A PROJECT REPORT

ON

BUSINESS MATHEMATICS AND STATISTICS

APPLICATION OF MATRIX IN REL LIFE

SUBMITTED BY:

CLASS:

C.H.S.E. ROLL NO.:

ACADEMIC YEAR:

TEACHER IN CHARGE: MR.SRIKANT SAHU

SARASWATI JUNIOR VIDYA MANDIR

Neelakantha nagar, brahmapur

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 CERTIFICATE

This is to certify that Chandan Kumar Sahu of +2

second year commerce has successfully completed the
project report on matrix as per the guidelines of class
XII of H.S. examination conducted by C.H.S.E.,
Odisha. It is further certifying that this project is the
individual and bonafide work of the candidate.

Teacher’s sign:

Teacher’s name:

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 ACKNOWLEDGMENT

Inspiration and hard work always play a key role in the

success of any venture. At the level of practice, it is often difficult to
get knowledge without guidance. “Project is like a bridge between
theory and practice.” With this will I felt pleasure to undertake this
project.

I am deeply indebted to Mr. Chandan Kumar Sahu for his

valuable contribution during the academic session & guidance in
preparation of this project report. Finally, it is the efforts of my
parents, esteemed friends and the almighty God who have been a
source of strength and confidence for me in this Endeavour.

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 CONTENTS

CHAPTER TITLE PAGE

NUMBER NUMBER
1  Introduction to matrices 05
 Meaning of matrices
2 History of matrices 06

3  Definition of matrices 07-08

 Features of matrices
4  Advantages of matrices 08-10
 Limitations of matrices
5 Types of matrices 10-12

6 Matrix operations 12-13

7 Application of matrices in real life 14-15

8 Business problems related to matrices 16

9 Conclusion 17

10 Bibliography 18

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INTRODUCTION TO MATRICES

Matrix is an arrangement of numbers into rows and columns. Make your first
introduction with matrices and learn about their dimensions and elements.

Matrices find applications in almost every branch of science, engineering, economics,

probability, theory, and statistics to mention a few. The aim of this section is to present the
concept of matrix and their elementary properties.

MEANING OF MATRICES

Matrix Organization was introduced in USA in the early 1960's. It was used to solve
management problems in the Aerospace industry.

Matrix Organization is a combination of two or more organization structures. For

example, Functional Organization and Project Organization.

The organization is divided into different functions, e.g. Purchase, Production, R & D,
etc. Each function has a Functional (Departmental) Manager, e.g. Purchase Manager, Production
Manager, etc.

The organization is also divided on the basis of projects e.g. Project A, Project B, etc.
Each project has a Project Manager e.g. Project A Manager, Project B Manager, etc.

The employee has to work under two authorities (bosses). The authority of the Functional
Manager flows downwards while the authority of the Project Manager flows across (side wards).
So, the authority flows downwards and across. Therefore, it is called "Matrix Organization".

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HISTORY OF MATRICES

Matrices began in the 2nd century BC with the Chinese although traces could be seen
back in the 4th century BC with the Babylonians. The text Nine Chapters of the Mathematical
Art written during the Han Dynasty in China gave the first known example of matrix methods.
They were used to solve simultaneous linear equations.

You have learnt how to solve 2 simultaneous linear equations in 2 unknowns using the
elimination method and the substitution method. What about 3 simultaneous linear equations in 3
unknowns? And 4 simultaneous linear equations in 4 unknowns? The usual methods are very
tedious when the number of unknowns is big. That is why we learn the matrix method which
uses the inverse of a matrix. (Fortunately, computers have an efficient algorithm or method to
calculate the inverse of an n x n matrix when n is big. Otherwise, the matrix method will also be
tedious.) You will get to learn this method for solving 2 simultaneous linear equations later on.

Please note that the website below describes the ancient matrix method used to solve 3
simultaneous linear equations. It is different from the modern approach using the inverse of a
matrix.

It was only towards the end of the 17th century that much progress was made on the
studies of matrices. Carl Gauss (1777-1855), the greatest German mathematician of the 19th
century, first used the term 'determinant' in 1801 although its meaning was not exactly the same.
It was Augustine Cauchy (1789-1857), a great French mathematician, who used 'determinant' in
1812 in the modern sense of the word. James Sylvester (1814-1897), an English mathematician
and lawyer, was the first to use the term 'matrix' in 1850.

But it was his colleague, Arthur Clayey (1821-1895), another English mathematician and
lawyer, who first published an abstract definition of a matrix in his Memoir on the Theory of
Matrices in 1858, thus establishing it as a branch of mathematics. Prior to this, all other
mathematicians viewed matrices only in the specific contexts in which they were working; they
failed to generalize the idea of matrices.

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DEFINITION OF MATRIX

A matrix is a collection of numbers arranged into a fixed number of rows and columns.
Usually the numbers are real numbers. In general, matrices can contain complex numbers but we
won't see those here. Here is an example of a matrix with three rows and three columns:

FEATURES OF MATRIX

The peculiarities or characteristics or features of a matrix organization are:-

1. Hybrid Structure: Matrix organization is a hybrid structure. This is so, because it is a

combination of two or more organization structures. It combines functional organization
with a project organization. Therefore, it has the merits and demerits of both these
organization structures.
2. Functional Manager:

The Functional Manager has authority over the technical (functional) aspects of the
project.
The responsibilities of functional manager are:-

i. He decides how to do the work.

ii. He distributes the project work among his subordinates.
iii. He looks after the operational aspects.
3. Project Manager:

The Project manager has authority over the administrative aspects of the project.
He has full authority over the financial and physical resources which he can use for
completing the project.

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 The responsibilities of project manager are:-

i. He decides what to do.

ii. He is responsible for scheduling the project work.
iii. His co-ordinates the activities of the different functional members.
iv. He evaluates the project performance.

4. Problem of Unity of Command: In a matrix organization, there is a problem of the unity

of command. This is so, because the subordinates receive orders from two bosses viz., the
Project Manager and the Functional Manager. This will result in confusion, disorder,
indiscipline, inefficiency, etc. All this will reduce the productivity and profitability of the
project.
5. Specialization: In a Matrix organization, there is a specialization. The project manager
concentrates on the administrative aspects of the project while the functional manager
concentrates on the technical aspects of the project.
6. Suitability: Matrix organization is suitable for multi-project organizations. It is mainly
used by large construction companies that construct huge residential and commercial
projects in different places at the same time. Each project is looked after (handled) by a
project manager. He is supported by many functional managers and employees of the
company.

ADVANTAGES OF MATRIX

The benefits or merits or advantages of a matrix organization are:-

1. Sound Decisions: In a Matrix Organization, all decisions are taken by experts. Therefore,
the decisions are very good.
2. Development of Skills: It helps the employees to widen their skills. Marketing people can
learn about finance, Finance people can learn about marketing, etc.
3. Top Management can concentrate on Strategic Planning: The Top Managers can spend
more time on strategic planning. They can delegate all the routine, repetitive and less
important work to the project managers.
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 4. Responds to Changes in Environment: Matrix Organization responds to the negative
changes in the environment. This is because it takes quick decisions.
5. Specialization: In a matrix organization, there is a specialization. The functional
managers concentrate on the technical matters while the Project Manager concentrates on
the administrative matters of the project.
6. Optimum Utilization of Resources: In the matrix organization, many projects are run at
the same time. Therefore, it makes optimum use of the human and physical resources.
There is no wastage of resources in a matrix organization.
7. Motivation: In a matrix organization, the employees work as a team. So, they are
motivated to perform better.
8. Higher Efficiency: The Matrix organization results in a higher efficiency. It gives high
returns at lower costs.

LIMITATIONS OF MATRIX

The demerits or disadvantages or limitations of a matrix organization are:-

1. Increase in Work Load: In a matrix organization, work load is very high. The managers
and employees not only have to do their regular work, but also have to manage other
additional works like attending numerous meetings, etc.
2. High Operational Cost: In a matrix organization, the operational cost is very high. This is
because it involves a lot of paperwork, reports, meetings, etc.
3. Absence of Unity of Command: In a matrix organization, there is no unity of command.
This is because, each subordinate has two bosses, viz., Functional Manager and Project
Manager.
4. Difficulty of Balance: In a matrix organization, it is not easy to balance the administrative
and technical matters. It is also difficult to balance the authority and responsibilities of
the project manager and functional manager.
5. Power Struggle: In a matrix organization, there may be a power struggle between the
project manager and the functional manager. Each one looks after his own interest, which
causes conflicts.

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 6. Morale: In a matrix organization, the morale of the employees is very low. This is
because they work on different projects at different times.
7. Complexity: Matrix organization is very complex and the most difficult type of
organization.
8. Shifting of Responsibility: If the project fails, the project manager may shift the
responsibility on the functional manager. That is, he will blame the functional manager
for the failure.

TYPES OF MATRIX
1. RAW MATRIX
A row matrix is formed by a single row.
(1 2 3)
2. COLUMN MATRIX
A column matrix is formed by a single column.

3. SQUARE MATRIX
A matrix in which the number of rows are equal to the number of columns is called a
square matrix .for example, the matrix A= (aij) m×n where m=n (m denotes number of
rows, n number of column) is called a square matrix of order n.

4. RECTANGULAR MATRIX
A matrix which is not square matrixes is called a rectangular matrix. Here; no of rows
≠no. of columns i.e. m≠n.

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5. SCALAR MATRIX

A diagonal matrix is called as scalar matrix if, i.e. a matrix in which all
principal diagonal elements are equal is called a scalar matrix. In this case the elements
are called a scalar.

6. DIAGONAL MATRIX
A diagonal matrix is a square matrix that has zeros everywhere except on the main
diagonal, that is, the diagonal running from upper left to lower right.

7. IDENTITY MATRIX
An identity or unit matrix is a diagonal matrix each of whose diagonal elements is

positive one and is denoted by I. an n×n identity matrix is denoted by .

8. NULL MATRIX OR ZERO MATRIX

A null mtrix is an m×n matrix all of whose elements are zeros; it is denoted by o.

9. TRANSPOSE OF MATRIX
A matrix obtained by interchanging its rows and columns is called its transpose matrix.

Example; then =
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10. Upper triangular matrix

A square matrix A= is called upper triangular matrix if =0 for i > j.

e.g. A=

11. Lower triangular matrix

A square matrix A= is called lower triangular matrix if =0 for i < j.

e.g. A=

MATRIX OPERATION
1. Addition and subtraction of matrices
Matrices can be added or subtracted if and only if they are of the same order. The
sum of the difference of two m8n matrices is another matrix of order m8n, whose
elements are the sum or difference of the corresponding elements in the two matrices,
thus if

A= B= compute (A+B) and (A-B)

Solution:

A+B = =

A-B = =

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2. Multiplication of a matrix by a scalar
Scalar is a constant quantity and multiplication of a matrix by a constant quantity
gives us a new matrix which is element of the given matrix is multiplied by that scalar.
3. Multiplication of matrices
Two matrices can be multiplied if and only if the number of columns in first
matrix is equal to the number of rows in the second matrix. Take two matrices A and B.
then the matrix product AB is defined if and only if the number of column in A is the
same as the number of rows in B.
If matrix A is of the order MN and matrix B of NP, then the product AB matrix

will be of the order MP. =

Here matrix A is called the pre-factor and matrix B is called the post factor.

EXAMPLE: if A= and B= ; prove that AB≠BA

Solution:

AB= = =

BA= = =

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APPLICATIONS OF MATRICES IN REAL LIFE

APPLICATION OF MATRIX IN DAILY LIFE

Matrices are used much more in daily life than people would have thought. In fact it is in
front of us every day when going to work, at the university and even at home.

APPLICATION OF MATRIX IS SOFTWARE

Graphic software such as Adobe Photoshop on your personal computer uses matrices to
process linear transformations to render images. A square matrix can represent a linear
transformation of a geometric object.

For example, in the Cartesian X-Y plane, the matrix reflects an object in the vertical Y
axis. In a video game, this would render the upside-down mirror image of an assassin reflected in
a pond of blood. If the video game has curved reflecting surfaces, such as a shiny metal shield,
the matrix would be more complicated, to stretch or shrink the reflection.

APPLICATION OF MATRIX IN PHYSICS

In physics related applications, matrices are used in the study of electrical circuits,
quantum mechanics and optics. Engineers use matrices to model physical systems and perform
accurate calculations needed for complex mechanics to work. Electronics networks, airplane and
spacecraft, and in chemical engineering all require perfectly calibrated computations which are
obtained from matrix transformations. In hospitals, medical imaging, CAT scans and MRI's, use
matrices to operate.

APPLICATION OF MATRIX IN PROGRAMMING

Whereas in programming which is taught at the university, matrices and inverse matrices
are used for coding and encrypting messages. A message is made as a sequence of numbers in a
binary format for communication and it follows code theory for solving.

In robotics and automation, matrices are the basic components for the robot movements.
The inputs for controlling robots are obtained based on the calculations from matrices and these
are very accurate movements.
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APPLICATION OF MATRIX IN IT

Many IT companies also use matrices as data structures to track user information,
perform search queries, and manage databases. In the world of information security, many
systems are designed to work with matrices. Matrices are used in the compression of electronic
information, for example in the storage of biometric data in the new Identity Card in Mauritius.

APPLICATION OF MATRIX IN GEOLOGY

In geology, matrices are used for making seismic surveys. They are used for plotting
graphs, statistics and also to do scientific studies and research in almost different fields. Matrices
are also used in representing the real world data’s like the population of people, infant mortality
rate, etc. They are best representation methods for plotting surveys. In economics very large
matrices are used for optimization of problems, for example in making the best use of assets,
whether labour or capital, in the manufacturing of a product and managing very large supply
chains.

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BUSINESS PROBLEMS RELATED TO MATRICES

EXAMPLE: - Mr. Ram Gopal buys 10 dozen apples, 12 dozen bananas and 5 dozen mangoes.
Apples cost Rs.30 per dozen, bananas cost Rs.20 per dozen and the cost of mangoes is Rs.12 per
dozen. Represent the quantities and prices in rows and columns of a matrix and find the total
cost.

SOLUTION:

ITEMS QUANTITIES COST ( in Rs.)

Apples 10 30
Bananas 12 20
Mangoes 05 12

Let A = [10 12 5], B=

The total cost of all quantities

A‫׃‬B = [10 12 15]

= [10×30+12×20+5]

= [300+240+60]

= [600]

Total cost=Rs. 600

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CONCLUSION

Our conclusions are that it seems likely that, in the future, large matrix organizations will
see a continued growth in horizontal activity and higher levels of horizontal integration of
business activities, processes and systems.

At the same time we have an enduring need for the capability development and functional
work which rests within traditional vertical functions.

The organizational form that works for you will reflect the realities of your own
organization and its history and aspirations. The structure that works for a legal firm or
advertising agency is unlikely to be the same one that works for a pharmaceutical company or
FMCG organization.

We should not expect uniform organizational forms but rather hybrid organizations with
a mixture of types of structure.

Some activities and tasks will continue to have ‘natural homes’. It is in the interest of the
finance function to make sure there are sufficient qualified accountants moving through the
organization and that long-term developmental focus is ideally suited to a functional structure.

Perhaps the matrix organization structure is a transitional form designed to wean us off
and over-reliance on hierarchy and control and towards matrix management.  Maybe by working
in a matrix we will start to realize that traditional forms of hierarchy and control are not very
effective at delivering some of the fluid, fast changing horizontal activities that are necessary in
today’s organizations.  The growth of social media may accelerate the matrix management trend
by undermining traditional authority, control and information.

Irrespective of the form of organization structure you adopt, it is highly likely that
‘matrix working’, the ability to be effective in this complex, cross functional and fast changing
world, will be essential.

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 BIBLIOGRAPHY

WWW.Google.com

www.wikipedia of matrices.com

Business mathematics text book

Economic text book

Text book of application of matrix

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