Statistics for Managers

By Lakshmi Bhat
Mathematics
Mathematics is one of the most important subjects. Mathematics is a subject of
numbers, shapes, data, measurements and also logical activities. It has a
huge scope in every field of our life, such as medicine, engineering, finance,
natural science, economics, etc. We are all surrounded by a mathematical
world.

Mathematics is a subject of logic. Learning mathematics will help

students to grow their problem-solving and logical reasoning skills
Mathematics
Branches of Mathematics

The main branches of mathematics are:

● Number System
● Algebra
● Geometry
● Calculus
● Topology
● Trigonometry
● Probability and Statistics
Mathematics
● Importance of Mathematics??
● Mathematics is the systematic study of the measurement, calculations,
relationships, and properties of quantities and sets, using numbers and
symbols.
Difference between Statistics and Mathematics
Statistics in Business Management

.
 Mathematics in Business Management

➢ Production costs calculation

➢ Price determination
➢ Profit Measurement
➢ Financial Analysis
 Basic mathematics
What is an integer?

An integer is a whole number and can be either positive or negatives.

Examples of integers are …, –5, –4 , –3 , –2, –1, 0, 1, 2, 3, 4, 5, …
What is a fraction?
Fractions and decimals are ways of showing parts of a whole.

Examples of fractions are 1/2, 1/4, 19/35, 10/377 …

Examples of decimals are 0.1, 0.25, 0.3135, …

 Basic mathematics

The negative number rules are as follows:

 Basic mathematics
Multiplying and dividing negative numbers

When a negative number is multiplied or divided by another negative number, the result is a
positive number.

(a)–8 × (–4) = +32

(b)−18/-3= +6

If there is only one negative number in a multiplication or division, the result is negative.

(a)–8 × 4 = –32 (b)3 × (–2) = –6

3

(c)12/-4= –3 (d) -20/5 = –4

Basic mathematics
 Basic mathematics
A fraction has a numerator (the number on the top line) and a denominator (the number on the
bottom line).

FRACTION =

For example, the fraction 1/2 has a numerator equal to 1 and a denominator of 2.

Reciprocals
The reciprocal of a number is 1 divided by that number for example. For example, the reciprocal of 2 is
1 divided
by 2 = 1/2. The reciprocal of 3 is 1 divided by 3 = 1/3.
Basic mathematics
Decimals
A fraction can be turned into a decimal by dividing the numerator by the denominator. For
example, the fraction n ½ equates to 0.5, and the fraction 1/4 equates to 0.25.
When turning decimals into fractions, you need to remember that places after the decimal
point stand for tenths, hundredths, thousandths and so on.

Decimal places
Sometimes a decimal number has too many figures in it for practical use. For example consider
the fraction 6/9 which when turned into a decimal = 0.666666 recurring.This problem can be
overcome by rounding the decimal number to a specific number of decimal places by discarding
figures using the following rule.If the first figure to be discarded is greater than or equal to
five then add one to the previous figure. Otherwise the previous figure is unchanged.
 Basic mathematics
Example: Decimal places
(a)49.28723 correct to four decimal places is 49.2872
Discarding a 3 causes nothing to be added to the 2.
(b)49.28723 correct to three decimal places is 49.287
Discarding a 2 causes nothing to be added to the 7.
(c)49.28723 correct to two decimal places is 49.29
Discarding the 7 causes 1 to be added to the 8.
(d)49.28723 correct to one decimal place is 49.3
Discarding the 8 causes 1 to be added to the 2.
 Basic mathematics
Another method for giving an approximated answer is to round off using significant figures. Significant means important
and the closer a digit is to the beginning of a number, the more significant it is. For example, if we want to express
95,431 to 3 significant figures, '31' will be discarded, leaving 95,400 (3sf).Listed below are the basics of the law:

● All non-zero digits are significant.

● Zeroes between non-zero digits are significant.
● A trailing zero or final zero in the decimal portion only are significant.

Following are the significant figures rules that govern the determination of significant figures:

1. Those digits which are non-zero are significant.

For example, in 6575 cm there are four significant figures and in 0.543 there are three significant figures.
2. If any zero precedes the non-zero digit then it is not significant. The preceding zero indicates the location of
the decimal point, in 0.005 there is only one and the number 0.00232 has 3 figures.
3. If there is a zero between two non-zero digits then it is also a significant figure.
For example; 4.5006 has five significant figures.
4. Zeroes at the end or on the right side of the number are also significant.
For example; 0.500 has three significant figures.
5. Counting the number of objects for example 5 bananas and 10 oranges have infinite figures as these are
inexact numbers.
●
 Basic mathematics
Round off the number 37,649 to one significant figure
Round off the number 0.0073184 to four decimal places
Work out the answer to 974 × 586 on a calculator and round off the answer to three significant figures
Work out the answer to 23 ÷ 946 on a calculator and round off the answer to three decimal places

40,000
0.0073
974 × 586 = 570,764
= 571,000 (3 sf)
(e)23 ÷ 946 = 0.02431289641
= 0.024 (3 dp)
 Basic mathematics
symbols

> means 'greater than'. So 46 > 29 is true, but 40 > 86 is false.

≥ means 'is greater than or equal to'. So 4 ≥ 3 and 4 ≥ 4.

< means 'is less than'. So 29 < 46 is true, but 86 < 40 is false.

≤ means 'is less than or equal to'. So 7 ≤ 8 and 7 ≤ 7.

≠ means 'is not equal to'. So we could write 100.004 ≠ 100.

 Basic mathematics

Put the following calculation into your calculator exactly as it is written

3+6×5=
What does this tell you about how your calculator carries out the order of operation?
(b)Calculate the following using the brackets buttons on your calculator
(3 + 5) × 2
What happens if you don't use brackets?
(c)Use the fraction button to calculate the following:

(d)What is 62.75
(e)What is
(f)What is

(g)What is
 Basic mathematics
Order of operations
Brackets

5(8 – 6) = 5(2) = 10; or

(5 × 8) – (5 × 6) = 10
Basic mathematics
Order of operations
 Basic mathematics
Percentages and ratios
Percentages are used to indicate the relative size or proportion of items, rather than their absolute size.
Example.

The idea of percentages is that the whole of something can be thought of as 100%. The whole of a cake, for
example, is 100%. If you share it out equally with a friend, you will get half each, or 100%/2 = 50% each.
 Basic mathematics
Percentages and ratios
To turn a percentage into a fraction or decimal you divide by 100%. To turn a fraction or decimal back
into a percentage you multiply by 100%.

Percentages, fractions and decimals

0.16= = —-------------------%
⅘= =-----------------%
40%=------------------------
Situations involving percentages
4.2.1 Find X% of Y
Suppose we want to find 40% of $64

4.2.2 Express X as a percentage of Y

Suppose we want to know what $16 is as a percentage of $64
$16 as a percentage of $64 = 16/64 × 100% = 1/4 × 100% = 25%
In other words, put the $16 as a fraction of the $64, and then multiply by 100%.
 Basic mathematics Percentages and ratios
Find the original value of X, given that after a percentage increase of Y% it is equal to X1

Fred Bloggs' salary is now $60,000 per annum after an annual increase of 20%. Suppose we wanted to
know his annual salary before the increase.

red Bloggs' salary before increase (original) 100

Salary increase 20
Fred Bloggs' salary after increase (final) 120
We know that Fred's salary after the increase (final) also equals $60,000.Therefore 120% = $60,000.
We need to find his salary before the increase (original), ie 100%.
 Basic mathematics Percentages and ratios
Find the original value of X, given that after a percentage increase of Y% it is equal to X1

Step 1
If 120% = $60,000
1% = $60,000/120
1% = $500
Step 2
Calculate 100% (original)
If 1% = $500
100% = $500 × 100
100% = $50,000
Therefore, Fred Bloggs' annual salary before the increase was $50,000.
 Basic mathematics Percentages and ratios
Find the final value of A, given that after a percentage increase/decrease of B% it is
equal to A1
If sales receipts in year 1 are $500,000 and there was a percentage decrease of 10% in year 2, what are the
sales receipts in year 2?

%
Sales receipts – year 1 (original) 100
Percentage decrease 10
Sales receipts – year 2 (final) 90
 Basic mathematics Percentages and ratios
Find the final value of A, given that after a percentage increase/decrease of B% it is
equal to A1
Step 1
Calculate 1%
If 100% = $500,000
1% = $5,000
Step 2
Calculate 90% (original)
If
1% = $5,000
90% = $5,000 × 90
90% = $450,000
Therefore, sales receipts in year 2 are $450,000.
 Basic mathematics Percentages and ratios
Discounts
Three years ago a retailer sold action man toys for $17.50 each. At the end of the first year he increased
the price by 6% and at the end of the second year by a further 5%. At the end of the third year the selling
price was $20.06. The percentage price change in year three was

Selling price at end of year 1 =$17.50 × 1.06 =$18.55

Selling price at end of year 2 =$18.55 × 1.05 =$19.48
Change in selling price in year 3 = $(20.06 – 19.48) = $0.58
∴ Percentage change in year 3 was $0.58 /$19.48 × 100% = 2.97%, say 3%
 Basic mathematics Percentages and ratios
1.Delilah's Dresses sells a dress at a 10% margin. The dress cost the shop $100. Calculate
the profit made by Delilah's Dresses.
 Basic mathematics Percentages and ratios

2.During a certain year the company declares a profit of $15.8 m, where as in

the previous year the profit had been $14.1 m. what percentage increase in
profit does this represent?

3.If this year profit is $6.2 m, and if the increase from last year is known to have
been 7.5%, what was last year profit?
Basic mathematics Percentages and ratios

During a special one-day sale, 600 customers bought the on-sale

pizza. Of these customers, 20% used coupons. The manager will run
the sale again the next day if more than 100 coupons were used.
Should she run the sale again?
Basic mathematics Percentages and ratios
If 66 2/3% of the 900 employees in a company choose the Preferred Provider
insurance plan, how many people from that company are enrolled in the plan?
 Basic mathematics Percentages and ratios
: A number is first decreased by 15%, and then it is further decreased by 20%. The
original number has been altogether decreased by?

– 32%
Here, the negative sign indicates decrement. Hence, the net decrease is
32%
 Basic mathematics Percentages and ratios
1. At the Evans Formal Wear department store, all suits are
reduced 20% from the retail price. If Charles Stewart
purchased a suit that originally retailed for $258.30, how
much did he save?
2. The price of a new Lexus is $53,444. The previous year’s
model cost $51,989. What is the amount of increase?
$1455
 Basic mathematics Percentages and ratios
3. If the previous year profit is $7.8 m, and if the increase in
profit is known to have been 12.5%, what was current year
profit? $8.775

4. Marilyn Bauer earns $62,870 and gets a 4.3% raise. How

much is her new salary?

5. Shares of McDonald’s, the world’s largest hamburger

restaurant chain, rose 51% this year. Find the new share
price if the stock sold for $24.25 last year.
Basic mathematics Percentages and ratios
6. You know that a DVD is reduced 25% and the amount of
reduction is $6.25. Find the original price and the
discounted price of the movie.
Basic mathematics Ratios
A ratio shows how something should be divided up. The relative shares are
usually expressed as whole numbers (but not necessarily) and they are
separated by colons. For ex:- 2:3:5.

In simple words, the ratio is the number that can be used to express one
quantity as a fraction of the other ones.
The two numbers in a ratio can only be compared when they have the same unit. We make
use of ratios to compare two things. The sign used to denote a ratio is ‘:’.

Hence, the ratio can be represented in three different forms, such as:

● a to b
● a:b
● a/b
Basic mathematics Ratios
Key Points to Remember:

● The ratio should exist between the quantities of the same kind
● While comparing two things, the units should be similar
● There should be significant order of terms
● The comparison of two ratios can be performed, if the ratios are
equivalent like the fractions
Basic mathematics Ratios and proportions
Ratio Formula

● Assume that, we have two quantities (or two numbers or two entities)
and we have to find the ratio of these two, then the formula for ratio is
defined as;
● a: b ⇒ a/b
● where a and b could be any two quantities.
● Here, “a” is called the first term or antecedent, and “b” is called the
second term or consequent.
Basic mathematics Ratios and proportions
Ratio Formula

● Example: In ratio 4:9, is represented by 4/9, where 4 is antecedent

and 9 is consequent.
● If we multiply and divide each term of ratio by the same number
(non-zero), it doesn’t affect the ratio.
● Example: 4:9 = 8:18 = 12:27
Basic mathematics Ratios and proportions

In our daily life, we use the concept of ratio and proportion such as in
business while dealing with money or while cooking any dish, etc.
Proportion is an equation that defines that the two given ratios are
equivalent to each other.
In proportion, if two sets of given numbers are increasing or decreasing in
the same ratio, then the ratios are said to be directly proportional to each
other.
In simple words, it compares two ratios. Proportions are denoted by the symbol ‘::’ or
‘=’.
Basic mathematics Ratios and proportions
● Now, let us assume that, in proportion, the two ratios are a:b &
c:d. The two terms ‘b’ and ‘c’ are called ‘means or mean
term,’ whereas the terms ‘a’ and ‘d’ are known as ‘extremes
or extreme terms.’
● a/b = c/d or a : b :: c : d
● Example: Let us consider one more example of a number of
students in a classroom. Our first ratio of the number of girls to
boys is 3:5 and that of the other is 4:8, then the proportion can
be written as:
● 3 : 5 :: 4 : 8 or 3/5 = 4/8
● Here, 3 & 8 are the extremes, while 5 & 4 are the means.
Basic mathematics Ratios and proportions
Example 1:
Are the ratios 4:5 and 8:10 said to be in Proportion?
Solution: 4:5= 4/5 = 0.8 and 8: 10= 8/10= 0.8
Since both the ratios are equal, they are said to be in proportion.
Example 2:
Are the two ratios 8:10 and 7:10 in proportion?
Solution:
8:10= 8/10= 0.8 and 7:10= 7/10= 0.7
Since both the ratios are not equal, they are not in proportion.
 Basic mathematics Ratios and proportions

3.Given ratio are- a:b = 2:3

b:c = 5:2
c:d = 1:4

Find a: b: c:d

Solution: Multiplying the first ratio by 5, second by 3 and third by 6, we have

a:b = 10: 15

b:c = 15 : 6
c:d = 6 : 24

In the ratio’s above, all the mean terms are equal, thus a:b:c:d = 10:15:6:24
 Basic mathematics Ratios and proportions

3.Findthe value of a : b : c : d, if a : b = 2 : 3, b : c = 4 : 5
and c : d = 6 : 7

Solution:

a : b : c : d = 16 : 24 : 30 : 35
 Basic mathematics Ratios and proportions
The earnings of Rohan is 12000 rupees every month and Anish is
191520 per year. If the monthly expenses of every person are around
9960 rupees. Find the ratio of the savings.
 Basic mathematics Ratios and proportions
If monthly salary of A,B,C is in proportion of 2:3:5.If C’s monthly salary
is Rs.12000 more than of A’s then B’s annual salary is:
There exists 45 people in an office. Out of which female employees are 25 and the
remaining are male employees. Find the ratio of a)The count of females to males,b]
The count of males to females.

Two numbers are in the ratio 2 : 3. If the sum of numbers is 60, find the
numbers.
 Basic mathematics Ratios and proportions
Of the three numbers the ratio of the first and the second number is 8:9 and
that of the second and third is 3:4.If the product of the first and the third
number is 2400,then the second number is ?

The ratio of three number si ½: ⅔: ¾.The difference between the

smallest and the largest number is 36.Find the three numbers.
 Solving the Equations
Rule for solving an Equation
● Unknown variable = something with just numbers in it, which we can work out.
● do the same thing to both sides of the equal sign so the 'scales' stay balanced.
The two sides are equal, and they will stay equal so long as you treat them in
the same way.

Write a formula
For a business, profit = revenue – costs.
Since revenue = selling price × units.What is the formula for profit?use
variables.
 Solving the Equations
1.If the selling price is $5,units sold is 30 and the cost is $118,find the profit using
the formula.

$32

2.Solve for x in the equation 450 =3x + 72

3.Given ,p=su-c.find a formula to find s.

4.Given that Get an equation giving x in terms of y.

5.Find x
 Manipulating inequalities
An inequality is a statement that shows the relationship between two (or
more) expressions with one of the following signs: ⩾,⩽,<,>. We can solve
inequalities in the same way that we can solve equations.
The one thing that you’ve got to remember is that if you multiply/divide
by a negative number then switch the direction of
the inequality.

Inequalities are used in a short-term decision making technique called linear

programming.

To represent situations where resources are limited