(Department of Business Administration)

Assignment # 2

Business Mathematics & Statistics

Topic: SYSTEM OF EQUIATIONS:-

Roll # 508195455

CELL # 0333-5174447

Submitted by: ASAD HUSSAIN

Submitted to: Mr. ASIF RAZA

RIZVI
Acknowledgment

First of all I thank my Allah (S.W.T) who gave me courage and strength to
work on this project and removed all the obstacles, which came during
my work. I am also very thankful to my teacher Mr. Asif Raza Rizvi
who became best guide and my parents who support me a lot. I also
like to mention Chen one store who helped me a lot in searching
material for my project.

I also want to mention the web sites which I have visited for data
collection for my project.

www.ask.com

www.google.com.pk

www.1banana.com
EXECUTIVE SUMMARY

The assignment is a research-oriented activity, which represents both the

theoretical and practical implication of the topic. In the first section of this
assignment, I explain the theoretical aspect of the topic and all major parts
has been explained which are involved in system of equations in business
mathematics and statistics. For empirical study, I select Chen one store
Islamabad super Jinnah and compare their ways of system of equations
instruments.
Equation:-

An equation is a symbolic statement that two algebraic expressions are

equal. An algebraic expression or simply an expression is any collection
consisting of numbers and symbols which are related by arithmetic
operations. When an expression consists of several parts that are connected
by plus and minus, each of these parts, together with the sign preceding it is
called a term. The two expressions are two sides of the equation which
connected by the sign of quality. Thus x + 5 = 7 is an algebraic equation,
starting that x + 5 equals 7. In this example x + 5 is the left member of the
equation and 7 is the right member of the equation. The letter x, whose
value is desired is called the unknown. An equation with one literal number,
such as 3x– 2 = 7 is known as equation in one variable. When the desired
value is found out, the value is called the solution or the root.

An equation is defined as

“An equation may be defined as a statement which clearly indicates that any
tow algebraic expressions are equal. The two expressions are the two sides
of the equation, which are connected by the sign of equality.

Equation and inequalities involving only numbers (or constants) can be

classified as true or false. Equations and inequalities involving unknowns
(such as x, y, z) are called open sentences since they cannot in general be
classified as true or false without a value being substituted for the unknown.
For example,
X+3=7 and 3X – 1 < 5

Solution of the equation:-

If an equation involves only one variable and there is number that, if

substituted for that variable, makes the equation a true statement, then that
number is called a solution of the equation; the set of all the solutions is
called the solution set. (A solution of an equation is also sometimes called a
root of the equation.)

Equations that have the same solution sets are said to be equivalent.

Solution Set of linear equations such as

Ax + By + C = 0

Contains an infinite number of ordered pairs of real numbers

Ordered Pairs

The ordered pair (a, b) stands for the pair of two numbers in which the order
of a and b is maintained. The first element of this pair is a and the second is
b.

System of equations
It is often useful to determine if equations have common solutions. The
equations are then referred to as a system of equations and the ordered
pairs that satisfy all equations are the solutions to the system.

The solutions set of any equation involving two unknowns is the set of
ordered pairs that satisfy the equation. The solution set of a system of two
equations is defined to be the intersection of the solution sets of the
individual equations. Such solutions are called simultaneous solutions since
each ordered pair satisfies both equations simultaneously.

The equations in the system can be linear or non-linear. Thus we reviews

systems of linear equations.

There are for common methods of solving independent linear equations

simultaneously.

1. Solution by addition or subtraction

2. Solution by substitution

3. Solution with the help of graphs

4. Solution by matrix algebra

The Simultaneous Solution of a System of

Equations

When an algebraic problem presents itself in which there are two or more
equations involving two or more variables ... the multiple equations are
referred to as a system. When it is the desire to find a combination of
variable values that satisfy each of the equations (make the equations true
at the same time), it is referenced as "solving a simultaneous system." If one
were to graph the equations ... you'd really be asking the question: "Where
do the equations intersect and meet?", "What are the points that are
common to both equations simultaneously?"
The simplest simultaneous system case involves solving two equations in
two unknowns. For example, consider the following system of two equations:

2x + 3y = 12

5x + 2y = 19

1.Solution by addition or subtraction

The first method involves combining the equations (using addition or

subtraction) in such a way to cause a variable to be eliminated.

STEP 1:

Examine the two equations to be solved and pick one of the variables to be
eliminated. In our example, let's say we pick the "y" variable.

STEP 2:

Transform the equations (usually using multiplication or division) ... in such a

way that the numeric coefficient in front of the "y" variable is the same
(absolute) value in both. In this example, you might multiply the top
equation by "2" and the bottom equation by "3":

4x + 6y = 24

15x + 6y = 57
Notice that this multiplication has generated a numeric value of "6" as the
coefficient of the "y" term in both the top and bottom equation.

STEP 3:

Combine the two equations (by adding or subtracting them) to eliminate the
variable selected in step 1. In this example, subtract the (entire) bottom
equation from the top equation ... yielding:

-11x = -33

STEP 4:

Solve the new equation for the variable remaining. In this instance, divide
both sides of the equation by "-11":

x=3

STEP 5:

Substitute the value found (in step 4 above) into one of the original
equations and find the value of the other variable. For example, substituting
"x=3" into the original top equation yields:

2 * ( 3 ) + 3y = 12

6 + 3y = 12
 3y = 6

y = 2

STEP 6:
The net final solution is the ( x , y ) ordered pair: ( 3 , 2 ). This "x-y" pair will
make both the top equation true and, at the same time, the bottom equation
true.

2. Solving a Simultaneous System by Substitution:

Another common method of solution for a simultaneous system is to utilize

substitution. Say, for instance, you want to solve the following system:

y = x2 + 2x - 3

2x + 3y = 19

STEP 1:

Pick one equation and solve it for one of the two variables. In this example,
the top equation is already solved for the variable "y" ... so, without any
actual work, it would be the logical selection. In many problems, one would
actually have to do some work to solve one of the equations for one of the
variables.

STEP 2:
Replace the variable in the OTHER equation by what it is equal to in step 1.
In this example, replace the "y" variable in the bottom equation by "x2 + 2x
- 3":

2x + 3 * ( x2 + 2x - 3 ) = 19

STEP 3:

Solve the resulting equation:

2x + 3x2 + 6x - 9 = 19

3x2 + 8x - 28 = 0

( 3x + 14) ( x - 2 ) = 0

x = -14/3 -or- x=2

STEP 4:

The "x" values produced (in step 3 above) must now be substituted into
either one of the original equations ... to find the matched-up, corresponding
"y" values:

When x=-14/3, the matched-up "y"-value is:

y=85/9

When x = 2, the matched-up "y"-value is: y = 5

STEP 5:

This particular system of equations has two simultaneous solutions: the "x-y"
ordered pair (-14/3, 85/9) and the "x-y" ordered pair (2, 5). Either of
these can be substituted into either of the original equations and will
produce true statements.

A few other notes:

Other 1:

When solving a system, it is possible that there will be "no" solution. In other
words, there will be no "x-y" ordered pair that will make both equations true
simultaneously.

Other 2:

When solving a system, it is a remote possibility that the equations beings

solved will share infinitely many "x-y" ordered pairs ... and that all "x-y" pairs
that solve one of the equations will also solve the other equation.

Other 3:
When solving three or more equations simultaneously, it is normally required
that one variable (unknown) is eliminated ... followed by a second ... followed
by a third ... etc. In other words, it is unlikely that in a single step all
variables can be eliminated immediately.

3. Solving the Equation graphically:

Suppose we have the equations

3x+y=3

x+2y=-4

The first equation is satisfied by infinitely many ordered pairs, three of which
are (0,3) , (1,0) , and (3,-6). Likewise, some ordered pairs that satisfy x+2y=
-4 are (-4,0) , (0,-2) , and (2,-3). The graphs of these two equations are given
I the following diagram. The intersection of the two lines in diagram seems to
be the point (2,-3). We can check to see whether or not this ordered pair is a
solution of the system of equations by checking it in each equation.
Substituting x=2 and y=-3 the first equation gives

3(2) + (-3) = 3

6-3 =3
Substituting x =2 and y = -3 in the second equation gives

(2) + 2 (-3) = -4

2-6 = -4

Hence, {( 2 , -3)} is the solution set of the equation system

Geometrically we are confronted with three possibilities for the straight line
graphs of equations in a system of two linear equation in two un-known:

One of these possibilities must occur for the graph of two lines in plane:

1. The two lines intersect at exactly one point.

2. The two lines coincide.

3. The two lines are parallel

The possibilities lead; correspondingly, to the conclusion that one and only
one of the following is true for two linear equations in two un-known, x and y:

1. The intersection of the two solution sets contains exactly one

ordered pair.

2. The intersection of the two solution sets contains all those ordered
pairs found in either one of the given solution sets; that is, the
solution sets are equal.

3. The intersection of the two solution sets is the null set.

4.Solution with the help of a matrix:

Matrix is a natural way to organize and manipulate data to solve problems

recently, as computers have made it possible to handle ever large amounts
of information, the use of a matrix has an increasing importance in
management and other areas of business.

For example

A matrix is a rectangular array of elements. A matrix consists of rows and

columns.

Order of a Matrix

The number of rows and columns in a matrix is called order for matrix.

There are so many methods employed to solve a system of a n linear

equation in n variables. Two well-known methods for solving equations are:

Gaussian Elimination Method.

Procedure of Gauss-Jordan Elimination Method: -

 Make the coefficient of the first unknown equal to 1 in the

first equation and 0 in all other equations and in that row
other unknown’s coefficient should be zero.
  Make the coefficient of the second unknown equal to 1 in
the second equation and 0 in all other equations and in
that row other unknown’s coefficient should be zero.

 Make the coefficient of the third unknown equal to 1 in the

third equation and 0 in all other equations and in that row
other unknown’s coefficient should be zero.

 Continue this process for all equations (if possible).

Row Operation: -

Row operations are the operation, which are applied on the different rows for
solving the equation in order to find the values of unknowns.

Row Operation on Matrix: -

 Interchange any two rows.

 Multiply each element of any row by a nonzero constant.

 Replace any row by the sum of that row and a constant

times any other row.

Column Operation: -

Column operations are the operation, which are applied on the different
columns for solving the equation in order to find the values of unknowns.
Column Operation on Matrix: -

 Interchange any two columns.

 Multiply each element of any column by a nonzero

constant.

 Replace any row by the sum of that column and a constant

times any other row.

Example:

Solve the system

2x + 5y = 9

3x – 2y = 4

Using Gaussian elimination matrices.

Solution:

To form the augmented matrix writes down as the first column the
coefficients of x, as the second column the coefficient of y, and as the last
column the constant terms (appearing on the right side of the equation).

2 5 9
 3 -2 4

To put the augmented matrix in a form where the solution to the system is
evident, perform the following row operations. Multiply the first row by ½.

1 ½ 9/2

3 -2 -4

Multiply the first row by -3 and add to the second row.

1 5/2 9/2

0 -19/2 -19/2

Multiply the second row by –2/19

1 5/2 9/2

0 1 1

Multiply the second row by -5/2 and add to the fist row.

1 0 2

0 1 1
This matrix is the augmented matrix of the system

So,

1.x+0.y=2 or x=2

0.x+1.y=1 y=1

Case Study

Chen One

About the Firm: -

Chen One, the Pakistani based multinational firm, have famous brand in the
business of clothing, wardrobes, outfits, Child wear, Men & Women wears,
Home Fashion and stylish furniture also.

The Chen One is a business of Chenab group, Faisalabad and also the head
office of the firm is in the Faisalabad. The firm is in existence since 1997 and
in such a little time, they have achieved lot of business in the clothing
industry.

Mian Muhammad Latif, Chairman Chenab Group is the founder of Chen One
International. He is a committed businessman with excellent values in
introducing Pakistani products to international Market.
Branches of Chen One: -

In Pakistan

 Karachi

 Lahore

 Islamabad

 Peshawar

 Faisalabad

 Rahim Yar Khan

 Multan

 Sialkot

 Gujarat

 Abbottabad

Internationally
 Dubai (UAE)

 Abu Dhabi (UAE)

 Ajman (UAE)

 Makkah (Saudi Arabia)

 Bahrain (Middle East)

Other information;-

 TEL:+92 41 8754472-76
  FAX:+92 41 8751907,+92 41 8752400

 UAN:111 900 222,111 500 400

 Toll Free:0800-Chen1(24361)

 E-MAIL:chenone@chenabgroup.com

 WEB SITE: www.chenone.com.pk

Chen One Use Following Equation to Check the

Decline in Sales:

As Chen One is a multinational company and have a very good impact on

customers. But in the year 2008 their sales decreased dramatically which
prompt them to conduct a research so that they come to know the reasons
behind all this. We have found some reasons behind the decline in sales.
There are so many factors on which sales of Chen one is dependent. Two of
the main factors were promotion and price. Now let do mathematical
calculations so that we come to know that how could Chen One increase
their sales?

Let: y = promotion

x = Price

x + 2y = 8(%) ………………….(1) year 2007

2x + 3y = 5(%) ………………….(2) year 2008

Here equation (1) represents that their sales in 2007 were 8% of sales as
2006 but in 2008 their sales decreased dramatically to 5%.
Explanation: -

In equation (1) you can see that their price is constant but they had doubled
their promotion and as a result their sales increased to 8%.

But in equation (2) they doubled their price but decreased their sales
promotion. As a result their sales declined to 5%. This is 3% less as
compared to 2008.

Now let’s check that what should be the price and how should they promote
their products if they want to increase their sales.

Solution: -

(By Gauss-Jordan Elimination method)

Let’s see and understand the step-by-step process of solving equations.

For a system with several equations and several unknown variables; it is

obvious that the unknown variables could be omitted since all operations are
performed on coefficients.

So coefficients of above equations are

1 2 5

2 3 8
Where the vertical line replaces the (=) signs. As describe above that this
type of matrix (rectangle) is called augmented matrix.

Step # 1

As coefficient of first unknown is already 1 so no need to convert that.

1 2 5

2 3 8

Step # 2

To get the zero in second rows first element, multiply first row by “-2” and
then add to second row.

1 2 8

0 -1 -11

Step # 3

To get a one in row 2, column 2, multiply the second row by “–1”, i.e.
 1 2 8

0 1 11

Step # 4

To get a zero in row 1, column 2 multiply the 2nd row by “–2” and then add to
1st row 1, i.e.

1 0 -14

0 1 11

1.x + 0.y = -14

0.x + 1.y = 11

so

x = -14

and y = 11

Results: -
 Here you can see that “x = -14” which means Chen One should
decreased their price to 14% if they want to increase their sales.

“y = 11” shows that they should increase their sales promotion

11% in order to increase their sales.