Paper 4: Fundamental of Business Mathematics and Statistics

Section A: Fundamentals of Business Mathematics [40 marks]

1. Arithmetic

(a) Ratios and Proportions

(b) Simple and Compound interest including application of Annuity

(c) Bill Discounting and Average Due Date

(d) Mathematical reasoning – basic application

2. Algebra

(a) Set Theory and simple application of Venn Diagram

(b) Variation, Indices, Logarithms

(c) Permutation and Combinations – basic concepts

(d) Linear Simultaneous Equations ( 3 variables only)

(e) Quadratic Equations

(f) Solution of Linear inequalities ( by geometric method only)

(g) Determinants and Matrices

3. Calculus

(a) Constant and variables, Functions, Limit & Continuity

(b) Differentiability & Differentiation, Partial Differentiation

(c) Derivatives – First order and Second order Derivatives

(d) Maxima & Minima – without constraints and with constraints using Lagrange transform

(e) Indefinite Integrals: as primitives, integration by substitution, integration by part

(f) Definite Integrals: evaluation of standard integrals, area under curve

Section B: Fundamentals of Business Statistics [60 marks]

4. Statistical Representation of Data

(a) Diagrammatic representation of data

(b) Frequency distribution

(c) Graphical representation of Frequency Distribution – Histogram, Frequency Polygon, Ogive, Pie-chart

5. Measures of Central Tendency and Dispersion

(a) Mean, Median, Mode, Mean Deviation

(b) Quartiles and Quartile Deviation

(c) Standard Deviation

(d) Co-efficient of Variation, Coefficient of Quartile Deviation

6. Correlation and Regression

(a) Scatter diagram

(b) Karl Pearson’s Coefficient of Correlation

(c) Rank Correlation

(d) Regression lines, Regression equations, Regression coefficients

7. Index Numbers

(a) Uses of Index Numbers

(b) Problems involved in construction of Index Numbers

(c) Methods of construction of Index Numbers

8. Time Series Analysis – basic application including Moving Average

(a) Moving Average Method

(b) Method of Least Squares

9. Probability

(a) Independent and dependent events; Mutually exclusive events

(b) Total and Compound Probability; Baye’s theorem; Mathematical Expectation

10. Theoretical Distribution

(a) Binomial Distribution , Poisson Distribution – basic application

(b) Normal Distribution – basic application