Page |1

VARIOUS APPLICATIONS OF MATRICES AND

DETERMINANTS IN ECONOMICS AND
FINANCE

A project work report

By

Dipak Mahaseth

XI Science-D16

Submitted to

The department of Mathematics

Kathmandu Model Secondary School

Bagbazar, Kathmandu,

Nepal

A Report on the partial fulfillment of the requirements of the

Internal evaluation of Grade XI

2079-08-06
 Page |2

Declaration

I hereby declare that the report present in this project report has
been done by myself under the supervision of Mr. Pushpa Raj
Bhandari and has not submitted elsewhere for any examination.

All the sources of information has been specifically acknowledged by

references to authors or institutions.

Signature:

Name of student : Dipak Mahaseth

Stream : Science-D16

Date : 08-06
 Page |3

Subject Teacher’s Recommendation

The project work report entitled ‘VARIOUS APPLICATIONS OF

MATRICES AND DETERMINANTS IN ECONOMICS AND FINANCE’
submitted by Dipak Mahaseth of Kathmandu Model Secondary
School Bagbazar, Kathmandu, Nepal is prepared under my
supervision as per the procedure and format requirements laid by
the Department of Mathematics, Kathmandu Model Secondary
School as the partial fulfillment of the requirements of the internal
evaluation of grade XI. I therefore, recommend the report for
evaluation.

Signature :

Name of Subject Teacher: Mr. Pushpa Raj Bhandari

Date : 08-06
 Page |4

Endorsement

We hereby endorse the project work report entitled ‘VARIOUS

APPLICATIONS OF MATRICES AND DETERMINANATS IN
ECONOMICS AND FINANCE’ submitted by Dipak Mahaseth of
Kathmandu Model Secondary School, Bagbazar, Kathmandu, Nepal
in partial fulfillment of the requirements of the MATHEMATICS
subject internal evaluation of grade XI.

Signature : Signature:

Name of HOD: Mr. Chiranjivi Gyawali Mr.

Nagendra Aryal

Department of MATHEMATICS Pricipal

Date : 08-06 Date: 08-

06
 Page |5

Acknowledgement

I would like to express my gratitude and appreciation to all those

who gave the possibility to complete this report. Special thanks to
our teacher Mr. Pushpa Raj Bhandari. I would also like to express my
gratitude to our HOD of Mathematics Mr. Chiranjivi Gyawali for
giving me this great opportunity. I also sincerely thanks my group for
active participation and helping in the project. I am very grateful to
them for their support.

I would like to extend my deep appreciation to all my group

members, without their support and coordination we would not
have been able to complete this project.
 Page |6

Table of Content
S.N. Page

Title Page…………………………………………………………………………………………………..1

Declaration………………………………………………………………………………………………..2

Subject Teacher’s Recommendation………………………………………………………….3

Endorsement……………………………………………………………………………………………..4

Acknowledgement…………………………………………………………………………………….5

Table of Contents………………………………………………………………………………………6

List of Figures…………………………………………………………………………………………….7

Abbreviations…………………………………………………………………………………………….8

Matrix ……………………………………………………………………………………………………….9

o Introduction …………………………………………………………………………………9
o History………………………………………………………………………………………….9
o Definition……………………………………………………………………………………. 10
o Types of Matrices……………………………………………………………………….. 11
o Operations on Matrices………………………………………………………………. 16
o Transpose of Matrix……………………………………………………………………. 20
o Determinant of Matrix………………………………………………………………….20
o Minors and Cofactors…………………………………………………………………..21
o What are the properties of Determinants?.....................................22
o Properties of Determinants………………………………………………………….23
o Adjoint of a Matrix………………………………….……………………………………26
o Singular or non-singular Matrix…………………………………………………….26
o Inverse of a Matrix………………………………………………………………………..26
o Applications of Matrices………………………………………………………………..27
o Applications of Matrices in economics and finance……………………….28
o Conclusion……………………………………………………………………………………..31
o Bibliography…………………………………………………………………………………..32
 Page |7

List of Figures
o Fig:1,Matrix
o Fig:2,Matrix
o Fig:3, Eg. Of order of Matrix
o Fig:4, Row Matrix
o Fig:5, Row Matrix
o Fig:6, Column Matrix
o Fig:7, Rectangular Matrix
o Fig:8, Square Matrix
o Fig:9, Zero or Null matrix
o Fig:10, Diagonal Matrix
o Fig:13, Unit or Identity Matrix
o Fig:14, Upper and Lower Triangular Matrix
o Fig:15, Sub Matrix
o Fig:16, Symmetric Matrix
o Fig:17, Skew Symmetric Matrix
o Fig:18, Nilpotent Matrix
o Fig:19, Involutory Matrix
o Fig:20, Conjugate Matrix
o Fig:21, Equal Matrices
o Fig:22, Comaparable Matrices
o Fig:23, Addition of Matrix
o Fig:24, Difference of Matrix
o Fig:25, Scalar Multiplication of Matrix
o Fig:26, Wrong Condition for Matrix Multiplication
o Fig:27, Right Condition for Matrix Multiplication
 Page |8

o Fig:28, Multiplication of Matrix

o Fig:29, Transpose of MatriFig:30, Sample input-output Table
 Page |9

Abbreviations
1. Eg.=Example
2. No.= Number
3. Adj.=Adjoint
4. Soln= Solution
5. Fig.=Figure
 P a g e | 10

MATRIX
Introduction
Matrices are the most powerful tools of mathematics which provide
a convenient and orderly means of organizing many data bases. Due
to this reason, most scientific fields needs matrices in some or other
forms. Matrices are widely needed in various fields such as physics,
cryptography, economics and finance, chemistry, geology, robotics
and animations, signal processing, computer graphics, astronomy
etc. Moreover, matrices are the foundations of higher mathematics
such as algebra and differential equations. In this topic, we focus on
the various types of matrices along with the operations on the
matrices. We also study about the determinants which are the
numbers associated to special matrices. Finally, we discuss the
inverse of a matrix.

History
Historically, it was not the matrix but a certain number associated
with a square array of numbers called the determinant that was first
recognized. Only gradually did the idea of the matrix as an algebraic
entity emerge. The term matrix was introduced by the 19th-century
English mathematician James Sylvester, but it was his friend the
mathematician Arthur Cayley who developed the algebraic aspect of
matrices in two papers in the 1850s. Cayley first applied them to the
study of systems of linear equations, where they are still very useful.
They are also important because, as Cayley recognized, certain sets
of matrices form algebraic systems in which many of the ordinary
laws of arithmetic (e.g., the associative and distributive laws) are
 P a g e | 11

valid but in which other laws (e.g., the commutative law) are not
valid.

Definition
A rectangular array of numbers arranged in rows (horizontal lines)
and columns (vertical lines) enclosed between round (or square)
brackets is called matrix. For example here are some matrices,

Fig:1,Matrix Fig:2,Matrix

Each member in the array is called an entry or an element of the

matrix.

The order or the size of the matrix is given by the number of rows
followed by the number of columns. In first example, there are two
rows and three columns and so the matrix is said to be of order 2 x 3.
In second example, the orer of the matrix is 2 x 2.

Thus an arrangement of mn numbers in a rectangular array of m

rows and n columns is called a m x n matrix and read as ‘m by n
matrix.’ The number of rows m and number of column n define the
order or size or dimension of the matrix. A matrix of rows m and
columns n is called a matrix of order m x n. The word matrices is the
plural form of the matrix and m x n matrix A is usually written as (a ij)m
x n. i.e.
 P a g e | 12

Fig:3, Eg. Of order of Matrix

The matrices are generally denoted by capital letters, A, B, C,…….., X,

Y, Z, and the elements are denoted by aij, i= 1,2,….,m; j=1,2,…,n,
where aij is the element in the ith row and jth column. Here, aij is the
general element of the matrix A, where A=[a ij]m x n is the general form
of m x n matrix.

The notations [ ], ( ), || || are used for enclosing the

elements of a matrix. The first two notations are easy to use, so we
use the first two in this report.

Example: If the three students A, B, C of a school have the following

information:

Students Class Roll No.

A 11 9

B 5 7

C 10 2

[ ]
119
Then the matrix representation is 57
10 2

Types of Matrices
 P a g e | 13

1. Row Matrix: A matrix having only one row is called row matrix
or a row vector. Eg:

Fig:4, Row Matrix Fig:5, Row Matrix

2. Column Matrix: A matrix having only one column is called

column matrix or column vector. Eg:

Fig:6, Column Matrix

3. Rectangular Matrix: A matrix in which the number of rows and

columns are not equal, is called rectangular matrix. Eg:

Fig:7, Rectangular
Matrix

4. Square Matrix: A matrix in which the number of rows and

columns are equal, is called square matrix. Eg:

Fig:8, Square Matrix

 P a g e | 14

5. Zero or Null Matrix: A matrix in which all the elements are

zero is called zero or null matrix. Eg:

Fig:9, Zero or Null matrix

6. Diagonal Matrix: A square matrix having all non- diagonal

elements zero is called diagonal matrix. Eg:

Fig:10, Diagonal Matrix

7. Scalar Matrix: A diagonal matrix having all the diagonal

elements equal is called scalar matrix. Eg:

Fig:11, Scalar Matrix Fig;12, Scalar Matrix

8. Identity or Unit Matrix: A diagonal matrix having all the

diagonal elements equal to one is called identity matrix. Eg:
 P a g e | 15

Fig:13, Unit or Identity Matrix

9. Triangular Matrix: A square matrix in which all the elements

above the leading diagonal are zero is called lower triangular
matrix. A square matrix all of whose elements below the
leading diagonal are zero is called an upper triangular matrix.
A square matrix is said to be triangular matrix if it is either
upper triangular or lower triangular matrix. Eg:

Fig:14, Upper and Lower Triangular Matrix

10. Sub Matrix: Any matrix obtained by omitting some rows

or columns or both from a given matrix is called a sub matrix.
Eg:
 P a g e | 16

Fig:15, Sub Matrix

11. Symmetric Matrix: A square matrix A=[a ij] is called a

symmetric matrix if if aij =aji for all i and j. Eg:

Fig:16, Symmetric Matrix

12. Skew Symmetric Matrix: A square matrix A=[a ij] is called a

skew symmetric matrix if aij = -aji for all i and j. Eg:

Fig:17, Skew Symmetric Matrix

13. Nilpotent Matrix: A square matrix A is called nilpotent

matrix of index n if An= O, n is some positive integer and O is a
null matrix.
Eg:
 P a g e | 17

Fig:18, Nilpotent Matrix

14. Involutory Matrix: A square matrix A is called involutory

matrix if A2= I or A= A-1. Eg:

Fig:19, Involutory Matrix

15. Conjugate Matrix: A square matrix whose elements are

complex numbers, obtained by replacing each elements of a
matrix by its complex conjugate is called the conjugate of the
given matrix. The conjugate of matrix A is written as A . Eg:

Fig:20, Conjugate Matrix

16. Equal Matrices: Two matrices are said to be equal if :

a. they have same number of rows and columns and
b. the elements in the corresponding positions of the two
matrices
 P a g e | 18

are equal.
Eg:

Fig:21, Equal Matrices

17. Comparable Matrices: Two matrices A and B are said to

be comparable if they are of the same order i.e. they have
same number of rows and columns. Eg:

Fig:22, Comaparable Matrices

Operations on Matrices
We now discuss some basic algebraic operations defined on
matrix.

1. Addition of Matrices:
o If A and B are two matrices of same order, the sum of A and B is
denoted by A+B is the matrix obtained by adding the
corresponding elements of A and B. Eg:
 P a g e | 19

Fig:23, Addition of Matrix

2. Let A, B, C be the matrices of same order O be the null matrix

then the following laws hold for addition operation.
i. Commutative law: A+B=B+A
ii. Associative law : A+ (B+C)=(A+B)+C

iii. Existence of additive identity: A+O=O+A=A

iv. Cancellation law:

a. If A+C=B+C, then A=B (right cancellation law)

b. If C+A=C+B, then A=B (left cancellation law)

3. Differences of Matrices

o If A and B are the two matrices of same order then the

difference of matrix B from matrix A is defined to be the matrix
obtained by adding the additive inverse of B i.e. –B to the
matrix A. It is denoted by A-B. Then A-B = A+(-B). Eg:
 P a g e | 20

Fig:24, Difference of Matrix

4. Multiplication of a Matrix:

a. Multiplication of a Matrix by a scalar:

 If A is any matrix and k is any constant or a scalar the kA the

matrix obtained by multiplying each element of A by k is called
the scalar multiple of A by k. Eg:

Fig:25, Scalar Multiplication of Matrix

b. Multiplication of two Matrices:

 Before we write the definition of matrix multiplication, let us

see the following figures.
 P a g e | 21

Fig:26, Wrong Condition for

Fig:27, Right Condition for

Matrix Multiplication Matrix Multiplication

o In fig:26, the number of columns of matrix A is not

equal to the number of rows of matrix B so it can’t
be multiplied.
o In fig:27, the number of columns of matrix A is equal
to the number of rows of matrix B so it can be
multiplied.
 If A is any m x n matrix and B is any n x p matrix then the
product AB is an m x p matrix. The element in row I and column
j of AB is obtained by the multiplication of the elements in the
ith row of A by corresponding elements of jth column of B and
addition of resulting products. For example:
 P a g e | 22

Fig:28, Multiplication of Matrix

C. Properties of Matrix Multiplication

o Let A, B and C be the matrices and I be the identity matrix, then
the following properties hold true for the matrix multiplication.
i. Commutative law is always not true, i.e.., in general
AB≠BA.
ii. Existence of Multiplicative identity; AI=IA=A.
iii. Associative law; A(BC)=(AB)C.
iv. Distributive law; A(B+C)=AB+BC.

Transpose of Matrix
Let A be an m x n matrix.Then a new matrix obtained by
interchanging rows and columns of A is called the transpose of
A. It is denoted by A’ or At or AT. Thus,
i. If the order of A is m x n then the order of A is n x m.
ii. (i,j)th element of A = (j, i)th element of A’.
iii. If A is the square matrix of order m then A’ is also a
square matrix of order m.

Eg:
 P a g e | 23

Fig:29, Transpose of Matrix

Properties of Transpose of a Matrix: Let A’ and B’ be the

transpose of A and B respectively. Then,

i. (A’)’=A
ii. (A+B)’=A’+B’, A and B are of the same order.
iii.(kA)’=kA’, where k is any scalar.
iv. (AB)’=B’A’, A and B being conformable for multiplication.
Now, we can define symmetric and skew symmetric
matrices in the following way:
o A square matrix A= (aij) is symmetric if AT = A and skew-
symmetric if AT = -A.

Determinant of Matrix
 It originally appeared in the study of linear equations. We
shall, however, associate the notation of the determinant
with matrices. For this purpose, we have to consider square
matrices of order 2,3,….,n, i.e. 2 x 2, 3 x 3,….,n x n matrices.
 Determinant of 1 x 1 matrix A=(a11) is defined to be the
number a11. In symbol, we write
det(A) or |A|= a11
 Determinant of 2 x 2 matrix A= a1121 [ a a 12
a 22 ]
= a11 a22 – a12a21
 P a g e | 24

 The numbers a11, a12, a21, a22 are the elements of the
determinant. Since it has two rows and two columns, it is
called the determinant of order 2.
Example;
i. If A =(2), then det(A)=2
ii. If A=(-3), then det(A)=-3
iii. [ 1 22] then, det(A)= |−11 22|= 2-(-2)=4.
If A = −1
 We now proceed to find the determinant of 3 x 3 matrix.
This definition requires the concept of the minor and the
cofactor of an element in the matrix.

Minors and Cofactors

[ ]
a11 a 12 a13
 Let A = a21 a 22 a23 be 3 x 3 matrix. The determinant of 2 x 2
a31 a 32 a33

matrix formed by omitting the ith row and jth column of A is

called the minor of the element a ij and it is denoted by
number Mij. Thus

|
M11 = minor of a11= a2232
a
|
a23
a33

M = minor of a12=| |
a21 a23
12 a31 a33

M = minor of a13= | |
a21 a22
13 a31 a32

 The cofactor of Aij of ith row and jth column element aij of the
3 x 3 matrix A is the number Aij = (-1)i+j Mij .

What Are the Properties of Determinants?

 P a g e | 25

The properties of determinants are helpful in easily calculating the

value of the determinant with simple steps and with the least
calculations. The seven important properties of determinants are as
follows.
 Interchange Property: The value of a determinant remains
unchanged if the rows or the columns of a determinant are
interchanged.
 Sign Property: The sign of the value of determinant changes if any
two rows or any two columns are interchanged.
 Zero Property: The value of a determinant is equal to zero if any
two rows or any two columns have the same elements.
 Multiplication Property: The value of the determining becomes k
times the earlier value of the determinant if each of the elements
of a particular row or column is multiplied with a constant k.
 Sum Property: If a few elements of a row or column are expressed
as a sum of terms, then the determinant can be expressed as a
sum of two or more determinants.
 Property Of Invariance: If each element of a row and column of a
determinant is added with the equimultiples of the elements of
another row or column of a determinant, then the value of the
determinant remains unchanged. This can be expressed in the
form of a formula as  Ri → Ri + kRj , or Ci → Ci + kCj.
 Triangular Property: If the elements above or below the main
diagonal are equal to zero, then the value of the determinant is
equal to the product of the elements of the diagonal of the
matrix.

Properties of Determinants
Let us check the below seven properties of determinant in detail. The
working principle and the formulas, and an explanation of each of
the properties are also presented below.
 P a g e | 26

1. Interchange Property

The value of a determinant remains unchanged if the rows or the

columns of a determinant are interchanged.

| | | |
a1 a2 a3 a1 b 1 c 1
A= b 1 b2 b3 A’= a2 b 2 c 2
c1 c 2 c 3 a3 b3 c 3

Det(A) = Det(A')

It follows from this property that if the rows and columns of the
matrix are interchanged, then the transpose of the matrix is obtained
and the determinant value and the determinant of the transpose are
equal.

2. Sign Property

The sign of the value of the determinant changes if any two rows or
any two columns are interchanged.

| | | |
a1 a2 a3 a1 a2 a3
A= b 1 b2 b3 , B= c1 c 2 c 3
c1 c 2 c 3 b 1 b2 b3

Det(A) = -Det(B)

The value of the determinant only changes the sign if the row or the
column is swapped once. In the above matrix A, the second row has
been swapped with the third row to obtain matrix B, and we have
Det(A) = -Det(B). If the value of the determinant is D, and the rows or
columns are swapped n times, then the new value of the
determinant is (-1)nD.
3. Zero Property

The value of a determinant is equal to zero if any two rows or any

two columns have the same elements.
 P a g e | 27

Here the elements of the first row and the second row are identical.
Hence the value of the determinant is equal to zero.

| |
a1 a2 a3
A= a1 a2 a3
b 1 b2 b3

Det(A) = 0

4. Multiplication Property

The value of the determining becomes k times the earlier value of

the determinant if each of the elements of a particular row or
column is multiplied with a constant k.

| | | |
a1 b 1 c 1 ka1 kb 1 kc 1
A= a2 b 2 c 2 , B=¿ a2 b2 c2
a3 b3 c 3 a3 b3 c3

Det(B) = k× Det(B)

The elements of the first row are multiplied with a constant k, and
the determinant value is also multiplied with the constant k. This
property helps in taking a common factor from each row or a column
of the determinant. Also if the corresponding elements of any two
rows or columns are equal then the value of the determinant is equal
to zero.

5. Sum Property

If a few elements of a row or column are expressed as a sum of

terms, then the determinant can be expressed as a sum of two or
more determinants.

| || || |
a1+ b1 a 2+ b2 a 3+ b3 a1 a2 a 3 b1 b2 b 3
c1 c2 c3 = c 1 c 2 c3 + c 1 c 2 c3
d1 d2 d3 d1 d2 d3 d1 d2 d3
 P a g e | 28

The elements of the first row represent the sum of terms, which can
be split into two different determinants. Further, the new
determinants also have the same second and third row, as the earlier
determinant.

6. Property Of Invariance
If each element of a row and column of a determinant is added with
the equimultiples of the elements of another row or column of a
determinant, then the value of the determinant remains unchanged.
This can be expressed in the form of a formula as Ri → Ri + kRj , or
Ci → Ci + kCj.

| | | |
a1 a2 a3 a1+ kc 1 a2 +kc 2 a3 +kc 3
A= b 1 b2 b3 ,B= b1 b2 b3
c1 c 2 c 3 c1 c2 c3

Det(A) = Det(B)

The elements of the first row of matrix A have been replaced with
the sum of the elements of the first row, and the third row multiplied
with a constant, to obtain the new matrix B. Here, after this
operation also, the determinant A is equal to determinant B.

7. Triangular Property

If the elements above or below the main diagonal are equal to zero,
then the value of the determinant is equal to the product of the
elements of the diagonal matrix.

| || |
a1 a2 a3 a1 0 0
0 b2 b3 = a2 b 2 0 =a1b2c3
0 0 c3 a3 b3 c 3
 P a g e | 29

Adjoint of a Matrix

| |
a11 a12 a 13
 Let A= a21 a22 a 23 be a 3 x 3 matrix, and A ij be the cofactor of
a31 a32 a 33

aij, then adjoint of A denoted by adj A is defined by

[ ]
a11 a 12 a13
Adj A = transpose of a21 a 22 a23
a31 a 32 a33

[ ]
a11 a21 a31
= a12 a22 a32
a13 a23 a33

Singular or non-singular Matrix

 A square A is said to be singular and non-singular according
as |A|=0 or |A|≠0 respectively.

Inverse of a Matrix
 I f A and B are non-singular square matrices such that
AB=BA=I, where I is the unit matrix of same order as that of
A and B, the B is called the inverse of A(i.e. A -1=B) and A is
called the inverse of B(i.e. B-1 =A). By formula,
A-1= (1\|A|) Adj. A
The following conditions are necessary for a matrix to have
an inverse.
a. The matrix must be a square matrix and no-singular. Only
a non-singular matrix has inverse.
b. The equations AB=BA=I must be satisfied.
c.pplication of Matrices:
 P a g e | 30

d . Ÿ In the field of computing,

matrices are used in message
encryption. They are
e.used to create three-dimensional
graphic images and realistic looking
f. motion on a two-dimensional computer
screen and also in the calculation of
g. algorithms that create Google page
rankings.
h . Ÿ Matrices are used to
compress electronic information and
play a role in stor-
i. ing fingerprint information.
j . Ÿ In solving the problems
using Kirchhoff’s Laws of voltage and
current, the
k. matrices are essential.
l . Ÿ Errors in electronic
transmissions are identified and
corrected with the use of
m. matrices.
n . Ÿ In the calculation of
battery power outputs, resistor
conversion of electrical
 P a g e | 31

o. energy into another useful energy,

these matrices play a major role in
calcula-
p. tions.
q . Ÿ The matrix calculus is
used in the generalization of analytical
notions like
r. exponentials and derivatives to their
higher dimensions.
s . Ÿ Matrices and their inverse
matrices are used for a programmer for
coding or
t. encrypting a message.
u . Ÿ A message is made as a
sequence of numbers in a binary
format for commu-
v. nication and it follows code theory
for solving.
w . Ÿ With these encryptions
only, internet functions are working
and even banks
x. could work with transmission of
sensitive and private data’s.
y . Ÿ In geology, matrices are
used for taking seismic surveys.
 P a g e | 32

z . Ÿ Matrices are used for

plotting graphs, statistics and also to do
scientific stud-
aa. ies in almost different fields.
b b . Ÿ Matrices are best
representation methods for plotting the
common survey
cc. things.
d d . Ÿ Matrices are used in
calculating the gross domestic products
in economics
ee. which eventually helps in
calculating the goods production
efficiently.
f f . Ÿ Matrices are used in
many organizations such as for
scientists for recording
gg. the data for their experiments
 P a g e | 33

hh. pplication of Matrices:

i i . Ÿ In the field of
computing, matrices are used in
message encryption. They are
jj. used to create three-dimensional
graphic images and realistic looking
kk. motion on a two-dimensional
computer screen and also in the
calculation of
ll. algorithms that create Google page
rankings.
m m . Ÿ Matrices are used
to compress electronic information and
play a role in stor-
nn. ing fingerprint information.
o o . Ÿ In solving the
problems using Kirchhoff’s Laws of
voltage and current, the
pp. matrices are essential.
q q . Ÿ Errors in electronic
transmissions are identified and
corrected with the use of
rr. matrices.
 P a g e | 34

s s . Ÿ In the calculation of
battery power outputs, resistor
conversion of electrical
tt. energy into another useful energy,
these matrices play a major role in
calcula-
uu. tions.
v v . Ÿ The matrix calculus is
used in the generalization of analytical
notions like
ww. exponentials and derivatives to
their higher dimensions.
x x . Ÿ Matrices and their
inverse matrices are used for a
programmer for coding or
yy. encrypting a message.
z z . Ÿ A message is made as
a sequence of numbers in a binary
format for commu-
aaa. nication and it follows code theory
for solving.
b b b . Ÿ With these
encryptions only, internet functions are
working and even banks
 P a g e | 35

ccc. could work with transmission of

sensitive and private data’s.
d d d . Ÿ In geology,
matrices are used for taking seismic
surveys.
e e e . Ÿ Matrices are used
for plotting graphs, statistics and also
to do scientific stud-
fff. ies in almost different fields.
g g g . Ÿ Matrices are best
representation methods for plotting the
common survey
hhh. things.
i i i . Ÿ Matrices are used
in calculating the gross domestic
products in economics
jjj. which eventually helps in
calculating the goods production
efficiently.
k k k . Ÿ Matrices are used
in many organizations such as for
scientists for recording
lll. the data for their experiments
mmm. pplication of Matrices:
 P a g e | 36

n n n . Ÿ In the field of
computing, matrices are used in
message encryption. They are
ooo. used to create three-dimensional
graphic images and realistic looking
ppp. motion on a two-dimensional
computer screen and also in the
calculation of
qqq. algorithms that create Google page
rankings.
r r r . Ÿ Matrices are used
to compress electronic information and
play a role in stor-
sss. ing fingerprint information.
t t t . Ÿ In solving the
problems using Kirchhoff’s Laws of
voltage and current, the
uuu. matrices are essential.
v v v . Ÿ Errors in electronic
transmissions are identified and
corrected with the use of
www. matrices.
x x x . Ÿ In the calculation
of battery power outputs, resistor
conversion of electrical
 P a g e | 37

yyy. energy into another useful energy,

these matrices play a major role in
calcula-
zzz. tions.
a a a a . Ÿ The matrix
calculus is used in the generalization of
analytical notions like
bbbb. exponentials and derivatives to
their higher dimensions.
c c c c . Ÿ Matrices and
their inverse matrices are used for a
programmer for coding or
dddd. encrypting a message.
e e e e . Ÿ A message is
made as a sequence of numbers in a
binary format for commu-
ffff. nication and it follows code theory
for solving.
g g g g . Ÿ With these
encryptions only, internet functions are
working and even banks
hhhh. could work with transmission
of sensitive and private data’s.
 P a g e | 38

i i i i . In geology,
Ÿ
matrices are used for taking seismic
surveys.
j j j j . Ÿ Matrices are
used for plotting graphs, statistics and
also to do scientific stud-
kkkk. ies in almost different fields.
l l l l . Ÿ Matrices are
best representation methods for
plotting the common survey
mmmm. things.
n n n n . Ÿ Matrices are
used in calculating the gross domestic
products in economics
oooo. which eventually helps in
calculating the goods production
efficiently.
p p p p . Ÿ Matrices are
used in many organizations such as for
scientists for recording
qqqq. the data for their experiments
Application of Matrices
 In the field of computing, matrices are used in message
encryption. They are used to create three-dimensional graphic
images and realistic looking motion on a two-dimensional
 P a g e | 39

computer screen and also in the calculation of algorithms that

create Google page rankings.
 Matrices are used to compress electronic information and play
a role in storing fingerprint information.
 In solving the problems using Kirchhoff’s Laws of voltage and
current, the matrices are essential.
 Errors in electronic transmissions are identified and corrected
with the use of matrices.
 In the calculation of battery power outputs, resistor conversion
of electrical energy into another useful energy, these matrices
play a major role in calculations.
 The matrix calculus is used in the generalization of analytical
notions like exponentials and derivatives to their higher
dimensions.
 Matrices and their inverse matrices are used for a programmer
for coding or encrypting a message.
 A message is made as a sequence of numbers in a binary
format for communication and it follows code theory for
solving.
 With these encryptions only, internet functions are working
and even banks could work with transmission of sensitive and
private data’s.
 In geology, matrices are used for taking seismic surveys.
 Matrices are used for plotting graphs, statistics and also to do
scientific studies in almost different fields.
 Matrices are best representation methods for plotting the
common survey things.
 Matrices are used in many organizations such as for scientists
for recording the data for their experiments.
 P a g e | 40

Applications of Matrices and its

Determinant in Economics and Finance

 Matrices are used in calculating the gross domestic products in

economic which eventually helps in calculating the goods
production efficiently.
 Matrices are used to study the trends of a business, shares etc
and to create business models etc.
 Matrix Cramer's Rule and determinants are useful tools for
resolving various problems in business and economics involving
profit maximization and loss minimization. Variance and
covariance are calculated using matrices.
 With the use of a matrix determinant, Matrix Cramer's Rule is
utilized to find solutions to linear equations. The IS-LM model's
market equilibrium is solved with determinants and Matrix
Cramer's Rule.
 It is seen that input-output analysis that used in matrix a
researcher can get the information about level of output should
be of each industry at that existing technology.
 P a g e | 41

Fig:30, Sample input-output Table

 Matrices are used to calculate the profit and loss in a business.

Example:
A furniture company produces three types of chairs, namely A,
B and C. The following matrices shows the sales of chairs in two
different cities.
A B C
City 1 ¿ City 2 ¿ [ 120
90
150 100
130 150 ]
If the cost of each chair is $30, $20 and $10 and the selling
price of the chair is $35, $30 and $20 respectively.
a. find the total cost of the factory for the total sales made
b. find the total cost of the factory.

Soln

], price =P=[ ] []
35 30
Quantity= Q= [ 120 150 100
90 130 150
30
20
, Cost=V= 20
10

a)

Total cost=(Quantity sold)(Unit cost)

]x[ ]
30
Total cost=Q.V= [ 120 150 100
90 130 150
20
10

Total cost=Q.V= [ ( 120 x 30 ) +¿ ( 150 x 20 ) +¿(100 x 10)

( 90 x 30 ) +¿ ( 130 x 20 ) +¿(150 x 10) ]
[ 7600 ]
Total cost= 6800

Total cost = Total revenue – Total cost

Therefore we have to calculate the total revenue

 P a g e | 42

Total revenue= (Quantity) (Unit price)

]x[ ]
35
Total revenue = Q.P= [ 120 150 100
90 130 150
30
20

Total revenue =Q.P= [ ( 120 x 35 ) +¿ ( 150 x 30 ) +¿ ( 100 x 20 )

( 90 x 35 )+ ¿ ( 130 x 30 )+ ¿(150 x 20) ]
[ 10700
= 10050 ]
Total profit= Total revenue –Total cost

[ 10700 ] [ 7600 ] [ 3100 ]

= 10050 - 6800 = 3250
 P a g e | 43

Conclusion
From this experiment we can conclude that matrices and
determinants are very essential in our life. It has its great
importance either in education sector or daily applications. It is
mostly used in calculating the gross domestic products in
economic which eventually helps in calculating the goods
production efficiently. It is seen that in solving the problems using
Kirchhoff’s Laws of voltage and current, the matrices are essential.
The science of optics used matrix mathematics to account for
reflection and for refraction. The movements of the robots are
programmed with the calculation of matrices rows and columns.
In robotics and automation, matrices are the base elements for
the robot movement. And having essential role in above sectors
indeed helps in boosting the economical and financial condition.
 P a g e | 44

Bibliography

SOURCE NAME LINK\PUBLICATION

Researchgate www.researchgate.com

Wikipedia www.wikipedia.org

Vedantu www.vedantu.com

Cuemath www.cuemath.com

BYJU’S www.byjus.com
Foundations of Asmita
Mathematics XI

Basic Mathematics XI Sukunda