MATHEMATICS IN THE MODERN WORLD CE

1D
FINALS REVIEWER

LESSON 4: DATA MANAGEMENT

4. DATA MANAGEMENT Independent Variable – is the variable that can be controlled. It is

assumed to have a direct effect on the dependent variable.
4.1 Gathering and organizing data, representing data using graphs
and charts, interpreting organized data Dependent Variable – is the variable being tested or measured. Its
values may change according to the independent variable.
4.2 Measures of the central tendency: mean, mean, mode, weighted
mean QUALITATIVE AND QUANTITATIVE VARIABLES

4.3 Measures of dispersion: range, standard deviation, and variance Qualitative Variable – describe a certain type of information without
using numbers
4.4 Measures of relative position: z-scores, percentiles, quartiles
Quantitative Variable – measure or identify an information using
4.5 Probabilities and normal distribution numeric scales

4.6 Linear regression and correlation, least square line, line Discrete Variable – whose values can be counted using integral
correlation. values

STATISTICS Continuous Variable – can assume any numerical value over interval
or intervals
A body of knowledge that involves the use of scientific methods and
techniques in collecting, presenting, organizing data, analyzing, and MEASUREMENT SCALES
interpreting numerical figures.
Measurement is the process of assigning value to a variable.
Uses in Different fields: Agriculture, Biology, Business, Demography,
Economics, Education, Engineering, Entertainment, Health, Four Levels of Scales of Measurement:
Medicine, and Research
Nominal Level – observations can be named without particular order
Descriptive Statistics – used to say something or describe a set of of ranking imposed on the data. Words, letters and even numbers
information collected. It can also be represented with graphs. are used to classify the data.
Common tools are the measures of central tendency and measure of
variability. Examples: Gender (Male and Female), Types of Electric
Consumption (1- Residential, 2- Commercial, 3- Industrial, 4-
Example: In a math test, 32 out of 40 students were able to receive a Government)
passing mark. The average score of the class is 82 out of 100.
Ordinal Level – describes ranking or order. The difference or ration
Inferential Statistics – used to say something about a larger group between two rankings may not always be the same.
(population) using information collected from a small part of that
population (sample). Common tools are hypothesis testing and Example: Competition Placement (1st Place, 2nd Place, 3rd Place),
regression analysis. Level of Satisfaction (Very Satisfied, Satisfied, Not Satisfied)

Example: In a sample survey collected, 65% percent of Filipino Interval Level – indicates the actual amount (numerical). The order
Generation Z prefer to drink milk tea than coffee while only 34% of and the difference between the variables can be known. Its limitation
Filipino Millennials prefer to drink milk tea than coffee. is it has no “true zero”

VARIABLE Example: Temperature (60⁰C, 20⁰C, 10⁰C, -15⁰C), Family Income

The differentiating property of subjects or respondents that vary from Ratio Level – it has the same properties as the interval level.
one situation to another. The order and difference can be described. Additionally, it has
true zero and the ration between two points has meaning.
Example: Mass (80kg, 40kg, 10kg, 0kg) sampling. This method is good for dealing with large and
disperse populations, but there is more risks of error in the
sample, as there could be substantial differences between
clusters. It’s difficult to guarantee that the sampled clusters
STATISTICAL INQUIRY are really representatives of the whole population.
STEP 1: Define the problem
Non-Probability Sampling – not every member of the population has
STEP 2: Gather or collect relevant data
the equal chance of being selected. It can rely on the subjective
STEP 3: Manage or organize the collected data judgement of the researcher.

STEP 4: Use text, table, or graphs to present data 1. Convenience Sampling – selecting a sample based on the
availability of the member and/or proximity of the
STEP 5: Analyze, verify, and test data using appropriate statistical researcher. Also known as accidental, opportunity or grap
tool. sampling.

SAMPLING TECHNIQUES 2. Purposive Sampling – samples are chosen based on the

goals of the study. They based on their knowledge of the
Probability Sampling – every member of the population has the
study being conducted or if they satisfy the traits or
chance of being selected. It involves principles of randomization or
conditions set by the researcher.
chance.

Under probability sampling are: 3. Quota Sampling – proportions of the groups in the
population were considered in the number and selection of
1. Simple random sampling – every member of the population respondents.
has an equal chance of being selected. Your sampling
frame should include the whole population. To conduct this 4. Snowball Sampling – participants in the study were tasked
type of sampling, you can use tools like the random to recruit other members for the study.
number generators or other techniques that are entirely on
chance. SLOVIN’S FORMULA

- Used to compute for the sample size in a study given the

2. Systematic sampling – similar to simple random sampling,
total population and margin of error.
but it is usually slightly easier to conduct. Every member of
the population is listed with a number, but instead of
N
randomly generating numbers, individuals are chosen at n= 2
regular intervals. 1+ N e
where:
3. Stratified sampling – involves dividing the population into
sub-populations that may differ in important ways. It allows n = sample size
you draw more precise conclusions by ensuring that every
sub-group is properly presented in the sample. To use this N = total population
sampling method, you divide the population into sub-
groups (called strata) based on the relevant characteristics E = margin of error
(e.g., gender, age range, income bracket, job role). Based
on the overall proportions of the population, you calculate
how many people should be sampled from each sub-group.
Then you use random or systematic sampling to select a
sample from each sub-group.

4. Cluster sampling – involves dividing the population into

sub-groups, but each sub-group should have similar
characteristics to the whole sample. Instead of sampling
individuals from each sub-group, you randomly select
entire sub-groups. If the clusters themselves are large, you
can also sample individuals from within each cluster using
one of the techniques above. This is called multistage
 PRESENTATION OF DATA Weighted Mean – used when some data values are more important
than others. The weighted mean of the n numbers with the respective
Describing Data with Graphs assigned weights is:

- Data presentation is defined as the process of using ∑ x•w

various graphical formats to visually represent the Weighted Mean =
∑w
relationship between two or more data sets so that an
informed decision can be made based on them. where:
Types of Data Presentation ∑ x • w = sum of the products formed by multiplying each
Broadly speaking, there are three methods of data presentation: number by its assigned weight, and ∑w.

 Textual MEASURES OF DISPERSION

 Tabular
Range – the difference between the greatest data value and the least
 Diagrammatic data value.
Most common types of charts and graphs to help communicate data Variance – a measure of dispersion that takes place into account that
with impact spread of all data points in a data set.
 Bar chart - It’s a measure of dispersion that is most often used, along
 Line graph with standard deviation, which is simply the square root of
 Area graph the variance.
 Scatter plot - The mean squared difference between each data point and
 Pie chart the center of the distribution measured by the mean.
 Pictograph
 Column chart ơ =∑ ¿ ¿
 Bubble chart
Standard Deviation – makes use of the individual amount that each
 Gauge chart
data value deviates from the mean.
 Stacked Venn
The summation of x is the population of n numbers with a mean u,
MEASURES OF CENTRAL TENDENCY then the standard deviation of the population is:
(UNGROUPED DATA)
SD=√ ∑ ¿ ¿ ¿
Mean – the sum of numbers divided by n.
MEASURES OF RELATIVE POSITION
∑x
Mean = Percentile – the set of values that divide the sample into 100 equal
n parts. A value x is called the pth percentile of a data set provided p%
of the data values are less than x.
Median – ranked list of n numbers is:

- The middle number is odd

Quartiles – the three numbers Q 1 , Q 2 , and Q 3 that partition a data
n+1
x n=odd = th set into four (approximately) equal portions.
2
n+1 n+1
- The mean of the two middle numbers if n is even Q 1= th Q 2= th
4 2
n n+1 n+1
x n=even=[ th+ th ] Q 3=3 th
2 2 4
Mode – the number that occurs most frequent. Interquartile Range = Q 3−Q 1
z- Scores – the number of standard deviations that x is above below Histogram vs. Continuous Distribution Curve
the mean of the data.

x−u x−u
Population : z= Sample : z= Normal Distribution – the distribution of data in a normal distribution
ơ s
has a bell-shape that is symmetrical about a vertical line through its
INTRODUCTION TO NORMAL DISTRIBUTION center.

Frequency Distributions and Histograms Properties of Normal Distribution

Grouped frequency distribution – used to display large sets of data 1. It is bell-shaped.

2. The mean, median, and mode are at the center of the
Histogram – the graph of grouped frequency distribution. It provides distribution.
a pictorial view of how the data are distributed. 3. It is symmetric about the mean. (This means that it is a
reflection of itself if a mean was place at its center.)
4. It is continuous; i.e., there are no gaps.
5. It never touches the x-axis.
6. The total area under the curve is 1 or 100%.

Normal Distribution Curve

Distribution of Sets of Data

1. Uniform Distribution – occurs when all of the observed

Empirical Rule for Normal Distribution
events occur with the same frequency.
68.2% of the data lie within 1 standard deviation of the mean.

95.4% of the data lie within 2 standard deviations of the mean.

2. Symmetrical Distribution – the distribution is symmetrical
about the vertical line. 99.7% of the data lie within 3 standard deviations of the mean.

3. Bimodal Distribution – produced when two non-adjacent

classes occur more frequently than any of the other
classes. LINEAR REGRESSION AND CORRELATION

4. Skewed Distribution – can be identified by the fact that their

distributions have a longer tail on one side of the
distribution and short tail on the other side.

Discrete Data – separated from each other by an increment, or

“space”

Continuous Data – can take on the values of all real numbers in

some interval.
 LESSON 5: MATHEMATICS IN FINANCE Compound Interest – interest calculated not only on the original
principal, but also on any interest that has already been earned.

Interest – the amount of money paid for the use of borrowed capital Compounding Period – the frequency at which the interest is
or the income produced by money which has been loaned. compounded.

Principal – the amount deposited or borrowed in the bank. Types of Compounding Period

Simple Interest – an interest calculated using the principal only, Type Frequency
ignoring any interest that has been accrued in preceding periods.
Annually 1
Formula for Simple Interest
Semi-annually 2
I=Prt
Quarterly 4
F=P+I
Monthly 12
F = P + (P r t)
Bi-monthly 6
F = P (1 + r t)
Semi-monthly 24
where:
Daily 365
I = interest
Continuously
P = principal
Bi-________ every two _________
r = annual interest rate
Semi-______ twice a ___________
t = number of interest period
Compound Amount Formula
F = accumulated amount / future value / maturity value
r n (t)
Ordinary Simple Interest – an interest that is computed on the basis F = P (1 + I ¿ ¿ n or F = P (1 + ¿.
n
of 12 months or 30 days each or 360 days a year.
where:
1 interest period = 360 days
F = accumulated amount / future value / maturity value
Exact Simple Interest – an interest that is based on the exact number
of days in a year, 365 on an ordinary year and 366 for a leap year. P = Principal / Present Value

1 interest period = 365 or 366 days r = interest rate per compounding period

Mnemonic for Days of each Month n = number of compounding periods

 30 days has September, April, June, November Present Value – the original principal invested, or the value of the
 All the rest have 31 days investment before it earns any interest.
 Save February at 28 days, but leap year, coming once in
four, February then has one day more F F
P= =
¿¿ ¿¿
Effective Interest Rate – when interest is compounded, the annual
rate of interest is called the nominal rate.

- The effective rate is the simplest rate that would yield the
same amount of interest after 1 year.
Effective Rate Formula

ER = ¿ Credit Cards and Consumer Loans

(1 + r/1 ¿ ¿1 = (1 + r/n ¿ ¿n (1) Credit Card – a payment card issued to users (cardholders) to enable
the cardholder to pay a merchant for goods and services based on
1 + r = (1 + r/n ¿ ¿n (1) the cardholder’s accrued debt.

Finance Charge – an amount paid in excess of the cash price; it is

r = (1 + r/n ¿ ¿n (1) – 1
the cost of the consumer for the use of credit.
Inflation – it is an economic condition during which there are
Billing
increases in the costs of goods and services.
- most credit card companies issue monthly bills.
Effect of Inflation on Salary
- the due date on the bill is usually 1 month after the billing
Suppose your annual salary today is Php350,000. You date.
want to know what an equivalent salary will be in 20 years – that is, a - if the bill is not paid in full by the due date, a finance charge
salary that will have the same purchasing power. Assume a 6% is added to the next bill.
inflation rate.
Calculating Finance Charge
Given: P = Php350,000
Average Daily Balance Method – the most common method of
r = 0.06 determining finance charges. Average data balance is calculated by
dividing the sum of the total amounts owed each day of the month by
n = 20 the number of days in the billing period.

Solution: ADB =

F = P (1 + r ¿ ¿n
∑ of the total amounts owed each day of the month
number of days∈billing period
F = 350,000 (1 + 0.06 ¿ ¿20 Republic Act 3765 (TRUTH IN LENDING ACT)

F = Php1, 122, 497.42 - an act to require the disclosure of finance charges in

connection with extensions of credit.
Effect of Inflation on Future Purchasing Power
- it is hereby declared to be the policy of the State to protect
Assuming an annual inflation rate of 5%, what will be the its citizens from a lack of awareness of the true cost of
purchasing power of Php1,000 in 2045. credit to the user by assuring a full disclosure of such cost
with a view of preventing the uninformed use of credit to
Given: F = Php1,000 the detriment of the national economy. Approved June 22,
1963.
r = 0.05 (The LAWPHIL Project)

n = 2045 Approximately Annual Percentage Rate

Solution: The annual percentage rate (APR) of a simple interest rate loan can
be approximated by
P=
F
¿¿ 2 Nr
APR ≈
N +1
P=
1, 000
¿¿ where:
P = Php310.07
N = number of payments
 r = simple interest rate

Stock Bonds, and Mutual Funds

Introduction Calculating Profits/Losses in Selling Stocks

Stock bonds and mutual funds are investment vehicles. Suppose you owned 500 shares of stock in Jollibee (JFC).
Owners of a company to the investors to raise money. You purchased the shares at a price of Php195.20 per share and
sold them at the closing price of Php243.80.
Stock – a security that represents the ownership of a fraction of a
corporation. It is measured in shares. a. Ignoring dividends, what was your profit or loss on the sale
of the stock?
Stockholder/Shareholder – the owner of the securities or certificates.
As owners, the stockholders share in the profits for losses of the Solution:
corporation.
Profit = Sales – Principal
Dividends – the profit distributed to the shareholders.
Sales = 243.80 (500) = Php121,900
Example:
Principal = 195.50 (500) = Php97,600
A stock pays an annual dividend of $.84 per share.
Calculate the dividends paid to a shareholder who has 200 shares of
the company’s stock.
Profit = Php121,900 – Php97,600
0.84 Profit = Php24,300
Dividend = x 200 shares
share
b. If your broker charges 2.4% of the total sale price, what
Dividend = $168 was the broker’s commission?

Dividend Yield – The amount of the dividend by the stock price and is Solution:
expressed as a percent.
Commission = Total Sales x Charge
Example:
Commission = Php121,900 x 0.024
A stock pays an annual dividend of $1.75 per share. The
stock is trading at $70. Find the dividend yield. = Php2925.60

1.75 Bonds – when issued, the corporation is borrowing money from the
% yield = x 100% bondholders; a bondholder lends money to a corporation.
70
% yield = 2.5% Face Value – the price paid for the bond. The issuer promises to
repay the bondholder on a particular day, called the maturity date, at
Market Value – the price for which a stockholder is willing to sell a a given rate of interest, called the coupon.
share of the stock and a buyer is willing to purchase it.
Example:
Brokerage Firm – a dealer of stocks that acts as your agent when
you want to buy or sell shares of stock. A bond with a $10,000 face value has a 3% coupon and a
5-year maturity date. Calculate the total of the interest payments paid
Stock Exchange – businesses whose purpose is to bring together to the bondholder.
buyers and sellers of stock.
I=Prt
 I = $10,000 (0.03) (5) 606,000,000−2,000,000
NAV =
25,000,000
I = $1,500
NAV = $24.16

b. How many shares will you purchase?

Solution:

Principal
# shares =
NAV
Mutual Funds – baskets of stocks or bonds. They come in different
shapes and sizes, from covering broad stock market indexes to 15,000
# shares =
focusing on specific sectors. 24.16
Net Asset Value of a Mutual Fund # shares = 620.86 ≈ 621 shares

A−L
NAV =
N
where:

NAV = Net Asset Value

A = Total fund assets

L = Total fund liabilities

N = number of shares outstanding

Example:

A mutual fund has $600 million worth of stock, $5 million

worth of bonds, and $1 million in cash. The fund’s total liabilities
amount to $2 million. There are 25 million shares outstanding. You
will invest $15,000 in this fund

Given:

Total Assets Total Liabilities

Stocks = 600,000,000 Liabilities = 2,000,000

Bonds = 5,000,000

Cash = 1,000,000

Total = 606,000,000

a. Calculate the NAV

Solution:

A−L
NAV =
N