6 (1) - Merged

Republic of the Philippines
CAMARINES NORTE STATE COLLEGE

F. Pimentel Avenue, Brgy. 2, Daet, Camarines Norte – 4600, Philippines
NAME OF DELIVERY UNIT
GEC 3 – Mathematics in the Modern World Page 1 of 15

GEC 3 – MATHEMATICS IN THE MODERN WORLD

[TYPE YOUR NAME HERE]
[Type your Academic Rank here]
Contact Details
Contact Number: [Type your Contact Number here]
E-mail Address: [Type your E-mail Address here]
Web Address: [Type your web address or social media link]
Consultation Schedule
[Type your consultation schedule here]
OUTLINE OF LEARNING TOPICS TIME ALLOCATION

C. The Mathematics of Finance Week 16 to Week 18 [Final]
C.1 Simple and Compound Interest
C.2 Credit Cards and Consumer Loans
C.3 Stocks, Bonds, and Mutual Funds
C.4 Home Ownership
INTENDED LEARNING OUTCOMES (ILOs)

At the end of the topic, students should be able to
 Support the use of mathematics in various aspects and endeavors in life
-Compute interest on loans and investments;
-Compute the maturity value of loans and future value of investments;
-Calculate monthly payments on consumer loans and mortgage payments; and
-Explain the advantages and disadvantages of investments in stocks, bonds and mutual funds
INSTRUCTIONS TO THE LEARNERS

This learning material serves as a reflection among one of the flexible learning strategies that complement
the outcomes-based education approach. This material contains the essential discussions for the specified
topic together with a learning activity in order to achieve the indicated intended learning outcomes.
In addition, students will undergo pre-test and post-test short-examination. The pre-test questionnaires will
be given at the start of each rating period (Prelims, Midterms, Finals) while the post-test questionnaires will
be given at the end of each rating period. The results of the assessment will serve as one of the key
indicators that determine the effectiveness of this learning material. Thus, exemplifying honesty and
rectitude in this particular undertaking are highly appreciated and commendable.
Always keep connected and updated with announcements and relevant information concerning this course.
Lastly, do not hesitate to ask for assistance and raise your concerns to your instructor / professor.

C. The Mathematics of Finance

Introduction
Mathematics of Finance is the application of mathematical methods to financial problems. It draws on
tools from probability, statistics, stochastic processes, and economic theory. Traditionally, investment
banks, commercial banks, hedge funds, insurance companies, corporate treasuries, and regulatory
agencies apply the methods of financial mathematics to such problems as derivative securities, valuation,
portfolio structuring, risk management, and scenario simulation. Industries that rely on commodities also
use financial mathematics. Quantitative analysis has brought efficiency and rigor to financial markets and to
the investment process and is becoming increasingly important in regulatory concerns. [1]
C.1 Simple and Compound Interest

Interest is a percentage of some amount of money. It is the payment for the use of borrowed money.
The capital or the sum of money invested is called Principal. The fractional part of the principal that is paid
on the loan is the interest rate and is usually expressed as percent. The time or term of the loan is the
length of time which the money is borrowed. The sum of the Principal and Interest which is accumulated
at a certain time is referred to as Final Amount or Maturity Value.
C.1.1. Simple Interest

The interest “I” earned by an amount of money “P” under simple interest is I = Prt, where “r” is the
rate of interest a year and “t” is the number of years.
Let us refer on the following set of examples

Example No. 1
Find the interest paid to a loan of Php100,000 for 2 years at a simple interest rate of 13%.
Solution:
Given: P = Php 100,000 r = 13% or 0.13 t = 2 years
Using the formula I = Prt
I = (100,000)(0.13)(2)
I = 26,000 The interest paid to the loan is Php 26,000.00
Example No. 2
Martin Lim borrowed Php 75,000 from a lender at a simple interest to be paid in 2 years. If the
interest paid to the load is Php 25,875, what is the rate of interest?
Solution:
Given: P = Php 75,000 I = Php 25,875 t = 2 years
𝐈
Using the formula I = Prt  r= since we are going to compute for r
𝐏𝐭
25,875
r=
75,000 ( 2 )
r = 0.1725 or 17.25% The rate of interest is 17.25%.

Maturity Value and Future Value
When one borrows money from a bank, the borrower must pay the bank an amount of money equal
to the amount of loan plus interest. When one makes a bank deposit, after some period of time, the
depositor expects to get his money back plus interest. The manner by which these two different
business instances.
The total amount of money a borrower pays a lender is called maturity value of a loan which is the
sum of loan and interest. The total amount of money a depositor receives for his deposit is called
future value of an investment (principal) and interest.
The maturity value for simple interest “A” is expressed as A=P+I but since I = Prt
A = P + Prt
A = P (1 + rt)

Example No. 1
Find the maturity value of a 9-month loan of Php 18,500. The rate of interest is 9% per annum.
Solution:
Since the rate of investment is given per annum, the value for t is 9/12 or 0.75 year. Then, the
rate of interest is 0.09.
Using the formula A = P (1 + rt)
A = 18,500 [1 + (0.09)(0.75)]
A = 18,500 [1 + 0.0675]
A = 19,748.75 The maturity value is Php 19,748.75
Example No. 2
The electric cooperative charges their customer 10% simple interest for late payments. You
receive a bill of Php 5,850 for the month of June. If you will pay the bill 2 months past the due
date, how much do you owe to the electric cooperative excluding the amount of electrical
consumption that will be accumulated on the 2-month lapse? (Excluding bill for July and
August).
Solution:
The amount to be paid is the maturity value which consists of the current bill as the present
value and the penaly as the interest value.
Then, the value of t should be expressed in terms of year. Therefore, t = 2/12 year
Using the formula A = P (1 + rt)
2
A = 5,850 [1 + (0.10)( )]
12
A = 5,850 [1 + 0.0166667]
A = 5,947.50
The customer will pay a total bill of Php 5,947.50 to the electric cooperative which includes the
penalty for late payments.

C.1.2. Compound Interest

When interest is periodically added to the principal and this new sum is used as the new principal
for a certain number of periods, the resulting value is called final or compound amount “A”.
𝒓 nt
It is expressed in the formula A=P(1+ ) I=A–P
𝒏
Where: A = Compound Amount
P = Present Value Frequency Value of n
Annually 1
I = Compound Interest
Semiannually 2
r = annual rate of interest
Quarterly 4
t = length of time in a year Monthly 12
n = number of compounding period each year Daily 365

Example No. 1
A company engaged in recycling scraps obtained a loan of Php 650,000 from a bank that
charges an annual interest rate of 13% yearly. The load must be repaid in 3 years. What is the
maturity value of the loan at the end of 3 years?
Solution:
Given: P = Php 650,000 r = 13% or 0.13 n =1 t = 3 years
𝒓
Using the formula A = P(1 + 𝒏)nt
𝟎.𝟏𝟑 𝟏∗𝟑
A = 650,000 (𝟏 + 𝟏
)
A = 650,000 (𝟏. 𝟏𝟑) 𝟑
A = 650,000 (1.442897)
A = 937,883.05 The maturity value is Php 937,883.05
Example No. 2
An account promised to pay 2% interest, compounded daily for 2 years. What is the interest
earned if someone invested Php 25,000?
Solution:
Given: P = Php 25,000 r = 2% or 0.02 n = 365 t = 2 years
𝒓
Solve first the future value using the formula A = P(1 + 𝒏)nt
𝟎.𝟎𝟐 𝟑𝟔𝟓∗𝟐
A = 25,000 (𝟏 + 𝟑𝟔𝟓 )
A = 25,000 (1.040809634) = 26,020.24
Then, the interest earned can be computed as I = A – P
I = 26,020.24 – 25,000.00
I = 1,020.24
The interest earned by an individual who will deposit Php 25,000 is Php 1,020.24.

Learning Activity No. 1 – Abstraction (Critical Thinking)

Instructions: Solve each item correctly by providing the necessary solutions for what is required.
1. How many months will it take for an investment of Php 30,000.00 to earn Php 112.50 at 1.5%
simple interest rate?
2. What is the simple interest on a Php 5,000.00 loan at 3.25% interest to be paid at the end of 9
months?
3. What is the present value of Php 95,000.00 at 13% compounded annually for 7 years?
4. A Php 500,00.00 trust-fund was set up and to be used by an 8-year old niece when she goes to
college. In 10 years, how much will the fund be if the investment rate is 9.75% compounded
quarterly?
5. What amount of money will be required to pay back a loan of Php 78,400.00 at 12% compounded
quarterly for 8 years and 6 months?
C.2 Credit Cards and Consumer Loans

C.2.1. Credit Cards
Whenever consumers use credit cards to buy goods and services, they are receiving a loan from a
credit card company or from a bank which issues the credit card. As a result, they are paying for an
added cost whenever they buy with credit cards. These costs can be in the form of annual fees,
interest charges on purchases, or finance charges.
Finance Charges (based on PNB Credit Cards)

Much of the interest paid as a result of using credit cards has to do with finance charges. The most
common method to determine finance charges is based on daily balance.
Under the daily balance method, interest incurred a day is computed from the product of the daily
rate of interest ( rd ) and daily balance. Most banks in the Philippines advertise their rates of interest in
terms of monthly interest rate, but when computing for the daily interest, they use the daily interest rate
rd. To compute total interest earned for one billing period, we simply obtain the sum of daily interests
for that billing period.
DAILY INTEREST RATE “rd”

𝑟
Given a monthly interest rate of r, the daily interest rate is rd = 30
DAILY INTEREST "𝜤d”

Given a balance for the day of 𝓍, daily interest is Id = rd (𝓍)
MONTHLY INTEREST “𝜤" I = Σ 𝛪d
Table for FINANCE CHARGE ON CREDIT CARD PURCHASES FOR ONE BILLING PERIOD
𝑟
1. Given monthly interest r, find rd rd =
30
2. Given a balance of 𝓍 for a day, find daily interest Id Id = rd (𝓍 )
3. Find total interest I earned for the billing period. 𝛪 = Σ Id

Let us refer on the following set of example

Example – FINANCE CHARGE ON CREDIT CARD PURCHASES
An unpaid bill of Php 2,000.00 had a due date of April 10. A payment of Php 1,000.00 was
made to the credit card company on April 15. Another expense of Php 500.00 was charged to
the credit card on April 30. The credit card is used under a monthly interest rate of 3.25%, find
the finance charged on the May 10 bill.
Solution:
Let us introduce a summary of daily unpaid bills, payments, and credit card purchases from the
billing period 10 April to 9 May.
Date Payment or purchases Daily Balance

10 April 2,000
15 April -1,000 1,000
30 April 500 1,500
Monthly interest rate of r = 3.25%
We shall open an excel document and compute the daily interest based on a monthly interest
0.0325
rate of 3.25%. Take note that rd = . See table on the next page.
30
A financial charge of Php 43.875 for the period 10 April to 9 May will appear in the billing
statement for 10 May. Thus, the starting balance for 10 May is Php 1,543.875.
To reduce finance charges, one simply has to pay the balance promptly. Zero balance for a day
means zero interest earned for that day. After you make a purchase with your credit card, the
bank gives you a grace period – typically between 20 and 30 days – during which you can pay
off that purchase before interest begins to accrue.
Unlike a loan which has a fixed end date and regular monthly payments, with a credit card, you
choose how much you repay each month – a minimum payment, a partial payment or your
entire balance. With few exceptions, responsible credit card users always pay their balances in
full every month.
Grace periods are powerful because they give you the opportunity to use your credit card as a
short but interest – free loan. As long as you pay every penny you charged last month before
the due date, you won’t pay interest on credit card purchases. Unfortunately, many people do
not pay their credit card balance in full each month, resulting to accumulated results.
Follow these credit card tips to help avoid common problems:

1. Pay off your balance every month.
2. Use the card for needs, not wants.
3. Never skip a payment.
4. Use the credit card as a budgeting tool.
5. Use a reward card.
6. Stay under 30% of your total credit limit.
7. Protect yourself from credit fraud.
Payment or Daily
Day Date Balance Daily rate
Purchase Interest
1 Apr-10 2,000.00 0.0010833 2.1666667
2 Apr-11 2,000.00 0.0010833 2.1666667
3 Apr-12 2,000.00 0.0010833 2.1666667
4 Apr-13 2,000.00 0.0010833 2.1666667
5 Apr-14 2,000.00 0.0010833 2.1666667
6 Apr-15 2,000.00 -1,000 0.0010833 2.1666667
7 Apr-16 1,000.00 0.0010833 1.0833333
8 Apr-17 1,000.00 0.0010833 1.0833333
9 Apr-18 1,000.00 0.0010833 1.0833333
10 Apr-19 1,000.00 0.0010833 1.0833333
11 Apr-20 1,000.00 0.0010833 1.0833333
12 Apr-21 1,000.00 0.0010833 1.0833333
13 Apr-22 1,000.00 0.0010833 1.0833333
14 Apr-23 1,000.00 0.0010833 1.0833333
15 Apr-24 1,000.00 0.0010833 1.0833333
16 Apr-25 1,000.00 0.0010833 1.0833333
17 Apr-26 1,000.00 0.0010833 1.0833333
18 Apr-27 1,000.00 0.0010833 1.0833333
19 Apr-28 1,000.00 0.0010833 1.0833333
20 Apr-29 1,000.00 0.0010833 1.0833333
21 Apr-30 1,000.00 500 0.0010833 1.0833333
22 May-01 1,500.00 0.0010833 1.6250000
23 May-02 1,500.00 0.0010833 1.6250000
24 May-03 1,500.00 0.0010833 1.6250000
25 May-04 1,500.00 0.0010833 1.6250000
26 May-05 1,500.00 0.0010833 1.6250000
27 May-06 1,500.00 0.0010833 1.6250000
28 May-07 1,500.00 0.0010833 1.6250000
29 May-08 1,500.00 0.0010833 1.6250000
30 May-09 1,500.00 0.0010833 1.6250000
SUM 43.875
C.2.2. Consumer Loans

Loan, which in Filipino is utang, is a part of Filipino culture. Most Filipinos rarely get by without
asking someone or some institution to lend them money. As a society, we observe two cultures on
issues of loans. One is based on the informal lending culture where agreements are never set on
paper. It is verbal. Five-six is the example of this lending culture. It is called five-six because the interest
paid is 20% of the loan. If one borrows 5 pesos, the borrower ought to pay the lender 6 pesos, which is
equal to the principal amount of loan (5 pesos) plus interest of 1 peso which is 20% of 5 pesos.
Formal lending culture takes place between consumers on one side and private lenders and banks
on the other. Private lenders are not banks, they are registered companies whose occupation is to lend
money and collect interest. Consumers seek out their services mostly for short term loans, small loans,
and loans that do not require too many documents.

Lenders observe different schemes to compute interest: diminishing interest, recurring interest, etc.
In this section, we shall illustrate how to compute monthly payments to loans based on simple and
compound annual interest only.
Calculating Periodic Payment
We shall introduce the payment formula for periodic payments on many consumer loans, such as
car loans, housing loan, etc. The PMT formula calculates the payment for a loan that has constant
payments and a constant rate of interest. Most scientific calculators have a formula for PMT, and all
accounting software also do. Excel has a PMT function whose inputs are periodic interest rate, and total
number of payment. PMT is short for payment.
PMT Formula for Consumer Loans

Payment for a loan with an annual rate of interest r is given by
𝑃𝑉(𝑖)
PMT =
1−( 1+𝑖)𝑛𝑡
𝑟
where PMT is the amount of payment, PV the amount of loan, i the periodic rate of interest I = 𝑛 , n
number of payments in a year, and t number of years.
EXCEL PMT FUNCTION
= PMT (rate, nper, pv, [fv], [type])
Rate is the periodic rate of interest, nper the number of periodic payments (n times t), fv and type are
optional.

Example No. 1
Mr. and Mrs. Cruz bought a laptop computer for Php 29,000.00 for their son. They paid 20%
down payment and agreed to pay the balance and finance charge in 12 equal monthly
installments. Finance charge on the balance is 18% simple interest. Find the a) Amount of down
payment; b) Balance: c) Finance charge and d) Monthly installment.
Solution:
a) For the down payment
Down payment = 29,000.00 x 0.20 = Php 5,800.00
b) For the balance

Balance = 29,000.00 x 0.80 = Php 23,200.00 or
Balance = 29,000.00 - 5,800.00 = Php 23,200.00
c) For the finance charge

Finance charge = 23,200.00 x 0.18 = Php 4,176.00
d) For the monthly installment

Monthly installment = (23,200.00 + 4,176.00) / 12 = Php 2,281.33

Example No. 2
Mr. Cruz promises to buy his daughter a sports utility vehicle if she graduates on time. The car
he has in mind has a sticker price of 2 million pesos and under the new tax scheme is subject to
20% excise tax. Down payment is 40% full contract price (2 million + excise tax) and annual
interest rate is 5.9%. Ignoring other fees, what is his monthly payment for the car if he wishes to
complete it in 60 months?
Solution:
Item Particulars Computation
Sticker price Php 2,000,000.00 Php 2,000,000.00
Excise tax 20% of tag price 2,000,000.00 x 0.20
= Php 400,000.00
Full contract price Price + taxes Php 2,400,000.00
5.90% 0.059
Number of payments a year “n” 12 12
Number of years “t” 5 5
Total number of monthly 12 x 5 = 60 12 x 5 = 60
Payments “n x t”
𝑟
Periodic rate of interest i i= 𝑛 0.00492
Down Payment 40% of full contract price 2,400,000.00 x 0.40
= Php 960,000.00
Loan (balance) 60% of full contract price 2,400,000.00 x 0.60
= Php 1,440,000.00
Monthly payment PMT = __PV ( i )__ (1,440,000)(0.00492)
1 – ( 1 + i )-nt 1 − (1 + 0.00492)−60
= Php 27,775.00

Instructions: Fill in the blanks and calculate the monthly payments for a car loan having the details as
provided below.
Item Computation
Sticker price of a car Php 1,700,000.00
Excise tax 20%
Licensing Fee Php 20,000.00
Down Payment 35%
Annual interest rate “r” 6.0%
Number of payments a year 12
Number of years 3
Periodic rate of interest i Answer:
Loan PV Answer:
PMT Answer:

C.3 Stocks, Bonds, and Mutual Funds

C.3.1. Stocks
A stock is a share in the ownership of a company. Anyone who can wave a stock of a company can
rightfully claim he or she is part owner of that company. A stock also goes by other names, such as a
share or equity.
Imagine you won a stock certificate of Bank of the Philippine Islands (BPI). This means you are part
owner of a big bank. The percentage of ownership depends on how many of the company’s share
owns. For example, if you own 10,000 shares of common stock in a corporation that has 100,000
outstanding shares, you own 10,000/ 100,000 or 10% of company’s assets.
Why would anyone be interested to own stocks? Since a stockholder is a part owner of a company,
he or she has a claim on everything the company owns including the company’s earnings. However, it
does not mean that a person who is part owner would have a big say in how the company is managed.
Stockowners do have a say, for example, on who sits as members of the board of directors of the
company, but that right is one vote per share. The more stocks one owns, the more influence he or she
has in the affairs of the company.
Benefits
A stockholder can make money from his shares when the company pays dividends. A dividend is a
sum of money paid by the company to its shareholders out of its profits. A stockholder can also make
money when the company gets bankrupt and must be liquidated. Liquidation is a process in which the
company’s assets and properties are redistributed to its shareholders. Moreover, a stockholder can
make money from his stock certificates by selling them to buyers at a price higher than what he or she
paid for them.
A DIVIDEND is a sum of money paid by the company to its shareholders out of its profits.
LIQUIDATION is a process in which the company’s assets and properties are redistributed to its shareholders.
A DIVIDEND YIELD is the ratio of dividend over stock price. It is expressed in percent.
Figure: Stock Certificate. A stock certificate is a piece of paper that is a proof of ownership. Today,
Stock certificates are kept by stockbrokers in the form of an electronic document so that it can be easily
traded in the stock market.

Why companies issue Stocks?

Sometimes a company needs money to expand business or buy machineries. Instead of borrowing
money from the banks, a company can decide to issue stocks. By issuing stocks, the company acquires
capital but not obligated to pay back stockholders.
Risks
There are risks that come with buying stocks. Risk is synonymous with stock market business.
Companies do sometimes pay out dividends, but many of them do not (Fontinelle A., 2017). Further,
when companies go bankrupt, stock certificates becomes worthless. Without dividends, a stockholder
makes money on stocks only through its appreciation in the open market, that is, when somebody buys
a stock at a price more than what a stockholder paid for it. Even though risks that accompany stock
market investments sound discouraging, the bright side of stock ownership is it historically outperforms
other investments such as bonds and savings accounts. Over the longer term, stock ownership
historically had an average return of around 10% a year (Perrit Capital Management Inc., 2018).
Ordinary time deposits in the Philippines earn only 1.125% a year on average.
Dividend, Dividend Yield and Stock Price

How we compute for these quantities, dividend, dividend yield, and stock price, is analogous with
how we compute for interest rate, and principal. Stock market language is a bit intimidating for novice
investors, but the fundamental mathematical relation is one about simple interest.
Dividend, Dividend Yield and Stock Price

I = Pr
P is stock price(principal), r dividend yield, and I dividend
MARKET VALUE refers to the price of a share of stock for which a shareholder is willing to sell that share
and a buyer is willing to buy it.
OPEN is the column in a stock market report indicating the opening price of a stock.
CLOSE is the column in a stock market report indicating the closing price of a stock.

Example
A company pays an annual dividend of Php 0.50 per share to their shareholders. You own 1,000
shares of the company’s common stock which you bought at Php 10.00 a share. Find the a)
total dividend you ought to receive for your shares; and b) dividend yield of your share.
Solution:
For a) A total dividend is dividend per share times number of shares.
𝑃ℎ𝑝
0.50 𝑠ℎ𝑎𝑟𝑒 x 1,000 share = Php 500.00
For b) Dividend yield is divided per share divided by purchase price of each share.
𝑃ℎ𝑝 𝑃ℎ𝑝 0.50
0.50 𝑠ℎ𝑎𝑟𝑒 ÷ 10.00 𝑠ℎ𝑎𝑟𝑒
= 10.00
= 0.05
Dividend yield is 0.05 or 5%

C.3.2. Bonds
A bond is a loan. A holder of a bond is the lender (creditor), the one who issues the bond is the
borrower (debtor), and the interest that has to be paid is called coupon. Through bonds borrowers
receive external funds to finance investments, or in the case of government bonds, to finance
government planned expenditures.
A BOND is a fixed income investment in which an investor lends money to companies or governments which
borrow funds for a defined period of time at a variable or fixed rate of interest, called coupon.
Bond owners are creditors or debt holders. Entities who receive a loan through bonds are issuers.
Difference between Stocks and Bonds

Both are securities, but the major difference being, stockholders have an equity stake in the
company (part owners of the company). Bondholders, on the other hand, have a creditor stake in the
company (lenders to the company) and are not part owners. In the event of the bankruptcy for example,
bondholders must be repaid first before stockholders get their share of the company after the
liquidation. Another difference is bonds have a defined term or maturity. When it reaches its term, the
bond must be redeemed, the debtor must repay the lender. Stocks however, are typically outstanding.
A shareholder keeps the stocks until he or she decides to sell them.
Let us enumerate some parallel terms between stocks and bonds.
Issuer of
Investment Owners Interest Money out Future Value
Securities
Stockholders/
Stocks Company Interest Rate Principal Future Value
Shareholders
Bonds Lenders Borrower Coupon Loan Maturity
FACE VALUE is the nominal value or price paid for a bond, also called par value or simple par.
MATURITY DATE refers to the date when the borrower must pay back the bondholder.
COUPON refers to the rate of interest that must be paid to a lender.

Example
A bond with a par value of Php 1,000,000.00 has a coupon of 4.625% and a 5-year maturity
date. Use simple interest to find the interest and maturity value of the bond.
Solution:
For the interest: P = Php 1,000,000.00 r = 0.04625 t = 5 years
I = Prt = (1,000,000.00)(0.04625)(5) = Php 231,250.00
For the Maturity Value A = P (1 + rt)

A = (1,000,000.00)[1 + (0.04625)(5)] = Php 1,231,250.00

C.3.3. Mutual Funds

A mutual fund is a pool of money managed by a company which buys and sells stocks, bonds, and
other assets for profit. An investors who buys shares in a mutual fund contributes to the fund along with
other investors. As mutual fund, investors share the fund’s profit and losses. A company engaged in
managing mutual funds is called an investment trust.
Investment trusts are companies not engaged in manufacturing goods or providing services to
consumers. Their assets are primarily stocks and bonds. Essentially, they are investors in stock and
bond markets: they buy stocks and bonds in the hopes these will increase in value and return profit
when sold.
Net Asset Value

The net asset value of a mutual fund is partly a measure of fund’s performance based on value per
share. It reflects the value of each share of stock in the fund. Like stock prices, they are regularly
computed once a day, and reported in stock markets.
𝑨−𝑳
Net Asset Value of a mutual Fund NAV is given by NAV =
𝑵
Where A is total assets, L Liabilities and N the number of total outstanding shares.

Example
An investment trust manages a mutual fund which has Php 100,000,000.00 worth of stocks, Php
50,000,000.00 worth of bonds, Php 25,000,000.00 in cash, and liability of Php 1,000,000.00.
The fund has 10 million shares outstanding. Find the net asset value.
Solution:
Given: A = 100,000,000.00 + 50,000,000.00 + 25,000,000.00 = 175,000,000.00
L = 1,000,000.00
N = 10,000,000
𝐴−𝐿 175,000,000−1,000,000
Using the formula NAV = 𝑁
= 10,000,000
NAV = 17.4
C.4 Home Ownership

Filipino couples who acquire a home through a loan often do it through mortgage. A mortgage is a
legal agreement between an owner of a property, for example house and lot, and a lender which gives a
conditional right of ownership to the lender as security for the loan.
The lender’s security interest is recorded in the register of title documents to make this agreement
public. The mortgage is voided upon full payment of the loan. All legal acquired assets can be mortgage
but assets most commonly put on mortgage are land and buildings.
Mortgage Payments
To calculate mortgage payments, we follow PMT formula to obtain regular payments for consumer loans.


Example
Find monthly amortization for a housing loan of Php 750,000.00 to be paid in 4 years with an
interest rate of 12% a year.
Solution:
Loan Php 750,000.00
Annual rate of interest 12%
Number of payments in a year 12
Number of years 4
Total number of payments 12 x 4 = 48
𝑟
Periodic rate of interest i i = = 0.01
𝑛
Monthly amortization PMT = _ PV ( i ) _ = 750,000.00 (0.01)
1 - (1 + i)-nt 1 - (1 + 0.01)-48
= Php 19,750.38

1. A company pays an annual dividend of Php 0.50 per share to their shareholders. You own 1,100
shares of the company’s common stock which you bought at Php 10.00 a share. Find the a) total
dividend you ought to receive for your shares; and b) dividend yield of your share.
2. A bond with a par value of Php 1,000,000.00 has a coupon of 5% and a 5-year maturity date. Use
simple interest to find the interest and maturity value of the bond.
3. An investment trust manages a mutual fund which has Php 100,000,000.00 worth of stocks, Php
60,000,000.00 worth of bonds, Php 20,000,000.00 in cash, and liability of Php 1,500,000.00. The
fund has 10 million shares outstanding. Find the net asset value.
4. Find monthly amortization for a housing loan of Php 1,000,000.00 to be paid in 4 years with an
interest rate of 12% a year.
References:
https://financial.math.ncsu.edu/what-is-financial-math/
Reyes, Juan Apolinario C., Mathematics in the Modern World, c. 2018
Guillermo, Raflyn M. et.al, Mathematics in the Modern World, c. 2018
Rodriguez, Mary Joy J. et.al, Mathematics in the Modern World, c. 2018



Contact Details

B. Mathematics as a Tool Week 13 to Week 15 [Final]
B.2 Geometric Designs
-Terminologies
-Recognizing and analyzing geometric shapes
-Transformations
-Patterns and Diagrams
-Designs, Arts and Culture

-Know and identify the different geometric concepts;
-Apply geometric concepts especially isometrics in describing and creating designs; and
-Appreciate the contribution of geometric designs to the enrichment of culture and arts with the use
of geometric concepts


B Mathematics as a Tool
Introduction
Mathematics is a powerful tool for global understanding and communication. Using it, students can
make sense of the world and solve complex and real problems. Rethinking math in a global context offers
students a twist on the typical content that makes the math itself more applicable and meaningful for
students. For students to function in a global context, math content needs to help them get to global
competence, which is understanding different perspectives and world conditions, recognizing that issues
are interconnected across the globe, as well as communicating and acting in appropriate ways. In math,
this means reconsidering the typical content in a typical ways and showing students how the world consists
of situations, events and phenomena that can be sorted out using the right math tools. In this learning
material, you will find out how mathematics is applied as a powerful tool in our nature.
B.2 Geometric Designs

Geometry can help enhance one’s artistic prowess as well as enrich one’s own culture. According to
Rachel Bernstein and Eunice Lee (2011), Geometry is everywhere. We can train ourselves to find the
geometry in everyday objects and in works of art. Line, shape, form, pattern, symmetry, scale, and
proportion are the building blocks of both art and mat.
Geometry offers the most obvious connection between two disciplines. Both art and math involve
drawing and the use of shapes and forms, as well as an understanding of spatial concepts, two and
three dimensions, measurement, estimation, and pattern. Many of these concepts are evident in an
artwork’s composition, how the artist uses the elements of art and applies the principle of design.
Problem-solving skills such as visualizations and spatial reasoning are also important for artists and
professionals in math, science, and technology. By taking an interdisciplinary approach to art and
geometry, students can identify and apply authentic connections between the two subjects and
understand concepts that transcend the individual disciplines.
B.2.1. Terminologies
 Line. Lines vary in width, length, curvature, color, or direction.
 Shape. Shapes/Plane figures are two-dimensional figures in which all points lie in the same
plane. Shapes can be open or closed, free-form or geometric.
 Form. Forms/Space or solid figures are three-dimensional (having height, width, and depth),
enclosed volume (or mass), and help us to understand physical space. For example, a triangle,
which is two-dimensional, is a shape. But a pyramid, which is three-dimensional, is a form.
Cubes, spheres, pyramids, cones, and cylinders are examples of forms. They can be literally
three-dimensional or they can have the illusion of three-dimensions.
 Pattern and Repetition. Repetition is the recurrence of elements of art at regular intervals.
When lines, shapes, and forms repeat in a predictable combination, they form a pattern. The
pattern of this quilt is a tessellation, a collection of shapes that fit together to cover a surface
without overlapping, or leaving gaps. Tessellations can be seen in almost every brick wall, tiled
floor or wall, quilt pattern, lace tablecloth, fabric, and wallpaper pattern. Create your own
tessellation using shapes that are congruent, or exactly the same in size and outline. Make a
simple tessellation using a regular polygon such as a square, triangle, or rhombus (diamond)
and trace the shape repeatedly, side by side.

 Balance is the arrangement of elements to create a sense of equilibrium and harmony. There
are three types of balance: symmetry, asymmetry, or radial symmetry.
 Symmetry is a type of balance in which the shapes and patterns are identical on either side of a
central boundary; the two halves of a work mirror each other.
 Asymmetry is an arrangement of parts in which the opposite sides, divided by a central line, are
not identical.
 Radial symmetry is a form of symmetrical balance in which elements of a composition radiates
from a central point in a regular, repeating pattern. Radial symmetry can be found in nature in
flowers, starfish, jellyfish, crystals, and snowflakes
 Proportion. In art, proportion is the principle of design concerned with the size of relationships
of parts of a composition to each other and to the whole. In math, proportion is the ratio or
relation of one part or another to the whole with respect to size, quantity, and degree.
 Perspective. Perspective is a system for representing three-dimensional objects, viewed in
spatial recession, on a two-dimensional surface. The simplest form of perspective drawing is
linear perspective, a system that allows artists to trick the eye into seeing depth on a flat
surface. Linear perspective uses sets of implied lines called converging or orthogonal lines that
move closer together in the apparent distance until they merge at an imaginary vanishing point
in the horizon. One-point perspective uses lines that lead to a single vanishing point; two-point
perspective uses lines that lead to two different vanishing points.
Learning Activity No. 1 – Abstraction (Visual Analysis)

Instructions: Identify the geometric shapes found in the picture and interpret the meaning. Discuss your
answers with others. Source: http://blog.visme.co/geometric-patterns
B.2.2. Recognizing and Analyzing Geometric Shapes

Analyzing geometric shapes (Vojkuvkoua, 2012) can be done using the Van Hiele Theory of
Geometric Thinking. According to Pierre van Heile, there are five levels of thinking and understanding
in geometry:
Level 0 – Visualization (Basic visualization or Recognition)

At this level, the pupils use visual perception and nonverbal thinking. They recognize geometric
figures by their shape as “a whole” and compare the figures with their prototypes or everyday things
(“it looks like door”) categorize them (“it is / it is not a…”). They use simple language. They do not
identify the properties of geometric figures. The pupils describe figures on the basis of their
appearance.
Example: Squares and rectangles seem to be different.
Level 1 – Analysis (Description)

At this level pupils (students) start analyzing and naming properties of geometric figures. They do
not see relationships between properties. They think all properties are important. (There is no
difference between necessary and sufficient properties). They do not see a need for proof of facts
discovered empirically. They can measure, fold and cut paper, use geometric software. The
students describe shapes on the basis of their properties.
Example: Rectangles have four right angles.

Level 2 – Abstraction (Informal Deduction or Ordering or Relational)

At this level pupils or students perceive relationships between properties and figures. They create
meaningful definitions. They are able to give simple arguments to justify their reasoning. They can
draw logical maps and diagrams. They use sketches, grid paper, and geometric software. The
students recognize the importance of properties and the relationships among them, which assist
students in logically ordering the properties of the shapes.
Example: Simple deduction can be followed, but proof is not understood.
Level 3 – Deduction (Formal deduction)

At this level, the students can give deductive geometric proofs. They are able to differentiate
between necessary and sufficient conditions. They identify which properties are implied by others.
They understand the role of definitions, theorems deductively.
Example: Proofs can be written with understanding.
Level 4 – Rigor
At this level, the students understand the way mathematical systems are established. They are able
to use all types of proofs. They comprehend Euclidean and non-Euclidean geometry. They are able
to describe the effect of adding or removing an axiom on a given geometric system. The students
establish and analyze theorems in different postulations systems.
Example: Non Euclidean geometry can be understood.
Properties of the Levels

It is inherent the Van Heile Theory that one considers the following properties.
1. Fixed sequence (order). A student cannot be at level N without having gone through level (N-1).
Therefore, the student must go through the levels in order.
2. Adjacency. At each level, what was intrinsic in the preceding level becomes extrinsic in the
current level.
3. Distinction. Each level has its own linguistic symbols and its own network of relationships
connecting those symbols. The meaning of a linguistic symbol is more than its explicit definition;
it includes experiences, which the speaker associates with the given symbol. What may be
“correct” at one level is not necessarily correct at another level.
4. Separation. Two persons at different levels cannot understand each other. The teacher speaks a
different “language” from the student who is at a lower level. The Van Hieles thought says that
this property was one of the main reasons for failure in geometry.
5. Attainment. The learning process leading to complete understanding at the next level has five
phases – information, guided orientation, explanation, free orientation, integration, which are
approximately not strictly sequential.
B.2.3. Transformations
According to Jennifer Beddoe, (2003) in geometry, transformation refers to the movement of objects
in the coordinate plane. Geometric transformations involve taking a preimage and transforming it in
some way to produce an image. There are two different categories of transformations:
1. The rigid transformation, which does not change the shape or size of the preimage.
2. The non-rigid transformations, which will change the size but not the shape of the preimage.
Types of Transformations
Within the rigid and non-rigid categories, there are four types of transformations. Three of them fall
in the rigid transformation category, and one is a non-rigid transformation.
1. Rotation is rotating an object about a fixed point without changing its size or shape
(Source: https://www.mathisfun.com/geometry/transformations.html)
2. Translation is moving an object in space without changing its size, shape or orientation. A
translation is performed by moving the preimage to the requested number of spaces.
3. Dilation is expanding or contracting an object without changing its shape or orientation. This is
called resizing, contraction, compression, enlargement or even expansion. The shape becomes
bigger or smaller:
4. Reflection is flipping an object across a line without changing its size or shape.
Learning Activity No. 2 – Abstraction (Visual Analysis)

Instructions: Satisfy what each item requires.
1. Which figure represents the translation of the shaded figure?
Source: https://study.com/academy/lesson/transformations-in-math-definition-graph-quiz.html
2. Which type of transformation is represented by this figure?
B.2.4. Patterns and Diagrams

The Psychology of Shapes
From Siddanth Pillai (Kayla Darling, 2018), the most common shapes are the rectangles, circles,
triangles, rhombuses, and hexagons. They can be broken down into something like the following:
This psychology of shapes presents the shape and their meaning. The perceived meanings that
rectangles/squares exude are balance and tradition; circles are for infinity, protection and femininity.
Triangles are for stability, energy, and aggression. Rhombus are for vibrant and contemporary and
hexagon is for unity and balance.
According to Kayla Darling (2018) shapes are the bases of most images and designs. Different
shapes can evoke different meanings. Combining these shapes in different ways can create entirely
new meanings. For example, creating something out of rectangles and triangles could emphasize a call
to return to tradition. (http://blog.visme.co/geometric-patterns/#OVEqrhrJi2TVv5Tw.99)
Geometric patterns are a collection of shapes, repeating or altered to create a cohesive design.
How to use geometric patterns in designs

Kayla Darling enumerated 40 brilliant ways on how to use geometric pattern in the designs.
1. Use patterns to create images. Simple shapes, on their own, can be appealing; using a variety of
shapes to create a whole image, however, can work even better. Using various shapes creates a vibrant
landscape. Keep in mind what kind of shapes will work well for your subject and you can create
something spectacular.
2. Play with asymmetry. Not all geometric patterns have to be symmetrical; sometimes creating something
where shapes and lines differ across the board can create a striking effect.
3. Combine patterns with photos. Geometric patterns can be great, creative way to spice up ordinary
photos.
4. Use lighting and shadows creatively. Shadows and highlights can be used to enhance shapes and
sometimes create them.

5. Connect shapes in unique ways. Shapes can create images; exploring how those shapes connect can
create new and interesting effects.
6. Make a collage. Collage is a piece of art made by sticking various different materials such as
photographs and pieces of paper or fabric onto a backing. Try making a collage out of different shapes---
something that guides viewers and makes your pattern easier to the eyes.
7. Use diagonals. Diagonals create a clear path for the eye to follow, offering the bonus of cohesive design.
Using diagonal patterns projects a beautiful juxtaposition of images and colors.
8. Create isometric patterns. Isometric patterns-or patterns that appear to be 3-dimensional really make an
image pop, if used correctly. Using hard colors to create the illusion that the shapes pop off the page.
Used sparingly and creatively, this can draw attention to specific items or words.
9. Create patterns with font. If you want to really stretch your creativity, try using the typeface itself to
create your patterns. Using a variety of triangles and hard lines produces a jagged, edgy effect. Creating
patterns this way can help with whatever tone you might like for your site or product.
10. Play with symmetry. While asymmetry creates a more free-flowing, fun look, symmetry can be used in
geometric patterns to create something more elegant.
11. Use patterns within patterns. If you want something more complex, including geometric patterns within
already existing shapes can be the way to go.
12. Keep it simple. Conversely, not everything has to be complex—simple shapes can be just as appealing.
There is beauty in simplicity.
13. Think about different ways to use lines. Lines are the most basic elements of any shape; using them
creatively can help create new effects and can create a nice flow between images and information.
14. Create a theme. Patterns on their own are great; patterns used to connect images are even better,
especially when those patterns all relate to one another.
15. Use gradients. Everyone loves a good color scheme; geometric gradients can enhance that, making a
gradient background or image pop. Using simple gradients between shapes, in some cases makes the
shapes almost blend together' & in others making them stand out even more.
16. Create characters. Geometric patterns can create not only images but also character.
17. Combine several different images. Shapes can be used to combine several different images together—
in ways that may both be expected and unexpected. Experiment with what images might work well
together—and how they might change the image as a whole—and use different shapes to make it all
come together.
18. Emulate an effect with shapes. Shapes can be incredibly effective if used to resemble certain actions
or consequences. Using shapes like this can add meaning and vibrancy to images; at the very least, it
creates a startling picture.
19. Create a background. If you want something a little subtler, try sticking to a simple geometric
background. These can add a little excitement to a website or presentation, without being too obvious and
distracting.
20. Create overlapping shapes. Sometimes, all it takes is a simple trick to create complexity— Experiment
with how different shapes overlap, and see what might work for you.
21. Relate patterns to the subject. Give the pattern a purpose by relating it directly to the subject. Using a
leaf pattern to surround a lemon reflects the subject matter.
22. Use patterns in the letters. You can create patterns within the letters.
23. Use a pattern to alter images. You can use patterns to alter parts of an already existing image.
Geometric Ph0tography, for example, uses shapes to shift around where certain pieces Of the image are.
Shifting different parts of an image can create a different effect, and can create something quite original.
24. Choose colors that work together. Whenever using colors with geometric patterns, you'll want to make
sure you have those that work well together especially if they happen to be on shapes that border each
other.
25. Use shapes that enhance the experience. Find shapes that fit and flow well together, and that create
more seamless whole, rather than something that seems thrown together.

26. Create unique effects. You can use a lot of different styles and shapes to create something completely
your own. For example, you can use shapes that create the illusion of a reflection, such as in this case.
Combining different shapes lighting, and colors can produce different effects and illusions, and gives you
a lot of material to work with.
27. Create a border. A border is a good way to enhance an image with shapes, without being too distracting.
28. Add simple animation. With technology, we have the benefit of enhancing various geometric patterns for
the internet—like, for example, adding simple, alternating animation between two geometric patterns.
29. Make it subtle. Not everything has to be obvious; subtle shapes can be just as effective.
30. Use patterns to segment information. Patterns are a great way to separate and categorize information,
making it easier for viewers to find.
31. Create hand-drawn patterns. Traditional art appeals to nostalgia, and allows you to create something a
bit more personal.
32. Use patterns to highlight certain elements. Patterns and lines are quite effective at drawing the eye to
certain elements.
33. Combine several patterns. You don't have to stick to one pattern—using multiple makes the image more
engaging.
34. Choose uncommonly used shapes. No one says you have to stick to the standard circles, squares, and
triangles; in fact, a design might work better using less traditional shapes.
35. Create a "web" between shapes. Lines are great at drawing the eye to elements; why not use them to
create a web between different subjects. Use it to make connections between several subjects, make a
more appealing design, or something else entirely.
36. Limit complex patterns. Complex patterns are great, but too many can be overwhelming. Fiore provides
an interesting. Know how and where to use your pattern, and you’ll be more likely to keep your viewers'
attention.
37. Make it good in black and white. Not every pattern needs color; keeping it black and white can be just
as appealing, and can make a pattern more widely applicable.
38. Incorporate real-life elements. If you want something that screams "personal," try including geometric
patterns that you see in your everyday workplace.
39. Accent other material. You don't have to leave the pattern on certain subjects—you can branch across
various products.
40. Use patterns sparingly. Probably the simplest tip, but one of the easiest to forget: less is more.
Geometric patterns don't need to be plastered all over your page.
B.2.5. Designs, Arts, and Culture

Geometric Concepts Enriching Filipino Culture and Arts
According to Dr. De Las Perias (Versoza, 2014) various geometric elements and algebraic
structures are present in the elegant colored repeating patterns of mat weaving. She highlighted the
fact that even without advanced mathematical training, the weavers are able to create, by hand,
complex geometric designs depicting advanced levels of geometry and algebra using a combination of
a weaving and counting technique. Interestingly, these motifs are woven directly into the mats relying
only on a mental blueprint, without any need for paper or pencil. She stressed that an important feature
unique to the Jama Mapun weaving is the "tupi" or fold. This fold allows the weaver to weave 'designs
directly into the mat by controlling the direction of a colored pandan leaf. This clever technique, she
perceives, will play a significant role in the development of mathematical theories in the geometry of
colored Woven fabrics. It is clear that the Jama Mapun community can help enrich mathematical
education and research. Being part of this research, she and others found out the finite designs and
repeating patterns occurring in art forms of various Philippine ethnic communities are studied through
an analysis of their symmetry groups and colored symmetrical structures.
The different algebraic structures can be used as a framework to distinguish the artwork coming
from a particular cultural community. Another part of this research is the development of material for
integrating an analysis of Philippine art forms within the school or' university curriculum. The
interdisciplinary lessons can be used to teach concepts of geometry and algebra, history, social studies,
art and Philippine culture. It is anticipated that this study's focus on the mathematics inherent in local
designs can promote better appreciation for Philippine heritage and culture.
EUCLID (fl. 300 BC)

Sometimes given the name Euclid of Alexandria to distinguish him from Euclides of Megara, was a
Greek mathematician, often referred to as the “founder of geometry” or the “father of geometry’. He was
active 'in Alexandria during the reign of Ptolemy I (323—283 BC). His Elements is one of the most
influential works in the history of mathematics, serving as the main textbook for teaching mathematics
(especially geometry) from the time of its publication until the late 19th or early 20th century, In the
Elements, Euclid deduced the theorems of what is now called Euclidean geometry from a small set of
axioms. Euclid also wrote works on perspective, conic sections, spherical geometry, number theory,
and rigor (https://en.wikipedia.org/wiki/Euclid).
Euclid is the anglicized version of the Greek name Εὐκλείδης, which means 'i renowned, glorious". In
addition to the Elements, at least five works of Euclid have survived to the present day. They follow the
same logical structure as elements, with definitions and proved propositions.
Data deals with the nature and implications of "given" information in geometrical problems; the subject
matter is closely related to the first four books of the elements.
On Divisions of Figures, which survives only partially in Arabic translation, concerns the division of
geometrical figures into two or more equal parts or into parts in given ratios. It is similar to a first-century
AD work by Heron of Alexandria
Catoptrics, which concerns the mathematical theory of mirrors, particularly the images formed in plane
and spherical concave mirrors. The attribution is held to be anachronistic however by J J O'Connor and
E F Robertson who name Them-of-Alexandria as a more likely author.
Phaenomena, a treatise on spherical-astronomy, survives in Greek; it is quite similar to On the Moving

Sphere by Autolycus of Pitane, who flourished around 310 BC. 19th-century statue of Euclid by Joseph
Durham in the Oxford University Museum of Natural History.
Optics is the earliest surviving Greek treatise on perspective. In its definitions Euclid follows the Platonic
tradition that vision is caused by eye. One important definition is the fourth: "Things seen under a
greater angle appear greater, and those under a lesser angle less, while those under equal angles
appear equal" In the 36 propositions that follow, Euclid relates the apparent size of an object to its
distance from the eye and investigates the apparent shapes of cylinders and cones when viewed from
different angles. Proposition 45 is interesting, proving that for any two unequal magnitudes' there is a
point from which the two appear equal. Pappus believed these results to be important in astronomy and
included Euclid's Optics, along with his Phaenomena, in the Little Astronomy, a compendium of smaller
works to be studied before the Syntaxis (Almagest) of Claudius Ptolemy.


Instructions: Answer each item by encircling the letter of the correct answer.
1. Which of these can be called rectangles?
a. Q only
b. Q and R only
c. P and Q only
d. P, Q and R P Q R
2. Given the following properties of a figure.

Property D: It has diagonals of equal length.
Property S: It is a square.
Property R: It is a rectangle.
Which is true?
a. D implies S which implies R c. S implies R which implies D
b. D implies R which implies S d. R implies D which implies S
3. Given the two statements:

Statement 1: Figure F is a rectangle.
Statement 2: Figure F is a triangle.
Which is correct?
a. If 1 is true, then 2 is true. c. 1 and 2 cannot both be true.
b. If 1 is false, then 2 is true. d. 1 and 2 cannot both be false.
4. Given a right triangle ABC. Equilateral triangles ACE, ABF and

BCD have been constructed on the sides of ABC. From the figure,
one can prove that line segment AD, BE and CF have a point in
common, what would this proof tell you?
a. Only in this triangle drawn can we be sure that AD, BE and CF
have a point in common.
b. In some but not all right triangles, AD, BE, and "CF have a point
in common.
c. In any right triangle, AD, BE, and CF have a point in common.
d. D. In any triangle, AD, BE, and CF have a point in common
References:
Manlulu, E.A. and Hipolito, L.M.M. (2019) A Course Module for Mathematics in the Modern World.
Bluman, Allan, Elem. Statistics 7th edition
Barbara, Illowsky, et al, Introductory Statistics, OpenStax Rice University, c. 2018
Dr. Patricia B. Licuanan, TEACHING GUIDE FOR SENIOR HIGH SCHOOL Statistics and Probability, c. 2016
Dr. Kathy Chu, et al., Elementary Statistics, c. 2013
Daligdig, Romeo M., Mathematics in the Modern World, Lorimar Publishing Inc., c. 2019
Gabuyo, Yonardo A., Assessment of Learning 1, Rex Book Store, c. 2012
www.mathsisfun.com/definitions/pie-chart-pie-graph.html



Contact Details

B. Mathematics as a Tool Week 7 to Week 12 [Midterm]
B.1 Data Management
-Data: Gathering and Organizing Data; Representing using Graphs and Charts;
Interpreting Organized Data
-Measures of Central Tendency: Mean, Median, Mode, AWM
-Measures of Dispersion: Range, Standard Deviation and Variance
-Measures of Relative Position: z-scores, Percentiles, Quartiles
-Basic/Elementary Probability
-Inferential Statistics: t-test, ANOVA & Pearson r Coefficient

 Use a variety of statistical tools to process and manage numerical data.
 Use the methods of linear regression and correlations to predict the value of a variable given certain
conditions
 Advocate the use of statistical data in making important decisions


B. Mathematics as a Tool
Introduction
B.1 Data Management

B.1.6. Inferential Statistics: t-test, ANOVA and Pearson r Coefficient
Inferential statistics deals with the analysis and interpretation of data. This statistics consists of
different statistical tools/test used in the analysis of interval, ratio, nominal and ordinal data. These test
are used in making inferences from conclusion on larger group, populations, or generalizations about
them on the basis of information obtained by the study of one or more samples. (Broto, Antonio S.
Statistics Made Simple)
t-test
A t-test is a statistical test that is used to compare the means of two groups. It is often used in
hypothesis testing to determine whether a process or treatment actually has an effect on the
population of interest, or whether two groups are different from one another. Also, t-test uses means
and standard deviations of two samples to make a comparison and expressed by the formula:
𝑥1 − 𝑥
̅̅̅ ̅̅̅2
𝑡=
𝑆12 𝑆2
√( ) + ( 2)
𝑛1 𝑛1
Where:
̅̅̅1 =
𝑥 Mean of first set of values
𝑥2 =
̅̅̅ Mean of second set of values
𝑆1 = Standard deviaton of first set of values
𝑆2 = Standard deviation of second set of values
𝑛1 = Total number of values in the first set.
𝑛2 = Total number of values in second set.
The formula for standard deviation is given by:

∑(𝑥 − 𝑥̅ )2
𝑆=√
𝑛−1
Where:
𝑥 = values given
𝑥̅ = mean
𝑛 = Total number of values


Example
The following are the scores of 4 male and 4 female in spelling. Male: 7, 2, 9, 8 and Female:
1, 2, 3, 4 and test the null hypothesis that there is no significant difference between the
performance of male and female students in the said test. Use the t-Test at 0.05 level of
significance.
Solution:
Step 1: Set up the hypothesis.
H0: There is no significant difference between the performance of male and
female students in spelling.
H1: There is a significant difference between the performance of the male and
female students in spelling.
Step 2: Set the level of Significance.
𝑎 = 0.05
𝑑𝑓 = 𝑛1 + 𝑛2 − 2
𝑑𝑓 = 4 + 4 − 2 = 6
𝑡. 05 = 2.4469 𝑡 − 𝑡𝑎𝑏𝑢𝑙𝑎𝑟 𝑣𝑎𝑙𝑢𝑒 𝑎𝑡 0.025 (Refer to the table below on page 10)
Step 3: Construct the following table for standard deviation and calculate the t-Test value.
𝑥 𝑥 − 𝑥̅ (𝑥 − 𝑥̅ )2 𝑥 𝑥 − 𝑥̅ (𝑥 − 𝑥̅ )2
7 0.5 0.25 1 1.5 2.25
2 -4.5 20.25 2 0.5 0.25
9 2.5 6.25 3 -0.5 0.25
8 1.5 2.25 4 1.5 2.25
𝑥̅1 = 6.5 ∑(𝑥 − 𝑥̅ )2 = 29 𝑥̅2 = 2.5 ∑(𝑥 − 𝑥̅ )2 = 5
𝑛1 = 4 𝑆1 = 3.11 𝑛2 = 4 𝑆2 = 1.29
𝑆12 = 9.67 𝑆22 = 1.67
Solving for t-test value, we have:

𝑥1 − ̅̅̅
̅̅̅ 𝑥2 6.5 − 2.5
𝑡= =
𝑆2 𝑆2 √(9.67) + (1.67 )
√( 1 ) + ( 2 ) 4 4
𝑛1 𝑛1
𝒕 = 𝟐. 𝟑𝟕𝟓𝟕 𝒐𝒓 𝟐. 𝟑𝟖
Step 4: Use the following basis for arriving at the decision:
If the t-computed value is greater than or beyond the t-tabular/critical value, reject Ho. Since
the t-computed value (2.3757) is smaller than the t-tabular value (2.4469), accept Ho.
Step 5: State the conclusion

Therefore, there is no significant difference between the performance of male and
female in spelling.

Analysis of Variance (ANOVA)

ANOVA or analysis of variance is used to compare two or more populations of interval ratio
data. This technique determines whether the differences exist between two or more population
means. It is used to compare the means of more than two samples. The test statistics for ANOVA is
F-ratio. It compares the variances from the two sources:
𝑏𝑒𝑡𝑤𝑒𝑒𝑛 − 𝑔𝑟𝑜𝑢𝑝 𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒 𝑀𝑒𝑎𝑛 𝑆𝑞𝑢𝑎𝑟𝑒 𝐵𝑒𝑡𝑤𝑒𝑒𝑛 𝐺𝑟𝑜𝑢𝑝𝑠 (𝑀𝑆𝐵) 𝑀𝑆𝐵
𝐹= = =
𝑤𝑖𝑡ℎ𝑖𝑛 − 𝑔𝑟𝑜𝑢𝑝 𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒 𝑀𝑒𝑎𝑛 𝑆𝑞𝑢𝑎𝑟𝑒 𝑊𝑖𝑡ℎ𝑖𝑛 𝐺𝑟𝑜𝑢𝑝𝑠 (𝑀𝑆𝑊) 𝑀𝑆𝑊
Where:
𝑆𝑢𝑚 𝑜𝑓 𝑆𝑞𝑢𝑎𝑟𝑒𝑠 𝐵𝑒𝑡𝑤𝑒𝑒𝑛 𝐺𝑟𝑜𝑢𝑝𝑠 𝑆𝑆𝑏
𝑀𝑆𝐵 = =
𝐷𝑒𝑔𝑟𝑒𝑒𝑠 𝑜𝑓 𝐹𝑟𝑒𝑒𝑑𝑜𝑚 𝐵𝑒𝑡𝑤𝑒𝑒𝑛 𝐺𝑟𝑜𝑢𝑝𝑠 𝑑𝑓𝑏
𝑆𝑢𝑚 𝑜𝑓 𝑆𝑞𝑢𝑎𝑟𝑒𝑠 𝑊𝑖𝑡ℎ𝑖𝑛 𝐺𝑟𝑜𝑢𝑝𝑠 𝑆𝑆𝑤
𝑀𝑆𝑤 = =
𝐷𝑒𝑔𝑟𝑒𝑒𝑠 𝑜𝑓 𝐹𝑟𝑒𝑒𝑑𝑜𝑚 𝑊𝑖𝑡ℎ𝑖𝑛 𝐺𝑟𝑜𝑢𝑝𝑠 𝐷𝑓𝑏
𝑆𝑆𝑏 = 𝑘 − 1
Degree of freedom (df):
𝑆𝑆𝑤 = 𝑘(𝑛 − 1)
Where:
k = number of group samples
n = number of items per column (size of each sample)
To find SSb and SSw:

∑(∑ 𝑋𝑐)2 (∑ 𝑥)2 (∑ 𝑥)2
𝑆𝑆𝑏 = 𝑛
− 𝑁
𝑆𝑆𝑤 = 𝑆𝑆𝑡 − 𝑆𝑆𝑏 𝑆𝑆𝑡 = ∑ 𝑥 2 − 𝑁
Where:
SSt = total number of squares SSb = sum of the squares between
X = item value per column ∑ 𝑋𝑐 = sum of the values per column
N = total sample size SSw = sum of squares within
n = sample size

Example
A researcher wants to determine whether there is a significant difference in the weight loss
of women following three different weight loss diet program. Women were randomly assigned to
the three groups and placed on the diet program for three months. Can the researcher conclude
that there is a significant difference in the weight loss diet program based on the weight loss of
the women gathered as shown below? Let a = .05.
Diet 1 Diet 2 Diet 3
3 10 9
5 11 8
6 12 5
7 14 13
4 17 6
5 15 9
4 12 8

Solution:
H0: There is no significant difference in the weights of the women as a result of
the weight loss diet program.
H1: There is a significant difference in the weights of the women as a result of the
weight loss diet program.
𝑎 = 0.05
𝑑𝑓𝑏 = 𝑘 − 1 = 3 − 1 = 2
𝑑𝑓𝑤 = 𝑘(𝑛 − 1) = 3(7 − 1) = 18
critical value at 2 & 18 from the F-table at 0.05 = 3.55 (Refer to the table on page 11)
Step 3: Solve for the F-ratio
Diet 1 (X1) (X1)2 Diet 2 (X2) (X2)2 Diet 3 (X3) (X3)2

3 9 10 100 9 81
5 25 11 121 8 64
6 36 12 144 5 25
7 49 14 196 13 169
4 16 17 289 6 36
5 25 15 225 9 81
4 16 12 144 8 64
∑ 𝑥1 = 34 ∑ 𝑥12 = 176 ∑ 𝑥2 = 91 ∑ 𝑥22 = 1,219 ∑ 𝑥3 = 58 ∑ 𝑥32 = 520
𝑛=7 𝑛=7 𝑛=7
∑ 𝑥 = 183 ∑ 𝑥 2 = 1,915
Solving for the different sum of squares:

(∑ 𝑥)2 ∑(∑ 𝑋𝑐)2(∑ 𝑥)2
𝑆𝑆𝑡 = ∑ 𝑥 2 − 𝑆𝑆𝑏 = −
𝑁 𝑛 𝑁
(183)2 342 + 912 + 582 (183)2
𝑆𝑆𝑡 = 1915 − 𝑆𝑆𝑏 = −
21 7 21
𝑺𝑺𝒕 = 𝟑𝟐𝟎. 𝟐𝟗 𝑺𝑺𝒃 = 𝟐𝟑𝟒
𝑆𝑆𝑤 = 𝑆𝑆𝑡 − 𝑆𝑆𝑏
𝑆𝑆𝑤 = 320.29 − 234 = 86.29
𝑆𝑆𝑏 234 𝑆𝑆𝑤 86.29

𝑴𝑺𝒃 = = = 𝟏𝟏𝟕 𝑴𝑺𝒘 = = = 𝟒. 𝟕𝟗
𝑑𝑓𝑏 2 𝑑𝑓𝑤 18
𝑀𝑆𝑏 117
𝑭= = = 24.43
𝑀𝑆𝑤 4.79

If F computed value < the critical value, accept H0
If F computed value ≥ the critical value, reject H 0

Therefore, there is a significant difference in the weight loss diet program based on
the weight loss of women since, the F computed value is 31.79 which is > the critical
value 3.5.
Pearson r Coefficient
Statisticians devised quantitative ways to measure the association between two variables. The
strength of correlation is indicated by one coefficient of correlation. There are several coefficients of
correlation. One that is most commonly used is Pearson Product-Moment coefficients of correlation,
symbolized by r, named in honor of the statistician who did a lot of research on this area, Karl
Pearson (Belecina, Rene R. Et.al Statistics and Probability 2019).
 If an r-value of exactly +1indicates a perfect positive correlation. Positive values indicate
a relationship between x and y variables such that as values for one variable increase,
values of the other variable also increase.
 If an r-value of exactly -1 indicates a perfect negative relationship between two variables.
Negative values indicate a relationship between two variables such that as values of x
increases, values for y decreases.
 If there is no correlation or a weak correlation, r is close to 0. A value near zero means
that there is a random, nonlinear relationship between two variables.
The following summarizes the correlation coefficient and the strength of relationships:
0.0 no correlation, no relationship
±0.01 𝑡𝑜 ± 0.20 Very low correlation, almost negligible relationship
±0.21 𝑡𝑜 ± 0.40 Slight correlation, definite but small relationship
±0.41 𝑡𝑜 ± 0.70 Moderate correlation, substantial relationship
±0.71 𝑡𝑜 ± 0.90 High correlation, marked relationship
±0.91 𝑡𝑜 ± 0.99 Very high correlation, very dependable relationship
±1.00 Perfect correlation, perfect relationship
The formula for the Pearson Product Moment Coefficient of Correlation r is:
𝑛 ∑ 𝑥𝑦 − ∑ 𝑥 ∑ 𝑦
𝑟=
√[𝑛 ∑ 𝑥2 − (∑ 𝑥)2 ][𝑛 ∑ 𝑦2 − (∑ 𝑦)2 ]
Where,
r = the Pearson Product Moment Coefficient of Correlation
n = sample size
∑xy = the sum of product of x and y
∑x∑y = the product of the sum of ∑x and the sum of ∑y
∑x2 = sum of squares of x
∑y2 = sum of the squares of y


Example
Below are the midterm (x) and final (y) grades. Interpret the given data. Use a = 0.05
x 75 70 65 90 85 85 80 70 65 90
y 80 75 65 95 90 85 90 75 70 90
Solution:
H0: There is no significant relationship between the midterm grades and the final
grades of 10 students in Mathematics
H1: There is a significant relationship between the midterm grades and the final
grades of 10 students in Mathematics.
𝑎 = 0.05
𝑑𝑓 = 𝑛 − 2 = 10 − 2 = 8
𝑟. 05 = 0.632 (Refer to the table on page 12)
Step 3: Solve for the value of r.
x y x2 y2 xy
75 80 5,625 6,400 6,000
70 75 4,900 5,625 5,250
65 65 4,225 4,225 4,225
90 95 8,100 9,025 8,550
85 90 7,225 8,100 7,650
85 85 7,225 7,225 7,225
80 90 6,400 8,100 7,200
70 75 4,900 5,625 5,250
65 70 4,225 4,900 4,550
90 90 8,100 8,100 8,100
∑x=775 ∑y=815 ∑x2= 60,925 ∑y2= 67,325 ∑xy= 64,000
𝑥̅ = 77.5 𝑦̅ = 81.5
𝑛 ∑ 𝑥𝑦 − ∑ 𝑥 ∑ 𝑦
𝑟=
√[𝑛 ∑ 𝑥2 − (∑ 𝑥)2 ][𝑛 ∑ 𝑦 2 − (∑ 𝑦)2 ]
10(64,000) − (775)(815)
𝑟=
√[10(60,925) − (775)2 ][10(67,325) − (815)2 ]
8,375
𝑟=
√(8,625)(9,025)
8,375
𝑟=
8,822.73
𝒓 = 𝟎. 𝟗𝟒𝟗 (very high correlation, very dependable relationship)
If the computed r value is greater than r tabular value, reject H 0


Therefore, there is a significant relationship between the midterm grades and the final
grades of 10 students in Mathematics. It implies that the higher the midterm grades
the higher also are the final grades because the value of r is positive. Likewise the
lower the midterm grade the lower the final grades.
Learning Activity – Application (Critical Thinking)

Instructions: Follow what each item requires with the given set of data.
1. An experimental study was conducted on the effect of programmed materials in Math on the
performance of 20 selected students. The following are the scores of 10 male and 10 female in
the administered quiz. Test the null hypothesis that there is no difference between the
performance of the male and female students in the said test. Use the t-test at 0.05 level of
significance.
x 14 18 17 16 4 14 12 10 9 17
y 12 9 11 5 10 3 7 2 6 13
2. A coffee shop serves different brands of coffee based on customers request. They would like to
determine the best coffee based on the number of orders. A sample of 8 days were taken and
here is the result:
Brand A Brand B Brand C
23 18 12
24 15 8
18 17 7
25 15 5
33 20 12
45 13 10
33 14 14
23 15 12
Is there a significant difference in the number of orders of the different brands of coffee at 0.05
level of significance?
3. A teacher would like to know if there is a linear correlation between a student’s classroom
performance and achievement in the national achievement test (NAT). At the end of academic
year, she gathers the data and came up with the following table. If the set level of significance a
= 0.05, is there a significant relationship between classroom performance and achievement in
the national achievement test (NAT)?
Achievement 98 96 94 88 91 77 86 71 59 63 84 79 75 72 86 85 71 93 90 62
GPA 3.6 2.7 3.1 4.0 3.2 3.0 3.8 2.6 3.0 2.2 1.7 3.1 2.6 2.9 2.4 3.4 2.8 3.7 3.2 1.6
References:
Baltazar, Ethel Cecille, et. al, Mathematics in the Modern World. C and E Publishing, Inc. 2018
Tolentino, Aurora Roslie P. et. al., Mathematics in the Modern World. Mutya Publishing House. 2018
Ariola, Marion Faye Q. et. al., Deal with the World of Today through Mathematics. Mutya Publishing House. 2018
Matira, Myrna D. (2016) Data Handling Essentials of Statistics and Probability for the 21st Century Learners
Belcina, R.R, Baccay, E.S, and Mateo, E.B (2019) Statistics and Probability
Broto, Antonio S. Statistics Made Simple (second edition)

Annex A – t-Table

Annex B – F-Table

Annex C – Table for Pearson r Coefficient



Contact Details

B.1 Data Management

conditions


Introduction
B.1 Data Management

B.1.3. Measures of Dispersion: Range, Standard Deviation and Variance
An important characteristic of any set of data is the variation in the data. If one wants to know the
index of how the scores are scattered around the center of the distribution, measures of variability
(spread, width, or dispersion) must be considered. Three measures shall be discussed in this learning
material: range, variance and standard deviation.
Range
The Range is the difference between the highest and the lowest values in a data set. It is
expressed as:
Range = Highest Score – Lowest Score

Example 1
Two experimental brands of paint are tested to see how long each will last before fading. Six
cans of each brand constitute a small population. The results (in months) are shown in the table.
Find the mean and range of each group.
Brand A Brand B
10 35
60 45
50 30
30 35
40 40
20 25

Solution:
 X
X 210 210
  35    35
Brand A: N 6 Brand B: N 6
R  60  10  50 R  45  25  20
The average for both brands is the same, but the range for Brand A is much greater than the
range for Brand B. Which brand would you buy?
The range is the simplest and the easiest of the measures of dispersion. It simply measures the
distance given by the highest score and the lowest score. It is considered as the least
satisfactory measure of dispersion because it does not tell anything about the score between
these two extremes.
Example 2
Consider the following test scores of the two girls. Compute the range & interpret the result.
Andrea 17 18 7 15 14 13
Camille 18 10 17 11 18 10
Solution:
Andrea: HS = 18 Camille: HS = 18
LS = 7 LS = 10
R = 11 R=8
Andrea’s score has higher range than that of Camille’s test scores. This tells us that Andrea’s
score is apparently more scattered than Camille.
Variance and Standard Deviation

The Variance is the average of the squares of the distance each value is from the mean. It is
expressed as:
 X  X 
2
s2 
n 1
The Standard Deviation is the square root of the variance. The standard deviation is a
measure of how spread out your data are.
 X 
2
X
s
n 1

Example
Calculate the sample variance and standard deviation of the following data:
8, 9, 10, 12, 17, 18, 18, 19, 20, 21

Solution:
x ̅
𝒙 x-𝒙̅ ̅) 𝟐
(𝐱 − 𝒙
8 15.2 -7.2 51.84
9 15.2 -6.2 38.44
10 15.2 -5.2 27.04
12 15.2 -3.2 10.24
17 15.2 1.8 3.24
18 15.2 2.8 7.84
18 15.2 2.8 7.84
19 15.2 3.8 14.44
20 15.2 4.8 23.04
21 15.2 5.8 33.64
∑ 𝒙= 152 ̅)𝟐 = 217.6
(𝐱 − 𝒙
Solving for the mean, we get 152 / 10 = 15.2
 X  X 
2
s 2

n 1 s = √24.18
217.6
= s = 4.92
10−1
2
S = 24.18
A short cut process in computing for the variance and standard deviation is known as Raw Score
Formula is mathematically equivalent to the theoretical formula. It saves time when calculating by
hand, does not use the mean, and it is more accurate when the mean has been rounded.
n X 2    X 
2
s2 
n  n  1 s  s2
;
Let us refer to the following set of example
Example
Find the variance and standard deviation for the amount of European auto sales for a
sample of 6 years. The data are in millions of dollars.
11.2, 11.9, 12.0, 12.8, 13.4, 14.3
Solution:
n X 2    X 
X X2 2
s 2 = 1.28
11.2 125.44
s 
2
11.9 141.61 n  n  1 s = 1.13
12.0 144.00
( ) ( )
2
12.8 163.84 6 958.94 - 75.6
13.4 179.56 s =
2
14.3 204.49 6 (5)

s 2  6  958.94  75.62 /  6  5 
75.6 958.94

The standard deviation provides a numerical measure of the overall amount of variation in a data
set, and can be used to determine whether a particular data value is close to or far from the mean .
The standard deviation is always positive or zero. The standard deviation is small when the data are
all concentrated close to the mean, exhibiting little variation or spread. The standard deviation is
larger when the data values are more spread out from the mean, exhibiting more variation.

1. Find the range of the two groups of score distribution. Interpret.
Group A 10 12 15 17 25 26 28 30 35
Group B 15 16 16 17 17 23 25 26 30
2. On a scale designated to measure altitude toward racial segregation, two college classes scored as
follows:
Class A 4 6 2 1 1 1
Class B 4 3 2 1 4 2
Compare the variability of attitudes toward racial segregation among the members of the two
classes by calculating for each class the (a) Range and (b) standard deviation. Which class has
greater variability of attitude scores?
B.1.4. Measures of Relative Position: z-scores, Percentiles, Quartiles

As median divides the set of scores into two equal parts, there are other measures that divide the
distribution into one hundred, four or ten equal parts. These are the other measures of position: the
percentiles, the quartiles and the deciles.
Z-scores
The Z-score (also known as standard score) measures how many standard deviations an
observation is above or below the mean. A positive z-score measures the number of standard
deviations a score is above the mean, and a negative z-score means that number of standard
deviations a score is below the mean. Z-score can be computed using the formula:
𝑥−𝜇 where x = the value of observation
𝑧=
𝜎 𝜇 = the mean of the distribution
𝜎 = the standard deviation of the distribution
Let us refer to the following set of example:
Example
The result of an examination in Physics given to 100 students was known to be
approximated normally distributed with a mean of 54 and a standard deviation of 12. Find the
following: a) standard score of Jedidiah if she got a score of 86, b) actual score of Vanessa if her
standard score is -1.25.
Solution:
a) For standard score of Jedidiah
𝑥−𝜇 86−54
𝑧= = = 2.67
𝜎 12
b) For actual score of Vanessa

𝑥 = 𝑧𝜎 + 𝜇 = (−1.25)(12) + 54 = 39
Quartiles (Qk)
Quartiles are values that divide that distribution into four equal parts. It is expressed as:
𝑖(𝑛+1) 𝑡ℎ
𝑄𝑘 = [ ]
4
where: 𝑖 is term of interest (𝑘 = 1, 2 𝑎𝑛𝑑 3)

𝑛 is the number of observed values
Example
Suppose a 20-item quiz was administered to 12 students. The scores of the students are
tabulated below. Find the 1st Quartile (Q1).
Student Score Student Score
1 4 7 17
2 5 8 13
3 5 9 19
4 2 10 3
5 12 11 5
6 11 12 5
Solution:
Step 1: Arrange the data from lowest to highest.
2, 3, 4, 5, 5, 5, 5, 11, 12, 13, 17, 19
Step 2: identify the values on the formula: i = 1 and n = 12
𝑡ℎ 𝑡ℎ
𝑖(𝑛 + 1) 1(12 + 1) 13 𝑡ℎ
𝑄𝑘 = [ ] =[ ] = [ ] = 3.25𝑡ℎ or 4𝑡ℎ 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛
4 4 4
∴The 1st Quartile (Q1) is 5, which means that 25% of the scores are below 5.
Deciles (Dk)
Deciles are values that divide that distribution into ten equal parts. It is expressed as:
𝐷𝑘 = [ ]
10
where: 𝑖 is term of interest (𝑘 = 1, 2, … ,9)



Example
Using the same given on the previous example, find the 2 nd Decile (D2).
Solution:
2, 3, 4, 5, 5, 5, 5, 11, 12, 13, 17, 19
Step 2: Identify the values on the formula: 𝑖 = 2 and 𝑛 = 12

𝑡ℎ 𝑡ℎ
𝑖 (𝑛 + 1) 2(12 + 1) 26 𝑡ℎ
𝐷𝑘 = [ ] =[ ] = [ ] = 2.6𝑡ℎ or 3𝑟𝑑 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛
10 10 10
∴The 2nd Decile (D2) is 4, which means that 20% of the scores are below 4.
Percentiles (Pk)
Percentiles are values that divide that distribution into one hundred equal parts. It is expressed
as:
𝑃𝑘 = [ ]
100
where: 𝑖 is term of interest (𝑘 = 1, 2, … ,99)


Example
Using the same given on the previous example, find the 75th Percentile (P70).
Solution:
2, 3, 4, 5, 5, 5, 5, 11, 12, 13, 17, 19
Step 2: Identify the values on the formula: 𝑖 = 75 and 𝑛 = 12

𝑡ℎ 𝑡ℎ
𝑖(𝑛 + 1) 75(12 + 1) 975 𝑡ℎ
𝑃𝑘 = [ ] =[ ] =[ ] = 9.75𝑡ℎ or 10𝑡ℎ 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛
100 100 100
∴The 75th Percentile (P75) is 13, which means that 75% of the scores are below 13.

1. A particular examination in biology with 200 students was known to be approximately normally
distributed with a mean of 36 and a standard deviation of 5. Find the standard score of a student
whose score is 40.
2. Compute for the standard score of 31 if the mean is 25 and the standard deviation is 2.
3. Here are the wages of some laborers per hour: Php 82.00, Php 56.00, Php 120.00, Php 75.00, Php
80.00, Php 75.00, Php 90.00, Php 50.00, Php 130.00 and Php 65.00. Find the values of a) 2nd
Decile (Q2), b) 6th Decile (D6) and 82nd Percentile (P82).

B.1.5. Basic/Elementary Probability

Probability is simply how likely something is to happen. Whenever we’re unsure about the outcome
of an event, we can talk about the probabilities of certain outcomes—how likely they are. The analysis
of events governed by probability is called statistics.
An experiment such as spinning a spinner or tossing a coin, Experiment is an activity that is under
consideration and which can be done repeatedly, in which the result is purely a matter or chance, is
said to be random. You do not know what the result or outcome of the experiment will be. For
example, you do not know that a spinner is equally likely to stop on any one of the 3 possible outcomes:
1 1
red, green, or blue (r,g,b). The probability of stopping on red is 1 out of 3 or 3 and you write 𝑃 (𝑟) = 3 ,
1 1
Likewise 𝑃(𝑏) = 3 and 𝑃(𝑏) = 3. When the outcomes are equally likely to happen, the probability of any
one outcome is the ratio below:
1
𝑃 (𝑜𝑢𝑡𝑐𝑜𝑚𝑒 ) =
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑜𝑢𝑡𝑐𝑜𝑚𝑒𝑠
The set of all possible outcome of an experiment is called Sample Space and the subset of the
sample space is called an event, a set of one or more outcomes. The probability of an outcome ranges
from 0 (when it is certain not to happen) to 1 (when it is certain to happen).
You can show all the possible outcomes by listing and/or tree diagram. For example, you tossed a
coin twice; Head, or Tai (H, T). Find all the possible outcomes.
Outcomes for 2 tossed (listing)

HH TH
HT TT
Tree
Diagram
Sometimes it is not practical to find the number of outcomes of a probability activity by listing or
drawing a tree diagram. For example, in how many ways can four tossed coins fall?
There are 2 possibilities for the first tossed coin, 2 possibilities for the second coin, 2 possibilities for the
third coin, 2 possibilities for the fourth coin. By the fundamental principle of counting (FPC), the 4
coins may fall in 2𝑥2𝑥2𝑥2 𝑜𝑟 16 𝑤𝑎𝑦𝑠.
Mutually and Non-mutually Exclusive Events (Additive Rule)

Mutually exclusive of they cannot happen at the same time. Otherwise they are said to be non-
mutually exclusive.
If A and B are any two events, then the probability that A or B will happen is given by:
𝑃 (𝐴 𝑜𝑟 𝐵) = 𝑃(𝐴 ∪ 𝐵) = 𝑃(𝐴) + 𝑃 (𝐵) − 𝑃(𝐴 ∩ 𝐵)
where P(A∩B) is the probability that both A and B will happen.
If A and B are mutually exclusive, then

P(A∩B) = P(A) + P(B)


Example
A card is drawn from a standard deck of 52 cards. What is the probability of getting a) an
ace or king, and b) a red or a face card?
Solution:
a) For getting an ace or king
Let P(A) for probability of getting an ace and P(K) for king is drawn. Since events A and K
are mutually exclusive, then
4 4 8 𝟐
P(A∩K) = P(K) + P(K) = + 52 = 52 𝑜𝑟 𝟏𝟑
52
Represents the 4 Aces out of 52 cards Represents the 4 Kings out of 52 cards
Therefore, the probability of getting an ace or king is 2/13.
b) For getting a red or a face card

Let P(R) be the probability that a red card is drawn and P(F) for face card. Since events A
and K are non-mutually exclusive, then
26 12 6 32 𝟖
𝑃 (𝑅 ∪ 𝐹 ) = 𝑃 (𝑅) + 𝑃 (𝐹 ) − 𝑃(𝑅 ∩ 𝐹 ) = 52 + 52 − 52 = 52 = 𝟏𝟑
Represents the 26 red cards out of 52 cards

Represents the common since 6 Face cards
Represents the 12 Face cards out of 52 cards are also red cards out of 52 cards
Therefore, the probability of getting a red or a face card is 8/13.
Dependent and Independent Events (Multiplication Rule)

Two events are independent if the occurrence of one does not affect the occurrence of the
other. Otherwise they said to be independent.
If A and B are any two events, then the probability that A and B will happen is given by the
formula:
𝑃(𝐴 𝑎𝑛𝑑 𝐵) = 𝑃 (𝐴 ∩ 𝐵) = 𝑃(𝐴) ∙ 𝑃 (𝐵|𝐴)
where 𝑃(𝐵|𝐴) is the probability that B will happen given that A happen already.
However, if A and B are independent events then:

𝑃(𝐴 ∩ 𝐵) = 𝑃 (𝐴) ∙ 𝑃 (𝐵) 𝑠𝑖𝑛𝑐𝑒 𝑃 (𝐵|𝐴) = 𝑃(𝐵)

Example
Two cards are drawn one at a time from a well-shuffled deck of cards. Find the probability
that they are both kings if the first card is a) replaced and b) not replaced.
Solution:
a) For getting both kings if the first card is replaced.
Let P(K1) be the probability that a king is chosen on the first draw
P(K2) be the probability that a king is chosen on the second draw
Since the second event is independent of the first, then

4 4 1
𝑃 (𝐾1 ∩ 𝐾2 ) = 𝑃(𝐾1 ) ∙ 𝑃(𝐾2 ) = ∙ =
52 52 169
In the 1st draw, there are 4 Kings out of 52 cards. In the 2nd draw, there are still 4 Kings out of 52 cards since the
first card being drawn was replaced with the same card.
Therefore, the probability of getting both kings if the first card was replaced is 1/169.
b) For getting both kings if the first card is not replaced.

Let P(K1) be the probability that a king is chosen on the first draw
P(K2) be the probability that a king is chosen on the second draw
Since the second event is dependent of the first, then
4 3 1
𝑃 (𝐾1 𝑎𝑛𝑑 𝐾2 ) = 𝑃 (𝐾1 ) ∙ 𝑃 (𝐾1 |𝐾2 ) = ∙ =
52 51 221
In the 1st draw, there are 4 Kings out of 52 cards. In the 2nd draw, there are now 3 Kings remaining out of 51 cards
since the first drawn card was not replaced.
Therefore, the probability of getting both kings if the first card was replaced is 1/221.
Learning Activity No. 3 – Application (Critical Thinking)

Multiple Choice. Choose the best answer. Indicate your solution on did you arrive on your answer.
4. What is the probability of getting a black diamond in a single draw of a card from an ordinary
deck of playing cards?
1 1
a. 4 b. 0 c. 52 d. 1
5. Two digits are selected at random from the digits 1 through 9. If the sum is even, what is the
probability that both numbers are odd?
3 5 3 8
a. 8 b. 8 c. 10 d.9
6. A pair of fair dice is thrown. What is the probability that the sum is 10 or greater if 5 appears on
the first die?
7 3 1 3
a. 24 b. 8 c. 3 d.7
7. In a group of 60 children, 28 are enrolled in a summer swimming program, 20 signed up for
soccer and 6 are in both. If a child is selected from those enrolled in swimming, what is the
probability that the child is signed up for soccer?
3 3 1 5
a. 10 b. 14 c. 10 d.7
References:
Reyes A.S. (2013) A Reviewer for the LET Mathematics (Probability)
Tolentino, Aurora Roslie P. et. al., Mathematics in the Modern World. Mutya Publishing House. 2018
https://www.statisticshowto.com/probability-and-statistics



Contact Details

B.1 Data Management

conditions


Introduction
B.1 Data Management

B.1.1. Data
Data is everywhere. It is observable or measurable. With the advancement of technology every day,
data can be accessed anywhere and by anyone. When data is correct, valid analysis and interpretation
can be generated to produce valuable information.
Gathering and Organizing Data

Data are the quantities Data are the quantities (numbers) or qualities (attributes) measured or
observed that are to be collected and analyzed (Asaad, 2004). There are two types of data: the
qualitative and quantitative data. Qualitative data deals with categories or attributes. Examples are
color of eyes, ethnicity and brand of ice cream. Quantitative data are numerical data. Quantitative
data can be discrete or continuous. Discrete data is obtained through counting. Continuous data
is obtained by measuring. The number of households in a particular community is an example of
discrete data while family income and weight of an individual are some of the examples of
continuous data.
Another way is to classify data into four levels of measurement such as nominal, ordinal,
interval and ratio. The nominal level of measurement is the lowest of the four ways to
characterize data. Nominal data deals with names, categories, or labels. Data at the nominal level is
qualitative. Colors of eyes, yes or no responses to a survey, and favorite breakfast cereal all deal
with the nominal level of measurement.
Ordinal level of measurement ranks qualitative data. Winners in a pageant and the academic
rank of teachers are examples of ordinal data. Interval level of measurement deals with data that
can be ordered, and in which differences between the data does make sense. Data at this level
does not have a starting point. The Fahrenheit and Celsius scales of temperatures are both
examples of data at the interval level of measurement. The fourth and highest level of
measurement is the ratio level. Data at the ratio level possess all of the features of the interval
level, in addition to a zero value. Examples are weight, the time to answer a quiz and the number of
absences of students in a class.

Learning Activity No. 1

Part 1. Abstraction (Classification)
Instructions: For each of these variables, identify whether the variable is qualitative or quantitative, and
if quantitative, state whether it is discrete or continuous.
1) Number of family members in a particular household Answer: _________________________
2) Ownership of a cell phone among family members Answer: _________________________
3) Length (in minutes) of a longest call made per month Answer: _________________________
4) Amount spent on food in a day Answer: _________________________
5) Occupation of household head Answer: _________________________
Part 2. Abstraction (Classification)

Instructions: Identify the level of measurement for each of the following variable
1) Highest education attainment Answer: _________________________
2) Hair color Answer: _________________________
3) Body Temperature Answer: _________________________
4) Civil Status Answer: _________________________
5) Total household expenditures in Pesos Answer: _________________________
Representing using Graphs and Charts; and Interpreting Organized Data

After the data have been collected and processed, data need to be organized to produce
meaningful information. There are three methods in presenting information from the data set.
 Textual or paragraph or narrative form

This describes the data by enumerating some of the important feature of the data set like giving the
highest, lowest or the average values. In case there are only few observations, say less than ten
observations, the values could be enumerated if there is a need to do so. Data could also be
presented using tables.
 The tabular method of presentation

This is applicable for large data sets. A frequency is the number of times a value of the data
occurs. A frequency distribution is the organization of raw data in table form, using classes and
frequencies.
A relative frequency is the ratio (fraction or proportion) of the number of times a value of the data
occurs in the set of all outcomes to the total number of outcomes. To find the relative frequencies,
divide each frequency by the total number of students in the sample. Relative frequencies can be
written as fractions, percent, or decimals.
Cumulative relative frequency is the accumulation of the previous relative frequencies. To find the
cumulative relative frequencies, add all the previous relative frequencies to the relative frequency
for the current row.

Let us refer to the following set of examples

Example 1
Twenty-five employees were given a blood test to determine their blood type. Construct a
frequency distribution for the data.
Raw Data: A, B, B, AB, O O, O, B, AB, B B, B, O, A, O A, O, O, O, AB AB, A, O, B, A
Table 1. Frequency Table of Employees Blood Type with Relative Frequencies

Class Tally Frequency Relative Frequency (%)
A IIII 5 20
B IIII II 7 28
O IIII IIII 9 36
AB IIII 4 16
n=25 100
When the range of the data is large, grouped frequency distributions are used. The smallest
and largest possible data values in a class are the lower- and upper-class limits. Class
boundaries separate the classes. To find a class boundary, average the upper-class limit of
one class and the lower-class limit of the next class. The class width can be calculated by
subtracting successive lower-class limits (or boundaries) or successive upper-class limits (or
boundaries). The class midpoint Xm can be calculated by averaging upper and lower class
limits (or boundaries).
Rules for Classes in Grouped Frequency Distributions

There should be 5-20 classes, the class width must be an odd number, mutually exclusive,
continuous, exhaustive and must be equal in width (except in open-ended distributions).
Example 2
The following data represent the record high temperatures for each of the 50 states.
Construct a grouped frequency distribution for the data.
112 100 127 120 134 118 105 110 109 112 110 118 117 116 118 122 114
114 105 109 107 112 114 115 118 117 118 122 106 110 116 108 110 121
113 120 119 111 104 111 120 113 120 117 105 110 118 112 114 114
Steps in Constructing a Grouped Frequency Distribution

Step 1. Determine the range.
Range = Highest score – Lowest score = 134 – 100 = 34
Step 2. Determine the no. of classes k, k = 1 + 3.32 log n, where n is the no. of population.
k = 1 + 3.32 log n; 1+ 3.32 log 50 = 6.64
𝑅 34
Step 3. Obtain the class size or class width, i, i = = = 5.12 or 5
𝑘 6.64
Step 4. Make the classes. For convenience sake, we will choose the lowest data value, 100
for the first lower class limit. The subsequent lower-class limits are found by adding the width
to the previous lower-class limits.

Step 5. Tally the data.

Table 2. Grouped Frequency Distribution of Recorded High Temperature of 50 States
Class Limits Class Boundaries Frequency Cumulative Frequency
130-134 129.5 - 134.5 1 50
125-129 124.5-129.5 1 49
120-124 119.5-124.5 7 48
115-119 114.5-119.5 13 41
110-114 109.5-114.5 18 28
105-109 104.5-109.5 8 10
100-104 99.5-104.5 2 2
n=50
Based from the constructed table, answer the following questions:

a. How many states experienced the temperature 115-119? _________________
b. What temperature was experienced by 18 states? _________________
c. What is the cumulative for the temperature 120-124? _________________

1. Twenty farmers were asked how many hours they worked per day. Their responses, in hours, are
as follows: 5; 6; 3; 3; 2; 4; 7; 5; 2; 3; 5; 6; 5; 4; 4; 3; 5; 2; 5; 3. Construct a frequency distribution and
interpret the data.
2. Construct a frequency distribution for the following data and interpret.

11 19 12 15 10 18 15 10 25 13
16 16 15 16 27 16 23 11 17 12
21 11 13 21 29 15 24 12 21 12
11 17 24 12 23 26 15 11 14 13
19 13 18 20 11 11 12 18 12 16
 Graphical Presentation
The graphical presentation on the other hand, is a visual presentation of the data. A graph is a tool
that helps you learn about the shape or distribution of a sample. The graph can be a more effective
way of presenting data than a mass of numbers because we can see where data clusters and
where there are only a few data values. Graphs are commonly used in oral presentation. There are
several forms of graphs to use like the pie chart, pictograph, bar graph, line graph, histogram,
frequency polygon and box-plot.
1. Histogram
A histogram is a graph that displays the data by using vertical bars of various heights to
represent the frequencies of the classes. The horizontal axis is labeled with what the data
represents. The vertical axis is labeled either frequency or relative frequency. Histograms use
class boundaries and frequencies of the classes.

Example
Construct a histogram to represent the data for the record high temperatures for each of the
50 states.
Class Limits Class Boundaries Frequency

130-134 129.5 - 134.5 1
125-129 124.5-129.5 1
120-124 119.5-124.5 7
115-119 114.5-119.5 13
110-114 109.5-114.5 18
105-109 104.5-109.5 8
100-104 99.5-104.5 2
n=50
2. Frequency Polygon
Frequency polygon is a graph that displays the data by using lines that connect points plotted
for the frequencies at the class midpoints. The frequencies are represented by the heights of the
points and the class midpoints are represented on the horizontal axis. Frequency polygons use
class midpoints and frequencies of the classes.
Example
Using the example above, construct a frequency polygon.
Class Limits Class Midpoints Frequency

130-134 132 1
125-129 127 1
120-124 122 7
115-119 117 13
110-114 112 18
105-109 107 8
100-104 102 2
n=50


A frequency polygon
is anchored on the
x-axis before the first
class and after the
last class.
3. Box Plot
A box plot is also known as box-and-whisker plots or box-whisker plots. It shows how far the
extreme values are from most of the data. A box plot is constructed from five values: the
minimum value, the 1st quartile, the median, the 3rd quartile, and the maximum value. We use
these values to compare how close other data values are to them. To construct a box plot, use a
horizontal or vertical number line and a rectangular box. The smallest and largest data values
label the endpoints of the axis. The 1st quartile marks one end of the box and the 3rd quartile
marks the other end of the box. The "whiskers" extend from the ends of the box to the smallest
and largest data values. The median or 2nd quartile can be between the 1st & 3rd quartiles, or it
can be one, or the other, or both. The box plot gives a good, quick picture of the data.
Example
Consider the dataset. 1; 1; 2; 2; 4; 6; 6.8; 7.2; 8; 8.3; 9; 10; 10; 11.5 The 1st quartile is 2, the
median is 7, and the 3rd quartile is 9. The smallest value is 1, and the largest value is 11.5. The
following image shows the constructed box plot.
4. Pareto Chart
A Pareto chart is a bar graph. The lengths of the bars represent frequency or cost (time or
money), and are arranged with longest bars on the left and the shortest to the right.

Other Types of Graphs

1. Bar Graph
A bar graph or a bar chart is used to represent data visually using bars of different heights or
lengths. Data is graphed either horizontally or vertically, allowing viewers to compare different
values and draw conclusions quickly and easily.
2. Time Series Graph

A time series chart, also called a times series graph or time series plot, is a data visualization
tool that illustrates data points at successive intervals of time. Each point on
the chart corresponds to both a time and a quantity that is being measured.
3. Pie Chart
A Pie Chart (or Pie Graph) is a special chart that uses "pie slices" to show relative sizes of data.
The chart is divided into sectors, where each sector shows the relative size of each value.


1. Make a box plot using the data below.
12, 5, 22, 30, 7, 36, 14, 42, 15, 53, 25
2. Make a histogram and frequency polygon.
3. Make a pie chart using the data below

Science Club = 30% Math Club = 40% English Club = 20% History Club = 10%
B.1.2. Measures of Central Tendency

Any measure indicating the center of a set of data arranged in an array is known as Measure of
Central Tendency. Measure of Central Tendency provides a very convenient method of describing a set
of scores with a single value that is used to describe the “center” of the data. The most commonly used
measures of Central tendency are the mean, median and mode.
Mean (𝒙̅) is the set of scores or observations being added and divided by the number of
scores. It is also called as average or arithmetic mean.
∑𝑥
𝑥̅ = 𝑛 where: 𝑥̅ = sample mean
∑ 𝑥 = sum of the scores or observation
n = number of scores or observation

Example 1
The data below are the ages of samples of 10 pupils in a certain school. Find the mean.
9, 8, 10, 7, 7, 8, 12, 9, 10,11
∑𝑥 9+8+10+7+7+8+12+9+!0+11 91
Solution: 𝑥̅ = 𝑛
= 10
= 10
= 9.1
The average age of 10 pupils in a certain school is 9.1.

Example 2
The data below are the number of employees in a certain store. Find the mean.
3, 6, 5, 4, 7, 8,10
∑𝑥 3+6+5+4+7+8+10 43
Solution: 𝑥̅ = 𝑛 = 7
= 7
= 6.14
The average number of employees is 6.14.
Properties of the Mean

1. It measures stability. Mean is the most stable among other measures of central tendency
because every score contributes to the value of the mean.
2. The sum of each score’s distance from the mean is zero.
3. It is easily affected by extreme scores.
4. It may not be an actual score in the distribution.
5. It can be applied to interval level of measurement.
6. It is very easy to compute.
When to Use the Mean

1. Sampling stability is desired
2. Other measures are to be computed such as standard deviation, coefficient of variation and
skewness.
̅𝒘
Weighted Mean 𝒙 of a given group of data is the average of the means of all the
groups.
∑ 𝒘𝒙
̅𝒘 = ∑
𝒙 where w = weight of the score
𝒘
X = the score
∑ 𝒘 = sum of the weight
Example
There are 1,000 notebooks sold at ₱ 10 𝑒𝑎𝑐ℎ ; 500 notebooks at ₱ 20 𝑒𝑎𝑐ℎ ; 500 notebooks
at ₱ 25 𝑒𝑎𝑐ℎ and 100 notebooks at ₱25 𝑒𝑎𝑐ℎ. Solve for the weighted mean.
Solution:
Notebook’s Price (x) Frequency (w) Price x Frequency (wx)

₱10 1 000 ₱10,000
₱20 500 ₱10,000
₱25 500 ₱12,500
₱30 100 ₱3,000
∑ 𝒘 = 2 100 ∑ 𝒘𝒙 = ₱ 𝟑𝟓, 𝟓𝟎𝟎
∑ 𝒘𝒙 ₱ 𝟑𝟓 𝟓𝟎𝟎
̅𝒘 = ∑
𝒙 = = ₱16.90
𝒘 𝟐 𝟏𝟎𝟎
The average price of the notebook cost ₱16.90.

Median (𝒙 ෥) is the value found at the middle when the data are arranged in an array
form. If there are two middle values, the average is taken.

Example 1
The following are the scores of 5 students in a math quiz of 10 items.
9, 8, 10, 7, 5
Solution: 5, 7, 8, 9, 10
The median score is 8. Fifty percent or two of the scores are above 8 (9, 10) and fifty
percent or two of the scores are below 8 (5,7)
Example 2
The following are the sizes of shoes of 6 male basketball players.
10, 12, 9, 11, 13, 11.5
11+11.5 22.5
Solution: 9, 10, 11, 11.5, 12,13 get the average; 2
= 2
=11.25
The median score is 11.25 which means that 50% of the sizes in the distribution are lower
than 11.25, those are 11, 10 and 9; and 50% are greater than 11.25, those are 13, 12 and
11.5 which mean three scores are below 11.25 and three scores are above 11.25.
Properties of the Median

1. It may not be an actual observation in the data set.
2. It can be applied in ordinal level.
3. It is not affected by extreme values because median is a positional measure.
When to Use the Median

1. The exact midpoint of the score distribution is desired.
2. There are extreme scores in the distribution.
Mode ( 𝒙ෝ) is the value that occurs most often in a data set. It can be unimodal, bimodal,
trimodal or multimodal. Unimodal is a distribution of scores consisting of one mode.
Bimodal consist of two modes, trimodal with three modes and multimodal with more
than two modes.

Example 1
From the set of scores 3,3,5,7,9,10,11,10,11,12,9,18 and 9. What is the mode of the scores?
Solution: 3, 3, 5, 7, 9, 9, 9, 10, 10, 11, 11, 12, 18;

9 appears 3 times, thus, 9 is the mode of the scores; The distribution of scores is unimodal.

Example 2
Find the mode of the data set: 7, 9, 11, 15, 17, 18,18,19, 24, 24, 26
Solution: 7, 9, 11, 15, 17, 18,18,19, 22, 22, 26;

The modes are 18 & 22 since 18 & 22 appeared twice. Hence, the distribution is bimodal.
Properties of the Mode

1. It can be used when the data are quantitative or quantitative.
2. It may not be unique.
3. It is not affected by extreme values.
4. It may not exist.
When to Use the mode

1. When the Typical value is desired.
2. When the data is measured on a nominal scale.

3. The data represent the number of days off per year for a sample of individuals selected from nine
different countries. Find the mean.
20, 26, 40, 36, 23, 42, 35, 24, 30
Solution:
Answer: ______________________
4. Find the mean of the following data: 10, 12, 13, 15, 16, 19, 30
Solution:
Answer: ______________________
5. Find the Grade point average (GPA) of Camille for the first semester, school year 2020-2021.
Subjects Grade (x) Units (w) Grade x Units (wx)

Math 1 89 3
Filipino 1 90 3
English 1 92 3
PE 1 95 1
Philo1 91 3
Chem 1 88 4

6. The number of rooms in the seven hotels in Metro Manila is 713, 300, 618, 595, 311, 401, and 292.
Find the median.
Solution:
Answer: ______________________
7. The number of typhoons that have occurred in the Philippines over an 6-year period follows. Find
the median.
684, 764, 656, 702, 856, 1303
Solution:
Answer: ______________________
8. Find the mode of the following values: 4, 5, 8, 8, 9, 12, 12, 19, 20

Solution:
Answer: ______________________
9. Find the mode for the number of coal employees per county for 10 selected counties in
Southwestern Pennsylvania.
110, 731, 1031, 84, 20, 118, 1162, 1977, 1031, 752
Solution:
Answer: ______________________
References:
https://asiasociety.org/education/understanding-world-through-math
Dr. Patricia B. Licuanan, TEACHING GUIDE FOR SENIOR HIGH SCHOOL Statistics and Probability, c. 2016
Daligdig, Romeo M., Mathematics in the Modern World, Lorimar Publishing Inc., c. 2019
www.mathsisfun.com/definitions/pie-chart-pie-graph.html



Contact Details

C. Mathematics of Graphs Week 16 to Week 18 [Final]
C.1 Graphs and Euler Circuits
C.2 Weighted Graphs
C.3 Euler’s Formula
C.4 Graph Coloring

-Define and apply key terms in graph theory;
-Differentiate the kinds of graphs;
-Model problems with the aid of graphs; and
-Develop appreciation of graph theory through concepts and problems


C. Mathematics of Graphs
Introduction
The study of mathematics involves the concept of graphs. This is known as Graph Theory. Although
graph theory has been around for over a century now, its immense applications in almost all fields of
endeavor are very useful.
C.1 Graphs and Euler Circuits

C.1.1. Graphs
A graph is a set of vertices connected by edges. These edges may be ordered or unordered. If a
graph has ordered has ordered pairs of vertices, then the graph is directed. Otherwise, it is called an
undirected graph. The degree of a vertex is the number of edges connected to it. Illustrations of
undirected graphs are shown below:
Notice that both graphs are the same because they have the same set of vertices and edges. The
graph shows that there are 5 vertices: A, B, C, D, and E and there are four edges:
{𝐴, 𝐵}, {𝐵, 𝐶}, {𝐵, 𝐷}, 𝑎𝑛𝑑 {𝐵, 𝐸}. This graph is undirected because {𝐴, 𝐵} = {𝐵, 𝐴}. The degree of each
vertex is shown below:
Vertex A B C D E
Degree 1 4 1 1 1
Now, a directed graph is shown below. It can be seen that (B, A) is an ordered pair. The edge from
A to B is called the indegree of the vertex A. the edge from B to A is called the outdegree of the vertex
B. The indegree and outdegree of the vertices are shown below. Note that the sum of the indegree and
the outdegree of each vertex is the total number of edges connected to that vertex.
Vertex Indegree Outdegree

A 2 0
B 0 2
C 1 1
D 0 2
E 2 0
F 0 3
G 3 0

If a graph has no loops nor multiple edges, then it is a simple graph. If there are no edges
connecting each of the vertices, then it is a null graph. An example of a simple graph is shown in
Figure 7.1.d while the graph in Figure 7.1.e is an example of a null graph.
Figure 7.1.d Figure 7.1.e
A path is a sequence of vertices such that they are

connected by edges. A circuit is a path that starts and ends at
the same vertex. To illustrate these concepts, consider the
following graph in the right. The graph contains a path since A
→ B → D → E is a connected graph. Other paths include A →
B → C, B → D → E and A → C → B → D → E. A circuit exists
in the graph A → B → C → A.
If there is a path from one vertex to another, then the graph is called connected graph. Taking the
path A → D → B → C from the graph below makes {𝐴, 𝐷, 𝐵, 𝐶} a connected graph. A planar graph is a
graph such that no edges cross each other. The graph {𝐴, 𝐷, 𝐵, 𝐶} from Figure 7.2.a can be redrawn
such that no edges cross. This is shown in Figure 7.2.c.
Figure 7.2.a Figure 7.2.b Figure 7.2.c
C.1.2. Euler Circuits

It was from the Swiss mathematician Leonhard Euler that graph theory
started to gain worldwide attention. As such, he was able to develop many
concepts including the Euler’s circuit and Euler’s formula.
Euler’s circuit is a circuit that uses edges only

once. Consider the graph on the right.
Notice that the circuit B → D → E → C → B

shows Euler’s circuit because it uses each edge
only once.

Learning Activity No. 1

Part 1. Abstraction (Visual Analysis)
Instructions: Satisfy what each item requires.
1. For both Figure 1.a and 1.b, identify the
following
a. Vertices
b. Edges
c. Degree of each vertex
2. For the directed graph as shown in Figure 2. Identify the indegree and outdegree of each vertex.
Vertex Indegree Outdegree

A
B
C
D
E
F
Part 2. Application (Practical Comprehension)

Instructions: Answer the question stated below.
How will you apply the basic concepts of graph theory to real-life situations?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Trees and Weighted Graphs

A graph is acyclic if it has no cycles.
A tree is an acyclic and connected graph. It is a connected graph that
contains no cycle. The graph on the right is an example of a tree.
The graph shown above is a tree because it has no cycles, and it is
connected. It has eight vertices and seven edges. Note that a tree with n-vertices has n-1 edges, and
every tree has at least two vertices of degree one. If it has one more edge extra than n-1, then the extra
edge obviously has to pair up with two vertices, which lead to form a cycle. It becomes then a cyclic
graph, which is not permitted for the tree graph.
Corollary 9.1: Every finite tree with at least two vertices has at least two leaves. Deleting a leaf
from an n-vertex tree produces a tree with n-1 edges.

A forest is a disconnected acyclic graph,

hence, a union of trees. The following graphs on
the right look like three subgraphs. But they form a
single disconnected graph. Notice that there are no
cycles in this graph. Therefore, the graph
represents a forest.
A leaf (or pendant vertex) of a connected graph

is subtree that includes all the vertices of that
graph. Given any connected graph G, we can
choose a cycle and remove any one its edges, and
resulting graph remains connected. We repeat this
procedure with one of the remaining cycles,
continuing until there are no cycles left. Consider
the graphs G1 and G2 on the right.
In the above example, G1 is connected graph, and G2 is a subgraph of G1. Notice that the graph G2
has no cycle; it is a tree with six edges, which is one less than the total number of vertices. Hence, G 2 is
the spanning tree of G1.
Theorem 9.1. If the graph G has n vertices & m edges, then the following statements are equivalent:
a. G is a tree.
b. There is exactly one path between any two vertices in G, and G has no loops.
c. G is connected, and m = n – 1.
d. G is circuitless, and m = n – 1.
e. G is circuitless, and if we add any new edge to G, we will get one and only one circuit.
The circuit rank of G is the number of edges deleted from G to get a spanning tree which is equal
to m-(n-1). This formula is true because in a spanning tree, you need to have n-1 edges. Out of m
edges, you need to keep n-1 edges in the graph. Hence, deleting n-1 edges from m allows he edges to
be removed from the graph to get a spanning tree, which should not form a cycle. Circuit rank can also
be interpreted as the number of independent cycles in the graph.
Let us refer to the following set of example.
Example
Graph G1 (on the right) has m = 8 edges & n = 7 vertices.
Solution:
The circuit rank of G can be computed as follows:
Circuit rank of G = m – ( n – 1 )
= 8–(7–1)
= 8–6
= 2
The 2 edges that can be deleted are AD and CG. One may also delete BC and EF or AB and
GF. Remember that you can choose any cycle and remove one of its edges, and the resulting
graph is still connected.

Cayley’s Formula
The number of spanning trees with known n-vertices can be obtained by using Cayley’s Formula
(1889), which states that “There are n n-2 trees on a vertex set V of n elements”.
Let us refer to the following set of example.
Example
How many spanning trees are there with 3 vertices?
Solution:
By applying Cayley’s formula with n = 3, we have,
Number of spanning trees = n n-2  33-2
=3
The following graphs on the right are the 3 labeled trees of 3

vertices.
In contrast, there are only a few trees up to isomorphism (graphs, which contain the same number
of vertices connected in the same way). The table below summarizes the number of isomorphic trees
with n-vertices of up to 10 only.
n 1 2 3 4 5 6 7 8 9 10
trees 1 1 1 2 3 6 11 23 47 106
The non-isomorphic trees of 6 vertices are shown below.
C.2 Weighted Graphs

Graphs that have a number assigned to each degree are called weighted graphs. Weighted
graphs can be represented in the same way as unweighted graphs except that you have to represent
the weights on the edges. A weighted graph is, therefore, a special type of labeled graph in which the
labels are numbers, which are usually taken to be positive. It is used to model computer networks,
electrical or cable wiring connections, communication costs, such as the monthly cost of leasing a
telephone line, and the response times of the computers over these lines.
The graph on the right represents an example of a weighted

graph. Notice that each edge is assigned a number connecting
the vertices. This number represents the weight or distance of the
edge. The weight of an edge is often referred to as the “cost” of
the edge.
There is an important problem involving weighted graphs that asks for a circuit of shortest total
length that visits every vertex of a complete graph exactly once. This is the famous traveling
salesperson problem, which asks for an order in which a salesperson should visit each of the cities
on his route exactly once so that he travels the minimum total distance.
Learning Activity No. 2 - Abstraction (Visual Analysis)

Instructions: Draw all the spanning trees of the following graphs.
C.3 Euler’s Formula

It was shown that a circuit is a path that starts and ends with the same vertex. As defined earlier,
Euler’s circuit is a circuit that uses edges only once. Euler’s formula says that if a connected, planar
graph has “e” edges, “v” vertices and “f” faces, then f = e – v + 2 where a face of a graph is the
bounded region of a graph. Bounded regions may be inside or outside the graph.
Going back to Figure 7.2.e as shown on the right. There are 2 faces. This
can be verified using Euler’s formula and we can get.
f=e–v+2
f=4–4+2=2
Learning Activity No. 3 - Abstraction (Visual Analysis)

Instructions: Satisfy what each item requires considering the given
graph as shown on the right side.
1. Draw the two connected graphs
2. Draw two planar graphs
3. Draw two Euler circuits
4. Find the number of faces in the graph.
C.4 Graph Coloring

Graph coloring is one of the most easily understood concepts of graph theory. However,
theoretically, it is also on the most difficult concepts to generalize.
Learning Activity No. 4 – Application (Collaboration)

Instructions: Color each vertex such that the least colors of crayons are used. You may repeat colors as
long as they are not next to each other. Compare your work with others.

What did you notice about the number of colours per figure?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Recall that a planar graph is a graph such that no edges cross each other. There are tow theorems
that are notable: 2-colorable graph theorem and the four-color theorem.
The 2-colorable graph theorem states that a graph is 2-

colorable if and only if it has no circuits that consist of an odd
number of vertices. The following graph is 2-colorable.
Another theorem is used to color graphs. This is known

as the Four-color Theorem. Instead of coloring the
vertices, the regions of the graph are colored. The four-
color theorem states that at most 4 colors are needed to
color the planar graph such that no adjacent regions share
the same color. The following shows this.
Learning Activity No. 5 – Application (Creativity)

Instructions: For each of the following graphs, identify how many colors are needed?
References:
Tolentino, A.R.P., Gutierrez, M.C., Hernandez, F.G., Ramos, R.A., Hortelano,J.T., and Pante, T.O (2018) Mathema-
tics in the Modern World
https://sco.wikipedia.org/wiki/Leonhard_Euler
Matira, Myrna D. (2016) Data Handling Essentials of Statistics and Probability for the 21st Century Learners
Belcina, R.R, Baccay, E.S, and Mateo, E.B (2019) Statistics and Probability
Broto, Antonio S. Statistics Made Simple (second edition)

6 (1) - Merged

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

6 (1) - Merged

Uploaded by

Copyright:

Available Formats

Republic of the Philippines

CAMARINES NORTE STATE COLLEGE

NAME OF DELIVERY UNIT

GEC 3 – Mathematics in the Modern World Page 1 of 15

NAME OF DELIVERY UNIT

GEC 3 – MATHEMATICS IN THE MODERN WORLD

OUTLINE OF LEARNING TOPICS TIME ALLOCATION

INTENDED LEARNING OUTCOMES (ILOs)

INSTRUCTIONS TO THE LEARNERS

GEC 3 – Mathematics in the Modern World Page 2 of 15

NAME OF DELIVERY UNIT

C. The Mathematics of Finance

C.1 Simple and Compound Interest

C.1.1. Simple Interest

Let us refer on the following set of examples

GEC 3 – Mathematics in the Modern World Page 3 of 15

NAME OF DELIVERY UNIT

Maturity Value and Future Value

Let us refer on the following set of examples

GEC 3 – Mathematics in the Modern World Page 4 of 15

NAME OF DELIVERY UNIT

C.1.2. Compound Interest

Let us refer on the following set of examples

GEC 3 – Mathematics in the Modern World Page 5 of 15

NAME OF DELIVERY UNIT

Learning Activity No. 1 – Abstraction (Critical Thinking)

C.2 Credit Cards and Consumer Loans

Finance Charges (based on PNB Credit Cards)

DAILY INTEREST RATE “rd”

DAILY INTEREST "𝜤d”

3. Find total interest I earned for the billing period. 𝛪 = Σ Id

GEC 3 – Mathematics in the Modern World Page 6 of 15

NAME OF DELIVERY UNIT

Let us refer on the following set of example

Date Payment or purchases Daily Balance

Follow these credit card tips to help avoid common problems:

NAME OF DELIVERY UNIT

C.2.2. Consumer Loans

GEC 3 – Mathematics in the Modern World Page 8 of 15

NAME OF DELIVERY UNIT

Calculating Periodic Payment

PMT Formula for Consumer Loans

EXCEL PMT FUNCTION

= PMT (rate, nper, pv, [fv], [type])

Let us refer on the following set of examples

b) For the balance

c) For the finance charge

d) For the monthly installment

GEC 3 – Mathematics in the Modern World Page 9 of 15

NAME OF DELIVERY UNIT

Learning Activity No. 2 – Abstraction (Critical Thinking)

GEC 3 – Mathematics in the Modern World Page 10 of 15

NAME OF DELIVERY UNIT

C.3 Stocks, Bonds, and Mutual Funds

GEC 3 – Mathematics in the Modern World Page 11 of 15

NAME OF DELIVERY UNIT

Why companies issue Stocks?

Dividend, Dividend Yield and Stock Price

Dividend, Dividend Yield and Stock Price

Let us refer on the following set of example

Dividend yield is 0.05 or 5%

NAME OF DELIVERY UNIT

Difference between Stocks and Bonds