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Mathematics For Managers: Class 1: Matrices

The document provides an overview of matrices and their application to business problems, including rules for matrix addition and multiplication, and three cases showing how matrices can be used to analyze staffing levels and costs, predict employee turnover, and calculate revenues and profits across multiple products and markets. Matrix operations such as addition, subtraction, and multiplication are defined and properties such as commutativity and distributivity are discussed. Real-world business scenarios are presented involving an airline, insurance company, and manufacturer to demonstrate practical applications of matrices.

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piyushraj
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25 views

Mathematics For Managers: Class 1: Matrices

The document provides an overview of matrices and their application to business problems, including rules for matrix addition and multiplication, and three cases showing how matrices can be used to analyze staffing levels and costs, predict employee turnover, and calculate revenues and profits across multiple products and markets. Matrix operations such as addition, subtraction, and multiplication are defined and properties such as commutativity and distributivity are discussed. Real-world business scenarios are presented involving an airline, insurance company, and manufacturer to demonstrate practical applications of matrices.

Uploaded by

piyushraj
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Mathematics for Managers

Class 1: Matrices
ADDITION RULES

1. Matrices can be added or subtracted if they are in


same order.
2. The sum of two matrices result in a matrix whose
elements are the sum of the corresponding element of
the corresponding matrices
Rules of Matrix Addition
1. Commutative Rule
If A and B are two matrices of the same order, then
A+B=B+A

2. Associative Law
If A, B and C are three matrices of the same order, then
A + (B +C) = (A + B) + C

3. Distributive Law
If A and B are three matrices of the same order, then
k (A +B) = kA + kB , k being a scalar
Rules of Matrix Addition
4. Existence of Additive Identity
If A is an m x n matrix and O is a null matrix of the same
order, then
A + O = O+ A = A
The null matrix O referred to as the identity of matrix
addition

5. Existence of Additive Inverse


If every matrix there exists a additive inverse –A such that
A + (-A) = O, O being a null matrix
PROPERTIES OF MATRIX MULTIPLICATION
1. In general matrix multiplication, unlike matrix addition is not
commutative. AB = BA, in general

2. Matrix multiplication is associative


If three matrices A, B and C are conformable for multiplication, then
A(BC) = (AB)C

3. Matrix multiplication is distributive with respect to addition, this


means for three matrices A, B and C
A (B + C) = AB + AC and (B + C)D and BD + CD

4. If A is an m x n matrix and O is a null matrix of the order n x m, then


AO=OA
If A is a square matrix of order n and I is a unit matrix of the same
order, then A I = I A = A
APPLICATIONS OF MATRICES
IN BUSINESS PROBLEMS
CASE 1: One thousand airline stewardess, classified in the following groups are
employed by an airline:

Age 20-24 25-29 30-34 35-39


Number 600 300 150 30

The probability that a stewardess of the corresponding group will leave by the end
of the year is given by the column matrix.

A= 0.45
0.30
0.15
0.10

Using matrix multiplication, find the number of stewardesses who are expected to
leave in one year
CASE 2: An Insurance company has to set up offices at 9 capital cities of
major states and 4 metros Delhi, kolkata, Mumbai and Chennai.
Each offices has primarily three posts viz. manager executives
and assistants. The staff composition for the different locations
are:

Manager Executives Ass


Capital Cities 1 2 1
Metros 2 4 5

The basic daily salaries for the different positions are as follows
Manager: Rs 1500
Executive: Rs 800
Assistants: Rs 300
Use matrices to determine the total number of posts of each kind in all the offices,
the total salary born by the company each day for each office and the total salary of
all the offices taken together.
Case 3: A manufacturer produces three products : P, Q and R, which he sells in
two markets. Annual sale volume are indicated as follows:

Market Products
P Q R
I 10000 2000 18000
II 6000 20000 8000

1. If the unit sale prices of P, Q and R are Rs. 3.00 , Rs. 2.00 and Rs. 1.00
respectively, find the total revenue in each market with the help of matrix
algebra.
2. If the unit costs of the above 3 commodities are Rs.2.00 , Rs.1.50 and Rs.0.80
respectively, find the gross profit.

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