A brief discussion on

Presented By_
Mr. Avro
ID: XXXXX

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Definition
What Linear means?
Variables
M & B Values
Graphical Representation

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Definition
What Linear means?
Variables
M & B Values
Graphical Representation

Definition of Linear
Equation

Linear equations are

about the use of known
quantities to discover
unknown quantities.

A linear function has a constant rate of

change.
The graph of any linear function is a
straight line.

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Definition
What Linear means?
Variables
M & B Values
Graphical Representation

What actually Linear

means?
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Linear

Linear comes from the Latin word linearis, which

means created by lines.
If a graph is linear it will form a straight.
Linear expressions consist of only one variable and no
exponents.
Y=25X+104 Linear

Non-Linear

Y=4(3/5) Non Linear,

because of the variable as an
exponent

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Definition
What Linear means?
Variables
M & B Values
Graphical Representation

Linear equation with

variables

Y=mx+b
Independent variable
dependent variable

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A linear equation is
an expression that
makes a linear
graph.

Most Linear
equations are
in slope
intercept form,
Y=mx+b.

Slope intercept form is

the easiest linear
equation to work with
and it provides us with
a lot of valuable
information about our
function.

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Definition
What Linear means?
Variables
M & B Values
Graphical Representation

then what is m
value?
y
m value represents the slope of
the line. Now what in the
world is slope ?
Slope refers to the rate of
incline or decline.
For example, if two hills are
present then by the help of
slope we can determine which
one is difficult to rise.
As you read a graph from left to
right, the slope refers to the
change in the Y value over the
change in the X value.

P2(x2,y2)

P1(x1,y1)

x
Consider the graph to the right
and the two points P1 and P2.
The slope of this line would be
expressed as
M=Y2 -Y1 / X2 - X1
Assume that the points (1,2)
and (5,4),then, M=(4-2)/(5-1),
So, M=1/2
A negative number is said to be
a decreasing slope because the
line goes down from left to
right.

then what is b
value?
y
The B value of our
equation represents the Y
intercept of our line.
The Y intercept is the Y
value where the line
crosses the axis.
The X value is always 0 at
the Y intercept.

P(0,2)

Y= 3/2X +
2
Y intercept = 2

The line in the graph to the

left has a y intercept of 2,
therefore the B value is also
2.

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Definition
What Linear means?
Variables
M & B Values
Graphical Representation

Graphical representation
of Linear Equation
Example: y = 2x+1 is a linear equation

2x
+
1

Y=

The graph of y =
2x+1 is a straight
line
x

When x increases, y increases twice as fast,

hence 2x
When x is 0, y is already 1. Hence +1 is also
needed
So: y = 2x + 1

Presented By_
Abu Sayed Md. Razib
ID: 23048

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Purpose
Use in Calculating Acceleration &
Distance
Use in future value of investment
Financial application
In Economy

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Purpose
Use in Calculating Acceleration &
Distance
Use in future value of investment
Financial application
In Economy

Purpose of Linear
Equations

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Linear equations are equations that, when

graphed, produce a straight line
Linear equations show a clear relationship
between one variable to another
Example, how an item (like sales, acceleration,
people or heights) changes over time.

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Purpose
Use in Calculating Acceleration &
Distance
Use in future value of investment
Financial application
In Economy

Linear Equations in
Acceleration and Distance
Traveled
Solution:

Problem:
A linear equation can be used to
calculate an increase or decrease
in speed after a fixed period of
steady acceleration or
deceleration. How could it be
possible through Linear
Equation to determine car
speed?

The final speed will be the initial

speed plus the rate of acceleration
multiplied by the period of time the
car accelerated.
Car speed = Initial speed + rate of
acceleration X period of time the
car accelerated

Similarly,
if a vehicle travels at a fixed speed,
a linear equation can be used to
calculate the distance it travels
over a fixed period.

Linear Equations in
Acceleration and Distance
Traveled

Problem:

Solution:

Calculate your cab fare for a trip

home by forming a linear
equation. The boarding rate that
The linear equation would be 2x + 4 =
the driver requires is a constant;
cab fare.
the meter rate is also a constant,
but must be multiplied by how far
you went. So, if the meter rate is
$2, the boarding rate is $4 and
distance is represented by "x.

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Purpose
Use in Calculating Acceleration &
Distance
Use in future value of investment
Financial application
In Economy

Linear Equations in Business Future

value of investment

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Purpose
Use in Calculating Acceleration &
Distance
Use in future value of investment
Financial application
In Economy

Linear Equations in Financial

Applications

Problem:
Someone invests $20,000 in two
bond mutual funds, a junk bond
fund and a government bond fund.
The junk bond fund is risky and
yields 11% interest. The safer
government bond fund yields only
5%. The total income for the year
from the two investments was
$1,300. How much did she
invest in each fund?

Solution:
0.11x + 0.05(20,000 - x) = 1300
0.11x + 1,000- 0.05x = 1300
.06x + 1000 = 1,300
.06x = 300
X = 5,000.
Conclusion:
$5,000 is the amount
invested in the junk
bond and $15,000 is
the amount invested in
the government bond.

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Purpose
Use in Calculating Acceleration &
Distance
Use in future value of investment
Financial application
In Economy

Linear Equations in Economics:

Demand & supply

A fundamental tool of the

economist is the supply and
demand curve that shows how
much of a particular good a
supplier will produce and how
much the consumer will
purchase at a given price.

A linear equation produces the

relationship between price and
units and can therefore be
used to determine the
equilibrium price -- the price at
which the supplier will produce
the exact number of units
demanded by the consumer.
4

This is useful for creating

economic models, though in
practice supply and demand
do not generally behave in
such a well-ordered fashion.

A product with a high price will

have low demand; people buy
less of the product because it is
so expensive that few can
afford it. In turn, if the price of
the product is low, more people
can afford it.

Presented By_
Mr. Ferdous Rezwan
ID: 23067

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Efficacy Measurement
Calculation of Cost
A real scenario of Break-Even Analysis

Focus Point

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Efficacy Measurement
Calculation of Cost
A real scenario of Break-Even Analysis

Linear Equations in efficiency

measurement
Solution:
The linear equation that would come
in handy here is 3.5/5 + 3.5/t = 1.
Problem:

Multiplying both sides by 5t yields:

3.5t + (3.5)(5) = 5t.
So, t= 11.67 h

A cleaning contractor has two

employees, A and B, who are
available to clean a particular
Working that through yields at of
office building. From prior
11.67 hours.
experience, their manager knows
that A can clean this complex in 5 Conclusion
hours. Also, A and B working
simultaneously--A from the bottom
floors up, B from the top floors
down--can get it done in 3.5
hours. How long would it take B
to do the job alone?

The contractor
should probably
fire B and hire
more A for work

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Efficacy Measurement
Calculation of Cost
A real scenario of Break-Even Analysis

Linear Equations in
Calculating Cost
When calculating anything of which we will buy Then we need to
more than one and
use a linear
which has some extra fixed cost attached
equation.

Linear Equations in
Calculating Cost
When calculating anything of which we will buy Then we need to
more than one and
use a linear
which has some extra fixed cost attached
equation.
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Car Purchase
Phone Call
Tarif

If we are renting a car for a day your total

cost will be the day's rental plus each
gallon of fuel used multiplied by the cost
of the fuel.

A linear equation will

allow us to determine
this number.

Linear Equations in
Calculating Cost
When calculating anything of which we will buy Then we need to
more than one and
use a linear
which has some extra fixed cost attached
equation.
1
2
3

Car Purchase
Phone Call
Tarif

If we have a phone contract you may pay a

fixed line rental plus the number of
minutes we called multiplied by the cost of
each minute.

A linear equation will

allow us to determine
this number.

Linear Equations in
Calculating Cost
When calculating anything of which we will buy Then we need to
more than one and
use a linear
which has some extra fixed cost attached
equation.
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2
3

Car Purchase
Phone Call
Tarif

Using linear equations can also help you to

make the most economical choice of tariff.
A tariff with a high fixed cost but a low
unit cost will prove cheaper than a tariff
which offers the opposite only after a certain
number of units have been used.

A linear equation will

allow us to determine
this number.

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Efficacy Measurement
Calculation of Cost
A real scenario of Break-Even Analysis

Linear Equations in Break-Even

analysis

MULTISEA
S

Here it is needed to give the carton

of multiseas product

Linear Equations in Break-Even

analysis
Sales in 2013 up to May13 (in Lac value)
Jan13
42

Feb13 Mar13 Apr13

45

50

52

May1
3
67

Avg: 51 Lac/Month

My Objective is to determine Break-Even

Linear Equations in Break-Even

analysis
Few data:
MRP

80 /= (per
bottle)

COGS
RM cost
Administrative cost
Operation cost

3 /= (per
bottle)

Selling Expense

2 /=

Fixed Cost
Say, no of unit = X

1200000 /=

Y = 1200000 + 5x, Cost equation

Y = 80x, Revenue equation
As revenue = cost
80x = 1200000+5x
So, x = 16000

Linear Equations in Break-Even

analysis

This 16000 unit is Break Even Poin

Jan13
42

Feb13 Mar13 Apr13

45

50

52

May1
3
67

Avg: 51 Lac/Month

Means 63750
Bottle. So my profit
is (63750-16000) =
47750 Bottle means

38.20 Lac
Avg/Month

Presented By_
Mr. Anowar
ID: XXXXX

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Allocating Cost
Interest Rate
Investment
Currency Calculation
Conclusion

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Allocating Cost
Interest Rate
Investment
Currency Calculation
Conclusion

Linear Equations in Business

(Allocating Costs Between
Solution:
Departments)
Problem:
Suppose a particular business has
both an engineering
department (E) and a general
manufacturing plant (GP).
They share certain overhead
costs. Here it is needed to allocate
the overhead between the two
department.

1) GP = $20,000 + 2E.
2) E = $10,000 + 1/6GP.
Substitution and Solution
Using the reallocation example,
insert the second formula into the
first and you have:
GP = $20,000 + 2(10,000 +
1/6GP).
Conclusion:
general plant (GP)
overhead costs of
$60,000.
engineering
department overhead
cost of $20,000.

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Allocating Cost
Interest Rate
Investment
Currency Calculation
Conclusion

Linear Equations in Business

(Interest Rates)
Solution:
Problem:
A person deposited $8000 for 2
years at 6% interest. What will be
the amount of interest?

Here P = $8000, n = 2, r = 6%
Step 2: Plug it in the formula
A = P(1+i)n
A = 8000 (1 + 0.06)2 = $8988.8
Interest

=A-P
= 8988.8 8000
= $988.8

Conclusion:
He will get interest
$988.8

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Allocating Cost
Interest Rate
Investment
Currency Calculation
Conclusion

Linear Equations in Business

(Investment)

In the finance industry, the inverse relationship between

interest rates and investment by individuals and
businesses may also be modeled with a linear equation. In
this case, the linear equation helps illustrate how much the
level of investment changes as interest rates either
increase or decrease.
The linear equation relating interest rates to investment
will show that high interest rates correlate to low
investment levels.

However, if interest rates are

low, investment activity may
increase.

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Allocating Cost
Interest Rate
Investment
Currency Calculation
Conclusion

Linear Equations in Business

(Currency Calculation)
Case:
The foreign exchange rate tells us the price of one currency in terms
of a foreign currency. Say for example that you want to convert U.S.
dollars into British pounds. You use your dollars to buy pounds and
receive the value of your dollars in British currency. Depending on the
currency exchange rate of the British pound, you may be able to buy
more or less British pounds with your U.S. dollars.

This relationship between currencies may also be

modeled with a linear equation.
Solution:
In this case, the two variables are U.S. dollars and British pounds. From the
foreign exchange rate you know that one U.S. dollar buys a certain number
of pounds, two dollars buys a certain amount of pounds, and so on. If you
model this data, you will be able to see how many pounds you may be able
to buy with a specific amount of dollars under the exchange rate.

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Allocating Cost
Interest Rate
Investment
Currency Calculation
Conclusion

Conclusio
n

Linear
equations are
most
frequently
used in
business to
determine
prices, to
create plans,
to derive
values and to

Thank you for patients hear