Business Mathematics

Statistics is a branch of mathematics that deals with collection, presentation, analysis, interpretation and organizing the data available. Normally, it is defined in two senses: Singular sense – in this sense, we define it as body of methods used to collect, present, analyze and interpret the...
last updated on 11-Nov-2017
As statistics is about aggregate of numerical facts, it cannot be explained in singular manner. In order to present the data singularly, the averages are calculated and described. The average calculated in such a manner is the representative of most of the valued of the data. It is also called Measu...
last updated on 11-Nov-2017
It is one of the most common and popular measure of central tendency. It is defined as the sum of all the observations divided by the number of observations. It is denoted by A.M. The major problem with A.M is that if the differences among observations are high, then this average will give the misle...
last updated on 11-Nov-2017
Median is simply defined as the most middle value of an arranged data. It means that it divided the data into two equal portions. Formula Median = (n + 1 / 2) th value Example Find median of the following data: 7, 3, 8, 5, 6, 9, 11, 5, 18, 11 Solution First, we will arrange the unarranged data as fo...
last updated on 11-Nov-2017
Mode is the value which occurs most frequently in the given set of data. If the distribution has one mode, it is called Uni-modal distribution, while distribution with two modes is called Bi-modal distribution. Distribution which has more than two modes is called Multi-Modal distribution. Example Fi...
last updated on 13-Nov-2017
Index numbers are used to measure the changes happened in a variable over a period of time. This is an effective method to analyze the variable and how it has affected the related factors. In our daily life, it usage is very common such as it is used to measure the price changes of products or servi...
last updated on 13-Nov-2017
Index numbers are broadly categorized into three main index numbers as follows: Price Index Number - this is used to measure the changes in the price from one period to the other. Quantity Index Number - this is used to measure the changes in the quantity from one period to the other. Value Index Nu...
last updated on 13-Nov-2017
In order to give each commodity a relative importance, a number is assigned which is called weights. In Price index numbers, quantities of commodities in the base or current year are normally used as weights. Types of Weighted Index Numbers Laspeyre price index Paasche price index Fisher price index
last updated on 13-Nov-2017
In this price index, we use the base year quantitties as weights. That is why it is also called Base Year Weighted Average Index Number & is denoted by L. Formula This price index is valuable only when the difference between base year quantity and the current year quantity is not too much. If it...
last updated on 13-Nov-2017
In this price index, we use the current year quantitties of commodities as weights. That is why it is also called Current Year Weighted Average Index Number & is denoted by P. Formula
last updated on 13-Nov-2017
In order to combine the effects of both Paasche and Laspeyre price index, Fisher presented a new formula to calculate price index. It is defined as the geometric mean of Paasche and Laspeyre price indices. Formula
last updated on 13-Nov-2017