Business Mathematics and Statistics: Fundamentals of
Business Mathematics and Statistics: Fundamentals of
Business Mathematics and Statistics: Fundamentals of
Fundamentals of
Business Mathematics and
Statistics
Paper
3
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PAPER 3: FUNDAMENTALS OF BUSINESS MATHEMATICS
AND STATISTICS
Syllabus Structure:
The syllabus in this paper comprises the following topics and study weightage:
A
40%
B
60%
Contents as per Syllabus
SECTION A: FUNDAMENTALS OF BUSINESS MATHEMATICS 01 - 234
Module 1 : Arithmetic 01 - 82
1.1 Ratios, Variations and Proportions
1.2 Time Value of Money and Annuity – Simple and Compound Interest
1.3 Arithmetic Progression and Geometric Progression
1.4 Time and Distance
Note:
1. In the ratio a:b, a & b are called the terms of the ratio. Here ‘a’ is called Antecedent and ‘b’ is called Consequent.
2. Two or more ratios can be compared by reducing them to the same denominator.
Ex: In the ratios 3:4 and 8:12 which is greater?
multiplying the terms of 3:4 by 3, we get 9:12
multiplying the terms of 8:12 by 1, we get 8:12
As 9:12 > 8:12, we conclude 3:4 > 8:12
The compounded ratio of two reciprocal ratios is unity. i.e. a : b is the reciprocal ratio of b : a
2. Duplicate ratio:
If two equal ratios are compounded together then the resulting ratio is called Duplicate ratio of the given ratio i.e.
the duplicate ratio of a:b is a:b × a:b = a 2 : b 2 .
3. Triplicate ratio:
If three equal ratios are compounded together then the resulting ratio is called Triplicate ratio of the given ratio i.e.
the triplicate ratio of a:b is a:b × a:b × a:b = a3 : b3.
5. Continued ratio:
The continued ratio is the relation between the magnitudes of two or more ratios and is denoted by a : b : c
Ex: The continued ratio of 2:3 and 4:10 is 8:12:30 or, 4:6:15
Points to remember:
Ex: if A = `2 and B = 50 p
Then A : B = 200 : 50 = 4 :1
2. When the quantity is increased by given ratio multiply the quantity by greater ratio.
3. When the quantity is decreased by given ratio multiply the quantity by lesser ratio.
4. When both increasing and decreasing of quantities are present in a problem multiply the quantity by greater
ratio to increase and multiply the result by lesser ratio to obtain the final result.
Property:
The four quantities a, b, c, d are in proportion if a = c Or, ad = bc. Converse is also true.
b d
1.1.2.1 Continued proportion:
If 3 quantities a, b, and c are such that a : b = b : c then we say that these 3 quantities are in continued proportion.
If 3 quantities are in continued proportion then we get b2 = ac.
Ex: 3, 6, 12 are in continued proportion.
So 62 = 3 × 12 = 36
Ex: 2, –4, 8 are in continued proportion
So (−4) 2 = 2 × 8 = 16
Here z is called the Third Proportional of x and y. Thus the same formula as above can be used to find at 3rd
proportinal of x & y.
Similarly if a, b, c and d are in proportion i.e. a:b = c:d then d is called the Fourth Proportional of a, b and c.
Example:
(i) Mean proportional between 0.08 and 0.18 is 0.08 × 0.18 = .0144 = 0.12
16 36
(ii) Third Proportional to 16 & 36 is obtained as 16:36: :36: x, where x is the 3rd Proportional. So =
36 x
36 × 36
or 16x = 36 × 36 or, x = = 81 . Hence 81 is the 3rd Proportional to 16 & 36
16
(iii) Fourth Proportional to 4, 9 and 12 is calculated as 4:9: : 12: X, where X is the 4th Proportional.
So 4x = 9 × 12 or, X = 27. Hence 27 is the 4th proportional to 4, 9 & 12.
2. Alternendo:
If a : b = c : d which implies a : c = b : d then we say that the operation of Alternendo is performed on the given
proportion.
3. Componendo:
If a : b = c : d which implies a + b : b = c + d : d then we say that the operation of Componendo is performed on
the given proportion.
4. Dividendo:
If a : b = c : d which implies a − b : b = c − d : d then we say that the operation of Dividendo is performed on
the give proportion.
6. Important theorem:
1
a c e pa n + qc n + re n n
If b = d = f then each ratio = n n n
pb + qd + rf
Proof:
a c e
Let = = ...... = k (Say)
b d f
a
So = k , Or a = bk
b
c e
Similarly = k , Or, c = dk & = k , Or e = fk ....... So on
d f
RHS
1 1
pa n + qc n + re n n p(bk ) n + q(dk ) n + r ( fk ) n n
= n n n =
pb + qd + rf pb n + qd n + rf n
1
pb nk n + qd nk n + rf nk n n
=
pb n + qd n + rf n
1
pb n + qd n + rf n n
= k n n
pb + qd + rf
n n
= {k n } = k
1/n
Note:
1. Put n = 1
pa + qc + re +
So = each ratio = k
pb + qd + rf +
2. Put p = q = r = = 1
1/n
a n + c n + e n +
So n n n = each ratio
b + d + f +
x: y : z = a :b:c
y
Can be written as x = = z
a b c
4. If x : y = a : b it does not mean that x = a & y = b
Illustration 1.
4 x − 3z 4 z − 3 y 4 y − 3x x+ y+ z
If = = , show that each ratio =
4c 3b 2a 2a + 3b + 4c
Answer:
4 x − 3z 4 z − 3 y 4 y − 3x 4 x − 3 y + 4 z − 3 y + 4 y − 3x x + y + z (Proved)
= = = =
4c 3b 2a 4c + 3b + 2a 2a + 3b + 4c
Illustration 2.
a c e g aceg a 4 + c 4 + e f + g 4
If = = = Show =
b d f h bdfh b 4 + d 4 + f 4 + h 4
Answer:
a c e g
= = = = k (say)
b d f h
So a = bk , c = dk , e = fk , g = hk
aceg bk × dk × fk × hk
LHS = bdfh = = k4
bdfh
RHS
a 4 + c 4 + e 4 + g 4 b 4k 4 + d 4k 4 + f 4k 4 + h 4k 4
= = k4
b4 + d 4 + f 4 + h4 b4 + d 4 + f 4 + h4
Illustration 3.
n −1
a1 a1
If a1, a2 an be continued proportion, show that =
an a2
Answer:
a1 a2 a3 a
= = = ... ... n−1 = .k (say)
a2 a3 a4 an
a1 a2 a3 a a
k n−1 = × × = ... ... × n−1 = 1
a2 a3 a4 an an
n −1
a
Again k n −1 = 1
a2
n −1
a1 a1
So = (Proved)
an a2
Illustration 4.
x y z x 2 − yz y 2 − zx z 2 − xy
= = Prove that 2 = =
a b c a − bc b 2 − ca c 2 − ab
Answer:
x y z
= = = k ( Say )
a b c
So x = ak , y = bk , z = ck
x 2 − yz ( ak ) − bk.ck k ( a − bc )
2 2 2
= = = k2
a 2 − bc a 2 − bc a 2 − bc
y 2 − zx z 2 − xy
Similarly = =k
b 2 − ca c 2 − ab
x 2 − yz y 2 − zx z 2 − xy
So = = (Proved)
a 2 − bc b 2 − ca c 2 − ab
Illustration 5.
p q r
If b − c = c − a = a − b Prove that p + q + r = 0 = pa + qb + rc
Answer:
p q r
= = = k ( say )
b−c c−a a −b
So p = k (b − c ) , q = k ( c − a ) , r = k ( a − b )
So p + q + r = k (b − c ) + k ( c − a ) + k ( a − b ) = 0
So pa + qb + rc = k (b − c ) a + k ( c − a ) b + k ( a − b ) c = 0
Hence the result (Proved)
Illustration 6.
The marks obtained by four examinees are as follows: A: B = 2:3, B: C = 4:5, C: D = 7:9, find the continued ratio.
Answer:
A:B = 2:3
3 3 15
So B: C = 4:5 = 4 × : 5 × = 3 :
4 4 4
So C: D = 7:9 = 7 × 15 : 9 × 15 = 15 : 135
28 28 4 28
15 135
So A : B : C : D = 2 : 3 : : = 56 : 84 :105 :135
4 28
Illustration 7.
Two numbers are in the ratio of 3:5 and if 10 be subtracted from each of them, the remainders are in the ratio of
1:5, find the numbers.
Answer:
x 3
Let the numbers be x and y, so that = Or, 5x = 3 y ... ... ...(1)
y 5
x − 10 1
Again =
y − 10 5
Or, 5x − 50 = y − 10
Or, 2 y = 40, So y = 20
And 5x = 3 y = 60, So x = 12 and y = 20
Illustration 8.
The ratio of annual incomes of A and B is 4:3 and their annual expenditure is 3:2. If each of them saves `1000 a
year, find their annual income.
Answer:
Let the incomes be 4x and 3x (in `)
4 x − 1000 3
=
3x − 1000 2
From above x = 1000
So income of A = `4,000 & that of B = `3,000
Illustration 9.
The prime cost of an article was three times the value of material used. The cost of raw materials was increased in
the ratio 3:4 and the productive wage was increased in the ratio 4:5. Find the present prime cost of an article, which
could formerly be made for `180.
Answer:
Prime cost = x + y, where x = productive wage, y = material used
Now prime cost = 180 = 3y or, y = 60, again x + y =180, x = 180 – y = 180 – 60 = 120
Present material cost = 4y/3, present wage 5x/4
Present prime cost = 4 ×60/3 + 5×120/4 = `230
PRACTICE PROBLEMS
1. The ratio of the present age of a father to that of his son is 5:3. Ten years hence the ratio would be 3:2. Find
their present ages. (Ans. 50, 30)
2. The monthly salaries of two persons are in the ratio of 3:5. If each receives an increase of `20 in salary, the
ratio is altered to 13:21. Find the respective salaries. (Ans. `240, `400)
3. What must be subtracted from each of the numbers 17, 25, 31, 47 so that the remainders may be in
proportion? (Ans. 3)
x y z
4. If = = show that (b − c ) x + ( c − a ) y + ( a − b ) z = 0
b+c c+a a+b
x y z 1
5. If = = = k prove that k = , if x + y + z ≠ 0
y+ z z+ x x+ y 2
a− b 1 a 2 + ab + b 2 91
6. If = prove that 2 =
a+ b 2 a − ab + b 2 73
a b c a+b+c
7. If = = prove that =2
4 5 9 9
b+c c+a a+b
8. If = = and a + b + c ≠ 0 then show that each of these ratios is equal to 2. Also prove that
a b c
2 2 2
a + b + c = ab + bc + ca
9. If a : b = c : d Show that xa + yb : aα − bβ = xc + yd : cα − d β
α β γ
10. If = = Prove that α + β + γ = 0, pα + qβ + r γ = 0
q−r r− p p−q
11. Monthly incomes of two persons Ram and Rahim are in the ratio 5:7 and their monthly expenditures are in the
ratio 7:11. If each of them saves `60 per month. Find their monthly income. (Ans. `200, `280)
12. There has been increment in the wages of labourers in a factory in the ratio of 22:25, but there has also been
a reduction in the number of labourers in the ratio of 15:11. Find out in what ratio the total wage bill of the
factory would be increased or decreased. (Ans. 6:5 decrease)
1.1.3. Variations:
i.e. A ∝ 1/ B
Or, A = K/B [K = Constant of proportionality]
Or, K = AB
Example: Speed (S) is inversely proportional to time (t) i.e.
S ∝ 1/ t
Or, S = K / t
Or, K = St
A ∝ ( BCD ……)
i.e. V ∝ lbh
Or, V = Klbh
Or, K = V / lbh
(vi) If A ∝ B , then An ∝ B n .
(vii) If A ∝ B and C ∝ D , then AC ∝ BD and A/C ∝ B/D
Illustration 10.
If a + b ∝ a − b prove that
(i) a ∝ b
(ii) a 2 + b 2 ∝ a 2 − b 2
(iii) a 2 + b 2 ∝ ab
Answer:
(i) Since a + b ∝ a − b , then a + b = k ( a − b ) , k is constant of variation. Or, ( k − 1) a = ( k + 1) b
a k +1
Or, =
b k −1
a k +1 k +1
Or, = × b = mb , where m = , a constant, Hence a ∝ b
b k −1 k −1
a 2 + b 2 m 2b 2 + b 2 m 2 + 1
(ii) = = = a constant. So a 2 + b 2 ∝ a 2 − b 2
a 2 − b 2 m 2b 2 − b 2 m 2 − 1
a 2 + b 2 m 2b 2 + b 2 ( m + 1)
2
(iii) = = = a constant. So a 2 + b 2 ∝ ab
ab mb 2
m2
Illustration 11.
If x + y ∝ x − y , prove that ax + by ∝ px + qy , where a, b, p q are constants
Answer:
As x + y ∝ x − y, So x + y = k (constant)
x− y
x k +1
Or, x + y = k ( x − y ) Or, ( k − 1) x = ( k + 1) y Or, y = k − 1 = m (a constant), Or, x = my
ax + by amy + by am + b constant. So ax + by ∝ px + qy
= = =
px + qy pmy + qy pm + q
Illustration 12.
If ( a + b ) ∝ ( a − b ) show that ( a 2 + b 2 ) ∝ ab
Answer:
a k +1
As ( a + b ) ∝ ( a − b ) , So ( a + b ) = k ( a − b ) Or a ( k − 1) = b ( k + 1) , Or, = = m (a constant)
b k −1
a 2 + b2 a b k + 1 k − 1
= + = + = Constant. So ( a 2 + b 2 ) ∝ ab
ab b a k −1 k +1
Illustration 13.
If the cost price of 12 kg. of rice is `10, what will be the cost of 15 kg. of rice?
Answer:
Let Cost and Quantity be denoted by A and B.
Given: A = `10, B = 12 kg. Now A∝ B i.e., A = KB or, 10 = K. 12 or, K = 10/12
Now, we are to find A, when B = 15 kg.
Again from A = KB, we have A =10/12 × 15 = `12.50
Illustration 14.
A man can finish a piece of work, working 8 hours a day in 5 days. If he works now 10 hours daily, in how many
days can he finish the same work?
Answer:
Let A = No. of days required to finish the work and B = Working hours per day
Given: A = 5, B = 8, it is clear that A∝ 1/B
i.e. A = k. 1/B or 5 = k. 1/8 or k = 40
To find A when B = 10, we have A = 40 ×1/10 = 4 days
Illustration 15.
One part of the total expenditure in a hostel is constant and the other part directly varies with the number of
boarders. Per head expenditure is `100 when the number of boarders is 35 and `80 when the number of boarders
is 45. If the number of boarders is 150 find the total expenditure of the boarders.
Answer:
Let n be the number of boarders and E be the total expenditure of the hostel. Part of the total expenditure is constant
= F (let) and the other part of the total expenditure is V (let)
By question
V∝ n, then V = Kn, where K is constant
So, E = F + V = F + Kn … … … … (1)
When n = 35, then E = 35 ×100 = ` 3500
When n = 45, then E = 45 × 80 = ` 3600
From (1) 3500 = F + K35 … … … … (2)
From (2) 3600 = F + k 45 … … … … (3)
Illustration 16.
If (5a – 2b) : (2a + b) = (6a – b) : (8a – b) find a : b
Answer:
Given (5a – 2b) : (2a + b) = (6a – b) : (8a – b)
5a − 2b 6a − b
Or, =
2a + b 8a − b
Or, (5a − 2b )(8a − b ) = ( 6a − b )( 2a + b )
Or, ( 4a − 3b )( 7a − b ) = 0
So, 4a − 3b = 0 and 7a − b = 0
Therefore 4a = 3b i.e. a = 3
b 4
a 1
and 7a = b i.e. =
b 7
1.2.1.1 Interest:
Interest is the additional money which is paid by the borrower to the lender on the principal borrowed. The additional
money (or) interest is paid for the use of money by the borrower. Interest is usually denoted by I.
For example:
Y borrowed ` 500 from Z for a year and returned `550. Here `50 is paid additionally. This `50 is the interest.
2. A = P + S.I
3. r = S.I ×100/Pt
4. t = S.I ×100/Pr
5. P = S.I × 100/rt
6. P = A – S.I
7. S.I = A – P
(
8. A = P 1 +
rt
100 )
Illustration 17.
Amit deposited `1,200 to a bank at 9% simple interest p.a. find the total interest that he will get at the end of 3
years.
Answer:
Here P = 1200, r = 9/100 = 0.09, t = 3, I =?
I= P × r × t = 1200 × 0.09 × 3 = 324.
Amit will get `324 as interest.
Illustration 18.
Sumit borrowed `7,500 are 14.5% p.a S.I. for 2-1/2 year. Find the amount he had to pay after that period
Answer:
P = 7500, r = 14.5/100 = 0.145, t = 2-1/2 = 2.5, A =?
( rt
)
A = P 1 + 100 = 7500 (1+ 0.145 × 2.5) = 7500 (1+ 0.3625)= 7500 × 1.3625 = 10218.75
Illustration 19.
What sum of money will yield `1407 as interest in 1-1/2 year at 14% p.a simple interest?
Answer:
Here S.I = 1407, t = 1.5, r = 0.14, P =?
S.I = P × r × t or, 1407 = P × 0.14 × 1.5
Or, P = 1407/(0.14 × 1.5) = 6700
Required amount = `6,700
Illustration 20.
A sum of `1,200 was lent out for 2 years at S.I. The lender got `1,536 in all. Find the rate of interest.
Answer:
P = 1200, A = 1536, t = 2, r = ?
A = P (1+ rt/100) or, 1536 = 1200 (1 + r × 2/100) = 1200 + 24r
Or, 1536 – 1200 = 24r or, r = 336/24 = 14
Required rate = 14%
Illustration 21.
At what rate percent of Simple Interest will a sum, become double of itself in 5-1/2 years?
Answer:
A = 2P, P = principal, t = 5.5, r = ?
A = P (1 + rt/100) or, 2P = P + P × r × t/100
1 = r × 5.5 /100
Required. Rate = r = 18.18%
Illustration 22.
In a certain time `1200 becomes `1560 at 10% p.a simple interest. Find the principal that will become ` 2,232 at
8% p.a in the same time.
Answer:
In 1st case: P = 1200, A = 1560, r = 0.10, t = ?
1560 = 1200 {(1 + t × (.10)} = 1200 + 120t
Or, 120t = 360 or, t = 3
Illustration 23.
Divide ` 2,760 in two parts such that simple interest on one part at 12.5% p.a for 2 years is equal to the simple
interest on the other part at 12.5% p.a for 3 years.
Answer:
Let Investment in 1st case = X (say)
Investment in 2nd case = ` (2,760 – X)
Interest in 1st case = X×2×0.125
Interest in 2nd case = (2760–X)×3×0.125
Illustration 24.
A person borrowed `8,000 at a certain rate of simple interest for 2 years and then `10,000 at 1% lower than the first
for 1 year. In all he paid `2,500 as interest in 3 years. Find the two rates at which he borrowed theamount.
Answer:
Let the rate of interest in the 1st cast = r, so that in the 2nd case, rate of interest will be (r–1). Now
8000×r×2/100 + 10000×(r–1)×1/100 = 2500
Or, 160r +100r-100 = 2500
Or, 260r = 2600
Or, r = 2600/260 = 10%
So in first case interest is 10% and in second case it is (10–1) = 9%
Calculation of interest on deposits in a bank: Bank allows interest at a fixed rate on deposits from a fixed day of
each month up to the last day of the month. Again interest may also be calculated by days.
This something extra is the compensation for foregoing current consumption – in financial term called INTEREST.
The interest can be used to express the time value of the money.
� What is `1 to be deposited per year for n years’ worth at the end of nth year from today ⇒ Future value of an
annuity
� What is `1 to be received in nth year from today worth today ⇒ Present value of a single flow
� What is `1 to be received per year for n years’ worth today ⇒ Present value of an annuity
Applications
(iii) For finding out the value a new project contributes to the organization.
(iv) For finding out the value of a particular division within an organization.
As shown above the interest amounts to `11 in the second year composed of `10 as interest on the original principal
of `100 in the first year and (10/100)×10 i.e. `1 as interest on the interest of the first year in the second year .This
interest on interest principle is called interest compounded annually.
So if ‘P’ is deposited for ‘n’years at an interest rate ‘r% ’ , compounded annually , then the amount P would be
• At the end of 1st year
= FV1 = P × (1 + r ) , where FV1 is the future value of P at end of year 1
1
• At the end of 2nd year
= FV2 = P × (1 + r ) where FV2 is the future value of P at end of year 2
2
• At the end of 3rd year
= FV3 = P × (1 + r ) where FV3 is the future value of P at end of year 3
3
…………………….
In general equation (1) gives FVn — the future value of a deposit at the end of nth period if r is the interest rate
per annum.
Equation (1) is the basic equation in compounding analysis.
FVn = P × FVIFr ,n , where FVIFr , n is the future value interest factor at r% for n periods
Tables have been constructed for FVIFr , n for wide ranges of r & n. Such table is given at the end of all finance
book.
So if the interest is added after certain period of time (say yearly, half yearly, quarterly and monthly etc) to the
principal so that the amount at the end of the period becomes the principal for the next time period then the total
interest paid over all the time period is called the Compound Interest. It is usually denoted by C.I.
Illustration 25.
If Mr. X deposits `5,000 today in a bank which pays 8% interest compounded annually, how much the deposit
will grow at the end of 10th year ?
Answer:
Here we are going to find FVn = P × FVIFr ,n , where P = `5,000, n = 10 and FV8%,10 = 2.159. So FV10 = 5000 × 2.159
= 10795.
month from April to September and `10,000 is deposited at the end of every month from October to December.
It is a multiple flow but not an annuity – although interval between successive deposits is unchanged but there
are changes in amount of deposit.
(d) `10,000 is deposited at the end of first year, `10,000 is deposited at the end of 4th year and `10,000 is deposited
at the end of 9th year. It is a multiple flow but not an annuity – although there is no change in the amount of
deposit but interval between successive deposits is changed.
(e) `10,000 is deposited at the end of first quarter, `20,000 is deposited at the end of 3rd quarter and `18,000 is
deposited at the end of 4th quarter. It is a multiple flow but not an annuity – because here interval between
successive flows as well as quantum, both changed. No deposit is made at the end of 2nd quarter and every time
deposit amount varied.
Annuities are of two types:
(i) Regular annuity or deferred annuity when flow of money occurs at the end of a period;
(ii) Annuity due when flow of money occurs at the beginning of a period;
Suppose an individual will deposit `1,000 in a bank at the end of each year for next five years. Also suppose bank
gives 10% interest p.a. What will be the matured amount at the end of the fifth year?
Here there will be an annuity because interval between successive deposits is same (one year) and quantum of
deposit in each case is also same (`1000). Moreover since deposit is made at the end of a period, therefore the
annuity is Regular annuity.
Total matured amount comprises of –
1st year 2nd year 3rd year 4th year 5th year
` 1000 ` 1000 ` 1000 ` 1000 ` 1000
1. Future value of `1,000, deposited at the end of 1st year matured at the end of 5th year FVn = P × FVIF(r, n) i.e.
FV4 = 1000 × FVIF (10%, 4) = 1000×1.464 (from table) = ` 1464;
2. Future value of `1,000, deposited at the end of 2nd year matured at the end of 5th year FVn = P × FVIF(r, n) i.e.
FV3 = 1000 × FVIF (10%, 3) = 1000×1.331 (from table) = ` 1331;
3. Future value of `1,000, deposited at the end of 3rd year matured at the end of 5th year FVn = P × FVIF(r, n) i.e.
FV2 = 1000 × FVIF (10%, 2) = 1000×1.210 (from table) = ` 1210;
4. Future value of `1,000, deposited at the end of 4th year matured at the end of 5th year FVn = P × FVIF(r, n) ie.
FV1 = 1000 × FVIF (10%, 1) = 1000×1.100 (from table) = ` 1100;
5. Future value of `1,000, deposited at the end of 5th year matured at the end of 5th year FVn = P × FVIF(r, n) i.e.
FV0 = 1000 × FVIF (10%, 0) = 1000×1.000 (from table) = ` 1000;
Sum total of (1) to (5) will be the matured amount of the annuity at the end of 5th year i.e. `6105
But instead of computing the matured amount of a regular annuity in the aforesaid manner, general formula is made
and that is
FVn = P ×
(1 + r )n − 1 … … … … … … (2)
r
Where,
FVn = Future value;
P = Amount deposited at the end of each period;
r = Rate of interest per period;
n = Duration of the annuity;
(1 + r )n − 1 : This factor is called Future Value Interest Factor for Annuity (Regular) for period n at an interest rate
r
of r p.a or FVIFr,n
Tables have been constructed for FVIF(r, n) for wide ranges of r & n.
So in our illustrative problem P = `1000, r = 10% p.a, n = 5 yrs;
Therefore FVn = P ×
(1 + r )n − 1 = P × FVIF = 1000 × 6.105 (from table) = `6105, same as in our previous
r 10%,5
calculation.
(1 + r )n − 1 × (1 + r )
FVn = P × … … … … … … (2A)
r
The factor 1 is called Present value interest factor of a single flow or PVIF at r percent for n years.
(1 + r ) n
Interest rate in the above formula is also called discount rate or the capitalization rate.
A present value table containing PVIFs for wide ranges of ‘r’ and ‘n’ is available.
Present value bears the following characteristics in contrast to future value:
� Greater the interest rate, lower is the present value.
� Interest compounding period more, lower is the present value.
0 1 2 3
A A A A
PVA = 1 + 2 + 3 + ……………+
(1 + r ) (1 + r ) (1 + r ) (1 + r )n
PVA = A
(1 + r )n − 1 … … … … … … (4)
r (1 + r )
n
The factor
(1 + r )n − 1 is called Present value interest factor of an (ordinary) annuity or PVIFA in short.
r (1 + r )
n
A present value table containing PVIFAs for wide ranges of ‘r’ and ‘n’ is available
PVIFA =
(1 + r )n − 1
r (1 + r )
n
Or, PVIFA =
(1 + r )n − 1 × 1
r ( r )n
1 +
Illustration 26.
Mr. X will receive `1500.00 at the end of every year starting from today and this will continue for next 5 years.
How much deposit he has to make today if the interest rate is 10% p.a..?
Answer:
This is clearly a problem of present value. Since the receipts in the hands of Mr. X are of same magnitude and also
occurring in equal intervals of time – at the end of every year. So receipts form regular annuity. Present value of
such annuities as per formula 4 is
PVA = A
(1 + r )n − 1
r (1 + r )
n
OR
PVA = A
(1 + r )n − 1 × (1 + r ) … … … … … … (4A)
r (1 + r )
n
So from formula (1), (2), (2A), (3), (4) & (4A) we can summarize the following formula for unit amount (i.e. A = 1),
for interest rate ‘r p.a.’ and for ‘n years’ for ready reference and comparative study.
In all the above cases we have considered Compounded Annually. But if compounding i.e. interest on interest is
given more than once in a year then formulae need modification. More than once compounding will be treated in
next note.
If compounding is done annually total amount at the end of one year will be `1050.00 instead of `1050.625. Extra
amount is `0.625.This is nothing but the interest for the last six months on interest for the first six months i.e.
Interest for the first six months = ` 25.00
Interest on this amount @ 5% p.a. for the last six months = 25×5/100×1/2 = `0.625. So in one year if compounding
is done every six months the maturity value will be
`1050.625 = 1000 × (1.050625)
= 1000 × (1 + 0.05625)
( )
2
5
= 1000 × 1 +
200
5
= 1000 × {1 + ) 2×1 … … … … … … (7)
2 × 100
In formula (7), first ‘2’ represents no of times compounding is done in one year for semi-annual compounding.
Therefore general formula for future value of a single flow ` P, deposited for ‘n’ years at an interest rate of ‘r %
p.a’ with compounding done ‘m’ times in a year is
( )
m× n
r
FV = P × 1 + … … … … … … (8)
m
Following the same principle the general formula for different types of flows for ‘n’ years at an interest rate of ‘r
% p.a’ with compounding done ‘m’ times in a year are given below for an unit amount (i.e. A = 1):
Illustration 27.
Mr. P opened a recurring deposit account in a bank, started depositing semi-annual instalments in arrear amounting
` 5000 for 5 years. If the rate of compound interest is 6% p.a. what will be the maturity amount.
Answer:
It is a problem of future value of regular annuity when compounding is done more than once in a year – in the given
problem it is twice in a year. So the matured amount will be:
5000 × FVIFA r = 5000 × FVIFA 6 = 5000 × FVIFA(3%,10)
Amount = ( m ,mn) ( 2,5×2)
= 5000 × 11.464 (from table) = `57320
( )
m
r
Effective rate = 1 + m −1
Illustration 28.
Find the compound interest on `1000 for 4 years at 5% p.a
Answer:
Here P = `1000, n = 4, r = 0.05, A = ?
Illustration 29.
In what time will a sum of money double itself at 5% p.a C.I.
Answer:
Here, P = P, A = 2P, r = 0.05, n = ?
We have FVn = A = P × (1 + r )
n
Or, 2P = P × (1 + 0.05)
n
Or, 2 = (1 + 0.05)
n
log 2
Or, log 2 = n log 1.05 Or, n = = 14.2 years
log1.05
72
From rule of 72 approximate doubling period = = 14.4 years
5
Illustration 30.
The difference between simple and compound interest on a sum put out for 5 years at 3% was `46.80. Find the sum.
Answer:
Let the sum is X
Simple Interest = X × 0.03 × 5
So by question we can write [ X (1 + 0.03)5 – X ] – [ X × 0.03 × 5 ] = 46.80
Illustration 31.
What is the present value of `1,000 due in 2 years at 5% compound interest p.a, according as the interest is paid
(a) yearly (b) half-yearly?
Answer:
FV
(a) We know present value P = , where interest is paid yearly
(1 + r )n
1000 1000
Or, P = = = ` 907 (approx)
(1 + 0.05)2 1.1025
FV
(b) We know present value P = , where interest is paid m times in a year
(1 + r / m)mn
In the given case interest is paid semiannually i.e. m = 2
FV 1000
P= = = ` 906 (approx)
(1 + r / m)mn
( )
2× 2
0.05
1+
2
Illustration 32.
A sum of money invested at C.I. payable yearly amounts to `10,816 at the end of the second year and to `11,248.64
at the end of the third year. Find the rate of interest and the sum.
Answer:
We have FVn = A = P × (1 + r )
n
11248.64 P × (1 + r )
3
Or, 1.04 = 1 + r Or, r = 0.04 Or, r = 4%. This is the required rate of interest.
From (1) we have A = P × (1 + r ) Or, 10816 = P (1.04) . So P = `10,000. This is the required sum
n 2
Illustration 33.
Calculate the value 5 years hence of a deposit of `1,000 made today when the interest rate is 8% p.a. if (i) simple
interest is given (ii) compound interest is given
Answer:
(i) On simple interest
Interest amount at the end of 5 years = 1000 × 0.08 × 5 = ` 400
Illustration 34.
Find the present value of ` 1,000 receivable 6 years hence if the rate of compound interest is 6% p.a.
Answer:
Let the present value = P
So by question we can write 1000 = P × (1 + 0.06)6 = P × (1.06)6
1000
So, P = = ` 704.96
(1.06)6
Illustration 35.
A finance company offers to give `8000 after 12 years in return for `1000 deposited today. Find out the approx
rate of interest offered p.a?
Answer:
By question we can write 8000 = 1000 × (1 + r )
12
8000
= (1 + r )
12
1000
Or, 8 = (1 + r )
12
Or, r = 19%
Illustration 36.
A bank offers 8% nominal rate of interest with quarterly compounding. What is the effective rate of interest?
Answer:
( )
m
k
We know that effective rate of interest r = 1 + −1
m
Where
r = effective rate of interest
k = nominal rate of interest
m = no of times interest is given in a year
( )
4
0.08
So by question we can write r = 1 + −1
4
Or, r = (1.02) − 1 ≅ 0.082 = 8.2%
4
Illustration 37.
A man invests `100 at the end of 2001, `200 at the end of 2002, `300 at the end of 2003, `400 at the end of 2004 &
`500 at the end of 2005. If all interest accumulates at 5% p.a. what do his investments amount to at the end of 2006?
Answer:
By question we can write
A1 = 100 × (1.05) = 127.6282
5
Illustration 38.
Mr S invests in a bank ` X on the first day of 2006. In the subsequent years on the 1st of January he deposits money
double that of the money deposited in the previous year after withdrawing the interest only on the same day. It was
found that balance in his account on 2nd January 2015 was `2046. Find out the amount he deposited on 1st January
2006.
Answer:
Let the money invested on 1st January 2006 be X.
Then by question we can write
X + 2 X + 4 X +10 terms = 2046 [As, time period between 1st January 2006 to 1st January 2015 is 10 years.]
Or, X
(2− 1)
10
= 2046
2 −1
Or, 1023 X = 2046
Or, X = ` 2
Illustration 39.
Find the interest on `1000 for 10 years at 4% p.a., the compound interest being paid quarterly
Answer:
By question we can write
( )
4×10
0.04
A = 1000 × 1 +
4
Or, A = 1000 × (1.01)
40
Illustration 40.
Someone promises to give you `5,000 after 10 years in exchange for `1,000 today. What interest rate compounded
annually is implicit in the offer?
Answer:
By question we can write
A = P × (1 + r )
10
Or, 5 = (1 + r )
10
Illustration 41.
If `1 was deposited in the post office savings bank on 1st April, 2003, what would it amount to on 1st April 2033 if
compound interest at 3% p.a. was allowed?
Answer:
By question we can write
A = 1 × (1 + 0.03)30
Or, A = (1.03)30 = ` 2.43 (approx.)
Illustration 42.
A sum of money invested at compound interest amounts to `21632 at the end of 2nd year and `22497.28 at the end
of third year. Find the rate of interest and sum invested.
Answer:
By question we can write
21632 = P × (1 + r ) … … … … … (1)
2
22497.28 = P × (1 + r ) … … … … … (2)
3
22497.28 (1 + r )
3
=
21632 (1 + r )2
Or, 1.04 = 1 + r Or, r = 0.04 = 4%
Now we can write
21632 = P (1.04)2 Or, P = ` 20,000
Illustration 43.
What is the difference between the effective rate of interest and nominal rate of interest in the following case?
“Nominal rate of interest is 24% and the frequency of compounding is twelve times a year”
Answer:
( )
m
k
We know that effective rate of interest r = 1 + −1
m
Where
r = effective rate of interest
k = nominal rate of interest
m = no of times interest is given in a year
( )
12
0.24
So by question we can write r = 1 + −1
12
Or, r = (1.02) − 1 ≅ 0.268 = 26.8%
12
Illustration 44.
Mr. Raghu deposits `10,000 in a bank now. The interest rate is 10% and compounding is done semi-annually. What
will the deposit grow to after 10 years?
Answer:
( )
m ×t
r
By question we can write A = P × 1 + m
( )
2×10
0.1
So we can write A = 10000 × 1 +
2
Or, A = 10000 × (1.05)
20
Or, A = ` 26532.98
33
Arithmetic
34
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Fundamentals of Business Mathematics and Statistics
The Institute of Cost Accountants of India 35
Fundamentals of Business Mathematics and Statistics
36 The Institute of Cost Accountants of India
Arithmetic
1.3.1.1 Formula for calculating the value Common Difference (D) of an A.P
We have “d” = 2nd Term – 1st Term or (Any term – its preceding term)
The value of “d” is constant throughout the Series. In other words, “d” calculated from any two consecutive terms
will be equal throughout
For example,
d1 = 5th term – 4th term
d2 = 8th term – 7th term
Both, d1 and d2 will be equal for any given A. P.
If the common difference is Positive (d > 0), the terms of the series will be in ascending order. In other words, the
1st term will be smaller than the 2nd term and so on.
For example,
Series: 1, 3, 5, 7, 9 has “d” = 2 {5–3 = 2; 3–1 = 2}
Illustration 45.
A given series is: 26, 29, 32, 35, 38, 41 Identify the type of Series. Also calculate the values of “d” and ‘a’.
Answer:
From the given series it can be inferred that any term of the series is obtained by adding a constant to the preceding
term. So the type of Series is A. P.
Values of “d” and ‘a’:
‘a’ – First Term of the Series = 26.
“d” – Common Difference between any two consecutive terms of the series
“d” = 2nd term – 1st term = 29 – 26 = 3
So Type of Series- A. P. with 1st Term (a) = 26 and Common Difference (d) = 3.
Illustration 46.
Form an A.P. with the value of “d” = 6, ‘a’ = – 13. Determine first 5 terms.
Answer:
The following values of “d” and ‘a’ are given,
‘a’ – First Term of the Series = – 13.
‘d’ – Common Difference between any two consecutive terms of the series = 6
The first 5 terms of the Series would be determined as follows:
– 13, (– 13+6), (– 13+6+6), (– 13+6+6+6), (– 13+6+6+6+6)
A. P. Series with first 5 terms: – 13, – 7, – 1, 5, 11
1.3.1.2 Formula for determining the value of nth term (tn) of an A.P.
t n = a + (n − 1) × d
Where,
tn= Value of the nth term
a = First Term of the Series
n = Number of terms in the Series
d = Common Difference between any two consecutive terms of the Series
The above mentioned formula can be taken into consideration for the following:
(i) To find the number of terms of the Series.
(ii) To Find the Common Difference between two consecutive terms of the Series.
(iii) To Find the First Term of the Series.
(iv) To Find the Value of the nth term of the Series.
(v) To Find the Value of the Last Term of the Series, if value of ‘n’ is given.
For the above illustration a = –13 and d = 6
1st term = a = – 13 (given)
Using formula tn = a + (n – 1) d
2nd term = t2 = – 13 + (2 – 1) × 6 = – 13 + 1 × 6 = – 13 + 6 = – 7
3rd term = t3 = – 13 + (3 – 1) × 6 = – 13 + 2 × 6 = – 13 + 12 = – 1
4th term = t4 = – 13 + (4 – 1) × 6 = – 13 + 3 × 6 = – 13 + 18 = 5
5th term = t5 = – 13 + (5 – 1) × 6 = – 13 + 4 × 6 = – 13 + 24 = 11
If the Common Difference is Negative (d < 0), the terms of the series will be in descending order. In other words,
the 1st term will be larger than the 2nd next term and so on.
For example,
Series: 9, 7, 5, 3, 1 has d = – 2 {5 – 7 = – 2; 7 – 9 = – 2}
Illustration 47.
A given series is: a + 14, a + 12, a + 10, a + 8, a + 6 Identify the type of Series. Also calculate the values of ‘a’
and d.
Answer:
Since from the Series it is observed that Subtraction of an constant being made to obtain the consecutive terms, the
type of Series is A. P.
Values of a & d:
‘a’ – First Term of the Series = a +14.
‘d’ – Common Difference between two consecutive terms of the series
‘d’ = 2nd term – 1st term = (a +12) – (a+14) = a+12–a–14 = 12–14 = – 2
So Type of Series- A. P. with 1st Term (a) = a +14 and Common Difference (d) = –2.
1.3.1.3 Formula for Calculating the Sum of the terms (Sn) for any A.P.
n
Sn = × {2a + (n − 1) × d }
2
Where
Sn = Sum upto n terms of the series
Number of terms in the series = n
1st Term of the series = a
Common Difference between any two consecutive terms of the series = d
Illustration 48.
Find the sum of the first 10 terms for the series: 12, 15, 18, 21, 24.
Answer:
For calculating the sum of first 10 terms of the given series: 12, 15, 18, 21, 24, the following formula is used.
n
Sn = × {2a + (n − 1) × d }
2
n = Number of terms in the series = 10
a = 1st Term of the series = 12
d = Common Difference between any two consecutive terms of the series = 2nd term – 1st term = 15 – 12 = 3
S10 = (10/2) × {2 × 12 + (10-1) × 3}
1.3.2.1 Formula for calculating the value of Common Ratio (r) of a G.P.
2nd Term Any Term
We have r = Or
st
1 Term Previous Term
The value of r is constant throughout the Series. In other words, ‘r’ calculated from any two consecutive terms will
be throughout.
For example,
r1 = 6th term / 5th term
r2 = 9th term / 8th term
Both, r1 and r2 will be equal for any given G. P.
If the Common Ratio is greater than 1 the terms of the series will be in ascending order.
For example,
Series: 1, 3, 9, 27, 81 has ‘r’ = 3 {9/3 = 3; 3/1 = 3}
Illustration 49.
A series is given as: 7, 14, 28, 56, 112 Identify the type of Series. Also calculate the values of ‘a’ and ‘r’.
Answer:
Since from the Series it is observed that there exist a Common Ratio between the consecutive terms, the type of
Series is G. P.
‘r’ – Common Ratio between any two consecutive terms of the series
So the type of Series is G. P. with 1st Term (a) = 7 and Common Ratio (r) = 2.
Illustration 50.
For the given series: 1875, – 375, 75, – 15, 3, find out the values of ‘a’ and ‘r’. Also identify the type of Series.
Answer:
Since the Series has a Common Ratio beween the consecutive terms, the type of Series is G. P.
Values of ‘a’ and ‘r’:
‘a’ – First Term of the Series = 1875.
‘r’ – Common Ratio between any two consecutive terms of the series
‘r’ = 2nd term / 1st term = – 375 / 1875 = – 1/5
Type of Series- G. P. with 1st Term (a) = 1875 and Common Ratio (r) = – 1/5.
1.3.2.2 Formula for determining the value of nth term (tn) of a G.P
t n = ar n-1
Where,
tn = Value of the nth term
a = First Term of the Series
n = Number of terms in the Series
r = Common Ratio between two consecutive terms of the Series
The above mentioned formula can be taken into consideration for the following:
(i) To find the number of terms of the Series.
(ii) To Find the Common Ratio between two consecutive terms of the Series.
(iii) To Find the First Term of the Series.
(iv) To Find the Value of the nth term of the Series.
(v) To Find the Value of the Last Term of the Series, if value of ‘n’ is given.
Illustration 51.
Determine 9th term for the series: 11, 33, 99, 297, 891.
Answer:
We know that tn = ar n −1
a = First Term of the Series = 11
n = Number of terms in the Series = 9
r = Common Ratio between two consecutive terms of the Series
r = 2nd term / 1st term = 33/11 = 3
tn = a × r (n-1)
Or, t9 = 11 × 3(9-1)
Or, t9 = 11 × 3(8) = 72171
1.3.2.3 Formula for Calculating the Sum of the terms (Sn) for any G. P.
rn − 1
Sn = a , When r > 1
r −1
1 − rn
Sn = a , When r < 1
1− r
Where
Sn = Sum upto n terms of the series
n = number of terms in the series
a = 1st Term of the series
r = Common Ratio between any two consecutive terms of the series
For a G.P with infinite terms, the cormula for Summation is S = when r < 1
Illustration 52.
Find the sum of the first 9 terms for the series: 5, 10, 20, 40, 80.
Answer:
n = number of terms in the series = 9
a = 1st Term of the series = 5
r = Common Ratio between any two consecutive terms of the series
r = 2nd term / 1st term = 10/5 = 2 > 1
Illustration 53.
Find the sum of the first 10 terms for the series: 48, 24, 12, 6, 3.
Answer:
n = number of terms in the series = 10
a = 1st Term of the series = 48
r = Common Ratio between any two consecutive terms of the series
r = 2nd term / 1st term = 24/48 = 1/2 < 1
Hints:
Let a denote the first term and d the common difference. So by question we can write
1 1
tm = = a + (m − 1) d & tn = = a + (n − 1) d [a = 1st term and d = Common difference]
n m
1 1
Now − = (m − 1) d − (n − 1) d
n m
m−n
Or, = md − d − nd + d
mn
m−n
Or, = (m − n) d
mn
1
Or, d =
mn
1 1 1 1 m 1 1
Now from the expression for tm we can write a = − (m − 1) d = − (m − 1) = − + = = d (Proved)
n n mn n mn mn mn
2. If a′ = 1 + c a + c 2a + c 3a + ∞ (0 < c < 1)
b 2b 3b
And b′ = 1 + c + c + c + ∞ (0 < c < 1)
1 1
(a′ − 1) a (b′ − 1) b
Then prove that c = =
a′ b′
Hints:
1
By question we can write a′ = 1 + c a + c 2a + c 3a + ∞ = [from sum of infinite GP series]
1 − ca
b 2b 3b
Similarly b′ = + c + c + c + ∞ =
1
( )
1
1 a 1 − 1 + ca a
1
−1 1 − ca 1
(a′ − 1) 1a
− ca (c a ) a
Now = = = c
=C
a′ 1 1 1
1 − ca 1− c a
Similarly (b′ − 1) = c
b
b′
3. If pth, qth, rth terms of an AP are a, b, c respectively. Show that (q – r) a + (r – p) b + (p – q) c = 0
Hints:
Let 1st term = A and Common difference = d
By question we can write
a = A + (p – 1) d … … … (i)
b = A + (q – 1) d … … … (i)
c = A + (r – 1) d … … … (i)
By (i) × (q – r), (ii) × (r – p) & (iii) × (p – q) and subsequently adding we get
a (q – r) + b (r – p) + c (p – q)
= A (q – r + r – p + p – q)
+ d [(p – 1) (q – r) + (q – 1) (r – p) + (r – 1) (p – q)]
= 0 + d [pq – q – pr + r + qr – r – pq + p + pr – p – qr + q]
=0+0=0
a a b b c c
4. If x = a + + + .. ∞ , y = b − + 2 − .. ∞ , & z = c + 2 + 4 − .. ∞
r r2 r r r r
xy ab
Show that =
z c
Hints:
By applying sum of infinite G.P series formula
ara
By question x = =
1 r −1
1−
r
br cr 2
Similarly y = &z= 2
r +1 r −1
a br 2
xy r 2 − 1 ab
Now = =
z cr 2 c
r2 −1
5. The rate of monthly salary for a person is increased annually in AP. It is known that he was drawing `400 a
month during the 11th year of his service and ` 760 during the 29th year. Find his starting salary and the rate of
annual increment. What should be his salary at the time of retirement just on the completion of 36th years of
service?
Hints:
Let the salary per month in the 1st year is x and in every year it increased by an amount d.
6. A man secures an interest free loan of `14,500 from a friend and agrees to repay it in 10 instalments. He pays
`1,000 as first instalment and then increases each instalment by equal amount over the preceding instalment.
What will be his last instalment?
Hints:
Let the first instalment is A and equal increased amount is d
So payment of instalments will form a series like
A + ( A + d ) + ( A + 2d ) + 10 terms = 14500
Now by question A = 1000
7. Find the sum of the first 15 terms of a GP given by 1, – 1/2, 1/4, – 1/8…………………..
Hints:
−1/ 2 1/ 4 −1/ 8 1
Here a = 1 , r = = = = − , n = 15
1 −1/ 2 1/ 4 2
Hints:
Now 0.19 = 0.1+ 0.09 + 0.009 + 0.0009 +…………
= 1 + 9 2 + 9 3 + 9 4 +
10 10 10 10
1 9 1 1
= + × 1+ + ... ... ..
10 102 10 102
1 9 1 a
= + (Since the sum of the terms of an infinite G.P = , when r < 1)
10 102 1 1− r
1 −
10
1 9 10 2 1
= + × = =
10 102 9 10 5
9. If a, b, c, d are in GP then
(a) a 2 + b 2 , b 2 + c 2 , c 2 + d 2 are in GP
(b) a 2 − b 2 , b 2 − c 2 , c 2 − d 2 are in GP
(c) a 2b 2 , b 2c 2 , c 2d 2 are in GP
a 2 b2 c 2
(d) , , are in GP
b2 c 2 d 2
Hints:
We have b = ak, c = bk, d = ck. i.e. b = ak, c = ak2 & d = ak3. Hence the answer is (b)
10. MR X arranges to pay off a debt of `9600 in 48 annual instalments which form an AP. When 40 of these
instalments are paid, MR X becomes insolvent with Rs.2400 still remains unpaid. Then value of second
instalment is
(a) ` 97.50
(b) ` 92.50
(c) ` 82.50
(d) ` 87.50
Hints:
48 40
We can write 9600 = [2a + (48 − 1) d ] & (9600 − 2400) = [2a + (40 − 1) d ] & hence the answer is (d)
2 2
11. An enterprise produced 600 units in the 3rd year of its existence and 700 units in its 7th year. If production is
maintained as an AP then production in the first year is
(a) 580
(b) 575
(c) 550
(d) 590
Hints:
By question 600 = a + 2d & 700 = a + 6d and hence the answer is (c)
12. The sum of first 6 terms of a GP is 9 times the sum of first three terms. The common ratio is
(a) 3
(b) 1
3
(c) 1
(d) 2
Hints:
a (r 6 − 1) a (r 3 − 1)
=9 . Hence the answer is (d)
r −1 r −1
13. Find sum of all natural numbers from 100 to 300 which are divisible by 4
(a) 10900
(b) 10200
(c) 10000
(d) 11000
Hints:
Series is 100 + 104 + 108 +………. 300. So 300 = 100 + (n –1) 4, Hence the answer is (b)
1 39
14. If you insert 9 arithmetic means between and (−) , then 1st arithmetic mean is
4 4
1
(a) − 5
1
(b) −
8
(c) 0
3
(d) −
4
Hints:
1 −39 39 1
9 arithmetic means are inserted between & 4 i.e. we have 11 terms on the whole. So − = + (11 − 1) d .
4 4 4
Hence the answer is (d)
15. A man saved ` 16500 in 10 years. In each year after the first he saved ` 100 more than he did in the preceding
year. In the first year his savings was
(a) ` 1000
(b) ` 1000
(c) ` 1200
(d) ` 800
Hints:
10
16500 = [2 × a + 9 × 100], Hence the answer is (c)
2
16. A moneylender lends `1000 and charges an overall interest of `140. He recovers the loan and interest by 12
monthly instalments each less by `10 than the preceding one. The amount of the first instalment is
(a) ` 175
(b) ` 300
(c) ` 150
(d) ` 400
Hints:
12
1000 + 140 = [2 × a + 11 × (−)10] , Find ‘a’ to get the answer (c)
2
(a) 4r 3 + 2r 2 + r + 3
(b) r 3 + 5r 2 − 7r − 1
(c) 1
(d) 2r 3 − 3r 2 + 3r − 1
Hints:
The given series is AP with c.d. = 1 and hence the answer is (d)
Hints:
3 4
19. The sum of , , 5 ... ... ... to 25 terms is
5 5
1
(a)
5
(b) 5
15
(c)
5
75
(d)
5
Hints:
1
AP series where c.d. is and hence the answer is (d)
5
Exercise:
Theoretical Questions
Multiple Choice Questions (MCQ)
[Ratio, Variation and Proportion]
1. If Q: W = 2:3, W:T = 4:5 and T: Y = 6:7, find Q: Y.
(a) 35: 51
(b) 16: 35
(c) 16: 51
(d) 35: 51
2. Two numbers are in the ratio 7: 9, if the sum of the numbers is 288, then the smaller number is
(a) 126
(b) 288
(c) 162
(d) 144
3. When the number 1580 is increased in the ratio 5: 9, the new number is
(a) 788
(b) 2488
(c) 878
(d) 2844
4. The ratio of the number of faces to the number of edges of a box is
(a) 3: 8
(b) 8: 3
(c) 1: 2
(d) 2: 1
5. Find the fourth proportional to 6, 8, 9 is
(a) 18
(b) 12
(c) 7
(d) 13
6. Find the compounded ratio of: 15: 8 and 18: 5
(a) 27: 4
(b) 4: 27
(c) 27: 8
(d) 8: 27
1
7. Find the third proportional to 6 and 5
4
(a) 9 1
2
(b) 3 1
5
(c) 4
(d) 8
(a) 64a 2 : 2b 2
(b) 16a 2 : b 2
(c) 32a 2 : 4b 2
(d) 32a 2 : 8b 2
1 1
9. If A ∝ and A = 7 when B = 3, then when B = 2 , A is
B 3
3
(a)
7
(b) 3
(c) 9
(d) 1
A B X Y
10. If AB ∝ XY and + = + then
B A Y X
(a) A2 + B 2 ∝ X 2 + Y 2
(b) A + B ∝ XY
(c) AB ∝ X + Y
(d) A + B ∝ 1
X +Y
341 y 3 + 3 y
11. Using the properties of proportion, solve the following equation for y, given =
91 3 y 2 + 1
(a) 14
(b) 11
(c) 12
(d) 10
18. Find two numbers whose mean proportional is 8 and the 1st number is square of the 2nd number.
(a) 8, 8
(b) 4, 2
(c) 16, 4
(d) 64, 8
19. What number must be subtracted from each of the numbers 12, 13, 24 and 29 to make them proportional?
(a) 9
(b) 8
(c) 35
(d) 36
20. The ratio of the pocket money saved by Rakesh and his sister is 5:6. If the sister saves `60 more, how much
more the brother should save in order to keep the ratio of their savings unchanged?
(a) ` 60
(b) ` 40
(c) ` 50
(d) ` 70
21. AMS & Co. borrows `1,20,000 for one year at 15% annual interest, compounded monthly. Find their
monthly payment.
(a) ` 11,380
(b) ` 10,830
(c) ` 11,430
(d) ` 10,740
22. A certain sum of money invested at a certain rate of compound interest doubles in 8 years. In how many
years will it become 16 times?
(a) 31 years
(b) 28 years
(c) 30 years
(d) 32 years
23. Calculate the present value of an annuity of `3,000 received at the beginning of each year for 5 years at a
discount factor of 6%
(a) ` 13,998
(b) ` 13,398
(c) ` 14,398
(d) ` 14,898
24. AB LLP is expecting to receive a certain sum of money five years from now. If the present value of this
sum is `38,400 at current market interest rate of 6% when the interest is compounded monthly, then how
much amount they will receive after 5 years?
(a) ` 52,684
(b) ` 52,884
(c) ` 51,904
(d) ` 51,794
25. What sum will amount to `5480 in 6 years at 10% p.a. compound interest payable half-yearly?
(a) ` 3,051
(b) ` 2,051
(c) ` 3,501
(d) ` 2,501
26. Mr. Singh deposits `2,000 at the beginning of each year for 5 years. How much do these accumulate at the
end of 5th year at an interest rate of 6%?
(a) ` 10,272
(b) ` 11,591
(c) ` 10,727
(d) ` 11,951
27. A buys a shop for `48,750 down payment and `60,000 after one year. If the money is worth 10% per year
compounded half-yearly. Find the purchase price of the shop.
(a) ` 94,280
(b) ` 1,03,170
(c) ` 45,530
(d) ` 54,420
28. A loan of `20,000 has been issued for 5 years. Compute the amount to be repaid to the lender if simple
interest is charged @ 8% per year.
(a) ` 28,000
(b) ` 25,000
(c) ` 27,000
(d) ` 24,000
29. A sum of `4895 borrowed from a money lender at 5% p.a. compounded annually. Find the annual
instalment, if amount borrowed is to be paid back in three equal annual instalments.
(a) ` 1,597
(b) ` 1,997
(c) ` 1,397
(d) ` 1,797
30. AMS & Co. makes a monthly payment for `11,350 for one year at 11% annual interest, compounded
monthly. Find the amount borrowed by them.
(a) 1,31,889
(b) 1,38,284
(c) 1,21,542
(d) 1,22,802
31. Calculate the present value of an annuity of `5,000 received annually for 4 years at a discount rate of 5%.
(a) ` 17,720
(b) ` 12,250
(c) ` 22,250
(d) ` 27,720
32. Find the Principal, if the compound value is `9,750 at the interest rate of 6.25% p.a. compounded annually
for 16 years.
(a) ` 4,287
(b) ` 3,857
(c) ` 3,696
(d) ` 4,857
33. Find the amount and the compound interest of `9, 350 at the rate of 8% p.a. compounded half-yearly for
four years.
(a) ` 12,795 and ` 3,445
(b) ` 12,720 and ` 3,370
(c) ` 12,758 and ` 3,408
(d) ` 12,835 and ` 3,485
34. When the effective rate of interest is 7.82% payable quarterly, what would be the nominal rate of interest?
(a) 8.00%
(b) 7.60%
(c) 7.00%
(d) 8.20%
35. Find the present value of perpetuity of `2,725 at 0.50% per month compound interest.
(a) ` 45,167
(b) ` 45,417
(c) ` 44,517
(d) ` 44,157
36. A sum of money double itself at 7% p.a. compound interest in
(a) 10.27 years
(b) 10.00 years
(c) 12.07 years
(d) 12.00 years
37. A Laptop depreciated in value each year at 15% of its previous value and at the end of fourth year, the
value was `36,331. Find its original value.
(a) ` 69,600
(b) ` 69,200
(c) ` 69,300
(d) ` 69,500
38. A wants to create an endowment fund of `51,750 to provide for a prize of every year. If the fund can be
invested at 11% p.a. compound interest, find the amount of prize.
(a) ` 5,933
(b) ` 5,963
(c) ` 5,993
(d) ` 5,693
39. Accumulated series of deposits as future sum money is classified as –
(a) Annuity Fund
(b) Sinking Fund
(c) Marginal Fund
(d) Nominal Fund
40. The compound interest on `27,500 at 8% p.a. is `7,142. Calculate the required time.
(a) 3 years
(b) 2.5 years
(c) 3.5 years
(d) 4 years
47. If the sum of the series is 297, how many terms are there in the series?
(a) 8
(b) 9
(c) 10
(d) 7
48. What is the value of ‘a’?
(a) 40
(b) 12
(c) 5
(d) 7
49. Find the value of ‘d’?
(a) 7
(b) 5
(c) -7
(d) -5
50. Value of‘d’ is ____?
(a) Zero
(b) Negative
(c) Positive
(d) Undefined
51. Find the next 5 terms for the series: 2, -4, 8, -16, 32
(a) -64, 128, -256, 512, -1024
(b) 64, -128, 256, -512, 1024
(c) 64, 128, 256, 512, 1024
(d) -64, -128, -256, -512, -1024
52. Find the value of ‘r’ for the series: 729, 243, 81, 27, and 9
(a) 3
(b) -3
(c) 1/9
(d) 1/3
53. For any series having 50 terms forming A.P. with first term equal to 25, what will be the value of ‘n’?
(a) 50
(b) 25
(c) 75
(d) 100
54. Find the next 6 terms for the series: 128, 139, 150, 161, 172, 183.
(a) 194, 205, 216, 228, 240, 252
(b) 194, 205, 217, 229, 242, 256
(c) 194, 205, 218, 231, 245, 259
(d) 194, 205, 216, 227, 238, 249
55. For the given series: 66, 71, 76, 81, 86, 91, 96 ….666, 671, 676.
With ‘n’ terms in the series, what will be the value of ‘d’ ?
(a) -5
(b) 15
(c) -3
(d) 5
56. Identify the type of series and the value of ‘a’: -85, -83, -81, -79, -77
(a) A.P. , a = -85
(b) A.P. , a = -2
(c) G.P. , a = -2
(d) G.P. , a = -85
57. For any G.P. starting with 28, if each term is obtained by dividing the preceding one by 2, what would be
value of ‘r’?
(a) 2
(b) -2
(c) 1/2
(d) -1/2
58. If the First term is 748, Last Term is 28, and the value between two consecutive terms is 9 deducted, find
the number of terms in the series.
(a) 9
(b) 8
(c) 10
(d) None of the above
59. If the Last term is 187, First Term is 371, value between two consecutive terms is 8 deducted, find the
number of terms in the series.
(a) 25
(b) 22
(c) 23
(d) 24
60. Identify the type of series: 1+2+3+4+5
(a) H.P.
(b) G.P.
(c) Either of ‘a’ or ‘b’
(d) A.P.
61. When a Bike had travelled for 78 km in 3 hours 45 minutes in the evening, how much distance would the
Bike travelled in 2 hours?
(a) 41.60 km
(b) 48.88 km
(c) 52 km
(d) 55 km
62. A cycle travels a distance of 300 m in every second. What is the distance covered in an hour by the cycle?\
(a) 3000 km
(b) 1080 km
(c) 1800 km
(d) 2160 km
63. A Car takes 4 hours to travel 90 km. If time is reduced by 15 minutes, how much distance would be covered
in the given time?
(a) 84.375 km
(b) 80 km
(c) 95.625 km
(d) 90 km
64. A Train takes 35 hours to reach Punjab from Kolkata (1940 km) and takes 42 hours to reach Kolkata from
Gujarat (2160 km). But it took 25 hours from Punjab to Gujarat (1420 km). How many days it take for a
trip from Kolkata-Punjab-Gujarat-Kolkata and what is the distance covered?
(a) 4 days 6 hours and 5520 km
(b) 3 days 18 hours and 5520 km
(c) 4 days and 2680 km
(d) 5 days and 2680 km
65. If Bike had travelled at the speed of 40km/hr for 2 hours and scooty had travelled at the speed of 25km/hr
for 3 hours, which one of them covered more distance and how much more was covered?
(a) Scooty, 30km
(b) Bike, 80 km
(c) Bike, 5 km
(d) Scooty, 75km
66. If Bike covers 165 km in 3 hours and scooty covers 100 km in 2 hours, in order to cover 1025 km, how
much time would be required by bike and scooty?
(a) 12.42 hours and 12.42 hours
(b) 21.50 hours and 19.63 hours
(c) 19.52 hours and 19.52 hours
(d) 18.63 hours and 20.50 hours
67. y is the yardstick to measure the performance of two vehicles, where y = Speed × Time × Distance. If Time
taken by one of the vehicle (1st Vehicle) is increased by 10%, what would be the impact on the yardstick?
(a) No change
(b) 1st vehicle would be better than 2nd Vehicle
(c) 2nd Vehicle would be better than 1st Vehicle
(d) None of the Above
68. If a student is travelling at a speed of 45 km/hr, how long should it take to travel 90 km?
(a) 2 hours
(b) 3 hours
(c) 100 minutes
(d) 90 minutes
69. With 5% increase in Distance and 2.50% increase in Time, what would be the impact on Speed?
(a) Decrease by 2.44%
(b) Increase by 2.44%
(c) Increase by 2.38%
(d) Decrease by 2.38%
70. If a Car covered 200 km at a speed of 25kmph and a Bike covered 150 km at a speed of 30kmph, which
one of them took more time to cover the distance and what was the time taken?
(a) Car, 3hrs
(b) Bike, 8 hrs
(c) Car, 8 hrs
(d) Bike, 5 hrs
71. If Toto had travelled at the speed of 15km/hr for 11 hours and Car had travelled at the speed of 45km/hr
for 3.5 hours, which one of them covered shorter distance and how much short ?
(a) Car, 7.50 km
(b) Toto, 7.50 km
(c) Car, 15 km
(d) Toto, 15 km
72. If ratio between Speed(km/hr.) and Time(Hrs) is 7: 5, what will be the distance(km)?
(a) 30 km
(b) 35 km
(c) 36 km
(d) 42 km
73. The distance between two terminal stations of Metro is 240 km. A metro rail takes 2 hours to cover the
distance. Calculate the total distance covered in 5 days, if 10 trips to and fro takes place between the two
stations in a day?
(a) 6,000 km
(b) 12,000 km
(c) 24,000 km
(d) 18,000 km
74. If A takes 3 hours to cover a distance of 60 km, B takes 2 hours to cover a distance of 50 km, how much
time would A take more than B to cover 300 km?
(a) 6 hours
(b) 12 hours
(c) 15 hours
(d) 3 hours
75. If Toto covered 240 km at a speed of 40kmph while Scooty covered 180 km at a speed of 60 kmph, which
one of them took less time to cover the distance and what was the time taken ?
76. With 10% decrease in Distance and 5% increase in Time, what would be the impact on Speed?
77. The distance between two terminal metro stations A & B is 300 km. A metro rail takes 1.50 hours to cover
the distance. Calculate the total time worked by the driver (in terms of days) in a week, if 6 trips from
Station A to Station B takes place in a day?
78. y is the yardstick to measure the performance of two vehicles, where y = Speed × Time × Distance. If
Distance travelled by one of the vehicle (2nd Vehicle) is increased by 2%, what would be the impact on
the yardstick?
79. If a Toto travels for 6 hours on a working day to cover 1.5 times the distance travelled on holiday and on a
holiday it takes 4 hours to cover 110 km. than for a span of 7 days: (5 Working and 2 Holidays), how much
distance is covered?
(a) 1054 km
(b) 1045 km
(c) 880 km
(d) 990 km
80. If ratio between Time (seconds) and Speed (m/s) is 12:13, what will be the distance (m)?
(a) 156 m
(b) 1.56 km
(c) 0.0156 m
(d) 15.6 km
3. The ratio of two numbers is 12:5. If antecedent is 45 then the consequent is 108
4. If the ratio of two positive numbers is 4:5 and their L.C.M is 140 then the number are 35, 45
5. The compound ratio of sub- duplicate ratio and sub-triplicate ratio of 729:64 is 81:8
6. The ratio of two numbers is 11:15. The sum of 3 times the first number and twice the second numbers is
630. The H.C.F of the numbers is 10
9. The fourth proportional of `5, `3.50, and 150 gm. is 125 gm.
11. If the first and third numbers of four positive number is continued proportion be 3 and 12 respectively then
fourth number is 36
12. A sum of money amounts to `720 in 2 years and `789 in 3 years. The rate of simple interest is 12%
14. The S.I on a sum of money at 8% p.a for 6years is half the sum. The sum is `640
15. If the interest on `1,200 more than the interest on `1,000 by `50 in 3 years then the rate of Interest is 8 13 %
16. The rate of S.I p.a when a sum of money grows to one and a half times itself in 8 years is 6 14 %
17. The C.I on a certain sum of money for 1year at 8% p.a compounded quarterly is `824 then the sum is
`10,033
19. The C.I on `5,000 for 2 years at a certain rate of interest p.a amounts to `1,050 then the rate of interest is
10%
20. The difference between S.I and C.I on `1,000 for 1 year at 4% payable quarterly is Re. 0.40
1. `2530 is distributed between Ram and Hari such that Ram gets 11/12 part of that Hari gets. Then Hari
gets______
2. Some amount of money is distributed among Rama, Mitra and Shipra such that twice the money that Rama
gets = thrice the amount of money that Mitra gets = four times the amount of money that Shipra gets. Then
the continued ratio of their money is ______
3. In a map 2cm denotes a distance of 3 km., then the scale in the map is_________
4. The ratio of two numbers is 2:3. If 6 is subtracted from the second number then the number which is
subtracted from the first number so that the new ratio becomes the same as that of the previous, is ______
6. ( )( )
1 1 1 1
+ : × : ______
2 3 2 3
7. The compound ratio of 1.2:2.5, 2.1:3.2 and 5:3 is: ________
9. Two numbers are in the ratio is 5:8 and if 6 be subtracted from each of them then the reminders are in the
ratio 1:2, then the numbers are______
11. For the ratio 8:27, the Triplicate Ratio of its Subtriplicate Ratio is ______
12. A certain sum of money at S.I amounts to `500 in 3 years and to `600 in 5 years then the principal is ____
13. In ___ time the Simple interest on `900 at 6% will be equal to S.I on `540 for 8 years at 5%
14. Due to fall in the rate of simple interest from 12% to 10½% p.a money lender’s yearly income diminished
by `90. The capital is _____
15. A sum was put at S.I at a certain rate for 2 years. Had it been put at 2% higher rate, it would have fetched
`100 more. The sum is _____
16. At ____ percent rate, the Simple interest will be equal to the principal amount in 10 years.
17. I lent `4,000 for 9 months at 12% p.a. If C.I is reckoned quarterly what will I get after 9 months is _____
18. The C.I on `5,000 for 3 years, when the rate of interest is 5%, 6% and 7% for the 1st, 2nd and 3rd years
respectively, is ____
19. The difference between S.I and C.I of `4,000 for 2 ½ years @ 10% p.a is _____
20. The sum of money will amount to `6,050 in 2 years at 10% p.a. C.I is _____
21. The C.I on a certain sum of money for 2 years at 8% p.a. compounded annually is `1,040. The sum is ____
Answer:
8 (b)
8a : 4b is the given ratio
(8a) 2 : ( 4b ) 2 = Duplicate Ratio of the given one
= 64a 2 : 4b 2
= 16a 2 : b 2
9 (c) 1 K
A∝ ∴A=
B B
Given A = 7 when B = 3 ∴ 7 = K or, K = 21
3
1 7 21
So when B = 2 = then A = or, A = 9
3 3 7/3
10 (a) AB ∝ XY ∴ AB = K .XY
A B X Y
+ = +
B A Y X
A2 + B 2 X 2 + Y 2 A2 + B 2 X 2 + Y 2
Or, = Or, =
AB XY K .XY XY
Or, A2 + B 2 = K ( X 2 + Y 2 )
∴ A2 + B 2 ∝ X 2 + Y 2
11 (b) 341 y 3 + 3 y
=
91 3 y 2 + 1
341 + 91 ( y + 3 y) + (3 y + 1)
3 2
432 ( y 3 + 3 y + 3 y 2 + 1)
or, =
250 ( y 3 + 3 y − 3 y 2 − 1)
216 ( y + 1)3
or, =
125 ( y − 1)3
or,
( y + 1)3 = 63
( y − 1)3 53
or,
( )
( )
or, 5 × ( y + 1) = 6 × ( y − 1)
or, 5 y + 5 = 6 y − 6
or, 6 y − 5 y = 5 + 6
or, Y = 11
() ()
3 3
1 1
: = Triplicate Ratio of the given ratio
3 2
1 1
= 27 : 8
1 8
= 27 × 1
8
= 27 or 8:27
8 = x 3 (Given)
or, 82 = ( x 3 ) 2
or, 64 = x 3
or, 43 = x 3
or, x = 4
or, x 2 = 16
Two numbers are 16 and 4.
19 (a) Number must be subtracted from 12, 13, 24 and 29 to make them proportional be y,
(12–y) : (13–y) : : (24–y) : (29–y)
(12–y)×(29–y) = (24–y)×(13–y)
or, 30 x + 6 y = 30 x + 300
or, 6 y = 300
300
or, y = = 50
6
21 (b) 0.15
V = 120000, r % = 15 and monthly interest rate (r) = 12 = 0.0125
V ×r
Monthly payment (P) =
1 − (1 + r )
−n
120000 × 0.0125
P=
1 − (1 + 0.0125)
−12
1500
P=
1 − 0.8615
1500
P=
0.1385
P = 10830.32 or 10,830 (Approx.)
22 (d) If amount doubles in 8 years,
2P = P (1 + r )
8
2 = (1 + r )
8
16 = (1 + r ) n
24 = (1 + r ) n
3000 × (1 + 0.06) 1
V= × 1 − 5
0.06 (1 + 0.06)
1
V = 53000 × 1 −
1.3382
V = 53000 × [1 − 0.7472]
( )
2× 6
0.10
5480 = P × 1 +
2
5480 = P × (1.05)
12
5480 = P × 1.7959
5480
P= = 3051.39 or 3,051 (Approx.)
1.7959
26 (d) P = 2000, r = 10 or 0.06, n = 5
100
P × (1 + r )
[(1 + r ) − 1]
n
A=
r
2000 × (1 + 0.06)
[(1 + 0.06) − 1]
5
A=
0.06
2120
A= [1.3382 − 1]
0.06
A = 35333.33 × 0.3382
A = 11949.73 or 11950 (Approx.)
27 (b)
A (Present Value) = 60000, r = 10 or 0.10
100
( )
−2n
r
P = A 1+
2
( )
−2 ×1
0.10
P = 60,000 × 1 +
2
P = 60,000 × (1.05)
−2
33 (a)
P = `9,350, r = 8 = 0.08, n =4
100
( )
2n
r
A = P 1+
2
A = 9350 (1 + 0.04)
2× 4
A = 9350 (1.04)
8
A = 9350 × 1.3685
A = 12795
CI = A – P = 12795 – 9350 = 3445
( )
34 (b) 1× 4
r
0.0782 = 1 + −1
4
( )
4
r
0.0782 = 1 + −1
4
( )
4
r
0.0782 + 1 = 1 +
4
( )
4
r
1+ = 1.0782
4
Taking logarithms on both sides, we get
( )
4 × log 1 +
r
4
= log 1.0782
( )
log 1 +
r
4
=
0.0327
4
( )
log 1 +
r
4
= log 0.008175
( )
1+
r
4
= 1.0190
r
= 1.0190 − 1
4
r
= 0.0190
4
r = 0.0190 × 4 = 7.60%
35 (b) P = 2,725, r = 0.50% per month = 0.50 × 12 = 0.06 = 6% p.a.
P
V=
r
2725
V= = 45416.66 or 45,417 (Approx.)
0.06
36 (a) 2P = P (1 + 0.07) n
2 = (1.07) n
log 2 = log (1.07) n
0.3010 = n × 0.0293
0.3010
n= = 10.27 years
0.0293
37 (a)
A = `36,331, r = 15 = 0.15, n = 4
100
A = P (1 − r ) n
36331 = P (1 − 0.15) 4
36331 = P (0.85) 4
36331 = P × 0.5220
36331
P= = 69599.62 or 69,600 (Approx.)
0.5220
38 (d)
V = 51750, r = 11 or 0.11
100
P
V=
r
P
51750 =
0.11
P = 51750 × 0.11 = 5,692.50 or 5,693 (Approx.)
39 (b) Accumulated series of deposits as future sum money is classified as -Sinking Fund
40 (a) A = 27500 + 7142 = 34642, P = 27500, r = 8% p.a. = 0.08
n
A = P × (1 + r )
34642 = 27500 × (1 + 0.08) n
34642
= (1 + 0.08) n
27500
1.2597 = (1.08) n
1.833 = (1.08) n
n = 3 years.
41 (a) Type of Series – A.P.
42 (c) Value of the 12th the term = a + (n – 1) × d = 5 + (12–1)×7
= 5 + 11×7 = 5+77 = 82
43 (a) Term of the series would be 68
Value = a + (n–1)×d
68 = 5 + (n–1)×7 or, 68–5 = (n–1)×7 or, 63 = (n–1)×7
or, 63/7 = (n–1) or, 9 = n–1 or, n = 9+1 = 10
1 2 3 4 5 6 7 8 9 10
F T F F F T F F F T
11 12 13 14 15 16 17 18 19 20
F T F F T T T F T F
1 `1,320 2 6:4:3
3 1:150000 4 4
5 7:9 6 5:1
7 21:40 8 3:4:10
9 15, 24 10 ± 9
11 8:27 12 `350
13 4 year 14 ` 6,000
15 ` 2,500 16 10%
17 `4,370.91 18 ` 954.55
19 ` 76.23 20 `5,000
21 `6,250
ALGEBRA
For example,
On a table, 5 journals, 5 magazines and 1 laptop are placed. In this scenario, 5 journals and 5 magazines can be part
of the “Books and Periodicals” Collection while the laptop cannot be part of such collection. So, 5 journals and 5
magazines are be part of the Set “Books and Periodicals” while the Laptop is not a part of the Set.
For example,
If W be the set of all even numbers between: 81 to 100. For selecting any arbitrary number within the range as
t, we write as follows:
W = {t: t is even and 81 < t <100}
Understanding the expression:
W is a set of numbers t where t is an even number and lies between: 81 to 100.
Types of Set
1. Set of Sets
When all the elements of a set are sets in themselves, that set is called set of sets.
For Example,
T = {a, b, c, d}
Where, a = {1, 2, 3, 4}; b = {1, 3, 5, 7}; c = {2, 4, 6, 8}; d = {1, 3, 4, 6}
Here, T would be termed as Set of Sets.
2. Singleton Set
If any set has only one element, it is termed as Singleton Set. In simple terms, set with just one element is called
unit set or singleton set.
For example,
Given: Set L = {33}
Meaning: Set L has only one element which is 33.
3. Null Set
Void Set or Empty Set or Null Set is a set which do not have any element and is denoted by { } or ø.
It may be noted that the Null Set ø is distinctly different from the Set {0}. The former contains no element at
all, whereas the latter contains only are element i.e. 0.
4. Finite Set
If the number of elements can be counted for a given set, that set is termed as Finite Set. Finite Set comprises
of specific number of elements.
5. Infinite Set
When the number of elements to be counted in a given set is infinite, the set is termed as Infinite Set. So,
Infinite set does not have specific number of elements.
6. Equal Set
For any two given sets, if each of the elements of one set are same as each of the elements of the other set, then
the sets are called Equal Set.
For Example,
If all elements of set Y are same to all the elements of set W, Y = W can be written to signify that every element
of Set Y is equal to every element of Set W.
7. Subset
For any two given sets, if one set has all the elements of the other set, the other set is termed as subset of the
first one.
For example,
Let A = { 2,4,5,6,7,8,9} and B ={2,4,6,8}
Since, B has all the elements present in A, Set B is called a subset of Set A.
Denoted as B ⊆ A or A ⊇ B
Here A is called a Superset of B.
Inportant points to note:
(i) Every Set is a Subset of itself
(ii) Empty Set is a Subset of every set i.e. ø ⊆ A.
(iii) Every Set has at least two Subsets – the Empty Set and the Set itself.
8. Proper Subset and Superset
For any given two sets, if one set has all the elements of the other set and also at least one more element is
present in it, the other set is termed as proper subset of the first one. While, the first one is termed as Superset
of the other one.
For example,
Let A = { 2,4,5,6,7,8,9} and B ={2,4,6,8}
Since, A has all the elements present in B and some other elements as well, Set B is called a proper subset of
Set A. While, Set A is termed as Superset of Set B.
Denoted as B ⊂ A and A ⊃ B.
Important points to note :
(i) Set A is not a Proper Subset of itself
(ii) A is a Proper Subset of B, A ⊂ B if all the clements of Set A are also the elements of Set B as well as A ≠ B
9. Equivalent sets [0]
Two finite sets A and B are said to be equivalent if there is one to one correspondence between the elements of
A and B and we write A ≡ B.
From the definition it can be said that two finite sets A & B are equivalent if and only if they have same number
of elements.
i.e. n (A) = n (B).
The symbol ‘0’ is used to denote equivalence of sets
Let A = {a, e, i, o, u} then n (A) = 5
And B = {1, 2, 3, 4, 5} then n (B) = 5
So A 0 B as n (A) = n (B)
In simple terms,
If Q is a Subset of W and W is a Subset of R then Q is a Subset of R.
Set Operations
1. Joint or Union
When two sets are joined, it is termed as Union of Sets. In simple terms, the union of two different sets A & B
results in a new set with all the elements of the A & B appearing only once. It is denoted as A B.
Let A = {1,3,5,7} and B = {5,7,9} So A B = {1,3,5,7,9}. This operation in possible for more than two sets
also.
2. Meet or Intersection
When a set is formed with the common elements of two or more sets, the new set is said to be the result of
Intersection of sets. If A & B are the two given sets then their Intersection is denoted as A∩B. When A =
{2,3,4} and B = {3,4,6} then A∩B = {3,4}
3. Disjoint
When two sets do not have any elements in common, both the sets are termed as disjoint to each other.
Two sets A and B are said to be disjoint sets if they have no element in common i.e., A∩B= Ø.
If A = {1, 3, 5}, B = {2, 4}
Then A∩B = Ø. Hence A & B are disjoint sets
4. Difference
Of the two sets, a new set formed by the elements of the first which do not form part of the other is, the end
result of the operation Difference of sets.
In other words, the Difference of two sets A & B is the set of all elements of A which do not belong to B. It is
written as A – B.
Let A = {5,7,8,9} and B = {9} then A – B = {5,7,8}
5. Complement or Negation
When A is the sub-set of the universal set U, the elements of Complement of A would comprise of all the
elements of U except the elements of A. It is denoted as A′ or Ac or A .
If A = {1,2,3,4} and U = {1,2,3,4,5,6,7} then A′ = U – A ={5,6,7}.
2. Commutative :
(i) A B = B A
(ii) A B = B A
While solving two or more sets, the commutative law states that the elements of both the sets would be added.
3. Associative :
(i) A (B C) = (A B) C
(ii) A (B C) = (A B) C
When two or more sets are to be combined, the order of the sets would not matter since the result would be
same if the sets are associative to each other.
4. Distributive :
(i) A (B C) = (A B) (A C)
(ii) A (B C) = (A B) (A C)
When two or more sets are to be distributed, the order of the sets would not matter since the result would be
same if the sets are distributive.
5. De Morgan’s Law :
(i) ( A B)′ = A′ B′
Complement of the Union of two sets is the Intersection of the Complement of both the sets.
(ii) ( A B)′ = A′ B ′
Complement of the Intersection of two sets is the Union of the Complement of both the sets.
6. Identity Law :
(i) A U = U
(ii) A φ = A
(iii) A φ = φ
(iv) A U = A
For any set A in relation to Universal Set U and Null Set, the above mentioned laws are applicable.
7. Complement Law :
(i) A A′ = U
(ii) Φ′ = U
(iii) U ′ = Φ
(iv) A A′ = Φ
(v) ( A′)′ = A
For any set A in relation to Universal Set U and Null Set, the above mentioned laws are applicable.
VENN DIAGRAM
Pictorial representation of the relationship between two or more sets, is known as Venn diagram. It was introduced
by Euler and Developed by John Venn. In this diagram, sets are represented in closed curves by points. Each sets
are represented by Circles and form a part of Rectangle (which is representing the Universal Set).
A B
2. Disjoint
U
A B
3. Meet or Intersection (A 3 B)
U
A B
4. Proper Subset
U
B is proper B_C
Fig. 4: Venn Diagram representing B is proper subset of A
U A′
A ′ the complement of A =
Fig. 5: Venn Diagram representing complement of Set A
Illustration 1.
Write the set-builder form of set for: M = {1, 8, 27, 64, 125 .....................}
Answer:
The elements of the set M are cube of all natural numbers.
Hence, M in set-builder form would be expressed as follows:
M = {x: x = n3, n ∈ N}
Illustration 2.
Write the roster form of set for: B = {x:x is a letter in the word ‘LANGUAGE’}
Answer:
The word ‘LANGUAGE’ has 8 letters, while the distinct letters are: L, A, N, G, U, E
B = {L, A, N, G, U, E}
Illustration 3.
The Set with their elements are mentioned below :
A = {All numbers}
B = {2, 4, 6, 8, 10}
C = {1, 3, 5, 7, 9}
D={ }
Identify the different types of sets.
Answer:
A - Universal Set - It comprises of All Numbers.
B and C - Sub-sets of A that is Sub-sets of U.
D – Null Set – It comprises of no elements.
Illustration 4.
Answer:
(i) A B = { 1,2,3,4,5,6,7,8,9,10 }
(ii) A C = {2, 4}
(iii) B D = {7, 9}
(iv) A D = {6, 8, 10}
Illustration 5.
If Q = {1, 2, 3, 5} and W = {3, 4, 5, 7}. Find the Union of Q and W.
Answer:
Q - Contains 4 elements: 1,2,3,5
W – Contains 4 elements: 3,4,5,7
Q W – Contains 6 elements since no elements should repeat in case of union of sets.
Q W = {1, 2, 3, 4, 5, 7}
Illustration 6.
If Q = {-1, -2, 8, 10} and W = {6, 9, -2, -1}. Find the Intersection of Q and W.
Answer:
Q - Contains 4 elements: -1, -2, 8, 10
W – Contains 4 elements: 6, 9, -2, -1
Q W = {-1, -2}
Illustration 7.
If U = { -5,-4,-3,-2,-1,0,1,2,3,4,5} and A = {0,1,2,-1,-2}, find A′.
Answer:
All the elements which are part of U but not part of A, would be part of A′.
A′ = {-5,-4,-3, 3, 4, 5}
Illustration 8.
If T = {q, w, e, r, t, y} and Y= {w, r, y, u, p, o}, find the difference (Y-T).
Answer:
Set (Y-T) – All the elements of Set Y which are not part of Set T.
Set (Y-T) = {u, p, o}.
Illustration 9.
If U = { -2,1,2,3,4,5} and A = { -2 , 5 }, find the elements of set (U - A′).
Answer:
We know that, U – A = A′, hence, U – A′ = A.
So, set (U–A′) = set A = {–2, 5}
Illustration 10.
Rewrite the following examples using set notation
(i) First ten even natural numbers.
(ii) Set of days of a week.
(iii) Set of months in a year which have 30 days.
(iv) The numbers 3, 6, 9, 12, 15
(v) The letters m, a, t, h, e, m, a, t, I, c, s
Answer:
(i) A = {2, 4, 6, 8, 10, 12, 14, 16, 18, 20}
= {x: x is an even integer and 2 ≤ x ≤ 20}
(ii) A = {Sunday, Monday ……. Saturday}
= {x: x is a day in a week}
(iii) A = {April, June, September, November}
= {x: x is a month of a year which has 30 days}
Illustration 11.
Write the following set in roster form.
(i) A = {x: x is an integer, - 3 < x < 7}
(ii) B = {x: x is an integer, 4 < x < 12}
Answer:
(i) A = {-3, -2, -1, 0, 1, 2, 3, 4, 5, 6}
(ii) B = {6, 8, 10, 12}
Illustration 12.
Represent the following sets in a selector method:
(i) All numbers less than 15
(ii) All even numbers
Answer:
Taking R to be the set of all real numbers in every case:
(i) {x: x∈ R and x < 15}
(ii) {x: x ∈ R and x is a multiple of 2}
Illustration 13.
A = {1, 2, 3, 4, 6, 7, 12, 17, 21, 35, 52, 56}, B and C are subsets of A such that B = {odd numbers},C = {prime
numbers}. List the elements of the set {x: x ∈ B ∩ C}
Answer:
B ∩ C = {1, 3, 7, 17, 21, 35} ∩ {2, 3, 7, 17} = {3, 7, 17}
Therefore, reqd. list = {3, 7, 17}
Illustration 14.
If A = {1, 2, 3, 4, 5}, B = {2, 4, 5, 8}, C = {3, 4, 5, 6, 7}, find A (BC).
Answer:
B C = {2, 3, 4, 5, 6, 7, 8}, A (B C) = {1,2,3,4,5,6,7,8}
Illustration 15.
If A = {1, 2, 3} and B = {2, 3, 4}; find (A – B) (B – A)
Answer:
A – B = {1}, B – A = {4}, (A- B) (B – A) = {1, 4}
Illustration 16.
If S is the set of all prime numbers, M = {x : x is an integer, 0 ≤ x ≤ 9} exhibit
(i) M – (S M)
(ii) M N, where N = {0, 1, 2 …….. 20}
Answer:
S = {2, 3, 5, 7, 11, 13…}, M = {0, 1, 2… 8, 9}
(i) S M = {2, 3, 5, 7}, M – (S M) = {0,1,4,6,8,9}
(ii) M N = {0, 1… 20}
Illustration 17.
In a class of 100 students, 45 students read Physics, 52 students read Chemistry and 15 students read both the
subjects. Find the number of students who study neither Physics nor Chemistry.
Answer:
We know n (AB) = n (A) + n (B) – n (A∩B). Let A indicates the set of students who read Physics and B for
Chemistry.
Given:
n (A) = 45, n (B) = 52, n (A ∩ B) = 15
So, n (AB) = 45 + 52 – 15 = 82
We are to find n (A′ ∩ B′) = 100 – n (AB) = 100 – 82 = 18
Illustration 18.
In a survey of 1000 families it is found that 454 use electricity, 502 use gas, 448 use kerosene, 158 use gas and
electricity, 160 use gas and kerosene and 134 use electricity and kerosene for cooking. If all of them use at least
one of the three, find how many use all the three fuels.
Answer:
Let us take E for set of families use electricity, G for gas, and K for kerosene.
Now n (E) = 454, n (G) = 502, n (K) = 448
n (G ∩ E) = 158, n (G ∩ K) = 160, n (E ∩ K) = 134, n (E ∩ G ∩ K) =?
n (E G K) = 1000
Again n (E G K) = n (E) + n (G) + n (K) – n (E ∩ G) – n (G ∩ K) – n (K ∩ E) + n (E ∩ G ∩ K)
Or, 1000 = 454 + 502 + 448 – 158 – 160 – 134 + n (E ∩ G ∩ K) = 952 + n (E ∩ G ∩ K)
Or, n (E ∩ G ∩ K) = 1000 – 952 = 48.
Answer:
1.25 to the power of 5 is written as
(1.25)5
= (1.25) × (1.25) × (1.25) × (1.25) × (1.25)
= 3.05175
Thus, 1.25 to the power of 5 = 3.05. (Approx).
Answer:
(2.5)5 = (2.5) × (2.5) × (2.5) × (2.5) × (2.5)
= 244.14062
Root of a number:
x = n a Or, x = (a)1/n
For example: 24 = 16 or 2 = 4 16
1. a m × a n = a m + n
For example: 53 × 52 = 53+ 2 = 55
m
2. a n = a m − n
a
53
For example: = 53− 2 = 5
52
a am
3. ( ) m = m
b b
6 62
For Example: ( ) 2 = 2
5 5
4. (ab) m = a m × b m
For example: (5 × 4) = 52 × 42 = 25 × 16
2
1
5. = a −m
am
1
For example: = 5−2
52
1
6. n
a=a n
1
For example: 5
6 = 65
7. a 0 = 1
For example: 60 = 1
9. If in an equation powers or indices on both sides are same, bases can be equated.
For example: If x2 = 22 then x = 2
Illustration 19.
Evaluate: 133.
Answer:
133
= 13 × 13 × 13 = 2197.
Illustration 20.
() 1 1 1
y
a
If a x = = k m and a ≠ 1, prove that x − y = m
k
Answer:
Or, a x k y = a y
Or, k y = a y − x
1
Or, k = (a y − x ) y
y−x
Or, k = a y
m
y−x
Or, k m = a y
( y − x)m
Or, a x = a y
( y − x)m
Or, x =
y
x x
Or, = 1−
m y
1 1 1
Or, − = (Proved)
x y m
Illustration 21.
x z x m + y m + z m + wm m
If y = w show that − m − m = ( xyzw)
2
−m −m
x + y +z +w
Answer:
x z
Let = = k , then x = yk , z = wk
y w
x m + y m + z m + wm y m k m + y m + wm k m + wm
=
x − m + y − m + z − m + w− m y − m k − m + y − m + w− m k − m + w− m
=
(y m
+ wm )( k m + 1)
(y −m
+ w− m )( k − m + 1)
(y m
+ wm )( k m + 1)
( )
=
1 1 1
y m + wm k m + 1
= k m y m wm
m m
Also ( xyzw) 2 = ( yk.y.wk.w)m / 2 = ( y 2k 2 w2 ) 2 = y mk m wm
x m + y m + z m + wm m
So − m = ( xyzw) (Proved)
2
−m −m −m
x + y +z +w
Illustration 22.
Solve: 62 x + 4 = 33x ⋅ 2 x +8 .
Answer:
We have 62 x + 4 = 33x ⋅ 2 x +8
Or, 22 x + 4.32 x + 4 = 33x.2 x +8
22 x + 4 33x
Or, x +8 = 2 x + 4
2 3
Or, 22 x + 4 − x −8 = 33x − 2 x − 4
Or, 2 x − 4 = 3x − 4
() ()
x 4
Or, 2 =
2 Or, x = 4
3 3
Illustration 23.
m + 2n 3m −8n
Simplify x 5m⋅ −x6n
x
Answer:
x m + 2n ⋅ x 3m −8n
= x m + 2n + 3m −8n −5m + 6n
x 5m − 6 n
= x 4 m − 6 n − 5m + 6 n
−m 1
= x = m
x
Illustration 24.
()
y
2
Solve: 6 x − 3.2 x + y − 8.3x − y + 24 = 0, xy = 2
3
Answer:
()
y
2
6x − 3.2 x + y − 8.3x − y + 24 = 0
3
()
y
2
Or, ( 2.3)
x
− 3.2 x + y − 8.3x − y + 24 = 0
3
()
y
2
Or, 2 x.3x − 3.2 x + y − 8.3x − y + 24 = 0
3
1
Or, 2 x.2 y.3x. − 3.2 x + y − 8.3x − y + 24 = 0
3y
Or, 2 x + y.3x − y − 3.2 x + y − 8.3x − y + 24 = 0
Or, 2 x + y.3x − y − 3.2 x + y = 8.3x − y − 24
Or, 2 x + y (3x − y − 3) = 8 (3x − y − 3)
Or, 2 x + y = 8 [Assuming 3x–y – 3 ≠ 0]
Or, 2 x + y = 23
Or, x + y = 3
Or, x = 3 – y
Putting this value of x in xy = 2 we get
(3 – y)y = 2
2
Or, 3 y − y = 2
2
Or, y − 3 y + 2 = 0
Or, y = 2 or 1
So x = 1 or 2
Illustration 25.
1
3 −1 −1 −
Obtain the simplest value of [1 − {1 − (1 − x ) } ] 3
when x = 1
Answer:
1
−
[1 − {1 − (1 − x 3 ) −1}−1] 3
1
−
1 3
= 1 −
1 − (1 − x )
3 −1
1
−
1 − (1 − x 3 )−1 − 1 3
=
1 − (1 − x 3 )
−1
1
−
− 1 3
3
= 1− x
1
1 −
1 − x3
( )
1
−
1 3
= 3
x
1
= ( x 3 ) 3 = x = 1 [As x = 1 (given)]
Illustration 26.
x = 31/3 + 3−1/3
Cubing both sides we get
1 1 1 1
−
Or, x 3 = 3 + 3−1 + 3.33 − 3 ( x ) [As x = 33 + 3 3
(Given)]
1
Or, x 3 = 3 + + 3.1.x
3
Or, 3 ⋅ x 3 = 9 + 1 + 9 x
Or, 3x 3 − 9 x = 10 (Proved)
Illustration 27.
1 1 1
If ( 2.381) = ( 0.2381) = 10 z prove that
x y
= +
x y z
Answer:
Let (2.381)x = (0.2381)y = 10z = K
1 1 1
So 2.381 = k x & 0.2381 = k y & 10 = K z
2381 1
Or, = Kx
1000
1
Or, 2381 = 103 K x ... ... ... ... (1)
1
0.2381 = K y
1
2381
Or, =Ky
10000
1
Or, 2381 = 104 K y ... ... ... ... (2)
(2) ÷ (1) gives
1
2381 104 K y
=
2381 1
103 K x
1
Or, 1 = 10.K1
y
Kx
1 1
Or, K x = 10K y
1 1 1
Or K x = k z ⋅ K y
1 1 1
So = + (Proved)
x y z
Illustration 28.
x = 31/ 4 + 3−1/ 4
Squaring both sides we have
Illustration 29.
2 −1 −1 −1 2 −1 −1 −1 2
If a + b + c = 0, simplify x a b c
xa bc
xa b c
Answer:
2 −1 −1 −1 2 −1 −1 −1 2
xa b c
xa bc
xa b c
= xa
2 2 2
/ bc
. x b / ac. x c / ab
2
/ bc + b2 / ac + c 2 / ab
= xa
3 3 3
= x a + b + c / abc
3 3 3
= x[a + b + c −3abc + 3abc]/ abc
3 3 3
So x[a + b + c −3abc + 3abc]/ abc = x 3abc / abc = x 3
Illustration 30.
Express as positive indices –
1
−
(i) x 3
2 1
− −
(ii) 2x 5 ⋅ x 3
2 1
−
(iii) x 3 ÷ a 5
Answer:
−
1
1
(i) x 3
= 1 ;
x3
−
2
−
1
2 1
(ii) 2 x 5 ⋅ x 3
= 2 × 1 ;
x 5
x3
2
(iii) x 3 ÷ a
2
−
1
x3 2 1
5
= 1 = x3 × a5
−
a 5
Illustration 31.
( )
3
−
Find the value of (i) 1 4 −
1
; (ii) (243) 5
81
Answer:
( )
3
−
(i) 1 4 3 3
= (81) 4 = (34 ) 4 = 33 = 27
81
1
1
= (35 )
1 −
(ii) ( 243)
−
5 5
= 3−1 =
3
Illustration 32.
2 (3n +1 ) + 7 (3n −1 )
Show that =1
()
1− n
1
3n + 2 − 2
3
Answer:
() ( )
1− n
1 2 25
= 3n.32 − 2.(3−1 )
1− n
3n + 2 − 2 = 3n.32 − 2.3n.3−1 = 3n 9 − = 3n
3 3 3
25
2 (3n +1 ) + 7 (3n −1 ) 3n.
3 = 1 (Proved)
So =
() 25
1− n
1 3n
3n + 2 − 2 3
3
Illustration 33.
p q
p + 1 . p − 1
q q
Simplify p q
q + 1 .q − 1
p p
Answer:
p
p + 1 . p − 1
p
pq + 1 . pq − 1
qq
( pq + 1) ( pq − 1) p q
q q q q qp qq
= = .
p q p
q + 1 .q − 1 pq + 1 . pq − 1
q
( pq + 1) p ( pq − 1)q
p p p p pp pq
( pq + 1) p ⋅ pp ( pq − 1) ⋅ p q q
= p ⋅
qp ( pq + 1) qq ( pq − 1)q
p+q
p
=
q
Illustration 34.
a 2 + ab + b 2 b 2 + bc + c 2 c 2 + ca + a 2
xa xb xc
Show that b × c × a =1
x x x
Answer:
a 2 + ab + b 2 b 2 + bc + c 2 c 2 + ca + a 2
xa xb xc
x b × c × a
x x
3 3 3 3 3 3
= ( x )a −b ⋅ ( x )b − c ⋅ ( x )c − a = x a −b +b −c +c −a
3 3 3 3 3 3
= x0 = 1
Illustration 35.
1 1 1
Find the value of a + b + c, if x a = y b = z c is satisfying xyz = 1
Answer:
1 1 1
Let x a = y b = z c = k
So x = k a , y = k b , z = k c
So xyz = k a ⋅ k b ⋅ k c = 1
Or, k a + b + c = k 0 Or a + b + c = 0
Illustration 36.
Solve 2 x + 3 + 2 x +1 = 320
Answer:
2 x + 3 + 2 x +1 = 320
320
Or, 2 x+1 = = 64 = 26
5
Or, x + 1 = 6. So x = 5
LOGARITHM
Definition
If ax = N and a > 0, N > 0 then x = loga N and read as logarithm of N to the base ‘a’ or in other words log N to the
base ‘a’.
So logarithm of a positive number N signifies that for a given base ‘a’ it is the power to which ‘a’ must be raised
to produce the positive number ‘N’.
For example,
Since 53 = 125 we express the corresponding logarithm as log5 125 = 3. This signifies when 5 is raised to the power
of 3 the value would be 125.
For example,
If log 25 is given, we consider it to be log10 25.
Also loge 25 is written as ln 25.
2. Logarithms of the quotient of two numbers would be equal to the difference of their logarithms.
log a
m
n ( )
= log nm − log nn
For Example,
32
log 5 (3.2) = log 5 = log 5 32 − log 5 10
10
3. Logarithm of any number raised to a power would be equal to the product of the logarithm of the number and
the power.
log a (m) n = n × log a m
For example,
log 2 (3) 4 = 4 × log 2 3
4. For any logarithm where base is same as the number, the value of logarithm would always be one (1). The
value of base or number should not be equal to 1 and should be a positive number (>0).
log p p = 1
For example,
log 2 2 = 1
log10 = log10 10 = 1
5. For any logarithm where number is 1 and the base is a positive number, then value would always be zero.
logp 1 = 0
For example,
log 4 1 = 0
6. The base of a logarithm for a number would be equal to the reciprocal of the logarithm with the number
replaced by base.
1
log r s =
log s r
For example,
1
log 5 8 =
log8 5
7. If logarithm with base of a number is raised to its’ power, the logarithm of the number raised to the power
would be equal to the number.
s log s r = r
For example,
8log816 = 16
Important points to be kept in mind
Change of Base for Logarithm
The logarithm of a number with a base can be changed with the introduction of the base and number splitted into
two expressions of logarithms. The base and the number would be same with a new variable introduced both as
base and number to the new logarithmic expressions.
log r s = log t s × log r t
Illustration 37.
Express in simplified form: log 2 49
Answer:
log 2 49 = log 2 ( 7 × 7 )
= log 2 7 + log 2 7
= 2 × log 2 7
Illustration 38.
97
Express in simplified form: log 2
7
Answer:
97
log 2 = log 2 97 − log 2 7
Illustration 39.
Express as sum of two logarithms: log 2 (15 × 3)
Answer:
log 2 (15 × 3) = log 2 15 + log 2 3
Illustration 40.
= log 2 50 − 1
Illustration 41.
Find the value of: log 2 64
Answer:
log 2 64 = log 2 26
= 6 × log 2 2
=6×1=6
Illustration 42.
Find the simplified form: log 3 4 Write logarithms by following the way it is written here
Answer:
2
log 34 = log 32 = 2 log 32
Illustration 43.
Express as quotiet of two logarithms with base 10: log8 83
Answer:
log10 83
log8 83 =
log10 8
Illustration 44.
Express with base value as 3: log 2 3
Answer:
1
log2 3 =
log 32
Illustration 45.
Express with base value as 3 after simplification : log12 3
Answer:
1
log12 3 =
log 3 12
1 1
= log 12 = log (3 × 4)
3 3
1 1
= =
log 3 (3 × 4) log 3 3 + log 3 4
1 1
=
3 3 + log 3 4 1 + log 34
Illustration 46.
Find the value of: 3log3 9
Answer:
3log3 9 = 9
Illustration 47.
Illustration 48.
The logarithm of a number of the base 2 is k. What is its logarithm to the base 2 2 ?
Answer:
Let ( 2) K = N
1 3
= 2 2 = 2 × 22 = 22
1
1
( )
1
So 3 3 3
2 = 2 = 22 = 2 2
2
k
So ( 2) K = (2 2) 3 = N
k
So the required number is
3
Illustration 49.
21
If log 2 x + log 4 x + log16 x = find x
4
Answer:
21
log 2 x + log 4 x + log16 x =
4
21
Or, log16 x log 2 16 + log16 x log 4 16 + log16 x =
4
21
Or, log16 x(log 2 16 + log 4 16 + 1) =
4
21
Or, log16 x(4 + 2 + 1) =
4
3
Or, log16 =
4
3 3
Or, x = (16) 4 = (24 ) 4 = 8
Illustration 50.
Answer:
Or, ( x + 1) 2 = 16
Or, x + 1 = ± 4
Or, x = 3, − 5
If x = –5 then x + 1 = – 4. In that case 2 log10 (x+1) = 2 log10 (– 4) which is impossible. So x ≠ – 5
Required value of x is 3
Illustration 51.
Answer:
log10 a
= +1
log10 4a
= log 4a a + 1
= log 4a a + log 4a 4a
Illustration 52.
Show that
log 3 3 3 3,,,,,,, ∞ = 1
Answer:
Let x = 3 3 3 .. ∞
Or, x 2 = 3 3 3 3 .. ∞
Or, x 2 = 3x
Or, x( x − 3) = 0. So x = 3 & x = 0
Illustration 53.
1 1
Prove that log (ab) + log (ab) = 1
a b
Answer:
a x = ab, b y = ab
1 1
Or, a = (ab) x , b = (ab) y
1 1
( + )
Or, ab = (ab) x y
1 1
+ =1
x y
1 1
Or, + = 1 (Proved)
log a (ab) log b (ab)
Formula:
n!
n pr =
(n − r )!
nPr = n × (n − 1) × (n − 2) × (n − 3) ... × (n − r + 1)
Where, ‘n’ and ‘r’ are both positive integers.
Permutations can also be represented as
n P( n, r ), P n, r
Permutations are made for arrangements of objects in linear order or rearrangements of such already ordered set. It
is a type of arrangement made in definite order.
Illustration 54.
With 5,000 hospitals to be built in the state of Goa, only 2,500 hospitals would have ICU Beds. Officials are
required to select 2,500 hospitals for installation of ICU Beds. What would be the value of ‘n’ and ‘r’ in the above
situation?
Answer:
In the given question, the total number of hospitals to build are 5,000 and ICU Beds to be installed in only 2,500
hospitals out of those 5,000 hospitals built.
For the purpose of Permutation, ‘n’ stands for the total number of objects which are available for selection. Hence,
in the given question, total hospitals to be built are 5,000 hospitals. So, the value of ‘n’ would be 5,000.
As 2500 hospitals to be selected, the value of ‘r’ should be 2500.
Classification of Permutations:
(i) When Repetition is not allowed
(ii) When Repetition is allowed
(iii) Permutation in cases where distinction of objects is not possible
(iv) Circular permutation
Illustration 55.
In how many ways can 5 candidates be screened for 3 vacancies?
Answer:
There are 3 vacancies and 5 candidates.
First vacancy can be filled up by selecting 1 out of 5 in 5 ways.
So there remains 2 vacancies to be filled up by selecting 2 from the remaining.
Hence second vacancy can be filled up in 4 ways.
Similarly third vacancy can be filled up by slectly 1 out of the remaining 3 in 3 ways.
Illustration 56.
In how many ways 3 cheques be given to 4 employees when each employee is eligible to receive any number of
cheques?
Answer:
All the 3 cheques can be given to all 4 employees. Even after the 1st cheque is given, the rest 2 cheques can also
be given to any employee out of 4 employees. So, the total number of ways in which 3 cheques can be given to 4
employees –
4 × 4 × 4 = 43 = 64 ways.
Answer:
The word “APPLE” has 5 letters with 2 P’s and 1 each of A, L an E. Thus, required the number of arrangements
would be
5! 5.4.3 2
= = 60
2! 2
When the objects are arranged in a circular formation then that is called Circular Permutation.
� No. of circular permutations of ‘n’ different objects taking all at a fime is (n-1)!
� No. of circular permutations of ‘n’ different taking all at a time is (n-1)!/2 when clockwise or anti clockwise
arrangements are not different.
Illustration 58.
In how many ways 8 boys can form a ring?
Answer:
Keeping one boy fixed in any position, remaining 7 boys can be arranged in 7! Ways.
Hence, the required no. of ways = 7! = 7.6.5.4.3.2.1 = 5040.
Illustration 59.
In how many ways 8 different beads can be placed in a necklace?
Answer:
8 beads can be arranged in 7! Ways. In this 7! Ways, arrangements counting from clockwise and anticlockwise are
taken different, but necklace obtained by clockwise permutation will be same as that obtained from anticlockwise.
So total arrangement will be half of 7!
Hence, required no. of ways = ½ ×7! = ½ ×5040 = 2520
COMBINATION
Combination means selection or choice or formation of a group.
Each of different groups of selection that can be made by taking some or all of the no. of things at a time is called
combination.
Illustration 60.
Properties:
1. nCr = 1
2. nC0 = 1
3. nCr = nCn −r
Proof:
n! n!
R.H.S: nC n − r = = = nC r = L.H .S
( n − n + r )!( n − r )! ( n − r )!r !
4. If nCr = nCS then r = s and also r = n – s
5. Pascal’s law:
If n and r be two non-negative integers such that 1≤ r ≤ n. then
nCr −1 + nCr = n + 1Cr
Formulae:
A) No. of combinations of n dissimilar things taken r at a time when ‘p’ particular things always occur is n − pC r − p;
B) No. of combinations of n dissimilar things taken ‘r’ at a time when ‘p’ particular things never comes is n − pC r ;
C) Total No. of combinations of n different things taken 1, 2, 3……n things at a time is 2n − 1 i.e.
nC + nC + nC + + nCn = 2n − 1 .
1 2 3
Total no. of combinations of n different things taken one or more things at a time is 2n − 1 .
Grouping:
When it is required to form two groups out of (m + n) things, (m ≠ n) so that one group consists of m things then
formation of one group represents the formation of the other group automatically. Hence the number of ways m
thing can be selected from (m + n) things.
m + nC m =
( m + n )! = ( m + n )!
m !( m + n − m )! m !n !
Note:
(2m)!
1. If m = n, the groups are equal and in this case the number of different ways of subdivision = since two
(m !) 2
groups can be interchanged without getting a new subdivision.
(2m)!
2. When 2m things are divided equally between 2 persons, then the number of ways =
(m !) 2
3. Now (m + n + p) things (m ≠ n ≠ p), to be divided in to three groups containing m, n, p things respectively.
‘m’ things can be selected out of (m + n = p) things in ( m + n + pC m ) ways. Thereafter n things out of the
remaining (n + p) things can be selected in (n+p)Cn ways. Hence total number of ways of selection to form three
(m + n + p)! (n + p)! (m + n + p)!
groups containing m, n and p things = (m + n + p) Cm × (n + p)Cn = m !(n + p)! × n ! p ! = m ! n ! p !
Note:
3m ! 1
1. If now m = n = p, the groups are equal and in this case, the different ways of subdivision = ×
m !m !m !! 3!
since the three groups of subdivision can be arranged in 3! Ways.
Note 2:
3m !
If 3m things are divided equally amongst three persons, the number of ways =
m !m !m !
Combination:
Number of ways in which selection of objects from availability would be done. The order of selection does not
matter.
Formula for Combination
n!
nC r =
r ! × ( n − r )!
Illustration 61.
Find the Factorial of 9.
Answer:
Factorial of 9: 9! = 9 × 8 × 7 × 6 × 5 × 4 × 3 × 2 × 1 = 3, 62,880.
Therefore, Factorial of 9 = 3, 62,880.
Illustration 62.
In how many ways 3 rows be selected for vaccination out of 5 rows of college students?
Answer:
For selecting 3 rows out of 5 rows of college students for vaccination, the following procedure is considered.
Assuming the selection of raws be done are by one, it can be said that the first row be slected in 5 ways.
So row there remains 4 rows of which the second can be slected in 4 wyas. Similarly the third can be selected in
3 ways.
Hence total number of ways of selection of 3 rows of students out of 5 rows is 5 × 4 × 3 = 60
Thus, 60 ways are there for selecting 3 rows for vaccination out of 5 rows of college students.
Illustration 63.
Solve for n: nP 6 = 13P 6
Answer:
Since, r = 6 in the permutations of both sides of the equation, n = 13.
Illustration 64.
If n + 1P 3 : nP 2 = 27 : 9 , find ‘n’.
Answer:
n + 1P 3 : nP 2 = 27 : 9
(n + 1)! : n ! = 27 : 9
(n + 1 − 3)! (n − 2)!
(n + 1)! n !
Or, : = 27 : 9
(n − 2)! (n − 2)!
(n + 1)! 27 (n + 1) (n !) 27
Or, = Or, =
n! 9 n! 9
Or, (n + 1) = 3
Or, n = 3–1 = 2.
Illustration 65.
If 8 × n − 1P 3 = n − 1P 4 , find n
Answer:
8 × n − 1P 3 = n − 1P 4
n − 1P 3 1
Or, =
n − 1P 4 8
( n − 1) × ( n − 2) × ( n − 3) =
1
Or,
( n − 1) × ( n − 2) × ( n − 3) × ( n − 4) 8
1 1
Or, =
( n − 4) 8
Or, 8 = n − 4
Or, n − 4 = 8
Or, n = 8 + 4 = 12
Therefore, n = 12.
Illustration 66.
If n
P5 = 42 × n P3 , find the value of n.
Answer.
n
P5 = 42 × n P3
n! n!
Or, = × 42
( n − 5)! ( n − 3)!
n × ( n − 1) × ( n − 2) × ( n − 3) × ( n − 4) × ( n − 5)! n × ( n − 1) × ( n − 2) × ( n − 3)!
Or, = × 42
( n − 5 )! ( n − 3)!
Or, n × ( n − 1) × ( n − 2) × ( n − 3) × ( n − 4) = n × ( n − 1) × ( n − 2) × 42
Or, (n − 3) × (n − 4) = 42
Or, n 2 − 3n − 4n + 12 = 42
Or, n 2 − 7n + 12 − 42 = 0
Or, n 2 − 7n − 30 = 0
Or, n 2 − 10n + 3n − 30 = 0
Or, (n − 10) (n + 3) = 0
Either n – 10 = 0 or, n + 3 = 0
Either n = 10 or, n = – 3
Since, n is a positive integer, it should be 10.
Thus, ‘n’ = 10.
Illustration 67.
In how many ways 6 mobiles be gifted to 6 employees?
Answer:
The number of employees to be given gifts = 6 employees, the number of mobiles to be gifted = 6 mobiles, so, n
= 6 and r = 6.
Since, n = r, the number of permutations would be n! = 6! = 6×5×4×3×2×1 = 720 ways.
Illustration 68.
In how many ways 4 laptops be purchased from 7 laptops available at the store?
Answer:
In the given question, the number of laptops available in the store - 7 laptops would be ‘n’, while the number of
laptops to be purchased – 4 laptops would be ‘r’.
Number of ways 4 laptops be purchased from 7 laptops would be as follows:
n 7!
Pr = 7 P4 =
(7 − 4)!
7! 7 × 6 × 5 × 4 × 3!
= =
3! 3!
= 7×6×5×4
= 840 ways.
Therefore, 4 laptops can be purchased from 7 laptops available in the store in 840 ways.
Illustration 69.
In how many ways can 8 articles numbered from 1 to 8 be arranged, if even numbered articles are same?
Answer: Since number of articles to be arranged – 8 articles (n = 8) and given that all even numbered articles
(Article 2,4,6,8) are same, the no. of ways to arrange such articles would be,
8! 8 × 7 × 6 × 5 × 4!
=
4! 4!
= 8 × 7× 6 ×5 = 1680 ways.
Thus, 8 articles where all even numbered articles are same, can be arranged in 1680 ways.
Illustration 70.
Find the number of 5 digit numbers that can be formed with the digits 8, 6,4,3,2,1,5,9.
Answer:
The numbers to be formed would be equal to the permutation of 8 different objects taking 5 at a time.
8 8! 8! 8 × 7 × 6 × 5 × 4 × 3!
Hence, P5 = = = = 8× 7× 6 ×5 ×4 = 6,720.
(8 − 5)! 3! 3!
Therefore, 6,720 numbers can be formed.
Illustration 71.
Find the value of 10C7.
Answer:
n!
Formula: nCr =
r ! × ( n − r )!
10C7 = 10!
7! × (10 − 7 )!
= 10!
7! × 3!
10 × 9 × 8 × 7!
=
7! × (3 × 2 × 1)
10 × 9 × 8
=
(3 × 2 × 1)
720
= 6 = 120.
Illustration 72.
A bag contains 10 balls. In how many ways can a child take out any 2 balls?
Answer:
The number of ways for selection of 2 different balls:-
10!
10C =
2 2!(10 − 2)!
10! 10 × 9 × 8! 10 × 9 90
= 2! 8! = 2! 8! = 2 × 1 = 2 = 45
Illustration 73.
Answer:
7! 7.6.5.4.3.2.1.
(i) 7 P 5 = = = 7.6.5.4.3 = 2520
( 7 − 5 )! 2.1.
7! 7.6.5.4.3.2.1.
(ii) 7 P1 = =
6.5.4.3.2.1. = 7
(7 − 1)!
7! 7.6.5.4.3.2.1.
(iii) 7 P 0 = =
(7 − 0)! 7.6.5.4.3.2.1. = 1
7! 7.6.5.4.3.2.1.
(iv) 7 P 7 = = = 7.6.5.4.3.2.1 = 5040
( 7 − 7 )! 1.
Illustration 74.
If nP 2 = 110, find n
Answer: nP 2 = 110
n!
Or, = 110
( n − 2 )!
n.( n − 1) .( n − 2)!
Or, = 110
( n − 2 )!
Or, n (n – 1) = 110
Or, n (n – 1) = 11.10
Or, n (n – 1) = 11 (11 – 1)
Or, n = 11
Illustration 75.
nP 5
Solve for n, given =2
nP 3
Answer:
n!
n P 5 ( n − 5 ) ! ( n − 3) !
= = = ( n − 3)( n − 4 ) = 2 (Given)
nP 3 n! ( n − 5 )!
( n − 3) !
Or, n 2 − 7n + 10 = 0
Or, ( n − 5)( n − 2 ) = 0
Or, n = 5, 2
If n = 2 then both nP5 and nP have no meaning. So the required value of n is 5.
3
Illustration 76.
In how many ways 6 books out of 10 different books can be arranged in a book-self so that 3 particular books are
always together?
Answer:
At first 3 particular books are kept outside. Now remaining 3 books out of remaining 7 books can be arranged in
7 P ways. In between these three books there are 2 places and at the two ends there are 2 places i.e. total 4 places
3
where 3 particular books can be placed in 4 P ways. Again 3 particular books can be arranged among themselves
1
in 3! ways.
7! 4!
Hence, required no. of ways 7 P 3 × 4 P1 × 3! = 7 − 3 ! × 4 − 1 ! × 3.2.1 = 7.6.5.4.3.2.1 = 5040
( ) ( )
Illustration 77.
In how many ways can the letters of the word TABLE be arranged so that the vowels are always (i) together (ii)
separated?
Answer:
(i) In the word TABLE there are 2 vowels and 3 consonants which are all different. Taking the 2 vowels (A, E)
as one letter we are to arrange 4 letters (i.e. 3 consonants + 1) which can be done in 4! Ways. Again 2 vowels
can be arranged between themselves in 2! ways.
Hence, required numbers of ways of arranging the letters so that the vowles are always together = 4! × 2! =
(4.3.2.1) × (2.1) = 48.
(ii) Required number of ways of arranging the letters so that the vowles are separated = 5! – 48 = 120 –48 = 72
[Taking all the letters together the no. of possible arrangements = 5!]
Illustration 78.
Find in how many ways can the letters of the word PURPOSE be rearranged –
(i) Keeping the positions of the vowels fixed;
(ii) Without changing the relative order of the vowels and consonants.
Answer:
(i) In the word, PURPOSE there are 3 vowels and 4 consonants. Since the positions of all the vowels should
remain fixed, we are to rearrange only 4 consonants, of which there are 2Ps. So the arrangement is possible in
4! 4 × 3 × 2!
= = 4 × 3 = 12 ways
2! 2!
(ii) The relative order of vowels and consonants should remain unaltered means that vowel will take place of
vowel and consonant will take place of consonant. Now the 3 vowels can be arranged among themselves in 3!
ways, while 4 consonants with two Ps can be arranged in
4! 4 × 3 × 2!
= = 4 × 3 = 12 ways
2! 2!
So total number of ways of rearrangement in which the given arrangement is included = (3! ×12) – 1 = (6×12)
– 1 = 72 – 1
Hence, required number of arrangements = 72 – 1= 71
Illustration 79.
How many numbers between 5000 and 6000 can be formed with the digits 3, 4, 5,6,7,8?
Answer:
The number to be formed will be of 4 digits. Further the required numbers are between 5000 and 6000. So the digit
5 is to be placed in the 1st place (from left). Now the remaining 3 places can be filled up by the remaining 5 digits
in 5P 3 ways.
5!
Hence, required number of nos. 5P 3 = = 5.4.3 = 60
2!
Illustration 80.
In how many ways can the letters of the word SUNDAY be arranged? How many of them do not begin with S?
How many of them do not begin with S, but end with Y?
Answer:
There are 6 different letters in the word SUNDAY, which can be arranged in 6! = 720 ways.
Now placing S in first position fixed, the other 5 letters can be arranged in (5)! =120 ways.
The number of arrangements of letters that do not begin with S = (6)! – (5)! = 720 –120 = 600
Lastly Placing Y in the last position, we can arrange in (5)! = 120 ways and keeping Y in the last position and S in
the first position, we can arrange in (4)! = 24 ways.
Hence, the required no. of arrangements beginning with S but not ending with Y = (5)! -4! = 120 – 24 = 96.
Illustration 81.
In how many ways 5 boys and 5 girls can take their seats in a round table, so that no two girls will sit side by side.
Answer:
If one boy takes his seat anywhere in a round table, then remaining 4 boys can take seats in 4! =24 ways. In each of
these 24 ways, between 5 boys, if 5 girls take their seat then no two girls will beside by side. So in this way 5 girls
may be placed in 5 places in 5! = 120 ways.
Again the first boy taking seat, may take any one of the 10 seas. i.e. he may take his seat in 10ways.
Hence, required number ways = 24×120×10 = 28800
Illustration 82.
In how many ways can the college football team of 11 players be selected from 16 players?
Answer:
16! 16.15.14.13.12
The required number of ways = 16C11 = 16 − 11 !11! = = 4368
( ) 5.4.3.2
Illustration 83.
From a group of 15 men, how many selections of 9 men can be made so as to exclude 3particular men?
Answer:
Excluding 3 particular men in each case, we are to select 9 men out of (15-3) men. Hence the number of selection is
12! 12.11.10
equal to the number of combination of 12 men taken 9 at a time which is equal to 12C 9 = = = 220
(12 − 9 )!9! 3.2.1
Illustration 84.
There are seven candidates for a post. In how many ways can a selection of four be made amongst them, so that:
1. 2 persons whose qualifications are below par are excluded?
2. 2 persons with good qualifications are included?
Answer:
1. Excluding 2 persons, we are to select 4 out of 5(=7-2) candidates. Number of possible selections = 5C 4 = 5
ways
2. In this case, 2 persons are fixed, and we are to select only (4-2) = 2 persons out of (7-2), i.e. 5 candidates. Hence
the required number of selection = 5C = 5.4 = 10
2 2.1
Illustration 85.
In how many ways can a committee of 3 ladies and 4 gentlemen be appointed from a meeting consisting of 8 ladies
and 7 gentlemen? What will be the number of ways if Mrs. X refuses to serve in a committee having Mr. Y as a
member?
Answer:
8.7.6
1st part. 3 ladies can be selected from 8 ladies in 8C 3 = = 56 ways
3.2.1
7.6.5
4 gentlemen can be selected from 7 gentlemen in 7C 4 = = 35 ways
3.2.1
Now, each way of selecting ladies can be associated with each way of selecting gentlemen. Hence, the required no.
of ways = 56 × 35 = 1960.
2nd part: If both Mrs. X and Mr. Y are members of the committee then we are to select 2 ladies and 3 gentlemen
from 7 ladies and 6 gentlemen respectively. Now 2 ladies can be selected out of 7 ladies in 7C 2 ways, and 3
gentlemen can be selected out of 6 gentlemen in 6C 3 ways.
Since each way of selecting gentlemen can be associated with each way of selecting ladies.
Hence, No. of ways = 7C 2 × 6C 3 = 420 ways
Hence, the required no. of different committees, not including Mrs. X and Mr. Y = 1960 – 420 =1540.
Illustration 86.
From 7 gentlemen and 4 ladies a committee of 5 is to be formed. In how many ways can this be done to include at
least one lady?
Answer:
Committee of 5 with at least one lady means the committee can be formed with
(i) 1 lady and 4 gentlemen or
(ii) 2 ladies and 3 gentlemen or
(iii) 3 ladies and 2 gentlemen or
(iv) 4 ladies and 1 gentleman or
For (i), 1 lady can be selected out of 4 ladies in 4C ways and 4 gentlemen can be selected from7 gentlemen in 7C
1 4
ways. Now each way of selecting lady can be associated with each way of selecting gentlemen. So 1 lady and 4
gentlemen can be selected in 4C1 × 7C 4 ways.
Similarly,
Illustration 87.
In how many ways can a boy invite one or more of his 5 friends?
Answer:
The number of ways = 5C1 + 5C 2 + 5C 3 + 5C 4 + 5C 5 = 5 + 10 + 10 + 5 + 1 = 31
Illustration 88.
In how many ways 15 things can be divided into three groups of 4, 5, 6 things respectively.
Answer:
15.14.13.12.11!
The first group can be selected in 15C 4 = = 1365 ways:
11!.4.3.2.1
The second group can be selected in (15 − 4)C = 11C = 11.10.9.8.7.6! = 462ways
ways
5 5 6!.5.4.3.2
And lastly the third group in 6C 6 = 1 way
Illustration 89.
In how many ways can the letters of the word SIGNAL be arranged so that the vowels occupy only the odd places?
Answer:
Number of letters in the word SIGNAL is 6 and they are all different. So there are 3 odd places namely first, third
and fifth.
Vowels are only 2. The number of ways in which 2 vowels can occupy 3 places is 3P . For each such way the
2
remaining 4 places are to be occupied by 4 remaining consonants. This can be achieved in 4! different ways.
Illustration 90.
How many triangles can be made by joining the vertices of decagon? How many diagonals will it have?
Answer:
A triangle is obtained by joining any three of the 10 vertices of a decagon. The number of triangles can be made by
Quadratic Equation:
a. 15 x 2 + 28 x + 13 = 0
Here the equation is expressed in the form of ax 2 + bx + c = 0 with a = 15, b = 28 and c = 13
b. x2 = 30x – 6 Or, x2 – 30x + 6 = 0 Or, 1x2 + (– 30) x + 6 = 0
Here also the equation is expressed in the form of ax2 + bx + c = 0 with a = 1, b = –30 and c = 6
Quadratic equation ax 2 + bx + c = 0
Multiplying both sides by 4a we get.
4a 2 x 2 + 4abx + 4ac = 0
Or, 4a 2 x 2 + 4abx = −4ac
Adding b2 on both sides we get
Or, 4a 2 x 2 + 4abx + b2 = b2 − 4ac
−b + b2 − 4ac
Value of αx =
2a
−b − b2 − 4ac
Value of βx =
2a
Here b2 − 4ac is called the Discriminant and it describes the nature of the roots of the quadratic equation and is
denoted by ∆ = b2 − 4ac
Nature of Roots:
3. If b2 − 4ac < 0 then the roots are imaginary or conjugate complex numbers.
4. If b2 − 4ac > 0 and perfect square then the roots are rational and unequal.
5. If b – 4ac > 0 but not a perfect square then the roots are irrational numbers.
Formula:
x2 – (Sum of the Roots) × x + (Product of the Roots) = 0
−b + b2 − 4ac −b − b2 − 4ac 2b b
α+β = + =− =−
2a 2a 2a a
Special cases:
(i) If the constant term vanishes then one of the root is zero.
Explanation:
c 0
If c = 0, then α β = = =0
a a
i.e. either α = 0 or β = 0 or both α & β = 0
(ii) If the coefficient of x vanishes then the roots are equal in magnitude and opposite in sign.
Explanation:
b 0
If b = 0, α + β = − =− =0
a a
i.e. either α = – β or β = – α
1. Factorisation
The Equation is solved by factorising the quadratic expression involved with the equation.
For example:
Equation: x 2 − 5 x + 6 = 0
Solution:
x 2 − 5x + 6 = 0
Or, x 2 − 2 x − 3x + 6 = 0
Or, x (x – 2) – (x – 2) = 0
Or, ( x − 2 )( x − 3) = 0
Or, x = 2 and x = 3
2. Using Square Roots
The value of x would be a square number when solving the equation.
3. Using Quadratic Formula or Sridhar Acharya’s Formula
Formula for Solving Quadratic Equation
−b ± b 2 − 4ac
x=
2a
Illustration 91.
Solve (5 x 2 − 6 x + 8) − (5 x 2 − 6 x − 7) = 1;
Answer:
( )
5 x 2 − 6 x + 8 − 5 x 2 − 6 x − 7 = 1 … … … (1)
Now ( 5 x − 6 x + 8 ) − ( 5 x − 6 x − 7 ) = 15
2 2
Or,
(5x 2
− 6 x + 8) − (5x 2 − 6 x − 7 )
=
15
[Substituting 5 x 2 − 6 x + 8 − 5 x 2 − 6 x − 7 = 1 from equation (1)]
5 x 2 − 6 x + 8 − 5 x 2 − 6 x − 7) 1
Or,
{( 5x 2 − 6 x + 8 −) (
2
) } = 15
5x 2 − 6 x − 7
2
{ 5x − 6x + 8 − 5x − 6x − 7) } 1
2 2
Or,
( 5x − 6x + 8 − 5x − 6x − 7 )( 5x − 6x + 8 +
2 2 2
5x 2 − 6 x − 7 ) = 15
5x 2 − 6 x + 8 − 5x 2 − 6 x − 7) 1
Or, ( )
5 x 2 − 6 x + 8 + 5 x 2 − 6 x − 7 = 15 … … … (2)
Or, 5x 2 − 6 x + 8 = 8
Or, 5 x 2 − 6 x + 8 = 64
Or, 5 x 2 − 6 x − 56 = 0
6 ± 36 + 4 × 5 × 56
Or, x =
2×5
6 + 36 + 4 × 5 × 56 6 − 36 + 4 × 5 × 56
Or, x = and x =
2×5 2×5
Or, x = 4 and x = – 2.8
Illustration 92.
Answer:
Illustration 93.
Evaluate 6 + 6 + 6 + 6 +……..∞
Answer:
Let x = 6 + 6 + 6 + 6 +……..∞
Or, x 2 = 6 + 6 + 6 + 6 + 6 +……..∞
Or, x 2 = 6 + x
Or, x 2 − x − 6 = 0
Or, ( x − 3)( x + 2 ) = 0
Or, x = 3 and – 2
Illustration 94.
1
2+
Evaluate 1 ;
2+
1
2+
2 +……….∞
Answer:
1
Let x = 2 +
1
2+
1
2+
2 +……….∞
Or, = +
Or, x 2 − 2 x − 1 = 0
2+ 4+4
Or, x = and 2 − 4 + 4
2 2
Or, x = 1 + 2 and 1 − 2
Illustration 95.
Answer:
Rationalising the denominator of L.H.S we get
( )
2
a+x + a−x a
Or, =
(a + x ) − (a − x ) x
a+ x+a−x+2 a+ x × a−x a
Or, =
2x x
2a + 2 a + x × a − x a
Or, =
2x x
Or, a + a 2 − x 2 = a
Or, x2 = a2
Or, x = a and – a
Illustration 96.
Solve ( x 2 + 2) 2 + 8 x 2 = 6 x ( x 2 + 2);
Answer:
Let x 2 + 2 = A
Or, A2 + 8 x 2 − 6 Ax = 0
Or, 8 x 2 − 6 Ax + A2 = 0
Or, 8 x 2 − 4 Ax − 2 Ax + A2 = 0
Or, 4 x ( 2 x − A) − A ( 2 x − A) = 0
Or, ( 2 x − A)( 4 x − A) = 0
A A
Or, x = and
2 4
Or, x 2 − 2 x + 2 = 0 and x 2 − 4 x + 2 = 0
2± 4−8 4 ± 16 − 8
Or, x = and
2 2
Or, x = 1 ± i and 2 ± 2
Illustration 97.
A trader bought a number of articles for ` 1200. Ten articles were damaged and he sold each of the rest at ` 2 more
than what he paid for, thus clearing a profit of ` 60 on the whole transaction. Taking the number of articles he
bought as x form an equation in x and solve it.
Answer:
Let x be the number of articles purchased at ` 1200
1200
So purchase price per unit =
x
1200
Therefore sale price per unit = +2
x
Since 10 articles were damaged so no of articles sold = x – 10
Since there is a profit of ` 60, then total sale proceeds will be = 1200 + 60 = ` 1260
1200
Therefore we can write ( x − 10 ) × + 2 = 1260
x
Or, ( x − 10 )(1200 + 2 x ) = 1260 x
Illustration 98.
Solve x ( x + 2)( x 2 − 1) = −1;
Answer:
x ( x + 2 ) ( x 2 − 1) = x ( x + 2 )( x + 1)( x − 1) = −1
Or, x ( x + 1)( x + 2 )( x − 1) = −1
Or, ( x 2 + x )( x 2 + x − 2 ) = −1
Let x 2 + x = A
So A ( A − 2 ) = −1
Or, A2 − 2 A + 1 = 0
Or, ( A − 1) = 0
2
Or, A =1
Or, x 2 + x − 1 = 0
Or, x = −1 ± 5
2
Illustration 99.
2 2
If α and β are the roots of the equation x 2 − 4 x + 2 = 0 , find the value of α + β ;
Answer:
As α and β are the roots of the equation x 2 − 4 x + 2 = 0 which is of the form ax2 + bx + c = 0 with a = 1, b = – 4
and c = 2, we can write
−b − ( −4) c 2
α+β = = = 4 and α β = a = 1 = 2
a 1
Therefore α2 + β2 = ( α + β ) − 2αβ = ( 4 ) − 2 × 2 = 16 − 4 = 12
2 2
Illustration 100.
If the roots of the equation x 2 − lx + m = 0 differ by 1, then prove that l 2 = 4m + 1 ;
Answer:
Given equation x 2 − lx + m = 0 is of the form ax 2 + bx + c = 0 with a = 1, b = – l and c = m
Let the roots be α & α + 1
c
So α + α + 1 = −b = l & α (α + 1) = = m
a a
So 2α = l − 1
l −1
Or, α = & putting this value in α ( α + 1) = m
2
l −1 l −1
Or, + 1 = m
2 2
l −1 l +1
Or, × =m
2 2
Or, l 2 − 1 ≡ 4m
Or, l 2 = 4m + 1 (Proved)
Illustration 101.
If the equation x2 – ax + b = 0 and x2 – cx + d = 0 have one root in common and the second equation has equal roots,
then prove that ac = 2(b + d) ;
Answer:
The equation x2 – cx + d = 0 is of the form ax2 + bx + c = 0 with a = 1, b = – c and c = d
Or, ( 2 x − c ) = 0
2
c
Or, x =
2
Since equations x2 – ax + b = 0 and x2 – cx + d = 0 have one root in common, we can write
2
c −a c +b = 0
2 2
c2 c
Or, −a +b = 0
4 2
c c2
Or, d − a + b = 0 [ From (1) d = ]
2 4
Or, ac = 2 (b + d) (Proved)
Illustration 102.
If the roots of the equation 2 x 2 + ( k + 1) x + ( k 2 − 5k + 6 ) = 0 are of opposite sign then show that 2 < k < 3 ;
Answer:
Given equation 2x2 + (k + 1) x + (k2 – 5k + 6) = 0 is o the form ax2 + bx + c = 0 with a = 2, b = k + 1 and c = k2 – 5k + 6
Since the roots are of opposite sign as well as roots are real and distinct
So discriminant > 0 and product of roots < 0
c
Or, b2 – 4ac > 0 and <0
a
k 2 − 5k + 6
Or, (k + 1)2 – 4 × 2 × (k2 – 5k + 6) > 0 and <0
2
First condition is always true when second holds
k 2 − 5k + 6
Hence <0
2
Or ( k − 3)( k − 2 ) < 0
This is possible only if 2 < k < 3 (Proved)
Illustration 103.
Answer:
Let α be the common root of the equations given. So we can write
2α2 + qα + 1 = 0 … … … (2)
By (1) × 2 and (2) × 3 we get
α ( 3q − 2 p ) = −1
1
So α = −
3q − 2 p
Or, 3 − p ( 3q − 2 p ) + ( 3q − 2 p ) = 0
2
Or, 3 − 3 pq + 2 p 2 + 9q 2 − 12 pq + 4 p 2 = 0
Or, 6 p 2 + 9q 2 − 15 pq + 3 = 0
Or, 2 p 2 + 3q 2 − 5 pq + 1 = 0 (Proved)
Illustration 104.
α
If α & β be the roots of the equation 2 x 2 − 3x + 1 = 0 find an equation whose roots are & β
2β + 3 2α + 3
Answer:
Given equation 2x2 – 3x +1 = 0 is of the form ax2 + bx + c = 0 with a = 2, b = – 3 and c = 1
−b 3 , α β = c = 1
α+β = =
a 2 a 2
The required equation is x2 – (sum of the roots) x + product of the roots = 0
2α 2 + 3α + 2β 2 + 3β 2 ( α + β ) + 3 ( α + β ) 2 ( α + β ) − 4αβ + 3 ( α + β )
2 2 2
α β
Sum of the roots = + = = =
2β + 3 2α + 3 ( 2β + 3)( 2α + 3) ( 4αβ + 6α + 6β + 9) {4αβ + 6 (α + β) + 9}
2 ( α + β ) − 4αβ + 3 ( α + β )
2 2× ( 94 ) − 4 ( 12 ) + 3( 32 ) = 4.5 − 2 + 4.5 = 7
(4 × 12 + 6 × 23 + 9) 2 + 9 + 9 20
Or, Sum of the roots = =
{4αβ + 6(α + β) + 9}
1 1
α β αβ αβ 2 1
Product of the roots = × = = = = 2 =
2β + 3 2α + 3 ( 4αβ + 6α + 6β + 9) 4αβ + 6 (α + β) + 9 1 3 20 40
4⋅ + 6⋅ + 9
2 2
2 7 1
So the required equation is x − x+ =0
20 40
Or, 40 x 2 − 14 x + 1 = 0
Illustration 105.
x 1− x 1
Solve + =2
1− x x 6
Answer:
x
Put = t2
1− x
1 13
We get t + =
t 6
Or 6t 2 + 6 = 13t
Or 6t 2 − 13t + 6 = 0
Or 6t 2 − 4t − 9t + 6 = 0
Or 2t (3t – 2) – 3 (3t – 2) = 0
Or ( 2t − 3)( 3t − 2 ) = 0
3 2
Or t = and
2 3
3 x 9 x ). So 4x = 9 – 9x
Now t = Or, = (Substituting t =
2 1− x 4 1− x
9
Or 13x = 9. So x =
13
Also
2 x 4
t= Or, =
3 1− x 9
Or 9 x = 4 − 4 x
4
Or 13x = 4. So x =
13
9 4
Required solution is x = and
13 13
Illustration 106.
Answer:
16a2 + 16a +1 = 0 ≡ ax2 + bx + c = 0
So, a = 16, b = 16, c = 1
= 256 – 64
= 192 > 0
Since, b2 – 4ac > 0, roots of the equation 16a2 + 16a +1 = 0 are Real. (Proved)
Illustration 107.
For 12a2 + 10a + 2 = 0 prove that the roots are rational and real
Answer:
12a2 + 10a + 2 = 0 ≡ ax2 + bx + c = 0
So, a = 12, b = 10, c = 2
Since, b2 – 4ac > 0, roots of the equation 12a2 + 10a +2 = 0 are real. Since, b2 – 4ac is a perfect square (22 = 4),
roots are rational and real. (Proved)
Illustration 108.
For 32a2 + 16a + 2 = 0 prove that the roots are real & equal
Answer:
32a2 + 16a +2 = 0 ≡ ax2 + bx + c = 0
So, a = 32, b = 16, c = 2
Illustration 109.
If sum of roots is -7 and product of roots is -14, form a quadratic equation.
Answer:
For forming a Quadratic Equation, the following formula needs to be used:
Formula:
x2 - (Sum of the Roots) × x + (Product of the Roots) = 0
Sum of the Roots: α + β = –7
Product of the Roots: α × β = –14
Required equation is x2– (–7) × x + (–14) = 0
Or, x 2 + 7 x − 14 = 0
Quadratic Equation is x2 + 7x – 14 = 0 when sum of the roots is -7 and product of the roots is -14.
Illustration 110.
Answer:
No, the given equation is not a polynomial equation with degree 2 for same variable. The given equation has 2
different variables. Hence, it is not a Quadratic Equation.
Illustration 111.
Determine the nature of roots for the equation: 10y2 + 11y + 3 = 0
Answer:
Quadratic equation: 10y2 + 11y + 3 = 0 ≡ ax2 + bx + c = 0
So, a = 10, b = 11, c = 3
Formula for Discriminant (D): b2 – 4ac
= (11)2 – 4 × (10) × (3)
= 121 – 120 = 1 > 0
Since, value of discriminant (D) > 0, the roots are Real and also D is a perfect square, the roots are rational.
Hence, the roots of the given equation are real and rational.
Illustration 112.
Determine the nature of roots for the equation: 3y2 – 5y + 3 = 0
Answer:
Quadratic equation: 3y2 + (–5)y + 3 = 0 ≡ ax2 + bx + c = 0
So, a = 3, b = –5, c = 3
Formula for Discriminant (D): b2 – 4ac
= (–5)2 – 4 × (3) × (3)
= 25 – 36 = –11 < 0
Since, value of the discriminant (D) < 0, the roots are Imaginary.
Illustration 113.
When two roots are equal and of the value 5 then form the quadratic equation.
Answer:
Let the two roots be α and β,
Given condition, both roots are equal and the value is 5,
To form a Quadratic Equation, the Formula is: x2 – (Sum of the Roots) × x + (Product of the Roots) = 0
Sum of Roots = α + β = 5 +5 = 10
Product of Roots: α × β = 5 × 5 = 25
Required Quadratic Equation is: x2 – (10) × x + (25) = 0
Or, x2 – 10x + 25 = 0.
Illustration 114.
If the roots of a quadratic equation are reciprocal and one root be 1/2 then form the quadratic equation.
Answer:
Let the two roots be α and β,
Given condition, One root is reciprocal of the other one and the value is ½ ,
Value of other root would be 2.
To form a Quadratic Equation the Formula is: x2 – (Sum of the Roots) × x + (Product of the Roots) = 0
Sum of the Roots: α + β = 1/2 + 2 = 5/2
Product of the Roots: α × β = 1/2 × 2 = 1
Required Quadratic Equation is: x2 – (5/2) × x + (1) = 0 Or, 2x2 – 5x + 2 = 0.
Illustration 115.
Solve using factorisation method: y2 – 14y + 49 = 0
Answer:
Given quadratic equation: y2 – 14y + 49 = 0
or, y2 – 7y – 7y + 49 = 0
or, y (y – 7) –7 (y – 7) = 0
or, (y – 7) (y – 7) = 0
(y – 7) = 0 and (y – 7) = 0
y = 7 and y = 7.
Illustration 116.
Solve using square roots method: y2 – 10y + 25 = 0
Answer:
Given quadratic equation: y2 – 10y + 25 = 0
or, y2 – 2 × 5y + (5)2 ≡ (y – 5)2 = 0
or, (y – 5) = 0
or, y = 5.
Hence, the value of y in y2 – 10y + 25 = 0 would be 5.
Illustration 117.
Answer:
Given Quadratic Equation: 11x2 +12x –5 = 0 cannot be solved using either factorisation method or square roots
method, it would be solved using following formula.
Formula for Solving Quadratic Equation
−b ± b2 − 4ac
x=
2a
Given Equation: 11x2 + 12x – 5 = 0 is of the form ax2 + bx + c = 0 with a = 11, b = 12, c = –5
Replacing values of a, b and c in formula:
(12 ) − 4 × 11 × ( −5)
2
−12 ±
x=
2 × 11
Illustration 118.
Solve x 2 − 7 x + 12 = 0
Answer:
Given equation can be expressed as x 2 − 3x − 4 x + 12 = 0 or, x ( x − 3) − 4 ( x − 3) = 0
−b ± b2 − 4ac − ( −7 ) ± ( −7 )
2
− 4.1.12 7 ± 49 − 48
So x = = =
2a 2.1 2
7 + 49 − 48 7 − 49 − 48
Or, x = and i.e. x = 4 and 3
2 2
Illustration 119.
Solve x 4 − 10 x 2 + 9 = 0
Answer:
Taking x2 = u we get the transformed form of the given equation as u2 – 10u + 9 = 0
Or, ( u − 9 )( u − 1) = 0. So u = 9 and u = 1
Or, u = x2 = 9. So x = ± 3. & u = x2 = 1, So x = ± 1.
Here the power of x is 4, so we get four values of x.
Illustration 120.
1 1 1
Solve ( x + 1) 3 + (1 − x ) 3
=2 3
Answer:
1 1 1 1 1 1
Or, 2 + 3 ( x + 1) 3 × (1 − x ) 3 2 3
= 2 [Since ( x + 1) 3 + (1 − x) 3 = 2 3 ]
Or, 3. (1 − x 2 ) .21/3 = 0
1/3
Or, (1 − x 2 )
1/3
= 0 , or x2 = 1, Or x = ± 1
Illustration 121.
6− x x
Solve = +2
2
x −4 x + 2
Answer:
6− x x
= +2
x2 − 4 x + 2
x
Or, ( 6 − x ) = × ( x2 − 4) + 2 ( x2 − 4)
x+2
Or, 6 − x = x ( x − 2 ) + 2 ( x − 4 )
2
Or, 6 − x = x 2 − 2 x + 2 x 2 − 8
Or, 6 − x = 3x 2 − 2 x − 8
Or, 3x − x − 14 = 0
Drawing similarity of the above equation with ax2 + bx + c = 0 we can write a = 3, b = – 1 & c = – 14 here.
1 + 169 1 − 169
Or, x = and i.e. x = 7/3 and – 2
6 6
Illustration 122.
Solve 4 x − 3.2 x+2 + 25 = 0
Answer:
4 x − 3 ⋅ 2 x+ 2 + 25 = 0
Or, 22 x − 3.2 x 22 + 32 = 0 Or, (2 x ) 2 − 12.2 x + 32 = 0
So Let 2x = z, we get z2 – 12z + 32 = 0
Or, z2 – 4z – 8z + 32 = 0
Or, z (z – 4) – 8 (z – 4) = 0
Or, (z – 4) (z – 8) = 0
Or, z = 4 and z = 8
Or, z = 2x = 4 = 22 and z = 2x = 8 = 23
Or, x = 2 and x = 3
Illustration 123.
Solve x 2 + 7 x + x 2 + 7 x + 9 = 3
Answer:
x2 + 7x + x2 + 7x + 9 = 3
Adding 9 to both sides, we have x 2 + 7 x + 9 + x 2 + 7 x + 9 = 12
u 2 + u − 12 = 0
Or (u + 4) (u – 3) = 0
So u = – 4 and 3.
So x2 + 7 x + 9 = 3
Squaring both sides we get x2 + 7x + 9 = 9 Or, x2 + 7x = 0 Or, x (x + 7) = 0
So x = 0 and – 7
Illustration 124.
Solve: ( x 2 + 3x ) + 2 ( x 2 + 3x ) = 24
2
Answer:
Let x 2 + 3x = A ,
(x + 3x ) + 2 ( x 2 + 3x ) = 24 Or, A2 + 2 A − 24 = 0
2 2
Or, A2 + 6A – 4A – 24 = 0
Or, A(A + 6) – 4(A + 6) = 0
Or, (A + 6) (A – 4) = 0
Either, A = x2 + 3x = – 6 Or A = x2 + 3x = 4
Either, x2 + 3x + 6 = 0 Or, x2 + 3x – 4 = 0
From x2 + 3x + 6 = 0
−b ± b2 − 4ac − ( 3) ± ( 3) − 4.1.6 −3 ± 9 − 24
2
From x2 + 3x – 4 = 0
Exercise:
Theoretical Questions
Multiple Choice Questions (MCQ)
In a customer feedback survey of 60, it was found Coke was liked by 24, Fanta by 27, Coca Cola by 11, Thums
Up by 9. While, 18 liked both Fanta and Coke and 15 liked both Thums Up and Coca Cola and 11 liked all.
Based on the above information answer Q. Nos. 1 to 10.
1. How many people liked any one of the products?
(a) 33
(b) 18
(c) 11
(d) 27
2. How many people liked Fanta?
(a) 18
(b) 11
(c) 24
(d) 27
3. How many people did not like any of the products?
(a) 33
(b) 13
(c) 9
(d) 15
4. How many people liked either Fanta orThumsUp?
(a) 27
(b) 36
(c) 37
(d) 28
5. How many people liked Fanta, Coke or Thums Up?
(a) 42
(b) 53
(c) 41
(d) 54
(c) {E, W, N, M, I}
(d) {T, I, L, E, R}
13. If Set B = {B, G, R, E, O, K} is a subset of Set A= {Q, E, R, T, Y, U, I, O, P, K, G, B}, find B′.
(a) Set B′ = {B, G, R, E}
(b) Set B′ = {Q, E, G, B}
(c) Set B′ = {E, R, T, Y}
(d) Set B′ = {Q, T, Y, U, I, P}
14. If Set A={8, 9, 7, 5, 6, 2} and Set B = { 1, 4, 9, 3, 8, 2}, find the union of B and A.
(a) Set (B A) = { 8, 9, 7, 5, 6, 2, 1, 4, 9, 3, 8, 2 }
(b) Set (B A) = { 8, 9, 2 }
(c) Set (B A) = { 1, 2, 3, 4, 5, 6, 7, 8, 9 }
(d) None of the Above
15. If P1= {78, 77, 76, 75}; P2= {71, 72, 73, 74}; P3 = {80, 79, 70, 69}.
Find (P1 P2) (P2P3).
(a) (P1 P2) (P2P3) = { }
(b) (P1 P2) (P2P3) = {}
(c) Both ‘a’ and ‘b’
(d) None of the Above
16. If A= {W, R, Y, I}; B= {Q, E, T, U}; C= {Q, W, E, R}. Find A (B C).
(a) A (BC) = {W, R}
(b) A (BC) = {Q, E}
(c) A (BC) = {Y, I}
(d) A (BC) = {T, U}
17. If Set A = {Q, W, E, R, T, Y} and Set B = {B, G, R, E, O, K}, find (B-A).
(a) Set (B-A) = {Q, W, T, Y}
(b) Set (B-A) = { B, G, O, K}
(c) Set (B-A) = { E, R}
(d) None of the Above
18. If A= {8, 11, 14, 17}; B= {5, 7, 9, 15}; C= {19, 21, 17, 15}. Find A (BC).
(a) A (BC) = {8, 11, 14, 15, 17}
(b) A (B C) = {8, 5, 7, 9, 15}
(c) A (B C) = {11, 19, 21, 17, 15}
(d) A (B C) = {11, 19, 21, 15, 8}
(c) 1331
(d) –1331
26. What will be the value of 36×34×3-2×3-3×36 ?
(a) 321
(b) 316
(c) 319
(d) 311
27. Find the value of 63×6-2×6-5×64
(a) 0
(b) 1
(c) 6
(d) 216
()
a /b
a
28. Find the value of b when = (a) a /b−1 and a = 2b
b
(a) 1
(b) 2a
(c) 22
(d) a2
29. What will be the value of (73)2 ?
(a) 117649
(b) 196471
(c) 16807
(d) 18607
30. What will be the value of 96×9-4×92×93×96 ?
(a) 913
(b) 921
(c) Both ‘a’ and ‘b’
(d) None of the above
31. Find the value of (92/ 33) × (34/9)?
(a) 34
(b) 35
(c) 33
(d) 36
(a) 91 = 0
(b) 90 = 1
(c) 19 = 1
(d) 09 = 0
(a) log 4 6 = 3
(b) log 64 3 = 4
(c) log 4 64 = 3
(d) log 3 64 = 4
1003
(a)
8
997
(b)
1008
(c)
3
992
(d)
3
1
(b)
10
(c) Both ‘a’ and ‘b’
48. For the logarithms to be in A. P. Series, the positive numbers should be following ____.
(a) H. P.
(b) G. P.
(c) A. P.
1 1
49. If log y = , what will be the value of base?
2 3
1
(a)
2
1
(b)
4
1
(c)
8
1
(d) −
2
25 81 10
51. State True or False: log 2 + 2 log = 3log + 7 log
24 80 9
(a) True
(b) False
54. Find the value of the logarithm of 2nd number (b) for 3 consecutive numbers (a, b, c).
(a) log (1 + ac)
1
(b) × 2 × log (1 + ac)
2
1
(c) × log (1 + ac)
2
(d) 2 × log (1 + ac)
12!
61. Compute
(8! × 4!)
(a) 3960
b. 495
c. 99
d. 440
62. Find the value of v, if (v –1)! × 20 = (v + 1)!
(a) 0
(b) 2
(c) 4
() 5
63. Determine the number of ways in which a digit and a vowel can be selected from 10 digits and 26 letters
of Alphabet?
(a) 50
(b) 210
(c) 105
(d) None of the Above
64. Find the LCM of {12!, 14!, 13!}
(a) 11!
(b) 15!
(c) 12!
(d) 14!
65. When 9 local trains are running between Haldia and Burdwan. In how many ways can a passenger travel
from Burdwan to Haldia and return by a different train?
(a) 72 ways.
(b) 70 ways.
(c) 64 ways.
(d) 60 ways.
2 1 1
67. Find the value of − −
36! 35! 35!
(a) –35 /18!
(b) –1 / 18!
(c) –2 / 36!
(d) –70 /36!
68. Find the number of permutations for 15 scooters if 3 scooters are to be considered at a time.
(a) 2730
(b) 2370
(c) 2184
(d) 2814
10!− 9!
69. Find the value of
8!
(a) 81
(b) 80
(c) 10
(d) 9
70. How many ways can 5 drivers refill their tanks from 5 refills, assuming no refills in the fuel station remain
unused?
(a) 24 ways.
(b) 120 ways.
(c) 5 ways.
(d) 60 ways.
71. In how many ways 8 cardholders stand in a queue at fair price shop?
(a) 40320 ways
(b) 40230 ways
(c) 20430 ways
(d) 20340 ways
72. Find the number of permutations for 11 bikes if 5 bikes are to be taken at a time.
(a) 54540
(b) 55440
(c) 44550
(d) 45450
9 3 12
73. Find the value of − +
7! 6! 7!
(a) 0
(b) 1/ 7!
(c) –1/7!
(d) None of the above
77. How many ways can 8 people get vaccinated from 8 vaccinators, assuming no vaccinator is idle?
(a) 40320 ways.
(b) 5040 ways.
(c) 5760 ways.
(d) 35280 ways.
78. In how many different ways can 4 different cars, one of each of the 4 manufacturers, be parked in a parking
lane?
(a) 20 ways
(b) 22 ways
(c) 24 ways
(d) 26 ways
3 2 2
79. Find the value of − −
13! 12! 12!
(a) – 49 /13!
(b) –30 / 13!
(c) –25 / 12!
(d) –50 /12!
80. In how many ways 6 customers stand in a queue for depositing cash in bank?
(a) 680 ways
(b) 480 ways
(c) 600 ways
(d) 720 ways
81. Examine the nature of the roots for the following equation 16 x 2 − 24 x + 9 = 0
(a) Real and unequal
(b) Real, Irrational and Equal
(c) Real, Rational and Equal
(d) Unreal and Imaginary
82. For what value of c, would the product of roots be zero?
(a) a = 1, b = 1, c = 1
(b) a = 1, b = 0, c = 1
(c) a = 1, b = 1, c = 0
(d) a = 1, b = 2, c = 2
83. Form the equation whose roots are 9, –4
(a) x + 5x − 36 = 0
(b) x 2 − 5x − 36 = 0
(c) x 2 − 5x + 36 = 0
(d) x 2 + 5x + 36 = 0
(a) x 2 − 2ax + a 2 − t 2 = 0
(b) x 2 + 2ax + a 2 − t 2 = 0
(c) x 2 − 2ax − a 2 + t 2 = 0
(d) x 2 + 2ax − a 2 + t 2 = 0
86. β 2 + α 2
(a) 41/25
(b) -41/25
(c) 139/25
(d) -139/25
89. α / β + β / α
(a) 369/5
(b) -41/45
(c) -369/5
(d) 41/45
90. α + β + 4
(a) 27/5
(b) 29/5
(c) 28/5
(d) 24/5
91. If b2 – 4ac > 0, is a perfect square, the nature of roots would be
(a) Real and Equal
(b) Imaginary
(c) Unreal
(d) Real and Unequal
92. For what values of a and b, the product of roots would be equal to c?
(a) a = c ≠ b
(b) a ≠ b = c
(c) a = 1
(d) a ≤ 0
93. Choose the correct form (From the alternatives given below) in which quadratic equation is generally
written -
(a) ax 2 + bx + c = 0
(b) x 2 + ax − b = 0
(c) ax 2 − bx + c = 0
(d) x − bx + c =
94. Choose the correct condition for any equation to be Quadratic equation-
(a) 5 constants and all constants > 0.
(b) 5 constants and all constants < 0.
(c) 3 constants and a > 0.
(d) 3 constants and a ≠ 0.
(d) b 2 + 4ac
1 1
7. If x = 5 + 2 6 and xy = 1 , then + is 89
x2 y2
9 10
8. If 2 x + 2 y = 22 x − y = 8 , then x = and y =
10 3
9. If x = 2 + 5 , then x 3 + 3x 2 − 29 x is 7
10. log 3 + log 5 is log 15
11. The value of log2 log2 log3 81 = 2
1
12. The logarithm of 324 to base is – 4
3 2
13. The logarithms with base 10 are called Natural logarithm
14. The logarithms with base e are called common Logarithm
15. The logarithm of one to any base is zero
16. The logarithm of a number which is not equal to one with itself as base is zero
17. The integral part of the value of logarithm of a number is called characteristic
18. The decimal part of the value of logarithm of a number is called mantissa
19. The logarithm of same number for different bases are different
20. A polygon has 44 diagonals then the number of its sides are 8
21. The total number of 9 digit numbers which have all different digits is 9 × 9
22. There are 8 questions in an examination paper and each question has an alternative. The number of ways
in which a student can give his answer is 6561
23. In a football competition there were 153 matches. A match occurs between two teams. The total numbers
of teams took part in the competition is 18
24. If nC n = 1 , then 0! =1
7. If A and B are the two sets of positive and negative integers respectively then A B is ________
18. If log 2 = 0.30103, then the number of digits in 520 is: _____
1
22. The value of log10 125 − 2 log10 4 + log10 32 is: ______
3
23. These are 10 lamps in a room. Each one of them can be switched on independently. The number of ways
in which the hall can be illuminated is ______
24. These are 11 questions in an examination paper of mathematics. A candidate has to answer 6 questions of
which the question under 1 is compulsory. The total number of selections of his answering in questions
is ______
25. There are two groups in a question paper, each group contains 7 questions. A candidate has to answer
questions but taking not more than 5 from any group. The total number of selections of 9 questions is ___
26. There are 10 points in plane and among them 4 are collinear. The total number of triangles formed by
joining them is ______
27. Out of 18 points in plane, no three are in the same straight line except 5 points which are collinear. Then
the number of straight lines obtained by joining them is _____
28. If the equations x 2 − 7 x + 12 = 0 and x 2 + mx + 5 = 0 have common roots the value of m is equal to______
29. The least positive value of m for which the equation x 2 + mx + 4 = 0 has real roots ______
30. The value of m for which the difference between the roots of the equation x 2 + mx + 4 = 0 is 2 are ______
31. If p, q are the roots of the equation f ( x ) = 6 x 2 + x − 2 = 0 the value of p/q is ______
Answer:
()
28 (a) a
a b a
−1
= (a) b
b
( )
2b
or, 2b b 2b
= (2b) b
−1
[As a = 2b]
b
or, 22 = (2b)2–1 or, 22 = 2b or, b = 2
29 (a) (73)2 = 76 = 117649
1 2 −5 −3 1 1 −5 −5 −3 4
= 2 3 ⋅ (23 ) 3 ⋅ (2 ⋅ 3) 4 ⋅ 3 4 ⋅ (32 ) / (24 ) 3 = 2 3 ⋅ 22 ⋅ 2 4 ⋅ 3 4 ⋅ 2 4 ⋅ 32 / 2 3
1 −5 4 5 3
= 23 +2 −
4 3
⋅3
− − +2
4 4
4+ 24 −15−16 −5−3+8
= 2 12
⋅3 4
= 2 − 4 ⋅ 30 = 1 = 1
1 4
2
4
2
35 (b) 77/9 × 72/9 × 74/9×7-1×7-4/9 = 7 7/9 + 2/9 + 4/9 -1 - 4/9 = 70 = 1
36 (b) 1 1 1
x y z
= a = b = c = K (Let) ∴ a = k x , b = k y , c = k z
1 2 2
b2 = ac or, k y = k x , k x or, k y = k x + z
1 1 1 1
1 1 2 1 1 1
So x + z = y i.e. , & are in A.P.
x y z
43 (b) log10 (8 y + 3) = 3
(8y + 3) = 103
or, 8y + 3 = 1000
or, 8y = 1000 – 3
or, 8y = 997
or, y = 997
8
44 (d) log 4 (t − 1) + 1 = 2 × log 4 t
or, log 4 (t − 1) + log 4 4 = log 4 t 2
or, (t − 1) × 4 = t 2
or, t 2 − 4t + 4 = 0
or, (t − 2) 2 = 0
or, t=2
45 (a) log 3 t = 6
t = 36
t = 729
46 (d) Logarithm of 324 with the base 3 2
log 3 2 324 = x
(3 2 ) = 324
x
or, (3 2 ) = (3 2 )
x 4
or, x = 4
47 (c)
100 z = z log10 z or, log10 (100 z ) = log10 z ( ) or, log
log 10z
10
z
100 + log10 z
= log10 z
× log10
( )
10 z z 2
or, 2 log10 + log10 = log10
z
or, 2+ x = x2 (Let log10 = x )
or, x2 – x – 2 = 0
or, (x – 2) (x + 1) = 0
∴ x=2&–1
1
z
log10 = 2 or, z =102 = 100 & log10z = −1 or, z = (10) −1 or, z =
10
48 (b) For the logarithms to be in A. P. Series, the positive numbers should be following G.P.
49 (c) 1 1
log y =
2 3
3 3
1 1 1 13
= y 3 or, 2 = y
2
1
or, y =
8
50 (a) log t 3125 = 5
3125 = t 5
or, 55 = t 5
or, t = 5
51 (a) 25 52
LHS = log 2 + 2 log = log 2 + 2 log = log 2 + 2[log 52 − log (8 × 3)]
24 8×3
= log 2 + 2 [2 log 5 – log 8 – log 3] = log 2 + 2 [2 log 5 – 3 log 2 – log 3]
53 (b) True
log 5 32 = 2.15 when log 2 = 0.30103
32 2 5 2
log10
32 log10 5log10
L.H.S = log = 5 = =
5
log10 ( ) log10 − log102
10
log10 2
10
5 × 0.30103
= = 2.15 = R.H.S., Hence true.
1 − 6.30103
or, y = 105
7
or, y = 15
58 (b) a
Let us consider a series of 3 positive numbers , a and ar which are in G.P.
r
Logarithm of these numbers will be log
a
()
r , log a and log (ar)
a
()
But log r = log a – log r and log (ar) = log a + log r
Hence logarithm of the 3 positive numbers in G.P. can be rewritten as (log a – log r), log a,
(log a + log r) which are in A.P with common difference log r
59 (a) log (9t − 2) = 2 or, log10 (9t – 2) = 2
or, (9t − 2) = 102
or, (9t − 2) = 100
or, 9t = 100 + 2
or, 9t = 102
or, t = 102
9
(5 5 ) = 125
x
or, (5 5 ) = (5 5 )
x 2
or, x = 2
61 (b) 12! / (8!×4!) = 12×11×10×9×8! / (8!×4×3×2×1)
= 12×11×10×9 / 24 = 11880/24 = 495
62 (c) (v–1)! × 20 = (v + 1) × v × (v–1)! Or, 20 = (v + 1) × v
or, 5×4 = (v+1)×v or, v = 4.
63 (a) 10C × 5C = 10 × 5 = 50
1 1
87 (d) 7 b
= (− )
5 a
88 (d) 9
5
=
c
a()
89 (b) – 41/45
90 (a) (7/5) + 4 = (7 + 20)/5 = 27/5
91 (d) Real and Unequal
92 (c) Product of roots can be expressed as c/a,
Hence, a =1, product of roots = c/a = c/1 = c
93 (a) ax2+bx+c=0
94 (d) 3 constants and a (coefficient of x2) ≠ 0.
95 (c) b2–4ac is known as Discriminant of the equation
96 (d) For b2–4ac ≥ 0, roots are real.
97 (b) Sum of the roots is expressed as –b/a,
Hence, for a = –1, Sum of the roots = – b/(–1) = b
98 (a) Cofficient of x (ax2 + bx + c = 0)
99 (d) 5x2 – 60x+115 = 0 or, x2 – 12x + 23 = 0
Sum (α+β): 12, Product (α×β) : 23,
Square of Difference (α–β)2 = α2+β2 – 2αβ
= (α+β)2 – 2αβ – 2αβ = (12)2 – 4 × (32) = 52
100 (b) Coefficient of x2 (ax2 + bx + c = 0)
1 2 3 4 5 6 7 8 9 10
T T F T F T F F T T
11 12 13 14 15 16 17 18 19 20
F T F F T F T T T F
21 22 23 24 25 26 27 28 29
F F T T T F F F F
1 {1,3,6} 2 j
3 {1,2,3} 4 A=B
5 n (A) + n (B) 6 2
7 Set of all integers except zero 8 27 abc
9 x – 1/x 10 20
11 ¼ 12 5
13 1000 14 16
15 16 16 12
17 31 18 14
19 (-4) 20 6
21 2 22 1
23 1023 24 252
25 1470 26 116
27 144 28 (–21/4, –14/3)
29 4
30 (±2 5)
31 3 4
(− and − )
4 3
Parametic Representation of a Function : If the dependent variable x be expressed in terms of a third variable,
say t, i.e., y = f (t), x = F (t), then these two relations together give the parametic representation of the function
between y & x.
Example 6 : y = t2 + 1, x = 2t.
Odd and Even Functions : A function f (x) is an odd function of x if f(– x) = – f(x) and is an even function of x
if f (– x) = = f(x).
Example 7 : f(x) = x. Now f (–x) = – x i.e f (– x) = – f (x), so f (x) = x is an odd function of x.
f(x) = x2, f ( – x) = (– x)2 = x2 = f(x), so f (x) = x2 is an even function of x.
Inverse Function : If from a function y = f(x), we can obtain another function x = F(y), then each function is
known as the inverse of the other.
1
Example 8 : y = 4x – 3 and x = ( y + 3) are inverse to each other.
4
Both are the Functions of single independent variable :
Polynomial Function : A function of the form
F(x) = a0 + a1x + a2x2 + … + an - 1 xn–1 + anxn,
(Where n is a positive integer and a0, a1 …. an are constants) is known as a polynomial function in x.
For n = 0, f(x) = a0, a constant function
= 1, f(x) = a0 + a1x, a linear function in x
= 2, f(x) = a0 + a1x + a2x2, a quadratic function in x.
= 3, f(x) = a0 + a1x + a2x2 + a3x3, a cubic function in x.
Rational function : A function that is expressed as the ratio of two polynomials
a0 + a1 x + a2 x 2 + ...... + an x n
i.e., f ( x ) = .
b0 + b1 x + b2 x 2 + ...... + bn x n
P( x)
i.e., in the form of Q( x)
From above it can be said that if 3 < x <4 then (x – 3) is positive and (x – 4) is negative.
Thus (x – 3) (x – 4) = (Positive) × (Negative) = Negative
Example 15 :
If y = x2 + 4 is a function under consideration then solving for y = 0, we get
0 = x2 + 4
or, x2 = – 4
or, x = ± −4
or, x = ± 2 −1 = ± 2i
The number ± 2i is a complex number whose real part is 0 & imaginary part is ± 2
Example 16 : Given f(x) = 2x2 – 3x + 1 ; find f(2), f(0), f (– 3)
Solution:
f(2) = 2.22 – 3.2 + 1 = 2.4 – 6 + 1 = 8 – 6 + 1 = 3
f(0) = 2.02 – 3.0 + 1 = 2.0 – 0 + 1 = 0 – 0 + 1 = 1
f(– 3) = 2 (– 3)2 – 3. (– 3) + 1 = 2.9 + 9 + 1 = 18 + 9 + 1 = 28.
Example 17 : If y = 4x – 1, find the value of y for x = 2. Can y be regarded as a function of x? Also find the domain.
Solution:
For x = 2, y = 4.2 – 1 = 8 – 1 = 7. Again for x = 0, y = – 1 and for x = – 1, y = – 5. So for every value of x in – ∞ <
x < ∞, we find different values of y, So y is a function of x and its domain is -
– ∞ < x < + ∞.
Example 18 : If f (x) = x + | x |, find f (3) and f (– 3) and show also they are not equal.
Solution:
f(3) = 3 + | 3 | = 3 + 3 = 6 ; f ( – 3) = – 3 + | – 3| = – 3 + 3 = 0.
As 6 ≠ 0, so f(3) ≠ f ( – 3).
Note : If f(x) = f(– x) [i.e., f (3) = f (– 3)] then f(x) will be an even function of x.
Example 19 : Show that x 2 − 5x + 4 is not defined for 1 < x < 4
Solution:
x 2 − 5x + 4 = ( x − 1) ( x − 4)
Now for any value x > 1, but < 4 the expression becomes imaginary. So the expression is undefined for 1 < x < 4.
x
Example 20 : Find the domain of f ( x) = 2
x −9
Solution:
Here f(x) has a unique value except for x = 3, – 3.
3 3 −3 −3
For f (3) = = (undefined) and f (−3) = = (undefined)
9−9 0 9−9 0
∴ domain of the function f(x) is – ∞ < x < – 3 ; – 3 < x < 3 and 3 < x < ∞.
Example 21 : Given the function
f(x) = 5–2x –1, – 1 ≤ x < 0
Solution:
L.H.S. = (x – a)2 – (x + a)2 = x2 + a2 – 2ax – (x2 + a2 + 2ax) = – 4ax
R.H.S. = – 2a {x – a + x + a} = – 2a. 2x = – 4ax. So L.H.S = R.H.S (Proved)
LIMIT
Introduction:
Calculus is based, in general, on the idea of limit. At present this idea including its related concepts, continuity to
mention, will be discussed.
Some definitions:
(i) Meaning of “x tends to a”. When the difference |x–a| (i.e., numerical difference between the present value of
x and a) can be made less than any positive quantity, however small, we say x tends to a and is written as x→
a.
(ii) Meaning of “x tends to zero”. When the value of x goes on decreasing numerically and can be made
numerically less than any positive quantity, however small, we say x tends to zero and is written as x→ 0.
(iii) Meaning of “x tends to infinity”. When the value of x goes on increasing and can be made greater than any
positive quantity, however, large, we say x tends to infinity written as x → ∝.
From the above definition it is interesting to note lim f ( x) that may exist, even if the function f(x) is not defined at
x→ a
x = a. Sometimes both the things may happen, i.e.,
(i) The function is defined at x = a, and
The variable point x can approach ‘a’ either from the left or from the right. These respective approaches are
indicated by writing x → a − and x → a +
When
Methods of finding limit of a function f(x) as x tends to a finite quantity say ‘a’
There are three methods for finding limit of a function f(x) as x tends to a finite quantity say ‘a’:
(i) Method of factors
(ii) Method of substitution
(iii) Method of rationalization.
g (x)
In method I, if f(x) is of the form factorise g(x) and h(x), cancel the common factors and then put the value
h (x)
of x.
3
Example 24: Find the value of Lt x − 1 .
2 x→1 x −1
Answer:
x 3 − 1 (x − 1)(x 2 + x + 1)
Now, =
x2 − 1 (x − 1)(x + 1)
x2 + x + 1
= [As x → 1, x ≠ 1 i.e x –1 ≠ 0]
x +1
3 2
∴ Lt x 2 − 1 = Lt x + x + 1
x→1 x −1 x→1 x +1
= 1+ 1+ 1 = 3 .
1+ 1 2
Method II
The following steps are involved:
(i) Put x = a + h where h is very small but ≠ 0, i.e. x → a, h→0.
(ii) Simplify numerator and denominator and cancel common powers of h.
(iii) Put h = 0.
The result is the required limit.
n n
Example 25: Evaluate Lt x − a .
x→ a x−a
Answer:
Put x = a + h where h is very small, then
x n − an (a + h)n − an
=
x−a h
h n
an 1+ − 1
a
=
h
nh h2
an 1+ + n (n − 1) 2 + − 1
a a
=
h
h h2
an n + n (n − 1) 2 +
a a
=
h
n h
= an + n (n − 1) 2 +
a a
x n − an n h
∴ Lt = Lt an a + n (n − 1) a2 +
x→ a x−a h→ 0
n
= an ⋅ = nan−1
a
1+ x − 1 − x
Example 26: Evaluate Lt
x→ 0 x
Answer:
Rationalising the numerator, we get
1+ x − 1− x 1+ x − 1− x 1+ x + 1− x
= ×
x x 1+ x + 1− x
2x
=
x 1+ x + 1− x
2
= [As x → 0, x ≠ 0]
1+ x + 1 − x
∴ Lt 1+ x − 1 − x 2
= Lt =1
x→ 0 x x → 0
1+ x − 1 − x
Infinite Limits
g(x)
For finding the limit of f(x) = as a → ∝, we divide the numerator and denominator by highest power of x
h(x) 1 1
occurring in f(x) (numerator or denominator whichever has higher power of x) and then use , 2 , etc.→ 0 as
x x
x → ∝.
Example 27: Evaluate
(x + 1)(2 x + 3)
Lt
x→∞ (x + 2)(3 x + 4)
Answer:
(x + 1)(2 x + 3) 2 x2 + 5x + 3
Now = 2
(x + 2)(3 x + 4) 3 x + 10 x + 8
5 3
+ 2+
= x x2 [Dividing by x2]
10 8
3+ +
x x2
(x + 1)(2 x + 3) 22 + 5×0 + 3×0 1 1
∴ Lt = [As x → ∞, as well as 2 → 0 ]
x→∞ (x + 2)(3 x + 4) 3 +10×0 + 8×0 x x
2
=
3
Alternative approach:
(x + 1)(2 x + 3)
Lt
x→∞ (x + 2)(3 x + 4)
1 3
1+ x 2 + x 1⋅ 2 2
= Lt = =
x→∞ 2 4 1⋅ 3 3
1+ x 3 + x
SOLVED EXAMPLES
Example 28: x2 − 4
lim = 4.
x→2 x−2
x 2 − 4 ( x − 2 ) ( x + 2 ) h ( 4 + h)
= = = 4+h
x−2 ( x − 2) h
2
and by taking h numerically small, the difference of x − 4 and 4 can be made as small as we like. It may be
x−2
noted here that however small h may be, as h ≠ 0, one can cancel the factor (x – 2) i.e., h between numerator and
2 2
denominator here. Hence lim x − 4 = 4. But for x = 2, the function x − 4 is undefined as we cannot cancel the
x→2 x−4 x−2
factor x – 2, which is equal to zero.
2
Now writing f(x) = x − 4 , limf(x) = 4 whereas f(2) does not exist.
x−2 x→ 2
Answer:
x, for x ≥ 0
f(x) = | x | means f(x) =
− x, for x < 0
lim f(x) = lim |x| = lim x = 0 [x → 0+ means x is approaching 0 from right i.e x > 0 now. Also | x | = x for x > 0]
x →0+ x →0+ x →0
lim f(x) = lim |x| = lim(− x) = 0. [x → 0 – means x is approaching 0 from left i.e x < 0 now. Also | x | = – x for
x →0 − x →0 − x →0
x < 0]
∴ limf(x) = 0.
x→0
Answer:
lim x − 3 = 0, but lim x − 3 does not exist. Because when x → 3 – then x is approaching 3 from left which
x→3 + x→3 −
means x is definitely less than 3. Thus (x – 3) is negative and square root of negative quantity is never real but
imaginary.
∴ the limit does not exist.
Alternative approach:
Put x = 3 + h, as x → 3, h → 0
lim h = 0, but = lim h does not exist (as the h near to but less than zero corresponds no real value of h ).
h→0 + h→0 −
1 1
(ii) xlim = +∞, lim = − ∞. The limit doesn’t exist as the two values are unequal.
→0+ x h→ 0 − x
( x − 1) ( x − 1) = lim
(
(iii) lim x 2 − 1 +
x →1
) ( x − 1) x →1
{( x − 1) + ( x − 1)} , [As x → 1, x ≠ 1 i.e x –1 ≠ 0]
2
= lim
x →1
( )
x 2 + x − 2 = (1+ 1− 2 ) = 0.
On putting the limiting value of x, the value of the function exists and its value is 0.
By lim f ( x ) we mean the value of f(x) when x has any arbitary value very near ‘a’ but not ‘a’. The quantity f (a)
x→a
(iii) f (a) and both exist, lim f ( x ) both exist but unequal.
x→a
1. lim f ( x ) ± φ ( x ) = l ± m
x→a
f ( x) l
3. lim = ,m≠0
x→ a φ ( x) m
4. If lim φ ( x) = b and lim f (u ) = f (b) then
x→ a x →b
x →b
{
lim f {φ ( x)} = f lim φ ( x) = f (b).
x →b
}
lim
5. x→ a k = k, where k = Constant
x 2 + 3x − 1
Example 32: Evaluate, lim .
x →1 2x + 4
Answer:
As the limit of the denominator ≠ 0, we get
x →1
(
lim x 2 + 3 x − 1 ) lim x 2 + lim 3 x − lim1
x →1 x →1 x →1
Required limit = = (by theorem 1)
lim ( 2 x + 4) lim 2 x + lim 4
x →1 x →1 x →1
1 + 3.1 − 1 3 1
= = =
2.1 + 4 6 2
1
We have not applied the definition to save labour. If we substitute x = 1, we get the value of the function =
(equal to the limit the value as x →1). Practically this may not happen always, as shown below. 2
x 2 − 3x + 2
Example 33 : Evaluate lim .
x →1 x2 − 4x + 3
( x − 1) ( x − 2) = lim x − 2
Required limit = lim [As x → 1, x ≠ 1 i.e x – 1 ≠ 0]
x →1 ( x − 1) ( x − 3) x →1 x − 3
1− 2 1
= = .
1− 3 2
lim
( x − 1) ( x − 2) = lim x − 2 = 1 − 2 = 1 .
x →1 ( x − 1) ( x − 3) x →1 x − 3 1 − 3 2
0
If we put x = 1, the function becomes which is undefined. Further limit of the denominator is zero, we cannot
0
apply theorem 2, hence cancelling the common factor (x – 1) which is ≠ 0 as x →1, we obtain the above result.
5 2 5 2
x →∞
( x →∞
)
∴ lim 2 x 2 − 5 x + 2 = lim x 2 2 − + 2 = lim x 2 × lim
x x x→∞ x →∞
2 − + 2
x x
5 2 1 1
Now lim x 2 = ∞ ; lim 2 = 2 ; lim = 0; lim 2 = 0 [As x → ∝, & 2 = 0]
x →∞ x →∞ x →∞ x x →∞ x x x
(
∴ lim 2 x 2 − 5 x + 2 = ∞ × 2 = ∞.
x →∞
)
4 x5 + 2 x3 − 5
Example 35: Find lim
x →∞ 7 x8 + x 4 + 2
Answer:
Of all the terms in numerator and denominator the highest power of x is 8. We now divide both the numerator and
∞
the denominator by x8 to avoid the undefined form . So we get
∞
4 2 5
+ − 3 5 8
x 3 x 5 x8 = lim 4u + 2u − 5u 1
Given limit = lim 1 2 4 8 (put = u , so as x → ∞ , u → 0)
x →∞
7+ 4 + 8
u→0 7 + u + 2u x
x x
(
lim 4u 3 + 2u 5 − 5u 8
u→0
)
= 4 8
lim (7 + u + 2u )
u →0
5 − 2x2
Example 36: Find lim .
x →∞ 3x + 5 x 2
Answer:
5
−2
x2 5u 2 − 2 1
Given limit = lim
x →∞ 3
= lim
u → 0 3u + 5 Let x = u , as x → ∞, u → 0
+5
x
5 lim u 2 − 2 0−2 2
u→0
= = =− .
3 lim u + 5 0+5 5
u→0
x+h − x
Example 37: Find the value of : lim
h →0 h
lim
x+h − x
= lim
( x+h − x )( x+h + x ) = lim x+h−x
h →0 h h→0
h ( x+h + x ) h →0
h ( x+h + x )
h 1 1 1
= lim = lim , [As h → 0, h ≠ 0) = = .
h →0
h ( x+h + x ) h→0 x+h + x x+0+ x 2 x
Answer:
We have to find R.H. limit and L.H. limit i.e lim f ( x) and lim f ( x).
x →1+ x →1−
2 2
Now lim f ( x) = lim x = 1 = 1, [As f(x) = x for x > 1] 2
x →1+ x →1 +
Since the values of R.H. L and L.H.L are not equal, so lim f ( x ) doesn’t exist.
x →1
4 x+ | x | | x−2|
Example 39: Evaluate (i) lim (ii) lim
x→0 3x+ | x | x→2 x − 2
Answer:
4x + x 5x 5
(i) R.H. Limit = xlim = lim = , [As x → 0, So x ≠ 0 and also for x > 0, | x | = x]
→0+ 3x + x x → 0 4x 4
4x − x 3x 3
L.H. Limit = lim = lim = [As x → 0, So x ≠ 0, and for x < 0, | x | = – x]
x → 0 − 3x − x x→0− 2x 2
∴ the given limit doesn’t exist, as the values of R.H.L and L.H.L are unequal.
x−2 x−2
(ii) R.H.L = lim = lim = 1. [As x → 2, x ≠ 2 i.e (x–2) ≠ 0. Also for | x – 2 | > 0 i.e., for x > 2,
x →2 + x − 2 x →2 ( x − 2 )
|x–2|=x–2
x−2 − ( x − 2)
L.H.L = xlim = lim = −1 for | x – 2 | < 0 i.e., for x < 2, | x – 2 | = – (x – 2)
→2− x − 2 x → 2 − ( x − 2)
As the values of R.H.L and L.H.L are unequal, so the given limit does not exist.
x→a x−a x → 0 x
e3 x − 1
Example 40 : Evaluate lim
x→0 x
Answer:
Put 3x = u, As x → 0 u → 0.
e3 x − 1 eu − 1 eu − 1
lim = lim = 3 × lim . = 3 × 1 (by C ) = 3.
x→0 x u→0 u / 3 u →0 u
log (1 + 6 x )
Example 41: Evaluate lim = 6.
x→0 x
Answer:
Put 6x = u, As x → 0, u → 0
log (1 + u ) log (1 + u )
Given limit = lim = 6 × lim = 6 × 1 (by B) = 6.
u→0 u/6 u → 0 u
a x − bx
Example 42 : lim
x→0 x
Answer:
a x −1 − bx + 1 ax −1 bx −1
Given limit = lim = lim − lim
x→0 x x→0 x x →0 x
a
= log a – log b [by (D) above] = log .
b
e ax − ebx
Example 43: lim
x→0 x
Answer:
eu − 1 eν − 1
= a lim − b lim
u→0 u ν →0 ν
= a. 1 – b.1 = a – b.
CONTINUITY
Introduction :
A function is said to be continuous if its graph is a continuous curve without any break. If, however, there is any
break in the graph, then function is not continuous at that point.
If for a value of k, the limit of f(x) does not exist i.e., if on the curve of f(x) a point is absent, the graph will be
discontinuous i.e., not continuous.
A function f(x) is said to be continuous at x = a, when lim f ( x) if exists is finite and is equal to f(a)
x→ a
i.e., lim f ( x) = lim f ( x ) = f ( a )
x→ a+ x→ a −
If however all these values are equal, then f (x) is continuous at x = a, otherwise it is discontinuous.
Answer:
Now,
x →1+ x →1+
( ) h→0
{ 2
}
lim f(x) = lim 3x 2 − x + 2 = lim 3 (1+ h) − (1+ h) + 2 [Putting x = 1 + h as x → 1, h → 0]
(
= lim 3h2 + 5h + 4 = 3.0 + 5.0 + 4 = 4
h→ 0
)
( ) { }
and lim f ( x ) = lim 3x 2 − x + 2 = lim 3 (1− h) − (1− h) + 2 [Putting x = 1 – h, h → 0 as x → 1]
h →1− x →1− h→ 0
2
= hlim
→0
(
3h2 − 5h + 4 = 3.0 − 5.0 + 4 = 4 )
The Institute of Cost Accountants of India 193
Fundamentals of Business Mathematics and Statistics
ε - δ Definition :
Again corresponding to definition of limit, we may define the continuity of a function as follows :
The functions f(x) is continuous at x = a, if f (a) exists and for any pre-assigned positive quantity ε, however
small we can determine a positive quantity δ, such that | f (x) – f (a) | < ε, for all values of x satisfying
|x – a | < δ.
Some Properties :
1. The sum or difference of two continuous functions is a continuous function
x →a
{ }
i.e., lim f ( x ) ± φ ( x ) = lim f ( x ) ± lim φ ( x ).
x →a x →a
A function f (x) is said to be continuous at the left end ‘a’ of an interval a ≤ x ≤ b if lim f (a + h) = f (a ) , and at the
x→0
right end ‘b’ if lim f ( x) = f (b) .
x →b −
Discontinuity at a Point: If at any point x = a in its domain, at least one of values and f (a) be different from the
others, then f (a) fails to be continuous at that point, i.e., at x = a.
lim f ( x) = lim (2 x + 1) = 2.4 + 1 = 9 [x → 4+ means x is approachig 4 from right i.e x > 4. Also f (x) = 2x + 1
Here
x→ 4 − x→ 4
for x ≠ 4]
lim f ( x) = lim (2 x + 1) = 2.4 + 1 = 9 [x → 4 means x is approachig 4 from left i.e x < 4. Also f (x) = 2x + 1
–
x→ 4 − x→ 4
for x ≠ 4]
SOLVED EXAMPLES
Example 46: Show that f (x) = 2x + 3 is continuous at x = 1.
Answer:
lim f ( x) = lim x = 0 [x → 0 means x is approaching 0 from right i.e x > 0 now. Also f (x) = x for x > 0]
+
x→0 + x→0
lim f ( x) = lim ( − x) = 0 [x → 0 – means x is approaching 0 from left i.e x < 0 now. Also f (x) = – x for x < 0]
x→0 − x→0
f (0) = f (x) at x = 0 = 0
1
Example 48: Show that f ( x) = is discontinuous at x = 1.
x −1
Answer:
1 1
f (1) = = , undefined.
1− 1 0
1 1
Now lim f ( x ) = lim = lim = + ∞ (Putting x = 1 + h, As x → 1, h → 0)
x →1+ h→ 0 1+ h − 1 h → 0 h
1 1
And lim f ( x ) = lim = lim = −∞ (Putting x = 1 – h, As x → 1, h → 0)
x →1− h→ 0 1− h − 1 h → 0 −h
Answer:
Now lim f ( x ) = lim 4 ( 2 + h) + 8 = 16 (Putting x = 2 + h As x 2, h 0)
x→2+ h→ 0
OBJECTIVE QUESTIONS :
1. If f(x) = (x – 1) (x – 2) (x – 3), find f(0) [Ans. – 6]
2. If f(x) = x + | x |, find f(– 2) [Ans. 0]
x 2 − 6x + 8
3. If f ( x ) = find f(0) [Ans. 2
3]
x 2 + 8x + 12
x2
4. Given f(x) = x, F ( x ) = is F(x) = f(x) always? [Ans. equal for x ≠ 0]
x,
5. If f(x) = 2 + x, x < 3 [Ans. 4]
= 7 – x, x ≥ 3, find f(3)
6. If f(x) = (x – 2) (x – 3) (x + 4) find f(3) [Ans. 0]
7. Given f ( x ) = x , for what value of x, f(x) is unreal? [Ans. Any negative value]
x−2
8. Find the range of the function f ( x ) = , x≠2 [Ans. – 1]
2−x
9. If f(x) = x + 2x3, find – f(– x) [Ans. x + 2x3]
x
10. f ( x ) = , x ≠ 0 and is a real number, find f (c) − f ( −c) . [Ans. 2]
x
x2 + 1 x2 − 1 x−2
14. Evaluate : (i) lim (ii) lim (iii) lim [Ans. (i) 1, (ii) 2, (iii) does not exist]
x →1 x +1 x → 1 x −1 x → 2 x−2
x 2 + 5x − 6 ex − 1
15. Evaluate : (i) lim (ii) lim [Ans. (i) 7 (ii) 1]
x →1 x −1 x→0 x
x 2 + 4x + 3 −2
16. Evaluate : lim [Ans. ]
x → −1 x 2 − 7x − 8 9
1− 1− x 1
17. Find the value of lim [Ans. ]
x→0 x 2
f ( x + h) − f ( x )
18. If f(x) = x2, evaluate : lim [Ans. 2x]
h→ 0 h
DIFFERENTIATION
Introduction :
The idea of limit as discussed previously will now be extended at present in differentiating a function f(x) with
respect to x (the independent variable). For this let us know at first what the term ‘increment’ means.
Increment : By increment of a variable we mean the difference of initial value from the final value.
i.e., Increment = final value – initial value.
Let x change its value from 1 to 4, increment of x = 4 – 1 = 3.
Again if x changes from 1 to – 2, increment = – 2 – 1 = – 3.
(i.e., increment may be positive or negative).
Symbols : Increment of x will be denoted by h or, δx (delta x) or ∆x (delta x) and that of y will be represented by
k or, δy or, ∆y.
If in y = f(x), the independent variable x changes to x + δx, then increment of x = x + δx – x = δx (≠ 0).
So y = f(x) changes to y = f(x + δx).
∴ increment of y = f(x + δx) – f(x) [as y = f(x)]
δy f ( x + δx ) − f ( x ) f ( x + h) − f ( x )
Now the increment ratio = = [assuming δx = h]
δx δx h
δy
If the ratio tends to a limit, as δx → 0 from either side, then this limit is known as the differential coefficient or
δx
derivative of y [ = f(x)] with respect to x. The operation of finding differential coefficient (or derivetive) is called
Differentiation.
Example : If y = 2x2, then y + dy = 2 (x + dx)2, dy = 2 (x + dx)2 – 2x2
δy 2 ( x + δx ) − 2x
2 2
∴ =
δx δx
1 1 1
Again for y = , δy = − 5
( x + δx ) x
5 5
x
f ( x + δx ) − f ( x )
or, lim f ( x + h) − f ( x )
δy
Definition : A function y = f(x) is said to be derivable at x if lim or, lim
δx → 0 δx δx → 0 δx h→ 0 h
exists and equal to l. Now this limit l that exists is known as derivative (or differential co-efficient) of y [or f(x)]
with respect to x.
Symbols : Derivative of y [ = f(x)] w.r.t.x (with respect to x) is denoted by
dy d
or, f ′ (x), or, f ( x ) or, Dy or, D [f(x)] or, y1
dx dx
dy δy f ( x + δx ) − f ( x ) f(x + h) − f ( x )
Now = lim = lim = lim , provided this limit exists.
dx δ x → 0 δx δ x → 0 δx h →0 h
dy d d
Note : does not mean the product of with y. The notation stands as a symbol to denote the operation of
dx dy dx dx
differentiation only. Read as ‘dee y by dee x’.
dx
SUMMARY :
dy
The whole process for calculating f′ (x) or
may be summed up in the following stages :
dx
1. Let the independent variable x has an increment h and then find the new value of the function
f (x + h).
2. Find f(x + h) – f(x).
f(x + h) − f ( x )
3. Divide the above value by h i.e., find .
h
f ( x + h) − f(x)
4. Calculate lim = f ′ (x)
h→ 0 h
d x d x
3. e = e x . [e = constant = 2.718 (Approx)] 4. a = ax loge a.
dx dx
d 1 d 1
5.
dx
loge x = .
x
6.
dx
(loga x ) = x loga e. [a = Constant other than ‘e’]
dc
7. = 0 (c = constant)
dx
d du dv
8. (u ± v) = ± [u and v are functions of x]
dx dx dx
d dv du
9. (uv) = u +v [u and v are functions of x]
dx dx dx
This formula is knon as Product formula because the function to be differentiated is expressed as product of two
functions
du dv
d u v dx − u dx
10. = [u and v are functions of x]
dx v v2
This formula is known as Division formula because the function to be differentiated is expressed as quotient of
two functions.
dy dy du
11. = ⋅
dx du dx
d 4 d
Example 50 :
dx
( )
x = 4x 3 ;
dx
(x) = 1.x1−1 = 1x0 = 1.1 = 1.
d 1 d −1 −1
= (x ) = −1.x −1−1 = −1x −2 = 2
dx x dx x
d
( x ) = dxd ( x ) = 21 .x 1
1
−1/2
. 2
= ;
dx 2 x
d 1
. =
dx x dx
d −1
( )
1
2
−1 d
. x 2 = − .x −3/2 = 3/2 ;
2x dx dx 2
( )
x x = d . x 3/2 = 3 x 12 = 3 x ;
2
( )
d 3 d 3 d 2
Examples 51: (x + x 2 ) = (x ) + (x ) = 3x 2 + 2x.
dx dx dx
d 2 x d x d 2
Example 52 : (x .e ) = x 2 (e ) + ex x = x 2ex + ex .2x = x 2ex + 2xex .
dx dx dx
d d(x 4 )
Example 53: (2x 4 ) = 2 = 2.4x 3 = 8x 3 .
dx dx
x2 dy
Example 54 : If y = find
x +1 dx
Answer:
u du d 2
Let y =
v
where u = x2, =
dx dx
( )
x = 2x 2 −1 = 2x
dv d d d
And v = ( x + 1) , = ( x + 1) = x+ .1 = 1+ 0 = 1
dx dx dx dx
du dv
v − u.
dx = ( x + 1).2x − x .1 = 2x + 2x − x = x + 2x
2 2 2 2
dy d u dx
Now = =
dx dx v v2 ( x + 1)
2
( x + 1)
2
( x + 1)
2
dy
Example 55: Find of the following functions :
dx
(i) x4 + 4x, (ii) 3x5 – 5x3 + 110, (iii) – 2 + (4/5) x5 – (7/8) x8.
Answer:
(i) Let y = x4 + 4x.
dy d 4 d 4 d d
=
dx dx
(
x + 4x =
dx
)
(x ) +
dx
(4x ) = 4.x 4−1 + 4 dx . x = 4x 3 + 4.
(ii) Let y = 3x5 – 5x3 + 110
dy d d d d
=
dx dx
(
3x 5 − 5x 3 + 110 =
dx
3x 5 −
dx
)
5x 3 + ( )
dx
.110 ( )
d d
= 3 ( x 5 ) − .5 ( x 3 ) + 0 (as 110 is a constant number)
dx dx
= 3.5x5 – 1 – 5.3x3 – 1 = 15x4 + 15x2.
4 5 7 8
(iii) Let y = −2 + x − x
5 8
dy d 4 7 d d 4 d 7
=
dx dx
−2 + x 5 − x 8 =
5 8 dx
( −2) + dx 5 x 5 − dx 8 x 8
4 d 5 7 d 8
= 0+ (x ) − (x ), (as – 2 is a constant number)
5 dx 8 dx
4 7
= .5x 5−1 − .8x 8 −1 = 4x 4 − 7x 7 .
5 8
1 2 ds
Example 56: If s = ut + ft , find when t = 2.
2 dt
Answer:
ds d 1 d d 1 dt 1 d
=
dt dt
ut + ft2 =
2 dt
(ut) + dt 2 ft2 = u dt + 2 f dt (t2 )
1
(here u, f, are constants & t is a variable, since we are to differentiate w.r.t. t)
2
1 1
= u.1+ f.2t2 −1 = u + .2ft = u + ft
2 2
ds
For t = 2, = u + 2f.
dt
du d d(x) d
=
dx dx
( x + 1) = dx + dx (1) = 1+ 0 = 1
dv d d d
=
dx dx
(
2x 3 − 21 = 2
dx
)
.(x 3 ) −
dx
(21) = 2.3x 3−1 − 0 = 6x 2 .
dy d dν du
Now =
dx dx
(uv) = u
dx
+ν
dx
(
= ( x + 1). 6x 2 + 2x 3 − 21 .1 )
= 6x3 + 6x2 + 2x3 – 21 = 8x3 + 6x2 – 21.
dy
Example 58: y = x (x2 – 1) (x3 + 2), find .
dx
Answer:
Let y = uvw, where u = x, v = x2 – 1, w = x3 + 2
du dv dw
= 1, = 2x and = 3x 2
dx dx dx
dy d du dv dw
=
dx dx
(uvw ) = vw
dx
+ uw
dx
+ uv
dx
dy
Example 59: If y = 10x x10 , find .
dx
Answer:
Let y = uv where u = 10x and v = x10
du d
Now = (10 x ) = (10 x )loge 10 ;
dx dx
dv d
Again = . (x10 ) = 10. x10 −1 = 10x 9 .
dx dx
dy d dv du
∴ =
dx dx
(u.v.) = u dx + v dx = 10x 10x9 + x10. 10x loge 10 = 10x (10x9 + x10 loge 10)
x −1 dy
Example 60: If y = , find
x +1 dx
Answer:
u du d d(x) d
Let y = , where u = x – 1, =
dx dx
( x − 1) = −
dx dx
.(1) = 1− 0 = 1
v
dv d d(x) d
v = x + 1, =
dx dx
( x + 1) = +
dx dx
(1) = 1+ 0 = 1
du dv
v −u
∴ dy
= dx dx = ( x + 1).1− ( x − 1).1 = x + 1− x + 1 = 2
dx ( x + 1) ( x + 1) ( x + 1)
2 2 2 2
v
( x + 1) (2x 2
) , find dy .
−1
Example 61: If y = 2
x +1 dx
Answer:
u
Let y = , where u = (x + 1) (2x2 – 1) = 2x3 + 2x2 – x – 1.
v
du
and = 6x 2 + 4x − 1,
dx
dv
v = x2 + 1 ; = 2x
dx
du dv
dy
=
v
dx
−u 2
( 2
)( 2
) 4
( )
dx = x + 1 6x + 4x − 1 − ( x + 1) 2x − 1 . 2x = 2x + 3x + 2x − 1
3
dx v2 ( ) ( )
2 2
x2 + 1 x2 + 1
dy
Rule 1. If y = ax + b, to find . Let y = z, and z = ax + b.
dx
So y = f (z) and z = f (x)
∴ dy dy dz
= . = 1. (a. 1 + 0) = a
dx dz dx
dy
Rule. 2. If y = (ax + b)n, to find Let y = zn and z = ax + b
dx
dy dz
Now = n.z n−1 and =a
dz dx
dy dy dz
∴ = . = nz n−1 a = na (ax + b)n – 1
dx dz dx
dy
Example 63 : If y = (2x + 5)4 find
dx
Answer:
dy dz
Now = 4z 3 , = 2
dz dx
dy dy dz
= 4z 3 . 2 = 4.2 ( 2x + 5) = 8 ( 2x + 5)
3 3
Now = .
dx dz dx
dy dy dy du
Rule 3. If y = log u (u is a function of x), then to find ; = .
dx dx du dx
dy
Example 64 : y = log (4x), find
dx
Answer:
du
Let y = log u, where u = 4x, =4
dx
dy dy du d 1 1 1
= = (log u). 4 = ⋅ 4 = 4. = .
dx du dx du u 4x x
dy
( )
Example 65 : y = log 1+ x , find
dx
Answer:
du 1 1 dy dy du 1 1 1
= 0+ = ; = . = . =
dx 2 x 2 x dx du dx u 2 x 1+ x . 2 x ( )
dy
Example 66: If y = x 2 + 7, find .
dx
2 dz
Answer: Let y = z , where z = x + 7, = 2x.
dx
dy dy dz d 1 x x
= . = . z. 2x = . 2x = =
dx dz dx dz 2 z z x +72
2x + 1 dy
Example 67: Given y = , find .
x+2 dx
Answer:
d d
2x + 1 du ( x + 2) dx (2x + 1) − (2x + 1) dx ( x + 2)
Let y = u, where u = , =
x + 2 dx ( x + 2)
2
du ( x + 2 ).2 − ( 2x + 1).1 3
= =
dx ( x + 2) ( x + 2)
2 2
dy 1 1 x+2
= = .
du 2 u 2 2x + 1
dy dy du 1 x+2 3 3
= = . =
dx du dx 2 2x + 1 ( x + 2 )2
2 2x + 1. ( x + 2 )
3/2
dy
Example 68: If y = log log log x2, find
dx
Answer:
Let y = log u where u = log v and v = log x2 = 2 logx.
dy 1 1 1
= = = .
du u logv log log x 2
du 1 1 1
= = = .
dv v log x 2 2 log x
dv 2
=
dx x
dy dy du dv 1 1 2 1
= . . = . . =
dx du dv dx log log x 2 log x x x log x log log x 2
2
∴
dy dy dx 1 5
Now = . = 5x 4 . = x3.
dz dx dz 2x 2
(
Example 70: y = loge x + x 2 + a2 , find ) dy
dx
.
Answer:
Let y = log u where u = x + x 2 + a2
dy 1 du d d 2 du 1
( )
1/2
= and = (x) + x + a2 or, = 1+ .2x
du u dx dx dx dx 2 x 2 + a2
dy dy du 1 x 1 x + x 2 + a2 1
Now = = . 1+ = . = .
dx du dx u
x 2 + a2 x + x 2 + a2 x 2 + a2 x + a2
2
dy
Example 71: Find , if 3x4 – x2y + 2y3 = 0
dx
Answer:
2 dy dy
Differentiating each term of the functions w.r.t.x we get, 3.4x3 – x + 2xy + 6y 2 =0
dx dx
dy dy
or, 12x 3 − x 2 − 2xy + 6y 2 =0
dx dx
dy 2xy − 12x 3
or, (6y 2
− x2 ) dy
dx
= 2xy − 12x 3
or,
dx
=
6y 2 − x 2
.
dy 3 at 3at2
Example 73: Find , when x = , y =
dx 1+ t 3 1+ t 3
Answer:
dx
=
( )
1+ t3 .3a − 3at 3t2
=
3a 1− 2t3 ( ) ( )
dt ( ) ( )
2 2
1+ t3 1+ t3
3
( 2
)
dy 1+ t 6at − 3at 3t
=
2
=
3at 2 − t3 ( ) ( )
dt ( ) ( )
2 2
1+ t 3 1+ t 3
3 2
(
dy dy / dt 1+ t 6at − 3at 3t
= =
2
+
)
3a 1− 2t3
=
( )
3at 2 − t3
=
t 2 − t3 ( ) ( ) ( )
dx dx / dt 1+ t3
2
(
1+ t3
2
)
3a 1+ 2t3 1− 2t3 ( ) ( )
Introduction :
We have seen that the first order derivative of a function of x, say f(x), may also be a function of x. This new
function of x also may have a derivative w.r.t.x which is known as second order derivative of f(x) i.e. second order
derivative is the derivative of first order derivative.
Similarly the derivative of the second order derivative is known as third order derivative and so on up to nth order.
Symbols :
dy
For the function y = f(x), the first order derivative w.r.t.x is denoted by or f′ (x) or y1 as discussed before.
dx
d2 y d2 y
Now the second order derivative of y = f(x) is expressed as 2
or f ′′ (x) or y2. The notation is read as “dee
two y by dee x squared”. dx dx 2
d2 y
Example 74: If y = x4, find .
dx 2
Answer:
dy d2 y d dy d
y = x4 , = 4x 3 , again 2 = = (4x 3 ) = 4.3x 3 −1 = 12x 2 .
dx dx dx dx dx
d3 y d3 y d d2 y d d
Note : To find 3
dx dx
; 3
= =
dx dx 2 dx
(
12x 2 = 12. (x 2 )
dx
)
= 12.2x2 – 1 = 24x i.e., third order derivative is 24x.
d2 y log x
Example 75 : Find 2 if
y= .
dx x
Answer:
1
dy x. − log x.1 1− log x
= y1 = x = ;
dx x2 x2
1
2 x 2 − − (1− log x ). 2x
dy d dy d 1− log x x
= = =
dx 2 dx dx dx x 2 x4
y = x2 ex
dy
= x2.ex + ex.2x
dx
= (x2 + 2x)ex
d2 y
= (x2 + 2x) ex + ex (2x + 2)
dx 2
= (x2 + 2x + 2x + 2)ex
= (x2 + 4x +2)ex
x 2 y2 d2 y
Example 77 : For 2
+ 2 = 1, find
a b dx 2
Answer:
2x 2y.y1 2x 2y b2 x
Diff. Both sides w.r.t. x we get + = 0 or 2
+ 2
.y1 = 0 or y1 = − .
a2 b2 a b a2 y
b2 x
y + x a2 . y
d2 y b2 y.1− x.y1 b2
= − . = − 2 [putting the value of y1]
dx 2 a2 y2 a y2
2 2
(
b2 a y + b x
2 2
)
b2 a2b2
= − 2.
a a2 y 3
= − a2 . a2 y 3 [from the given equation we have a 2 y 2 + b 2 x 2 = a 2b 2 ]
b4
= −
y3
Example 78:
d2 y
If y = t2 + t3, x = t – t4, find .
dx 2
Answer:
dy dx
= 2t + 3t2 , = 1− 4t3
dt dt
dy dy dt dy dx 2t + 3t2
= . = =
dx dt dx dt dt 1− 4t3
d2 y d dy d dy dt d dy dx d 2t + 3t2
dx 2
= = . =
dx dx dt dx dx dt dx
=
dt dt 1− 4t3
(1− 4t )
3
=
(1− 4t ) (2 + 6t) − (2t + 3t ) ( −12t ) = 12t + 16t + 6t + 2
3 2 2 4 3
TR PQ
Or, AR= = =P
Q Q
Thus, average revenue is the price of the commodity.
� Marginal Revenue: Marginal Revenue is the net revenue earned by selling one additional unit of the product
produced. In other words, marginal revenue is the addition made to the total revenue by selling one additional
unit of the commodity. Putting it in algebraic expression, marginal revenue is the addition to total revenue by
selling (n + 1) units of a product instead of n units. Therefore,
Marginal Revenue = difference in total revenue in increasing sales from (n + 1) units to n Units
MR = TRn +1 − TRn
In other words Marginal Revenue is the rate of change of Total Revenue with respect to the Quantity sold.
If TR stands for Total Revenue and Q stands for output, the marginal revenue (MR) can be expressed as:
d (TR)
MR =
dQ
d (TR)
Here, indicates derivative of TR with respect to Q which is also the slope of the total revenue curve. Thus,
dQ
if total revenue is given to us, we can find out marginal revenue at various levels of output by finding the slopes at
the corresponding points on the total revenue curve.
Examples:
1. A schedule on Total Revenue and Amount of output sold is given. Find out Average Revenue and Marginal
Revenue
Quantity of Output sold Total Revenue Average Revenue Marginal Revenue
(units) (TR)
0 0
1 29
2 54
3 72
4 80
5 80
6 72
Solution:
0 0 0 -
1 29 29 29
2 54 27 25
3 72 24 18
4 80 20 8
5 80 16 0
6 72 12 -8
Solution:
Cost
The term ‘total cost’ is the sum of all costs incurred by a firm in producing a certain level of output. In the
traditional theory total cost is divided into two groups: total fixed cost and total variable cost.
TC = TFC + TVC
where, TC = Total Cost; TFC = Total Fixed Cost; TVC = Total Variable Cost
� Total Fixed cost: There are some cost which do not vary with the level of output produced. These remain fixed
even when output changes. These are fixed costs. For eg, rent of land, license fees etc. Suppose, that the land
on which a factory is situated has an annual rent of ` 12,000. It is obvious that the amount of rent will not have
any relationship with the quantity of output produced by the factory. Whether the output is 20 tons or 2,000
tons, the rent will remain fixed at ` 12,000. In fact, the rent would be the same, even if the factory is temporarily
closed down. For this reason, the rent on land is a fixed cost.
� Total Variable Cost: On the other hand, some costs change with the level of output produced. This type
of cost rises when output increase, and falls when output decrease. For eg, cost of raw materials, wages and
salaries of casual employees, transport cost etc. Suppose in order to produce a huge amount of output, we
require higher amount of raw materials. So, the cost of raw materials will increase and hence variable cost will
increase.
Average Cost: The average cost is obtained by dividing Total cost by the level of output. Thus,
Mathematically, the marginal cost is the first order derivative of the Total cost function. Denoting total cost by TC
and output by Q we have:
d (TC )
MC =
dQ
It is worth noting that marginal cost is independent of fixed cost. Since fixed cost do not change with the level of
output, there is no marginal fixed cost when output is increased.
Profit: The term ‘profit’ is defined as the difference between total revenue and total cost. Thus,
Profit = Total Revenue – Total Cost
In order to obtain the maximum amount of output we differentiate the profit function with respect to the output
produced and set the equation equal to zero (First order condition for maximization). Then, we find the second
order derivative of the function. If the second order derivative is less than zero then we can conclude that the profit
is maximized at that level of output. Thus,
d ( Profit )
= 0 [First Order Condition for maximisation]
dQ
d 2 ( Profit )
< 0 [Profit is maximized at Qmax ]
dQ 2
Solution:
Profit = TR-TC
= 20Q − Q 2 − 4Q − 20
= 16Q − Q 2 − 20
d (Profit )
= 16 − 2Q
dQ
∴ 16 − 2Q = 0 [Find Order Condition for maximization]
Or, Q = 8
d 2 ( Profit ) d d ( Profit ) d
2
=
dQ dQ = dQ (6 − 2Q) = – 2 < 0
dQ
So, the profit is maximized at Q = 8
The maximum profit = 16 × 8 – 82 – 20 = 44
4. In a firm, price of a product is ` 4 and TC = Q3 – 15Q2 + 31Q + 100 where Q = Output. Find the profit
maximizing output and maximum profit
Solution:
Total Revenue = Price × Quantity = 4Q
Profit = TR-TC
= 4Q − Q 3 + 15Q 2 − 31Q − 100
= −27Q − Q 3 + 15Q 2 − 100
d ( Profit )
= −27 − 3Q 2 + 30Q
dQ
∴ 3Q 2 − 30Q + 27 = 0 [First Order Condition for maximization]
2
Or, Q − 10Q + 9 = 0
Or, Q 2 − Q − 9Q + 9 = 0
Or, Q (Q − 1) − 9 (Q − 1) = 0
Or, (Q − 9) (Q − 1) = 0
Or, Q = 9,1
d 2 ( Profit ) d d (Profit) d
= [ −27 − 3Q 2 + 30Q] = – 6Q + 30
dQ 2 dQ dQ dQ
At Q = 1, Profit = 24 > 0
At Q = 9, Profit = – 24 < 0
So, the profit is maximized at Q = 9
The maximum profit at Q = 9 is (– 27) × 9 –93 + 15 × 92 – 100 = 143
5. A firm has the following functions of Total Revenue (TR) and Total Cost (TC) for Q output TR = 30 Q – Q2 and
TC = (Q3 –15Q2 +10Q +100). Find the profit maximizing output and maximum profit and equilibrium price.
Solution:
Profit = TR–TC
= 30Q − Q 2 − Q 3 + 15Q 2 − 10Q − 100
28 ± 784 + 240
Or, Q =
6
28 ± 32
Or, Q =
6
2
Or, Q = 10, −
3
d 2 ( Profit ) d d ( Profit ) d
= = [20 − 3Q 2 + 28Q] = – 6Q + 28
dQ 2 dQ dQ dQ
6. A firm has the following functions of Total Revenue (TR) and Total Cost (TC) for Q output TR = 26Q – 3Q2
and TC = 2Q2 – 4Q + 10. Find the profit maximizing output and maximum profit and equilibrium price and
Total Revenue at that level of output.
Solution:
Profit = TR – TC
= 26Q − 3Q 2 − 2Q 2 + 4Q − 10
= 30Q − 5Q 2 − 10
d ( Profit )
= 30 − 10Q
dQ
∴ 30 − 10Q = 0 [F.O.C for maximization]
Or, Q = 3
d 2 ( Profit ) d d ( Profit ) d
= = [30 − 10Q] = – 10 < 0
dQ 2 dQ dQ dQ
dy
For a differentiable function y = f (x) the derivative or f ′( x) is often called the first derivative or the first order
dx
derivative. Generally this first order derivative f ′( x) is a function of x and therefore f ′( x) is further differentiable
with respect to x which is called the second order derivative of the function y = f (x). This second order derivative
d2y
is denoted by f ′′( x) or . In the same manner if f ′′( x) be differentiable then we can obtain the third order
3
dx 2
d y
derivative f ′′′( x) or . Thus, proceeding in the similar way one can introduce the nth order derivative of y = f
dx 3
dny
(x) which will be denoted by .
dx n
The first and second order derivatives are much used in the graphical analysis. First derivative of a function at any
point measures the slope of a function at a particular point. If f ′( x) > 0 for all values of x in the domain of the
function then we can say that f ( x) rises continuously from left to right. But we know that the function which rises
continuously is called monotonically increasing function. Thus, the condition of a function to be monotonically
increasing is that the first derivative must be positive all through. Similarly, a function y = f (x) is said to be
monotonically decreasing is f ′( x) < 0 for all x. In short the condition of monotonicity for a function y = f (x) is
either f ′( x) > 0 or f ′( x) < 0 for all x.
Examples:
1. f (x) = 2x
f ′( x) = 2 > 0 This function is monotonically increasing
2. f (x) = – 6x
f ′( x) = − 6 < 0 . This function is monotonically decreasing
To know whether a function is increasing at a constant rate or at an increasing rate or at a decreasing rate, we
perform the second order derivative. The nature of the function (constant, increasing, decreasing) can be known
form the knowledge of the curvature of the curve. By curvature we mean the bending of a curve. To measure
this bending we have to measure the rate of change of the slope of the curve. If the rate of change of the slope of
the curve is positive i.e. f ′′( x) > 0 the curve is said to be convex curve. If f ′( x) > 0 and f ′′( x) > 0 the curve
increases at an increasing rate. On the other hand, if f ′( x) < 0 and f ′′( x) > 0 the curve decreases at an increasing
rate. Lastly, there may be some curve which increase or decreases at a constant rate. Linear curves are examples of
this case and for this f ′′( x) = 0 .
Now, we can also identify whether a curve is convex or concave by just looking at the curve and by drawing a
tangent at any point on the curve. If the curve lies above the tangent it will be convex at that point, otherwise if the
curve lies entirely below the tangent it will be concave at that point.
Y Y
0 X 0 X
Fig. 1 Fig. 2
Convex Concave
f ′( x) < 0 , f ′′( x) > 0 f ′( x) < 0 , f ′′( x) < 0
Y Y
0 X 0 X
Fig. 3 Fig. 4
f ′ ( x ) < 0 , f ′′ ( x ) = 0 f ′( x) > 0 , f ′′( x) = 0
Y Y
0 X 0 X
Fig. 5 Fig. 6
f ′ ( x ) > 0 , f ′′ ( x ) < 0 f ′( x) > 0 , f ′′( x) > 0
216 The Institute of Cost Accountants of India
Calculus - Application in Business
A
Y
y = f (x)
0 x1 x2 X
Fig. 7
In the figure 7 given here the function y = f ( x) is attaining the maximum value at the point A, where x = x1 and
minimum value at the point B, where x = x2 . It appears that the slope of the curve is positive before it attains
maximum at the point x = x1 and is negatively sloped immediately after attaining the maximum value and at the
maximum point A the slope of the curve is zero as the tangent at A is horizontal. Since the slope of a function
dy dy
y = f ( x) is represented by its first derivative dx , so the necessary condition for maximization is = f ′( x) = 0 .
dx
Similarly it appears that the curve is sloping downward before attaining minimum value at B and immediately after
attaining the minimum it slopes upward indicating that the slope of the curve is zero at the minimum point B since
the tangent at B is horizontal. Since, the slope of the curves at both the extreme point are 0, first order derivative is
set at 0 is a necessary condition for both maximization and minimization.
For sufficient condition for maximum and minimum value of the function y = f ( x) , we have to see the slope of the
curve immediately after attaining the maximum or minimum. From the figure, it is seen that after attaining maximum
point at A the curve is sloping downward while it is sloping upwards after attaining minimum. Thus, a distinction
between maximum and minimum can be made by examining the direction of change of the first derivative. Given
the function y = f ( x) whose first derivative f ′( x) = 0 at point x = x1 will be a relative maximum if the derivative
f ′( x) changes its sign from positive to negative as x increases in the neighbourhood of x = x1 . Similarly, y = f ( x)
will attain a relative minimum if the derivative f ′( x) changes its sign from negative to positive as x increases in the
neighbourhood of x = x2 . Since the direction of change of first derivative can be stated in terms of the sign of the
second derivative f ′′( x) , the sufficient condition for maximization is f ′′( x) < 0 and for minimization is f ′′( x) > 0.
Examples:
2
1. If y = 20 x − 2 x then find the value of x for which y is optimum.
Answer:
dy
= 20 − 4 x .
dx
dy
As = 0 according to the first order condition,
dx
20 – 4x = 0 or, 4x = 20 or, x = 5
d2y
= − 4 < 0 So, the function is maximum at x = 5
dx 2
dy
= 4 x − 16 .
dx
dy
As = 0 according to the first order condition,
dx
4x – 16 = 0 or, 4x = 16 or, x = 4
Exercise:
Theoretical Questions
Multiple Choice Questions (MCQ)
1. lim x→3 ( x 3 + 1)
(a) 52
(b) 53
(c) 55
(d) 54
2
2. lim x→0 (4 x + 7 x + 5)
(a) 4
(b) 7
(c) 5
(d) 16
x 2 − 16
3. lim x→ 4
x − 4
(a) 2
(b) 4
(c) 8
(d) 6
x dy
4. If y = xe then =?
dx
(a) xe x
x
(b) e ( x + 1)
x
(c) e ( x − 1)
(d) e x / x
x5 x 4 x3
5. f ( x) = + + − 7 x 2 + 18 ⋅ f ′ ( x) = ?
5 4 2
4 3 2
(a) x + x + 3x + 14 x
4 3 2
6 5 4
(b) x + x + x − 7 x 3 + 18x
6 5 4
2
(c) x 4 − x 3 − 3x + 14 x
2
2
(d) x 4 + x 3 + 3x − 14 x
2
ex
7. Find the differential coefficient of y =
ex + 1
ex
(a) x
(e + 1) 2
e2x
(b) x
(e + 1) 2
ex
(c) 2 x
(e + 1) 2
ex
(d) x
(e + 2) 2
x2 y2
9. + = 1 is an Implicit function. The derivative of this function is ——
16 4
x
(a)
4y
x
(b) −
4y
x
(c)
2y
x
(d) −
2y
6 x + 13
(c)
3x 2 + 13x + 10
19
(d) 6 x + 13
11. A soft-drink manufacturer has a revenue function R = 7Q 2 − 19Q + 30 and the cost function is given by 9Q.
Find the number of cans produced by the firm, under perfect competition.
(a) 2
(b) 4
(c) 6
(d) 8
12. A tin manufacturer has a revenue function given by: R = 11Q 2 − 110Q + 70 and the cost function is given
by: C = 22Q. Find the number of tins to be produced by the manufacturer.
(a) 2
(b) 6
(c) 10
(d) 14
13. A demand function is given by: P = a – bQ and the cost function is given by C = Q2. Find the value of Q
for which profit will be maximum under perfect competition.
a
(a) (a + 1)
a
(b) 2 (b + 1) 2
a
(c) 2 (b + 1)
b
(d) 2 (a + 1)
14. The demand function is given by: P = 1400 – 25Q and the cost function is given by C = 10Q2. Find the value
of Q at the equilibrium point.
(a) 10
(b) 20
(c) 30
(d) 40
15. A revenue function is given by R = 3Q 2 − 8Q + 15 and the cost function is given by: C = 28Q. Find the value
of Q for achieving highest profit.
(a) 3
(b) 9
(c) 6
(d) 12
16. A demand function is given by: P = 1500 – 3Q and the cost function is given by: C = 12Q2. Find the value
of Q at the equilibirum point.
(a) 50
(b) 100
(c) 150
(d) 125
17. A firm has a fixed production cost of ` 90 and a marginal variable production cost of ` 9. The price of the
product is `18. Find the cost function, revenue function, and the value of Q at the Break Even point.
(a) 2Q + 20; 9Q; 10
(b) 9Q + 90; 18Q; 10
(c) 4Q + 90; 36Q; 20
(d) Q + 10; 5Q; 50
18. A sugar industry has a fixed cost of `290 and a marginal cost of 50 paise. He sells sugar at the price of
`15/kg. Find the quantity of sugar sold for breaking even.
(a) 10
(b) 30
(c) 20
(d) 40
19. A cotton mill has a fixed cost of `1540 and a marginal cost of `33. He sells a shirt at a price of `110. Find
the minimum number of shirts sold so the mill incurs no loss.
(a) 23
(b) 20
(c) 26
(d) 29
2
20. Given: C ( x) = 900 + 30 x + 0.6 x , P = 90. Find the value of x at equilibrium point.
(a) 40
(b) 50
(c) 70
(d) 30
22. Given: R( x) = 3x 2 + 24 x + 2 , MC (x) = 42 and the fixed cost is 90. Find the value of x at equilibrium point.
(a) 2
(b) 3
(c) 7
(d) 11
23. Given: R( x) = 6 x 2 − 11x − 35 , C ( x) : 5x 2 − 3x + 16 . Find the value of x for which profit is maximum.
(a) 2
(b) 4
(c) 6
(d) 12
24. Given: R( x) = 20 x 2 − 15x − 10 , C ( x) : x 2 + 99 x + 27 . Find the value of x for which profit is maximum.
(a) 3
(b) 15
(c) 25
(d) 10
25. Given: R( x) = 3x 2 + 4 x + 2 , MC ( x) = 16 and the fixed cost is 24. Find the profit maximising value of x
under perfect competition.
(a) 1
(b) 3
(c) 4
(d) 2
26. A manufacturer has a monthly fixed cost of `1, 00,000 and a production cost of `50 per unit produced. The
product is sold at `75. Find the cost function and the number of products be sold by the manufacturerer to
have break even.
(a) 25x + 50,000; 2000
(b) 50x + 1,00,000; 4000
(c) 5x + 1,00,000; 3000
(d) 2.5x + 10,000; 5000
27. A cement industry has a yearly fixed cost of `96,000 and a monthly production cost of `13 per unit
produced. The product is sold at `39 per unit. Find the cost function
(a) 13x + 8000
(b) 13x + 96,000
(c) 39x + 96,000
(d) 39x + 8000
28. Find the monthly profit function if a firm’s yearly fixed cost is `60,000 and yearly production cost is `120
per piece. Each unit is sold at `15.
(a) π = 5x – 5000
(b) π (x) = 15x – 5000
(c) π (x) = 20x – 5000
(d) π (x) = 25x – 5000
29. Given: C (x) = 9x + 350 and P = 14. Find the condition of getting break-even point
(a) 5x – 350 = 0
(b) 7x – 350 = 0
(c) –14x – 350 = 0
(d) None of these
31. f ( x) = 6 x 2 + 11x − 35
(a) Maximum
(b) Minimum
(c) No Curvature
(d) None of the above
32. f ( x) = − 4 x 2 − 7 x − 35
(a) Maximum
(b) Minimum
(c) No Curvature
(d) None of the above
33. f ( x) = 20 x 2 − 15x − 10
(a) Maximum
(b) Minimum
(c) No Curvature
(d) None of the above
2
34. f ( x) = 3x − 4 x + 2
(a) Maximum
(b) Minimum
(c) No Curvature
(d) None of the above
35. f ( x) = − x + 6 x + 18
(a) Maximum
(b) Minimum
(c) No Curvature
(d) None of the above
2
36. f ( x) = 9 x − 6 x + 1
(a) Maximum
(b) Minimum
(c) No Curvature
(d) None of the above
2
37. f ( x) = − x + 4 x − 2
(a) Maximum
(b) Minimum
(c) No Curvature
(d) None of the above
2
38. f ( x) = 3x + 2
(a) Maximum
(b) Minimum
(c) No curvature
(d) None of the above
2
39. f ( x) = x − 3x
(a) Maximum
(b) Minimum
(c) No curvature
(d) None of the above
Find the values of x for which the functions of Q. No. 40 to 50 have maximum and minimum points
−b + b 2 − 3ac −b − b 2 − 3ac
(a) Maximum, x = ; Minimum, x =
3a 3a
−b + b 2 − 3ac −b − b 2 − 3ac
(b) Minimum, x = ; Maximum, x =
3a 3a
(c) No Curvature
(d) None of the above
3
41. f ( x) = x − 9 x 2 + 81x + 70
3
(a) Maximum, x = 9; Minimum, x = 9
(b) Minimum, x = 3; Maximum, x = 5
(c) No curvature
(d) None of the above
2 3 9 2
42. f ( x) = 3 x + 2 x − 11x − 21
9
(a) Maximum, x = 2 ; Minimum, x = −
2
11
(b) Maximum, x = − ; Minimum, x = 1
2
3
(c) Maximum, x = − ; Minimum, x = –3
2
(d) No curvature
4 3
43. f ( x) = x − 5x 2 + 4 x − 9
3
3
(a) Maximum, x = 4 ; Minimum, x = −
2
1
(b) Maximum, x = ; Minimum, x = 2
2
(c) Maximum, x = 2 ; Minimum, x = –1
(d) No curvature
3 2
44. f ( x) = x − 2 x − 4 x
2
(a) Maximum, x = − ; Minimum, x = 2
3
3
(b) Maximum, x = ; Minimum, x = 1
4
1
(c) Maximum, x = 3 ; Minimum, x = −
3
(d) No curvature
x3 2
45. f ( x) = 3 − 4.5x − 8x + 2
(a) Maximum, x = 1 ; Minimum, x = 8
(b) Maximum, x = 4 ; Minimum, x = 2
(c) Maximum, x = 3 ; Minimum, x = – 5
(d) No curvature
3
46. f ( x) = x − 3 x 2 + 2 x − 3
3 2
(a) Maximum, x = 3 ; Minimum, x = 5
(b) Maximum, x = 1 ; Minimum, x = 2
(c) Maximum, x = 6 ; Minimum, x = 1
(d) No curvature
2 3 3 2
47. f ( x) = 3 x − 2 x − 5x
x3
+ 4 x 2 − 15x
48. f ( x) = −
3
(a) Maximum, x = 1 ; Minimum, x = 3
(b) Maximum, x = 5 ; Minimum, x = 3
(c) Maximum, x = –3 ; Minimum, x = – 5
(d) No curvature
x3 x 2
49. f ( x) =
− − 2x
3 2
(a) Maximum, x = – 1 ; Minimum, x = 2
(b) Maximum, x = 1 ; Minimum, x = – 2
(c) Maximum, x = – 3 ; Minimum, x = 5
(d) No curvature
2
50. f ( x) = x + 2 x 2 + 3x + 7
3
(a) Maximum, x = – 3 ; Minimum, x = – 1
(b) Maximum, x = 1 ; Minimum, x = 2
2
(c) Maximum, x = 1 ; Minimum, x = 4
(d) No curvature
Answer:
Multiple Choice Questions (MCQ)
33 (b)
Find f ′′( x)
Now find f ′′( x) and put the roots in f ′′( x) in order to find out the
value of f ′′( x)
47 (a)
Find f ′( x) and put f ′( x) = 0 to find out the roots.
Now find f ′′( x) and put the roots in f ′′( x) in order to find out the
value of f ′′( x)
Then, if f ′′( x) > 0 → Minimum
if f ′′( x) < 0 → Maximum
48 (b)
Find f ′( x) and put f ′( x) = 0 to find out the roots.
Now find f ′′( x) and put the roots in f ′′( x) in order to find out the
value of f ′′( x)
Then, if f ′′( x) > 0 → Minimum
if f ′′( x) < 0 → Maximum
49 (a)
Find f ′( x) and put f ′( x) = 0 to find out the roots.
Now find f ′′( x) and put the roots in f ′′( x) in order to find out the
value of f ′′( x)
Then, if f ′′( x) > 0 → Minimum
if f ′′( x) < 0 → Maximum
50 (a)
Find f ′( x) and put f ′( x) = 0 to find out the roots.
Now find f ′′( x) and put the roots in f ′′( x) in order to find out the
value of f ′′( x)
Then, if f ′′( x) > 0 → Minimum
If f ′′( x) < 0 → Maximum
T
he word ‘Statistics’ has been derived from the Latin word ‘Status’ which means a political state. It has
also its root either to the Italian word ‘Statista’ or the German word ‘Statistik’ each one of which means a
political state. For several decades, the word ‘statistics’ was associated solely with the display of facts and
figures pertaining to the economic, demographic and political situations prevailing in a country,usually,
collected and brought out by the local governments.
Statistics is a tool in the hands of mankind to translate complex facts into simple and understandable statements
of facts.
This definition makes it clear that statistics (in plural form or numerical data) should possess the following
characteristics.
I. Statistics means aggregate of facts
II. Statistics is affected by a large number of causes
III. Statistics is always numerically expressed
IV. Statistics should be enumerated or estimated according to reasonable standards of acuracy
V. Statistics should be collected in a systematic manner
VI. Statistics should be collected for a pre-determined purpose
VII. Statistics should be placed in relation to each other.
Statistics (as used in the sense of data) are numerical statements of facts capable of analysis and interpretation and
the science of statistics is a study of the principles and methods used in the collection, presentation, analysis and
interpretation of numerical data in any sphere of enquiry.
decisions of a determinate authority on the basis of a comprehensive survey of economy as a whole. “The
various documents accompanying preceding and following each of the eight Five Year Plans of India are a
standing testimony to the fact that statistics is an indispensable tool in economic planning.
V. Statistics and Astronomy: Statistics were first collected by astronomers for the study of the movement of
stars and planets. As there are a few things which are common between physical sciences, and statistical
methods, astronomers apply statistical methods to go deep in their study. Astronomers generally take a large
number of measurements and in most cases there is some difference between several observations. In order
to have the best possible measurement they have to make use of the technique of the law of errors in the form
of method of least squares.
VI. Statistics and Meteorology: Statistics is related to meteorology. To compare the present with the past or
to forecast for the future either temperature or humidity of air or barometrical pressures etc., it becomes
necessary to average these figures and thus to study their trends and fluctuations. All this cannot be done
without the use of statistical methods. Thus, the science of statics helps meteorology in a large number of
ways.
VII. Statistics and Biology: The development of biological theories has been found to be closely associated with
statistical methods. Professor Karl Pearson in his Grammar of Sciences has written, “The whole doctrine of
heredity rests on statistical basis”.
VIII. Statistics and Mathematics: Mathematics and Statistics have been closely in touch with each other ever
since the 17th Century when the theory of probability was found to have influence on various statistical
methods. Bowley was right when he said, “Acknowledge of Statistics is like knowledge of foreign language
or of algebra: it may prove of use at any time under any circumstances”.
Thus we observe that:
“Science without statistics bear no fruit, statistics without sciences have no Root”.
IX. Statistics and Research: Statistical techniques are indispensable in research work. Most of advancement in
knowledge has taken place because of experiments conducted with the help of statistical methods.
X. Statistics and natural sciences: Statistics finds an extensive application in physical sciences, especially in
engineering physics, chemistry, geology, mathematics, astronomy, medicine, botany, meteorology, zoology,
etc.
XI. Statistics and Education: There is an extensive application of statistics in Education. Statistics is necessary
for formulation of policies to start new courses, infrastructure required for new courses consideration of
facilities available for new courses etc.
XII. Statistics and Business: Statistics is an indispensable tool in all aspects of business. When a man enters
business he enters the profession of forecasting because success in business is always the result of precision
in forecasting and failure in business is very often due to wrong expectations which arise in turn due to faulty
reasoning and inaccurate analysis of various causes affecting a particular phenomenon. Boddington observes,
“The successful businessman is the one, whose estimate most closely approaches the accuracy”.
LIMITATIONS OF STATISTICS
Statistics and its techniques are widely used in every branch of knowledge. W.I. King rightly says:
“Science of statistics is the most useful servant, but only of great value to those who understand its proper use”.
The scope of statistics is very wide and it has great utility; but these are restricted by its limitations. Following are
the important limitations of statistics:
1. Statistics does not deal with individual item: King says, “Statistics from the very nature of the subject cannot
and never will be able to take into account individual cases”. Statistics proves inadequate, where one wants to
study individual cases. Thus, it fails to reveal the true position.
2. Statistics deals with quantitative data: According to Prof. Horace Secrist, “Some phenomenon cannot be
quantitatively measured; honesty, resourcefulness, integrity, goodwill, all important in industry as well as in
life, are generally not susceptible to direct statistical measurement”.
3. Statistical laws are true only on averages. According to W.I. King, “Statistics largely deals with averages
and these may be made up of individual items radically different from each other”.
Statistics are the means and not a solution to a problem.
4. Statistics does not reveal the entire story: According to Marshall, “Statistics are the straws, out of which, I,
like every other economist, have to make bricks”. Croxton says: “It must not be assumed that statistical method
is the only method or use in research; neither should this method be considered the best way to attack for every
problem”.
5. Statistics is liable to be misused: According to Bowley, “Statistics only furnishes a tool though imperfect,
which is dangerous in the hands of those who do not know its use and deficiencies”.
W.I. King states, “Statistics are like clay of which you can make a God or Devil as you please”. He remarks,
“Science of Statistics is the useful servant, but only of great value to those who understand its proper use”.
6. Statically data should be uniform and homogeneous
Collection of Data:
Data that is the information collected through censuses and surveys or in a routine manner or other sources is called
a raw data. The word data means information (its literary meaning is given as facts). The adjective raw attached to
data indicates that the information thus collected and recorded cannot be put to any use immediately and directly.
It has to be converted into more suitable form or processed before it begins to make sense to be utilized gainfully.
A raw data is a statistical data in original form before any statistical techniques are used to redefine, process or
summarize it.
There are two types of statistical data:
(i) Primary data
(ii) Secondary data
1. Primary Data: It is the data collected by a particular person or organization for his own use from the primary
source
2. Secondary data: It is the data collected by some other person or organization for their own use but the
investigator also gets it for his use.
Classification according to attributes is a method in which the data are divided on the basis of qualities.(i.e., married
or single; honest or dishonest; beautiful or ugly; on the basis of religion, viz., Hindu, Muslim, Sikh, Christian etc.,
known as attributes), which cannot be quantified.
Qualitative Classification is of two types:
(i) Simple Classification or Two-Fold Classification
(ii) Manifold Classification
1. Simple Classification or Two-fold Classification: If the data are classified only into two categories according
to the presence or absence of only one attribute, the classification is known as simple or two-fold classification
or Dichotomous For example, the population of India may be divided into males and females; literate and
illiterate etc.
POPULATION
FEMALE MALE
Moreover, if the classification is done according to a single attribute it is also known as one way classification.
2. Manifold Classification: It is a classification where more than one attributes are involved.
Textual Presentation:
In this method presentation of data is done with the help of a paragraph or a number of paragraphs. The official
report of an enquiry commission is usually made by textual presentation. Following are the examples of textual
presentation.
Example1: In 1995, out of total 2,000 students in a college, 1,400 were for graduation and the rest for post-
graduation (P.G.). Out of 1,400 Graduation students 100 were girls. However, in all there were 600 girls in the
college. In 2000, number of graduation students increased to 1,700 out of which 250 were girls, but the number of
P.G. students fall to 500 of which only 50 were boys. In 2005, out of 800 girls 650 were for graduation, whereas
the total number of graduation students was 2,200. The number of boys and girls in P.G. classes were equal.
Merits and Demerits of Textual Presentation: The merit of this mode of presentation lies in its simplicity and
even a layman can present and understand the data by this method. The observations with exact magnitude can be
presented with the help of textual presentation. This type of presentation can be taken as the first step towards the
other methods of presentation.
Textual presentation, however, is not preferred by a statistician simply because it is dull, monotonous and
comparison between different observations is not possible in this method. For manifold classification, this method
cannot be recommended.
Tabular presentation or tabulation of data: Tabulation is a scientific process used in setting out the collected
data in an understandable form
Tabulation may be defined as logical and systematic arrangement of statistical data in rows and columns. It is
designed to simplify the presentation of data for the purposes of analysis and statistical inferences.
Secrist has defined tabulation in the following words:
“Tables are a means of recording in permanent form the analysis that is made through classification and by placing
in juxtaposition things that are similar and should be compared”.
The above definition clearly points out that tabulation is a process which gives classification of data in a systematic
form and is meant for the purpose of making comparative studies.
Professor Bowley refers to tabulation as:
“The intermediate process between the accumulation of data in whatsoever form they are obtained, and the final
reasoned account of the result shown by the statistics”
“Tabulation is the process of condensing classified data in the form of a table so that it may be more easily
understood and so that any comparison involved may be more readily made”.
Thus tabulation is one of the most important and ingenious devices of presenting the data in a condensed and
readily comprehensible form. It attempts to furnish the maximum information in the minimum possible space,
without sacrificing the quality and usefulness of the data.
Objectives of Tabulation:
The purpose of tabulation is to summarise lots of information in such a simple manner that it can be easily analysed
and interpreted.
The main objectives of the Tabulation are:
1. To simplify the complex data.
2. To clarify the objective of investigation
3. Economise space.
4. To facilitate comparison
5. To depict trend and pattern of data
6. To act as reference for future studies.
7. To facilitate statistical analysis.
8. To detect errors and omissions in the data
9. To clarify the characteristics of data.
2. Title of the table: Every table should have a title. It should be clear, brief and self-explanatory. The title should
be set in bold type so as to give prominence.
3. Date: The date of preparation of a table should always be written on the table. It enables to recollect the
chronological order of the table prepared.
4. Stubs or Row Designations: Each row of the table must have a heading. The designations of the rows are
called stubs or stub items. Stubs clarify the figures in the rows. As far as possible, the same items should be
considered so that they can be included in a single row.
5. Captions or Column headings: A table has many columns. Sub-headings of the columns are called captions
or headings. They should be well-defined and brief.
6. Body of the table: It is the most vital part of the table. It contains the numerical information. It should be made
as comprehensive as possible. The actual data should be arranged in such a manner that any figure may be
readily located. Different categories of numerical variables should be set out in an ascending order, from left
to right in rows and in the same fashion in the columns, from top downwards.
7. Unit of Measurements: The unit of measurements should always be stated along with the title, if this is
uniform throughout. If different units have been adopted, then they should be stated along the stubs or captions.
8. Source Notes. A note at the bottom of the table should always be given to indicate the primary source as well
as the secondary source from where the data has been taken, particularly, when there is more than one source.
9. Foot Notes and References: It is always placed at the bottom of the table. It is a statement which contains
explanation of some specific items, which cannot be understood by the reader from the title, or captions and
stubs.
Different Parts of Table
TITLE
BOX HERD
N
C A P T IO
(1) (2) (3) (4) (5) (6) (7)
STUB
DY
BO
SOURCE
FOOT NOTE
Difference between Textual and Tabular Presentation: The tabulation method is usually preferred to textual
presentation as:
(i) It facilitates comparison between rows and columns
(ii) Complicated data can be represented using tabulation
(iii) Without tabulation, statistical analysis of data is not possible.
(iv) It is a must for diagrammatic representation.
LINE CHART
We take a rectangular axes. Along the abscissa, we take the independent variable (x or time) and along the ordinate
the dependent variable (y or production related to time). After plotting the points, they are joined by a scale, which
represents a line chart. The idea will be clear from the following example.
Example : Represent the following data by line chart.
The monthly production of motor cars in India during 2011-12
Jan Feb Mar April May June July Aug Sept Oct Nov Dce
70 90 80 120 100 120 110 125 130 150 100 120
160
150
140
130
PRODUCTIONS
120
110
100
90
80
70
60
J F M A M J JL A S O N D
MONTHS
BAR DIAGRAM
The simplest type of graph is the bar diagram. It is especially useful in comparing qualitative data or quantitative
data of discrete type. A bar diagram is a graph on which the data are represented in the form of bars. It consists of a
number of bars or rectangles which are of uniform width with equal space between them on the x-axis. The height
(for vertical bars) or length (for horizontal bars) of the bar is proportional to the value it represents. It should be
seen that the bars are neither too short nor too long. The scale should be clearly indicated and baseline be clearly
shown.
Bars may be drawn either horizontally or vertically. A good rule to use in determining the direction is that if
the legend describing the bar is to be written under the bars then vertical bars should be used; when it is not a
requirement, horizontal ones must be used. In this way, the legends can be read without turning the graph. The
descriptive legend should not be written at the ends of the bars or within the bars, since such writing may distort
the comparison. Usually the diagram will be more attractive if the bars are wider than the space between them.
The width of bars is not governed by any set rules. It is an arbitrary factor. Regarding the space between two bars,
it is conventional to have a space about one half of the width of a bar.
The data capable of representation through bar diagrams, may be in the form of row scores, or total scores, or
frequencies, or computed statistics and summarised figures like percentages and averages etc.
The bar diagram is generally used for comparison of quantitative data. It is also used in presenting data involving
time factor. When two or more sets of data over a certain period of time are to be compared a group bar diagram
is prepared by placing the related data side by side in the shape of bars. The bars may be vertical or horizontal in
a bar diagram. If the bars are placed horizontally, it is called a Horizontal Bar Diagram. When the bars are placed
vertically, it is called a Vertical Bar Diagram.
Method of Construction: The surface area of a circle is known to cover 2 radians or 360 degrees.
The data to be represented through a circle diagram may therefore be presented through 360 degrees or parts
or sections of a circle. The total frequencies or value is equated to 360° and then the angles corresponding to
component parts are calculated (or the component parts are expressed as percentages of the total and then multiplied
by 360/100 or 3.6). After determining these angles the required sectors in the circle are drawn. Different shades or
colours of designs or different types of hatchings are used to distinguish the various sectors of the circle.
Illustration 1.
120 students of a college were asked to opt for different work experiences. The details of these options are as under.
Solution:
The numerical data may be converted into the angle of the circles as given below:
With the help of above computations the following Pie diagram is constructed.
Photography
Book
Binding
Clay
Modeling
Doll
Making
Kitchen
Gardening
Tally Bars: These are the straight bars used in the Tally.
Each item falling in the class interval, a stroke (vertical Bar) is marked against it. This stroke (Vertical Bar)is called
the Tally Bar. Usually, after every four strokes (Tally Bar), in a class, the fifth item is marked by a horizontal or
slanted line across the Tally Bars already drawn. For example the frequency 5, 6, 7 is represented by ||||, |||| |, |||| ||
respectively.
The above method of presentation of data is known as ‘Frequency Distribution’. Marks represent the numerical
value of the number of students who secured a particular marks and is called Frequency of that particular value of
the variate.
In the first column of the table, we write all marks from lowest to highest. We now look at the first mark or value
in the given raw data and put a bar (vertical line) in the second column against it. We then, see the second mark or
value in the given raw data and put a bar against it in the second column.
This process is repeated till all the observations in the given raw data are exhausted. The bars drawn in the second
column are known as tally marks and to facilitate we record tally marks in bunches of five, the fifth tally marks is
drawn across the first four.
For example ||||||| = 8. We finally count the number of tally marks corresponding to each observation and write in
the third column headed by frequency or number of students.
(iii) Frequency: The number of times an observation occurs in the given data is called the frequency of the
observation.
Frequency Distribution: A frequency distribution is the arrangement of the given data in the form of a table
showing frequency with which each variable occurs. In other words, Frequency distribution of a variable is the
ordered set {x, f}, where f is the frequency. It shows all scores in a set of data together with the frequency of each
score.
Illustration 2.
If the given data is 17, 7, 11, 5, 13, 9 then
Array in ascending order: 5, 7, 9, 11, 13, 17.
Array in descending order: 17,13,11,9,7, 5.
Range: It is the difference between the largest and the smallest number in the given data
The range of the data given in illustration above is 17 – 5 = 12.
Class, Class-Interval and Class limits. If the observations of a series are divided into groups and the groups are
bounded by limits, then each group is called a class. The end values of a class are called class limits. The smaller
value of the two limits is called the lower limit and the higher value of the same is called the upper limit of the class.
These two class limits are sometimes called the stated class limits.
Class Width: The difference between the lower limit (L) and the upper limit (U) of the class is known as class
Width (I).
Thus: I = U – L.
In other words, the range of a class is called its Class Width.
Illustration 3.
The given data is
Illustration 4.
Frequency Density: This in defined as the ratio of Frequency of a class to its Width.
Frequency Density = Class Frequency / Class Width
Illustration 5.
Draw the pie diagram from the following information
Vehicle Sales by type at a Car Dealers shop are given as:
Angle subtended at the centre of the circle by differnent Areas (in Degrees) are
Amaze = 360 × 27 = 54
180
Punch = 360 × 18 = 36
180
City = 360 × 9 = 18
180
City
Punch
Wagon-R
Amaze
S-Cross
Illustration 6.
Prepare a statistical table from the following information of Daily earnings (in `) by Doctors:
88 23 27 28 86 96 94 93 86 99
82 24 24 55 88 99 55 86 82 36
96 39 26 54 87 100 56 84 83 46
102 48 27 26 29 100 59 83 84 48
104 46 30 29 40 101 60 89 46 49
106 33 36 30 40 103 70 90 49 50
104 36 37 40 40 106 72 94 50 60
24 39 49 46 66 107 76 96 46 67
26 78 50 44 43 46 79 99 36 68
29 67 56 99 93 48 80 102 32 51
Answer:
Detailed calculations are as follows:
Class Internal of Earnings (`) Tally Marks No of Doctors Class Boundaries
20 – 29 |||| |||| ||| 13 19.5 – 29.5
30 – 39 |||| |||| | 11 29.5 – 39.5
40 – 49 |||| |||| |||| ||| 18 39.5 – 49.5
50 – 59 |||| |||| 10 49.5 – 59.5
60 – 69 |||| | 6 59.5 – 60.5
70 – 79 |||| 5 60.5 – 79.5
80 – 89 |||| |||| |||| 14 79.5 – 89.5
90 – 99 |||| |||| || 12 89.5 – 99.5
100 – 109 |||| |||| | 11 99.5 – 109.5
Total – 100 –
Illustration 7.
The national income of a country for the year 1999-2000 to 2001-2002 at current prices was 8650, 9010 and 9530
crores of rupees respectively and per capita income for these years was 250, 256 and 267 rupees. The corresponding
figures of national income and per capita income at 1999-2000 prices for the above years were 8650, 8820 and
8850 crores of rupees and 250, 252 and 248 respectively. Present the above data in a table.
Answer:
National Income and Per capita income of a country for the year 1999-2000 to 2001-2002
Year National Income Per Capita Income
At Current At 1999-2000 At Current At 1999-2000 Prices
Prices (` crores) Prices (` crores) Prices
1999-2000 8650 8650 200 250
2000-2001 9010 8820 256 251
2001-2002 9530 8850 267 248
Illustration 8.
Draw a Histogram of the frequency distribution given below:
Class Interval Frequency Class Interval Frequency
58 – 61 2 70 – 73 56
61 – 64 10 73 – 76 16
64 – 67 48 76 – 79 4
67 – 70 64
Answer:
In this case widths of the classes are of equal magnitude throughout. Width of each class interval is drawn on the X
axis i.e. base of each rectangle is proportional to the magnitude of the width of class interval. With width of each
class interval as base a rectangle is drawn with height proportional to the corresponding frequency of the class.
Histogram is as follows:
Histogram
70
60
50
Frequency
40
30
20
10
0
58 61 64 67 70 73 76 79
Value (Class Boundary)
Illustration 9.
Draw a Histogram of the frequency distribution given below:
Class Interval Frequency Class Interval Frequency
10-14 4 40 – 49 14
15 – 19 12 50 – 74 25
20 – 29 20 75 – 99 10
30 – 39 18
Answer:
In the given data it is to be noted that the widths of the class intervals are unequal and class boundaries are also not
provided. There is a gap of 1 between the limits of any two adjacent classes. Since rectangle in a histogram should
have area proportional to the class frequencies, the height of each rectangle should be made proportional to the
frequency density. Secondly we can eliminate the gap between the limits of two adjacent classes by bringing in the
class boundaries instead of class limits. Thus in this case the class boundaries are 9.5 – 14.5, 14.5 – 19.5 and so on.
Calculaltion of Frequency Density
Class Internal Showing Class Internal Showing Class Frequency
Frequency
Class Limits Class Boundaries Width* Density
(1) (2) (3) (4) (5) = (4) ÷(3)
10 - 14 9.5 - 14.5 5 4 0.8
15 - 19 14.5 - 19.5 5 12 2.4
20 - 29 19.5 - 29.5 10 20 2
30 - 39 29.5 - 39.5 10 18 1.8
40 - 49 39.5 - 49.5 10 14 1.4
50 - 74 49.5 - 74.5 25 25 1
75 - 99 74.5 - 99.5 25 10 0.4
* Class Width = Upper Class Boundary – Lower Class Boudary
Histogram
3
2.5
Frequency Density
1.5
0.5
0
9.5 14.5 19.5 29.5 39.5 49.5 74.5 99.5
Values (Class Boundary)
The histogram above was thus drawn by plotting the Values (Class boundary) on X axis and frequency density on
Y axis
Illustration 10.
Draw histogram, frequency polygon and ogives (both “less-than” and “more-than” types) for the following
frequency distribution:
Answer:
[Note: Here the class intervals are defined by class limits and so we have to find the class boundaries for drawing
the histogram. All the classes have the same width and therefore when drawing the histogram, heights of the
rectangles may be represented by the class frequencies. Also for drawing the ogives, we have to calculate both
‘less-than’ and ‘more-than’ cumulative frequencies.]
D
16
n
E ly go
Po
cy
u en
F req
12
m
C F to gra
His
Frequency
B
8
4
H
0 A I
39.5 49.5 59.5 69.5 79.5 89.5 99.5 109.5 119.5 129.5
. Wages (`)
Frequency Polygon is drawn by joining the mid points of the top sides of the frequency bars. Here the points B, C,
D, E, F, G and H are the mid points of the frequency bars. Two end points of the Polygon are drawn by considering
mid points of two class widths drawn on the two sides of the Histogram. Here A is the mid point of class width
considered on the left side of the Histogram and I is that of the width considered on the right side of the Histogram.
Thus for the given data the Frequency Polygon is ABCDEFGHI.
70
60 “M ”
O
R HAN
E- -T
TH S
A ES
N
” “L
50
Cumulative Frequency
40
30
20
10
M
ED
IA
N
0
49.5 59.5 69.5 79.5 89.5 99.5 109.5 119.5
Wages (`)
Exercise:
Theoretical Questions
Multiple Choice Questions (MCQ)
1. The word ‘Statistics’ has been derived from the Latin word ‘Status’ which means
(a) To translate complex facts into simple and understandable statements of facts
(c) To translate business information into simple and understandable statements of facts
(d) To translate complex facts into presentable forms through tables and diagrams
(a) The science of statistics that collect data in a systematic manner with some definite aim or object
towards further analysis in graphical way
(b) The numerical data collected in a systematic manner with some definite aim or object in view such as
the number of persons unemployed in a country.
(c) The numerical data collected in a systematic manner for analysing the state of affairs with the help of
mathematical applications
(d) The science of statistics that deals with the principles, devices or statistical methods of collecting,
analyzing and interpreting numerical data
(a) The science of statistics that collect data in a systematic manner with some definite aim or object
towards further analysis in graphical way
(b) The numerical data collected in a systematic manner with some definite aim or object in view such as
the number of persons unemployed in a country.
(c) The numerical data collected in a systematic manner for analysing the state of affairs with the help of
mathematical applications
(d) The science of statistics that deals with the principles, devices or statistical methods of collecting,
analyzing and interpreting numerical data
(a) 5 stages
(b) 6 stages
(c) 2 stages
(d) 4 stages
8. Measurement of skewness is
(a) Regression
(b) Kurtosis
(c) Sampling
(d) Central Tendency
11. There are four person named A, B, C, & D. A is a sales person whereas B, C, D are students. A collected
sales figures for his region and B, C, D used these data in order to study sales pattern. Which one of the
following is correct?
(a) The process of arranging things in groups or classes according to their common frequencies
(b) The process of arranging things in groups or classes according to their common characteristics and
affinities
(c) The process of arranging things in groups or classes according to their common differences and tally
marks
(d) The process of arranging things in groups or classes according to their common deviations from
respective mean
(b) When data is classified into two groups containing all the attributes
(d) When data is classified into two groups according to presence or absence of one attribute
1. The class boundaries are the limits up to which the two limits, (actual) of each class may be extended to
fill up the gap that exists between the classes;
2. In an exclusive series the class limits are extended to class boundaries by the adjusting adjustment factor;
3. In a Continuous Series lower limit of each class actually represents exact value;
4. Ratio of the class frequency to the total frequency expressed as a percentage is called percentage frequency
5. In Histogram class intervals are taken as heights and corresponding frequencies as breadth;
7. A discrete variable can assume only integral values and therefore is not capable of exact measurement;
8. Variables or observations those with names of places, attributes, and things etc., as possible values are
called descriptive variables;
9. A raw data is a statistical data in original form before any statistical technique is applied to redefine
process or summarize it;
10. Any character which can vary from one individual to another is called a variable or a variate
Answer:
1. 2. 3. 4. 5.
(d) (a) (a) (b) (d)
6. 7. 8. 9. 10.
(c) (d) (a) (c) (b)
11. 12. 13. 14. 15.
(a) (c) (b) (c) (c)
16. 17. 18. 19. 20.
(a) (d) (a) (b) (c)
1 2 3 4 5 6 7 8 9 10
T F T T F T F F T T
Objectives of Averaging:
There are two main objectives of the study of averages:
(i) To get one single value that describes the characteristic of the entire data. Measures of central value, can
be looked into as condensing the mass of data to one single value which, enable us to get an idea of the entire
data. Thus one value can represent thousands, lakhs and even millions of values. For example, it is impossible
to remember the individual incomes of millions of earning people of India and even if one could do it there
is hardly any use. But if the average income is obtained, we get one single value that represents the entire
population. Such a figure would throw light on the standard of living of an average Indian.
(ii) To facilitate comparison. By reducing the mass of data to one single figure, compare various sets of data.
Comparison can be made either at a point of time or over a period of time. For example, the figure of average
sales for December may be compared with the sales figures of previous months or with the sales figures of
another competitive firm.
(iii) It should be based on all the observations. The average should depend upon each and every observation so
that if any of the observation is dropped average itself is altered.
(iv) It should be rigidly defined. An average should be properly defined so that it has one and only one
interpretation. It should preferably be defined by an algebraic formula so that if different people compute the
average from the same figures they all get the same answer.
(v) It should be capable of further algebraic treatment. We should prefer to have an average that could
be used for further statistical computations. For example, if we are given separately the figures of average
income and number of employees of two or more factories we should be able to compute the combined
average.
(vi) It should have sampling stability. We should prefer to get a value which has what the statisticians call
‘sampling stability’. This means that if we pick 10 different groups of college students, and compute the
average of each group, we should expect to get approximately the same values. It does not mean, however,
that there can be no difference in the value of different samples. There may be some difference but those
averages in which this difference, technically called sampling fluctuation, is less are considered better than
those in which this difference is more.
(vii) It should not be unduly affected by the presence of extreme values. If one or two very small or very large
observations unduly affect the average, i.e., either increase its value or reduce its value, the average cannot
be really considered as typical representatitive of the entire set of data. In other words, extremes may distort
the average and reduce its usefulness.
The following are the important measures of central tendency which are generally used in business:
A. Arithmetic mean.
B. Geometric mean,
C. Harmonic mean
D. Median
E. Mode
Mathematical Positional
Measure Measure
AM GM HM Median Mode
ΣX 417
So mean = X = = = 41.7
N 10
Answer:
Calculations for A.M
Marks No of Students
Obtained (x) (f) fx
4 6 24
8 12 96
12 18 216
16 15 240
20 9 180
Total 60 756
So A.M = X = Σ fX =
756
= 12.6
Σf 60
Answer:
ΣfX
X=
Σf
Income (`) X = mid term of income class interval No of persons ( f ) f X
10-20 15 4 60
20-30 25 7 175
30-40 35 16 560
40-50 45 20 900
50-60 55 15 825
60-70 65 8 520
Total – 70 3040
ΣfX 3040
X= = = ` 43.43
Σf 70
Illustration 4. X of 20 terms was found to be 35. But afterwards it was detected that two terms 42 and 34 were
misread as 46 and 39 respectively. Find correct X .
Answer:
X of 20 terms = 35
Incorrect Total of 20 terms = 35 × 20 = 700
Correct Total = 700 + 42 + 34 – 46 – 39 = 691
Correct X = 691/20 = 34.55
Illustration 5. The mean of wages in factory A of 100 workers is `720 per week. The mean wages of 30 female
workers in the factory is `650 per week. Find out average wage of male workers in the factory.
Answer:
N f + N m = 100 = N
Total wage of all workers
X = 720 = Mean wage of total workers =
52599
So Mean wage of total male workers = X m = = ` 750 per week
70
Illustration 6. The following table gives the life time in hours of 400 tubes of a certain make. Find the mean life
time of the tubes.
Life time (hours) Number of tubes Life time (hours) Number of tubes
Less than 300 0 Less than 800 265
Less than 400 20 Less than 900 324
Less than 500 60 Less than 1000 374
Less than 600 116 Less than 1100 392
Less than 700 194 Less than 1200 400
Answer:
Σfdx′
As per Step Deviation method: X = A + Σ f × i. Here we have taken A = 749.5
Answer:
Calculations for Mean
Weight w (kg) Frequency (f) f w
50 1 50
55 4 220
60 2 120
X + 12.5 2 2X + 25
70 1 70
Total 10 2X + 485
(2 X + 485)
We have Mean = ∑ fw / ∑ f =
10
2 X + 485 58.5 × 10 − 485
By question we can write = 58.5 from where X is calculated as = 50 kg.
10 2
Illustration 8. A appeared in three test of full marks 20, 50 and 30 marks respectively. He obtained 75% marks in
the first and 60% marks in the second test. What should be his percentage of marks in the third test if his aggregate
is 60%?
Answer:
Here the mean is obtained by the formula
Average =
∑ ( Full Marks in test i × %age of marks in test i )
3
i =1
20 + 50 + 30
20 × 0.75 + 50 × 0.6 + 30 × x 15 + 30 + 30 x
Or, 0.6 = = [x = Percentage of marks in the 3rd test]
100 100
Or, 60 = 45 + 30x
Or, 15 = 30x
Or, x = 50%
Illustration 9. A certain number of salesmen were appointed in different territories and the following data were
compiled from their sales reports:
Answer:
Let the missing frequency be y.
In this problem mean is obtained by the formula
Σfd
X = A+
Σf
Here d = deviation of respective class mark derived from A = 22 and the detail computations are as follows:
−208000
Or, 19920 – 22000 = Σf
−208000
Or, – 2080 = Σf
Or, Σ f = 100. Or, 90 + y = 100 Or, y = 10.
So the missing frequency is 10
Illustration 10. The numbers 3.2, 5.8, 7.9 and 4.5 have frequencies x, x + 2, x – 3 and x + 6 respectively. If the
arithmetic mean is 4.876 find the value of x.
Answer:
Σfn
Mean is obtained by the formula: n =
Σf
So detail computations are
So we can write
21.4 x + 14.9
Mean = 4.876 = 4x + 5
So x = 5
Illustration 11. The sum of deviations of a certain number of observations (ungrouped data) measured from 4 is
72 and the sum of the deviations of the observations from 7 is –3. Find the number of observations and their mean.
Answer:
In this problem mean is obtained by the formula
Σd
X = A+
n
So by question we can write that
72 3
4+ =7−
n n
Or, 4n + 72 = 7n – 3
Or, 3n = 75
Or, n = 25
72
So mean = 4 + 25 = 6.88
Illustration 12. The marks of a student in written and oral tests in subjects A, B and C are as follows: The written
test marks are out of 70 and the oral test marks are out of 30. Find the weighted mean of the marks in written test
taking the percentage of marks in oral test as weights
Answer:
Calculations for Weighted Mean
Illustration 13: Calculate simple and weighted arithmetic averages from the following data:
Answer:
Detail computations are:
Calculations for Simple and Weighted A.M
Σ x 3150
So simple arithmetic average = = = ` 630
n 5
Σ wx 106000
So weighted arithmetic average = = = ` 302.86
Σw 350
Properties of Arithmetic Mean: The important properties of arithmetic mean are given below:
(i) The sum of the deviations of the terms from the Actual mean is always zero.
(ii) The sum of the squared deviations of the items from arithmetic mean is minimum i.e. less than the sum of the
squared deviations of the items from any other value.
(iii) If we have arithmetic mean and the number of items of two or more than two groups, we can calculate the
combined average of groups.
(iv) If the terms of a series are increased, decreased, multiplied or divided by some constant, the mean will also be
increased, decreased, multiplied or divided by the same constant.
(v) The standard error of the arithmetic mean is less than that of any other measure of central tendency.
Merits of A.M:
� Different interpretation by different persons not possible as AM is rigidly defined
� Easy to understand
� It takes all values in consideration
� It lends itself easily to further mathematical treatment
Demerits of A.M:
� It cannot be determined by inspection nor can it be located graphically
� It is affected very much by extreme values. Average of 1, 2 & 3 is 2 but average of 1, 2, 33 is extremely
effected by presence of 33 and the result is 12
� It cannot be calculated if the distribution has open ended classes
II. GEOMETRIC MEAN (g): The geometric mean is obtained by multiplying the values of the items together and
then taking it to its root corresponding to the number of items. It is denoted by ‘g’. i.e., g = n X 1 X 2 X 3 X n
∑ n f log x
i i
(b) Discrete Series: g = Antilog i =1 n
∑ fi
i =1
∑ f log m
(c) Grouped Series or Continuous Series: g = Antilog , where m = Mid value of the class Interval
∑f
Σ w log x
(d) Weighted Geometric mean:Anti Log
Antilog
Σw
n log g1 + n2 log g 2
(e) Combined Geometric Mean: Antilog 1
n1 + n2
� The Geometric mean is relative value and is dependent on all items
� The geometric mean is never larger than the arithmetic mean. It is rare that it may be equal to the arithmetic
mean.
� The Geometric mean of the products of corresponding items is two series is equal to product of their geometric
means.
Illustration 14: Calculate the GM of the following series of monthly income of a batch of families: 180, 250, 490,
120, 1400, 7000, 1050, 150, 360, 100, 80, 200, 500, 240.
Answer:
n log x
∑ i
G.M = g = Antilog i =1
n
( )
∑ n log xi 35.4507
Log i So, g = Antilog
Antilog = 340.6
n 14
Illustration 15: Calculate the average income per head from the data given below using GM:
Answer:
n
∑ fi log xi
For Discrete Series: G.M = g = Antilog i =1
∑ fi
Detail computations are as follows:
Calculations for G.M.
482.2549
g = Antilog = 391.54 (`’00)
186
Illustration 16: The weighted geometric mean of four numbers 8, 25, 19 and 28 is 22.15. If the weights of the first
three numbers are 3, 5, 7 respectively, find the weight of the fourth number.
Answer:
Σ w log X
So Σ w = Log ( 22.15) = 1.3454
18.65 + 1.45w
So = 1.3454 So w = 15 (approx)
15 + w
Merits of G.M:
� Different interpretation by different persons not possible as GM is rigidly defined
� It takes all value in consideration
� Unlike A.M, it is not affected much by the presence of extremely small or large values
� It lends itself easily to further mathematical treatment
Demerits of G.M:
� It is difficult to understand
� It is difficult to calculate particularly when the items are very large or when there is graphical data
� It becomes imaginary if any of the observations is negative and GM is zero if any of the observation is zero
Answer:
∑w 6+ 2+ 4+8 20 20 2
H .M = = = = =6
w 6 2 4 8 1 1 1 2 +1 3
∑ x 3 + 6 + 12 + 24 2 + 3 + 3 + 3
Illustration 18. The marks secured by some students of a class are given below. Calculate the harmonic mean.
Marks 20 21 22 23 24 25
No of students 4 2 7 1 3 1
Answer:
∑f =
18
H.M = f 0.82188 = 21.90
∑x
Merits of H.M:
� Different interpretation by different persons not possible as HM is rigidly defined
� It takes all value in consideration
� It is most suitable average when it is desired to give greater weight to smaller observations and less weight to
the larger ones
� It lends itself easily to further mathematical treatment
Demerits of H.M:
� It is difficult to understand
� It is difficult to compute
� It is only a summary figure and may not be the actual item in the series
X +Y 2 XY
(b) Let X, Y be two numbers then: A.M = , G.M = X ⋅ Y , H .M =
2 X +Y
IV. MEDIAN AND OTHER POSITIONAL MEASURES: Median is denoted by Md. It is a positional
measurement.Median divides a series into two equal parts. i.e., the middle most item is called median. It is also
indicated as Md .
(a) Individual Series: First of all the terms are to be arranged in ascending (or) descending order.
(1) When number of terms is odd then
n +1
Median (M d ) = th item
2
Where Md is Median, n is No. of terms in the given series.
(2) When number of terms is even, then
n n
() ( )
Median (M d ) = Average of 2 & 2 + 1 th terms.
N + 1
(b) Discrete Series with frequency: Median (Md) is the th term. Here N = Σf = Total frequency
2
(c) Grouped data (Less than type i.e. When cumulative frequency is calculated from above)
N
−C
M d = l1 + 2 ×h
f
N=Σ f
C′′ = cumulative frequency just succeeding the median class.
Answer:
Arranging the data in ascending order we get: 13, 16, 17, 18, 19, 20, 21, 22, 24
No of observations in the data n = 9
Answer:
Arranging the data in ascending order we get: 13, 16, 17, 18, 19, 20, 21, 22, 24, 26
No of observation in the data n = 10
n n 19 + 20
So Median Md = Average of & + 1 th items i.e 5th & 6th items = = 19.5
2 2 2
X 10 20 30 40 50 60 70
f 4 7 21 34 25 12 3
Answer:
Calculations for Median
X f C.f.
10 4 4
20 7 11
30 21 32
Median 40 34 66 53.5
50 25 91
60 12 103
70 3 106 = n
n +1 106 + 1
Median = M d = th term = = 53.5th term = 40
2 2
[From the above table all the values between 33rd and 66th items are 40. Thus 53.5th term should be 40]
Answer:
Here N/2 = 178/2 = 89 i.e 89th value is the Median. Hence it is a value in the class 28 – 40.
OR,
N
− C ′′
M d = l2 − 2 ×h
f
So
N 178
− C ′′ − 61
M d = l2 − 2 × h = 40 − 2 × 12 = 34
f 56
Marks 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100
No of Students 5 4 8 12 16 25 10 8 5 2
To draw the two ogives we first find less than type c.f and more than type c.f against respective class boundary and
the detail computations are
Class Frequency Class Boundary Cf (More thantype) C f (Less than type)
0-10 5 10 95 5
10-20 4 20 90 9
20-30 8 30 86 17
30-40 12 40 78 29
40-50 16 50 66 45
50-60 25 60 50 70
60-70 10 70 25 80
70-80 8 80 15 88
80-90 5 90 7 93
90-100 2 100 2 95
And the ogives will be as follows: (Class boundaries on x axis and c.f. or y axis)
Cumulative Frequency (Cf)
Median
Value (Class boundary)
Median is obtained by drawing an ordinate at the point of intersection of the two Ogives, as shown. The ‘Value’
corresponding to this ordinate is the Median.
n +1
Median divides the distribution into two equal parts. So we take for finding out median of ungrouped data
2
Similarly for ungrouped data we can find out –
N
−C
M d = l1 + 2 ×h
f
N
−C
1st quartile = Q = l + 4 ×h
1 1
f
N
2× −C
2nd quartile = Q = l + 4 ×h
2 1
f
N
3× −C
3rd quartile = Q = l + 4 ×h
3 1
f
Similarly Deciles and Percentiles can be calculated.
N=Σ f
Merits of Median:
� It is not at all affected by the items on the extremes
� It can be computed for the distributions which have open ended classes
� The value of the median can be located graphically
� The median is centrally located. The absolute sum of the deviations of the individual values from the median
is always the minimum
Demerits of Median:
� In case of an even number of observations ,median cannot be determined exactly
� It does not lend itself to algebraic treatment in a satisfactory manner
� It is unsuitable if it is desired to give greater importance to large or small values
Illustration 23. From the following grouped data find Median, 2nd Quartile, 5th Decile and 50 th percentile
Weekly 30-32 32-34 34-36 36-38 38-40 40-42 42-44 44-46 46-48 48-50
Wages (`)
Frequency 3 8 24 31 50 61 38 21 12 2
Answer:
Detail less than type cummulation is as follows:
Wages Frequency c.f (less than type)
30-32 3 3
32-34 8 11
34-36 24 35
36-38 31 66
38-40 50 116
40-42 61 177 Median Class
42-44 38 215
44-46 21 236
46-48 12 248
48-50 2 250 = N
N 250
Since = = 125., the median is 125th value. Now class 38-40 contains only upto 116th value. Any value
2 2
having rank greater than 116 but less than or inclusive 177 falls in the class 40-42. So median class is marked
against 40-42
N
−C 125 − 116
Median = M d = l1 + 2 × h = 40 + × 2 = 40.295
f 61
N 250
2× −C 2× − 116
2nd quartile = Q = l + 4 × h = 40 + 4 × 2 = 40.295
2 1
f 61
N 250
5× −C 5× − 116
5th decile = D5 = l1 + 10 × h = 40 + 10 × 2 = 40.295
f 61
N 250
50 × −C 50 × − 116
50th percentile = P50 = l1 + 100 × h = 40 + 100 × 2 = 40.295
f 61
[From the above computations we can conclude, Median = 2nd Quartile = 5th Decile = 50th Percentile]
Illustration 24. Refer to illustration 22. Compute 6th Decile and 88th Percentile
Answer:
N 250
6× −C 6× − 116
6th decile = D6 = l1 + 10 × h = 40 + 10 × 2 = 41.115
f 61
250 250
[6× = 6× = 150th value is the 6th Decile. Thus the class 40 – 42 is the 6th Decile class]
10 10
N 250
88 × −C 88 × − 215
88th percentile = P88 = l1 + 100 × h = 44 + 100 × 2 = 44.476
f 21
N 250
[ 88 × = 88 × = 220th value is the 88th Percentile which belongs to the class 44 – 46]
100 100
V. MODE: It is denoted by ‘M0’. Mode may be defined as the value that occurs most frequently in a statistical
distribution.
(i) Individual Series and Discrete Series: The terms are arranged in any order, Ascending or Descending. If
each term of the series is occurring once, then there is no mode, otherwise the value or values which occurs
maximum times is/are known as Mode/Modes.
Answer:
In the above data
12 appeared twice;
16 appeared 5 times;
20 appeared twice;
Other terms only once
So mode is 16 as it appeared maximum times
Answer:
Table showing Frequency Distribution
So
f 0 − f1 44 − 21
Mode = M O = l1 + 2 f − f − f × h = 30 + 2 × 44 − 21 − 33 × 10 = 36.765
0 1 2
Illustration 27. Compute the arithmetic average if the changes in the prices of securities in a certain stock exchange
are as follows:
Answer:
Classes are open ended type. So for open ended class AM can be found out by the relation
Mean – Mode = 3 (Mean – Median)
N 1075
Here = = 537.5. So Median is the 537.5th value which belongs to the class 0 to 2.
2 2
Median is calculated from the formula
N
−C
M d = l1 + 2 ×h
f
537.5 − 405
Md = 0 + × 2 = 0.7659
346
f 0 − f1
Mo = l1 + f − f + f − f × h
( 0 2 ) ( 0 1)
346 − 149
Mo = 0 + × 2 = 0.9292
(346 − 119) + (346 − 149)
So Mean – 0.9292 = 3 × (Mean – 0.7659) Or, 2 Mean = 1.3685. So Mean = 0.684 Details computation for less than
cumulative frequencies are as follows:
Calculations for Median and Mode
Uses of various Averages: The use or application of a particular average depends upon the purpose of the
investigation. Some of the cases of different averages are as follows:
(a) Arithmetic Mean: Arithmetic mean is considered to be an ideal average. It is frequently used in all the
aspects of life. It possesses many mathematical properties and due to this it is of immense utility in further
statistical analysis. In economic analysis arithmetic mean is used extensively to calculate average production,
average wage, average cost, per capita income, exports, imports, consumption, prices etc. When different
items of a series have different relative importance, then weighted arithmetic mean is used.
(b) Geometric Mean: Use of Geometric mean is important in a series having items of wide dispersion. It is
used in the construction of Index Number. The averages of proportions, percentages and compound rates are
computed by geometric mean. The growth of population is measured in it as population increases in geometric
progression.
(c) Harmonic Mean: Harmonic mean is applied in the problems where small items must get more relative
importance than the large ones. It is useful in cases where time, speed, values given in quantities, rate and
prices are involved. But in practice, it has little applicability.
(d) Median and Partition values: Median and partition values are positional measures of central tendency. These
are mainly used in the qualitative cases like honesty, intelligence, ability etc. In the distributions which are
positively skewed, median is a more suitable average. These are also suitable for the problems of distribution
of income, wealth, investment etc.
(e) Mode: Mode is also positional average. Its applicability to daily problems is increasing. Mode is used to
calculate the ‘modal size of a collar’, modal size of shoes,’ or ‘modal size of ready-made garments’ etc. It is
also used in the sciences of Biology, Meteorology, Business and Industry.
9
A
8
7
B
6
No of Items
5
4
3
2
1
0
0 2 4 6 8 10
Value of the Items
The measure of this variability of individual items with respect to central tendency is called DISPERSION.
Why knowledge on Dispersion is Important?
� It gives additional information on the data and enables us to judge the reliability of our measure of central
tendency. If individual items are widely spread with respect to the measure of central tendency measured
(mean/median/mode) then the central tendency is considered as less representative of the distribution as a
whole.
� There are problems peculiar to wide spread data items. So dispersion facilitates us to locate those data before
tackling those peculiar problems.
� On many occasions we require comparison of various samples of distribution in order to eliminate widely
fluctuated data with an ultimate objective to mitigate risks. More fluctuation means more risks. We need help
of dispersion on those occasions.
Illustration 28. A firm using two different methods to ship orders to its customers found the following distributions
of delivery time for the two methods, based on past records. From available evidence, which shipment method you
recommend?
B
Frequency
Delivery Time
Answer:
A is more preferable as B has wider fluctuation
Illustration 29. For which one of the following distributions is the mean more representative of the data as a
whole? Why?
X
Frequency
So DISPERSION is the degree of the scatter or variation of the variables about a central value.
MEASURES of DISPERSION
Algebraic Graphic
(Absolute and Relative) (Lorenz Curve)
Standard
Range & Quartile Deviation Mean Deviation
Deviation &
Coefficient of & Coefficient of & Coefficient of
Coefficient of
Range Quartile Deviation Mean Deviation
Variation
Dispersion can be measured by (1) Distance Measures (2) Average Deviation Measures
Distance measure:
Range:
Range is the difference between the highest and lowest observed values.
Illustration 30. Marks obtained by 12 students in the recently concluded examination is as follows:
Student Marks
1 52
2 13
3 35
4 46
5 89
6 10
7 29
8 95
9 66
10 72
11 48
12 71
From the above table it can be noted that Highest observed value is 95 whereas Lowest observed value is 10.
So Range of marks = 95 – 10 = 85
Quasi range: it refers to the difference between the values leaving the extreme values. If we leave the two extreme
values it will be
Quasi Range = 2nd highest observation – 2nd lowest observation = 89 – 13 =76 (in above case)
� It considers only highest and lowest values and ignores all others. So it is highly influenced by extreme values;
� Since it measures only two values, the range is likely to change drastically from one sample to the next in a
given population;
� Open ended distribution has no range (Open ended example: Data < X or Data > Y, where X and Y are any
values ) ;
Coefficient of Range:
highest value − lowest value 95 − 10
Coefficient of range = = = 0.810
highest value + lowest value 95 + 10
Interquartile Range = Q3 – Q1, where Q3 is the third Quartile & Q1 is the first quartile
1/4 of 1/4 of
data data
2nd Quartile Q2
The above figure shows the concept of the interquartile range graphically.
Q3 − Q1
One half of the interquartile range is a measure called the Quartile deviation= 2 . It is also called Semi Inter
Quartile Range.
The quartile deviation, then measures the average range of one-fourth of the data.
For our sample example let us calculate interquartile range and quartile deviation:
We begin by dividing the items into 4 equal parts as we have done in the following table:
Q3 − Q1 42
Interquartile deviation =
Quartile deviation = = 21
2 2
Like the range the interquartile range and the quartile deviation are based on only two values from the data set.
Although they are more complicated to calculate than the range, they avoid extreme values by using only the
middle half of the data. So effects of extreme data are avoided here.
Demerits:
• It ignores completely 50% of the data
• It does not lend itself to further mathematical treatment
• It is in fact not a measure of dispersion as it really does not show scatter around the average
Illustration 31. For the following data, compute the a) Interquartile range; b) Quartile deviation;
97 72 87 57 39 81 70 84 93 79
84 81 65 97 75 72 84 46 94 77
Answer:
First arrange the data in ascending order and divide the data in four equal parts as given in the following table:
Q3 − Q1 14
(b) Quartile deviation =
Interquartile = =7
2 2
Average Deviation Measures:
Under these two important measures are Variance and Standard Deviation
For a clear understanding on these two measures let us first discuss Average Absolute Deviation.
Where:
x = the item or observation;
μ = the population mean;
N = number of items in the population;
x = sample mean;
n = no of items in the sample;
These are the average absolute deviation from Mean. Actually we can measure the average absolute deviation from
Mean, Median or Mode. i.e.
Illustration 32. Compute the average absolute deviation from the following data table which represents payments
received by 12 officers in a company on account of local conveyance during a period.
Payment in ` 863 903 957 1041 1138 1204 1354 1624 1698 1745 1802 1883
Answer:
x= Σx
n
863 + 903 + 957 + 1041 + 1138 + 1204 + 1354 + 1624 + 1698 + 1745 + 1802 + 1883
= 12
16212
= = 1351
12
Calculations for Mean Absolute Deviation
Observation Deviation from Mean Absolute deviation from Mean
(x - mean) = (x – x ) = x – 1351 |(x-Mean)| = | x- x |
863 -488 488
903 -448 448
957 -394 394
1041 -310 310
1138 -213 213
1204 -147 147
1354 3 3
1624 273 273
1698 347 347
1745 394 394
1802 451 451
1883 532 532
∑ |(x – x ) = 4000
Merits:
• Mean deviation is easy to understand.
• It is based on all the items of the series.
• It is less affected by extreme observations when compared with Standard deviation.
Demerits:
• It is the arithmetic mean of the absolute values of the deviation. It ignores the positive and negative signs of
deviations. This weakness creates the demand for a more reliable measure of dispersion.
• It is not amenable for further algebraic treatment.
Σ ( x − µ) Σx
2 2
σ2 = = − µ2
N N
Where:
σ2 = population variance;
x = the item or observation;
μ = population mean;
N = total number of items in the population;
σ2 has the unit which is square of the units of the data. These types of units are not clearly interpreted. To avoid this
problem instead of variance we have another measure called Standard Deviation.
= σ2 = Σ ( x − µ) = Σx − µ2
N N
Where the symbols have same meaning as described in case of Population Variance.
Illustration 33. The following table shows the results of purity test on some compound. Find Variance and S.d.
Answer:
Detailed computations are as follows:
Calculations for Variance and S.d
Sr Observation Deviation from mean ( x – µ)2 x2
No (x) ( x – µ) = x – 0.166
1 0.04 -0.126 0.016 0.0016
2 0.06 -0.106 0.011 0.0036
3 0.12 -0.046 0.002 0.0144
4 0.14 -0.026 0.001 0.0196
5 0.14 -0.026 0.001 0.0196
6 0.15 -0.016 0.000 0.0225
7 0.17 0.004 0.000 0.0289
8 0.17 0.004 0.000 0.0289
9 0.18 0.014 0.000 0.0324
10 0.19 0.024 0.001 0.0361
11 0.21 0.044 0.002 0.0441
12 0.21 0.044 0.002 0.0441
13 0.22 0.054 0.003 0.0484
14 0.24 0.074 0.005 0.0576
15 0.25 0.084 0.007 0.0625
Total 2.49 – 0.051 0.4643
∑ x 2.49
Mean (µ ) = = = 0.166
N 15
∑ ( x − µ ) 2 0.051
Variance (σ 2 ) = = = 0.0034 percent squared
N 15
OR
∑ x2 0.4643
Variance (σ 2 ) = − µ2 = − (0.166) 2 = 0.0034 percent squared
N 15
Standard deviation enables us to determine, where the values of a frequency distribution are located in relation to
the mean. We can measure the percentage of items that fall within specific ranges under a systematic bell shaped
curve like the one below from where we can say that:
1. About 68 % of the values in the population will fall within plus and minus 1 standard deviation from the mean.
2. About 95 % of the values in the population will fall within plus and minus 2 standard deviation from the mean.
3. About 99 % of the values in the population will fall within plus and minus 3 standard deviation from the mean.
The standard deviation is also useful in describing how far individual items in a distribution disperse from the
mean of the distribution. A measure called Standard Score gives us the number of standard deviations a particular
observation lies below or above the mean.
x−µ
Standard score computed from population data as = σ
Suppose we observe a compound that is 0.108 percent impure. Since in the above Illustration 6 population has
a mean of 0.166 and a standard deviation of 0.058, an observation of 0.108 would have a standard score of -1 as
follows:
x − µ 0.108 − 0.166
Standard score = = = −1
σ 0.058
For Grouped data variance and standard deviation are formulated as follows:
∑ f ( x − µ)
2
∑ fx 2
σ2 = = − µ2
∑f ∑f
∑ f ( x − µ)
2
∑ fx 2
σ = σ2 = = − µ2
∑f ∑f
Where:
σ2 = population variance;
σ = population standard deviation;
x = Class mark of each class;
μ = population mean;
f = frequency of each class
Illustration 34. From the following frequency distribution. Calculate variance and S.d
With such type of grouped data we can use the following formulae to calculate the variance and standard deviation:
Σf ( x − µ )
2
Σfx 2
σ2 = = − µ2
Σf Σf
Σf ( x − µ )
2
Σfx 2
σ = σ2 = = − µ2
Σf Σf
Where symbols have their usual meaning mentioned before
Answer:
Calculations for Mean, Variance and S.d
Class interval of Class Frequency ( f ) f x x – m = x – 1249.5 (x – m)2 f (x – m)2
Annual Salary Mark (x)
700-799 749.5 4 2998 -500 250000 1000000
800-899 849.5 7 5946.5 -400 160000 1120000
900-999 949.5 8 7596 -300 90000 720000
1000-1099 1049.5 10 10495 -200 40000 400000
1100-1199 1149.5 12 13794 -100 10000 120000
1200-1299 1249.5 17 21241.5 0 0 0
1300-1399 1349.5 13 17543.5 100 10000 130000
1400-1499 1449.5 10 14495 200 40000 400000
1500-1599 1549.5 9 13945.5 300 90000 810000
1600-1699 1649.5 7 11546.5 400 160000 1120000
1700-1799 1749.5 2 3499 500 250000 500000
1800-1899 1849.5 1 1849.5 600 360000 360000
Total – 100 124950 – – 6680000
Σ ( fx ) 124950
µ= = = 1249.5
Σf 100
Σf ( x − µ )
2
6680000
σ2 = = = 66800 Sq. ` (’000)
Σf 100
Standard deviation cannot be computed from open ended distributions. It considers every observation but extreme
values in the data set distort the value of the standard deviation, although to a lesser extent than do the range.
Illustration 35. Calculate the population variance for the following set of grouped data:
Answer:
Σf ( x − µ )
2
Σfx 2
We know that population variance is computed as σ 2 = = − µ2
N N
∑ fx 29370
Mean = µ = = = 489.5
∑f 60
∑ f ( x − µ ) 2 3394000
Variance = σ 2 = = = 56566.67
∑f 60
Generally we calculate variance and standard deviation for ungrouped & grouped data through various formulae
as given below.
1. Ungrouped data: (a) Direct Method; (b) Shortcut Method; (c) Step deviation method
Direct method:
Σ(x − x)
2
(a) σ =
n
Σx −Σ
2 2
x
(b) σ = n n
Shortcut Method
Σdx −Σ ×h
'2 2
dx′
(b) σ =
n n
where dx′ = x − A , A is the assumed mean, h is the common factor
h
2. Grouped data: (a) Direct Method; (b) Shortcut Method; (c) Step deviation method
Direct method:
∑ f (x − x)
2
(a) σ =
∑f
Σ fx −Σ
2 2
fx
(b) σ =
∑f ∑f
Shortcut Method
Σ fdx −Σ
2 2
fdx
(a) σ = , where dx = x – A, A is the assumed mean
∑f ∑ f
(b) σ = − ×h
∑f ∑ f
x− A
Where dx′ = , A is the assumed mean, h is the common factor (Generally it is the Common Width of the
h
class intervals).
n1 (σ12 + d12 ) + n2 (σ 2 2 + d 2 2 )
σ12 =
n1 + n2
Where
d1 = X 12 − X 1
d 2 = X 12 − X 2
n1 ⋅ X 1 + n2 ⋅ X 2
X 12 = Combined mean =
n1 + n2
Illustration 36. Calculate the standard deviation of the following distribution:
Age No of people
20-25 170
25-30 110
30-35 80
35-40 45
40-45 40
45-50 35
Answer:
Let the assumed mean is A = 32.5
2
∑ fdx ∑ fdx 2
We have, Standard Deviation = σ = −( ) acording to Shortcut Method.
∑f ∑f
The following table shows how to apply the above formula to find the standard deviation from the given grouped
data.
32750 −1100 2
σ= −( ) = 68.23 − 5.25 = 7.936
480 480
Another method of calculating standard deviation is called Step deviation method by which
2 2
Σ fd ′ Σ fd ′
σ= − × h
N N
x− A
Where d ′ = h ,
h is a common factor, A is the assumed average and x is the mid value of the class interval
Illustration 37. Calculate the mean and standard deviation from the following data:
Value Frequency
90-99 2
80-89 12
70-79 22
60-69 20
50-59 14
40-49 4
30-39 1
Answer:
Calculations for Mean and S.d
2 2
∑ fd ′ ∑ fd ′ 127 27 2
σ= − × h= − ( ) × 10 = 1.6933 − 0.1296 × 10 = 12.505
∑f ∑f 75 75
∑ fd ′ 27
X = A+ × h = 64.5 + × 10 = 68.1
∑f 75
Illustration 38. Calculate standard deviation from the following set of observations
8 9 15 23 5 11 19 8 10 12
Answer:
These are ungrouped data. For these sort of data standard deviation is computed by the following formula –
Direct method:
(X − X )
2
The detail computation as per formula (A) and (B) are given in the following tables
X = Σ X/n = 12
274
So σ = 10
= 5.23.
Alternative Method-1
( )
2
ΣX 2 ΣX 2 1714 120
So σ = n
−(
n
) =
10
−
10
= 5.23
Alternative Method-2
The s.d of above ungrouped data can also be found by short cut method by the following formula:
2
Σd Σd
σ= − ( ) 2 where d = X – A and A is assumed mean = 10, in this case.
n n
2
Σd Σd 314 20 2
So σ = − ( )2 = − ( ) = 5.23
n n 10 10
Illustration 39. The analysis of the results of a budget survey of 150 families gave an average monthly expenditure
of `120 on food items with a standard deviation of `15. After the analysis was completed it was noted that figure
recorded for one household was wrongly taken as `15 instead of `105. Determine the correct value of the average
expenditure and its standard deviation.
Answer: We are given n = 150, X = 120 and σ = 15
Wrong value used =15 and correct value =105
ΣX ΣX
Now X = or 120 = 150
n
So that Σ = 120 × 150 = 18000
Corrected ΣX = 18000 − 15 + 105 = 18090
( )
2
ΣX 2 ΣX
Moreover σ 2 = −
n n
2
ΣX
Or, (15) = − (120)
2 2
150
So ΣX 2 = 2193750
Therefore Corrected ΣX 2 = 2193750 − 152 + 1052 = 2204550
18090
So Corrected Mean = 150 = 120.6
` 120.6
( )
2
ΣX 2 ΣX 2204550
− (120.6) = 152.64
2 2
Corrected Variance. = σ = n − n =
150
So Corrected S.d = σ = 152.64 = 12.35
` 12.35
Illustration 40. For a group containing 100 observations, the arithmetic mean and standard deviations are 8 and
10.5. For 50 observations selected from these 100 observations, the mean and the standard deviation are 10 and
2 respectively. Find the arithmetic mean and standard deviation of the other half.
Answer:
Suppose the 100 observations have been split up into two groups – Group I containing 50 observations with mean
X 1 = 10 and standard deviation σ1 = 2 and Group II containing the remaining 50 observations. The combined
group of 100 observations has mean X 12 = 8 and s.d. = σ1 = 10.5 . It is required to find the mean X 2 and s.d. (σ 2 )
of group II.
The values are shown in the following table:
Characteristics Groups Combined Group
Group I Group II
No of observations n1 = 50 n2 = 50 100
Mean X 1 = 10 X2 = ? X 12 = 8
S.D. σ1 = 2 σ2 = ? σ12 = 10.5
n1 X 1 + n2 X 2 50 × 10 + 50 × X 2
The mean of combined group = X 12 = n1 + n2
or,
50 + 50
= 8 (Given)
From above we have X 2 = 6
Again the standard deviation of the combined group is
σ12 =
(n σ
1 1
2
+ n2σ 2 2 ) + ( n1d12 + n2d 2 2 )
n1 + n2
Where d1 = X 1 − X 12 & d 2 = X 2 − X 12
d1 = 10 − 8 = 2
d 2 = 6 − 8 = −2
We can write from the s.d. formula of the combined group above —
(n1 + n2 ) σ12 2 = ( n1 σ12 + n2 σ 2 2 ) + ( n1 d12 + n2 d 2 2 )
Illustration 41. Find Range and Coefficient of Range for the following data
X 5 10 15 20 25 30 35 40
f 4 7 21 47 53 24 12 6
Answer:
Going through the values of X we get smallest value S = 5 and largest value L = 40
Range = L – S = 40 – 5 = 35. It is an absolute measure.
L − S 40 − 5
Coefficient of Range = = = 0.77 . It is a relative measure.
L + S 40 + 5
Illustration 42. Calculate Range and Coefficient of Range for following data
Answer:
Here L = 80 and S = 20
\ Range = L – S = 80 – 20 = 60
L − S 80 − 20
And Coefficient of Range = L + S = 80 + 20 = 0.6
Illustration 43. Compute Inter quartile Range, Coefficient of Quartile Deviation and Percentile Range for the
following data.
X 4 8 12 16 20 24 28 32
f 4 9 17 40 53 37 24 16
Answer:
Computation details are
X f C.f.
4 4 4
8 9 13
20.1
P10 12 17 30
50.25
Q1 16 40 70
20 53 123
150.75
Q3 24 37 160
180.9
P90 28 24 184
32 16 200
Ranks of Q1 = (200 +1)/4 = 50.25 i.e 50.25th term is Q1. From the above Table we find that 31st to 70th all the
values are 16. Thus 50.25th value should be 16. Hence Q1 = 16.
Ranks of Q3 = 3(200+1)/4 = 150.75 i.e 150.75th term is Q3. Using the similar concept as above Q3 = 24.
Q3 − Q1 24 − 16 8
Coefficient of Q.D = Q + Q = 24 + 16 = 40 = 0.2
3 1
So P90 = 28
So P10 = 12
Illustration 44. Compute M.D. and Coefficient of M.D. from mean and median for the following series.
X 3 7 12 14 15 18 22
Answer:
Detail computations of mean and median (14 as found from data) are:
Calculations for M.D from Mean & Median
∑ ( X − M d ) 33
Mean Deviation from median = = = 4.71
n 7
Illustration 45. Compute M.D. from Mean and Median for the given series:
X 5 10 15 20 25 30
f 3 4 8 12 7 2
Answer:
Detail Computation of M. D from mean and median are:
Calculations for M.D about Mean and Median
Mean =
Σ Xf =
650
= 18.06
Σf 36
∑ f ( x − M d ) 180
Mean Deviation from median = = =5
∑f 36
Illustration 46. From some financial statistics, it is found that the monthly average electricity charges were `2400
and S.D. `120. The monthly average direct wages were `42000 and S.D. `1200. Which one of electricity charges
and direct wages is more variable?
Answer:
Standard Deviation 120
Coefficient of variation for Electricity charges = × 100 = × 100 = 5%
Mean 2400
1 2
12 (
4. S.D. of first n natural number is n − 1)
� Standard deviation for discrete data = σ = N , where X is the mean and N total no of items;
( )
2
Σdx 2 Σdx
� Standard deviation for discrete data from assumed mean = σ = − where dx = X − A, A is
N N
assumed mean = any number
2
Σfdx 2 Σfdx
−
� Standard deviation for grouped data = σ = N N where dx = X – A, A is assumed mean = any
number or actual mean and N = Σf
σ12=
(n σ
1 1
2
+ n2σ 2 2 ) + ( n1d12 + n2d 2 2 )
n1 + n2
Where
σ1 = S.d of Group I, σ2 = S. d of Group II, n1 = no of items in Group I, n2 = no of items in Group II, d1 & d2 are
deviations of group means from combined group mean
S.D
� Coefficient of Variation = Mean × 100
Value
Figure-1: Showing typical Frequency Distribution curves with different types of skewness
So skewness is the attribute of a frequency distribution that extends further on one side of the class with the highest
frequency that on the other.
Let us take the following frequency distribution (Table 1) of three groups –Group I, Group II and Group III
For each group Σf = 250 and size pattern same as shown.
N
Σxf −C
For each group we find Average as X = , Median as M d = l1 + 2 × h and Mode as
Σf f
f1 − f 0
M o = l1 + ×h
2 × f1 − f 0 − f 2
Where
x = mid values of different classes, f = frequency, N = Σf, l1 = lower boundary of Median or Modal class,
C = cumulative frequency of class just preceeding median class, f in median formula = frequency of median class,
f1 = frequency of modal class, f0 = frequency of the class just preceeding modal class, f2 = frequency of the class
just succeeding modal class, h = width of median and modal class.
Table -I
From the above data and formula given for Mean Median and Mode we have the following result, for different
groups.
For these three groups if we plot the data in a graph paper then we will observe the following:
For Group I
• Refer figure 2— a positively skewed curve— a positively skewed curve occurs when a frequency distribution
has Mean > Median > Mode
Frequency
Value
Value
Figure-3: Showing a typical Symmetrical Frequency distributation curve
Value
0.77184 0 -0.77184
Skewness value of Group I is positive and that of Group III is negative, as observed from graph. Also Grpah II
being symmetrical shows zero skewness.
where Q3 & Q1 are third and first quartile and Md is the Median of the distribution
This is also called Quartile measure of skewness and it varies between +1 and – 1.
For our Groups the Skewness values as per this formula are given in the following table:
Σfx 2 Σfx
2 Group I Group II Group III
σ= − =
Σf Σf 7.73 7.21 7.73
3N N
−C −C
Q3 = l1 + 4 × h & Q1 = l1 + 4 ×h
f f
OR
D9 + D1 − 2D5
Sk =
D9 − D1
Kelly’s Coefficient of Skewness is also called percentile skewness or decile skewness. It is seldom used in practice.
It’s value lies between ±1.
Illustration 47. For a group of 10 items, ΣX = 452, ΣX2 = 24270, and Mode = 43.7; Find the Pearson’s coefficient
of Skewness
Answer:
ΣX 452
Mean ( X ) = n = 10 = 45.2
( )=
2
ΣX 2 ΣX 24270
S.D. (σ) = − − (45.2) 2 = 19.59
n n 10
Distribution A Distribution B
Mean 100 90
Median 90 80
Standard Deviation 10 10
Answer:
σA 10
(i) Coefficient of variation (for distribution A) = X × 100 = 100 × 100 = 10%
A
σB 10
Coefficient of variation (for distribution B) = × 100 = × 100 = 11.11%
XB 90
Since C.V of (B) > C.V. of (A), the distribution B is more variable than the distribution A. Thus the given
statement that the distribution A has the same degree of variation as distribution B is false.
(ii) Karl Pearson’s coefficient of skewness for distribution A and B is given by
3( Mean − Median ) 3(100 − 90)
Sk (A) = = =3
σ 10
3( Mean − Median ) 3(90 − 80)
Sk (B) = = =3
σ 10
Thus the given statement that both distributions have same degree of skewness is true.
Illustration 49. You are given below the following details relating to wages in respect of two factories from which
it is concluded that the skewness and variability are the same in both the factories:
Factory A Factory B
Mean `50 `45
Mode `45 `50
Variance Sq. ` 100 Sq. ` 100
Point out the mistake, if any, in the above statement
Answer:
σA 10
Coefficient of variation (for distribution A) = × 100 = × 100 = 20%
XA 50
σB 10
Coefficient of variantion (for distribution B) = × 100 = × 100 = 22.22%
XB 45
Since C.V of (B) > C.V. of (A), the distribution B is more variable than the distribution A. Thus the given statement
that variability of wages in factories A & B are same is false.
Karl Pearson’s coefficient of skewness for factories A and B is given by
Illustration 50. In a moderately skewed frequency distribution the mean is `30 and the median is `20. If the co-
efficient of variation is 70%, find the Karl Pearson’s coefficient of skewness.
Answer:
σ σ
Coefficient of variation for the distribution = × 100 = × 100 = 70%
X 30
So standard deviation = σ = 0.7 × 30 = 21
Illustration 51. Given X = 20 , median = 22 and coefficient of skewness = – 0.16. Find out Standard deviation.
Answer:
3( Mean − Median )
Karl Pearson’s coefficient of skewness = Sk = = −0.16
σ
3( 20 − 22)
Or, = −0.16
σ
3( 20 − 22) −6
Or, σ = −0.16
=
−0.16
= 37.5
Illustration 52. The following facts are gathered before and after an industrial dispute:
Compare the position before and after the dispute in respect of (a) total wages; (b) median wages; (c) modal wages;
(d) standard deviation; (e) coefficient of variation; (f) coefficient of skewness.
Answer:
(a)
(b) The median wages after the dispute has come down from `52.80 to `50.00. This implies that before the
dispute upper 50% of the workers were getting wages above `52.80 whereas after the dispute they get wages
only above `50.
It means that after dispute more variability of wages are there as CV (after) > CV (before)
Mean − Mode
(f) Coefficient of Skewness: Sk =
Standard Deviation
EXERCISE PROBLEMS
1. Calculate X for the following data by direct, short cut and step deviation methods.
70 65 55 75 80 85 65 70 95
Answer:
(i) Direct Method: X = Σx
n
Σdx
(ii) Short Cut Method (or) Indirect Method: X = A +
n
Σdx′
(iii) Step Deviation method: X = A + ×i
n
X dx = X – 80 dx´ = dx/5
70 –10 –2
65 – 15 –3
55 – 25 –5
75 –5 –1
80 0 0
85 5 1
65 –15 –3
70 – 10 –2
95 15 3
Total 660 –60 –12
Σx 660
Direct Method: X = = = 73.33
n 9
Short Cut Method (or) Indirect Method: X = A + Σ = 80 − 60 = 73.33
dx
n 9
Step Deviation method: X = A + Σ dx ′ 12
× i = 80 − × 5 = 73.33
n 9
2. Calculate X for the following series by Direct, Short-cut and step-deviation Methods.
X 5 10 15 20 25 30 35 40
f 6 17 28 34 18 11 9 7
Answer:
ΣfX
(i) Direct Method: X =
Σf
Σfdx
(ii) Short Cut Method (or) Indirect Method: X = A +
Σf
(iii) Step Deviation method: X = A + Σ
fdx′
×i
Σf
The Institute of Cost Accountants of India 331
Fundamentals of Business Mathematics and Statistics
Direct Method: X =
Σ fX =
2675
= 20.58
Σf 130
Σfdx 75
Short Cut Method (or) Indirect Method: X = A + = 20 + = 20.58
Σf 130
Σfdx′ 15
Step Deviation method: X = A + × i = 20 + × 5 = 20.58
Σf 130
3. A class has 50 students with average weight of 45 kgs. Out of these there are 30 girls with average weight of
42.5 kgs. Find average wt. of boys.
Answer:
X 1 × n1 + X 2 × n2 + …….. + X n × nn
X=
n1 + n2 + ………+ nn
X = combined mean of boys & girls = 45 & n = Total of boys & girls = 50
X 1 = Mean of girls = 42.5 & n1 = Total of girls = 30
Total of boys = n2 = n – n1 = 50 – 30 = 20
Total weight of boys and girls =X × n = 45 × 50 = 2250
Total weight of girls = X 1 × n1= 42.5 × 30 = 1275
Total weight of boys = Total weight of boys & girls-Total weight of girls = 2250 – 1275 = 975
975
So Average weight of boys = 20 = 48.75
4. A class of 40 students has an average of 56 marks in Math exam. But later on it was found thatterms 48, 54
and 67 were misread as 68, 45 and 87. Find correct mean.
Answer: Total marks of 40 students = 40 × 56 = 2240
Correct total = 2240 – 68 – 45 – 87 + 48 + 54 + 67 = 2209
2209
So Correct mean = = 55.225
40
5. X for 20 items was 36, but two terms were taken as 47 and 56 instead of 67 and 65. Find correct mean.
Answer:
Total of 20 students = 20 × 36 = 720
Correct total = 720 – 47 – 56 + 67 + 65 = 749
749
So Correct mean = 37.45
20
6. Average of 10 terms is 6, Find new average if each term is (i) multiplied by 2 (ii) divided by 5 (iii) 3 is added
to each term (iv) 4 is subtracted from each term.
Hints:
Total of 10 terms = 10 × 6 = 60
if each term is multiplied by 2, new total will be = 60 × 2 = 120
60
if each term is divided by 5, new toal will be = 5 = 12
if 3 is added to each term, new toal will be = 60 + 10 × 3 = 90
if 4 is subtracted from each term, new toal will be = 60 – 10 × 4 = 20
120 12 90 20
So (i) = 12 ; (ii)= = 1.2 ; (iii)= = 9 ; (iv)= =2;
10 10 10 10
Direct Method: X = Σfx , here x we take as the mid value of each class
Σfa
Class X f Xf
3-5 4 3 12
6-8 7 7 49
9-11 10 16 160
12-14 13 34 442
15-17 16 17 272
18-20 19 3 57
Total 80 992
Σfx 992
X= = = 12.4
Σf 80
8. Find median
Class Less than 50 50-75 75-100 100-125 125-150 More than 150
Interval
f 21 47 67 89 55 21
Answer:
N
−C
M d = l1 + 2 ×h
f
Class f c.f
less than 50 21 21
50-75 47 68
75-100 67 135
Median Class
100-125 89 224
125-150 55 279
More than 150 21 300
Total 300
So
N 300
−C − 135
M d = l1 + 2 × h = 100 + 2 × 25 = 104.21
f 89
9. Mean weight of students in a class is 48 kg. If mean weight of girl students is 40 kg. And that of boysis 60
kg. Find (a) % age of boys and girls (b) If there are total of 75 students, find number of each.
Answer:
let there are x no of boy students. So there are 75 – x no of girls
x × 60 + ( 75 − x ) × 40
So by question we can write: 48 =
75
Or, 75 × 48 = 60x + 75 × 40 – 40x
Or, 3600 = 20x + 3000
600
Or, x = = 30
20
So no of girls students = 75 – 30 = 45
30 45
% age of boys and girls = × 100 = 40% & × 100 = 60%
75 75
10. Mean of a series with 50 terms is 80; but afterwards it was noted that three terms 63, 47 and 88were misread
as 36,74 and 63. Find correct Mean.
Answer:
Total of 50 terms = 50 × 80 = 4000
Correct total = 4000 – 36 – 74 – 63 + 63 + 47 + 88 = 4025
4025
So Correct mean = = 80.5
50
11. Median of a series is 80, but four terms 38, 66, 93 and 96 were misread as 83, 88, 39 and 69 find correct
Median.
21 13 17 11 19 9 16 23 14
Answer:
Arranging the data in ascending order we get
9 11 13 14 16 17 19 21 23
Median = Md = M =
( n + 1) th term 9 + 1 = 5th term = 16
2 2
Q1 =
( n + 1) th term = 9 + 1 = 2.5 th term = (11 + 13)/2 = 12
4 4
3( n + 1) 3(9 + 1)
Q3 = th term = = 7.5th term = (19 + 21) / 2 = 20
4 4
X: 8 12 20 25 30 40
F: 9 16 28 46 20 10
14. Calculate Median Q1, Q3, D4 and P86 for following data
Answer:
Class f c.f
0-4 4 4
4-8 17 21
8-12 36 57
12-16 90 147 Q1 class
16-20 123 270 Median Calss,D4 class
20-24 110 380 Q3 class
24-28 66 446 P84 class
28-32 14 460
So
N 460
−C − 147
M d = l1 + 2 × h = 16 + 2 × 4 = 18.699
f 123
N 460
−C − 57
Q1 = l1 + 4 × h = 12 + 4 × 4 = 14.58
f 90
3N 3 × 460
−C − 270
Q2 = l1 + 4 × h = 20 + 4 × 4 = 22.72
f 110
4N 4 × 460
−C − 147
D4 = l1 + 10 × h = 16 + 10 × 4 = 17.203
f 123
84 N 84 × 460
−C − 380
P84 = l1 + 100 × h = 24 + 100 × 4 = 24.388
f 66
16. Calculate D1, M1, Q3 and P95 for the following data (Unequal Intervals)
Hints:
Let the missing figures are f1 and f2
Class f c.f
20-25 40 40
25-30 50 90
30-35 f1 90 + f1 120
35-40 150 240 + f1 Q1 class
40-45 180 420 + f1
45-50 130 550 + f1
50-55 f2 550 + f1 + f2
55-60 60 610 + f1 + f2
18. Find out median and quartiles for the following data:
Marks 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100
No.of Stu 11 18 25 28 30 33 22 15 12 10
20. In the batch of 15 students, 5 students failed. The marks of 10 students who passed were 9, 6, 7, 8, 8, 9, 6, 5,
4, 7 what were the median marks of all 15 students?
Exercise:
Theoretical Questions
Multiple Choice Questions (MCQ)
2. Because of heavy rain on Sunday average rainfall of a city for the week increased to 0.6 inch from the
average rainfall 0.3 inch measured from Monday to Saturday. The rainfall on Sunday was-
(a) 2.4 inch;
(b) 0.3 inch;
(3) 2.1 inch;
(d) 1.5 inch
Σx
(a) ;
Σf
Σx
(b) ;
n
Σfx
(c) ;
n
Σfx
(d) ;
Σf
∑
20
4. x =1
x = 54120 ; While computing this, it was observed that two entries were wrongly entered as 850 and
320 instead of 580 and 230. Correct value of x is
(a) 2688;
(b) 2746.5;
(c) 2720;
(d) 2662;
5. Σ( X − X ) is always equal to
(a) 1;
(b) -1;
(c) 0;
(d) ∞ ;
6. The sum of the squares of deviations of a set of observations is the minimum when deviations are taken
from the
(a) Geometric Mean;
(b) Harmonic Mean;
(c) Arithmetic Mean;
(d) Mode;
7. If each of the values of a variable x with mean x , is multiplied by K then the new mean of the variable is
x
(a) ;
k
(b) k x ;
(c) x ;
(d) kx ;
10. The mean daily salary paid to all employees in a certain company was `600. The mean daily salaries paid
to the male and female employees were `620 and `520 respectively. Male to female employees ratio in the
company is
(a) 3:2;
(b) 4:5;
(c) 5:7;
(d) 4:1;
11. The pass result of 50 students who took up a class test is given below:
Marks 4 5 6 7 8 9
No of Students 8 10 9 6 4 3
If the average marks for all the fifty students was 5.16, the average marks of the students who failed is
(a) 0.42;
(b) 3.06;
(c) 4.74;
(d) 2.1;
12. For a certain frequency table which has only been partly reproduced below for which the mean is 1.46
No of accidents 0 1 2 3 4 5
Frequency 46 f1 f2 25 10 5
13. The sum of the deviations of a certain number of observations measured from 4 is 72 and the sum of the
deviations of the observations from 7 is -3. Mean of the observations is
(a) 6.88;
(b) 25;
(c) 3.63;
(d) Cannot be ascertained with given data;
14. The mean of a certain number of items is 42. If one more item 64 is added to the data, the mean becomes
44. The no of items in the original data is
(a) 20;
(b) 10;
(c) 43;
(d) 440;
17. A person walks 8 km at 4km an hour, 6km at 3km an hour and 4km at 2km an hour. Average speed per
hour is
(a) 0.33;
(b) 2;
(c) 3;
(d) 0.5;
18. It is the most suitable average when it is desired to give greater weight to smaller observations and less
weight to larger ones. It is
(a) AM;
(b) HM;
(c) GM;
(d) Median;
19. Which one of the following is not a feature of Arithmetic Mean (AM)?
(a) AM is affected very much by extreme values;
(b) AM is widely used in the study of qualitative phenomenon;
Answer:
1 2 3 4 5 6 7 8 9 10
(c) (a) (d) (a) (c) (c) (b) (c) (a) (d)
11 12 13 14 15 16 17 18 19 20
(d) (c) (a) (b) (b) (c) (c) (b) (b) (c)
1 2 3 4 5 6 7 8 9 10
T T F T F F T F F F
11 12 13 14 15 16 17 18 19 20
T T F F F F F F T T
Types of correlation:
There are three important types of correlation which are discussed as under:
(I) Positive and Negative Correlation: Correlation between two variables, positive or negative depends on the
direction in which the variables move.
(a) Positive or direct correlation: If the two variables move in the same direction i.e. with an increase in one
variable, the other variable also increases or with a fall in one variable, the other variable also falls, the
correlation is said to be positive.
(b) Negative or Inverse Correlation: If two variables move in opposite direction i.e. with the increase in one
variable, the other variable decreases or with the fall in one variable, the other variable rises, the correlation is
said to be negative or inverse.
(vii) When – 0.75 < r < – 0.5 Moderate degree of negative correlation
(viii) When – 0.5 < r < 0 Low degree of negative correlation
(ix) When r = – 1 Perfect negative correlation
Scatter Diagram
One of the way of getting an idea about correlation is Scatter Diagram.
Low degree of positive correlation; r > 1 Low degree of negative correlation; r < 1
No correlation; r – 0
Advantages
(1) It is very easy to draw a scatter diagram
(2) It is easily understood and interpreted
(3) Extreme items does not unduly affect the result as such points remain isolated in the diagram
Disadvantages
(1) It does not give precise degree of correlation
(2) It is not amenable to further mathematical treatment
Direct method:
Σ {( X − X )(Y − Y )}
Coefficient of Correlation = r = ... ... ... (1)
Σ( X − X ) 2 Σ(Y − Y ) 2
The above formula can also be written as
Σ {( X − X )(Y − Y )} Cov ( x, y)
r= Or, r = ... ... ... (2)
N σ xσ y σ x ⋅σ y
Σ(X − X ) Σ (Y − Y )
2 2
Where σ x = and σ y = .
N N
Σ {( X − X )(Y − Y )}
is called Cov (x, y) or Co-variance between X & Y. σ x & σ y are Standard Deviations of series
N
X and Y.
Another way of writing the above formula is
Σ XY −
( Σ X )( Σ Y )
r= N … … … … (3)
2 ( Σ X )2 2 ( Σ Y )2
Σ X − N Σ Y − N
Indirect Method:
Σdx.dy −
( Σdx )( Σdy )
r= N … … … … (4)
2 ( Σdx )
2
2 ( Σdy )
2
Σdx − N Σdy − N
Illustration 1. Calculate the Correlation Coefficient between the height of father and son from the given data
Answer:
Calculation for Correlation Coefficient
ΣX 469 ΣX 476
Mean of X = X = = = 67 and Mean of Y = Y = = = 68 [n = No. of pairs of observation = 7]
n 7 n 7
Σ {( X − X )(Y − Y )} 25
r= = = 0.81
Σ( X − X ) 2
Σ(Y − Y ) 2
(28 × 34)
Alternative Method:
Calculation for Correlation Coefficient
Sl. No. X Y XY X2 Y2
1 64 66 4224 4096 4356
2 65 67 4355 4225 4489
3 66 65 4290 4356 4225
4 67 68 4556 4489 4624
5 68 70 4760 4624 4900
6 69 68 4692 4761 4624
7 70 72 5040 4900 5184
Total 469 476 31917 31451 32402
ΣXY −
( ΣX )( ΣY ) 31917 −
( 469)( 476)
r= N = 7
2 ( Σ X )2 2 ( Σ Y )2 ( )
469
2
( 476)2
ΣX − N ΣY − N 31451 − 7 32402 − 7
25
= = 0.81
28 34
The sign of r indicate the direction of the relationship between the two variables X and Y. If an inverse relationship
exists – that is, if Y decreases as X increases – then r will fall between 0 and -1. Likewise if there is a direct
relationship i.e. if Y increases with increase in X, then r will fall between 0 and 1.
Illustration 2. From the following data compute the co-efficient of correlation between X and Y:
X series Y Series
No. of items 15 15
Arithmetic Mean 25 18
Square of deviations from mean 136 138
Summation of product of deviations of X and Y series from their respective Arithmetic Mean is 122.
Answer:
r=
Σ {( X − X )(Y − Y )} =
122
= 0.89
Σ( X − X ) 2
Σ (Y − Y ) 2
136 × 138
Illustration 3. The following table gives the soil temperature and the germination time at various places.Calculate
the co-efficient of correlation and interpret the value
Temperature 57 42 40 38 42 45 42 44 40 46 44 43
Germination Time 10 26 30 41 29 27 27 19 18 19 31 29
Take 44 and 26 as assumed means for Temperature and Germination Time respectively.
Answer:
Σdx.dy −
( Σdx )( Σdy )
N
Coefficient of Correlation = r =
2 ( Σdx ) 2
2 ( Σdy )2
Σdx − N Σdy − N
Illustration 4. Given
No. of pairs of observations for X and Y series = 8
X series Arithmetic average = 74.5
X series assumed average = 69
X series standard deviation =13.07
Y series arithmetic average = 125.5
Y series assumed average = 112
Y series standard deviation= 15.85
Summation of product of corresponding deviations of X and Y series = 2176
Calculate coefficient of correlation.
Answer:
Σdx.dy − N ( X − AX )(Y − AY )
r=
Nσ X σ Y
r = ± byxbxy
8. Coefficient of correlation is independent of the unit of measurement
9. Coefficient of correlation works both ways i.e., rxy = ryx
10. If the value of x and y are linearly related with each other i.e., if we have the relation between x and y as
y = ax + b, the correlation coefficient between x and y will be positive and if the relation between x and y be
y = – ax + b, then ‘r’ will be negative, ‘a’ being a negative constant.
According to Wheldon, “probable error defines the limit above and below the size of the coefficient determined
within which there is an equal chance that the coefficient of correlation similarly calculated from other samples
will fall”
Karl Person’s Probable error is calculated by using the following formula
1− r2
P.E = 0.6745
N
Where P.E. = Probable Error
r = Co-efficient of correlation
N = Number of pairs of observations
This is used in interpreting whether ‘r’ is significant or not. If ‘r’ is more than P.E. then there is correlation and it
is significant if ‘r’ is more than six times P.E.
Illustration 5: Coefficient of correlation between advertising expenditure and sales for 9 items was observed as
+ 0.69. Find out probable error of correlation coefficient and comment on the significance of r.
Answer:
1− r2 1 − 0.692
P.E = 0.6745 = 0.6745 × = 0.118
N 9
r = 0.69 < 6 × 0.118 = 0.708
So, we can say that r is less than 6 times the value of probable error. Hence the value of r is not significant.
Illustration 6: To study the correlation between the weights and heights of the students of a college, a sample of
100 is taken from the universe. The sample study gives the coefficient of correlation between two variables as 0.9.
Within what limits does it hold good for the universe.
Answer:
1− r2 1 − 0.92
Here r = 0.9, P.E = 0.6745 = 0.6745 × = 0.013
N 100
Upper limit = r + P.E = 0.9 + 0.013 = 0.913
Lower limit = r – P.E = 0.9 – 0.013 = 0.887
Illustration 7. Compute Rank correlation coefficient from the data of the following table
Answer:
This is a problem related to Case I mentioned above.
We will use the following formula
6ΣD 2
rk = 1 −
N ( N 2 − 1)
Illustration 8. The ranks of students in Hindi (R1) and Economics (R2) are given
Hindi (R1) 6 1 5 2 4 3
Economics (R2) 3 1 4 2 5 6
Answer:
This is a problem related to of case II mentioned above
We will use the formula
6ΣD 2
rk = 1 −
N ( N 2 − 1)
Detail computations are as follows:
So
6ΣD 2 6 × 20
rk = 1 − = 1− = 1 − 0.571 = 0.429
N ( N 2 − 1) 6 × (36 − 1)
Illustration 9: Eight students have obtained the following marks in Accountancy and Economics. Calculate the
Rank Co-efficient of correlation.
Accountancy (X) 25 30 38 22 50 70 30 90
Economics (Y) 50 40 60 40 30 20 40 70
Answer:
We will use the formula
6 ΣD 2 +
1
12 {( ) ( )
m13 − m1 + m23 − m2 + + mn3 − mn ( )}
rk = 1 −
N3 − N
Where N = No. of pairs of observation = 8
[Note: While ranking the marks of Accountancy it is seen that there is a tie of 2 students securing the same marks
5+ 6
30 to get placed at the 5th spot. Thus they have given an average rank of = 5.5
2
Similarly in ranking the marks of Economics there in a tie of 3 students securing the marks 40 each to get placed at
4+5+ 6
the 4th spot. Hence they have given an average rank of = 5. Also m1 = 2 and m2 = 3
3
So
1 3 1 3 1 3 1 3
6 ΣD 2 +
12 (
m1 − m1 +)12 (
m2 − m2
) 6 81.5 +
12 (
2 −2 +
12 )
3 −3 (
=0
)
rk = 1 − = 1−
N3 − N 83 − 8
r=± {(
±
2C − N
N )}
Where
r = Correlation coefficient
C = no of concurrent deviations
N = Number of pairs of deviations compared
The meaning of ± sign both inside and outside the square root is that the value of (2C − N
N )would be positive when
both the signs are positive and it would be negative when both the signs are negative. This is significant in case
the value is negative, because under root of negative values cannot be calculated and therefore if the value of
( C N
) is negative it is multiplied by the negative (–) sign inside the square root to make it positive. In such case
the sign outside will also be minus (–).
Illustration 10. Compute the coefficient of correlation for the following data using Concurrent Deviation Method.
Month Output of Steel (in 000 tons) Unemployed in steel (in 000)
January 8.5 60
February 9.2 65
March 9.3 61
April 8.5 74
May 7.2 92
June 5.9 157
July 5.1 130
August 6.6 106
September 7.9 58
October 7.6 80
November 8.2 52
December 9.2 45
Answer:
Detail computations are
Deviations Deviations Non
from from
Month Output preceding Unemployed preceding Concurrencies Concurrencies
month month
January 8.5 60
February 9.2 + 65 + +
March 9.3 + 61 - -
April 8.5 - 74 + -
May 7.2 - 92 + -
June 5.9 - 157 + -
July 5.1 - 130 - +
August 6.6 + 106 - -
September 7.9 + 58 - -
October 7.6 - 80 + -
November 8.2 + 52 - -
December 9.2 + 45 - -
Total 2 9
Concurrencies mean when signs are square i.e. Case 1: deviation of output from preceding month is positive and
deviation of unemployed from preceding month is also positive (February), Case 2: deviation of output from
preceding month is negative and deviation of unemployed from preceding month is also negative (July). In other
cases non-concurrencies are there. So here C = 2 & N = 11.
So
r=± {(
±
2C − N
N )} { (
=− −
2 × 2 − 11
11 )} = − 0.798
Sir Francis Galton introduced the concept of ‘Regression’ for the first time in 1877 when he studied the relationship
between the heights of fathers and sons.
Basically in regression analysis we develop “Regression Equation” which relates independent variables with
dependent variables.
(i) On the basis of Number of Variables: On the basis of number of variables regression analysis can be classified
as –
1. Simple regression
2. Partial Regression
3. Multiple Regression
If Regression equation relates one dependent variable with one independent variable, then Regression is called
Simple Regression.
When more than two variables are studied in a functional relationship but the relationship of only two variables
is analysed at a time, keeping other variables as constant,such a regression analysis is called Partial Regression.
If Regression equation relates one dependent variable with more than one independent variable, then Regression
is called Multiple Regression.
(ii) On the basis of Change in Proportions: On the basis of proportions the regression can be classified into the
following categories:
1. Linear regression
2. Non-linear regression
Relationship between variable can be of different types:
Direct Linear
25
20
15
Dependent variable
10
0
0 2 4 6 8 10 12
Independent variable
Inverse Linear
35
30
25
20
Dependent variable
15
10
0
0 2 4 6 8 10 12
Independent variable
Direct Curvilinear
250
200
Dependent variable
150
100
50
0
0 2 4 6 8 10 12
Independent variable
Inverse Curvilinear
140
120
100
Dependent variable
80
60
40
20
0
0 2 4 6 8 10 12
Independent variable
Relationship observed by regression is only the relationship of association of variables but not necessarily of cause
and effect. Sale of Petrol may have direct relationship with the sale of petrol cars but positive growth of economy
actually causes increase in demand of petrol and car.
Linear Regression line is the equation that linearly relates the two variables mathematically. Regression line
showing linear relationship between two variables is of the form:
Dependent Variable
a is called Y axis intercept or Y-intercept or simply intercept, b is the slope of the line.
A regression line is a graphic technique to show the functional relationship between the two variables X and Y. i.e.
dependent and independent variables. It is a line which shows average relationship between two variables X and
Y. Thus, this is a line of average. This is also called an estimating line as it gives the average estimated value of
dependent variable (Y) for any given value of independent variable (X).
The regression lines can be drawn by two methods as given below: -
1. Free Hand Curve Method
2. The method of Least Squares
1. Free Hand Curve Method: This method is also known as the method of Scatter Diagram. This is a very
simple method of constructing regression lines. At the same time it is a crude and very rough and rarely used
method of drawing regression lines. In this method, the value of paired observations of the variable are plotted
on the graph paper. It takes the shape of a diagram scattered over the graphic range of X axis and Y axis. The
independent variable is taken on the horizontal axis.
A straight line is drawn through the scattered points on the graph such that it conforms to the following requisites:
(a) It is as maximum as possible nearer to all the points on the graph
(b) It is as equidistant from of all the points on either sides of the line
(c) It passes through the centre of the scattered points.
Illustration 11. From the following data relating to X and Y, draw a regression line of Y on X by free hand curve
method.
X: 10, 16, 24, 36, 48; Y: 20, 12, 32, 40,55;
Answer:
Scatter Diagram
60
50
40
30
Y
10
0
0 10 20 30 40 50 60
X
X 20 11 15 10 19 21
Y 5 15 14 17 10 11
(i) Fit the regression line;
(ii) Predict Y for X = 12;
Answer:
Calculations for Regression Line
Sl. No. X Y XY X2
1 20 5 100 400
2 11 15 165 121
3 15 14 210 225
4 10 17 170 100
5 19 10 190 361
6 21 11 231 441
Total 96 72 1066 1648
Mean of X = ΣX/n = 96/6 = 16 and Mean of Y = ΣY/n = 72/6 = 12
X 2 = (16)2 = 256
ΣXY − n X Y
So b = = (1066 – 6 × 16 × 12)/ (1648 – 6 × 256)
ΣX 2 − n X 2
= (–) 86/112 = (–) 0.768
ΣY = a ⋅ N + b ⋅ ΣX ... (1)
2
and ΣXY = aΣX + bΣX ... (2)
For the first case (already discussed) and the second case the related formulae are given below for convenience:
Y = a + bX X = a + bY
ΣXY − nX Y ΣXY − n X Y
byx = bxy =
ΣX 2 − nX 2 ΣY 2 − nY 2
a = Y − bX a = X − bY
Regression equations can be written with the help of Regression Coefficients also:
Σ ( X − X )(Y − Y ) Σ ( X − X )(Y − Y )
byx = bxy =
Σ(X − X ) Σ (Y − Y )
2 2
Illustration 13. From the following data obtain the two regression equations:
Answer:
ΣX ΣX
X= = 900/10 = 90, X = = 700/10 = 70
10 10
Σ ( X − X )(Y − Y )
So byx = = 3900/6360 = 0.613
Σ(X − X )
2
Σ ( X − X )(Y − Y )
So bxy = = 3900/2868 = 1.36
Σ (Y − Y )
2
4. From (3) above, conclusion can be drawn that Coefficient of determination (r2) is the product of two regression
coefficients.
(i) If the given Regression Equation is for Y on X then convert it to the form Y = a + bx and ‘b’ i.e. the
coefficient of X is the Regression Coefficient Y on X or byx. In other words byx = b
(ii) If the given Regression Equation is for X on Y then convert it to the form X = a′ + b′ Y and ‘ b′ ’ i.e. the
coefficient of Y is the Regression Coefficient X on Y or bxy. Thus bxy = b′ in this case.
X 1 5 3 2 1 2 7 3
Y 6 1 0 0 1 2 1 5
Find regression equations by taking deviations of items from the means of X and Y respectively
Answer:
Regression equations are:
Σ ( X − X )(Y − Y ) Σxy
bxy = = .... (2)
Σ (Y − Y ) Σy 2
2
Sl. No. X Y x = X − X = X −3 y = Y −Y = Y − 2 x2 y2 xy
1 1 6 -2 4 4 16 -8
2 5 1 2 -1 4 1 -2
3 3 0 0 -2 0 4 0
4 2 0 -1 -2 1 4 2
5 1 1 -2 -1 4 1 2
6 2 2 -1 0 1 0 0
7 7 1 4 -1 16 1 -4
8 3 5 0 3 0 9 0
Total 24 16 – – 30 36 -10
ΣX 24 ΣY 16
A. M of X = X = = = 3 and A.M of Y = Y = = = 2 [n = No. of pairs of observation = 8]
n 8 n 8
−10 −1 −10 −5
So byx = = & bxy = = [Puting the values in (1) and (2)
30 3 36 18
−1
So Y − Y = byx ( X − X ) Or, Y − 2 = × ( X − 3) Or X + 3Y − 9 = 0
3
and
5
X − X = bxy (Y − Y ) Or, X − 3 = (Y − 2) Or 18 X + 5Y − 64 = 0
18
Alternatively:
Σ ( X − X )(Y − Y ) −10
r= = = −0.304
Σ (X − X ) 2
Σ (Y − Y ) 2
30 × 36
30 36
σx = = 1.94 and σ y = = 2.12
8 8
Regression equation of X on Y:
1.94
X − X = bxy (Y − Y ) = X − 3 = −0.304 × (Y − 2)
2.12
1.94
Or, X − 3 = −0.304 ×
2.12
(Y − 2) = −0.277 (Y − 2)
Or, X – 3 = – 0.277Y + 0.556
Or, X + 0.277Y – 3.556 = 0
Regression equation of Y on X:
2.12
Y − Y = byx ( X − X ) = Y − 2 = −0.304 × ( X − 3)
1.94
2.12
Or, Y − 2 = −0.304 ×
1.94
( X − 3) = −0.333 ( X − 3)
Or, Y – 2 = – 0.333X + 0.999
Or, 0.333X + Y – 2.999 = 0
ΣY 2 − a ΣY − bΣXY
Se =
n−2
Larger the Standard error of estimate, the greater the scattering of points around the regression line. If Se= 0 then
all the given values of Y will lie exactly on the regression line for the given values of X.
For the observed points assuming normally distributed around the regression line we can expect
(i) 68% of the points within ±1Se ;
(ii) 95.5% of the points within ± 2 Se ;
(iii) 99.7% of the points within ± 3Se ;
Illustration 15: A study by the University, Department of Transportation on the effect of bus ticket prices upon
the number of passengers produced the following results:
Answer:
Let the Regression Equation be Y = a + bX
Calculations for Regression Equation
So Se = ΣY 2 − a ΣY − bΣXY
n−2
Interpretation:
(i) 68% of the points are within ± Se i.e. ± 31.234;
(ii) 95.5% of the points are within ± 2Se i.e. ± 62.468;
(iii) 99.7% of the points are within ± 3Se i.e. ± 93.702
Y = a + bX X = a + bY
ΣY 2 − a ΣY − bΣXY ΣX 2 − a ΣX − bΣXY
Se = Se =
n−2 n−2
Illustration 16. For certain X and Y series which are correlated, the two lines of regression are:
5X – 6Y + 90 = 0 and 15X – 8Y – 130 = 0. Find the means of the two series and the correlation coefficient between
them.
Answer: The two regression line intersects each other at the point ( X , Y ).
1
From first equation we have X = 5 ( 6Y − 90) = 1.2Y − 18
Putting this value in 2nd equation we have 15 (1.2Y − 18) − 8Y − 130 = 0
Or 18Y – 270 – 8Y – 130 = 0
Or 10Y = 400
Or Y = 40
So X = 1.2 × 40 – 18 = 30
Therefore Means of the two series are X = 30, Y = 40
Let us suppose 1st equation is the equation of line of regression of Y on X and the 2nd equation is that of X on Y
So from 1st equation we can write 6Y = 5X + 90
Or, Y = 5 X + 90
6 6
5
So bYX = Coefficient of X in the Regression Equation Y on X =
6
Similarly from 2nd equation we can write 15X = 8Y + 130
Or, X = 8 Y + 130
15 15
8
So bXY = Coefficient of Y in the Regression Equation X on Y =
15
2
Therefore r 2 = bYX .bXY = 5 . 8 = 40 or, r = ±
6 15 90 3
Since both the regression coefficients are positive, r must be positive and we take r = 2/3
[Note: If we had assumed that the 1st equation is the regression equation of X on Y and 2nd equation is the regression
6 15
equation of Y on X we get bXY = & bYX = 8
5
6 15 90 3
Therefore r = bYX .bXY = 5 . 8 = 40 Or, r = 2 > 1 which not a feasible solution]
2
Illustration 17. The regression equation of profit (X) on sales (Y) of a certain firm is 3Y – 5X + 108 = 0. The
average sales of the firm was `44,000 and the variance of profits is 9/16thof the variance of sales. Find the average
profit and the coefficient of correlation between sales and profit.
Answer:
The regression equation of profit (X) on sales (Y) of the firm is 3Y – 5X + 108 = 0.
Average sales Y = 44,000
The average profit can be obtained by putting Y = 44000 in the regression equation of X on Y (as X , Y satisfy both
the regression equations)
We get 3 × 44000 – 5 X + 108 = 0, Or 132000 + 108 = 5X
132108
Or, X = = 26421.6. So required value of Average Profit = X = ` 26421.60
5
2 9 2 σ 3
By question σ x = 16 σ y or x =
σy 4
3 108
From the equation 3Y – 5X + 108 = 0 we can write X = 5 Y + 5
Illustration 18. While calculating the coefficient of correlation between two variable X and Y the following results
were obtained:
The number of observations N = 25, ΣX = 125, ΣY = 100, ΣX2 = 650, ΣY2 = 460, ΣXY = 508. It was however later
discovered at the time of checking that two pairs of observations (X,Y) were copied as (6,14) and (8,6) while the
correct values were (8,12) and (6,8) respectively. Find the correct value of the coefficient of correlation.
Answer:
Corrected ΣX = 125 – 6 – 8 + 8 + 6 = 125
520 − 500 20 20 20 2
= = = = =
{650 − 625}{436 − 400} 25 × 36 5 × 6 30 3
X Y
Arithmetic Mean 20 25
Standard Deviation 5 4
Coefficient of correlation between X and Y is 0.6. Form the regression equations of X on Y and Y on X
Answer:
We know that
r σy
Regression coefficient of Y on X = bXY = and
σx
r ρx
Regression coefficient of X on Y = bXY =
σy
0.6 × 4 0.6 × 5
So bXY = = 0.48 & bXY = = 0.75
5 4
X: 2, 6, 4, 3, 2, 2, 8, 4; Y: 7, 2, 1, 1, 2, 3, 2,6;
Answer:
Regression equations are:
Y − Y = byx ( X − X )
X − X = bxy (Y − Y )
Σ( X − X )(Y − Y )
byx =
Σ( X − X ) 2
Σ( X − X )(Y − Y )
bxy =
Σ(Y − Y ) 2
ΣX 31 ΣY 24
Mean of X = X = = = 3.875 , Mean of Y = Y = = = 3 [ n = No. of pairs of observation = 8]
n 8 n 8
Σ ( X − X )(Y − Y ) 10
byx = =− = −0.304
Σ(X − X ) 32.875
2
Σ ( X − X )(Y − Y ) 10 5
bxy = =− = − = −0.278
Σ (Y − Y ) 36 18
2
2. Both the regression coefficients will have the same sign i.e.,
(iii) Both bxy and byx must have same signs. If both are positive, r will be positive and vice-versa.
3. Correlation Co-efficient is the geometric mean between regression coefficients i.e., r = ± bxy × byx
bxy + byx
4. A.M of Regression Coefficients is greater than or equal to the Coefficient of correlation i.e. ≥r
2
5. Regression Coefficients are independent of change of origin but not of scale.
Illustration 21. Past data on household income and expenditure reveals that
(a) The average absolute increase in income in relation to increase in expenditure is `1.5 crore and
(b) The average absolute increase in expenditure in relation to increase in income in `50 crore
Find the coefficient of correlation between household income and expenditure.
Answer:
Let the Increase in Income = x
And the increase in expenditure = y.
The value of regression coefficient bxy = 1.5
Similarly the regression coefficient byx = 0.5
r = ± bxy × byx = + 1.5 × 0.5 = 0.75 = 0.866 [As both bxy and byx are positive, r is also positive]
If there is perfect correlation (positive or negative, i.e., r ±1) both the lines will coincide. In this case there will be
one regression line.
In case r = 0, i.e., both the variables are independent, both the lines will interest each other at right angles i.e.,
parallel to the axes.
Higher the value of r, closer will be the regression lines to each other.
On the other hand if the value of r is low, the gap between regression lines will be wider.
It is important to note that the point, where both the regression lines intersect each other, gives us the mean values
of X and Y.
EXERCISE - I
1. From the following table calculate the coefficient of correlation by Karl Pearson’s method and also fill the gap.
X 8 4 12 6 10
Y 11 13 ? 10 9
Arithmetic means of X and Y series are 8 and 10 respectively.
Marks in Economics 48 60 72 62 56 40 39 52 30
Marks in Accountancy 62 78 65 70 38 54 60 32 31
5. If the covariance between X and Y variables is 10 and the variance of X and Y are respectively 16and 9, find
the coefficient of correlation.
7. From the following data compute the coefficient of correlation between X and Y:
X- Series Y- Series
Arithmetic Mean 15 28
Sum of Squares of deviations from mean 144 225
Summation of product of deviations of X and Y series from their respective means = 20
8. In a question on correlation the value of r is 0.64 and its P.E. = 0.1312. What was the value of N?
9. From the marks obtained by 8 students in Accountancy and Statistics, compute rank coefficient of correlation.
Marks in Accountancy 60 15 20 28 12 40 80 20
Marks in Statistics 10 40 30 50 30 20 60 30
10. The coefficient of rank correlation between marks in Quantitative Mathematics and Economics obtained by a
certain group of students is 7/11. The sum of the squares of differences in ranks is 60.What is the number of
students in the group?
11. The coefficient of rank correlation of the marks obtained by 10 students in statistics and accountancy was
found to be 0.5. It was later discovered that the difference in ranks in the two subjects obtained by one of the
students was wrongly taken as 3 instead of 7. Find the correct coefficient of rank correlation.
12. Find correlation coefficient for data given below:
Age (years) 42 36 48 43 55 52 38
Blood Pressure 132 120 140 133 142 148 122
13. Calculate Karl Pearson’s coefficient of correlation between expenditure on advertisement and sales from the
data given below:
X 67 69 71 75 85 93 87 73
Y 95 80 87 80 79 75 80 85
15. From the following data compute the coefficient of correlation between X and Y.
X- Series Y- Series
Arithmetic Mean 25 18
Sum of Squares of deviations from mean 136 138
Summation of product of deviations of X and Y series from their respective means = 122. Number of pairs of
value is 15.
16. Ten competitors in a beauty contest are ranked by 3 judges in the following order:
Judge A 1 6 5 10 3 2 4 9 7 8
Judge B 3 5 8 4 7 10 2 1 6 9
Judge C 6 4 9 8 1 2 3 10 5 7
Use Rank correlation coefficient to determine which pair of judges has the nearest approach to common taste
in beauty.
17. Calculate the coefficient of correlation by any suitable method:
What were (a) the mean values of X and Y, (b) σy , c) the co-efficient of correlation between X and Y?
25. Given
X- Series Y- Series
Arithmetic Mean 18 100
Standard Deviation 14 20
Coefficient of correlation between X and Y is + 0.8. Find out
(a) The most probable value of Y if X is 70 and most probable value of X if Y is 90.
(b) If the regression coefficients are 0.8 and 0.6, what would be the value of the coefficient of correlation?
26. Given that the means of X and Y are 65 and 67, their standard deviations are 2.5 and 3.5 respectively and the
coefficient of correlation between them is 0.8.
(i) Write down the equations of the regression lines
(ii) Obtain the best estimate of X when Y = 70
(iii) Using the estimated value of X as the given value of X, estimate the corresponding value of Y.
27. The correlation coefficient between the variables X and Y is r = 0.60. If σx = 1.50, σy = 2.00, X = 10, Y = 20,
find the equations of the regression lines (i) Y on X (ii) X on Y.
28. Find out σy and r from the following data: 3x = y, 4y = 3x and σx = 2.
29. Given that the regression equations of Y on X and X on Y are respectively Y = X and 4X-Y = 3. Find the
correlation coefficient between X and Y.
30. From the following data calculate (i) coefficient of correlation (ii) Standard deviation of Y.
X = 0.854 Y; Y = 0.89X; =3
31. If the two lines of regression are
4X – 5Y + 30 = 0 and 20X – 9Y–107 = 0
Which of these is the line of regression of X on Y. Find r and when = 3.
32. From the following regression equations, calculate
20x – 9Y = 107
4X – 5Y = – 33
33. The following table gives the age of car of a certain make and annual maintenance costs. Obtain the regression
equation for cost related to age, Estimate maintenance cost of a car whose age is10 Years.
Age of cars (X) in years 2 4 6 8
Maintenance Cost in hundreds of ` (Y) 10 20 25 30
Exercise:
Theoretical Questions
Multiple Choice Questions (MCQ)
1. If bXY and bYX are regression coefficients of series X on series Y and regression coefficients of series Y on
series X respectively then which one of the following is correct?
(a) bXY × bYX = r , where r is the correlation coefficient
(b) bXY × bYX = r 2 , where r is the correlation coefficient
(c) bXY × bYX = − r , where r is the correlation coefficient
(d) bXY × bYX = 1/ r , where r is the correlation coefficient
2. If bXY and bYX are regression coefficients of series X on series Y and regression coefficients of series Y on
series X respectively then which one of the following is correct?
(a) bXY and bYX will be either both positive or both negative
(b) bXY will be positive and bYX will be negative
(b) bXY will be negative and bYX will be positive
(d) Nothing can be said like this, it depends on X & Y values
3. Say true or false:
“If r is the correlation coefficient between two series X & Y then covariance between X & Y is given as “r
× variance of series X × variance of series Y ”
4. Match the items in column A with the items in column B
A B
i) is used to obtain the best estimates of X for
a) Y − Y given values of Y
b) X − X = bXY (Y − Y ) ii) is equal to r × σ X
1
c) bYX = iii) is equal to bYX ( X − X )
bXY
7. If bXY & bYX are regression coefficients between X on Y and Y on X respectively and r is the correlation
coefficient between X and Y then
bXY + bYX
(a) ≤r
2
bXY + bYX
(b) ≤ r2
2
b +b
(c) XY YX ≥r
2
bXY + bYX
(d) ≥ r2
2
8. If bXY & bYX are regression coefficients between X on Y and Y on X respectively then
9. In a regression equation
(a) Regression coefficient represents the increment in the value of the independent variable for a unit
change in the value of the dependent variable
(b) Regression coefficient represents the increment in the value of the dependent variable for a unit change
in the value of the independent variable
(c) Regression coefficient represents the mean value of the independent variable for a unit change in the
value of the dependent variable
(d) Regression coefficient represents the mean value of the dependent variable for a unit change in the
value of the independent variable
11. In a bivariate regression analysis ΣXY = 1355.25, (ΣX) (ΣY) = 6396, ΣX2 = 591.50 & ΣX = 52. If there are
5 items then bYX
(a) 1
(b) 0.97
(c) 0.667
(d) 1.5
12. X = 1.36Y – 5.2 & Y = 0.61X + 1.51 are two regression equations. Correlation coefficient between
is
(a) – 0.67
(b) – 0.911
(c) 0.911
(d) 0.67
A B
a) Coefficient of correlation i) is a functional relationship which shows dependence
of one variable on the other
b) Arithmetic mean of regression ii) is the geometric mean between regression coefficients
coefficients
c) Regression Analysis iii) is the mean values of the variables X and Y in case of
two variables case
d) Intersection point of lines of regression iv) is greater than equal to correlation coefficient
15. In a bivariate regression analysis the difference between actual value of dependent variable and the
predicted value of the dependent variable is called
(a) Outlier
(b) Slope
(c) Residual
(d) Scattered point
17. In a bivariate regression analysis for dependent variable if d = Actual value – Predicted value then at
different values of independent variable
(a) Best fit curve occurs when d 2 + d 2 + ... ... ... + d 2 is minimum
1 2 n
(b) Best fit curve occurs when d12 + d22 + ... ... ... + dn2 is maximum
(c) Best fit curve occurs when d 2 + d 2 + ... ... ... + d 2 is zero
1 2 n
(d) Best fit curve occurs when d12 + d22 + ... ... ... + dn2 is one
19. In a bivariate analysis if two regression equations are mx – y + 10 = 0 & – 2x + 5y = 14. If coefficient of
correlation between x & y is 1 , then value of m is
10
(a) 10
(b) 5/2
(c) 4
(d) 1
20. In a bivariate analysis if two regression equations are 8x – 10y + 66 = 0 & 40x – 18y – 214 = 0. Then x ,
y , the mean of the series x & y care respectively
(a) 13, 17
(b) 17, 17
(c) 5/4, 20/9.
(d) 8, 18
Answer:
1. 2. 3. 4. 5.
(b) (a) False (a) (iii), (b) (i), (c) (iv), (d) (ii) (b)
6. 7. 8. 9. 10.
(d) (c) (a) (b) (b)
11. 12. 13. 14. 15.
(d) (c) (a) (a) (ii), (b) (iv), (c) (i), (d) (iii) (c)
16. 17. 18. 19. 20.
(d) (a) (d) (c) (a)
PROBABILITY
single possible outcome. For example, in rolling a die, the chance of getting 2 is a simple event. Further in tossing
a die, chance of getting event numbers (1, 3, 5) are compound event.
Sample space
The set or aggregate of all possible outcomes is known as sample space. For example, when we roll a die, the
possible outcomes are 1, 2, 3, 4, 5, and 6 ; one and only one face come upwards. Thus, all the outcomes—1, 2, 3, 4,
5 and 6 are sample space. And each possible outcome or element in a sample space called sample point.
Mutually exclusive events or cases
Two events are said to be mutually exclusive if the occurrence of one of them excludes the possibility of the
occurrence of the other in a single observation. The occurrence of one event prevents the occurrence of the other
event. As such, mutually exclusive events are those events, the occurrence of which prevents the possibility of the
other to occur. All simple events are mutually exclusive. Thus, if a coin is tossed, either the head can be up or tail
can be up; but both cannot be up at the same time.
Similarly, in one throw of a die, an even and odd number cannot come up at the same time. Thus two or more
events are considered mutually exclusive if the events cannot occur together.
Equally likely events
The outcomes are said to be equally likely when one does not occur more often than the others.
That is, two or more events are said to be equally likely if the chance of their happening is equal. Thus, in a throw
of a die the coming up of 1, 2, 3, 4, 5 and 6 is equally likely. For example, head and tail are equally likely events
in tossing an unbiased coin.
Exhaustive events
The total number of possible outcomes of a random experiment is called exhaustive events. The group of events
is exhaustive, as there is no other possible outcome. Thus tossing a coin, the possible outcome are head or tail;
exhaustive events are two. Similarly throwing a die, the outcomes are 1, 2, 3, 4, 5 and 6. In case of two coins, the
possible number of outcomes are 4 i.e. (22), i.e., HH, HT TH and TT. In case of 3 coins, the possible outcomes are
23=8 and so on. Thus, in a throw of n” coin, the exhaustive number of case is 2n.
Independent Events
A set of events is said to be independent, if the occurrence of any one of them does not, in any way, affect the
Occurrence of any other in the set. For instance, when we toss a coin twice, the result of the second toss will in no
way be affected by the result of the first toss.
Dependent Events
Two events are said to be dependent, if the occurrence or non-occurrence of one event in any trial affects the
probability of the other subsequent trials. If the occurrence of one event affects the happening of the other events,
then they are said to be dependent events. For example, the probability of drawing a king from a pack of 52 cards
is 4/52, ; the card is not put back; then the probability of drawing a king again is 3/51. Thus the outcome of the
first event affects the outcome of the second event and they are dependent. But if the card is put back, then the
probability of drawing a king is 4/52 and is an independent event.
Simple and Compound Events
When a single event take place, the probability of its happening or not happening is known as simple event.
When two or more events take place simultaneously, their occurrence is known as compound event (compound
probability); for instance, throwing a die.
Complementary Events
The complement of an events, means non-occurrence of A and is denoted by . contains those points of the sample
space which do not belong to A. For instance let there be two events A and B. A is called the complementary event
of B and vice verse, if A and B are mutually exclusive and exhaustive.
Favourable Cases
The number of outcomes which result in the happening of a desired event are called favourable cases to the event.
For example, in drawing a card from a pack of cards, the cases favourable to “getting a diamond” are 13 and to
“getting an ace of spade” is only one. Take another example, in a single throw of a dice the number of favourable
cases of getting an odd number are three -1,3 and 5.
MEASUREMENT OF PROBABILITY
The origin and development of the theory of probability dates back to the seventeenth century. Ordinarily speaking
the probability of an event denotes the likelihood of its happening. A value of the probability is a number ranges
between 0 and 1. Different schools of thought have defined the term probability differently. The various schools of
thought which have defined probability are discussed briefly.
Classical Approach (Priori Probability)
The classical approach is the oldest method of measuring probabilities and has its origin in gambling games.
According to this approach, the probability of an event is the ratio of favourable outcomes to the total number of
mutually exclusive, exhaustive and equally likely outcomes. If we toss a coin we are certain that the head or tail
will come up. The probability of the coin coming down is 1, of the head coming up is 1 and of the tail coming up
2
is 1 . It is customary to describe the probability of one event as ‘p’ (success) and of the other event as ‘q’ (failure)
2
as there is no third event.
3. When the outcomes of a random experiment are not equally likely, this method cannot be applied.
4. It is difficult to subdivide the possible outcomes of a random experiment into mutually exclusive, exhaustive
and equally likely in most cases.
5. The definition says that the outcomes are equally likely i.e equiprobable. But before finding the probability
how the outcomes can be taken as equiprobable.
Example 1:
What is the chance of getting a king in a draw from a pack of 52 cards?
Solution:
The total number of cases that can happen = 52 (52 cards are there).
4 1
Total number of kings are 4 ; hence favourable cases = 4 Therefore probability of drawing a king = = .
52 13
Example 2:
Two coins are tossed simultaneously. What is the probability of getting a head and a tail?
Solution:
The possible combinations of the outcomes when two coins are tossed are HH, HT, TH, TT. The favourable ways
are two out of these four possible ways and all these are equally likely to happen.
2 1
Hence the probability of getting a head and a tail is = .
4 2
Example 3:
One card is drawn at random from a well-shuffled pack of 52 cards. What is the probability that it will be (a) a
diamond (b) a queen?
Solution:
(a) There are 13 diamond cards in a pack of 52 cards. The number of ways in which a card can be drawn from that
pack is 52. The number of cases favourable to the event of getting a diamond is 13.
Hence probability of drawing a diamond
13 1
=
52 4
(b) There are 4 queens in the pack. So the number of cases favourable to the event of getting a queen = 4
4 1
The required probability =
52 13
Example 4:
Two cards are drawn from a pack of cards at random. What is the probability that it will be (a) a diamond and a
heart (b) a king and a queen (c) two kings?
Solution:
(a) The number of ways of drawing 2 cards from a pack of 52 cards
52 × 51
= 52C2 = = 26 × 51
1× 2
There are 13 each of Diamonds and Hearts in a pack of 52 Cards.
Example 5:
A bag contains 7 red, 12 white and 4 green balls. What is the probability that :
(a) 3 balls drawn are all white and
(b) 3 balls drawn are one of each colour ?
Solution:
(a) Total number of balls
= 7 +12 + 4 = 23
Total number of possible ways of drawing 3 out of 23 balls
23 23 × 22 × 21 × 20
= 23C3 = 3 ⋅ 23 − 3 = 3 × 2 × 1 × 20 = 1771
The happening of an event is determined on the basis of past experience or on the basis of relative frequency
of success in the past. For instance, a machine produces 10% unacceptable articles of the total output. On the
basis of such experience or experiments, we may arrive at that (i) the relative frequency obtained on the basis
of past experience can be shown to come very close to the classical probability. For example, as said earlier, a
coin is tossed for 6 times, we may not get exactly 3 heads and 3 tails. But, the coin is tossed for larger number of
times, say 10,000 times, we can expect heads and tails very close to 50% (ii) There are certain laws, according to
which the ‘occurrence’ or ‘non-occurrence of the events take place. Posterior probabilities, also called Empirical
Probabilities are based on experiences of the past and on experiments conducted. Thus, relative frequency can be
termed as a measure of probability and it is calculated on the basis of empirical or statistical findings. For instance
if a machine produces 100 articles in the past, 2 particles were found to be defective, then the probability of the
defective articles is 2/100 or 2%.
Limitations of Relative Frequency Theory of Probability
1. The experimental conditions may not remain essentially homogeneous and identical in a large number of
repetitions of the experiment.
2. The relative frequency —, may not attain a unique value no matter however large N may be.
3. Probability P(A) defined can never be obtained in practice. We can only attempt to get a close estimate of P(A)
by making N sufficiently large.
Example 6:
An urn contains 8 white and 3 red balls. If two balls are drawn at random, find the probability that (a) both are
white, (b) both are red and (c) one is of each colour.
Solution:
Total number of balls in the urn = 8 + 3 =11
Two balls can be drawn out of 11 balls in 11C2 ways.
11 × 10
Exhaustive number of outcomes = 11C2 = = 55.
2
8×7
(a) Two white balls to be drawn out of 8 white. It can be done in 8C = = 28 ways.
2 2
28
The probability that both the balls drawn are white =
55
(b) Two red balls to be drawn out of 3 red balls. It can be done in 3C2 = 3 ways.
3
Hence, the probability that both the balls drawn are red =
55
(c) The number of favourable cases for the event-drawing one white and one red ball is
8
C1× 3C1 = 8 × 3 = 24.
24
Therefore, the probability of drawing one red and one white ball =
55
Example 7:
Tickets are numbered from 1 to 100. They are well shuffled and a ticket is drawn at random. What is the probability
that the drawn ticket has:
(a) an even number,
(b) a number 5 or a multiple of 5,
(c) a number which is greater than 75,
(d) a number which is a square?
Solution:
(a) The total number of exhaustive, mutually exclusive and equally likely outcomes is 100. There are 50 even
numbered tickets.
(c) Between 1 & 100 there are 25 numbers, which are greater than 75. Say B denote the event that the number on
the drawn ticket is greater than 75.
25 1
Therefore, P( B ) = =
100 4
(d) Between 1 & 100 there are 10 numbers which are perfect squares i.e., 1, 4, 9, 16, 25, 36, 49, 64, 81, 100.
Let C denotes to event that the number on the drawn ticket is a perfect square.
10 1
Therefore, P(C ) = =
100 4
Example 8:
Four cards are drawn one by one from a pack of 52 cards without replacement. What is the probability that they
are all of different suits?
Solution:
There are 52 cards in a full pack which belong to 4 suits @13 each. The first card can be drawn in 52C ways.
1
As this is not replaced, there remains 51 cards before drawing teh second one.
This way 4 cards can be drawn in 52C × 51C × 50C × 49C = 52 × 51 × 50 × 49 ways.
1 1 1 1
Now the drawn cards should be of 4 different suits.
( )
Hence the first card can be of a particular suit in 4C1 × 13C1 = 4 × 13 = 52 ways
Before drawing the second done, there remains 3 different suits. Hence the second card can be of a suit other than
( )
the first are in 3C1 × 13C1 = 3 ×13 = 39
( )
Similarly the third one can be a suit other than the first two in 2C1 × 13C1 = 2 ×13 = 16 ways
( )
The last one can be drawn in 1C1 × 13C1 = 1 × 13 = 13 ways
13 13
50 × 39 × 26 × 13 2197
So the required probability is =
52 × 51 × 50 × 49 20825
17 25
Primary applications of
Probability Theorems 7.2
Theorems of Probability
We have studied what probability is and how it can be measured. We dealt with simple problems. Now we shall
consider some of the laws of probability to tackle complex situation. There are two important theorems, viz., (1)
the Addition Theorem and (2) the Multiplication Theorem.
Addition Theorem
The simplest and most important rule used in the calculation is the addition rule, it states, “If two events are
mutually exclusive, then the probability of the occurrence of either A or B is the sum of the probabilities of A and
B. Thus,
P(A or B) = (P + B) = P(A) + P(B), when A and B are mutually exclusive.
Example 9:
A bag contains 4 white, 3 black and 5 red balls. What is the probability of getting a white or a red ball at random
in a single random draw?
Solution:
4
The probability of getting a white ball =
12
5
The probability of getting a red ball =
12
4 5 9 9
The probability of getting a white or a red = + = = × 100 = 75%
12 12 10 12
When events are not mutually exclusive
The addition theorem studied above is not applicable when the events are not mutually exclusive. In such cases
where the events are not mutually exclusive, the probability is :
P(At least one of A or B) = P (A + B) P(A) + P(B) – P(A and B), when A and B are not mutually exclusive
Example 10:
Two students X and Y work independently on a problem. The probability that A will solve it is 3/4 and the
probability that Y will solve it is 2/3. What is the probability that the problem will be solved?
Solution:
The problem will be solves if at least one of X and Y solve it
P(A least one of A or B) = P(A) + P(B) – P (A and B)
Multiplication Theorem
When it is desired to estimate the chances of the happening of successive events, the separate probabilities of these
successive events are multiplied. If two events A and B are independent, then the probability that both will occur
is equal to the product of the respective probabilities. We find the probability of the happening of two or more
events in succession.
P(A and B) = P(AB) = P(A) × P(B) when A and B are independent
Example 11:
In two tosses of a fair coin, what are the chances of head in both ?
Solution:
Probability of head in first toss = 1/2
Probability of head in the second toss = 1/2
Probability of head in both tosses = 1/2 ×1/2 = 1/4
Example 12:
The probability that X and Y will be alive ten years hence is 0.5 and 0.8 respectively. What is the probability that
both of them will be alive ten years hence?
Solution:
Probability of X being alive ten years hence = 0.5
Probability of Y being alive ten years hence = 0.8
Probability of X and Y both being alive ten years hence = 0.5 × 0.8 = 0.4
P( AB ) A P( AB )
P( B / A) = ; P =
P ( A) B P( B )
B A
P (A & B) = P (AB) = P( A) ⋅ P A = P( B ) ⋅ P B when A and B are not independent
Example 13:
A man want to marry a girl having qualities: White complexion the probability of getting such girl is 1 in 20.
Professionally qualified - the probabihty of getting is 1 in 50. Westernised style - the probability is 1 in 100.
Find out the probability of his getting married to such a girl, who has all the three qualities.
Solution:
1
The probability of a girl with white complexion = or 0.05. The probability of a girl with professional qualification
20
1 1
= or 0.02. The probabihty of a girl with westernised style = or 0.01. Since the events are independent, the
50 100
1 1 1
probabihty of getting married to a girl having all three qualities = 20 × 50 × 100 = 0.05 × 0.02 × 0.01 = 0.00001
Example 14:
A university has to select an examiner from a list of 50 persons, 20 of them are women and 30 men. 10 of them
knows Hindi and 40 not. 15 of them are teachers and the remaining 35 are not. What is the probability of the
University selecting a Hindi-knowing woman teacher?
Solution:
20
Probability of selecting a woman =
50
15
Probability of selecting a teacher =
50
10
Probability of selecting a Hindi-knowing candidate =
50
Since the events are independent the probabihty of the University selecting a Hindi-knowing woman teacher is:
20 15 10 3
× × = or 0.024.
50 50 50 125
Example 15:
A ball is drawn at random from a box containing 6 red balls, 4 white balls and 5 blue balls. Determine the probability
that it is :
(i) Red (ii) white, (iii) Blue, (iv) Not Red and (v) Red or White.
Solution:
There are 6 Red, 4 White and 5 Blue balls i.e 6 + 4 + 5 = 15 balls in the box.
6
(i) Probability of Red = or 0.40
15
4
(ii) Probability of white = or 0.267
15
5
(iii) Probability of Blue = or 0.333
15
9
(iv) Probability of not Red = or 0.60
15
6 4 10
(v) Probability of Red or White + = = 0.667
15 15 15
BAYES’ THEOREM
This theorem is associated with the name of Reverend Thomas Bayes. It is also known as the inverse probability.
Probabilities can be revised when new information pertaining to a random experiment is obtained. One of the
important applications of the conditional probability is in the computation of unknown probabilities, on the basis
of the information supplied by the experiment or past records. That is, the applications of the results of probability
theory involves estimating unknown probabilities and making decisions on the basis of new sample information.
This concept is referred to as Bayes’ Theorem. Quite often the businessman has the extra information on a particular
event, either through a personal belief or from the past history of the events. Revision of probability arises from a
need to make better use of experimental information. Probabilities assigned on the basis of personal experience,
before observing the outcomes of the experiment are called prior probabilities. For example, probabilities assigned
to past sales records, to past number of defectives produced by a machine, are examples of prior probabilities.
When the probabilities are revised with the use of Bayes’ rule, they are called posterior probabilities. Bayes’
theorem is useful in solving practical business problems in the light of additional information. Thus popularity of
the theorem has been mainly because of its usefulness in revising a set of old probability (Prior Probability) in the
light of additional information made available and to derive a set of new probabilily (i.e. Posterior Probability)
Bayes’ Theorem: An event A can occur only if one of the mutually exclusive and exhaustive set of events B1, B2,
..... Bn occurs. Suppse that the unconditional probabilities P(B1), P(B2), .... P(Bn) and the conditional probabilities
P(A/B1), P(A/B2), .... P(A/Bn).
are known. Then the conditional probability P(Bi /A) of a specific event Bi, when A is stated to have actually
accquared, is given by
P(B1) ⋅ P( A / Bi )
P(B1 / A) = n
∑ P( B ) ⋅ P( A / B )
i =i
1 i
Example 16:
You note that your officer is happy on 60% of your calls, so you assign a probability of his being happy on your
visit as 0.6 or 6/10. You have noticed also that if he is happy, he accedes to your request with a probability of 0.4
1
or 4/10 whereas if he is not happy, he accedes to the request with a probability of 0.1 or . You call one day, and
10
he accedes to your request. What is the probability of his being happy ?
Solution:
Let- H be the event that the officer is happy and H be the event that the officer is not happy
6 (Given) P( H ) = 1 − P( H ) = 1 − 6 = 4
P( H ) = 10 10
10
Let A be the event that he accedes to your request
4 , 1 (As per given in formation)
P( A / H ) = P( A / H ) =
10 10
To find P(H/A), we use Bayes’ Theorem as follows–
P(H / A) =
( )
P( H ) × P A H
=
6 4
10
×
10
A( )
P( H ) × P H + P( H ) × P
A
H ( )
6 4 4 1
⋅ + ⋅
10 10 10 10
24
100 24 6
= = = = 0.857
24 4 28 7
+
100 100
Example 17:
A company has two plants to manufacture scooters. Plant I manufactures 80% of the scooters and plant II
manufactures 20%. At Plant I, 85 out of 100 scooters are rated standard quality or better. At Plant II, only 65 out of
100 scooters are rated standard quality or better. What is the probability that the scooter selected at random came
from Plant I if it is known that the scooter is of standard quality?
What is the probability that the scooter came from Plant II if it is known that the scooter is of standard quality.
Solution:
Let A1 be the event of drawing a scooter produced by Plant I and A2 be the event of drawing a scooter produced by
Plant II. B be the event of drawing a standard quality scooter produced by either Plant I or Plant II
Then, from the first information :
80 20
P( A1) = = 80% = 0.80 and P( A2 ) = = 20% = 0.20
100 100
0.68 68
A1 0.80 0.85 0.68 =
0.81 81
0.13 13
A2 0.20 0.65 0.13 =
0.81 81
130 130 13
= = =
680 + 130 810 81
From the first information we may say that the standard scooter is drawn from Plant I since P(A1) = 80% which is
greater than P(A2) = 20%,
From the additional information i.e. at Plant I, 85 out of 100 and at Plant II 65 out of 100 are rated standard quality,
we can give better answer, Thus we may conclude that the standard quality of scooter is more likely drawn from
the output by Plant I.
The same process i.e. revision can be repeated if more information is made available. Thus it is a good theorem in
improving the quality of probability in decision making under uncertainty.
Example 18:
Box I contains three defective and seven non-defective balls, and Box II contains one defective and nine non-
defective balls. We select a box at random and then draw one ball at random from the box.
(c) What is the probability that box I was chosen, given a defective ball is drawn?
Solution:
As no specific information about the look of the boxes are provided, it is assumed that they ae identical in apperance.
1
So P(B1) or Probability that Box I is chosen =
2
1
P(B2) or Probability that Box II is chosen =
2
Let P(D) - Probability that a defective Ball is drawn and P(ND) = Probability that a non-defective Ball is drawn
Joint Probability
1 3 3
(i) Probability of selecting Box I and getting a defective ball from it = × =
2 10 20
1 1 1
(ii) Probability of selecting Box II and getting a defective ball from it = × =
2 10 20
1 7 7
(iii) Probability of selecting Box I and getting a non defective ball from it = × =
2 10 20
1 9 9
(iv) Probability of selecting Box II and getting a non defective ball from it = 2 × 10 = 20
(a) P(ND) = P (Box I and non-defective) + P (Box II and non-defective) = P [Case (iii)] + P [Case (iv)]
= ( 1 7
×
2 10)(1 9
+ ×
2 10
= )
16
20
= ( 1 3
×
2 10)(1 1
+ ×
2 10
=
4
)
20
P( B1 and D) 3 / 20 3
P( B1 / D) = = =
P( D) 4 / 20 4
B B
P(B1) and P(B2) are called prior probabilities and P 1 and P 2 are called posterior probabilities. The above
D D
information is summarised in the following table :
ODDS
We must know the concept of odds. The word “Odds” is frequently used in statistics. Odds relate the chances in
favour of an event to the chances against it. For instance, the odds are 2 : 1 that A will get a job, means that there are
2 chances that he will get the job and 1 chance against his getting the job. This can also be converted into probability
as getting the job = 2/3. Therefore, if the odds are a : b in favour of an event then P(A) = a/(a + b). Further, it may
be noted that the odds are a : b in favour of an event is the same as to say that the odds are b : a against the event.
If the probability of an event is p, then the odds in favour of its occurrence are p to (1-p) and the odds against its
occurrence are 1-p to p.
Example 19:
Suppose it is 11 to 5 against a person A who is now 38 years of age living till he is 73 and 5 to 3 against B who is
43 living till he is 78. Find the chance that at least one of these persons will be alive 35 years hence.
Solution:
11 11
The probability that A will die within 35 years = =
11 + 5 16
5 5
The probability that B will die within 35 years = =
5+3 8
The probability that both of them will die within 35 years
11 5 55
= × =
16 8 128
The probability that both of them will not die i.e. atleast one of them will be alive
55 73 73
= 1− = or × 100 = 57%
128 128 128
Example 20:
Two cards are drawn at random one by one without replacement from a well-shuffled pack of 52 cards. What is
the probability that :
(a) both are aces,
Solution:
(a) Let A indicate the event of drawing an ace. So drawing of aces on both occassions can be denoted as AA.
A
P( AA) = P( A) × P
A
P(A) : Probability of drawing of an ace first
P ()
A
A
: Probability of an ace at the second draw, given that the first was an ace.
4
Therefore, P(A) = [As those are 4 aces in a pack of 52 cards]
52
A 3
P = [After drawing an ace for the first time there remains 51 cards in the pack of which 3 are aces.
A 51
4 5 1
P( AA) = × =
52 51 221
(b) Let R indicate the event of drawing a red card. So the event of drawing red cards on both occassions can be
denoted as RR
R
P( RR) = P( R) × P
R
26 25
= × [As there are 26 red cards in a pack of 52 cards and also the remains 51 cards after the first drawing
52 51
of which 25 are red]
25
=
102
(c) Let E indicate the event of drawing not an ace. Then the probability that no aces are drawn on both occassions
is indicated as P(EE). Probability of not drawing an ace :
E
P( EE ) = P( E ) × P
E
48 47 188
= × =
52 51 221
Example 21 :
The odds in favour of a certain event are 2 to 5 and the odds against another event independent of the former are 5
to 6. Find the chance that at least one of the events will happen.
Solution:
Odds in favour of the 1st event (A, let) = 2:5
2 2
So, P(A) = =
2+5 7
Odds against the 2nd event (B, let) = 5:6
6 6
So, P(A) = =
5 + 6 11
Probability that at least are of the events will happen = P(A+B) = P(A) + P (B) – P(AB)
2 6 2 6
or, P(A+B) = + − × [As A & B are independent, P(AB) = P(A) × P(B)]
7 11 7 11
2 6 12
or, P(A+B) = + −
7 11 77
22 + 44 − 12
or, P(A+B) =
77
52
or, P(A+B) =
77
Alternatively:
Probability that the first event does not happen
2 5
= 1− =
7 7
Probability that the second event does not happen
6 5
= 1− =
11 11
The chance that both do not happen
5 5 25
= × = [As the events are independent]
7 11 77
25 52
The chance that one at least will happen = 1 − =
77 77
Example 22:
What is the chance that a leap year, selected at random will contain 53 Sundays?
Solution:
As a leap year consists of 366 days, it contains 52 complete weeks (i.e 52 Sunday for sure) and two more days.
The two consecutive days may appear in either of the following combinations :
(a) Monday and Tuesday
Example 23:
A problem in statistics is given to three students A, B, C whose chances of solving it are 1/2, 1/3, 1/4 respectively.
What is the probability that the problem will be solved?
Solution:
1 1
The probability that A fails to soive the problem = 1 − =
2 2
1 2
The probability that B fails to solve the problem = − =
3 3
1 3
The probability that C fails to solve the problem = 1 − =
4 4
1 2 3 1
The probability that the problem is not solved by A, B and C = 2 × 3 × 4 = 4 (As the events are independent)
1 3
Therefore, the probability that the problem is solved = 1 − =
4 4
Example 24:
An ordinary die is tossed twice and the difference between the number of spots turned up is noted. Find the
probability of a difference of 3.
Solution:
The sample space consists of 36 values.
The event space has the following 6 cases : (1, 4), (2, 5), (3, 6), (4, 1), (5, 2), (6, 3)
6
The required probability =
36
Example 25:
From a pack of 52 cards, two cards are drawn at random ; find the chance that one is a knave and the other a queen.
Solution:
No. of elements in the Sample space = 52C2
Example 26:
A bag contains 7 red balls and 5 white balls. 4 balls are drawn at random. What is the probability that (i) all of them
are red ; (ii) two of them are red and two white?
Solution:
(i) Favourable cases 7C4, Exhaustive cases 12C4
7
C4 105 7
Probability = = =
12
C4 495 33
Example 27:
A petrol pump proprietor sells on an average ` 80,000 worth of petrol on rainy days and an average of ` 95,000 on
clear days. Statistics from the Metereological Department show that the probability is 0.76 for clear weather and
0.24 for rainy weather on coming Monday. Find the expected value of petrol sale on coming Monday.
Solution:
X1 = ` 80,000; P1 = 0.24
X2 = ` 95,000 P2 = 0.76
Example 28:
A bag contains 6 white and 9 black balls. Two drawings of 4 balls are made such that (a) the Balls are replaced
before the second trial (b) the balls are not replaced before the second trial. Find the probability that the first
drawing will give 4 white and the second 4 black balls in each case.
Solution:
(a) When the balls are replaced before the second trial, the number of ways in which 4 balls may be drawn is 15C4
in each drawing
When 4 white balls have been drawn and removed, the bag contains 2 white and 9 black balls.
Therefore at the second trial, 4 balls can be drawn in 11C ways and 4 black balls can be drawn in 9C4 ways So, the
4
chance of 4 black balls at the second trial
9
C4
= 11
C4
1 9×8×7×6 4! 21
= = × =
91 4! 11 × 10 × 9 × 8 55
1 21 3
Therefore the chance of the compound event = 91 × 55 = 715
Example 29:
A salesman is known to sell a product in 3 out of 5 attempts while another salesman in 2 out of 5 attempts. Find
the probability that (i) No sale will be effected when they both try to sell the product and (ii) Either of them will
succeed in selling the product.
Solution:
Let the two salesmen be A and B.
3
P (A) = The probability that the salesman A is able to sell the product =
5
2
P (B) = The probability that the salesman B is able to sell the product =
5
3 2 6
(i) probability that no sale will be effected = 1 − 1 − =
5 5 25
(ii) probability that either of them will succeed in selling the product = P(A + B) = P(A) + P(B) – P(AB)
3 2 3 2 19
= + − × =
5 5 5 5 25
Example 30:
A class consists of 100 students, 25 of them are girls and 75 boys, 20 of them are rich and remaining poor, 40 of
them are fair complexioned. What is the probability of selecting a fair complexsioned rich girl?
Solution:
40 2
Probability of selecting a fair complexioned student = =
100 5
20 1
Probability of selecting a rich student = =
100 5
25 1
Probability of selecting a girl = =
100 4
Since the events are independent, by multiplication rule of probability, the
2 1 1 2
probability of selecting a fair complexioned rich girl = × × = = 0.02
5 5 4 100
Example 31:
Three groups of workers contain 3 men and one woman, 2 man and 2 women, and 1 man and 3 women respectively.
One worker is selected at random from each group. What is the probability that the group selected consists of 1
man and 2 women?
Solution:
There are three possibilities :
(i) Man is selected from the first group and women from second and third group
(ii) Man is selected from the second group and women from first and third groups
(iii) Man is selected from the third group and women from first and second groups.
∴ the probability of selecting a group of one man & two woman
= ( )(
3 2 3
4 4 4
2 1 3
4 4 4
1 1 2
× × + × × + × ×
4 4 4 )( )
18 6 2 13
= + + =
64 64 64 32
Exercise:
Theoretical Questions
Multiple Choice Questions (MCQ)
2. In general probability is
(a) A numerical value between 0 and 1, exclusive, describing the absolute possibility an event will occur
(b) A numerical value between 0 and 1, inclusive, describing the absolute possibility an event will occur
(c) A numerical value between 0 and 1, exclusive, describing the relative possibility an event will occur
(d) A numerical value between 0 and 1, inclusive, describing the relative possibility an event will occur
3. The probability of two events A and B are 0.05 and 0.95 respectively. We can infer that
(a) Event A is more probable to happen
(b) Event B is more improbable to happen
(c) Event B is more probable to happen
(d) Event A & B are sure to happen
4. “Sun will disappear from blue sky today forever”. With our available information & belief which one of
the following value is most appropriate as probability to this event?
(a) 0.2
(b) 0.8
(c) 1
(d) 0
5. For an event Odds in favour are “five to two” This means that
(a) In a total of seven trials the event will occur five times
(b) In a total of seven trials the event will occur two times
(c) In a total of five trials the event will occur two times
(d) In a total of seven trials the event will not occur five times
7. If an experiment has a set of events that includes every possible outcomes, then the set is called
(a) Mutually Exclusive set
(b) Mutually Exhaustive set
(c) Collectively Exhaustive set
(d) Exhaustive & Exclusive set
8. Classical probability is
Number of favourable outcome
(a) Probability of an event = Total number of possible outcome
Number of trials
(d) Probability of an event = Number of possible outcomes
(a) P ( A or B ) = P ( A) + P ( B )
(b) P ( A or B ) = P ( A + B )
(c) P ( A or B ) = P ( A) + P ( B ) − P ( AB )
(d) P ( A or B ) = P ( A + B − AB )
10. If two unbiased coins are tossed once, the probability of getting both the heads is
(a) 0.25
(b) 0.50
(c) 0.75
(d) 1
11. The probability that a leap year selected at random contain 53 Sundays is
(a) 0.143
(b) 1
(c) 0.286
(d) 0.48
12. A lot contains 10 items of which 3 are defective. Three items are chosen from the lot at random one after
another without replacement. The probability that all the three are defective is
(a) 0.008
(b) 0.992
(c) 0.067
(d) 0.05
13. If P ( A) = 0.3, P ( B ) = 0.2 and P (C ) = 0.1 , then assuming A,B and C are independent events, the
probability of occurrence of at least one of the three events is
(a) 0.7
(b) 0.8
(c) 0.006
(d) 0.496
14. In IPL Kolkata Knight Riders plays 70% of their games at night (8 O’clock slot) and 30% during the
day (4 O clock slot). The team wins 50% of their night games and 90% of their day games. According to
today’s newspaper they own yesterday. The probability that the game was played at night is
(a) 0.4667
(b) 0.5645
(c) 0.35
(d) 0.5
15. When two events happen simultaneously which of the following is true?
(a) The outcome of the first event always have an effect on the outcome of the second event
(b) The outcome of the first event may or may not have an effect on the outcome of the second event
(c) The outcome of the first event does not not have any effect on the outcome of the second event
(d) The outcome of the first event have always a 50% effect on the outcome of the second event
16. A survey by Air travelers’ association revealed that 60% of its member made airline reservations last year.
Two members are selected at random. The probability that both the members made airline reservations last
year is
(a) 0.60
(b) 0.40
(c) 0.36
(d) 0.16
17. If an unbiased coin is tossed once, then the two events head and tall are
(a) Mutually exclusive
(b) Exhaustive
(c) Equally likely
(d) All these
19. If p: q are the odds in favour of an event, then the probability of that event is
(a) p/q
(b) p/(p + q)
(c) q/(p + q)
(d) None of these
20. A bag contains 30 balls numbered from 1 to 30. One ball is drawn at random. The probability that the
number of the drawn ball will be multiple of 3 or 7 is
(a) 7/15
(b) 13/30
(c) 1/2
(d) None of these
21. Three coins are tossed together. The probability of getting exactly two heads is
(a) 5/8
(b) 3/8
(c) 1/8
(d) None
22. Two dice are thrown together. The probability of the event that the sum of numbers shown is greater than
5 is
(a) 13/18
(b) 15/18
(c) 1
(d) None
23. Probability of throwing an even number with an ordinary six faced die is
(a) 1/2
(b) 1
(c) 0
(d) -1/2
24. 4 coins are tossed. The probability that there are 2 heads is
(a) 1/2
(b) 3/8
(c) 1/8
(d) None of these
25. A bag contains 10 red and 10 green balls. A ball is drawn from it. The probability that it will be green is
(a) 1/10
(b) 1/3
(c) 1/2
(d) None of these
Answer:
1. 2. 3. 4. 5. 6. 7. 8. 9 10.
(b) (d) (c) (d) (a) (d) (c) (a) (a) (a)
11. 12. 13. 14. 15. 16. 17. 18. 19 20.
(c) (a) (d) (b) (b) (c) (d) (a) (b) (b)
21. 22. 23. 24. 25.
(b) (a) (a) (b) (c)
PRICE INDEX:
Aggregative Method:
(a) Simple average or simple aggregative method
∑ P1
P01 = × 100
∑ P0
Where
P01 = Price index Number for the current year 1 w.r.t the base year 0.
Illustration 1. From the following details calculate price index using simple aggregative method:
Commodities Units Base Year Price (P0 in `) Current Year Price Current Year Price (P2 in `)
(P1 in `)
Butter kg 20 23 36
Biscuits kg 10 14 19.5
Eggs Dozen 3.6 4.25 6
Vegetable oil kg 8 10.75 18
Bread 400 gms 0.7 0.95 1.25
Total — 42.3 52.95 80.75
∑ P1 52.95
P01 = × 100 = × 100 = 125.177
∑ P0 42.3
ΣP2 80.75
P02 = × 100 = × 100 = 190.898
ΣP0 42.3
P01 =
∑PW × 100
1
∑PW
0
Where
P01 = Price index Number for the current year 1 w.r.t the base year 0
Illustration 2. From the following details calculate price index using weighted aggregative method
P01 =
∑PW × 100 = 5.823 × 100 = 162.88
1
∑PW0
3.575
P01 =
∑Pq
1 0
× 100
∑P q
0 0
Where
P01 = Price index Number for the current year 1 w.r.t the base year 0
P1 = Prices for the current period
P0 = Prices for the base period, q0 = Quantity of base period
Illustration 3. From the following details calculate price index using Laspeyres’ Method:
Answer:
Calculations for Laspeyres’ Price Index Number
P01 =
∑Pq 1 1
× 100
∑P q 0 1
Illustration 4. From the data of the above illustration calculate price index using Paasche’s Method:
Answer:
Calculations for Paasche’s Price Index Number
P01 = L × P =
∑Pq × ∑Pq
1 0 1 1
× 100
∑P q ∑P q
0 0 0 1
Where:
L = Price index by Laspeyres’ Method
P = Price index by Paasche’s Method
Illustration 5. From the data of the above illustration calculate price index using Fisher’s Method:
Answer:
∑Pq + ∑Pq1 0 1 1
P01 =
L+P
× 100 =
∑P q ∑P q0 0 0 1
× 100
2 2
Illustration 6. From the data of the above illustration calculate price index using Bowley’s Method:
Answer:
∑Pq + ∑Pq
1 0 1 1
Although both the methods follow Weighted Aggregative method but there are differences:
� In Laspeyres’ method since the quantities of the base year are used as weights, the influence of price changes
on quantity demanded would not get reflected in index numbers.
� But this would be reflected in Pasche’s method where the quantities of the current year are used as weights.
� Laspeyres’ method represents the cost of maintaining the same rate of consumption or production as in the base
year but at current year’s price, whereas Pasche’s method represents the cost of consumption or production as a
whole in the current year as compared with that in the base year. i.e. effects of changes in prices on the quantity
consumed in te current period do not get reflected in Laspeyres’ method but get reflected in Pasche’s method.
� Laspeyres’ method is basically upward biased whereas Pasche’s method is downward biased
To overcome these difficulties Fisher’s and Bowley’s methods are applied to take into account the influence of
current as well as the base year.
Fisher’s method is known as Ideal due to the following reasons:
� It is free from bias, since the upward bias of Laspeyres’ method is balanced to a great extent by the downward
bias of Pasche’s method
� This method takes into account the influence of the current as well as the base year
� It is based on the geometric mean, theoretically which is considered to be the best average for constructing
index numbers
Relatives Method:
Under this method the price of each commodity in the current year is expressed as a percentage of the price of the
base year. This is known as “Price Relative” and is given by the formula
Where
P1 = Price of a commodity in the current year
P0 = Price of a commodity in the Base year
P1
P = Price Relative = × 100
P0
n = number of commodities
QUANTITY INDEX:
(a) Simple aggregative quantity index:
Q01 =
∑q 1
× 100
∑q 0
Q01 =
∑q P × 100
1 0
∑q P
0 0
Q01 =
∑q P × 10
1 1
∑q P
0 1
Q01 = L × P =
∑q P × ∑q P × 100
1 0 1 1
∑q P ∑q P
0 0 0 1
∑Q 1 q1
� Using AM: Q01 = n = n = ∑ q × 100
0
Q
� Using GM: Q01 = Antilog ∑ log
n
EXERCISE:
1. From the following compute Laspeyres’ & Paasche’s Price index.
Answer:
Laspeyres’ Price Index:
Calculations for Laspeyres’ Price Index
Commodity P1 P0 q0 P1 q0 P0 q0
A 5.2 3.6 20 104 72
B 2.4 1 30 72 30
C 12 8 50 600 400
D 5 2.5 100 500 250
Total – – – 1276 752
P01 =
∑Pq1 0
× 100 =
1276
× 100 = 169.68
∑P q
0 0
752
Paasche’s Method:
Calculations for Paasche’s Price Index
Commodity P1 P0 q1 P1 q1 P0 q1
A 5.2 3.6 15 78 54
B 2.4 1 25 60 25
C 12 8 40 480 320
D 5 2.5 60 300 150
Total 918 549
P01 =
∑Pq
1 1
× 100 =
918
× 100 = 167.21
∑P q
0 1
549
Answer: (b)
Answer: (c)
∑Pq + ∑Pq
1 0 1 1
1276 918
Bowley’s Price Index: = P01 =
L+P
× 100 =
∑P q ∑P q
0 0 0 1
+
× 100 = 752 549 × 100 = 168.44
2 2 2
4. Calculate Laspeyres’ and the Paasche’s Quantity index from the following data.
Base Year Current Year
Item
Unit Price Quantity Unit Price Quantity
A 4 10 6.8 11
B 1 8 7.4 10
C 4.5 5 7.5 8
Answer:
Calculations for Laspeyres’ Quantity Index
Commodity P0 q1 q0 q1 P0 q0 P0
A 4 11 10 44 40
B 1 10 8 10 8
C 4.5 8 5 36 22.5
Total – – – 90 70.5
∑q P0 0
70.5
∑q P0 1
124.7
5. S limited sells three types of product A, B and C. Company’s records show the prices and quantities sold of each
type are as follows:
Base Year Current year
Item
Unit Price Quantity Unit Price Quantity
A 30 22 40 30
B 50 31 60 40
C 120 8 99 12
Answer:
(a) Un-weighted price index:
ΣP1 199
P01 = × 100 = × 100 = 99.5
ΣP0 200
Calculations for Unweighted Price Index & Laspeyres’ Aggregative Price Index
Commodity P1 P0 q1 q0 P1 q0 P0 q0
A 40 30 30 22 880 660
B 60 50 40 31 1860 1550
C 99 120 12 8 792 960
Total 199 200 – – 3532 3170
6. On the basis of the following information calculate the Fisher’s Ideal Index Number:
Commodity P1 P0 q1 q0 P1 q0 P0 q0 P1 q1 P0 q1
A 6 2 50 40 240 80 300 100
B 8 4 40 50 400 200 320 160
C 9 6 30 20 180 120 270 180
D 6 8 20 10 60 80 120 160
E 5 10 20 10 50 100 100 200
Total – – – – 930 580 1110 800
So
P01 = L × P =
∑Pq × ∑Pq
1 0 1 1
× 100 =
930 1110
× × 100 = 149.16
∑P q ∑P q
0 0 0 1
580 800
7. Compute a price index from the following data by (a) simple aggregative method and (b) average of price
relatives method (using both arithmetic mean and geometric mean):
Commodity A B C D E F
Price in Base Year 20 30 10 25 40 50
Price in Current Year 25 30 15 35 45 55
Answer:
Calculations for Simple Aggregative Index & Simple Average of Relatives Index
Commodity P0 P1 P1 Log P
Price Relative = × 100
P0
A 20 25 125 2.09691
B 30 30 100 2
C 10 15 150 2.176091
D 25 35 140 2.146128
E 40 45 112.5 2.051153
F 50 55 110 2.041393
Total 175 205 737.5 12.511675
∑P 0
175
1 P1 1
Using AM: P01 = n ∑ P × 100 = 6 × 737.5 = 122.92
0
12.511675
Using GM: P01 = Antilog ( ∑ log P ) / n = Antilog = 121.7
6
8. From the following data prepare Laspeyres’, Paasche’s and Fisher’s quantity index numbers for the year 2 taking
year 1 as the base
Year 1 Year 2
Item Unit Price Quantity Unit Price Quantity
I 5 10 4 12
II 8 6 7 7
III 6 3 5 4
Answer:
Commodity P1 P0 q1 q0 q1 P0 q0 P0 q1 P1 q0 P1
I 4 5 12 10 60 50 48 40
II 7 8 7 6 56 48 49 42
III 5 6 4 3 24 18 20 15
Total – – – – 140 116 117 97
For the sake of simplicity computations are made assuming Year 1 as Yer 0 and Year 2 as Year 1
Q01 =
∑q P × 100 = 140 × 100 = 120.69
1 0
∑q P
0 0
116
Q01 =
∑q P × 100 = 117 × 100 = 120.68
1 1
120.62
∑q P
0 1
97
Q01 = L × P =
∑q P × ∑q P × 100 =
1 0 1 1
1.2069 × 1.2068 × 100 = 120.65
∑q P ∑q P
0 0 0 1
9. Compute the index number of business activity from the following data:
Answer:
Detail computations are:
∑ IW 21250
= = = 212.50
∑W 100
Symbol Series Date Prev. Close Open Price High Price Low Price
ITC EQ 3-Feb-22 232.15 232.15 235.2 231.8
ITC EQ 4-Feb-22 234.45 237.25 238.5 231.55
ITC EQ 7-Feb-22 234.3 234 234.75 228.5
ITC EQ 8-Feb-22 230.2 230.3 232.3 229.05
ITC EQ 9-Feb-22 231.25 232.3 233 228.75
ITC EQ 10-Feb-22 230.15 228.7 233.4 227.75
ITC EQ 11-Feb-22 232.25 232 233.3 229.8
ITC EQ 14-Feb-22 232.45 226 226 218.5
ITC EQ 15-Feb-22 219.45 221 223.5 218.55
ITC EQ 16-Feb-22 223 223.8 224.7 221.85
ITC EQ 17-Feb-22 222.75 223.05 224.35 220.85
ITC EQ 18-Feb-22 222.65 222.65 223.45 221.5
ITC EQ 21-Feb-22 221.9 220.3 221.3 217.15
ITC EQ 22-Feb-22 218 215 216.9 213
ITC EQ 23-Feb-22 214.85 216.8 217.5 215.05
Analysis of time series means an analysis of history and is used by management to make current decisions and
plans based on long term forecasting.
The four components of a time series referred above can be considered to be interacting in additive or multiplicative
fashion to produce the observed values in a time series (here daily closing prices of ITC shares)
Under additive model Observed Values (Y) = Trend (T) + Cyclical Fluctuation (C) + Seasonal Variation (S) +
Irregular Movement (I)
Here S, C and I are absolute quantitative deviations about trend
Under multiplicative model Observed Values (Y) = Trend (T) × Cyclical Fluctuation (C) × Seasonal Variation
(S) × Irregular Movement (I)
Here S, C and I are rates, percentages or index numbers
Under additive model it is assumed that all the four components of the time series operate independently of one
another whereas under multiplicative model it is assumed that the four components although due to different
causes are not necessarily independent and they can affect one another.
Additive model is not appropriate for extending its application to future events but the relative values of factors
under multiplicative model are appropriate for forecasting future behaviour in a time series.
Most of the time series relating to economic and business phenomena conform to the multiplicative model and in
practice additive model occurs rarely. So in this module we discuss time series with multiplicative model.
By now we understood what is called time series, what are its components etc. Now we will learn decomposition
of a time series. Decomposition of a time series refers to the segregation of various components. In the process of
decomposition often the trend has to be found out first. This is because most of the other components especially
short term Seasonal, Cyclical and Irregular can be separated only with reference to Trend
Observed Value (TSCI )
= SCI
Trend (T )
If we plot the closing price of ITC shares with price on the Y-axis and date on X-axis, we get a plot of time series
as follows:
Date vs High Price
240
235
High Price
230
225
220
215
29-Jan-22 3-Feb-22 8-Feb-22 13-Feb-22 18-Feb-22 23-Feb-22 28-Feb-22
Dates
Chart-I
The green part of the chart-I is the time series plot. As seen there are random fluctuations date wise. Sometimes
price goes above the black line and sometimes goes below that line. The black line is called Trend or Secular trend
and it is obtained by smoothening the fluctuations in time series.
Although in Chart-I only a small time period is considered actually long term means more than 1 year.
India’s year wise GDP growth (%) is given in the following table and corresponding time series graph is shown in
Chart II with the trend line
Chart II
Again we observed that there are fluctuations in time series and smoothing out all the fluctuations we get a secular
trend –the black line
Moving Average:
A Moving Average is used in smoothing a time series to see its trend. Usually Moving average will incorporate
cyclical movements also and therefore through moving average we basically do the following:
Observed Value (TSCI)
= SI
Moving Average (Trend T & Cyclical Fluctuation C)
The moving average merely smoothen the fluctuations in the data. This is accomplished by moving the arithmetic
mean values through the time series.
This is illustrated with the following example.
� In this way we repeat the process till we form our last 7 years group which starts from 2007 and ends on 2013
The total sales for the last 7 years is 6+5+4+5+6+7+8 = 41
The average of this total = 41/7 = 5.857
This 7 years total and its average are positioned against the middle year of the group i.e.2010 under column
seven years moving total and seven years moving average
The detail computations are in the following table. Given data of time series and 7 years moving average data are
plotted in a graph shown as Chart III.
Chart III
The black line indicates the 7 years moving average data as per computation table and it is observed that fluctuations
in time series are smoothed out.
As already mentioned in “n years moving average” the value of n depends on the data collected or we can use trial
and error. Let us take the following example:
If we smooth out the fluctuation with “n years moving average” where n = 3 or 5 i.e. if we do 3 or 5 years moving
average then the detail computation s and corresponding plot will be as follows:
Chart IV
Since 5 years moving average reduces the fluctuation in a much better way than that done by 3 years moving
average so with the given production data we should take 5 years moving average.
In chart III perfectly linear trend is observed but in chart V moving average does not result precisely in a strainght
line. This is because (i) periods of oscillation do not have equal length (ii) oscillation do not have identical
amplitudes. Sales, production and other economic and business time series data usually generate not precise linear
trend through moving average but trend can always give long term direction of movement like upward, downward
etc.
Four year, six-year and other even-numbered-year moving averages present one minor problem regarding
positioning the moving totals and moving averages. Let us take the following example:
Let us compute 4 years moving average. Details are in the following table:
2006 11 – – –
42 10.5
2007 9 10.625
43 10.75
2008 14 10.625
42 10.5
2009 9 10.625
43 10.75
2010 10 10
37 9.25 –
2011 10 9.625
40 10
2012 8 – – –
2013 12 – – –
� 1st Moving total comprises of the data for 2005, 2006, 2007 and 2008 i.e. 8, 11, 9 and 14 respectively
� 1st Moving total = (8+11+9+14) = 42
� Since there is no particular year which can be taken as center time period, 42 is positioned between two central
time periods i.e. 2006 and 2007
� Same procedure is applied for 2nd, 3rd, 4th, 5th and 6th moving total i.e. with 43 (11+9+14+9), 42 (9+14+9+10),
43 (14+9+10+10), 37 (9+10+10+8), 40 (10+10+8+12)
� 4 years moving average i.e. 10.5 (42/4), 10.75 (43/4), 10.5 (42), 10.75 (43/4), 9.25 (37/4) & 10 (40/4) are
accordingly placed between two time periods
� Now average of 1st four years i.e.10.5 and average of 2nd four years i.e.10.75 are averaged and this average
10.625 [(10.5+10.75)/2] is centered on 2007.
� Similarly we will get centered moving average against year 2008, 2009, 2010, and 2011.
Chart V
Weighted Moving Average: A moving average uses the same weight for each observation. But weighted moving
average involves selecting a different weight for each data value and then computing a weighted average of the
most recent “n” values as the smoothed value. Most recent observation receives the most weight and the weight
decreases for older data values. Sum of weights must be equal to 1.
Let us take one example. Yearly sales of a business unit are given below in ` ’000:
We are going to find 3 years weighted moving average with weights 0.2, 0.3 and 0.5 respectively.
1st one of the 3 years weighted moving total 0.2 ×5761 + 0.3 × 6148 + 0.5 ×6388.1 Most recent values are given
more weight and oldest value is given the least weight. Sum of the weights must be equal to 1. For the given case
the detail computations are:
** since sum of weights is equal to 1 we will always get weighted moving total and weighted moving average
same value
1st weighted moving total 0.2 × 5761 + 0.3 × 6148 + 0.5 × 6783 = 6388.1
6388.1 6388.1
So weighted moving average = = = 6388.1
0.2 + 0.3 + 0.5 1
Chart VI
Illustrations
1. Determine a three year moving average for the sales of a Maruti Udyog limited.
Answer:
2. Calculate a four-quarter weighted moving average for the number of shares outstanding for a company for the
nine quarters of data. The data are reported in thousands. Apply weights of 0.1, 0.2, 0.3 and 0.4 respectively for
Q1, Q2, Q3 & Q4.
Year Quarter No of shares
Outstanding
2015 Q1 28766
Q2 30057
Q3 31336
Q4 33240
2016 Q1 34610
Q1 35102
Q1 35308
Q1 35203
2017 Q1 34386
Answer:
1st four quarter weighted moving average is 31584.8
It is found by ( 28766 × 0.1 + 30057 × 0.2 + 31336 × 0.3 + 33240 × 0.4 ) / ( 0.1 + 0.2 + 0.3 + 0.4 )
Q2 30057 – –
31584.8
Q3 31336 32336.85
33088.9
Q4 33240 33647.15
34205.4
2016 Q1 34610 34552.6
34899.8
Q2 35102 35027.4
35155
Q3 35308 35021.05
34887.1
Q4 35203 – –
2017 Q1 34386 – –
3. Using three year moving average determine the trend and short term fluctuations. Plot the original and trend
values.
Year Productions Units
(Thousand)
2010 21
2011 22
2012 23
2013 25
2014 24
2015 22
2016 25
2017 26
2018 27
2019 26
Answer:
In this problem 3 years moving averages are calculated as usual. And these three years moving averages are the
Trend values.
For finding out short term fluctuations we usually use Multiplicative model. As discussed earlier Observed values
contain TSCI (i.e. Trend, Seasonal, Cyclical and Irregular components). Moving average values contain Trend (T)
Observed Values
So short term fluctuations under multiplicative model = & short term fluctuations under additive
Moving average
model = Observe Values – Moving average. Detail computations are:
Year Productions Unit 3 years 3 years Moving Short Term Short Term
(Thousand) Moving Total Average Fluctuations Fluctuations
Multiplicative Model Additive Model
2010 21 – – – –
2011 22 66 22.000 1 0.000
2012 23 70 23.333 0.986 -0.333
2013 25 72 24.000 1.042 1.000
2014 24 71 23.667 1.014 0.333
2015 22 71 23.667 0.930 -1.667
2016 25 73 24.333 1.027 0.667
2017 26 78 26.000 1.000 0.000
2018 27 79 26.333 1.025 0.667
2019 26 – – – –
25
20
Productions
15
10
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Year
Production Unit (Thousand)
4. The following data give daily sales of a shop observing a five day week, over four successive weeks. Determine
the period of the moving average and calculate the moving average accordingly:
Day 1 2 3 4 5 6 7 8 9 10
Sales 26 29 35 47 51 26 32 37 46 53
Day 11 12 13 14 15 16 17 18 19 20
Sales 28 30 36 46 54 28 31 36 46 54
Answer:
Determination of the period of moving average: We discussed earlier in finding out “n-years Moving Average”
value of n depends on the data collected. If the data are quarterly then 4 quarters moving average is typical as there
are 4 quarters in a year. If the data are daily then seven days moving average is appropriate because there are 7 days
in a week. We can also fix by trial and error the value of n that best levels out the chance fluctuations.
In the given case data is collected daily in a week and week is composed of 5 days. So 5 days moving average is
appropriate and the detail computations are as follows:
Exercise:
Theoretical Questions
Multiple Choice Questions (MCQ)
1. By using arithmetic mean method the index number from the following data is
(a) 144.92
(b) 202.34
(c) 161.87
(d) 115.22
2. From the data given below the wholesale price index number for the year 1 taking year 0 as base using
simple arithmetic average of relatives method is
Year 1 2 3 4 5 6 7 8
Annual Sales (` ’0000) 3.6 4.3 4.3 3.4 4.4 5.4 3.4 2.4
5 year moving average against year 4 is
(a) 3.80
(b) 4.00
(c) 4.36
(d) 4.18
Year 1 2 3 4 5 6 7 8
Annual Sales (`’0000) 3.6 4.3 4.3 3.4 4.4 5.4 3.4 2.4
4 year centered moving average against year 6 is
(a) 4.00
(b) 4.24
(c) 4.26
(d) 4.03
Year 1 Year 2
Item Unit Price Quantity Unit Price Quantity
I 1 16 3 15
II 3 15 8 20
III 5 18 10 21
Pasche’s price index of year 2 with respect to year 1 is
(a) 189.13
(b) 230.56
(c) 245.12
(d) 256.78
Year 1 2 3 4 5 6 7 8 9 10 11
Sales (`) 2 6 1 5 3 7 2 6 4 8 3
4 year centered moving average against year 6 is
(a) 5.125
(b) 3.875
(c) 3.625
(d) 4.375
Year 1 2 3 4 5 6 7 8 9 10 11
Sales (`) 2 6 1 5 3 7 2 6 4 8 3
5 year weighted moving average with weights 1, 2, 2, 2, 1 against year 6 is
(a) 5.125
(b) 3.875
(c) 3.625
(d) 4.375
Year 1 2 3 4 5 6 7 8 9 10 11
Sales (`) 2 6 1 5 3 7 2 6 4 8 3
5 year moving average against year 6 is
(a) 3.6
(b) 4.6
(c) 4.4
(d) 5.4
13. From the following find the Simple average (AM) of Relative Quantity index
Item Base Year Quantity Current Year Quantity
A 8 12
B 10 11
C 15 10
(a) 111.45
(b) 108.89
(c) 32.45
(d) 115.46
14. From the following find the Simple average (GM) of Relative Quantity index
15. From the following data the five year moving average against year 5
Year 1 2 3 4 5 6 7 8 9
Sales (`) 36 43 43 34 44 54 34 24 14
(a) 40
(b) 43.6
(c) 34
(d) 41.8
16. From the following data the four year centered moving average against year 6
Year 1 2 3 4 5 6 7 8 9
Sales (`) 36 43 43 34 44 54 34 24 14
(a) 40.25
(b) 40.625
(c) 35.25
(d) 40
17. From the following series find out a three year moving average against year 4 is
Year 1 2 3 4 5 6 7
Values 12 14 15 17 18 20 23
(a) 20.33
(b) 18.33
(c) 16.67
(d) 15.33
18. From the following series find out a three year weighted moving average against year 4 with weights 1, 4,
1 is
Year 1 2 3 4 5 6 7
Values 12 14 15 17 18 20 23
(a) 20.17
(b) 16.83
(c) 18.17
(d) 15.17
19. Consider the following table:
Commodity Weights Base price p.u. (`) Current price p.u (`)
A 40 16 30
B 25 40 70
C 5 0.5 1.5
D 20 5.12 7.25
E 10 2 2.5
Weighted A.M price relative index is
(a) 146.98
(b) 174.57
(c) 124.33
(d) 156.01
20. From the following four year centered moving average against year 4 is
Year 1 2 3 4 5 6 7
Import (` m) 229 231 206 191 195 184 193
(a) 190.671
(b) 199.875
(c) 192.375
(d) 210
Answer:
1. 2. 3. 4. 5. 6. 7. 8. 9 10.
(a) (d) (c) (d) (b) (a) (d) (d) (b) (a)
11. 12. 13. 14. 15. 16. 17. 18. 19 20.
(c) (c) (b) (d) (d) (a) (c) (b) (b) (b)
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