PAPER NO. 4 FUNDAMENTALS OF BUSINESS MATHEMATICS
UNIT DESCRIPTION
This unit covers the competencies required to solve business problems using business mathematics. Competencies include: applying ratios, rates and proportions to compare various scenarios, describing relationships using algebraic expressions and calculus, applying the concepts of commercial mathematics to compute cost and revenue, using statistical concepts to represent data and applying probability to anticipate potential business outcomes.
LEARNING OUTCOMES
• Apply ratios, rates and proportions to compare various scenarios
• Describe relationships using algebraic expressions and calculus
• Apply the concepts of commercial mathematics to compute costs and revenues
• Use statistical concepts to represent data
• Apply probability to anticipate potential business outcomes
CONTENT:
1. Apply ratios, rates and proportions for comparison of numerical values
1.1 Definition
1.1.1 Ratios
1.1.2 Rates
1.1.3 Proportion
1.2 Differentiate between ratio and proportion
1.2.1 Solve problems involving rates and proportions
1.3 Conversion between fractions, decimals and percentages:
1.3.1 a decimal to a fraction
1.3.2 a fraction to a decimal
1.3.3 a percentage to a fraction or decimal
1.3.4 a fraction or decimal to a percentage
1.4 Rounding off numbers
1.5 Solve business using fractions, decimals and percentages
2. Describe relationships using algebraic expressions and calculus
2.1 Algebraic expression
2.1.1 The number line
2.1.2 Known and unknowns (variables)
2.1.3 Algebraic terms and expressions operation
2.1.4 Factorisation
2.1.5 Simplification of algebraic expressions using BODMAS
2.1.6 Simplification of fractions
2.2 Linear Equations and Inequalities
2.2.1 Solving equations with one or more variables
2.2.2 Solving multi-operational equations
2.2.3 Graphical solutions in two unknowns
2.2.4 Graphical solutions for inequalities in one unknown
2.2.5 Graphical presentation of inequalities in two unknowns
2.3 Matrix Algebra
2.3.1 Notations
2.3.2 Operations
2.3.3 Solving a 2*2 matrix
2.4 Calculus
2.4.1 Basic differentiation (general polynomial rule)
2.4.2 Stationary points/turning points (minima and maxima)
2.4.3 Basic integration (general polynomial rule
2.5 Solve problems using first order differential calculus method and general integration rule
3. Apply the concepts of commercial mathematics to compute costs and revenues
3.1 Buying and selling
3.1.1 Types of discounts
3.1.2 Percentage profit and loss
3.1.3 Mark-ups
3.1.4 Margins
3.2 Simple interest and compound interest computation
3.2.1 Basics of simple interest
3.2.2 Compound interest formulae
3.2.3 Finding principal, rate and time using simple interest formula and compound interest rate formula
3.2.4 Preparation of a loan mortisation schedule
3.3 Appreciation and depreciation calculation
3.3.1 Straight line method
3.3.2 Declining balance method
3.3.3 Sum of the year’s digits method
3.3.4 Correctly apply values and variables to any given formula
3.4 Wages and salaries computation
3.4.1 Piecework
3.4.2 Hourly rate
3.4.3 Commissions
3.5 Basic income tax calculations
3.5.1 Gross and net pay
3.5.2 Computation of personal income tax
3.6 Foreign exchange rates computation
4. Use statistical concepts to analyse and present data
4.1 Data collection
4.1.1 Definition
4.1.2 Steps to data collection
4.1.3 Data collection methods
4.2 Measures of central tendency
4.2.1 Mean
4.2.2 Mode
4.2.3 Median
4.3 Measures of dispersion
4.3.1 Variance
4.3.2 Standard deviation
4.4 Presenting data using the following methods:
4.4.1 Tables
4.4.2 Charts and diagrams
4.4.3 Frequency distribution table
4.4.4 Contingency tables
4.4.5 Stem and leaf plot of data line graphs
4.4.6 Bar charts
4.4.7 Pie charts
4.4.8 Pictograms
4.4.9 Frequency curve- ogive, histogram and polygons
5. Apply probability to exercises anticipate potential business outcomes assess
5.1 Foundation concepts of probability
5.1.1 Sample space
5.1.2 Event
5.1.3 Experiment
5.1.4 Outcome
5.2 Types of events
5.2.1 Simple events
5.2.2 Compound events
5.2.3 Independent
5.2.4 Dependent events
4.2.5 Mutually exclusive events
5.2.6 Mutually inclusive
5.3 Explain rules/laws of probability
5.4 Draw probability trees
5.5 Solving business problems using probability
Suggested Methods of Delivery
• Presentations and practical demonstrations by trainer;
• Guided learner activities and research to develop underpinning knowledge;
• Supervised activities and projects in a workshop;
The delivery may also be supplemented and enhanced by the following, if the opportunity allows:
• Visiting lecturer/trainer from the ICT sector;
• Industrial visits.
Recommended Resources Equipment
Computer
Financial calculators
Materials and supplies
Digital instructional material including DVDs and CDs