THE COPPERBELT UNIVERSITY

SCHOOL OF BUSINESS

BS/BF/HRM/BEC/BSP 140 - MATHEMATICAL ANALYSIS

Course Objectives
The course aims to provide an introduction to mathematical concepts and lay
down a foundation for applications of basic tools and techniques for various
areas of business such as economics, accountancy and the life and social
sciences.
To equip students with the necessary analytic and technical stills to handle
problems of a mathematical nature as well as practical problems.
Perform basic arithmetic operations and simplify algebraic expressions.
Solve equations in one unknown, including equations involving fractions.
Understand the terms domain and range of functions.
Sketch graphs of functions.
Plot linear demand, supply, cost and revenue functions.
Calculate the price elasticity of demand and supply for linear demand and
supply functions.
Analyse and illustrate graphically the effect of intervention in the goods
market (price ceilings and price floors).
Analyse and illustrate graphically the effect of taxes and subsidies in the
goods market.
Calculate and illustrate graphically break-even, profit and loss, consumer and
producer surplus.
Calculate the equilibrium conditions for the national income model and
illustrate equilibrium graphically.
Calculate and illustrate graphically the equilibrium values of national income
and interest rates based in the IS-LM model.
To enable the students understand the properties of functions and their
inverses.
Manipulate non-linear functions algebraically, particularly in economic
applications such as demand, supply, revenue, cost and profit.
Use exponentials and logs in a range of applications, such as production and
consumption.

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Manipulate non-linear functions algebraically, particularly in economic
applications such as demand, supply, revenue, cost and profit.
Use exponentials and logs in a range of applications, such as production and
consumption.
Solve problems based on arithmetic and geometric series and applications.
Calculate present and future values based on simple interest.
Calculate present and future values based on compound interest using various
conversion periods.
Solve for any of the four variables in the compound interest formula when the
values of the other three variables are given.
Calculate annual percentage rates, the future value of an asset using straight
line and depreciating balance depreciation.
Calculate NPV and IRR and use these as investment appraisal techniques.
Calculate the future value for an initial investment P 0 and annual deposits A 0 .
Calculate present and future values of ordinary annuities.
Calculate mortgage repayments and related problems.
Calculate the value of sinking funds and related problems.
Calculate the annual repayments and the NPV of investments in bonds.
Solve a system of linear equations by Gaussian elimination and
Gauss–Jordan elimination.
Evaluate 2 2 and 3 3 determinants.
Solve a system of linear equations using Cramer’s rule.
Calculate the inverse of a 2 2 and 3 3 matrix.
Solve a system of linear equations by the inverse matrix method.
Solve 3 3 input/output problems.
Use the algebra of limits.
Calculate the derivatives of a range of functions.
Apply the procedures of differentiation accurately, including implicit and
logarithmic differentiation.
Apply the differentiation procedures to solve related rates and extreme value
problems.
Calculate marginal and average functions.
Determine the maximum and minimum values.
Determine maximum and minimum values of revenue, profit, cost and other
economic functions.
Determine points of inflection and use these to describe curvature.
Use points of inflection in applications such as the point of diminishing returns.
Determine the point elasticity of demand and relationships between price
elasticity of demand and marginal revenue, total revenue and price changes.
Calculate first- and second-order partial derivatives.
Calculate differentials and incremental changes.
Calculate marginal functions and the law of diminishing returns.
Use partial derivatives to analyse the properties of production functions and
utility functions.

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 Calculate partial elasticities.
Calculate multipliers for the linear national income model.
Locate and determine the nature of stationary points for functions of several
variables.
Use Lagrange multipliers to determine maximum and minimum values for
functions of two variables subject to a constraint.
To enable the students understand the relationship between the derivative
and the definite integral as expressed in both parts of the Fundamental
theorem of Calculus.
Integrate standard functions and evaluate definite integrals of standard
functions.
Integrate functions of linear functions and evaluate their definite integrals.
Determine the net area enclosed between a curve and the lines x a and
x b.
Calculate the consumer and producer surplus and illustrate these graphically.
Integrate marginal functions to obtain the corresponding total function.
Perform accurately definite and indefinite integration, using parts, and
substitution.
Understand and apply the procedures for integrating rational functions.

Prescribed Textbook(s)
Introductory Mathematical Analysis for Business, Economics, and the Life and
Social Sciences, Ernest F Haeussler, Jr., Richard S Paul.
Mathematics for Economics and Finance, Methods and Modeling, Martin
Anthony and Norman Biggs.
Essential Mathematics for Economics and Business, Teresa Bradey and Paul
Patton.
Mathematical Analysis for Business, Economics, and the Life and Social
Sciences, Jagdish C Arya and Robin W Lardner.
Essential Mathematics for Economics, 2nd Edition, J Black and J F Bradley.
Calculus for Business and Economics, Tailoka F P.
Mathematical Analysis: Algebra, Trigonometry and calculus; Chaamwe
Nchimunya, Elizabeth Boby Samuel, Tailoka Frank Patson

Pre-requisites
O-Level Mathematics

Contact Hours
4 Hours Lectures 2 Hours Tutorials per week

GRADING
The course grade will be determined approximately as follows: -
Continuous Assessment 40%.
Final Examination 60%.

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THEME 1: SET THEORY
At the end of this theme, the student should be familiar with:
1. Introductory set theory
The empty and universal sets
Subsets
Union and Intersection of sets
Complement of a set
2. Sets of numbers
Integers
Rational and Irrational numbers
Real numbers
Properties of real numbers
Algebraic and order relations
Exponents and radicals(surds)

THEME 2: EQUATIONS AND INEQUALITIES

At the end of this theme, the student should be able to or be familiar with:
1. Arithmetic Operations
Perform basic arithmetic operations and simplify algebraic expressions.
Perform basic arithmetic operations with fractions.
Expressions, factorizing, fractions.
2. Equations
Solve equations in one unknown, including equations involving fractions
linear equations, quadratic equations.
Understand the meaning of no solution and infinitely many solutions.
3. Inequalities
Solve simple linear inequalities
Solve inequalities involving absolute value functions

THEME 3: FUNCTIONS AND GRAPHS

At the end of this theme, the student should be able to:
1. Basics of Functions and Their Graphs
Find the domain and range of a function.
Determine whether a relation is a function.
Determine whether an equation represents a function.
Graph functions by plotting points.
Identify the domain and range of a function from its graph.
Evaluate a function.

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 Identify intercepts from a function’s graph.
2. Special functions
Find and simplify a function’s difference quotient.
Understand and use piecewise functions.
Identify even or odd functions and recognize their symmetries.
Model data with linear functions and make predictions.
3. Combinations of Functions; Composite Functions
Find the domain of a function.
Combine functions using the algebra of functions, specifying domains.
Form composite functions.
Determine domains for composite functions.
Write functions as compositions.
4. Transformations
Recognize graphs of common functions.
Use vertical shifts to graph functions.
Use horizontal shifts to graph functions.
Use reflections to graph functions.
Use vertical stretching and shrinking to graph functions.
Use horizontal stretching and shrinking to graph functions.
Graph functions involving a sequence of transformations.
5. Inverse functions
Verify inverse functions.
Find the inverse of a function.
Use the horizontal line test to determine if a function has an inverse function.
Use the graph of a one-to-one function to graph its inverse function.
Find the inverse of a function and graph both functions on the same axes.

THEME 4: THE STRAIGHT LINE AND APPLICATIONS

The straight line is the simplest mathematical function yet it is used to model a very wide
range of concepts in economics and business. At the end of this theme, the student
should be able to:
1. The Straight Line
Define the slope and intercept of a straight line and plot its graph.
Understand what ‘the equation of a line’ means.
Use intercepts to graph the general form of a line’s equation.
Plot the straight line when given the value of slope and intercept
Write down the equation of the straight line when given a the value of slope
and intercept b any two points on the line c the slope of the line and a point
on the line.
Plot any straight line given the equation in the form y mx c or

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 ax by d 0.
2. Mathematical Modelling
Understand what the term ‘mathematical modelling’ means.
Understand the importance of economic models.
Understand the interactions between the various parts of an economy:
circular flow model.
3. Applications: Demand, Supply, Cost, Revenue
Model a graphically and b algebraically (writing down their equations) the
following basic functions:
(i) Demand and supplyCost
(ii) Revenue
(iii) Profit.
Plot linear demand, supply, cost and revenue functions.
4. Elasticity of Demand, Supply and Income
Calculate the coefficient of price elasticity of demand at a point on the demand
function
Illustrate that the coefficient of price elasticity of demand depends on price and
vertical intercept and not on the slope of the linear demand function
Calculate the coefficient of price elasticity of demand averaged along an arc or
interval on the demand function
Calculate the price elasticity of demand and supply for linear demand and
supply functions.
Calculate the coefficient of price elasticity of supply.

THEME 5: SIMULTANEOUS EQUATIONS

At the end of this theme, the student should be familiar with:
1. Solving Simultaneous Linear Equations
How to solve two simultaneous equations in two unknowns using: (a) Algebra
(b) Graphical methods.
Determining when two equations in two unknowns have:
(a) A unique solution
(b) No solution
(c) Infinitely many solutions.
Solving three simultaneous equations in three unknowns.
2. Equilibrium and Break-even
Equilibrium in the goods market and labour market
Price controls and government intervention in various markets
Market equilibrium for substitute and complementary goods
Taxes, subsidies and their distribution between producer and consumer
Break-even analysis.

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3. Consumer and Producer Surplus
The meaning of consumer and producer surplus
How to measure consumer and producer surplus.
4. The National Income Model and the IS-LM Model
The national income model: national income equilibrium and expenditure
multipliers
The IS-LM model: determination of equilibrium national income and interest
rates.

THEME 6: NON-LINEAR FUNCTIONS AND APPLICATIONS

At the end of this theme, the student should be able to:
1. Quadratic, Cubic and Other Polynomial Functions
Solve quadratic equations
Sketch any quadratic function
Use quadratics in economics, for example, total revenue and profit
Recognise any cubic or other polynomial function
Use cubic equations in economics, for example, cost and break-even.
2. Exponential Functions
Define and graph exponential functions
Simplify and solve exponential equations
Use exponential functions in various applications.
3. Logarithmic Functions
Define the log of a number and convert from log form to exponential form
Recognise graphs of logarithmic functions and understand their main
properties
Use the rules for logs to simplify expressions containing logs
Solve equations containing logs.
a
4. Hyperbolic (Rational) Functions of the Form bx c
a
Define and graph hyperbolic functions of the form bx c
.
Define and solve applications which are modelled by hyperbolic functions.

THEME 7: MATRIX ALGEBRA

At the end of this theme, the student should be able to:
1. Introduction
Define matrices
Add, subtract and transpose matrices
Multiply matrices
Apply matrix arithmetic

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 Use matrix arithmetic to simplify calculations for large arrays of data.
2. Solution of Equations: Elimination Methods
Apply the Gaussian elimination method.
Apply the Gaussian -Jordan elimination method.
3. Determinants
Evaluate 2 2 and 3 3 determinants.
State and use Cramer’s rule to solve two and three simultaneous equations in
the same number of unknowns.
Find equilibrium values for the national income model and other applications.
4. The Inverse Matrix and Input/Output Analysis
Calculate the inverse of a matrix
Use the inverse matrix to solve equations
Solve problems related to input/output analysis.

THEME 8: MATHEMATIC OF FINANCE

At the end of this theme, the student should be able to:
1. Binomial Theorem
Evaluate a binomial coefficient.
Expand a binomial raised to a power.
Find a particular term
2. Arithmetic and Geometric Sequences and Series
Arithmetic sequences and series.
Geometric sequences and series.
Applications of arithmetic and geometric series.
3. Simple Interest, Compound Interest and Annual Percentage Rates
Calculate simple interest.
Calculate compound interest and derive the compound interest formula.
Solve for unknown variables using the compound interest formula.
Calculate compound interest when compounded several times per year.
Calculate compound interest when compounded continuously.
Calculate the annual percentage rate.
4. Depreciation
Calculate straight-line depreciation.
Calculate reducing-balance depreciation.
5. Net Present Value and Internal Rate of Return
Use the net present value as an investment appraisal technique.
Use the internal rate of return as an investment appraisal technique
Compare the two techniques.
6. Annuities, Debt Repayments, Sinking Funds

Page 8 of 12 BS/BF/HRM/BEC/BSP 140

 Calculate the future value for an initial investment P 0 and annual deposits A 0 .
Calculate present and future values of ordinary annuities.
Calculate mortgage repayments and related problems.
Calculate the value of sinking funds and related problems.
7. The Relationship between Interest Rates and the Price of Bonds
Define a bond.
Calculate the annual repayments and the NPV of investments in bonds

THEME 9: CALCULUS
At the end of this theme, the student should be able to or be familiar with the following:
1. Limits and their properties
Explain the informal definition of a limit of a function at a point and be able
to find the limit of a function at a point if the graph of the function is given.
Give a formal explanation of what is meant by one-sided limits and be able to
interpret these ideas graphically.
Explain the informal definition of the infinite limit and be able to use the
appropriate limit laws.
Determine whether the limit of a function exists by evaluating one-sided limits
Know and apply the definition of a limit to verify simple limits.
2. Continuity, Limits at infinity and Horizontal asymptotes
Determine whether a given function is continuous at a point or on an interval.
Apply the theorems on the continuity of the combination of continuous
functions.
Intepret the limit at infinity and be able to find the horizontal asymptotes of a
function.
3. Slope of a Curve and Differentiation
Show how to measure the average slope of a curve between two points.
Show how to calculate the slope of a curve at a point approximately.
Know, understand and use the definition of the derivative of a function at a
point and be able to find derivatives of functions using the definition (first
principle).
Use differentiation to determine the equation for slope from the equation of
the curve.
Differentiate functions containing x n using the power rule.
Know what it means for a function to be differentiable at a point as well as on
an interval.
Know that a function that is differentiable at a point is continuous at that point
and that the converse of the theorem is not true.
Know and apply the differentiation rules to find the derivative of a constant,
power, sum, difference, product and quotient of differentiable functions.
Use rules for differentiating sums and differences of several functions.
Calculate higher derivatives.

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 Use differentiation to determine whether a function is increasing or decreasing.
4. Applications of Differentiation, Marginal Functions, Average Functions
Marginal functions: an introduction, cost and revenue.
Average functions: an introduction, cost and revenue.
Marginal and average product of labour.
Marginal and average labour cost.
Marginal propensity to consume and marginal propensity to save.
Marginal utility and the law of diminishing marginal utility.
5. Optimisation for Functions of One Variable
Use the slope of a curve to find turning points.
Use the change in slope and second derivatives to determine whether a
turning
point is a maximum or minimum.
Find the intervals along which a function is increasing or decreasing.
Outline the key features of curve sketching.
6. Economic Applications of Maximum and Minimum Points
Sketch curves.
Find the value of output at which TR is at a maximum.
Find the value of output at which profit (π) is at a maximum.
Understand the use of the rule: MC MR in profit optimisation.
Show the profit-maximising point of a price-discriminating firm.
Show the profit-maximising points for a perfectly competitive firm and a
monopoly in the goods market.
7. Curvature and Other Applications
The second derivative and curvature.
Finding the point of inflection.
The relationship between Q, MP L and AP L .
The relationship between TC, TVC and MC.
The relationship between MC, AVC, AC.
8. Further Differentiation and Applications
Differentiate other standard functions (derivatives of exponential functions,
implicit differentiation, logarithmic differentiation, higher-order derivatives).
Use the chain rule to differentiate functions of functions.
Use the product and quotient rules.
Use differentiation to describe and analyse other economic models.
9. Elasticity and the Derivative
The use of the derivative to calculate the coefficient of point elasticity of
demand.
The constant elasticity demand function.
The relationship between price elasticity of demand, marginal revenue, total
revenue and price changes.

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THEME 10: FUNCTIONS OF SEVERAL VARIABLES
At the end of this theme, the student should be able to or be familiar with the following:
1. Partial Differentiation
Understand the term functions of two or more variables, and graph such
functions.
Find first-order partial derivatives of functions of two or more variables.
Find second-order partial derivatives of functions of two or more variables.
Determine differentials and small changes.
2. Applications of Partial Differentiation
Implicit partial differentiation.
Production functions, Cobb–Douglas production function in general form.
Returns to scale, Utility functions, Partial elasticities and National income
multipliers.
3. Unconstrained Optimisation
Locate the optimum points for functions of two variables.
Calculate maximum profit for a firm producing two goods.
Show how firms use price discrimination in order to maximise profits.
4. Constrained Optimisation and Lagrange Multipliers
Understand the meaning of a constrained maximum or minimum.
Use Lagrange multipliers to find the maximum or minimum values subject to a
constraint.
Find maximum utility subject to a budget constraint.
Find maximum output subject to a cost constraint.
Find minimum cost subject to a production constraint.

THEME 11: INTEGRATION AND APPLICATIONS

At the end of this theme, the student should be able to or be familiar with the following:
1. Integration as the Reverse of Differentiation
2. The Power Rule for Integration
Integrate power functions, x n .
Integrate the sum or difference of several power functions.
Integrate any linear function raised to a power.
3. Integration of the Natural Exponential Function
4. Integration by Algebraic Substitution
Integrate functions of linear functions by substitution.
Integrate certain products by substitution.
5. The Definite Integral and the Area under a Curve

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 x b
State that the area under any given curve is approximately equal to x
y
a i
x
State that as x 0, the area under the curve is determined by the definite
x b
integral ydx.
x a

6. Consumer and Producer Surplus

Calculate consumer surplus, producer surplus, and net profit and loss.
7. Partial fraction decomposition and integration by partial fractions
8. Integration by Substitution and Integration by Parts
9. Average value of a function, approximate integration, trapezium and Simpson rules

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