In elimination method 2 given linear equation are reduced to a linear equation in SOLVING QUADRATIC EQUATION BY QUADRATIC FORMULA

one unknown by eliminating one of the unknowns and then solving for the other
unknown.

SIMULTANEOUS LINEAR EQUATIONS IN THREE UNKNOWN

Solving for simultaneous linear equation in three unknown can be done by

NUMERICAL EXPRESSIONS AND EQUATIONS (C1)
elimination, substitution and cross multiplication. It is done by reducing 3
EQUATIONS equations with 3 unknowns to 2 equations with 2 unknowns and 1 equation with 1
unknown.
An equation is a statement of equality between two expressions. It contains one or
more derivatives. QUADRATIC EQUATION
TYPES OF EQUATIONS In mathematics, a quadratic equation is a polynomial equation of the second
(There are many types of mathematical equations. Some of them are given below.)
degree. The general form is ax2 + bx + c = 0.
1. Linear Equations y = mx + b DISCRIMINANT
2. Quadratic Equations y = ax2 + bx + c SOLVING QUADRATIC EQUATION BY FACTORIZATION METHOD
3. Exponential Equations y = abx The process of writing an expression as a product of two or more common factors
4. Cubic Equations y = ax3 + bx2 + cx + d
is called the method of factorization.
PROPERTIES OF EQUATIONS
STEPS:
 Any quantity can be added to both sides.
 Any quantity can be subtracted from both sides. 1. Convert the quadratic equation into standard form i.e. ax 2 + bx + c = 0
 Any quantity can be multiplied to both sides. where a ≠ 0
 Any nonzero quantity can divide both sides. 2. Multiply the coefficient of x2 by constant terms, and we get a × c = ac
 Generally, any function can be applied to both sides. 3. Now try to find two numbers whose product is ac and sum or difference is
LINEAR EQUATIONS equal to b (coefficient of x)
4. Factorize the given expression on L.H.S.
A linear equation is an equation in which the highest power of the variable is 5. Equate each factor equal to zero
always 1. It is also known as a one-degree equation. 6. We get the required roots, as, x1, x2
PROBLEMS ON BUSINESS APPLICATIONS
SIMPLE LINEAR EQUATIONS
REVENUE, COST AND PROFIT
Simple linear equations are first degree equation in which one variable is unknown.
Revenue Function: R(x) = (unit price) × x
SIMULTAMEOUS LINEAR EQUATION IN TWO UNKNOWNS
Cost Function: C(x) = (variable cost) × x + (fixed cost)
Simultaneous equations are a set of equations containing multiple variables.
General form of linear equation in two unknowns x and y is ax + by + c = 0. Profit Function: P(x) = R(x) – C (x)
Methods of linear equation in two unknowns are: (i) Elimination Method, (ii)
BREAK EVEN POINT
Substitution Method and (iii) Cross Multiplication Method.

ELIMINATION METHOD

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A breakeven point is a point at which there is no profit, there is no loss. Cost are A matrix is known as lower triangular matrix if all the elements above the
equal to revenue R(x) = C(x) 5. UNIT MATRIX OR IDENTITY MATRIX leading diagonal are ZERO.

MATRICES (C2) 3 0 0

MATRIX
It is a square matrix with 1 on the principal diagonal and zeros elsewhere. A
unit matrix of order n is denoted by In or simply I.
Example:
[ 1
2
8 0
10 7
] is a lower triangular matrix of order 3

Example: I1 = [𝟏 𝟎] is a unit matrix of order 2.

𝟎 𝟏
Matrix is a rectangular arrangement of numbers or symbols enclosed by a pair of 10. SUB MATRIX
1 0 0
brackets. Plural of matrix is matrices. The term matrix was first used in 1850 by J.J.
SYLVESTER.
I2 = [ ] 0 1 0
0 0 1
Is a unit matrix of order 3.
The matrix obtained by deleting one or more rows or columns or both of a
matrix is called its SUB MATRIX.
TYPES OF MATRICES

1. ROW MATRIX: 6. DIAGONAL MATRIX 11. EQUAL MATRIX

A square matrix in which every non-diagonal element is zero is called a Two matrices are said to be equal if:
A matrix which has only one row is called a row matrix or row vector.
diagonal matrix.  The order of the both the matrices is same;
Example: [𝟓 𝟑 𝟏 𝟕] is a row matrix of order 1×4.
3 0 0  Corresponding elements in both the matrices are equal
2. COLUMN MATRIX Example: [ 0 8 0
0 0 7
] is a diagonal matrix of order 3
12. IDEMPOTENT MATRIX
A matrix which has only one column is called a column matrix or a column
vector. 7. SCALAR MATRIX A square matrix is said to be idempotent if A = A2.

Example: [] 7
2
5
is a row matrix of order 3×1
A diagonal matrix whose leading diagonal elements are all equal is called a
scalar matrix.
MATRIX OPERAIONS

 Addition of matrices
3. ZERO MATRIX OR NULL MATRIX Example: A = [ 3 ], B = [𝟐
𝟎
𝟖
𝟐
] C = [ 21 9 1
4 21 0
3 6 21 ] is a scalar matrix of 

Subtraction of matrices
Multiplication of a matrix by a Scalar
If every element of m × n matrix is zero, the matrix is called zero matrix or
order 1,2 and 3 respectively.  Multiplication of Two Matrices

null matrix. Example: [𝟎 𝟎] is a matrix of order 2×2

𝟎 𝟎 8. UPPER TRIANGULAR MATRIX
PROPERTIES OF MULTIPLICATION OF MATRICES
4. SQUARE MATRIX AND RECTANGULAR MATRIX A matrix is known as upper triangular matrix if all the elements below the 1. THE ASSOCIATIVE LAW: For any three matrices A, B and C. We have (AB) C =
leading diagonal are ZERO. A (BC), whenever both sides of the equality are defined.
If the number of rows and columns in a matrix are same, such a matrix is
called a square matrix; otherwise it is called a rectangular matrix. 5 9 8

Example: [𝟒 𝟗] is a square matrix of order 2.

𝟔 𝟖
Example: [0
0
8 0
0 7
] is a upper triangular matrix of order 3. 2. THE DISTRIBUTIVE LAW: For three matrices A, B and C.
i) A (B+C) = AB + AC
ii) (A+B) C = AC + BC, whenever both sides of equality are defined.

[ ]
3 9 5 9. LOWER TRIANGULAR MATRIX
1 8 0
is a square matrix of order 3.
9 4 7

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 3. THE EXISTENCE OF MULTIPLICATIVE IDENTITY: For every square matrix A, CRAMER’S RULE
there exist an identity matrix of same order such that IA = AI = A.
Cramer’s rule is one of the important methods applied to solve a system of PROGRESSION
equations. In this method, the value of the variables in the system are to be
A progression is defined as a series of numbers arranged in a predictable pattern. It
calculated using the determinants of matrices. Thus, Cramer’s rule is also known as
is a type of number set which follows certain definite rules. Progression can be
TRANSPOSE OF A MATRIX the determinant method.
generally classified into three different types, such as Arithmetic Progression,
The matrix obtained by interchanging rows and columns of a matrix is called Geometric Progression and Harmonic Progression.
transpose. Transpose of a matrix A is denoted by At or Aʹ .
ARITHMETIC PROGRESSION (AP)
PROPERTIES OF TRANSPOSE OF MATRICES SEQUENCE, SERIES AND PROGRESSION (C3)
An arithmetic progression is a sequence of numbers such that the difference
1. (Aʹ) ʹ = A between the consecutive terms is constant. It is also called Arithmetic Sequence.
2. (kA) ʹ = kAʹ (where k is any constant)
GEOMETRIC PROGRESSION (GP)
3. (A + B) ʹ = Aʹ + Bʹ SEQUENCE
4. (AB) ʹ = Bʹ Aʹ A geometric progression, also known as a geometric sequence, is sequence of
Sequence is an ordered list of an object or event.
numbers where each term after the first is found by multiplying the previous one
SYMMETRIC MATRIX FINITE SEQUENCE by a fixed non zero number is called common ratio.
Any matrix A is called symmetric if Aʹ = A
A sequence containing finite number of terms is called finite sequence (Example: 1, HARMONIC PROGRESSION (HP)
SKEW SYMMETRIC MATRIX 2, 3, 4)
A harmonic progression is defined as a sequence of real numbers which is
A matrix A is called skew symmetric matrix if Aʹ = -A INFINITE SEQUENCE determined by taking the reciprocals of the arithmetic progression which does not
contain 0.
DETERMINANT OF MATRIX A sequence which is not containing finite sequence is called infinite sequence (1, 2,
3, 4, 5, …...)
The determinant of a matrix is the scalar value or number calculated using a square
matrix. The square matrix could be 2 × 2, 3 × 3, 4 × 4, or any type, such as n × n, SERIES
INTEREST AND TIME VALUE (C4)
where the numbers of column and rows are equal.
The cumulative sum of given sequence of terms is called series.
CONCEPT OF INTEREST
SINGULAR AND NON SINGULAR MATRICES
FINITE SERIES
It is the price paid by the borrower of money to its lender. According to Marshall
Any square matrix A is singular if ‫׀‬A‫ = ׀‬0. The matrix A is non-singular if ‫׀‬A‫ ≠ ׀‬0. Finite series means summation of a sequence that has an end. “Interest is the price paid for the use of capital in any market.”

ADJOINT OF A MATRIX INFINITE SERIES SIMPLE INTEREST (SI)

The adjoint of a matrix A is the transpose of the co-factor matrix of A. It is denoted Infinite series means summation of a sequence that has no end. When interest is calculated for every period only on the principal then the total
by adj A. An adjoint matrix is also called an adjugate matrix. interest gained on all the period is called simple interest.
SEQUENCES SERIES
RANK OF A MATRIX Set of elements that follow a pattern Sum of elements of the sequence COMPOUND INTEREST (CI)
Order of elements is important Order of elements is not so important
The maximum number of its linearly independent columns or rows of a matrix is Compound interest the interest for one period is compounded to the principal to
Finite sequence: 1, 2, 3, 4 Finite series: 1+2+3+4
called rank of a matrix. get the principal for the next period. The time period for compounding the interest
Infinite sequence: 1, 2, 3, 4,…… Infinite series: 1+2+3+4+……
may be annual, semi-annual or any other regular time period.

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EFFECTIVE RATE (EFFECTIVE YIELD)  It should be easy to calculate and simple to understand. DEMERITS OF AM
 It should be clearly defined by a mathematical formula.
The effective rate is the actual rate that you earn on an investment or pay on a  It is highly affected by extreme values.
 It should not be affected by extreme values.
loan after the effects of compounding frequency are considered.  It can rarely be identified by inspection.
 It should be based on all the observations.
 It cannot average the ratios and percentages properly.
PRESENT VALUE (PV)  It should be capable of further mathematical treatment.
 It cannot be computed accurately if any item is missing.
 It should have sample stability.
Present value is the current value of a future sum of money or stream of cash flows  In some cases, A.M. does not represent the original item. For example, the
given a specified rate of return. MEASURES OF CENTRAL TENDENCY average number of patients admitted to a hospital is 10.7 per day.

ANNUITY A measure of central tendency is a summary measure that attempts to describe a GEOMETRIC MEAN
whole set of data with a single value that represents the middle or centre of its
An annuity is a series of equal payments or receipts that occur at evenly spaced Geometric mean is the nth positive root of the product of ‘n’ positive given values.
distribution.
intervals. Leases and rental payments are examples.
MERITS OF GM
TYPES OF AVERAGES OR MEASURES OF CENTRAL TENDENCY
PERPETUITY
 A geometric mean is based upon all the observations.
 Arithmetic mean
Perpetuity is an annuity that occurs indefinitely.  It is rigidly defined.
 Geometric mean
 The fluctuations of the observations do not affect the geometric mean.
FUTURE VALUE (FV)  Harmonic mean
 It gives more weight to small items.
 Median
Future value, on the other hand, can be defined as the worth of that asset or the
cash but at a particular date in the future and that amount will be equal in terms of  Mode DEMERITS OF GM
value to a particular sum in the present. ARITHMETIC MEAN (AM)  A geometric mean is not easily understandable by a non-mathematical
COMPOUND ANNUAL GROWTH RATE (CAGR) person.
The mostly commonly used measure of central tendency is arithmetic mean, or
 If any of the observations is zero, the geometric mean becomes zero.
Compound annual growth rate (CAGR) is the rate of return that would be required simply the mean. The mean is the sum of the values divided by the total number of
items in the set.  If any of the observation is negative, the geometric mean becomes
for an investment to grow from its beginning balance to its ending balance. imaginary.
EQUATED MONTHLY INSTALLMENT (EMI) WEIGHTED ARITHMETIC MEAN
HARMONIC MEAN
An equated monthly installment (EMI) is a fixed payment amount made by a Arithmetic mean computed by considering relative importance of each items is
called weighted arithmetic mean. Harmonic mean is the reciprocal of the arithmetic mean of the reciprocals of the
borrower to a lender at a specified date. given set of observations.
MERITS OF AM
MERITS OF HM
 It is rigidly defined.
 A harmonic mean is rigidly defined.
 It is easy to calculate and simple to follow.
 It is based upon all the observations.
 It is based on all the observations.
DESCRIPTIVE STATISTICS (C5)  The fluctuations of the observations do not affect the harmonic mean.
 It is determined for almost every kind of data.
 More weight is given to smaller items.
 It is finite and not indefinite.
 It can also be measured when a series holds any negative value.
 It is readily put to algebraic treatment.
 It produces a skewed distribution of a normal one.
DESIRABLE QUALITIES OF A GOOD AVERAGE  It is least affected by fluctuations of sampling.
 It is able to advance the algebraic method.

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DEMERITS OF HM DEMERITS OF MODE  QUARTILE DEVIATION (QD)
The quartiles are values that divide a list of numbers into quarters. The
 It cannot be able to calculate if any of the items is zero.  Not based on all the observations of the series.
quartile deviation is half of the distance between the third and the first
 The harmonic mean is greatly affected by the values of the extreme items.  Sometimes it is indeterminate or ill defined.
quartile.
 The calculation of the harmonic mean is cumbersome, as it involves the  Not rigidly defined.
calculation using the reciprocals of the number.  Affected by the fluctuations of sampling. MERITS
 Complex grouping process.  Rigidly defined.
MEDIAN
 Not capable of algebraic treatment.  Easy to calculate and understand.
The middle observation in a set of data that is sorted in either ascending or  Better than range.
MEASURES OF DISPERSION OR VARIATION
descending order is called the median.
The degree to which numerical data tend to spread about an average value is called DEMERITS
MERITS OF MEDIAN
dispersion or variation of the data.  Cannot be used for further algebraic treatment.
 Easy to calculate and understand.  It is not based on all observations.
There are two types of measure of dispersion: (1) Absolute and (2) Relative.
 Not affected by extreme value.  Highly affected by sampling fluctuation.
 Rigidly defined. 1) Absolute Measures of Dispersion:
 Best average in the case of qualitative data. An absolute measure of dispersion contains the same unit as the original data
 Useful in case of an open ended distribution. set. The absolute dispersion method expresses the variations in terms of the  MEAN DEVIATION (MD)
 Represented graphically. average of deviations of observations like standard or means deviations. It The average of number is known as the mean and the arithmetic mean of
includes range, quartile deviation, mean deviation and standard deviation. the absolute deviations of the observations from a measure of central
DEMERITS OF MEDIAN  RANGE tendency is known as the mean deviation (also called mean absolute
 Arrangement of data is necessary. It is simply the difference between the maximum value and the minimum deviation).
 Not based on all the observations. value given in a data set.
 Affected by fluctuations in sampling. MERITS
MERITS  It is rigidly defined.
 Lack of further algebraic treatment.
 It is easy to calculate.  Less affected by extreme values.
MODE  Simple to understand.  Useful in fields like Economics, Commerce etc.
 Range is widely used in statistical quality control.  It is based on all observations.
The mode is the most frequently occurring value in the data set.
DEMERITS DEMERITS
MERITS OF MODE
 It is not based on all observation.  Not applicable for open end class series.
 Easy to calculate & simple to understand.  It is difficult to understand.
 It cannot be calculated in case of open ended series.
 It is a representative value.  It is complex method.
 Range depends on extreme values of the series. So it is affected
 Not affected by the value of extreme items.  STANDARD DEVIATION (SD)
when the sample changes.
 No need of complete data. The standard deviation is defined as the positive square root of the mean
 Unstable measure.
 Useful for both quantitative & qualitative data. of the square deviations taken from arithmetic mean of the data.
 It can be determined graphically with the help of histogram.
MERITS
 It is rigidly defined.

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 It is based on all observation. KURTOSIS

 It is suitable for algebraic operation and statistical analysis. Measures of Dispersion
Kurtosis is a statistical measure that calculates the degree of peakedness of a
 It is less affected by the sampling fluctuation.
variables probability distribution.
DEMERITS
Absolute Measures Relative Measures LEPTOKURTIC, PLATYKURTIC AND MESOKURTIC
 It is complex method.
 It is difficult to understand. The degree of kurtosis of a distribution is measured relative to that of a normal
 It is affected by the extreme values. curve. The curves with a greater peak than the normal curve are called
Range Coefficient of Range “Leptokurtic”. The curves which are flatter than the normal curve are called
STEPS IN CALCULATING STANDARD DEVIATION “Platykurtic”. The normal curve is called “Mesokurtic”. The below figure describes
 STEPS FOR GROUPED DATA Quartile Deviation Coefficient of QD the three different curves.
 Take the deviation of the item from assumed mean and denote it by
‘d’.
 Multiply the deviation by the respective frequencies and obtain the Mean Deviation Coefficient of MD
total.
 Obtain the squares of the deviation, i.e., d2. Standard Deviation Coefficient of
 Multiply the squared deviation by respective frequencies and obtain variation
the total ∑ ʄ𝑑 2.
 Substitute the values in the formula.
SKEWNESS
 STEP DEVIATION METHOD (STEPS)
 Find the mid-points of various classes Lack of symmetry or measure of asymmetry is called skewness. Skewness can be
 Take the deviation of these mid points from an assumed mean and positive or negative.
denote these deviations by ‘d’.
POSITIVE SKEWNESS
 Take a common factor and divide the ‘d’ with it and find dʹ.
 Multiply the frequency of each class with these deviation and obtain If the frequency curve has longer tail to right the distribution is known as positive
∑ ʄ𝑑ʹ skewness. Mean>Median>Mode.
IMPORTANT EQUATIONS
 Square the deviations and multiply them with the respective
NEGATIVE SKEWNESS
frequencies of each class and obtain ∑ ʄ𝑑ʹ2 −𝒃±√𝒃𝟐 −𝟒𝒂𝒄
1. Quadratic Formula =
If the frequency curve has longer tail to left the distribution is known as negative 𝟐𝒂
2. nth term of an AP = a + (n - 1) d
skewness. Mean<Median<Mode. 𝒏
2) Relative Measure of Dispersion: 3. Sum of First n Terms of an AP = [ 𝟐𝒂 + (𝒏 − 𝟏)𝒅 ]
𝟐
The relative measures of dispersion are used to compare the distribution of two 4. nth term of a GP = an = ar n-1
or more data sets. This measure compares values without units. Common 𝒂(𝒓𝒏−𝟏 )
5. Sum of n term of GP =
relative dispersion methods include: 𝒓−𝟏
𝟏
 Coefficient range 6. nth term of a HP =
𝒂+(𝒏−𝟏)𝒅
 Coefficient of quartile deviation 𝟏 𝟐𝒂+𝟐𝒏−𝟏)𝒅
7. Sum of n terms(HP) = Sn = 𝒍𝒏 { }
 Coefficient of mean deviation 𝒅 𝟐𝒂−𝒅
8. Simple interest
 Coefficient of variation
Amount = Principal + Simple Interest (A=P+S.I)

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 𝑷×𝑵×𝑹 25. Geometric Mean: ∆𝟏
9. SI (Simple Interest) =
𝟏𝟎𝟎 30. Mode (Continuous Series) =𝑳+ ×𝒊
𝟏𝟎𝟎×𝑺𝑰
∆𝟏 ×∆𝟐
10. R =
𝑷×𝑵
𝟏𝟎𝟎×𝑺𝑰 𝑺
11. P = 31. Coefficient of Standard Deviation =
𝑷×𝑹 𝑿
𝟏𝟎𝟎×𝑺𝑰
12. N =
𝑷×𝑹
𝑹
13. Compound Interest = 𝑷 (𝟏 + )n or CI = A – P 26. Harmonic Mean:
𝟏𝟎𝟎 32. Range = L-S
𝑭𝑽
14. Present Value =
(𝟏+𝒊)𝒏
𝑳−𝑺
15. Present Value of an Annuity PV (A) = × (𝟏 −
𝑨 𝟏
) 33. Coefficient of Range =
𝒊 (𝟏+𝒊)𝒏 𝑳+𝑺
𝑨 𝟏+𝒈 n
16. Present Value of a Growing Annuity PV = × [𝟏− ( ) ] 27. Median:
(𝒊−𝒈) 𝟏+𝒊
𝑨
𝑛 + 1 th item
17. Present value of a Perpetuity PV (P) = = 𝑸𝟑− 𝑸𝟏
𝒊 2 34. Quartile Deviation=
𝑨 𝟐
18. Present value of growing perpetuity PV(GP) =
𝒊−𝒈
𝑺𝑫
19. Future value of a Present Sum FV = PV × (1+i)n 𝒏 35. Coefficient of Variance = × 𝟏𝟎𝟎
− 𝒄𝒇 𝑴𝑬𝑨𝑵
Median from grouped data = 𝑳+ 𝟐
×𝒊
(𝟏+𝒊) n-1 𝒇
20. Future value of an Annuity FV(A) = A × 36. Standard Deviation
𝒊 28. Quartile from individual observation (Ungrouped Data) (i)Actual Mean Method or Direct Method
𝒏 𝑭𝑽
21. Compound Annual Growth Rate (CAGR) √ −𝟏 𝑛+1
𝑷𝑽 Q1 = Value of ( ) th item
4

(𝟏+𝑹)𝑵
22. Equated Monthly Installments (EMI) 𝑷 × 𝑹 × 𝑛+1
(𝟏+𝑹)𝑵−𝟏 Q2 = Value of 2 ( ) th item
4

23. Calculation of Mean: 𝑛+1

Q3 = Value of 3 ( ) th item
4

Quartile for grouped frequency

𝒏
− 𝒄𝒇
𝑸𝟏 = 𝑳 + 𝟒 ×𝒊
𝒇

𝟑𝒏
− 𝒄𝒇 Prepared By:
𝑸𝟑 = 𝑳 + 𝟒
×𝒊
𝒇 SREEJITH
(EDUCATIONAL CORNER)
24. Weighted Arithmetic Mean:

𝑸𝟑− 𝑸𝟏 Note: This is only a short note of the theory part of BASIC NUMERICAL METHODS. For exam
29. Coefficient of Quartile Deviation =
𝑸𝟑 −𝑸𝟏
preparation, please also refer other available materials including problems according to your syllabus

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