Business
mathematics
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Business mathematics is mathematics
used by commercial enterprises to record
and manage business operations.
Commercial organizations use
mathematics in accounting, inventory
management, marketing, sales
forecasting, and financial analysis.
Mathematics typically used in commerce
includes elementary arithmetic,
elementary algebra, statistics and
probability. Business management can be
done more effectively in some cases by
use of more advanced mathematics such
as calculus, matrix algebra and linear
programming.
High school
Business mathematics, sometimes called
commercial math or consumer math, is a
group of practical subjects used in
commerce and everyday life. In schools,
these subjects are often taught to
students who are ot planning a university
education. In the United States, they are
typically offered in high schools and in
schools that grant associate's degrees;
elsewhere they may be included under
Business studies. The emphasis in these
courses is on computational skills and
their practical application, with practical
application being predominant.
A (U.S.) business math course might
include a review of elementary arithmetic,
including fractions, decimals, and
percentages. Elementary algebra is often
included as well, in the context of solving
practical business problems. The practical
applications typically include checking
accounts, price discounts, markups and
Markup, payroll calculations, simple and
compound interest, consumer and
business credit, and mortgages and
revenues.
University level
Undergraduate
"Business Mathematics" comprises
mathematics courses taken at an
undergraduate level by business students.
The two most common here are Business
Calculus and Business Statistics.
Programs often also cover matrix
operations as mentioned above, and may
include a separate module on interest
calculations.
These courses are usually focused on
problems from the business world, and the
syllabus is adjusted correspondingly. Thus
for example, whereas in a regular calculus
course students would study
trigonometric functions, courses here
would not typically cover this area.
Correspondingly, these courses typically
do not go into the same depth as standard
courses in the mathematics or science
fields. (Although see Bachelor of Science
in Business Administration and Bachelor
of Business Science.)
Note that economics majors, especially
those planning to pursue graduate study in
the field, are encouraged to instead take
regular calculus, as well as linear algebra
and other advanced math courses,
especially real analysis. Some programs
(instead) include a module in
"mathematics for economists", providing a
bridge between the above "Business
Mathematics" courses and mathematical
economics and econometrics. Operations
management (and management
accounting) may similarly include
supplementary coursework in relevant
quantitative techniques, generally linear
programming as above, as well as other
optimization methods.
Postgraduate
At the postgraduate level, generalist
management and finance programs
include quantitative topics which are
foundational for the study in question -
often exempting students with an
appropriate background. These are usually
"interest mathematics" and statistics, both
at the above level. MBA programs often
also include basic operations research
(linear programming, as above) with the
emphasis on practice, and may combine
the topics as "quantitative analysis"; MSF
programs may similarly cover applied
econometrics.
More technical Masters in these areas,
such as those in management science and
quantitative finance, will entail a deeper,
more theoretical study of operations
research and econometrics, and extend to
further advanced topics such as
mathematical optimization and stochastic
calculus. These programs do not include
or entail "Business mathematics" per se.
Where mathematical economics is not
required, graduate economics programs
often include "quantitative techniques",
which covers (applied) linear algebra and
multivariate calculus, and may include the
above topics; regardless, econometrics is
usually a separate course, and is dealt with
in depth.
See also
Operations research
Management science
Econometrics
References
Brechner, Robert. (2006). Contemporary
Mathematics for Business and
Consumers, Thomson South-Western.
ISBN 0-324-30455-2
Dowling, Edward (2009). Schaum's
Outline of Mathematical Methods for
Business and Economics, McGraw-Hill.
ISBN 0071635327
Wegner, Trevor. (2016). Applied Business
Statistics: Methods and Excel-Based
Applications, Juta Academic.
ISBN 9781485111931
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