Then ^Alhl is a m # n matrix.
Then A and ^Alhl are of same order.
For 1 # i # m , 1 # j # n ,
^i, j h th element of ^Alhl = ^ j, i h th element of Al
= ^i, j h th element of A

4.6 Transpose of Matrices Thus ^Alhl = A
Let A be a matrix of order m # n . The n # m matrix 2. ^A + B hl = Al + Bl, where A and B are matrices of
obtained from A by interchanging its rows and columns is the same order.
called the transpose of A and is denoted by Al or by AT . PROOF :
Thus, if A = 6aij@ m # n , then transpose of A, i.e., Let A = 6aij@ m # n and B = 6bij@ m # n
Al is given by 6b ji@ n # m , where b ji = aij , 1 # i # m and Then A + B is a matrix of order m # n .
1 # j # n . The ^ j, i h th element of Al is equal to ^i, j h th Then ^A + B hl is a matrix of order n # m .
element of A. Al and Bl are matrices of order n # m each
Note: Thus Al + Bl is a matrix of order n # m .
1. A is an m # n matrix, Al is n # m matrix. and ^A + B hl and Al + Bl are of same order.
2. ^i, j h th element of A, ^i, j h th element of Al. For 1 # i # m , 1 # j # n ,
^ j, i h th element of ^A + B hl
= ^i, j h th element of A + B
Illustration:

R V
S2 3 6 8W = ^i, j h th element of A + ^i, j h th element of B

= ^ j, i h th element of Al + ^ j, i h th element of Bl
Let A = S5 − 3 − 7 4W, then transpose of A is the 4 # 3
SS W
9 8 2 1W
T X = ^i, j h th element of Al + Bl
R
S2 5 9W
V Thus ^A + B hl = Al + Bl
S3 - 3 8W 3. ^kAh = kAl, where A is any matrix and k is any
l
matrix S W. The rows (respectively columns) of Al number.
S6 - 7 2W
S8 4 1W PROOF :
T X
are the columns (respectively rows) of the matrix A. Let A = 6aij@ m # n
Now kA = k 6aij@ = 6kaij@
For 1 # i # m , 1 # j # n ,
EXAMPLE 4.53 ^ j, i h th element of ^kAhl = ^i, j h th element of kA

Find the transpose of the following matrices: = k # ^i, j h th element of A
R V
S5W = k # ^ j, i h th element of Al

(i) 81 2 6B (ii) S9W
SS WW = ^ j, i h th element of kAl

0
T X
Page 56 Matrix Chap 4

Thus ^kAhl = kAl

4. ^AB hl = BlAl, where A and B are matrices for which (i) ^2Ahl= 2Al (ii) ^A + B hl= Al + Bl
AB is defined. (iii) ^AB hl= BlAl


Sol :
PROOF :

Let A = 6aij@ m # n and B = 6b jk@ n # p

Order of AB = m # p Click : www.nodia.study/lema/dm156
and order of ^AB hl = p # m
Order of Al = n # m
and order of Bl = p # n EXAMPLE 4.57
R V
S− 1W
If A = S 2 W and B = 6− 2 − 1 − 4@,
Order of BlAl = p # m
Thus ^AB hl and BlAl are of same order. SS WW
3
Al = 6c ji@ n # m and Bl = 6dk j@ p # n T X
verify that ^AB hl = BlAl.
Let
Now c ji = ai j and dk j = b jk


Sol :
For 1 # i # m , 1 # k # p ,
^k, i h th element of ^AB hl ^i, k h th element of AB
n n n Click : www.nodia.study/lema/dm157
= aij b jk = c ji dk j =
/ / /d kj c ji
j=1 j=1 j=1

= ^k, i h th element of BlAl

EXAMPLE 4.58
Thus ^AB hl = BlAl R V
Property (4) is known as the reversal law for the S1 2 2 W
If A = S2 1 − 2W is matrix which satisfies AAt = 9I 3 ,
transpose of the product. SS W
a 2 b W
T X
then find the values of a and b.


Sol :
EXAMPLE 4.54
2 1 9 0
If A = > H and B = > H, then verify that:
3 5 6 8 Click : www.nodia.study/lema/dm158
(i) ^Allh = A (ii) ^A + B hl= Al + Bl
(iii) ^kAhl= kAl (iv) ^AB hl= BlAl


Sol :
EXAMPLE 4.59
R V
S 3 4W −1 2 1
If Al = S− 1 2W and B = >
1 2 3H
, verify that
Click : www.nodia.study/lema/dm154 SS
0 1
WW
T X
(i) ^A + B hl= Al + Bl (ii) ^A − B hl= Al − Bl


Sol :
EXAMPLE 4.55
If matrix A = 61 2 3@, write AAl where Al is the transpose
of matrix A.
Click : www.nodia.study/lema/dm159


Sol :

EXAMPLE 4.60
Click : www.nodia.study/lema/dm155 R V
S3W
Verify that ^AB h = B A , where A = S 1 W, B = 61 − 5 7@
l l l
SS WW
−2
T X
EXAMPLE 4.56

Sol :
−1 5 3 −2
If A = > H and B = >
5 4H
, verify that
3 2
Click : www.nodia.study/lema/dm160
Chap 4 Matrix Page 57

EXAMPLE 4.61 R1 2VW

S
2 3 1 0 −1
Verify that ^AB hl= BlAl, where A = > H, B = >
2 1 3H
1. If A = S3 4W, verify that (Al)l = A .
4 1 SS5 6WW
Ans : T X


Sol :

Click : www.nodia.study/lema/dm161 R3 2 4V
S W
2. If A = S2 1 1W, verify that (5A)l = 5Al.
SS1 3 5WW
T X
EXAMPLE 4.62 Ans :
R V
S 0 a bW
Find 1 ^A + Alh and 1 ^A - Alh, when A = S− a 0 cW.
2 2 SS W
− b − c 0W 4 0 2 4
T X 3. If A = > H and B = > H, then find:
0 6 1 0


Sol :
(i) Al + Bl (ii) (A + B)l.
Click : www.nodia.study/lema/dm162 Verify (A + B)l = Al + Bl.

6 1 6 1
Ans : (i) > H (ii) > H
4 6 4 6
EXAMPLE 4.63
R V
S0 2y z W R 1V
Find the values of x , y , z if the matrix A = Sx y − z W S W
SS W 4. If A = S− 5W and B = 83 1 − 2B , then verify that
obeys the law AlA = I . x −y z W SS 7WW
T X


Sol : T X
(AB)l = BlAl.
Ans :
Click : www.nodia.study/lema/dm163
R V R4 1 0V
Applied Mathematics S1 − 1 0W S W
5. If A = S2 1 3W and B = S2 − 3 1W, then verify that
CBSE Class XI and XII Commerce SS4 1 8WW SS1 1 − 1WW
A Text Book by NODIA Press T X T X
(A + B)l = A + Bl.
Based on New Syllabus Released By CBSE
Ans :
No Missing Topic No Extra Topic
R− 2 3 4V
For Teachers S W
6. For matrix A = S 5 − 4 − 3W, find 1 (A - Al),
Digital Specimen copy available for evaluation SS 7 2 9WW 2
Whatsapp at 94140 63210 T X matrix A.
where Al is the transpose of the
Hard Specimen Book Available for Teachers who adopt this book R V
S0 - 1 - 2 W
3
as Text book and Recommend as Text Book to Students Ans : S1 0 - 52 W
Word file of All Questions available also for Teachers S3 5 W
Hard Specimen book will be given to those teachers only
S2 2 0W
whose students have purchased book. T X

R− 1V
S W
7. If A = S 2W and B = 8− 2 − 1 − 4B , verify
SS 3WW
E X ERCISE 4.4 T X
that (AB)l = BlAl.
Ans :
Page 58 Matrix Chap 4

4.9 Skew-Symmetric matrix

3 4
8. If A = > H, find A + Al, where Al is the A square matrix A = 6aij@ is said to be a skew-symmetric
2 3
transpose of matrix A. matrix if its ^i, j h th element is the negative of its ^ j, i h th
6 6 element, i.e., aij =− a ji 6i, j .
Ans : > H
6 6 Illustration:

R V
R5 0V S 0 9 − 6W
−1 3 0 S W A = S− 9 0 8 W is a skew-symmetric matrix, because
9. If A = > H and B = S0 3W, verify that SS
6 −8 0 W
W
−7 2 8 SS1 − 8WW T X
(AB)l = BlAl. T X a12 =− a21 = 9 , a13 =− a 31 =− 6 , a23 =− a 32 = 8 ,
Ans : a11 =− a11 = 0 , a22 =− a22 = 0 , a 33 =− a 33 = 0
In a skew-symmetric matrix, we have
aij =− a ji 6i, j
1 2 2 5 4 3
10. Given A = > H, B=> H and C = > H, Thus in particular, aii =− aii 6i
2 3 3 1 4 1
2aii = 0 6 i
show that (ABC)l = C lBlAl.
Ans : i.e., aii = 0 6 i
Therefore all the elements on the principal diagonal
of a skew-symmetric matrix must be zero.
The following matrix are skew-symmetric matrices:
R V
R V S 0 2 -3 7 W
S0 6 - 5W S
0 5 - 2 0 9 - 8W
4.8 Symmetric Matrix >- 5 0H , S - 6 0 17 W, S
3 - 9 0 5 WW
SS W
5 - 17 0 W SS
A square matrix A = 6aij@ is said to be a symmetric matrix T X -7 8 -5 0 W
T X
if its ^i, j h th element is the same as its ^ j, i h th element,
i.e., aij = aij 6i, j .
Illustration:
R V EXAMPLE 4.65
S3 5 9 W Prove that the necessary and sufficient condition for a
Let A = S5 6 7 W is a symmetric matrix, because matrix A to be skew-symmetric is that Al =− A .
SS W
9 7 11W
T X

Sol :
a12 = a21 = 5 , a13 = a 31 = 9 , a23 = a 32 = 7 .
In a symmetric matrix, there is no restriction on
elements on the principal diagonal. Click : www.nodia.study/lema/dm165
The following matrices are symmetric matrices:
R V
R V S4 3 6 9 W
4 1 S- 5 6 9W S3 5 2 - 5W
>1 5H, S 6 0 5W, S6 2 10 - 7W EXAMPLE 4.66
SS W 2 4
If A = >
6H
9 5 3W SS W
, show that:
T X 9 - 5 - 7 0 W 5
T X
(i) A + Al is symmetric.
(ii) A - Al is skew-symmetric.


Sol :
EXAMPLE 4.64
Prove that the necessary and sufficient condition for the
matrix A to be symmetric is that Al = A . Click : www.nodia.study/lema/dm166


Sol :

Click : www.nodia.study/lema/dm164 EXAMPLE 4.67

Show that a matrix which is both symmetric as well as
Chap 4 Matrix Page 59

skew-symmetric is a null matrix. EXAMPLE 4.72

4 1
If A = >
8H


Sol : , show that A + AT is a symmetric matrix,
5
where AT denotes the transpose of matrix A.
Click : www.nodia.study/lema/dm167

Sol :

EXAMPLE 4.68
Click : www.nodia.study/lema/dm172
Show that positive odd integral powers of a skew-symmetric
matrix are skew-symmetric and positive even integral
powers of a skew-symmetric matrix are symmetric. EXAMPLE 4.73
1 4
If A = > H, show that A - AT is skew-symmetric matrix,


Sol :
3 7

Click : www.nodia.study/lema/dm168 where AT is the transpose of the matrix A.

Sol :

EXAMPLE 4.69 Click : www.nodia.study/lema/dm173

If A and B are symmetric matrices of the same order,
then show that AB is symmetric if and only if A and B
commute i.e., AB = BA .
EXAMPLE 4.74


Sol : R V
S 0 1 − 1W
Show that the matrix, A = S− 1 0 1W, is a skew-
SS W
Click : www.nodia.study/lema/dm169 symmetric matrix. 1 − 1 0W
T X


Sol :

EXAMPLE 4.70 Click : www.nodia.study/lema/dm174

Prove that every square matrix is uniquely expressible
as the sum of a symmetric matrix and a skew-symmetric
matrix.
EXAMPLE 4.75


Sol : R V
S 0 2b − 2W
(i) Matrix A = S 3 1 3 W is given to be symmetric,
SS W
Click : www.nodia.study/lema/dm170 3a 3 − 1W
T X
find the values of a and b.
R V
S − 2 x − y 5W
EXAMPLE 4.71 (ii) If the matrix S 1 0 4W is symmetric, find the
R V SS W
S4 3 7W x + y z 7W
Express S6 5 - 8W as the sum of a symmetric matrix T X
SS W values of x , y and z .
1 2 6W
T X

Sol :
and a skew-symmetric matrix.


Sol :
Click : www.nodia.study/lema/dm175
Click : www.nodia.study/lema/dm171
EXAMPLE 4.76
R V
S 0 1 − 2W
(i) For what value of x , is the matrix A = S− 1 0 3 W a
SS W
x −3 0 W
T X
Page 60 Matrix Chap 4

skew-symmetric matrix ? EXAMPLE 4.81

R V If a matrix is both symmetric and skew-symmetric, then
S0 a 3 W show that it is a null matrix.
(ii) If the matrix S2 b - 1W is skew-symmetric, find the

Sol :
SS W
c 1 0W
T X
values of a , b and c . Click : www.nodia.study/lema/dm181


Sol :

Click : www.nodia.study/lema/dm176 EXAMPLE 4.82

If A, B are symmetric matrices of same order, prove that
AB - BA is a skew-symmetric matrix.


Sol :
EXAMPLE 4.77
If A is any square matrix, prove that AAl is symmetric.


Sol : Click : www.nodia.study/lema/dm182

Click : www.nodia.study/lema/dm177
EXAMPLE 4.83
If A and B are square matrices of same order, then prove
that ABl - BAl is a skew-symmetric matrix.
EXAMPLE 4.78


Sol :
If A, B are square matrices of equal order and B is
symmetric, then show that AlBA is also symmetric.


Sol : Click : www.nodia.study/lema/dm183

Click : www.nodia.study/lema/dm178
EXAMPLE 4.84
Show that all positive integral powers of a symmetric
matrix are symmetric.
EXAMPLE 4.79


Sol :
If A, B are square matrices of equal order and B is a skew-
symmetric matrix, then write whether the matrix ABAl is
symmetric or skew-symmetric. Click : www.nodia.study/lema/dm184


Sol :

Click : www.nodia.study/lema/dm179 EXAMPLE 4.85

R V
S 0 a bW
Find 1 ^A + Alh and 1 ^A - Alh, where A = S− a 0 cW.
2 2 SS W
− b − c 0W
EXAMPLE 4.80 T X
If A is a square matrix and P is any square matrix of

Sol :
order equal to that of A, prove that PlAP is symmetric
or skew-symmetric according as A is symmetric or skew-
symmetric.
Click : www.nodia.study/lema/dm185


Sol :

EXAMPLE 4.86
Click : www.nodia.study/lema/dm180 Express the following matrix as the sum of a symmetric
matrix and a skew-symmetric matrix and verify your
result:
Chap 4 Matrix Page 61

R V

******
S 3 - 2 - 4W
S 3 - 2 - 5W

SS W
-1 1 2 W
T X


Sol :

Click : www.nodia.study/lema/dm186

E X ERCISE 4.5
−1 5
1. If A = >
3 7H
, determine whether A + A' is symmetric
or skew-symmetric
Ans : symmetric Applied Mathematics
CBSE Class XI and XII Commerce
A Text Book by NODIA Press
5 −1 Based on New Syllabus Released By CBSE
2. If A = >
− 2 6H
, determine whether A - AT is
No Missing Topic No Extra Topic
symmetric or skew-symmetric
Ans : Skew-symmetric
For Teachers
Digital Specimen copy available for evaluation
0 6 − 5x Whatsapp at 94140 63210
3. If the matrix > 2
x x+3H
is symmetric, find the value(s)
Hard Specimen Book Available for Teachers who adopt this book
of x
as Text book and Recommend as Text Book to Students
Ans : 1, - 6
Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
whose students have purchased book.
R 1 − 1 5V
S W
4. Show that matrix A, where A = S− 1 2 1W, is a
symmetric matrix. SS 5 1 3WW
Ans : T X

2 4
5. Define a symmetric matrix. Prove that for A = > H
5 6
t t
A + A is a symmetric matrix where A is the transpose
of A.
Ans :

2 3
6. If A = > H, prove that A - AT is a skew- symmetric
4 5
matrix.
Ans :
Page 62 Determinants Chap 5

CHAPTER 5

Determinants

5.1 Introduction 5.2.1 Rows

Determinants have many important applications. They The series of elements in the horizontal lines from left to
can be used to determine the area of a triangle, to verify right in a determinant are called rows of the determinant.
whether the given three points are collinear, to find the Different rows of the determinant are denoted by
equation of line passing through three collinear points, to R1, R2, R 3, .....
solve a system of simultaneous linear equations, etc. In In above determinant a11, a12 are the elements of the
this chapter, we shall discuss the concept of determinants first row R1 whereas a21, a22 are the elements of the second
in detail and study some of its applications. row R2 .

5.2.2 Columns
5.2 Determinants
The series of elements in the vertical lines of from top
Consider the two simultaneous homogeneous linear to bottom in a determinant are called columns of the
equations determinant. Different columns of the determinant are
a11 x + a12 y = 0 ...(1) denoted by C1, C2, C 3, .....
In above determinant a11, a21 are the elements of the
and a21 x + a22 y = 0 ...(2)
first column C1 whereas a12, a22 are the elements of the
From eqn. (1), we have
second column C2 .
a11 x =− a12 y

x =− a12 ...(3) 5.2.3 Order of the Determinant

y a11 A determinant having n row and n columns is called
Also, from eqn. (2), we have determinant of n th order.
a12 x =− a22 y a11 a12 a13
x =− a22 ...(4) Thus, a21 a22 a23

y a21 a 31 a 32 a 33
Hence, from eqns. (3) and (4), we get is an example of third order determinant.
- a12 =− a22
a11 a21
5.2.4 Notation
a11 a22 - a12 a21 = 0 Generally, a determinant is denoted by T or D .
This result can also be written as
a11 a12
= 0 5.2.5 Constituents of Principal Diagonal
a21 a22
The series of quantities (or elements) in the diagonal line
Hence, it is clear that
from left hand top corner to right hand bottom corner
a11 a12 are called the elements or constituents of the principal
= a11 a22 − a12 a21 ...(5)
a21 a22 diagonal. In the above third order determinant a11, a22, a23
The expression on the LHS of eqn. (5) is called a are the elements of the principal diagonal.
determinant, which has a definite numerical value. The
letters a11, a12, a21, a22 are called the constituents or elements
of the determinant.
Chap 5 Determinants Page 63

5.3 Second order Determinant Click : www.nodia.study/lema/em105

Consider a determinant of second order,
a11 a12 EXAMPLE 5.6

a21 a22 What positive value of x makes the following pair of
determinants equal ?
Its value is a22 - a21 a12 , where a11, a22 are the elements
2x 3 16 3
of principal diagonal. ,
5 x 5 2
Value of the second order determinant


Sol :
= Product of the elements of principal diagonal

- Product of the remaining elements.
Click : www.nodia.study/lema/em106
EXAMPLE 5.1
2 -3 EXAMPLE 5.7
Find the value of the determinant .
4 9 3 y 3 2


Sol : Let = . Find the possible values of x and y if
x 1 4 1

x , y are natural numbers.

Click : www.nodia.study/lema/em101

Sol :

EXAMPLE 5.2 Click : www.nodia.study/lema/em107

1 log b a
Find the value of the determinant .
log a b 1


Sol :
EXAMPLE 5.8
2 −1 0 4
If A = > H and B = >
− 1 7H
, find the determinant of
Click : www.nodia.study/lema/em102 3 2

the matrix 3A2 - 2B .

EXAMPLE 5.3

Sol :
-3 1
Evaluate the determinant :
5 6 Click : www.nodia.study/lema/em108


Sol :

5.4 Third order Determinants

Click : www.nodia.study/lema/em103
Consider the three simultaneous homogeneous linear
equations.
EXAMPLE 5.4 a1 x + b1 y + c1 z = 0 ...(1)
x + 3 −2
If x ! N and = 8 , find the value of x . a2 x + b2 y + c2 z = 0 ...(2)
− 3x 2x


Sol : a 3 x + b 3 y + c 3 z = 0 ...(3)
From eqns. (2) and (3) by cross multiplication

Click : www.nodia.study/lema/em104 x
b2 c3 - b3 c2
=
y
a3 c2 − a2 c3
= z
a3 c2 − a2 c3
= k (say)

x = k (b2 c 3 − b 3 c2)
EXAMPLE 5.5 y = k (a 3 c2 − a2 c 3)4 ...(4)

x - 2 -3 z = k (a2 b 3 − a 3 b2)
If = 3 , find the value of x .
3x 2x where, k ! 0 (because if k = 0 , then x = 0 , y = 0 , z = 0 ).


Sol : Putting the values of x, y and z from eqn. (4) in eqn (1),
we get
ka1 (b 2 c 3 − b 3 c 2) + kb1 (a 3 c 2 − a 2 c 3) + kc1 (a 2 b 3 − a 3 b2) = 0
Page 64 Determinants Chap 5

a1 (b2 c 3 − b 3 c2) − b1 (a2 c 3 − a 3 c2) + c1 (a2 b 3 − a 3 b2) = 0 Hence, A11 = (− 1) 1 + 1 M11 = M11
b2 b3 a2 a3 a2 a3 a22 a23
a1 − b1 + c1 = 0 =
c2 c3 c2 c3 b2 b3 a 32 a 33
This result can also be written as with respect to the determinant (A) of third order.
a1 b 1 c 1 Similarly,
a2 b 2 c 2 = 0 ...(5) A12 = (− 1) 1 + 2 M12 =− M12 = M12
a3 b3 c3 a21 a23
The expression on the L.H.S of eqn. (5) is called the =−

a 32 a 33
determinant of third order.
Hence, A11 = M11 , A12 =− M12 , A13 = M13
A21 =− M21 , A22 = M22 , A23 =− M23
5.5 Minors and cofactors
and A 31 = M 31 , A 32 =− M 32 , A 33 = M 33 .

5.5.1 Minor
The minor of any constituent (or element) is the determinant
obtained by omitting from the original determinant, the
row and column to which it belongs.
a11 a12 Applied Mathematics
Let T = ...(1) CBSE Class XI and XII Commerce
a21 a22
be a determinant of second order, then minor of the A Text Book by NODIA Press
constituent a11 is Based on New Syllabus Released By CBSE
M11 = a22 No Missing Topic No Extra Topic
Similarly, minor of the constituent a12 is
M12 = a21
Minor of the constituent a21 is
For Teachers
Digital Specimen copy available for evaluation
M21 = a12 Whatsapp at 94140 63210
and minor of the constituent a22 is Hard Specimen Book Available for Teachers who adopt this book
M22 = a11 as Text book and Recommend as Text Book to Students
a11 a12 a13 Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
Again, let T = a21 a22 a23 ...(2) whose students have purchased book.
a 31 a 32 a 33
be a determinant of third, then minor of the constituent
a11 is
a22 a23 5.6 Expansion of a Determinant
M11 =
a 32 a 33
Minor of the constituent a12 is 5.6.1 Expansion of a Determinant of Second Order
a21 a23
M12 = a11 a12
a 31 a 33 Let T = be a given determinant of second order.
a21 a22
Minor of the constituent a13 is
Then the minors of the constituents a11, a12, a21, a22 are
a21 a22
M13 = etc. M11, M21, M22 respectively. The cofactors of a11, a12, a22 are
a 31 a 32
A11, A12, A21, A22 respectively.
5.5.2 Cofactor M11 = a22 , M12 = a21 , M21 = a12 , M22 = a11
If an element aij is located at i th row and j th column of A11 = a22 , A12 =− a21 , A21 =− a12 , A22 = a11
the determinant, then the cofactor Aij of aij is the minor Now expanding with respect to R1
of (− 1) i + j aij a11 a12
i+j T =
Thus, Aij = (− 1) Mij a21 a22
Chap 5 Determinants Page 65

EXAMPLE 5.10
= a11 a22 − a21 a12
-1 2 3
Write all the cofactors of 2 - 3 1 .
= a11 M11 − a12 M12



Sol : 3 -1 1
T = a11 A11 + a12 A12
Similarly, T =− a21 M21 + a22 M22
T = a21 A21 + a22 A22 .
Click : www.nodia.study/lema/em110

5.6.2 Expansion of a Determinant of Third Order EXAMPLE 5.11

1 2
a11 a12 a13 Find the all cofactors of the determinant .
-1 -3
Let T = a21 a22 a23

Sol :
a 31 a 32 a 33
be a given determinant of third order. Then,
Click : www.nodia.study/lema/em111
a22 a23 a21 a22 a21 a 22
T = a11 − a12 + a3
a 32 a 33 a 31 a 32 a 31 a 32
EXAMPLE 5.12
[expanding with respect to R1 ]
0 2 0
= a11 M11 − a12 M12 + a13 M13
What is the value of the determinant 2 3 4 ?
T = a11 A11 + a12 A12 + a13 A13 4 5 6
Hence, we see that the value of the determinant

Sol :
is equal to the sum of the products of the respective
constituents of the first row with their corresponding Click : www.nodia.study/lema/em112
cofactors and this is true for every row and every column.
Similarly, the expansion of the determinant with
respect to the first column will be EXAMPLE 5.13
T = a11 A11 + a21 A21 + a 31 A 31 3 7 13
= a11 M11 − a21 M21 + a 31 M 31
Evaluate - 5 0 0 .
0 11 2
a22 a23 a12 a13 a12 a13
= a11
− a21 + a 31
a 32 a 33 a 32 a 33 a22 a23

Sol :

Similarly, the expansion of the determinant with

respect to the other rows or column is possible as :
Click : www.nodia.study/lema/em113
T = a21 A21 + a22 A22 + a23 A23 , [wrt second row]
and T = a13 A13 + a23 A23 + a23 A23 [wrt third column] etc. EXAMPLE 5.14
2 3 -5
Evaluate the determinant 7 1 - 2 :
EXAMPLE 5.9 -3 4 1
In the determinant

Sol :
3 -3 4
3 2 -2 ,
Click : www.nodia.study/lema/em114
-1 1 1
find the cofactors of the elements 3, 3, - 1 and hence find
the value of the determinant.
EXAMPLE 5.15


Sol : R V
S1 0 1W
If A = S0 1 2W, then show that 3A = 27 A .
SS W
Click : www.nodia.study/lema/em109 T
0 0 4W
X


Sol :
Page 66 Determinants Chap 5

Click : www.nodia.study/lema/em115 Thus, equation of line passing through A ^x1, y1h and
B ^x2, y2h is given by
x y 1
EXAMPLE 5.16
x1 y1 1 = 0
x2 x 1
x2 y2 1
Find the integer value(s) of x if 0 2 1 = 28 .
3 1 4


Sol :
EXAMPLE 5.18
Using determinants, find the area of the triangle whose
Click : www.nodia.study/lema/em116 vertices are (0, 0), (4, 3) and (8, 0).


Sol :

EXAMPLE 5.17
There are two values of x which make determinant ∆ Click : www.nodia.study/lema/em118
1 −2 5
= 2 x − 1 = 86 , find the sum of these numbers.
0 4 2x EXAMPLE 5.19
Using determinants, find values of a if area of triangle,


Sol : having vertices ^a, 0h, (4, 0) and (0, 2), is 4 sq. units.


Sol :
Click : www.nodia.study/lema/em117
Click : www.nodia.study/lema/em119
5.7 Area of Triangle
EXAMPLE 5.20
Let A ^x1, y1h, B ^x2, y2h and C ^x 3, y 3h be any three points in
Show that the points (1, 0), (6, 0), (0, 0) are collinear.
the XY -plane. Consider the following determinant,


Sol :
x1 y1 1
1
∆ = x 2 y 2 1
2
x3 y3 1 Click : www.nodia.study/lema/em120
= 1 7x1 ^y2 − y 3h − y1 ^x2 − x 3h + ^x2 y 3 − x 3 y2hA
2
EXAMPLE 5.21
Using determinants, show that the points ^a, b + c h,
Then,
^b, c + a h and ^c, a + b h are collinear.
1. Area of triangle with vertices A, B and C = ∆ sq.
units.


Sol :
2. Points A, B and C are said to be collinear, if ∆ = 0 .
(It is called condition of collinearity of three points.)
Click : www.nodia.study/lema/em121
5.7.1 Collinear Point
Let A ^x1, y1h and B ^x2, y2h be any two points in the XY EXAMPLE 5.22
-plane. Let P ^x, y h be any point on the line joining A Using determinants, find a so that the points ^a, 2h, ^1, 5h
and B . Then, the points P , A and B collinear. By above and ^2, 4h are collinear.
condition of collinearity, we have


Sol :
x y 1
1
∆ = x1 y1 1 = 0
2
x2 y2 1 Click : www.nodia.study/lema/em122
x y 1
x1 y1 1 = 0 EXAMPLE 5.23
x2 y2 1 Using determinants, prove that α + β = αβ , if the points
^α, 0h, ^0, β h and (1, 1) are collinear.
Chap 5 Determinants Page 67

Sol : 7. Find the minor and co-factors of each element of

R2 − 3 5V
S W
A = S6 0 4W and verify that
Click : www.nodia.study/lema/em123 SS1 5 − 7WW
T X
a11 A 31 + a12 A 32 + a13 A 33 = 0 .
EXAMPLE 5.24 Ans : M11 =− 20 , M12 =− 46 , M13 = 30 ,
Using determinants, find the equation of the line joining M21 =− 4 , M22 =− 19 , M23 = 13 ,
the points (1, 2) and (3, 6). M 31 =− 12 , M 32 =− 22 , M 33 = 18 ;


Sol : A11 =− 20 , A12 = 46 , A13 = 30
A21 = 4 , A22 =− 19 , A23 =− 13 ,
A 31 =− 12 , A 32 = 22 , A 33 = 18
Click : www.nodia.study/lema/em124

12 22 32
8. Find the value of 22 32 42 by using co-factors of
E X ERCISE 5.1 elements of C1 . 32 42 52
Ans : - 8
1. Evaluate the following determinants:
5 4 17 6
(i) (ii)
3 9 15 5 1 x yz
Ans : (i) 33 (ii) - 5 9. Evaluate by using co-factors of elements of C 3 : 1 y zx
1 z xy
Ans : (x - y) (y - z) (z - x)

3 x 3 2
2. Find the values of x for which = .
x 1 4 1
Ans : x = ! 2 2 10. Prove by expanding along R1 that
x+y y+z z+x
z x y =0
3 0 1 1 1
A=>
− 1 4H
3. Verify that AB = A B if and
2 −1 αβ - α - β = 0
B=>
1 3H
. α + β = αβ
Ans : Proof Ans : Proof

ad + bc bd − ac
4. Show that >
ac − bd ad + bcH
= (a2 + b2) (c2 + d2).
Ans :

1 2
5. If A = > H, then find the value of k if
4 2
2A = k A .
5.8 Properties of determinants
Ans : k=4
The following properties (enunciated as Theorems) are
very useful. They help in evaluating a given determinant
0 2 0 by converting it into an equal determinant which is easier
6. What is the value of the determinant 2 3 4 ? to evaluate. We shall prove these properties for third order
Ans : 8 4 5 6 determinants only though they are true for determinants
of any order.
Page 68 Determinants Chap 5

5.8.1 Theorem 1 0 5 6 1 6 1
=2
− ^− 3h +5
If each element in any row or in any column is zero, then 4 −7 4 −7 0 5
the value of the determinant is zero. = 2 ^0 − 20h + 3 ^− 42 − 4h + 5 ^30 − 0h



Illustration
=− 40 − 138 + 150 =− 28

0 0 0
8 2 6 2 6 8 Clearly T = T' . Hence theorem 2 is verified
6 8 2 = 0 −0 +0 =0
7 5 3 5 3 7
3 7 5
5.8.3 Theorem 3
5.8.2 Theorem 2 If two adjacent rows or columns of a determinant are
The value of a determinant is not altered by inter changing interchanged, the determinant changes in sign but its
its rows and columns. numerical value is unaltered.


Illustration

Illustration
a1 b1 c1 a1 b1 c1
Let T = a2 b2 c2 Let T = a 2 b 2 c 2
a3 b3 c3 a3 b3 c3
= 8a1 ^b2 c 3 − b 3 c2h − b1 ^a2 c 3 − a 3 a2h+ c1 ^a2 b 3 − a 3 b2hB
be the given determinant. Expanding T by means of 1st be the given determinant. Let T' be the determinant from
row, we get
T by interchanging its 1’st and 2nd columns.
T = a1 ^b2 c 3 − b 3 c2h − b1 ^a2 c 3 − a 3 a2h + c1 ^a2 b 3 − a 3 b2h
b1 a1 c1
...(i)
then T' = b2 a2 c2
Let T' be the determinant obtained from T by changing b3 a3 c3
its rows into columns and columns into rows, so that Expanding T' by means of 1st row, we get
a1 a2 a 3 T' = b1 ^a2 c 3 − c2 a 3h − a1 ^b2 c 3 − c2 b 3h + c1 ^b2 a 3 − a2 b 3h
T' = b1 b2 b 3 =− {a2 ^b2 c 3 − c2 b 3h − b1 ^a2 c 3 − c2 a 3h
c1 c 2 c 3 + c2 ^a2 b 3 − b2 a 3h}
Expanding T' by means of 1st column, we get =− T
T' = a1 ^b2 c 3 − b 3 c2h − b1 ^a2 c 3 − a 3 c2h + c1 ^a2 b 3 − a 3 b2h Corollary :
...(ii) If any row (or a column) of a determinant is passed over n
There is no difference between (i) and (ii) parallel rows or columns, then the resulting determinant is
T = T' T' = ^− 1hn T
Thus the value of a determinant remains unaltered if its


Illustration
rows be changed into columns and columns into rows. We
2 −3 5
may change any row with any column.
Let T = 6 0 4


Illustration
1 5 −7
2 −3 5
Let T = 6 0 4 2 −3 5
1 5 −7 T = 6 0 4 =− 28
Expanding the determinant along first row, we get 1 5 −7
0 4 6 4 6 0 (From Illustration of Theorem 2)
T = 2 − ^− 3h +5
5 −7 1 −7 1 5 Interchanging rows R2 and R 3 , i.e., R2 ) R 3 , we get
= 2 ^0 − 20h + 3 ^− 42 − 4h + 5 ^30 − 0h
2 −3 5
T' = 1 5 − 7
=− 40 − 138 + 150 =− 28

6 0 4
Interchanging rows and columns, we get Expanding the determinant T' along first row, we get
2 6 1 5 −7 2 −7 1 5
T' = − 3 0 5 T' = 2 − ^− 3h +5
0 4 6 4 6 0
5 4 −7
Expanding along first column, we get = 2 ^20 − 0h + 3 ^4 + 42h + 5 ^0 − 30h

= 40 + 138 − 150 = 28

Chap 5 Determinants Page 69

Clearly T =− T' . Hence theorem 3 is verified. If the elements in a row or column of a determinant are
respectively equal to k times the corresponding elements
5.8.4 Theorem 4 in another row or column, the value of the determinant is
zero.
If two rows or columns of a determinant are equal then
then value of the determinant is zero.


Illustration
5.8.6 Theorem 6
a1 a1 c1 If each element on one side of principal diagonal is zero,
Let T = a2 a2 c2 ...(i) then the value of determinant is the product is the product
a3 a3 c3 of diagonal elements
be the given determinant. Let T' be the determinant a11 a12 a13
obtained form T by interchanging its first and second i.e., A = 0 a22 a23
columns, where 0 0 a 33
a1 a1 c1
a11 0 0
T' = a2 a2 c2 = T ...(ii)
or T = a21 a22 0 then T = a11 a22 = a 33
a3 a3 c3
a 31 a 32 a 33
But by theorem 3, the value of a determinant changes in

Illustration
sign if its any two adjacent lines (rows or columns) are
a11 a12 a13
interchanged, therefore,
Let T = 0 a22 a23
T' =− T ...(iii)
0 0 a 33
From (i), (ii) and (iii)
Expanding along first column, we get
T =− T
a22 a23
2T = 0 & T = 0 T = a11 +0+0
0 a 33
Hence a determinant vanishes if it has two identical lines (rows or
columns). T = a11 ^a22 a 33 − a23 # 0h & T = a11 a22 a 33

5.8.5 Theorem 5 5.8.7 Theorem 7

If all the elements of a row (or column) of a determinant
If each constituent in any row (or column) consists of two
are multiplied by a constant k , then the value of the
determinant gets multiplied by k . terms, then the determinant can be expressed as the sum


Illustration of two determinants of the same order.
a1 b1 c1

Illustration
Let T = a2 b2 c2 a1 + a 1 b1 c1
a3 b3 c3 Let T = a2 + a 2 b2 c2
= a1 ^b2 c 3 − b 3 c2h − b1 ^a2 c 3 − a 3 c2h + c1 ^a2 b 3 − a 3 b2h a3 + a 3 b3 c3
be the given determinant. Let T' be the determinant Expanding it with respect to the elements of the 1st
obtained from T by multiplying every element of the first column we get,
row by the constant k , k ! 0 , so that b2 c2 b1 c1
T = ^a1 + a 1h − ^a2 + a 2h
ka1 kb1 kc1 b3 c3 b3 c3
b1 c1
T' = a2 b2 c2 +^a 3 + α 3h
a3 b3 c3 b2 c2
b2 c2 b2 c2 b1 c1
Expanding T' with respect to the elements of first row, = a1
+ α1 − a2
b3 c3 b3 c3 b3 c3
we get
T' = ka1 ^b2 c 3 − b 3 c2h − kb1 ^a2 c 3 − a 3 c2h b1 c1 b1 c 1 b1 c1
+ kc1 ^a2 b 3 − a 3 b2h −a2
b3 c3
+ a3
b2 c2
+ a3
b2 c2
T' = k $a1 ^b2 c 3 − b 3 c2h − b1 ^a2 c 3 − a 3 c2h
= *a1
b2 c2 b 1 c1
b2 c2 4
b1 c1
+ c1 ^a2 b 3 − a 3 b2h. − a2 + a3
b3 c3 b3 c3
or T' = kT
+ *a 1
b2 c2 b1 c1
b2 c2 4
Corollary : b1 c1
− a2 + a3
b3 c3 b3 c3
Page 70 Determinants Chap 5

a1 a2 a 3
a1 b1 c1 a 1 b1 c1 Let T = b1 b2 b 3
T = a2 b2 c2 + a 2 b2 c2 c1 c 2 c 3
a3 b3 c3 a 3 b3 c3
The co-factors of the elements a1 , a2 , a 3 of the first row are
b2 b3 b1 b 3 b1 b 2
5.8.8 Theorem 8 respectively ,- ,
c2 c3 c1 c 3 c1 c 2
If to each element of a row (or column) of a determinant be Hence the sum of the products of the above co-factors
added or subtracted the equimultiples of the corresponding with the elements of second row b1 , b2 , b 3 is equal to
elements of one or more rows (or columns), the determinant
b2 b3 b1 b 3 b1 b 2
remains unaltered. b1 − + b3
c2 c3 c1 c 3 c1 c 2


Illustration
a1 b1 c1 = b1 ^b2 c 3 − b 3 c2h − b2 ^b1 c 3 − b 3 c1h + b 3 ^b1 c1 − b2 c1h

Let T = a2 b2 c2 = b1 b 2 c 3 − b1 b 3 c 2 − b 1 b 2 c 3 + b 2 b 3 c1 + b 1 b 3 c 1

a3 b3 c3 − b 2 b 3 c1 = 0
and T' be the determinant obtained by adding p tiems the
elements of the second column and subtracting q times the
elements of the third column from the first column of T 5.8.11 Theorem 11
, then. If A and B are square matrices of same order, then
a1 + pb1 b1 c1 | AB | = | A |$| B |
T' = a2 + pb2 b2 c2

Illustration
a 3 + pb 3 b 3 c 3
Let A = ;2 5E and B = ; 4 − 3 E
21 2 5
Then by theorem 7,
a1 b1 c1 pb1 b1 c1 − qc1 b1 c1 Now | A | = 2 5 = 2 − 10 =− 8
T' = a2 b2 c2 + pb2 b2 c2 + − qc2 b2 c 2 21
a3 b3 c3 pb 3 b 3 c 3 − qc 3 b 3 c 3
b1 b1 c 1 c1 b1 c 1 | B | = 4 − 3 = 20 + 6 = 26
2 5
= T + p b2 b2 c2 − q c2 b2 c2
b3 b3 c3 c3 b3 c3 Also, AB = ;2 5E ; 4 − 3E
21 2 5
[By theorem 5]
= T + p ^0 h − q ^0 h = T
[By theorem 4] AB = ; 8 + 10 − 6 + 25 E = ;18 19 E
8 + 2 −6 + 5 10 − 1
5.8.9 Theorem 9 (Factor Theorem)
Thus, | AB | = 18 19 =− 18 − 190 =− 208 ...(i)
If the elements of determinant T are polynomials in x and 10 − 1
T = 0 when we substitute a for x , then x - a is a factor
of T. Again, |A || B |= (− 8) # (26) =− 208 ...(ii)


Illustration From eq (i) and (ii), we have
Since the constituents of variable x are polynomial in x, | A || B | = | AB |
hence the expansion of T will also be a polynomial in x .
Now, since the value of T becomes zero by putting x = a
; hence ^x - a h will be a factor of the polynomial obtained 5.9 Elementary operations
by the expansion of T.
The main purpose behind the simplification of a
determinant lies in making maximum possible zeros in a
5.8.10 Theorem 10.
row (or a column) by using the above properties and then
The sum of the product of co-factors of a particular row to expand the determinant by that row (or column).
or column and any other row or column of a determinant Elementary operations for determinants :
is zero. Let R1 , R2 , ..., Rn be first, second, ..., nth row and C1 ,


Illustration C2, ... Cn be first second, ... , nth column of a determinant
T or order n . Then we may apply following elementary
Chap 5 Determinants Page 71

operations : Click : www.nodia.study/lema/em128

(a) Interchanging of ith and jth row of T | Ri ) R j
Interchanging of i and j column of T | Ci ) C j
th th

(b) Multiplication by a number k on each element of ith EXAMPLE 5.29
row| Ri " kRi Using properties of determinants, prove that :
Multiplication by a number k on each element of ith 1 1+p 1+p+q
column| Ci " kCi 3 4 + 3p 2 + 4p + q = 1
(c) For i ! j , adding to each element of ith row of T, 4 7 + 4p 2 + 7p + 4q
k times the corresponding elements of jth row :

Sol :
Ri " Ri + kR j
For i ! j , adding to each element of ith column of
T, k times the corresponding elements of jth column Click : www.nodia.study/lema/em129
| Ci " Ci + kC j

EXAMPLE 5.30
EXAMPLE 5.25 Without expanding the determinant prove that :
Verify | AB | = | A || B |, where, 0 2 −3
R V R V
S1 − 3 2W S0 2 6W −2 0 4 = 0
A = S4 − 1 2W and B = S1 5 0W 3 −4 0
SS W SS W
3 5 2W 3 7 1W
T X T X

Sol :


Sol :

Click : www.nodia.study/lema/em130
Click : www.nodia.study/lema/em125
EXAMPLE 5.31
EXAMPLE 5.26
Using properties of determinants, rove the following :
If A and B are square matrices of the same order 3, such
that | A | = 4 and AB = 4I . write the value of | B |. a a2 bc
b b2 ca = ^a − b h^b − c h^c − a h^bc + ca + ab h.


Sol :
c c2 ab


o
Click : www.nodia.study/lema/em126 Applying properties of determinants, prove that
a b c
EXAMPLE 5.27 a2 b2 c2 = ^a − b h^b − c h^c − a h^ab + bc + ca h
Using properties of determinates, prove that : bc ca ab
^a + 1h^a + 2h a + 2 1

Sol :
^a + 2h^a + 3h a + 3 1 =− 2
^a + 3h^a + 4h a + 4 1
Click : www.nodia.study/lema/em131


Sol :

EXAMPLE 5.32
Click : www.nodia.study/lema/em127 Using properties of determinants, prove that following :
b+c a a
EXAMPLE 5.28 b c + a b = 4abc
Using properties of determinants, solve for x : c c a+b
a+x a−x a−x

Sol :
a−x a+x a−x = 0
a−x a−x a+x
Click : www.nodia.study/lema/em132


Sol :
Page 72 Determinants Chap 5

EXAMPLE 5.33
Using properties of determinants, prove that :

Sol :
a+x y z
x a + y z = a2 ^a + x + y + z h
x y a+z Click : www.nodia.study/lema/em137


Sol :
EXAMPLE 5.38
Using properties of determinants, prove that :
Click : www.nodia.study/lema/em133
a + b + 2c a b
c b + c + 2a b = 2 ^a + b + c h3
EXAMPLE 5.34 c a c + a + 2b
Using properties of determinants, prove that :

Sol :
1 1 1 + 3x
1 + 3y 1 1 = 9 ^3xyz + xy + yz + zx h
1 1 + 3z 1 Click : www.nodia.study/lema/em138


Sol :
EXAMPLE 5.39
Using properties of determinants, prove that :
Click : www.nodia.study/lema/em134
x2 + 1 xy xz
xy y + 1 yz = 1 + x2 + y2 + z2
2

EXAMPLE 5.35 xz yz z2 + 1
Using properties of determinants, prove that :

Sol :
x + l 2x 2x
2x x + l 2x = ^5x + lh^l − x h2
2x 2x x + l Click : www.nodia.study/lema/em139


Sol :
EXAMPLE 5.40
Click : www.nodia.study/lema/em135 Using properties of determinants, prove that
x+y x x
5x + 4y 4x 2x = x3
EXAMPLE 5.36 10x + 8y 8x 3x
a2 bc ac + c2

Sol :
Prove a2 + ab b2 ac = 4a2 b2 c2 .
ab b2 + bc c2


Sol : Click : www.nodia.study/lema/em140

Click : www.nodia.study/lema/em136 EXAMPLE 5.41

Using properties of determinants, prove that :
b+c c+a a+b a b c
EXAMPLE 5.37 q+r r+p p+q = 2 p q r
Using properties of determinants, prove that : y+z z+x x+y x y z
2y y−z−x 2y


o
2y 2z z − x − y = ^x + y + z h3
Using properties of determinants, prove that
x−y−z 2z 2x
b+c q+r y+z a p x


o c+a r+p z+x = 2 b q y
Applying properties of determinants prove that : a+b p+q x+y c r z
a−b−c 2a 2a

Sol :
2b b−c−a 2b = ^a + b + c h3
2c 2c c−a−b
Chap 5 Determinants Page 73

Click : www.nodia.study/lema/em141

Sol :

EXAMPLE 5.42 Click : www.nodia.study/lema/em145

Using properties of determinants, prove that :
1+a 1 1 EXAMPLE 5.46
1 1 + b 1 = abc + ca + ab Using properties of determinants, prove that following :
1 1 1+c x x + y x + 2y


Sol : x + 2y x x + y = 9y2 ^x + y h
x + y x + 2y x

Click : www.nodia.study/lema/em142

Sol :

EXAMPLE 5.43 Click : www.nodia.study/lema/em146

a b c
If a + b + c ! 0 and b c d = 0 , then using properties
EXAMPLE 5.47
c a b
Using properties of determinants, prove the following :
of determinants, prove that a = b = c .
1 + a2 − b2 2ab − 2b
= ^1 + a2 + b2h3


Sol : 2 2
2ab 1−a +b 2a
2b − 2a 1 − a2 − b2
Click : www.nodia.study/lema/em143

Sol :

EXAMPLE 5.44 Click : www.nodia.study/lema/em147

Using properties of determinants, prove that :
1 a a3
1 b b3 = ^a − b h^b − c h^c − a h^a + b + c h EXAMPLE 5.48
1 c c3 Using properties of determinants, prove that following :
α β γ


o
α 2
β 2
γ2 = ^α − β h^β − γ h^γ − αh^α + β + γ h
Using properties of determinants, prove that :
β+γ γ+α α+β
1 a 1
a b c = ^a − b h^b − c h^c − a h^a + b + c h.

Sol :
a3 c c3


Sol :
Click : www.nodia.study/lema/em148
Click : www.nodia.study/lema/em144
EXAMPLE 5.49
Using properties of determinants, prove the following :
EXAMPLE 5.45 b+c a−b a
Using properties of determinants, prove the following : c + a b − c b = 3abc − a3 − b3 − c3
1 x x2 a+b c−a c
x2 1 x = ^1 − x3h2

Sol :
x x2 1


o
Click : www.nodia.study/lema/em149
Using properties of determinants, prove that
1 a a2
a2 1 a = ^1 − a3h2 . EXAMPLE 5.50
a a2 1 Using properties of determinants, prove the following :
Page 74 Determinants Chap 5

a b c
a − b b − c c − a = a3 + b3 + c3 − 3abc
b+c c+a a+b


Sol :

Click : www.nodia.study/lema/em150

EXAMPLE 5.51
x 3 7 EXAMPLE 5.55
If x =− 9 is a root of 2 x 2 = 0 , find the other roots. Using properties of determinants, prove that
7 6 x a2 + 2a 2a + 1 1


Sol : 2a + 1 a + 2 1 = ^a − 1h3
3 3 1
Click : www.nodia.study/lema/em151

Sol :

EXAMPLE 5.52 Click : www.nodia.study/lema/em155

Using properties of determinants, prove that :
a b−c c+b
EXAMPLE 5.56
a + c b c − a = ^a + b + c h^a2 + b2 + c2h
Using properties of determinants show that
a−c b+a c
1 1 1+x


Sol : 1 1 + y 1 =− (xy + yz + zx + xyz)
1+z 1 1
Click : www.nodia.study/lema/em152

Sol :

EXAMPLE 5.53 Click : www.nodia.study/lema/em156

Using the properties of determinants, show that :
a a+b a+b+c
EXAMPLE 5.57
2a 3a + 2b 4a + 3b + 2c = a3 a b−y c−z
3a 6a + 3b 10a + 6b + 3c If a − x b c − z = 0 , then using properties of


Sol : a−x b−y c
determinants find the value of a + b + c , where x , y z ! 0
x y z
Click : www.nodia.study/lema/em153 .

Sol :

EXAMPLE 5.54
1 a a2 Click : www.nodia.study/lema/em157
If T = a a2 1 =− 4 then find the value of
a2 1 a
a3 - 1 0 a - a4 EXAMPLE 5.58
0 a - a4 a3 - 1 . a −1 0
a - a4 a3 - 1 0 If f ^x h = ax a − 1 , using properties of determinants,
ax2 ax a


Sol :

find the value of f ^2x h - f ^x h.

Click : www.nodia.study/lema/em154

Sol :
Chap 5 Determinants Page 75

Click : www.nodia.study/lema/em158 Click : www.nodia.study/lema/em163

EXAMPLE 5.59 EXAMPLE 5.64

2
Ax x 1 A B C Using properties of determinants, solve the following for x
Show that T = T 1 , where T = By y2 1 , T = x y z x − 2 2x − 3 3x − 4
. Cz z2 1 zy zx xy x − 4 2x − 9 3x − 16 = 0


Sol : x − 8 2x − 27 3x − 64


Sol :
Click : www.nodia.study/lema/em159
Click : www.nodia.study/lema/em164
EXAMPLE 5.60
Using properties of determinants, prove that
EXAMPLE 5.65
3x − x + y − x + z Using properties of determinants, solve the following for x
x−y 3y z − y = 3 ^x + y + z h^xy + yz + zx h
x+a x x
x−z y−z 3z
x x+a x = 0


Sol : x x x+a


Sol :
Click : www.nodia.study/lema/em160
Click : www.nodia.study/lema/em165
EXAMPLE 5.61
Using properties of determinants, prove that
EXAMPLE 5.66
5a − 2a + b − 2a + c
Without expanding, evaluate the determinant :
− 2b + a 5b − 2b + c = 12 ^a + b + c h^ab + bc + ca h
^a + a h2 ^a − a h2 1
x −x x −x
− 2c + a − 2c + b 5c
^ay + a−y h2 ^a − a h2 1 ,
y −y

^a + a h2 ^a − a h2 1
z −z z −z


Sol :

where a 2 0 and x , y , d R .
Click : www.nodia.study/lema/em161

Sol :

EXAMPLE 5.62 Click : www.nodia.study/lema/em166

Applying properties of determinants, prove that
− a2 ab ac
ba − b2 bc = 4a2 b2 c2
ca cb − c2
E X ERCISE 5 . 2


Sol :
1. Evaluate using properties of determinant
Click : www.nodia.study/lema/em162 7 9 79
4 1 41 .
5 5 55
EXAMPLE 5.63 Ans : 0
Using properties of determinants, prove that
x y z
x2 y2 z2 = xyz ^x − y h^y − z h^z − x h
2. Evaluate using properties of determinant
x3 y3 z3
12 22 32


Sol : 22 32 42 .
32 42 52
Page 76 Determinants Chap 5

10. Prove that:

1 + a2 − b2 2ab − 2b
Ans : - 8 .
2ab 1 − a2 + b2 2a = (1 + a2 + b2) 3 .
2b − 2a 1 − a2 − b2
Ans : Proof
−1 1 1
3. Prove that 1 − 1 1 = 4.
1 1 −1
Ans : Proof

a b c y b q x y z
4. Prove that x y z = x a p = p q r .
p q r z c r a b c
Ans : Proof

x 1 1
5. Prove that: 1 x 1 = (x + 2) (x − 1) 2 .
1 1 x Applied Mathematics
Ans : Proof CBSE Class XI and XII Commerce
A Text Book by NODIA Press
Based on New Syllabus Released By CBSE
b+c a+b a No Missing Topic No Extra Topic
6. Prove that: c + a b + c b = a3 + b3 + c3 − 3abc .
a+b c+a c
Ans : Proof For Teachers
Digital Specimen copy available for evaluation
Whatsapp at 94140 63210
Hard Specimen Book Available for Teachers who adopt this book
y+z x y
as Text book and Recommend as Text Book to Students
7. Prove that: z + x z x = (x + y + z) (x − z) 2 .
Word file of All Questions available also for Teachers
x+y y z Hard Specimen book will be given to those teachers only
whose students have purchased book.
Ans : Proof

2−x 3 3
8. Solve 3 4−x 5 = 0.
3 5 4−x
Ans : x = 0, − 1, 11.

a2 + 1 b2 c2
9. Prove that: a2 b2 + 1 c2 = 1 + a2 + b2 + c2 .
a2 b2 c2 + 1
Ans : Proof
Chap 6 Inverse of Matrix Page 77

CHAPTER 6

Inverse of Matrix

6.1 Minors and Cofactors

1 2
Let A = 6aij@ be a square matrix. The minor Mij of an
Minor of b23 = M23 = =− 6
7 8
element aij of A is the determinant of the matrix obtained 2 3
by deleting i th row and j th column of A. Minor of b 31 = M 31 = =− 3
5 6
Note :
Minor of an element of a square matrix of order n ^n $ 2h
1 3
Minor of b 32 = M 32 = =− 6
is a determinant of order ^n - 1h.
4 6
The cofactor Aij of an element aij of a square matrix 1 2
A = 6aij@ is defined as
Minor of b 33 = M 33 = =− 3
4 5
Aij = ^− 1hi + j Mij Cofactor of b11 = B11 = ^− 1h1 + 1 M11 =− 3
Illustration Cofactor of b12 = B12 = ^− 1h1 + 2 M12 = 6
1 2
Consider the matrix A = > H. Then, Cofactor of b13 = B13 = ^− 1h1 + 3 M13 =− 3
Cofactor of b21 = B21 = ^− 1h2 + 1 M21 = 6
3 4

Minor of a11 = M11 = 4 Cofactor of b22 = B22 = ^− 1h2 + 2 M22 =− 12
Minor of a12 = M12 = 3 Cofactor of b23 = B23 = ^− 1h2 + 3 M23 = 6
Minor of a21 = M21 = 2 Cofactor of b 31 = B 31 = ^− 1h3 + 1 M 31 =− 3
Minor of a22 = M22 = 1 Cofactor of b 32 = B 32 = ^− 1h3 + 2 M 32 = 6
Cofactor of b 33 = B 33 = ^− 1h3 + 3 M 33 =− 3
Cofactor of a11 = A11 = ^− 1h1 + 1 M11 = 4


Cofactor of a12 = A12 = ^− 1h1 + 2 M12 =− 3
Cofactor of a21 = A21 = ^− 1h2 + 1 M21 =− 2 Applied Mathematics
Cofactor of a22 = A22 = ^− 1h2 + 2 M22 = 1 CBSE Class XI and XII Commerce
R V A Text Book by NODIA Press
S1 2 3W Based on New Syllabus Released By CBSE
Now, consider the matrix B = S4 5 6W. Then,
SS W
7 8 9W
No Missing Topic No Extra Topic
T X
5 6
Minor of b11 = M11 =
8 9
=− 3 For Teachers
Digital Specimen copy available for evaluation
4 6
Minor of b12 = M12 = =− 6 Whatsapp at 94140 63210
7 9
Hard Specimen Book Available for Teachers who adopt this book
4 5 as Text book and Recommend as Text Book to Students
Minor of b13 = M13 = =− 3
7 8 Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
2 3 whose students have purchased book.
Minor of b21 = M21 = =− 6
8 9
1 3
Minor of b22 = M22 = =− 12
7 9
Page 78 Inverse of Matrix Chap 6

6.2 Important Result 1 3

So, A = =7
−1 4

6.2.1 Result 1 1 −1
and AT = =7
3 4
Let Aij denote the cofactor of aij in A = 6aij@. Then, A =
Hence, AT = A
Sum of product of elements (of any row or column) with
their corresponding cofactors.
6.2.4 Result 4
Illustration :
Let A be a square matrix of order 3. Then,
For any square matrix A of order n , we have kA = kn A
A = a11 A11 + a12 A12 + a13 A13
.
[Expanding along first row]
= a21 A21 + a22 A22 + a23 A23

[Expanding along second row] 6.2.5 Result 5
= a 31 A 31 + a 32 A 32 + a 33 A 33

[Expanding along third row] For any two square matrices A and B of same order, we
= a11 A11 + a21 A21 + a 31 A 31
have AB = A B .
[Expanding along first column]
= a12 A12 + a22 A22 + a 32 A 32

6.2.6 Result 6
[Expanding along second column]
= a13 A13 + a23 A23 + a 33 A 33
For any invertible square matrix A of order n , we have
 [Expanding along third column] A-1 = 1 .
A
PROOF :
6.2.2 Result 2 Given that A is an invertible square matrix of
If elements of a row (or column) are multiplied with order n .
cofactors of any other row (or column), then their sum Then, AA-1 = In
is zero. AA-1 = In
A A-1 = 1 AB = A B
Illustration :
R V
S1 2 3W A-1 = 1
A
Consider the matrix B = S4 5 6W.
SS W
7 8 9W
T X
Then, product of elements of second row with cofactors of EXAMPLE 6.1
third column 1 -2
Write the minors and cofactors of the elements of >
= b21 B13 + b22 B23 + b23 B 33
4 3H


Sol :
= ^4h^− 3h + ^5 h^6 h + ^6 h^− 3h

=0

Click : www.nodia.study/lema/fm101
6.2.3 Result 3
EXAMPLE 6.2
For any square matrix A of order n , we have AT = A Write the minors and cofactors of the elements of
R V
S2 - 3 5 W
S6 0 4 W.
Illustration : SS W
1 3 1 −1 1 5 - 7W
Consider A = > H . Then, AT = >
3 4H
. T X
−1 4

Sol :
Chap 6 Inverse of Matrix Page 79

Click : www.nodia.study/lema/fm102

EXAMPLE 6.3
Using cofactors of elements of first column, evaluate the
4 1
determinant, ∆ = .
−3 2


Sol :

EXAMPLE 6.6
Click : www.nodia.study/lema/fm103 R
Sx 1 2W
V
Find the value(s) of x for which the matrix A = S1 0 3W
SS W
is singular. 5 − 1 4W
EXAMPLE 6.4 T X


Sol :
Find minors and cofactors of each element of second row of
R V
S2 - 4 3 W
S1 6 4 W and hence evaluate its determinant. Click : www.nodia.study/lema/fm106
SS W
5 0 - 2W

T

Sol : X
EXAMPLE 6.7
Let A be a square matrix of order 3 # 3 . Write the value
Click : www.nodia.study/lema/fm104 of 2A , where A = 4 .


Sol :

6.3 Singular Matrix

Click : www.nodia.study/lema/fm107
A square matrix A is said to be singular, if A = 0 . If
A ! 0 , then we say that A is non-singular.
EXAMPLE 6.8
Illustration : If A is a square matrix of order 3, A ! 0 and 3A = k A
, then write the value of k .
1 3 1 2
Let A = > H and B = > H

Sol :
2 6 3 4
1 3
Then, A =
2 6
=0 Click : www.nodia.study/lema/fm108
1 2
and B = =− 2 ! 0 EXAMPLE 6.9
3 4
If a matrix A of order 3 # 3 has determinant 2, then find
the value of A ^8I h .
So, A is a singular matrix and B is a non-singular matrix.

Sol :
EXAMPLE 6.5
Check whether the following matrices are singular or non-
singular.
Click : www.nodia.study/lema/fm109
R V R V
S5 4 - 9W S2 - 1 - 2W
(i) 2 1 - 3 (ii) S0 2
S W - 1W EXAMPLE 6.10
SS W SS W
1 1 - 2W 3 -5 0W If A and B are square matrices of order 3 such that
T X T X


Sol : A =− 1 and B = 3 , then find the value of 7AB .


Sol :

Click : www.nodia.study/lema/fm105
Click : www.nodia.study/lema/fm110
Page 80 Inverse of Matrix Chap 6

EXAMPLE 6.11 6.4 Adjoint of a Matrix

If A and B are square matrices of the same order such
that A = 6 and AB = I , then write the value of B . Let A = 6aij@ be a square matrix of order n . Then, we
define adjoint of A as


Sol :
adj A = 7AijAT
where Aij denotes the cofactor of aij in A.
Click : www.nodia.study/lema/fm111 Illustration :
R V
Sa11 a12 a13W
EXAMPLE 6.12 Let A = Sa21 a22 a23W, then
SS W
If A is a square matrix such that AT A = I , write the value a 31 a 32 a 33W
T R X VT R V
of A . SA11 A12 A13W SA11 A21 A 31W


Sol : adj A = SA21 A22 A23W = SA12 A22 A 32W
SS W SS W
A 31 A 32 A 33W A13 A23 A 33W
T X T X
Click : www.nodia.study/lema/fm112 Note :
For any square matrix A of order n , we have
a. A ^adj Ah = ^adj Ah A = A I
EXAMPLE 6.13
If A is a square matrix and A = 2 , then write the value b. adj A = A n − 1
of AAl , where Al is the transpose of matrix A. c. A ^adj Ah = A n
adj ^adj Ah = A ^n − 1h2


Sol :
d.
e. adj ^kAh = kn − 1 ^adj Ah, for any scalar k
Click : www.nodia.study/lema/fm113
f. adj ^adj Ah = A n−2
A
g. adj ^AT h = ^adj AhT
EXAMPLE 6.14
For any two square matrices A and B (for which AB is
If A is a non-singular square matrix such that A = 5 ,
defined), we have
then find A-1 .


Sol :
adj ^AB h = ^adj Ah^adj B h

EXAMPLE 6.17
Click : www.nodia.study/lema/fm114 2 -1
Find the adjoint of the given matrix >
4 3H
.

EXAMPLE 6.15

Sol :

x 2
If A = > H and A 4 = 625 , find the value(s) of x .
2 x
Click : www.nodia.study/lema/fm117


Sol :

EXAMPLE 6.18
Click : www.nodia.study/lema/fm115 R V
S2 − 1 4 W
Find the adjoint of the given matrix B = S1 2 1 W
SS W
0 3 − 1W
EXAMPLE 6.16 T X
If A is a skew symmetric matrix of order 3, write the value

Sol :
of A .


Sol :
Click : www.nodia.study/lema/fm118
Click : www.nodia.study/lema/fm116
EXAMPLE 6.19
R V
S− 1 − 2 − 2W
If B = S 2 1 − 2W, then prove that adj B = 3BT .
SS W
2 −2 1W
T X
Chap 6 Inverse of Matrix Page 81

Sol :

Click : www.nodia.study/lema/fm119

EXAMPLE 6.20
R V
S1 − 1 2 W
If the matrix A = S3 1 − 2W, find adj A without
SS W
computing adj A. 1 0 3W


Sol :
T X
E X ERCISE 6 . 1
3 4
Click : www.nodia.study/lema/fm120 1. Compute the adjoint of the matrix A = > H and
5 7
verify that (adjA) A = A I .

7 -4
Ans : >
- 5 3H
EXAMPLE 6.21
a b
If A = > H, find adj A and verify that
c d

A ^adj Ah = A I2 = ^adj Ah A . 2 3
2. If A = >
− 4 − 6H
, verify that


Sol :
A (adjA) = (adjA) A = A I2 .
Click : www.nodia.study/lema/fm121 Ans :

EXAMPLE 6.22 1 2 2 0
R V 3. If A = > H and B = > H, then verify that
S3 − 2 3W 3 5 1 5
If A = S2 1 − 1W, find A ^adj Ah without computing adj (AB) = (adjB) (adjA).
SS W
4 − 3 2W Ans :
adj A. T X

Sol : R− 1 − 2 − 2V
S W
4. If A = S 2 1 − 2W, show that adjoint A = 3Al.
Click : www.nodia.study/lema/fm122 SS 2 − 2 1WW
Ans : Proof
T X

EXAMPLE 6.23
2 −3 −1 3 R 1 − 1 1V
If A = > H and B = >
4 0H
, verify that S W
5 1 5. For the matrix A = S 2 3 0W, show that
SS18 2 10WW
adj ^AB h = ^adj B h^adj Ah. A (adjA) = O ]
Ans : T X


Sol :

Click : www.nodia.study/lema/fm123 R1
S 2 3WV
6. Find the adjoint of the matrix S2 3 2W. Also verify
SS3 3 4WW
T X
that: A (adjA) = (adjA) A = A I , where A is the
given matrix.
R 6 1 - 5V
S W
Ans : S- 2 - 5 4W
SS- 3 3 - 1WW
T X
Page 82 Inverse of Matrix Chap 6

7. For the following matrices, verify that: (ii) We have BA = CA

A (adjA) = (adjA) A = A I 3 . ^BAh A-1 = ^CAh A−1 = B ^AA−1h = C ^AA−1h
R 1 - 1 2V R1 - 1 2V BI = CI
S W S W
(i) S 2 3 5W (ii) S3 0 - 2W] B = C
AnsSS-: 2 0 1WW SS1 0 3WW
Result 3
T X T X
A square matrix is invertible if and only if it is non-
8. If A is a square matrix of order 3 # 3 , then prove that singular.
A (adjA) = A I 3 .
PROOF :
Let the square matrix A be invertible.
Necessity:
6.5 Inverse of a Matrix Then there exists a square matrix B such that
AB = BA = I .
Let A be a square matrix of order n . If there exists a
square matrix B of order n such that AB = BA = In , AB = BA = I
then B is called the inverse of A and we write B = A−1 . Determinant of the product of square matrices of same
It is clear from the definition that if B is inverse of order is the product of their determinants. Thus we have
A, then A is inverse of B . A $ B = B $ A = 1
Note : Here the number A is non-zero, for otherwise A $ B
1. The concept of inverse of matrix is defined only for will become zero. Therefore the matrix A is non-singular.
square matrices. Sufficiency: Let A be non-singular. Since A is a square
2. If inverse of A exists, then A is called an invertible matrix, we have
matrix. A ^adj Ah = ^adj Ah A = A I
^ h ^ h
3. The inverse of a square matrix, if it exists, is unique. 1 7A adj A A = 1 7 adj A AA = 1
AI
A A A #
6.5.1 Important Result (Since, A ! 0 , we can divide by A )

Ad n = d nA = I
Result 1 adj A adj A

A A
If A is an invertible matrix, then ^A-1h-1 = A . adj A
Therefore the matrix A is invertible and A-1 = .
A
Hence the result holds.
PROOF : Result 4
We have AA-1 = I = A−1 A If A is an invertible matrix, then ^Alh-1 = ^A−1hl.
This implies that the inverse of A-1 is A, i.e.
^A-1h = A .
-1
PROOF :

Result 2 Since A is an invertible matrix, A-1 exists and we have

AA-1 = A−1 A = I
If A, B , C are square matrices of same order and A is a
non-singular matrix, then ^AA-1hl = ^A−1 Ahl= I l
(i) AB = AC & B = C (Left cancellation law) ^A-1hlAl = Al^A−1hl= I
(ii) BA = CA & B = C (Right cancellation law) ( ^AB hl= BlAl and I l = I )
By definition, ^A h is the inverse of Al,
-1 l

^Alh-1 = ^A−1hl
PROOF :
Thus
(i) Since A is non-singular, A-1 exists.
Result 5
We have AB = AC
A-1 ^AB h = A−1 ^AC h = ^A−1Ah B = ^A−1Ah C The inverse of an invertible symmetric matrix is a
symmetric matrix.
IB = IC
B = C PROOF :
Chap 6 Inverse of Matrix Page 83

Let A be an invertible symmetric matrix. Hence by definition,

Then A ! 0 and Al = A ^AB h-1 = B−1 A−1
By Theorem V, we have ^Alh-1 = ^A−1hl. ^AB h-1 = B−1 A−1 is called the reversal law of inverse
A-1 = ^A−1hl ( Al = A ) of product of matrices.
Therefore A-1 is a symmetric matrix. Result 8

If A and B are invertible matrices of some order, then

adj ^AB h = ^adj B h^adj Ah.
Result 6

If A is an invertible matrix, then ^adj Ah-1 = adj A−1 .

PROOF :

PROOF : A and B are square matrices of same order, therefore AB

adj A is defined. Also, A ! 0 , B ! 0
We have A-1 =
A Now AB = A B ! 0
adj A = A A−1 ...(1) Therefore ^AB h exists.
-1

adj A
AA-1 = I We have A-1 = ,
A
AA-1 = I
adj B
A A-1 = 1 B-1 = ,
B
A-1 ! 0 and A-1 = 1 adj ^AB h
A and ^AB h-1 =
AB
Thus A-1 in non-singular.
adj ^AB h
Now by replacing A by A-1 in (1), we have Now, adj ^AB h = AB
AB #
adj A-1 = A−1 ^A−1h−1 = 1 A ...(2)
A = ^AB−1h^ A B h

Multiplying (1) and (2), we get = ^B−1 A−1h A B

^adj Ah^adj A-1h = _ A A−1id 1 A n =

adj B adj A
$ $A $ B
A B A
= A−1 A = I
Hence adj ^AB h = ^adj B h^adj Ah
Similarly, ^adj A h^adj Ah = I
-1

^ Ah-1 = adj A−1

Working Steps for Finding the Inverse of Square Matrix
Thus by definition, adj
A
Result 7 Step I:
Find the value of A .
If A and B are invertible matrices of same order, then
AB is also invertible and ^AB h-1 = B−1A−1 .
Step II:
If A = 0 , then A cannot have its inverse.
PROOF : Step III:
Since the matrices A and B are invertible , A-1 and B-1 adj A
If A ! 0 , then A has its inverse and is given by .
exist and AA-1 = A−1 A = I , BB-1 = B−1 B = I . And A A
and B are square matrices of same order, therefore AB is Step IV:
defined. Find cofactors of all elements of A and compute adj A.
Also, AB = A $ B ! 0 , because A and B are invertible
Find A-1 by multiplying adj A by 1 .
and so A ! 0 , B ! 0 . A
Therefore AB is invertible, i.e., ^AB h-1 exists.
Now, ^AB h^B-1 A-1h = A ^BB−1h A−1 EXAMPLE 6.24
3 6
= A ^In h A−1 = AA−1 = I
Find the inverse of > H. Also verify your answer.
7 2
^B-1 A-1h^AB h = B−1 ^A−1Ah B
and
= B−1 ^In h B = B−1 B = I


Sol :

Thus ^AB h^B-1 A-1h = ^B−1 A−1h^AB h = I
Page 84 Inverse of Matrix Chap 6

Click : www.nodia.study/lema/fm124 Click : www.nodia.study/lema/fm129

EXAMPLE 6.25 EXAMPLE 6.30

R V
a b
If A = >
dH
such that ad - bc ! 0 , then find the inverse S1 2 4W
c Find the inverse of S3 - 19 7W, if exists.
of A. SS W
2 4 8W


Sol :

Sol : T X

Click : www.nodia.study/lema/fm125 Click : www.nodia.study/lema/fm130

EXAMPLE 6.26 EXAMPLE 6.31

3 −5
If A = >
− 4 2H
3 1 4 0
, verify that A2 − 5A − 14I = O and If A = > H and B = > H, verify that ^AB h-1 = B−1 A−1 .
4 0 2 5
hence find A-1 .

Sol :


Sol :

Click : www.nodia.study/lema/fm131
Click : www.nodia.study/lema/fm126
EXAMPLE 6.32
R V R V
S1 1 2W S1 2 0 W
If A = S0 2 − 3W and B-1 = S0 3 − 1W, find ^AB h-1 .
SS W SS W
3 −2 4 W 1 0 2W
T X T X


Sol :

EXAMPLE 6.27
2 1
Click : www.nodia.study/lema/fm132
If A = > , verify that ^Alh-1 = ^A−1hl.
3 5H


Sol : EXAMPLE 6.33
a b
Find the inverse of the matrix A = >c 1 + bc H and show
Click : www.nodia.study/lema/fm127 that:
a

aA-1 = ^a2 + bc + 1h I2 − aA
EXAMPLE 6.28

Sol :
2 3
If A = >
2H
, verify that:
1 Click : www.nodia.study/lema/fm133
(i) ^adj Ah-1 = adj A−1 (ii) ^A-1h-1 = A
EXAMPLE 6.34


Sol : R V
S0 1 1W 2
Find A-1 if A = S1 0 1W. Also show that A-1 = A − 3I .
SS W 2
Click : www.nodia.study/lema/fm128 T
1 1 0W
X


Sol :

EXAMPLE 6.29
R V
S1 - 1 2 W Click : www.nodia.study/lema/fm134
Find the inverse of the matrix S0 2 - 3W and verify the
SS W
result. 3 -2 4 W
T X


Sol :
Chap 6 Inverse of Matrix Page 85

EXAMPLE 6.35 −4 2 0 3
3. If A−1 = > H and B = >
− 2 5H
R V , find (AB) -1 .
S1 1 1W 3 −1
For the matrix A = S1 2 − 3W, show that - 296 13
SS W Ans : > 4 H
6
2 − 1 3W -3 2
T X 3
3 2 -1
A − 6A + 5A + 11I = O . Hence find A .


Sol :
4. Verify that (AB) −1 = B−1 A−1 , where:

2 −1 4 3
Click : www.nodia.study/lema/fm135 (i) A = >
4 2 H and B = >
− 2 1H
3 7 6 8
(ii) A = > H and B = > H
EXAMPLE 6.36 2 5 7 9
R V
S1 2 2W Ans : Proof
If A = S2 1 2W, find A-1 and hence prove that
SS W
2 2 1W
T X
2
A − 4A − 5I = O . 5. f x , y , z are non-zero real numbers, then show that:


Sol : Rx 0 0V−1 Rx−1 0 0V
S W S W
S0 y 0W = S 0 y−1 0W
SS0 0 z WW S W
Click : www.nodia.study/lema/fm136 Ans : Proof
T X
S 0 0 z−1W
T X

EXAMPLE 6.37 6. Find the inverse (if it exists) of the following matrices:
R V R V R1 2 3V R1 0 0V
S1 p 0W S1 0 0W S W S W
Obtain the inverse of the matrices S0 1 pW and Sq 1 0W. (i) S0 2 4W (ii) S3 3 0W
SS W SS W SS0 0 5WW SS5 2 - 1WW
0 0 1W 0 q 1W
T X T X T X R T XR
R V 10 - 10 2VW - 3 0 0VW
S1 + pq p 0W S S
Hence find the inverse of the matrix S q 1 + pq pW. Ans : (i) 1 S 0 5 - 4W, (ii) - 1 S 3 - 1 0W
10 S 3S
SS
0 q
W
1W S0 0 2WW S- 9 - 2 3WW


Sol : T X T X T X

7. Find the inverse (if it exists) of the following matrices:

R 2 1 3V R1 3 3V
Click : www.nodia.study/lema/fm137 S W S W
(i) S 4 - 1 0W (ii) S1 4 3W
SS- 7 2 1WW SS1 3 4WW
T RX- 1 T XR
S 5 3VW S 7 - 3 - 3VW
Ans : (i) - 1 S- 4 23 12W, (ii) S- 1 1 0W
E X ERCISE 6.2 3S
S 1 - 11 - 6WW SS- 1 0 1WW
T X T X
1. Find the inverse (if it exists) of the following matrices: R3 0 2V
-1 5 2 -2 S W
(i) >
- 3 2H
(ii) >
4 3H
8. If A = S1 5 9W and AB = BA = I , find B .
SS6 4 7WW
2 -5 3 2
Ans : (i) 1 > H (ii) 1 >
14 - 4 2H
T R X
13 3 - 1 S -1 8 - 10VW
Ans : - 1 S 47 9 - 25W
55 S
S- 26 - 12 15WW
T X
3 2 6 7
2. If A = > H and B = > H, find (AB) -1 . R V
7 5 8 9 S2 0 − 1W
- 47 9. If A = S5 1 0W, show that
Ans : >
41 - 17H
39
2 SS0 1 3WW
T X
A−1 = A2 − 6A + 11I .
Ans :
Page 86 Inverse of Matrix Chap 6

R1 2 2V
S W
10. If A = S2 1 2W, show that A2 − 4A − 5I = O
SS2 2 1WW
T X
and hence find A-1 .
R- 3 2 2V
S W
Ans : 1 S 2 - 3 2W
5S
S 2 2 - 3WW
T X

******

Applied Mathematics
CBSE Class XI and XII Commerce
A Text Book by NODIA Press
Based on New Syllabus Released By CBSE
No Missing Topic No Extra Topic

For Teachers
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whose students have purchased book.
Chap 7 Application of Matrices Page 87

CHAPTER 7

Application of Matrices

7.1 Introduction
Regular Honest Respectful
Matrices and determinants are powerful tools in modern A 25 20 30
mathematics, which have a wide range of application. B 12 10 10
Sociologists use matrices to study the dominance within
C 7 15 5
a social group or society. Demographers make use of
matrices to study survival of mankind, marriage and The same activity was carried out in section Q of class
decent structure. Business mathematics, economist, XII of the same school and the following information was
artificial intelligence coding and networking models are received.
a few examples that function on the concept of matrix Regular Honest Respectful
and determinant. The study of communication theory
A 35 16 38
and electrical engineering as the network analysis is also
aided by the use of matrix representation. In this section B 10 20 7
we will study some application of matrix addition or C 8 12 3
multiplication. Represent the above information in the matrix form and
use matrices to find how many students got A grade in the
three values ?


Sol :

Click : www.nodia.study/lema/gm102
EXAMPLE 7.1
EXAMPLE 7.3
A publishing house has two branches. In each branch there
Two farmers Ramkishan and Gurcharan Singh cultivate
are three offices. In each office, there are 2 peons, 5 clerks
only three varieties of rice namely Basmati, Permal and
and 3 typists. In one office of a branch, 5 salesmen are also
Naura. The sale (in `) of these varieties of rice by both the
working. In each office of other branch 2 head-clerks are
farmers in the month of September and October are given
also working. Using matrix notations find :
by the following matrices A and B .
(i) the total number of posts of each kind in all the offices
September Sales (in `)
taken together in each branch.
(ii) the total number of posts of each kind in all the offices Basmati Permal Naura
10000 20000 30000 Ramkishan
A = >
50000 30000 10000H Gurcharan Singh
taken together from both branches.



Sol :

October Sales (in `)

Click : www.nodia.study/lema/gm101 Basmati Permal Naura
5000 10000 6000 Ramkishan
B = >
10000H Gurcharan Singh

20000 10000
EXAMPLE 7.2
In section P of class XII of a particular school students (i) Find the combined sales in September and October
were asked to grade each student under value Regular, for each farmer in each variety.
Honest, Respectful. Grades are to be given as A, B, C. The (ii) Find the decrease in sales from September to October.
following information was received (iii) If both farmers receive 2% profit on gross sales,
Page 88 Application of Matrices Chap 7

compute the profit for each farmer and for each variety ways : telephone, house calls, and letters. The cost per
sold in October. contact (in paise) is given in matrix A as


Sol : cost per contact
R V
S 40 W Telephone
Click : www.nodia.study/lema/gm103 A = S100W Housecall
SS 50 WW
Letter
T X
The number of contacts of each type made in two cities X
EXAMPLE 7.4 and Y is given by
There are two families A and B . There are 4 men, 6 women Telephone Housecall Letter
and 2 children in family A and 2 men, 2 women and 4 1000 500 5000 " X
B = >
10000H" Y
children in family B . The recommended daily allowance
3000 1000
for calories is: Men : 2400 gm, Women : 1900 gm, Children
: 1800 gm and for proteins is: Men : 55 gm, Women : 45 Find the total amount spent by the group in the two cities
gm, Children : 33 gm. X and Y .
Calculate the total requirement of calories and

Sol :
proteins for each of the two families. Represent the above
information by matrices. Using the matrix multiplication,
calculate the total requirements of calories and proteins
Click : www.nodia.study/lema/gm107
for each of the two families.


Sol :

Click : www.nodia.study/lema/gm104

EXAMPLE 7.5
Astha and Beena went to Big Bazar. Astha purchased
2 pairs of jeans, 5 tops and 2 pairs of footwears. Beena
purchased 3 pairs of jeans, 4 tops and 1 pair of footwear. EXAMPLE 7.8
If a pair of jeans costs ` 550, Top costs ` 145 and a pair of Three firms A, B and C supplied 40, 35 and 25 truck
footwear costs ` 125, calculate the total amount spent by loads of stones and 10, 5, 8 loads of sand respectively to
Astha and Beena in the Big Bazar. a contractor. If the cost of stone and sand are ` 1200 and


Sol : ` 500 per truck load respectively, find the total amount
paid by the contractor to each these firm by using matrix
method.
Click : www.nodia.study/lema/gm105

Sol :

EXAMPLE 7.6
Click : www.nodia.study/lema/gm108
The bookshop of a particular school has 10 dozen chemistry
books, 8 dozen physics books, 10 dozen economics books.
Their selling prices are ` 80, ` 60 and ` 40 each respectively. EXAMPLE 7.9
Find the total amount the bookshop will receive from There are two families A and B . In family A, there
selling all the books using matrix algebra. are 2 men, 3 women, and one child. In family B , there


Sol : are 1 man, 2 women and 2 children. The recommended
daily allowance for calories is : Man-2400, Women-1900,
Child-1800 and proteins : Man- 55 gm , Women- 45 gm ,
Click : www.nodia.study/lema/gm106 Child- 33 gm . Represent the above information by matrices.
Using matrix algebra, calculate the total requirement of
EXAMPLE 7.7 calories and protein for each of two families.
In a legislative assembly election, a political group hired

Sol :
a public relations firm to promote its candidate in three
Chap 7 Application of Matrices Page 89

Click : www.nodia.study/lema/gm109 E X ERCISE 7 . 1

1. A bicycle company has two branches whose daily
EXAMPLE 7.10 productions are given below:
The weekly production figures of a motor corporation
having two types of factories are as follows : 3 speed 5 speed 10 speed
Branch 1 40 120 150
Factory A Factory B
Branch 2 60 175 100
Buses 20 30
Express the given information as a matrix. Using
Trucks 40 10
multiplication of a scalar times a matrix, find the new
The corporation has 5, A type factories and 7, B type daily productions if production is to double.
factories. Buses and trucks sell at ` 50000 and ` 40000 80 240 300
Ans : >
respectively. Estimate the total weekly production of buses 120 350 200H
and trucks and the total market value of vehicles produced
each week.


Sol : 2. A man buys 8 dozen mangoes, 10 dozen of apples and
4 dozen of bananas. Mangoes cost ` 18 per dozen,
apples ` 15 per dozen and banana ` 12 per dozen.
Click : www.nodia.study/lema/gm110 Represent the quantities bought by a row matrix and
prices by a column matrix. Using matrix multiplication,
EXAMPLE 7.11 determine the total amount spent by the man.
A manufacturer produces three products x , y , z which he Ans : ` 342
sells in two markets. Annual sales are indicated below:
Market Product x Product y Product z
3. The prices of three commodities A, B and C in a shop
I 10000 2000 18000 are ` 5, ` 6 and ` 10 respectively. Customer X buy 8
II 6000 20000 8000 units of A, 7 units of B and 8 units of C . Customer Y
(a) If unit sale prices of x , y and z are ` 2.50, ` 1.50 buys 6 units of A, 7 units of B and 8 units of C . Show,
and ` 1.00, respectively. find the total revenue in each in matrix notation, the prices of the commodities,
market with the help of matrix algebra. quantities bought and the amount spent.
R V
(b) If the unit costs of the above three commodities are S5W 8 7 8 162
` 2.00, ` 1.00 and 50 paise respectively. Find the gross Ans : S 6 W, > H , > H
SS WW 6 7 8 152
profit. 10
T X


Sol :
4. A company has two plants. Plant 1 is capable of
producing 5 items of A, 10 items of B and 3 items
Click : www.nodia.study/lema/gm111 of C per one hour of operation. Plant 2 is capable of
producing 5 items of A, 6 items of B and 6 items of
EXAMPLE 7.12 C per one hour of operation. Express this information
Three shopkeepers A, B and C go to a store to buy in a 3 # 2 matrix. Using matrix multiplication,
stationery. A purchase 12 dozen note-books, 5 dozen pens determine the total number of items A, B and C
and 6 dozen pencils. B purchase 10 dozen note-books, produced if Plant 1 is operated for 10 hours and Plant
6 dozen pens and 7 dozen pencils. C purchase 11 dozen 2 is operated for 5 hours.
note-books, 13 dozen pens and 8 dozen pencils. A note Ans : A = 75 units, B = 130 units, C = 60 units
book costs 40 paise, a pen costs ` 1.25 and a pencil costs
35 paise. Use matrix multiplication to calculate each
individual’s bill. 5. A factory produces 3 types of portable radio sets called


Sol : Audio 1, Audio 2 and Audio 3. Audio 1 contains 1
transistor, 10 resistors and 5 capacitors, while Audio
2 contains 2 transistors, 18 resistors and 7 capacitors,
Click : www.nodia.study/lema/gm112
Page 90 Application of Matrices Chap 7

and Audio 3 contains 3 transistors, 24 resistors and 10 (Use of Matrix-Algebra is required).

capacitors. Represent these information in the form of Ans : College canteen
a matrix. Using matrix multiplication, calculate the
factory’s weekly consumption of transistors, resistors
and capacitors, if weekly output of sales is 100 of 9. There are three electric dealers in a pure competition
Audio 1250 of Audio 2 and 80 of Audio 3. market who sell Radios, Tape recorders and Television
Ans : Transistors : 840, Registors : 7420, Capacitors sets. A sells weekly 48 radios, 20 tape recorders and
: 3050 12 television sets; B sells weekly 57 radios, 17 tape
recorders and 15 television sets, and C sells weekly 35
radios, 22 tape recorders and 18 television sets. Using
6. Three person buy cold drinks of different brands A, B matrices, calculate their individual profits, if the net
and C . The first person buys 12 bottles of A, 5 bottles revenue on a radio is ` 50, on a tape recorder ` 75 and
of B and 3 bottles of C . The second person buys 4 on a television set ` 250.
bottles of A, 6 bottles of B and 10 bottles of C . The Ans : ` 6900, ` 7875, ` 7900
third person buys 6 bottles of A, 7 bottles of B and 9
bottles of C . Represent these information in the form
of a matrix. If each bottle of brand A costs ` 4, each 10. Two television companies TV1 and TV2 , both televise
bottle of B costs ` 5 and each bottle of C costs ` 6, documentary programmes and variety programmes.
then using matrix operations, find the total sum of TV1 has two transmitting stations and TV2 has three
money spent individually by the three persons for the transmitting stations, all stations transmit different
purchase of cold drinks. programmes. On an average, each TV1 station
Ans : ` 91, ` 106, ` 113 broadcasts 1 hour of documentary and 3 hours of
variety programmes each day, whereas each TV2 station
broadcasts 2 hours of documentary and 1 12 hours
7. There are two families X and Y . Family X has 2 men, of variety programmes each day. The transmission
3 women and one child, while family Y has one of documentary and variety programmes costs
man, one woman and two children. Their approximately ` 50 and ` 200 per hour respectively.
individual daily requirements are as follows: Express, in matrix form and hence evaluate:
(i) the daily cost of transmission from each TV1 and
Calories Protein
each TV2 station.
Man 2400 55 (ii) the total number of hours which are devoted daily
Woman 1900 45 to documentary and to variety programmes by both
Child 1800 33 companies.
(iii) the total daily cost of transmission incurred
Present the above information in the form of matrices.
by both companies.
Using matrix multiplication, calculate the total daily
Ans : (i) ` 650, ` 400, (ii) Documentary : 8 hours,
requirements of calories and protein for each of the
Variety : 10.5 hours, (iii) ` 2500
two families.
Ans : Family X : 12300 calories and 278 gms protein;
Family Y : 7900 calories and 166 gms protein

7.2 Leontief input-output model

8. A student has 4 places where he can have his lunch.
The college canteen charges ` 9 for a cold drink, The economy of any country is the large set of inter-
` 6 for a cutlet and ` 5 for a sandwich. The coffee related production, consumption, and exchange activities.
house charges ` 10, ` 8 and ` 9 for the same items, It is dependent on many sectors which are interlinked with
while fast food joint charges ` 12, ` 15, ` 15 and the each other. In this section we try to learn whether the
restaurant charges ` 15, ` 25 and ` 20 for the above interlinks are viable or not. If the system is viable then try
items respectively. The student wants to have one cold to find the interlink inputs based on the demand in the
drink, two cutlets and one sandwich. Where should he market. Many sectors are sharing their resources and try
have his lunch so that the lunch costs him the least? to become self-sufficient and independent.
Chap 7 Application of Matrices Page 91

Input–Output analysis is a technique which was − a21 x1 + (1 − a22) x2 = d2

invented by Prof. Wassily W. Leontief. Input–Output The matrix form of the above equations is
analysis is a form of economic analysis based on the 1 - a11 - a12 x1 d1
interdependencies between economic sectors. The method > H> H = > H
- a21 1 - a22 x2 d2
is most commonly used for estimating the impacts of
*>0 1H - >a a H4>x H = >d H
positive or negative economic shocks and analyzing the 1 0 a11 a12 x1 d1

ripple effects throughout an economy. 21 22 2 2

The foundation of Input–Output analysis involves (1 - B) X = D

input–output tables. Such tables include a series of rows a11 a12
A = >
a21 a22H
and columns of data that quantify the supply chain for where
sectors of the economy. Industries are listed in the heads
1 0
of each row and each column. The data in each column I = > H
corresponds to the level of inputs used in that industry’s 0 1
production function. For example the column for auto x1
manufacturing shows the resources required for building X = > H
x2
automobiles (ie., requirement of steel, aluminum, plastic,
d1
electronic etc.,). Input–Output models typically includes and D = > H
separate tables showing the amount of labour required per d2
rupee unit of investment or production. Solving we get, X = (I − A) −1 D
Consider a simple economic model consisting of two The matrix B is known as the technology matrix.
industries A1 and A2 where each produces only one type
The Hawkins–Simon Conditions
of product. Assume that each industry consumes part of
its own output and rest from the other industry for its Hawkins–Simon conditions ensure the viability of the
operation. The industries are thus interdependent. Further system. If A is the technology matrix then Hawkins–Simon
assume that whatever is produced that is consumed. That conditions are
is the total output of each industry must be such as to (i) The main diagonal elements in I - A must be positive
meet its own demand, the demand of the other industry .
and the external demand (final demand). (ii) I - A must be positive.
Our aim is to determine the output levels of each
of the two industries in order to meet a change in final EXAMPLE 7.13
demand, based on knowledge of the current outputs of the The input-output coefficient matrix for 2-sector economy
two industries, of course under the assumption that the 0.10 0.5
is A = >
structure of the economy does not change. 0.20 0.25H
Let bij be the rupee value of the output of Bi consumed
If the final demands for two industries are 300 and 100
by B j , i , j = 1, 2 . Let x1 and x2 be the rupee value of the
units, find the total output.
current outputs of B1 and B2 respectively. Let d1 and d2 be
the rupee value of the final demands for the outputs of B1

Sol :

and B2 respectively.
The assumptions lead us to frame the two equations Click : www.nodia.study/lema/gm113
b11 + b12 + d1 = x1
b21 + b22 + d2 = x2 ...(1)
EXAMPLE 7.14
b 0.4 0.1 400
aij = ij , i, j = 1, 2
Given A = > H and final demand D = > H. Calculate
Let
xj
0.7 0.6 200
Thus a11 = b11 , a12 = b12 , a21 = b21 and a22 = b22 x1
x1 x2 x1 x2 the gross output > H using input output technique.
x2
The equations (1) take the form

Sol :
a11 x1 + a12 x2 + d1 = x1
a21 x1 + a22 x2 + d2 = x2 Click : www.nodia.study/lema/gm114
The above equations can be rearranged as
(1 - a11) x1 - a12 x2 = d1
Page 92 Application of Matrices Chap 7

EXAMPLE 7.15 as follows:

The input-output coefficient matrix for 2-sector economy
0.4 0.25 Receiving Sectors Final
is A = >
0.2 0.5 H
. The final demands for two industries Producing Sectors
Steel Coal Demand

are 18 and 44 units respectively. Find the gross output of Steel 29.50 17.50 100
these two industries. Coal 58.25 8.75 20


Sol : (i) Find the total output of sectors.
(ii) Find the technical coefficients.
Click : www.nodia.study/lema/gm115 (iii) Find the matrix of technical coefficients.
(iv) Find the Leontief matrix.
(v) Verify Simon-Hawkins conditions for the viability of
EXAMPLE 7.16 this system.
For the following input-output table, calculate the

Sol :
technology matrix and write the balance equations for the
two sectors :
Click : www.nodia.study/lema/gm118
Output Input Final Demand
A B
A 50 150 200
B 100 75 100
Does a solution exist for the system?


Sol :

Click : www.nodia.study/lema/gm116
EXAMPLE 7.19
EXAMPLE 7.17 For a two-sector economy with production sectors X and
For a two-sector economy with production sectors X and Y , the inter-sectoral demand and final demand are as
Y , the inter-sectoral demand and final demand are as follows:
follows: Receiving sectors
Producing sectors Final demand
Input X Y
Output Final Demand
X Y X 570 4000 1100
X 30 40 50 Y 3400 2400 2200
Y 20 10 30 (i) Find the total output of sectors X and Y .
(i) Find the total output of sectors X and Y . (ii) Find the technical coefficients.
(ii) Find the technical coefficients. (iii) Find the matrix of technical coefficients.
(iii) Find the matrix of technical coefficients. (iv) Find the Leontief matrix.
(iv) Find the Leontief matrix. (v) Verify Simon-Hawkins conditions for the viability of
(v) Verify Simon-Hawkins conditions for the viability of this system.
this system.

Sol :


Sol :

Click : www.nodia.study/lema/gm119
Click : www.nodia.study/lema/gm117
EXAMPLE 7.20
EXAMPLE 7.18 Suppose the inter-industry flow of the products of two
For a two-sector economy with production sectors steel industries are given as under:
and coal, the inter-sectoral demand and final demand are
Chap 7 Application of Matrices Page 93

Production Receiving sectors Domestic Total Output Input

sector X Y Demand Output Steel Coal
X 30 40 50 120 Steel 0.4 0.1
Y 20 10 30 60 Coal 0.7 0.6
Determine the technology matrix and test Simon- If the final demand targets are ` 50 crores in steel and
Hawkins conditions for the viability of this system. ` 100 crores in coal, determine the output of each industry.
If the domestic demand changes to 80 and 40 units Also construct an input-output table for the economy.
respectively, what should be the gross output of each sector

Sol :
in order to meet the new demands?

Click : www.nodia.study/lema/gm123


Sol :

Click : www.nodia.study/lema/gm120
EXAMPLE 7.24
Find the demand vector which is consistent with the input-
EXAMPLE 7.21 1 3
output coefficient matrix given by A = > H and output
4 8
1 1
Given the following transformation matrix 2 4
200
vector = > H
Producing Receiving sectors Final Demand 200
Sectors Agriculture Industry

Sol :
Agriculture 300 600 100
Industry 400 1200 400 Click : www.nodia.study/lema/gm124
Find the gross output to meet the final demand of 200
units of agriculture and 800 units of industry.


Sol : EXAMPLE 7.25
The input-output coefficient matrix for a 2-industry
Click : www.nodia.study/lema/gm121 economy is given by :
Input
Output
EXAMPLE 7.22 X1 X2
The following table gives the input-output coefficients X1 0.3 0.3
for a two sector economy consisting of agriculture and X2 0.4 0.6
manufacturing industry: Labour 0.3 0.1
Input Agriculture Manufacturing If the final demand for two industries are 90 and 520 units,
Industry find the gross output of each industry to meet the final
Agriculture 0.10 1.50 demand. Also find the labour requirements.
Manufacturing 0.20 0.25

Sol :

The final demand for the two industries are 300 and
100 units respectively. Find the gross output of the two Click : www.nodia.study/lema/gm125
industries.


Sol :
EXAMPLE 7.26
The input-output coefficient matrix for 2-sector economy
Click : www.nodia.study/lema/gm122 0.1 0.3
is A = >
0 0.2H
. The final demands for two industries

are 350 and 350 units respectively. Find the gross output
EXAMPLE 7.23
of these two industries.
You are given the following technology matrix for a two
industry economy:


Sol :
Page 94 Application of Matrices Chap 7

Click : www.nodia.study/lema/gm126 3. The technology matrix of an economic system of two

0.50 0.25
industries is >0.40 0.67H . Test whether the system is
EXAMPLE 7.27 viable as per Hawkins-Simon conditions.
An economy produces only coal and steel. The two Ans : It is viable
commodities serve as intermediate inputs in each other’s
production. 0.4 tonne of steel and 0.7 tonne of coal are
needed to produce a tonne of steel. Similarly 0.1 tonne of
4. Two commodities A and B are produced such that 0.4
steel and 0.6 tonne of coal are required to produce a tonne
tonne of A and 0.7 tonne of B are required to produce
of coal. No capital inputs are needed. If the economy needs
a tonne of A . Similarly 0.1 tonne of A and 0.7 tonne of
400 tonnes of steel and 200 tonnes of coal, calculate the
B are needed to produce a tonne of B . Write down the
gross output of the two commodities.
technology matrix. If 68 tonnes of A and 10.2 tonnes


Sol :
of B are required, find the gross production of both
of them.
Click : www.nodia.study/lema/gm127 Ans : A = 27.82 tonnes, B = 98.91 tonnes

EXAMPLE 7.28
5. Suppose the inter-industry flow of the product of two
For the following input-output table, calculate the industries are given as under.
technology matrix and also write the balance equations Production Consumption D o m e s t i c T o t a l
for the two sectors: sector sector demand output
Output Input Final Demand X Y
A B X 30 40 50 120
A 50 150 200 Y 20 10 30 60
B 100 75 100 Determine the technology matrix and test Hawkin’s-
Simon conditions for the viability of the system. If


Sol :
the domestic demand changes to 80 and 40 units
respectively, what should be the gross output of each
Click : www.nodia.study/lema/gm128 sector in order to meet the new demands.
Ans : 181.62, 84.32

6. You are given the following transaction matrix for a

E X ERCISE 7.2 two sector economy.
Sector Sales Final demand Gross output
1. The technology matrix of an economic system of two
0.50 0.30 1 2
industries is >0.41 0.33H . Test whether the system is
1 4 3 13 20
viable as per Hawkins Simon conditions. 2 5 4 3 12
Ans : It is viable
(i) Write the technology matrix
(ii) Determine the output when the final demand for
the output sector 1 alone increases to 23 units.
2. The technology matrix of an economic system of two
0.6 0.9
Ans : 34.16, 17.31
industries is >0.20 0.80H . Test whether the system is

viable as per Hawkins-Simon conditions.

Ans : It is not viable 7. Suppose the inter-industry flow of the product of two
sectors X and Y are given as under.
Chap 7 Application of Matrices Page 95

Production Consumption D o m e s t i c G r o s s
sector sector demand output
X Y
X 15 10 10 35
Y 20 30 15 65
Find the gross output when the domestic demand
changes to 12 for X and 18 for Y .
Ans : 42 and 78

8. The technology matrix of an economic system of two

0.8 0.2
industries is >0.9 0.7H . Test whether the system is viable

as per Hawkins – Simon conditions.

Ans : It is not viable

9. The following inter – industry transactions table was Applied Mathematics

constructed for an economy of the year 2016.
CBSE Class XI and XII Commerce

A Text Book by NODIA Press
Industry 1 2 F i n a l T o t a l Based on New Syllabus Released By CBSE
consumption output
No Missing Topic No Extra Topic
1 500 1600 400 2500
2 1750 1600 4650 8000
Labours 250 4800 For Teachers
Construct technology co-efficient matrix showing Digital Specimen copy available for evaluation
direct requirements. Does a solution exist for this Whatsapp at 94140 63210
system. Hard Specimen Book Available for Teachers who adopt this book
0.2 0.2
Ans : >0.7 0.2H this system has a solution. as Text book and Recommend as Text Book to Students
Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
whose students have purchased book.

10. In an economy there are two industries P1 and P2 and

the following table gives the supply and the demand
position in crores of rupees.
Production Consumption F i n a l G r o s s
sector sector demand output
P1 P2
P1 10 25 15 50
P2 20 30 10 60
Determine the outputs when the final demand changes
to 35 for P1 and 42 for P2 .
Ans : The output of industry P1 should be ` 150
crores and P2 should be ` 204 crores.
Page 96 Solution of Simultaneous Equations Chap 8

CHAPTER 8

Solution of Simultaneous Equations

8.1 System of simultaneous equations Let D be the determinant of the coefficients of x and y , and
Let a system of simultaneous linear equations be D1 , D2 be the determinants obtained from D by replacing
the coefficients of x , y respectively by the constant terms
a 1 x + b 1 y + c 1 z = d 1
i.e.
a2 x + b2 y + c2 z = d2 ...(1)
a1 b 1
a 3 x + b 3 y + c 3 z = d 3 D =
a2 b2
A set of values of the unknowns x , y , z which satisfy c1 b1
all the three equations simultaneously is called a solution D 1 =
c2 b2
of the system (1). For example, x = 1, y = 2 , z = 1 is a
solution of the system of equations a1 c 1
and D 2 =
a2 c2
6x + y − 3z = 5
x + 3 y − 2z = 5 a1 b 1 a1 x b 1
Then, xD = x =
a2 b2 a2 x b2
2x + y + 4z = 8
If d1 = d2 = d 3 = 0 in (1), then the system is said to be (Operate C1 " C1 + yC 2 )
homogeneous, otherwise, it is called non-homogeneous. a1 x + b1 y b 1
=

If a system of linear equations has one or more a2 x + b2 y b2
solutions, then the system is said to be consistent, c1 b1
otherwise, it is called inconsistent. =
(Using (1))
c2 b2
A non-homogeneous system of linear equations may
have = D1
1. a unique solution, the system is consistent and Similarly, we shall obtain yD = D2 .
independent. This, if D ! 0 , then the system of linear equations
2. infinite number of solutions, the system is consistent (1) has a unique solution given by
and dependent. x = D1 and y = D2
3. no solution, the system is inconsistent. D D
Conditions for Consistency of a (non-homogeneous) system
of Two Linear Equations in Two Unknowns
The following three cases arise :
1. If D ! 0 , the system is consistent and independent,
and has a unique solution given by x = D1 , y = D2 .
D D
2. If D = 0 and either of D1 , D2 is non-zero, then the
system is inconsistent and it has no solution.
8.2 Determinant method (Cramer rule) 3. If D = D1 = D2 = 0 , then the system is consistent and
dependent, and has infinitely many solutions.
8.2.1 Solution of Two Linear Equations Note :
Let the (non-homogeneous) system of two linear equations In fact, the given equations represent two straight
in two unknowns be lines. Three cases arise :
3
a 1 x + b 1 y = c 1 1. If the lines intersect, the given system has unique
a2 x + b2 y = c2 ...(1) solution.
Chap 8 Solution of Simultaneous Equations Page 97

2. If the lines are parallel, the given system has no EXAMPLE 8.5
solution. Solve the equations by Cramer’s rule (OR using
3. If the lines coincide, the given system has infinitely determinants):
many solutions. 3 + 2 = 5 and 4 − 1 = 3 .
x−2 y−3 x−2 y−3


Sol :
EXAMPLE 8.1
Using Cramer’s rule, solve the following systems of linear
equations:
Click : www.nodia.study/lema/hm105
2x + 3y = 10
x + 6y = 4
8.2.2 Solution of Three Linear Equations


Sol :
Let the (non-homogeneous) system of three linear equations
in three unknowns be
Click : www.nodia.study/lema/hm101 a 1 x + b 1 y + c 1 z = d 1
a2 x + b2 y + c2 z = d2 ...(1)
a 3 x + b 3 y + c 3 z = d 3
EXAMPLE 8.2
Using Cramer’s rule, solve the following systems of linear Let D be the determinant of the coefficients of x , y
equations: and z and D1 , D2 and D 3 be the determinants obtained from

^a + b h x − ^a − b h y = 4ab
D by replacing the coefficients of x , y and z respectively

by the constant terms i.e.
^a − b h x + ^a + b h y = 2 ^a2 − b2h
a1 b 1 c1 d1 b 1 c1


Sol :
D = a2 b2 c2 and D1 = d2 b2 c2
a3 b3 c3 d3 b3 c3
Click : www.nodia.study/lema/hm102
a1 d1 c 1 a1 b 1 d1
D 2 = a 2 d 2 c 2 , D 3 = a 2 b 2 d 2
a3 d3 c3 a3 b3 d3
EXAMPLE 8.3
a1 b 1 c1 a1 x b 1 c1
Which of the following equations are consistent ? If
Then, xD = x a2 b2 c2 = a2 x b2 c2
consistent, solve them:
a3 b3 c3 a3 x b3 c3
2x - y = 5
(Operate C1 " C1 + yC 2 + zC 3 )
4x - 2y = 7


Sol : a1 x + b1 y + c 1 z b1 c1
= a2 x + b2 y + c2 z
b2 c2
a3 x + b3 y + c3 z b3 c3
Click : www.nodia.study/lema/hm103
d1 b 1 c1
= d2 b2 c2
(using (1))
d3 b3 c3
EXAMPLE 8.4
Which of the following equations are consistent ? If = D1
consistent, solve them: Similarly, we shall obtain

x + 2y = 5 yD = D2 and zD = D 3
Thus, if D ! 0 , then the system of linear equations (1) has
3x + 6y = 15
a unique solution given by


Sol :
x = D1 , y = D2 and z = D 3
D D D
Click : www.nodia.study/lema/hm104 Note :
1. The above method of solving a system of three linear
Page 98 Solution of Simultaneous Equations Chap 8

equations in three unknowns can be extended in the

Sol :

same way to solve a system of n linear equations in n
unknowns. Click : www.nodia.study/lema/hm107
2. It may be noted that the constant terms in the given
equations are on the right hand side.
Conditions for Consistency of a (non-homogeneous)System
of Three Linear Equations in Three Unknowns : EXAMPLE 8.8
The following three cases arise : The voltages in an electric circuit are related by the
1. If D ! 0 , the given system is consistent and following equations:
independent, and has a unique solution given by V1 + V2 + V3 = 9 , V1 − V2 + V3 = 3 , V1 + V2 − V3 = 1. Find
V1 , V2 , V3 using Cramer’s rule.
x = D1 , y = D2 and z = D 3

Sol :
D D D
2. If D = 0 and atleast one of D1 , D2 , D 3 is non-zero,
then the system is inconsistent and it has no solution. Click : www.nodia.study/lema/hm108
3. If D = D1 = D2 = D 3 = 0 , then the system may or may
not be consistent. In case the system is consistent,
then it will have an infinite number of solution and
the system is dependent. EXAMPLE 8.9
Using Cramer’s rule find the quadratic defined by
f ^x h = ax2 + bx + c
Applied Mathematics if f ^1 h = 0 , f ^2 h =− 2 and f ^3h =− 6
CBSE Class XI and XII Commerce

Sol :
A Text Book by NODIA Press
Based on New Syllabus Released By CBSE Click : www.nodia.study/lema/hm109
No Missing Topic No Extra Topic

For Teachers EXAMPLE 8.10

Using determinants, show that the following system of
Digital Specimen copy available for evaluation
linear equations is inconsistent:
Whatsapp at 94140 63210
Hard Specimen Book Available for Teachers who adopt this book 3x − y + 2z = 3
as Text book and Recommend as Text Book to Students 2x + y + 3z = 5
Word file of All Questions available also for Teachers x - 2y - z = 1
Hard Specimen book will be given to those teachers only
whose students have purchased book.

Sol :

Click : www.nodia.study/lema/hm110
EXAMPLE 8.6
The following equations are obtained in an electrical
experiment. Find I 3 by Cramer’s rules:
4I1 − 3I2 = 2 , 9I2 − 4I 3 = 3I1 , − 4I2 + 9I 3 = 0 . EXAMPLE 8.11


Sol : Using determinants, find whether the system x − 3y + 5z = 4
, 2x − 6y + 10z = 11, 3x − 9y + 15z = 12 is consistent or
not.
Click : www.nodia.study/lema/hm106

Sol :

Click : www.nodia.study/lema/hm111
EXAMPLE 8.7
Find z using Cramer’s rule, if
x + 2y + 3z = 6 , 2x + 4y = 7 − z , 3x + 9z = 14 − 2y.
Chap 8 Solution of Simultaneous Equations Page 99

EXAMPLE 8.12 Ans : x =− 16/11, y =− 10/11

By using determinants, solve the following system of linear
equations.
x + y + z = 1 3x + ay = 4
6.
x + 2 y + 3z = 4 2x + ay = 2, a ! 0
x + 3 y + 5z = 7 Ans : x = 2 , y =− 2/a


Sol :

Click : www.nodia.study/lema/hm112 3x − 4y + 5z =− 6
7. x + y − 2z =− 1
2x + 3y + z = 5
Ans : x =− 1, y = 2 , z = 1

2x + 3y + 4z = 8
8. 3x + y − z =− 2
4x − y − 5z =− 9
Ans : x = 1, y =− 2 ,z = 3

3x − 4y + 2z =− 1
9. 2x + 3y + 5z = 7
E X ERCISE 8.1 x+z = 2
Ans : x = 3 , y = 2 , z =− 1
Solve the following equations using Cramer’s rule
2x − y = 17
1.
3x + 5y = 16 3x + 4y + 2z = 8
Ans : x = 7 , y =− 3 10. 2y − 3z = 3
x − 2y + 6z =− 2
Ans : x =− 2 , y = 3 , z = 1
x + 2y = 1
2.
3x + y = 4
Ans : x = 7/5 , y =− 1/5

8.3 Inverse Matrix method

8x − 3y = 14
3. Solution of a system of linear equations by using inverse
2x + 9y = − 3
of a matrix is called matrix method. Let the system of
Ans : x = 3/2 , y =− 2/3
simultaneous linear equations be

a 1 x + b 1 y + c 1 z = d 1
5x + 7y = − 2 a2 x + b2 y + c2 z = d2 ...(1)
4.
4x + 6y = − 3
a 3 x + b 3 y + c 3 z = d 3
Ans : x = 9/2 , y =− 7/2
The system of linear equations can be written as a single
matrix equation
2x − y = − 2 AX = B
5.
3x + 4y + 8= 0
Page 100 Solution of Simultaneous Equations Chap 8

R V R V R V
Sa1 b1 c1W Sx W Sd1W 8.3.1 Criterion for Consistency or Inconsistency
where A = Sa2 b2 c2W, X = Sy W and B = Sd2W We given below criterion (without proof) for consistency
SS W SS WW SS WW
a 3 b 3 c 3W z d3 or inconsistency of a system of n non-homogeneous linear
T X T X T X
The matrix A is called the coefficient matrix of the system equations in n unknowns given by the matrix equation
of linear equations. AX = B .
Solution of a System of Linear Equations 1. If A ! 0 , then the system is consistent and it has a
unique solution given by X = A−1 B .
2. If A = 0 and ^adj Ah B = O , the system is consistent
In particular, if A is non-singular i.e., A ! 0 , then the
given system has a unique solution X = A−1 B .
and has infinitely many solutions.
PROOF : 3. If A = 0 and ^adj Ah B !O , the system is inconsistent.
As A is non-singular, A-1 exists.
Note :
Now AX = B & A-1 ^AX h = A−1 B
In case 2 above, we assume that adj A !O . However, if
(Pre-multiplying by A-1 ) adj A = O , then the system may or may not be consistent.
^A-1 Ah X = A−1 B & In X = A−1 B
X = A−1 B
EXAMPLE 8.13
Uniqueness of Solution:
Using matrices, solve the equations
Let X1 , X2 be two solutions of AX = B , then
5x - 7y = 2
AX1 = B and AX2 = B
7x - 5y = 3
AX1 = AX2
^A-1h^AX1h = A−1 ^AX2h


Sol :

^A-1 Ah X1 = ^A−1 Ah X2

Click : www.nodia.study/lema/hm113
I n X1 = I n X 2
X1 = X 2
However, if A is singular then A-1 does not exist.
But this does not mean that the system has no solution. EXAMPLE 8.14
1 −2
If A = >
2 1H
Illustration : , then using A-1 , solve the following system
(i) Consider the system of equations
x + 3y = 5 of equations:

2x + 6y = 10 x - 2y =− 1,
1 3 2x + y = 2
Here A = =0

Sol :
2 6
i.e. A is singular but this system has infinite number of
solutions. For any arbitrary number k , y = k , x = 5 − 3k Click : www.nodia.study/lema/hm114
is a solution of the system. So, the system is consistent.
(ii) Consider the system of equation
x + 3y = 5
EXAMPLE 8.15
x + 3y = 8 Use matrix method to show that the system of equations
1 3 x + 3y = 5
Here A = =0
1 3
2x + 6y = 8 is inconsistent.
i.e. A is singular but this system has no solution. So, the

Sol :
system is inconsistent.
Thus, if A is singular matrix, then the system of Click : www.nodia.study/lema/hm115
equations given by the matrix equation AX = B may be
consistent having infinitely many solutions or may be
inconsistent.
Chap 8 Solution of Simultaneous Equations Page 101

EXAMPLE 8.16 3x + 2y − 2z = 3
Solve the following system of equations by using matrix x + 2y + 3z = 6
method:
2x − y + z = 2
3x + 4y = 7


Sol :
6x + 8y = 14


Sol :
Click : www.nodia.study/lema/hm120
Click : www.nodia.study/lema/hm116
EXAMPLE 8.21
Using matrices, solve the following system of equations:
EXAMPLE 8.17 4x + 3y + 2z = 60
Using matrix method, determine whether the following
x + 2y + 3z = 45
system of equations is consistent or inconsistent:
6x + 2y + 3z = 70
5x − y + 4z = 5


Sol :
2x + 3y + 5z = 2
5x − 2y + 6z =− 1


Sol :
Click : www.nodia.study/lema/hm121

Click : www.nodia.study/lema/hm117

EXAMPLE 8.18
Using matrix method, determine whether the following
system of equations is consistent or inconsistent:
3x - y - 2z = 2
2y - z =− 1
3x - 5y = 3


Sol :

E X ERCISE 8 . 2
Click : www.nodia.study/lema/hm118
Solve the following equations using matrix method:
x + 2y − 3z = 6
EXAMPLE 8.19 1. 3x + 2y − 2z = 3
Examine the consistency of the system of equations: 2x − y + z = 2
Ans : x = 1, y =− 5 , z =− 5
x + y + z = 1
2x + 3y + 2z = 2
ax + ay + 2az = 4 , a ! 0 x−y = 3


Sol : 2. 2x + 3y + 4z = 17
y + 2z = 1
Click : www.nodia.study/lema/hm119 Ans : x = 6 , y = 3 , z =− 1

2x + y + 2z = 3
EXAMPLE 8.20 3. x + y + 2z = 2
Using matrices, solve the following system of equations: 2x + 3y − z = − 2
Page 102 Solution of Simultaneous Equations Chap 8

8.4 Row Reduction method

Ans : x = 1, y =− 1, z = 1
Here we start by writing the given linear equations as the
matrix equation AX = B . Then we perform suitable row
transformations on the matrix A. Using the elementary
x + 2y − 3z =− 4
row transformations, we reduce matrix A into an diagonal
4. 2x + 3y + 2z = 2
matrix. The same row transformations are performed
3x − 3y − 4z = 11
simultaneously on matrix B. After this we get the value
Ans : x = 1, y = 2 , z = 3
of variable. The required solution is obtained in this way.

2x − 3y + 5z = 11 EXAMPLE 8.22
5. 3x + 2y − 4z =− 5 Solve the following system of simultaneous linear equation
x + y − 2z =− 3 by row reduction method :
Ans : x = 1, y = 2 ,z = 3 x + y + z = 6
x − y + z = 2
x - y - z =− 4
x + y + z= 3

Sol :
6. 2x − y + z = 2
x − 2y + 3z = 2
Click : www.nodia.study/lema/hm122
Ans : x = 1, y = 1, z = 1

x + y − z= 1 EXAMPLE 8.23
7. 3x + y − 2z = 3 Solve the following system of simultaneous linear equation
x − y − z =− 1 by row reduction method :
Ans : x = 2 , y = 1, z = 2 x + y + z = 2
x + 2y − z = 6
2x + y − z = 5
x + y + z= 6

Sol :
8. x + 2z = 7
3x + y + z = 12
Click : www.nodia.study/lema/hm123
Ans : x = 3 , y = 1, z = 2

2x − 3y + z =− 1 EXAMPLE 8.24
9. x − 2y + 3z = 6 Solve the following system of simultaneous linear equation
− 3y + 2z = 0 by row reduction method :
Ans : x = 1, y = 2 , z = 3 x − 2y + 4z = 3
x + 3y − 2z = 6
x − 4y + 3z =− 5
4x + 3y + 2z = 60

Sol :
10. x + 2y + 3z = 45
6x + 2y + 3z = 70
Click : www.nodia.study/lema/hm124
Ans : x = 5 , y = 8 , z = 8

EXAMPLE 8.25
Solve the following system of simultaneous linear equation
Chap 8 Solution of Simultaneous Equations Page 103

by row reduction method : E X ERCISE 8 . 3

2x − y + z = 10
3x - 2y - 2z = 7 Solve the following equations using row reduction method.
x - 3y - 2z = 10 x + 2y − 3z = 6


Sol : 1. 3x + 2y − 2z = 3
2x − y + z = 2
Ans : x = 1, y =− 5 , z =− 5
Click : www.nodia.study/lema/hm125

x−y = 3
EXAMPLE 8.26 2. 2x + 3y + 4z = 17
Solve the following system of simultaneous linear equation y + 2z = 1
by row reduction method : Ans : x = 6 , y = 3 , z =− 1
2x − 3y + z =− 9
− 2x + y − 3z = 7
2x + y + 2z = 3
x − y + 2z =− 5 3. x + y + 2z = 2


Sol : 2x + 3y − z = − 2
Ans : x = 1, y =− 1, z = 1
Click : www.nodia.study/lema/hm126
x + 2y − 3z =− 4
4. 2x + 3y + 2z = 2
EXAMPLE 8.27 3x − 3y − 4z = 11
Solve the following system of simultaneous linear equation Ans : x = 1, y = 2 , z = 3
by row reduction method :
2x − 5y + 2z = 16
3x + 2y − 3z =− 19 2x − 3y + 5z = 11
5. 3x + 2y − 4z =− 5
4x − 3y + 4z = 18
x + y − 2z =− 3


Sol :
Ans : x = 1, y = 2 ,z = 3

Click : www.nodia.study/lema/hm127
x + y + z= 3
6. 2x − y + z = 2
EXAMPLE 8.28 x − 2y + 3z = 2
Solve the following system of simultaneous linear equation Ans : x = 1, y = 1, z = 1
by row reduction method :
x + y − z = 2
− x − y + z =− 2 x + y − z= 1
7. 3x + y − 2z = 3
2x + 2y − 2z = 4
x − y − z =− 1


Sol :
Ans : x = 2 , y = 1, z = 2

Click : www.nodia.study/lema/hm128
x + y + z= 6
8. x + 2z = 7
3x + y + z = 12
Page 104 Solution of Simultaneous Equations Chap 8

Ans : x = 3 , y = 1, z = 2 incomes using matrix method.?

Sol :

2x − 3y + z =− 1 Click : www.nodia.study/lema/hm129
9. x − 2y + 3z = 6
− 3y + 2z = 0
Ans : x = 1, y = 2 , z = 3
EXAMPLE 8.30
On Monday Manish paid Rs 170 for two cups of coffee and
4x + 3y + 2z = 60 one doughnut, including the tip. On Tuesday he paid Rs
10. x + 2y + 3z = 45 165 for two doughnuts and a cup of coffee, including the
6x + 2y + 3z = 70 tip. On Wednesday he paid Rs 130 for one coffee and one
doughnut, including the tip. If he always tips the same
Ans : x = 5 , y = 8 , z = 8 amount, then what is the amount of each item?


Sol :

Click : www.nodia.study/lema/hm130
8.5 Real life problems
In real life, the applications of linear equations are vast.
To tackle real-life problems using algebra, we convert the EXAMPLE 8.31
given situation into mathematical statements in such a Harry has $2.25 in nickels, dimes, and quarters. If he had
way that it clearly illustrates the relationship between the twice as many nickels, half as many dimes, and the same
unknowns (variables) and the information provided. The number of quarters, he would have $2.50. If he has 27 coins
following steps are involved while restating a situation into altogether, then how many of each does he have?
a mathematical statement:

Sol :
(i) Translate the problem statement into a mathematical
statement and set it up in the form of algebraic Click : www.nodia.study/lema/hm131
expression in a manner it illustrates the problem aptly.
(ii) Identify the unknowns in the problem and assign
variables (quantity whose value can change depending
upon the mathematical context) to these unknown EXAMPLE 8.32
quantities. Big Bazar Fruit Mart sells variety packs. The small pack
(iii) Read the problem thoroughly multiple times and contains three bananas, two apples, and one orange for Rs
cite the data, phrases and keywords. Organize the 180. The medium pack contains four bananas, three apples,
information obtained sequentially. and three oranges for Rs 305. The family size contains six
(iv) Frame equations with the help of the algebraic bananas, five apples, and four oranges for Rs 465. What
expression and the data provided in the problem price should Big Bazar charge for his lunch-box special
statement that consists of one banana, one apple, and one orange?
(v) Solve simultaneous equitation using following matrix

Sol :
methods
1. Cramer Rule
2. Matrix Inverse Method
Click : www.nodia.study/lema/hm132
3. Row reduction Method

EXAMPLE 8.33
EXAMPLE 8.29 The sum of the digits of a three-digit number is 11. If the
The monthly incomes of Aryan and Babban are in the digits are reversed, the new number is 46 more than five
ratio 3 : 4 and their monthly expenditures are in the ratio times the old number. If the hundreds digit plus twice
5 : 7. If each saves ` 15000 per month, find their monthly the tens digit is equal to the units digit, then what is the
Chap 8 Solution of Simultaneous Equations Page 105

number? of chemical C . One barrel of spray P contains one unit of

Sol : A, 2 units of B , and 3 units of C . One barrel of spray Q
contains 2 units of A, 3 units of B and 2 units of C . One
Click : www.nodia.study/lema/hm133 barrel of spray R contains one unit of A, 2 units of B and
2 units of C . Find how many barrels of each type of spray
be used to just meet the requirement.


Sol :
EXAMPLE 8.34
Rajkumar has invested a part of his investment in 10% Click : www.nodia.study/lema/hm137
bond A and a part in 15% bond B . His interest income
during first year is < 4000. If he invests 20% more in 10%
bond A and 10% more in 15% bond B , his income during
second year increases by < 500. Find his initial investment EXAMPLE 8.38
and the new investment in bonds A and B , using matrix Amar purchases 4 units of Z and sells 3 units of X and
method. 5 units of Y . Akbar purchases 3 units of Y and sells 2


Sol : units of X and 1 unit of Z . Anthony purchases 1 unit of
X and sells 4 units of Y and 6 units of Z . In this process
Click : www.nodia.study/lema/hm134 Amar. Akbar and Anthony earn < 6000, < 5000 and < 13000
respectively. Using matrices, find the prices per unit of the
three commodities.
(Note that selling the units is positive earnings and buying
EXAMPLE 8.35 the units is negative earnings).
An amount of < 5000 is put into three different investments

Sol :
at the rate of 6%, 7% and 8% per annum respectively.
The total annual income is < 358. If the combined annual Click : www.nodia.study/lema/hm138
income from the first two investments is rupees 70 more
than the income from the third, find the amount of each
investments by using matrix algebra.


Sol : EXAMPLE 8.39
An automobile manufacture uses three different types of
Click : www.nodia.study/lema/hm135 trucks T1, T2 and T3 to transport the number of station
wagons, sedan cars and hatchback cars as shown in the
following matrix:
Trucks

EXAMPLE 8.36 T1 T2 T3

An amount of < 65000 is invested in three investments at Stations Wagons RS2 6 9 WV

the rate of 6%, 8% and 9% per annum, respectively. The Sedan S3 7 12W
Hatchback SS6 6 8 WW
total annual income is < 4800. The income from the third
Using the inverse of the T matrix,
X determine the number of
investment is < 600 more than the income from the second
investment. Using matrix algebra determine the amount trucks of each type required to supply 58 stations wagons,
of investment. 75 sedan cars and 62 hatchback cars to a dealer in Kanpur.
If a dealer in Jaipur orders 46 station wagons, 60 full size


Sol :
care and 64 intermediate-size cars, how many trucks of
each type does the factory need to make this delivery.
Click : www.nodia.study/lema/hm136

Sol :

Click : www.nodia.study/lema/hm139
EXAMPLE 8.37
To control a certain crop disease it is necessary to use 8
units of chemical A, 14 units of chemical B and 13 units
Page 106 Solution of Simultaneous Equations Chap 8

EXAMPLE 8.40 Click : www.nodia.study/lema/hm142

The daily cost of operating a hospital C , is a linear function
of the number of in-patients I , and out-patients P , plus a
fixed cost a, i.e., C = a + bP + dI
Given the following data from 3 days, find the values of EXAMPLE 8.43
a, b and d by setting up a linear system of equations and The Sunrise Bakery Pvt Ltd produces three basic pastry
using the matrix inverse: mixes A, B and C . In the past the mix of ingredients has
shown in the following matrix:
Days Cost (in <) No. of In- No. of out-
Flour Fat Sugar
Patients, I Patients, P
ASR 5 1 1VW
1 6950 40 10 (All quantities in kg)
Type B S6.5 2.5 0.5 W
2 6725 35 9 C SS4.5 3 2WW
T X
3 7100 40 12 Due to changes in the consumer’s tastes it has been decided


Sol : to change the mixes using the following amendment matrix:
Flour Fat Sugar
ARS 0 1 0VW
Click : www.nodia.study/lema/hm140 Type B S- 0.5 0.5 0.5W
C SS 0.5 0 0WW
T X
Using matrix algebra you are required to calculate:
EXAMPLE 8.41 1. the matrix for the new mix:
A firm produces two products P1 and P2 , passing through 2. the production requirement to meet an order for 50
two machines M1 and M2 before completion. M1 can units of type A, 30 units of type B and 20 units of
produce either 10 units of P1 or 15 units of P2 per hour. type C of the new mix;
M2 can produce 15 units of either product per hour. Find 3. the amount of each type that must be made to totally
daily production of P1 and P2 if time available is 12 hours use up 370 kg of flour, 170 kg of fat and 80 kg of sugar
of machine M1 and 10 hours of M2 per day using matrix that are at present in the stores.
inversion.

Sol :


Sol :
Click : www.nodia.study/lema/hm143
Click : www.nodia.study/lema/hm141

EXAMPLE 8.44
EXAMPLE 8.42 An amount of < 10000 is put into three investments of the
A firm produces three products P1, P2 and P3 processed on rate of 10, 12 and 15 per cent per annum. The combined
3 machines M1, M2, M 3 . Before completion M1 can process income is < 1310 and the combined income of the first and
25 units of P1 or 50 units of P2 or 75 units of P3 per hour. second investment is < 190 short of the income from the
M2 can process 50 units of any product per hour. M 3 can third. Find the investment in each, using determinant
process 50 or 25 or 100 units per hour of the products P1, P2 method (Cramer’s Rule).
and P3 respectively. The processing hours available on the

Sol :
machines M1, M2 and M 3 are 12, 12 and 13 respectively.
Using matrix notations, find Click : www.nodia.study/lema/hm144
1. How many units of three products can be produced
with the available time?
2. The production cost per unit if costs per hour of
operating machines M1, M2 and M 3 are < 500 < 1000 EXAMPLE 8.45
and < 1500 respectively. A company produces three products everyday. Their total
3. The total cost of production. production on a certain day is 45 tons. It is found that


Sol : the production of third product exceeds the production
of first product by 8 tons while the total production of
Chap 8 Solution of Simultaneous Equations Page 107

first and third products is twice the production of second gm of A, 3 gm of C and 1 gm of D . The requirements for
product. Determine the production level of each product, other tables are:
using Cramer’s Rule.
X -prene 4 gm of A 1 gm of C 3 gm of D


Sol :
Relaxo 1 gm of A 2 gm of C 3 gm of D

Click : www.nodia.study/lema/hm145 Use matrix inversion method to find the number of strips
of each type so that raw materials are consumed entirely.


Sol :

EXAMPLE 8.46 Click : www.nodia.study/lema/hm148

The total sales S in thousands of rupees of a firm selling
two products X and Y is given by the relationship:
S = a + bX + cY . Data for the first three months are given
as under:
Months X Y Total Sales S
January 2 3 12
E X ERCISE 8 . 4
February 6 2 13 1. Weekly expenditure in an office for three weeks is
March 5 3 15 given as follows. Assuming that the salary in all the
Using determinant method, determine the sales in april three weeks of different categories of staff did not vary,
when he sells 4 units of X and 5 units of Y . calculate the salary for each type of staff, using matrix
inversion method.


Sol :
Week Number of Employees Total weekly
salary
Click : www.nodia.study/lema/hm146 A B C
1st week 4 2 3 4900
2nd week 3 3 2 4500
3rd week 4 3 4 5800
EXAMPLE 8.47
A company earns before tax profits of < 100000. It is
committed to making a donation to the Red Cross 10% Ans : 700, 600 and 300
of its after-tax profits. The Central Government levies
corporate taxes of 50% of profits after deducing charitable
donations and any local taxes. The company must also 2. The cost of 4 kg onion, 3 kg of wheat and 2 kg rice
pay local taxes of 10% of its profit less the donation to is ` 60. The cost of 2 kg onion, 4 kg wheat and 6 kg
the Red Cross. Compute how much the company pays in rice is ` 90. The cost of 6 kg onion, 2 kg wheat and 3
corporate taxes, local taxes and as a donation to the Red kg rice is ` 70. Find the cost of each item per kg by
Cross, using Cramer’s Rule. matrix method.


Sol : Ans : Cost of 1 kg onion = ` 5 , Cost of 1 kg wheat
= ` 8 and Cost of 1 kg rice = ` 8
Click : www.nodia.study/lema/hm147
3. A mixture is to be made of three foods A, B and C
. The three foods A, B , C contain nutrients P , Q , R
as shown below:
EXAMPLE 8.48 Grains per kg of Nutrients
The purchase officer of the Pfizer informs the production Food P Q R
manger that during the month, following supply of three
A 1 2 5
chemicals, Asprin (A), Caffieine (C) and Decongestant (D)
used in the production of three types of pain-killing tablet B 3 1 1
will be 16, 10 and 16 kg respectively. According to the C 4 2 1
specification, each strip of 10 tables of Paingo requires 2 How to form a mixture which will have 8 grams of P , 5 grams of
Page 108 Solution of Simultaneous Equations Chap 8

Q and 7 grams of R ? number when added to the first number gives 7. On

Ans : 1 kg of each foods A, B and C adding, three times the first number to the sum of
second and third number, we get 12. Find the three
4. An amount of ` 5000 is put into three investments numbers by using Matrices.
at the rate of interest of 6%, 7% and 8% per annum Ans : 3, 5 , 4
3 3
respectively. The total annual income is ` 358. If the
combined income from the first two investments is 10. An amount of ` 5000 is invested in three types of
` 70 more than the income from the third, find the investments, at interest rates 6%, 7%, 8% per annum
amount of each investment by matrix method. respectively. The total annual income from these
Ans : ` 1000, ` 2200, ` 1800 investment is ` 350. If the total annual income from
first two investment is ` 70 more than the income
5. A school wants to award its students for the values from the third, find the amount of each investment
of honesty, regularity and hardwork with a total cash using matrix method.
award of ` 6000. Three times the award money for Ans : ` 1750, ` 1500, ` 1750
hardwork added to that given for honesty amounts
to ` 11000. The award money given for honesty and
hardwork together is double the one given for regularity.
Represent the above situations algebraically and find
the award money for each value, using matrix method.
Ans : Award money for honesty = ` 500 , Award
money for regularity = ` 2000 , Award money
for hardwork = ` 3500
Applied Mathematics
6. A shopkeeper has 3 varieties of pens A, B and C . CBSE Class XI and XII Commerce
Meenu purchased 1 pen of each variety for a total of A Text Book by NODIA Press
` 21. Jeevan purchased 4 pens of A variety, 3 pens Based on New Syllabus Released By CBSE
of B variety and 2 pens of C variety for ` 60. While No Missing Topic No Extra Topic
Shikha purchased 6 pens of A variety, 2 pens of B
variety and 3 pens of C variety for ` 70. Using matrix
method, find cost of each variety of pen. For Teachers
Ans : Cost of 1 pen of variety A = ` 5 , Cost of 1 pen Digital Specimen copy available for evaluation
of variety B = ` 8 , Cost of 1 pen of variety C Whatsapp at 94140 63210
=`8 Hard Specimen Book Available for Teachers who adopt this book
as Text book and Recommend as Text Book to Students
7. The sum of three numbers is 6. If we multiply third Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
number by 3 and add it to the second number, we whose students have purchased book.
get 11. By adding first and third numbers, we get
a number which is double the second number. Use
this information and find a system of linear equations.
Find the three numbers using matrices.
Ans : 1, 2 and 3

8. The cost of 4 pencils, 3 pens and 2 books is ` 150. The

cost of 1 pencil, 2 pens and 3 books is ` 125. The cost
of 6 pencils, 2 pens and 3 books is ` 175. Find the cost
of each item by using Matrices.
Ans : The cost of 1 pencil is ` 10, 1 pen is ` 20 and
1 book is ` 25.

9. The sum of three numbers is 6. Thrice the third

Chap 27 Unit 2 Case Study Page 109

UNIT 2

Case Study Questions

EXAMPLE 27.1

Sol :

Rice is a nutritional staple food which provides instant
energy as its most important component is carbohydrate
Click : www.ncert.study/lema/zm108
(starch). On the other hand, rice is poor in nitrogenous
substances with average composition of these substances
being only 8 per cent and fat content or lipids only negligible, EXAMPLE 27.2
i.e., 1per cent and due to this reason it is considered as a Publishing is the activity of making information, literature,
complete food for eating. Rice flour is rich in starch and is music, software and other content available to the public
used for making various food materials. for sale or for free. Traditionally, the term refers to the
creation and distribution of printed works, such as books,
newspapers, and magazines.

Two farmers Ramkishan and Gurcharan Singh cultivate

only three varieties of rice namely Basmati, Permal and
Naura. The sale (in `) of these varieties of rice by both the
farmers in the month of September and October are given NODIA Press is a such publishing house having two branch
by the following matrices A and B . at Jaipur. In each branch there are three offices. In each
September Sales (in `) office, there are 2 peons, 5 clerks and 3 typists. In one
Basmati Permal Naura office of a branch, 5 salesmen are also working. In each
10000 20000 30000 Ramkishan office of other branch 2 head-clerks are also working. Using
A = >
50000 30000 10000H Gurcharan Singh

matrix notations find :
(i) the total number of posts of each kind in all the offices
October Sales (in `)
taken together in each branch.
Basmati Permal Naura (ii) the total number of posts of each kind in all the offices
5000 10000 6000 Ramkishan
B = >
10000H Gurcharan Singh
taken together from both branches.
20000 10000

Sol :
(i) Find the combined sales in September and October
for each farmer in each variety. Click : www.ncert.study/lema/zm109
(ii) Find the decrease in sales from September to October.
(iii) If both farmers receive 2% profit on gross sales,
compute the profit for each farmer and for each variety EXAMPLE 27.3
sold in October. A manufacturer produces three products x , y , z which he
Page 110 Unit 2 Case Study Chap 27

sells in two markets. Annual sales are indicated below: previous crops.
Market Product x Product y Product z
I 10000 2000 18000
II 6000 20000 8000
(i) If unit sale prices of x , y and z are ` 25, ` 15 and ` 10
, respectively, find the total revenue in each market
with the help of matrix algebra.
(ii) If the unit costs of the above three commodities are
` 20, ` 10 and ` 5 respectively find the gross profit.


Sol :

Click : www.ncert.study/lema/zm110
The following matrix gives the proportionate mix of
EXAMPLE 27.4 constituents used for three fertilisers:
The D.A.V. College Managing Committee, familiarly
known as DAVCMC, is a non-governmental educational A B C D Constituents

organisation in India and overseas with over 900 schools. I RS0.5 0 0.5 0 VW
75 colleges and a university. It is based on the ideals of Fertilisers II S0.2 0.3 0 0.5W
Maharishi Dayanand Saraswati. Full Form of DAV is IIISS0.2 0.2 0.1 0.5WW
T X
Dayanand Anglo Vedic. (i) If sales are 1000 tins (of one kilogram) per week, 20%
being fertiliser I, 30% being fertiliser II and 50% being
fertiliser III, how much of each constituent is used.
(ii) If the cost of each constituents is ` 5, ` 6, ` 7.5 and
` 10 per 100 grams, respectively, how much does a one
kilogram tin of each fertiliser cost
(iii) What is the total cost per week?


Sol :
In a certain city there are 50 colleges and 400 schools. Each
school and college has 18 peons, 5 clerks and 1 cashier.
Each college in addition has 1 section officer and one Click : www.ncert.study/lema/zm112
librarian. The monthly salary of each of them is as follows:
Peon-` 3000, Clerk-` 5000, Cashier-` 6000, Section
EXAMPLE 27.6
Officer-` 7000 and Librarian-` 9000
Using matrix notation, find Sun Pharmaceutical Industries Limited is an Indian
(a) total number of posts of each kind in schools and multinational pharmaceutical company headquartered
colleges taken together. in Mumbai, Maharashtra, that manufactures and sells
(b) the total monthly salary bill of all the schools and pharmaceutical formulations and active pharmaceutical
colleges taken together. ingredients in more than 100 countries across the globe.


Sol : Sun Pharmaceutical produces three final chemical
products P1, P2 and P3 requiring mixup of three raw material
chemicals M1, M2 and M 3 . The per unit requirement of
Click : www.ncert.study/lema/zm111 each product for each material (in litres) is as follows:
M1 M 2 M 3
R
P1 S2 3 1VW
EXAMPLE 27.5
A = P2S4 2 5W
Fertilizer, natural or artificial substance containing the S
P3S2 4 2WW
chemical elements that improve growth and productiveness T X
of plants. Fertilizers enhance the natural fertility of the
soil or replace chemical elements taken from the soil by
Chap 27 Unit 2 Case Study Page 111

T3 to transport three types of vehicles V1,V2 and V3 . The

capacity of each truck in terms of three types of vehicles
is given below:
V1 V2 V3

T1 1 3 2
T2 2 2 3
T3 3 2 2
Using matrix method find:
(i) The number of trucks of each type required to
transport 85, 105 and 110 vehicles of V1,V2 and V3
types respectively.
(ii) Find the number of vehicles of each type which can
(i) Find the total requirement of each material if the firm be transported if company has 10, 20 and 30 trucks of
produces 100 litres of each product, each type respectively.
(ii) Find the per unit cost of production of each product if

Sol :
the per unit of materials M1, M2 and M 3 are ` 5, ` 10
and ` 5 respectively, and Click : www.ncert.study/lema/zm114
(iii) Find the total cost of production if the firm produces
200 litres of each product.


Sol : EXAMPLE 27.8
A market analysis is a quantitative and qualitative
Click : www.ncert.study/lema/zm113 assessment of a market. It looks into the size of the market
both in volume and in value, the various customer segments
and buying patterns, the competition, and the economic
EXAMPLE 27.7 environment in terms of barriers to entry and regulation.
A car carrier trailer, also known as a car-carrying trailer,
car hauler, or auto transport trailer, is a type of trailer
or semi-trailer designed to efficiently transport passenger
vehicles via truck. Commercial-size car carrying trailers are
commonly used to ship new cars from the manufacturer to
auto dealerships. Modern car carrier trailers can be open
or enclosed. Most commercial trailers have built-in ramps
for loading and off-loading cars, as well as power hydraulics
to raise and lower ramps for stand-alone accessibility.
Based on the past marketing trends and his own experience,
marketing expert suggested to the concerned the segments
of market for their products as follows:
The first segment consisted of lower income class,
the second segment that of middle income and the third
segment that of high income. The data based on the
income of the consumers was readily available. During a
particular month in particular year, the agent reported
that for three products of the company the following were
the sales: There were 200 customers who bought all the
three products, 240 customers who bought I and III, 60
customers only products II and II and 80 customers only
products only III regardless of the market segmentation
groups.
Based on the market segmentation analysis, for
product I, the percentage for the income groups are given
A transport company uses three types of trucks T1, T2 and as (40%, 20% and 40%), for product II (30%, 20% and
Page 112 Unit 2 Case Study Chap 27

50%), for product III (10%, 50% and 40%). Using matrix EXAMPLE 27.10
method, find out the number of persons in the lower Cross holding, also referred to as cross shareholding,
income, middle income and higher income class in the describes a situation where one publicly-traded company
region referred. holds a significant number of shares of another publicly-


Sol : traded company. The shares owned of the second publicly-
traded company are referred to as a cross-holding of the
Click : www.ncert.study/lema/zm115 first company.

EXAMPLE 27.9
A manufacturing company has two service departments,
S1 , S2 and four production departments P1, P2, P3 and P4 .
Overhead is allocated to the production departments for
inclusion in the stock valuation. The analysis of benefits
received by each department during the last quarter and
the overhead expense incurred by each department were:
Service Percentages to be allocated to
Department departments
S1 S2 P1 P2 P3 P4
S1 0 20 30 25 15 10 Two companies A and B are holding shares in each other.
S2 30 0 10 35 20 5 A is holding 20% shares of B and B is holding 10% shares.
of A. The separately earned profits of the two companies
Direct overhead 20 40 25 30 20 10
are ` 98000 and ` 49000 respectively.
expense ` '000
(i) Find total profit of each company using matrix
notations.
(ii) Show that the total of the profits allocated to outside
shareholders is equal to the total of separately earned
profit.


Sol :

Click : www.ncert.study/lema/zm117

EXAMPLE 27.11
A holding company is a company whose primary business
is holding a controlling interest in the securities of other
companies. A holding company usually does not produce
goods or services itself. Its purpose is to own shares of
You are required to find out following using matrix method.
other companies to form a corporate group.
(i) Express the total overhead of the service departments
in the form of simultaneous equations.
(ii) Express these equations in a matrix form and solve
for total overhead of service departments using matrix
inverse method.
(iii) Determine the total overhead to be allocated from
each of S1 and S2 to the production department.


Sol :

A holding company H has two subsidiaries S1 and S2 . The

Click : www.ncert.study/lema/zm116 subsidiaries also own a portion of the share capital H. The
Chap 27 Unit 2 Case Study Page 113

percentage ownership of the group is given below:

Sol :

Owners of Shares Percentage of Share Capital Held

in Company Click : www.ncert.study/lema/zm119
H S1 S2
H 0 60 80 EXAMPLE 27.13
S1 3 0 10 Pastry is a dough of flour, water and shortening that may
S2 6 10 0 be savoury or sweetened. Sweetened pastries are often
Outside Shareholder 91 30 10 described as bakers’ confectionery. The word “pastries”
suggests many kinds of baked products made from
Total 100 100 100
ingredients such as flour, sugar, milk, butter, shortening,
If the separately earned net profits of H, S1 and S2 are baking powder, and eggs.
` 30000, ` 17500 and ` 5000 respectively, find the total net
profit of each company (separately earned profit plus share
in the profits of the other companies) by using matrix
algebra. Also, verify that the sum of the profits allocated
to the outside shareholders equal the sum of the separately
earned profits of all the companies.


Sol :

The Sunrise Bakery Pvt Ltd produces three basic pastry

Click : www.ncert.study/lema/zm118 mixes A, B and C . In the past the mix of ingredients has
shown in the following matrix:
Flour Fat Sugar
EXAMPLE 27.12 ASR 5 1 1VW
A firm produces three products P1, P2 and P3 processed on (All quantities in kg)
Type B S6.5 2.5 0.5 W
3 machines M1, M2, M 3 . Before completion M1 can process C SS4.5 3 2WW
25 units of P1 or 50 units of P2 or 75 units of P3 per hour. T X
M2 can process 50 units of any product per hour. M 3 can Due to changes in the consumer’s tastes it has been decided
process 50 or 25 or 100 units per hour of the products to change the mixes using the following amendment matrix:
Flour Fat Sugar
P1, P2 and P3 respectively.
ARS 0 1 0VW
Type B S- 0.5 0.5 0.5W
C SS 0.5 0 0WW
T X
Using matrix algebra you are required to calculate:
(i) the matrix for the new mix:
(ii) the production requirement to meet an order for 50
units of type A, 30 units of type B and 20 units of
type C of the new mix;
(iii) the amount of each type that must be made to totally
use up 370 kg of flour, 170 kg of fat and 80 kg of sugar
that are at present in the stores.


Sol :
The processing hours available on the machines M1, M2 and
M 3 are 12, 12 and 13 respectively. Using matrix notations, Click : www.ncert.study/lema/zm120
find
(i) How many units of three products can be produced
with the available time? EXAMPLE 27.14
(ii) The production cost per unit if costs per hour of Pfizer Inc. is an American multinational pharmaceutical and
operating machines M1, M2 and M 3 are < 500 < 1000 biotechnology corporation headquartered on 42nd Street in
and < 1500 respectively. Manhattan, New York City. The company was established
(iii) The total cost of production.
Page 114 Unit 2 Case Study Chap 27

in 1849 in New York by two German immigrants, Charles

Pfizer and his cousin Charles F. Erhart. Pfizer develops
and produces medicines and vaccines for immunology,
oncology, cardiology, endocrinology, and neurology.

A company earns before tax profits of ` 100000. It is

committed to making a donation to the Red Cross 10%
of its after-tax profits. The Central Government levies
income taxes of 50% of profits after deducing charitable
donations and any local taxes. The company must also pay
The purchase officer of the Pfizer informs the production local taxes of 10% of its profit less the donation to the Red
manger that during the month, following supply of three Cross. Compute how much the company pays in income
chemicals, Asprin (A), Caffieine (C) and Decongestant (D) taxes, local taxes and as a donation to the Red Cross,
used in the production of three types of pain-killing tablet using Cramer’s Rule.
will be 16, 10 and 16 kg respectively. According to the

Sol :
specification, each strip of 10 tables of Paingo requires 2
gm of A, 3 gm of C and 1 gm of D . The requirements for
other tables are: Click : www.ncert.study/lema/zm122
X -prene 4 gm of A 1 gm of C 3 gm of D

******
Relaxo 1 gm of A 2 gm of C 3 gm of D
Use matrix inversion method to find the number of strips
of each type so that raw materials are consumed entirely.


Sol :

Click : www.ncert.study/lema/zm121

EXAMPLE 27.15
When it comes to taxes, there are two types of taxes in
India - Direct and Indirect tax. The direct tax includes
income tax, gift tax, capital gain tax, etc while indirect
tax includes goods and service tax i.e. GST and any local
tax.
Chap 9 Higher Derivatives Page 115

CHAPTER 9

Higher Derivatives

9.1 Implicit differentiation EXAMPLE 9.1

dy
If y be a function of x defined by an equation such as Find when x3 + 24xy + y3 = 8 .
dx


Sol :
y = 7x 4 − 5x3 + 11x2 + 2x − 3 ...(1)
y is said to be defined explicitly in terms of x and we write Solution Link : www.nodia.study/lema/im101
y = f (x) where
f (x) = 7x 4 − 5x3 + 11x2 + 2 x − 3.
EXAMPLE 9.2
However, if x and y are connected by an equation of the dy dx
If ax2 + 2hxy + by2 = c2 , verify that $ =1
form dx dy


Sol :
x 4 y3 − 3x3 y5 + 7y3 − 8x2 + 9 = 0 ...(2)

i.e. f (x, y) = 0 , then y cannot be expressed explicitly in Solution Link : www.nodia.study/lema/im102

terms of x . But, still the value of y depends upon that of x
and there may exist one or more functions f connecting y
EXAMPLE 9.3
with x so as to satisfy equation (2) or there may not exist
of x2 + y2 = log ^xy h
dy
any of the functions satisfying equation (2). Find
dx
For example, consider the equations

Sol :
2 2
x + y − 25 = 0 ...(3)
Solution Link : www.nodia.study/lema/im103
and x2 + y2 + 25 = 0 ...(4)

In equation (3), y may be expressed explicitly

in terms of x , but y is not a function of x . Here, we EXAMPLE 9.4
dy 1
have two functions of x (or two functions of y if y were Find of x = y +
dx y+ 1
considered to be independent variable) f1 and f2 defined 1
y+
by f1 (x) = 25 − x2 and f2 (x) =− 25 − x2 which satisfy y + ......


Sol :
equation (3).
In equation (4), there are no real values of x that
Solution Link : www.nodia.study/lema/im104
can satisfy it. In cases (2), (3) and (4), we say that y is
an implicit function of x (or x is an implicit function of
y ) and in all such cases, we find the derivative of y with EXAMPLE 9.5
regard to x (or the derivative of x with regard to y ) by the 2
y2 dy
If x2 + 2 = 11, then find
process called implicit differentiation. Of course, wherever a b dx
we differentiate implicitly an equation that defines one

Sol :
variable as an implicit function of another variable, we
shall assume that the function is differentiable. Solution Link : www.nodia.study/lema/im105

EXAMPLE 9.6
dy
If (x2 + y2) 2 = xy , then find
dx


Sol :
Page 116 Higher Derivatives Chap 9

Solution Link : www.nodia.study/lema/im106 2xy

Ans :
3y2 - x2

EXAMPLE 9.7
dy 3. (x2 + y2) 2 = xy
If x2/3 + y2/3 = a2/3 , then find
dx y − 4x (x2 + y2)


Sol : Ans :
4y (x2 + y2) − x

Solution Link : www.nodia.study/lema/im107

dy
4. If x2/3 + y2/3 = 2 , find at (1, 1).
dx
EXAMPLE 9.8 Ans : - 1
dy
If x3 + x2 y + xy2 + y3 = 81, then find
dx


Sol :
dy dx
5. Use implicit differentiation to verify that . =1
dx dy
Solution Link : www.nodia.study/lema/im108 , when
(i) y2 = 4ax (ii) x3 + y3 = 3axy .
Ans : Proof
EXAMPLE 9.9
dy
If ex − y = log a x k, then find
y dx


Sol : dy log x
6. If y log x = x − y , prove that =
dx (1 + log x) 2
Ans : Proof
Solution Link : www.nodia.study/lema/im109

EXAMPLE 9.10 7. If ex + ey = ex + y , prove that

dy
=− ey − x .
dy dx
If xy = c2 , then find Ans : Proof
dx


Sol :

Solution Link : www.nodia.study/lema/im110 dy y (1 − x)

8. If ex + y = xy , show that = .
dx x (y − 1)
Ans : Proof

9. If y x2 + 1 = log ^ x2 + 1 − x h, prove that

dy
(x2 + 1) + xy + 1 = 0 .
dx
Ans : Proof

10. 29. If y= 1 + 1 + x4 , prove that

E X ERCISE 9.1 y (y2 − 1)
dy
dx
= x3

dy Ans : Proof
For the following implicit function find .
dx
1. xy2 − x2 y = 3
2xy - y2
Ans :
2xy - x2
9.2 Logarithmic differentiation
2. xy3 − x3 y = x In order to simplify the differentiation of some functions,
Chap 9 Higher Derivatives Page 117

we first take logarithms and then differentiate. Such a Solution Link : www.nodia.study/lema/im114
process is called logarithmic differentiation. This is usually
done in two types of problems:
1. When the given function is a product of some functions, EXAMPLE 9.15
dy log x
then the logarithm converts the product into a sum If xy = ex − y , prove that =
dx (1 + log x) 2
and this facilitates the differentiation.

Sol :
2. When the variable occurs in the exponent i.e. the
given function is of the form (f (x)) g (x) . Solution Link : www.nodia.study/lema/im115
v
Derivative of u where u, v are Differentiable Functions
of x
EXAMPLE 9.16
Let y = uv dy x..... to 3
Find of y = xx
Taking logarithm of both sides, we have dx
log y = v log u

Sol :
Differentiating wrt x , we have
1 $ dy = d (v log u) Solution Link : www.nodia.study/lema/im116

y dx dx
dy
= y d (v log u) EXAMPLE 9.17
dx dx
x
x ...to 3
dy y2
If y = x , prove that x =
dx 2 − y log x
= uv d (v log u)

dx

Sol :

Thus, d (uv) = uv d (v log u) Solution Link : www.nodia.study/lema/im117

dx dx

EXAMPLE 9.11 EXAMPLE 9.18

x2 − 1 (3x + 7) 5/3
of x2 y3 = ^2x + y h5 .
Differentiate the following function wrt x : dy
Find
(x2 + 3) 2/3 dx


Sol :


Sol :

Solution Link : www.nodia.study/lema/im118

Solution Link : www.nodia.study/lema/im111

EXAMPLE 9.19
EXAMPLE 9.12 dy
Find of y = xx + x1/x
Differentiate xx wrt x : dx


Sol :


Sol :

Solution Link : www.nodia.study/lema/im119

Solution Link : www.nodia.study/lema/im112

EXAMPLE 9.20
EXAMPLE 9.13
Differentiate (xx ) x wrt x
dy y (1 − x)
If ex + y = xy , show that =

Sol :
dx x (y − 1)


Sol :
Solution Link : www.nodia.study/lema/im120
Solution Link : www.nodia.study/lema/im113

EXAMPLE 9.21
EXAMPLE 9.14 Differentiate xx wrt x .
x

of x p yq = ^x + y hp + q
dy
Find

Sol :
dx


Sol :
Solution Link : www.nodia.study/lema/im121
Page 118 Higher Derivatives Chap 9

EXAMPLE 9.22 dy y2
6. If y = xy , prove that x =
If y = e sinx + ^tan x hx , then find
dy dx 1 − y log x
dx Ans : Proof


Sol :

Solution Link : www.nodia.study/lema/im122 dy x−y

7. If x = ex/y , prove that =
dx x log x
Ans : Proof
EXAMPLE 9.23
dy
Find when xy + yx = ab
dx dy 2 − log x


Sol : 8. If xy = ey − x ,prove that =
dx (1 − log x) 2
Ans : Proof
Solution Link : www.nodia.study/lema/im123

dy y (y + x log y)
EXAMPLE 9.24 9. If xy yx = 5 , show that =−
dx x (x + y log x)
Differentiate xa + ax + aa + xx wrt x Ans : Proof


Sol :

Solution Link : www.nodia.study/lema/im124

x dy
10. If (x − y) e x − y = a , prove that y + x = 2y
dx
Ans : Proof

E X ERCISE 9.2
Differentiate the following functions wrt x :
1. (x + 1) 2 (x + 2) 3 (x + 3) 4 Applied Mathematics
Ans : (x + 1) (x + 2) (x + 3) b 2 + 3 + 4 l
2 3 4
CBSE Class XI and XII Commerce
x+1 x+2 x+3
A Text Book by NODIA Press
Based on New Syllabus Released By CBSE
2
2. x x +2/13 , x > 0 . No Missing Topic No Extra Topic
(x + 1)
2
Ans : x x +2/13 ; 1 + 2 x −
x + 1 3 (x + 1)E
2
(x + 1) x
, x>0
For Teachers
Digital Specimen copy available for evaluation
Whatsapp at 94140 63210
3. (2x + 3) x − 5 Hard Specimen Book Available for Teachers who adopt this book
2 (x − 5)
Ans : (2x + 3) x − 5 ; + log (2x + 3)E as Text book and Recommend as Text Book to Students
2x + 3
Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
whose students have purchased book.

4. xx (1 + log x)
Ans : xx b 1 + (1 + log x) 2 l
x

5. x logx + (log x) x
2 log x
Ans : x logx . + (log x) x ;log (log x) + 1 E
x log x
Chap 9 Higher Derivatives Page 119

9.3 Derivatives of Functions in parametric EXAMPLE 9.29

form
If x = a bt + 1 l and y = a bt − 1 l, prove that
dy
=x.
t t dx y
If x and y are two functions in a single variable θ , say

Sol :
y = f (θ) and x = g (θ), then the functions x and y are
called parametric functions and θ is called the parameter. Solution Link : www.nodia.study/lema/im129
Working Rule :
Step 1 EXAMPLE 9.30
If x = bt + 1 l and y = a t + t , find
Write the given parametric form of the function, say
a 1 dy
.
t dx
y = f (θ), x = g (θ)

Sol :
Step 2
dy
Find and dx Solution Link : www.nodia.study/lema/im130
dθ dθ
Step 3
dy EXAMPLE 9.31
Find using the formula given below,
dx 1 + log t 3 + 2 log t dy
_ dq i
dy If x = ,y= , find .
dy t2 t dx
= dx , provided dx ! 0 .
^ dq h
dx dθ

Sol :

Solution Link : www.nodia.study/lema/im131

EXAMPLE 9.25
dy
If x = 2at2 ; y = at 4 , then find
dx


Sol : EXAMPLE 9.32
dy
Find when x = et log t and y = t log t .
dx
Solution Link : www.nodia.study/lema/im125

Sol :

Solution Link : www.nodia.study/lema/im132

EXAMPLE 9.26
dy 2
Find when x = a 1 − t2 , y = 2bt 2 .
dx 1+t 1+t


Sol :

Solution Link : www.nodia.study/lema/im126 E X ERCISE 9 . 3

dy
For the following parametric equation find .
EXAMPLE 9.27 2 dx
2
dy 1. x = 3at 2 and y = 3at 2
If x = 3t 2 ; y = 3t 2 , then find 1+t 1+t
1+t 1+t dx 2 t


Sol : Ans :
1 - t2

Solution Link : www.nodia.study/lema/im127

2. x = e bt + 1 l and y = e−t bt − 1 l
t t
2 3
EXAMPLE 9.28 ( t − t + t + 1)
Ans : e−2t 3
dy t −t t −t (t + t 2 + t − 1)
Find when x = e + e and y = e − e in terms of x
dx 2 2
and y .


Sol : 3. x = 2t and y = 1 − t 2
1 + t2 1 + t2
2
Solution Link : www.nodia.study/lema/im128 Ans : t - 1
2t
Page 120 Higher Derivatives Chap 9

4. x = at2 , y = 2at EXAMPLE 9.34

If y = x log x , show that x3 2 = c x − y m .
d2 y dy 2

Ans : 1 a + bx dx dx
t


Sol :

5. x = 4t , y = 4 Solution Link : www.nodia.study/lema/im134

t
Ans : - 12
t
EXAMPLE 9.35
− c m − = 0.
d2 y 1 dy 2 y
If y = xx , show that
2t , y = 5 − t2 dx2 y dx x
6. x =
5 + t2 5 + t2

Sol :
Ans : 210t
t -5
Solution Link : www.nodia.study/lema/im135

EXAMPLE 9.36
If y = log ^x + a2 + x2 h then show that
^a2 + x2h y2 + xy1 = 0 .



Sol :

Solution Link : www.nodia.study/lema/im136

EXAMPLE 9.37
d2 y dy
9.4 Higher order differentiation If y = 3e2x + 2e3x , prove that 2 − 5 dx + 6y = 0 .
dx
If y = f ^x h is a differentiable function of x , then its

Sol :
derivative dx dy
i.e., f l^x h is also a function of x .
If the function f l^x h of x also differentiable, then its Solution Link : www.nodia.study/lema/im137
derivative is denoted by ddxy or by f m^x h. The symbol ddxy is
2 2

called the second order derivative of y = f ^x h wrt x ddxy is

2 2
2

also denoted by ym or by y2 . EXAMPLE 9.38

In general, if y = f ^x h is a differentiable function of x If y = ax + b , show that 2y1 y 3 = 3 ^y2h2
, then for n ^> 1h ! N , the n th order derivative of y wrt x
cx + d
exists if the ^n - 1hth order derivative of y is differentiable

Sol :
wrt x . For example, the 3 rd order derivative of y = f ^x h
2

exists if ddxy is differentiable. If 3 rd order derivative of Solution Link : www.nodia.study/lema/im138

y = f ^x h is differentiable, then we can talk of 4 th order
2

derivative of y .
The n th order derivative of y ^= f ^x hh is denoted by EXAMPLE 9.39
any one of the following symbols: d2 y 2a3 xy
If y3 + x3 − 3axy = 0 , show that 2 =−
^y2 − ax h
3.
dx
n , f ^n h ^x h, yn , d n ^ f ^x hh or Dn y
dn y n

dx dx

Sol :

Solution Link : www.nodia.study/lema/im139

EXAMPLE 9.33
Find the second derivative of loglog x .


Sol : EXAMPLE 9.40
Find the third derivative of the x5 .
Solution Link : www.nodia.study/lema/im133

Sol :
Chap 9 Higher Derivatives Page 121

Solution Link : www.nodia.study/lema/im140 EXAMPLE 9.48

d 2y
Find , if x = at 2, y = 2at .
dx 2
EXAMPLE 9.41

Sol :

Find the third derivative of the (x2 + 1)(x − 2).

Sol : Solution Link : www.nodia.study/lema/im148

Solution Link : www.nodia.study/lema/im141 EXAMPLE 9.49

d2 y
If y = t10 + 1 and x = t8 + 1, then find .
dx2
EXAMPLE 9.42

Sol :
Find the third derivative of the (2x3 − 7) (9x5 + 2x2 − 3).


Sol : Solution Link : www.nodia.study/lema/im149

Solution Link : www.nodia.study/lema/im142

EXAMPLE 9.50
n
Find d n (log x)
EXAMPLE 9.43 dx


Sol :
2 n d2 y2 dy
If y = (x + 1 + x ) , then find (1 + x ) 2 + x .
dx dx


Sol : Solution Link : www.nodia.study/lema/im150

Solution Link : www.nodia.study/lema/im143

EXAMPLE 9.44 E X ERCISE 9 . 4

If y = log ^x + a2 + x2 h then show that ^a2 + x2h y2 + xy1 = 0.


Sol : Find the second order derivative wrt x of the following
functions.
1. 1 4x3 + x + 7
Solution Link : www.nodia.study/lema/im144
Ans : 24x

EXAMPLE 9.45
d 2y − 24y 2. log x
If y3 − y = 2x , prove that 2 =
dx (3y 2 − 1)3 Ans : - 1/x2


Sol :

Solution Link : www.nodia.study/lema/im145

3. y = x3 log x
Ans : x (5 + 6 log x)
EXAMPLE 9.46
If y = e 2x (ax + b), show that y 2 − 4y1 + 4y = 0 .


Sol : 4. y = log (x2 /ex )
Ans : - 2/x2
Solution Link : www.nodia.study/lema/im146

d2 y dy 2
EXAMPLE 9.47 5. If ey (x + 1) = 1, show that = b dx l .
dx2
d 4y
If y = x 3 log x , prove that = 6. Ans : Proof
dx 4 x


Sol :

Solution Link : www.nodia.study/lema/im147

Page 122 Higher Derivatives Chap 9

log x d2 y 2 log x − 3
6. If y = , show that 2 = .
x dx x3
Ans : Proof

7. If y = Aemx + Benx , show that

d2 y dy
2 − (m + n) dx + mny = 0 .
dx
Ans : Proof

8. If y = x3 log x , find y 3 .
Ans : 11 + 6 log x

9. If y = x , find y 3 .
1 − x2
3 (4x2 + 1)
Ans :
(1 − x2) 7/2

******

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Chap 10 Application of Derivatives Page 123

CHAPTER 10

Application of Derivatives

10.1 Introduction
ψ = π & cot ψ = 0 & _ dx dy iP = 0
2
Differentiation has applications to nearly all quantitative
Further, if the tangent at P is not parallel to x -axis
i.e. ψ ! 0 i.e. ψ ! _ dx iP ! 0 , then the slope of the normal
disciplines. For example, in physics, the derivative of the dy
displacement of a moving body with respect to time is
to the curve at P =− 1
^ dx hP
the velocity of the body, and the derivative of velocity .
dy /
with respect to time is acceleration. The derivative of the
The gradient of a curve at a point is defined as the
momentum of a body equals the force applied to the body;
slope of the tangent to the curve at that point.
rearranging this derivative statement leads to the famous
F = ma equation associated with Newton’s second law
of motion. The reaction rate of a chemical reaction is a
derivative. In operations research, derivatives determine
the most efficient ways to transport materials and design
factories.
Derivatives are frequently used to find the maxima
and minima of a function. Equations involving derivatives
are called differential equations and are fundamental
in describing natural phenomena. Derivatives and their
generalizations appear in many fields of mathematics,
such as complex analysis, functional analysis, differential
geometry, measure theory, and abstract algebra.
Figure 10.1

10.2.1 Tangent to the Curve y = f (x) at Given Point

Let P (x1, y1) be any point on the curve y = f (x), then the
slope of the tangent to the curve y = f (x) at the point
dy
P (x1 y1) is the value of dx at P . So, the slope of tangent to
10.2 Tangents and Normals the curve y = f (x)at P is _ dxdy
ix , y . 1 2

We have learned that dx dy

(if it exists) geometrically Therefore, by co-ordinate geometry, the equation
represents the slope of the tangent to the curve y = f (x) of the tangent to the given curve y = f (x) at the point
at any point P (x, y). Thus, if ψ ^! π2 h is the angle which P (x1 y1) is
the tangent to the curve at P makes with the positive y - y1 = _ dx
dy
ix , y (x − x1)
1 2

direction of x -axis, then the slope of the tangent to the

If _ i does not exist, then the tangent at P is
curve y = f (x) at the point P = tan ψ = _ dx iP .
dy
dy dx x , y
1 1
Working Rule :
If the tangent to the curve y = f (x) at the point parallel to y -axis and its equation is x = x1 .
dy
P (x, y) is parallel to x -axis, then 1. Find dx from the given equation y = f (x).
dy
2. Find the value dx at the given point P (x1 y1), let
y = 0 & tan y = 0 & _ dx
dy
iP = 0 m = _ dx ix , y
dy
1 2

and if the tangent to the curve y = f (x) at the point P (x, y)

3. The equation of the tangent at P is y − y1 = m (x − x1)
is parallel to y -axis, then
.
Page 124 Application of Derivatives Chap 10

Click : www.nodia.study/lema/jm131
10.2.2 Normal to the curve y = f (x) at a Given Point
Let P (x1, y1) be any point on the curve y = f (x), then the EXAMPLE 10.3
slope of the tangent to the curve at P (x1, y1) = _ dx
dy
ix , y at Prove that the tangents to the curve y = x 2 − 5x + 6 at the
1 2
dy
the point P (x1 y1) is the value of dx at P . points (2, 0) and (3, 0) are at right angles.
So, the slope of normal to the curve y = f (x) at

Sol :
P =− 1 .
_ dx ix , y
dy
1 2

Therefore, by co-ordinate geometry, the equation Click : www.nodia.study/lema/jm132

of the normal to the given curve y = f (x) at the point
P (x1 y1) is
1 EXAMPLE 10.4
y - y1 =− dy
_ dx ix , y (x − x1) Find the point curve at point on the parabola y = (x − 2) 2
(x − x1) + _ i
1 2

or dy
(y − y1) = 0 where the tangent is parallel to the chord joining (2, 0)
dx x , y
and (4, 4).
If _ i = 0 then, the equation of the normal at P
1 2

dy

is x = x1 and if _ dx ix , y does not exist, then the equation at

dx x , y

Sol :
1 2
dy
1 2

P is y = y1 .
Procedure to find the equation of the normal to the curve Click : www.nodia.study/lema/jm133
y = f (x) at the given point P (x1 y1)

Working Rule : EXAMPLE 10.5

dy
1. Find dx from the given equation y = f (x). Find the points on the curve y = x 3 − 3x 2 + 2x at which
dy
2. Find the value dx at the given point P (x1 y1). tangent to the curve is parallel to the line y − 2x + 3 = 0
3. If m is slope of the normal to the given curve at P ,

Sol :
then
m =− 1
_ dx ix , y
dy Click : www.nodia.study/lema/jm134
1 2

4. The equation of the normal at P is y − y1 = m (x − x1)

EXAMPLE 10.6
If y = (4x − 5) is a tangent to the curve y2 = px3 + q at (2,
EXAMPLE 10.1 3), find p and q .
(a) Find the slope of the tangent to the curve y = 3x 4 − 4x

Sol :
at x = 4 .
(b) Find the slope of the tangent to the curve Click : www.nodia.study/lema/jm135
y = x − 1 , x ! 2 at x = 10 .
x−2


Sol :

EXAMPLE 10.7
Click : www.nodia.study/lema/jm130 Find the point on the curve y = x 3 − 11x + 5 at which the
tangent is y = x − 11.


Sol :

EXAMPLE 10.2
(a) Find the slope of the tangent to the curve Click : www.nodia.study/lema/jm136
y = x 3 − 3x + 2 at the point whose x -co-ordinate is 3.
(b) Find the equation of the tangent to the curve
y = x2 + 4x + 1 at the point whose x co-ordinate is 3.
EXAMPLE 10.8


Sol : Find the equation of tangent at (- 4, - 4) on the curve
x 2 =− 4y .
Chap 10 Application of Derivatives Page 125

Sol : EXAMPLE 10.14

At what points on the curve, x2 + y2 − 2x − 4y + 1 = 0 is
tangent parallel to the y -axis?
Click : www.nodia.study/lema/jm137


Sol :

EXAMPLE 10.9 Click : www.nodia.study/lema/jm143

Find the points on the curve 4x 2 + 9y 2 = 1 where the
tangents are perpendicular to the line 2y + x = 0


Sol : EXAMPLE 10.15
Find the equation of the tangent to the curve x 2 + 3y = 3,
which is parallel to the line y = 4x + 5
Click : www.nodia.study/lema/jm138


Sol :

EXAMPLE 10.10 Click : www.nodia.study/lema/jm144

Find the equation of all lines having slope 2 which is
tangent to the curve y = 1 , x ! 3 .
x−3


Sol : EXAMPLE 10.16
Show that the equation of tangent to the parabola y 2 = 4ax
at (x1, y1) is yy1 = 2a (x + x1)
Click : www.nodia.study/lema/jm139

Sol :

EXAMPLE 10.11 Click : www.nodia.study/lema/jm145

Find the points on the curve 4x2 + 9y2 = 1 where the
tangents are perpendicular to the line 2y + x = 0 .


Sol : EXAMPLE 10.17
(a) Find the equation of the tangent to the parabola
y 2 = 4ax at (at 2, 2at).
Click : www.nodia.study/lema/jm140 (b) Find the equation of the normal at the point (at 2, 2at)
for the curve y 2 = 4ax .


Sol :
EXAMPLE 10.12
Determine the equation of the normal line to the curve
y = 3 5 − x at the point (- 3, 2).
Click : www.nodia.study/lema/jm146


Sol :

EXAMPLE 10.18
Click : www.nodia.study/lema/jm141 If the tangent to the curve y = x 3 + ax + b at P (1, - 6) is
parallel to the line y − x = 5 , find the values of a and b.


Sol :
EXAMPLE 10.13
Find the coordinates of the points on the curve
9x2 + 4y2 = 36 where the tangent are perpendicular to y
Click : www.nodia.study/lema/jm147
axis.


Sol :
EXAMPLE 10.19
At what points will the tangents to the curve
Click : www.nodia.study/lema/jm142 y = 2x 3 − 15x 2 + 36x − 21 be parallel to the axis? Also,
find the equations of tangents to the curve at these points.


Sol :
Page 126 Application of Derivatives Chap 10

Click : www.nodia.study/lema/jm148 EXAMPLE 10.25

2
y2
Find the equation of the tangent to the ellipse x 2 + 2 = 1
a b
, at (x1, y1).
EXAMPLE 10.20

Sol :
Find the equation of the normal to the hyperbola
2
x 2 − y = 1 at the point (x , y ).
a2 b2
0 0 Click : www.nodia.study/lema/jm154


Sol :

Click : www.nodia.study/lema/jm149 EXAMPLE 10.26

2
2
y
Find the equation of the tangent to x + 2 = 1 at (3, 4).
a b


Sol :
EXAMPLE 10.21
Find the equation of normal at the point (am2, am3) for the
curve ay 2 = x 3 .
Click : www.nodia.study/lema/jm155


Sol :

EXAMPLE 10.27
Click : www.nodia.study/lema/jm150 Find the equations of the tangent and normal to the given
curves 16x 2 + 9y 2 = 144 at (x1, y1) where x1 = 2 and y1 2 0 .


Sol :
EXAMPLE 10.22
2
y2
Find the points on the curve x + = 1 at which tangents Click : www.nodia.study/lema/jm156
4 25
are
(a) Parallel to the x -axis
(b) Parallel to the y -axis
EXAMPLE 10.28


Sol : Show that the tangent to the curve y = be−x , where it
crosses the axis of y , makes intercept of lengths 1 and b on
Click : www.nodia.study/lema/jm151 the axis of x and y respectively.


Sol :

EXAMPLE 10.23 Click : www.nodia.study/lema/jm157

Find the equation of tangent to the curve y = 3x − 2
which is parallel to the line 4x − 2y + 5 = 0 .


Sol : EXAMPLE 10.29
Show the equation of the tangent to the hyperbola
Click : www.nodia.study/lema/jm152
2
x 2 − y = 1 at (x , y ) is xx 0 + yy 0 = 1.
0 0
a2 b2 a2 b2


Sol :

EXAMPLE 10.24
Find the equation of the tangent and normal to the given
Click : www.nodia.study/lema/jm158
curves at the points given
(a) y = x 4 − bx 3 + 13x 2 − 10x + 5 at (0, 5)
(b) y = x 4 − 6x 3 + 13x 2 − 10x + 5 at (1, 3)


Sol :

Click : www.nodia.study/lema/jm153
Chap 10 Application of Derivatives Page 127

E X ERCISE 10.1 10. For the curve y = 4x3 − 2x5 , find all the points at which
the tangent passes through the origin
1. Find the point on the curve x2 + y2 − 2x − 3 = 0 at Ans : (0, 0), (1, 2), (- 1, - 2)
which the tangents are parallel to the x -axis
Ans : (1, 2) and (1, - 2)

2. Find the equations of tangent and the normal to the 10.3 Increasing and Decreasing Function
curve y = x2 + 2x + 6 at the point (2, 18)
Ans : 6x − y + 6 = 0 , x + 6y − 110 = 0
10.3.1 Introduction
The first derivative of a function is a source of much
3. Find the equation of the tangent to the curve useful information about the behaviour of the function.
As we have already seen, the sign of fl tells us whether
x + y = a at the point b a , a l.
2 2

4 4 fl is increasing or decreasing. In this section, we use this

Ans : 2x + 2y = a2
information to find maximum and minimum values of
function.
The significance of the sign of the derivative of a
4. Show that the tangents to the curve y = 2x3 − 4 at the function is simple but crucial. Intervals on which the graph
points x =− 2 are parallel. of a function f has positive or negative slope provide
Ans : Proof useful information about the behaviour of f . The graph of
y = f (x) is shown in Fig 10.1.

5. Find the points on the curve 2y = 3 − x2 at which the

tangent is parallel to the line x + y = 0
Ans : ^1, 1h

6. Find the equation of the tangent line to the curve

y = 5x − 3 − 2 which is perpendicular to the line
5y + 2 2x = 13
Ans : 2 2y − 5x + 4 2 + 1 = 0
Figure 10.2

The graph of y = f (x) is shown in the Fig 10.1 and

7. Find the equation of the normal to the curve
tangents are drawn at the point A, B, C and D . If we think
y = 2 sin2 3x at x = π/6
of a point as moving along the curve from left to right,
Ans : p = p we notice that the moving point would be rising at some
6
positions and falling at others. At points on the curve
where the moving points is rising, we say that y = f (x)
8. Find the point on the curve y = x3 − 11x + 5 at which is an increasing function. At these points y increases as
the equation of tangent is y = x − 1 x increases. At points where the moving points is falling,
Ans : (2, - 9) y = f (x) is a decreasing function. At the point A, the
function is increasing. Here the slope of the tangent is
positive. At the point C , the function is decreasing and
9. Show that the curves xy = a2 and x2 + y2 = 2a2 touch the slope of the tangent is negative. At B and also at D
each other. , the slope of the tangent is zero. The point B and D
Ans : Proof separate rising and falling portions of the curve.
It the recall that the derivative yields the slope of
the tangent, or the slope of the curve, it appears that
Page 128 Application of Derivatives Chap 10

a function is increasing at point where the derivative is

Sol :

positive and decreasing at points where the derivative is
negative. Click : www.nodia.study/lema/jm160
10.3.2 Steps to find Increasing and Decreasing
Function EXAMPLE 10.32
Let f be continuous on 6a, b@ and differentiable on the Prove that the function f (x) = x 3 − 6x 2 + 15x − 18 is
open interval (a, b). increasing on R.
Then

Sol :
1. f is increasing in 6a, b@ if f l (x) 2 0 for each x d 6a, b@
2. f is decreasing in 6a, b@ if f l (x) 1 0 for each x d 6a, b@
3. f is a constant function in 6a, b@ if f l (x) = 0 for each Click : www.nodia.study/lema/jm161
x d 6a, b@
PROOF :
EXAMPLE 10.33
Let x1 , x2 d 6a, b@ be such that x1 1 x2 .
Determine whether function f (x) = x + x1 , is increasing or
By Lagrange’s Theorem, we have
decreasing for x $ 1.
f (x2) - f (x1)
= f l (c), where x1 1 c 1 x2

Sol :
x 2 - x1
f (x2) - f (x1) = (x2 − x1) f l (c)
Click : www.nodia.study/lema/jm162
i.e. f (x2) - f (x1) 2 0 [a f l (c) 2 0 (given)]
i.e. f (x2) 2 f (x1)
So, we have x1 1 x2
EXAMPLE 10.34
f (x1) 1 f (x2), 6x1 , x2 d 6a, b@ Determine whether function f (x) = x3 − 12x , is increasing
Thus f is an increasing function in 6a, b@. or decreasing for x 1- 2 or x 2 2 .
Similarly, we can prove part (2) and part (3).

Sol :
Remark
1. If f l (x) 2 0 for each x d (a, b), f is strictly increasing Click : www.nodia.study/lema/jm163
in (a, b).
2. If f l (x) 1 0 for each x d (a, b), f is strictly decreasing
in (a, b).
3. A function will be increasing or decreasing in R if it is EXAMPLE 10.35
so in every interval of R. Find the least value of a so that the function
f (x) = x 2 + ax + 5 is increasing on [1, 2].
Note


Sol :
The function can be an increasing function in a certain
interval and decreasing function in certain other interval.
Click : www.nodia.study/lema/jm164

EXAMPLE 10.30
Prove that the function f (x) = ax + b is increasing iff EXAMPLE 10.36
a 2 0. Show that the function f (x) = x2 − 3x + 1 is neither


Sol :
increasing nor decreasing on (0, 3).


Sol :

Click : www.nodia.study/lema/jm159
Click : www.nodia.study/lema/jm165

EXAMPLE 10.31
Prove that 2 + 5 is a decreasing function.
x
Chap 10 Application of Derivatives Page 129

7. f ^x h =
EXAMPLE 10.37 1 , x$0
Find the interval in which the function 2x 3 + 9x 2 + 12 + 20 1 + x2
is increasing or decreasing : Ans : Decreasing


Sol :

Click : www.nodia.study/lema/jm166 8. f ^x h = x2 − 6x + 3 in 64, 6@

Ans : Increasing

EXAMPLE 10.38
Find the interval in which the function 8 + 36x + 3x 2 − 2x 3 9. f ^x h = x3 − 8 in 61, 2@
is increasing or decreasing :

Ans : Increasing


Sol :

Click : www.nodia.study/lema/jm167 10.4 COST AND REVENUE FUNCTION

Any manufacturing company has to deal with two types of
costs, the one which varies with the cost of raw material,
direct labour cost, packaging etc. is the variable cost. The
E X ERCISE 10.2 variable cost is dependent on production output. As the
production output increases (decreases) the variable cost
1. Prove that the function f ^x h = ax + b is decreasing if
will also increase (decrease). The other one is the fixed
cost, fixed costs are the expenses that remain the same
a < 0.
irrespective of production output. Whether a firm makes
Ans : Proof
sales or not, it must pay its fixed costs. Marginal cost and
marginal revenue

2. Prove that f ^x h = 1 − 1 is an increasing function. 10.4.1 Cost Function

x
Ans :
If V (x) is the variable cost of producing x units and k the
fixed cost then, the total cost C (x) is given by
C (x) = V (x) + k

3. Prove that f ^x h = x − 1 is an increasing function.
x Marginal Cost
Ans : Proof
In economics the variation of one quantity with respect to
another quantity may be described by a marginal concept.
The marginal concept is the instantaneous rate of change
4. Show that f ^x h = x3 − 6x2 + 15x + 7 is an increasing
of one quantity with respect to another quantity.
function for all x εR .
For example, if C (x) gives the total cost of producing
Ans : Proof
and marketing x units of a product, then marginal cost,
MC , is defined to be the rate of change of C with respect
to x . Thus
5. Prove that the function f ^x h = 100 − 3x + 3x2 − x3 is dC (x)
decreasing on R. MC =
dx
Ans : Proof We interpret marginal cost as the approximate cost
of one additional unit of output.

Determine whether the following functions are increasing 10.4.2 Revenue Function
or decreasing for the stated values of x : If R (x) is the total revenue a company receives by selling
6. f ^x h = 1 , x < 0 x units at price p per unit produced by it then the revenue
x
function is given by
Ans : Decreasing
R (x) = px

Page 130 Application of Derivatives Chap 10

Marginal Revenue EXAMPLE 10.42

The marginal revenue is defined to be the rate of change The total cost C (x) of a firm is given be
of total revenue with respect to quantity demanded. Hence 0.005x 3 − 0.02x 2 − 30x + 5000 , where x is the output.
marginal revenue is merely the derivative of R (x) with Determine :
respect to x . (i) The marginal cost.
dR (x) (ii) The rate of change of MC with respect to x .
Marginal Revenue MR =
dx

Sol :
Marginal revenue indicates the rate at which revenue
changes with respect to units sold. It is interpreted as the
approximate revenue received from selling one additional Click : www.nodia.study/lema/jm171
unit of output.

EXAMPLE 10.43
EXAMPLE 10.39 The rate of change of total cost C (x) of a commodity per
If a manufacturer’s total cost function is C (x) = 0.1x 2 + 3 unit change of output x is called the marginal cost of
find the commodity. If there exists a relation between C (x)
(i) the marginal cost function, and and x in the form : C (x) = 3x d x + 7 n + 5 . Prove that the
x+5
(ii) the marginal cost when 4 units are produced. Interpret marginal cost
the result. falls continuously as the output increases.


Sol :


Sol :

Click : www.nodia.study/lema/jm168 Click : www.nodia.study/lema/jm172

EXAMPLE 10.40
The cost of producing x tons of steel is given by EXAMPLE 10.44
C (x) = 101 x 2 + 5x + 1000 . A stationery company manufactures x units of pen in a
(i) Find the marginal cost function. given time, if the cost of raw material is square of the pens
(ii) Find marginal cost when x = 1000 tons. produced, cost of transportation is twice the number of
(iii) Interpret C l^1000h and compare with the actual cost pens produced and the property tax costs ` 5000. Then,
of 1001th ton. (i) Find the cost function C (x) .


Sol : (ii) Find the cost of producing 21st pen.
(iii) The marginal cost of producing 50 pens.


Sol :
Click : www.nodia.study/lema/jm169
Click : www.nodia.study/lema/jm173
EXAMPLE 10.41
The total cost of a firm is given by 3000 + 60x + x 2, where
x is the output. Determine :
EXAMPLE 10.45
(i) the marginal cost, The price per unit of a commodity produced by a company
(ii) the marginal cost when 30 units are produced, and is given by p = 200 − 5x, where x is the quantity demanded.
(iii) the actual cost of producing twenty first unit. Find marginal revenue.


Sol :

Sol :

Click : www.nodia.study/lema/jm170 Click : www.nodia.study/lema/jm174

Chap 10 Application of Derivatives Page 131

EXAMPLE 10.46 (ii) the revenue function

The quantity demanded of a product is given by x = 10 − 2p (iii) the marginal revenue function.
where p is the price per unit. Find marginal revenue.

Sol :


Sol :

Click : www.nodia.study/lema/jm179
Click : www.nodia.study/lema/jm175

EXAMPLE 10.47
The price per unit of a commodity produced by a company
E X ERCISE 1 0 . 3
is given by p = 30 − 2x and x is the quantity demanded. 1. The cost function of a firm is given by 2x2 − 4x + 5 .
Find the revenue function R (x) , the marginal revenue Find the marginal cost, when x = 2 .
when 5 commodities are in demand (or produced). Ans : 4


Sol :

Click : www.nodia.study/lema/jm176 2. The cost function of a firm is given by 2x2 − 4x + 5 .

Find the marginal cost, when x = 10 .
Ans : 36
EXAMPLE 10.48
The total revenue from the sale of x units of a product is
given by R (x) = 20x − 12 x2 . Find : 3. Given the total cost function for x units of a commodity
as 13 x3 + x2 − 15x + 3 . Find the marginal cost function.
(i) The marginal revenue,
Ans : x2 + 2x − 15
(ii) The marginal revenue when x = 5 and interpret it,
(iii) The actual revenue from the sale of sixth unit.


Sol :
4. The cost function of a firm is given by 3x2 − 2x + 3 .
Find the marginal cost, when x = 3 .
Click : www.nodia.study/lema/jm177 Ans : 16

EXAMPLE 10.49 5. The price of a product is given by p = 1500 − 2x − x2

The price per unit of a product is given by p = a − bx , . Find
where a and b are positive constants. Find: (i) the revenue function,
(i) Revenue function. (ii) the marginal revenue function,
(ii) Marginal revenue function. (iii) the MR when x = 20 and interpret it.


Sol : Ans : (i) 1500x - 2x2 - x3
(ii) 1500 - 4x - 3x2
(iii) 220
Click : www.nodia.study/lema/jm178

6. If R (x) rupees if the total revenue received from the

EXAMPLE 10.50 sale of x tables, and R (x) = 600x − 251 x3 . Find
A firm knows that the demanded price p of a product is (i) the marginal revenue when x = 25 ,
linear function of production quantity x . It also knows (ii) the actual revenue from the sale of 26 tables.
that it can sell 1000 units when the price is < 4 per unit, Ans : (i) 525
and it can sell 1500 units when the price is < 2 a unit. (iii) ` 14896.96
Determine
(i) the price function
Page 132 Application of Derivatives Chap 10

7. The total revenue received from the sale of x units of

a product is given by R (x) = 200 + 15 x2 . Find
(i) the marginal revenue,
(ii) the marginal revenue when x = 25 .
Ans : (i) 25x (ii) 10

8. The total revenue received from the sale of x units of

a product is given by R (x) = 20x − 12 x2 . Find
(i) the marginal revenue,
(ii) the marginal revenue when x = 10 ,
(iii) the actual revenue from selling 15th item.
Ans : (i) 20 - x (ii) 10 (iii) 5.5

x
9. The price for a commodity is given by p = ae− 300 ,
where x is the quantity demanded. Given that the
price is ` 7 per unit when 600 units of the product
are produced. Find the total revenue and marginal
revenue. Also, find the price per unit when the
marginal revenue is zero.
Ans : 7xe2 - 300 , = 7e2 − 300 _1 − 300 i ; 7e
x x
x

10. A firm knows that the price per unit p for one of its
product is linear. It also knows that it can sell 1400
units when the price is ` per unit, and it can sell 1800
units at a price of ` 2 per unit. Find the price per
unit if x units are sold (or demanded). Also find the
revenue function and the marginal revenue function.
Ans : 11 - 200
1
x , 11x - 200
1
x2 and 11 - 1001 x

Applied Mathematics
CBSE Class XI and XII Commerce
A Text Book by NODIA Press
Based on New Syllabus Released By CBSE
No Missing Topic No Extra Topic

For Teachers
Digital Specimen copy available for evaluation
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whose students have purchased book.
Chap 11 Maxima and Minima Page 133

CHAPTER 11

Maxima and Minima

11.1 Introduction separate rising and falling portions of the curve.

The first derivative of a function is a source of much It the recall that the derivative yields the slope of
useful information about the behaviour of the function. the tangent, or the slope of the curve, it appears that
As we have already seen, the sign of fl tells us whether a function is increasing at point where the derivative is
fl is increasing or decreasing. In this section, we use this positive and decreasing at points where the derivative is
information to find maximum and minimum values of negative.
function.
The significance of the sign of the derivative of a
function is simple but crucial. Intervals on which the graph
of a function f has positive or negative slope provide
useful information about the behaviour of f . The graph of
y = f (x) is shown in Fig 11.1.

11.3 Maximum and Minimum Values

Let f be a function defined on an interval. Then,
1. f is said to have a maximum value in I , if there exists
a point c in I such that f (c) $ f (x), 6x d I .
The number f (c) is called the maximum value of f in
I and the point c is called a point of maximum value
of f in I . In Figure 11.2 x = c is a point of maximum
of f (x) in the interval (a, b).

Figure 11.1

11.2 Meaning of the Sign of the Observation

The graph of y = f (x) is shown in the Fig 11.1 and tangents
are drawn at the point A, B, C and D . If we think of a
point as moving along the curve from left to right, we
notice that the moving point would be rising at some
positions and falling at others. At points on the curve
where the moving points is rising, we say that y = f (x) Figure 11.2
is an increasing function. At these points y increases as 2. f is said to have a minimum value in I , if there exists
x increases. At points where the moving points is falling, a point c in I such that f (c) # f (x), 6x d I . The
y = f (x) is a decreasing function. At the point A, the number f (c) in this case is called the minimum value
function is increasing. Here the slope of the tangent is of f in I and the point c is called a point of minimum
positive. At the point C , the function is decreasing and value of f in I .In Figure 11.3 x = c is a point of
the slope of the tangent is negative. At B and also at D minimum of f (x) in the interval (a, b).
, the slope of the tangent is zero. The point B and D The minimum and maximum of a function on an
Page 134 Maxima and Minima Chap 11

interval are also called the absolute minimum and absolute

maximum on the interval, respectively.

Figure 11.5
Figure 11.3
Extreme Value Theorem
A function need to not have a minimum or a maximum
on an interval. For instance, in Fig 11.4, you can see that If f is continuous on a closed interval 6a, b@, then f has
the function f (x) = x 2 + 1 has both a minimum and a both a minimum and a maximum on the interval.
maximum on the closed interval 6- 1, 2@ but does not have
Working rule to Find Absolute Maximum or Absolute
a maximum on the open interval (- 1, 2).
Minimum
Moreover, in figure 11.5 you can see that continuity
(or the lack of it) can affect the existence of an extremum Let f be a continuous function defined on an interval
on the interval. This suggests the following theorem, which I = 6a, b@ and let f be differentiable at all points of I ,
identifies conditions that guarantee the existence of both a except possibly at the end points a or b. Then to find the
minimum and maximum of a function on a closed interval maximum or the minimum value of f .
1. Find all solutions of f l (x) = 0 . Denote the solutions
by x1, x2, ....., where x1, x2, ....., d I .
2. Compute the function values at the x1, x2, .....,
3. Compute the function values at the end points a and
b of the closed interval I = 6a, b@.
Then the maximum value of f is the largest of
the function values at the end-points and at x1, x2 . The
corresponding point is called the point of maximum. And
the minimum value f is the smallest of the function values
at the end points and at x1, x2, ..... The corresponding point
is called the point of minimum.

(i) (ii) Applied Mathematics

CBSE Class XI and XII Commerce
Figure 11.4
A Text Book by NODIA Press
Based on New Syllabus Released By CBSE
No Missing Topic No Extra Topic

For Teachers
Digital Specimen copy available for evaluation
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Chap 11 Maxima and Minima Page 135

Hard Specimen book will be given to those teachers only

whose students have purchased book.

11.4 Local Maxima and Minima

Roughly speaking, f (c) is a local maximum value of f
at c if the graph of f has a little hill above the point c
. Similarly, f (c) is a local minimum value of f at c if the
graph of f has a little valley above the point c .
In Fig. 11.6, the graph of f (x) = x 3 − 3x 2 has a local
maximum at the point (0, 0) and a local minimum at the
point (2, - 4). The graph at (0, 0) looks like little hill and Figure 11.7
the graph at (2, - 4) looks like little valley.
Again if c 0 is point of local minima of f , then the
graph of around c 0 will be as shown in Fig. 11.8. Here
f l (x) 1 0 in the interval (c 0, c 0 - h). Again from this we
conclude f l (c 0) = 0 .

Figure 11.6

We say that the value f (c) is a local maximum value

Figure 11.8
of the function f if f (x) # f (c) for all x sufficiently near c .
Similarly, we say that the value of f (c) is a local minimum
value of f if f (x) $ f (c) for all x sufficiently near c .
More precisely, let f be real valued and let c be an 11.5 First Derivatives Test
interior point in the domain of f . Then
1. c 0 is called a point of local maxima if there is a h 2 0 We now give below a working rule for finding points of
such that f (c 0) $ f (x), for all x in (c 0 − h, c 0 + h). local maxima or points of local minima using only the first
The value f (c 0) is called the local maximum value of order derivatives. Suppose that f is continuous at x 0 and
f. x 0 is not an end point of the domain of f
2. c 0 is called a point of local minima if there is a h 2 0 1. If there exists an open interval (a, b) containing x 0
such that f (c 0) # f (x), for all x in (c 0 − h, c 0 + h). such that f l (x) 2 0 on (a, x 0) and f l (x) 1 0 on (x 0, b)
The value f (c 0) is called the local maximum value of , then f has a local maximum value at x 0 .
f. or
If c 0 is a point of local maximum of f , then the graph If f (x) changes sign from positive to negative as x
of f around c 0 will be as shown Fig. 11.7. Here f l (x) 2 0 increase through x 0 i.e., if f l (x) 2 0 at every point
in the interval (c 0 - h, c 0) and f l (x) 1 0 in the interval sufficiently close to the left of x 0 and f l (x) 1 0 at
(c 0, c 0 + h). From this, we conclude f l (c 0) = 0 . every point sufficiently close to the right of x 0 then x 0
is a point of local maxima.
2. If there exists an open interval (a, b) containing x 0
such that f l (x) 1 0 on (a, x 0) and f l (x) 2 0 (x 0, b),
then f has a local maximum value at x 0 .
or
If f l (x) changes sign from negative to positive as x
Page 136 Maxima and Minima Chap 11

increases through x 0 i.e., if f l (x) 1 0 at every point differentiable.

sufficiently close to the left of x 0 and f l (x) 2 0 at b. Calculate the values of f at the critical points and
every point sufficiently close the right of x 0 , then x 0 is at the end points of the interval.
a point of local minima. c. The maximum value calculated in step (b) will be
the absolute maximum value of f and the minimum
3. If fl is positive (or negative) on both sides of a critical value will be the absolute minimum value of f .
or singular point, then f has neither a maximum nor 6. First Derivative Test:
a minimum value at that point. a. c is a point of local maximum if f l (x) = 0 and f l (x)
or changes sign from positive to negative as x increase
through c .
If f l (x) does not change sign as x increase through
b. c is a point of local minimum if f l (c) = 0 and f l (c)
x 0 then x 0 is neither a point of local maxima nor a
changes sign from negative to positive as x increase
point of local maxima. Such a point is called a point
through c .
of inflexion.
c. If f l (x) does not change sign as x increase through
c , then c is neither a point of local maxima nor a
point of local minima, such a point is called point
11.6 Second Derivatives Test
of inflexion.
A function f will have a local maximum (or minimum) 7. Second Derivative Test:
value at a critical point if its graph is concave downward a. Let f be a function defined on an interval I and
(or upward) in an interval containing that point. In fact, c d I . Then x = c is a point of local maxima if
we can often use the value of the second derivative at the f l (c) = 0 and f m (c) 1 0 . Here the value f (c) is
critical point to check whether the function has a local local maximum value of f .
maximum or a local minimum value there. b. x = c is a point of local minima if f l (c) = 0 and
Let f be a differentiable function of an interval I f m (c) 2 0 . here f (c) is local minimum value of f .
and let x 0 d I . Let f l (x) be continuous as x 0 . c. If f l (c) = 0 and f m (c) = 0 , the test fails. In such
1. If f l (x 0) = 0 and f m (x 0) 1 0 , then f has a local cases, we go back to the first derivatives rest and
maximum value at x 0 find whether c is a point of maxima, minima or a
2. If f l (x 0) = 0 and f m (x 0) 2 0 , then f has a local point of inflexion.
minimum value at x 0
3. If f l (x 0) = 0 and f m (x 0) = 0 , no conclusion can be
drawn. In this case, go back to the first derivative test. EXAMPLE 11.1
f may have local maximum at x 0 or a local minimum, Find the maximum and minimum values if any, of the
or it may have an inflexion point instead. following functions given by
(a) f (x) = 2 (x − 1) 2 + 3
(b) f (x) = 9x 2 + 12x + 2
11.7 Summary

Sol :

1. If x 0 is a point of local maxima of f , then f (x 0) is the

local maximum value of f . Click : www.nodia.study/lema/km101
2. If x 0 is a point of local minima of f , then f (x 0) is the
local maximum value of f .
EXAMPLE 11.2
3. A function f is said to have absolute maximum value
Find the maximum and minimum values if any, of the
(global maximum value or greatest value) at a point
following functions given by
in its domain if f (c) 2 f (x) for all x in the domain of
(a) f (x) =− (x − 1) 2 + 10
x and c is called the point of absolute minimum.
(b) f (x) = x 3 + 1
4. A function f is said to have absolute minimum value
(global minimum value or smallest value) at a point

Sol :
in its domain if f (c) 1 f (x) for all x in the domain of
x and c is called the point of absolute minimum.
5. To find absolute maxima or absolute minima :
Click : www.nodia.study/lema/km102
a. Find all critical points of f in the interval i.e.,
find points x where either f l (x) = 0 or f is not
Chap 11 Maxima and Minima Page 137

EXAMPLE 11.3 Click : www.nodia.study/lema/km108

Find the maximum and minimum values if any, of the
following functions given by
(a) f (x) = x + 2 − 1 EXAMPLE 11.9
(b) h (x) = x + 1, x d (- 1, 1) Find the absolute maximum value and the minimum value


Sol : of the function f (x) = (x − 1) 2 + 3, x d 6− 3, 1@ in the given
interval.

Click : www.nodia.study/lema/km103


Sol :

Click : www.nodia.study/lema/km109
EXAMPLE 11.4
Find the maximum and minimum values if any, of the
following function g (x) =− x + 1 + 3 EXAMPLE 11.10


Sol : Find the points of maximum and minimum of
1
y = (x − 1) 3 (x − 2), 1 # x # 9

Click : www.nodia.study/lema/km104

Sol :

EXAMPLE 11.5
Click : www.nodia.study/lema/km110
Prove that the following functions do not have maxima or
minima : EXAMPLE 11.11
(a) f (x) = ex (b) g (x) = log x Find the local extremum values of the function x 2 .


Sol :

Sol :

Click : www.nodia.study/lema/km105 Click : www.nodia.study/lema/km111

EXAMPLE 11.6 EXAMPLE 11.12

Prove that the following functions do not have maxima or 1 .
Find the local extremum value of the function 2
minima : x +2


Sol :
(a) h (x) = x 3 + x 2 + x + 1 (b) f (x) = x + 2


Sol :
Click : www.nodia.study/lema/km112
Click : www.nodia.study/lema/km106
EXAMPLE 11.13
Find the local extremum values of the constant function
EXAMPLE 11.7
α.
Find the absolute maximum value and the minimum value
of the function f (x) = x 3, x d 6− 2, 2@ in the given interval.


Sol :

Sol :
Click : www.nodia.study/lema/km113
Click : www.nodia.study/lema/km107
EXAMPLE 11.14
Find the maximum and minimum value of x3 − 6x2 + 9x + 15.
EXAMPLE 11.8


Sol :
Find the absolute maximum value and the minimum value
of the function f (x) = 4x − 12 x 2, x d 6− 2, 92 @ in the given
interval. Click : www.nodia.study/lema/km114


Sol :
Page 138 Maxima and Minima Chap 11

EXAMPLE 11.15 EXAMPLE 11.21

Find the maxima and minima of the function Find the points of local maxima and local minima, if any,
2x3 − 15x2 + 36x + 11. of the following function. Find also the local maximum


Sol : and local minimum values :
f (x) = 2x 3 − 21x 2 + 36x − 20

Click : www.nodia.study/lema/km115


Sol :

Click : www.nodia.study/lema/km121
EXAMPLE 11.16
Find the Maximum and Minimum values of x3 − 2x2 + x + 6.


Sol : EXAMPLE 11.22
Find the points of local maxima and local minima, if any,
of the following function. Find also the local maximum
Click : www.nodia.study/lema/km116 and local minimum values :
f (x) =− 3 x 4 − 8x 3 − 45 x 2 + 105
4 2
EXAMPLE 11.17


Sol :
Find the maxima and minima of the function
x 3 + 2 x 2 − 4x − 8 .


Sol : Click : www.nodia.study/lema/km122

Click : www.nodia.study/lema/km117 EXAMPLE 11.23

Show that the value of xx is minimum when x = 1 .
e
EXAMPLE 11.18

Sol :

Find the local extremum values of (x − 1)(x + 2) 2

Sol : Click : www.nodia.study/lema/km123
Click : www.nodia.study/lema/km118 EXAMPLE 11.24
Find local maximum and local minimum, if any, of the
EXAMPLE 11.19 function f (x) = 2 − 22 , x 2 0
x x
Find the local extremum values of the function (x - 3) 4 .

Sol :


Sol :

Click : www.nodia.study/lema/km124
Click : www.nodia.study/lema/km119
EXAMPLE 11.25
EXAMPLE 11.20 Find the points of local maxima and local minima, if any,
Find the points of local maxima and local minima, if any, of the following function. Find also the local maximum
of the following function. Find also the local maximum and local minimum values :
and local minimum values : f (x) = x 4 − 62x 2 + 120x + 9
f (x) = x 4 − 62x 2 + 120x + 9

Sol :


Sol :

Click : www.nodia.study/lema/km125
Click : www.nodia.study/lema/km120
EXAMPLE 11.26
Find the local maximum and minimum values of
Chap 11 Maxima and Minima Page 139

y= x , 11x14 f (x) = x + 1 ,0 # x # 2
(x − 1) (x − 4) x2+ 1


Sol :

Sol :

Click : www.nodia.study/lema/km126 Click : www.nodia.study/lema/km132

EXAMPLE 11.27 EXAMPLE 11.33

Find the local extremum values of the function Find the local extremum values of the functions
x 3 − 6x 2 + 9x + 15 x + 2, x 2 0
2 x


Sol :


Sol :

Click : www.nodia.study/lema/km127
Click : www.nodia.study/lema/km133
EXAMPLE 11.28
Find the local extremum values of the function x 3 (2x - 1) 3 . EXAMPLE 11.34


Sol : Find the local maximum and minimum values of
4
y = x ,x ! 1
x−1
Click : www.nodia.study/lema/km128

Sol :

EXAMPLE 11.29
Click : www.nodia.study/lema/km134
Find the local maximum and minimum values of
y = x 5 − 5x 4 + 5x 3 − 1 EXAMPLE 11.35


Sol : Find the local maximum and minimum values of
y = (x + 3) 2 (x − 4) 4

Click : www.nodia.study/lema/km129

Sol :

EXAMPLE 11.30
Click : www.nodia.study/lema/km135
Find the local maximum and minimum values of
y = (1 − x) 2 ex


Sol :

E X ERCISE 1 1 . 1
Click : www.nodia.study/lema/km130 1. Find the maximum and minimum value of the function.
y = x 3 − 12x + 12
EXAMPLE 11.31 Ans : y maximum =− 4 , y minimum = 24
Find the maximum and minimum value of
f (x) = x 3 − 12x 2 + 36x + 17 in 1 # x # 10


Sol : 2. Show that the curve y = x + x1 has one maximum and
one minimum value. Show that the latter is larger

Click : www.nodia.study/lema/km131 than the former.

Ans : y maximum =− 2 , y minimum = 2

EXAMPLE 11.32
Determine the maximum and minimum values of the 3. Show that the maximum value of the function
Page 140 Maxima and Minima Chap 11

f (x) = x 3 − 27x + 108 is 108 more than the minimum costs. The producer always tries to maximise his profit.
value. All such problems can be solved through the technique of
Ans : y maximum = 162 , y minimum = 54 maxima and minima. In this section, we shall develop this
important technique.

4. Find the extreme value of the function : 11.8.1 Maximisation of Revenue

y = x 3 − 6x 2 + 9x − 8 The technique of maxima minima can also be used to
Ans : y maximum - 4 , y minimum =− 8 maximize revenue. The total revenue of a firm is
R (x) = px
where p is the price and x is the quantity.
5. Find the maximum and minimum values of the Conditions for Revenue Maximisation
function: To maximise revenue R (x) , the following two conditions
3 2
y = 2x − 15x + 36x + 7 are fulfilled:
Ans : y maximum = 35 , y minimum = 34 dR (x)
1. =0
dx
d 2 R (x)
2. <0
6. Find the maximum and minimum value of the function. dx2
y = 12x 5 − 45x 4 + 40x 3
Ans : y maximum = 7 , y minimum =− 16
11.8.2 Minimization of Cost
The technique of maxima minima can also be sued to
minimise cost. Suppose we have a cost function C (x) ,
7. Find the extreme value of the following function :
where x represent output quantity.
y = x 4 − 14x 2 + 24x + 9
Conditions for Cost Minimization
Ans : y maximum = 20 , y minimum =− 108
To minimize cost C (x) , the following two conditions are
fulfilled:
dC (x)
log x 1. =0
8. Find the maximum value of , 01x13 dx
x
Ans : y maximum = 1 2.
d 2 C (x)
<0
e dx2

9. Find the maximum and minimum value of

11.8.3 Maximisation of Profit
y = 3x 4 − 10x 3 + 6x 2 + 5
Ans : y maximum = 5.44 , y minimum = 5 The technique of maxima minima can also be used to
maximize profit. The profit function is given by P (x) .
Conditions for Profit Maximisation
10. Locate the extreme points, maxima and minima of To maximise revenue P (x) , the following two conditions
1 3 2
3 x − 3x + 8x − 5
are fulfilled:
dP (x)
Ans : y maximum = 1 , y minimum = 5 1.
dx
=0
3 3
d 2 P (x)
2. <0
dx2

11.8 Application in business

EXAMPLE 11.36
The concept of maxima and minima play a very important The total cost of producing x TV sets per day is
role in almost all fields, especially in business and < (x2 + 140x + 100) and the price per set at which they may
economics. Every consumer wants to maximise his utility. be sold is < (200 - 2x). Find the daily output to maximise
Every producer wants to maximise revenue and minimise
Chap 11 Maxima and Minima Page 141

the total profit. Determine the price and quantity for which the revenue is


Sol : maximum.


Sol :

Click : www.nodia.study/lema/km136
Click : www.nodia.study/lema/km141
EXAMPLE 11.37
If the price per unit is p = 100 − 4x , find the level of EXAMPLE 11.42
output at which total revenue is maximum and also find The cost function of a firm is given by the equation
the maximum revenue. C (x) = 300x − 10x2 + 13 x3 , where x is the quantity
demanded. Find the output at which marginal cost is


Sol : minimum.


Sol :

Click : www.nodia.study/lema/km137
Click : www.nodia.study/lema/km142
EXAMPLE 11.38
If price per unit is given by p = x121
+ 4 − 1, find level of output EXAMPLE 11.43
at which total revenue is maximum. Also find maximum If the cost function is C (x) = 40 − 6x + x2 , find the
revenue. minimum value of cost C .


Sol :

Sol :

Click : www.nodia.study/lema/km138 Click : www.nodia.study/lema/km143

EXAMPLE 11.39 EXAMPLE 11.44

The price of per unit is given by p = 9 − x where x Let the revenue function given by R (x) = 14x − x2 and the
is the quantity demanded. Find the level of output at cost function given by C (x) = x (x2 − 2).
which total revenue is maximum. Also find the maximum (i) Find the level of output at which profit is maximum.
revenue. (ii) Find the maximum profit and price at maximum


Sol : profit.


Sol :

Click : www.nodia.study/lema/km139
Click : www.nodia.study/lema/km144
EXAMPLE 11.40
A manufacturer produces x pants per week at total cost EXAMPLE 11.45
of < (x2 + 78x + 2500). The price per pant is given by The price per unit for a commodity is p = 100 + x and
8x = 600 − p , where ‘p’ is the price of each pant. Find cost function is C (x) = 13 x3 − 7x2 + 111x + 50 . Find profit
the maximum profit obtained, where the profit function is maximising output and the maximum profit.
given by P (x) - C (x).

Sol :


Sol :

Click : www.nodia.study/lema/km145
Click : www.nodia.study/lema/km140
EXAMPLE 11.46
EXAMPLE 11.41 A company finds that it can sell its product at < 2 per unit
The price per unit for a particular commodity is p = 15e−x/3 where its cost function is C (x) = 1000 + 12 ( 50x ) 2 . Find the
for 0 # x # 8 where x is the number of units demanded. profit maximising output and the maximum profit.
Page 142 Maxima and Minima Chap 11

Sol : Click : www.nodia.study/lema/km150

Click : www.nodia.study/lema/km146

EXAMPLE 11.47 E X ERCISE 1 1 . 2

A toy manufacturer produces x set per week at a total cost
of 251 x2 + 3x + 100 . The produced quantity for his market 1. If p = x +8 2 − 1, find the level of output at which revenue
is x = 75 − 3p where p is the price set. (R) is maximum. Also find the maximum revenue.
(i) Show that the maximum profit is obtained when about Ans : 2, 2
30 toys are produced per week.
(ii) What is the price at maximum profit?


Sol : 2. The demand function for a manufacturer’s product is
P = 804− x , where x is the number of units and P is the
price per unit. What is the maximum revenue?
Click : www.nodia.study/lema/km147 Ans : 40, 400

EXAMPLE 11.48
A pen drive manufacturing company charges < 6000 per 3. If the demand function is p = 600 − 2x 2, find at which
unit for an order of 50 pen drives or less. The charge is level of output, the total revenue will be maximum
reduced by < 75 per pen drive for each order in excess of and what will it be?
50. Find the largest size order, the company should allow Ans : 10, 4000
so as to receive maximum revenue.


Sol :
4. The total cost function of producing and marketing
x units of a commodity is given by C = x 2 − 2x + 16
Click : www.nodia.study/lema/km148 . Find the level of output at which cost is minimum.
Also find the minimum value of total cost.
Ans : 1, 15
EXAMPLE 11.49
A tour operator charges <136 per passenger for 100
passengers with a discount of < 4 for each 10 passengers
in excess of 100. Find the number of passengers that will 5. The cost function of a firm is given by
maximise the amount of money the tour operator receives. C = 200x − 203 x 2 + 29 x 3, where x is the output. Find the


Sol :
output at which the
(i) marginal cost is minimum
(ii) marginal cost is equal to average cost.
Click : www.nodia.study/lema/km149 Ans : (i) 10 (ii) 15

EXAMPLE 11.50
6. A monopolist has the following demand cost functions,
Last year, 300 people attended the Ravindra Manch Drama
p = 20 − x , C = x 2 + 8x + 5 . Find the level of profit
Club’s winter play. The ticket price was < 70. The advisor
maximising output and the maximum profit.
estimates that 20 fewer people would attend for each < 10
Ans : 3, 13
increase in ticket price.
(i) What ticket price would give the most income for the
Drama Club?
(ii) If the Drama Club raised its tickets to this price, how 7. A radio manufacturing products x sets per week at a
much income should it expect to bring in? total cost of 15 x 2 + 3x + 100 . He is a monopolist and the


Sol : demand for his market is x = 105 − 3p , where p is the
price in rupees per set. Show that the maximum net
Chap 11 Maxima and Minima Page 143

revenue is obtained when about 30 sets are produced EXAMPLE 11.53

per week. What is the monopoly price? A projectile is fixed upwards. Its height above the surface
Ans : Proof of the earth at time t is given by h (t) = at 2 + bt + c where
a, b, c are none-zero constant and a 1 0 . Determine how
high will the projectile travel.
8. If the total cost and total revenue of a firm are given

Sol :

by C = 100 + 0.02x 2 and R = 5x . Find the profit

maximising level of output and the maximum profit.
Ans : 125, 212.5
Click : www.nodia.study/lema/km153

EXAMPLE 11.54
9. If the demand function of a firm is 5x = 375 − 3p Two sides of a triangle are given. Find the angle between
, total cost function is C = 500 + 13x + 15 x 2, where x them such that the area shall be maximum.
is number of units and p is price per unit. Find how

Sol :
many units should the firm manufacture for maximum
profits, and what is the maximum profit.
Ans : 30, 1180 Click : www.nodia.study/lema/km154

EXAMPLE 11.55
10. If the demand function of the monopolist is Divide a number 15 into two parts such that square of one
x = 400 − 20p and the average cost is 5 + x , where x multiplied with the cube of the other is minimum.
50
is output and P , the price, find the profit maximising

Sol :
output and also the maximum profit.
Ans : 107, 803.57
Click : www.nodia.study/lema/km155

EXAMPLE 11.56
Show that the area of a rectangle of given perimeter is
11.9 Applied problems maximum, when the rectangle is a square.


Sol :
The concept of maxima and minima play a very important
role in almost all fields. It can also be used in daily life to
solve many problems. Here we will discuss some cases. Click : www.nodia.study/lema/km156
EXAMPLE 11.51 EXAMPLE 11.57
Find two positive numbers whose sum is 16 and sum of A straight line AB of length 8 cm is divided into two
whose cubes is minimum. parts AP and PB by a point P . Find the position of P if


Sol : AP 2 + BP 2 is minimum.


Sol :

Click : www.nodia.study/lema/km151
Click : www.nodia.study/lema/km157
EXAMPLE 11.52
Find two positive numbers x and y such that their sum is EXAMPLE 11.58
35 and the product x 2 y 5 is maximum. A closed right circular cylinder has a volume of 2156 cm3 .


Sol : What will be the radius of its base so that its total surface
area is minimum?
Click : www.nodia.study/lema/km152

Sol :
Page 144 Maxima and Minima Chap 11

Click : www.nodia.study/lema/km158 EXAMPLE 11.64

If the sum of the lengths of the hypotenuse and a side of a
right triangle is given, show that the area of the triangle is
EXAMPLE 11.59 maximum, when the angle between them is 60c.
Divide 64 into two parts such that the sum of the cubes of

Sol :
two parts is minimum.

Click : www.nodia.study/lema/km164


Sol :

Click : www.nodia.study/lema/km159
EXAMPLE 11.65
A window is in the form of a rectangle surmounted by a
EXAMPLE 11.60 semi-circular opening. The total perimeter of the window
Show that the right circular cylinder of given surface and is 10 m. Find the dimensions of the window to admit
maximum volume is such that its height is equal to the maximum light through the whole opening.
diameter of the base.

Sol :


Sol :

Click : www.nodia.study/lema/km165
Click : www.nodia.study/lema/km160
EXAMPLE 11.66
EXAMPLE 11.61 A poster is to contain 72 cm2 of printed matter with
The cost of fuel for running a bus is proportional to the borders of 4 cm each at the top and bottom and 2 cm
square of the speed generated in km/hr. It <48 per hour on each side. Find the dimensions if the total area of the
when the bus is moving at a speed of 20 km/hr. What is poster is minimum. This poster is to be presented in a
the most economical speed if the fixed charged are < 108 debate competition on the topic SAY NO TO SMOKING.
for an hour, over and above the running charges? Should smoking be banned?


Sol :

Sol :

Click : www.nodia.study/lema/km161 Click : www.nodia.study/lema/km166

EXAMPLE 11.62 EXAMPLE 11.67

Show that the right circular cone of least curved surface A sheet of paper for a poster is 32 m2 in area. The margins
area and given volume has an altitude equal to 2 times at the top and the bottom are to be 6 cm wide and at the
the radius of the base. sides are to be 4 cm wide. Find the dimensions of the sheet


Sol : so that the printed area is maximum.


o
The total area of a page is 32 m2 . The combined width of
Click : www.nodia.study/lema/km162 the margin at the bottom and the is 12 cm and at the sides
is 8 cm. What must be the dimensions of the page in order
that the area of the printed matter may be maximum?
EXAMPLE 11.63


Sol :
An open box is to be made out of a piece of cardboard
measuring 24 cm # 24 cm by cutting off equal squares
from the corners and turning up the sides. Find the height Click : www.nodia.study/lema/km167
of the box for maximum volume.


Sol :
EXAMPLE 11.68
Show that of all the rectangles inscribed in a given fixed
Click : www.nodia.study/lema/km163 circle, the square has maximum area.
Chap 11 Maxima and Minima Page 145

o revolved about one of its sides.

Show that the rectangle of maximum area that can be

Sol :
inscribed in a circle is a square


Sol :
Click : www.nodia.study/lema/km173
Click : www.nodia.study/lema/km168
EXAMPLE 11.74
Show that the right circular cylinder, open at the top, and
EXAMPLE 11.69 of given surface area and maximum volume is such that its
A rectangle is inscribed in a semicircle of radius R with height is equal to the radius of the base.
one of its sides on the diameter of the semicircle. Find the

Sol :
dimensions of the rectangle so that its area is maximum.


Sol :
Click : www.nodia.study/lema/km174
Click : www.nodia.study/lema/km169

EXAMPLE 11.70 E X ERCISE 1 1 . 3

A closed right circular cylinder has volume 128 π cm3 .
What should be the radius of its base so that its total 1. Find two numbers whose sum is 24 and whose product
surface area may be minimum? is as large as possible.


Sol : Ans : 12 and 12

Click : www.nodia.study/lema/km170
2. Find two positive numbers x and y such that x + y = 60
and xy 3 is maximum.
EXAMPLE 11.71 Ans : 15 and 45
A cylinder is such that the sum of its height and the
circumference of its base is 10 cm. Find the maximum
volume of the cylinder. 3. The combined resistance R of two resistors is given by


Sol :
R = R + R where R1 and R 2 are the respective resistance
1 1 1
1 2

of the two resistors with R1 + R2 = a (R1, R2 2 0), where

Click : www.nodia.study/lema/km171 a is a constant. Show that the maximum resistance R

is obtained by choosing resistors for which R1 = R2
Ans : Proof
EXAMPLE 11.72
A given quantity of metal is to be cast into a half cylinder
with a rectangular base and semicircular ends. Show that 4. The rate of a chemical reaction y , is given by the
the total surface area is minimum when the ratio of the formula y = kx (a − x) where x is the amount of
length of the cylinder to the diameter of its semicircular product, a is the amount of material at the beginning
ends is π : (π + 2). of the reaction and k 2 0 . Determine the value of x for


Sol : which the rate of chemical reaction will be maximum.
Ans : a2 .

Click : www.nodia.study/lema/km172
5. A cylinder is such that sum of its height and the
EXAMPLE 11.73 circumference of its base is 10 metres. Find the greatest
Find the dimensions of the rectangle of perimeter 0.36 m volume of the cylinder.
which will sweep out a volume as large as possible when Ans : 1000
27π
Page 146 Maxima and Minima Chap 11

6. A wire of length 28 m is to be cut into two pieces, one

of the pieces is to be made into a square and the other
into a circle. Where should the wire be cut so that
combined area is minimum?
Ans : at a distance of 428+pp from one end.

7. Prove that the area if a right angled triangle of given

hypotenuse is maximum when the triangle is isosceles.
Ans : Proof

8. Show that of all the rectangles inscribed in a given

circle, the square has the maximum perimeter.
Ans : Proof
Chap 12 Integration Page 147

CHAPTER 12

Integration

12.1 Introduction integration or differential of x , where C ! R and is called

The development of Integral calculus arises out of constant of integration or an arbitrary constant.
the efforts of solving the problems of the following This shows that F ^x h and F ^x h + C are both integrals
types: or anti-derivatives of the same function f ^x h. Thus, for
1. To find a function when its derivative is given. infinite values of C, we get infinite integrals of f ^x h. It
2. To find the area of the region bounded by the graph means the anti-derivatives or integrals of f ^x h are not
of a function under various conditions. definite (unique) that’s why F ^x h is called the indefinite
The above-mentioned problems push to two forms integral of f ^x h.
of the integrals-indefinite and definite, which constitute From the above discussion, we can define the
together Integral calculus. Fundamental theorem of integration as,
calculus connects indefinite and definite integrals. This
The process of finding an indefinite integral of a function
makes the definite integral as a practical both for Science
f is called integration of the function f .
and Engineering. It is also used to solve various types of
problems of Economics, probability and finance.

12.3 Geometrical Interpretation of Indefinite

Integral
Let us consider a function given by f ^x h = 2x .
We have, # f ^x hdx = # 2x dx = x2 + C ,

where C is an arbitrary constant. Let us see the graph of

y = f ^x h dx or y = x2 + C . Clearly, y = x2 + C represents
#
12.2 Integration a family of parabolas with its axis of symmetry along y
-axis. For different values of C, we obtain different members
The process of finding function whose derivative is of the family of parabolas. For C = 0 , the curve y = x2 is a
given is called integration. It is an inverse process parabola having vertex (0, 0) and is drawn upward.
of differentiation.
Thus, a function F ^x h is called a anti-derivative
or an integral of f ^x h. If,

dx ^ h ^ h
d F x = f x

Thus d "F ^x h + C, = d F ^x h = f ^x h
dx dx
(Derivative of constant is zero )

dx ^ h ^ h
d #F x + C- = f x

# f ^x hdx = F^x h + C
Figure 12.1
Here, symbol # stands for integral sign, f ^x h dx is the
integration of f with respect to x , f ^x h is the integrand, For C = 1, the curve y = x2 + 1 is a parabola having
x is the variable of integration and dx is the element of vertex (0, 1) and is drawn upwards. For C =− 1, the curve
Page 148 Integration Chap 12

y = x2 − 1 is an upward parabola having vertex at ^0, - 1h

. Therefore, for each +ve value of C, we obtain a parabola b. # #mf ^x h + nf ^x h- dx
1 2

of the family having vertex on the +ve side of y -axis and = m # f ^x h dx + n # f ^x h dx

1 2
for negative values of C, we obtain a parabola of the family
having vertex on - ve side of y -axis figure. 7. The constant can be taken outside the differentiation
Let x = a , a > 0 be a line parallel to y -axis which as well as integral sign
intersects the parabolas at P-2, P-1, P0, P1, P2, ... etc., as i.e. d _mf _x ii = m d ^ f ^x hh and
dy
dx dx
shown in the figure. Then at these points dx = 2a , i.e., the
slope of the tangents to the curve at these points are same. # mf ^x hdx =m # f ^x hdx
Thus, geometrically, the indefinite integral of a function
8. We talk of derivative at a point but we never talk of
represents a family of curves placed parallel to each other
integral at a point. We talk of integral of a function
having parallel tangents at the points of intersection of the
over an interval on which the integral is defined.
curves of family with a line parallel to y -axis.
9. When a polynomial function is differentiated, its
It must be noted that similar interpretation hold for
degree reduces by 1. When a polynomial function is
x = a , where a < 0 .
integrated, its degree increases by 1.
10. The derivative is used in finding the rate of change of
Applied Mathematics one variable with respect to other whereas integration
(particularly definite integral) is used to find area
CBSE Class XI and XII Commerce
enclosed by curves.
A Text Book by NODIA Press
11. Geometrically, derivative of a function at a point
Based on New Syllabus Released By CBSE
determines the slope of the tangent to the curve of
No Missing Topic No Extra Topic a function at the corresponding point. Integral of a
function represents a family of curves placed parallel
to each other having parallel tangents at the points of
For Teachers intersection of the curves of family with a line parallel
Digital Specimen copy available for evaluation to the axis of dependent variable.
Whatsapp at 94140 63210
Hard Specimen Book Available for Teachers who adopt this book
as Text book and Recommend as Text Book to Students 12.5 Basic rule of Indefinite Integration
Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
whose students have purchased book.
12.5.1 Rule 1

# kdx = kx + C, where n is a constant.

12.4 Comparison Between Differentiation and
Integration


Illustration
1. Both the differentiation and integration are
operations on functions. # 2 dx = 2 x + C
3 3

2. Differentiation and integration are processes

inverse to each other. 12.5.2 Rule 2
3. Every function is not differentiable. Similarly, every

^ax + b hn + 1
function is not integrable.
# ^ax + b hn dx =
^n + 1h dxd ^ax + b h
4. The derivative of a function, when it exists is unique, + C,
whereas the integral of a function is not unique.
However, the different integrals of the same function where a , b and n are constants such that a ! 0 and
differ by a constant. n !- 1.
5. Both are processes involving limits.

Illustration
6. Both operates on functions linearly, as follows, i.e: ^4x + 5h2 + 1
# ^4x + 5h2 dx =
a. d #mf1 ^x h + nf2 ^x h- = m d f1 ^x h + n d f2 ^x h
+C
dx dx dx `2 + 1j dxd ^4x + 5h
and
Chap 12 Integration Page 149

^4x + 5h3 ^4x + 5h3 #3 4x + 5 3 4x + 5 +C = 3

4x + 5

log 3 dx ^4x + 5h
=
+C = +C dx = +C
3#4 12 d 2 log 4

REMEMBER : REMEMBER :
n x
# x dx = n x+ 1 + C
n
where n !- 1 # a dx = loga a + C
x

12.5.3 Rule 3 EXAMPLE 12.1

Evaluate the following integrals:
# ^ax + bh log ax + b
d
−1

dx ^ax + b h
dx =
+ C, (i) # 2 dx (ii) # ^- 5hdx
3

where a and b are constants and a ! 0 . (iii) #e 2e

dx (iv) # 14dx
It must be noted that we take modulus in the


Sol :
argument of logarithmic function as the logarithmic
function is defined for positive real numbers only.


Illustration
log 2x + 3
Click : www.nodia.study/lema/lm101
# ^2x + 3h dx = d
−1

dx ^2x + 3h
+C

log 2x + 3 EXAMPLE 12.2

=
+C
2 Evaluate the following integrals:
(i) # ^7 - 2x h dx (ii) # ^4x + 1h
5 −7/3
dx
REMEMBER :

# 1 dx = log x + C (iii) # x dx (iv) # x dx

8 n

x


Sol :

12.5.4 Rule 4
Click : www.nodia.study/lema/lm102
ax + b
e
#e ax + b
dx =
dx ^
d
ax + bh
+ C,

where a and b are constant and a ! 0 . EXAMPLE 12.3

Evaluate the following integrals:


Illustration 1 dx (i) 1 dx
3x + 4
(i)
3 - 2x# x #
#e 3x + 4
dx = d e
dx ^3x + 4h
+C


Sol :
3x + 4
=e
+C
3

REMEMBER : Click : www.nodia.study/lema/lm103

# e dx = e
x x
+C

EXAMPLE 12.4
12.5.5 Rule 5
Evaluate the following integrals:

n ax + b
(i) #e 2x + 5
dx (ii) #e 7 - 5x
dx
# nax + b dx =
log n dxd ^ax + b h
+ C,
(iii) # e dx
x

where a , b and n are constants such that a ! 0 and

n ! ^0, 3h - " 1 , .

Sol :

Illustration
Page 150 Integration Chap 12

Click : www.nodia.study/lema/lm104 (i) #ex

log x
dx (ii) # log x dx x

Sol :

EXAMPLE 12.5:
Evaluate the following integrals:
Click : www.nodia.study/lema/lm109
(i) # 32x - 7 dx (ii) # 45 - 6x dx

(iii) # 2 dx (iv) # a dx
x x

EXAMPLE 12.10


Sol : Evaluate :
(i) # e a dx (ii) # 6
x x loge x
dx


Sol :
Click : www.nodia.study/lema/lm105

Click : www.nodia.study/lema/lm110
EXAMPLE 12.6
Evaluate the following integrals :
1 dx
(i) x 14dx # (ii)
x
# EXAMPLE 12.11
Evaluate :
1 dx (ii)


Sol :
(i)
7 + 5x# #3 5 log 3 x
dx


Sol :

Click : www.nodia.study/lema/lm106
Click : www.nodia.study/lema/lm111
EXAMPLE 12.7
Evaluate the following integrals :
EXAMPLE 12.12
(i) # (2x + 7) dx (ii) #
6
3x + 4 dx Evaluate :


Sol : x
(i) 5 x dx (ii)
# # 5
x2 dx
3


Sol :

Click : www.nodia.study/lema/lm107
Click : www.nodia.study/lema/lm112

EXAMPLE 12.8
Evaluate the following :
(i) #2 3x
dx (ii) #4 -x
dx


Sol :

Click : www.nodia.study/lema/lm108

EXAMPLE 12.9
Evaluate :
Chap 12 Integration Page 151

E X ERCISE 12.1 5x
(i) 4e (ii) 5-x
Ans : (i) 4e5x , (ii) - 5-x
1. Evaluate the following integrals: 10 log 2 log 5
(i) #
e 4e dx (ii) 28dx #
10. Evaluate the following integrals:
Ans : (i) e 4e x (ii) 28x 6 3 5
(i) x (ii) x4
2 3
Ans : (i) 3 x 2 , (ii) 59 x 5
9

2. Evaluate the following integrals:

1 dx (ii)
(i) #
6 + 7x #5 7 log 5 x
dx

Ans : (i)
log (6 + 7x)
+ C (ii) 2x + C
2 12.6 Properties of Indefinite Integral
7 9
PROPERTY I:
Integration and differentiation are inverse processes and
# f l^x hdx = f ^x h + C, where C is an arbitrary constant.
3. Evaluate the following integrals:
#
x 4 dx (ii) #x -3/4
dx
dx ^ h ^ h
(i) d 7f x dx A = f x
5
Ans : (i) x + C (ii) 4x1/4 + C
5
PROOF :
If F be any anti-derivative of f i.e.
4. Evaluate the following integrals:
dx ^ h ^ h
d 7F x A = f x
(i) #
e-9x dx (ii) 511x dx
−9x 11x
#
Ans : (i) − e + C (ii) 5
9 11 log 5
+C then # f ^x hdx = F^x h + C
Thus d :
dx # f ^x hdx D = dxd 7F^x h + CA
5. Evaluate the following integrals:
#e # 3 -1 2x dx = d 7F ^x hA + 0
7 - 3x
(i) dx (ii)
dx
Ans : (i) − 1 e7 − 3x + C (ii) − 1 log 3 − 2x + C = d 7F ^x hA = f ^x h

3 2 dx

Now, f l^x h = d 7f ^x hA
dx
6. Evaluate the following integrals:
#3x
(i) 2 dx (ii)
-x
4 dx # Hence # f l^x hdx = f ^x h + C
Ans : (i) #2 3x
dx (ii)
where C is an arbitrary constant.
The symbols dxd and # ...dx cancel each other when
dx is followed by # ...dx . But when # ...dx is followed by dx
d d

7. Evaluate the following integrals: , they do not cancel each other, because
99 -11
(i) x (ii) x
; _F ^x hiE dx = f ^x h dx = F ^x h + C .
d
100
Ans : (i) x , (ii) - x
-10 # dx #
100 10
PROPERTY II:
Two indefinite integrals with same derivative are
8. Evaluate the following integrals: equivalent i.e. they lead to the same family of curves.
(i) 5 4 x (ii) 6 x
5 PROOF :
Ans : (i) 4x 4 , (ii) 6 x 6
7

7 Let f and g are two functions such that

dx : ^ h D dx : ^ h D
d f x dx = d
# g x dx #
9. Evaluate the following integrals:
Page 152 Integration Chap 12

dx :
d
# f ^x hdx D - dxd : # g^x hdx D = 0 # 5x dx = 5 # x dx
6 6

dx : # f ^x hdx - # g^x hdx D = 0

6
d = 5 x = 5 x6 + C

6+1 7

# f ^x hdx - # g^x hdx = C PROPERTY V:

where C is an arbitrary constant. # 7k f ^x h ! k f ^x h ! ... ! k f

1 1 2 2 n n ^x hA dx
Thus the family of curves & # f ^x hdx + C ,
1 C1 ! R0 = k1 # f ^x hdx ! k # f ^x hdx ! ... ! k # f
1 2 2 n n ^x h dx
and & g ^x h dx + C 2, C 2 ! R 0 are identical.
#


Illustration
Hence # f ^x hdx and # g^x hdx are equivalent.
^7x3 + 4x2 − 5x h dx = 7
# # x dx + 4 # x dx − 5 # xdx
3 2

PROPERTY III: 4 3 2

The integral of the sum (difference) of two functions is = 7x + 4x − 5x

4 3 2
equal to the sum (difference) of their integrals.
= 7 x 4 + 4 x3 − 5 x2 + C

# 7f ^x h ! f ^x hAdx = # f ^x hdx ! # f ^x hdx
1 2 1 2
4 3 2

PROOF :
EXAMPLE 12.13
From property I we have
Evaluate # cx n
+ nx + x + n − nn m dx
dx : 1 ^ h
f x ! f2 ^x hD dx = f1 ^x h ! f2 ^x h ...(1)
d n x x
#


Sol :
d
Also dx : # f1 ^x h dx ! f2 ^x h dx D = dx
d
: # f1 ^x h dx D ! dx
d
: # f2 ^x h dx D
= f1 ^x h ! f2 ^x h ...(2)
From (1) and (2), Click : www.nodia.study/lema/lm113
# 7f ^x h ! f ^x hAdx = # f ^x hdx ! # f ^x hdx
1 2 1 2

Illustration
EXAMPLE 12.14
# ^x 2
! 2x h dx = # x dx ! # 2 dx
2 x
Evaluate following integral :
# ^x + x−3 + x − 5h dx
x
= 1 x3 ! 2 + C

3 log 2
(i) 3
(ii) # (x 2
+ 1) (x 2 − 2) dx

where C is an arbitrary constant.

Sol :

PROPERTY IV:
The constant factor comes outside the integral sign. Click : www.nodia.study/lema/lm114
For any real number k ,
# k f ^x hdx =k # f ^x hdx .
PROOF : EXAMPLE 12.15
Evaluate following integral :
From property I we have 3 2 3
(i) x + 5x + 4x + 1 dx + 5x2 − 4 dx
k f ^x h dx D = k f ^x h ...(1)
# (ii) #x
dx :
d
# x2 x2


Sol :
Also d : k f ^x h dx D = k d :
# # f ^x hdx D
dx dx
= k f ^x h ...(2)
From (1) and (2), Click : www.nodia.study/lema/lm115
# k f ^x hdx = k # f ^x hdx


Illustration
Chap 12 Integration Page 153

EXAMPLE 12.16 EXAMPLE 12.21

Evaluate following integral : Evaluate following integral :
(i) bx + 1 l dx (ii)
2 4 2 3
− x2 + x − 1 dx
# (1 +x x) (i) x 2+ x + 1 dx
# #x
2

x# dx
x −x+1
(ii)
x−1


Sol :

Sol :

Click : www.nodia.study/lema/lm116 Click : www.nodia.study/lema/lm121

EXAMPLE 12.17
EXAMPLE 12.22
Evaluate following integral :
Evaluate following integral :
(i) #3 2+x
dx (ii) # (x + e
e x
+ ee) dx 3
(i) x + 3x + 4 (ii)
# # (1 - x) x dx
x


Sol :


Sol :

Click : www.nodia.study/lema/lm117 Click : www.nodia.study/lema/lm122

EXAMPLE 12.18
Evaluate following integral : EXAMPLE 12.23
(i) # (2x + 3) dx
2
(ii) # (2 + 3x) (5 − x) dx If d f ^x h = 4x3 − 34 such that f ^2 h = 0 , find f ^x h.
dx x


Sol :

Sol :

Click : www.nodia.study/lema/lm118 Click : www.nodia.study/lema/lm123

EXAMPLE 12.19 EXAMPLE 12.24

x ^3x2 + 2x + 3h dx
Evaluate following integral :
6 (x + 1) (x − 1)
Evaluate : #
(i) x 2 + 1 dx (ii)
# # dx
x +1 x2

Sol :


Sol :

Click : www.nodia.study/lema/lm124
Click : www.nodia.study/lema/lm119

EXAMPLE 12.25
EXAMPLE 12.20 Write the anti-derivative of c 3 x + 1 m.
Evaluate following integral : x


Sol :
(i) x c x 2 - 22 m dx
# (ii) # 1 2
c x - x m dx
x


Sol :
Click : www.nodia.study/lema/lm125

Click : www.nodia.study/lema/lm120
Page 154 Integration Chap 12

EXAMPLE 12.26
Click : www.nodia.study/lema/lm130
Evaluate following integral :

# ^x +x1h dx
2
(i) # ^1 - x h x dx (ii)

Sol :

E X ERCISE 1 2 . 2
Click : www.nodia.study/lema/lm126 Evaluate the following Integrals :
2a b
1. #
c x − x2 + 3c x m dx
3 2

Ans : 4a x + b + 9c x 3 + C
5
EXAMPLE 12.27
x 5
Evaluate following integral :
3x − 1 dx. (ii)
(i) #
^x + 2h2
# 3x3-x 1 dx


Sol :
2. # bx + 2ex − 1 l dx
3/2
x
Ans : 2 x 2 + 2ex − log x + C
5

5
Click : www.nodia.study/lema/lm127
3. # (x + x ) 3 dx

EXAMPLE 12.28 Ans : 1 x 4 + 2 x 2 + 6 x 2 + x3 + C

5 7

4 5 7
Evaluate following integral :
x+5 x+7
(i) #
3x2 + 13x − 10
dx (ii) # 3x 2
+ 25x + 28
dx

Sol : 4. # bx 2
− e3x + 2 − 3x −
10 − x l
1 dx
3
Ans : x − 1 e3x − 2 (2 − 3x) 2 + log (10 − x) + C
3

3 3 9
Click : www.nodia.study/lema/
lm128
5. #d 4 n
3 - x x dx
x
Ans : (i) 6x 2 − 1 x 2 + C
1 5

10
EXAMPLE 12.29
Evaluate following integral :
(i) # 3
x $ dx (ii) # 5e 4 logx
dx
#b xl
6. 2 dx
2x +


Sol :
Ans : 2 2 b 1 x 2 + x 2 l + C
3 1

Click : www.nodia.study/lema/lm129
7. # c 3x + 3x2 − 14x + 10 + 32 m dx
3
x x
EXAMPLE 12.30 Ans : 3 x 4 + x3 − 7x2 + 10 log x − 3 + C
2 3 4 4 x
Find the integral of 1 + x + x + x + x + ...
2 3 4


Sol :
8. # ^a x
+ xa + log a + x h dx
x a+1 2
Ans : a + x + x $ log a + x + C
log a a + 1 2
Chap 12 Integration Page 155

3. 4. To evaluate #x n-1
f ^xn h dx or # x1 f ^x hdx ,
n
put
9. d x + 1 + 2x n dx
# xn = t
x
F _x, ^αx + β h1/p i dx , p > 1, an integer,
x
Ans : (i) 2 x 2 + 2x 2 + 2 + C #
3 1

3 log 2 5. To evaluate
put ^αx + β h1/p = t .

This method involves the following steps:

I:

Step
Choose a new variable y = g ^x h (where g ^x h is suitably
12.7 Integration by Substitution chosen).

Some functions can be integrated directly by the use of
II:

Step

standard integrals while there exist some functions which Determine the value of dx by using
= gl^x h
cannot be integrated directly but can be reduced to the dy

standard integrals by proper substitution i.e., by the dx
introduction of a new variable. The method of evaluating i.e., dy = gl^x h dx
an integral by reducing it to standard form by a substitution

III:

Step
is called integration by substitution.
Make the substitution in given integral to get a new
A Special Form integral in the variable y .
If # f ^x hdx = F ^x h + C , then
IV:

Step

F ^ax + b h Integrate the new integral.

# f ^ax + bhdx =
a
+ C, a!0

V:

Step
Replace the value of y to get the value of given integral
PROOF :
in terms of x .
Substituting ax + b = t , we have
EXAMPLE 12.31
a dx = dt ( dx = 1 dt Evaluate:
a
log x
Thus f ^ax + b h dx = f ^x h $ 1 dt = 1 f ^ t h dt
1 dx
# # a a # (i)
x #
dx (ii) # x log x

= 1 F^t h + C

Sol :
a
F ^ax + b h
= +C a!0
a
Hence, we have the following important rule:
Click : www.nodia.study/lema/lm131
If the integral of a function of x is known, then if x is
multiplied by a constant and to the product is added
EXAMPLE 12.32
another constant, the integral is of the same form but it
Evaluate:
is divided by the coefficient of x .
1 log x2
(i) #
x log x log log x
dx (ii) # x
dx
12.7.1 Selection of Proper Substitution


Sol :
There are no hard and fast rules for making suitable
substitutions. It is the experience which guides us best
for the selection of a proper substitution. However, some
useful suggestions are given below: Click : www.nodia.study/lema/lm132
1. If the integrand contains a t -ratio of f ^x h or logarithm
of f ^x h or an exponential function in which the index
is f ^x h, Put f ^x h = t . EXAMPLE 12.33
2. If the integrand is a rational function of ex , put ex = t log `1 + x1 j
.
Evaluate
x ^x + 1h
# dx
Page 156 Integration Chap 12

Sol :
Click : www.nodia.study/lema/lm138

Click : www.nodia.study/lema/lm133 EXAMPLE 12.39

_ 1+ x i
3 5

Evaluate : # x
dx
EXAMPLE 12.34


Sol :
Evaluate #xe 2 x3
dx


Sol :

Click : www.nodia.study/lema/lm139
Click : www.nodia.study/lema/lm134
EXAMPLE 12.40
EXAMPLE 12.35 ^x + 1h^x + log x h2
Evaluate:
Evaluate : # x
dx

#e #e
x
ex x ee x
(i) e dx (ii) ee ex dx

Sol :

Sol :

Click : www.nodia.study/lema/lm140
Click : www.nodia.study/lema/lm135
EXAMPLE 12.41
EXAMPLE 12.36 ^xex + 1h^ex + log x hn
Evaluate : # x
dx
#7
x
77 x
Evaluate 77 7x dx


Sol :
^xex + 1h^ex + log x hn


Sol :
Let I = # x
dx

Substituting ex + log x = y we have

Click : www.nodia.study/lema/lm136
bex + x1 l dx = dy ( c xe x+ 1 m dx = dy
x

EXAMPLE 12.37 Thus I = # y dy

n

2x −2x
Evaluate : e2x − e−2x dx yn + 1 ^ex + log x hn + 1
e +e
# =

^n + 1h
+C =
^n + 1h
+C


Sol :

EXAMPLE 12.42
Click : www.nodia.study/lema/lm137 Evaluate : # x^1 +1log x h dx


Sol :

EXAMPLE 12.38
Evaluate: Click : www.nodia.study/lema/lm142
9 x
# 10x x+ +1010log 10 dx
x−1
+ ee − 1 dx (ii)
(i) #ee x
+ xe 10 x

Sol :
Chap 12 Integration Page 157

EXAMPLE 12.43

Sol :

^1 + log x h2
Evaluate : # x
dx .

Sol : Click : www.nodia.study/lema/lm148

Click : www.nodia.study/lema/lm143 EXAMPLE 12.49

Evaluate : #x x + 2 dx


Sol :

EXAMPLE 12.44
^x - x h4
1
4
Evaluate : # x5
Click : www.nodia.study/lema/lm149


Sol :

EXAMPLE 12.50

Click : www.nodia.study/lema/lm144
Evaluate : # 1 +1e −x dx


Sol :

EXAMPLE 12.45
x2 Click : www.nodia.study/lema/lm150
Evaluate : #x 4
+ 3x 2 + 2
dx


Sol :

EXAMPLE 12.51
1
(x 4 - x) 4
Click : www.nodia.study/lema/lm145 Evaluate : # x5
dx


Sol :

EXAMPLE 12.46 Click : www.nodia.study/lema/lm151

x dx
Evaluate: #
a - x3
3

Sol :
EXAMPLE 12.52
Evaluate : #x 2x
(1 + log x) dx


Sol :
Click : www.nodia.study/lema/lm146

EXAMPLE 12.47 Click : www.nodia.study/lema/lm152

Evaluate : #2 x+3
dx


Sol :
EXAMPLE 12.53
x 3 dx
Evaluate : # (x 2
+ 1)3
Click : www.nodia.study/lema/lm147

Sol :

EXAMPLE 12.48 Click : www.nodia.study/lema/lm153

Evaluate : b 1 − x l ex dx
#
2

1+x
Page 158 Integration Chap 12

EXAMPLE 12.54
Evaluate : # (4x + 2) x 2 + x + 1 dx


Sol :

Click : www.nodia.study/lema/lm154

EXAMPLE 12.55 E X ERCISE 1 2 . 3

Evaluate : #e 3 logx
(x 4 + 1) −1 dx
1. Evaluate the Following Integrals :


Sol : x2 dx
(i) #
1 + x3
(ii) x 2x2 + 1 dx#
Ans : (i) 1 log 1 + x3 + C (ii) 1 ^2x2 + 1h2 + C
3

3 6
Click : www.nodia.study/lema/lm155

2. Evaluate the Following Integrals :

EXAMPLE 12.56
#6 # x + x1log x dx
x
66 x
(i) 66 6x dx (ii)
1
Evaluate : # x +x
dx
1 66 + C (ii) log 1 + log x + C
6x
Ans : (i)


Sol : (log 6) 3

3. Evaluate the following integrals:

Click : www.nodia.study/lema/lm156 (i)
eax − e−ax dx
#
ax −ax (ii)
ex + 1 dx
#
e +e ex + x
Ans : (i) 1 log eax + e−ax + C (ii) log ex + x + C
a
EXAMPLE 12.57
e 2x dx
Evaluate : x#
e +1
4. Evaluate the following integrals:
^1 + x h


Sol : 1 4

(i) x `1 + x j dx (ii)
# #
1 3 4
2 2 dx
x
Ans : (i) 8 `1 + x 2 j4 + C (ii) 2 ^1 + x h + C
5
3 5

Click : www.nodia.study/lema/lm157 15 5

EXAMPLE 12.58 5. Evaluate the following integrals:

1 x
Evaluate : e
(2 + 3 logx)
# x
dx (i) #x ^4 + 3 x h
3 dx (ii)
^2x + 3h
2 #
2 dx

1 1
4 ^2x2 + 3h
Ans : (i) − 2 + C (ii) − +C
3 ^4 + 3 x h


Sol :

Click : www.nodia.study/lema/lm158 6. Evaluate the following integrals:

x-1 ^x + 1h^x + log x h2
(i) #
x ^x - log x h2
dx (ii) #x
dx

Ans : (i) − 1 + C (ii) 1 ^x + log x h3 + C

x − log x 3

7. Evaluate the following integrals:

Chap 12 Integration Page 159

# e ^a + e h dx # f ^x h g^x hdx = f ^x h # g^x hdx − # :f l^x h # g^x hdx Ddx

e−1 x−1
(i) # x x ++ ee
e x dx (ii) x bx 6

Ans : (i) 1 log ^xe + ex h + C (ii) e−x − 1 + C which proves the theorem.
e x


Note
1. While integrating a product of two functions by the
8. Evaluate the following integrals: rule of integration by parts, the choice of the order in
a x dx (ii) ax + 1 $ xdx which the two functions are to be taken is important.
(i)
x
# # 2

The following rule helps us in choosing the first

x function:
Ans : (i) 2a + C (ii) 1 $ ax + 1 + C 2

log a 2 log a If two functions are of different types, take the

first function to be the function when comes first in
the word ILATE where
x−1
9. Evaluate # 3x 2
− 6x + 1
dx a. ‘I’ stand for the inverse circular function like
sin-1 x , tan-1 x etc.
Ans : 1 log ^3x2 − 6x + 1h + C b. ‘L’ stands for the logarithmic function.
6
c. ‘A’ stands for the algebraic function (like
polynomials).
n−1 d. ‘T’ stands for the trigonometric function.
10. Evaluate # a x+ bx n dx
e. ‘E’ stands for exponential function.
Ans : 1 log ^a + bxn h + C
2. In applying the rule of integration by parts, there is
bn no need to add constant of integration when we write
the integral of the second function. The constant of
integration must be added in the final result.
3. It is worth noticing that the rule of integration by parts
is not applicable to product of functions in all cases.
12.8 Integration by Parts
For example, this rule does not work for #
x cos x dx
In this section, we shall learn the method of . Because there does not exist any function whose
integration by parts. This method is useful in derivative is x cos x .
integrating the product of functions.


Theorem
Let f ^x h and g ^x h be two continuously differentiable
EXAMPLE 12.59
functions. Then,
Evaluate:
# f ^x h g^x hdx = f ^x h g ^x h dx −
# # :f l^x h # g^x hdx Ddx (i) # xe x
dx (ii) # xeax + b
dx

Sol :
PROOF :
Let u ^x h and v ^x h be two continuously differentiable
functions, then by product rule of differentiation, we have
Click : www.nodia.study/lema/lm159
dx ^ h ^ h ^ h ^ h ^ h ^ h
d 7u x v x A = u x vl x + ul x v x

Integrating both sides w.r.t. x , we get

EXAMPLE 12.60
dx ^ h ^ h ^ h ^ h ^ h ^ h
d 7u x v x A dx = 7u x vl x + ul x v x A dx
# # Evaluate : # x2 7x
dx
u ^x h v ^x h = # u ^x h vl^x h dx + # ul^x h v ^x h dx

Sol :

# u^x h vl^x hdx = u^x h v^x h − # ul^x h v^x hdx ...(1)

Let u ^x h = f ^x h and vl^x h = g ^x h. Then, ul^x h = f l^x h and Click : www.nodia.study/lema/lm160
v ^x h = g ^x h dx .
#
From (1), we have
Page 160 Integration Chap 12

EXAMPLE 12.61
Click : www.nodia.study/lema/lm166
Evaluate : #xm ax
dx


Sol :

EXAMPLE 12.67
^2x - 5h e
2x

Click : www.nodia.study/lema/lm161 Evaluate : #

^2x - 3h3
dx.


Sol :

EXAMPLE 12.62 Click : www.nodia.study/lema/lm167

Evaluate : #xe 2 -7x
dx

Sol :
EXAMPLE 12.68
Evaluate : # x log x dx


Sol :
Click : www.nodia.study/lema/lm162

EXAMPLE 12.63
Click : www.nodia.study/lema/lm168
Evaluate : #x n
log ^ax h dx

Sol : EXAMPLE 12.69

Evaluate : # x e dx
3 x

Sol :

Click : www.nodia.study/lema/lm163
Click : www.nodia.study/lema/lm169
EXAMPLE 12.64
Evaluate : # log x dx
EXAMPLE 12.70


Sol : Evaluate : #e x
dx


Sol :

Click : www.nodia.study/lema/lm164
Click : www.nodia.study/lema/lm170
EXAMPLE 12.65
Evaluate : # log 2x dx . EXAMPLE 12.71
log (log x)


Sol :
Evaluate : # x
dx

Sol :
Click : www.nodia.study/lema/lm165

Click : www.nodia.study/lema/lm171
EXAMPLE 12.66
Evaluate # ^log x h dx2

Sol :
Chap 12 Integration Page 161

EXAMPLE 12.72
Click : www.nodia.study/lema/lm177
Evaluate : # (x + 1) $ e 2x + 3
dx


Sol :

Click : www.nodia.study/lema/lm172 E X ERCISE 1 2 . 4

Evaluate the following Integrals :
EXAMPLE 12.73 1. # xe 4x
dx
log (1 + x 2)
Evaluate : # x3
dx
Ans : 1 xe 4x − 1 e 4x + C
4 16


Sol :

2. # x3 5x + 2
dx
Click : www.nodia.study/lema/lm173 5x + 2 5x + 2
Ans : x 3 − 3 +C
5 log 3 (5 log 3) 2

EXAMPLE 12.74
Evaluate :
log x
# dx
3. # x log xdx
2

(x + 1)2
3 3


Sol : Ans : x log x − x + C
3 9

Click : www.nodia.study/lema/lm174 4. # x log xdx

5

Ans : 1 x6 log x − 1 x6 + C
6 36
EXAMPLE 12.75
x 2 + 1 {log (x 2 + 1) − 2 log x}
Evaluate : # x4
dx
5. # x log 2xdx


Sol : 2 2
Ans : x log 2x − x + C
2 4

Click : www.nodia.study/lema/lm175
6. # x e dx
2 x

Ans : ex (x2 − 2x + 2) + C
EXAMPLE 12.76
ex ^x - 3h
Evaluate : #
^x - 1h
dx


Sol : 7. # x (log x) dx 2

2 2 2
Ans : x (log x) 2 − x log x + x + C
2 2 4
Click : www.nodia.study/lema/lm176
8. # log 10 xdx
EXAMPLE 12.77 Ans : 1 (x log x − x) + C
^x + 1h e log 10
2 x
Evaluate : #
^x + 1h2
dx .


Sol :
Page 162 Integration Chap 12

EXAMPLE 12.78
9. # (x + 1) e log (xe ) dx
x x
2x + 5 dx
x x
Evaluate : #x 2
+ 7x + 12
Ans : (xe ) [log (xe ) − 1] + C

Sol :

10. # (x 2
+ 1) log xdx Click : www.nodia.study/lema/lm178
Ans : b x + x l log x − x − x + C
3 3

3 9
EXAMPLE 12.79
1
Evaluate #
x ^x + 1h
dx

Sol :
12.9 Integration using Partial Fraction
This method is useful in integrating the rational
algebraic functions. Before proceeding with the Click : www.nodia.study/lema/lm179
method, let us first understand the following basic
terms:
1. Rational Algebraic Function : A function of the form Q^^x hh
Px
EXAMPLE 12.80
, where P ^x h and Q ^x h are polynomials in x and
Q ^x h ! 0 , is called a rational algebraic function or
Evaluate # ^x − 1h^x +1 1h^4x − 5h dx
rational function.

Sol :
2. Proper Rational Function : If degree of P ^x h < degree
of Q ^x h, then the rational function is called proper
rational function.
3. Improper Rational Function : If degree of P ^x h $ degree Click : www.nodia.study/lema/lm180
of Q ^x h, then the rational function is called improper
rational function.

EXAMPLE 12.81
12.9.1 Partial Fractions of Type I 2
Evaluate : x +3 6x − 3 dx
#
In this type, we shall consider proper rational functions x − 4x
having denominators expressible as product of distinct

Sol :
linear factors.
In other words, we shall evaluate integrals of the
form , where P ^x h and Q ^x h satisfy the following:
1. Degree of P ^x h < Degree of Q ^x h. Click : www.nodia.study/lema/lm181
2. Q ^x h takes the form Q ^x h = ^x − a1h^x − a2h ... ^x − an h,
where a1, a2, ..., an are all distinct constants,
We have the following working rule: EXAMPLE 12.82
2x + 6


Step I: Evaluate: #x 3
+ 4x2 + x − 6
dx
P ^x h
= A1 + A2 + ... + An ,
Q ^x h
Write

Sol :
x − a1 x − a 2 x − an
where A1, A2, ..., An are constants.

II:

Step Click : www.nodia.study/lema/lm182
Equate L.H.S. and R.H.S. to determine A1, A2, ..., An .

III:

Step
EXAMPLE 12.83
Evaluate the given integral.
1 - x2 dx
Evaluate : #
x ^1 - 2x h
Chap 12 Integration Page 163

Sol :

Sol :

Click : www.nodia.study/lema/lm183 Click : www.nodia.study/lema/lm186

EXAMPLE 12.84 EXAMPLE 12.87

2x
#
2
Evaluate :
^x 2
+ 1h^x + 3h
2 dx . Evaluate : # ^x −x1h+^x1+ 3h dx
2


Sol :


Sol :

Click : www.nodia.study/lema/lm184
Click : www.nodia.study/lema/lm187
12.9.2 Partial Fractions of Type II
In this type, we shall consider proper rational functions EXAMPLE 12.88
5x2 + 6 dx
having denominators expressible as product of linear Evaluate : #
x2 ^2x + 1h
factors such that some of them are repeating.
In other words, we shall evaluate integrals of the

Sol :
form # P^x h
Q^x h
dx where P ^x h and Q ^x h satisfy the following:

1. Degree of P ^x h < Degree of Q ^x h.

2. Q ^x h takes the form Click : www.nodia.study/lema/lm188
Q ^x h = ^x − a hk ^x − a1h^x − a2h ... ^x − an h where
a, a1, a2, ..., an are all distinct constants.
We have the following working rule: EXAMPLE 12.89
2

I:

Step Evaluate 2x3 + 3x2 + 5 dx
#
x + 2x + x
Write


Sol :
P _x i
= A1 + A2 + ... + Ak k + A1 + A2 + ... + An
l l l
Q _x i x − a _x − a i2 _x − a i x − a1 x − a2 x − an

where A1l, A2l, ..., Akl, A1, A2, ..., An are constants.

II:

Step Click : www.nodia.study/lema/lm189
Equate L.H.S. and R.H.S. to determine
A1l, A2l, ..., Akl, A1, A2, ..., An .
EXAMPLE 12.90

III

Step 2
Evaluate x + 5x +3 1 dx
#
Evaluate the given integral. ^x + 1h


Sol :
EXAMPLE 12.85
3x − 1 dx
Evaluate :
^x + 2h2
#


Sol : Click : www.nodia.study/lema/lm190

Click : www.nodia.study/lema/lm185
EXAMPLE 12.91
x 4 + 1 dx
Evaluate : #
x ^x2 + 1h2
EXAMPLE 12.86
Evaluate : # ^x −32xh+^x1+ 2h dx
2

Sol :
Page 164 Integration Chap 12

Click : www.nodia.study/lema/lm191 12.9.3 Partial Fractions of Type III

In this type, we shall consider improper rational functions.
In other words, we shall evaluate integrals of the form
EXAMPLE 12.92 # QP^^xx hh dx where P ^x h and Q ^x h satisfy the condition that
degree of P ^x h $ degree of Q ^x h.
Evaluate : # ^x + 1hx^x + 2h dx
2
We have the following working rule:


Sol :

I

Step
Divide P ^x h by Q ^x h and find quotient S ^x h and remainder
Click : www.nodia.study/lema/lm192 R ^x h. Then,
P ^x h R ^x h
= S ^x h +
Q ^x h Q ^x h
EXAMPLE 12.93 where degree of R ^x h < degree of Q ^x h.
3x + 1
Evaluate : # ^x − x − x + 1h
3 2 dx.
II

Step


Sol : Write the given integral as follows
P ^x h R ^x h
# dx = S ^x h dx +
# #
Q ^x h Q ^x h
dx

Click : www.nodia.study/lema/lm193 Hence, the given integral can be evaluated by evaluating

the integrals on R.H.S., using any of the earlier methods.

EXAMPLE 12.97
EXAMPLE 12.94 2
ex dx Evaluate : x + 5x + 2 dx
#
Evaluate : # ^e x
+ 2h^ex − 1h2

Sol :
x+3


Sol :

Click : www.nodia.study/lema/lm194 Click : www.nodia.study/lema/lm197

EXAMPLE 12.98
EXAMPLE 12.95 4 3 2
Evaluate : 2x + 7x + 6x dx
# x ^x + 2h
3x + 5
Evaluate #
x3 − x2 − x − 1
dx .


Sol :


Sol :

Click : www.nodia.study/lema/lm195 Click : www.nodia.study/lema/lm198

EXAMPLE 12.99
^x3 + 8h^x − 3h
EXAMPLE 12.96 Evaluate : #
x 2 − 2x + 4
dx
x2 + x + 1 dx .
Evaluate : #
^x + 1h2 ^x + 2h

Sol :

Sol :

Click : www.nodia.study/lema/lm199
Click : www.nodia.study/lema/lm196
EXAMPLE 12.100
2
Evaluate : x + 3x + 5 dx
#3x + 2
Chap 12 Integration Page 165

Sol :
5. Integrate # x^x 1+ 1h dx
5

Ans : 1 log d 5x n + C
5

5 x +1
Click : www.nodia.study/lema/lm200

6. Integrate # 1 + 3edx+ 2e x 2x
EXAMPLE 12.101
^x + 1h^x + 2h Ans : x + log ^ex + 1h − 2 log ^2ex + 1h + C
Evaluate : #
^x + 3h^x + 4h
dx

Sol :
2x dx
7. Integrate # ^x
+ 1h^x2 + 3h
2

Ans : 1 log d x2 + 1 n + C
2
Click : www.nodia.study/lema/lm201 2 x +3

EXAMPLE 12.102 2

x2 + 1 dx
8. Integrate # 16 x- x dx
#
6
Evaluate 2
x − 5x + 6
Ans : 1 log d 4 + x3 n + C
3


Sol :
24 4−x

Click : www.nodia.study/lema/lm202 9. Integrate #x 4

x3 dx
+ 3x 2 + 2
Ans : − 1 log ^x2 + 1h + log ^x2 + 2h + C
2

Exercise 12.4 10. Integrate # ^2xx +−33hx^x−+71h dx 2

2x + 1 Ans : − 1 ^2x + 3h + log ^x + 1h + 3 + C

1. Integrate #
^x + 1h^x − 2h
dx 2 x+1

Ans : 1 log ^x + 1h + 5 log ^x − 2h + C

3 3

Applied Mathematics
1
2. Integrate #
2x2 + x − 1
dx CBSE Class XI and XII Commerce
A Text Book by NODIA Press
Ans : 1 log c 2x − 1 m + C Based on New Syllabus Released By CBSE
3 x+1
No Missing Topic No Extra Topic
3. Integrate # x 2−x +x −5 2 dx
For Teachers
2

Ans : 3 log ^x − 2h − log ^x + 1h + C Digital Specimen copy available for evaluation

Whatsapp at 94140 63210
Hard Specimen Book Available for Teachers who adopt this book
2
as Text book and Recommend as Text Book to Students
4. Integrate # ^x - axh^x - bh dx Word file of All Questions available also for Teachers
Ans : x + a log ^x − a h + b log ^x − b h + C
2 2 Hard Specimen book will be given to those teachers only
whose students have purchased book.
a−b b−a
Page 166 Definite Integration Chap 13

CHAPTER 13

Definite Integration

13.1 Introduction
y = dA
Let f be a continuous function defined on the closed dx
interval 6a, b@. Then, we denote the definite integral b
dA dx = AdA l b

of f on 6a, b@ as

a
# y dx = #
a dx 0
#
If x = a , then A = 0 and if x = b , then A = area EFGH
f ^x h dx ,
b
#a = Al (say)
where a is called the lower limit of the integral and b is
# y dx = 5A? = Al = areaEFGH
b
Al
Then 0
called the upper limit of the integral. a

area EFGH = # y dx = # f ^x h dx
b b

a a

13.2 Definite integration as area under the

curve Geometrically, the value of the definite integral
f ^x h dx
b

Let EF represent the curve y = f ^x h as shown in #

a
Figure 13.1. Then, area EFGH represents the area represents the area bounded by the curve y = f ^x h, the x
bounded by the curve y = f ^x h, the x -axis and the -axis and the ordinates x = a and x = b . So, the definite
ordinates x = a and x = b . integral always has a unique value.

13.3 Fundamental Theorem of Integral

Calculus
Figure 13.1 We now state an important theorem (without
Let P ^x, y h and R ^x + ∆x, y + ∆y h be any two
proof) of integral calculus known as “Fundamental
Theorem of Integral Calculus’. This theorem acts
neighbouring points on the curve. Draw PM and RN
as a link between indefinite integration and definite
perpendicular to x -axis. Let A and A + ∆A denote the
integration.
area EPMH and area ERNH respectively.
Then, ∆A = Area PRNM First Fundamental Theorem of Integral Calculus
Clearly, area PSNM # area PRNM # area QRNM Let f ^x h be a continuous function defined on the closed
interval 6a, b@. Let A ^x h be the area function defined as
y ∆x # ∆A # ^y + ∆y h ∆x
A ^x h = # f ^x h dx
x

# ^y + ∆y h

y # ∆A a
∆x
Then, Al^x h = d c # f ^x h dx m = f ^x h for all x ! 6a, b@.
x
Taking limit as ∆x " 0 , we get
dx a
y # dA # y ( ∆y " 0 , as ∆x " 0 )
dx
Chap 13 Definite Integration Page 167

This is First Fundamental Theorem of Integral Calculus.

^4x3 − 5x2 + 6x + 9h dx
2
(ii) #
1
Second Fundamental Theorem of Integral Calculus
Let f ^x h be a continuous function defined on the closed

Sol :
interval 6a, b@. Let F ^x h be an anti-derivative of f . Then,

# f ^x hdx = 6F^x h@ = F ^b h − F ^a h Click : www.nodia.study/lema/mm101

b
b
a
a

This is Second Fundamental Theorem of Integral Calculus.

Application of Second Fundamental Theorem
In this section, we shall evaluate the definite integrals EXAMPLE 13.2
directly by using the methods done in the previous chapter. #
3 -x
Evaluate the integral e dx .
We have the following working rule: 0


Sol :


Step I:
Evaluate the indefinite integral # f ^x hdx . Click : www.nodia.study/lema/mm102
Let # f ^x hdx = F^x h
[Here, F ^x h is anti-derivative of f ^x h]


Step II: EXAMPLE 13.3
^x2 + 1h dx .
By second fundamental theorem of integral calculus, we 7

have
Evaluate the integral #
−7

# f ^x hdx = 7F^x hA = F ^b h − F ^a h
b
b

Sol :
a
a

Note
Click : www.nodia.study/lema/mm103
1. While evaluating f ^x h dx in Step I, there is no need
#
to take the constant of integration C because if we
take # f ^x hdx = F ^x h + C , then

# f ^x hdx = 7F^x h + CA
b
b
a
EXAMPLE 13.4
a 1

= 7F ^b h + CA − 7F ^a h + CA
Evaluate the integral #e
-1
x
dx .

= F ^b h − F ^a h


Sol :

i.e., the constant of integration disappears while
evaluating the definite integral. Click : www.nodia.study/lema/mm104
2. While evaluating the integral by substitution method,
suppose the original variable x is substituted by a
new variable t , then special care has to be taken while
writing the new limits of integration. The limits of the
EXAMPLE 13.5
new variable t are simply the values of t corresponding 9
x
to the original variable x . They can be obtained by Evaluate : #
4 ^30 - x3/2h
2 dx
Substituting the limits of x in the substitution relation
between x and t .

Sol :

3. If it is not possible to evaluate the given integral using

above working rule, then we evaluate the integral Click : www.nodia.study/lema/mm105
using the methods discussed in previous chapter.

EXAMPLE 13.1
EXAMPLE 13.6
Evaluate the following integrals: 1
2x dx
(i) #
3
2
x dx
Evaluate : # 0 1 + x2
2
Page 168 Definite Integration Chap 13

Sol :
Click : www.nodia.study/lema/mm111
Click : www.nodia.study/lema/mm106

EXAMPLE 13.12
2
x
Evaluate : #
1 ^x + 1h^x + 2h
dx
EXAMPLE 13.7

Sol :
2
1
Evaluate : # 1 x ^1 + log x h2
dx


Sol : Click : www.nodia.study/lema/mm112

Click : www.nodia.study/lema/mm107
EXAMPLE 13.13
3
1
Evaluate : #
1 x ^x + 1h
2 dx
EXAMPLE 13.8

Sol :
2
Evaluate : # 0
x 2 - x dx
Click : www.nodia.study/lema/mm113


Sol :

Click : www.nodia.study/lema/mm108
EXAMPLE 13.14
1
x2 − 1 dx
Evaluate : #
0 x + x2 + 1
4

Sol :
EXAMPLE 13.9
# x^1 - x h dx
1
n
Evaluate :
0 Click : www.nodia.study/lema/mm114


Sol :

Click : www.nodia.study/lema/mm109
EXAMPLE 13.15
1
1 − x2 dx
Evaluate : #
0 ^x + 1h
2 2

Sol :

EXAMPLE 13.10
1
Evaluate : # −1
5x 4 x5 + 1 dx Click : www.nodia.study/lema/mm115


Sol :

Click : www.nodia.study/lema/mm110
EXAMPLE 13.16
1 ^x - x 3h
1/3
Evaluate : #
1/3 x4
dx

Sol :
EXAMPLE 13.11
2
1
Evaluate: # 4 + x − x2
dx
0
Click : www.nodia.study/lema/mm116


Sol :
Chap 13 Definite Integration Page 169

EXAMPLE 13.17
Click : www.nodia.study/lema/mm122
;x1 - 1 2 E e2x dx
2
Evaluate :
1
# 2x


Sol :

Click : www.nodia.study/lema/mm117 EXAMPLE 13.23

^x + 1h dx
1
Evaluate : #−1


Sol :

EXAMPLE 13.18
1
1
Click : www.nodia.study/lema/mm123
Evaluate : #
0 1+x − x
dx


Sol :

Click : www.nodia.study/lema/mm118 EXAMPLE 13.24

3
1 dx
Evaluate :
2 x #


Sol :

EXAMPLE 13.19
2 3
Click : www.nodia.study/lema/mm124
x - 1 dx .
Evaluate :
1
# x2


Sol :

Click : www.nodia.study/lema/mm119 EXAMPLE 13.25

^4x − 5x + 6x + 9h dx
2
Evaluate : #1
3 2

Sol :

EXAMPLE 13.20 Click : www.nodia.study/lema/mm125

4
x dx .
Evaluate : #
2 x2 + 1


Sol :

Click : www.nodia.study/lema/mm120 EXAMPLE 13.26

5
Evaluate : # e dx
4
x

Sol :

EXAMPLE 13.21 Click : www.nodia.study/lema/mm126

8 x − 2 + x − 3 + x − 5 B dx
5
Evaluate : #
2


Sol :

Click : www.nodia.study/lema/mm121 EXAMPLE 13.27

a

If # (3x 2
+ 2x + 1) dx = 11, find real values of a .
1


Sol :
EXAMPLE 13.22
2
x2 dx .
Evaluate : #
−2 1 + 5
x Click : www.nodia.study/lema/mm127


Sol :
Page 170 Definite Integration Chap 13

EXAMPLE 13.28 EXAMPLE 13.33

1
# xe dx
3
dx
Evaluate :
0
x
Evaluate :
2
# x 2
-1


Sol :


Sol :

Click : www.nodia.study/lema/mm133
Click : www.nodia.study/lema/mm128

EXAMPLE 13.34
EXAMPLE 13.29 1

1
Evaluate : #0
2
x ex dx
Evaluate : # 11 −+ xx dx

Sol :
0


Sol :
Click : www.nodia.study/lema/mm134
Click : www.nodia.study/lema/mm129

EXAMPLE 13.35
1
x dx
EXAMPLE 13.30
Evaluate : #0
2
x +1
2

Sol :
Evaluate : # log x dx


Sol :
1
Click : www.nodia.study/lema/mm135

Click : www.nodia.study/lema/mm130
EXAMPLE 13.36
2
Evaluate : #0
x x + 2 dx


Sol :
EXAMPLE 13.31
e
x
Evaluate : # ex (1 + x log x) dx Click : www.nodia.study/lema/mm136
1


Sol :

Click : www.nodia.study/lema/mm131 EXAMPLE 13.37

# f ^x h g ^x h dx = 2 # f ^x h dx , if f and g are
a a
Show that
0 0

defined as f ^x h = f ^a − x h and g ^x h + g ^a − x h = 4 .
EXAMPLE 13.32

Sol :
1

If # (3x 2
+ 2x + a) dx = 0 , find a .
0 Click : www.nodia.study/lema/


Sol :
mm137
Click : www.nodia.study/lema/mm132
Chap 13 Definite Integration Page 171

EXAMPLE 13.38
2
dx
Click : www.nodia.study/lema/mm143
Evaluate :
1
# x


Sol :

Click : www.nodia.study/lema/mm138 EXAMPLE 13.44

b log x
Evaluate :
a
# x
dx


Sol :

EXAMPLE 13.39
2 Click : www.nodia.study/lema/mm144
Evaluate : #
1
(x - 1) 3 dx


Sol :

Click : www.nodia.study/lema/mm139 EXAMPLE 13.45

1
Evaluate : # | 5x - 3 | dx
0


Sol :

EXAMPLE 13.40
5 Click : www.nodia.study/lema/mm145
Evaluate : #
-3
| x | dx


Sol :

Click : www.nodia.study/lema/mm140 EXAMPLE 13.46

#
c
Find the value of C > 0 for which x (1 − x) dx = 0
0


Sol :

EXAMPLE 13.41
2 Click : www.nodia.study/lema/
Evaluate : # | 1 - x | dx
0 mm146


Sol :

Click : www.nodia.study/lema/mm141
EXAMPLE 13.47
1
Evaluate : # xe dx
0
x

Sol :
EXAMPLE 13.42
2
x
Evaluate : #
1 3−x + x
dx
Click : www.nodia.study/lema/mm147


Sol :

Click : www.nodia.study/lema/mm142
EXAMPLE 13.48
1
2x + 1 dx
Evaluate :
0
# x2 + x


Sol :

EXAMPLE 13.43
Evaluate : #
log 3
ex dx Click : www.nodia.study/lema/mm148
log 2 1 + ex


Sol :
Page 172 Definite Integration Chap 13

EXAMPLE 13.49
2
x+5
Click : www.nodia.study/lema/mm154
Evaluate : 3 #
1 3x2 + 13x − 10
dx


Sol :

Click : www.nodia.study/lema/mm149

EXAMPLE 13.55
EXAMPLE 13.50 If #
a
(3x 2 + 2x + 1) dx = 11, find real values of a .
4
x+7
Evaluate : #
0
2
3x + 25x + 28
dx


1

Sol :


Sol :

Click : www.nodia.study/lema/mm155
Click : www.nodia.study/lema/mm150

EXAMPLE 13.56
EXAMPLE 13.51 1
3 3
x − x2 + x − 1 dx .
Evaluate : # xe dx x

Evaluate :
0
# x−1

Sol :
0

Sol :
Click : www.nodia.study/lema/mm156
Click : www.nodia.study/lema/mm151

EXAMPLE 13.57
1
1 − x dx
EXAMPLE 13.52 Evaluate :
0 1+x
#
1
#
e

x ^1 + log x h
Evaluate : dx

Sol :
1


Sol :

Click : www.nodia.study/lema/mm157
Click : www.nodia.study/lema/mm152

EXAMPLE 13.58
2
EXAMPLE 13.53
2
3x − 1 dx
Evaluate : # log x dx
Evaluate: #
0 ^x + 2h
2


Sol :
1

Sol :

Click : www.nodia.study/lema/mm158
Click : www.nodia.study/lema/mm153

EXAMPLE 13.59
EXAMPLE 13.54 e ex
3
2x Evaluate :
1 x
#
(1 + x log x) dx
Evaluate : # ^x +2
1h^x + 3h
2 dx .
0

Sol :


Sol :
Click : www.nodia.study/lema/mm159
Chap 13 Definite Integration Page 173

EXAMPLE 13.60 7. Evaluate the following integrals:

x2 ^1 + x3h2 dx
1
If # 2
(3x + 2x + a) dx = 0 , find a . (i)
1
# xdx dx (ii)
#
1

0 0 1 + x2 0


Sol :
Ans : (i) 2 - 1, (ii) 7
9

Click : www.nodia.study/lema/mm160
8. Evaluate the following integrals:
5
dx 2
1
(i) #
4 ^x - 2h^x - 3h
(ii)
1 x ^x + 1h
4 dx #
Ans : (i) 5 log 5 + log 4 + 1 log 2 (ii) 1 log 32
6 7 3 3 4 17
E X ERCISE 13.1
1. Evaluate the following integrals: 9. Evaluate the following integrals:
^t + 1h dt (ii) ^x - b h dx
1 1
(i) #
4
2
#
a n (i) #
0
x
xe dx (ii) #
0
xex2 dx
0 b

Ans : (i) 76 , (ii) 1 ^a − b hn + 1 Ans : (i) 1 (ii) e - 1

3 n+1 2

2. Evaluate the following integrals: 10. Evaluate the following integrals:

4
3x + 21 2
5x2
(i) #
2
3x dx (ii) #
2
2x $ 3-x dx (i) # 2
0 3x + 25x + 28
dx (ii) 2
1 x + 4x + 3
dx #
1 1

Ans : (i) 6 , (ii) - 2 Ans : (i) log 4 (ii) 5 + 5 log 3 − 45 log 5

log 3 9 log 23 2 2 2 4

3. Evaluate the following integrals:

# ^1 − x h^x + 2hdx (ii) # ^2 + x h^3 − 5x hdx 13.4 Evaluation of Definite Integral Using
b 1
(i)
a 0 Properties
Ans : (i) 1 ^a3 − b3h + 1 ^a2 − b2h − 2 ^a − b h, (ii) 5 In this section, we shall study some fundamental
3 2 6
properties of definite integrals which are a very
useful tool for evaluating the definite integrals.
4. Evaluate the following integrals:
3 1 dx
# #
3
(i) dx (ii) 13.4.1 Properties 1 and 2
1 x3 1 x4
Ans : (i) 1 , (ii) 1 PROPERTY 1:
2 3
# f ^x hdx = # f ^t hdt
b b

a a

In other words, value of integration does not depend on

5. Evaluate the following integrals:
the variable of integration. So, we call the variable of
^aebx + e−x h dx (ii) dx
1 2
(i) #
0
#
−1 ^2x + 3h2 integration as dummy variable.

Ans : (i) a ^eb − 1h − 1 + 1, (ii) 3 PROOF :

b e 7
# f ^x hdx .
b
Consider the integral Substituting x = t we
a
have
6. Evaluate the following integrals: dx = dt
2
2 4
x + x dx IfPROPERTY
(i) # x 3x - 2 dx (ii) # 2x + 1
x = a , then
2: t = a and if x = b , then t = b , the we have

f ^x h=dx# =−
# f ^x#hdx f ^ t h#dt f ^x h dxThis proves property 1.
1 2 b b b a

Then,
Ans : (i) 326 , (ii) 57 - 5 a a a b
135 5
# f ^x h dx = 0
a
In particular,
a
Page 174 Definite Integration Chap 13

PROOF : EXAMPLE 13.62

Let F ^x h be an anti-derivative of f ^x h. 1 − 2x if − 1 # x 1 0
# f ^x hdx , where f ^x h = *1 + 2x
1
Evaluate
if 0 # x # 1
# f ^x hdx = 7F^x hA = F ^b h − F ^a h
b -1
b
Then, a
a

f ^x h dx =−7F ^x hAba


Sol :
#
a
and -
b

=− #F ^a h − F ^b h- = F ^b h − F ^a h
Click : www.nodia.study/lema/
# f ^x hdx =− # f ^x h dx mm162
b a
Hence,
a b

In particular, taking b = a ,we get

# f ^x h dx =− # f ^x h dx
a a

a a
EXAMPLE 13.63
# f ^x h dx = 0
a
2 2
a Evaluate : #
0
x - 3 dx

f ^x h dx = 0


Sol :
#
a
This prove Property 2.
a

Click : www.nodia.study/lema/mm163
EXAMPLE 13.61
x
#
a
Evaluate : dx
-a a - x2
2


Sol : EXAMPLE 13.64
5
Evaluate : #
−5
x + 2 dx
Click : www.nodia.study/lema/mm161

Sol :

Click : www.nodia.study/lema/mm164
13.4.2 Property 3

PROPERTY 3:
f ^x h dx = # f ^x hdx + # f ^x h dx
b
#
c c
EXAMPLE 13.65
a a b

` x + 3 − x j dx
4
PROOF : Evaluate : #
1

Let F ^x h be an anti-derivative of f ^x h.

Sol :

f ^x h dx = 7F ^x hAba = F ^b h − F ^a h ...(1)
b
Then, #
a
Click : www.nodia.study/lema/mm165
# f ^x h dx = 7F ^x hAbc = F ^c h − F ^b h ...(2)
c
and
b

# f ^x h dx = 7F ^x hAca = F ^c h − F ^a h ...(3)
c
and
a

Adding (1) and (2), we get EXAMPLE 13.66

_ x − 1 + x − 2 + x − 3 i dx
3

#
b
f ^x h dx + #
c
f ^x h dx = F ^b h − F ^a h + F ^c h − F ^b h
Evaluate : #
1
a b

Sol :

= F ^c h − F ^a h

f ^x h dx # Click : www.nodia.study/lema/mm166
c
=
[Using (3)]
a

f ^x h dx = # f ^x hdx + # f ^x h dx
b
#
c c
Hence,
a a b
This proves property 3.
Chap 13 Definite Integration Page 175

f ^2a − x h dx
EXAMPLE 13.67
#
a
2
=
[Using property 1]
Evaluate: # x3 - x dx 0

f ^x h dx = f ^2a − x h dx ...(2)
-1 2a
# #
a


Sol : Thus
a 0

From (1) and (2), we get

Click : www.nodia.study/lema/mm167
f ^x h dx =
# f ^x hdx + # f ^2a − x hdx
2a
#
a a

0 0 0

= # 7f ^x h + f ^2a − x hA dx
a

0

2 f ^x h dx if f ^2a − x h = f ^x h #
a

=* 0

13.4.3 Properties 4 and 5 0 if f ^2a − x h =− f ^x h
Hence
PROPERTY 4:

# f ^x hdx = * # ^ h
if f ^2a − x h = f ^x h
a

# f ^x h dx = # f ^a − x h dx f x dx 2
a a 2a

if f ^2a − x h =− f ^x h
0
0 0 0 0
PROOF :

# f ^a - x h dx .
a
Consider the integral This prove Property 5.
0

Substituting a - x = t we have
dx =− dt EXAMPLE 13.68
x
#
a
If x = 0 , then t = a and if x = a , then t = 0 , we have Evaluate : dx
0 x + a−x
f ^a - x h dx =− f ^ t h dt
0
# #
a

Sol :
Then,
0 a

f ^ t h dt
#
a
=
[Using property 2]
0
Click : www.nodia.study/lema/mm168
= # f ^x h dx
a
[Using property 1]
0

# f ^x h dx = # f ^a − x h dx
a a
Hence,
0 0 EXAMPLE 13.69
This proves property 4. 9
x3
Evaluate : #
0
3
x +3 9−x
dx
PROPERTY 5:

Sol :

f ^x h dx if f ^2a − x h f ^x h
# f ^x hdx = * #
a
2a 2

if f ^2a − x h =− f ^x h
0
0 0 Click : www.nodia.study/lema/mm169
PROOF :
Using property 3, we have
f ^x h dx = f ^x h dx + f ^x h dx ...(1)
2a 2a
# # #
a
EXAMPLE 13.70
0 0 a

log ; 1 - 1E dx
1

Consider the integral #

2a
f ^x h dx .
Evaluate : #
0 x
a

Substituting 2a - x = t we have

Sol :

x = 2a − t ( dx =− dt
If x = a , then t = a and if x = 2a , then t = 0 , we have Click : www.nodia.study/lema/mm170
Then,
f ^x h dx =− f ^2a − t h dt
2a 0
#
a
#
a 13.4.4 Property 6
PROPERTY 6:
f ^2a − t h dt #
a
=
[Using property 2]
f ^x h dx = f ^a + b − x h dx
b b
0 #
a
#
a
Page 176 Definite Integration Chap 13

PROOF :
From (1) and (2), we get
f ^a + b − x h dx .
b
Consider the integral #
a #
a
f ^x h dx = #
a
f ^− x h dx + #
a
f ^x h dx
-a 0 0
Substituting a + b − x = t we have
7f ^− x h + f ^x hA dx #
a
dx =− dt =

0
If x = a , then t = b and if x = b , then t = a , Then
2 f ^x h dx if f ^− x h = f ^x h #
a

f ^a + b − x h dx =− f ^ t h dt =* 0
b
# #
a

if f ^− x h =− f ^x h

a b 0
= f ^ t h dt f ^x h dx if f ^− x h = f ^x h
b
#
# f ^x hdx = * #
a
[Using property 2] a 2
Hence,
if f ^− x h =− f ^x h
a 0

= # f ^x h dx
b -a 0
[Using property 1]
a This proves property 7.

# f ^x hdx = # f ^a + b − x hdx
b b
Hence,
a a
This proves property 6.

EXAMPLE 13.72
log <ax2 − bx + c F dx
p/2 2
EXAMPLE 13.71 Evaluate : #− p/2 ax + bx + c
6
x
Evaluate : #1 7−x + x
dx

Sol :

Sol :
Click : www.nodia.study/lema/mm172
Click : www.nodia.study/lema/mm171
13.4.6 Property 8
13.4.5 Property 7 PROPERTY 8:
f ^x h dx = f ^x h dx + f ^2a − x h dx
2a
# # #
a a
PROPERTY 7:
0 0 0

# f ^x hdx = * # ^ h
if f ^− x h = f ^x h
a
a f x dx 2 PROOF :

if f ^− x h =− f ^x h
0
-a 0 Using property 3, we have
f ^x h dx = f ^x h dx + f ^x h dx ...(1)
2a 2a
# # #
a

If f ^− x h = f ^x h, then f is called even function.

If f ^− x h =− f ^x h, then f is called odd function.
0 0 a

f ^x h dx .
2a
Consider the integral #
a
PROOF :
Substituting 2a - x = t we have
Using property 3, we have
x = 2a − t ( dx =− dt
f ^x h dx = f ^x h dx + f ^x h dx ...(1)
0
# # #
a a
If x = a , then t = a and if x = 2a , then t = 0 , Then
-a −a 0

f ^x h dx =− f ^2a − t h dt
2a 0

# f ^x hdx . # #
0
Consider the integral
-a a a
Substituting x =− t we have
f ^2a − t h dt #
a
=
[Using property 2]
dx =− dt 0

If x =− a , then t = a and if x = 0 , then t = 0 , Then f ^2a − x h dx #

a
=
[Using property 1]
f ^x h dx =− f ^− t h dt
0 0 0
#
-a
#
a
Thus
f ^x h dx = f ^2a − x h dx ...(2)
2a
# #
a

f ^− t h dt #
a
=
[Using property 2] a 0
0

f ^− x h dx #
a
=
[Using property 1] From (1) and (2), we get
0

# f ^x hdx = # f ^− x h dx ...(2) f ^x h dx = f ^x h dx + f ^2a − x h dx

0 a 2a
# # #
a a
Thus
-a 0 0 0 0
Chap 13 Definite Integration Page 177

This proves property 8. Ans : 1

1
9. #−1
(3x2 + 1) dx

Ans : 4
E X ERCISE 13.2
Evaluate the following :


******
3
2x dx
1. #
−3 1 + x
2

Ans : 0

Applied Mathematics
2x + 1 if x # 1 CBSE Class XI and XII Commerce
# f (x) dx , where f (x) = * x
2
2.
-1 − 5 if x > 1 A Text Book by NODIA Press
Ans : - 3 Based on New Syllabus Released By CBSE
2
No Missing Topic No Extra Topic
4
3. # f (x) dx , where
1 For Teachers
2x + 8 if 1 # x < 2 Digital Specimen copy available for evaluation
f (x) = * Whatsapp at 94140 63210
6x if 2 # x # 4
Ans : 47 Hard Specimen Book Available for Teachers who adopt this book
as Text book and Recommend as Text Book to Students
Word file of All Questions available also for Teachers
Hard Specimen book will be given to those teachers only
4 whose students have purchased book.
4. #
−1
x + 5 dx

Ans : 65
2

1
5. #
−1
2x + 1 dx

Ans : 5
2

4
6. #
0
( x + x − 2 + x − 4 ) dx

Ans : 20

6
x+3 4
7. #
0 x+3 +4 9−x
4
dx

Ans : 3

5
x
8. #
3 8−x + x
dx
Page 178 Application of Integration Chap 14

CHAPTER 14

App lication of Integration

14.1 INTRODUCTION

Sol :

Integration has a wide range of applications to a
very large number of disciplines such as business
and economics (marginal analysis, maximizing
profit, consumer’s surplus), biology (bacterial
growth), geometry (finding the area under a Click : www.nodia.study/lema/nm101
curve), and to probability. In this chapter was shall discuss
some of these applications
EXAMPLE 14.2
The marginal cost function of manufacturing x pair of
shoes is 6 + 10x − 6x2 . The total cost of producing a pair of
shoes is < 1200. Find the total and average cost functions.


Sol :

Click : www.nodia.study/lema/nm102
14.2 marginal Cost and total cost
In this section we investigate some of the
applications of integration to marginal analysis. EXAMPLE 14.3
The first such application is that of finding
Assume that the marginal cost in lakhs of rupees is given
the cost function when marginal cost function
by
is given. Since the marginal cost function MC
is the derivative of the cost function C , therefore by MC = 4 + 5x 2 + 3 e−x
2
definition C is an antiderivative of MC . That is,
where x is the quantity produced in thousand. Find the
C = # MC dx + k
total cost of production when x = 2 , if fixed cost is < 6
where k is the constant of integration. However, if we
lakhs.
are also given the fixed costs (i.e., costs involved when
x = 0 ) or the cost of production of a specific number of

Sol :
units of the commodity, we can determine the value of the
constant of integration and thus find the particular cost
function C . Once C is obtained, the average cost function
can be obtained by using the equation
Click : www.nodia.study/lema/nm103
AC = C
x

EXAMPLE 14.4
EXAMPLE 14.1
The marginal cost function of a firm is MC = ^log x h2 .
The marginal cost function of a firm is given by Find the total cost of 100 units if the cost of producing
MC = 3000e0.3x + 50, where x is quantity produced. If the one unit is < 22.
fixed cost is < 80, 000, find the total cost of the firm.


Sol :
Chap 14 Application of Integration Page 179

Click : www.nodia.study/lema/nm104 Click : www.nodia.study/lema/nm108

EXAMPLE 14.9
EXAMPLE 14.5
If the marginal cost function is given by MC = 3 ^3x + 4h−1/2
The marginal cost function of manufacturing x units of
a commodity is 12x 3 + 15x 2 + 4x + 1. If there is no fixed
and the fixed cost is 2, find the average cost for 7 units
cost, find the total cost and average cost functions.
of output.


Sol :


Sol :

Click : www.nodia.study/lema/nm105 Click : www.nodia.study/lema/nm109

EXAMPLE 14.10
EXAMPLE 14.6
The marginal cost function for x units of output is
If C is the total cost of an output x , it is known that the
a . If the cost of zero output is zero, find the total
marginal cost MC always equals average cost AC . Show
ax + b
that C is a constant multiple of x .
cost function.


Sol :


Sol :

Click : www.nodia.study/lema/nm106
Click : www.nodia.study/lema/nm110

EXAMPLE 14.7
EXAMPLE 14.11
The marginal cost is given by MC = 150 + e.5x , where x
is the number of units of a product in hundreds. If x The marginal cost function of producing x units of a
increases from 200 to 400, find the total increase in cost. product is given by MC = 2x + 4x 3 + 25 . The total cost of
producing 5 times is < 1000. Find the total cost function.


Sol :


Sol :

Click : www.nodia.study/lema/nm107
Click : www.nodia.study/lema/nm111

EXAMPLE 14.8
EXAMPLE 14.12
The marginal cost function of manufacturing x units of
a product is 4x 3 + 3x 2 + 15 . The total cost of producing 8 The marginal cost function of product is given by
items is < 6000. Find the total cost function. MC = 2 ^2x + 9h−0.5 and the fixed cost is < 4. Find the
corresponding total and average cost functions. Also,


Sol : find per unit cost when 8 units are produced. Also find
additional cost when production increases from 8 units to
20 units.


Sol :
Page 180 Application of Integration Chap 14

Click : www.nodia.study/lema/nm112 1. If the marginal cost for a product is given by

1 + 2x + 6x2 , Find total cost and average cost when
fixed cost is ` 100.
EXAMPLE 14.13
Ans : TC = x + x2 + 2x3 + k ;
AC = 1 + x + 2x2 + 100
The marginal cost at a production level of x is given by x
115 + 3600 . Find the cost of producing 20 additional
x3
units after 10 units have been produced.


Sol :

2. The marginal cost function is given by 2 − 4x + 3x2 .

Find the total variable cost when output x = 4 .
Ans : ` 40
Click : www.nodia.study/lema/nm113

EXAMPLE 14.14
The marginal cost function of a product is 3000e 0.3x + 100
. Determine the corresponding total and average cost 3. The marginal cost function is given by 1 + 2x + x2 ,
function when the fixed cost is < 60, 000. Also find the find the total cost and average cost if fixed cost is
total cost of 10 units and the additional cost when output ` 100.
3
increases from 10 to 20 units, using definite integral. Ans : TC = x + x2 + x3 + 100 , AC
2


Sol : = 1 + x + x + 100
3 x

Click : www.nodia.study/lema/nm114
4. If marginal cost function is given by 2 + 5ex , find total
EXAMPLE 14.15 cost and average cost if fixed cost is ` 100.
Ans : TC = 2x + 5ex + 95 , AC
The marginal cost in lakhs of rupees of producing a motor x
car is given by 6 + 4x 2 + 1.5e −x , where x is the quantity = 2 + 5e + 95
x x
produced. Determine the total cost of producing 5 cars if
the fixed cost is < 7 lakhs.


Sol :

5. If marginal cost function is given by 2 − 4x + 3x2 , find

the total variable cost when x = 10 .
Click : www.nodia.study/lema/nm115 Ans : ` 820

E X ERCISE 14.1
6. The marginal cost function of a firm is (log x) 2 , find
its total cost function when total cost of producing
Chap 14 Application of Integration Page 181

one unit is ` 20. using the fact that R = 0 , when x = 0 . Once R is obtained,
Ans : x (log x) 2 − 2x log x + 2x + 18 the corresponding demand function can be obtained by
using the equation px = R , or p = R/x .

EXAMPLE 14.16
If marginal revenue is MR = 2 − 6x , find the demand law.


Sol :
7. Find the total cost function given that marginal cost
function is x2 − 10x + 75 , given that total cost is 199
when x = 3 .
Ans : 13 x3 − 5x2 + 75x + 10
Click : www.nodia.study/lema/nm116

EXAMPLE 14.17
ab - c . Prove
^x - b h2
Marginal revenue function of a firm is
8. Find the cost function for a product whose marginal
cost function is 5 + 8x , given that fixed cost is ` 250. that the demand law is p = a − c.
Ans : 5x + 4x2 + 250 b−x


Sol :

Click : www.nodia.study/lema/nm117
x
9. If the marginal cost function of a firm is 10 + 5e , find
total cost function and average cost function when
C (0) = 100 . EXAMPLE 14.18
x
Ans : TC = 10x + 5ex + 95 , AC = 10 + 5xe + 95 x
The marginal revenue (in thousand of rupees) function for
a particular commodity is 4 + e−0.03x , where x denotes the
number of units sold. Determine the total revenue from
the sale of 100 units. It is given that e−3 = 0.05 (app.)


Sol :

10. The marginal cost function of a firm is 2 + 3ex , where

x is output. Find the total average cost function if
fixed cost is ` 500.
x
Ans : 2 + 3xe + 497 Click : www.nodia.study/lema/nm118
x

EXAMPLE 14.19
4 − 1, show
^2x + 3h2
Given the marginal revenue function
14.3 marginal revenue and total revenue
that the average revenue is p = 4 −1
The marginal revenue MR is the derivative of 6x + 9
the revenue function R . Therefore, to find R , we

Sol :
integrate the marginal revenue function. Thus
R = # MRdx + k
where k is the constant of integration to be determined by
Page 182 Application of Integration Chap 14

Click : www.nodia.study/lema/nm119 Click : www.nodia.study/lema/nm123

EXAMPLE 14.20 EXAMPLE 14.24

A firm’s marginal revenue function is given by If the marginal revenue for a product is given by
20e-x/10 e 1 - x o . Find the corresponding demand function.
MR = 7 − 6x 2 + 2x , find the total revenue function and
10 demand function.


Sol :


Sol :

Click : www.nodia.study/lema/nm120
Click : www.nodia.study/lema/nm124

EXAMPLE 14.21
EXAMPLE 14.25
A manufacturer’s marginal revenue function is
The monthly marginal revenue function for a company is
175 - 2x - 0.3x 2. Find the increase in the manufacturer’s
given by
total revenue if production is increased from 10 to 20 units.


Sol : MR = 10 − 0.2x + 50
x + 10
where x is the number of thousands of items produced
and sold and MR ^x h is measured in thousands of rupees
per thousand items. Find the revenue function for the
company.
Click : www.nodia.study/lema/nm121


Sol :

EXAMPLE 14.22
x
If the marginal revenue of a product is 10e 400 e 1 - x o .
400
Show that the corresponding demand function is Click : www.nodia.study/lema/nm125
x = 400 ln c 10 m .
p


Sol :

E X ERCISE 14. 2
Click : www.nodia.study/lema/nm122

EXAMPLE 14.23 1. If MR = 800 − 8x − 18x2 , find out total revenue and

demand function.
If the marginal revenue for a product is given by
Ans : TR = 800x − 4x2 − 6x3 , p = 800 − 4x − 6x2
MR = 16 − 9x 2 + 8x Find the total revenue function and
demand function.


Sol :

2. The marginal revenue function is MR = 5 + 3x − x2

Chap 14 Application of Integration Page 183

. Find the total function given that total revenue is 14.4.1 Law of Demand
` 112 when x = 6
The law of demand is a fundamental principle of economics
Ans : 5x − 32 x2 − 13 x3 + 100 that states that at a higher price consumers will demand
a lower quantity of a good. In other words, the higher the
price, the lower the quantity demanded and the lower the
price, the higher the quantity demanded.
A market demand curve shows relationship between
quantity demanded and price of a product. The graph
3. If marginal revenue function is 12 - 3x2 , determine given below shows that the curve has downward slope.
total revenue and demand function (x output sold).
Ans : 12x - x3 , p = 12 − x2

4. If the marginal revenue function of a firm is ab 2 - c

(x - b)
, find total revenue and the demand function.
Ans : - x ax
-b
- cx , p = − a − c
x−b

14.4.2 Law of Supply

The law of supply says that a higher price will induce
5. If the marginal revenue function for output x is given
producers to supply a higher quantity to the market. In
by (x +62) + 5 , find the demand function.
2
other words, as the price of a product increases, supplies
Ans : − 6 + 5 + x3 will try to supply more goods to maximise their profits.
x (x + 2)
A market supply curve shows relationship between
quantity supplied and price of a product. The graph given
below shows that the curve has upward slope.

6. If the marginal revenue is given by MR = 15 − 2x − x2

, find the total revenue and demand function.
3 2
Ans : TR = 15x − x2 − x3 , p = 15 − x − x3

14.4 consumers’ and producers’ surplus

To understand consumer surplus and producer
surplus, we need the knowledge of demand and
supply curves. 14.4.3 Equilibrium Point
Equilibrium point is the intersection of a demand curve and
Page 184 Application of Integration Chap 14

a supply curve. It is the point where market equilibrium Consider a market at equilibrium and at the
is attained and occurs at the price where the quantity equilibrium point, the price per unit of a product is p0
demanded is equal to the quantity supplied. and the market demand is x0 units. According to the
The graph given below shows the equilibrium point. demand curve, there are consumers who would be willing
to pay more than p0 . These consumers will be benefited
by paying the equilibrium price p0 . The total benefit of
these type of consumers is called consumer surplus (CS)
and is represented by the area between the line p = p0 and
the demand curve p = D (x) from x = 0 to x = x0 .
x0

= # D (x) dx − x0 # p0
Thus, CS
0

According to the supply curve, there are producers

who would be willing to sell the product at prices less
than p0 . These suppliers will be benefited by selling at
equilibrium price p0 . The total benefit of these type
of suppliers is called the producers surplus (PS) and is
represented by the area between the line p = p 0 and the
supply curve p = S (x) from x = 0 to x = x0 .
x0
14.4.4 Consumer Surplus and Producer surplus = x0 # p 0 − # S (x) dx
Thus, PS
A consumer surplus happens when the price consumers 0

pay for a product or service is less than the price they’re

willing to pay. Consumer surplus is the benefit or good
feeling of getting a good deal. For example, let’s say that EXAMPLE 14.26
you bought an airline ticket for a flight to Mumbai during The demand function for a commodity is given by
school vacation week for Rs 3000, but you were expecting p = 100 − 8x . Find the consumers’ surplus corresponding
and willing to pay Rs 4000 for one ticket. The Rs 1000 to the market price p = 4 .
represents your consumer surplus.
Producer surplus is the difference between how much

Sol :
a person would be willing to accept for given quantity of a
good versus how much they can receive by selling the good
at the market price. The difference or surplus amount is
the benefit the producer receives for selling the good in the
market. A producer surplus is generated by market prices Click : www.nodia.study/lema/nm126
in excess of the lowest price producers would otherwise be
willing to accept for their goods
EXAMPLE 14.27
The demand law for a commodity is p = 20 − 2x − x 2 .
Find the consumers’ surplus when the market demand is
3.


Sol :

Click : www.nodia.study/lema/nm127

EXAMPLE 14.28
The demand equation of a product is p − 10e−x = 0 . Find
Chap 14 Application of Integration Page 185

the consumer surplus when the market price p = 1.

Sol :

Sol :

Click : www.nodia.study/lema/nm132
Click : www.nodia.study/lema/nm128
EXAMPLE 14.33
EXAMPLE 14.29 Find the consumer’s surplus and producer’s surplus under
2x
The supply function of a producer is given by p = 0.4e , pure competition for demand function p = 8 − 2 and
x+1
where x denotes thousand units. Find producer’s surplus supply function p = 1 ^x + 3h , where p is price and x is
when sales are 2000 units. 2
quantity.


Sol :

Sol :

Click : www.nodia.study/lema/nm129 Click : www.nodia.study/lema/nm133

EXAMPLE 14.30 EXAMPLE 14.34

If the supply function for a particular commodity is The demand and supply functions for a commodity are
100p = ^x + 20h2 and the market price is < 25, find the given by p = 24e−x and p = 36ex/2 respectively. Determine
producer’s surplus. the consumers’ and producers’ surplus at equilibrium


Sol : price.


Sol :

Click : www.nodia.study/lema/nm130
Click : www.nodia.study/lema/nm134
EXAMPLE 14.31
The supply curve for a commodity is p = 9 + x and the EXAMPLE 14.35
quantity sold is 7 units. Find the producer’s surplus. The demand and supply functions under pure competition


Sol : are p = 1600 − x 2 and p = 2x 2 + 400 respectively. Find
the consumer’s surplus and producer’s surplus.


Sol :

Click : www.nodia.study/lema/nm131

Click : www.nodia.study/lema/nm135
EXAMPLE 14.32
If the supply function for a particular commodity is
p = 10 ^x + 3h2 and the market price is < 360, find the
equilibrium quantity and the producer’s surplus.
Page 186 Application of Integration Chap 14

E X ERCISE 14.3 6. The supply function of a commodity is given by

p = 4 + x . Determine producer’s surplus if the
equilibrium price is ` 15.
Ans : ` 60.50

1. If the demand function is p = 85 − 4x − x2 , find the

consumer surplus when (i) x = 5 , (ii) p = 64
Ans : (i) 4003 (ii) 36

7. The supply curve for a commodity is p = 9 + x

and the quantity sold is 7 units. Find the producer’s
surplus.
Ans : 10
3
2. The demand function for a commodity is
p = 35 − 2x − x2 . Find the consumer’s surplus if the
equilibrium price is ` 20.
Ans : ` 26

8. The demand function for the commodity is p = 20 − 3x

. The supply function on this market is p = 3x . Find
producer’s surplus.
Ans : 50
3
3. The demand function for a commodity is p = 20 − 3x
. The supply function on this market is p = 3x . Find
consumer’s surplus.
Ans : 50
3

9. If the demand and supply function are p = 10 − x − x2

and p = x + 2 respectively. Calculate the consumer’s
surplus and the producer’s surplus at the equilibrium
price.
4. Under perfect competition for a commodity, the
Ans : CS = ` 7 13 , PS = ` 2
demand and supply laws are p = 8 − 2 and
x+1
p = x + 3 respectively. Determine the consumer’s
2
surplus.
Ans : 8 log 2 - 4

10. The demand and supply equations for a certain

commodity are respectively 3p + x = 32 and
3p2 + p − x = 0 , where p is the unit price and x is
the quantity. Determine the consumer’s surplus and
5. Determine the consumer’s surplus given that demand producer’s surplus if the market equilibrium price
2 2
law : p = 25 − 5x + x and supply law : p = 5x + x . prevails.
4 4
Ans : Consumer surplus ` 13.02 Ans : CS = ` 96 , PS = ` 22.52

******
Chap 15 Differential Equation Page 187

CHAPTER 15

Differential Equation

15.1 Introduction Degree

The laws of the universe are written in the language If each term involving derivatives of a differential equation
of mathematics. The most interesting natural is a polynomial (or can be expressed as polynomial), then
phenomena involve change and are described by the highest exponent of the highest order derivative is
equations that relate to changing quantities. The called the degree of the differential equation.
dy
derivative dx represents the rate at which the dependent If any term of differential equation cannot be
variable y is changing with respect to the independent expressed as polynomial in the derivative (or derivatives),
variable x . So, it is natural that the equations involving then the degree of the differential equation is not defined.
derivatives are frequently used to describe the changing For example, consider the equations:
dy
universe. Such equations are called differential equations. (i) = 2x3 + 7 x
dx

The highest order derivative present in the given differential

dy
equation is dx , so its order is 1. Hence the term in the
derivative is a polynomial, so its degree is the highest
dy
exponent of dx , which is 1. Thus, its degree is 1.

2 + 8 c dx m = log x
d2y dy 2
(ii) 5
dx
The highest order derivative present in the given differential
15.2 Differential Equation
2

equation is ddxy , so its order is 2. Here each term in the

2

derivatives is a polynomial, so its degree is the highest

Differential Equation 2

exponent of ddxy , which is 1. Thus, its degree is 1.

2

An equation containing independent variables,

1 +c m
dependent variables and derivatives of dependent dy dy 2
(iii) y = x +2
dx dx
variables with respect to independent variables is
called a differential equation. The highest order derivative present in the given differential
dy
Ordinary Differential Equation equation is dx , so its order is 1. It can be written as

cy - x m = 4 d 1 + c m n
An equation containing only one independent variable, dy 2 dy 2

only one dependent variable and derivatives of dependent dx dx

^x2 − 4hc dx m − 2xy dx + y2 − 4 = 0

variable with respect to independent variable is called an dy 2 dy
or
ordinary differential equation.
Here each term in the derivatives is a polynomial, so its
dy
degree is the highest exponent of dx , which is 2. Thus, its
15.3 Order and Degree of Differential Equation degree is 2.

(iv) d1 - c mn =k 2
Order dy 2 3/2 d2y
dx dx
The order of a differential equation is the order
of the highest order derivative of the dependent The highest order derivative present in the given differential
variable with respect to independent variable 2

equation is ddxy , so its order is 2. It can be written as

2

a1 − _ i dx k = k2 ` ddxy j . Here each term in the derivative is

appearing in the equation. dy 2 3 2 2
2
Page 188 Differential Equation Chap 15

(ii) d 2 n + cos c dx m = 0
a polynomial, so its degree is the highest exponent of d2 y
dx2
, d2y 2 dy
which is 2. Thus, its degree is 2. dx
(iii) y n + y2 + eyl = 0
(v) ^3x2 + 5y h dy − 5x dx = 0

Sol :
The given differential equation can be written as
^3x2 + 5y h dx
dy
= 5x , so this equation is of order 1 and degree
1.
dy
(vi)
dx
= 2x3 + 7 x Click: www.nodia.study/lema/om103
The highest order derivative present in the given differential
equation is y n , so its order is 3. Here each term containing EXAMPLE 15.4
derivatives y n , ym and yl are polynomials, so its degree is Determine the order and degree (if defined) of each of the
the highest exponent of y n , which is 1. Thus, its degree is following differential equations:
1. Note that the term log y is not a polynomial in y .
(i) xy 2 + x c m − y
d2y dy 2 dy
=0
In general, an ordinary differential equation of order dx dx dx
one is of the form F _x, y, dx dy
i = 0 , where F is a function of
(ii) b ds l + 3s d s2 = 0
4 2
dy
the variables x , y , dx ; and an ordinary differential equation dt dt
of order 2 is of the form F `x, y, dx , dx j = 0 etc.

Sol :
2
dy d y
2

More generally, an equation of the form

F ^x, y, y1, y2, ..., yn h = 0 is called an ordinary differential
equation of order n .
Click: www.nodia.study/lema/om104
EXAMPLE 15.1
Determine the order and degree (if defined) of each of the EXAMPLE 15.5
following differential equations: Determine the order and degree (if defined) of each of the
− cos x = 0 (ii) c m + log y = x2
dy dy 2 following differential equations:
(i)
dx dx
(i) x3 d 2 n + x c m = 0
d2y 2 dy 4


Sol :
dx dx

(ii) 5x c m − 2 − 6y = log x
dy 2 d 2 y
dx dx


Sol :
Click: www.nodia.study/lema/om101

EXAMPLE 15.2
Click: www.nodia.study/lema/om105
Determine the order and degree (if defined) of each of the
following differential equations:
d n +
d2y d 2 y 4 dy
(i) + 6 y = 4 (ii) =0
dx2 dx2 dx


Sol :

Applied Mathematics
CBSE Class XI and XII Commerce
Click: www.nodia.study/lema/om102 A Text Book by NODIA Press
Based on New Syllabus Released By CBSE
No Missing Topic No Extra Topic
EXAMPLE 15.3
Determine the order and degree (if defined) of each of the
following differential equations: For Teachers
+ sin c m = 0
dy dy Digital Specimen copy available for evaluation
(i)
dx dx
Whatsapp at 94140 63210
Chap 15 Differential Equation Page 189

Hard Specimen Book Available for Teachers who adopt this book d 2y 3
8. x2 c m
dy 4
as Text book and Recommend as Text Book to Students + y b dx l
+ y4 = 0
dx2
Word file of All Questions available also for Teachers Ans : Order = 2, Degree = 3
Hard Specimen book will be given to those teachers only
whose students have purchased book.

d 2y
9. b l + 2y c 2 m = 0
dy 4
dx dx
Ans : Order = 2, Degree = 1

E X ERCISE 15.1
1

d 2y
10. ;1 + b l E = 2
Determine order and degree (if defined) of each of the dy 22

following differential equations: dx dx

Ans : Order = 2, Degree = 2
dy
1. + ey = 5
dx
Ans : Order = 1, Degree = 1

15.4 Solution of a Differential Equation:

2
2. s2 d t2 + s b dt l = log t
2

ds ds A relation between the dependent and independent

Ans : Order = 2, Degree = 1 variables that satisfies the differential equation is
called a solution of that differential equation.
For example, consider the differential equation
d2y
+ y = 0
d2 y 2
d4 y dx2
3. c 2 m + cos c m=0
dx dx 4 (i) Let y = A cos x + B sin x , where A and B are arbitrary
Ans : Order = 4, Degree is not defined. (i.e., unknown) constants.
dy
Then, =− A sin x + B cos x
dx
d2y
and =− A cos x − B sin x
4. y''' + 2y'' + yl = 0 dx2
Ans : Order = 3, Degree = 1 d2y
Thus + y = 0
dx2
Hence, y = A cos x + B sin x is a solution of the differential
d2y
equation + y = 0.
dy 2 dy 2 dx2
5. x + b
dx l
1 +b
dx l
= (ii) Let y = A cos x − 3 sin x
Ans : Order = 1, Degree = 4 dy
Then, =− 2 sin x − 3 cos x
dx
d2y
and =− 2 cos x + 3 sin x
dx2
6. (y''') 2 + (y'') 3 + (y') 4 + y5 = 0 d2y
Thus + y = 0
Ans : Order = 3, Degree = 2 dx2

Hence, y = 2 cos x − 3 sin x is a solution of the differential

%1 + _ dx i /
dy 2
3
d2y
equation + y = 0.
2

7. =r dx2
d2y
dx2 General Solution of a Differential Equation:
Ans : Order = 2, Degree = 2 A solution that contains as many arbitrary constants as the
order of the differential equation is called general solution
Page 190 Differential Equation Chap 15

of that differential equation. EXAMPLE 15.8

For example, consider the differential equation Show that the function y = ax + b is a solution of the
x
d2y differential equation
+ y = 0
dx2 d2y dy
It is a differential equation of order 2. x2 +x − y = 0
dx2 dx
Since, y = A cos x + B sin x is a solution of the above

Sol :
differential equation and it has two arbitrary constants.
So, y = A cos x + B sin x is a general solution of the above
differential equation.
Particular Solution of a Differential Equation: Click: www.nodia.study/lema/om108
A solution obtained by giving particular values to the
arbitrary constants in the general solution of the differential EXAMPLE 15.9
equation is called a particular solution of that differential Verify that the function y = e−3x is a solution of differential
equation. In other words, a particular solution is a solution equation
free from arbitrary constants.
d 2 y dy
For example, consider the differential equation + − 6y = 0
dx2 dx
d2y

Sol :
+ y = 0
dx2
Since, y = 2 cos x − 3 sin x is a solution of the above
differential equation and it has no arbitrary constant. So,
y = 2 cos x − 3 sin x is a particular solution of the above Click: www.nodia.study/lema/om109
differential equation.


Note
EXAMPLE 15.10
Clearly, y =− sin x is also a particular solution of the
2 Verify that the function y + x + 1 = 0 is a solution of
differential equation ddty + y = 0 . So, particular solution of
2
differential equation
a differential equation is not unique.
^y - x h dy - ^y2 - x2h dx = 0


Sol :
EXAMPLE 15.6
Show that the function y = ax + b is a solution of the
a
differential equation
y = x
dy b
+ dy Click: www.nodia.study/lema/om110
dx dx


Sol :

EXAMPLE 15.11
Verify that the function x2 = 2y2 log y is a solution of
differential equation
Click: www.nodia.study/lema/om106
xy = ^y2 + x2h
dy

dx


Sol :
EXAMPLE 15.7
Show that the function y = ax + 2a2 is a solution of the
differential equation

2c m + x
dy 2 dy
− y = 0 Click: www.nodia.study/lema/om111
dx dx


Sol :

EXAMPLE 15.12
Verify that the function y = 1 + x2 is a solution of
differential equation
Click: www.nodia.study/lema/om107 dy xy
=
dx 1 + x2
Chap 15 Differential Equation Page 191

Sol : Ans : Proof

9. Show that y = ae2x + be−x is a solution of the differential

Click: www.nodia.study/lema/om112 d2 y dy
equation 2 − − 2y = 0 .
dx dx
Ans : Proof

E X ERCISE 15.2 10. Show that xy = aex + be−x + x2 is a solution of the

In each of the exercise 1 to 10, verify that the given functions d2 y dy
differential equation x $ 2 + 2 − xy + x2 − 2 = 0 .
dx dx
(explicit or implicit) is a solutions of the corresponding
differential equations: Ans : Proof
1. Show that y = ex + 1; y m − yl = 0 .
Ans : Proof

2. Show that y = x2 + 2x + C ; yl − 2x − 2 = 0 . 15.5 Formulation of differential equation

Ans : Proof Let us now understand the formulation of a
differential equation whose general solution is given.
We can have the following three types of problems:
xy (1) Problems in which general solution containing
3. Show that y = 1 + x2 ; yl =
1 + x2 one arbitrary constant is given.
Ans : Proof
(2) Problems in which general solution containing two
arbitrary constant is given.
(3) Problems in which general solution representing some
4. Show that y = Ax ; xyl = y (x ! 0).
standard family of curves is given.
Ans : Proof
Here we will study only the problems in which
general solution containing one arbitrary constant is given.
If we are given general solution containing one arbitrary
5. Show that y = x sin x ; xyl = y + x x2 − y2 . constant, then the following working rule can be used to
Ans : Proof form differential equation:

I:

Step
Write the given general solution containing one arbitrary
y2
6. Show that xy = log y + C ; yl = (xy ! 1). constant.
1 − xy
Ans : Proof
II:

Step
Separate (if possible) the arbitrary constant to L.H.S. and
the variables (both dependent and independent) to R.H.S.

7. Show that y= a2 − x2 , x d(- a, a);
III:

Step
dy a. If the arbitrary constant gets separated, then
x+y = 0 (y ! 0) .
dx differentiate both sides to eliminate the arbitrary
constant and get the required differential equation.
Ans : Proof
b. If it is not possible to separate the arbitrary constant,
then differentiate both sides of the given solution and
evaluate the arbitrary constant. Substitute this value
8. Show that y = Ax + B is a solution of the differential of the arbitrary constant in the given solution to get
x
2
dy dy the required differential equation.
equation x2 2 + x − y = 0 .
dx dx
Page 192 Differential Equation Chap 15

EXAMPLE 15.13 EXAMPLE 15.18

Form the differential equation representing the family of Form the differential equation representing the family of
curves xy = a2 , where a is an arbitrary constant. curves ex − 1 = aey , where a is an arbitrary constant.


Sol :

Sol :

Click: www.nodia.study/lema/om113 Click: www.nodia.study/lema/om118

EXAMPLE 15.14 EXAMPLE 15.19

Form the differential equation representing the family of Form the differential equation corresponding to y = eax ,
curves x2 − y2 = a2 , where a is an arbitrary constant. where a is an arbitrary constant.


Sol :

Sol :

Click: www.nodia.study/lema/om114 Click: www.nodia.study/lema/om119

EXAMPLE 15.15 EXAMPLE 15.20

Form the differential equation representing the family of Form the differential equation corresponding to y2 = ^x − a h3
curves y = mx , where m is an arbitrary constant. , by eliminating a .


Sol :

Sol :

Click: www.nodia.study/lema/om115 Click: www.nodia.study/lema/om120

EXAMPLE 15.16 EXAMPLE 15.21

Form the differential equation representing the family of Form the differential equation corresponding to
curves x2 + y2 = ax3 , where a is an arbitrary constant. y = ax + 2a2 + a3 , by eliminating a .


Sol :

Sol :

Click: www.nodia.study/lema/om116 Click: www.nodia.study/lema/om121

EXAMPLE 15.17 EXAMPLE 15.22

Form the differential equation representing the family of Form the differential equation corresponding to
curves given by the equation ^x − a h2 + 2y2 = a2 , where a y2 = 4a ^x + a h, where a is an arbitrary constant.
is an arbitrary constant.

Sol :


Sol :

Click: www.nodia.study/lema/om122
Click: www.nodia.study/lema/om117
Chap 15 Differential Equation Page 193

EXAMPLE 15.23 8. y = emx , m is arbitrary constant

Form the differential equation representing the family of dy
= y log y
curves ^x − a h2 − y2 = 1, where a is an arbitrary constant.
Ans : x
dx


Sol :

15.6 Differential Equations with Variable

Click: www.nodia.study/lema/om123 Separable
A first order and first degree differential equation
is of the form
= F ^x, y h ...(1)
dy

E X ERCISE 15.3 dx
If the differential equation (1) can be expressed in the form
Form the differential equation not containing the arbitrary g ^y h dy = f ^x h dx
constant(s) and satisfied by the following equations: then the differential equation is said to have variables
1. x2 + y2 = a2 , a is arbitrary constant separable and such equations can be solved by integrating
dy both sides. General solution is given by
Ans : y + x = 0
dx
# g^y h dy = # f ^x hdx + C
where C is an arbitrary constant.

2. y2 = 4ax , a is arbitrary constant

Method of Separation of Variables
dy
Ans : 2x =y
dx
I:

Step
Express the given differential equation in the form
f ^x h dx = g ^y h dy
3. x2 + (y − b) 2 = 1, b is arbitrary constant
dy 2
Ans : (x2 − 1) b l + x2 = 0
II:

Step
dx
Integrating both sides, we get
# f ^x hdx = # g^y hdy
2 2 2
4. (x − b) + 2y = b , b is arbitrary constant
III:

Step
dy
Ans : 4xy = 2y2 − x2 Evaluate the above integrals to get the solution of the
dx
form
F ^x h = G ^y h + C
where C is an arbitrary constant.
5. (2x − b) 2 − y2 = b2 , b is arbitrary constant
dy

Note
Ans : 2xy = 4x2 + y2
dx The constants of integration that appear on both the
sides are combined together to give just one arbitrary
constant C.
6. y = ax3 , a is arbitrary constant EXAMPLE 15.24
Ans : xy1 = 3y Solve the differential equation
dy
= x5 − 3 + e−7x
dx x


Sol :
7. x2 − y2 = a2 , a is arbitrary constant
Ans : yy1 = x

Click: www.nodia.study/lema/om124
Page 194 Differential Equation Chap 15

EXAMPLE 15.25
Click: www.nodia.study/lema/om129
Find the particular solution of the differential equation
x ^1 + y2h dx − y ^1 + x2h dy = 0 , given that y = 1 when x = 0.
EXAMPLE 15.30


Sol : Find the particular solution of the differential equation
log c m = 3x + 4y , given that y = 0 when x = 0 .
dy
dx


Sol :

Click: www.nodia.study/lema/om125

EXAMPLE 15.26 Click: www.nodia.study/lema/om130

Find the particular solution of the differential equation
dy
= 1 + x + y + xy , given that y = 0 when x = 1. EXAMPLE 15.31
dx


Sol : Find the general solution of the differential equation
2x 4x
y1 = ae x + ae
e + e−x


Sol :

Click: www.nodia.study/lema/om126

EXAMPLE 15.27 Click: www.nodia.study/lema/om131

Solve the differential equation
^x2 − yx2h dy + ^y2 + x2 y2h dx = 0
EXAMPLE 15.32
given that y = 1 when x = 1.
Find the general solution of the differential equation eyl = x


Sol :
.


Sol :

Click: www.nodia.study/lema/om127
Click: www.nodia.study/lema/om132
EXAMPLE 15.28
Find the general solution of the differential equation
EXAMPLE 15.33
a c y 2 + m = y − x
dy dy
Find the particular solution of the differential equation
dx dx
cos c m = a , given that y = 1 when x = 0 .


Sol : dy
dx


Sol :

Click: www.nodia.study/lema/om128
Click: www.nodia.study/lema/om133
EXAMPLE 15.29
Find the general solution of the differential equation 15.6.1 Equations Reducible to Variable Separable
dy Equations of the form
= eax − by .
dx
= f ^ax + by + c h
dy



Sol : dx
can be reduced to the form in which the variables are
separable.
Substituting ax + by + c = z , we have
Chap 15 Differential Equation Page 195

dy
= dz
a + b$ E X ERCISE 1 5 . 4
dx dx
= 1 b dz − a l
dy Find the general solutions of the following differential
or
dx b dx equations:
Therefore given equation becomes
^ h
1 b dz - a l = f z dy
1. = x+1, y ! 2
b dx dx 2−y 2
y 2
Ans : 2y − = x + x + C
^ h
dz - a = bf z 2 2
or
dx

or
dx ^ h
dz = a + bf z
2. y log ydx − xdy = 0
Separating the variables
Ans : log log y = log x + C
dz
a + bf ^z h
= dx

which can now be integrated.

3. y (ex + 1) dy = (y + 1) ex dx
EXAMPLE 15.34 Ans : y − log y + 1 = log ex + 1 + C
Solve the differential equation:
dy
+ 1 = e x + y
dx


Sol : 4. x 1 − y2 dx + y 1 − x2 dy = 0
Ans : 1 − x2 + 1 − y2 = C

Click: www.nodia.study/lema/om134 5. (ex + e−x ) dy − (ex − e−x ) dx = 0

Ans : y = log ex + e−x + C
EXAMPLE 15.35
Solve the following differential equation
^x + y h^dx − dy h = dx + dy dy
6. (x + 1) = 2xy , given that y (2) = 3


Sol : dx
Ans : log y = 2x − 2 log x + 1 + 3 log 3 − 4

Click: www.nodia.study/lema/om135
dy
7. (2x − 2y + 5) = x−y+3
dx
EXAMPLE 15.36 Ans : x − 2y + log x − y + 2 = C
Find the particular solution of the differential equation
^x − y h^dx + dy h = dx − dy
given that y =− 1 when x = 0
dy


Sol : 8. (x + y + 1) =1
dx
Ans : y − log x + y + 2 = C

Click: www.nodia.study/lema/om136
dy
9. (x + y − 1) = x+y
dx
Ans : y − 1 log 2x + 2y − 1 = x + C
2
Page 196 Differential Equation Chap 15

15.7 Exponential growth and decay m = ce−kt

Solution of differential equation is
m (t) = ce−kt
15.7.1 Law of Natural Growth
If initially at, t = 0 , m 0 is the amount present then
Let x (t) be the population at any time t . Assume
m (t) = m 0 e−kt .
that population grows at a rate directly proportional
to the amount of population present at that time.
Then the differential equation governing this EXAMPLE 15.37
phenomena is of the first order, first degree linear equation In a bank, principal increases continuously at the rate of
dx = kx 5% per year. In how many years < 2000 double itself?
dt

Sol :
where k is the constant of proportionality. Here k > 0 as
this is a growth phenomena.
Separating the variables, we have
1 dx = k dt
x
Click: www.nodia.study/lema/om137

Integrating # x1 dx = k # dt + log c EXAMPLE 15.38

log x = kt + log c In a bank, principal increases continuously at the rate of
log x - log c = kt r % per year. Find the value of r if < 1000 double itself in
10 years. ^loge 2 = 0.6931h
log x = kt
c

Sol :

x = ekt
c
x = cekt
Solution of differential equation is Click: www.nodia.study/lema/om138
kt
x (t) = ce
were c is constant of integration. Here, c , k are determined
from the two given (initial) conditions. EXAMPLE 15.39
In a bank, principal increase continuously at the rate of
15.7.2 Law of Natural Decay 5% per year. An amount of < 10000 is deposited with this
bank, how much will it worth after 10 years. ^e0.5 = 1.648h
Let the material m (t) at any time t decay at a rate which is


Sol :
proportional to the amount present. Following differential
equation describes the decay phenomena.
dm =− km k>0
dt
where k is the constant of proportionality. Here -ive sign Click: www.nodia.study/lema/om139
is due to decay phenomena.
Separating the variables, we get
EXAMPLE 15.40
1 dm =− k dt
m In a culture, the bacteria count is 2,00,000. The number is
increased by 10% in 2 hours. In now many hours will the
Integrating # m1 dm = # dt + c count reach 4,00,000, if the rate of growth of bacteria is
proportional to the number present?
log m =− kt + log c


Sol :
log m - log c =− kt
log m =− kt
c

m = e−kt
c
Click: www.nodia.study/lema/om140
Chap 15 Differential Equation Page 197

EXAMPLE 15.41 EXAMPLE 15.45

The number N of bacteria in a culture grew at a rate Radium decomposes at a rate proportional to the present.
proportional to N . the value of N was initially 100 and If p per cent of the original amount disappears in , years,
increased to 332 in one hour. What was the value of N how much will remain at the end of 2, years?
after 1 1 hours?

Sol :
2


Sol :

Click: www.nodia.study/lema/om145
Click: www.nodia.study/lema/om141
EXAMPLE 15.46
EXAMPLE 15.42 If 30% of a radioactive substance disappeared in 10 days,
In a culture of yeast, at each instant, the time rate change how long will it take for 90% of it to disappear.
of active ferment is proportional to the amount present. If

Sol :
the active ferment doubles in two hours, how much can be
expected at the end of 8 hours at the same rate of growth.
Find also, how much time will elapse, before the active
ferment grows to eight times its initial value. Click: www.nodia.study/lema/om146


Sol :

EXAMPLE 15.47
Under certain conditions, cane-sugar in water is converted
Click: www.nodia.study/lema/om142 into dextrose at a rate which is proportional to the amount
unconverted at any time. If of 75 gm at time t = 0, 8 gm
are converted during the first 30 minutes, find the amount
EXAMPLE 15.43 converted in 1 1 hours.
2
A bacterial population B is known to have a rate of growth

Sol :
proportional to B itself. If between noon and 2 PM the
population triples, at what time, no controls being exerted,
should B become 100 times what it was at noon.


Sol :
Click: www.nodia.study/lema/om147

EXAMPLE 15.48
Click: www.nodia.study/lema/om143 In a certain chemical reaction, the rate of conversion of a
substance at time t is proportional to the quantity of
substance still untransformed at the instant. The amount
EXAMPLE 15.44 of substance remaining untransformed at the end of one
The population of a village increase continuously at the hour and at the end of four hours are 60 gm and 21 gm
rate proportional to the number of its inhabitants present respectively. How many grams of substance were present
at any time. If the population of the village was 8 thousand initially?
in 1999 and 10 thousand in the year 2004, what will be the

Sol :
population of the village in 2009?


Sol :

Click: www.nodia.study/lema/om148
Click: www.nodia.study/lema/om144
Page 198 Differential Equation Chap 15

EXAMPLE 15.49 over one year.

Uranium disintegrates at a rate proportional to the amount Ans : 8.33%
present at any instant. If M1 and M2 gm of uranium are
present at times T1 and T2 respectively, show that the half-
^T2 - T1h log 2 4. Radium decomposes at a rate proportional to the
life of uranium is .
log c M1 m quantity of radium present. It is found that in 25 years,
M2
approximately 1.1% of a certain quantity of radium


Sol :
has decomposed. Determine approximately how long it
will take for one-half of the original amount of radium
to decompose?
Ans :
Click: www.nodia.study/lema/om149

EXAMPLE 15.50 5. The rate of increase in the number of bacteria in a

Radium decomposes at a rate proportional to the quantity certain bacteria culture is proportional to the number
of radium present. Suppose that it is found that in 25 present. Given the number triples in 5 hrs., find how
years approximately 1.1% of a certain quantity of radium many bacteria will be present after 10 hours. Also find
has decomposed. Determine approximately how long will the time necessary for the number of bacteria to be 10
it take for one-half of the original amount of radium to times the number of initial present.
5 log 10
decompose. Ans : 9 times,
log 3


Sol :

Ans : 1567 years

Click: www.nodia.study/lema/om150
6. In a culture, the bacteria count is 100000. The number
is increased by 10% in 2 hours. In how many hours
will the count reach 200000, if the rate of growth of
bacteria is proportional to the number present?
E X ERCISE 15.5 2 log 2
log ^ 10 h
Ans : 11 hours

1. If the interest is compounded continuously at 6% per

annum, how much worth ` 1000 will be after 10 years?
7. The rate of growth of a population is proportional to
How long will it take to double ` 1000?
the number present. If the population of a city doubled
Ans : ` 1822, 12 years
in the past 25 years, and the present population is
100000, when will the city have a population of 500000
?
2. The population of a city increases at a rate proportional Ans : 58 years
to the number of inhabitants present at any time t .
If the population of the city was 200000 in 1990 and
250000 in 2000, what will be the population in 2010?
8. Experiments show that radium disintegrates at a rate
Ans : 312500
proportional to the amount of radium present at the
moment. Its half-life is 1590 years. What percentage
will disappear in one year?
3. A bank pays interest by continuous compounding, that
Ans : 1 log 2, k is the constant of
is, by treating the interest rate as the instantaneous rate k
proportionality
of change of principal. Suppose in an account interest
accrues at 8% per year, compounded continuously.
Calculate the percentage increase in such an account
Chap 15 Differential Equation Page 199

9. The rate of increase of bacteria in a culture is

proportional to the number of bacteria present and
it is found that the number doubles in 6 hours. Prove
that the bacteria becomes 8 times at the end of 18
hours.
Ans : 0.04%

Applied Mathematics
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For Teachers
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Page 200 Unit 3 Case Study Chap 28

UNIT 3

Case Study Questions

EXAMPLE 28.1
Hindustan Pencils Pvt. Ltd. is an Indian manufacturer
of pencils, writing materials and other stationery items,
established in 1958 in Bombay. The company makes
writing implements under the brands Nataraj and Apsara,
and claims to be the largest pencil manufacturer in India.

Arvind Fashions knows that the it can sell 1000 shirts

when the price is ` 400 per shirt and it can sell 1500
shirts when the price is ` 200 a shirt. Determine
(i) the price function
(ii) the revenue function
(iii) the marginal revenue function.
Hindustan Pencils manufactures x units of pencil in a
given time, if the cost of raw material is square of the

Sol :
pencils produced, cost of transportation is twice the

Click : www.nodia.study/lema/zm124
number of pencils produced and the property tax costs
` 5000. Then,
(i) Find the cost function C (x) .
(ii) Find the cost of producing 21st pencil.
EXAMPLE 28.3
(iii) The marginal cost of producing 50 pencils.
Ravindra Manch was established in 1963 to commemorate


Sol : the 100th birth anniversary of Ravindra Nath Tagore.
Ravindra Manch is one of the myriad places in Jaipur
that hold a historical significance. The auditorium was
Click : www.nodia.study/lema/zm123 among the seventeen cultural centers that were envisioned
by Pandit Jawaharlal Nehru and was thrown open to the
public on Independence Day in the year 1963. Since then,
EXAMPLE 28.2 the place has hosted a wide number of cultural shows
In apparels industries retailers have an interesting and events. Some of the most renowned artists, dancers
conundrum facing them. On one hand, consumers are and actors have displayed their talent at this prestigious
more drawn to hot promotional deals than ever before. venue.
The result of this is that they sell more units (of product)
for less money, and this adversely impacts comp store
sales.
Chap 28 Unit 3 Case Study Page 201

Click : www.nodia.study/lema/zm126

EXAMPLE 28.5
The Indian toy industry is estimated to be worth US$1.5
billion, making up 0.5% of the global market share. The
toy manufacturers in India can mostly be found in NCR,
Mumbai, Karnataka, Tamil Nadu, and several smaller
towns and cities across central states such as Chhattisgarh
and Madhya Pradesh. The sector is fragmented with 90% of
the market being unorganised. The toys industry has been
predicted to grow to US$2-3 billion by 2024. The Indian toy
Last year, 300 people attended the Ravindra Manch industry only represents 0.5% of the global industry size
Drama Club’s winter play. The ticket price was < 70. The indicating a large potential growth opportunity for Indian
advisor estimates that 20 fewer people would attend for consumer product companies who will develop exciting
each < 10 increase in ticket price. innovations to deliver international quality standards at
(i) What ticket price would give the most income for the competitive prices.
Drama Club?
(ii) If the Drama Club raised its tickets to this price, how
much income should it expect to bring in?


Sol :

Click : www.nodia.study/lema/zm125

EXAMPLE 28.4
A USB flash drive -- also known as a USB stick, USB
thumb drive or pen drive -- is a plug-and-play portable
Fisher Price is a leading toy manufacturer in India.
storage device that uses flash memory and is lightweight
Fisher Price produces x set per week at a total cost of
enough to attach to a keychain. A USB flash drive can
25 x + 3x + 100 . The produced quantity for his market is
1 2
be used in place of a compact disc. A USB flash drive
x = 75 − 3p where p is the price set.
can store important files and data backups, carry favorite
(i) Show that the maximum profit is obtained when
settings or applications, run diagnostics to troubleshoot
about 30 toys are produced per week.
computer problems or launch an OS from a bootable USB.
(ii) What is the price at maximum profit?


Sol :

Click : www.nodia.study/lema/zm127

EXAMPLE 28.6
A Tour Operator is a person or company that thinks up
ideas for holidays, researches the ideas, designs the holiday
A pen drive manufacturing company charges < 6000 per itinerary and content, contracts the services needed for the
unit for an order of 50 pen drives or less. The charge is holiday, accommodation, transport, guides, tour leaders
reduced by < 75 per pen drive for each order in excess of or resort reps etc and then markets the resultant package.
50. Find the largest size order, the company should allow
so as to receive maximum revenue.


Sol :
Page 202 Unit 3 Case Study Chap 28

Sol :

Click : www.nodia.study/lema/zm129

EXAMPLE 28.8
Brine is a high-concentration solution of salt in water.
In diverse contexts, brine may refer to the salt solutions
ranging from about 3.5% up to about 26%. Brine forms
naturally due to evaporation of ground saline water but it
is also generated in the mining of sodium chloride.
Makemytrip charges < 136 per passenger for 100 passengers
with a discount of < 4 for each 10 passengers in excess of
100. Find the number of passengers that will maximise the
amount of money the tour operator receives.


Sol :

Click : www.nodia.study/lema/zm128

EXAMPLE 28.7
Climate change refers to long-term shifts in temperatures
and weather patterns. These shifts may be natural, but
since the 1800s, human activities have been the main
driver of climate change, primarily due to the burning of
fossil fuels (like coal, oil, and gas), which produces heat-
trapping gases.

A researcher models the temperature T (in °C) during the A tank initially contains 10 gallons of pure water. Brine
time period from 6 A.M. to 6 P.M. in a certain northern containing 3 pounds of salt per gallon flows into the tank
city by the function at a rate of 2 gallons per minute, and the well-stirred
T ^ t h = 3 − 1 ^t − 5h2 for 0 # t # 12 mixture flows out of the tank at the same rate.
3
(i) How much salt is present at the end of 10 minutes?
where t is the number of hours after 6 A.M. (ii) How much salt is present in the long run?
(i) What is the average temperature in the city during


Sol :
the workday, from 8 A.M. to 5 P.M.?
(ii) At what time (or times) during the workday is the
temperature in the city the same as the average
temperature found in part (a)?
Click : www.nodia.study/lema/zm130
Chap 28 Unit 3 Case Study Page 203

EXAMPLE 28.9
Chemical reaction, a process in which one or more
substances, the reactants, are converted to one or more
different substances, the products. Substances are either
chemical elements or compounds. A chemical reaction
rearranges the constituent atoms of the reactants to create
different substances as products.

Manager of McDonald’s at Delhi determines that if x

thousand units of a new meal item are supplied, then the
marginal price at that level of supply is given by
pl^x h = x
^x + 3h2
dollars per meal

where p ^x h is the price (in dollars) per unit at which all

x meal units will be sold. Currently, 5,000 units are being
supplied at a price of $2.20 per unit.
(i) Find the supply (price) function p ^x h .
(ii) If 10,000 meal units are supplied to restaurants in
the chain, what unit price should be charged so that
In a certain chemical reaction, a substance is converted all the units will be sold?
into another substance at a rate proportional to the square

Sol :
of the amount of the first substance present at any time t
. Initially ^t = 0h 50 g of the first substance was present; 1
hr later, only 10 g of it remained. Click : www.nodia.study/lema/zm132
(i) Find an expression that gives the amount of the first
substance present at any time t .
(ii) What is the amount present after 2 hr? EXAMPLE 28.11
Bob is taking a learning test in which the time he takes to
memorize items from a given list is recorded. Let M ^ t h be


Sol :
the number of items he can memorize in t minutes. His

Click : www.nodia.study/lema/zm131 learning rate is found to be

M l^ t h = 0.4t − 0.005t2

EXAMPLE 28.10
McDonald’s is the world’s leading food service retailer
with more than 31,000 restaurants in 119 countries
serving more than 50 million customers each day. In
India, McDonald’s is a joint-venture company managed
by two Indians. While Amit Jatia, M.D. Hardcastle
Restaurants Pvt. Ltd. owns and spearheads McDonalds
in west & south India, McDonald’s restaurants in North
& East India are owned and managed by Vikram Bakshi’s
Connaught Plaza Restaurants Private Limited.

(i) How many items can Bob memorize during the first
10 minutes?
(ii) How many additional items can he memorize during
the next 10 minutes (from time t = 10 to t = 20 )?
Page 204 Unit 3 Case Study Chap 28

Sol : ways, and the effects associated with drugs can vary
from person to person. How a drug effects an individual
is dependent on a variety of factors including body size,
Click : www.nodia.study/lema/zm133 general health, the amount and strength of the drug, and
whether any other drugs are in the system at the same
time. It is important to remember that illegal drugs are
EXAMPLE 28.12 not controlled substances, and therefore the quality and
According to data presented by Indian Publishing strength may differ from one batch to another.
Federation Association at New Delhi Book Fair, book sales
around the world are in general decline. Clearly, despite
the best efforts of the publishing industry to innovate and
advance into the digital age, something else is being lost.
Could it be something as straightforward as a lack of focus
on fostering literacy and a love of books and reading?
Or are there larger social and economic changes afoot?
One thing is for certain, without a stronger dedication to
books and reading, society will be all the poorer for it in
the long run.

The concentration C ^ t h in milligrams per cubic centimeter

^mg/cm3h of a drug in a patient’s bloodstream is
0.5 mg/cm3 immediately after an injection and t minutes
later is decreasing at the rate

C l^ t h = − 00.01
0.01t
.01e 3
2 mg/cm per minute
The monthly sales at an book store are currently $10,000 ^e t + 1h
but are expected to be declining at the rate of A new injection is given when the concentration drops
Sl^ t h =− 10t2/5 dollars per month below0.05 mg/cm3 .
t months from now. The store is profitable as long as the (i) Find an expression for C ^ t h .
sales level is above $8,000 per month. (ii) What is the concentration after 1 hour? After 3
(i) Find a formula for the expected sales in t months. hours?
(ii) What sales figure should be expected 2 years from

Sol :
now?
(iii) For how many months will the store remain
profitable? Click : www.nodia.study/lema/zm135


Sol :
EXAMPLE 28.14

Click : www.nodia.study/lema/zm134 Bata India is the largest retailer and leading manufacturer
of footwear in India and is a part of the Bata Shoe
Organization. Incorporated as Bata Shoe Company
EXAMPLE 28.13 Private Limited in 1931, the company was set up initially
Different types of drugs affect your body in different as a small operation in Konnagar (near Calcutta) in 1932.
Chap 28 Unit 3 Case Study Page 205

In January 1934,

The price p (dollars) of each unit of a particular commodity

is estimated to be changing at the rate
dp
= − 135x2
The manager of BATA show room at Jaipur determines

that the price p (dollars) for each pair of a popular brand dx 9+x
of sports sneakers is changing at the rate of where x (hundred) units is the consumer demand (the
pl^x h = −2 300x3/2 number of units purchased at that price). Suppose 400
^x + 9h units ^x = 4h are demanded when the price is $30 per unit.
when x (hundred) pairs are demanded by consumers. (i) Find the demand function p ^x h .
When the price is $75 per pair, 400 pairs ^x = 4h are (ii) At what price will 300 units be demanded? At what
demanded by consumers. price will no units be demanded?
(i) Find the demand (price) function p ^x h . (iii) How many units are demanded at a price of $20 per
(ii) At what price will 500 pairs of sneakers be demanded? unit?
At what price will no sneakers be demanded?

Sol :
(iii) How many pairs will be demanded at a price of $90
per pair?


Sol : Click : www.nodia.study/lema/zm137

Click : www.nodia.study/lema/zm136 EXAMPLE 28.16

Hand knotted rugs are made on a specially designed loom
and are knotted by hand. The making of hand knotted
EXAMPLE 28.15 rugs is a very ancient art that deserves a lot of admiration!
Commodity prices are primarily determined by the forces Hand knotted rugs can be made of wool, cotton, silk, jute
of supply and demand in the market. For example, if the and other natural materials. Silk is sometimes used in
supply of oil increases, the price of one barrel decreases. wool rugs for the outlines or highlights of the pattern to
Conversely, if demand for oil increases (which often enhance the design. Hand knotted and hand woven rugs
happens during the summer), the price rises. Gasoline and can last many generations if they are of good quality and
natural gas fall into the energy commodities category. properly maintained.
Page 206 Unit 3 Case Study Chap 28

Jaipur Rug Studio estimates marginal revenue to be to Islamic pottery and, more distantly, Chinese pottery.
Rl^q h = 100q−1/2 dollars per unit when the level of
production is q units. The corresponding marginal cost
has been found to be 0.4q dollars per unit. Suppose the
manufacturer’s profit is $520 when the level of production
is 16 units. What is the manufacturer’s profit when the
level of production is 25 units?


Sol :

Click : www.nodia.study/lema/zm138

EXAMPLE 28.17
Suppose it has been determined that the marginal revenue
Hindustan Unilever Limited is a consumer goods company
associated with the production of x units of a piece of
blue Pottery is Rl^x h = 240 − 4x dollars per unit.
headquartered in Mumbai, India. It is a subsidiary of
(i) What is the revenue function R ^x h ? You may assume
Unilever, a British company. Its products include foods,
R ^0 h = 0 .
beverages, cleaning agents, personal care products, water
purifiers and other fast-moving consumer goods.
(ii) What price will be paid for each unit when the level
of production is x = 5 units?


Sol :

Click : www.nodia.study/lema/zm140

EXAMPLE 28.19
Teak (Tectona grandis) is considered to be the best type
of wood to make furniture as it is highly fire-resistant and
durable. Teak is also one of the most expensive woods in
Data Analyst of Hindustan Unilever Limited determines India. It looks very attractive after polishing and will not
that t months after introducing a new product, the get affected by white ants and dry rots. It does not shrink
company’s sales will be S ^ t h thousand dollars, where much and would not corrode metal fastenings. It is one of
the most common types of wood and is for superior use
S ^ t h = 750 t
only. It is found in central and southern India.
4t2 + 25
What are the average monthly sales of the company
over the first 6 months after the introduction of the new
product?


Sol :

Click : www.nodia.study/lema/zm139

EXAMPLE 28.18 Rajhans Furnitures at Guwahati make teak wood chairs.

Blue Pottery is widely recognized as a traditional craft of The marginal cost is 3 ^q - 4h2 dollars per chair when the
Jaipur of Central Asian origin.[1] The name ‘blue pottery’ level of production is q chairs.
comes from the eye-catching cobalt blue dye used to color (i) Express the total production cost in terms of the
the pottery. It is one of many Eurasian types of blue and overhead (the cost of producing 0 chair) and the
white pottery, and related in the shapes and decoration
Chap 28 Unit 3 Case Study Page 207

number of chairs produced.

(ii) What is the cost of producing 14 chairs if the
overhead is $436?


Sol :

Click : www.nodia.study/lema/zm141

EXAMPLE 28.20
White tea is known to be one of the most delicate tea
varieties because it is so minimally processed. White tea
is harvested before the tea plant’s leaves open fully, when
the young buds are still covered by fine white hairs, hence
the name “white” tea. These buds and unfurled leaves
from the newest growth on the tea plant are handpicked
and then quickly and meticulously dried, so the leaves are
not allowed to oxidize as long as leaves plucked for green
or black tea production. This minimal processing and low
oxidation results in some of the most delicate and freshest
tea available.

Rajesh is having a white tea store an Delhi Airport. The

marginal revenue from the sale of x boxes of a white tea
is estimated to be
Rl^x h = 50 + 3.5xe−0.01x dollars per unit
2

where R ^x h is revenue in dollars.
(i) Find R ^x h , assuming that R ^0 h = 0 .
(ii) What revenue should be expected from the sale of
1,000 boxes?


Sol :

Click : www.nodia.study/lema/zm142


******
Page 208 Probabitility Distribution chapter 16

CHAPTER 16

Probabitility Distribution

16.1 Introduction experiment. Since this number can change from one
We have already studied random experiments and outcome to another, it is a variable. Also, since this number
sample spaces corresponding to random experiments. As is obtained from outcomes of a random experiment, it is
an example, consider the experiment of tossing two fair called a random variable.
coins. The sample space corresponding to this experiment
contains four points, namely {HH, HT, TH, TT}.
We have already learnt to construct the sample
space of any random experiment. However, the interest
is not always in random experiment and its sample space.
We are often not interested in the outcomes of a random
experiment, but only in some number obtained from
the outcome. For example, in case of the experiment of
tossing two fair coins, our interest may be only in the
number of heads when two coins are tossed. In general, 16.2 random variable
it is possible to associate a unique real number with very A random variable is a real-valued function defined on
possible outcome of a random experiment. The number the sample space of a random experiment. In other words,
obtained from an outcome of a random experiment can the domain of a random variable is the sample space of a
take different values for different outcomes. This is why random experiment, while its co-domain is the real line.
such a number is a variable. The value of this variable Thus X : S " R is a random variable.
depends on the outcome of the random experiment, and Consider an experiment where three seeds are sown
is therefore called a random variable. a random variable is in order to find how many of them germinate. Every seed
usually denoted by capital letters like X , Y , Z , ...... will either germinate or will not germinate. Let us use the
Consider the following examples to understand the concept letter Y when a seed germinates. The sample space of this
of random variables. experiment can then be written as
(i) When we throw two dice, there are 36 possible S = {YYY, YYN, YNY, NYY, YNN, NYN, NNY NNN}
outcomes, but if we are interested in the sum of the
and n ^S h = 8
numbers on the two dice, then there are only 11
None of these outcomes is a number. We shall
different possible values, from 2 to 12.
try to represent every outcome by a number. Consider
(ii) If we toss a coin 10 times, then there are 210 = 1024
the number of times the letter Y appears is a possible
possible outcomes, but if we are interested in the
outcome and denote it by X . Then
number of heads among the 10 tosses of the coin,
then there are only 11 different possible values, from We have, X ^YYYh = 3
0 to 10. X ]YYNg = X ^YNYh = X ^NYYh = 2
(iii) In the experiment of randomly selecting four items X ^YNNh = X ^NYNh = X ^NNYh = 1
X ^NNNh = 0
from a lot of 20 items that contains 6 defective items,

the interest is in the number of defective items among
The variable X has four possible values, namely 0,
the selected four items. In this case, there are only 5
1, 2 and 3. The set of possible values of X is called the
different possible outcomes, from 0 to 4.
range of X . Thus, in this example, the range of X is the
In all the above examples, there is a rule to assign
set {0, 1, 2, 3}.
a unique value to every possible outcomes of the random
chapter 16 Probabitility Distribution Page 209

A random variable is denoted by a capital letter, Possibilities P1 P2 P3 Values of Random

like X and Y . A particular value taken by the random variable (Number of Yes
variable is denoted by the small letter x . Note that x those who are given)
is real number and the set of all possible outcomes
corresponding to a particular value x of X is denoted by 1. Y Y Y 3
the event 6X = x @. For example, in experiment of three 2. Y Y N 2
seeds. the random variable X has four possible values, 3. Y N Y 2
namely 0, 1, 2, 3. the four events are then defined as
4. Y N N 1
follows.
6X = 0@ = {NNN} ,
5. N Y Y 2

6X = 1@ = " YNN, NYN, NNY , , 6. N Y N 1

6X = 2@ = " YYN, YNY, NYY , , 7. N N Y 1
6X = 3@ = " YYY , 8. N N N 0
Note that the sample space in this experiment Form the above table, the discrete random variable take
is finite and so is the random variable defined on it. A values 0, 1, 2 and 3.
sample space need not be finite. Consider, for example,
the experiment of tossing a coin until a head is obtained. 16.3.1 Probability Distribution Function
The sample space for this experiment is If X is a discrete random variable with distinct values x 1,
S = "H, TH, TTH, TTTH, ....., x 2 , ..., x n , ..., then the function, denoted by PX ^x h and
Note that S contains an unending sequence of tosses defined by
required to get a head. Here, S is countably infinite. The P ^X h = p ^x h
p ^x h if x = x i, i = 1, 2, ....., n, .....
random variable X : S " R , denoting the number of tosses
required to get a head, has the range {1, 2, 3, .....} which =* i
is also countably infinite. 0 if x ! x i
This is defined to be the probability distribution function
Types of Random Variables :
or discrete probability function of X .
There are two types of random variables, namely discrete The probability distribution function p ^x h must satisfy
and continuous. the following conditions
(i) p ^x ih $ 06i

/ p ^x ih = 1
3
(ii)
16.3 Discrete random variable i=1

A variable which can assume finite number of possible

values or an infinite sequence of countable real number is 16.3.2 Expected Value
called a discrete random variable. An extremely useful concept in problems involving random
Example of discrete random variable : variables or distributions is that of expectation. Random
(i) Marks obtained in a test. variables can be characterized and dealt with effectively
(ii) Number of red marbles in a jar. for practical purposes by consideration of quantities
(iii) Number of telephone calls at a particular time. called their expectation. The concept of mathematical
(iv) Number of cars sold by a car dealer in one month, expectation arose in connection with games of chance. For
etc. example, a gambler might be interested in his average
For instance, three responsible persons say, P1 , P2 winnings at a game, a businessman in his average
and P3 are asked about their opinion in favour of building profits on a product, and so on. The average value of a
a model school in a certain district. Each person’s response random phenomenon is also termed as its Mathematical
is recorded as Yes (Y) or No (N). Determine the random expectation or expected value.
variable that could be of interest in this regard. Expected Value
The possibilities of the response are as follows
The expected value is a weighted average of the values
of a random variable may assume. The weights are the
probabilities.
Let X be a discrete random variable with probability
Page 210 Probabitility Distribution chapter 16

distribution function p ^x h . Then, its expected value is which went without any discussion.
defined by

Sol :
E ^X h = / xp ^x h
Please not that E ^X h is an average of the values
that the random variable takes on, where each value is
Click : www.nodia.study/lema/pm101
weighted by the probability that the random variable is
equal to that value. Values that are more probable receive
more weight. EXAMPLE 16.2
Properties of Mathematical Expectation In a survey following data were obtained regarding the
numbers of car own by a house.
(i) E (a) = a where a is a constant
(ii) E (aX) = aE (X) No. of Cars 0 1 2 3 4
(iii) E (aX + b) = aE (X) + b , where ]a\ and ]b\ are
No. of Household 30 320 380 190 80
constants.
(iv) If X $ 0 , then E (X) $ 0 Estimate the probability distribution function. Verify
(v) V (a) = 0 p ^x ih is a probability distribution function.
(vi) If X is random variable, then V (aX + b) = a 2 V (X)

Sol :

16.3.3 Variance For Discrete Random Variable Click : www.nodia.study/lema/pm102

The variance is a weighted average of the squared
deviations of a random variable from its mean. The
weights are the probabilities. The variance of a random EXAMPLE 16.3
variable X will be a measure of the spread or dispersion A problem in a test given to small children asks them
of the density of X or simply the variability in the values to match each of three pictures of animals to the word
of a random variable. identifying that animal. If a child assigns the three words
If X is discrete random variable with probability at random to the three pictures, find the probability
distribution function p (x) the variance of X is defined by distribution for Y , the number of correct matches.
Var ^X h = E (X 2) − [E (X)] 2

Sol :
16.3.4 Standard Deviation
If X is a random variable, the standard deviation of Click : www.nodia.study/lema/pm103
X (S.D (X)), denoted by σX , is defined as + Var [X] i.e
σX 2 = Var [X]
The variance of X , is also denoted by σX 2 or EXAMPLE 16.4
Var (X) or V (X).
Let the random variable X denote the sum obtained in
rolling a pair of dice. Determine the PDF of X .


Sol : Solution :
EXAMPLE 16.1
Which of the following distributions yield discrete random
variable, and continuous random variable?
(i) Number of males in a sample of 100 persons in a
Click : www.nodia.study/lema/pm104
town.
(ii) The time between two successive arrivals of customers
in a reservation counter. EXAMPLE 16.5
(iii) The number of people who arrived in the last one A random variable X has the following probability
hour in a reservation counter. function
(iv) The number of villages in a district having no
X = xi 0 1 2 3 4 5 6 7
electricity.
(v) The number of hours during a session of Lok Sabha
chapter 16 Probabitility Distribution Page 211

EXAMPLE 16.9
p ^x ih 0 a 2a 2a 3a a2 2a 2 7a 2 + a
A software company conducts a survey among its
(i) Find a , programmers and project leaders regarding their job
(ii) Evaluate P ^X 1 3h , satisfaction. The data obtained regarding job satisfaction
(iii) Evaluate P ^X 2 2h and of 50 programmers and 15 project leaders is given in
(iv) P ^2 1 X # 5h following table. (The lowest and highest job satisfaction


Sol : are given by scores 1 and 5 respectively.)

Job Satisfaction Score Programmers Project leaders

Click : www.nodia.study/lema/pm105 1 5 1
2 10 3
3 20 3
EXAMPLE 16.6
4 10 6

p (x) = * 20
x , x = 0, 1, 2, 3, 4, 5 5 5 2
If
0, otherwiere (i) Develop probability distribution for the job
Find (i) P ^X 1 3h and (ii) P ^2 1 X # 4h satisfaction of programmers and project leaders.
(ii) Find the mean and variance of the levels of job


Sol :
satisfaction of programmers and project leaders.
(iii) Who is more satisfied with his job: a randomly
Click : www.nodia.study/lema/pm106 selected programmer or a randomly selected project
leader?


Sol :
EXAMPLE 16.7
A milk booth can sell 100 to 500 packets on any day. It sells
100 packets or 200 packets with a probability of 0.2 each. It
Click : www.nodia.study/lema/pm109
can sell 300 or 400 packets with a probability of 0.25 each
and 500 packets with a probability of 0.1. Describe the
random variable by its probability distribution function. EXAMPLE 16.10
Construct the probability distribution function of the


Sol :
random variable whose frequency table is given in
following table.
Click : www.nodia.study/lema/pm107 Outcome 2 4 6 8 10 12 14
Frequency 12 11 8 6 4 5 4
Also, find its mean and variance.
EXAMPLE 16.8
Decide which of the following distributions are probability

Sol :
distributions :
(i) The distribution takes the values - 2 , - 1, 0, 1
and p (− 2) =− 0.5 , p (− 1) = 0.7 , p (0) = 0.2 , Click : www.nodia.study/lema/pm110
p (1) = 0.6.
(ii) The distribution takes the values 1, 2, 3, 4 and
p (1) = 0.1, p (2) = 0.2 , p (3) = 0.25 , p (4) = 0.3 . EXAMPLE 16.11
(iii) The distribution takes the values 20, 30, 40, 50 with Find the probability distribution of a number of successes
p (20) = 0.1, p (30) = 0.2 , p (40) = 0.3 , p (50) = 0.4 . in two tosses of a die, where a success is defined as a


Sol : number greater than 4.


Sol :

Click : www.nodia.study/lema/pm108
Page 212 Probabitility Distribution chapter 16

Click : www.nodia.study/lema/pm111 X = xi 0 1 2 3 4 5 6 7
p ^x ih 0 k 2k 2k 3k k 2
2k 2 2
7k + k
Find :
EXAMPLE 16.12
A bag contains 3 blue and 4 red balls. Three balls are (i) k , (ii) P (X 1 3),
drawn one by one with replacement. Find the probability
(iii) P (X 2 6) (iv) P (X 1 6)
distribution of the number of red balls.


Sol : (v) (0 1 X 1 5)

Sol :
Click : www.nodia.study/lema/pm112
Click : www.nodia.study/lema/pm116
EXAMPLE 16.13
An urn contains 4 white and 6 red balls. Four balls are
EXAMPLE 16.17
drawn at random from the urn. Find the probability
Let X be a random variable which assumes values x 1 , x 2,
distribution of the number of white balls.
x 3 , x 4 such that


Sol : 2P (X = x 1) = 3P (X = x 2) = P (X = x 3) = 5P (X = x 4)
Find the probability distribution of X .

Click : www.nodia.study/lema/pm113

Sol :

Click : www.nodia.study/lema/pm117
EXAMPLE 16.14
Two bad eggs are mixed accidentally with 10 good ones.
Find the probability distribution of the number of bad
EXAMPLE 16.18
eggs in 3 draws at random, without replacement, from
Find the mean, variance and standard deviation of
this lot.
the number of heads in three tosses of a fair coin (or


Sol : simultaneous tosses of three coins).


Sol :
Click : www.nodia.study/lema/pm114
Click : www.nodia.study/lema/pm118
EXAMPLE 16.15
Three numbers are selected at random (without
EXAMPLE 16.19
replacement) from first six positive integers. Let X
A die is tossed thrice. A success is getting 1 or 6 on a
denote the largest of the three numbers obtained. Find
toss. Find the mean and the variance of the number of
the probability distribution of X .
successes.


Sol :


Sol :

Click : www.nodia.study/lema/pm115
Click : www.nodia.study/lema/pm119

EXAMPLE 16.16
EXAMPLE 16.20
A random variable X has the following probability
Two cards are drawn successively with replacement from a
distribution values of X
chapter 16 Probabitility Distribution Page 213

well shuffled pack of 52 cards. Find the mean and standard appear, < 8 if 2 heads appear and < 3 if 1 head appears.
deviation of the number of kings. On the other hand, he loses < 25 if 3 tails appear. Find


Sol : the expected value of the amount the player can win or
lose.


Sol :
Click : www.nodia.study/lema/pm120
Click : www.nodia.study/lema/pm124
EXAMPLE 16.21
From a lot of 10 items containing 3 defective items, a
sample of 4 items is drawn at random. Let the random EXAMPLE 16.25
variable X denote the number of defective items in the A dealer in refrigerators estimates from his past experience
sample. If the sample is drawn without replacement, find the probabilities of his selling refrigerators in day, which
the mean and variance of X . are as follows :


Sol : No. of 0 1 2 3 4 5 6
refrigerators

Click : www.nodia.study/lema/pm121 sold in a day

Probability 0.03 0.20 0.23 0.25 0.12 0.10 0.07
Find the expected value of the number of refrigerators
sold in a day.


Sol :
EXAMPLE 16.22
The random variable X can take only the values 0, 1, 2.
Given that P (X = 0) = P (X = 1) = p and E (X 2) = E (X ),
Click : www.nodia.study/lema/pm125
find the value of p .


Sol :
EXAMPLE 16.26
Determine the expected value and variance of the random
Click : www.nodia.study/lema/pm122 variable X having the following probability distribution.

X = xi 1 2 3 4 5 6 7 8 9 10

p ^x ih 0.15 0.10 0.10 0.01 0.08 0.01 0.05 0.02 0.28 0.20
EXAMPLE 16.23
The probability distribution of a random variable X is

Sol :
given as :
Zkx 2 for x = 1, 2, 3
]
p (x) = [2kx for x = 4, 5, 6; where k is a constant
Click : www.nodia.study/lema/pm126
]0, otherwise
\
Find (i) P (X $ 4), (ii) E (X )
EXAMPLE 16.27


Sol : Check whether the following can define probability
distribution function and explain your answer :
2
Click : www.nodia.study/lema/pm123 f (x) = 5 − x , x = 0 , 1, 2, 3.
6


Sol :

EXAMPLE 16.24 Click : www.nodia.study/lema/pm127

A player tosses three fair coins. he wins < 12 if 3 heads
Page 214 Probabitility Distribution chapter 16

EXAMPLE 16.28 Click : www.nodia.study/lema/pm131

Verify that f (x) = * n (n + 1)
2x , x = 1, 2, 3, ....., n
.
0, elsewhere
EXAMPLE 16.32
can serve as probability function of a random variable X. A random variable X has the following probability
Also find P (X # 3). function:


Sol :
X = xi –2 –1 0 1 2 3
p (xi) 0.1 k 0.2 2k 0.3 3k
Click : www.nodia.study/lema/pm128 (i) Find k
(ii) Evaluate P (X < 2)
(iii) Evaluate P (X $ 2)
EXAMPLE 16.29 (iv) Evaluate P (− 2 < X < 2)
Given that f (x) = kx is a probability function for a

Sol :
2
random variable which can take on the values x = 0, 1, 2, 3
and 4, find k .


Sol : Click : www.nodia.study/lema/pm132

Click : www.nodia.study/lema/pm129 EXAMPLE 16.33

A salesman wants to know the average number of units
he sells per sales call. He check his past sales records and
EXAMPLE 16.30 comes up with the following probabilities :
We select one of the integers 1 through 10 at random
Sales (in units) 0 1 2 3 4 5
and count its divisors. Find the probability distribution
function. Probabilities 0.15 0.20 0.10 0.05 0.30 0.20


Sol : What is the expected value of the number of units he sells
per sale call?


Sol :
Click : www.nodia.study/lema/pm130
Click : www.nodia.study/lema/pm133
EXAMPLE 16.31
Let the random variable X represent the number of
accident occurring on a given day in Jaipur city. Let EXAMPLE 16.34
the probability function of random variable X be of the There is a group of 50 people who are patriotic out of
following form where C is source constant : which 20 believe in non-violence. Two persons are selected
Z
]C if x = 0 at random out of them. Write the probability distribution
]2C if x = 1 for the selected persons who are non-violent. Also find the
] expected value of the distribution.
]3C if x = 2
f (x) = [
]4C if x = 3

Sol :
]1.5C if x = 4
]]
\0.5C if x = 5 Click : www.nodia.study/lema/pm134
(i) Determine the value of C
(ii) Find P (X 1 3),
(iii) Find P (0 1 X # 4),
EXAMPLE 16.35


Sol : In a meeting 70% of the members favour a certain proposal,
chapter 16 Probabitility Distribution Page 215

30% being opposed. A member is selected at random and EXAMPLE 16.39

let X = 0 if he opposed, and X = 1 if he is in favour. Find The city corporation is worried about the number of
E (X) and Var (X). accidents occurring at a road junction without a traffic
signal. The data regarding the number of accidents


Sol :
occurring at the junction over 20 weeks is given following
table.
Click : www.nodia.study/lema/pm135 Number of accidents 0 1 2 3 4
Number of weeks 1 3 6 7 3

EXAMPLE 16.36 The corporation is ready to install a traffic signal at the

In a group of 30 scientists working on an experiment, junction if the mean number of accidents per week exceeds
20 never commit error in their work and are reporting 2 and the standard deviation is 2. Will the corporation
results elaborately. Two scientists are selected at random install a traffic signal?
from the group. Find the probability distribution of the

Sol :
number of selected scientists who never commit error in
the work and reporting. Also, find the expected value of
the distribution. Click : www.nodia.study/lema/pm139


Sol :

EXAMPLE 16.40
Click : www.nodia.study/lema/pm136 An office has four copying machines, and the random
variable X measures how many of them are in use at a
particular moment in time. Suppose that P (X = 0) = 0.08,
EXAMPLE 16.37 P (X = 1) = 0.11, P (X = 0) = 0.27, and P (X = 3) = 0.33 .
A supervisor in a manufacturing plant has three men (i) What is P (X = 4)
and three women working for him. He wants to choose (ii) What is the expected number of copying machines in
two workers for a special job. Not wishing to show any use at a particular moment in time?
biases in his selection, he decides to select the two workers (iii) Calculate the variance and standard deviation of the
at random. Let X denote the number of women in his number of copying machines in use at a particular
selection. Find the probability distribution for X. moment.

Sol :

Sol :

Click : www.nodia.study/lema/pm137 Click : www.nodia.study/lema/pm140

EXAMPLE 16.38
Out of a group of 8 highly qualified doctors in a Jaipur
hospital, 6 are very kind and cooperative with their
patients and so are very popular, while the other two
remain reserved. For a health camp, three doctors are
selected at random. Find the probability distribution of
the number of popular doctors.


Sol :

Click : www.nodia.study/lema/pm138
Page 216 Bionomial Distribution chapter 17

CHAPTER 17

Bionomial Distribution

17.1 introduction trials.

Many experiments are dichotomous in nature. An The probability of success in a Bernoulli trial is denoted by
experiment is dichotomous if it has only two possible p and the probability of failure is denoted by q = 1 − p .
outcomes. For example, a tossed coin shows ‘head’ or ‘tail’, For example, if we throw a die and define success as getting
the result of a student is ‘pass’ or ‘fail’, a manufactured an even number and failure as getting an odd number, we
item is ‘defective’ or ‘non-defective’, the response to have a Bernoulli trial. Successive throws of the die are
a question is ‘yes’ or ‘no’, an egg has ‘hatched’ or ‘not independent trials and form a sequence of Bernoulli trials.
hatched’, the decision is ‘yes’ or ‘no’ etc. In such cases, If the die is fair, then p = 12 and q = 1 − p = 12 .
it is customary to call one of the outcomes ‘success’ and
the other ‘failure’. For example, in tossing a coin, if the
17.3 binomial distribution
occurrence of head is considered success, then occurrence
of tail is failure. Consider a set of n independent Bernoullian trails (n
being finite) in which the probability ‘p’ of success in
any trial is constant, then q = 1 − p , is the probability
of failure. The probability of x success and consequently
(n - x) failures in n independent trials, in a specified
order (say) SSFSFFFS.....FSF is given in the compound
probability theorem by the expression
= P (S) P (S) P (F) P (S) ...
P(SSFSFFFS.....FSF)
P (F) P (S) P (F)
17.2 Bernoulli trial = ppqp...qpq

An experiment that can result in one of two possible = pppp...qqqqq...

= "x factors, "(n − x) factors,
outcomes is called a dichotomous experiment. One of the

two outcomes is called success and the other outcome is
called failure. = px q(n − x)
n
x success in n trials can occur in C x ways and the
Definition
probability for each of these ways is same namely p x q n - x .
A dichotomous experiment is called a Bernoulli trial. Every The probability distribution of the number of successes,
time we toss a coin or perform a dichotomous experiment, so obtained is called the binomial probability distribution
we call it a trial. If a coin is tossed 4 times, the number and the binomial expansion is (q + p) n .
of trials is 4, each having exactly two possible outcomes,
Definition
namely success and failure. The outcome of any trial is
independent of the outcome of other trials. In all such A random variable X is said to follow binomial distribution
trials, the probability of success (and hence of failure) with parameter n and p , if it assumes only non-negative
remains the same. value and its probability mass function in given by

Sequence of Bernoulli Trials P (X = x) = p (x)

= n C x p x q n − x, x = 0, 1, 2, .....n

A sequence of dichotomous experiments is called a sequence
of Bernoulli trials if it satisfies the following conditions.


Note
(i) The trials are independent.
Any random variable which follows binomial distribution
(ii) The probability of success remains the same in all
is known as binomial variate i.e. X + B (n, p) is a binomial
chapter 17 Bionomial Distribution Page 217

variate. The Binomial distribution can be used under the EXAMPLE 17.1
following conditions : Ram and Shyam play a game in which their chance of
(i) The number of trials ‘n’ finite winning are in the ratio 3 : 2 Find Ram’s chance of winning
(ii) The trials are independent of each other. atleast three games out of five games played.
(iii) The probability of success ‘p’ is constant for each

Sol :
trial.
(iv) In every trial there are only two possible outcomes-
success or failure. Click : www.nodia.study/lema/qm101
17.3.1 Mean and Variance of Binomial Distribution
The mean of the binomial distribution EXAMPLE 17.2
A fair coin is tossed 6 times. Find the probability that
/ x c nx m p x qn − x
n
E (X) = exactly 2 heads occurs.
x=0

Sol :
= P / x. c n mb n − 1 l p x − 1q n − x
n

x=1 x x−1

= np (q + p) n − 1 [since p + q = 1]
Click : www.nodia.study/lema/qm102
= np

E (X) = np
EXAMPLE 17.3
Thus mean of the binomial distribution is np .
The mean of a Binomial distribution is 12 and its standard
Var (X) = E (X 2) − [E (X)] 2 deviation is 4. Verify the statement.
/ x 2 c nx m p x q n − x
n
Here, E (X 2) =

Sol :
x=0

/ "x (x − 1) + x ,c nx m p x q n − x
n

x=0
Click : www.nodia.study/lema/qm103
= / "x (x − 1),c n m p x q n − x + / x c n m p x q n − x
n n

x=0 x x=0 x
EXAMPLE 17.4
= / "x x − 1), P 2d nb lp q
n n (n − 1) n − 2 x − 2 n − x
( The probability that a student get the degree is 0.4.
x=2 x (x − 1) x − 2
Determine the probability that out of 5 student
+ / x c n mp x q n − x
n
(i) one will be graduate
x=0 x
(ii) atleast one will be graduate
= n (n − 1) P 2 ' / b n − 2 l p x − 2q n − x1 + np
n

x=2 x − 2

Sol :

= n (n − 1) P 2(q + p) (n − 2) + np

= n (n − 1) P 2 + np
Click : www.nodia.study/lema/qm104
Variance = E (X 2) − {E (X)} 2
= n 2 p 2 − np 2 + np − n 2 p 2

EXAMPLE 17.5
= np (1 − p) = npq
In tossing of a five fair coin, find the chance of getting
Hence, mean of the BD is np and the variance is npq . exactly 3 heads.
Properties of Binomial distribution

Sol :
(i) Binomial distribution is symmetrical if p = q = 0.5 .
It is skew symmetric if p ! q . It is positively skewed
if p 1 0.5 and it is negatively skewed if p 2 0.5 Click : www.nodia.study/lema/qm105
(ii) For Binomial distribution, variance is less than mean
Variance npq = (np) q 1 np EXAMPLE 17.6
The mean of Binomials distribution is 20 and standard
deviation is 4. Find the parameters of the distribution.
Page 218 Bionomial Distribution chapter 17

Sol : Click : www.nodia.study/lema/qm111

Click : www.nodia.study/lema/qm106 EXAMPLE 17.12

Suppose Amar and Bharat are two equally strong table
tennis players. Which of the following two events is more
EXAMPLE 17.7 probable :
If X is a binomially distributed random variable with (i) Amar beats Bharat exactly in 3 games out of 4 or
E (X) = 2 and var (X) = 4 . Find P (X = 5). (ii) Amar beats Bharat exactly in 5 games out of 8?
3


Sol :

Sol :

Click : www.nodia.study/lema/qm107 Click : www.nodia.study/lema/qm112

EXAMPLE 17.8 EXAMPLE 17.13

If the average rain falls on 9 days in every thirty days, find A pair of dice is thrown 4 times. If getting a doublet is
the probability that rain will fall on atleast two days of a considered a success. Find the probability of 2 successes.
given week.


Sol : `


Sol :

Click : www.nodia.study/lema/qm113
Click : www.nodia.study/lema/qm108
EXAMPLE 17.14
EXAMPLE 17.9 Find the parameters of a binomial distribution for which
What is the probability of guessing correctly atleast six of mean is 4 and variance is 3.
the ten answers in a TRUE/FALSE objective test?


Sol :


Sol :

Click : www.nodia.study/lema/qm114
Click : www.nodia.study/lema/qm109
EXAMPLE 17.15
EXAMPLE 17.10 Is the following data valid for a binomial distribution?
If the chance of running a bus service according to schedule = 3 , S.D. = 5
Mean
is 0.8, calculate the probability on a day schedule with 10
services :

Sol :
(i) exactly one is late

Click : www.nodia.study/lema/qm115
(ii) atleast one is late


Sol :

EXAMPLE 17.16
Click : www.nodia.study/lema/qm110 Four candidates A, B , C and D are contesting an
election. The probabilities that a voter will vote for A,
B , C and D respectively are 0.3, 0.1, 0.2 and 0.4. What
EXAMPLE 17.11 is the probability that out of 4 voters, three or more will
The sum and product of the mean and variance of a vote for B ?
binomial distribution are 24 and 128. Find the distribution.


Sol :


Sol :
chapter 17 Bionomial Distribution Page 219

Click : www.nodia.study/lema/qm116 one is correct. If a student guesses on each question, what

is the probability that the student will pass the test?


Sol :
EXAMPLE 17.17
The probability is 0.6 that a new small appliance will
show a profit in its first year of production; 0.3 that it
will show a loss; and 0.1 that it will break even. Find
Click : www.nodia.study/lema/qm120
the probability that in a random sample of 5 new small
appliances produced last year : EXAMPLE 17.21
(i) no more than 3 will show a profit In a shipment of 25 hard disks, six are defective. If five of
(ii) at least 3 will show a profit the disks are selected at random, what is the probability
(iii) exactly 3 will show a profit that


Sol : (i) exactly one is defective?
(ii) at least one is defective?


Sol :
Click : www.nodia.study/lema/qm117
Click : www.nodia.study/lema/qm121

EXAMPLE 17.18 EXAMPLE 17.22

Suppose that airplane engines operate independently in Ratio of probability of 3 successes in 5 independent trials
flight and fail with probability q = 15 . Assuming that a to the probability of 2 successes in 5 independent trials is
1
plane makes a safe flight if at least one-half of its engines 4 . What is the probability of 4 success in 6 independent

run, determine whether a 4-engine plane or a 2-engine trials?

plane has the highest probability for a successful flight.

Sol :


Sol :

Click : www.nodia.study/lema/qm122
Click : www.nodia.study/lema/qm118
EXAMPLE 17.23
EXAMPLE 17.19 For a binomial distribution, the mean is 5 and standard
Multiple choice test consists of eight questions and three deviation is 2. Obtain the p.m.f. of the distribution.
answers to each question (of which only one is correct). If Hence, find the probability of a non-zero value of this
a student answers each question by rolling a balanced dice distribution.
and marking the first answer if he gets 1 or 2, the second

Sol :
answer if he gets 3 or 4 and the third answer if he gets 5
or 6, what is the probability that he will get exactly four
correct answers? Click : www.nodia.study/lema/qm123


Sol :
EXAMPLE 17.24

Click : www.nodia.study/lema/qm119 One-fourth of the female students entering Ramjas

College are out-of-state students. If the students are
assigned at random to the dormitories, 3 to a room, what
EXAMPLE 17.20 is the probability that in one room at most 2 of the 3 room
A test consists of five questions and to pass the test, a mates are out-of-state students?
student has to answer at least four questions correctly,

Sol :
Each question has three possible answers, of which only
Page 220 Bionomial Distribution chapter 17

Click : www.nodia.study/lema/qm124 EXAMPLE 17.29

The probability of a man hitting a target is 14 . How many
times he fire so that the probability of his hitting the
EXAMPLE 17.25 target at least once is greater than 23 ?
A hotel has 5 rooms for rental and they are always

Sol :
occupied. The owner has 3 television sets available on
the rental of < 100 per day per set. Only one set will
be supplied to one occupant, if he wants it. Probability Click : www.nodia.study/lema/qm129
that an occupant will want to hire a set is 35 . Find the
probability that the hotel owner will get < 300 per day by
renting the sets. EXAMPLE 17.30


Sol : How many tosses of a coin are needed, so that the
probability of getting at least head is 0.875?


Sol :
Click : www.nodia.study/lema/qm125
Click : www.nodia.study/lema/qm130
EXAMPLE 17.26
A random variable X is binomially distributed with mean
4 and standard deviation 2.4 . Find the probability that EXAMPLE 17.31
more than half the trials are successes. A company installs new air conditioners and found that
for 20% of all installations, a return visit is needed to


Sol :
explain the use of the remote control. Six installations
were made in a particular week. What is the probability
Click : www.nodia.study/lema/qm126 that a return visit will be needed in at least two of these
cases?


Sol :
EXAMPLE 17.27
It is observed that 80% of television viewers watch “Aap
ki Adalat” programme. What is the probability that at Click : www.nodia.study/lema/qm131
least 80% of the viewers in a random sample of five watch
this programme?
EXAMPLE 17.32


Sol :
In 64 sets of 10 tosses of a coin, in how many cases one can
expect 6 heads and 4 tails.
Click : www.nodia.study/lema/qm127

Sol :

EXAMPLE 17.28 Click : www.nodia.study/lema/qm132

In a binomial distribution consisting of 5 independent
trials, probabilities of 1 and 2 success are 0.4096 and
0.2048, respectively. Find the parameter p of the EXAMPLE 17.33
distribution. Eight coins are thrown simultaneously. Find the chance
of obtaining


Sol :
(i) At least 6 heads (ii) No heads
(ii) All heads
Click : www.nodia.study/lema/qm128

Sol :

Click : www.nodia.study/lema/qm133
chapter 17 Bionomial Distribution Page 221

EXAMPLE 17.34
What is probability of getting 9 exactly twice in 3 throws
Click : www.nodia.study/lema/qm138
with a pair of fair dice.


Sol : EXAMPLE 17.39
Six dice are thrown together and the appearing of 4 on a
die is counted as a success. Find the probability that there
Click : www.nodia.study/lema/qm134 will be 4 successes.


Sol :

EXAMPLE 17.35
The normal rate of infection of a certain disease in human
is known to be 75 % In on experiment with 6 human
Click : www.nodia.study/lema/qm139
injected with a new vaccine, it was observed that none of
the human caught infection. Find the probability of the EXAMPLE 17.40
observed result if the vaccine was ineffective. Suppose that half of the population is non-vegetarian so


Sol : that the chance of an individual being a vegetarian is 21
and assuming that 100 investigators take a sample of 10
individuals to see whether they are vegetarians, how many
Click : www.nodia.study/lema/qm135 investigators would you expect to report that 3 people or
less were vegetarians?


Sol :
EXAMPLE 17.36
The probability that a bomb dropped from a plane will
strike the target is 51 . If 6 bombs are dropped, find the
probability that at least two will strike the target.
Click : www.nodia.study/lema/qm140


Sol :
EXAMPLE 17.41
Six dice are thrown 729 times. How many time do you
Click : www.nodia.study/lema/qm136 expect at least three dice to show a five or six?


Sol :

EXAMPLE 17.37
It is known that screws produced by a certain company
will be defective with probability 0.02 independently of
Click : www.nodia.study/lema/qm141
each other. The company sells the screws in packages of 10
and offers a money back guarantee that at most 1 of the EXAMPLE 17.42
10 screws is defective. What preparation of package sold A traffic control engineer reports that 75% of the vehicles
must the company replace? passing through a check point are from within the state.


Sol : What is probability that fewer than 4 of the next 9
vehicles are from out of state?


Sol :
Click : www.nodia.study/lema/qm137

EXAMPLE 17.38
Click : www.nodia.study/lema/qm142
Out of 736 families with 5 children each, how many
families would you expect to have EXAMPLE 17.43
(i) 5 boys (ii) At least 1 boy Find the parameters of Binomial distribution whose mean


Sol : is 12 and variance 4.


Sol :
Page 222 Bionomial Distribution chapter 17

Click : www.nodia.study/lema/qm143

Sol :

EXAMPLE 17.44 Click : www.nodia.study/lema/qm148

The probability that a patient recovers from a delicate
heart operation is 0.9. What is the probability that exactly
5 of the next 7 patients having this operation survive? EXAMPLE 17.49
A company purchases a lot of a certain kind of electronic


Sol :
device. A method is used that rejects a lot if 2 or more
defective units are found in a random sample of 100 units.

Click : www.nodia.study/lema/qm144
(i) What is the mean number of defective units found in
a sample of 100 units if the lot is 1 % defective?
(ii) What is variance?
EXAMPLE 17.45

Sol :
A safety engineer claims that only 40 % of all workers
wear safety helmets when they eat lunch at the workplace.
Assuming that his claim is right. Find the probability Click : www.nodia.study/lema/qm149
that 4 of 6 workers randomly chosen will be wearing their
helmets while having lunch at the workplace.
EXAMPLE 17.50


Sol :
Homeland security and missile defence technology make
it paramount that we become able to detect incoming

Click : www.nodia.study/lema/qm145
missiles. To make the defence successful, multiple radars are
required. Suppose it is determined that three independent
screens are to be operated and the probability that any
EXAMPLE 17.46 one screen will detect on incoming missile is 0.8.
Twelve people are given two identical speakers to listen (i) What is the probability that the missile will be
for differences, if any. Suppose that these people answered detected by only one screen.
by guessing only. Find the probability that three people (ii) What is probability that incoming missile will not be
claim to have heard a difference between the two speakers. detected by screens.

Sol :

Sol :

Click : www.nodia.study/lema/qm146 Click : www.nodia.study/lema/qm150

EXAMPLE 17.47 EXAMPLE 17.51

If 10 % of the pens manufactured by the company are A perfect cubical die is thrown a large number of times in
defective, find the probability that a box of 12 pens contain sets of 8 . The occurrence of 5 or 6 is called a success. In
(i) No defective pen what proportion of the sets you expect three successes ?
(ii) At least two defective pen.

Sol :


Sol :

Click : www.nodia.study/lema/qm151
Click : www.nodia.study/lema/qm147
EXAMPLE 17.52
EXAMPLE 17.48 An electronics firm claims that the proportion of defective
The sum and product of the mean and variance of a units of a certain process is 5 %. A buyer has a standard
Binomial distribution are 16 and 60 respectively. Find procedure of inspecting 15 units selected randomly from
the parameters of the Binomial distribution. a lot on a particular occasion, the buyer found 5 item
chapter 17 Bionomial Distribution Page 223

defective. What is the probability of this occurrence, given probability of approval was, on average, above 0.85.
that the claim of 5 % defective is correct. (i) Sachin wants to know the average and standard


Sol : deviation of the number of loans approved per
year.
(ii) Suppose bank actually received 2654 loan
Click : www.nodia.study/lema/qm152 applications per year with an approval probability
of 0.82. What are the mean and standard deviation
now?
EXAMPLE 17.53 Ans : (ii) 19.295, (ii) 19.792
The chance that one of the 8 telephone lines is busy at
any instant is 0.2, what is the probability that at a certain
instant 4 lines are busy?
3. Suppose 10 percent of new scooters will require


Sol : warranty service within the first month of its sale.
A scooter manufacturing company sells 1000 scooters
in a month, find the mean and standard deviation of
Click : www.nodia.study/lema/qm153 scooters that require warranty service.
Ans : 10 scooters (approx.)
EXAMPLE 17.54
A man takes a step forward with probability 0.4 and
backward with probability 0.6. Find the probability that 4. The incidence of occupational disease in an industry
at the end of eleven steps he is one step away from the is such that the workers have 20 percent chance of
starting point. suffering from it. What is the probability that out


Sol : of six workers 4 or more will come in contact of the
disease?
Ans : 0.01695
Click : www.nodia.study/lema/qm154

5. A multiple-choice test contains 8 questions with 3

answers to each question (of which only one is correct).
A student answers each question by rolling a balanced
E X ERCISE 17.1 dice and checking the first answer if he gets 1 or 2, the
second answer if he gets 3 or 4, and the third answer if
1. A brokerage survey reports that 30 percent of he gets 5 or 6. To get a distinction, the student must
individual investors have used a discount broker, secure at least 75 percent correct answers. If there is
i.e. one which does not charge the full commission. no negative marking, what is the probability that the
In a random sample of 9 individuals, what is the student secures a distinction?
probability that Ans : 0.0196
(i) exactly two of the sampled individuals have used
a discount broker ?
(ii) not more than three have used a discount broker
(iii) at least three of them have used a discount broker 6. The normal rate of infection of a certain disease in
Ans : (i) 0.2656, (ii) 0.731, (iii) 0.537 animals is known to be 25 percent. In an experiment
with 6 animals injected with a new vaccine it was
observed that none of the animals caught the infection.
Calculate the probability of the observed result.
2. Sachin applies for a personal loan of ` 150000 from Ans : 729
a nationalized bank to repair his house. The bank 4096
informed him that over the years, it has received
about 2920 loan applications per year and that the
Page 224 Bionomial Distribution chapter 17

7. The mean of a binomial distribution is 40 and standard

deviation 6. Calculate n , p and q .
Ans : n = 400 , p = 0.1, q = 0.9

8. The probability that an evening college student will

graduate is 0.4. Determine the probability that out of
5 students
(i) none,
(ii) one, and
(iii) at least one will graduate.
Ans : (a) 0.0777, (b) 0.2592, (c) 0.9223

9. A multi-choice test consists of 8 questions with 3

answers to each question (of which only one is correct).
A student answers each question by rolling a balanced
dice and selects the first answer if he gets 1 or 2, the
second if he gets 3 or 4, and the third answer if he
gets 5 or 6. To get a distribution, the student must
secure at least 75 percent correct answers. If there is
no negative marking, what is the probability that the
student secures a distinction?
Ans : 0.019

10. A supposed coffee connoisseur claims that he can

distinguish between a cup of instant coffee and a cup
of percolator coffee 75 percent of the time. It is agreed
that his claim will be accepted if he correctly identifies
at least 5 out of 6 cups. Find
(i) his chance of having the claim accepted if he is in
fact only guessing, and
(ii) his chance of having the claim rejected when he
does have the ability he claims.
Ans : (i) 0.466, (ii) 0.534
chapter 18 Piosson Distibtuion Page 225

CHAPTER 18

Piosson Distibtuion

18.1 intoduction 3. The rate of occurrence of events is constant and not

Poisson distribution was derived in 1837 by a French based on time
Mathematician Simeon D. Poison. If n is large, the 4. The probability of an event is proportional to the
evaluation of the binomial probabilities can involve length of the period of time
complex computations, in such a case, a simple The Poisson distribution can also be used for the
approximation to the binomial probabilities could be use. number of events in other specified intervals such as
Such approximation of binomial when n is large and p is distance, area or volume.
close to zero is called the Poisson distribution. Definition
Let us consider the car sales of a car dealer showroom A random variable X is said to follow a Poission
in a Delhi, on a given day. Do you think that the number of distribution with parameter λ if it assumes only non-
cars sales on a given day will make for a random variable? negative values and its probability mass function is given
Assuming that each car sale is an independent event, by
meaning that sale of one car sale gives no information −λ x

about when the next sale will happen. And the probability P (X = x) = e λ , x = 0, 1, 2 .....; λ 2 0
x!
of one car sale in a given length of time, does not change
over time. Theoretically, the rate at which the car sales where x is the number of occurrences of the event such
are occurring is not changing through time. Therefore, we that x = 0, 1, 2, 3
can conclude that the events defined as car sales in such a Derivation of Mean and variance of Poission distribution
case are occurring randomly and independently. Based on 3
these conditions, a random variable X , representing the Mean E (X) = / xp (x, λ)
x=0
number of events in a given length of time has a Poisson −λ x
= / xe λ
3
distribution.
x=0 x!

= λe− λ ) / e λ o3
3 x−1

x = 1 (x − 1) !

= λe− λ c1 + λ + λ + .....m
2

2!
= λe− λ e λ = λ

Variance (X) = E (X 2) − [E (X)] 2
3
Here E (X 2) = / x 2p (x, λ)
x=0

18.2 Poisson distribution = / x 2 p (x, λ)

3

x=0
A discrete probability distribution that expresses the
= / "x (x − 1) + x , p (x, λ)
3
probability of a given number of events occurring over a
x=0
fixed period of time or space is called a Poisson distribution
= / "x (x − 1) + x , e λ
3 −λ x

if:
x=0 x!
1 The events occur with a known constant mean rate x x
= e− λ / x (x − 1) λ + / xe− λ λ
3 3
2. The events are independent of the time from the
x=0 x! x = 0 x!
occurrence of the previous event. x−2
= λ2 e− λ / λ
3
+λ
x=2 (x − 2) !
Page 226 Piosson Distibtuion chapter 18

= λ2 e− λ e λ + λ = λ2 + λ

Click : www.nodia.study/lema/rm102
Variance (X) = E (X 2) − [E (X)] 2
= λ2 + λ − (λ) 2 = λ
EXAMPLE 18.3
An insurance company has discovered that only about
0.1 per cent of the population is involved in a certain
18.3 As a limiting case of Bionomial type of accident each year. If its 10,000 policy holders
were randomly selected from the population, what is the
Poisson distribution is a limiting case of binomial
probability that not more than 5 of its clients are involved
distribution under the following conditions :
in such an accident next year? (e−10 = 0.00045)
(i) n , the number of trials is indefinitely large i.e.
n"3

Sol :
(ii) p , the constant probability of success in each trial is
very small, i.e. p " 0
(iii) np = λ is finite. Thus p = λ and q = 1 − b λ l where
Click : www.nodia.study/lema/rm103
n n
λ is a positive real number.

EXAMPLE 18.4
If the probability that an individual suffers a bad reaction
18.4 Application of poisson distribution from injection of a given serum is 0.001, determines the
probability that out of 2,000 individuals
Poisson distribution occurs when there are events which
(a) exactly 3 and
do not occur as a definite number on trials but an events
(b) more than 2 individuals will suffer a bad reaction.
occurs rarely and the following examples may be analysed:
(i) Number of bacteria in one cubic centimeter.

Sol :
(ii) Number of printing mistakes per page in a text book
(iii) The number of alpha particles emitted by a
radioactive substance in a fraction of a second. Click : www.nodia.study/lema/rm104
(iv) Number of road accidents occurring at a particular
interval of time per day.
Number of lightnings per second.
EXAMPLE 18.5
When counting red blood cells, a square grid is used, over
which a drop of blood is evenly distributed. Under the
EXAMPLE 18.1 microscope an average of 8 erythrocytes are observed
In a Poisson distribution the first probability term is per single square. What is the probability that exactly 5
0.2725. Find the next probability term. erythrocytes are found in one square?


Sol :

Sol :

Click : www.nodia.study/lema/rm101 Click : www.nodia.study/lema/rm105

EXAMPLE 18.2 EXAMPLE 18.6

In a book of 520 pages, 390 typo-graphical errors occur. Assuming one in 80 births is a case of twins, calculate the
Assuming Poisson law for the number of errors per page, probability of 2 or more sets of twins on a day when 30
find the probability that a random sample of 5 pages will births occur.
contain no error.


Sol :


Sol :

Click : www.nodia.study/lema/rm106
chapter 18 Piosson Distibtuion Page 227

EXAMPLE 18.7

Sol :

If x is a Poisson variate and P ^0 h = P ^1 h = k , prove that
k = e −1 .


Sol : Click : www.nodia.study/lema/rm111

Click : www.nodia.study/lema/rm107 EXAMPLE 18.12

If the expectation of a Poisson variable is 1, then find
P ^X 2 1h .
EXAMPLE 18.8

Sol :
If a Poisson distribution has P^X = 1h = P^X = 2h , then
prove that P ^1 h = 2e −2


Sol : Click : www.nodia.study/lema/rm112

Click : www.nodia.study/lema/rm108 EXAMPLE 18.13

An oil exploration firm finds that 5% of the test wells it
drills, yield a deposit of natural gas. If the firm drills 6
EXAMPLE 18.9 wells, what is the probability that :
Between the hours 2 pm and 4 pm, the average number (i) exactly 2 wells?
of phone calls per minute coming into the switch board of (ii) at least one well yield gas?
a company is 2.35. Find the probability that during one

Sol :
particular minute, there will be at most two phone calls
given e−2.35 = 0.095374 .


Sol : Click : www.nodia.study/lema/rm113

Click : www.nodia.study/lema/rm109 EXAMPLE 18.14

One hundred car radios are inspected as they come off
the production line and number of defects per radio set is
EXAMPLE 18.10 recorded below.
For a Poisson variate X , calculate P ^X 2 0h , if it is
No. of Defects 0 1 2 3
known that
4P ^X = 4h = 5P ^X = 5h
No. of Radio sets 79 18 2 1

Estimate the average number of defects per ratio and


Sol :
expected frequencies of 0, 1, 2 and 3 defects, assuming
Poisson distribution.

Click : www.nodia.study/lema/rm110

Sol :

EXAMPLE 18.11
Click : www.nodia.study/lema/rm114
Assuming that on an average 1% of the output in a factory
making certain part of an article are defective and that
200 units are in a package, find the probabilities that EXAMPLE 18.15
(i) At most 2 defectives Air corporation having had just 2 aircrashes during
(ii) At least 2 defectives may be found in the package. its first fifty years of existence wants to make the next
^e−2 = 0.1353h decade “aircrash-free”. Assuming that the same trend
will continue, what is the probability of the corporation
Page 228 Piosson Distibtuion chapter 18

meeting the target? EXAMPLE 18.20

RGV Electrical India Pvt Ltd make electrical transformer.


Sol :
Past sale records indicate a mean of daily sales for a
certain type of transformer is equal to 5 units. Demand

Click : www.nodia.study/lema/rm115 for this item is distributed to a poison distribution. If

company is having only 3 transformers in stock, what
is the probability that the demand will be greater than
stock? ^e−5 = 0.00674h
EXAMPLE 18.16


Sol :
A radioactive source emits on an average 2.5 particles per
second. Calculate the probability that 2 or more particles
will be emitted in an interval of 4 seconds.
Click : www.nodia.study/lema/rm120


Sol :

Click : www.nodia.study/lema/rm116 EXAMPLE 18.21

A car hire firm has two cars, which it hires out day
by day. the number of demands for a car on each day
is distributed as a Poisson distribution with mean 1.5.
EXAMPLE 18.17 Calculate the proportion of days on which neither car is
The number of deaths per day in a city due to road used and the proportion of days on which some demand is
accidents and due to other causes independently follows refused. ^e−1.5 = 0.2231h .
Poisson distribution with parameter 2 and 6 respectively.


Sol :
Find the probability that the total number of death on a
particular day is 2 or fewer.


Sol : Click : www.nodia.study/lema/rm121

Click : www.nodia.study/lema/rm117 EXAMPLE 18.22

A manufacturer of pins knows that on an average 5% of
his product is defective. He sells pins in boxes of 100 and
EXAMPLE 18.18 guarantees that not more that 4 pins will be defective.
If X is a Poisson variable such that What is probability that a box will meet the guaranteed
P ^X = 2h = 9P ^X = 4h + 90P ^X = 6h quality? (e−5 = 0.0067 )
find the mean and variance of X .

Sol :


Sol :

Click : www.nodia.study/lema/rm122
Click : www.nodia.study/lema/rm118
EXAMPLE 18.23
The number of accidents in a year attributed to taxi
EXAMPLE 18.19
driver in a city follows Poisson distribution with mean 3.
A discrete random variate x follows Poisson law. Find
P ^X 2 2h and P ^X is at most 2h , if it is given that
Out of 1,000 taxi drivers, find approximately the number
E ^X h = 2.5 and e−2.5 = 0.0821.
of drivers with
(i) no accident in a year and


Sol : (ii) more than 3 accidents in a year (given e−1 = 0.3670 ,
e−2 = 0.1353 , e−3 = 0.0498 ).

Click : www.nodia.study/lema/rm119

Sol :

chapter 18 Piosson Distibtuion Page 229

Click : www.nodia.study/lema/rm123 Click : www.nodia.study/lema/rm127

EXAMPLE 18.24 EXAMPLE 18.28

If 5% students appearing in an examination fail, using Show that Poisson distribution is a limiting case of
Poisson distribution, find the probability that out of 100 binomial distribution.
students appearing in the examination :

Sol :
(i) none failed
(ii) 5 students failed
(iii) maximum 3 failed or atmost 3 failed
Click : www.nodia.study/lema/rm128


Sol :

Click : www.nodia.study/lema/rm124 EXAMPLE 18.29

Sol :

EXAMPLE 18.25
A firm produces articles out of which 0.1 % are usually
Click : www.nodia.study/lema/rm129
defective. They pack them in box containing 500 articles.
If a wholesaler purchases 200 such cases. Find
(i) How many boxes are expected to be free of defective EXAMPLE 18.30
items? A book contains 100 misprints distributed randomly
(ii) How many are expected to have one defective each? throughout its 100 pages. What is the probability that a
page observed at random contains at least two misprints.


Sol :
(Using Poisson distribution).


Sol :
Click : www.nodia.study/lema/rm125
Click : www.nodia.study/lema/rm130

EXAMPLE 18.31
EXAMPLE 18.26
Messages arrive at a switch board in a Poisson manner at
In a Poisson distribution, the probability P _ x i for x = 0 an average rate of six per hour. Find the probability for
is 10 percent. Find the mean of the distribution. each of the following events.


Sol : (i) At least three messages arrive within one hour.
(ii) Exactly two messages arrive with in one hour.
(iii) No message arrives with in one hour.
Click : www.nodia.study/lema/rm126

Sol :

EXAMPLE 18.27 Click : www.nodia.study/lema/rm131

It is 1 in 1000 that a birth is a case of twins. If there
are 100 births in town in 1 day, then what is probability
that two or more pairs of twins are born? (Using Poisson EXAMPLE 18.32
distribution). A source of liquid is known to contain bacteria with the


Sol : mean number of bacteria per cubic centimeter equal to 3.
Ten 1 cc test tubes are filled with liquid. Assuming that
Page 230 Piosson Distibtuion chapter 18

Poisson distribution is applicable, find the probability come in any minute.

that all ten test tubes will show growth, i.e. contain at

Sol :
least one bacteria each.


Sol :
Click : www.nodia.study/lema/rm136
Click : www.nodia.study/lema/rm132
EXAMPLE 18.37
If the probability of a bad reaction from a certain injection
EXAMPLE 18.33 is 0.001, determine the chance that out of 2000 individuals
In a certain Poisson frequency distribution, the frequency more than two will get a bad reaction.
corresponding to 2 successes is half the frequency

Sol :
corresponding to 3 successes. Find its mean and standard
deviation.


Sol : Click : www.nodia.study/lema/rm137

Click : www.nodia.study/lema/rm133 EXAMPLE 18.38

One fifth percent of the blades produced by a blade
manufacturing factory turn out to be defective. The blades
EXAMPLE 18.34 are supplied in packets of 10. Use Poisson distribution
On average a certain intersection result in 3 traffic to calculate the approximate number of packets
accidents per month. What is the probability that for any containing no defective, one defective and two defective
given month at this intersection. blades respectively in a consignment of 1,00,000 packets
(i) exactly 5 accidents will occur? (e−0.02 = .9802).
(ii) Less than 3 accidents will occur?

Sol :
(iii) At least 2 accidents will occur?


Sol :
Click : www.nodia.study/lema/rm138
Click : www.nodia.study/lema/rm134
EXAMPLE 18.39
The Quality Control Manager finds that the average
EXAMPLE 18.35 number of defective parts coming out in a production
Suppose on an average 1 house in 1000 in a certain district cycle is 5. Find the probability that :
has a fire during a year. If there are 2000 houses in that (i) 5 or less number of parts are defective in a production
district, what is the probability that exactly five houses cycle.
will have a fire during the year? (ii) Exactly 5 parts are defective in a production cycle.


Sol : (iii) More than 4 parts are defective in a production cycle.


Sol :

Click : www.nodia.study/lema/rm135
Click : www.nodia.study/lema/rm139
EXAMPLE 18.36
Service calls come to a maintenance centre according to EXAMPLE 18.40
a Poisson process and on the average, 2.7 calls come per HDFC Bank Manager found that 3 customers arrive on an
minute. Find the probability that no more then 4 calls the average in every 5 minutes in a savings bank counter.
chapter 18 Piosson Distibtuion Page 231

Assume, that the customers arrive at random : Junction. On any day 60 trains arrive at the junction and
(i) Find the probability that 5 customers arrive in a the station master claims that not more than 5% of the
5-minutes interval. trains arrive late at Jaipur Junction. Is his claim justified?
(ii) The Manager wants to add one more counter for

Sol :
SB customer if the probability that more than 5
customers arrive in a 5-minute interval exceeds 0.2.
Will the Manager add one more counter?
(iii) Do subdivisions (i) and (ii) for a 10-minute interval.
Click : www.nodia.study/lema/rm143


Sol :
EXAMPLE 18.44

Click : www.nodia.study/lema/rm140 On average, five birds hit the Staute of Unity and are
killed each week. RK Agrawal, an official of the managing
authority, has requested that government allocate funds
for equipment to scare birds away from the monument.
EXAMPLE 18.41 Government subcommittee has replied that funds cannot
A data entry operator is entrusted with the job of entering be allocated unless the probability of more than three
the marks provided by examiners in the computer system. birds being killed in week exceeds 0.7. Will the funds be
The probability of error in data entry is only 0.001. allocated?
A sample of 1000 marks is drawn for checking by the

Sol :
examination centre. Find the probability that :
(i) There are only 3 errors.
(ii) There are no errors.
(iii) There number of errors is 4 or more.
Click : www.nodia.study/lema/rm144


Sol :
EXAMPLE 18.45

Click : www.nodia.study/lema/rm141 Casio Electronics has developed a new calculator that

performs a series of functions not yet performed by any
other calculator. The marketing department is planning
to demonstrate this calculator to a group of potential
EXAMPLE 18.42 customers, but it is worried about some initial problems,
A large private sector bank has given a toll-free phone which have resulted in 4 percent of the new calculators
number which is available to the customers to register their developing mathematical inconsistencies. The marketing
complaints regarding the service provided by its branches. VP is planning on randomly selecting a group of calculators
It is found that 48 calls are received by the toll-free phone for this demonstration and is worried about the chances of
in one hour on the average. Assuming the number of calls selecting a calculator that could start malfunctioning. He
follow a Poisson distribution, find the probability that : believes that whether or not a calculator malfunctions is a
(i) no calls will be received in a 1- minute period. Bernoulli process, and he is convinced that the probability
(ii) 2 or more calls will be received in a 1-minute period. of a malfunction is really about 0.04.
(iii) no call will be received in a 2-minute period. (i) Assuming that the VP selects exactly 150 calculators
(iv) 4 or more calls will be received in a 2-minute period. to use in the demonstration, and using the Poisson


Sol : ] distribution as an approximation of the binomial,
what is the chance of getting at least three calculators
that malfunction?
Click : www.nodia.study/lema/rm142 (ii) No calculators malfunctioning?


Sol :

EXAMPLE 18.43
The station master of Jaipur Junction knows from his past Click : www.nodia.study/lema/rm145
experience that only 4% of the trains arrive late at Jaipur
Page 232 Piosson Distibtuion chapter 18

EXAMPLE 18.46 Ans : 0.9598

Nitin Yadav, production supervisor for the JBC Company’s
Faridabad, is worried about an elderly employee’s ability
to keep up the minimum work pace. In addition to the
normal daily breaks, this employee stops for short rest
4. A manufacturer who produces medicine bottles, finds
periods an average of 5 times per hour. The rest period is
that 0.1 percent of the bottles are defective. The
a fairly consistent 2 minutes each time. Nitin Yadav has
bottles are packed in boxes containing 500 bottles. A
decided that if the probability of the employee resting for
drug manufacturer buys 100 boxes from the producer
10 minutes (not including normal breaks) or more per
of bottles. Using Poisson distribution, find how many
hour is greater than 0.5, he will move the employee to a
boxes will contain:
different job. Should he do so?
(i) no defectives


Sol : (ii) at least two defectives
Ans : (i) 0.6065, (ii) 10 (approx.)

Click : www.nodia.study/lema/rm146
5. In a town 10 accidents took place in a span of 50
days. Assuming that the number of accidents per day
follows the Poisson distribution, find the probability
E X ERCISE 18.1 that there will be three or more accidents in a day.
Ans : 0.002
1. What probability model is appropriate to describe
a situation where 100 misprints are distributed
randomly throughout the 100 pages of a book? For this
model, what is the probability that a page observed at
6. Find the probability that at most 5 defective bolts
random will contain at least three misprints?
will be found in a box of 200 bolts if it is known that 2
Ans : 0.0802
percent of such bolts are expected to be defective [you
may take the distribution to be Poisson; [e−4 = 0.0183
].
Ans : 0.7844
2. A new automated production process has had an
average of 1.5 breakdowns per day. Because of the
cost associated with a breakdown, management is
concerned about the possibility of having three or more
7. It is given that 30 percent of electric bulbs
breakdowns during a day. Assume that breakdowns
manufactured by a company are defective. Find the
occur randomly, that the probability of a breakdown
probability that a sample of 100 bulbs will contain (i)
is the same for any two time intervals of equal length,
no defective, and (ii) exactly one defective.
and that breakdowns in one period are independent of
Ans : 0.15
breakdowns in other periods. What is the probability
of having three or more breakdowns during a day?
Ans : 0.1912

8. A factory produces blades in packets of 10. The

probability of a blade to be defective is 0.2 percent.
Find the number of packets having two defective
3. Suppose a life insurance company insures the lives of
blades in a consignment of 10000 packets.
5000 persons aged 42. If studies show the probability
Ans : 2
that any 42-years old person will die in a given year
to be 0.001, find the probability that the company will
have to pay at least two claims during a given year.
chapter 18 Piosson Distibtuion Page 233

9. A firm uses a large fleet of delivery vehicles. Their

record over a period of time (during which fleet size
utilization may be assumed to have remained suitably
constant) shows that the average number of vehicles
unserviceable per day is 3. Estimate the probability
on a given day when
(i) all vehicles will be serviceable.
(ii) more than 2 vehicles will be unserviceable.
Ans : (i) 0.0497, (ii) 0.5776

10. In the past 2 months, on an average, only 3 percent

of all cheques sent for clearance by a Group Housing
Welfare Society (GHWS) have bounced. This month,
the GHWS received 200 cheques. What is the
probability that exactly ten of these cheques bounced?
Ans : 0.0413

Applied Mathematics
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For Teachers
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Page 234 Normal Distributions chapter 19

CHAPTER 19

Normal Distributions

19.1 Introduction bellshaped with one peak point.

The binomial and Poisson distributions discussed in The normal distribution is used in the cases where
the previous chapters are the most useful theoretical we need to make inferences by taking random samples;
distributions for discrete variables. In order to have and distribution of random variable is not known. This
mathematical distributions suitable for dealing with type of distribution is applied to fit the actual observed
quantities whose magnitudes vary continuously like frequency distribution on many phenomena like weights
weight, heights of individual, a continuous distribution and heights.
is needed. Normal distribution is one of the most widely
used continuous distribution.
Normal distribution is the most important and
19.3 Properties of Normal distribution
powerful of all the distribution in statistics. It was first
introduced by De Moivre in 1733 in the development of The normal probability curve with mean µ and standard
probability. Laplace (1749-1827) and Gauss (1827-1855) deviation σ has the following properties :
were also associated with the development of Normal (ii) Mean, median and mode of the distribution are
distribution. exactly same.
(i) The curve is bell- shaped and symmetrical about the
line x = µ
(vi) The curve of a normal distribution has a single peak
i.e. it is a unimodal.
(iii) x - axis is an asymptote to the curve. (tails of the
curve never touches the horizontal (x) axis).
(iv) No portion of the curve lies below the x -axis as f (x)
being the probability function can never be negative.
(vii) As x increases numerically, f (x) decreases rapidly,
19.2 Definition the maximum probability occurring at the point
x = µ.
A random variable X is said follow a normal distribution
with parameters mean µ and σ2 , if its probability density (viii) The total area under the normal curve is equal to
function is given by unity and the percentage distribution of area under
the normal curve is given below
) 2 σ 3
1 exp − 1 d x − µ n (1)
2
f (x) = (a) About 68.27% of the area falls between µ − σ
σ 2π
and µ + σ ,
where f (x) > 0, 6x ! (− 3, 3), µ ! (- 3, 3)
When a random variable can take on any value P (µ − σ 1 X 1 µ + σ) = 0.6826
within a given range where the probability distribution
(b) About 95.5% of the area falls between µ − 2σ
is continuous, it is called a normal distribution or
and µ + 2σ ,
Gaussian distribution. A random variable with a Gaussian
distribution is said to be normally distributed, and is P (µ − 2σ 1 X 1 µ + 2σ) = 0.9544
called a normal deviate.
(c) About 99.7% of the area falls between µ − 3σ
In the normal distribution function given by
and µ + 3σ ,
equation (1), the curve known as probability curve is
chapter 19 Normal Distributions Page 235

P (µ − 3σ 1 X 1 µ + 3σ) = 0.9973 EXAMPLE 19.2

Given that mean of a normal variate X is 30 and standard
deviation is 6, then find:
(i) Find the z -score of data point 48
19.4 Standard Normal Distribution (ii) Find the z -score of data point 30
The standard normal distribution, also called the z (iii) Find the z -score of data point 24
-distribution, is a special normal distribution where the (iv) Data point if its z -score is 2
mean is 0 and the standard deviation is 1. Any normal (v) Data point if its z -score is - 2
distribution can be standardized by converting its values

Sol :
into z -scores.
z score

z score z =
x−µ Click : www.nodia.study/lema/sm102
σ
This z -scores tell you how many standard deviations
from the mean each value lies. Converting a normal EXAMPLE 19.3
distribution into a z-distribution allows to calculate the In a CBSE school exam, scores of 300 student of class XII
probability of certain values occurring and to compare are recorded at the end of the session. The average score
different data sets. for the batch was 700 and the standard deviation was
calculated to be 180.
19.4.1 Properties of Standard Normal distribution
(i) Taniya scored 800 marks in total out of 1000. Find
(i) The area under the standard normal curve is equal to out how has Taniya scored compared to his batch
1. mates in the whole district.
(ii) 68.26% of the area under the standard normal curve (ii) Lavanya scored 420 marks in the same batch. What
lies between z =− 1 and Z = 1 can you say about her performance as compared to
(iii) 95.44% of the area lies between Z =− 2 and Z = 2 the batch of 300 students?
(iv) 99.74% of the area lies between Z =− 3 and Z = 3 (iii) How much has Varsha scored if he has done better
than 44.83% of his batchmates?
19.4.2 As a Limiting Case of Binomial


Sol :
Normal distribution is a limiting case of binomial
distribution under the following conditions :
(i) n , the number of trials is infinitely large, i.e. n " 3
(ii) neither p (nor q) is very small,
Click : www.nodia.study/lema/sm103
The normal distribution of a variable when
represented graphically, takes the shape of a symmetrical
curve, known as the Normal Curve. The curve is asymptotic EXAMPLE 19.4
to x -axis on its either side. Find the following probabilities for the standard normal
distribution :
(i) P (0 # Z # 1) (ii) P (Z $- 2)
EXAMPLE 19.1

Sol :
Given that mean of a normal variate X is 12 and standard
deviation is 4, then find:
(i) Find the z -score of data point 20
(ii) Find the z -score of data point 8
Click : www.nodia.study/lema/sm104
(iii) Data point if its z -score is 5
(iv) Data point if its z -score is - 2
EXAMPLE 19.5


Sol :
Find the following probabilities for the standard normal
distribution :

Click : www.nodia.study/lema/sm101
(i) P (- 2 # Z # 1) (ii) P (Z $ 2.5)

Sol :
Page 236 Normal Distributions chapter 19

Click : www.nodia.study/lema/sm105

Sol :

EXAMPLE 19.6
Click : www.nodia.study/lema/sm110
Find the following probabilities for the standard normal
distribution :
(i) P (Z #- 2.5) (ii) P (- 2 $ Z or Z $ 2.5) EXAMPLE 19.11
Find the area under the standard normal curve, which lies


Sol :
(i) To the left of Z = 0.94
(ii) To the right of Z =− 0.65

Click : www.nodia.study/lema/sm106

Sol :

EXAMPLE 19.7
Click : www.nodia.study/lema/sm111
If a continuous random variable follows a normal
distribution with mean 6.5 and standard deviation 2, find:
(i) P (3 # X # 9) (ii) P (X # 9) EXAMPLE 19.12
If X follows a normal distribution with mean 12 and


Sol : variance 16, find P ^X $ 20h .


Sol :

Click : www.nodia.study/lema/sm107
Click : www.nodia.study/lema/sm112
EXAMPLE 19.8
If a continuous random variable follows a normal
EXAMPLE 19.13
distribution with mean 6.5 and standard deviation 2, find:
For a normal distribution with mean 28 and variance 100,
(i) P (X $ 3) (iv) P (4 1 X 1 6)
what value of z corresponds to x = 30 ?

Sol :

Sol :

Click : www.nodia.study/lema/sm108 Click : www.nodia.study/lema/sm113

EXAMPLE 19.9 EXAMPLE 19.14

If a continuous random variable follows a normal If X be a normal variate with mean 3 and variance 16,
distribution with mean 6.5 and standard deviation 2, find: find the value of t such that P ^3 # X # t h = 0.4772 .
(i) P (7 # X # 9) (ii) P (X 1 2 or X $ 8)

Sol :


Sol :

Click : www.nodia.study/lema/sm114
Click : www.nodia.study/lema/sm109
EXAMPLE 19.15
EXAMPLE 19.10 The average daily sale of 550 branch offices was < 150
If X is a normal variate with mean 30 and SD 5. Find the thousand and standard deviation is < 15 thousand.
probabilities that (i) 26 # X # 40 , (ii) X 2 45 Assuming the distribution to be normal, indicate how
chapter 19 Normal Distributions Page 237

many branches have sales between

Sol :

(i) < 1, 25, 000 and < 1, 45, 000

Click : www.nodia.study/lema/sm119
(ii) < 1, 40, 000 and < 1, 60, 000


Sol :

Click : www.nodia.study/lema/sm115 EXAMPLE 19.20

A bank manager has observed that the length of time the
customers have to wait for being attended by the teller
is normally distributed with mean time of 5 minutes and
EXAMPLE 19.16 standard deviation of 0.7 minutes. Find the probability
Assume the mean height of children to be 69.25 cm with that a customer has to wait
a variance of 10.8 cm. How many children in a school of (i) For less than 6 minutes
1,200 would you expect to be over 74 cm tall? (ii) Between 3.5 and 6.5 minutes


Sol :

Sol :

Click : www.nodia.study/lema/sm116 Click : www.nodia.study/lema/sm120

EXAMPLE 19.17 EXAMPLE 19.21

The marks obtained in a certain exam follow normal A sample of 125 dry battery cells tested to find the length
distribution with mean 45 and SD 10. If 1,300 students of life produced the following results with mean 12 and SD
appeared at the examination, calculate the number of 3 hours. Assuming that the data to be normal distributed,
students scoring what percentage of battery cells are expected to have life
(i) less than 35 marks and (i) More than 13 hours
(ii) more than 65 marks. (ii) Less than 5 hours


Sol : (iii) Between 9 and 14 hours


Sol :

Click : www.nodia.study/lema/sm117
Click : www.nodia.study/lema/sm121
EXAMPLE 19.18
900 light bulbs with a mean life of 125 days are installed in EXAMPLE 19.22
a new factory. Their length of life is normally distributed Weights of fish caught by a traveller are approximately
with a standard deviation of 18 days. What is the expected normally distributed with a mean weight of 2.25 kg and
number of bulbs expire in in less than 95 days. a standard deviation of 0.25 kg. What percentage of fish


Sol : weigh less than 2 kg?


Sol :

Click : www.nodia.study/lema/sm118
Click : www.nodia.study/lema/sm122
EXAMPLE 19.19
Assume that the mean height of soldiers is 69.25 inches EXAMPLE 19.23
with a variance of 9.8 inches. How many soldiers in a The average daily procurement of milk by village society
regiment of 6,000 would you expect to be over 6 feet tall? in 800 litres with a standard deviation of 100 litres. Find
Page 238 Normal Distributions chapter 19

out proportion of societies procuring milk between 800 values are greater than 60. Find the standard deviation of
litres to 1000 litres per day. Assume normal distribution. the distribution.


Sol :

Sol :

Click : www.nodia.study/lema/sm123 Click : www.nodia.study/lema/sm127

EXAMPLE 19.24 EXAMPLE 19.28

Assume the mean height of students in an exactly normal A workshop produces 2000 units per day. The average
distribution to be 170 cm. with a variance of 27 cm. How weight of units is 130 kg with a S.D. of 10 kg. Assuming
many students in a college of 1,000 students would you normal distribution, how many units are expected to
expect to be over 183 cm tall? weigh less than 142 kg?


Sol :

Sol :

Click : www.nodia.study/lema/sm124 Click : www.nodia.study/lema/sm128

EXAMPLE 19.25 EXAMPLE 19.29

East-West Airlines has the policy of employing only Indian The time taken to complete a particular type of job is
women whose height is between 157 cm and 183 cm. If distributed approximately normal with a mean of 1.8
the height of Indian women is approximately normally hours and a standard deviation 0.1 hour. If “Normal
distributed with a mean of 163 cm and a standard time work” finishes at 6.00 p.m. and a job is started at
deviation of 8 cm, out of the 1,000 applications received, 4.00 p.m., what is the probability that the job will need
find the number of applicants that would be overtime payments?
(i) too tall

Sol :
(ii) too short
(iii) of acceptable height.


Sol : Click : www.nodia.study/lema/sm129

Click : www.nodia.study/lema/sm125 EXAMPLE 19.30

A batch of 5,000 electric lamps has a mean life of 1,000
hours and a standard deviation of 75 hours. Assume a
EXAMPLE 19.26 normal distribution :
The wage distribution of the workers in a factory is normal (i) How many lamps will fail before 900 hours?
with mean < 4000 and standard deviation < 500. If the (ii) How many lamps will fail between 950 and 1,000
wages of 40 workers be less than < 3500, what is the total hours?
number of workers in the factory? (iii) What proportion of lamps will fail before 925 hours?


Sol : (iv) Given the same mean life, what would the standard
deviation have to be to ensure that no more than
20% of lamps fail before 916 hours?
Click : www.nodia.study/lema/sm126

Sol :

EXAMPLE 19.27 Click : www.nodia.study/lema/sm130

The mean of a normal distribution is 50 and 5% of the
chapter 19 Normal Distributions Page 239

EXAMPLE 19.31
In a sample of 240 workers in a factory the mean and
Click : www.nodia.study/lema/sm134
standard deviation of wages were < 113.50 and < 30.30
respectively. Find the percentage of workers. getting wages
between < 90 and < 170 in the whole factory assuming EXAMPLE 19.35
that the wages are normally distributed. If the heights of 300 students are normally distributed
with mean 64.5 inches and standard deviation 3.3 inches,


Sol :
how many students have height
(i) Less than 5 feet, i.e., 60 inches;

Click : www.nodia.study/lema/sm131
(ii) Between 5 feet and 5 feet 9 inches; i.e 60 inch and 69
inch


Sol :

EXAMPLE 19.32
A project yields an average cash-flow of < 550 lakhs and
standard deviation cash flow of < 110. Calculate the
Click : www.nodia.study/lema/sm135
following probabilities assuming the normal distribution:
(i) Cash flow will be more than < 675 lakhs.
(ii) Cash flow will be less than < 450 lakhs. EXAMPLE 19.36
(iii) Cash flow will be between < 425 lakhs and < 750 The distribution of weekly wages for 500 workers in a
lakhs. factory is approximately normal with the mean and
standard deviation of Rs 75 and Rs 15 respectively. Find


Sol :
the number of workers who receive weekly wages
(i) More than Rs 90 (ii) Less than Rs 45.

Click : www.nodia.study/lema/sm132

Sol :

EXAMPLE 19.33
Click : www.nodia.study/lema/sm136
A random variable X having a normal distribution with
µ = 50 and σ = 10 , find the probability that X assumes
a value between 45 and 62. EXAMPLE 19.37
The average grade for an exam is 74 and the standard


Sol :
deviation is 7. If 12 % of the class is given A’s and the
grades are curved to follow a normal distribution, what is

Click : www.nodia.study/lema/sm133
the lowest possible A and the highest possible B?


Sol :

EXAMPLE 19.34
The local authorities in certain city installed 10000 electric
Click : www.nodia.study/lema/sm137
lamps on the roads of the city. The lamps have an average
life of 1000 burning hours with a standard deviation of 200
hours. Assume that the lives of the lamps are normally EXAMPLE 19.38
distributed. The mean length of steel bars produced by a company is
(i) What number of lamps might be expected to fail in 10 m with standard deviation 20 cm. A man purchased
the first 800 burning hours? 5000 bars. How many of these bars are expected to be
(ii) What number of lamps might be expected to fail in shorter than 9.75 m in length? Assume that the length of
between 800 and 1200 burning hours? steel bars normally distributed.

Sol :

Sol :
Page 240 Normal Distributions chapter 19

Click : www.nodia.study/lema/sm138 10% is excellent.

(i) Find the probability that Mega Pharma’s stock will
prove to be unsatisfactory ?
(ii) Find the probability that Mega Pharma’s stock will
EXAMPLE 19.39 prove to be excellent ?
A juice machine is regulated so that it discharges an
average of 200 ml per cup. If amount of drink is normally

Sol :
distributed with a standard deviation equal to 15 ml.
(i) What fraction of the cups will contain more than 224
millilitres? Click : www.nodia.study/lema/sm142
(ii) What is the probability that a cup contains between
191 and 209 millilitres?
(iii) How many cups will probably overflow, if 230 EXAMPLE 19.43
millilitre cups are used for the next 1000 drinks? A software company is recruiting fresh engineering


Sol : graduates during the placement season and training for
providing skills for undertaking projects independently
by themselves. The training period for the trainees varies
Click : www.nodia.study/lema/sm139 due to their varied educational background and eagerness
to learn the nuances of programming. From historical
data, the company finds that the time of completion of
the training programme has an average of 4 months and
EXAMPLE 19.40 variance of 2.25 months.
The IQ’s of 600 applicants of a certain college are (i) What is the probability that a randomly selected
approximately normally distributed with a mean of 115 graduate completes the training programme within
and a standard deviation of 12. If the college requires an IQ 4 months, 5 months and 6 months?
of at least 95, how many of these students will be rejected (ii) Find the probability that the completion time for
on this basis regardless of their other qualifications? a randomly selected graduate varies from 3 to 5


Sol : months.
(iii) If the company has recruited 800 graduates in this
year, find the number of graduates who complete
Click : www.nodia.study/lema/sm140 the training within 2 months or takes more than 5
months?


Sol :
EXAMPLE 19.41
A coin is tossed 400 times. Use the normal curve
approximation to find the probability of obtaining less Click : www.nodia.study/lema/sm143
than 176 or more than 227 heads.


Sol :
EXAMPLE 19.44
The owner of a theatre plans to construct another theatre
Click : www.nodia.study/lema/sm141 in the same city. From his experience with his existing
theatre he knows that the number of persons who come
to his theatre in any show is normally distributed with a
mean of 850 and a standard deviation of 200. He wants
EXAMPLE 19.42
to have sufficient number of seats in the proposed theatre
A dalal dtreet analyst estimates that the annual return
so that not more than 5% of the people who come to his
from the stock of Mega Pharma can be considered to be an
proposed theatre will not get a ticket. At the same time
observation from a normal distribution with mean µ = 8
he wants to minimise his loss due to vacant seats in the
and standard deviation σ = 1.5 . The analyst’s investment
proposed theatre. How many seats should he have in the
choices are based upon the considerations that any return
proposed theatre so that both of his conflicting objectives
greater than 5% is satisfactory and a return greater than
chapter 19 Normal Distributions Page 241

are met with? distributed with µ = 350 and σ = 50 . The owner of the


Sol : store is unable to decide which estimate is accurate and
assigns equal probability for both of them.
(i) Assuming that estimate I is accurate, find the
Click : www.nodia.study/lema/sm144 probability that the quarter sales exceed < 350 lakhs.
(ii) Assuming that the estimate II is accurate, find
the probability that the quarterly sales exceed
< 350 lakhs .
EXAMPLE 19.45


Sol :
The manager of a TV showroom orders 100 TVs per
month. He is unable to fulfil the entire demand in one
month out of 4 months on the average. He estimates the
average monthly demand to be 90 TVs. Assume that Click : www.nodia.study/lema/sm147
demand for TVs follows a normal distribution.
(i) Find the standard deviation of the distribution of
demand. EXAMPLE 19.48
(ii) How many TVs should be order per month if he From past records, a business school knows that 10% of
wants the probability of running out of stock to be their students get placements in MNCs. In the current
at most 0.1. year, the business school has 400 students. Find the


Sol : probability that :
(i) 35 to 45 students get placement in MNCs
(ii) less than 30 students get placement in MNCs
Click : www.nodia.study/lema/sm145 (iii) more than 48 students get placement in MNCs


Sol :

EXAMPLE 19.46
Beta Engineering Company requires ball bearings for Click : www.nodia.study/lema/sm148
its machine and orders them from an ancillary unit.
The required diameter is 3 cm. but Gamma Engineering
Company can manage with ball bearings of diameter EXAMPLE 19.49
3 ! 0.02 cm . The diameters of ball bearings manufactured A business school wants to admit only top 2% of the
by the ancillary unit follows a normal distribution with students who were called for interview and GD. It is
mean of 3 cm and standard deviation of 0.03 cm. What found that the marks in the interview follow a normal
is the probability that the ball bearings will satisfy the distribution with a mean of 70 and standard deviation of
specification prescribed by Gamma Engineering Company. 12. What mark should a student get in interview so that
If the ancillary unit improves its process so that the he gets admission in MBA?
standard deviation reduces to 0.01, find the probability

Sol :
that the ball bearings satisfies the specifications.


Sol :
Click : www.nodia.study/lema/sm149
Click : www.nodia.study/lema/sm146
EXAMPLE 19.50
The average number of hours a person works per 5-day
EXAMPLE 19.47 week in a software company is 44. Also, 12% of the works
The Novelty Store is getting conflicting estimates for its work for more than 48 hours. Assume that the number of
sales in the next quarter from two agencies. Estimate I hours of work follows a normal distribution.
claims that the quarterly sales in lakhs of rupees will be (i) Find the standard deviation of the distribution.
normally distributed with µ = 400 and σ = 50 . Estimate (ii) What percentage of workers work for less than 40
II claims that the sales in lakhs of rupees will be normally hours?
Page 242 Normal Distributions chapter 19

Sol : persons taking the test would be acceptable to

the university?
Ans : (i) 38.30, (ii) 3.59, (iii) 61.79
Click : www.nodia.study/lema/sm150

4. The results of particular examination are given below

in a summary form:
E X ERCISE 19.1 Result % of Candidates
Passed with distinction 10
1. 1000 light bulbs with a mean life of 120 days are
installed in a new factory and their length of life is Passed without distinction 60
normally distributed with standard deviation of 20 Failed 30
days. It is known that a candidate fails in the examination
(a) How many bulbs will expire in less than 90 days? if he obtains less than 40 marks (out of 100) while
(b) If it is decided to replace all the bulbs together, he must obtain at least 75 marks in order to pass
what interval should be allowed between with distinction. Determine the mean and standard
replacements if not more than 10% should expire deviation of the distribution of marks, assuming this
before replacement? to be normal.
Ans : (a) 67, (b) 94 Ans : µ = 50.17 , σ = 19.4

2. The lifetimes of certain kinds of electronic devices 5. Assume the mean height of soldiers to be 68.22 inches
have a mean of 300 hours and standard deviation with a variance of 10.8 inches. How many soldiers in
of 25 hours. Assuming that the distribution of these a regiment of 1000 would you expect to be over six
lifetimes, which are measured to the nearest hour, can feet tall?
be approximated closely with a normal curve Ans : 125
(i) Find the probability that any one of these
electronic devices will have a lifetime of more
than 350 hours.
(ii) What percentage will have lifetimes of 300 hours
6. The income of a group of 10000 persons was found to
or less?
be normally distributed with mean = ` 750 p.m. and
(iii) What percentage will have lifetimes from 220 or
standard deviation = ` 50. Show that in this group
260 hours?
about 95 percent had income exceeding ` 668 and
Ans : (i) 0.0228, (ii) 50%, (ii) 5.41
only 5 percent had income exceeding ` 832. What was
the lowest income among the richest 100?
Ans : ` 866.50

3. Assume that the test scores from a college admissions

test are normally distributed with a mean of 450 and
a standard deviation of 100.
7. A workshop produces 2000 units of an item per day.
(i) What percentage of people taking the test score
The average weight of units is 130 kg with a standard
are between 400 and 500 ?
deviation of 10 kg. Assuming normal distribution, how
(ii) Suppose someone received a score of 630. What
many units are expected to weigh less than 142 kg ?
percentage of the people taking the test score
Ans : 1770
better? What percentage score worse?
(iii) If a particular university will not admit any
one scoring below 480, what percentage of the
chapter 19 Normal Distributions Page 243

8. A wholesale distributor of fertilizer products finds

that the annual demand for one type of fertilizer
is normally distributed with a mean of 120 kg and
standard deviation of 16 kg. If he orders only once a
year, what quantity should be ordered to ensure that
there is only a 5 percent chance of running short?
Ans : 146.24 kg

9. The annual commissions per salesperson employed by

a pharmaceutical company, which is a manufacturer
of cough syrup, averaged ` 40000, with a standard
deviation of ` 5000. What percent of the salespersons
earn between ` 32000 and ` 42000 ?
Ans : 60%

10. In a normal distribution 31 percent of the items are

under 45 and 8 percent are over 64. Find the mean
and standard deviation of the distribution.
Ans : 50 and 10

Applied Mathematics
CBSE Class XI and XII Commerce
A Text Book by NODIA Press
Based on New Syllabus Released By CBSE

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For Teachers
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Page 244 Unit 4 Case Study Chap 29

UNIT 4

Case Study Questions

EXAMPLE 29.1 EXAMPLE 29.2

A photocopier (also called copier or copy machine) is a A resistor is a passive two-terminal electrical component
machine that makes copies of documents and other visual that implements electrical resistance as a circuit element.
images onto paper or plastic film quickly and cheaply. Most In electronic circuits, resistors are used to reduce current
modern photocopiers use a technology called xerography, flow, adjust signal levels, to divide voltages, bias active
a dry process that uses electrostatic charges on a light- elements, and terminate transmission lines, among other
sensitive photoreceptor to first attract and then transfer uses.
toner particles (a powder) onto paper in the form of an
image. The toner is then fused onto the paper using heat,
pressure, or a combination of both. Copiers can also
use other technologies, such as inkjet, but xerography is
standard for office copying.

A company purchases a lot of a ressitors. A method is used

that rejects a lot if 2 or more defective units are found in
a random sample of 100 units.
(i) What is the mean number of defective units found in
a sample of 100 units if the lot is 1 % defective?
An office has four copying machines, and the random (ii) What is variance?
variable X measures how many of them are in use at a

Sol :
particular moment in time. Suppose that P (X = 0) = 0.08,
P (X = 1) = 0.11, P (X = 0) = 0.27, and P (X = 3) = 0.33 .
(i) What is P (X = 4) ? Click : www.nodia.study/lema/zm144
(ii) What is the expected number of copying machines in
use at a particular moment in time?
EXAMPLE 29.3
(iii) Calculate the variance and standard deviation of the
Missile defense is a system, weapon, or technology involved
number of copying machines in use at a particular
in the detection, tracking, interception, and destruction of
moment.
attacking missiles.


Sol :

Click : www.nodia.study/lema/zm143
Chap 29 Unit 4 Case Study Page 245

choices are based upon the considerations that any return

greater than 5% is satisfactory and a return greater than
10% is excellent.
(i) Find the probability that Mega Pharma’s stock will
prove to be unsatisfactory ?
(ii) Find the probability that Mega Pharma’s stock will
prove to be excellent ?


Sol :

Homeland security and missile defence technology make Click : www.nodia.study/lema/zm146

it paramount that we become able to detect incoming
missiles. To make the defence successful, multiple radars are
EXAMPLE 29.5
required. Suppose it is determined that three independent
screens are to be operated and the probability that any Infosys Limited is an Indian multinational information
one screen will detect on incoming missile is 0.8. technology company that provides business consulting,
(i) What is the probability that the missile will be detected information technology and outsourcing services. The
by only one screen. company was founded in Pune and is headquartered in
(ii) What is probability that incoming missile will not be Bangalore.
detected by screens. Infosys is recruiting fresh engineering graduates during
the placement season and training for providing skills for


Sol :
undertaking projects independently by themselves. The
training period for the trainees varies due to their varied
Click : www.nodia.study/lema/zm145 educational background and eagerness to learn the nuances
of programming. From historical data, the company finds
that the time of completion of the training programme has
EXAMPLE 29.4 an average of 4 months and variance of 2.25 months.
Dalal Street in Financial District of Fort in Mumbai, is
the address of the Bombay Stock Exchange and several
financial institutions of the world. The term “Dalal Street”
has become a metonym for the financial markets of India,
as a whole the Indian financial service industry or the
financial district itself.

(i) What is the probability that a randomly selected

graduate completes the training programme within 4
months, 5 months and 6 months?
(ii) Find the probability that the completion time for a
randomly selected graduate varies from 3 to 5 months.
(iii) If the company has recruited 800 graduates in this
A dalal dtreet analyst estimates that the annual return year, find the number of graduates who complete
from the stock of Mega Pharma can be considered to be an the training within 2 months or takes more than 5
observation from a normal distribution with mean µ = 8 months?
and standard deviation σ = 1.5 . The analyst’s investment

Sol :
Page 246 Unit 4 Case Study Chap 29

Click : www.nodia.study/lema/zm147

EXAMPLE 29.6
The owner of a theatre plans to construct another theatre
in the same city. From his experience with his existing
theatre he knows that the number of persons who come
to his theatre in any show is normally distributed with a
mean of 850 and a standard deviation of 200.

The manager of a Croma showroom orders 100 TVs per

month. He is unable to fulfil the entire demand in one
month out of 4 months on the average. He estimates the
average monthly demand to be 90 TVs. Assume that
demand for TVs follows a normal distribution.
(i) Find the standard deviation of the distribution of
demand.
(ii) How many TVs should be order per month if he wants
the probability of running out of stock to be at most
He wants to have sufficient number of seats in the proposed 0.1.
theatre so that not more than 5% of the people who come


Sol :
to his proposed theatre will not get a ticket. At the same
time he wants to minimise his loss due to vacant seats
in the proposed theatre. How many seats should he have Click : www.nodia.study/lema/zm149
in the proposed theatre so that both of his conflicting
objectives are met with?
EXAMPLE 29.8


Sol :
Crossword Bookstores Ltd. is an Indian chain of
bookstores in Mumbai. As of today, Crossword has
Click : www.nodia.study/lema/zm148 stores in Ahmedabad, Bhopal, Bengaluru, Chennai,
Delhi, Gandhinagar, Goa, Hyderabad, Indore, Jaipur,
Kochi, Kohima, Kolkata, Kanpur, Kozhikode, Lucknow,
EXAMPLE 29.7
Mangalore, Mumbai, Thane, Navi Mumbai, Noida, Kalyan,
Croma is India’s first, large format, specialist retail chain Nagpur, Nashik, Pune, Raipur, Ranchi, Siliguri, Surat,
for consumer electronics and durables. It is a TATA Thiruvananthapuram, Udaipur, and Vadodara.
Enterprise. Croma helps you shop for 6000 different The Crossword Store is getting conflicting estimates
products accross 8 categories in a world class ambience. for its sales in the next quarter from two agencies. Estimate
I claims that the quarterly sales in lakhs of rupees will be
normally distributed with µ = 400 and σ = 50 . Estimate II
claims that the sales in lakhs of rupees will be normally
distributed with µ = 350 and σ = 50 . The owner of the store
is unable to decide which estimate is accurate and assigns
equal probability for both of them.
Chap 29 Unit 4 Case Study Page 247

the business school has 400 students. Find the probability

that :
(i) 35 to 45 students get placement in MNCs
(ii) less than 30 students get placement in MNCs
(iii) more than 48 students get placement in MNCs


Sol :

Click : www.nodia.study/lema/zm151

EXAMPLE 29.10
Some HR expert suggest that 5 days week boosts
productivity among workers. Working long hours does not
boost productivity rather working on a Saturday drops
(i) Assuming that estimate I is accurate, find the productivity and is a known to cause strain, fatigue and
probability that the quarter sales exceed < 350 lakhs. burn out, which affects cognitive performance, hence,
(ii) Assuming that the estimate II is accurate, find the productivity.
probability that the quarterly sales exceed < 350 lakhs .


Sol :

Click : www.nodia.study/lema/zm150

EXAMPLE 29.9
Campus placement or campus recruiting is a program
conducted within universities or other educational
institutions to provide jobs to students nearing completion
of their studies. In this type of program, the educational The average number of hours a person works per 5-day
institutions partner with corporations who wish to recruit week in a software company is 44. Also, 12% of the person
from the student population. works for more than 48 hours. Assume that the number of
hours of work follows a normal distribution.
(i) Find the standard deviation of the distribution.
(ii) What percentage of workers work for less than 40
hours?


Sol :

Click : www.nodia.study/lema/zm152

EXAMPLE 29.11
A ball bearing is a type of rolling-element bearing that
uses balls to maintain the separation between the bearing
races. The purpose of a ball bearing is to reduce rotational
friction and support radial and axial loads.

From past records, a business school knows that 10% of

their students get placements in MNCs. In the current year,
Page 248 Unit 4 Case Study Chap 29

(i) 5 or less number of parts are defective in a production

cycle.
(ii) Exactly 5 parts are defective in a production cycle.
(iii) More than 4 parts are defective in a production cycle.


Sol :

Click : www.nodia.study/lema/zm154

EXAMPLE 29.13
HDFC Bank Limited is an Indian banking and financial
Beta Engineering Company requires ball bearings for services company headquartered in the city of Mumbai,
its machine and orders them from an ancillary unit. India. It is India’s largest private sector bank by assets
The required diameter is 3 cm. but Gamma Engineering and world’s 10th largest bank by market capitalisation as
Company can manage with ball bearings of diameter of April 2021.
3 ! 0.02 cm . The diameters of ball bearings manufactured
by the ancillary unit follows a normal distribution with
mean of 3 cm and standard deviation of 0.03 cm. What
is the probability that the ball bearings will satisfy the
specification prescribed by Gamma Engineering Company.
If the ancillary unit improves its process so that the
standard deviation reduces to 0.01, find the probability
that the ball bearings satisfies the specifications.


Sol :

Click : www.nodia.study/lema/zm153

EXAMPLE 29.12 HDFC Bank Manager found that 3 customers arrive on an

Quality control (QC) is a process through which a business the average in every 5 minutes in a savings bank counter.
seeks to ensure that product quality is maintained or Assume, that the customers arrive at random :
improved. Quality control involves testing units and (i) Find the probability that 5 customers arrive in a
determining if they are within the specifications for the 5-minutes interval.
final product. Examples of quality control activities include (ii) The Manager wants to add one more counter for SB
inspection, deliverable peer reviews and the software customer if the probability that more than 5 customers
testing process. arrive in a 5-minute interval exceeds 0.2. Will the
Manager add one more counter?
(iii) Do subdivisions (i) and (ii) for a 10-minute interval.


Sol :

Click : www.nodia.study/lema/zm155

EXAMPLE 29.14
A Data Entry Operator is a professional who is in charge
of entering all the data into different computer databases.
The Quality Control Manager finds that the average
In addition, they manage and maintain effective record
number of defective parts coming out in a production cycle
keeping, organizing files to collect information for future
is 5. Find the probability that :
use.
Chap 29 Unit 4 Case Study Page 249

that 48 calls are received by the toll-free phone in one

hour on the average. Assuming the number of calls follow
a Poisson distribution, find the probability that :
(i) no calls will be received in a 1- minute period.
(ii) 2 or more calls will be received in a 1-minute period.
(iii) no call will be received in a 2-minute period.
(iv) 4 or more calls will be received in a 2-minute period.


Sol :

Click : www.nodia.study/lema/zm157

EXAMPLE 29.16
Casio Electronics has developed a new calculator that
performs a series of functions not yet performed by any
A data entry operator is entrusted with the job of entering other calculator. The marketing department is planning
the marks provided by examiners in the computer system. to demonstrate this calculator to a group of potential
The probability of error in data entry is only 0.001. A customers, but it is worried about some initial problems,
sample of 1000 marks is drawn for checking by the which have resulted in 4 percent of the new calculators
examination centre. Find the probability that : developing mathematical inconsistencies.
(i) There are only 3 errors.
(ii) There are no errors.
(iii) There number of errors is 4 or more.


Sol :

Click : www.nodia.study/lema/zm156

EXAMPLE 29.15
A toll-free number is a number that customers can call The marketing VP is planning on randomly selecting a
without being charged for it. The cost for all incoming group of calculators for this demonstration and is worried
and outgoing calls are paid for by the business. A toll-free about the chances of selecting a calculator that could
number usually has prefixes such as 1800, 855, 877, 888, start malfunctioning. He believes that whether or not a
etc. calculator malfunctions is a Bernoulli process, and he is
convinced that the probability of a malfunction is really
about 0.04.
(i) Assuming that the VP selects exactly 150 calculators
to use in the demonstration, and using the Poisson
distribution as an approximation of the binomial,
what is the chance of getting at least three calculators
that malfunction?
(ii) No calculators malfunctioning?


Sol :

Click : www.nodia.study/lema/zm158


******
ICICI bank has given a toll-free phone number which
is available to the customers to register their complaints
regarding the service provided by its branches. It is found
Page 250 Inferential Statistics chapter 20

CHAPTER 20

Inferential Statistics

20.1 Introduction in any statistical survey is called a population. According

Statistics plays a main role in the field of research. It to A.C. Rosander, “A population is the totality of objects
helps us in the collection, analysis and representation of under consideration.” In the words of Simpson and Kafka,
data either by visualisation or by numbers into a general “A universe or population may be defined as an aggregate
understandable format. Generally, we divide statistics of items possessing a common trait or traits.” According
into two main branches which are Descriptive Statistics to G. Kalton, “In statistical usage the term population
and Inferential Statistics. Descriptive statistics describe does not necessarily refer to people but is a technical term
the important characteristics of data by using mean, used to describe the complete group of persons or objects
median, mode, variance etc. It summarises the data for which the results are to apply.”
through numbers and graphs. Inferential statistics allows
us to make predictions (inferences) from that data. With
inferential statistics, we take data from samples and make
20.3 Types of Population
generalizations about a population. In this Chapter, we
will discuss the Inferential statistics in detail. Population is of several types. Usually population is
classified as under:
Example:

20.2 Population Suppose there are 250 workers in a factory and a researcher
collects information about income and expenditure
In any statistical investigation often called statistical from all the workers, then 250 workers would be taken
survey, observations are made on a group of objects or as population or universe. The individual units of the
individuals called elementary units as they are without population are called ‘members’ or ‘elements’ or ‘items’.
any interference. The aggregate of individuals under study
chapter 20 Inferential Statistics Page 251

20.4 sample Characteristic The characteristic The measure of

A part of the population selected to know some thing of population based sample observation is
about the population is called a sample. The number of on all units is called called statistic.
parameter.
individuals in a sample is called its size.
According to G.W. Snedecore and W.G. Cochran, Data collection When information Conversely, the
“A sample consists of a small collection from a larger is collected from all sample survey is
units of population, conducted to gather
aggregates about which we seek information.” On the
the process is known information from
basis of the observations of sample, we try to know about
as census or complete the sample using
the population. enumeration. sampling method.
Diagrammatic representation of Population and
Focus on With population, the The focus is made
Sample is as follows:
focus is to identify the on making the
characteristics of the generalisation about
elements. the characteristics of
the population, from
which the sample
came from.

20.6 Types of Samples

It is clear from the above diagram that sample is a
short form of the parent population which it represents. In 20.6.1 Representative Sample
other words, the results obtained by the study of sample A representative sample is a group or set chosen from
are applied to the population. a larger statistical population or group of factors or
Example: instances that adequately replicates the larger group
according to whatever characteristic or quality is under
If an investigator selects 200 students from 2000 students
study. A representative sample is a subset of a population
of a college for measuring average height of students, then
that seeks to accurately reflect the characteristics of the
these 200 students will constitute a sample.
larger group. For example, a classroom of 30 students with
15 males and 15 females could generate a representative
sample that might include six students: three males and
20.5 difference between population and three females.
sample
20.6.2 Non Representative Sample
The difference between population and sample are as
follows: The purpose of sampling is to obtain a statistic that
tells you something about a population. A statistic is
Basis of Population Sample representative if it represents the attributes of a known
Difference
parameter in the population. When the statistic does
Meaning The collection A subgroup of not represent the population parameter, it is called
of all elements the members of unrepresentative. For Example, The apples on the top
possessing common population chosen
of the box look good. The entire box of apples must be
characteristics that for participation in
good. (Of course, the rotten apples are hidden beneath
comprise universe the study is called
is known as the sample. the surface.
population.
20.6.3 Difference between Representative and Non
Includes The population Only a handful
Representative Sample
consists of each and of items of the
every element of the population is A representative sample is a subset of the target group
entire group. included in a sample. with a similar distribution of relevant characteristics,
in turn allowing us to generalise from the sample to the
Page 252 Inferential Statistics chapter 20

target group with some justification. On the other hand, 2. Table of Random Number
an unrepresentative sample is one that does not reflect the The lottery method described above is quite time
distribution of characteristics of the target group, cannot consuming and cumbersome to use if the population to
be generalised to the target population, and is therefore be sampled is sufficiently large. For choosing the elements
biased. of the sample, we use a table called Table of random
numbers. It is an array consisting of rows and columns
and the entries are 5-digit numbers.
20.7 Random Sampling The Various random number tables available are:
There are four methods of random sampling. They are: a. L.H.C. Tippet random number series
1. Simple random sampling b. Fisher and Yates random number series
2. Systematic random sampling c. Kendall and Smith random number series
3. Stratified random sampling d. Rand Corporation random number series.
4. Cluster sampling
Table : Extract from Tippet’s Table of Random Numbers
These methods are applicable under different
circumstances and among them simple random sampling 2952 6641 3992 9792 7979 5911 3170 5624
is the ideal one. 4167 9524 1545 1396 7203 5356 1300 2693
2370 7483 3408 2762 3563 1089 6913 7691
20.7.1 Simple Random Sampling
0560 5246 1112 6107 6008 8126 4233 8776
A simple random sample is chosen from the population so
2754 9143 1405 9025 7002 6111 8816 6446
as to satisfy the following two requirements:
1. Each element of the population has the same For example, we want to choose a sample of 10
probability of being included in the sample as every elements from a population of 200 elements. We assign the
other element. number 000 to 199 to the elements of the population. We
2. Every sample of fixed size has the same chance of start with any number in the table of random numbers.
selection as every other sample of that size. We consider only the first three digits of this number.
If an element is picked up once and if it is not If the 3-digit number is less than 200, then the element
available to be picked up again, it is a simple random corresponding to that number is chosen as the first element
sampling without replacement. In the simple random of the sample. We go down the column and choose the
sampling with replacement, an element after being next random number (A 4-digit random number is one
1
picked up and included in the sample, is replaced in the whose probability of selection is 10000 , that is, it has the
population so that it can be picked up again. same probability of selection as any other 4-digit random
A simple random sample may be selected by: number. The table of random numbers has the property
that the choice of numbers from the table is really a
1. Lottery Method
random choice).
This is the most common method of taking a random If the number with the first three digits is less than
sample. As per this method, all the units of the universe 200, then the corresponding element of the population is
are numbered or named on small chits of paper which are chosen as the second element of the sample. If the number
identical in size and shape. These slips are then folded found by the first three digits is greater than 200, discard
and mixed together in an appropriate container. The chits it and proceed along the column. The method is continued
required to constitute the desired sample size are then until we get the required sample size. (If a column is
picked out blind folded. In this way the items are selected over, then we go to the next column for choosing random
on purely chance basis. numbers.)
For example, let us suppose that we want to draw
a random sample of 10 individuals from a population of
100 individuals. We assign the numbers 1 to 100, one
EXAMPLE 20.1
number to each individual of the population and prepare
A company wants to conduct an email survey. It has a
100 identical slips bearing the numbers from 1 to 100.
list of 1000 email addresses and wants a sample of 15
These slips are then placed in a bag or container and
addresses. Use simple random sample method to get a
shuffled thoroughly. Finally, a sample of 10 slips is drawn
sample of size 15.
out one by one. The individuals bearing the numbers on
these selected slips will constitute the desired sample.

Sol :
chapter 20 Inferential Statistics Page 253

Click : www.nodia.study/lema/tm101 Click : www.nodia.study/lema/tm104

20.7.2 Systematic Random Sampling
EXAMPLE 20.2 The method of random sampling is applicable when the
Draw a random sample (without replacement) of 15 elements of a population are available as a list, such as a
students from a class of 450 students. telephone directory (which may become obsolete in the
coming days due to cell phones, iphones, etc.), or a list
Table : Extract from Tippet’s Table of Random Numbers of names in alphabetical order of successful candidates in
2952 6641 3992 9792 7979 5911 3170 5624 some competitive examination.
4167 9524 1545 1396 7203 5356 1300 2693 For example, we want to choose a sample of
2370 7483 3408 2762 3563 1089 6913 7691 size n out of a population of size N . Let k = N
n
&If n is not an integer, take the first integer larger than n 0 .
N N
0560 5246 1112 6107 6008 8126 4233 8776
2754 9143 1405 9025 7002 6111 8816 6446 We will choose the i th element in the first k elements of
the list, i being chosen arbitrarily as an integer between


Sol : l and k . The second element is taken as the i th element
in second k elements of the list. The process is continued
until we get a sample of size n .
Click : www.nodia.study/lema/tm102 In a systematic, sample each element of the
population has an equal chance of being selected, but each
sample of fixed size does not have an equal chance of being
EXAMPLE 20.3 selected. For example, a subset whose numbers appear in
Use the table given table to draw a random sample a range has no chance of being selected.
(without replacement) of size 5 from a population of 24 The primary advantage of systematic sampling is
units. that it requires less time and money.
However, systematic sampling is not applicable
Table : Extract from Tippet’s Table of Random Numbers when the list has some periodicity. Suppose, we have 10
2952 6641 3992 9792 7979 5911 3170 5624 colleges, each having 100 students and the population
4167 9524 1545 1396 7203 5356 1300 2693 consists of all students. If the students of each college are
arranged in the order or merit, then a sample of size 10
2370 7483 3408 2762 3563 1089 6913 7691
will have only students of the same rank. So, the sample
0560 5246 1112 6107 6008 8126 4233 8776 will not be representative of the population.
2754 9143 1405 9025 7002 6111 8816 6446 If our objective is to study the number of accidents
in 100 days in a city of major tourist attraction, then a


Sol : systematic sample with k = 7 will consist of some day of
a week. As the number of accidents will be more during

Click : www.nodia.study/lema/tm103
Sundays due to increase in traffic, the systematic sample
will not be representative of the population.

EXAMPLE 20.4
The adjoining table of ten random numbers of two digits EXAMPLE 20.5
each is provided to the field investigator. Choose a systematic sample with 10 elements out of a
population of 2000 elements.
34 96 61 85 49

Sol :
78 50 02 27 13 ...(*)

Click : www.nodia.study/lema/tm105
How should he use this table to make a random selection
of 5 plots out of 40?


Sol : 20.7.3 Stratified Random Sampling
In this method, we divide the entire population into non-
Page 254 Inferential Statistics chapter 20

overlapping relatively homogeneous groups called strata The strata are homogeneous within themselves,
(plural of stratum). There are two approaches to select a but heterogeneous between them whereas the clusters
sample. In the first approach, we select a simple random are heterogeneous within themselves, but homogeneous
sample from each stratum and then combine them to get between them.
the required stratified sample. In the second approach we One major advantage of cluster sampling is
choose a simple random sample of the same size from that it requires less cost and the collection of data is
each stratum and give weights to the elements of the more convenient. For example, if the population under
strata according to the proportion of the strata in the consideration is spread over the entire country. cluster
population. In both the approaches each element of the sampling is better since we can employ different agents
population has an equal chance of being selected. for various states. As the sample elements are distributed
For example, the population of government within a short distance, within a state, collection of data
employees, can be divided into class I, II, III and IV is easier and cost effective.
employees and the four classes are the four strata. But cluster sampling will fail when clusters have
If the population consists of listeners of an FM similar elements (for example, when the people of a state
channel, then the population can be divided into different are more bothered about local issues, their views will be
age groups. One such division can have three strata-the similar). Also, further statistical study is more difficult in
young, middle-aged and the old. It is advisable that the cluster sampling.
number of strata is at most 6.
One major advantage of stratified sampling is its
ability to provide a representative sample. On the basis
EXAMPLE 20.7
of a stratified sample, we can devise different solutions to
A political party is gearing up for the coming election and
different strata. For example, a restaurant can find new
wants to include promises regarding issues raised by the
ways to attract the youth and at the same time retain the
Indian votes in their election manifesto. Sketch a method
aged customers.
of obtaining a cluster sample for short-listing the issues
raised by the voters.

EXAMPLE 20.6

Sol :

A political party is gearing up for the coming election
and wants to include promises regarding issues raised
by the Indian votes in their election manifesto. Design Click : www.nodia.study/lema/tm107
a stratified sampling method for short-listing the issues
raised by the voters.


Sol : 20.8 Non-random Sampling
When we cannot apply random sampling methods we

Click : www.nodia.study/lema/tm106
resort to non-random methods. A non-random sampling
is a technique for selecting a sample without involving
probability of selection of elements.
20.7.4 Cluster Sampling
There are four non-random sampling methods.
This method is similar to stratified sampling in one aspect, They are:
but different in another aspect. The population is divided 1. Convenience sampling
into non-overlapping groups called clusters, each cluster 2. Judgement sampling
is representative of the entire population, but elements 3. Quota sampling
within a cluster differ in their characteristics. In short, a 4. Snowfall sampling
cluster is a population of a smaller scale.
For example, a company can divide India into four 20.8.1 Convenience Sampling
regions- North, South, West and East for studying the This is the simplest of all non-random sampling techniques.
preference of its products by consumers. We choose the elements which are readily available or
As division of population is involved in both willing to be included in the sample.
stratified sampling and cluster sampling, it is natural to A railway squad checking ticket-less travellers, a
compare the methods of division. TV channel eliciting the opinion of the audience coming
chapter 20 Inferential Statistics Page 255

out of a theatre, opinions sought from persons waiting required size. After few steps, we get a sizeable sample
in a traffic signal, etc. are all examples of convenience just as a snowball gathers more and more ice on being
sampling. In these examples, opinions are sought from rolled.
persons who are readily available or who are willing to If we want to collect a sample of persons using a
respond. rare drug or who has contacted a rare disease, we can
Although, a convenience sample does not convey use a snowball sampling. After identifying the first person
full information about the population, it gives some using the drug or contacting a doctor who prescribed the
preliminary information which can be used later for drug to his patient we can get more persons using the
devising sampling methods. This method is easy and drug from the patient’s or the doctor’s referral. Snowball
cheap. sampling is the only method available in some cases.

20.8.2 Judgement Sampling

Judgement sampling and quota sampling are better than
20.9 biased and Unbiased Sampling
convenience sampling as there are certain criteria for the
selection process. Both these samples are called purposive
samples. In judgement sampling, elements are selected 20.9.1 Unbiased Sampling
on the basis of the knowledge/experience of the person A sample is an unbiased sample if every individual or the
selecting the sample. element in the population has an equal chance of being
A typical example of judgement sampling is the selected.
inclusion of persons from industry in the interview panel Example:
for selection of students for MBA.
Kathy wants to know how many students in her city use
Judgement sampling is easy and cheap. One
the internet for learning purposes. She used an email
disadvantage of a judgement sampling is the fact that
poll. Based on the replies to her poll, she found that 83%
experts differ. So, we have to make provision for the
of those surveyed used the internet. Kathy’s sample is
prejudices of experts in seeking their advice in the
biased as she surveyed only the students those who use the
selection of a sample. In any case judgement sampling can
internet. She should have randomly selected a few schools
be used as a pilot/trial survey before a full-scale sampling
and colleges in the city to conduct the survey. Only then
procedure is designed.
it can be called unbiased sample.
20.8.3 Quota Sampling To get valid results, a sample must be chosen
very carefully. An unbiased sample is selected so that it
Quota sampling is similar to stratified sampling. We divide accurately represents the entire population. Two ways to
the population into homogeneous groups as in stratified pick an unbiased sample are listed below.
sampling. But the selection of elements from each group
is not random. Unbiased Samples
A typical example is the selection of ministers from Type Description Example
MLAs in a state. All the sections of the society (more often
based on caste and religion) are considered and minsters Simple Random Each item or Each student’s
are chosen from each section in the same proportion as Sample person in the name is written
that of the section in the state. population is on a piece of
Quota sampling is less expensive then the selection as likely to be paper. The
of a random sample. The preparatory work for quota chosen as any names are placed
sampling is minimum. However, it is not suitable for other. in a bowl, and
further statistical treatment due to lack of randomness is names are picked
selection. without looking.

20.8.4 Snowball Sampling

This method is used when it is very difficult to trace the
elements of a population. In snowball sampling, a person/
object of the population is identified. Information about
other members of the population are sought from the first
person. The process continues until we get a sample of
Page 256 Inferential Statistics chapter 20

Unbiased Samples Biased Samples

S y s t e m a t i c The items Every 20th Vo l u n t a r y A voluntary Students at a school
Random Sample or people person is R e s p o n s e response sample who wish to express
are selected chosen from an Sample involves only their opinions
according to a alphabetical list those who want to complete an online
specific time or of all students participate in the survey.
item interval. attending a sampling.
school.

20.9.2 Biased Sampling

20.10 Parameters and statistics
A sampling method is called biased if it systematically
favours some outcomes over others. Sampling bias 20.10.1 Parameters
is sometimes called ascertainment bias (especially in An exact, but generally unknown, measure (or value) which
biological fields) or systematic bias. describes the entire population or process characteristics is
Bias can be intentional, but often it is not. The called a parameter. It is a measure of a characteristic of an
following example shows how a sample can be biased, even entire population (a mass of all units under consideration
though there is some randomness in the selection of the that shares common characteristics) based on all the
sample. elements within that population. For example, all people
Inferences from a biased sample are not as living in one city, all-male teenagers globally, all elements
trustworthy as conclusions from a truly random sample. in a shopping trolley, or all students in a classroom.
Example: In population parameter, population proportion is
Telephone sampling is common in marketing surveys. A represented by P , mean is represented by µ (Greek letter
simple random sample may be chosen from the sampling mu), σ2 represents variance, N represents population
frame consisting of a list of telephone numbers of people in size, σ (Greek letter sigma) represents standard deviation,
the area being surveyed. This method does involve taking σxr represents Standard error of the mean, σ/µ represents
a simple random sample, but it is not a simple random Coefficient of variation, (X - µ) /σ represents standardized
sample of the target population (consumers in the area variate (z), and σp represents standard error of proportion.
being surveyed.) It will miss people who do not have a
Example:
phone. It may also miss people who only have a cell phone
that has an area code not in the region being surveyed. 20% of U.S. senators voted for a specific measure. Since
It will also miss people who do not wish to be surveyed, there are only 100 senators, you can count what each of
including those who monitor calls on an answering them voted.
machine and don’t answer those from telephone surveyors.
Thus the method systematically excludes certain types of
consumers in the area.
20.10.2 Statistics
In a biased sample, one or more parts of the A measure (or value) found from analysing sample data is
population are favoured over others. Two ways to pick a called a sample statistic or simply a statistic. Inferential
biased sample are listed below. statistical methods attempt to estimate population
parameters using sample statistics. Since the value of
Biased Samples a statistic varies from sample to sample to sample, it
Type Description Example has sampling fluctuation, sampling distribution and
Convenience A convenience To represent all the standard error. Sampling distribution of a statistic is the
Sample sample consists students attending probability distribution of that statistic and standard error
of members of a a school, the is the standard deviation of the sampling of a statistic
population that are principal surveys distribution of that statistic. Usually parameters are
easily accessed. the students in one unknown and statics are used as estimates of parameters.
math class. In sample statistics, mean is represented by xr(x
-bar), sample proportion is represented by pt (p -hat), s
represents standard deviation, s2 represents variance, the
sample size is represented by n , sxr represents Standard
chapter 20 Inferential Statistics Page 257

error of the mean, sp represents standard error of a interview every registered voter and ask each of them how
proportion, s/ (xr) represents Coefficient of variation, and he or she feels about a particular candidate, and for whom
(x -xr)/s represents standardized variate (z). he or she plans to vote in the next presidential election.
Example: However, the amount of time and money required to carry
50% of people living in the U.S. agree with the latest out such a task would be enormous. Furthermore, the
health care proposal. Researchers can’t ask hundreds of information obtained would probably be useless by the
millions of people if they agree, so they take samples or time it was available. Suppose that a candidate for political
part of the population and calculate the rest. office is interested in finding out whether a change in
political advertising strategy is necessary in the remaining
20.10.3 Relationship between Parameter and two weeks before an election. Spending a couple of days
Statistic interviewing a sample of prospective voters will yield
A parameter is a statistical measure computed from an answer quickly enough so that changes can be made
population data, for example, mean, median, standard before the election. It is highly doubtful that a canvass of
deviation, variance etc; while a statistic is a statistical all prospective voters could yield the needed information
measure computed form sample data viz ., sample mean, in time. Similarly, before we could ask all television
sample standard deviation. With the help of statistic, households in the U.S. about the shows that they watch,
unbiassed estimates are made and its reliability tested. the current television season would be long past. However,
Thus, parameters are the function of population values, there are also other reasons for generalizing to a large
while statistic are the function of sample observation. group from a smaller number of observations, such as the
The following notations are used for parameter and lack of an alternative. Suppose a manufacturer of light
statistic- bulbs wants to know how long his bulbs really last. She
chooses a selection of bulbs from a particular production
Measure Parameter Statistic run, and measures the number of hours each bulb lasts
Size of Number N n before it burns out. The average lifetime of the tested bulbs
then will be ascribed to the remaining untested bulbs in
Arithmetic Mean µ x
the same production run. In this case the manufacturer
Standard Deviation σ s generalizes because she has no alternative. If she had to
Proportion P p test the entire set of products, she would have nothing
left to sell. This illustrates another reason for generalizing
20.10.4 Difference between Parameters and Statistics from a limited sample to a full population: sometimes the
process of observation is destructive of the actual cases
1. A parameter is a fixed measure describing the whole being observed. Fortunately this is infrequently the case
population (population being a group of people, in communication research, although the research process
things, animals, phenomena that share common can sometimes disrupt the very phenomenon that is being
characteristics.) A statistic is a characteristic of a studied. The above examples point out the advantages of
sample, a portion of the target population. studying only a limited number of cases and generalizing
2. A parameter is a fixed, unknown numerical value, to the others. But there are also problems introduced by
while the statistic is a known number and a variable generalization.
which depends on the portion of the population. One problem lies in generalizing from a limited set
3. Sample statistic and population parameters have of observations to the larger set, when the limited set is not
different statistical notations. representative of the larger set. A sip of wine from a bottle
4. Both are similar yet different measures. The first which has been exposed to heat and sunlight would provide
one describes the whole population, while the second a taste experience which might not be representative
describes a part of the population. of an entire production run. To interview only middle-
class males about their family communication patterns
20.10.5 Limitation of Statistic to generalize the
will yield an inaccurate picture of the communication
estimation for Population
patterns of the entire population. To generalize from any
Why do we generalize? Probably the best reason we can sample which is not representative will usually result in an
give is that it is efficient. It saves us a lot of time, effort, incorrect characterization of the population.
and money. Look at the examples above in the light of
efficiency. Perhaps political pollsters would really like to 20.10.6 Sampling Distribution
Page 258 Inferential Statistics chapter 20

If random samples of certain size are taken from the from a non-normal population:
universe and statistics for each sample are computed, viz.
mean median, standard deviation etc. and then they are
presented in the form of frequency distribution, such type
of distribution is termed as sampling distribution of the
statistics.
For example, if 10 samples of size 50 are taken form
a universe of 5000 persons and average income (mean)
of workers in each sample is calculated, then frequency
distribution of these computed mean would be termed as
sampling distribution of mean. In the same way frequency
distribution of standard deviation of the 10 samples
would be termed as sampling distribution of the standard
deviation.
If all possible samples of a particular size are

Note
taken from the population then the mean of the sampling One can notice that distribution of x tends to be normal
distribution of means would be equal to the mean of the even though the population is non-normal.
population.

Note
In practice, we can apply the central limit theorem when
20.10.7 Relationship between population, sample n is equal or more than 30.
and sampling distributions Let us consider the graphs of probability density
In statistical analysis, we are not usually interested in the functions of 3 populations distributions and their sampling
characteristics of a particular sample. More often, we are distributions for n=2, 5, 30 in figure.
interested in estimating the characteristics of the population
from which the sample was drawn. Whenever we wish to 20.11.1 Features of Central Limit Theorem
make statements about the characteristics of a population, The main features of Central Limit Theorem are as follows-
based on the characteristics of a sample, we must rely on 1. This theorem discusses about the relationship
the logic of statistical inference. In particular, we must between population distribution and sampling
employ the concept of sampling distributions. Indeed, distribution.
the logic of inferential statistics is based largely on the 2. Sampling distribution, in case of adequately large
concept of sampling distributions. A sampling distribution samples, is similar to normal distribution. Increase
is the theoretical distribution of a sample statistic that in the size of large samples, sampling distribution
would be obtained from a large number of random will be very close to normal distribution.
samples of equal size from a population. Consequently, 3. This theorem is always applicable to large size
the sampling distribution serves as a statistical “bridge” sampling distribution, irrespective of any form
between a known sample and the unknown population. of population distribution, in other words, even if
Sample statistics, such as the sample mean and variance, population distribution is asymmetrical, bi-modal or
are used to provide estimates of corresponding population discrete random variable or continuous.
parameters, such as the population mean and variance. 4. In case of moderately, asymmetrical distribution or
single modal universe distribution, if relatively small
20.11 central limit theorem samples are randomly drawn their sample-distribution
If a universe or population has mean µ and a finite will also tend towards normal distribution.
standard deviation σ , then the distribution of the sample 5. Central-limit theorem is a wide theorem. It is not
means approaches a Normal distribution with a mean µ limited to sampling distribution of means only. This
and standard deviation s/ n as the sample size increases, rule is also applicable in the distribution of median,
where n is the sample size. partition values, proportion, standard deviation etc.,
It permits us to use sample statistics for the purpose which are also important statistics (except Range).
of making inferences about population parameters without 6. On account of its theoretical and practical utility,
having any knowledge about the shape of the frequency this theorem is most vital and useful for statistical
distribution of that population. inferences and decision-making. On the basis of
The following figure gives the distribution of x this theorem, suitable estimation of population,
chapter 20 Inferential Statistics Page 259

parameters found within the interval of specific area related factor. On account of this theorem,
confidence limits determined with the help of statistic normal distribution occupies an important place in
by using critical values and normal distribution probability theorem as well as in sampling principles.

20.12 Statistical significance likely to occur randomly or by chance but is instead likely
Statistical significance refers to the claim that a result to be attributable to a specific cause. Having statistical
from data generated by testing or experimentation is not significance is important for academic disciplines or
practitioners that rely heavily on analysing data and
Page 260 Inferential Statistics chapter 20

research, such as economics, finance, investing, medicine, 2. Hypothesis testing, i.e., to test some hypothesis
physics, and biology. about parent population from which the sample is
Statistical significance can be considered strong or drawn.
weak. When analysing a data set and doing the necessary In both these cases, the particular problem at hand
tests to discern whether one or more variables have an is structured in such a manner that inferences about
effect on an outcome, strong statistical significance helps relevant population values can be drawn from sample
support the fact that the results are real and not caused data.
by luck or chance. Simply stated, if a p -value is small then
the result is considered more reliable.
Problems arise in tests of statistical significance
because researchers are usually working with samples of 20.14 Hypothesis testing
larger populations and not the populations themselves.
As a result, the samples must be representative of the 20.14.1 HYPOTHESIS
population, so the data contained in the sample must Hypothesis basically is a statement of belief which is
not be biased in any way. In most sciences, including to be tested. According to Prof. Morris Hamburg, “a
economics, statistical significance is relevant if a claim can hypothesis in statistics is simply a quantitative statement
be made at a level of 95% (or sometimes 99%). about a population. It is an assumption that we make
about a population parameter.” Palmer O. Johnson has
aptly described hypothesis as “islands in the uncharted
seas of thought to be used as bases for consideration and
20.13 Statistical Inference
recuperation as we advance into the unknown.”
Statistical inference is the process through which
Definition:
inferences about a population are made based on certain
statistics calculated from a sample of data drawn from Different scholars have defined hypothesis in following
that population. Statistical inference is the process that words:
involves using the limited information obtained from a 1. ‘The hypothesis is a tentative generalization, the
sample to draw conclusions about a larger set of data, validity of which remains to be tested.’ -Lundberg
which is the population. Obviously, a sample is not drawn 2. ‘The hypothesis.....is a proposition which can be put
and analysed for its own sake. Instead, the objective of to test to determine validity.’ -Goode & Hatt
sampling is to use the information obtained from the sample 3. ‘.....provisional central idea which becomes the
to learn about the population from which it is taken. For basis for fruiful investigation is known as a working
example, if a battery manufacturer develops a new battery hypothesis.’ -P.V. Young
and uses a sample of batteries to obtain information about
20.14.2 Sampling Error
their average life, then the manufacturer is looking to
estimate the average life of all the batteries that he may The population or universe is studied on the basis of a
produce rather than just obtaining the average life of only sample selected randomly from the same population. It is
the sampled batteries. Similarly, when an NGO samples a not necessary that the conclusion derived from the sample
group of people to ask if they favour the Indo-American represents the population. To judge the reliability of
nuclear deal, the idea is to learn what percentage of the sample statistic sampling errors are calculated. Sometimes
whole population is in favour of the deal rather than what two samples taken from the same population may
percentage of the sampled population is. contradict the results. Therefore the difference between
Statistical Inference is an important branch of sampling result and population sampling result is known
modern statistics which provides the methods and as ‘Sampling Error’. To calculate sampling error, we
techniques of taking intellectual and knowledgeable calculate standard error on the basis of standard deviation
decisions under the situation of uncertainties and to test and probable maximum and minimum confidential limits
the correctness of these decisions by using the theory are ascertained. In a sampling distribution ! 1, ! 1.96 ,
of probability and theoretical distribution. Generally, ! 2.58 , ! 3 are the critical values which when multiplied
statistical inference treats two different classes of problems- by standard error, we get confidential limits at 68.26%,
1. Estimation, i.e., to use the ‘statistics’ obtained from 95%, 99% and 99.73% respectively.
the sample as estimate of the unknown ‘parameter’
of the population from which the sample is drawn. 20.14.3 Procedure of Testing Hypothesis
chapter 20 Inferential Statistics Page 261

To test the hypothesis following procedure is adopted: hypothesis are 5% or it can also be inferred with 95%
confidence that null hypothesis is true. The level of
1. Formulation of Hypothesis
significance is symbolised by α (alpha).
Generally, to test, we can formulate following hypothesis: 3. Determination of a suitable test statistic : The third
(a) Null Hypothesis : The null hypothesis is denoted step in the procedure of testing the hypothesis is
by ‘H0 ’ and used as an important tool for testing to determine a test statistic. A null hypothesis is
the significance of difference. The null hypothesis accepted or rejected on the basis of test statistic.
assumes that there is no significant difference in the This step involves the selection of an appropriate
sample and population in a specific matter under probability distribution for a specific test, that is, for
consideration. As stated by R.A. Fisher, “Null large variable Z test, for small variable t test and in
hypothesis is the hypothesis which is tested for some specific cases F test of χ2 test can be used.
possible rejection under the assumption that is true”. Example : Test statistics to be used for different tests
The null hypothesis is based on the legal concept that
Test Statistic Used for Test
a man is innocent until he is proved guilty. Mainly,
the null hypothesis asserts that the difference is (i) Z -test For test of Hypothesis involving
accidental and unimportant arising out of sampling large sample i.e. > 30 .
variations. For example, if it has to be tested that (ii) t -test For test of Hypothesis involving
the average life of T.V. sets produced by company A small sample i.e. # 30 .
is more than the average life of T.V. sets produced
(iii) x2 - test For testing the discrepency
by company B, our hypothesis (null) will be that the
between observed frequencies and
mean life of T.V. sets of both the companies is same
expected frequencies. without any
and there is no significant difference i.e. µ1 = µ2 .
reference to population parameter.
(b) Alternative Hypothesis : When we reject the null
hypothesis, the conclusion we accept is called the (iv) F -test For testing the sample variances.
alternative hypothesis and symbolised H1 . The 4. Determination of critical region : A sample space
alternative hypothesis specifies that the difference for the purpose of testing the null hypothesis is
between sample statistic and population parameter divided into two parts- Acceptance Region and
is significant not arising accidentally but because of Rejection Region. The null hypothesis is accepted
other reasons. For example, the null hypothesis is if the value of sample statistic is within acceptance
H0 : µ = 200 i.e. (the null hypothesis is that region and rejected if the value of sample statistic
the population mean is equal to 200) is under the rejection region. The basis of division
Now, there can be three possible alternative is level of significance and alternative hypothesis.
hypothesis: The alternative hypothesis can be one tailed and
(i) H1 : µ ! 200 i.e. the population mean is not two tailed. At 5% (α = 0.05) level of significance the
equal to 200. two tailed test will move towards right hand side,
(ii) H1 : µ > 200 i.e. the population mean is i.e. (α/2 = 0.025) being µ + 1.96 σ and similarly less
greater than 200. towards left hand side being µ - 1.96 σ . The critical
(iii) H1 : µ < 200 i.e. the population mean is less region will be as follows :
than 200. Z < − 1.96 or Z > + 1.96
2. Determination of a suitable level of significance : The area between - 1.96 and + 1.96 is known as
After setting up of hypothesis, the next step is to acceptance region.
check the validity of hypothesis at a certain level On the basis of normal distribution the critical values
of significance. The rejection or acceptance of null at various levels of significance are presented in the
hypothesis depends on the significance level adopted following table:
by the researcher. The significance level is generally Level of Two Right Left
expressed in terms of percentage and there is no Significance α Tail Tail Tail
hard and fast rule for a specific level of significance
.10 (10%) ! 1.645 1.28 - 1.28
but in practice 0.01 or 0.05 i.e. 1% or 5% levels of
significance are use to test the hypothesis. When 5% .05 (5%) ! 1.96 1.645 - 1.645
level of significance is adopted to test the hypothesis, .01 (1%) ! 2.58 2.33 - 2.33
it will imply that the chances of rejecting the null 5. Performing the necessary computation : After
Page 262 Inferential Statistics chapter 20

following the above steps, the next step is to perform Nature It is the It is hypothesis
various computations necessarily required for the test hypothesis that that the researcher
which include testing sample statistic and standard the researcher tries to prove.
error of testing statistic as well as critical values. tries to disprove.
6. Drawing conclusions and making decision : Drawing
statistical conclusions and making decisions is the Result The result of the The result of
final step which refers to the acceptance or rejection null hypothesis an alternative
of null hypothesis. The decision is made on the basis indicates no hypothesis causes
of the comparison of computed value of test statistic changes in changes in opinions
with the values in critical region. If the computed opinions or and actions.
value falls in the region of acceptance, we accept the actions.
null hypothesis and if it falls in the rejection region Significance of If the null If an alternative
then we reject the null hypothesis. The rejection of data hypothesis is hypothesis is
null hypothesis automatically accepts the alternative accepted, the accepted, the
hypothesis. results of the results of the study
study become become significant.
20.14.4 Difference between Null Hypothesis and insignificant.
Alternative Hypothesis Acceptance If the p -value If the p -value is
Null Hypothesis vs Alternative Hypothesis is greater than smaller than the
the level of level of significance,
Basis of Null Hypothesis Alternative significance, the an alternative
comparison Hypothesis null hypothesis is hypothesis is
Definition The null An alternative accepted. accepted.
hypothesis is a hypothesis is a Importance The null Alternative
general statement statement that hypothesis allows hypothesis are
that states describes that there the acceptance of relationship
that there is is a relationship correct existing between two
no relationship between two theories and variables, resulting
between two selected variables the consistency in new improved
phenomenons in a study. of multiple theories.
u n d e r experiments.
consideration
or that there is
20.14.5 Some Examples of developing hypothesis
no association
between two We discuss now some examples to demonstrate the
groups. setting up of the null and alternate hypothesis. It may be
mentioned that generally there are three situations that
Symbol It is denoted by It is denoted by H1
frequently employ hypothesis-testing procedures:
H0 . or Ha .
1. For testing the validity of a certain claim, such as
Mathematical It is followed by It is followed by a manufacturer’s claim that his production line
expression ‘equals to’ sign. not equals to, ‘less operation is designed to fill laundry detergent powder
than’ or ‘greater with a mean weight of 3 kg.
than’ sign. 2. For testing or research hypothesis where, for example,
Observation The null The alternative a new type of drug is developed to reduce the high
hypothesis hypothesis believes blood pressure is put to test.
believes that that the results are 3. Testing for decision making so that one decision is
the results are observed as a result to be made if the null hypothesis is rejected and
observed as a of some real causes. another one when it is not rejected.
result of chance.
chapter 20 Inferential Statistics Page 263

EXAMPLE 20.8
Suppose a pizza restaurant claims its average pizza delivery
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time is 30 minutes. But you believe that the restaurant
takes more than 30 minutes. Set up the appropriate
hypotheses. EXAMPLE 20.12
A coin sorting machine with a bank can sort, on an


Sol :
average, 22,800 coins in a day with a standard deviation
of 280 coins. A new model of the machine is out in the

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market and the bank manager is considering the old one
to be replaced. The bank manager proposes to replace
the old one with the new model if only the later sorts
out larger number of coins than the former. For this, the
EXAMPLE 20.9 manager employs the new sorter for a period of 4 weeks
A study claims that the mean income of the senior and finds that the average number of coins sorted per day
executives in the manufacturing sector in an industrial is 23,540 with almost same standard deviation as the old
state is <645,000 per annum. To test this claim, it is one. Write the appropriate hypothesis for testing.
decided to take a sample of 25 executives and obtain their

Sol :
mean income. Set up the appropriate hypotheses.


Sol :
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EXAMPLE 20.13
A company is making brake system for cars. Using this
EXAMPLE 20.10 brake system, a car running at a speed of 40 kmph comes
A researcher contends that the mean daily sleep of young to a half after covering a distance of 15 feet on the average.
babies is 15 hours. A sample of 28 babies is taken randomly Recently, the company has developed power brakes which,
and their average sleep is found to be 13 hours and 48 when applied one hundred times to cars running at 40
minutes, with a standard deviation of 80 minutes. Set up kmph, indicated that the average distance covered is 13
the null and the alternate hypotheses to test his claim. feet before stopping. To test as to if the power brake
system is better, set up the appropriate hypotheses.


Sol :


Sol :

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EXAMPLE 20.11
A company administered an intelligence test to all its EXAMPLE 20.14
employees for a long period of time. For all the 80,000 ICICI bank is experiencing an era of expansion. In
employees, the mean score was found to be 75 and the considering whether or not to open a branch in an area,
standard deviation 12. A researcher wishes to study the it considers the proportion of business coming from the
theory that the top line supervisors of the company are area. For this purpose, it takes sample of the business
more intelligent than the average. For that, a sample of conducted on different days and uses the cut-off point as
20 supervisors is chosen randomly and their mean score 5 percent. The bank is willing to open branch as soon as a
is found. To test the theory, what should be the null and 5 percent business is seen to be coming from a particular
alternate hypotheses? area and is unwilling to do so if the business is less than
5 percent. Formulate the appropriate null and alternate


Sol :
hypothesis for the decision.


Sol :
Page 264 Inferential Statistics chapter 20

Click : www.nodia.study/lema/tm114 EXAMPLE 20.18

SBI Life insurance company estimate that policy
documents are dispatched from the head office within
12 days. Company wants to test its claim. It gathers
EXAMPLE 20.15 information from 10 investors regarding the number of
ICICI bank is experiencing an era of expansion. In days taken by the insurance company to dispatch the
considering whether or not to open a branch in an area, policy documents and arrive at the following data :
it considers the proportion of business coming from the
area. For this purpose, it takes sample of the business 12 14 13 12 13 12 13 14 11 12
conducted on different days and uses the cut-off point as Formulate suitable null and alternative hypotheses.
5 percent, so that if 5 percent or more business is coming


Sol :
from a particular area, it shall open a branch there.
Formulate the appropriate null and alternate hypothesis

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for the decision.


Sol :

Click : www.nodia.study/lema/tm115 EXAMPLE 20.19

Ten cartons are taken at random from an automatic
packing machine. The mean net weight of the 10 cartons is
23.6 kg. and standard deviation is 0.30 kg. Does the sample
EXAMPLE 20.16 mean differ significantly from the intended weight of 24
From the records of a hospital, it is found that of the last kg.? Formulate suitable null and alternative hypotheses.
1,000 births, 580 were male babies while the remaining


Sol :
were females. Does this information contradict (i) the
hypothesis that males and females births are equally

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likely, and (ii) the contention that the male births are
more likely than the female births? Set up appropriate
null and alternate hypotheses to test these.


Sol :
EXAMPLE 20.20
An automobile tyre manufacturer claims that the average
Click : www.nodia.study/lema/tm116 life of a particular grade of tyre is more than 20,000 km
when used under normal conditions. A random sample of
16 tyres was tested and a mean and standard deviation
of 22,000 km and 5000 km, respectively were computed.
EXAMPLE 20.17 Formulate suitable null and alternative hypotheses.
A soft drink manufacturing company makes a new kind of


Sol :
soft drink. Daily sales of the new soft drink, in a city, is
assumed to be distributed with mean sales of < 40,000 and

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standard deviation of <2,500 per day. The Advertising
Manager of the company considers placing advertisements
in local TV Channels. He does this on 10 random days and
20.14.6 Type I and Type II Errors in Hypothesis
tests to see whether or not sales has increased. Formulate
Testing
suitable null and alternative hypotheses.
Since the decision to reject or accept a hypothesis is


Sol :
based on sample data, therefore there is a possibility of an
incorrect decision or error. A decision maker may commit
Click : www.nodia.study/lema/tm117 two types of errors while testing a null hypothesis. The
two types of errors that can be made in any hypothesis
testing are as follows:
Type I Errors (α) : It refers to the rejection of a null
chapter 20 Inferential Statistics Page 265

hypothesis when it is true. The type I error is symbolized Two Tailed Test showing Acceptance and Rejection Region at 5% level
of Significance.
by α (alpha).
Type II Errors (β) : Accepting a null hypothesis when it One Tailed Test
is false is called type II error which is symbolized by β
In two tailed test the rejection region is on both the sides of
(beta).
a sampling distribution but in one tailed test the rejection
In the test of a null hypothesis the possible decisions
region is located only at one end of the distribution i.e.
are shown in the following table:
either at the left hand side or at right hand side. As
Condition Decision defined by M.G. Kendall and W.R. Buckland one tailed
or one sided test is a test of hypothesis for which region of
Accept H0 Reject H0
rejection is wholly located at one end of the distribution
H0 is true Correct decision Incorrect decision of the test statistic, that is to say, if the statistic is ‘t ’
(Type I error) the region is based on values for which t > some t1 or for
H0 is false Incorrect decision Correct decision which t < some t but not both.
(Type II error)
In the form of probability :

α = P (Type I error) = P (Reject H0 /H0 true)

β = P (Type II error) = P (Accept H0 /H0 false)

Two Tailed and One Tailed Tests of Hypothesis

An alternative hypothesis can be two tailed or one tailed.
For example : we have to test that the average weight of
the students in a college is 50 kg, then
H0 : µ = 50 kg
Ha : µ ! 50 kg (two tailed alternative) or
Ha : µ > 50 kg or µ < 50 kg (one tailed alternative)
Two Tailed Test: Left Tailed Test with the Rejection Region on the left side at 5% level
of Significance.
It is a test of hypothesis in which the null hypothesis is
rejected if the sample value is significantly higher or lower For example : if our H0 : µ = 50 kg but Ha : µ < 50 kg
than the hypothesized value of the population parameter. then the whole rejection region will be located at left end
The two tail test mainly includes two rejection areas side and is known as ‘Left Tail or Lower Tail Test’. The
at both the ends of sampling distribution. the rejection one tail test has been explained in the above figure.
region is halved for both the ends so that the test becomes If H0 : µ = 50 kg but Ha is µ > 50 kg then the
symmetrical. whole rejection region will be located on right end side
Example : which is known as ‘Right Tail or Upper Tail Test’. It has
The rejection region in two tailed test at 5% level of been explained in the following figure at 1% (α = 0.01)
significance on both the ends will be α2 (0.025 + 0.025) and level of significance.
acceptance region on both the sides will be 0.475 + 0.0475
i.e. 95%. It can be understood from the following figure:
Page 266 Inferential Statistics chapter 20

Right Tailed Test with the Rejection Region on the right side at 1% level The degrees of freedom in a statistical calculation represent
of Significance.
how many values involved in a calculation have the
On the basis of normal curve the value of Z at freedom to vary. The degrees of freedom can be calculated
various levels of significance will be as follows: to help ensure the statistical validity of chi-square tests, t
-tests and even the more advanced t -tests. These tests are
Sign. Type of Test Value of Z at levels of significance commonly used to compare observed data with data that
of Ha 0.01 or 0.05 or 0.10 or would be expected to be obtained according to a specific
(1%) (5%) (10%) hypothesis.
! Two Tail ! 2.58 ! 1.96 ! 1.645 Degrees of freedom are the number of independent
values that a statistical analysis can estimate. You can
> Right Tail ! 2.33 + 1.645 + 1.282
also think of it as the number of values that are free to
< Left Tail - 2.33 - 1.645 - 1.282 vary as you estimate parameters.
Example :
20.14.7 Power of the Test 1. One unbiased coin is tossed at random for 30 times.
There are two possibilities called variables - Head
Power of the Test is the probability of rejecting a false null
or Tail. If the no. of head is 20, the no. of tail is
hypothesis. It can be calculated as follows:
automatically fixed i.e. 10. This means that between
Power of the Test = 1 − Probability of Type II error.
two variables, you can freely choose the number for
20.14.8 Degrees of freedom one variable only. In other words, there is only one
degree of freedom when there are two variables.
Degree of freedom is a number which tells us how many of
2. Two unbiased coins are simultaneously tossed at
the values (or numbers) may be independently (or freely)
random for 30 times. There are three variable - 1. Two
chosen.
Heads, 2. Two Tails and 3. One Head and one Tail
Degree of freedom means freedom to vary. Suppose
[Note: since the coins are identical, the possibilities
we have 6 scores and the mean of these is 10. The sixth
(i.e. Head of A and tail B, and Head of B and tail
score makes adjustment in the variation in the variation
of A) are not distinguishable and hence these two
brought about by the first 5 scores and assures that the
possibilities are considered as one possibility]. If the
mean will be 10. For example suppose we have 5 scores as
no. of two heads 12 times and two tails 7 times, the
9, 12, 18, 16 and 4. In order for the mean to be equal to
no. of one head and one tail is automatically fixed
10, the sixth score must be = 1. In another series of 2, 8,
i.e. 11 times (i.e. 30-12-7). This means between three
4, 6 and 10, the sixth score must this time be = 30 if the
variables, your freely choose the number for two
mean of the six scores is to be 10. In other way suppose
variables only. In other words, there are two degree
the 2nd score we do not know but the other scores are 3,
of freedom when there are three variables.
9, 15, 13 and 15, then to make the mean = 10 the 2nd one
Calculation :
must be 5 (this number 5 is determined but other may
The degrees of freedom is calculated as follows:
vary in 5 ways) and so on. In each of these cases we have 5
degrees of freedom. (or 5 degrees of freedom to vary). Five Case Formula for d.f. Example
of the scores in the series may have any value (5 ways to
In case of one Sample size 50 − 1 = 49
vary) but the size of the sixth one is determined because
sample [say size (n) - 1
the mean in each case is 10.
(n) = 50 ]
Suppose we take a case of 24 scores. First we
compute the mean and then we take the deviation of each In case of two (n1 − 1) + (n2 − 1) (50 − 1) + (60 − 1)
score from the mean and compute the standard deviation samples [say or n1 + n2 − 2 = 108
of the sample. In computing this mean we have use up n1 = 50 1 , n2 = 60] or 50 + 60 − 2
1 degree of freedom. We had 24 degrees of freedom of = 108
begin with, but now after computing the mean we have
24 − 1 = 23 degrees of freedom only.
In general if we have one sample of n number with EXAMPLE 20.21
a specified mean, then we have (n - 1) df. But if we have Evaluate the degree of freedom for a given sample or
two samples of size n1 and n2 with specified means x 1 and sequence 3, 6, 2, 8, 4, 2, 9, 5, 7, 12
x 2 then we have (n1 + n2 − 2) degree of freedom.


Sol :
Definition :
chapter 20 Inferential Statistics Page 267

Click : www.nodia.study/lema/tm121 upon the problem under study.

20.15.1 Conditions for the Use of t -test

t -test is used when:
EXAMPLE 20.22
1. the sample size is 30 or less
Determine the Degree of Freedom for the sequence given
2. the variance of the population is unknown
below:
3. the sample is random sample
x = 12, 15, 17, 25, 19, 26, 35, 46 4. the population is normal and selection of items is
y = 18, 32, 21, 43, 22, 11 independent.


Sol :
20.15.2 Applications of t -test
t -test is used in a wide number of situations but the
Click : www.nodia.study/lema/tm122 important applications of t -test are:
1. To test if the sample mean (x ) differs significantly
from the hypothetical value of population mean µ 0 .
2. To test the significance of difference between two
EXAMPLE 20.23 sample means.
A sample of 10 copper wires taken from factory has a 3. To test the significance of observed sample correlation
mean breaking strength of 46.5 kg with standard deviation coefficient.
of 2.5 kg. Test the claim of factory that mean breaking 4. To test the significance of observed regression
strength of wires is 50 kg. Evaluate the degree of freedom. coefficient.


Sol :
20.15.3 Use of t Table
The t -distribution table is a table that shows the critical
Click : www.nodia.study/lema/tm123 values of the t distribution. To use the t -distribution
table, you only need to know three values:
1. The degrees of freedom of the t -test
EXAMPLE 20.24 2. The number of tails of the t -test (one-tailed or two-
A random sample of 20 daily workers of Rajasthan was tailed)
found to have average daily earning of < 44 with sample 3. The alpha level (Level of Significance) of the t -test
variance 900. Another sample of 20 daily workers from (common choices are 0.01, 0.05, and 0.10)
Bihar was found to earn on an average < 30 per day with The row represents the upper tail area, while the
sample variance 400. Evaluate the degree of freedom. column represents the degrees of freedom. The body
contains the t values.


Sol : Note that for one-tailed distribution the values are
for α and for two-tailed distribution values are for α/2 .
Let’s say n = 3 , the df = 3 − 1 = 2 . If significance
Click : www.nodia.study/lema/tm124 level α is 0.10 then α/2 = 0.05 . From the table we can
observe that t -value = 2.920 .

20.15 t -test
t -test is another statistical test introduced in 1908 by
W.S. Gosset (under his pen name ‘Student’) in which the
test statistic follows student’s t -distribution. It is used to
determine whether the two sets of data differ significantly
and generally employed when the sample size is small.
The basic conditions for applying t -test are that sample
observations should be random, independent and parent
population from which the sample is drawn should be
normal. In addition of these, some conditions depend
Page 268 Inferential Statistics chapter 20

30 1.31 1.697 2.042 2.457 2.75 3.385 3.646

60 1.296 1.671 2.042 2.39 2.66 3.232 3.46
120 1.289 1.658 1.98 2.358 2.617 3.16 3.373
1000 1.282 1.646 1.962 2.33 2.581 3.098 3.3
Infinity 1.282 1.645 1.96 2.326 2.576 3.091 3.291

20.16 One Sample t -Test

t -test is a powerful test, for testing the significance of
difference between sample mean (x ) and hypothetical
P value of population mean µ 0 . In other words, t -test is used
to test whether the mean of sample drawn from a normal
one-tail 0.1 0.05 0.025 0.01 0.005 0.001 0.0005
population deviates significantly from the hypothetical
two-tails 0.2 0.1 0.05 0.02 0.01 0.002 0.001
value µ 0 . Before going further, we list the assumptions of
DF t -test of single mean as follows:
1 3.078 6.314 12.706 31.821 63.656 318.289 636.578 1. The parent population from which the sample is
2 1.886 2.92 4.303 6.965 9.925 22.328 31.6 drawn is normal.
3 1.638 2.353 3.182 4.541 5.841 10.214 12.924 2. The sample observations are random and independent.
3. The population standard deviation σ is unknown.
4 1.533 2.132 2.776 3.747 4.604 7.173 8.61
In this application of t -test, the null and alternate
5 1.476 2.015 2.571 3.365 4.032 5.894 6.869
hypothesis can be written as
6 1.44 1.943 2.447 3.143 3.707 5.208 5.959 H0 : There is no significant difference between the
7 1.415 1.895 2.365 2.998 3.499 4.785 5.408 sample mean x and population mean µ 0 or the sample
8 1.397 1.86 2.306 2.896 3.355 4.501 5.041 has been drawn from population with mean µ 0 .
9 1.383 1.833 2.262 2.821 3.25 4.297 4.781 H1 : There is a significant difference between the
sample mean x and population mean µ 0 or the sample
10 1.372 1.812 2.228 2.764 3.169 4.144 4.587
has not been drawn from population with mean µ 0 .
11 1.363 1.796 2.201 2.718 3.106 4.025 4.437
The test statistic for a One Sample t -Test is denoted
12 1.356 1.782 2.179 2.681 3.055 3.93 4.318 t , which is calculated using the following formula:
13 1.35 1.771 2.16 2.65 3.012 3.852 4.221 x − µ0
t =
14 1.345 1.761 2.145 2.624 2.977 3.787 4.14 sx
15 1.341 1.753 2.131 2.602 2.947 3.733 4.073 where, sx = s
16 1.337 1.746 2.12 2.583 2.921 3.686 4.015
n
where, µ 0 = The test value - the proposed constant for
17 1.333 1.74 2.11 2.567 2.898 3.646 3.965
the population mean
18 1.33 1.734 2.101 2.552 2.878 3.61 3.922
19 1.328 1.729 2.093 2.539 2.861 3.579 3.883
x = Sample mean

20 1.325 1.725 2.086 2.528 2.845 3.552 3.85

n = Sample size (i.e., number of observations)
21 1.323 1.721 2.08 2.518 2.831 3.527 3.819 s = Sample standard deviation
22 1.321 1.717 2.074 2.508 2.819 3.505 3.792 sx = Estimated standard error of the mean
23 1.319 1.714 2.069 2.5 2.807 3.485 3.768 (s/sqrt (n))
24 1.318 1.711 2.064 2.492 2.797 3.467 3.745 Then the calculated value of test statistic t is
compared with the tabulated value of t for (n - 1) degrees
25 1.316 1.708 2.06 2.485 2.787 3.45 3.725
of freedom at certain specified level of significance and
26 1.315 1.706 2.056 2.479 2.779 3.435 3.707
conclusion is made according to the following:
27 1.314 1.703 2.052 2.473 2.771 3.421 3.689 If magnitude of calculated value t is less than
28 1.313 1.701 2.048 2.467 2.763 3.408 3.674 the tabulated value, the null hypothesis is accepted and
29 1.311 1.699 2.045 2.462 2.756 3.396 3.66 if t is more than equal to the tabulated value, the
chapter 20 Inferential Statistics Page 269

null hypothesis H0 is rejected at the specified level of EXAMPLE 20.28

significance. A sample of 10 copper wires taken from factory has a mean
breaking strength of 46.5 kg with standard deviation of 2.5
kg. Test the claim of factory that mean breaking strength
of wires is 50 kg. Value of t for 9 degree of freedom at 5%
EXAMPLE 20.25
level is 2.262.
A fertiliser mixing machine is set to give 4 kg of nitrate
for every quintal bag of fertilizers. Five 100 kg bags are

Sol :
examined. The percentages of nitrate are : 2, 6, 4, 3, 1. Is
there reason to believe that the machine is defective?
For this test, use the following extract from t -table: Click : www.nodia.study/lema/tm128
Value of t (Level of Significance)
df One tail Test Two tail Test EXAMPLE 20.29
0.05 0.01 0.05 0.01 A machine produces insulting washers for electrical devices
4 2.132 3.747 of average thickness of 0.025 cm. A random sample of
10 washers was taken and have an average thickness of
5 2.015 3.365
0.024 cm with a standard deviation of 0.002 cm. Test
6 1.943 3.143 significance of the deviation. Value of t for 9 degree of
freedom at 5% level is 2.262.


Sol :


Sol :

Click : www.nodia.study/lema/tm125
Click : www.nodia.study/lema/tm129

EXAMPLE 20.26
A medicine is packed in bags by a machine. A random EXAMPLE 20.30
sample of 10 bags were drawn and their contents are found Ten cartons are taken at random from an automatic
to weigh (in kg) as follows: 40, 45, 48, 50, 52, 55, 45, 52, packing machine. The mean net weight of the 10 cartons
63, 40. Test if the average packing can be taken to be 50 is 11.8 kg. and standard deviation is 0.15 kg. Does the
kg. [Given : t90.05 = 1.833 ] sample mean differ significantly from the intended weight
of 12 kg.? You are given that for v = 9 , t0.05 = 2.26 .


Sol :


Sol :

Click : www.nodia.study/lema/tm126
Click : www.nodia.study/lema/tm130

EXAMPLE 20.27
From a college 6 students are selected on random sampling EXAMPLE 20.31
basis and their marks in Hindi are found to be 63, 63, 64, A bulb producing factory claims that his bulbs have a
66, 60 and 68. From these facts do you agree with this mean life of 20 months. A random sample of 8 such bulbs
idea that the average marks in Hindi of the college are 66? gave the following values:
Life of bulbs (in months) : 24, 22, 27, 18, 20, 24, 22, 19


Sol :
Test the factory claim at 5% level of significance, Value of
t for 7 d.f. at 5% level of significance is 2.36.

Click : www.nodia.study/lema/tm127

Sol :

Click : www.nodia.study/lema/tm131
Page 270 Inferential Statistics chapter 20

EXAMPLE 20.32 EXAMPLE 20.36

Certain grain is packed into bags by a machine. A random The average breaking strength of steel rods is specified
sample of 10 bags is drawn and their contents are found to be 18.5 thousand kg. For this a sample of 14 rods was
to weight (in kg.) as follows: tested. The mean and standard deviation obtained were
17.85 and 1.955, respectively. Test the significance of the
50 49 52 41 45 48 46 46 49 45 deviation.
Test if the average packing can be taken to be 50 kg.

Sol :

Sol :
Click : www.nodia.study/lema/tm136
Click : www.nodia.study/lema/tm132
EXAMPLE 20.37
An automobile tyre manufacturer claims that the average
EXAMPLE 20.33 life of a particular grade of tyre is more than 20,000 km
A random sample of size 16 has 53 as mean. The sum of when used under normal conditions. A random sample of
squares of deviations from mean is 150. Can this sample 16 tyres was tested and a mean and standard deviation
be regarded as taken from the population having 56 as of 22,000 km and 5000 km, respectively were computed.
mean? (t15 = 2.13) Assuming the life of the tyres in km to be approximately


Sol : normally distributed, decide whether the manufacturer’s
claim is valid at 1 % level significance.


Sol :
Click : www.nodia.study/lema/tm133
Click : www.nodia.study/lema/tm137
EXAMPLE 20.34
The mean weekly sales of a four wheeler was 50 units
per agency in 20 agencies. After an advertising campaign, EXAMPLE 20.38
the mean weekly sales increased to 55 units per agency A private insurance company estimate that policy
with standard deviation of 10 units. Test whether the documents are dispatched from the head office within
advertising campaign was successful? 12 days. Company wants to test its claim. It gathers


Sol : information from 10 investors regarding the number of
days taken by the insurance company to dispatch the
policy documents and arrive at the following data :
Click : www.nodia.study/lema/tm134 11 14 13 12 13 12 13 14 11 12
Can the company justify its claim at the significance level
of 0.05.
EXAMPLE 20.35
A company manufactures steel tubes of 2 cms internal

Sol :
diameter. A sample of 10 tubes was taken and their mean
internal diameter was found to be 2.01 cm and variance
0.004 cm. Is there any significant difference between Click : www.nodia.study/lema/tm138
sample mean and population mean?


Sol :
EXAMPLE 20.39
Ten individuals are chosen at random from a population
Click : www.nodia.study/lema/tm135 and their heights are found to be as under
63 63 66 67 68 69 70 70 71 71
chapter 20 Inferential Statistics Page 271

In the light of these data, discuss the suggestion that the Assuming the lives of the tyres in kms, to be approximately,
mean height of the population is 66 inches. normally distributed, decide whether the manufacturer’s
The table value of t for 9 d.f. at 5% level of significance product is as good as claimed.
is 2.262.

Sol :


Sol :

Click : www.nodia.study/lema/tm142
Click : www.nodia.study/lema/tm139
EXAMPLE 20.43
EXAMPLE 20.40 A random sample of 16 towns gives a mean population
Following results were obtained from a sample of 10 of 990 persons with a standard deviation of 20 persons.
baskets of mangoes: The estimator claims that the mean population is 1000
persons. It the sample not up to the standard claimed by
Mean weight of mango contents 490 gms. him. Test at (i) 5% and (ii) 1% levels of significance. Use
S.D. of mango content weights 9 gms. the following extract from the table of t -distribution.

Test the hypothesis that x = 490 gm is the mean of a Degrees of α -values

random sample which has been drawn from a population Freedom (v) 0.10 0.05 0.02 0.01
with mean of 500 gm.
For this test, use the following extract from t -table: 15 1.753 2.131 2.602 2.947
16 1.746 2.120 2.583 2.921


Sol :
17 1.740 2.110 2.567 2.898

Click : www.nodia.study/lema/tm140

Sol :

Click : www.nodia.study/lema/tm143
EXAMPLE 20.41
A company employs a large number of typists in its
head office. The company has developed a new training
EXAMPLE 20.44
programme for its typists and claims that it has increased
Realtor Godrej Real Estate took a random sample of 16
their typing speed by 15 words per minute. A random
homes in a prestigious suburb of Gurugram and found the
sample of 9 typists is taken and their speed observed. It is
average appraised market value to be $3,900,000, and
noticed that average increase has been (i) 10 (ii) 17 words
the standard deviation was $245,000. Test the hypothesis
a minute. The estimated standard deviation is 8 words per
that for all homes in the area, the mean appraised value
minute. Can it be concluded that the company has made
is $4,125,000 against the alternative that it is less than
a legitimate claim.
$4,125,000. Use the 5 % level of significance.


Sol :


Sol :

Click : www.nodia.study/lema/tm141 Click : www.nodia.study/lema/tm144

EXAMPLE 20.42
An automobile tyre manufacturer claims that the average
life of a particular grade of tyre is not less than 20,000 E X ERC I S E 20. 1
kms, when used under normal driving conditions. A
random sample of 16 tyres was tested and a mean and 1. The life time of electric bulbs for a random sample of
S.D. of 22,000 and 5000 kms, respectively, were computed. 10 bulbs from a large consignment of bulbs gave the
Page 272 Inferential Statistics chapter 20

following data : 6. A machine is set to cut metal plates to a length of

Item : 1 2 3 4 5 6 7 8 9 10 44.350 mm. The lengths of a random sample of 24
metal plates have a sample mean of 44.364 mm and a
Life 4.2 4.6 3.9 4.1 5.2 3.8 3.9 4.3 4.4 5.6
sample standard deviation of 0.019 mm. Is there any
in 000
hours : evidence that the machine is miscalibrated?
Discuss whether the average life time of the bulbs is Ans : There is sufficient evidence to conclude that
4000 hours. the machine is miscalibrated.
Ans : Average life time of the bulbs is 4000 hours.

7. A chemical plant is required to maintain ambient

sulfur levels in the working environment atmosphere
2. Prices of shares of a company on the different days of at an average level of no more than 12.50. The results
the month were found to be 66, 65, 69, 70, 69, 71, 70, of 15 randomly timed measurements of the sulfur
63, 64 and 68. Discuss whether the mean price of the level produced a sample mean of 14.82 and a sample
shares in the month is 65. standard deviation of 2.91. What is the evidence that
Ans : Mean price of the shares in the month is not the chemical plant is in violation of the working code?
< 65. Ans : There is sufficient evidence to conclude that
the chemical plant is in violation of the
working code.

3. The mean weekly sales of the chocolate bar in candy

stores was 146.3 bars per store. After an advertising
campaign the mean weekly sales in 22 stores for a 8. A company advertises that its electric motors provide
typical week increased to 153.7 and showed a standard an efficiency that is at least 25% higher than the
deviation of 17.2. Was the advertising campaign industry norm. A consumer interest group ran an
successful? experiment with a sample of 23 machines for which
Ans : Advertising campaign was successful in the increases in efficiency over the industry norm
promoting sales. had a sample mean of 22.8% and a sample standard
deviation of 8.72%. What evidence does the consumer
interest group have that the advertised claim is false?
Ans : There is not sufficient evidence to conclude
4. Godrej soap manufacturing company was distributing
that the advertised claim is false.
a particular brand of soap through a large number of
retail shops. Before a heavy advertisement campaign,
the mean sales per week per shop was 140 dozens.
After the campaign, a sample of 26 shops was taken 9. An experimenter randomly selects n = 16 batteries
and the mean sales was found to be 147 dozens from a production line and measures their voltages.
with standard deviation 16. Can you consider the An average 239.13 is obtained, with a sample standard
advertisement effective? deviation 2.80. Does this experiment provide sufficient
Ans : Advertisement is certainly effective in evidence for the experimenter to conclude that the
increasing the sales. average voltage of the batteries from the production
line is at least 238.5?
Ans : There is not sufficient evidence to conclude
that the average voltage of the batteries from
5. The average number of articles produced by two
the production line is at least 238.5.
machines per day are 150 and 100 with s = 18 . On
the basis of records of 14 day’s production, can you
regard both machines equally efficient at 1% level of
significance? 10. A company claims that its components have an
Ans : Both machines are not equally efficient at 1% average length of 82.50 mm. An experimenter tested
level of significance. this claim by measuring the lengths of a random
sample of 25 components. It was found that 82.40
chapter 20 Inferential Statistics Page 273

and 0.14. Use a hypothesis test to assess whether the necessary condition for the validity of t -test for difference
experimenter has sufficient evidence to conclude that of means. Therefore in practical problems if it is not
the average length of the components is different from given that population variances are equal, it is desirable
82.50. to firstly check the equality of population variances by
Ans : There is sufficient evidence to conclude that applying F -test.
the average length of the components is not
82.50.
EXAMPLE 20.45
Two types of drugs were used to control the high blood
pressure on 6 and 8 patients and decrease in systolic blood
pressures (upper limit of bp ) are as below:

20.17 Two Sample t -test Drug A : 12 18 30 15 07 14

The t -test is used very effectively to test the significance Drug B : 15 16 12 10 19 25 28 17
of difference of means of two independent samples taken Is there any significant difference in the efficiency of drugs?
from normal population(s).
Before going further, we list the assumptions of t

Sol :
-test for difference of means.
1. The parent population(s) from which two sample(s)
have been chosen are normally distributed. Click : www.nodia.study/lema/tm145
2. The two samples are independent and random.
3. The population variances are equal and unknown.
Let x1, x2, ....., xn and y1, y2, ....., yn be two
1 1 EXAMPLE 20.46
independent samples of sizes n1 and n2 respectively drawn The nicotine content in miligrams of two samples of
from two normal population with means µ 1 and µ 2 . The tobacco were found to be as follows:
null and alternate hypothesis can be written as:
H0 : There is no significant difference in the means of Sample A : 24 27 26 21 25
samples drawn from the normal populations or the Sample B : 27 30 28 31 22 36
samples have been drawn from the population with same
Can it be said that two samples come from normal
mean, i.e. µ1 = µ2 .
populations having the same mean?
H1 : The two samples have been drawn from normal
population with different means, i.e. µ1 ! µ. 2 Under the


Sol :
null hypothesis, the test statistic
y−y
t =
S Click : www.nodia.study/lema/tm146
n + n
1 1
1 2

follows students t -distributions with (n1 + n2 − 2) d.f.

where x =
/ xi , y = / y j EXAMPLE 20.47
n1 n2 A group of 5 patients treated with medicine X weight 43,
:/ (xi − x ) + / (y j − y ) D
1 2 2 39, 48, 60 and 41 kgs : second group of 7 patients from the
and S 2 =
n1 + n2 − 2 i j same hospital treated with medicine Y weight 38, 42, 56,
is an unbiased estimate of common population variance 64, 68, 69, and 62 kgs. Do you agree with the claim that
σ2 . medicine Y increases the weight significantly? (The value
The calculated value of test statistic ‘t ’ is then of t at 5% level of significance for 10 degrees of freedom
compared with the tabulated value of t for (n1 + n2 − 2) is 2.2281).
d.f. at some specified level of significance. If calculated


Sol :
value is less than the tabulated value, then null hypothesis
is accepted otherwise rejected.
Remark 1. As stated in the assumptions, equality of
population variances from which samples are taken is
Click : www.nodia.study/lema/tm147
Page 274 Inferential Statistics chapter 20

EXAMPLE 20.48
The average number of parts produced by two machines
Click : www.nodia.study/lema/tm151
per day are 200 and 250 with standard deviations 20
and 25 respectively on the basis of records of 25 days’
production. Can you regard both the machines equally EXAMPLE 20.52
efficient at 1% level of significance? ( t48, 0.01 = 2.68 ) At an agricultural station it was desired to test the effect
of a given fertilizer on wheat production. To accomplish


Sol :
this, 24 plots of land having equal areas were chosen, half
of these were treated with fertilizer and other half were

Click : www.nodia.study/lema/tm148
untreated. The mean yield of wheat on untreated plots
was 4.8 tonnes with a standard deviation of 0.4 tonnes,
while the mean yield on treated plots was 5.1 tonnes with
a standard deviation of 0.6. Can we conclude that there
EXAMPLE 20.49 is a significant improvement in wheat production because
In a test given to two groups of students, the marks of the fertilizer if a significance level of (a) 0.01 and (b)
obtained are as follows: 0.05 is used.

1st 1 8 2 0 3 6 5 0 4 9 3 6 3 4 4 9 4 1

Sol :

2nd 2 9 2 8 2 6 3 5 3 0 4 4 4 6

Examine the significance of the difference between the Click : www.nodia.study/lema/tm152

arithmetic mean of the marks secured by the students of
the above two groups.


Sol : EXAMPLE 20.53
A random sample of 10 cows was kept on Food A for
a certain period. The increase in their weights (in kgs)
Click : www.nodia.study/lema/tm149 is 10, 6, 16, 17, 13, 12, 8, 14, 15, 9. Another randomly
drawn sample of 12 cows was kept on Food B for the same
period. The increase in their weights (in kgs) are 7, 13, 22,
15, 12, 14, 18, 8, 21, 23, 10, 17
EXAMPLE 20.50
Examine the significance of the difference between
The I.Q.’s of 16 students from one city showed a mean of
the increase in weights of cows kept of Food A and that of
107 with standard deviation of 10 while the I.Q.’s of 14
cows kept on Food B. (Value of ‘t ’ for degrees of freedom
students from another city showed a mean of 112 with a
20 at 5% level of significance is 2.09.)
standard of 8. Is there a significant difference between the
I.Q.’s of the students of two cities at (a) 0.01 (b) 0.05 level

Sol :
of significance?

Click : www.nodia.study/lema/tm153


Sol :

Click : www.nodia.study/lema/tm150 EXAMPLE 20.54

Two types of batteries are tested for their length of life
and the following data are obtained :
EXAMPLE 20.51
A random sample of 20 daily workers of Rajasthan was No. of Sample Mean life in hours Variance
found to have average daily earning of < 44 with sample Type A 9 600 121
variance 900. Another sample of 20 daily workers from
Type B 8 640 144
Bihar was found to earn on an average < 30 per day
with sample variance 400. Test whether the workers in Is there significant difference between the means of the two
Rajasthan are earning more than those in Bihar. batteries at 5% level of significance? Given the following :


Sol :
chapter 20 Inferential Statistics Page 275

Degrees of freedom 15 16 17 3. Strength tests carried out on samples of two yarns

spun to the same count gave the following results:
Value of t at 5% level 2.13 2.12 2.11
Number in Sample Sample


Sol : Sample mean Standard
deviation
Yarn A 4 50 42
Click : www.nodia.study/lema/tm154 Yarn B 9 42 56
The strengths are expressed in pounds. Is the
difference in mean strengths significant.
EXAMPLE 20.55 Ans : Difference is insignificant or falls in acceptance
A group of 5 patients treated with medicine M1 weight region. We accept the null hypothesis.
42, 39, 48, 60, 41 kg. A second group of 5 patients treated
with medicine M2 weigh 38, 42, 48, 67, 40 kg. Do the two
medicines differ significantly with regard to their effect in
increasing weight?
4. A random sample of 10 pigs was kept on Food A for a
Given the following :
certain period. The increase in their weights (in kgs.)
Degree of freedom 5 8 9 10 is as under–
10, 6, 16, 17, 13, 12, 8, 14, 15, 9
Value of t at 5% level 2.57 2.31 2.26 2.23
Another randomly drawn sample of 12 pigs was kept


Sol : on Food B for the same period. The increase in their
weights (in kgs.) is as under–
7, 13, 22, 15, 12, 14, 18, 8, 21, 23, 10, 17
Click : www.nodia.study/lema/tm155 Examine the significance of the difference between the
increase in weights of pigs kept on Food A and that
of pigs kept on Food B. (Value of t for degrees of
freedom 20 at 5% level of significance is 2.09).
Ans : Average output per worker in the universe
(Population) is 78.
E X ERC I S E 20.2
1. A group of 5 patients treated with medicines P weigh
10, 8, 12, 6, 4 kgs: Second group of 7 patients treated
5. The following results were obtained from the test of
with medicine ‘Q ’ weigh 14, 12, 8, 10, 6, 2, 11 kgs.
life of two types of bulbs
Comment on rejection of hypothesis with significance
level 5%. (Given: t(100.05) = 1.812 ) Bulb Size of Sample Mean Variance
Ans : Null Hypothesis (H0) may be accepted with A 5 600 hours 63 hours
5% significance.
B 7 550 hours 56 hours
Test the above data the state the significance of
difference.
2. The means of two random samples of size 9 and 7 Ans : The mean life of both types of bulbs is not
are 196.42 and 198.82 respectively. The sum of the same.
squares of the deviations from the mean are 26.94 and
18.73 respectively. Can the samples be considered to
have been drawn from the same normal population?
(Apply t -test).
6. Two types of drugs were used on 5 and 7 patients for
Ans : The samples cannot be considered to have
reducing their weight. Drug A was imported and durg
come from the same normal population.
B indigeneous. The decrease in the weight after using
the drugs for six months was as follows:
Page 276 Inferential Statistics chapter 20

Drug A : 10 12 13 11 14


******
Drug B : 8 9 12 14 15 10 9
Is there a significant difference in the efficacy of the
two drugs? If not, which drug should you buy. (For
v = 10 , t0.05 = 2.223 )
Ans : B

7. Two random samples of size 9 and 7 have mean

196.42 and 198.82 respectively. The sum of squares
of deviations from the means are 26.94 and 18.73
respectively. Can the samples be considered to have
been drawn from the same population?
Degrees of freedom 13 14 15 16
t at 5% level 2.160 2.145 2.131 2.120
t at 1% level 3.012 2.977 2.947 2.921
Ans : No

8. Find the t -test value for the following two samples

from a population:
Set - I 6, 4, 9, 5
Set - II 2, 5, 6, 3
Ans : 1.4142

9. Two samples of 6 and 5 items respectively gave the

following data :
Mean of the first sample 40
Standard deviation of the first sample 8
Mean of the second sample 50
Standard deviation of the second sample 10
Is the difference of mean significant. The table value
of t for 9 degrees of freedom at 5% level is 2.26.
Ans : Not significant
chapter 30 Unit 5 Case Study Page 277

UNIT 5

Case Study Questions

EXAMPLE 30.1 EXAMPLE 30.2

Wool fibres have been used as a textile raw material for Balrampur Chini Mills Limited (BCML) is one of the
apparel and home textiles for years. Latterly, it is also largest sugar manufacturing company in India with a
increasingly being used in technical textiles applications. significant strength in the manufacture of downstream
products like power (co-generation) and ethanol.

DK Shrama works as quality check manager and is

interested in the hypothesis testing problem
Ramesh is a quality engineer at a fabric factor and is H0: µ = 1.025 kg versus H1: µ ! 1.025 kg
interested in the hypothesis testing problem where μ is the average weight of a 1-kilogram sugar
H0: µ = 430.0 versus H1: µ ! 430.0 packet. Suppose that a sample of n = 16 sugar packets is
where μ is the average breaking strength of a bundle of obtained and their weights are measured.
wool fibers. Suppose that a sample of n = 20 wool fiber (a) For what values of the t-statistic does the Sharma
bundles is obtained and their breaking strengths are accept the null hypothesis with a size α = 0.10 ?
measured. (b) For what values of the t-statistic does the experimenter
(a) For what values of the t-statistic does the Ramesh reject the null hypothesis with a size α = 0.01 ?
accept the null hypothesis with a size α = 0.10 ? (c) Suppose that the sample mean is x = 1.053 kg and
(b) For what values of the t-statistic does the experimenter the sample standard deviation is s = 0.058 kg. Is the
reject the null hypothesis with a size α = 0.01 ? null hypothesis accepted or rejected with α = 0.10 ?
(c) Suppose that the sample mean is x = 436.5 and the With α = 0.01 ?
sample standard deviation is s = 11.90 . Is the null
hypothesis accepted or rejected with α = 0.10 ?

Sol :
With α = 0.01 ?

Sol : Click : www.nodia.study/lema/zm160

Click : www.nodia.study/lema/zm159
Page 278 Unit 5 Case Study chapter 30

EXAMPLE 30.3
Fertilizers provide crops with nutrients like potassium,
phosphorus, and nitrogen, which allow crops to grow
bigger, faster, and to produce more food. Nitrogen in
particular is an essential nutrient for the growth of every
organism on Earth.

The I.Q.’s of 16 students from one city showed a mean of

107 with standard deviation of 10 while the I.Q.’s of 14
students from another city showed a mean of 112 with a
standard of 8. Is there a significant difference between the
I.Q.’s of the students of two cities at (a) 0.01 (b) 0.05 level
of significance?

Sol :

At an agricultural station it was desired to test the effect

Click : www.nodia.study/lema/zm162
of a given fertilizer on wheat production. To accomplish
this, 24 plots of land having equal areas were chosen, half


******
of these were treated with fertilizer and other half were
untreated. The mean yield of wheat on untreated plots
was 4.8 tonnes with a standard deviation of 0.4 tonnes,
while the mean yield on treated plots was 5.1 tonnes with
a standard deviation of 0.6. Can we conclude that there
is a significant improvement in wheat production because
of the fertilizer if a significance level of (a) 0.01 and (b)
0.05 is used.

Sol :

Click : www.nodia.study/lema/zm161
EXAMPLE 30.4
IQ, short for intelligence quotient, is a measure of a
person’s reasoning ability. In short, it is supposed to gauge
how well someone can use information and logic to answer
questions or make predictions. IQ tests begin to assess
this by measuring short- and long-term memory. They
also measure how well people can solve puzzles and recall
information they’ve heard — and how quickly.
Chap 21 Time Series Page 279

CHAPTER 21

Time Series

21.1 Introduction variable in the past, so that reliable predictions can be

A manufacturing company wants to predict demand for made about its future values. For example, the government
its product for next year to make a production plan. An may be interested in predicting population growth in near
investor wants to know fluctuations in share prices so that future for planning its welfare schemes, the agricultural
he can decide if he should purchase or sell certain shares. ministry may be interested in predicting annual crop yield
These and many other situations involve a variable that before declaring the MSP (minimum support price) of
changes with time. A variable observed over a period of agricultural produce or an industrialist may be interested
time is called a time series. Analysis of time series is useful in predicting the weekly demand for his product for
in understanding the patterns of changes in the variable making the production schedule. Following are considered
over time. to be some of the important uses of time series analysis.

21.3.1 Studying the Past Behaviour

21.2 Definition In a time series, the past observations on a variable are
Time Series is a sequence of observations made on a arranged in an orderly manner over a period of time. By
variable at regular time intervals over a specified period simple observation of such a series, one can understand the
of time. nature of changes that have taken place in values of the
Data collected arbitrarily or irregularly does not variable during the course of time. Further, by applying
form a time series. Time series analysis involves the use appropriate technique of analysis to the series, one can
of statistical methods to analyze time series data in order study the general tendency of the variable in addition
to extract meaningful statistics and understand important to seasonal changes, cyclical changes, and irregular or
characteristics of the observed data. accidental changes in values of the variable.
Time Series Analysis helps us understand the
underlying forces leading to a particular pattern in the 21.3.2 Forecasting Future Behaviour
time series and helps us in monitoring and forecasting Analysis of a time series reveals the nature of changes in
data with help of appropriate statistical models. the value of a variable during the course of times. This can
Analysis of time series data requires maintaining be useful in forecasting the future values of the variable.
records of values of the variable over time. Some examples Thus, with the help of observations on an appropriate
from day-to-day life may give a better idea of time series. time series, future plans can be made relating to certain
1. Monthly, quarterly, or yearly production of an matters like purchase, production, sales, etc. This is how a
industrial product. planned economy makes plans for the future development
2. Yearly GDP (Gross Domestic Product) of a country. on the basis of time series analysis of the relevant data.
3. Monthly sales in a departmental store. 4. Weekly
prices of vegetables. 21.3.3 Evaluating the Performance
5. Daily closing price of a share at a stock exchange. Evaluation of the actual performances in comparison with
6. Hourly temperature of a city recorded by the predetermined targets is necessary to judge efficiency of
Meteorological Department. the work. For example, the achievements of Five- Year
Plans are evaluated by determining the annual rate
21.3 Uses of Time Series Analysis of growth in the gross national product. Similarly, the
national policy of controlling inflation and price rises is
The main objective of time series analysis is to understand, evaluated with the help of different price indices. All these
interpret and assess chronological changes in values of a
Page 280 Time Series Chap 21

are made possible by analysis of time series of the relevant the mean.
variables.

21.3.4 Making a Comparative Study EXAMPLE 21.1

The following table shows annual sales (in lakh `) of a
A comparative study of data relating to two or more
departmental store for years 2011 to 2018.
periods, regions, or industries reveals a lot of valuable
information that can guide management in taking a proper Year 2011 2012 2013 2014 2015 2016 2017 2018
course of action. A time series itself provides a scientific
Sales 26.2 28.9 33.7 32.1 39.8 38.7 45.4 42.6
basis for making comparisons between two or more related
sets of data. Note that data are arranged chronologically

Sol :
in such a series, and the effects of its various components
are gradually isolated, analyzed, and interpreted.
Click : www.nodia.study/lema/um101
21.4 Components of Time Series
A graphical representation of time series data shows EXAMPLE 21.2
continuous changes in its values over time, giving an The following table shows production (in ‘000 tonnes) of a
impression of fluctuating nature of data. A close look of commodity during years 2001-2008.
the graph, however, reveals that the fluctuations are not
totally arbitrary, and a part of these fluctuations has a Year 2001 2002 2003 2004
steady behaviour and can be related to time. This part is Production 50 36.5 43 44.5
the systematic part of the time series and the remaining Year 2005 2006 2007 2008
part is non systematic or irregular.
There are four types of components in a time series. Production 38.9 38.1 32.6 33.7
They are as follows;


Sol :
(i) Secular Trend (T),
(ii) Seasonal Variation (S)
(iii) Cyclical Variation (C)
(iv) Irregular Variation (I).
Click : www.nodia.study/lema/um102
Secular Trend (T), Seasonal Variation (S) and 21.4.2 Seasonal Variation (S)
Cyclical Variation (C) are systematic part whereas
Many time series related to financial, economic, and
Irregular Variation (I) is the non systematic part. Every
business activities consist of monthly or quarterly data.
time series has some or all of these components. Of course,
It is observed very often that these time series exhibit
only the systematic components of a time series are useful
seasonal variation in the sense that similar patterns are
in forecasting its future values.
repeated from year to year. Seasonal variation is the
21.4.1 Secular Trend (T) component of a time series that involves patterns of
change within a year that repeat from year to year.
The secular trend is the long term pattern of a time series.
Several commodities show seasonal fluctuations
The secular trend can be positive or negative depending
in their demand. Warm clothes and woollen products
on whether the time series exhibits an increasing long term
have a market during the winter season. Fans, coolers,
pattern or a decreasing long term pattern. The secular
cold drinks and ice creams are in great demand during
trend shows a smooth and regular long term movement
summer. Umbrellas and raincoats are in great demand
of the time series. The secular trend does not include
during the rainy season. Different festivals are associated
short term fluctuations, but only consists of a steady
with different commodities and every festival season
movement over a long period of time. It is the movement
is associated with an increase in demand for related
that the series would take if there are no seasonal, cyclical
commodities. For example, clothes and firecrackers are
or irregular variations. It is the effect of factors that are
in great demand during Diwali. Most of the seasonal
more or less constant for a long time or that change very
variations in demand reflect changes in climatic conditions
gradually and slowly over time.
or customs and habits of people.
If a time series does not show an increasing or
All the above examples have one year as the period
decreasing pattern, then the series is stationary around
Chap 21 Time Series Page 281

of seasonal variation. However, the period of seasonal four phases: (i) prosperity, (ii) recession, (iii) depression,
variation can be a month, a week, a day, or even an hour, (iv) recovery. Figure 21.1 depicts these four phases of a
depending on the nature of available data. For example, business cycle, where every phase changes to the next
cash withdrawals in a bank show seasonal variation among phase gradually in the order mentioned above.
the days of a month, the number of books borrowed by
readers from a library show seasonal variation according
to days of a week, passenger traffic at a railway station
has seasonal variation during hours of a day, and the
temperature recorded in a city exhibits seasonal variation
over hours of a day, in addition to seasonal variation with
changing seasons in a year.
Seasonal variation is measured with help of seasonal
indices, which are useful for short term forecasting. Such
short term forecasts are useful for a departmental store
in planning its inventory according to months of a year.
A bank manager can use such short term forecasts in
managing cash flow on different days of a week or a month.
Figure 21.1
EXAMPLE 21.3 Cyclical variations can consist of a period of 5 years, 10
The following table shows quarterly sales (in lakh Rs.) of years, or even longer duration. The period often changes
woollen garments in four consecutive years. from one cycle to another. Cyclical variation may be
attributed to internal organizational factors such as
Year I II
purchase and inventory policies or external factors such
Quarter 1 2 3 4 1 2 3 4 as financial market conditions and government policies.
Sales 11 8 16 28 19 17 32 38
21.4.4 Irregular Variation (I)
Year III IV
Irregular variations are unexpected variations in time
Quarter 1 2 3 4 1 2 3 4
series caused by unforeseen events that can include
Sales 33 23 39 52 41 37 44 58 natural disasters like floods or famines, political events
line strikes or agitations, or international events like


Sol :
wars or others conflicts. As the name suggests, irregular
variations do not follow any patterns and are, therefore,

Click : www.nodia.study/lema/um103 totally unpredictable. For this reason, irregular variation

are also known as unexplained or unaccounted variations.
21.4.3 Cyclical Variation (C)
Cyclical variation is a long term oscillatory movement in 21.5 Mathematical Models of Time Series
values of a time series. Cyclical variation occurs over a Let Xt denote the value of the variable at time t .
long period, usually several years, if seasonal variation The time series is denoted by the collection of values,
occurs within a year. One complete round of oscillation "Xt, t = 0, 1, ..., T , where T is the total duration of
is called a cycle. Cyclical variations need not be periodic observation. There are two standard mathematical models
in the sense that the length of a cycle or the magnitude for time series based on the four components mentioned
of variation within a cycle can change from one cycle to earlier, namely, secular trend (T), seasonal variation (S),
another. cyclical variation (C), and irregular variation (I).
Cyclical variations are observed in almost all time
series related to economic or business activities, where a 21.5.1 Additive Model
cycle is known as a business cycle or trade cycle. Recurring The additive model assumes that the value Xt at time t is
ups and downs in a business are the main causes of cyclical the sum of the four components at time t . Thus,
variation.
Xt = Tt + St + Ct + It
A typical business cycle consists of the following
The additive model assumes that the four
Page 282 Time Series Chap 21

components of the time series are independent of one method.

another. It is also important to remember that all the
four components in the additive model must be measured Year N u m b e r Year Numb er
in the same unit of measurement. The magnitude of the of crimes of crimes
seasonal variation does not depend on the value of the (‘000) (‘000)
time series in the additive model. In other words, the 1981 40 1987 43
magnitude of the seasonal variation does no change as the 1982 42 1988 46
series goes up or down.
1983 43 1989 47
The assumption of independence of the components
is often not realistic. In such situations, the multiplicative 1984 42 1990 45
model can be used. 1985 44 1991 46

21.5.2 Multiplicative Model 1986 44

The multiplicative model that the value Xt at the time t

Sol :

is obtained by multiplication of the four components at
time t . That is,
Xt = Tt # St # Ct # It Click : www.nodia.study/lema/um104
The multiplicative model does not assume
independence of the four components of the series and is,
therefore, more realistic. Values of the trend are expressed EXAMPLE 21.5
in units of measurements and other components are The publisher of a magazine wants to determine the rate of
expressed as percentage or relative values, and hence are increase in the number of subscribers. The following table
free from units of measurements. shows the subscription information for eight consecutive
It is recommended to choose the multiplicative years.
model when the magnitude of the seasonal variation in Year No. of subscribers (in millions)
the data depends on the magnitude of the data. In other
1976 12
words, the magnitude of the seasonal variation increases
as the data values increase, and decreases as the data 1977 11
values decrease. 1978 19
1979 17
21.6 Measurement of Secular Trend 1980 19
1981 18
21.6.1 Method of Freehand Curve (Graphical
1982 20
Method)
1983 23
In this method, a graph is drawn for the given time series
by plotting Xt (on Y -axis) against t (on X -axis). Then Fit a trend line by the graphical method.
a free hand smooth curve is plotted on the same graph to

Sol :
indicate the general trend.
This method is simple and does not require any
mathematical calculation. But, in this method, different
researchers may draw different trend lines for the same
Click : www.nodia.study/lema/um105
set of data. Forecasting using this method is therefore 21.6.2 Method of Moving Averages
risky if the person drawing free hand curve is not efficient
The moving average of period k of a time series forms a
and experienced. On the other hand, this method is quite
time series of arithmetic means of k successive observations
flexible and can be used for all types of trends, linear as
from the original time series. The method begins with the
well as non–linear, and involves minimum amount of work.
first k observations and finds the arithmetic mean of these
k observations. The next step leaves the first observation
EXAMPLE 21.4 and includes observation number k + 1 and finds the
Fit a trend line to the following data using the graphical arithmetic mean of these k observations. This process
Chap 21 Time Series Page 283

continues till the average of the last k observations is (ii) Plot the original time series and trend values obtained
found. In other words, the method of moving averages in (i) on the same graph.
finds the following

Sol :
First moving average = X1 + X2 + ... + Xk
k

Second moving average =

X2 + X3 + ... + Xk + 1 Click : www.nodia.study/lema/um106
k
X3 + X 4 + ... + Xk + 2 EXAMPLE 21.7
Third moving average =
k
Obtain 4-yearly centered moving averages for the following
and so on. time series.
Each of these averages is written against the time
point that is the middle term in the sum. As a result, when Year 1987 1988 1989 1990 1991
k is an odd integer, moving average values correspond to Annual sales 3.6 4.3 4.3 3.4 4.4
observed values of the given time series. On the other (in lakh `)
hand, when k is an even integer, the moving averages fall
Year 1992 1993 1994 1995
mid-way between two observed values of the given time
series. In this case, a subsequent two-unit moving average Annual sales 5.2 3.8 4.9 5.4
is calculated to make the resulting moving average values (in lakh `)
correspond to observed values of the given time series.


Sol :
A moving average with an appropriate period
smooths out cyclical variations from the given time
series and provides a good estimate of the trend. Cyclical
fluctuations with a uniform period and a uniform
Click : www.nodia.study/lema/um107
amplitude can be completely eliminated by taking the
period of moving averages that is equal to or a multiple EXAMPLE 21.8
of the period of the cycles as long as the trend is linear. Obtain the trend values using 3 yearly moving averages
The method of moving averages is flexible in the for the following data.
sense that even if a few observations are added to the
given series, the moving averages calculated earlier are Year (t ) 1976 1977 1978 1979 1980 1981
not affected and remain unchanged. However, the method Yt 66 84 90 78 96 105
of moving averages does not provide a mathematical
Year (t ) 1982 1983 1984 1985 1986
equation for the time series and hence cannot be used
for the purpose of forecasting. Another drawback of the Yt 93 111 87 117 114
method of moving averages is that some of the trend


Sol :
values at each end of the given series cannot be estimated
by this method.

Click : www.nodia.study/lema/um108
EXAMPLE 21.6
The following table shows gross capital formation (in crore
EXAMPLE 21.9
Rs) for years 1966 to 1975.
The following table gives the production of steel (in
Year 1966 1967 1968 1969 1970 millions of tonnes) for years 1976 to 1986.
Gross Capital 19.3 20.9 17.8 16.1 17.6 Year 1976 1977 1978 1979 1980 1981
Formation
Production 0 4 4 2 6 8
Year 1971 1972 1973 1974 1975
Year 1982 1983 1984 1985 1986
Gross Capital 17.8 18.3 17.3 21.4 19.3
Production 5 9 4 10 10
Formation
Obtain the trend values for the above data using 3-yearly
(i) Obtain trend values using 5-yearly moving averages.
moving averages.
Page 284 Time Series Chap 21

Sol : Year Revenue

2010 12
Click : www.nodia.study/lema/um109 2011 14
2012 14

EXAMPLE 21.10 2013 18

Calculate the three-month moving average from the 2014 20
following data:
Calculate a 3-year moving average for the revenue earned.
Jan. Feb. March April May June

Sol :
57 65 63 72 69 78
July Aug. Sept. Oct. Nov. Dec.
Click : www.nodia.study/lema/um112
82 81 90 92 95 97

Sol : EXAMPLE 21.13

The following figures relates to the profits of a commercial
concern for 8 years
Click : www.nodia.study/lema/um110
Year 1986 1987 1988 1989
Profit (`) 1542 1547 1552 2103
EXAMPLE 21.11
Shown is production volume (in thousand tonnes) for Year 1990 1991 1992 1993
a product. Use these data to compute a 3-year moving Profit (`) 2651 3193 3561 3491
average for all available years.
Find the trend of profits by the method of three yearly
Year Production Year Production moving averages.
2006 21 2011 22

Sol :
2007 22 2012 25
2008 23 2013 26
Click : www.nodia.study/lema/um113
2009 25 2014 27
2010 24 2015 26
EXAMPLE 21.14


Sol : Using three yearly moving averages, determine the trend
values from the following data.

Click : www.nodia.study/lema/um111 Year 2001 2002 2003 2004 2005 2006

Profit 142 148 154 146 157 202
EXAMPLE 21.12 Year 2007 2008 2009 2010 2011 2012
Gross revenue data (< in million) for a Travel Agency for Profit 241 263 280 302 326 353
a 11-year period is as follows:


Sol :
Year Revenue
2005 2
2006 6 Click : www.nodia.study/lema/um114
2007 10
2008 8 EXAMPLE 21.15
Using three yearly moving averages, determine the trend
2009 7
values from the following data.
Chap 21 Time Series Page 285

Year 2001 2002 2003 2004 2005 2006 Year Production (in million barrels)
Profit 142 148 154 146 157 202 1965 1
Year 2007 2008 2009 2010 2011 2012 1966 2
Profit 241 263 280 302 326 353 1967 3
1968 4


Sol :
1969 5
1970 6
Click : www.nodia.study/lema/um115 1971 7
1972 8
EXAMPLE 21.16 1973 9
Calculate the 3-yearly moving averages of the production
figures (in tonnes) for the following data. 1974 8
1975 9
Year Production
1976 10
1973 15
Obtain trend values for the above data using 5-yearly
1974 21 moving averages.
1975 30

Sol :
1976 36
1977 42
1978 46
Click : www.nodia.study/lema/um117
1979 50
1980 56 EXAMPLE 21.18
Assume a four-year cycle and calculate the trend by the
1981 63 method of moving average from the following data relating
1982 70 to the production (million kg) of tea in India:
1983 74
Year Production Year Production
1984 82
2007 464 2012 540
1985 90
2008 515 2013 557
1986 95
2009 518 2014 571
1987 102
2010 467 2015 586


Sol : 2011 502 2016 612

Sol :
Click : www.nodia.study/lema/um116
Click : www.nodia.study/lema/um118
EXAMPLE 21.17
The following table shows the production of gasoline in
U.S.A. for the years 1962 to 1976. EXAMPLE 21.19
A food processor uses a moving average to forecast next
Year Production (in million barrels) month’s demand. Past actual demand (in units) is shown
1962 0 below. Compute a simple five-month moving average.

1963 0 Month 43 44 45 46 47
1964 1 Actual Demand 105 106 110 110 114
Page 286 Time Series Chap 21

Month 48 49 50 51 Production 130 114 122 129 118 123

Actual Demand 121 130 128 137 (‘000)

Sol :

Sol :

Click : www.nodia.study/lema/um119 Click : www.nodia.study/lema/um122

EXAMPLE 21.20 EXAMPLE 21.23

The following data gives the production of bleaching The following table shows the index of industrial
powder (in ‘000 tonnes) for the years 1962 to 1972. production for the period from 1976 to 1985, using the
year 1976 as the base year.
Year 1962 1963 1964 1965 1966 1967
Year 1976 1977 1978 1979 1980
Production 0 0 1 1 4 2
Index 0 16 24 24 16
Year 1968 1969 1970 1971 1972
Year 1981 1982 1983 1984 1985
Production 4 9 7 10 8
Index 32 40 48 56 80
Calculate the trend values for the above data using 5
yearly moving averages. Obtain the trend values for the above data using 4-yearly
centered moving averages.


Sol :


Sol :

Click : www.nodia.study/lema/um120
Click : www.nodia.study/lema/um123
EXAMPLE 21.21
Obtain the trend values using 5 yearly moving average for EXAMPLE 21.24
the following data. Obtain 4-yearly centered moving averages for the following
time series.
Year (t ) 1962 1963 1964 1965 1966 1967
Year 1987 1988 1989 1990 1991
Yt 67 70 79 74 108 92
Annual sales 36 43 43 34 44
Year (t ) 1968 1969 1970 1971 1972
(in lakh `)
Yt 105 155 137 167 15
Year 1992 1993 1994 1995


Sol : Annual sales 52 38 49 54
(in lakh `)

Click : www.nodia.study/lema/um121

Sol :

EXAMPLE 21.22 Click : www.nodia.study/lema/um124

Find the trend of production by the method of a five-
yearly period of moving average for the following data :
EXAMPLE 21.25
Year 1979 1980 1981 1982 1983 1984 Obtain the trend values using 4 yearly centered moving
Production 126 123 117 128 125 124 average for the following data
(‘000)
Year (t ) 1976 1977 1978 1979 1980
Year 1985 1986 1987 1988 1989 1990
Yt 115 130 137 135 130
Chap 21 Time Series Page 287

Year (t ) 1981 1982 1983 1984 1985 Year Cost per Unit Year Cost per Unit
Yt 140 148 155 162 180 2009 357 2014 427
2010 392 2015 405


Sol :
2011 402 2016 438
Calculate a 5-year moving average for the unit cost of the
Click : www.nodia.study/lema/um125 product.


Sol :
EXAMPLE 21.26
From the following data, calculate the trend values using
four yearly moving averages. Click : www.nodia.study/lema/um128
Year 1990 1991 1992 1993 1994
Sales 506 620 1036 673 588
Year 1995 1996 1997 1998
Sales 696 1116 738 663 E X ERCISE 21. 1


Sol :
1. Fit a trend line to the following data by the freehand
curve method:
Click : www.nodia.study/lema/um126 Year 2001 2002 2003 2004 2005
Production 150 155 165 152 174
EXAMPLE 21.27 (‘000 <)
Calculate four-yearly moving averages of number of Year 2006 2007 2008 2009 2010
students studying in a higher secondary school in a
Production 150 174 175 160 180
particular city from the following data.
(‘000 <)
Year 2001 2002 2003 2004 Ans :
No. of students 124 120 135 140
2. From the following data, calculate trend values using
Year 2005 2006 2007 2008
3-yearly moving average:
No. of students 145 158 158 170
Year 2001 2002 2003 2004 2005 2006 2007


Sol : Production 412 438 446 454 470 483 490

Ans : 432, 446, 457, 469, 481

Click : www.nodia.study/lema/um127 3. Calculate the trend values using 4-yearly moving
average from the following data:
EXAMPLE 21.28
Year 2001 2002 2003 2004 2005
The owner of small manufacturing company has been
concerned about the increase in manufacturing costs over Sales (in crore) 7 8 9 11 10
the past 10 years. The following data provide a time series
Year 2006 2007 2008 2009 2010
of the cost per unit for the company’s leading product
over the past 10 years. Sales (in crore) 12 8 6 5 10

Year Cost per Unit Year Cost per Unit Ans : 9.125, 10.000, 10.375

2007 332 2012 405

4. The figures of quarterly income of municipal
2008 317 2013 410 corporation (in < lakhs) for 2 years are given below:
Page 288 Time Series Chap 21

Year 1st Qrtr 2nd Qrtr 3rd Qrtr 4th Qrtr Value 142 137 128 133 134 133 130
2005 74 56 48 69 Ans : 126, 131.5, 132, 133.5, 132.5
2006 83 52 49 81
Using a four-quarterly moving average, estimate the 21.6.1 Method of Least Squares
trend values. This is the most objective and perhaps the best method
Ans : 62.875, 63.5, 63.125, 64.75 of determining trend in a given time series. The method
begins with selection of an appropriate form of trend
5. Compute the trend values by finding three yearly equation and then proceeds with estimation of the
moving average of the following time series. unknown constants in this equation. It is a common
Year 2003 2004 2005 2006 practice to choose a polynomial of a suitable degree and
then to determine its unknown (but constant) coefficients
P o p u l a t i o n 512 538 546 554 by the method of least squares. The choice of the degree of
(in millions) polynomial is often based on the graphical representation
Year 2007 2008 2009 2006 of the given data.
P o p u l a t i o n 570 583 590 554 In a linear trend, the equation is given by
(in millions) Xt = a + bt
The method of least squares involves solving the
Ans : 532, 546, 556, 569, 581
following set of linear equations, commonly known as
normal equations.
6. Compute the trend values by taking a four yearly
moving average. ΣXt = na + b Σt
ΣtXt = a Σt + b Σt2
Year Value Year Value Where n is the number of the time periods for
1990 12 1997 100 which data is available, whereas, ΣXt , ΣtXt , Σt and Σt2
1991 25 1998 82 are obtained from the data. The least squares estimates of
a and b are obtained by solving the two equations in the
1992 39 1999 65
two unknowns, namely a and b . The required equation
1993 54 2000 49 of the trend line is the obtained by substituting these
1994 70 2001 34 estimates in equation Xt = a + bt
1995 87 2002 20
1996 105 2003 7 EXAMPLE 21.29
In Delhi numbers of crimes data is given by following
Ans : 39.75, 54.75, 70.75, 84.75, 92.00, 90.75,
table.
81.00, 65.75, 49.75, 34.75
Year Number of crimes Year Number of crimes
7. Calculate 5-yearly moving average for the following (in thousands) (in thousands)
data regarding sales (in lakh <).
1981 40 1987 43
Year 2000 2001 2002 2003 2004 2005 1982 42 1988 46
Sales 1100 1040 980 1050 1090 1200 1983 43 1989 47
Year 2006 2007 2008 2009 2010 2011 1984 42 1990 45
Sales 1150 1100 1140 1220 1300 1270 1985 44 1991 46
Ans : 1052, 1072, 1094, 1118, 1136, 1162, 1182, 1986 44
1214
Fit a straight line trend by the method of least squares.
Also, obtain the trend value for the number of crimes in
8. Use 2-yearly moving average to find the trend.
the year 1993.
Year 1 2 3 4 5 6 7

Sol :
Chap 21 Time Series Page 289

Click : www.nodia.study/lema/um129 Sales (in 10 18 33 45 63

tonnes)

EXAMPLE 21.30

Sol :

For the following data fit a trend line using method of
least squares. Also obtain the trend value for the year
1975. Click : www.nodia.study/lema/um133
Year 1962 1963 1964 1965 1966 1967
Production 6.7 7 7.9 7.4 10.8 9.2 EXAMPLE 21.34
The following data gives the production of bleaching
Year 1968 1969 1970 1971 1972
powder (in thousand tonnes) for the years 1962 to 1972.
Production 10.5 15.5 13.7 16.7 15
Year 1962 1963 1964 1965 1966 1967


Sol :
Production 0 0 1 1 4 2
Year 1968 1969 1970 1971 1972
Click : www.nodia.study/lema/um130 Production 4 9 7 10 8
Use the method of least squares to fit a trend line to the
EXAMPLE 21.31 above data. Also, obtain the trend value for the year 1975.
The annual production of a commodity is given as follows:

Sol :
Year 1995 1996 1997 1998 1999 2000 2001
Production 155 162 171 182 158 180 178 Click : www.nodia.study/lema/um134
(in tones)
Fit a straight line trend by the method of least squares.
EXAMPLE 21.35


Sol : The following table gives the production of steel (in
millions of tonnes) for years 1976 to 1986.

Click : www.nodia.study/lema/um131 Year 1976 1977 1978 1979 1980 1981

Production 0 4 4 2 6 8

EXAMPLE 21.32 Year 1982 1983 1984 1985 1986

Determine the equation of a straight line which best fits Production 5 9 4 10 10
the following data
Fit a trend line to the above data by the method of least
Year 2000 2001 2002 2003 2004 squares. Also, obtain the trend value for the year 1990.

Sales (` in thousand) 35 36 79 80 40

Sol :

Compute the trend values for all years from 2000 to 2004.


Sol : Click : www.nodia.study/lema/um135

Click : www.nodia.study/lema/um132 EXAMPLE 21.36

Below are given the figures of sales (in millions) of a sugar
factory:
EXAMPLE 21.33
Fit a straight line trend to the following data using the Year 2005 2006 2007 2008 2009 2010 2011
method of least square. Estimate the trend for 2007. Sale 80 90 92 83 94 99 92

Year 2000 2001 2002 2003 2004 Compute the trend values for all years from 2000 to 2004.
Page 290 Time Series Chap 21

Sol : Year Number of Subscribers (in millions)

1983 23
Click : www.nodia.study/lema/um136

Sol :

EXAMPLE 21.37
The following table relates to the tourist arrivals (in Click : www.nodia.study/lema/um139
millions) during 2004 to 2010 in India:

Year 2004 2005 2006 2007 2008 2009 2010 EXAMPLE 21.40
The following table shows the index of industrial
Tourists 18 20 23 25 24 28 30 production for the period from 1976 to 1985, using the
arrivals year 1976 as the base year.
(i) Fit a straight line trend by the method of least
squares Year 1976 1977 1978 1979 1980
(ii) Estimate the number of tourists that would arrive in Index 0 2 3 3 2
the year 2014. Year 1981 1982 1983 1984 1985


Sol : Index 4 5 6 7 10
Fit a trend line to the above data by the method of
Click : www.nodia.study/lema/um137 least squares. Also, obtain the trend value for the index of
industrial production for the year 1987.


Sol :
EXAMPLE 21.38
Fit a straight line trend for the following data using the
method of least squares. Click : www.nodia.study/lema/um140
X 0 1 2 3 4
Y 1 1 3 4 6 EXAMPLE 21.41
Fit a trend line by the method of least squares. Also


Sol : obtain the trend value for the year 1987.

Year (T ) 1976 1977 1978 1979 1980

Click : www.nodia.study/lema/um138 Y 115 130 137 135 130
Year (T ) 1981 1982 1983 1984 1985
EXAMPLE 21.39 Y 140 148 155 162 180
Fit a trend line by the method of least squares to the time
series in following data. Also obtain the trend value for

Sol :
the number of subscribers in the year 1984.

Year Number of Subscribers (in millions) Click : www.nodia.study/lema/um141

1976 12
1977 11 EXAMPLE 21.42
1978 19 Fit a straight line trend by the method of least squares to
1979 17 the following data.

1980 19 Year 1980 1981 1982 1983

1981 18 Sales 503 527 493 573
1982 20 Year 1984 1985 1986 1987
Chap 21 Time Series Page 291

EXAMPLE 21.45
Sales 568 607 621 587
A sugar mill is committed to accepting beets from local


Sol : producers and has experienced the following supply
pattern (in thousands of tons/year and rounded).

Click : www.nodia.study/lema/um142 Year Supply (in thousands of tons)

2011 360
2012 330
EXAMPLE 21.43
In 2006 due to recession companies began downsizing in 2013 570
order to reduce its costs. One of the results of these cost 2014 510
cutting measures has been a decline in the percentage of 2015 570
private industry jobs that are managerial. The following
2016 540
data show the percentage of females who are managers
from 2006 to 2013. 2017 600
2018 690
Years 2006 2007 2008 2009
(i) Develop a linear trend line for this time series using
Percent 6.7 5.3 4.3 6.1
least square method.
Years 2010 2011 2012 2013 (ii) Use this trend to estimate the supply in year 2021.
Percent 5.6 7.9 5.8 6.1

Sol :
(i) Develop a linear trend line for this time series using
least square method.
(ii) Use this trend to estimate the percentage of females Click : www.nodia.study/lema/um145
who are managers in 2014.


Sol :

Click : www.nodia.study/lema/um143 E X ERCISE 21. 2

1. Fit a straight line trend by the method of least square
EXAMPLE 21.44 (taking 2001 as year of origin) to the following data:
A company develops, markets, manufactures and sells
integrated wide-area network access products. The Year 2002 2003 2004 2005 2006 2007
following are annual sales (< in million) data from 2008 Production 5 7 7 10 12 17
to 2014. (lakh tons)
Years 2011 2012 2013 2014 Also obtain the trend values.
Sales 134 106 86 122 Ans : 2.4 + 2.17T
Years 2015 2016 2017 2018
2. Fit a straight line trend by the method of least square
Sales 112 158 116 112 (taking 2004 as year of origin) from the following data:
(i) Develop a linear trend line for this time series using
least square method. Year 2004 2005 2006 2007
(ii) Use this trend to estimate the annual sales (< in Production 125 128 133 135
million) in 2022. (in ‘000 units)


Sol : Year 2008 2009 2010
Production 140 141 143

Click : www.nodia.study/lema/um144
(in ‘000 units)
Estimate the values for the years 2011 and 2013.
Ans : 125.679 + 3.107T
Page 292 Time Series Chap 21

3. Fit a straight line trend by the method of least squares Ans : 91.75 + 0.8T
to the following data and also show on graph paper:
8. Fit a straight line trend by the method of least square
Year 2003 2004 2005 2006 and estimate the sales for 2006:
Production 80 90 92 83
(in ‘000 units) Year 2000 2001 2002 2003 2004 2005

Year 2007 2008 2009 Sales 28 32 29 35 40 50

(< lakh)
Production 94 99 92
(in ‘000 units) Ans : 35.67 + 2T , < 49.67 lakh
Ans : 90 + 2T
9. Compute trend values for the following data by the
method of least squares:
4. Fit a straight line trend to the following data by the
method of least square taking (i) 1994 as origin, and Year 2001-02 2002-03 2003-04
(ii) 1997 as origin. Estimate the sales for 2010.
Sales in (‘000 <) 10 12 15
Year 2005 2006 2007 2008 2009 Year 2004-05 2005-06 2006-07
Sales (< lakh) 45 56 78 46 75 Sales in (‘000 <) 16 18 19
Ans : (i) 45 + 5T (ii) 60 + 5X , < 75 lakh Ans : 15 + 0.914T

5. Fit a straight line trend by the method of least squares 10. Below are given the figures of production (in ‘000
to the following data and estimate the production for tons) of a sugar factory:
the year 2011.
Year 2002 2003 2004 2005 2006 2007
Year 2006 2007 2008 2009 2010 Production 83 92 71 90 169 191
P r o d u c t i o n 49 54 60 72 80
(i) Fit a straight line trend and find trend values.
(in ‘000 tones)
(ii) What is the monthly increase in production?
Ans : 63 + 8T , 87000 Tones Ans : (i) 116 + 11.285T , (ii) 1.88 Lakh tones

6. Fit a straight line trend by the method of least squares

and find the trend values. Also estimate the value of
expected production for the year 2010-11.

******

Year 2004-05 2005-06 2006-07

P r o d u c t i o n 83 92 71
(lakhs tones)
Year 2007-08 2008-09 2006-07
P r o d u c t i o n 90 169 71
(lakhs tones)
Ans : 101 + 17T , 169 lakh tones

7. Fit a straight line trend by the method of least squares

and estimate the trend values:

Year 2001 2002 2003 2004

Values 80 90 92 83
Year 2005 2006 2007 2008
Values 94 99 92 104
chapter 22 Index Number Page 293

CHAPTER 22

Index Number

22.1 Introduction over a period of time in relation to its value at some fixed
Index numbers are commonly used statistical indicators point in time, called the base period. This resulting ratio
for measuring the combined fluctuations in a group of of the current value to a base value is multiplied by 100 to
related variables. Generally used to indicated the state of express the index as a percentage.
the economy, index numbers are aptly called ‘barometers of Current period value
i.e., Index number = 100
economic activity’. Index numbers are used in comparing Base period value #
prices, production, sales, exports or imports over a Note that since an index number is a ratio of a
certain period of time. For example, consumer price index measure taken during one time period (current period)
(CPI) is a commonly quoted index, which measures price to the same measure taken during another time period
fluctuations. The CPI is a single numbers representing the (base period) it has no units of measurement and is always
general level of prices that affects consumers. Similarly, we expressed as a percentage.
have SENSEX (also called BSE 30), a stock market index

Illustration
that reflects current market conditions. If the index number of wholesale prices of food articles in
2012 as compared to 2001 is 160, the implication is that
overall level of wholesale prices of food articles in 2012
is 160% of the level in 2001. Here, 2012 is the current
22.2 Meaning and Definition
year while 2001 is the base year. In other words, there is
An index number is a specialized type of average. An an increase of 160% on an average in the prices of food
average is a single figure representing a group of figures. articles from 2001 to 2012.
Averages are used to compare two or more series as they Index numbers can also be calculated for individual
represent their central tendencies. But there is a great variables. For example, if the price of wheat is ` 40 in
limitation in the use of average. Averages can be used 2012 while it was ` 20 in 2001, the index number of
to compare only those series which are expressed in the the price for year 2012 with respect to the base 2001 is
same units. But the device of index numbers helps us in P = 20
40
# 100 = 200 . That is, the price of wheat in 2012
comparing change in series which are in different units. is 200% of its price in 2001. Here, since only a single
Therefore, index numbers are called specialized type of variable is considered, the index is called ‘relative’. In this
averages. particular case, it is ‘Price relative’.
A Measure of Change Indices may be based at any convenient period and
are published at frequent intervals.
It is a numerical value characterizing the change in
complex economic phenomena over a period of time or Period Index (Example)
space. –Maslow Daily Stock Market Prices (SENSEX)
Monthly Index of Industrial Production (IIP)

In other words, an index number is a statistical Yearly Gross National Product (GNP)
measure designed to show changes in a variable or a Characteristics of Index Number
group of related variables with respect to time. It could
be defined as a relative measure describing the average 1. They are expressed as percentages.
changes in any quantity over time. An index number 2. They are specialised averages.
measures the changing value of price, quantity or values 3. They measure changes that are not directly
Page 294 Index Number chapter 22

measurable. appropriate price index and thus making the series

real.
5. Index numbers act as economic barometers: Just
as barometers indicate the atmospheric pressure,
22.3 Uses of Index Numbers many indices are used to indicate the pressure of the
According to a Simpson and F. Kafka index numbers are economic and business behaviour. They are also used
one of the most widely used statistical tools. They are used to measure ups and downs in the general economic
to feel the pulse of the economy and they have come to condition of a country. For example, SENSEX is
be used as indicators of inflatory or deflatory tendencies: often seen as a leading indicator of India’s economic
Following is a list of users of the index numbers: strength and market sentiment.
1. Index numbers help in establishing trends:
Indexes, when analyzed reveal a general trend of
the phenomenon under study. For example, index
number of industrial production of the country not 22.4 Relative index
only reflects the trends in the phenomenon but are A price relative index is the ratio of the price of a specific
actually useful in determining factors leading to product in one period to the price of the same product in
industrial production. some other period. It is the simplest form of index.
2. Index numbers help in policy making: Index number
help the policy makers in a government or an
organisation in crafting new policies. For example, it EXAMPLE 22.1
is widely known that the dearness allowance, (a major The inflation rate for six months is given in following table.
component of the salary of an employee) is linked to Taking the first month as the base period find inflation
the cost of living index, usually the consumer price index numbers for the remaining five months.
index. Whenever the government of the management
of an organisation announces its wage policy the Month 1 2 3 4 5 6
basis will be the cost of living index. Thus, indices Inflation rate (%) 3.44 4.09 4.07 4.05 3.98 3.97
guide policy making.

Sol :
3. Index numbers help determine the purchasing
power of the rupee: Indices are used to determine
the purchasing power of the rupee. The consumer Click : www.nodia.study/lema/vm101
price index for industrial workers-CPI(IW) increased
from 100 in 2001 to 198 in January 2012. The real
purchasing power of the rupee is found out as follows.
100 = 0.505 EXAMPLE 22.2
The petrol prices for six months is given in following.
198
Taking the first month as the base period, find petrol
It indicates that if the rupee was worth 100 paise in
price index numbers for the remaining five months.
2001 its purchasing power is 50.5 paise in 2012.
4. Index numbers help deflate time series data: Indexes

Sol :
play an important role in adjusting the original data
to reflect the reality. For example, nominal income
(income at current prices) can be transformed into Click : www.nodia.study/lema/vm102
real income (reflecting the actual purchasing power)
by using income deflators. Similarly, suppose that the
industrial production is represented in value terms EXAMPLE 22.3
(i.e., product of volume of production and price). If The gold prices for six months is given in following table.
the subsequent yars value industrial production were Taking the first month as the base period, find gold price
to increase by 25%, this increase may not be a result index numbers for the remaining five months.
of increase in the volume of production as one would


Sol :
assume. It could be because of the increase in the
price. This inflation which has caused the increase
in the series can be eliminated by the usage of an
chapter 22 Index Number Page 295

Click : www.nodia.study/lema/vm103 Click : www.nodia.study/lema/vm107

EXAMPLE 22.4 22.5 Steps in Constructing Index Numbers

Between 2002 and 2006 the price of a commodity increased
The various steps involved in constructing a index number
by 40% while the production of the commodity decreased
are as follows:
by 20%. By what percentage did the value of production
of the commodity change with respect to its value in 2002? 22.5.1 Defining (Stating) the Purpose of the Index


Sol : Number
An index number which is designed keeping specific
Click : www.nodia.study/lema/vm104 objective in mind is a very powerful tool. Hence, a clear
definition of the purpose will help in selection of the right
index number. The subsequent steps involving the selection
of items, base period, weights, etc., depend mainly on the
EXAMPLE 22.5 purpose. Absence of clear definition of purpose leads often
The price index of cosmetics was 110 in 2001 with base leads to construction of an unsuitable index number.
as 1995 and 120 in 2002 with 2001 as base. It further For example, an index whose purpose is to measure
increased by 30% in 2003 in relation to the price index consumer price index should not include wholesale rates
of 2002 and decreased by 10% in 2004 as compared to its of items while the index number meant for slum colonies
level in 2003. Find the index for 2004 with 1995 as base. should not include luxury items like cars air-conditioners,


Sol : etc.

22.5.2 Selecting the Base Period

Click : www.nodia.study/lema/vm105 Base period, as we have seen earlier in the chapter, is
the time period that serves as a basics for comparison in
the index number. Hence, while constructing the index,
an appropriate base period should be selected. It must
EXAMPLE 22.6
be kept in mind that this base year must be a normal
Following table shows the national income at 1990 prices
year and an economically stable year. In other words, the
(` billion) and price index (1990 base) in years 2000 to
year should be free of wars, floods, famines, etc., with
2005.
no abnormal variations. Also, the base year should not
Year 2000 2001 2002 2003 2004 2005 be too distant in the past and the consumption patterns
during the two periods should not differ much. Note that,
National 400 410 420 440 460 480
depending on the situation, fixed base index number or
Income
chain base index number can be prepared.
Price Index 105 110 112 120 127 130
Compute the series of national income at current prices: 22.5.3 Selecting the Items


Sol : The purpose of constructing an index number will usually
help us in selecting the items for it. For example, a
wholesale price index number requires items which are
Click : www.nodia.study/lema/vm106 transacted at the wholesale market. Similarly, a consumer
price index for a group of people requires items which are
consumed by that particular group of people. The items
for a CPI for another group would differ with the habits,
EXAMPLE 22.7 customs and standard of living. Generally, there are many
The SENSEX for six months is given in following table. items that could be included in the index number. But,
Talking the first month as the base period, find sensex the list can be reduced by selecting the representative
index numbers for the remaining five months. items only.


Sol :
22.5.4 Obtaining Price Quotations
Page 296 Index Number chapter 22

After the items are selected for constructing the index 22.6.2 Quantity Index
number, price quotations for these items should be
A quantity index measures the changes in quantity from
obtained from authentic sources. If different places or
one period to another. If in the above example, we are
agencies are involved, then the prices should be averaged.
interested in the quantum of production of edible oils,
22.5.5 Selecting the Appropriate System of Weight instead of the price of edible oils, then we are comparing
quantities in two different years or over a period of time.
The items considered in constructing index do not always It is the quantity index that needs to be constructed
have equal weights. Weights are attached to these items here. Index of industrial production (IIP) and index of
according to their importance. For example, it is universally agricultural production are some popularly used quantity
argued that wheat is the most important cereal as against indices.
other cereals for the North Indians. Hence, highest weight
should be attached to this item while constructing an 22.6.3 Value Index
index number which includes wheat.
The value index is a combination index. It combines
Mostly, the weights are quantities in the base
price and quantity changes to present a more spatial
period, current period or any other period. Sometimes,
comparison. Value index numbers as such measure
a combination of quantities in different periods may be
changes in net monetary worth. Usually value index is
considered weights.
used in sales, inventories, foreign trade, etc. Though it
22.5.6 Selecting the Appropriate Formula enables comparison of value of a commodity in a year to
the value of that commodity in a base year, it has limited
The selection of formula is based mainly as the availability use. Its limited use is owing to its inability to distinguish
of data. Depending on the availability of data regarding the effects of price and quantity separately.
quantities Laspeyre’s Paasche’s, Fisher’s or any other Export value index and import value index are
index number is calculated (All these index numbers are popular value index numbers.
introduced in the subsequent sections.) While selecting Remarks: Special purpose index numbers: A few index
the formula, care should be taken to see that maximum numbers such as consumer price index, industrial
use of available data is made. production, etc., are constructed for specific purposes
depending on the nature and degree of relationship
between groups and items.
22.6 Types of Index Numbers

Note
There are three types of principal indexes: 1. Index number for the base year is always 100.
1. Price index 2. Price index is 130 means price level in the current
2. Quantity index year is 130% of the price level in the base year.
3. Value index 3. Index number for 2012 with base 2001 is 275 means
average price level has increased by 175% from 2001
22.6.1 Price Index to 2012.
The price index is the most frequently used form of index 4. Index number for 2012 with base 2001 is 95 means
numbers. Price index numbers indicate the general level of average price level has increased by 5% from 2001 to
prices of articles in the current period as compared to that 2012.
of the base period. For example, a price index for edible 5. Average price level in 2012 is double the average
oils would compare changes in the price of edible oils. If price level of 2001 means index of prices for 2012
we are trying to compare the price of edible oils this year with base 2001 is 200.
to the prices of edible oils last year, it involves.
(i) a comparison of two price situations over time, and
(ii) the heterogeneity of the edible oils given the various 22.7 Notations and Symbols Used in Index
varieties of oil. Numbers
By constructing a price index number, we are summarizing
It is customary to denote the base year by ‘0’ and the
the price movements of each type of oil in this group of
current year by 1 in index numbers.
edible oils into a single number. The wholesale price index
Thus,
(WPI), consumer price index (CPI), and retail price index
(RPI) are some popularly used price indices. p0 = prices in the base period
chapter 22 Index Number Page 297

q0 = quantities consumed in the base period weights are assigned to the various items according
p1 = prices in the current period to their importance.
To sum up, the methods of constructing of indexes
q1 = quantities consumed in the current period
can be classified into categories as shown below.
P01 = Price index number for the current year with respect
to the base year
Q01 = Quantity index number for the current year with
respect to the base year
V01 = Value index number for the current year with
respect to the base year
P = p1 # 100 Price relative
p0

Q = q1 # 100 Quantity relative

q0

W = Weight

22.8 Limitations of Index Numbers

1. Index numbers are based on only few items and not
all items.
2. Index numbers suffer from the limitations of Random
sampling used in selection of items. 22.10 Simple Index Numbers
3. Index numbers generally do not take into account This is unweighted index numbers. In this index numbers,
changes in the quantity of products. weights are not assigned to the various items. Two
4. Index numbers suffer from the limitations of the unweighted index number are discussed below:
method used for their construction. Each method has
its own merits and limitations. No particular method 22.10.1 Simple Aggregative Price Index
is suitable for all circumstances.
This is the simplest method of constructing an index. An
5. Index numbers suffer from the selection of abnormal
aggregate price index or composite price index measures
base period.
the average price change for a basket of related items from
6. Index numbers suffer from the problems of
the base period to the current period. When this method
comparability and reliability.
is used to construct a price index, the total of the current
7. International comparisons of index numbers are not
year prices of the various commodities is divided by the
possible since the items of index differ from country
total of the base year prices and this quotient is multiplied
to country.
by 100.
Σp1
i.e., P01 = 100
Σp0 #
22.9 Methods of Constructing Index where p0 = prices in the base period
Numbers
p1 = prices in the current period
There are two approaches for constructing an index
Σp0 = Sum of prices of all items in the base year
number, namely:
Σp1 = Sum of prices of all items in the current
1. The aggregates method.
year
2. The average of relatives method.
Note that the index constructed in either of these P01 = Price index
methods could be: Steps:
(a) An unweighted (Simple) index: An unweighted or 1. Add the current year prices of all the items i.e.,
simple index is an index where equal weights are obtain Σp1 .
assigned implicitly. 2. Add the base year prices of the items ^Σp0h
(b) A weighted index: A weighted index is an index where 3. Divide Σp1 by Σp0 and multiply the quotient by 100
Page 298 Index Number chapter 22

to get the price index P01 . EXAMPLE 22.10

Computation of Index Numbers by Simple Aggregative
Merits and Demerits of Simple Aggregates Method
Method when Index Numbers are given for two or more
Merits: years. From the following data, compute index taking 2000-
1. This is the simplest method of constructing index 2002 as the base period by simple aggregative method:
numbers.
2. This is an intuitively easy method to understand. Year Price of Rice (` per kg.)
Demerits: 2000 20
1. It does not consider the relative importance of the
various commodities involved. 2001 25
2. The units used in the price or quantity quotations 2002 30
can exert a big influence on the value of the index. 2003 45
2004 63

EXAMPLE 22.8

Sol :

From the following data, compute an index for the year
2002 taking 2001 as base by simple aggregative method:
Click : www.nodia.study/lema/vm110
Commodity 2001 Price (`) 2002 Price (`)
Rice 1 5
Wheat 2 4 EXAMPLE 22.11
The prices of there commodities A, B and C increased
Pulses 3 3
from ` 60, ` 10 and ` 15 in 2008 to ` 75, ` 15 and ` 20
Milk 4 2 respectively in 2010. Using the simple aggregate method,
find by much on an average the prices have increased?


Sol :


Sol :

Click : www.nodia.study/lema/vm108
Click : www.nodia.study/lema/vm111

EXAMPLE 22.9
From the following data, compute index using simple EXAMPLE 22.12
aggregative method: For the following given data construct an index number
(a) taking 2000 as the base year for 2015 taking 2014 as base.
(b) taking 2003 as the base year
Commodity Price in 2014 Price in 2015
Year Price of Rice (` per kg.) Rice 90 95
2000 20 Wheat 40 60
2001 25 Pulses 90 110
2002 30 Milk 30 35
2003 45


Sol :
2004 63

Sol :
Click : www.nodia.study/lema/vm112
Click : www.nodia.study/lema/vm109
EXAMPLE 22.13
For the following data calculate the price index number
chapter 22 Index Number Page 299

using simple aggregative method using 2016 as base year. EXAMPLE 22.16
From the following data calculate value index number
Price (in `) using simple aggregative method.
Commodity
2016 2018
Commodity Base year Current year
Rice 30 50
Price Quantity Price Quantity
Wheat 100 150
Rice 4 15 5 25
Milk 20 40
Pulses 8 20 12 30
Rent 80 100
Sugar 6 25 8 30


Sol : Oil 14 10 21 10

Sol :
Click : www.nodia.study/lema/vm113
Click : www.nodia.study/lema/vm116
EXAMPLE 22.14
Find x if the price index numbers using simple aggregative
method is 160. EXAMPLE 22.17
From the following data find the price index number using
Commodity Base Year Price Current Year Price simple aggregative method using 1995 as base year.
Rice 36 60
Commodity P Q R S T
Wheat x 36
Price (in `) in 1995 15 20 24 22 28
Milk 12 24
Price (in `) in 2000 27 38 32 40 45
Fuel 48 72


Sol :


Sol :

Click : www.nodia.study/lema/vm117
Click : www.nodia.study/lema/vm114

EXAMPLE 22.18
EXAMPLE 22.15 Find the price index number using simple aggregative
From the following data calculate the quantity index method using 1995 as base year.
number using simple aggregative method using 2015 as
base year Commodity A B C D E
Price (in `) in 1995 42 30 54 70 120
Quantity (in kg)
Price (in `) in 2005 60 55 74 110 140
Commodity 2015 2019
Rice 50 45

Sol :
Wheat 12 15
Milk 16 14
Click : www.nodia.study/lema/vm118
Fuel 25 24
Rent 18 62
EXAMPLE 22.19


Sol :
From the following data find the price index number using
simple aggregative method using 2005 as base year.
Click : www.nodia.study/lema/vm115
Page 300 Index Number chapter 22

EXAMPLE 22.22
Vegetable Price ( `) in 2005 Price in (`)2012
The SENSEX for six months is given in following table.
Lady Finger 32 38 Talking the first month as the base period, find sensex
Capsicum 30 36 index numbers for the remaining five months.
Brinjal 40 60

Sol :
Tomato 40 62
Potato 16 28 Click : www.nodia.study/lema/vm122


Sol :

EXAMPLE 22.23
Click : www.nodia.study/lema/vm119 The inflation rate for six months is given in following table.
Taking the first month as the base period find inflation
index numbers for the remaining five months.
EXAMPLE 22.20

Sol :
From the following data find the quantity index number
using simple aggregative method :
Click : www.nodia.study/lema/vm123
Commodity I II III IV V
Base Year Quantities 140 120 100 200 225
Current Year Quantities 100 80 70 150 185 EXAMPLE 22.24
The petrol prices for six months is given in following.


Sol :
Taking the first month as the base period, find petrol
price index numbers for the remaining five months.

Click : www.nodia.study/lema/vm120

Sol :

Click : www.nodia.study/lema/vm124
EXAMPLE 22.21
The following are two sets of retail prices of a typical
family’s shopping basket. The data pertain to retail prices
during 2011 and 2012. EXAMPLE 22.25
The gold prices for six months is given in following table.
Commodity Unit Price (`) Taking the first month as the base period, find gold price
2011 2012 index numbers for the remaining five months.
Milk (1 litre) 40 45

Sol :
Eggs (1 dozen) 30 40
Butter (1 kg) 150 170 Click : www.nodia.study/lema/vm125
Bread (500 gm) 30 40
Calculate the simple aggregate price index for 2012 using
2011 as the base year. EXAMPLE 22.26
Find x if the Price Index Number using Simple Aggregate


Sol :
Method is 200

Commodity P Q R S T
Click : www.nodia.study/lema/vm121 Base Year Price 20 12 22 23 13
Current Year Price 30 x 38 51 19
chapter 22 Index Number Page 301

Sol : M 20 21
N 5 6
Click : www.nodia.study/lema/vm126 O 2 3
P 7 14
22.10.2 Simple Average of Price Relatives Method
In this method, an average of the price relatives is calculated.

Sol :
Theoretically, any of the measures of central tendency can
be used to obtain the index. But, conventionally, the price
relatives are averaged either by the arithmetic mean or Click : www.nodia.study/lema/vm127
the geometric mean. When arithmetic mean is used for
averaging the relatives, the formula for computing the
index is EXAMPLE 22.28
P01 = ΣP Compute a price index for the following by
n (a) simple aggregate and
p1 (b) average of price relative method.
where P = 100
p0 #
Commodity : A B C D E F
Merits and Demerits of Simple Average of Price Relatives Price in 2014 (`) : 20 30 10 25 40 50
Merits : Price in 2015 (`) : 25 30 15 35 45 55
1. Extreme items do not influence the index. Equal
importance is given to all the items.

Sol :
2. This index is not influenced by the units of
measurement of prices. Relatives are pure numbers
and are, therefore, independent of the original units. Click : www.nodia.study/lema/vm128
Consequently, index numbers computed by this
method would be the same regardless of the way
in which prices are quoted. Thus, simple average of
EXAMPLE 22.29
price relatives are said to meet what is called the
Construct the consumer price index number for 2019
‘units test’.
taking 2018 as the base year, and using simple average of
Demerits :
price relative method, for the following data:
1. While constructing this index number difficulties are
faced with regard to the selection of an appropriate Price (in `)
Items
average. Arithmetic mean is not always a justified 2018 2019
method of averaging as it causes an upward bias. Butter 200 210
The use of geometric mean involves computational
difficulties. Other averages are hardly ever used. Cheese 160 120
2. The relatives are all assigned equal importance when Milk 30 30
in reality this hardly is the case. Some relatives are Eggs 28 28
more important than others economically.


Sol :

EXAMPLE 22.27 Click : www.nodia.study/lema/vm129

Compute the price index number for the following data
using simple average of price relatives.

Price (`) EXAMPLE 22.30

Commodity From the following table calculate quantity index numbers
2010 2011
for 2015 with quantities in 2013 as base. All quaityt are
L 10 16 given in kiligrams.
Page 302 Index Number chapter 22

EXAMPLE 22.33
Item A B C D E
Apply simple average of relatives method to calculate
Quantity (2013) 12 15 18 20 30 index number for 2015 from the following data with base
Quantity (2015) 24 30 27 25 30 2010.
(i) Using simple aggregative method. Commodities : A B C D E
(ii) Using simple average of relatives method applying
Prices in 2015 15 20 10 25 40
arithmetic mean.
Prices in 2010 10 12 5 20 35


Sol :


Sol :

Click : www.nodia.study/lema/vm130
Click : www.nodia.study/lema/vm133
EXAMPLE 22.31
From the data given below construct the price index EXAMPLE 22.34
number for the year 1983 taking 1982 as base and using Construct an index number for the data given below by
simple average of price relatives method.. using the simple average of price relatives method.
Commodities Price (`) Article Prices in 2000 (`) Prices in 2005 (`)
1982 1983 A 5 10
A 6 10 B 4 12
B 2 2 C 8 6
C 4 6 D 7 7
D 10 12 E 6 3
E 8 12 F 5 4


Sol :

Sol :

Click : www.nodia.study/lema/vm131 Click : www.nodia.study/lema/vm134

EXAMPLE 22.32 EXAMPLE 22.35

From the following data, construct an index number for Compute an index number from the following data by
the year 2018 taking 2019 as base by the simple average of using simple average of price relatives method.
relatives method using mean.
Commodity Prices in 2005 (`) Prices in 2008 (`)
Commodities : A B C D E
A 100 120
Prices in ` 2018 10 4 15 2 20
B 50 60
Prices in ` 2019 12 5 18 3 22
C 30 45


Sol : D 20 24

Sol :
Click : www.nodia.study/lema/vm132
Click : www.nodia.study/lema/vm135
chapter 22 Index Number Page 303

EXAMPLE 22.36
Vegetable Price ( `)
Find price index number by simple average of price
relatives method from the following data: 2007 2010
Lady Finger 16 19
Commodities Wheat Milk Fish Sugar
Capsicum 15 18
Base Price 5 8 25 6
Brinjal 20 30
Current Price 7 10 32 12
Tomato 20 31


Sol : Potato 8 14
Ans : 141.77

Click : www.nodia.study/lema/vm136

4. The following are two sets of retail prices of a typical

family’s shopping basket. The data pertain to retail
prices during 2013 and 2015.
E X ERCISE 22.1 Commodity Unit Price (`)
1. From the following data, compute an index for the 2013 2015
year 2012 taking 2012 as base by simple aggregative Milk (1 litre) 8 10
method:
Eggs (1 dozen) 6 8
Commodity 2011 Price (`) 2012 Price (`)
Butter (1 kg) 27 33
P 3 15
Bread (500 gm) 9 11
Q 6 12 Calculate the simple aggregate price index for 2012
R 9 9 using 2011 as the base year.
S 12 6 Ans : 124
Ans : 140

5. Find the price index number using simple aggregative

method using 1995 as base year.
2. From the following data, compute an index for the
year 2015 taking 2014 as base by simple aggregative Commodity A B C D E
method: Price (in `) in 1995 43 29 55 69 120
Commodity 2014 Price (`) 2015 Price (`) Price (in `) in 2005 59 56 76 109 139
U 13 16 Ans : 138.92
V 15 18
W 12 15
X 20 23
6. From the following data find the quantity index
Ans : 120 number using simple aggregative method :
Commodity P Q R S T
Base Year Quantities 144 126 99 207 224

3. From the following data find the price index number Current Year Quantities 106 79 77 152 186
using simple aggregative method using 2007 as base Ans : 75
year.
Page 304 Index Number chapter 22

7. Construct the consumer price index number for 2015 Base Price 10 12 25 8
taking 2013 as the base year, and using simple average
of price relative method, for the following data: Current Price 14 15 32 16
Ans : 148.25
Price (in `)
Items
2013 2015
Butter 100 105
Cheese 64 48
Milk 17 17
Eggs 18 18 22.11 Weighted Price Indexes
Ans : 95 While constructing weighted price indexes, rational weights
are assigned to all items or commodities in an explicit
manner. Such weights indicate the relative importance of
items or commodities included in the calculation of an
8. From the data given below construct the price index index. The weights used are of two types, quantity weights
number for the year 1983 taking 1982 as base and and value weights. There are two price indexes that are
using simple average of price relatives method. commonly in use.
1. Weighted Aggregate Price Index
Commodities Price (`)
2. Weighted Average of price Relative index
1982 1983
A 18 30
B 6 6
C 12 18 22.12 Weighted Aggregate Price Index
D 30 36 In a weighted aggregate price index, each item in the basket
of items chosen for calculation of the index is assigned a
E 24 36
weight according to its importance. In most cases, the
Ans : 137.34 quantity of usage is the best measure of importance.
Hence, we should obtain a measure of the quantity of
usage for the various items in the group. This explicit
weighting allows us to gather more information than just
9. Compute an index number from the following data by the change in price over a period of time as well as improve
using simple average of price relatives method. the accuracy of the general price level estimate.
Weight is assigned to each item in the basket in
Prices (`)
various ways and the weighted aggregates are also used in
Commodity 2015 2020 different ways to calculate an index. A few methods (or
P 85 102 approaches) to determine weights (value) to be assigned
Q 35 42 to each item in the basket are as follows:
1. Laspeyre’s Method
R 42 63 2. Paasche’s Method
S 25 30 3. Dorbish and Bowley’s Method
Ans : 12.7 4. Fisher’s ideal Method
5. Marchall-Edgeworth’s Method
6. Walsch’s Method
7. Kelly’s Method

10. Find price index number by simple average of price 22.12.1 Laspeyre’s Weighting Method
relatives method from the following data:
This method suggests to treat quantities as constant at
Commodities Wheat Milk Fish Sugar base period level and are used for weighting price of each
item or commodities both in base period and current
chapter 22 Index Number Page 305

period. Since this index number depends upon the same Commodity Base year Current year
base price and quantity, therefore one can directly compare
the index of one period with another. The formula for Price Quantity Price Quantity
calculating Laspeyre’s price index, named after the A 20 50 50 45
statistician Laspeyre’s is given by B 50 12 80 15
Σp1 q0
Laspeyre’s price index P01 (L) = 100 C 10 16 25 14
Σp 0 q 0 #
D 30 25 45 24
where p1 = prices in the current period
E 40 18 60 62
p0 = prices in the base period


Sol :
q0 = quantities consumed in the base period
Advantages and Disadvantages of Laspeyre’s Method
Advantages : Click : www.nodia.study/lema/vm138
The main advantage of this method is that it uses only
one quantity measure based on the base period and
therefore we need not keep record of quantity consumed in EXAMPLE 22.39
each period. Moreover, having used the same base period Calculate Laspeyre’s Price index numbers from following
quantity, we can compare the index of one period with given data.
another directly.
Disadvantages : Commodity Base year Current year
We know that the consumption of commodities decreases Price Quantity Price Quantity
with relatively large increases in price and vice versa. Since
A 8 20 11 15
in this index the fixed quantity weights are determined
from the base period usage, it does not adjust such changes B 7 10 12 10
in consumption and therefore tends to result in a bias in C 3 30 5 25
the value of the composite price index.
D 2 50 4 35

Sol :
EXAMPLE 22.37
For the data given in the following table, compute
Laspeyres Price Index. Click : www.nodia.study/lema/vm139
Commodity p0 q0 p1 q1
A 10 30 12 50 EXAMPLE 22.40
B 8 15 10 25 Calculate Laspeyre’s Price index numbers from following
given data.
C 6 20 6 30
D 4 10 6 20 Item Base year Current year
Price Quantity Price Quantity


Sol :
I 10 9 20 8
II 20 5 30 4
Click : www.nodia.study/lema/vm137 III 30 7 50 5
IV 40 8 60 6

EXAMPLE 22.38

Sol :

Calculate Laspeyre’s Price index numbers from following
given data.
Click : www.nodia.study/lema/vm140
Page 306 Index Number chapter 22

EXAMPLE 22.41 Click : www.nodia.study/lema/vm143

Calculate Laspeyre’s Price index numbers from following
given data.

Commodity Base year Current year EXAMPLE 22.44

Price Quantity Price Quantity Construct Laspeyre’s index numbers for 2019 using 2018
being the base year :
I 10 12 20 9
II 20 4 25 8 Article 2018 2019
III 30 13 40 27 Price Quantity Price Quantity
IV 60 29 75 36 A 2 6 3 5
B 3 7 4 6


Sol :
C 4 10 5 12

Click : www.nodia.study/lema/vm141

Sol :

Click : www.nodia.study/lema/vm144
EXAMPLE 22.42
From the following data, compute Laspeyre’s price index 22.12.2 Paasche’s Weighting Method
number for the current year. In the Paasche’s method, the price of each item or
commodity is weighted by the quantity in the current
Commodity Base year Current year
period instead of the base year as used in Laspeyre’s
Price Quantity Price Quantity method. Paasche’s formula for calculating the index is
A 1 6 5 8 given by
B 2 7 4 7 Σp1 q1
Paasche price index P01 (P) =
Σp0 q1
C 3 8 3 6
where p1 = prices in current year
D 4 9 2 5
p0 = prices in base year


Sol : q1 = quantities in current year
Advantages and Disadvantages of the Paasche’s Method
Click : www.nodia.study/lema/vm142 Advantages :
The Paasche’s method combines the effects of changes
in price and quantity consumption patterns during the
current year. It provides a better estimate of changes in
EXAMPLE 22.43
the economy than Laspeyre’s method. If the prices or
Construct price index number from the following data by
quantities of all commodities or items change in the same
using Laspeyre’s method.
ratio, then the values of the Laspeyre’s and Paasche’s
Commodity Base year Current year indexes will be same.
Disadvantages :
Price Quantity Price Quantity
This method requires knowledge of the quantities
A 4 40 2 60 consumed of all commodities in each period. Getting the
B 2 50 5 100 data on the quantities for each period is either expensive
or time-consuming. Moreover, each year the index number
C 3 10 4 40
for the previous year requires recomputation to reflect the
D 1 30 3 50 effect of the new quantity weights. Thus, it is difficult to
compare indexes of different periods when calculated by


Sol :
the Paasche’s method.
Comparison of Laspeyre’s And Paasche’s Methods
chapter 22 Index Number Page 307

S.No. Basis of L as p e y r e ’ s P aas c h e ’ s Click : www.nodia.study/lema/vm145

Comparison Method Method
1. Weights Weights are Weights are
the base year the current EXAMPLE 22.46
quantities. year quantities. For the following data, calculate the price index number
2. Change in Weights do not Weights of 2009 with 2008 as the base year, using: (a) Laspeyre’s
weights change from change from method, and (b) Paasche’s method.
one period to one period to Commodity 2008 2009
another period. another period
since new Price Quantity Price Quantity
weights for A 20 8 40 6
each period are B 50 10 60 5
considered.
C 40 15 50 15
3. In case of In case of In case of
D 20 20 20 25
rising prices rising prices, it rising prices, it
overestimates underestimates

Sol :
the rise in the rise in
prices. prices.
4. Comparison The Indices The indices for Click : www.nodia.study/lema/vm146
for different different years
years can be can not be
compared with compared with EXAMPLE 22.47
each other each other Construct price index number from the data given below
since weights since weights by using Paasche’s method.
are the same are not the
base year same. Commodity 2006 2008
weights. Price Quantity Price Quantity
5. Consumption It does not It takes into A 10 5 10 15
pattern take into consideration
consideration the B 4 20 5 40
the consumption C 2 30 7 30
consumption pattern. D 5 15 12 10
pattern.


Sol :

EXAMPLE 22.45 Click : www.nodia.study/lema/vm147

From the following data, compute Paasche’s price index
number for the current year. Price is given in ` and
quantity is given in kg.
EXAMPLE 22.48
Item Base year Current year Using the figures of the previous illustration, construct the
index numbers for 2019 taking 2018 as base by Paasche’s
Price Quantity Price Quantity
method. Price is given in ` and quantity is given in kg.
A 1 6 5 8
B 2 7 4 7 2018 2019

C 3 8 3 6 Item Price Quantity Price Quantity

D 4 9 2 5 A 2 6 3 5
B 3 7 4 6


Sol :
Page 308 Index Number chapter 22

C 4 10 5 12 Commodity Base year Current year

Price Quantity Price Quantity


Sol :
D 12 15 15 15

Click : www.nodia.study/lema/vm148

Sol :

Click : www.nodia.study/lema/vm151
EXAMPLE 22.49
Find x in the following table if Laspeyre’s and Paasche’s
Price Index Numbers are equal.
EXAMPLE 22.52
Item Base year Current year Calculate Laspeyre’s and Paasche’s Price Index Number
Price Quantity Price Quantity for the following data.

A 2 10 2 5 Commodity Base year Current year

B 2 5 x 2 Price Quantity Price Quantity
A 20 18 30 15


Sol :
B 25 8 28 5
C 32 5 40 7
Click : www.nodia.study/lema/vm149 D 12 10 18 10

Sol :
EXAMPLE 22.50
In the following table p and q represent price and quantity
respectively and subscript for the time period. Click : www.nodia.study/lema/vm152
Commodity p0 q0 p1 q1
A 1 10 2 5 EXAMPLE 22.53
B 1 5 x 2 In the following table p and q represent price and quantity
respectively and subscript for the time period.
Find x if the ratio between Laspeyres L and Paasche’s P
index numbers is L : P = 28 : 27 Commodity p0 q0 p1 q1


Sol : A 1 10 2 5
B 1 5 x 2
Click : www.nodia.study/lema/vm150 Find x if the ratio between Laspeyres L and Paasche’s P
index numbers is L : P = 28 : 27


Sol :
EXAMPLE 22.51
Find x if Paasche’s Price Index Number is 140 for the
following data. Click : www.nodia.study/lema/vm153
Commodity Base year Current year 22.12.3 Fisher’s Ideal Method
Price Quantity Price Quantity This method (or approach) is the geometric mean of the
A 20 8 40 7 Laspeyre’s and Paasche’s indexes and the formula in given
by
B 50 10 60 10
Σp1 q0 Σp1 q1
Fisher’s ideal price index = 100
C 40 15 60 x Σp0 q0 # Σp0 q1 #
chapter 22 Index Number Page 309

Advantages and Disadvantages of Fisher’s Method Item 2014 2015

Advantages : Price Expenditure Price Expenditure
Fisher’s method is also called ideal method due to on Quantity on Quantity
following reasons : Consumed Consumed
1. The formula is based on geometric mean which is
considered to be the best average for constructing A 8 200 65 1950
index numbers. B 20 1400 30 1650
2. The formula takes into account both base year and C 5 80 20 900
current year quantities as weights. Thus it avoids the
D 10 360 15 300
bias associated with the Laspeyre’s and Paasche’s
indexes. E 27 2160 10 600
3. This method satisfies essential tests required for a


Sol :
index, that is, time reversal test and factor reversal
test.
Disadvantages :
The calculation of index using this method requires
Click : www.nodia.study/lema/vm155
more computation time. Although the index number is
theoretically better than others discussed previously, it is
not fit for common use because it requires current quantity EXAMPLE 22.56
weights every time an index is calculated. From the following data, construct Fisher’s Index Number
: Here Price is per unit in ` and expenditure is in also `

Item Base year Current year

EXAMPLE 22.54
Price Total Price Total
Compute index number from the following data using
per unit Expenditure per unit Expenditure
Fisher’s ideal index formula.
P 2 40 5 75
Item 2014 2015
Q 4 16 8 40
Price Quantity Price Quantity
R 1 10 2 24
A 12 10 15 12
S 5 25 10 60
B 15 7 20 5


Sol :
C 24 5 20 9
D 5 16 5 14

Sol :
Click : www.nodia.study/lema/vm156
22.12.4 Doorbish and Bowley’s Index
Click : www.nodia.study/lema/vm154 Dorbish and Bowley Price Index is a weighted price index
which is the arithmetic mean of the Laspeyres and Paasche
price indices. It is given by the formula

EXAMPLE 22.55 P01 = L + P

2
Calculate from the following data, the Fisher’s ideal index
number for the year 2015. where L = Laspeyres index
P = Paasche index
Σp1 q0 Σp1 q1
+
Σp0 q0 Σp0 q1
or P01 = # 100
2
Page 310 Index Number chapter 22

EXAMPLE 22.57 index should be independent of the units in which prices

Given that Laspeyre’s and Paasche’s Index Number are 25 and quantities are quoted. All index number formulae
and 16 respectively. Find Dorbish-Bowley’s and Fisher’s except the simple aggregative index satisfy this test.
Price Index Number.
2. Time Reversal Test (TRT)


Sol :
According to Prof. Irving Fisher, who proposed this test,
an index number should be such that when the base
Click : www.nodia.study/lema/vm157 year and current year are reversed (inter changed), the
resulting index number should be reciprocal of the original
index number.
The time reversal test requires that the index
EXAMPLE 22.58 number computed backwards should be the reciprocal
If Laspeyre’s and Dorbish Price Index Number are 150.2 of the index number computed forwards, except for the
and 152.8 respectively, find Paasche’s Price Index Number. constant of proportionality.


Sol : Symbolically,
P0n # Pn0 = 1
where, P0n = Index number for period n with base
Click : www.nodia.study/lema/vm158 period 0.
Pn0 = Index number for period 0 with base

EXAMPLE 22.59 period n .

Given that Σp1 q1 = 250 , Σp0 q0 = 150 , Paasche’s index The following five index number formulae satisfy time
number = 150 and Dorbish-Bowley’s index number = 145 reversal test:
. Find Fisher’s Index number. (a) The Fisher’s ideal index number
(b) Simple geometric mean of place relatives


Sol : (c) Aggregative indices with fixed weights
(d) The weighted geometric mean of price relatives if we
use fixed weights
Click : www.nodia.study/lema/vm159 (e) Marshall-Edgeworth index formula.
3. Factor Reversal Test (FRT)

EXAMPLE 22.60 According to this test, also proposed by Prof. Irving

From the following information, calculate Laspeyre’s Fisher, the index number formula should be such that
index number and Paasche’s index number. Fisher’s index the price index and quantity index computed accordingly
number 160, Dorbish-Bowley’s index number 164, to the formula should be equally effective in indicating
changes.


Sol : Factor reversal test requires that the product of the
index number of prices (with quantities as weights) and the

Click : www.nodia.study/lema/vm160
index number of quantity (with prices as weights) should
indicate net change in value taking place in between the
two periods.
22.12.5 Tests of Adequacy of Index Numbers
Symbolically
Among the various index number formulae, it is difficult Σp1 q1
to select the most appropriate one. Various adequacy tests P01 # Q01 =
Σp0 q0
have been suggested. A few of them are:
where P01 and Q01 are price and quantity index
1. Unit test
numbers. Note that here P01 and Q01 are mere ratio-they
2. Time reversal test (TRT)
should not be expressed as percentages.
3. Factor reversal test (FRT)
Fisher’s ideal index number formula is the only one
4. Circular test
to satisfy this test.
1. Unit Test
4. Circular Test
The unit test requires that the formula for construction an
chapter 22 Index Number Page 311

This test is an extension of the time reversal test. The Commodity Base year Current year
test requires that if an index is constructed for the year ‘
a ’ with base year ‘b ’ and for the year ‘b ’ with base year ‘ Price Quantity Price Quantity
c ’, we ought to get the same result A 4 50 10 45
Symbolically B 10 12 16 15
P01 # P12 = P02 C 2 16 5 14
or P01 # P12 # P20 = 1 (notice that P20 = 1 ) D 6 25 9 24
P02
where P01 , P12 , P02 and P20 are price indices with E 8 18 12 62
three periods 0, 1 and 2. Ans : 187.77
Index number formulae that satisfy the circularity test
are:
(i) Simple aggregative index number
(ii) Fixed weight aggregative index number. 3. Calculate Laspeyre’s Price index numbers from
following given data.
Commodity Base year Current year
EXAMPLE 22.61
Price Quantity Price Quantity
Show that
(i) Laspeyre’s index number does not satisfy time A 8 5 11 3
reversal test. B 7 2 12 2
(ii) Paasche’s index number does not satisfy factor
C 3 6 5 5
reversal test.
(iii) Fisher’s index number satisfies time reversal test. D 2 10 4 7
Ans : 164.29


Sol :

Click : www.nodia.study/lema/vm161
4. From the following data, compute Paasche’s price
index number for the current year. Price is given in `
and quantity is given in kg.
Item Base year Current year
E X ERCISE 22.2 Price Quantity Price Quantity
A 2 6 10 8
1. For the data given in the following table, compute
B 4 7 8 7
Laspeyres Price Index.
C 6 8 6 6
Commodity p0 q0 p1 q1
D 8 9 4 5
A 5 30 6 50
Ans : 160
B 4 15 5 25
C 3 20 3 30
D 2 10 3 20
Ans : 118.97 5. For the following data, calculate the price index
number of 2009 with 2008 as the base year, using:
(i) Laspeyre’s method
(ii) Paasche’s method
2. Calculate Laspeyre’s Price index numbers from
following given data.
Page 312 Index Number chapter 22

Commodity 2008 2009 9. From the following data, construct Fisher’s Index
Number : Here Price is per unit in ` and expenditure
Price Quantity Price Quantity is in also `
A 4 8 8 6 Item Base year Current year
B 10 10 12 5 Price Total Price Total
C 8 15 10 15 per unit Expenditure per unit Expenditure

D 4 20 4 25 P 4 40 10 75
Ans : (i) 124.7 (ii) 121.77 Q 8 16 16 40
R 2 10 4 24
S 10 25 20 60
Ans : 219.12
6. In the following table p and q represent price and
quantity respectively and subscript for the time
period.
Commodity p0 q0 p1 q1
10. Given that Laspeyre’s and Paasche’s Index Number
A 3 50 6 25 are 36 and 64 respectively. Find Dorbish-Bowley’s and
B 3 25 x 10 Fisher’s Price Index Number.
Find x if the ratio between Laspeyres L and Paasche’s Ans : 50 and 48
P index numbers is L : P = 28 : 27
Ans : 12

22.13 Weighted Average of Price Relatives

7. Find x if Paasche’s Price Index Number is 140 for the
following data. In this method, appropriate weights (w ), are assigned
to various terms and a weighted average of the price
Commodity Base year Current year relatives is calculated. As earlier, either arithmetic mean
Price Quantity Price Quantity or geometric mean is used for averaging to obtain the
P 20 16 40 14 index.
When arithmetic mean is used for averaging, the
Q 50 20 60 20
weighted average of price relative is
R 40 30 60 x
P01 = ΣwP
S 12 30 15 30 Σw
Ans : 21.5 p1
where P = 100 is the price relative.
p0 #
Remarks :
1. The weights generally used are the values of the
8. Compute index number from the following data using items at the base year
Fisher’s ideal index formula. w = p0 q0
Item 2014 2015 2. Sometimes current year values are also used as
weights. In such cases
Price Quantity Price Quantity
w = p1 q1
P 12 20 15 20 3. Note that when base year values are used as weights
Q 15 14 20 10 to calculate the weighted arithmetic mean of price
R 24 10 20 18 relatives, the result is identical to the index number
as calculated by Laspeyre’s formula.
S 5 32 5 28
Ans : 115.76
chapter 22 Index Number Page 313

EXAMPLE 22.62 Click : www.nodia.study/lema/vm164

From the following data compute price index by the
weighted average of relative price.

Price (`)
Commodity Quantity
Base Year Current Year
Sugar 3.00 4.00 20 kg E X ERCISE 22. 3
Flour 1.50 1.60 40 kg
1. From the following data compute price index by the
Milk 1.00 1.50 10 lt weighted average of relative price.

Sol : Price (`)

Commodity Quantity
Base Year Current Year

Click : www.nodia.study/lema/vm162
Sugar 30 40 24 kg
Flour 15 16 48 kg
Milk 10 15 12 lt
EXAMPLE 22.63
Ans : 122.3077
A large manufacturer purchases a particular component
from three different vendors that differ in unit price and
quantity supplied. The relevant data for 2009 and 2010 2. A large manufacturer purchases a particular
are given below: component from three different vendors that differ in
unit price and quantity supplied. The relevant data
Supplier Quantity in 2009 Unit Prices (`) for 2009 and 2010 are given below:
2009 2010 Supplier Quantity in 2009 Unit Prices (`)
A 10 15 16 2009 2010
B 40 12 14 P 13 30 32
C 20 18 20 Q 52 24 28
Calculate the weighted average of price relative index. R 26 36 40


Sol : Calculate the weighted average of price relative index.
Ans : 113.13

Click : www.nodia.study/lema/vm163

3. Calculate the weighted aggregative price index for

EXAMPLE 22.64 2008 from the following data:
Calculate the weighted aggregative price index for 2008
Item Price in 2000 Price in 2008 Weights
from the following data:
P 20 25 10
Item Price in 2000 Price in 2008 Weights
Q 10 12 2
A 20 25 5
R 12 18 6
B 10 12 1
S 16 16 12
C 12 18 3
T 5 4 8
D 16 16 6
U 13 10 6
E 5 4 4 Ans : 110.63
F 13 10 3

Sol :
Page 314 Index Number chapter 22

4. From the following data compute price index by the The problem in constructing consumer price indexes
weighted average of relative price.: arise because variations in prices of commodities have to
Item Year 2009 Year 2010 be studied from the point of view of consumers living in
different regions or places. Since retail prices in different
Quantity Prices Prices places differ and the pattern of consumption is also not
P 21 45 32 identical at different places, therefore people living in
Q 84 36 28 different regions, pay different prices to purchase various
commodities. Moreover, the relative importance of various
R 21 36 40
commodities to all people is not identical. Therefore we
Calculate the weighted average of price relative index.
cannot construct one CLI for the whole country.
Ans : 113.13
22.14.1 Uses of Consumer Price Index (CPI) Number
The importance of the CPI can be seen from the following
:
5. From the following data compute price index by the 1. The CPI are used to formulate economic policy,
weighted average of relative price. escalate income payments, and measure real earnings.
Group Base Year Current Year 2. The CPI are used to measure purchasing power of
Price the consumer in rupees. The purchasing power of
Price Quantity the rupee is the value of a rupee in a given years
P 48 30 54 compared to a base year. The formula for calculating
Q 36 20 42 the purchasing power of the rupee is
Purchasing power = 1 100
R 24 34 50 Consumer price index #
S 72 44 84
3. When a time series is concerned with such rupee
T 84 50 96 values as retail sales amounts or wage rates, the price
Ans : 115.78 index is most frequently used to achieve deflation
of such time-series. The process of deflating can be
expressed in the form of a formula as
Money value
Real wage = 100
Consumer price index #
4. The CPI is used in wage negotiations and wage
contracts. Automatic adjustment of wages or the
22.14 Consumer Price Index dearness allowance component of the wages is done
The consumer price index, also known as the cost of living on the basis of the consumer price index.
index or retail price index, is constructed to measure the
amount of money which consumers of a particular class 22.14.2 Construction of a Consumer Price Index
have to pay to get a basket of goods and services at a The CPI is a weighted aggregate price index with fixed
particular point of time in comparison to what they the weights. The need for weighting arises because the
paid for the same in the base year. relative importance of various commodities or items for
The need for constructing consumer price indexes different classes of people is not the same. The percentage
arises because the general indexes do not highlight the of expenditure on different commodities by an average
effects of rise or fall in prices of various commodities family constitutes the individual weights assigned to
consumed by different classes of people on their cost the corresponding price relatives, and the percentage
of living. Moreover, different classes of people consume expenditure on five well-accepted groups of commodities
different types of commodities and even the same type of namely: (i) food, (ii) clothing, (iii) fuel and lighting, (iv)
commodities are not consumed in the same proportion by house rent, (v) miscellaneous.
different classes of people. To study the effect of rise or The weight applied to each commodity in the
fall in prices of different types of commodities, the Cost of market basket is derived from a usage survey of families
Living Index (CLI) are constructed separately for different throughout the country. The consumer price index or cost
classes of people. of living index numbers are constructed by the following
chapter 22 Index Number Page 315

two methods: Commodity Base Year Current Year

22.14.3 Aggregate Expenditure Method or Weighted Price Quantity Price Quantity
Aggregate Method A 1 6 5 8
This method is similar to the Laspeyre’s method of B 2 7 4 7
constructing a weighted index. To apply this method, C 3 8 3 6
the quantities of various commodities consumed by a
D 4 9 2 5
particular class of people are assigned weights on the basis
of quantities consumed in the base year. Mathematically Lenna was getting a salary of ` 10000 in the base period,
it is stated as what should be her salary in the current period if her
Consumer price index standard of living is to remain the same ? If she is getting
Total expenditure in current period a salary of ` 11000 in the current year, how much she
= 100
Total expenditure in base period # ought to have received an extra allowance to maintain her
former standard of living ?
Σp1 q0
=
100
Σp 0 q 0 #

Sol :

where p1 and p0 = prices in the current period and base

period, respectively Click : www.nodia.study/lema/vm166
q0 = quantities consumed in the base period

EXAMPLE 22.67
EXAMPLE 22.65 Calculate the cost of living index in for the data given in
From the following data construct cost of living index following table :
(CLI) numbers. Group Base Year Current Year
Commodity Base Year Current Year Price Quantity Price

Price Quantity Price Food 120 15 170

Rice (kg) 50 12 65 Clothing 150 20 190
Sugar (kg) 40 15 45 Fuel and Lighting 130 30 220
Wheat (kg) 45 5 50 House Rent 160 10 180
Milk (lit) 50 8 52 Miscellaneous 200 12 200
Oil (lit) 85 4 100


Sol :
Pulse (kg) 65 6 80

Sol : Click : www.nodia.study/lema/vm167

Click : www.nodia.study/lema/vm165
EXAMPLE 22.68
Calculate the cost of living index in for the data given in
following table :
EXAMPLE 22.66
From the following data, compute consumer price index Group Base Year Current Year
number for the current year using Aggregate Expenditure Price Quantity Price
Method :
Food 40 15 45
Clothing 30 10 35
Fuel and Lighting 20 17 25
Page 316 Index Number chapter 22

Group Base Year Current Year the base year from the following data:

Price Quantity Price Item Quantity (in Price (in </ Price (in </
House Rent 60 22 70 Units) 2005 Unit) 2005 Unit) 2010

Miscellaneous 70 25 80 A 100 8.00 12.00

B 25 6.00 7.50


Sol :
C 10 5.00 5.25
D 20 48.00 52.00
Click : www.nodia.study/lema/vm168 E 25 15.00 16.50
F 30 9.00 27.00

EXAMPLE 22.69

Sol :

Calculate the cost of living index in for the data given in
following table :
Click : www.nodia.study/lema/vm170
Group Base Year Current Year
Price Quantity Price

Food 132 10 170 EXAMPLE 22.71

Clothing 154 12 160 Consider the following table for calculation of cost of
living index.
Fuel and Lighting 164 20 180
House Rent 175 18 195 Price
Group Weight
Miscellaneous 128 5 120 2015 2019
Food 10 24 60


Sol :
Clothing 32 60 05
Fuel 20 50 10
Click : www.nodia.study/lema/vm169 Rent 40 120 15
22.14.4 Weighted Average of Price Relative Method Miscellaneous 36 72 10
or Family Budget Method (i) Find cost of living index (CLI) number by family
To apply this method the family budget of a large number budget method.
of people, for whom the index is meant, are carefully (ii) If the expenditure in 2015 is ` 15000, find expenditure
studied. Then the aggregate expenditure of an average in 2019.
family on various commodities is estimated. These values

Sol :
constitute the weights. Mathematically, consumer price
index is stated as
Consumer price index = ΣPV # 100
Click : www.nodia.study/lema/vm171
ΣV
p1
where P = Price relatives, 100
p0 # EXAMPLE 22.72
From the following data compute Consumer Price Index
V = Value weight, p0 q0
for the year 2002 taking 2001 as base using Family Budget
Method

EXAMPLE 22.70 Commodity 2001 2001 2002

Calculate the index number using Price Quantity Price
(i) Aggregate expenditure method, and A 1 6 5
(ii) Family budget method for the year 2000 with 1995 as
chapter 22 Index Number Page 317

EXAMPLE 22.75
Commodity 2001 2001 2002
Base year weights (W ) and current year price relatives (I
Price Quantity Price
) are given in following table. Calculate the cost of living
B 2 7 4 index.
C 3 8 3
Group I W
D 4 9 2
Food 200 30


Sol : Clothing 150 20
Fuel and Lighting 120 10
Click : www.nodia.study/lema/vm172 House Rent 180 40
Miscellaneous 160 50

Sol :
EXAMPLE 22.73
Base year weights (W ) and current year price relatives (I
) are given in following table. Calculate the cost of living
index.
Click : www.nodia.study/lema/vm175
Group I W
Food 70 5 EXAMPLE 22.76
Base year weights (W ) and current year price relatives (I
Clothing 90 3
) are given in following table. Fins the value of y .
Fuel and Lighting 100 2
House Rent 60 4 Group I W

Miscellaneous 80 6 Food 180 4

Clothing 120 5


Sol :
Fuel and Lighting 300 6
House Rent 100 x
Click : www.nodia.study/lema/vm173 Miscellaneous 160 3

Sol :
EXAMPLE 22.74
In the following table base year weights (W ) and current
year price relatives (I ) are given. Calculate the cost of
Click : www.nodia.study/lema/vm176
living index.

Group I W EXAMPLE 22.77

Food 400 3 Base year weights (W ) and current year price relatives (I
) are given in following table. Find y if the cost of living
Clothing 300 3
index is 200
Fuel and Lighting 150 4
House Rent 120 5 Group I W

Miscellaneous 100 2 Food 180 4

Clothing 120 5


Sol :
Fuel and Lighting 160 3
House Rent 300 y
Click : www.nodia.study/lema/vm174 Miscellaneous 200 2

Sol :
Page 318 Index Number chapter 22

Click : www.nodia.study/lema/vm177 Items of Item Index Proportion of

Consumption in 2005 expenditure on item
Clothing 154 12%
EXAMPLE 22.78 Fuel and lighting 147 16%
Prepare Consumer Price Index Number from the following
data for 2004 and 2005 taking 2003 as base: Housing 178 8%
Miscellaneous 158 4%
Group 2003 2004 2005
Consumer price index in 2000 is considered as 100. Average
A 20 24 21 wages per month in 2000 is ` 2000.
B 1.25 1.50 1 (i) What should be the dearness allowance expressed as
C 5 8 8 percentage of wages?
(ii) What should be the average wages per worker per
D 2 2.25 2.12
month in 2005 in that town so that the standard of
Give weights to the four groups as 6, 4, 3 and 2 respectively living of the workers does not fall below the 2000


Sol : level?


Sol :

Click : www.nodia.study/lema/vm178
Click : www.nodia.study/lema/vm180
EXAMPLE 22.79
Compute the general price index given the following items EXAMPLE 22.81
of information: In calculating a certain cost of living index number, the
following weights were used: Food 15, clothing 3, rent 4,
Group of items Average Group Price
fuel and light 2, miscellaneous 1.
Expenditure per Index
(i) Calculate the index for a data when the average
household per
percentage increases in price of items in the various
month (`)
groups over the base period were 32, 54, 47, 78 and
Food 300 190 58 respectively.
Fuel and light 100 118 (ii) Lavanya was earning ` 20000 in the base period,
what should be her salary in the current period if her
House 150 140
standard of living is to remain the same?
Clothing 125 181


Sol :
Miscellaneous 75 101

Sol :
Click : www.nodia.study/lema/vm181

Click : www.nodia.study/lema/vm179
EXAMPLE 22.82
In 2004 for working class people wheat was selling at an
average price of ` 32 per 10 kg., cloth of ` 4 per metre,
EXAMPLE 22.80
house rent ` 60 per house and other items at ` 20 per
Following information relating to works in an industrial
unit. By 2005 cost of wheat rose by ` 8 per 10 per kg.,
town is given:
house rent by ` 30 per house and other items doubled in
Items of Item Index Proportion of price. The working class cost of living index for the year
Consumption in 2005 expenditure on item 2005 (with 2004 as base) was 160. By how much the cloth
rose in price during the period?
Food, drink and 132 60%
tobacco

Sol :
chapter 22 Index Number Page 319

Click : www.nodia.study/lema/vm182 Group Expenditure (`) Group Index

Rent ? 140
Fuel and Lighting 1000 118
EXAMPLE 22.83
Mukesh Agrawal works as accountant in privet company Miscellaneous 750 101
at Delhi and earn ` 35000 per month . The cost of living

Sol :
index for a particular month is given as 136. Using the
following information, find out the amount of money he
spent on house rent and clothing: Click : www.nodia.study/lema/vm185
Group Expenditure Group Index
Food 14000 180
EXAMPLE 22.86
Clothing ? 150
Calculate cost of living index (CLI) number from the
House Rent ? 100 following data.
Fuel and Lighting 5600 110
Group Item Group Index Weight
Miscellaneous 6300 80
Food 350 50


Sol : Rent 200 18
Clothing 220 10

Click : www.nodia.study/lema/vm183 Fuel and Electricity 250 8

Miscellaneous 280 14

Sol :
EXAMPLE 22.84
Owing to change in prices the consumer price index of
the working class in a certain area rose in a month by Click : www.nodia.study/lema/vm186
one quarter of what it was prior to 225. The index of
food became 252 from 198, that of clothing from 185 to
205, of fuel and lighting form 175 to 195, and that of
miscellaneous from 138 to 212. The index of rent, however, EXAMPLE 22.87
remained unchanged at 150. It was known that the weight From the following table find x if CLI is 215.
of clothing, rent and fuel, and lighting were the same.
Group Item A B C D E
Find out the exact weight of all the groups.
Group Index 254 174 160 x 211


Sol :
Weight 45 15 12 18 8

Click : www.nodia.study/lema/vm184

Sol :

Click : www.nodia.study/lema/vm187
EXAMPLE 22.85
Ramkaran works as textile worker in Ahemdabad and
earns ` 7500 p.m. The cost of living index for January, EXAMPLE 22.88
2016 is given as 160. Using the following data find out the In a working class consumer price index of a particular
amounts he spends on (i) Food, and (ii) Rent. town, the weights according to different group of items
Group Expenditure (`) Group Index were as follows

Food ? 190 Food Fuel Clothing Rent Misc.

Clothing 1250 181 55 15 10 12 8
Page 320 Index Number chapter 22

One mill compensated for the rise in the prices of food Click : www.nodia.study/lema/vm190
and rent but did not compensate for anything else and
fixes dearness allowance at 182%. Another mill of the
same town paid dearness allowance of 46.5 per cent which
EXAMPLE 22.91
compensated for the rise in fuel and miscellaneous groups.
During a certain period the cost of living index number
It is known that the rise in food is double the rise in fuel
goes up from 110 to 200 and the salary of the worker is
and the rise in miscellaneous groups is double the rise in
also raised from ` 325 to ` 500. Does the worker really
rent. Find the rise in food, fuel, rent and miscellaneous
gain, and if so, by how much in real terms?
groups.


Sol :


Sol :

Click : www.nodia.study/lema/vm188 Click : www.nodia.study/lema/vm191

EXAMPLE 22.92
EXAMPLE 22.89
Ramu earned ` 9000 per month in 2000. The cost of
The consumer price index over a certain period increases
living index increased by 70% between 2000 and 2003.
from 120 to 215 and the wages of a worker increases from
How much extra income should the worker have earned in
` 8800 to ` 12000. What is the gain or loss to the worker?
2003 so that he could buy the same quantities as in 2000?


Sol :


Sol :

Click : www.nodia.study/lema/vm189 Click : www.nodia.study/lema/vm192

EXAMPLE 22.90
EXAMPLE 22.93
Weekly take-home pay (wages) of labour and consumer
Cost of living index in 2015 is 200 and same in 2018 is
price index for respective years are shown in following
250. If a person monthly income is ` 11000 in 2015 what
table.
should be his income in 2018 in order to maintain the
Year Weekly take-home Consumer price same standard of living?
pay (wages) ` Index

Sol :
2000 10950 112.8

Click : www.nodia.study/lema/vm193
2001 11220 118.2
2002 11640 127.4
2003 12508 138.2
2004 13540 143.5 EXAMPLE 22.94
2005 13810 149.8 The cost of living index number for year 1995 and 1999
are 140 and 200 respectively. A person earns ` 11200 per
(i) What was the real average weekly wage for each
month in the year 1995. What should be his monthly
year?
earning in the year 1999 in order to maintain his standard
(ii) In which year did the employees have the greatest
of living as in the year 1995?
buying power?
(iii) What percentage increase in the weekly wages for

Sol :
the year 2005 is required (if any) to provide the same
buying power that the employees enjoyed in the year
in which they had the highest real wages. Click : www.nodia.study/lema/vm194


Sol :
chapter 31 Unit 6 Case Study Page 321

UNIT 6

Ca se Study Questions

EXAMPLE 31.1
Kanpur is a major industrial town of Uttar Pradesh, the Click : www.nodia.study/lema/zm163
northern state of India. This town is situated on the south
bank of river Ganga,located 80 km west of Lucknow, the
EXAMPLE 31.2
state capital. It is also known as the industrial capital of
What is cost living index number? A cost-of-living index
the state.
is a theoretical price index that measures relative cost of
living over time or regions. It is an index that measures
differences in the price of goods and services, and allows
for substitutions with other items as prices vary.

Following information relating to works in Kanpur is

given: In calculating a certain cost of living index number, the
following weights were used: Food 15, clothing 3, rent 4,
Items of Item Index Proportion of fuel and light 2, miscellaneous 1.
Consumption in 2005 expenditure on item (i) Calculate the index for a data when the average
Food, drink and 132 60% percentage increases in price of items in the various
tobacco groups over the base period were 32, 54, 47, 78 and
58 respectively.
Clothing 154 12%
(ii) Lavanya was earning ` 20000 in the base period,
Fuel and lighting 147 16% what should be her salary in the current period if her
Housing 178 8% standard of living is to remain the same?
Miscellaneous 158 4%

Sol :
Consumer price index in 2000 is considered as 100. Average

Click : www.nodia.study/lema/zm164
wages per month in 2000 is ` 2000.
(i) What should be the dearness allowance expressed as
percentage of wages?
(ii) What should be the average wages per worker per EXAMPLE 31.3
month in 2005 in Kanpur so that the standard of Weekly take-home pay (wages) of labour and consumer
living of the workers does not fall below the 2000 price index for respective years are shown in following
level? table.


Sol :
Page 322 Unit 6 Case Study chapter 31

Year Weekly take-home Consumer price the most severe economic recession in the United States
pay (wages) ` Index since the Great Depression of the 1930s. In response to
the Great Recession, unprecedented fiscal, monetary, and
2000 10950 112.8 regulatory policy was unleashed by federal authorities,
2001 11220 118.2 which some, but not all, credit with the subsequent
2002 11640 127.4 recovery.

2003 12508 138.2

2004 13540 143.5
2005 13810 149.8
(i) What was the real average weekly wage for each
year?
(ii) In which year did the employees have the greatest
buying power?
(iii) What percentage increase in the weekly wages for
the year 2005 is required (if any) to provide the same
In 2006 due to recession companies began downsizing in
buying power that the employees enjoyed in the year
order to reduce its costs. One of the results of these cost
in which they had the highest real wages.
cutting measures has been a decline in the percentage of


Sol : private industry jobs that are managerial. The following
data show the percentage of females who are managers
from 2006 to 2013.
Click : www.nodia.study/lema/zm165
Years 2006 2007 2008 2009
Percent 6.7 5.3 4.3 6.1
EXAMPLE 31.4
Years 2010 2011 2012 2013
Consider the following table for calculation of cost of
living index. Percent 5.6 7.9 5.8 6.1
(i) Develop a linear trend line for this time series using
Price
Group Weight least square method.
2015 2019 (ii) Use this trend to estimate the percentage of females
Food 10 24 60 who are managers in 2014.
Clothing 32 60 05

Sol :
Fuel 20 50 10
Rent 40 120 15
Click : www.nodia.study/lema/zm167
Miscellaneous 36 72 10
(i) Find cost of living index (CLI) number by family
EXAMPLE 31.6
budget method.
A wide area network (also known as WAN), is a large
(ii) If the expenditure in 2015 is ` 15000, find expenditure
network of information that is not tied to a single location.
in 2019.
WANs can facilitate communication, the sharing of


Sol : information and much more between devices from around
the world through a WAN provider.

Click : www.nodia.study/lema/zm166

EXAMPLE 31.5
The Great Recession was the sharp decline in economic
activity during the late 2000s. The Great Recession was
chapter 31 Unit 6 Case Study Page 323

A sugar mill is committed to accepting sugar canes from

local producers and has experienced the following supply
NODIA Network Solutions develops, markets, pattern (in thousands of tons/year and rounded).
manufactures and sells integrated wide-area network
access products. The following are annual sales (< in Year Supply (in thousands of tons)
million) data from 2008 to 2014. 2011 360
Years 2011 2012 2013 2014 2012 330
Sales 134 106 86 122 2013 570
Years 2015 2016 2017 2018 2014 510
Sales 112 158 116 112 2015 570
(i) Develop a linear trend line for this time series using 2016 540
least square method. 2017 600
(ii) Use this trend to estimate the annual sales (< in
2018 690
million) in 2022.


Sol : (i) Develop a linear trend line for this time series using
least square method.
(ii) Use this trend to estimate the supply in year 2021.
Click : www.nodia.study/lema/zm168

Sol :

EXAMPLE 31.7 Click : www.nodia.study/lema/zm169

A sugar cane mill is a factory that processes sugar cane to
produce raw or white sugar. The term is also used to refer
to the equipment that crushes the sticks of sugar cane EXAMPLE 31.8
to extract the juice. Khatauli’s Triveni Sugar Mill is the The renowned Taj Mahal was brought to life by the
largest in Asia in terms of scale of production and storage vision of the Mughal Emperor Shah Jahan. He got this
capacity. The mill has been operational since 1933. monument built for his beloved wife, Mumtaz Mahal after
she passed away. To honor the memory of his loving wife,
Shah Jahan ordered the finest artisans from all over the
world to build it.
Page 324 Unit 6 Case Study chapter 31

The following table relates to the tourist arrivals (in The following table shows the index of industrial
millions) during 2004 to 2010 in India to visit Tajmahal: production for the period from 1976 to 1985, using the
year 1976 as the base year.
Year 2004 2005 2006 2007 2008 2009 2010
Tourists 18 20 23 25 24 28 30 Year 1976 1977 1978 1979 1980
arrivals Index 0 2 3 3 2
(i) Fit a straight line trend by the method of least Year 1981 1982 1983 1984 1985
squares Index 4 5 6 7 10
(ii) Estimate the number of tourists that would arrive in
the year 2014. (a) Fit a trend line to the above data by the method of
least squares.


Sol : (b) Obtain the trend value for the index of industrial
production for the year 1987.

Click : www.nodia.study/lema/zm170

Sol :

EXAMPLE 31.9 Click : www.nodia.study/lema/zm171

The Index of Industrial Production (IIP) is an index
which shows the growth rates in different industry

******
groups of the economy in a stipulated period of time.
The IIP index is computed and published by the Central
Statistical Organisation (CSO) on a monthly basis. IIP is
a composite indicator that measures the growth rate of
industry groups classified under,
1. Broad sectors, namely, Mining, Manufacturing and
Electricity
2. Use-based sectors, namely Basic Goods, Capital
Goods and Intermediate Goods.
Chap 23 Financial Mathematics I Page 325

CHAPTER 23

Financial Mathematics I

23.1 Perpetuity property always on rent). This is also an example of

perpetuity.
23.1.1 Meaning
23.1.3 Types of Perpetuity
Perpetuity is a form of an ordinary annuity, with no end,
a stream of cash payments that carries on forever. We also There are two types of perpetuities :
refer to it as a perpetual annuity. The method is one of 1. Perpetuity payable at the end of each payment
the time value of money techniques employed in financial period.
assets valuation. The concept is closely related to terminal 2. Perpetuity payable at the beginning of each payment
value and terminal growth rate in valuation modeling. It period.
is fundamental to the Dividend Discount Model (DDM), 1. Present Value of Perpetuity Payable at The End of
used to evaluate the price of common shares. It represents Each Payment Method
fixed payments on permanently invested amounts,
Consider a perpetuity of < R payable at the end of each
meaning that the principal is irredeemable.
period, the first payment due one period hence. Let the
The value of a perpetuity is finite, and we can
money be worth i per period i.e. i is the interest per rupee
calculate it because payments far in the future start to
per payment period. The present value of this perpetuity
have present values close to zero. And as the principal
is defined to be that sum of money which, invested now
never gets repaid, we do not have the issue with calculating
at the rate i per period, will yield < R at this end of each
its current value.
period forever. The present value of the perpetuity is the
23.1.2 Real Life Examples sum of the present values of all payments.
The present value of the first payment = R (1 + i) −1
Although perpetuity is somewhat theoretical (can anything
The present value of the second payment = R (1 + i) −2
really last forever?), classic examples include businesses,
The present value of third payment = R (1 + i) −3 ans so
real estate, and certain types of bonds.
on.
1. One of the examples of a perpetuity is government
So, the present value P of the perpetuity is given by
bond. Bondholders will receive annual fixed coupons
(interest payments) as long as they hold the amount P = R (1 + i) −1 + R (1 + i) −2 + R (1 + i) −3 + ..... + .....
and the government does not discontinue. Clearly, RHS is an infinite G.P. with first term R (1 + i) −1
2. The second example is in the real-estate sector when and common ratio (1 + i) −1 .
R (1 + i) −1
an owner purchases a property and then rents it P = <Using : a + ar + ar 2 + ... = a F
out. The owner is entitled to an infinite stream of 1 − (1 + i) −1 1−r
cash flow from the renter as long as the property R/ (1 + i)
P = = R =R
continues to exist (assuming the renter continues to 1 (1 + i) − 1 i
1−
rent). (1 + i)
3. Another real-life example is preferred stock, where Hence, the present value of < R payable at the end of each
the perpetuity calculation assumes the company will
payment period when money is worth i per period is R .
continue to exist indefinitely in the market and keep i
paying dividends. Thus, R is the cash equivalent of an unlimited number
4. If a buyer obtains a property and then chooses to of periodic payments of < R each, the first being due one
rent it out, he/she receives an infinite cash flow as period hence.
long as he/she owns the property (assuming that the
2. Present Value of Perpetuity Payable at The
Page 326 Financial Mathematics I Chap 23

Beginning of Each Payment Period = R (1 + g) 2 (1 + i) −3

Let us consider a perpetuity of < R payable at the and so on.
beginning of each payment period, the first payment due So, the present value P of the perpetuity growing at the
now. Let the money be worth i per period. In this type of rate g is given by
annuity, we find that P = R (1 + i) −1 + R (1 + g) (1 + i) −2
Present value of first payment = R + R (1 + g) 2 (1 + i) −3 + .....
Present value of second payment = R (1 + i) −1
R (1 + i) −1 R (1 + i) −1
Present value of the third payment = R (1 + i) −2 P = = = R
1 − (1 + g) (1 + i) −1 1+g i−g
Present value of the fourth payment = R (1 + i) −3 and so 1−
1+i
on. Hence, the present value of a perpetuity of < R growing at
So, the present value P of the perpetuity is given by the rate of g per rupee per period, payable at the end of
P = R + R (1 + i) −1 + R (1 + i) −2 + R (1 + i) −3 each payment period, when money is worth i per period
+ ..... + ..... is R .
i-g
R R R (1 + i)
P = = =
1 − (1 + i) −1 1− 1 i
1+i EXAMPLE 23.1
= R b1 + 1 l = R + R Find the present value of a perpetuity of < 10, 000 payable
i i
at the end of each year, if money is worth 5% compounded
Hence, if money is worth i per period, then the present
annually.
value of a perpetuity of < R payable at the beginning each
period is R + R .

Sol :
i

Click : www.nodia.study/lema/wm101
Remark
This type of perpetuity can be considered as an initial
payment of < R followed by a perpetuity of < R payable
at the end of each period. Therefore present value of this
EXAMPLE 23.2
type of perpetuity is R + present value of perpetuity of
At 6% converted quarterly, find the present value of a
< R payable at the end of each period i.e. R + Ri .
perpetuity of < 9, 000 payable at the end of each quarter.
23.1.4 Present Value of a Growing Perpetuity

Sol :
A growing perpetuity is a perpetuity in which periodic
payments do not remain fixed rather these payments keep
on growing at the same constant rate of growth. If the rate Click : www.nodia.study/lema/wm102
of growth of the periodic payment is x%, each payment
will be x% more than the payment received before it.
Consider a growing perpetuity of < R , which grows at EXAMPLE 23.3
the rate of g per rupee per period, payable at the end Akbar holds a perpetual bond that generates and annual
of each payment period. Let the money be worth i per return of < 60, 000 each year. He believes that the
period. Then, Present value of first periodic payment borrower is credit worthy and that an 8% interest rate
= R (1 + i) −1 . will be suitable for this bond. Compute the present value
Since periodic payments grow at the rate of g per rupee of this perpetuity.
per period.


Sol :
econd periodic payment = R + Rg = R (1 + g)
S
Present value of second periodic payment
= R (1 + g) (1 + i) −2
Click : www.nodia.study/lema/wm103
Third periodic payment = R (1 + g) + R (1 + g) g
= R (1 + g) 2
Present value of third periodic payment EXAMPLE 23.4
Find the present value of a perpetuity of < 3, 000 payable
Chap 23 Financial Mathematics I Page 327

at the beginning of each year, if money is worth 6% Click : www.nodia.study/lema/wm108

effective.


Sol :
EXAMPLE 23.9
How much money is needed to ensure a series of lectures
Click : www.nodia.study/lema/wm104 costing < 3, 000 at the beginning of each year indefinitely,
if the money is worth 4 % compounded annually.


Sol :
EXAMPLE 23.5
If the cash equivalent of a perpetuity of < 1, 400 payable
at the end of each quarter is < 112, 000, find the rate of Click : www.nodia.study/lema/wm109
interest convertible quarterly.


Sol :
EXAMPLE 23.10
Find the present value of a sequence of payments of < 8000
Click : www.nodia.study/lema/wm105 made at the end of each 6 months and continuing for ever,
if money is worth 4% compounded semiannually.


Sol :
EXAMPLE 23.6
The present value of a perpetual income of < R at the
end of each 6 month is < 288, 000. Find the value of R if Click : www.nodia.study/lema/wm110
money is worth 6% compounded semi-annually.


Sol :
EXAMPLE 23.11
At what rate converted semiannually will the present
Click : www.nodia.study/lema/wm106 value of a perpetuity of < 650 payable at the end of each
6 months be < 20, 000?


Sol :
EXAMPLE 23.7
Find the amount to be deposited into an endowment fund
that is to be compounded annually at the rate of 11 % Click : www.nodia.study/lema/wm111
p.a. to provide for an annual scholarship of < 33, 000 for
an indefinite period of time.
EXAMPLE 23.12


Sol :
Your grandfather is retiring at the end of next year. He
would like to ensure that his heirs receive payments of
Click : www.nodia.study/lema/wm107 < 90, 000 a year forever, starting when he retires. How
much does he need to invest in the beginning of this year
to produce the desired cash flow, if money is worth 8%
compounded annually.
EXAMPLE 23.8


Sol :
The principal amount demanded by a bank to guarantee a
perpetual annuity is reduced by 20% after rate of interest
compounded annually is increased by 2%. Find out the
rate of interest allowed by the bank after reduction in
Click : www.nodia.study/lema/wm112
principal amount.


Sol : EXAMPLE 23.13
How much money is needed to ensure a pension of < 80, 000
at the end of each year forever that grows at the rate of 2%
Page 328 Financial Mathematics I Chap 23

p.a., if the money is worth 10% p.a. compounded yearly. 2. Raheem holds a perpetual bond that generates and


Sol : annual return of < 80, 000 each year. He believes
that the borrower is credit worthy and that an 8%
interest rate will be suitable for this bond. Compute
Click : www.nodia.study/lema/wm113 the present value of this perpetuity.
Ans : < 1, 000, 000

EXAMPLE 23.14
Sahara India will pay an annual dividend next year of
< 300. After analysing the company, Tahir expect the
dividend after that to grow at the rate of 5% per year
forever. Also for companies of this risk class, the expected 3. How much money is needed to endure a series of
return is 10%. What should be Sahara India’s price per lectures costing < 5000 at the beginning of each
share? year indefinitely, if money is worth 5% compounded


Sol : annually?
Ans : < 105, 000

Click : www.nodia.study/lema/wm114

EXAMPLE 23.15
Abdullah is working as a supervisor in an organization. He 4. Varsha purchased a number of stocks of Reliance.
will retire from the company on 31st January 2022. He will At the end of first year, she received a payment of
not get pension from the company after his retirement. He < 12000, which grows at a rate of 4% per year and
wishes to deposit some amount in a bank which earns continues forever. If the discount rate is 10% find the
interest at 8% per year. Please advise Abdullah how much present value of Varsha’s investment.
he invests to get an interest income of < 80, 000 a year. Ans :


Sol :

Click : www.nodia.study/lema/wm115
5. How much money is needed to ensure a pension of
< 120, 000 at the end of each year forever that grows
at the rate of 2% p.a., if the money is worth 10% p.a.
compounded yearly.
E X ERCISE 23.1 Ans : < 1, 500, 000

1. Find the present value of a sequence of payments

of < 12000 made at the end of each 6 months and
continuing forever, if money is worth 4% compounded 6. How much money is needed to ensure a monthly
semi annually. pension of < 6000 at the beginning of each month
Ans : < 600, 000 forever, if the money is worth 8% p.a. compounded
monthly.
Ans : < 81, 000
Chap 23 Financial Mathematics I Page 329

7. RK Jhunjhunuwala wants to plan his retirement. If sets aside a certain amount of money regularly and uses it
the rate of interest in a deposit is 8% and if he wants only for a specific purpose.
to receive < 200, 000 per year perpetually, what would In other words, a sinking fund is a fund that is
be the sum that he should deposit with the bank created for accumulating a specific sum of money to be
today? used at some future designated date, by paying through
Ans : < 1500 regular equal payments at compound interests. Sinking
funds are either set up by individuals or by business
houses and the same are used to plan ahead for certain
future anticipated expenses.
If < A be the regular and equal payments made
towards the creations of such fund of < S be accumulated
8. RPG Pvt Ltd is planning to declare a divided of < 30 sum after n periods at the rate of interest i per period
at the end of the first year if the rate of return is accordingly the payments are made at the end of the each
12% and it is expected to grow @ 10%. Calculate the period or the beginning of the each period the formulae
present value of the growing perpetuity. are given as follows :
Ans : S = A [(1 + i) n − 1],
i
if the payments are made at the end of the each period
Again,
S = (1 + i) A [1 + i] n − 1,
i
if the payments are made at the beginning of the each
9. Wilson Samual is working as a accountant in an period
privet company. He will retire from the company on
31st January 2022. He will not get pension from the 23.2.2 Real Life Examples
company after his retirement. He wishes to deposit
1. Neelkamal purchases a T.V. set whose life is 7 years.
some amount in a bank which earns interest at 9 %
Since Neelkamal is to purchase a new T.V. set after
per year. Please advise Abdullah how much he invests
7 years, he sets aside every year some fixed amount.
to get an interest income of < 135, 000 a year.
The sum of money accumulated at the end of 7 years
Ans : < 1, 500, 000
is the sinking fund.
2. A school district sells long-term bonds to pay for
construction of a new school. They create a separate
account that they then fund to make their debt
payments for the term of the bond.
3. We pay our car insurance every 6 months. We set
10. Rajeev Thakur is retiring at the end of next year. He aside $84 every month and when the time arrives,
would like to ensure that his heirs receive payments we’ve got it covered.
of < 180, 000 a year forever, starting when he retires. 4. If you pay a mortgage and opt to have insurance and
How much does he need to invest in the beginning of property taxes paid by the bank, then this sits in an
this year to produce the desired cash flow, if money is escrow account. That is a form of sinking fund.
worth 8% compounded annually. Since we’ve chosen mortgage freedom, we have to
Ans : < 2, 250, 000 prepare for our property tax payment this year. We’re
setting aside $500 a month into a high yield savings
account so we can cover the bill when it comes due.
5. Travel has always been our biggest budget buster.
Next to the large home that we downsized, the largest
23.2 Sinking Fund part of our lifestyle inflation came from travel.
Now, when we want to take a trip we set a budget
23.2.1 Meaning and create a sinking fund for the trip. Our last
A sinking fund is a type of fund that is created and set one was our $500/month contribution to our 20th
up purposely for repaying debt. The owner of the account anniversary trip.
Page 330 Financial Mathematics I Chap 23

We don’t currently have a travel fund due to Covid-19 fund and deposits $100,000 yearly to make sure that
restrictions and accumulated travel rewards points. the bonds are all bought back by their maturity date.
We’ll definitely have another travel sinking fund in
the future. 23.2.3 Uses of Sinking Fund
6. A two educator household spends on books! In The amount in sinking fund is used for :
our early years of marriage, buying books for our 1. Future expansion of business,
classrooms was a major budget buster. As elementary 2. To repay the principal of a loan
teachers we are passionate about providing high- 3. To pay off debenture issue etc.
quality text for kids. 4. Replacement of machinery in a plant,
We finally got it under control by starting a sinking 5. To save for children’s education,
fund for book purchases. It would build up over the 6. Repair of buildings.
year. We’d only tap it for small purchases until a 7. Any future emergency.
major sale appeared, or if we switched grade-levels.
7. We set aside $100 a month into a major repairs fund 23.2.4 Differences between Sinking Fund and
for our house to cover expenses like roof and paint. Saving Account
8. A college fund is a type of sinking fund. You know In principle, the only differences between a sinking fund
you are likely to have a larger future expense, so you and a savings account are:
save for it. 1. Fund owners may use the sinking fund pool of money,
9. If you want to buy a house, you need to save a down ultimately, only for a specific designated purpose. If,
payment. 20% is ideal to avoid mortgage insurance during fund life, fund owners “raid” the fund and
and will get you the most benefit. It’s challenging spend for anything else, the fund fails its purpose.
with housing prices in many areas these days. With ordinary savings accounts, however, account
Set your target savings amount, automatically owners may spend for various purposes, some of
contribute a set amount each month. You’ve created which may even be unknown when they create the
a down payment sinking fund! account.
10. Appliances getting older or starting to worry you? 2. Firms set the periodic payment amounts so as to
Start a sinking fund for appliance replacement. bring fund accumulation to a specific target value by
You think you’ll have to replace your current washer/ the end of the fund’s life.
dryer within the next three years. You go to Amazon Ordinary savings accounts usually do not have a
and see sets like this one for $1800. specific end of life or target maximum balance in
You can afford to put $75 into a sinking fund and are view.
ready to buy a replacement in two years. Perfect use 3. With a sinking fund, you are saving up for your
of a sinking fund! planned expense, which means that money was
11. Most of us don’t have parents who can afford to pay always intended to be spent. A sinking fund is not
for our weddings or gift us the honeymoon we may likely to increase your overall net worth, but it lets
want. If you do – great! I wish we had, because we you do the things you want to do, like buy a new car,
started our married life still carrying wedding debt. go on vacation or put a down payment on a home.
Friends who were smarter than us started saving up However, with your savings account, you are
for their weddings while planning and escaped with working to build wealth. As you build your savings, it will
much less debt. That’s a sinking fund! eventually begin to work for you. You do not want to dip
12. Your emergency fund can be a type of sinking fund, into it.
because when you’re first creating it you set aside
money as you can until it hits your target amount. If 23.2.5 Advantages of Sinking Funds
you deplete it, you rebuild it.
The following are the advantages of sinking funds:
But I separate it out for a very important reason:
1. A sinking fund helps a person or company to pay its
You don’t want to use your emergency fund as a
liability well in advance.
sinking fund for other purchases! Instead, try to
2. A person or company is able to pay the debt in time
anticipate and plan for large expenses and use a
because a person or company has already pulled a
separate sinking fund.
money well before.
13. A company issuing $1 million of bonds that are to
3. A sinking fund is also used to redeem the bond or
mature in 10 years. Given this, it creates a sinking
any other liability in a mid-way also.
Chap 23 Financial Mathematics I Page 331

4. A sinking fund also increases the goodwill of the Click : www.nodia.study/lema/wm118

company by paying the debt in time, and this will
increase the faith of investors and attract more
investment. EXAMPLE 23.19
5. A company with poor credit ratings will find it
difficult to attract investors unless they offer higher A machine costs a company < 520, 000 and its effective life
interest rates. A sinking fund offers alternative is estimated to be 25 years. A sinking fund is created for
protection for investors so that companies can offer replacing the machine by a new model at the end of its
lower interest rates. life time, when its scrap realizes a sum of < 25, 000 only.
6. A company’s economic situation is not always The price of the new machine (at the end of 25 years) is
definite, and certain financial issues can shake its estimated to be 25% higher than that of the present one.
stable ground. However, with a sinking fund, the Find what amount should be set aside every year, out of
ability of a company to repay its debts will not be profits for the sinking fund, if it accumulates at 3 12 % per
compromised. This results in good credit standing annum compound.(Given (1.035) 25 = 2.3632 )
and confident investors.

Sol :

EXAMPLE 23.16
A printing press costs the company < 200, 000 and its
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effective life is estimated to be 12 years. If the scrap realises
< 10000only, what amount should be retained out of profits EXAMPLE 23.20
at the end of each year to accumulate at a compound
interest at 5% per annum? (Given (1.05) 12 = 1.796 ) A machine costs the company < 110000 and its effective
life is estimated to be 12 years. If the scrap realises < 15000


Sol :
only, what amount should be retained out of profits at the
end of each year to accumulate at a compound interest at

Click : www.nodia.study/lema/wm116
5% per annum?(Given (1.05) 12 = 1.7959 )


Sol :

EXAMPLE 23.17
A company sets aside a sum of < 50000 annually for Click : www.nodia.study/lema/wm120
10 years to pay a debenture issue of < 600, 000. If the
fund accumulates at 5% per annum C.I., find the surplus
after full redemption of the debenture issue.(Given EXAMPLE 23.21
(1.05) 10 = 1.6289 )
A machine costs a company < 850, 000 and its effective life


Sol : is estimated to be 20 years. A sinking fund is created for
replacing the machine at the end of its life when its scrap
value realises a sums of < 100, 000 only. Calculate to the
Click : www.nodia.study/lema/wm117 nearest hundreds of rupees of amount which should be
provided every year for the sinking fund if it accumulates
at 9% p.a. compounded annually.
EXAMPLE 23.18

Sol :
New Plastic Co. intends to create a depreciation fund
to replace at the end of the 25th year assets costing
< 200, 000. Calculate the amount to be retained out of Click : www.nodia.study/lema/wm121
profits every year if the interest rate is 3% per annum.
(Given (1.03) 25 = 2.094 )


Sol : EXAMPLE 23.22
A company wants to create sinking fund to replace at
the end of 15 year asset costing < 2, 500, 000. Calculate
Page 332 Financial Mathematics I Chap 23

the amount to be retained out of profit every year if the

Sol :

interest rate is 10% per annum.(Given (1.1) 15 = 4.177 )

Click : www.nodia.study/lema/wm126


Sol :

Click : www.nodia.study/lema/wm122
EXAMPLE 23.27
Vikram wants to create a fund of < 928, 200 after 6 years
EXAMPLE 23.23 at the time of his retirement. He decides to invest a fixed
How much should a company set aside at the end of year, amount at the end of every year in a bank that offers him
if it has to buy a machine expected to cost < 400, 000 at interest of 10% p.a. compounded annually. What amount
the end of 6 years and rate of interest is 10% per annum should he invest every year? (Given : (1.1) 4 = 1.4641)
compounded annually? (Given (1.1) 6 = 1.7712 ).

Sol :


Sol :
Click : www.nodia.study/lema/wm127
Click : www.nodia.study/lema/wm123
EXAMPLE 23.28
A sinking fund is created for redemption of debentures
EXAMPLE 23.24 of < 1, 000, 000 at the end of 25 years. How much money
A company intends to create a sinking fund to replace at should be provided out of profits each year for the sinking
the end of 20th year assets costing < 500, 000. Calculate fund it the investment can earn interest at 4% per
the amount to be retained out of profits every year if the annum?(Given (1.04) 25 = 2.6658 )
interest rate is 5%. (Given (1.05) 20 = 2.6532 ).

Sol :


Sol :

Click : www.nodia.study/lema/wm128
Click : www.nodia.study/lema/wm124
EXAMPLE 23.29
EXAMPLE 23.25 A firm anticipates a capital expenditure of < 600, 000
DK Agrawal want to set up a sinking fund in order to have for a new equipment in 5 years. How much should be
< 400, 000 after 10 years for his children’s college education. deposited quarterly in a sinking fund carrying 12% per
How much amount should be set aside bi-annually into an annum compounded quarterly to provide for the purpose?
account paying 5% per annum compounded half-yearly? (Given (1.03) 20 = 1.8061)
(Given (1.025) 20 = 1.6386 )

Sol :


Sol :

Click : www.nodia.study/lema/wm129
Click : www.nodia.study/lema/wm125
EXAMPLE 23.30
Rajkumar and Varsha have a new baby. They agreed that
EXAMPLE 23.26
they would need < 800, 000 in eighteen years for the baby’s
Rajlaxmi plans to save for her daughter’s marriage. She college education. They want to set up a sinking fund and
wishes to accumulate a sum of < 610, 500 at the end of 4 decides to invest a fixed amount at end of every six month
years. What amount should she invest every year if she in a bank that offers him interest of 6 % p.a. compounded
get an interest of 10% p.a. compounded annually? (Given half-yearly. Find their bi-annually investment. (Given
(1.1) 5 = 1.6105 ) (1.03) 36 = 2.8983 )
Chap 23 Financial Mathematics I Page 333

Sol : 2. A new printing machinery is purchased at a cost of

< 200, 000. it is desired to set aside every year a sum
of money that would provide for the replacement of
Click : www.nodia.study/lema/wm130 the machinery by a new model after 10 years at an
estimated price 10% higher than of the present one.
Find the amount that should be set aside annually to
EXAMPLE 23.31 accumulate at 2 12 % p.a. compound interest.
Jenifer has just bought a house. She estimates that the Ans : < 19711.33
roof will have to be renewed at a cost of < 250, 000 after
20 years. To cover these costs, she intends to save an
equal amount of money at the end of each year, earning
10% annual interest rate. How much is such a yearly
saving?(Given (1.1) 20 = 6.7275 )


Sol : 3. Neha and Anuj have a new baby. They agreed that
they would need < 1, 500, 000 in eighteen years for the
baby’s college education. They want to set up a sinking
Click : www.nodia.study/lema/wm131 fund and decides to invest a fixed amount at end of
every six month in a bank that offers him interest of 6
% p.a. compounded half-yearly. Find their bi-annually
EXAMPLE 23.32 investment. (Given (1.03) 36 = 2.8983 ).
A company buys a piece of equipment for < 2 million. Ans : < 23705.42
The expected useful life is 6 years and the salvage value
is estimated zero. The company intends to replace the
equipment identically. The average expected price increase
is 8% yearly. For this purpose, the company creates a
special fund with annual equal payments at the end of
each year during the lifetime. Cost of capital and earnings
4. A sinking fund is created for redemption of debentures
of the fund is 10% per year. Compute the annual payment
of < 100, 000 at the end of 25 years. How much money
into the fund.
should be provided out of profits each year for the


Sol : sinking fund it the investment can earn interest at 4%
per annum?
Ans : < 2408
Click : www.nodia.study/lema/wm132

E X ERCISE 23.2 5. Jaipur Minerals Co. has to repay a debenture stock of

< 5, 00, 000 after 12 years. If it creates a sinking find
for which it sets aside a sum of < 32, 400 annually to
accumulate at 4 12 % per annum C.I., find the amount
in the fund after paying off the debenture stock.
1. Mahesh sets up a sinking fund in order to have Ans : < 400
< 80, 000 after 10 years for his family expenditure.
How much amount should be set aside biannually into
an account paying 5% p.a. compounded half-yearly.
Ans : < 3139.72

6. JK Jute Pvt Ltd establishes a sinking fund to provide

for payment of < 500, 000 debt, maturing in 4 years.
Page 334 Financial Mathematics I Chap 23

Contributions to the fund are made at the end of every 23.3 Valuation of bonds
year. Find the amount of each annual deposit if the
interest is 18% per annum. (Given (1.18) 4 = 1.9387 ) 23.3.1 Bonds
Ans : < 95, 877.28
Governments and corporations borrow money by selling
bonds to investors. The money they collect when the bond
is issued, or sold to the public, is the amount of the loan.
In return, they agree to make specified payments to the
bondholders, who are the lenders. A bond’s terms and
conditions are contained in a legal contract between the
7. Jagdeesh anticipates a capital expenditure of < 100, 000 buyer and the seller, known as the indenture.
for a new machine in 5 years. How much should be
deposited quarterly in a sinking fund carrying 12% 23.3.2 Definition of Bond
per annum compounded quarterly to provide for the A bond is a debt instrument that provides a periodic
purpose? (Given (1.03) 20 = 1.8061) stream of interest payments to investors while repaying
Ans : < 3721.62 the principal sum on a specified maturity date.

23.3.3 Valuation of Bonds

Bond valuation is a technique for determining the
theoretical fair value or fair price of a particular bond. The
fundamental principle of bond valuation is that its fair
8. Find the amount a company should set aside at the value is equal to the sum of present values of its expected
end of every year if it wants to buy a printing press cash flows. Cash flow is the cash that is estimated to be
expected to cost < 200, 000 at the end of 4 years and received in future from investment in a bond. There are
interest rate is 5% p.a. compounded annually. only two types of cash flows that can be received from
Ans : < 46, 403.72 investments in bonds :
1. coupon payments i.e. periodic interest payments
2. principal payment at maturity i.e. payment received
on redemption.
The coupon payments are received at regular
intervals as per the bond agreement, and final coupon
9. Yug decides to set aside a certain amount at the end of payment plus principal payment is received at the
every year to create a sinking fund that should amount maturity.
to < 464, 100 in 4 years at 10% p.a. Find the amount
to be set aside every year. (Given : (1.1) 4 = 1.4641) 23.3.4 Bond Valuation Methods
Ans : < 100, 000 There are different approaches to determine the fair value
or fair price or purchase price of bonds. Here, we will
study the two main approaches :
1. Present value approach
2. Relative price approach
1. Present Value Approach
10. Lalita has just bought a house. She estimates that
In the present value approach, we first calculate the
entire home have to be renovated at a cost of
present value of each expected cash flow and then we add
< 1, 000, 000 after 20 years. To cover these costs, she
all the individual present values to obtain the value or fair
intends to save an equal amount of money at the end
value of purchase price of a bond. Let there be a bond
of each year, earning 10% annual interest rate. How
with the
much is such a yearly saving?(Given (1.1) 20 = 6.7275 )
Face value = F
Ans : < 13967.72
Redemption price or, Maturity value = C
Yield rate or market interest rate per period = i
Number of periodic payments or, Number of cash flows
=n
Chap 23 Financial Mathematics I Page 335

Periodic interest (dividend) payment or, Coupon payment Where, nper = numbers of period
=R pmt = periodic payment
Value of bond or Purchase price of bond or, Market price
pv = present value
of bond = V
Then, fv = future value
Bond value = Present value of first periodic = 0 for ordinary annuity
Type

payment + Present value of second = 1 for annuity due

periodic payment + ...+ Present value Guess = initial guess

The variables in brackets ( fv , type and guess) are
of nth periodic payment + Present
optional values, the value of type is set to zero if it is not
value of Maturity value or, specified.
Redemption price For semi-annual periods, in final answer we multiply
R R by 2 to obtain it annually.
Bond value = + + ... + R n + C n
1 + i (1 + i) 2 (1 + i) (1 + i)


Note
(1 − c 1 + i 2
1 mn Either pv or fv must be negative, and the other must be
Bond value = R + C positive. The negative value is considered to be a cash
c1 − 1 m
1+i (1 + i) n
1+i outflow and positive value is considered to be a cash
inflow.
1 − (1 + i) −n
Bond value = R ( 2 + C (1 + i) −n
i
If a bond is redeemed at part, then C = F EXAMPLE 23.33
1 − (1 + i) −n
Bond value = R ( 2 + F (1 + i) −n A < 2000, 8% bond is redeemable at the end of 10 years
i at < 105. Find the purchase price to yield 10% effective.
2. Relative Price Approach (Given (1.1) −10 = 0.3855 )
In relative price approach, the bond is priced relative

Sol :
to yield to maturity (YTM) of a benchmark, usually a
government bond of similar maturity or duration. This
required return is then used to discount the cash flows, by Click : www.nodia.study/lema/wm133
replacing i in the present value approach, to obtain the
market price of the bond.
EXAMPLE 23.34
Yield to maturity (YTM) Consider a bond with a coupon rate of 10% and annual
The discount rate used in the bond pricing formula is coupon. The par value is < 1000 and the bond has 5 years
also known as the bond’s yield to maturity (YTM). This to maturity. The yield to maturity is 11%. What is the
equals the rate of return earned by a bond holder if: value of the bond? (Given (1.11) −5 = 0.5935 )
1. the bond is held to maturity.


Sol :
2. the coupon payments are reinvested at the yield to
maturity.


Note Click : www.nodia.study/lema/wm134
A bond’s YTM is the unique discount rate at which the
market price of the bond equals the present value of the
bond’s cash flows. The YTM of a bond can be determined EXAMPLE 23.35
from the bond’s market price, maturity, coupon rate and Find the purchase price of a < 600, 8% bond, dividends
face value. payable semi-annually, redeemable at par in 5 years, if the
It is very difficult (almost impossible) to obtain yield rate is to be 8% compounded semi-annually. (Given
YTM algebraically, instead it is generally obtained by (1.04) −10 = 0.6755 )
using financial calculator or Microsoft Excel.

Sol :
In Excel, using the Rate function, we can obtain
a bond’s YTM by the following formula: = Rate (nper ,
pmt , pv , [fv], [type], [guess]) Click : www.nodia.study/lema/wm135
Page 336 Financial Mathematics I Chap 23

EXAMPLE 23.36 EXAMPLE 23.40

A bond with a face value of < 1000 matures in 10 years. A investor intends to purchase a 10 years < 50, 000 face
The nominal rate of interest on bond is 11% per annum vale bond having nominal interest rate of 6 %. At what
paid annually. What should be the price of the bond so price the bond may be purchased now if it mature at par
as to yield effective rate of return equal to 8%? (Given and the investor require a yield rate of 5 % compounded
(1.08) −10 = 0.4632 ) semi-annually. (Given (1.025) −20 = 0.6103 ).


Sol :

Sol :

Click : www.nodia.study/lema/wm136 Click : www.nodia.study/lema/wm140

EXAMPLE 23.37 EXAMPLE 23.41

Praganya Patrika Pvt Limites has issued a bond having a A bond with face value of < 1000 paying annual dividend
face value of < 10, 000 paying annual dividends at 8.5%. at 4% will be redeemed at < 1100 at the end of 10 years.
The bond will be redeemed at par at the end of 10 years. Find the purchase price of this bond if investor wishes yield
If the prevailing market rate of interest is 8 %, find the rate of 5 % per annum effective. (Given (1.05) −10 = 0.6139)
purchase price of this bond. (Given (1.08) −10 = 0.4632 ).

Sol :


Sol :

Click : www.nodia.study/lema/wm141
Click : www.nodia.study/lema/wm137
EXAMPLE 23.42
EXAMPLE 23.38 IOCL has issued a oil bond having the face value of
< 100, 000, carrying an annual divided rate of 7% and
A university has issued a education bond having the face maturing in 15 years. If the prevailing market rate of
value of < 100, 000 carrying a coupon rate of 8% to be paid interest is 9% and the bond is redeemed at par, find the
semi-annually and maturing in 5 years. If the prevailing bond value. (Given (1.09) −15 = 0.274538).
market rate of interest is 7%, find the bond value. (Given
(1.035) −10 = 0.7089).

Sol :

Sol :
Click : www.nodia.study/lema/wm142
Click : www.nodia.study/lema/wm138
EXAMPLE 23.43
Find the purchase price of a < 20, 000 bond, redeemable at
EXAMPLE 23.39 the end of 10 years at 110, and paying annual dividends
at 4%, if the yield rate is to be 5% effective. (Given
An investor is considering to purchase a new issue of 15
year bond of < 10, 000 par value and annual fixed coupon (1.05) −10 = 0.6139 ).
rate of 7 % yearly. The minimum yield that the investor

Sol :
would accept is 8 %. Find the fair value of bond.
(Given (1.08) −15 = 0.3152 ),


Sol : Click : www.nodia.study/lema/wm143

Click : www.nodia.study/lema/wm139 EXAMPLE 23.44

A bond with face value of < 1000 paying having no
coupon value will be redeemed at < 1100 at the end of
Chap 23 Financial Mathematics I Page 337

10 years. Find the purchase price of this bond if investor since the interest payments must be made for the entire
wishes yield rate of 5 % per annum effective. (Given principal amount, which leads to a higher effective interest
(1.05) −10 = 0.6139 ) rate compared to the reducing-balance method.


Sol : 2. Reducing Balance Method (R/B)
In contrast to the flat-rate method, the reducing-balance

Click : www.nodia.study/lema/wm144 method calculates the interest payment based on the

principal outstanding. It means the interest and principal
repayment portions of each EMI change overtime. At the
23.4 Calculation of emi early stage of the loan term, interest payment makes up a
greater portion of the EMI, as a certain percentage of the
23.4.1 Meaning of EMI loan outstanding.
As the loan is gradually repaid over time, the
EMI is the fixed amount payable monthly throughout the interest amount reduces, and a greater proportion of the
repayment period of a loan by the borrower to the lending contributions are made towards principal repayments. The
institution. In other words, EMI (Equated Monthly reducing-balance method is commonly used on housing
Installment) is like a normal form of loan repayment mortgages, credit cards, and overdraft facilities.
consisting of interest and principal. It depends on three The reducing-balance EMI can be calculated
factors namely: through the formula below:
1. The amount of loan taken, P i (1 + i) n
2. The interest rate on the loan taken and EMI =
(1 + i) n − 1
3. The loan tenure.
Where, P = Principal i.e. loan amount
With this tool a borrower can actually know pre-
hand how much he has to repay each calendar installment, i = Rate of interest per month
thus forming a part of the budgeting exercise as well. Also, n = Number of installments
since monthly repayment consists of interest and principal So, for the above example given in flat rate method,
both, it allows borrowers to repay the loan in full. the calculation would be:

;200000 # b 100 # 12 l # (1.01) 24E

12
23.4.2 Methods of Calculating EMI
EMI =
6(1.01) − 1@
24
EMI is calculated by two methods namely:
1. Flat Rate Method (F/R) = 2000 # 1.2697

0.2697
In the flat-rate method, each interest charge is calculated = 9415.65
based on the original loan amount, even though the loan You can note that EMIs under reducing balance
balance outstanding is gradually being paid down. The method are generally lower than that in the flat rate
EMI amount is calculated by adding the total principal of interest method. The interest component in the reducing
the loan and the total interest on the principal together, balance method would also keep reducing every month,
then dividing the sum by the number of EMI payments, thereby saving costs on the loan for you.
which is the number of months during the loan term.
For example, suppose in order to buy a car, Rohan
avails a loan of INR 2 lakhs with an interest rate of 12%
EXAMPLE 23.45
to be paid back in 2 years. Under the flat rate method,
Rohan will always pay the interest on the total loan Savita takes a loan of < 360,000 at an interest of 10%
amount of INR 2 lakhs. compounded annually for a period of 3 years. Find her
The formula to calculate EMI using flat rate EMI by using flat rate method.
method would be:

Sol :
EMI = (Principal + Interest)/Period in Months
So, in the example above, the calculation would be:
EMI = (200000 + 48000)/24 = INR 10,333.33 Click : www.nodia.study/lema/wm145
The flat-rate method is particularly used on personal
loans and vehicle loans. It is less favourable to borrowers
Page 338 Financial Mathematics I Chap 23

EXAMPLE 23.46

Sol :

Find the equated monthly installment of a loan of
< 2000000 per month for 15 years at 12% per annum
compounded monthly. (Given 1.01−180 = 0.1668 ) Click : www.nodia.study/lema/wm150


Sol :

EXAMPLE 23.51
Click : www.nodia.study/lema/wm146 A man borrows < 200, 000 at 4% per annum and agrees to
pay both the principal and the interest in 10 equal annual
installments at the end of each year, find the amount of
EXAMPLE 23.47 these installments. (Given 1.04−10 = 0.6756 )

A man borrows < 300000 at 8% per annum compound

Sol :

interest and promises to pay off the debt in 20 annual
installments beginning at the end of the first year. What
is the annual payment necessary? (Given 1.08−20 = 0.2145) Click : www.nodia.study/lema/wm151


Sol :

EXAMPLE 23.52
Click : www.nodia.study/lema/wm147 Abhishek purchased a car on installment basis such that
< 100000 is to be paid on signing the contract and the
balance in 4 equal annual installments of < 60000 each.
EXAMPLE 23.48 If interest is charged at 5% p.a., what should be the cash
down price of the wagon? (Given (1.05) −4 = 0.8227 )
Mahesh borrows a sum of money < 200000 from Rajkumar
at the rate 10% p.a. and promises to repay the sum in 15

Sol :
equal installments beginning at the end of the first year.
Find the value of each installment. (Given 1.1−15 = 0.2394 )


Sol :
Click : www.nodia.study/lema/wm152

Click : www.nodia.study/lema/wm148 EXAMPLE 23.53

RK Kanodia wishes to buy a house valued at < 1, 700, 000.
He is prepared to pay now < 900, 000 and the balance in 8
EXAMPLE 23.49 equal annual installments. If interest is calculated at 8 12 %
per annum, how much should be pay annually? (Given
A loan of < 400, 000 is to be repaid in equal installments
(1.085) −10 = 0.)
consisting of principal and interest due in course of 30
years. Find the amount of each installment reckoning

Sol :
interest at 4% p.a. (Given 1.04−30 = 0.3083 )


Sol :
Click : www.nodia.study/lema/wm153
Click : www.nodia.study/lema/wm149 EXAMPLE 23.54
Yug borrowed a home loan amount of < 5, 000, 000 from a
EXAMPLE 23.50 bank at an interest rate of 12% per annum compounded
monthly for 25 years. Find the monthly installment amount
An overdraft of < 600, 000 is to be paid back is equal
Yug has to pay to the bank. (Given (1.01) −300 = 0.050534 ).
annual instalments over a period of 30 years. Find the
value of this payment reckoning compound interest at 9 %

Sol :
per annum. (Given 1.09−30 = 0.0754 )
Chap 23 Financial Mathematics I Page 339

Click : www.nodia.study/lema/wm154 3. Laxman borrows < 400, 000 at 5% and promises to

pay off the loan in 30 annual payments beginning at
the end of the first year. What is the annual payment
EXAMPLE 23.55 necessary?
Ans : < 26015
Shivratan buys a house for which he agrees to pay < 33000
at the end of each month for 20 years. If money is worth 9
% converted monthly, what is the cash price of the house?
(Given (1.0075) −240 = 0.166413 )


Sol :
4. A loan of < 100, 000 is to be repaid in 10 equal annual
installments. Find the amount of each installment
Click : www.nodia.study/lema/wm155 covering principal and interest both at 4% p.a.
compound.
Ans : < 12349
EXAMPLE 23.56
A sewing machine worth < 12000 is purchased on
installment plan under which six equal monthly
installments including at 18% per annum compounded
monthly. Find the amount of monthly installment. (
(1.015) −6 = 0.914542 )
5. A sewing machine worth < 7000 is purchased on


Sol : installment plan under which six equal annual
installments including at 12% per annum are payable.
Find the amount of annual installment.
Click : www.nodia.study/lema/wm156 Ans : < 1703

E X ERCISE 23.3
6. Kedarnath buys a land worth < 500, 000. The
contract is that he will pay < 200, 000 immediately
and the balance in 15 annual installments with 5%
p.a. compound interest. How much he has to pay
1. Find the equated monthly installment of a loan of annually?
< 20, 000 per annum for 12 years at 5% per annum. Ans : < 28891
Ans : < 1772.8

7. A colour television worth < 20000 is purchased on

2. Find the equated monthly installment of a loan of instalment plan under which 10 equal instalments
< 100, 000 per annum for 20 years at 4% per annum. including interest at 10% p.a. are payable. Find the
Ans : < 1357.20 amount of annual instalment.
Ans : < 3255
Page 340 Financial Mathematics I Chap 23

8. Wilson Samual buys a new electric car for which he Rate of return, the benefit (or return) of an investment
makes down payment of < 150, 000 and the balance is divided by the cost of the investment. The result is
is to be paid in 2 years by monthly installment of expressed as a percentage or a ratio.
< 25, 448 each. If the Bajaj Finance charges interest R.O.I.
at the rate of 20% p.a. find the actual price of the car. (Current Value of Investment − cost of Investment)
Ans : < 650, 000 =
Cost of Investment
Formula for rate of return :
Rate of return
Endings value of investment − Beginning value of Investment
=
Beginning value of Investment

9. Mahesh purchased a 4 room flat from Unitech Builder

for < 700, 000 and made a down payment of < 150, 000 EXAMPLE 23.57
. He repays the balance in 25 years by monthly
instalments at 9%. Compound monthly : Suresh is a retail investor and decides to purchase 10
(i) What are monthly payments? shares of company A at a per unit price of < 20. Suresh
(ii) What is the total interest payment? (Given holds onto shares of company A for 2 years. In that time
(1.0075) −300 = 0.1062878338 ) frame, company A paid yearly dividend of < 1 per share.
Ans : (i) < 4, 615.58 (ii) < 834, 674 After holding them for 2 years. Suresh decides to sell all
shares of company A at an ex- dividend price of < 25.
Suresh would like to determine the rate of return during
the two years he owned the shares.


Sol :
23.5 Calculations of Returns To determine the rate of return, first calculate the amount
All financial decisions involve same risk one may expect to of dividends he received over the two year period.
get a return of 15% per annum in his investment but the 10 shares # (< 1 annual dividend # 2 )
risk of not able to achieve 15% return will always be there. =< 20 in dividends from 10 shares
Return is simply a reward for investing as all investing Next, calculate how much he sold the shares for
involves some risk. 10 shares # < 25 =< 250 (gain from selling 10 Shares)
A debt investment is a loan, and the return is just
the loans interest rate. This is simply the ratio of the 23.5.2 Nominal Rate of return
interest paid to the loan principal There can be basic kinds of returns on investment viz. Real
interest paid rate of return and nominal rate of returns. The actual rate
K =
loan amount of return realized on an investment after accounting for
This formulation leads to the convenient idea that the effects of inflation, taxes and expenses is known as the
a return is what the investor receives divided by what he real rate of return. The real rate of return is considered
or she invests. A stock investment involves the receipt of a more accurate measure of an investor’s earnings after
dividends and a capital gain (loss). If a stock investment income taxes have been paid and the rate of inflation has
is held for one year. The return can be written as been adjusted for. These two factors impact the gains of an
D + (P1 − P0) investor and so must be accounted for. This is in contrast
K = 1
P0 with the nominal rate of the return on an investment.
Here P0 is the price today, while P1 and D1 are The nominal rate of return is the total rate of return
respectively the price and divided at the end of the year. on an investment before adjusting for any deductions and
premiums such as investment fees. tax expenses. inflation
23.5.1 Return on Investment (ROI) etc.
Rate of return is a performance measure used to evaluate Note that the real rate of return is lower than
the efficiency of an investment or compose the efficiency the nominal rate of return. The nominal rate of return
of a number of different investments. Rate of return tries helps investors in comparing various investments with
to directly measure the amount of return on a particulars different tax treatments. It also helps investors to gauge
investment, relative to the investment’s cost. To calculate the performance of their portfolio by stripping out
Chap 23 Financial Mathematics I Page 341

P (1 + re) = P c1 + r m
outside factors such as taxes and inflation that can affect
<i = F
m
r
performance. m m

1 + re = c1 + r m
The nominal rate of return on an investment can be m

computed by using the following formula : m
Nominal rate of return percent
re = c1 + r m − 1
m

Current market value of investment − Original in vestment value m
= # 100
Original investment value
re = (1 + i) m − 1
We may use the following algorithm to compute
Hence, Effective rate of Interest = c1 + r m − 1
m
nominal rate of return on an investment: m
1. Obtain original investment amount or principal This formula gives us the effective rate re equivalent to
amount invested and denote it by OIV . nominal rate r compounded m times in a year.
2. Find the current market value of the investment or The formula re = (1 + i)m − 1 gives the effective rate re
the value of the investment at the end of investment equivalent to the rate i per conversion period.
period and denote it by CMV . If the interest is compounded continuously, then m " 3
3. Find the difference : CMV - OIV and the effective rate r corresponding to the nominal rate
4. Use the formula : r compounded continuously is given by
Nominal rate of return percent = CMV − OIV # 100
re = lim )c1 + r m − 13
m
OIV
m"3 m
23.5.3 Effective Rate of Interest
re = lim c1 + r m − 1
m

An investment of < 100 at 10% compounded semi-annu- m"3 m
ally is made by a person for a year. After one year he/she lim r # m
m

receives the amount < 100 b1 + 10 l =< 110.25 . This

2 er = e m"3
−1
200
means that on an investment of < 100 for a year he/she re = er − 1
gets < 10.25 as interest. In order words his rate of return Hence, the effective rate re equivalent to the nominal rate
is 10.25% per annum whereas the stated rate of return, at r compounded continuously is given by re = er − 1.
the time of investment, is 10% per annum. Thus, we find Force of Interest
that the actual rate of return is more than the stated rate The nominal rate r compounded continuously equivalent
of interest. In general, in transactions involving compound to a given effective rate re is called the force of interest.
interest, the stated annual rate of interest is less than the
Now, re = er − 1
actual annual rate of return. The stated rate of interest,
in transactions involving compounded interest, is clled the er = 1 + re
nominal rate of interest and the actual rate of return is r = log e (1 + re)
called the effective rate of interest. When the conversion = log 10 (1 + re) $ log e 10

period is a year, the effective rate of interest and nominal
= (2.3025) log 10 (1 + re)
rate of interest are same.
Thus, Force of interest = 2.3025 log 10 (1 + re).
Remark
Remark
The effective rate of interest is the actual rate compounded
The effective rates are used to compare different rates.
annually.
The rate having larger effective rate yields more interest.
Let re denote the effective rate corresponding to the
nominate rate r1 compounded m times in a year. Then, rate
per conversation period is i = r . Let P be the principal. EXAMPLE 23.58
m
Since there are m year. Then, rate per conversation period
Find the effective rate that is equivalent to a nominal rate
is periods in a year.
of 12 % compounded :
In one year, at the rate i , the principal P amounts to
(i) semi-annually, (ii) quarterly, (iii) monthly
P (1 + i) m .
(1.06)2 = 1.1236, (1.03) 4 = 1.1255, and (1.01) 12 = 1.1268
In one year, at the effective rate re , the principal amounts
to P (1 + re).

Sol :
m
Thus, P (1 + re) = P (1 + i)
Page 342 Financial Mathematics I Chap 23

Click : www.nodia.study/lema/wm157 lending. Find the effective rate of interest charged by the
lender.


Sol :
EXAMPLE 23.59
Find the effective rate that is equivalent to a nominal rate
of 18 % compounded : Click : www.nodia.study/lema/wm162
(i) semi-annually, (ii) quarterly, (iii) monthly
(1.09)2 = 1.1881, (1.045) 4 = 1.1925, and (1.015) 12 = 1.1956
EXAMPLE 23.64


Sol :
Axis Bank offers an interest rate of 9.1% compounded
semiannually whereas SBI bank offers 9.1% compounded
Click : www.nodia.study/lema/wm158 monthly. Which is better from the standpoint of the
investor ?
(Given (1.0455)2 = 1.093070 , (1.0075) 12 = 1.093807 )
EXAMPLE 23.60

Sol :
Find the effective rate that is equivalent to a nominal rate
of 24 % compounded :
(i) semi-annually, (ii) quarterly, (iii) monthly Click : www.nodia.study/lema/wm163
(1.12)2 = 1.2544, (1.06) 4 = 1.2625, and (1.02) 12 = 1.2682


Sol :
EXAMPLE 23.65
Tahir wants to make an investment of < 500, 000 for six
Click : www.nodia.study/lema/wm159 years. He has two alternatives. First alternative fetches
him a return of 8% compounded annually and the second
alternative fetches him a return of 7.5% compounded
EXAMPLE 23.61 semiannually. Which investment should he go for? (Given
(1.0375)2 = 1.076406 .
What will be the effective rate of interest if the nominal
rate of interest is 5% p.a. compounded half-yearly?

Sol :

Sol :
Click : www.nodia.study/lema/wm164
Click : www.nodia.study/lema/wm160
EXAMPLE 23.66

EXAMPLE 23.62 A depositor is entitled to receive 9% p.a. as interest on

the fixed deposit made with a Punjab National bank.
A money-lender charges interest at the rate of 100 rupees The bank credits the interest on fixed deposit account
per 1000 rupees per half-year, payable in advance. What is thrice a year. What is the effective rate of interest on fixed
the effective rate of interest per annum of lender ? deposit?(Given (1.03)3 = 1.092727 )


Sol :

Sol :

Click : www.nodia.study/lema/wm161 Click : www.nodia.study/lema/wm165

EXAMPLE 23.63
Ramkaran took a loan of < 20, 000 for 6 months from a
private lender. Lender deducts < 2500 as interest while E X ERCISE 23. 4
Chap 23 Financial Mathematics I Page 343

1. Canara Bank credits the fixed deposit account of a 7. Amitabh wants to invest < 5000 for 4 years. He may
depositor at 10% p.a. compounded semi-annually. invest the amount at 10% per annum compound
Find out the effective rate of interest that is allowed interest accruing at the end of each quarter of the year
by the bank. or he may invest it at 10.5% per annum compound
Ans : 10.25% interest accruing at the end of each year. Which
investment will give him better return?
Ans : 10.38 % < 10.5 %

2. If < 1000 is invested at the rate of 5% p.a. compounded

semi-annually, then what will be the interest after 1
year. Also find the effective rate of interest.
Ans : (i) < 50.62 (ii) 5.06 % 8. Find the effective rate of interest equivalent to the
nominal rate of 20% p.a. payable half yearly.
Ans : 21 %

3. Find the effective rate equivalent to the nominal rate

6% converted (i) monthly, (ii) continuously. 23.6 Compound Annual Growth Rate (cagr)
Ans : (i) 6.16 % (ii) 6.18 %
23.6.1 Meaning
The compound annual growth rate isn’t a true return
rate, but rather a representational figure. It is essentially
a number that describes the rate at which an investment
4. Find the nominal rate of interest compounded half would have grown if it had grown the same rate every year
yearly if the effective rate of interest is 10%. and the profits were reinvested at the end of each year.
Ans : 4.88 % half yearly In reality, this sort of performance is unlikely. However,
CAGR can be used to smooth returns so that they may
be more easily understood when compared to alternative
investments.
Compound annual growth rate (CAGR) is the rate
of return that would be required for an investment to grow
5. Find the nominal rate compounded monthly equivalent from its beginning balance to its ending balance, assuming
to 5% compounded semi-annually. the profits were reinvested at the end of each year of the
Ans : 4.94 % investment’s lifespan.

23.6.2 Uses of CAGR

1. CAGR is one of the most accurate ways to calculate
and determine returns for anything that can rise or
fall in value over time.
2. The compound annual growth rate can be used to
6. Recently SBI bank has announce the rate of interest
calculate the average growth of a single investment.
on a term deposit is 12% p.a. compounded quarterly.
As we saw in our example above, due to market
What is the effective rate of interest?
volatility, the year-to-year growth of an investment
Ans : 12.55 %
will likely appear erratic and uneven. For example,
an investment may increase in value by 8% in one
year, decrease in value by -2% the following year and
increase in value by 5% in the next. CAGR helps
smooth returns when growth rates are expected to
Page 344 Financial Mathematics I Chap 23

be volatile and inconsistent. to $13,000 (or 30% in year one).

3. Compare Investments : Investors can compare the 2. On Jan 1, 2016, the portfolio was $14,000 (or 7.69%
CAGR of two alternatives in order to evaluate how from Jan 2015 to Jan 2016).
well one stock performed against other stocks in a 3. On Jan 1, 2017, the portfolio ended with $19,000 (or
peer group or against a market index. CAGR can 35.71% from Jan 2016 to Jan 2017).
be used to compare investments of different types We can see that on an annual basis, the year-to-
with one another. For example, suppose in 2013 an year growth rates of the investment portfolio were quite
investor placed <10,000 into an account for 5 years different as shown in the parenthesis.
with a fixed annual interest rate of 1% and another On the other hand, the compound annual growth
<10,000 into a stock mutual fund. The rate of return rate smooths the investment’s performance and ignores
in the stock fund will be uneven over the next few the fact that 2014 and 2016 were so different from 2015.
years so a comparison between the two investments The CAGR over that period was 23.86% and can be
would be difficult. calculated as follows:
Assume that at the end of the five-year period, 1

=e o − 1 = 23.86%
19, 000 3
the savings account’s balance is <10,510.10 and, CAGR
10, 000
although the other investment has grown unevenly, The compound annual growth rate of 23.86% over
the ending balance in the stock fund was <15,348.52. the three-year investment period can help an investor
Using CAGR to compare the two investments can compare alternatives for their capital or make forecasts
help an investor understand the difference in returns: of future values. For example, imagine an investor is
Savings Account CAGR comparing the performance of two investments that are
1
uncorrelated. In any given year during the period, one
=e o − 1 = 1.00%
10, 510.10 5

10, 000 investment may be rising while the other falls. This could
And be the case when comparing high-yield bonds to stocks,
1 or a real estate investment to emerging markets. Using
Stock fund CAGR = e o − 1 = 8.95%
15, 348.52 5
CAGR would smooth the annual return over the period so
$10, 000
On the surface, the stock fund may look like a the two alternatives would be easier to compare.
better investment with nearly nine times the return
23.6.3 Difference between CAGR and AGR
of the savings account. On the other hand, one of
the drawbacks to CAGR is that by smoothing the The main difference between a CAGR and annual growth
returns, CAGR cannot tell an investor how volatile rate is that CAGR assumes the growth rate was repeated,
or risky the stock fund was. or “compounded” each year, whereas annual growth
4. Track Performance : CAGR can also be used to rate does not. Many investors prefer CAGR because it
track the performance of various business measures smoothes out the volatile nature of year-by-year growth
of one or multiple companies alongside one another. rates. For instance, even a highly profitable and successful
For example, over a five-year period, Big-Sale Stores’ company will likely have several years of poor performance
market share CAGR was 1.82%, but its customer during its life. These bad years could have a large effect
satisfaction CAGR over the same period was -0.58%. on individual years’ growth rates, but they would have a
In this way, comparing the CAGRs of measures relatively small impact on the company’s CAGR.
within a company reveals strengths and weaknesses.
23.6.4 Calculation of CAGR
5. Detect Weaknesses and Strengths : Comparing
CAGRs of business activities across similar To derive the compounded annual growth rate, formula is
companies will help evaluate competitive weaknesses shown below:
and strengths. For example, Big-Sale’s customer 1
= c EV m − 1
n
satisfaction CAGR might not seem so low when CAGR
BC
compared with SuperFast Cable’s customer where,
satisfaction CAGR of -6.31% during the same period. EV = Ending value
Example of How to Use CAGR BV = Beginning value
Imagine you invested $10,000 in a portfolio with the n = Number of years
returns outlined below: The compounded annual growth rate can be
1. From Jan 1, 2014, to Jan 1, 2015, your portfolio grew calculated by using the following steps :
Chap 23 Financial Mathematics I Page 345

1. Firstly, determine the beginning value of the Click : www.nodia.study/lema/wm168

investment or the money that was invested at the
start of the investment tenure.
2. Next, determine the final value or ending value of EXAMPLE 23.70
the investment at the end of the tenure of investment
or the ending value. Year-end revenues of a firm over a three-year period are
3. Next, determine the tenure of the investment, i.e., given by
number years from the start of the investment to the Year-end 31-12-2016 31-12-2019
end of the same.
Year-end-Revenue 9000 13000
4. Next, divide the ending value of the investment by
the beginning value and then raise the result to Calculate CAGR over the three-year period spanning the
the power of reciprocal of the tenure of investment. end of 2016 to the end of 2019.
Finally, subtract 1 from the result and express in

Sol :
percentage terms.

EXAMPLE 23.67
Click : www.nodia.study/lema/wm169
The beginning value of the investment is < 10000 and the
ending value of the investment is < 14000 over a period of EXAMPLE 23.71
2 years, calculate CAGR.
The revenues of a company over a period are given by


Sol :
Year 2014 2015 2016 2017
Revenues 100 115 150 200
Click : www.nodia.study/lema/wm166 Calculate CAGR over the three-year period spanning the
end of 2014 to the end of 2017.

EXAMPLE 23.68

Sol :

An investor bought 200 shares of Amazon.com stock in

December 2015 at < 325 per share, for a total investment
of < 65000. After 3 years, in December 2018, the stock has
Click : www.nodia.study/lema/wm170
risen to < 875 per share, and the investor’s investment
is now worth < 175000. What is the compound annual EXAMPLE 23.72
growth rate? Amit invest < 1000 in Equity mutual fund for five years.


Sol : The year-end value of the investment is listed below for
each year:

Click : www.nodia.study/lema/wm167
1st Year 2nd Year 3rd Year 4th Year 5th Year
< 750 < 1000 < 3000 < 4000 < 5000
Calculate the CAGR of the investment.
EXAMPLE 23.69

Sol :
M/s JBC Earthmovers was founded on April 1, 2018 by a
RK Sharma. The revenue numbers for firm are as follows:
Click : www.nodia.study/lema/wm171
2018-2019 2019-2020 2020-2021
< 300000 < 250000 < 550000
Find compound annually growth rate of company X .


Sol :
E X ERCISE 23. 5
Page 346 Financial Mathematics I Chap 23

1. Rajkumer invest < 2000 in Equity mutual fund for Calculate CAGR over the three-year period spanning
five years. The year-end value of the investment is the end of 2016 to the end of 2019.
listed below for each year: Ans : 13 %
1st Year 2nd Year 3rd Year 4th Year 5th Year
< 1500 < 2000 < 6000 < 8000 < 10000
Calculate the CAGR of the investment.
Ans : 37.97 %

6. Let us take an example of David, who invested $50,000

in a portfolio on Jan 1, 2015, and the following
portfolio return has been outlined below:
• On Jan 1, 2016, the value of the portfolio stood at
$60,000
2. The beginning value of the investment is < 25000 and • On Jan 1, 2017, the value of the portfolio was
the ending value of the investment is < 35000 over a $73,000
period of 2 years, calculate CAGR. • On Jan 1, 2018, the value of the portfolio was
Ans : 18.32% $70,000
• On Jan 1, 2019, the value of the portfolio was
$85,000
Based on the given, determine the yearly return and
the CAGR for David’s investment portfolio.


Sol :
3. Jignesh bought 1000 shares of Mega Phrarma stock
Use the following data for the calculation of CAGR.
in December 2015 at < 130 per share, for a total
investment of < 130, 000. After 3 years, in December A B
2018, the Jignesh’s investment is now worth < 350, 000
Date Value of portfolio
. What is the compound annual growth rate?
Ans : 39.12 % 1. Jan 1, 2015 $50,000
2. Jan 1, 2016 $60,000
3. Jan 1, 2017 $73,000
4. Jan 1, 2018 $70,000
5. Jan 1, 2019 $85,000
4. Online retailer Flipkart was founded on April 1, 2007 Return for 1st year
by a Sachin Bansal. The revenue numbers for firm for
= [(Ending value/Beginning value) − 1] * 100%

initial 2 was are as follows:
= =d n − 1G * 100 = 20.00%
60, 000
2007-2008 2008-2009 2009-2010
50, 000
< 600, 000 < 850000 < 1, 000, 000 Return for 2nd year

= =d n − 1G * 100% = 21.67%
Find compound annually growth rate of company X . $73, 000

Ans : 35.40 % $60, 000
Return for 3rd year

= =d n − 1G * 100 =− 4.11%
$70, 000

$73, 000
Return for 4th year

= =d n − 1G * 100% = 21.43%
$85, 000

5. Year-end revenues of Flipkart over a last three-year $70, 000
1

CAGR = >d n − 1H * 100% = 14.19%

period are given by $85, 000 4
Year-end 31-03-2016 31-12-2019 $50, 000

Year-end-Revenue 900 million 1300 million

Chap 23 Financial Mathematics I Page 347

23.7 Linear method of Depreciation 1,000. Then its net residual value shall be <5,000
(Straight line method) (i.e. <6,000 – <1,000).
3. Estimated Useful Life : Useful life of an asset is the
23.7.1 Meaning of Depreciation estimated economic or commercial life of the asset.
The fixed assets of a business enterprise such as machinery, Physical life is not important for this purpose because
equipment of all kinds diminish in value as time goes on an asset may still exist physically but may not be
account of wear and tear, exposure etc. Depreciation capable of commercially viable production. For
means allowance provided in the value of assets due to example, a machine is purchased and it is estimated
wear and tear. The value of the asset at the end of year that it can be used in production process for 5 years.
one would be less than its value in the beginning of the After 5 years the machine may still be in good
year. The rate at which the decline takes place is known physical condition but can’t be used for production
as rate of depreciation. The value of a depreciable asset profitably, i.e., if it is still used the cost of production
at the end of useful life is called the scrap value (S ) The may be very high. Therefore, the useful life of the
difference between the original cost and the scrap value is machine is considered as 5 years irrespective of its
the total depreciation. physical life.

23.7.2 Factors Affecting the Amount of 23.7.3 Linear Method of Depreciation

Depreciation This is the earliest and one of the widely used methods
of providing depreciation. According to this method, an
The determination of depreciation depends on three
equal amount is written off every year during the working
parameters, viz. cost, estimated useful life and residual/
life of an asset so as to reduce the cost of the asset to nil
salvage value.
or its residual value at the end of its useful life.
1. Cost : It includes invoice price and other costs, which
This method is based on the assumption of equal
are necessary to put the asset in use or working
usage of the asset over its entire useful life. It is called
condition. Besides the purchase price, it includes
straight line for a reason that if the amount of depreciation
freight and transportation cost, transit insurance,
and corresponding time period is plotted on a graph, it will
installation cost, registration cost, commission paid
result in a straight line. It is also called fixed installment
on purchase of asset add items such as software, etc.
method because the amount of depreciation remains
In case of purchase of a second hand asset it includes
constant from year to year over the useful life of the asset.
initial repair cost to put the asset in workable
According to this method, a fixed and an equal amount is
condition. According to Accounting Standand-6 of
charged as depreciation in every accounting period during
ICAI, cost of a fixed asset is “the total cost spent
the lifetime of an asset. The amount annually charged as
in connection with its acquisition, installation and
depreciation is such that it reduces the original cost of the
commissioning as well as for addition or improvement
asset to its scrap value, at the end of its useful life. This
of the depreciable asset”.
method is also known as fixed percentage on original cost
For example, a photocopy machine is purchased for
method because same percentage of the original cost is
<50,000 and <5,000 is spent on its transportation
written off as depreciation from year to year.
and installation. In this case the original cost of the
The depreciation amount to be provided under this
machine is <55,000 (i.e. <50,000 + <5,000) which
method is computed by using the following formula:
will be written off as depreciation over the useful life
Annual Depreciation Expense
of the machine.
2. Residual Value : Residual value (also known as scrap (Cost of the Asset − Salvage Value)
=
Useful Life of the Asset
value or salvage value for accounting purpose) is the where,
estimated net realisable value (or sale value) of the Cost of the asset is the purchase price of the asset
asset at the end of its useful life. The net residual Salvage value is the value of the asset at the end of its
value is calculated after deducting the expenses useful life
necessary for the disposal of the asset. For example, Useful life of asset represents the number of periods/years
a machine is purchased for <50,000 and is expected in which the asset is expected to be used by the company
to have a useful life of 10 years. At the end of 10th Additionally, the straight line depreciation rate can be
year it is expected to have a sale value of <6,000 but calculated as follows:
expenses related to its disposal are estimated at < Straight Line Depreciation Rate
Page 348 Financial Mathematics I Chap 23

Annual Depreciation Expense charged against profit on account of depreciation and

=
(Cost of the Asset − Salvage Value) repair taken together, will not be uniform throughout
The calculation steps are: the life of the asset, rather it will keep on increasing
1. Determine the cost of the asset. from year to year.
2. Subtract the estimated salvage value of the asset
from the cost of the asset to get the total depreciable
amount. EXAMPLE 23.73
3. Determine the useful life of the asset.
A old car was purchased for < 2, 00, 000 and sold for
4. Divide the sum of step (2) by the number arrived at
in step (3) to get the annual depreciation amount.
< 50, 000 after 5 years. Calculate annual depreciation by
straight line method.
For example, company A purchases a machine for <
100,000 with an estimated salvage value of <20,000 and a

Sol :
useful life of 5 years. The straight line depreciation for the
machine would be calculated as follows:
1. Cost of the asset: <100,000 Click : www.nodia.study/lema/wm172
2. Cost of the asset – Estimated salvage value: <100,000
– <20,000 = <80,000 total depreciable cost
3. Useful life of the asset: 5 years EXAMPLE 23.74
4. Divide step (2) by step (3): <80,000/5 years A manufacturing company purchases a machinery for
=< 16, 000 annual depreciation amount < 450, 000 and the useful life of the machinery is 10 years
Therefore, Company A would depreciate the and the residual value of the machinery is < 20, 000.
machine at the amount of <16,000 annually for 5 years. (i) Calculate amount of annual depreciation using linear
method of depreciation.
(ii) Calculate the percentage annual depreciation ?
23.7.4 Advantages of Linear Method of Depreciation

Sol :
Straight Line method has certain advantages which are
stated below:
1. It is very simple, easy to understand and apply. Click : www.nodia.study/lema/wm173
Simplicity makes it a popular method in practice;
2. Asset can be depreciated upto the net scrap value or
zero value. Therefore, this method makes it possible EXAMPLE 23.75
to distribute full depreciable cost over useful life of The original cost of the asset is < 270, 000. The useful life
the asset; of the asset is 10 years and net residual value is estimated
3. Every year, same amount is charged as depreciation to be < 20, 000.
in profit and loss account. This makes comparison of (i) Construct a schedule for depreciation.
profits for different years easy; (ii) Find the book value at the end of 6th year.
4. This method is suitable for those assets whose useful (iii) Find the book value at the beginning of 7th year.
life can be estimated accurately and where the use

Sol :
of the asset is consistent from year to year such as
leasehold buildings.
Click : www.nodia.study/lema/wm174
23.7.5 Disadvantages of Linear Method of
depreciation
Although straight line method is simple and easy to apply EXAMPLE 23.76
it suffers from certain limitations which are given below: A photstate machine costing < 60, 000 has a useful life of 5
1. This method is based on the faulty assumption of years. The estimated scrap value is < 10, 000.
same amount of the utility of an asset in different (i) Using the straight line method, find the annual
accounting years; depreciation
2. With the passage of time, work efficiency of the (ii) Find the depreciation rate in percentage.
asset decreases and repair and maintenance expense (iii) Construct a schedule for depreciation.
increases. Hence, under this method, the total amount
Chap 23 Financial Mathematics I Page 349

Sol : EXAMPLE 23.80

Raju purcahse a HP printer for < 30, 000 for his office.
This printer has a life time of 4 years and has a residual
Click : www.nodia.study/lema/wm175 value of < 2000?
(i) What is the annual depreciation?
(ii) Prepare a four-year depreciation schedule for the
EXAMPLE 23.77 printer.

A mac book cost is < 200, 000 will depreciate to a scrap

Sol :
value of < 20, 000 in 5 years.
(i) Using linear method of depreciation find annual
depreciation of the computer. Click : www.nodia.study/lema/wm179
(ii) Find the book value of the computer at the end of
third year.
EXAMPLE 23.81


Sol : 12 years ago M/s Bhavya Polymers purchased a piece
of equipment for < 40, 000. At the time the equipment
was put into use the service life estimated was 20 years
Click : www.nodia.study/lema/wm176 and salvage value was zero. On this basis a straight line
method was set up. The equipment can now (after 12
years) be sold for < 10, 000. The cost of the new equipment
EXAMPLE 23.78 is < 52, 000. Assuming depreciation fund is available for
An insurance company purchase an SUV for its employees. purchase, compute how much new capital must be made
The original cost is < 2, 500, 000. The SUV is sold after 5 available for the purchase of the equipment?
years for < 1, 000, 000.

Sol :
(i) What is the annual depreciation?
(ii) What is the percentage rate of depreciation?
(iii) Find the book value of the SUV at the end of second Click : www.nodia.study/lema/wm180
year.


Sol :
EXAMPLE 23.82
On April 1, 2010 RVC Company purchased a equipment

Click : www.nodia.study/lema/wm177 for < 150, 000. The estimated salvage value and useful life
are < 30, 000 and 4 years, respectively. On April 1, 2012,
the company determines that the asset’s remaining useful
life is 3 years. What is the revised depreciation expense for
EXAMPLE 23.79 2012 if the company uses the straight-line method?
A rock band has gained much popularity across the

Sol :
country. They buy a bus to travel to their destinations.
The purchase price is < 1, 850, 000. The bus will be
depreciated linearly over 10 years, and will then have a
scrap value of < 350, 000.
Click : www.nodia.study/lema/wm181
(i) What is the annual depreciation?
(ii) What will be the book value of the bus at the end of EXAMPLE 23.83
the 6th year? On April 1, 2014 M/s Sheetal Export purchased a packing
(iii) When will the bus be worth < 800, 000? machine for < 150, 000. The estimated salvage value


Sol : and useful life are < 10, 000 and 10 years, respectively.
On March 31, 2020, the company sold the machine for
< 70, 000. Determines the loss/gain in the books on the
Click : www.nodia.study/lema/wm178 sale of machine.


Sol :
Page 350 Financial Mathematics I Chap 23

Click : www.nodia.study/lema/wm182 5. RNP Digital Services purchased a HP digital printer

for < 120, 000 12 years ago. At the time the printer
was put into use the service life estimated was 20
years and salvage value was zero. On this basis a
straight line method was set up. The printer can now
E X ERCISE 23.6 (after 12 years) be sold for < 30, 000. The cost of the
new printer is < 156, 000. Assuming depreciation fund
is available for purchase, compute how much new
capital must be made available for the purchase of
1. A old maruti van was purchased for < 150, 000 and the printer?
sold for < 60, 000 after 6 years. Calculate annual Ans : =< 54, 000
depreciation by straight line method.
Ans : < 15, 000

6. On April 1, 2010 Genex Export Co. purchased a

packing machine for < 300, 000. The estimated salvage
2. Mangalam Builder purchased an SUV for its for sight value and useful life are < 20, 000 and 10 years,
visit. The original cost is < 2, 000, 000. The SUV is respectively. On March 31, 2016, the company sold
sold after 7 years for < 600, 000. the machine for < 140, 000. Determines the loss/gain
(i) What is the annual depreciation? in the books on the sale of machine.
(ii) Find the book value of the SUV at the end of Ans : < 8, 000
third year.
Ans : (i) < 200, 000 (ii) < 1, 400, 000

3. Trimurti Plastic Company purchased a machinery

for < 900, 000 and the useful life of the machinery is
12 years and the residual value of the machinery is

******
< 60, 000. Find the amount of annual depreciation
using linear method of depreciation.
Ans : < 84, 000

4. Mega Rockstar is a very popular band in Delhi.

Recently they buy a luxury bus to travel to their
destinations for performance. The purchase price is
< 3, 700, 000. The bus will be depreciated linearly over
10 years, and will then have a scrap value of < 700, 000.
(i) What is the annual depreciation?
(ii) What will be the book value of the bus at the end
of the 6th year?
(iii) When will the bus be worth < 1, 600, 000?
Ans : (i) < 300, 000 (ii) < 190, 000 (iii) 7 years
Chap 24 Financial Mathematics II Page 351

CHAPTER 24

Financial Mathematics II

24.1 Introduction the value they can get from the market is called Market
We know that Finance is the life blood of any enterprises. Value (M.V.) of the stock.
It is the pivot around which every activity revolves. In Premium
order to support its investments, a firm must find the A stock is at a premium (above par), at par or at a discount
means to finance term. The two broad sources of long- (below par) according as its market value is greater than,
term finance are equity and debt. Equity consists of equity equal to or less than the face value.
capital, retained earnings and preference capital. It is
referred to as shareholders’ funds on balance sheet. Debt, Brokerage
which is referred to as loan funds on balance sheet includes Generally, stocks are sold and purchased through brokers.
term loans, debentures, and short-term borrowings. The amount paid to them for their effort in selling and
purchasing of stocks is called brokerage. While purchasing
stocks, brokerage is added to the market value of the
stock. Where as on selling stocks brokerage is subtracted
from the market value. i.e. (i) C.P. = M.V. + Brokerage (ii)
,

S.P. = M.V. − brokerage .

Sometimes-Government requires money to meet

the expenses of a certain project or a big work of public
24.2 Joint Stock Company
utility. In such cases, Government raises a loan from the
To start an industry or a big business a large amount of public at the fixed rate of interest and issues Bonds or
money is required if an individual does not have sufficient Promissory Notes as an acknowledgement of the debt.
money, then some persons associate together and prepare These bonds are generally for ` 100 and in some cases for
a detailed plan of the project with the help of some experts ` 500 and ` 1000. The government pays interest at a fixed
in that particular field. They also frame some rules and rate to the holder of these bonds. The interest is paid on
regulation regarding its functioning. These are then the value printed on the bond certificate. If a person buys
registered under the Indian companies Act. The company a bond of ` 100 on which 10% interest has been fixed by
so formed is called a joint stock company the total amount the government then the holder of such a bond is said to
of money required for the project is called the capital. have a ` 100 stock at 10%.
Usually, the government repays the loan at a date
24.3 Stocks fixed at the time of issue of bonds. This date is called the
maturity date. In case holder of a stock needs money before
A stock (also known as equity) is a security that represents the date of maturity he cannot ask the government to pay
the ownership of a fraction of a corporation. This entitles back his money. But he can sell his stock to some other
the owner of the stock to a proportion of the corporation’s person(s), where by his claim to interest is transferred to
assets and profits equal to how much stock they own. that person(s). The sale and purchase of stocks is done
Units of stock are called “shares.” The sale and purchase exactly in the same way as is done for shares.
of stocks is done exactly in the same way as is done for The face value of the stock is fixed and does not
shares. change. The stock can be sold and purchased in the
Face Value and Market Value market and the value they can get from the market is
The face value of the stock is fixed and does not change. called Market Value (M.V.) of the stock.
The stock can be sold and purchased in the market and A stock is at a Premium (above Par), at Par or at
a discount (below Par) according as its market value is
Page 352 Financial Mathematics II Chap 24

greater than, equal to or less than the face value.

Sol :

Generally, stocks are sold and purchased through
brokers. The amount paid to them for their effort in
selling and purchasing of stocks is called brokerage. Click : www.nodia.study/lema/xm105
While purchasing stocks, brokerage is added to the
market value of the stock. Where as on selling stocks
brokerage is subtracted from the market value. i.e. (i) C.P. EXAMPLE 24.6
= M.V. + Brokerage (ii) S.P. = M.V. − brokerage .
,

How much stock must be sold to realise ` 4600 from a 6%

stock at a discount of ` 7 34 ? (brokerage 14 % )


Sol :
EXAMPLE 24.1
Find the cost of ` 6000 of 7% stock at 92.


Sol : Click : www.nodia.study/lema/xm106

Click : www.nodia.study/lema/xm101 EXAMPLE 24.7

How much money a person will get by the sale of ` 5400
of 4%. stock at 105 34 . (brokerage 14 % )
EXAMPLE 24.2


Sol :
Find the cost of ` 8000 of 15% stock at 105.


Sol :
Click : www.nodia.study/lema/xm107
Click : www.nodia.study/lema/xm102
EXAMPLE 24.8
How much money is required to purchase ` 4800 stock at
EXAMPLE 24.3 ` 98 (brokerage 14 % )
Find the investment required to purchase ` 25000 of 8%

Sol :
stock at 92.


Sol :
Click : www.nodia.study/lema/xm108
Click : www.nodia.study/lema/xm103
EXAMPLE 24.9
Salman purchased 4% stock at 103 78 for ` 5200 and sold it
EXAMPLE 24.4 at 108 18 . Find gain of Salman. (brokerage 18 % )
How much money must be invested to purchase ` 4500 of

Sol :
3 12 % stock at 89 34 (brokerage 14 % ).


Sol :
Click : www.nodia.study/lema/xm109
Click : www.nodia.study/lema/xm104
EXAMPLE 24.10
Find the money received by the sale of ` 6400 stock at a
EXAMPLE 24.5 discount of 10 45 % . (brokerage 15 % )
How much money is invested in buying ` 60000 of 8%

Sol :
stock at 35 premium (brokerage 1 12 ).
Chap 24 Financial Mathematics II Page 353

Click : www.nodia.study/lema/xm110 Click : www.nodia.study/lema/xm115

EXAMPLE 24.11 EXAMPLE 24.16

How much stock must be sold to realise ` 7160 from a 5% Dheeraj gained ` 2500 on selling 5% stock at ` 116 which
stock at 89 34 (brokerage 14 % ) was purchased at ` 112. Find the money invested.


Sol :

Sol :

Click : www.nodia.study/lema/xm111 Click : www.nodia.study/lema/xm116

EXAMPLE 24.12 EXAMPLE 24.17

Radheshyam sold 8% stock at ` 96 14 of ` 4000 and invested Raju sells his ` 4800, 4% stock at 6 premium. How much
the proceed in 9% stock at ` 127 34 . Find the amount of 3 12 % stock at 4 discount can he buy from the sale proceeds
newly bought stock (brokerage 14 % ). of the former stock?


Sol :

Sol :

Click : www.nodia.study/lema/xm112 Click : www.nodia.study/lema/xm117

EXAMPLE 24.13 EXAMPLE 24.18

3
Anthony purchased 8% stock at 114 and sold it at 124
4
1
4 Rajnish sells ` 7500, 6% stock at 96 and invests the
and gained ` 675. Find the amount invested and amount proceeds in 8% stock at 106 23 . How much stock does he
received in this transaction. (brokerage 14 % ) hold now?


Sol :

Sol :

Click : www.nodia.study/lema/xm113 Click : www.nodia.study/lema/xm118

EXAMPLE 24.14 EXAMPLE 24.19

Gupta invested an amount in 6% stock at ` 96 and sold By investing ` 41600 on ` 100 stock at 8% obtained
it at ` 112 and gained ` 4800. Find the money invested. income of ` 3200 p.a. Find the market price of each stock


Sol : (brokerage 14 % )


Sol :

Click : www.nodia.study/lema/xm114
Click : www.nodia.study/lema/xm119
EXAMPLE 24.15
Agrawal invested an amount of ` 4600 in 5% stock at 8% EXAMPLE 24.20
discount and sold it at a premium of 2%. Find his gain.
Find annual income by investing ` 6900 in 9% stock at


Sol : ` 92.


Sol :
Page 354 Financial Mathematics II Chap 24

Click : www.nodia.study/lema/xm120

Sol :

EXAMPLE 24.21
Click : www.nodia.study/lema/xm125
Avinash invested a certain sum in 5% stock at 95 12 and
sold it out when the price rose to 100 34 . In the transaction EXAMPLE 24.26
he gained a sum of ` 450. What sum did he invest ? How
Find which is more profitable investment 3% stock at 66
much stock did he buy (brokerage 1 12 )?
or 4% stock at 84. What amount an each stock should be


Sol : invested to secure a difference of ` 200 in annual income?


Sol :

Click : www.nodia.study/lema/xm121
Click : www.nodia.study/lema/xm126
EXAMPLE 24.22
How much should Raman invest in 4% stock at 95 to EXAMPLE 24.27
obtain income of ` 1860 per annual after paying income
After selling a stock of ` 3200 at 3% at 105 18 and buying
tax at 7%.
a stock at 119 78 income increased by ` 16. Find dividend


Sol : on new stock. (brokerage 18 % ).


Sol :

Click : www.nodia.study/lema/xm122
Click : www.nodia.study/lema/xm127
EXAMPLE 24.23
Which is the better investment 10 12 % stock at ` 90 or EXAMPLE 24.28
11% stock at par?
A women sells out ` 6000 stock at 3 14 % at 87 and invests


Sol : in 6 14 % stock at 145. Find increase in income.


Sol :

Click : www.nodia.study/lema/xm123
Click : www.nodia.study/lema/xm128
EXAMPLE 24.24
Akbar transfer the stock of ` 11000 from 4% at 92 to 5% EXAMPLE 24.29
at 110. Find increase in income.
Find market price of a 4 12 % stock if investment of ` 4800


Sol : gives income of ` 150 after paying 6 14 % income tax.


Sol :

Click : www.nodia.study/lema/xm124
Click : www.nodia.study/lema/xm129
EXAMPLE 24.25
Find which is more profitable investment 4% at 120 or EXAMPLE 24.30
4 12 % at 122. What equal amount should be invested on
Find market values of a 7% stock if man gets 6% income
each to secure a total income of ` 5140.
on his investment after paying 8% income tax.
Chap 24 Financial Mathematics II Page 355

Sol : EXAMPLE 24.35

After selling a stock of ` 2500 of 3% at 88 and buying at
137 12 my income increased by 43 th of first. Find dividend
Click : www.nodia.study/lema/xm130 in second case, amount of stock purchased and actual rate
of interest.


Sol :
EXAMPLE 24.31
Which is better investment 3% stock at 82 with income
tax 3 18 % or 4% stock at 112 without income tax? Click : www.nodia.study/lema/xm135


Sol :

EXAMPLE 24.36
Click : www.nodia.study/lema/xm131 Satvik ` 16000 partly in 4% stock at 80 and rest in 5%
stock at 110. If his income is ` 750, find investment in
each stock.
EXAMPLE 24.32


Sol :
Ramkishan invested ` 20000 in 4% stock at 79 34 sells it
at 102 14 and reinvested the proceeds in 8% stock at 84 34
. (brokerage 14 % ) Click : www.nodia.study/lema/xm136
(i) What is change in income ?
(ii) What is rate of effective interest on original
investment ? EXAMPLE 24.37


Sol : A man sells out 3% stock at 80 and reinvested in 4% stock
at 96. It income increases by ` 70. Find face value of the
stock he sold out.
Click : www.nodia.study/lema/xm132

Sol :

EXAMPLE 24.33 Click : www.nodia.study/lema/xm137

Laxman invested ` 18000 in 3% stock at 90 and sold at 95
and reinvested on 4% stock. It increased my income by `
160. Find the market value of new stock. EXAMPLE 24.38


Sol : Sheetal invests equal amounts in 5 12 % stock at 110 and
6% stock at 126. If his total income from investment is
` 246, find the amount investment in each stock.
Click : www.nodia.study/lema/xm133

Sol :

EXAMPLE 24.34 Click : www.nodia.study/lema/xm138

Namarata has 3% stock giving income of ` 480 per annum.
She sold out 14 th of stock at 87 14 and invested the proceed
in stock at 174 12 . What dividend the later pay so that her EXAMPLE 24.39
income increased by ` 80. Suman invests ` 74400 partly in a 5% stock at 216 and


Sol : partly in a 4% stock at 224. His income from each stock
is the same.
(i) How much does he invests in each stock?
Click : www.nodia.study/lema/xm134 (ii) What is his total income ?
Page 356 Financial Mathematics II Chap 24

Sol : EXAMPLE 24.44

Zakira invest ` 29700 partly in 3.5% stock of 98 and rest
in 3.92% stock at per. If amount of each stock is same,
Click : www.nodia.study/lema/xm139 find investment in each stock.


Sol :

EXAMPLE 24.40
Ram invests ` 29940 partly in 3% stock at 90 and partly Click : www.nodia.study/lema/xm144
in 3 14 % stock at 97. His total income is ` 1000. How much
did he invest in each stock.


Sol : EXAMPLE 24.45
Kohli invests ` 13000 partly in 4.5% stock at 90 and
partly in 7% stock at 120. Find the investment in each
Click : www.nodia.study/lema/xm140 stock if income from both the stocks are equal.


Sol :

EXAMPLE 24.41
Bharat invest half of his money in 4% stock at 120 and Click : www.nodia.study/lema/xm145
rest in 6% stock at 90. Had he invested his money to buy
equal amount of each stock, he would have got ` 20 less
of income. Find the investment of Bharat. EXAMPLE 24.46


Sol : Gaurav invests ` 13950 partly in 4% stock at 120 and
rest in 3% stock at 96. If dividend from each investment is
same, find investment in each stock.
Click : www.nodia.study/lema/xm141

Sol :

EXAMPLE 24.42
Click : www.nodia.study/lema/xm146
Ritik invest a certain sum in 3% stock at 80 and equal
amount in 5% stock at 120. If his income is ` 570, how
much does he invest in each stock? EXAMPLE 24.47


Sol : Rohini invests ` 39200 partly in 3% stock at 96 and rest
in 4% stock at par. Her total income after paying 25%
income tax is ` 1050. Find her investment in each stock.
Click : www.nodia.study/lema/xm142

Sol :

EXAMPLE 24.43
Click : www.nodia.study/lema/xm147
Lekhi invests ` 42000 partly in 5% stock at 143 and partly
in a 3.5% stock at 91. Her income from each stock is same,
find invested in each stock. EXAMPLE 24.48


Sol : Arun invests ` 34720 partly in 6.5% stock at 124 and
partly in 4.5% stock at 93. His total income after paying
15% income tax is ` 1479.
Click : www.nodia.study/lema/xm143 (i) Find his investment in each stock.
(ii) Find the amount of each stock purchased.


Sol :
Chap 24 Financial Mathematics II Page 357

Click : www.nodia.study/lema/xm148 this transaction. From the money invested.

Ans : ` 7280

4. What amount a person should invest in 3 12 % stock at

EXAMPLE 24.49
95 to get a net income of ` 665 after paying income
Lavana invests 13 rd of his amount in 6% stock at 120, 25 th tax at 5%.
of his amount in 5% stock at par and rest in 3.75% stock Ans : ` 19000
at 75. Find his total investment if total income is ` 1240.
5. A man transfer the stock of the face value of ` 6000


Sol :
from 5% at 82 58 to 4 12 % at 98 78 . Find the change in
income. (brokerage 18 % )

Click : www.nodia.study/lema/xm149
Ans : ` 75

6. Alam sold ` 4500 stock of 3% at 87 34 and invested

proceeds in 4% stock at 98 34 . Find change in income
EXAMPLE 24.50 (brokerage 14 % )
Taniya purchased 8% stock at 110 with ` 44000. Out of Ans : ` 24
this stock of ` 12000 was sold at 6% premium and rest at
12% premium. Find out gain or loss. 7. A man exchanged a stock of ` 7600 of 5% at 105 with


Sol : 4 12 % stock and then loses ` 2 in income. Find market
value of the second stock.
Ans : ` 95
Click : www.nodia.study/lema/xm150 8. A person invest ` 6000 partly in 5% stock at 90 and
rest in 6% stock at 120. If his income from both the
sources is ` 320, how much does he invest in each
EXAMPLE 24.51
case ?
Ashish invest ` 13650 of 3% stock at ` 91. He sold
Ans : ` 2400
` 10000 stock when it has risen to 93 12 and remainder
when it was fallen to 85. How much does he gain or loss 9. Mohan invests ` 30000 partly in 3% stock at 89 78 and
by the transaction. rest in 3 14 % stock at 90 78 yield total income ` 1026.


Sol : Find investment on each stock. (brokerage 18 % ).
Ans : ` 19080 and ` 10920

Click : www.nodia.study/lema/xm151 10. Sita invests ` 27900 partly in 4% stock at 114 78 and
rest in 3% stock at 96 38 . If total income is ` 873, find
investment in each stock if brokerage 18 % and ` 3
stamp charges on total amount invested.
Ans : ` 1527.25 and ` 26372.75

E X ERCISE 24.1
24.4 Shares
1. How much money will be realised from the sale of `
6500 of 5% stock at 105 18 . (brokerage 18 % ) 24.4.1 Meaning
Ans : ` 6825 A share in a company is one of the units into which the
total capital of the company is divided, e.g., if the capital
2. Avinash purchased 8% stock at 110 with ` 44000.
of the company is ` 1 crore and it is divided into 1000000
Out of this stock of ` 12000 was sold at 6% premium
units of ` 10 each unit of ` 10 shall be called a share of
and rest at 12% premium. Find out gain or loss.
the company.
Ans : ` 80
A joint stock company divides the required capital
3. Ram invested some money in 8%. Stock at a premium into equal small units. The company then issues a
of 4% and sold at premium of 7%. He gained ` 210 in prospectus, explaining the plan of the project and invites
Page 358 Financial Mathematics II Chap 24

the general public to invest money in the proposal project as dividend. A ‘30% dividend’ means that on a share
by purchasing the shares of the company. Those persons of 100, the shareholder gets 30 and on a share of 10
who accept the terms and condition of the company and the shareholder gets 3.
consider the investment profitable, apply for these shares.
The company reserves the right whether to allot shares 24.4.3 Types of Shares
to a person or not. This situation generally arises when There are two types of shares:
the number of applicants is very large in comparison to 1. Preferred Shares
number of shares. When one is allotted shares by the
2. Common or Ordinary Shares (Equity Shares)
company and has paid the money prescribed by the
company for the shares, the company issues certification 1. Preferred Shares
indicating the number of shares allotted to the person In preferred shares, the share holders receive a specified
and the value of each share. These certificates are called percent of the profits as dividend. Note that preferred
share certificates. The person who subscribes in shares are share holders are paid dividend only if the company has
called share holder. profits after paying working expenses and taxes.

24.4.2 Related Terms 2. Common or Ordinary Shares (Equity Shares)

1. Face Value : The value for which a share is issued Common or Ordinary shares are those shares which are
by a company is called the face value of the share. paid dividend only when profits are left after preferred
The face value of a share is printed on the Share share holders have been paid dividend at specified rate.
Certificate and is also known as the nominal value or Some time common share holders do not get any dividend
par value of the share. because no profit is left for them after paying for working
2. Market Value : Like any other commodities shares expenses, taxes and preferred share holders.
can be sold and purchased in a market, called stock
exchange when we sell a share in the market it may 24.4.4 Features of Equity Shares
fetch a value more than the face value or less than 1. Equity shareholders have the right to vote on various
the face value depending upon market conditions matters of the company.
and so many other factors affecting the market. The 2. The management of the company is elected by equity
value for which a share is available in the market is shareholders.
called the market value of the share. For example, If 3. The equity share capital is held permanently by the
` 100 share is quoted at 75 premium, then its market company and returned only upon winding up.
value is ` (100 + 75) = ` 175 . In another case, If ` 4. Equity shares give the right to the holders to claim
100 share is quoted at 10 discount, then the market dividend on the surplus profits of the company. The
value of the share is ` (100 - 10) = ` 90 . rate of dividend on the equity capital is determined
3. Brokerage : Shares are sold and purchased in a by the management of the company.
market, called stock exchange. The sale and purchase 5. Equity shares are transferable in nature. They can
of shares is, generally done through agents called be transferred from one person to another with or
share-brokers or simply brokers. Brokers charge without consideration.
commission from buyers as well as sellers. The
broker’s commission is called brokerage. Brokerage is 24.4.5 Advantages of Equity Shares
calculated on the market value of the share.
From the Shareholder’s Point of View
4. Dividend : After collecting sufficient money through
shares from the general public a company starts 1. Equity shares are liquid in nature and can be sold
working. If it makes a profit during financial year, a easily in the capital market.
part of the profit is kept in reserve fund, depreciation 2. The dividend rate is higher for the equity shareholders
account etc. to pay government taxes etc. and the when the company earns high profits.
rest is distributed amongst the shareholders in 3. The equity shareholders have the right to control the
proportion to the number of shares held by them. company’s management.
This distributed profit is known as dividend. 4. The equity shareholders not only get the benefit
Dividend may be given as per share or as a percent. of dividend but they also get the benefit of price
When we say that a dividend of 7 per share, this appreciation in the value of their investment.
means that a person having 100 shares will get 700
From the Company’s Point of View:
Chap 24 Financial Mathematics II Page 359

1. Equity shares are the permanent source of capital for profit is 16% on his investment. At what price did Jackson
a company. buy the share?
2. There is no requirement of creating a charge over the

Sol :
assets of the company when equity shares are issued.
3. The liability of the equity shares is not required to be
paid.
4. The company does not have any obligation to pay
Click : www.nodia.study/lema/xm155
dividend to the shareholders.
5. The credit worthiness of the company increases
EXAMPLE 24.56
among the investors and creditors when the company
has a larger equity capital base. JBC Earthmovers declared an annual dividend of 13%.
The above mentioned are the advantages of equity Find the annual dividend of Varsha owning 3000 shares of
shares to both the shareholders and the company. Let us the company of par value ` 10 each.
now learn about the types of equity shares.

Sol :

EXAMPLE 24.52 Click : www.nodia.study/lema/xm156

A company issued shares at 10% premium. Bhupesh
applied for 1000 shares but was allotted 500 shares of this
company. Find his investment if the face value of a share EXAMPLE 24.57
is ` 100. Fresh Food India Ltd issued 60000 shares of par value `


Sol : 10 each. If the total dividend declared by the company is
` 75000, find the rate of dividend paid by the company.


Sol :
Click : www.nodia.study/lema/xm152
Click : www.nodia.study/lema/xm157
EXAMPLE 24.53
Find the investment in buying 450 shares of ` 100 each
at 5 discount. EXAMPLE 24.58


Sol : Vaishnavi had 100 preferred shares and 800 common
shares of par value ` 100 each. If the dividend declared
on preferred shares is 10% per annum and a semi-annual
Click : www.nodia.study/lema/xm153 dividend of 7.5% is on common shares, find the annual
dividend received by Vaishnavi.


Sol :
EXAMPLE 24.54
Find what a buyer would have to pay for 450 shares of `
10 each quoted at ` 84. What should be the gain to the Click : www.nodia.study/lema/xm158
share-holder, if he had purchased the share at par?


Sol :
EXAMPLE 24.59
Sita bought 400 shares of a company quoted at ` 275.
Click : www.nodia.study/lema/xm154 Find the amount spent by him on this purchase, if the
brokerage be 1%.


Sol :
EXAMPLE 24.55
Jackson buys a ` 40 shares in a company, which pays 10%
dividend. Jackson buys the share at such a price that his
Page 360 Financial Mathematics II Chap 24

Click : www.nodia.study/lema/xm159 EXAMPLE 24.64

100-rupee share of Infosys is quoted at ` 760 in the
market. How much does Suresh pay to purchase 1000 such
EXAMPLE 24.60 shares, if the brokerage paid by him is 1% ? What is his
rate of return on this investment, if the company pays a
Sushil Gupta invested ` 4444 in the shares of face value `
dividend of 15 % ?
100 each of a real estate company. At the end of the year,
the company declared dividend at 15% which gave him an

Sol :
income of ` 600. At what price was the share quoted if the
brokerage was 1% ?


Sol : Click : www.nodia.study/lema/xm164

Click : www.nodia.study/lema/xm160 EXAMPLE 24.65

Hina invested ` 10000 and purchased 800 shares of par
value ` 10 each. Now Answer the following :
EXAMPLE 24.61 (i) How much above par is the market value of these
shares ?
The capital of a Raj Electronics Pvt Ltd is made up of
(ii) If the dividend per share is 10%, find Hina’s income
60000 preferred shares with dividend of 20% and 24000
from these shares.
equity shares, the par value of each type of share being
` 10. The company had a total profit of ` 216000 out

Sol :
of which ` 36000 were kept in reserve fund, and the
remaining distributed to share holders. Find the dividend
percent paid to the common shareholders. Click : www.nodia.study/lema/xm165


Sol :

EXAMPLE 24.66
Click : www.nodia.study/lema/xm161 Share of Vegii Foods is sold at premium of ` 25. The face
value of a share is ` 100. Now answer the following :
(i) Find the amount required by Vedant to purchase
EXAMPLE 24.62 5000 shares.
(ii) What would be the gain of the original share holder
Calculate the money required to buy 350 of ` 20 share at
from Vedant if he had bought each share at 10%
a premium of ` 7.
discount?


Sol :


Sol :

Click : www.nodia.study/lema/xm162 Click : www.nodia.study/lema/xm166

EXAMPLE 24.63
EXAMPLE 24.67
100-rupee shares of a company are sold at 15 % discount.
Rajeshwari bought 1600 preferred shares of par value ` 50
If the return on investment is 20 %, find the rate of
each at ` 2 premium (Brokerage 5%). After a month, the
dividend declared.
price of the shares fell and she sold 600 of the shares at


Sol : ` 47 each (Brokerage 2%) and sometime later she sold the
remaining shares at ` 54 each (Brokerage 50 paise each
share). Find her gain or loss in the transaction.
Click : www.nodia.study/lema/xm163

Sol :
Chap 24 Financial Mathematics II Page 361

Click : www.nodia.study/lema/xm167 8. Bajaj Electric Pvt Ltd with a capital of ` 250000,

declares a semi-annual dividend of 5%. Find:
(i) the total amount of dividend declared in a year.
(ii) the amount of dividend received by Rohit holding
50 shares of common stock of par value ` 20 each.
Ans : (i) ` 25000 (ii) ` 100
E X ERCISE 24.2
9. What rate percent will a man get from his 200
common shares of par value ` 100 each, bought at `
1. What will be the investment in buying 525 shares of 20 premium, the rate of dividend being 8% ?
` 100 each at 12 premium ? Ans : 6 23 %
Ans : ` 58800
10. Shalvi want to purchase 750 shares, of par value ` 10
2. Deshmukh invested ` 10846 in buying the shares of each, at premium of ` 3 (Brokerage 1%).
a company at ` 17 each. The face value of each share (i) How much cash must she pay for her investment?
was ` 10 and company paid 15% dividend at the end (ii) If the dividend is 10% per annum, find the annual
of the year. Find the dividend earned by Deshmukh. dividend on these shares.
Ans : ` 957 (ii) Whatis the rate of return for her investment?
3. How many shares of market value ` 112.50 each can Ans : (i) ` 9847.5 (ii) ` 750 (iii) 7.61 %
be purchased for ` 113625, if the brokerage paid is
1% ?
Ans : 1000 24.5 debentures
4. Nitin buys ` 20 shares of a company which pays 18% 24.5.1 Meaning
dividend to him. The market price is such that he gets
24% on his money. At what price did he buy it? If a company needs funds for extension and development
Ans : ` 15 purpose without increasing its share capital, it can borrow
from the general public by issuing certificates for a fixed
5. Lakshita buys 200 shares, each of par value ` 10 of a period of time and at a fixed rate of interest. Such a loan
company which pays annual dividend of 15% at such certificate is called a debenture. Debentures are offered to
a price that he gets 12% on his investment. Find the the public for subscription in the same way as for issue
market value of a share. of equity shares. Debenture is issued under the common
Ans : ` 12.5 seal of the company acknowledging the receipt of money.
For example, if the company wants to borrow < 1 crore. It
6. Mateshwari invested ` 3333 in the shares of face value may issue 50000 debentures of value of 200 each.
` 100 each of a insurance company. At the end of Debentures refers to long-term loan capital.
the year, the company declared dividend at 15%. He Debenture holders are the creditors of the company.
got an income of ` 450. At what price was the share They are paid interest on their debentures at fixed rate.
quoted, the brokerage being 1%? Debentures can be issued either at par or at premium
Ans : ` 110 or at discount. The interest on a debenture is calculated
7. Balaji Power Pvt Ltd is power company listed in on its face value and the brokerage involved in the sale
BSE. The capital stock of the company is ` 4400000, or purchase of debentures is calculated on their market
which is divided into 4000 preferred shares, which value. Debentures are redeemable.
yield an annual dividend of 5%, and 40000 ordinary
24.5.2 Difference between Shares and Debentures
shares. Both the preferred and ordinary shares have
a par value of ` 100 each. If the net profit shown by
Basis of Shares Debentures
the company is ` 450000 out of which ` 300000 is
Difference
distributed as dividend, what dividend will Asha get
if she holds 150 preferred shares and 300 ordinary
shares.
Ans : ` 2850
Page 362 Financial Mathematics II Chap 24

1. Meaning Shares are the Debentures are issued by mortgaging an asset and debenture holders
company-owned the borrowed can recover their dues by selling that particular
capital. capital of the asset in case the company fails to repay the claim of
company. debenture holders.
3. Non-convertible Debentures : A non-convertible
2. Holder The person The person debenture is a debenture where there is no option for
who holds the who holds the its conversion into equity shares. Thus the debenture
ownership of the ownership of holders remain debenture holders till maturity.
shares is called the Debentures 4. Partly Convertible Debentures : The holders of
as Shareholders. is called as partly convertible debentures are given an option to
Debenture convert part of their debentures. After conversion
holders. they will enjoy the benefit of both debenture holders
3. Status of holder Owner Creditor as well as equity shareholders.
4. Mode or return Shareholders W h e r e a s , 5. Fully Convertible Debenture : Fully convertible
are given the d e b e n t u r e debentures are those debentures which are fully
dividends. holders are gien converted into specified number of equity shares after
interest. predetermined period at the option of the debenture
holders.
5. Payment of Dividends can Interest can
6. Redeemable Debentures : Redeemable debenture
return be paid to the be paid to
is a debenture which is redeemed/repaid on a
shareholders the debenture
predetermined date and at predetermined price.
out of profits h o l d e r s .
7. Irredeemable Debenture : Such debentures are
earned by the regardless of if
generally not redeemed during the lifetime of the
company. the company
company. So, it is also termed as perpetual debt.
has earned
Repayment of such debenture takes place at the time
profits.
of liquidation of the company.
6. Voting rights Shareholders D e b e n t u r e 8. Registered Debentures : Registered debentures
possess voting holders do not are those debentures where names, address, serial
rights. possess any number, etc., of the debenture holders are recorded
right for voting. in the register book of the company. Such debentures
7. Conversion Shares cannot H o w e v e r , cannot be easily transferred to another person.
be converted d e b e n t u r e s 9. Unregistered Debentures : Unregistered debentures
into Debentures. can easily be may be referred to those debentures which are not
converted into recorded in the company’s register book. Such a type
Shares. of debenture is also known as bearer debenture and
this can be easily transferred to any other person.
8. Trust Deed Trust deed is When the
not carried out debentures are 24.5.4 Features of Debentures
in the shares. circulated to the
public, a trust The important features of debentures are as follows :
deed has to be 1. Debenture holders are the creditors of the company
carried out. carrying a fixed rate of interest.
2. Debenture is redeemed after a fixed period of time.
3. Debentures may be either secured or unsecured.
24.5.3 Type of Debentures
4. Interest payable on a debenture is a charge against
There are many types of debentures. Some of them are as profit and hence it is a tax deductible expenditure.
follows: 5. Debenture holders do not enjoy any voting right.
1. Ordinary Debenture : Such debentures are issued 6. Interest on debenture is payable even if there is a
without mortgaging any asset, i.e. this is unsecured. loss.
It is very difficult to raise funds through ordinary
debenture. 24.5.5 Advantages of Debentures
2. Mortgage Debenture : This type of debenture is Following are some of the advantages of debentures:
Chap 24 Financial Mathematics II Page 363

1. Issue of debenture does not result in dilution of Click : www.nodia.study/lema/xm171

interest of equity shareholders as they do not have
right either to vote or take part in the management
of the company. EXAMPLE 24.72
2. Interest on debenture is a tax deductible expenditure
and thus it saves income tax. What amount of money will Lalita get on selling debentures
3. Cost of debenture is relatively lower than preference worth < 25000 at the rate of < 110 per debenture? The
shares and equity shares. face value of a debenture is < 100 and the brokerage is 2%.
4. Issue of debentures is advantageous during times of

Sol :
inflation.
5. Interest on debenture is payable even if there is a
loss, so debenture holders bear no risk. Click : www.nodia.study/lema/xm172

EXAMPLE 24.68 EXAMPLE 24.73

Compute the annual yield percent on 12% debentures of Nitin invested a certain amount in 18% debentures of the
face value of < 100 each and available at < 80 each. face value of < 100 each available at < 90 and earned an


Sol : annual income of < 18000. If the brokerage is 1%, find the
amount invested by him.


Sol :
Click : www.nodia.study/lema/xm168
Click : www.nodia.study/lema/xm173
EXAMPLE 24.69
Which is better investment : 15% debentures at 8%
premium or 14% debentures at 4% discount? EXAMPLE 24.74

Sol : Kokila invests < 29760 partly in 5% debenture at 216

and partly in 4% debenture at 224. His income from each
debenture is the same. How much does he invest in each
Click : www.nodia.study/lema/xm169 debenture?


Sol :

EXAMPLE 24.70
How much money Kailash will get by selling 15% debentures Click : www.nodia.study/lema/xm174
worth < 10000 at the rate of < 110 per debenture? The
face value of a debenture is < 100.
EXAMPLE 24.75


Sol :
Mahesh has 400 shares, of par value < 100 each, of a
company paying dividend at 6% per annum. He also has
Click : www.nodia.study/lema/xm170 100 debentures, of par value < 100 each, on which the
company pays an annual interest of 10%. Find the total
annual income of Mahesh from investment in the company.
EXAMPLE 24.71

Sol :
What amount of money will Shalvi get on selling 14%

Click : www.nodia.study/lema/xm175
debentures worth < 20, 000 at 10% discount? the face
value of a debenture is < 100 and the brokerage is 1.5%.


Sol :
Page 364 Financial Mathematics II Chap 24

EXAMPLE 24.76 EXAMPLE 24.81

Somchandra purchased 4% debenture stock at < 115 each Dileep invests < 12000 partly in 5% debentures at < 90
worth < 43700. When its market value was < 125 he sold it. and partly 6% debentures at < 120. If his income from
He invested the money so received in a new 3% debenture both the sources is < 640, how much does he invest is each
at < 95. What is the change in his annual income? debenture?


Sol :

Sol :

Click : www.nodia.study/lema/xm176 Click : www.nodia.study/lema/xm181

EXAMPLE 24.77 EXAMPLE 24.82

Find the annual interest percent on 17% debentures of the Laxman invested < 21600 partly in 12% debentures of face
face value < 100 each and available at < 85 each. value of < 100 each available at < 105 and partly in < 100


Sol : shares available at par. At the end of the year, he received
16% dividend on shares. If his income from debentures is
equal to that from shares, find the amounts invested in
Click : www.nodia.study/lema/xm177 debentures and shares.


Sol :

EXAMPLE 24.78
What income is derived by investing < 4400 in 15% Click : www.nodia.study/lema/xm182
debenture at 20% premium.


Sol :

Click : www.nodia.study/lema/xm178 E X ERCISE 24. 3

1. Find the percent income of buyer on 6% debentures
EXAMPLE 24.79 of face value < 100 available in the market for < 150.
Ans : 4 %
How much be invested in 8% debentures at 103 34 to obtain
an annual income of < 320. (Brokerage 14 % ) 2. A man invested a certain sum is 15% debentures of the


Sol : face value of < 100 each available at < 80 and earned
an annual income of < 3750. Find the amount invested
by him. (Brokerage 1%).
Click : www.nodia.study/lema/xm179 Ans : < 20200

3. Which is better investment; 15% debentures at 10%

discount or 18% debentures at 10% premium?
EXAMPLE 24.80 Ans : First Investment
Narendra has 4% debentures at < 96 which gives him an
annual income of < 360. He sells 13 of his debentures and 4. How much money will Shikha get by selling 20%
invests his funds in a debentures at < 120 increasing his debentures worth < 6000 at the rate of < 120 per
income by < 15. Find rate of new debenture. debenture? The face value of a debenture is < 100 and
the brokerage is 1.5%.


Sol : Ans : < 7092

5. Ritesh invests < 39200 in govt. loans partly 3%

Click : www.nodia.study/lema/xm180 debentures at < 96 and the rest in 4% debentures at
Chap 24 Financial Mathematics II Page 365

par. After paying income tax at 25% his total income

amount to < 1050. Find the amount invested in each
loan.
Ans : < 19200 and < 2000

6. Mohan has 500 shares of par value < 10 each of a

company 500 debentures of par value < 100 each. The
company pays a dividend of 8% on the shares and
pays an interest of 10% on its debentures. Find the
total annual income of Mohan and the rate of return
on his investment.
Ans : < 5400, 9 119 %

7. Romila invested a part of < 5300 in 13 13 % debentures of

face value of < 100 each available at < 110. The rest he
invested in < 100 shares available at par. At the end of
the year, he received 20% dividend on his investment
on shares. If his income from shares is equal to his
income from his investment in debentures, find the
amount invested in shares and debentures.
Ans : < 3300 and < 2000

8. Which is better investment; 6% debentures at < 92

(subject to an income tax 4 16 % ) or 5 12 % government
loan at < 99?
Ans : First

9. How much should a person invest in 5% debentures

at < 104 in order to secure an annual income of < 152
after paying an income tax of 5 paise per < ?
Ans : < 3328

10. Somdatt sold < 6000 debenture at < 80 and with the
proceeds, he bough 6% loan at < 120. His income now
increased by < 60. What was the original income and
what was his earlier rate of interest.
Ans : 3 %
Page 366 Unit 7 Case Study chapter 32

UNIT 7

Case Study Questions

EXAMPLE 32.1
Centuries ago, marwari families in the Raajsthan
established a fund to further welfare and education. From
this fund, only the interest revenue was allowed to be
spent, in order to keep the principal unattached.

Sanjay buys a old age home in Haridwar. He agrees to

pay the seller a lump sum of < 950, 000 in five years. Until
then, he will make monthly simple interest payments to
the seller at 15 % interest.
(i) Find the amount of each interest payment.
(ii) Sanjay sets up a sinking fund to save the < 950, 000
. Find the size of his semiannual payments if his
payments are due at the end of every six-month
period and his money earns interest 12% per annum
compounded quarterly. (Given (1.06) 10 = 1.7908 )
Jugal Kishore Agrawal is such a marwadi and he has

Sol :
establish a secondary school in his home town. For school
he has made a trust and contributed some fund. Assume
the fund has amounted to < 2 million and market interest Click : www.nodia.study/lema/zm173
rate is 6% annually.
(i) What would be the monthly income to trust?
(ii) What would be the perpetuity (or present value of EXAMPLE 32.3
the fund) endowed to the society? A home loan is a secured loan that is obtained to purchase
a property by offering it as collateral. Home loans offer


Sol :
high-value funding at economical interest rates and for long
tenors. They are repaid through EMIs. After repayment,
Click : www.nodia.study/lema/zm172 the property’s title is transferred back to the borrower.

EXAMPLE 32.2
A retirement home – sometimes called an old people’s
home or old age home, although old people’s home can
also refer to a nursing home – is a multi-residence housing
facility intended for the elderly. Typically, each person or
couple in the home has an apartment-style room or suite
of rooms
chapter 32 Unit 7 Case Study Page 367

investment scheme that you can open with any post office
branch. The scheme is a Government of India initiative.
It is a savings bond that encourages subscribers – mainly
small to mid-income investors – to invest while saving on
income tax.

Omprakash purchased a home for < 3, 500, 000 and made

a down payment of < 750, 000. He repays the balance in 25
years by monthly instalments at 9%. compound monthly.
Now answer the following : ( (1.0075) −300 = 0.106288 )
(i) What are monthly payments?
Mahesh invest < 50000 in a NSC fetches 6% interest per
(ii) What is the total interest payment?
annum compounded quarterly.


Sol : (Given (1.015) 4 = 1.061364 )
(i) What will be the interest after one year?
(ii) What is the effective rate of interest?
Click : www.nodia.study/lema/zm174

Sol :

EXAMPLE 32.4
A car loan (also known as an automobile loan, or auto Click : www.nodia.study/lema/zm176
loan) is a sum of money a consumer borrows in order to
purchase a car.
EXAMPLE 32.6
A fixed deposit, also known as an FD, is an investment
instrument offered by banks, as well as non-banking
financial companies (NBFC) to their customers to help
them save money. With an FD account, you can invest
a sizeable amount of money at a predetermined rate of
interest for a fixed period.

Vani takes a car loan of < 600, 000 from a bank at an

interest rate of 12% p.a. compounded monthly for 5
years. She wants to pay back the loan in equated monthly
installments. Find he EMI by using
(i) Flat rate method,
(ii) Reduced balance method. (Given (1.01) −60 = 0.55045 )


Sol :

A depositor is entitled to receive 8 % p.a. as interest

Click : www.nodia.study/lema/zm175 on the fixed deposit scheme made with a Canara Bank.
The bank credits the interest on fixed deposit account
quarterly. Laxman deposit < 60000 in this scheme for two
EXAMPLE 32.5 year. (Given (1.02) 4 = 1.082432 )
The National Savings Certificate (NSC) is a fixed income (i) What is the effective rate of interest?
Page 368 Unit 7 Case Study chapter 32

(ii) What will be the interest after one year? EXAMPLE 32.8
(iii) What will be the total amount interest after two Preferred stock is a type of stock that offers different
year? rights to shareholders than common stock. Preferred stock
holders receive regular dividends and are repaid first in the


Sol :
event of a bankruptcy or merger. Dividend is given first
on preferred share and then reaming divined is divided in

Click : www.nodia.study/lema/zm177 equate shares.

EXAMPLE 32.7
Screen printing is a printing technique where a mesh is
used to transfer ink (or dye) onto a substrate, except in
areas made impermeable to the ink by a blocking stencil.
A blade or squeegee is moved across the screen to fill
the open mesh apertures with ink, and a reverse stroke
then causes the screen to touch the substrate momentarily
along a line of contact. This causes the ink to wet the
substrate and be pulled out of the mesh apertures as the Praganya Patrika Pvt Ltd has a total capital of ` 1,000,000
screen springs back after the blade has passed. One colour divided into 2000 preferred share, of 8% dividend, with
is printed at a time, so several screens can be used to par value of ` 100 each and 8000 ordinary shares of par
produce a multi-coloured image or design. value of ` 100 each. Net profit shown by the company is
` 80,000 out of which ` 40,000 is distributed as dividend.
Determine the following :
(i) Shyam is having 100 preferred shares and 200 equity
shares of company. Find the total dividend received
by a Shyam.
(ii) Ram is having 200 preferred shares and 100 equity
shares of company. Find the total dividend received
by a Ram.


Sol :

Click : www.nodia.study/lema/zm179

EXAMPLE 32.9
Freshco India Pvt Ltd with 80000 shares, par value ` 100
Rajesh buys his silk screen machine for < 45, 000. He each, shows a profit of ` 440800. The directors announce
estimates that he can use this machine for six years or an annual dividend of 6 %.
100,000 presses, and that the machine will only be worth (i) Find the total annual dividend paid by the company.
< 3, 000 at the end of its life. He also estimates that he will (ii) What dividend will Vicky receive annually if he owns
make 1,000 clothing items in year one and 15000 clothing 250 shares.
items in year two.


Sol :
(i) Determine Rajesh’s annual depreciation costs for his
business under linear method of depreciation.
(ii) Prepare a depreciation schedule for the silk screen
machine. Click : www.nodia.study/lema/zm180


Sol :
EXAMPLE 32.10
Harbhajan is having 10000 equity shares (each of par
Click : www.nodia.study/lema/zm178 value ` 10) of a company A which pays a dividend of 20
chapter 32 Unit 7 Case Study Page 369

% He sell his shares at ` 30 per share and invests the Click : www.nodia.study/lema/zm182
sale proceeds in equity shares (each of par value ` 25) of
company B. Company B pays a dividend of 15% and the
market value of a share is ` 40. Answer the following :

******
(i) The number of shares of company B purchased by
Mohan.
(ii) The change in dividend income of Harbhajan.


Sol :

Click : www.nodia.study/lema/zm181

EXAMPLE 32.11
Preferred stock is a type of stock that offers different
rights to shareholders than common stock. Preferred stock
holders receive regular dividends and are repaid first in the
event of a bankruptcy or merger. Dividend is given first
on preferred share and then reaming divined is divided in
equate shares.

Veer Eductech Pvt Ltd is having capital stock of

`  8,800,000, which is divided into 8000 preferred shares,
which yield an annual dividend of 5%, and 80000 ordinary
shares. Both the preferred and ordinary shares have a par
value of ` 100 each. In 2020-2021, the company had a
total profit of ` 1,100,000 out of which ` 350,000 were
kept in reserve and ` 150,000 in depreciation. Remaining
profit is declared as dividend for this financial year.
(i) What dividend will Sheela get if she holds 150
preferred shares and 300 ordinary shares.
(ii) What dividend will Madhuri get if she holds 200
preferred shares and 250 ordinary shares.


Sol :
Page 370 Linear Programming Chap 25

CHAPTER 25

Linear Programming

25.1 Introduction a1 x + b1 y "=, >, $, <, # , c1 _bb

bb
Imagine the situation of a businessman who is constrained a2 x + b2 y "=, >, $, <, # , c2 b`b Constraints
by limited resources and manpower, and poor market bb
demand. He will have to chalk out an action plan to a3 x + b3 y "=, >, $, <, # , c3 bb
a
maximise his profits subject to the given constraints (i.e., x $ 0, y $ 0 , Non-negativity restrictions
restrictions). Graphical Method of solving system of linear
Next, imagine the situation of a person who inequalities method plays an important role in the study
transports a product from factories situated at different of Linear Programming Problems. Before proceeding
locations to various markets. He will also have to chalk further, let us study this graphical method.
out an action plan to minimise the transportation cost
subject to the given constraints.
Such type of problems can easily be solved with the 25.2 Graphical solution of system of
inequalities in two variables
help of the method known as ‘Linear Programming’. The
terms Linear means that all the mathematical relations A linear inequation in two variables is an expression of
used in the problems are linear and the term programming the form.
refers to the method of determining a particular action ax + by # c `or < c j
plan.
ax + by $ c ^or > c h
Linear programming is a method of finding an where, a, b, c are real numbers and at least one of
optimal value (i.e. maximum or minimum value) of a linear a and b is non-zero.
function of several variables subject to the conditions Two or more linear inequations, taken together,
that variables are non-negative and satisfy a set of linear form a system of linear inequations. Any ordered pair ^x, y h
equations or inequations. satisfying all the inequations of a system of inequations is
1. The linear function, which has to be maximised or called a solution of given system. The set of all solutions
minimised, is called objective function. of a system of inequations is called the solution set of the
2. The process of maximisation or minimisation is system.
called optimisation. To determine the solution of a system of linear
3. The variables involved in linear programming are inequations graphically, we graph each of the inequations
called decision variables. of the system on the same coordinate plane.
4. The restrictions on the decision variables to be non-
Method of Graph an Inequation
negative are called non-negativity restrictions.
6. The restrictions on the decision variables to satisfy Consider the inequation ax + by # c (or < c ).
linear equations or inequations are called constraints. Step I
In this chapter, we shall restrict our study to Linear Replace the inequality # ^or <h by equality to get
Programming Problems in two variables and up to three ax + by = c and first plot the graph of the equation
non-trivial constraints. Also, we shall use the abbreviation ax + by = c . The graph is a straight line.
L.P.P. for the term ‘Linear Programming Problem’. To draw the graph of the line ax + by = c . Put
y = 0 and find x = ac to get the point ^ a , 0h on x -axis.
c
A general L.P.P. in two variables and up to three
constraints is of the form Put x = 0 and find y = bc to get the point `0, bc j on y
Maximise (or Minimise) Z = ax + by , Objective function -axis. Join these two points to get the graph of the line
subject to the constraints ax + by = c . If the inequality is # , draw the graph of the
line as a thick line to indicate that the points on it are to
Chap 25 Linear Programming Page 371

be included. Note 3
If the inequality is < , draw the graph of the line y = a ^a > 0h is the graph of a straight line parallel to
as a dotted line to indicate that the points on it are to be x -axis and at a distance a above it. y =− a ^a > 0h
excluded. Similar remarks hold if the inequality is $ or >. represents a line parallel to x -axis and at a distance a
Step II below it.
We know that every line in the XOY plane divides it
into two half-planes (or two portions). We state below
the method to find the portion in which the inequation
is satisfied.
1. Now select any arbitrary point in the XOY -plane.
For sake of convenience, we should select origin (0,0)
provided it does not lie on the line ax + by = c i.e.,
if c ! 0 i.e.,line does not pass through the origin.
Remarks. If the line passes through the origin, we
may select the point (1,0) or any other point of our
convenience other than origin.
Note 4
2. Substitute this selected point (0,0) or (1,0) (or some
x $ 0 and y $ 0 (Region is in first quadrant).
other point selected) in the given inequation.
3. If the given inequation is satisfied (i.e. is true), then
shade the portion of the plane which contains the EXAMPLE 25.1
selected point. Solve graphically the following system of inequalities:
4. If the given inequation is not satisfied, then shade x $ 3 and y $ 2 .
the portion of the plane which does not contain the


Sol :
selected point this shaded portion (half-plane) is the
graph of the inequation.

Click : www.nodia.study/lema/ym 101

Step III
Shade the relevant portions of the plane for each
inequation.
The intersection (common points) of all the shaded EXAMPLE 25.2
regions corresponding to the various inequations of the Solve graphically the following system of inequations.
system represents the solution set of the system of linear x + 2y $ 20 , 3x + y # 15
inequations.
Note 1.

Sol :
Equation of x -axis is y = 0 and equation of y -axis is
x = 0.
Note 2. Click : www.nodia.study/lema/ym 102
x = a ^a > 0h is the graph of straight line parallel to y -axis
and at a distance a to the right of y -axis. x =− a ^a > 0h
EXAMPLE 25.3
represents a line parallel to y -axis and at a distance a to
Solve the following system of inequalities graphically:
the left of it.
3x + 2y $ 24 , 3x + y # 15 , x $ 4 .


Sol :

Click : www.nodia.study/lema/ym 103

EXAMPLE 25.4
Solve the following system of linear inequalities graphically.
2x + y $ 4 , x + y # 3 , 2x - 3y # 6


Sol :
Page 372 Linear Programming Chap 25

Click : www.nodia.study/lema/ym 104

EXAMPLE 25.5
Solve graphically.
x + y $ 5 , 2x + 3 $ 3y , 0 # x # 4 , 0 # y # 2 .


Sol :

Click : www.nodia.study/lema/ym 105

E X ERCISE 25.1

1. Solve graphically the following system of inequalities:

(a) 3x + 2y > 5 and y > 2 .
(b) 3x + 2y < 6 and x + 2y > 4 .
(c) 2x + 3y < 12 , x $ 2 and y $ 1 .
(d) x − 2y + 11 > 0 , 2x − 3y + 18 $ 0 and y $ 0 .
(e) x + 2y # 8 , x - y # 2 , x > 0 and y > 0 .


Sol :
In answers a to e, the solution set (region) consists of all
points in the shaded part of the coordinate plane in their
respective diagrams.
Chap 25 Linear Programming Page 373

25.3 Linear Programming Problem (LPP) Decision Variables

The word linear is the relation between two or more These are physical or economic quantities like products,
variables, which are directly proportional. Programming services, projects etc., whose numerical values gives
is the process of finding a particular programme or plan of the solution of the LPP. These variables are under the
action. Linear Programming is an important optimization control of the decision-maker and could have an impact
technique developed in the field of operations research. It on the solution to the problem under consideration. The
is a technique for finding an optimum value of independent relationships between these variables should be linear.
activities in view of available resources. This is a versatile Linear Function
technique for assigning a fixed amount of resources among
A function in which the power of all the variables is one.
competing factors, in such a way that some objective is
For example, f (x) = ax + by + cz , where a , b , c are
optimized and other defined conditions are also satisfied.
constants and x , y and z are variables with power 1.
The objective may be profit maximization or cost
minimization. Linear Combination
The mathematical modal of linear programming was Let c1 , c2 , c3 ... can be constants x1 , x2 , x3 , ... xn be the
developed during the II world war to plan expenditures and variables then sum of their multiplication is called linear
returns in order to reduce costs to the army and increase combination i.e.,
losses to the enemy. It was kept secret upto 1947, after the Linear Combination = c1 x1 + c2 x2 + ...cn xn .
war many industries found its use in their daily planning. Objective Function:
The founder of Linear programming problem is George B. It is a linear function of the decision variables expressing
Dantzig, who have published the simplex method for its the objective of the problem. The objective functions may
solution in 1947, while John Von Neumann developed the be of maximization or of minimization.
theory of duality in the same year. The original example
Subject to Constraints/Restrictions:
of Dantzig is of finding the best assignment of 70 people to
70 jobs exemplifies the usefulness of linear programming. These are linear equations arises from practical limitations
Every organization faces the problem of allocating on the use of resources as labour, machine, raw material,
limited resources to different activities. Such problems arise space, money etc. For example, mathematical forms of the
when there are alternative ways of performing a number constraints/restrictions are: f (x) (#, =$) b , where f (x) be
of activities. For example, consider a manufacturing firm, the function and b is constant.
manufacture a variety of products. Each of the products Solution of LPP:
has a certain margin of profit per unit. These products use The value of the decision variables (x1, x2, x3, ....., xn) is
a common pool of resources whose availability is limited. called solution of LPP if it satisfies subject to restrictions.
Now the problem is to carefully allocate these resources to
different types of finished products in such a way so that Basic Solution:
the total return may be maximum. In such situation, the Suppose we have n variables (x1, x2, x3, ..., xm, xm + 1, ...xn)
decision of management may be based on past experience Setting m variables (n > m) variables provided the
and intuition, but the made decision is subjective rather determinant of the coefficients of these (n - m) variables
than objective. is non-zero, is called basic solution. Such (n - m) variables
Linear programming technique has been successfully is called basic variable and the remaining variables which
applied to a variety of problems of management, such as are set of zero is called non-basic variable.
production, advertising, diet, transportation, refinery Feasible Solution:
operation, investment analysis, etc. Over the years, linear
A non-negative solution which satisfies all the constraints
programming has been found useful not only in business
and non-negativity conditions is known as a feasible
and industry but also in non-profit organizations such as
solution. The region consists all feasible solutions is said
government, hospitals, libraries, education, etc. Actually,
to be feasible region.
linear programming improves the quality of decisions by
amplifying the analytic abilities of a decision maker. The Basic Feasible Solution:
result of the mathematical models cannot substitute for A basic solution of a LPP is called basic feasible solution
the decision maker’s experience and intuition, but they if it satisfies the non-negativity conditions. There are two
provide the comprehensive data needed to apply his types of basic feasible solutions:
knowledge effectively. 1. Degenerate: A basic feasible solution is degenerate if
one or more basic variables are zero.
Page 374 Linear Programming Chap 25

2. Non-Degenerate: All the (n - m) basic variables are Problem

positive and remaining m variables will be zero is The objective function and the constraints should be linear
called non-degenerate. function. LPP must satisfy the following basic properties:
Optimal Basic Feasible Solution: 1. Proportionality : The contribution of each decision
A basic feasible solution of a linear programming problem variable in the objective function and the constraints
is called optimum basic feasible solution if it optimizes to be directly proportion to the value of variables.
i.e., maximzes or minimizes the objective function. 2. Additivity : The total contribution of all variables
is in objective function and in constraints to be the
direct sum of the individual contributions of each
25.4 General Linear Programming Problem variables.
Let x1 , x2 , x3 , ......, xn be n variables and c1 , c2 , c3 , ....., 3. Certainty : All the objective function and constraints
cn be n constants then LPP: coefficients of the LPP model are deterministic.
Optimum (min./max.) 4. Finiteness : Variables and constraints should be
Z = c1 x1 + c2 x2 + ..., + cn xn finite in numbers.
Subject to linear constraints/restrictions: 5. Optimality : LPP involves only one objective
a11 x1 + a12 x2 + a13 x3 + ... + a1n xn #, =$ b1 function of optimality either profit maximization or
a21 x1 + a22 x2 + a23 x3 + ... + a2n xn #, =$ b2 cost minimization.
a31 x1 + a32 x2 + a33 x3 + ... + a3n xn #, =$ b3
... ... ... ... ... ... 25.6 Some More Definitions
... ... ... ... ... ...
1. Corner Point : A corner point of a feasible region is a
am x1 + am x2 + am x3 + ... + amn xn #, =$ bm
1 2 3
point of the feasible region which is the intersection
Non-negativity condition x1 , x2 , x3 , ......, xn $ 0 .
of two boundary lines formed by the linear equations
The above problem can be expressed as:
due to linear constraints.
Optimum (max.or min.)
n A corner point is also called a VERTEX.
z = /c x j j (Objective function) 2. Bounded Feasible Region : A feasible regions is said
j=1
to be bounded if it can be enclosed within a circle.
Subject to constraints:
n 3. Unbounded Feasible Region : A feasible region is
/ a x (#, =$) b , i = 1, 2, ....., m
ij i i said to be unbounded if it is not bounded. In fact
j=1
unbounded means that the feasible region extends
and x j $ 0 , j = 1, 2....., n (non negativity conditions)
indefinitely i.e., extends to infinity.
where aij is the coefficients of matrix and bi is the total
availability of the i th resource.
Unique solutions for simultaneous equations in n 25.7 Extreme Point Theorem
variables (at least one of them is non zero) can be obtained Let R be the feasible region for a linear programming
if there is exactly n relations. problem and let Z = ax + by be the objective function.
If number of relation is greater than or less than If any point of the feasible region (i.e., a feasible
n then a unique solution does not exist, but a number of solution) makes the (linear) objective function Z , assume
trial solution can be obtained. an optimal value (i.e., maximum or minimum value), then
If number of relation is not equal to number of this point will be a point out of the corner points of the
variables (m ! n) and many of the relations are in the feasible region. In brief, Extreme Point Theorem states
form of inequalities is called subject to constraints which that the maximum or minimum value of an objective
is used to maximize or minimize a linear function of the function occurs at some corner point.
variables. Remark 1. If R is bounded, then the objective
The value of Z is measure of performance variable, function Z has both a maximum and minimum value on
constants (costs) c1 , c2, c3 , ....., cn are parameters. R and each of these occurs at a corner point of R. (By
Optimum value of the given objective function is obtained Extreme Point Theorem).
by using Graphical or Simplex method. Remark 2. If R is unbounded, then a maximum or
minimum value of the objective function may not exist.
However, if it exists, it must occur at a corner point of R
25.5 Properties of Linear Programming (By Extreme Point Theorem).
Chap 25 Linear Programming Page 375

25.8 Graphical Method of Solution of A

Sol :

L.P.P. (By Corner Point Method)
Step I
Graph each linear constraint (the number of constraints Click : www.nodia.study/lema/ym 107
should be at least three including (or excluding) non-
negativity restrictions by the method explained in
EXAMPLE 25.8
Art. 25.1 (“Graphical solution of a system of linear in-
Maximise Z = 5x + 3y subject to the constraints:
equations”) and shade the relevant portion of the half
3x + 5y # 15 ; 5x + 2y # 10 , x $ 0 , y $ 0 .
plane for it in the first quadrant only (because of non-
negativity restrictions).

Sol :
The intersection (common points) of the shaded
regions corresponding to the various in equations
(constraints) is the feasible region. Click : www.nodia.study/lema/ym 108
Step II
Find the co-ordinates of each vertex of convex polygon
either by inspection of the graph or by solving the EXAMPLE 25.9
equations of two intersecting boundary lines for x and y . Minimize Z = 3x + 5y such that x + 3y $ 3 , x + y $ 2 ,
Step III x , y $ 0.
Find the value of the objective function at each corner

Sol :
point or vertex point of the feasible region. Let M and m
be the largest and smallest values of Z at these corner
points. Click : www.nodia.study/lema/ym 109
Step IV
If the feasible region is bounded, then M is called maximum
value of Z and m is called minimum value of Z . EXAMPLE 25.10
Step V Maximize Z = 3x + 2y subject to x + 2y # 0 , 3x + y # 15,
If feasible region is unbounded, then M is maximum value x , y $ 0.
of Z if open half plane determined by Z (= ax + by) > M

Sol :
has no point in common with the feasible region otherwise
Z has no maximum value.
Similarly, m is minimum value of Z if open half Click : www.nodia.study/lema/ym 110
plane determined by Z (= ax + by) < m has no point in
common with the feasible region, otherwise Z has no
minimum value. EXAMPLE 25.11
Minimise Z = x + 2y subject to 2x + y $ 3 , x + 2y $ 6 ,
x , y $ 0 . Show that the minimum of Z occurs at more
EXAMPLE 25.6 than two points.
Maximize Z = 3x + 4y , subject to the constraints;


Sol :
x+y # 4, x $ 0, y $ 0.


Sol :
Click : www.nodia.study/lema/ym 111
Click : www.nodia.study/lema/ym 106
EXAMPLE 25.12
Maximize Z =− x + 2y ,
EXAMPLE 25.7 Subject to the constraints:
Minimize Z =− 3x + 4y subject to the constraints
x $ 3 , x + y $ 5 , x + 2y $ 6 , y $ 0
x + 2y # 8 ,


Sol :
3x + 2y # 12 ,
x $ 0, y $ 0
Page 376 Linear Programming Chap 25

Click : www.nodia.study/lema/ym 112 EXAMPLE 25.17

Maximise Z = 8x + 9y subject to the constraints given
below
EXAMPLE 25.13 2x + 3y # 6
Maximize Z = x+y, 3x - 2y # 6
subject to x y # - 1 , x + y # 0 , x , y $ 0 .
-
y # 1


Sol : x , y $ 0 .


Sol :
Click : www.nodia.study/lema/ym 113
Click : www.nodia.study/lema/ym 117
EXAMPLE 25.14
Solve the following LPP graphically :
Minimise Z = 5x + 10y
Subject to the constraints
x + 2y # 120 E X ERCISE 25. 2
x + y $ 60 ,
x - 2y $ 0 and x , y $ 0 1. Maximize : z = 7x + 10y subject to 3x + 2y # 18 ,


Sol : x + 2y # 10 , x $ 0 , y $ 0 .
Ans : z is maximum, when x = 4 , y = 3 .

Click : www.nodia.study/lema/ym 114

2. Maximize: z = 11x + 8y subject to x # 4 , y # 6 ,
x + y # 6, x $ 0 , y $ 0 .
Ans : z is maximum, when x = 4 , y = 2 .
EXAMPLE 25.15 3. Maximize : z = 4x + 6y subject to 3x + 2y # 12 ,
Find graphically, the maximum value of Z = 2x + 5y , x + y $ 4, x, y $ 0 .
subject to constraints given below Ans : z is maximum, when x = 0 , y = 6 .
2x + 4y # 8 ; 3x + y # 6
4. Maximize : z = 7x + 11y subject to 3x + 5y # 26 ,
x + y # 4 ; x $ 0 , y $ 0 .
5x + 3y # 30 , x $ 0, y $ 0 .


Sol :
Ans : z is maximum, when x = 9 and y = 5 .
2 2
5. Maximize : z = 10x + 25y subject to 0 # x # 3 ,
Click : www.nodia.study/lema/ym 115 0 # y # 3, x + y # 5 also find maximum value of z .
Ans : z is maximum, when x = 2 and y = 3 .

EXAMPLE 25.16 6. Maximize : z = 3x + 5y subject to x + 4y # 24

Maximise and minimise Z = x + 2y subject to the , 3x + y # 21, x + y # 9 , x $ 0 , y $ 0 also find
constraints maximum value of z .
x + 2y $ 100 Ans : z is maximum, when x = 4 and y = 5 .
2x - y # 0 7. Minimize : z = 7x + y subject to 5x + y $ 5 ,
2x + y # 200 x + y $ 3, x $ 0, y $ 0.
x , y $ 0 Ans : z is maximum, when x = 0 and y = 5 .
Solve the above LPP graphically. 8. Minimize : z = 8x + 10y subject to 2x + y $ 7 ,


Sol : 2x + 3y $ 15, y $ 2 , x $ 0 , y $ 0 .
Ans : z is maximum, when x = 3 i.e. 1.5 and
2
y = 4.
Click : www.nodia.study/lema/ym 116
Chap 25 Linear Programming Page 377

9. Minimize : z = 6x + 21y subject to x + 2y $ 3 , EXAMPLE 25.18

x + 4y $ 4, 3x + y $ 3 , x $ 0 , y $ 0 . A small firm manufactures necklaces and bracelets. The
Ans : z is maximum, when x = 2 and y = 1 . total number of necklaces and bracelets that it can handle
2 per day is at most 24. It takes one hour to make a bracelet
and half an hour to make a necklace. The maximum
25.9 Mathematical Formulation of LPP number of hours available per day is 16. If the profit on
a necklace is Rs. 100 and that on a bracelet is Rs. 300.
In this section, we shall discuss the mathematical Formulate an LPP for finding how many of each should be
formulation and solution of the different types of L.P.P. produced daily to maximise the profit? It is being given
The formulation process includes the transformation of that at least one of each must be produced.
verbal description of decision problem into mathematical
form.

Sol :
A few important linear programming problems are listed
below.
1. Manufacturing Problems : In these problems, we Click : www.nodia.study/lema/ym 118
determine the number of units of different products
which should be produced and sold by a firm when
EXAMPLE 25.19
each product requires a fixed manpower, machine
Two tailors Ram and Shyam. earn Rs. 300 and Rs. 400
hours, labour hour pen unit of product, warehouse
per day respectively. Ram can stitch 6 shirts and 4 pairs
space per unit of output. etc., to make maximum
of trousers while Shyam can stitch 10 shirts and 4 pairs
profit.
or trousers per day. To find how many days should each
2. Diet Problems : In these problems, we determine the
of them work and if it is desired to produce at least 60
amount of different kinds of constituents/nutrients
shirts and 32 pairs of trousers at a minimum labour cost,
which should be included in a diet so as to minimise
formulate this as an LPP.
the cost of the desired diet such that it contains
a certain minimum amount of each constituent/

Sol :
nutrient.
3. Transportation Problems : In these problems, we
determine a transportation schedule so as to find Click : www.nodia.study/lema/ym 119
the cheapest way of transporting a product from
factories situated at different locations to different
EXAMPLE 25.20
markets.
A manufacturer has employed 5 skilled men and 10 semi-
We have the following steps for the mathematical
skilled men and makes two models A and B of an article.
formulation and solution of L.P.P. :
The making of one item of model A requires 2 hours work
Step I. by a skilled man and 2 hours by a semi-skilled man. One
Identify the variables in the given L.P.P. and denote item of model B requires 1 hour by a skilled man and 3
them by x and y . hours by semi-skilled man. No man is expected to work
Step II. more than 8 hours per day. The manufacturer profit on
Translate all the given constraints in the form of linear an item of model A is Rs. 15 and on an items of model B
in equations. is Rs. 10. How many of items of models should be made
Step III. per day in order to maximize daily profit? Formulate the
Formulate the objective function in terms of x and y above LPP and solve it graphically and find the maximum
and decide (examine) whether it is to be maximised or profit.
is to be minimised.

Sol :

The following illustrative examples will explain

the mathematical formulation of linear programming Click : www.nodia.study/lema/ym 120
problems in various different situations.

EXAMPLE 25.21
A company produces two types of goods, A and B , that
Page 378 Linear Programming Chap 25

require gold and silver. Each unit of type A requires 3 g Click : www.nodia.study/lema/ym 123
of silver and 1 g of gold while that of type B requires 1 g
silver and 2 g of gold. The company can use at the most
9 g of silver and 8 g of gold. If each unit of type A brings EXAMPLE 25.24
a profit of Rs. 40 and that of type B Rs. 50, find the A retired person wants to invest an amount of Rs. 50000.
number should of each type that the number of units of His broker recommends investing in two types of bonds
each type that the company should produce to maximize A and B yielding 10% and 9% return respectively on
profit. Formulate the above LPP and solve it graphically the invest at least Rs. 20000 in bond A and at least Rs.
and also find the maximum profit. 10000 in bond B . He also wants to invest at least as much
in bond A as in bond B . Solve this linear programming


Sol :
problem graphically to maximise his returns.


Sol :
Click : www.nodia.study/lema/ym 121
Click : www.nodia.study/lema/ym 124
EXAMPLE 25.22
A factory manufactures two types of screws A and B ,
each type requiring the use of two machines, an automatic EXAMPLE 25.25
and a hand-operated. It takes 4 min on the automatic and There are two types of fertilisers grade A and grade B.
6 min on the hand-operated machines to manufacture a Grade A consists of 12% nitrogen and 5% phosphoric acid
packet of screw A while it takes 6 min on the automatic whereas Q consists of 4% nitrogen and 5% phosphoric
and 3 min on the hand-operated machine to manufacture acid. After testing the soil conditions, farmer finds that he
a packet of screw B . Each machine is available for atmost needs at least 12 kg of nitrogen and 12 kg of phosphoric
4 hours on any day. The manufacturer can sell a packet acid for his crops. If grade A costs Rs. 10 per kg and
of screw A at a profit of 70 paise and screw B at a profit grade B costs Rs. 8 per kg, then graphically determine
of Rs. 1. how much of each type of fertiliser should be used so that
Assuming that he can sell all the screws he manufactures, the nutrient requirements are met at a minimum cost?
how many packets of each type should the factory

Sol :
owner produce in a day in order to maximise his profit?
Formulate the above LPP and solve it graphically and
find the maximum profit.
Click : www.nodia.study/lema/ym 125


Sol :

EXAMPLE 25.26
Click : www.nodia.study/lema/ym 122 In order to supplement daily diet, a person wishes to take
X and Y tablets. The contents (in milligrams per tablet)
of iron, calcium and vitamins in X and Y are given as
EXAMPLE 25.23 below
A manufacturer produces two products A and B . Both
the products are processed on two different machines. The Tablets Iron Calcium Vitamin
available capacity of first machine is 12 hour and that of X 6 3 2
second machine is 9 hours per day. Each unit of product Y 2 3 4
A requires 3 hours on both machines and each unit of
The person needs a supplements at least 18 milligrams
product B requires 2 hours on first machine and 1 hour on
of iron, 21 milligrams of calcium and 16 milligrams of
second machine. Each unit of product A is sold at profit
vitamins. The price of each tablet of X and Y is Rs. 2 and
of Rs. 7 and B at a profit of Rs. 4. Find the production
Rs. 1, respectively. How many tablets of each type should
level per day for maximum profit graphically.
the person take in order to satisfy the above requirement


Sol : at the minimum cost? Make an LPP and solve graphically.


Sol :
Chap 25 Linear Programming Page 379

Click : www.nodia.study/lema/ym 126 EXAMPLE 25.30

A dealer in rural area wishes to purchase a number of
sewing machines. He has only Rs. 5760 to invest and
EXAMPLE 25.27 has space for atmost 20 items for storage. An electronic
A manufacturer produces nuts and bolts. It take 2 hours operated sewing machine cost Rs 360 and a manually
work on machine A and 3 hours on machine B to produce operated machine cost Rs. 240. He can sell an electronic
a package of nuts. It takes 3 hours on machine A and 2 sewing machine at a profit of Rs. 22 and a manually
hours on machine B to produce a produce a package of operated sewing machine at a profit of Rs. 18. Assuming
bolts. He earns a profit of Rs. 24 per package on nuts and that he can sell all the items that he can buy, how should
Rs. 18 per package on bolts. How many package of each he invest his money in order to maximise his profit? Make
should be produced each day so as to maximise his profit, it as an LPP and solve it graphically.
if he operates his machines for at most 10 hours a day?

Sol :
Make an LPP and solve it graphically.


Sol :
Click : www.nodia.study/lema/ym 130
Click : www.nodia.study/lema/ym 127 EXAMPLE 25.31
A manufacturing company makes two types of teaching
EXAMPLE 25.28 aids A and B of Mathematics for class XII. Each type of
A company manufactures three kinds of calculators : A, A requires 9 labour hours of fabricating and 1 labour hour
B and C in its two factories I and II. The company has for finishing. Each type of B requires 12 labour hours for
got an order for manufacturing at least 6400 calculators fabricating and 3 labour hours for finishing. For fabricating
of kind A, 4000 of kind B and 4800 of kind C . The daily and finishing, the maximum labour hours available per
output of factory I is of 50 calculators of kind A, 50 week are 180 and 30, respectively. The company makes a
calculators of kind B and 30 calculators of kind C . The profit of Rs. 80 on each piece of type A and Rs. 120 on
daily output of factory II is of 40 calculators of kind A, each piece of type B . How many pieces of type A and type
20 of kind B and 40 of kind C . The cost per day to run B should be manufactured per week to get a maximum
factory I is Rs. 12000 and of factory II is Rs. 15000. How profit? Make it as an LPP and solve graphically. What is
many days do the two factories have to be in operation to the maximum profit per week?
produce the order with the minimum cost? Formulate this

Sol :
problem as an LPP and solve it graphically.


Sol :
Click : www.nodia.study/lema/ym 131
Click : www.nodia.study/lema/ym 128 EXAMPLE 25.32
A cottage industry manufactures pedestal lamps and
EXAMPLE 25.29 wooden shades, each requiring the use of a grinding/
One kind of cake requires 200g of flour and 25g of fat, cutting machine and a sprayer. It takes 2 hours on the
another kind of cake requires 100 g of flour and 50 g of grinding/cutting machine and 3 hour on the sprayer to
fat. Find the maximum number of cakes which can be manufacture a pedestal lamp. It takes 1 hour on the
made from 5 kg flour and 1 kg of fat, assuming that there grinding/cutting machine and 2 hours on the sprayer to
is no shortage of the other ingredients used in making the manufacturer a shade. On any day, the sprayer is available
cakes. Make it as an LPP and solve it graphically. for at the most 20 hours and the grinding/cutting machine
for at most 12 hours. The profit from the sale of a lamp


Sol :
is Rs. 25 and that from a shade is Rs. 15. Assuming that
the manufacturer can sell all the lamps and shades that
Click : www.nodia.study/lema/ym 129 he produces, how should he schedule his daily production
in order to maximise his profit? Formulate an LPP and
solve it graphically.
Page 380 Linear Programming Chap 25

Sol : EXAMPLE 25.36

A small firm manufactures gold rings and chains. The
total number of rings and chains manufactured per day is
Click : www.nodia.study/lema/ym 132 atmost 24. It takes 1 hour to make a ring and 30 min to
make a chain. The maximum number of hours available
per day is 16. If the profit on a ring is Rs. 300 and that
EXAMPLE 25.33 on a chain is Rs. 190, then find the number of rings and
A decorative item dealer deals in two items A and B . He chains that should be manufactured per day so as to earn
has Rs. 15000 to invest and a space to store at the most the maximum profit. Make it as an LPP and solve it
80 pieces. Item A costs him Rs. 300 and item B costs graphically.
him Rs. 150. He can sell items A and B at respective,


Sol :
profit of Rs. 50 and Rs. 28. Assuming he can sell all he
buys, formulate the linear programming problem in order
to maximise his profit and solve it graphically.
Click : www.nodia.study/lema/ym 136


Sol :

EXAMPLE 25.37
Click : www.nodia.study/lema/ym 133 A library has to accommodate two different types of books
on a shelf. The books are 6 cm and 4 cm thick and weight
1 kg and 1 12 kg each, respectively. The shelf is 96 cm long
EXAMPLE 25.34 and atmost can support a weight of 21 kg. How should
A dietician wishes to mix two types of foods in such a the shelf be filled with the books of two types in order to
way that the vitamin contents of mixture contains atleast include the greatest number of books? Make it as an LPP
8 units of vitamin A and 10 units of vitamin C . Food I and solve it graphically.
contains 2 units per kg of vitamin A and 1 unit per kg of


Sol :
vitamin C , while food II contains 1 unit per kg of vitamin
A an 2 units per kg of vitamin C . It costs Rs. 5 per kg to
purchase food I and Rs. 7 per kg to purchase food II. Find
the minimum cost of such a mixture.
Click : www.nodia.study/lema/ym 137
Formulate above as an LPP and solve it graphically.


Sol : EXAMPLE 25.38
Two godowns A and B have grain capacity of 100
quintals and 50 quintals respectively. They supply to 3
Click : www.nodia.study/lema/ym 134 ration shops D , E and F whose requirements are 60, 50
and 40 quintals, respectively. The cost of transportation
per quintal from the godowns to the shops are given in the
EXAMPLE 25.35 following table:
A merchant plans to sell two types of personal computers,
a desktop model and a portable model that will cost Rs. Transportation Cost per Quintal (in `)
25000 and Rs. 40000, respectively. He estimates that Form A B
the total monthly demand of computers will not exceed To
250 units. Determine the number of units of each type
D 6 4
of computers which the merchant should stock to get
maximum profit, if he does not want to invest more than E 3 2
Rs. 70 lakh and his profit on the desktop model is Rs. F 2.50 3
4500 and on the portable model is Rs. 5000. Make an LPP How should the supplies be transported in order that the
and solve it graphically. transportation cost is minimum? What is the minimum


Sol : cost?


Sol :

Click : www.nodia.study/lema/ym 135

Chap 25 Linear Programming Page 381

Click : www.nodia.study/lema/ym 138

Sol :

EXAMPLE 25.39 Click : www.nodia.study/lema/ym 140

An oil company has two depots A and B with capacities of
7000 L and 4000 L respectively. The company is to supply
oil to three petrol pumps D , E and F whose requirements 25.10 ISO-PROFIT/ ISO-COST METHOD:
are 4500 L, 3000 L and 3500 L respectively. The distances Iso-Profit method is another way to find the optimal
(in km) between the depots and the petrol pumps is given solution by using the slope of the objective function line
in the following table: or equation. An iso-profit (or cost) line is a collection
of points which designate solution with same value of
Distance in (km) objective function. By assigning various values to Z, we
Form A B get different Profit (cost) lines. Graphically, many such
To lines can be plotted parallel to each other .The steps of
D 7 3 iso-profit (cost) function method are as follows.
1. Formulate the given LPP in mathematical form
E 6 4
2. Identify the feasible region and extreme (corner)
F 3 2 points of the feasible region .(As discussed in Corner-
Assuming that the transportation cost of 10 litres of oil is Point method)
` 1 per km, how should the delivery be scheduled in order 3. Give some convenient values to Z and draw the line
that the transportation cost is minimum? What is the so obtained in xy- plane.
minimum cost? 4. If the objective function is to be maximized, then
draw lines parallel to the line in step 3.


Sol :
5. Obtain a line which is farthest from the origin and
has at least one point common to the feasible region.

Click : www.nodia.study/lema/ym 139 6. If the objective function is to be minimized, then

draw lines parallel to the line in step 3 and obtain
a line which is nearest to the origin and has at least
EXAMPLE 25.40 one point common to the feasible region.
A medical company has factories at two places P1 and P2 7. Find the co-ordinate of the common point obtained in
. From these places, supply is made to each of its three step 4. The point so obtained determine the optimal
agencies situated at A, B and C using CNG vehicles. solution and the value of the objective function at
The monthly requirements of agencies are respectively these points give the optimal solution.
40, 40 and 50 packets of medicines, while the production
capacity of P1 and P2 are 60 and 70 packets respectively. EXAMPLE 25.41
The transportation cost per packet from the factories to Solve the following linear programming problem
the agencies are given below: graphically:
Transportation cost per packet (in `) Maximize Z = 50x + 15y
Subject to
Form P1 P2
To 5x + y # 100
A 5 4 x + y # 60

B 4 2 x, y $ 0

C 3 5

Sol :

How many packets from each factory be transported to

each agency so that the cost of transportation is minimum?
Also, find the minimum cost. Express it as an LPP and
Click : www.nodia.study/lema/ym 141
then solve it. Is CNG an eco-friendly fuel? Write the full
form of CNG.
Page 382 Linear Programming Chap 25

EXAMPLE 25.42 E X ERCISE 25. 3

Solve the following LPP graphically:
Maximize Z = 5x + 7y
1. A house wife wishes to mix together two kinds of food
Subject to
X and Y in such a way that the mixture contains at
x + y # 4 least 10 units of vitamin A, 12 units of vitamin B and
3x + 8y # 24 8 units of vitamin C . The vitamin contents of 1 kg of
10x + 7y # 35 food is given below:
x, y $ 0 Vitamin A Vitamin B Vitamin C


Sol : Food X 1 2 3
Food Y 2 2 1
1 kg of food X costs < 6 and 1 kg of food Y costs
Click : www.nodia.study/lema/ym 142 < 10. Formulate the above problem as a linear
programming problem and find the least cost of the
mixture which will produce the diet graphically.
EXAMPLE 25.43 Ans : 2 kg X and 4 kg Y , minimum cost < 52.
A merchant plans to sell two types of personal computers,
a desktop model and a portable model that will cost Rs. 2. A cooperative society of farmers has 50 hectare of
25000 and Rs. 40000, respectively. He estimates that land to grow two crops A and B . The profits from
the total monthly demand of computers will not exceed crops A and B per hectare are estimates as < 10,500
250 units. Determine the number of units of each type and < 9000 respectively. To control weeds, a liquid
of computers which the merchant should stock to get herbicide has to be used for crops A and B at the rate
maximum profit, if he does not want to invest more than of 20 L per hectare and 10 L per hectare, respectively.
Rs. 70 lakh and his profit on the desktop model is Rs. Further, not more than 800 L of herbicide should
4500 and on the portable model is Rs. 5000. Make an LPP be used in order to protect fish and wildlife using a
and solve it graphically. pond which collects drainage from this land. Keeping
in mind that the protection of fish and other wildlife


Sol : is more important than earning profit.
How much land should be allocated to each crop so

Click : www.nodia.study/lema/ym 143

as to maximize the total profit? Formulate the above
as an LPP and solve it graphically.
Ans : 50 hectare of land A and 20 hectare of land
B , maximum profit < 495000 .
EXAMPLE 25.44
A manufacturer produces two products A and B . Both 3. David wants to invest at most < 12000 in bonds A
the products are processed on two different machines. The and B . According to the rule, he has to invest at least
available capacity of first machine is 12 hour and that of < 2000 in bond A and at least < 4000 in bond B . If
second machine is 9 hours per day. Each unit of product the rates of interest on bond A and B are respectively
A requires 3 hours on both machines and each unit of 8% and 10% per annum. Formulate the problem as
product B requires 2 hours on first machine and 1 hour on LPP and solve it graphically for maximum interest.
second machine. Each unit of product A is sold at profit Also, determine the maximum interest received per
of Rs. 7 and B at a profit of Rs. 4. Find the production year.
level per day for maximum profit graphically. Ans : < 2000 in bonds A and < 10000 in B ,


Sol : maximum profit < 1160

4. Suppose every gram of wheat provides 0.1 g of proteins

Click : www.nodia.study/lema/ym 144 and 0.25 g of carbohydrates, and the corresponding
values for rice are 0.05 g and 0.5 g respectively. Wheat
costs < 20 and rice < 30 per kilogram. The minimum
daily requirement of an average man for proteins and
carbohydrates is 50 g and 200 g respectively. In what
quantities should wheat and rice be mixed in the daily
Chap 25 Linear Programming Page 383

diet to provide the minimum daily requirements of type of fertiliser should be used so that the nutrient
proteins and carbohydrates at minimum cost? What requirements are met at a minimum cost?
is the minimum cost? Ans : 30 kg of fertiliser grade A and 210 kg of
Ans : Minimum cost < 14 when 400 gm of wheat fertiliser grade A.
and 200 gm of rice is used.
9. A manufacturer produces nuts and bolts. It take 2
5. If a 19 year old girl drives her car at 25 km/h, she has hours work on machine A and 3 hours on machine
to spend < 2/km on petrol. If she drives it at a faster B to produce a package of nuts. It takes 3 hours on
speed of 40 km/h, the petrol cost increases to < 5/km. machine A and 2 hours on machine B to produce a
She has < 100 to spend on petrol and wishes to find produce a package of bolts. He earns a profit of Rs. 40
the maximum distance she can travel within one hour. per package on nuts and Rs. 30 per package on bolts.
Express it as a LPP and then solve it. How many package of each should be produced each
Ans : Maximum distance is 30 km when 503 kb be day so as to maximise his profit, if he operates his
travelled with a speed of 25 km/h and 403 machines for at most 10 hours a day? Make an LPP
km at a speed of 40 km/h. and solve it graphically.
Ans : Maximum Rs 140 , when 2 packages of nuts
6. Ramesh runs soft toys factory. He has employed 5 and 2 packages of bolts are manufactured
skilled men and 10 semi-skilled men and makes two
type of toy A and B . The making of one piece of toy

******
A requires 2 hours work by a skilled man and 2 hours
by a semi-skilled man. One piece of toy B requires
1 hour by a skilled man and 3 hours by semi-skilled
man. No man is expected to work more than 8 hours
per day. The manufacturer profit on a piece of toy A
is Rs. 30 and on a piece of toy B is Rs. 20. How many
of pieces of toy should be made per day in order to
maximize daily profit? Formulate the above LPP and
solve it graphically and find the maximum profit.
Ans : 10 piece of toy A and 20 piece of toy B for
maximum profit of Rs. 700.

7. A manufacturer produces two products A and B

. Both the products are processed on two different
machines. The available capacity of first machine is
12 hour and that of second machine is 9 hours per
day. Each unit of product A requires 3 hours on both
machines and each unit of product B requires 2 hours
on first machine and 1 hour on second machine. Each
unit of product A is sold at profit of Rs.14 and B at
a profit of Rs. 8. Find the production level per day for
maximum profit graphically.
Ans : 2 units of product A and 3 units of product
B.

8. There are two types of fertilisers grade A and grade B.

Grade A consists of 12% nitrogen and 5% phosphoric
acid whereas Q consists of 4% nitrogen and 5%
phosphoric acid. After testing the soil conditions,
farmer finds that he needs at least 12 kg of nitrogen
and 12 kg of phosphoric acid for his crops. If grade
A costs Rs. 100 per kg and grade B costs Rs. 80 per
kg, then graphically determine how much of each
Page 384 Unit 8 Case Study Chap 33

CHAPTER 8

Case Study Questions

EXAMPLE 33.1
A craftswoman produces two products: floor lamps Click : www.nodia.study/lema/zm183
and table lamps. Production of one floor lamp requires
75 minutes of her labor and materials that cost $25.
EXAMPLE 33.2
Production of one table lamp requires 50 minutes of labor,
Five friends, all of whom are experienced bakers, form a
and the materials cost $20. The craftswoman wishes to
company that will make bread and cakes and sell them to
work no more than 40 hours each week, and her financial
local restaurants and specialty stores.
resources allow her to pay no more than $900 for materials
each week.

Each loaf of bread requires 50 minutes of labor and

ingredients costing $0.90 and can be sold for $1.20 profit.
Each cake requires 30 minutes of labor and ingredients
costing $1.50 and can be sold for $4.00 profit. The
partners agree that no one will work more than 8 hours a
day. Their financial resources do not allow them to spend
more than $190 per day on ingredients. How many loaves
(i) If she can sell as many lamps as she can make and of bread and how many cakes should they make each day
if her profit is $39 per floor lamp and $33 per table to maximize their profit? What is that maximum profit?
lamp, how many floor lamps and how many table

Sol :
lamps should she make each week to maximize her
weekly profit?
(ii) What is that maximum profit?
Click : www.nodia.study/lema/zm184


Sol :
Chap 33 Unit 8 Case Study Page 385

EXAMPLE 33.3
Global Air Lines has contracted with a tour group to
transport a minimum of 1,600 first-class passengers and
4,800 economy-class passengers from New York to London
during a 6-month time period. Global Air has two types
of airplanes, the Orville 606 and the Wilbur W-1112.
The Orville 606 carries 20 first-class passengers and 80
economy-class passengers and costs $12,000 to operate.
The Wilbur W-1112 carries 80 first-class passengers and
120 economy-class passengers and costs $18,000 to operate.
Compucraft has 1,000 cubic feet of storage available for
the Peach personal computers and printers and sufficient
financing to spend $70,000 each month on computers and
printers.
(i) How many computers and printers should Compucraft
order from Peach each month to maximize profit?
(ii) What is that maximum profit?


Sol :

Click : www.nodia.study/lema/zm186
During the time period involved, Global Air can schedule
no more than 52 flights on Orville 606s and no more than EXAMPLE 33.5
30 flights on Wilbur W-1112s. Plants need nutrients to grow which they absorb from
(i) How should Global Air Lines schedule its flights to the soil via the plant’s root system. Fertilizers provide
minimize its costs? the major nutrients (nitrogen, phosphorus and potassium
(ii) What operating costs would this schedule entail? and important secondary elements) that plants need.
Unless the nutrients are replenished, the soil’s productive


Sol :
capacity declines with every harvest.

Click : www.nodia.study/lema/zm185

EXAMPLE 33.4
Compucraft sells personal computers and printers made
by HP. The computers come in 12-cubicfoot boxes, and
the printers come in 8-cubic-foot boxes.Compucraft’s
owner estimates that at least 30 computers can be sold
each month and that the number of computers sold will
be at least 50% more than the number of printers. The
computers cost Compucraft $1,000 each and can be sold
at a $1,000 profit, while the printers cost $300 each and
can be sold for a $350 profit.
There are two types of fertilisers grade A and grade B.
Grade A consists of 12% nitrogen and 5% phosphoric acid
whereas Q consists of 4% nitrogen and 5% phosphoric
acid. After testing the soil conditions, farmer finds that he
needs at least 12 kg of nitrogen and 12 kg of phosphoric
acid for his crops. If grade A costs Rs. 80 per kg and grade
B costs Rs. 64 per kg, then graphically determine how
Page 386 Unit 8 Case Study Chap 33

much of each type of fertiliser should be used so that the

nutrient requirements are met at a minimum cost?


Sol :

Click : www.nodia.study/lema/zm187

EXAMPLE 33.6
Vitamins are nutritional substances which you need in
small amounts in your diet. Vitamins A and E are fat-
soluble vitamins, meaning they’re stored in your body’s
fat cells, but they need to have their levels topped up
regularly. Vitamin C is a water-soluble vitamin found in
citrus and other fruits and vegetables, and also sold as a
dietary supplement. It is used to prevent and treat scurvy.
Vitamin C is an essential nutrient involved in the repair
of tissue, the formation of collagen, and the enzymatic
production of certain neurotransmitters.

A dietician wishes to mix two types of foods in such a

way that the vitamin contents of mixture contains atleast
8 units of vitamin A and 10 units of vitamin C . Food I
contains 2 units per kg of vitamin A and 1 unit per kg of
vitamin C , while food II contains 1 unit per kg of vitamin
A an 2 units per kg of vitamin C . It costs Rs. 30 per kg
to purchase food I and Rs. 42 per kg to purchase food II.
(i) Formulate above as an LPP and solve it graphically.
(ii) Find the minimum cost of such a mixture.


Sol :

Click : www.nodia.study/lema/zm188

******