Term Paper On

“Applications of Matrices in Business”

Course Name: Mathematics for Decision

Course Code: BUS-7102

SUBMITTED TO
Dr. Mohammed Nasir Uddin
Faculty of Business Studies
Bangladesh University of Professionals

SUBMITTED BY
Md. Jubaer Ahmed

Roll: 23230341074
Batch: 34, Section: B
MBA Professional
Bangladesh University of Professionals
Date of Submission: April 25, 2024
 Letter of Transmittal

Date: April 25, 2024

Dr. Mohammed Nasir Uddin,
Faculty of Business Studies,
Bangladesh University of Professionals (BUP)
Mirpur Cantonment, Dhaka-1216

Subject: Submission of the Term Paper On “Applications of Matrices in Business”

Dear Sir,

It’s my pleasure in preparing the report on “Applications of Matrices in Business”. You assigned
me to prepare this report. I am really thankful to you for giving this opportunity to undergo such
an experience. I have tried my level best to gather the possible information regarding this topic. I
was very much concern about the collection of information from various sources as well as your
instructions and guidelines. I sincerely hope that this report will get your approval and its appraisal
would demonstrate my ability to prepare a formal report. I would be glad to furnish you with
clarifications, if required.

Thanking you,
Sincerely Yours

Md. Jubaer Ahmed

Roll: 23230341074
Batch: 34
 Acknowledgement

I am very much grateful to Professor Dr. Mohammed Nasir Uddin sir, Faculty of Business Studies,
Bangladesh University of Professionals (BUP). I would like to thank him for his outstanding
dedication, supervision & inspiration. He has helped in every step to complete this report.
 Executive Summary

Matrices are one of the most powerful tools in Mathematics. I have prepared this report, “Matrices
and its Application”, to describe about matrices and its application in our life.
The origins of mathematical matrices lie with the study of systems of simultaneous linear
equations. An important Chinese text from between 300 BC and AD 200, Nine Chapters of the
Mathematical Art (Chiu Chang Suan Shu ), gives the first known example of the use of matrix
methods to solve simultaneous equations.
Matrices have been using widely in various sectors of modern life. Matrices are used in inventory
model, electrical networks, and other real life situations. In mathematics, a matrix is a rectangular
array of numbers, symbols, or expressions, arranged in rows and columns. The individual items in
a matrix are called its elements or entries. Matrix is used quite a bit in advanced statistics.
In our study we have focused various types of matrices. The major types of Matrices are Row
matrix, Column matrix, Rectangular matrix, Square matrix, Diagonal matrix, Identity matrix,
Transpose matrix etc.
The study also covers the application of Matrices in Mathematics and real life in different areas of
business and science like budgeting, sales projection, cost estimation etc. Also many physical
operations such as magnifications, rotations and reflection through a plane can be represented
mathematically by matrices. This mathematical tool is not only used in certain branches of sciences
but also in genetics, economics, sociology, modern psychology and in industrial management.
The report ends with some findings of analysis and recommendations regarding its applications.
Along with its immeasurable benefits it has some limitation also. Some general limitations of
matrices are the followings: Complicated calculations. Difficulty in finding Determinant of a 4 *
4 matrix and more. Time consuming. Inappropriate and doubtful results. Lengthy procedure
involved. Tends to create confusion which increases the proportion of mistakes.
To be more benrficial with matrices and its application: It can be used for computer programming.
Can be used in business for budgeting, sales projection and cost estimation Scientist can use a
spreadsheet to analyze the result of experience Can be used to compute industry income tax. Can
be used to analysis production and labor cost in industry. Can be used in allocation of resources
and production scheduling.

I
 TABLE OF CONTENT

S. I. No. Particulars Page

No.
Executive Summary I
Table of Content II
1.0 1.0 Background of the Study 1
2.0 2.0 Objective of The Report 1
3.0 3.0 Methodology of the Study 2
4.0 4.0 Scope and Limitation of the Study 2
5.0 5.0 Matrix 3-4
6.0 6.0 Operations on Matrices 4-5
7.0 7.0 Applications of Matrices 5
8.0 8.0 Use of Matrices in Computer Graphics 5-6
9.0 9.0 Use of matrices in cryptography 6-8
10.0 10. Use of Matrices in Wireless Communication 8
11.0 11.0 Use of Matrices in Economics 8
12.0 12.0 Matrices for finding area of triangle 9
13.0 13.0 Matrices for collinear points 9
14.0 14.0 Matrices for Solution of Linear Equations 9

15.0 15.0 Matrices for Financial Records 11

16.0 16.0 Matrices for Engineering 11
17.0 17.0 Matrices for Physics 11
Conclusion 12

References 12

II
 1.0 Background of the Study

In mathematics, a matrix (plural matrices) is a rectangular array of numbers, symbols, or

expressions, arranged in rows and columns. The individual items in a matrix are called its elements
or entries. An example of a matrix with 2 rows and 3 columns is

Matrices of the same size can be added or subtracted element by element. But the rule for matrix
multiplication is that two matrices can be multiplied only when the number of columns in the first
equals the number of rows in the second. A major application of matrices is to represent linear
transformations. Another application of matrices is in the solution of a system of linear equations.

Applications of matrices are found in most scientific fields. In every branch of physics, including
classical mechanics, optics, electromagnetism, quantum mechanics, and quantum
electrodynamics, they are used to study physical phenomena, such as the motion of rigid bodies.
In computer graphics, they are used to project a 3-dimensional image onto a 2-dimensional screen.

2.0 Objective of The Report

The main objective of education is to acquire knowledge. There are two types of objectives of the
report. One is primary objective and the other is Secondary objective.
Primary Objective:
The primary objective of this report is to use the theoretical concepts, gained in the classroom
situations, in analyzing real life scenarios. so that it adds value to the knowledge base of us. This
is also a partial requirement of the fulfillment of the course.
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Secondary Objectives:
The secondary objectives are as follows:

1. To know the basic concept of matrices

2. To know the different operation of matrices
3. To know the historical background of matrices
4. To know the properties of Matrix operations
5. To know the different application of matrices

3.0 Methodology of the Study

The study is based on secondary data. The source of secondary data has been processed and
analyzed systematically.
Sources of Secondary data:
1. Text Books
2. Class Materials
3. Different report and research paper
4. Different websites

4.0 Scope and Limitation of the Study

The study focuses on the basics of matrices and the use of matrices. This paper also emphasizes on
the uses of matrix in different field like in science, engineering, accounting, economics, inventory,
business etc.
During the completion of this term paper following limitations of the study can be mentioned.
1. Time frame for the study was very limited.
2. Lack of available information for making comprehensive study
3. Lack of experiences has acted as constraints in the way of study
4. Lack of group study to complete the paper
5. No primary data are considered
It seems to us that this report is as a study report based on the existing information available on the
topic “Matrices and its Application in Business”
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 5.0 Matrix
Matrix is representation of data in form of rows and columns.

e.g.

A is a matrix representing four numbers in form of rows and columns. Matrices serve as
information processing tool to solve practical engineering problems.

Types of Matrices

The various types of Matrices are the followings.

 Row Matrix
A row matrix is formed by a single row.

 Column Matrix
A column matrix is formed by a single column.

 Rectangular Matrix
A rectangular matrix is formed by a different number of rows and columns, and its dimension is
noted as:
mxn.
 Square Matrix
A square matrix is formed by the same number of rows and columns. The elements of the form aii
constitute the principal diagonal. The secondary diagonal is formed by the elements with i+j = n+1.

 Zero Matrix
In a zero matrix, all the elements are zeros.
Upper Triangular Matrix
In an upper triangular matrix, the elements located below the diagonal are zeros
 Lower Triangular Matrix
In a lower triangular matrix, the elements above the diagonal are zeros
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 Diagonal Matrix
In a diagonal matrix, all the elements above and below the diagonal are zeros.
 Scalar Matrix
A scalar matrix is a diagonal matrix in which the diagonal elements are equal.

 Identity Matrix
An identity matrix is a diagonal matrix in which the diagonal elements are equal to 1.

 Transpose Matrix
Given matrix A, the transpose of matrix A is another matrix where the elements in the columns and
rows have switched. In other words, the rows become the columns and the columns become the
rows.

 Regular Matrix
A regular matrix is a square matrix that has an inverse.
 Singular Matrix
A singular matrix is a square matrix that has no inverse.

6.0 Operations on Matrices

Matrices can be added, subtracted and multiplied. Other than this matrix transpose, matrix ad joint,
inverse, conjugate, trans conjugate also operations on matrices. For addition and subtraction of
matrices order of two matrices must be same. Order of a matrix is representing number of rows
and number of columns of a matrix.

For multiplication of matrix A with matrix B that is for AB matrix number of columns of matrix
A must be equal to number of rows of matrix B. if AB is possible then BA may or may not be
possible. AB is not always equal to BA.

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 7.0 Applications of Matrices

Matrices have many applications in diverse fields of science, commerce and social science.
Matrices are used in
(i) Computer Graphics
(ii) Optics
(iii) Cryptography
(iv) Economics
(v) Chemistry
(vi) Geology
(vii) Robotics and animation
(viii) Wireless communication and signal processing
(ix) Finance ices

8.0 Use of Matrices in Computer Graphics

Earlier architecture, cartoon, automation was done by hand drawings but nowadays they are done
by using computer graphics. In video gaming industry matrices are major mathematical tool to
construct and manipulate a realistic animation of a polygonal figure. Computer graphics software
uses matrices to process linear transformations to translate images. For this purpose, square
matrices are very easily representing linear transformation of objects. Matrices are used to project
three dimensional images into two dimensional planes. In Graphics, digital image is treated as a
matrix to be start with.

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The rows and columns of matrix correspond to rows and columns of pixels and the numerical
entries correspond to the pixels’ color values. Using matrices to manipulate a point is common
mathematical approach in video game graphics Matrices are used to express graphs. Every graph
can be representing as a matrix each column and each row of a matrix is node and value of their
intersection is strength of the connection between them. Matrix operations such as translation,
rotation and sealing are used in graphics. For transformation of a point we use the equation.
TRANSFORMED POINT = TRANSFORMATION MATRIX * ORIGINAL POINT

9.0 Use of matrices in cryptography

Cryptography is the technique to encrypting data so that only the relevant person can get the data
and relate information. In earlier days, video signals were not used to encrypt. Anyone with
satellite dish was able to watch videos which results in the loss for satellite owners, so they started
encrypting the video signals so that only those who have videos cipher can have unencrypted the
signals. This encrypting is done by using an invertible key is not invertible then the encrypted
signals cannot be unencrypted and they cannot get back to original form. This process is done
using matrices. A digital audio or video signal is firstly taken as a sequence of numbers
representing the variation over time of air pressure of an acoustic audio signal. The filtering
techniques are used which depends on matrix multiplication. Consider the message “Do Not
Worry”. The message is converted into a sequence of numbers from 1 to
26. For space use digit 0.
i.e. Let

The message “DO NOT WORRY” can be encoded as sequence of numbers 4 15 0 14 15 20 0 23

15 18 18 25 This data is placed into matrix
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To encrypt this data invertible matrix is used; choose a matrix whose determinant in non-zero and
whose multiplication is possible with matrix A. The choice of this matrix depends on the person
who is encrypting data.
Suppose we use an invertible matrix

Now the message that will pass in air to the other person is 53 64 42 56 90 95 69 92 84 89 111
118. To read the original message one needs the key that is B and its inverse. There for to unencrypt
data first we will find B -1

The original message can be read by only that person who has this invertible key B. To get original
message we operate B-1 on AB =X

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There for matrix A is obtained back and message can be rewritten as 4 15 0 14 15 20 0 23 15 18
18 23.

10. Use of Matrices in Wireless Communication

Matrices are used to model the wireless signals and to optimize them. For detection, extractions
and processing of the information embedded in signals matrices one used. Matrices play a key role
in signal estimation and detection problems. They are used in sensor array signal processing and
design of adaptive filter. Matrices play a major role in representing and processing digital images.
We know that wireless and communication is important part of telecommunication industry.
Sensor array signal processing focuses on signal enumeration and source location applications and
presents a huge importance in many domains such as radar signals and underwater surveillance.
Main problem in sensor array signal processing is to detect and locate the radiating sources given
the temporal and spatial information collected from the sensors.

11.0 Use of Matrices in Economics

Matrix Cramer’s Rule and determinants are simple and important tools for solving many problems
in business and economics related to maximize profit and minimize loss. Matrices are used to find
variance and co- variance. Matrix Cramer’s Rule is used to find solutions of linear equations with
the help of matrix determinant. The equilibrium of markets in IS-LM model is solved by using
determinants and Matrix Cramer’s Rule.
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 12.0 Matrices for finding area of triangle

Matrices can be used to find area of any triangle whose vertices are given. Suppose vertices of the
triangle ∆ ABC are A (a, b), B (c, d) C (e, f). Then area of ∆ ABC is given by the following
determinant.

13.0 Matrices for collinear points

Matrices are used to test whether the given three points are collinear. If A (a, b), B (c, d) C (e, f)
are three given points in plane. Then these points are collinear if they are unable to form a triangle.
I.e. area of triangle formed by A, B, C should be zero.

14.0 Matrices for Solution of Linear Equations

Matrices are used to solve system of linear equations. Cramer’s rule is used for this purpose. What
is Cramer’s Rule? We can express system of linear equations in form of matrices If we have linear
equation ax+by=c
dx+ey=fthen we can express these equations in matrix form as AX=B

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Page –10
 15.0 Matrices for Financial Records
Matrices allow to represent array of many numbers as a single object and is denoted by a single
symbol then calculations are performed on these symbols in very compact form. The matrix
method of obtaining opening and closing balances for any accounting period is very efficient,
accurate and less time consuming.

16.0 Matrices for Engineering

Matrices applications involve the use of Eigen values and Eigen vectors in the process of
transforming a given matrix into a diagonal matrix. Linear algebra is useful tool for solving large
number of variables in such a short time. It is interesting to note that many of the calculus theorems
used in engineering classes are proved quickly and easily through linear algebra. Transformation
matrices are commonly used in computer graphics and image processing. Matrices are used in
computer generated images that has a reflection and distortion effect such as high passing through
ripping water. Used to calculate the electrical properties of a circuit with voltage and enrage,
resistance and to calculate battery power output. Matrices are used in realistic looking motion on
a two dimensional computer screen and calculations in algorithms that create Google page ranking.
They are also used for compressing electronic information and storing fingerprints information.
Errors in electronic transmissions are identified and corrected with the use of matrices. Movements
of the robots are programmed with the calculations of matrices rows and columns. The inputs for
controlling robots are based on calculations from matrices.

17.0 Matrices for Physics

Matrices are used in science of optics to account for reflection and for refraction. Matrices are also
useful in electrical circuits and quantum mechanics and register conversion of electrical energy.
Matrices are used to solve AC network equations in electric circuits.

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 Conclusion
There are numerous applications of matrices, both in mathematics and other sciences. Some of
them merely take advantage of the compact representation of a set of numbers in a matrix. For
example, in game theory and economics, the payoff matrix encodes the payoff for two players,
depending on which out of a given (finite) set of alternatives the players choose. In addition,
theoretical knowledge of properties of matrices and their relation to other fields, it is important for
practical purposes to perform matrix calculations effectively and precisely. Many problems can be
solved by both direct algorithms and iterative approaches. For example, finding eigenvectors can
be done by finding a sequence of vectors xn converging to an eigenvector when n tends to infinity.
Even matrices are very ancient mathematical concept but it has many applications in our life.

References
1. E. Ulrycho; Several real world applications of Linear Algebra Tools.
2. Loet Leydesdorff and Liwen Vaughan; Matrices and their Applications in Information Science;
Extending ACA to web environment, JASIST.
3. Xu Wang and Erchin Serpedin; An overview on the applications of Matrix Theory in wireless
communications.
4. Eva, Valentova & Klicova Determinants and Their use in Economics.
5. Ajogbeje, Okejames; The use of matrix Algebra of Accounting Transactions Based on the
Principle of Double Entry.
6. Will Hay; Applications of Matrices to engineering.
7. Ting Yip; Matrices in Computer Graphics, Math, 308A, 12/3
8. Athanasios Karamalis; Introduction to applied Matrix for computer Graphics and Image
Processing.
9. https://www.researchgate.net/publication/324679845_Applications_of_the_Matrix_of_Chan
ge__Evaluating_and_Managing_Business.

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