Mathematics For Management

Math180
Mathematics for Management
Lecture Notes
by
Dr. Muhammad Aslam
Department of Mathematics
Lock Haven University
Lock Haven, PA 17745.
Fall 2009
ii
Contents
1 Systems of Linear Equations and Matrices 1
1.1 Solution of Linear Systems by the Echelon Method . . . . . . . . . . . . . 1
1.2 Solution of Linear systems by the Gauss-Jordan Method . . . . . . . . . . 10
1.3 Addition and Subtraction of Matrices . . . . . . . . . . . . . . . . . . . . . 18
1.4 Multiplication of Matrices . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
1.5 Matrix Inverses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2 Linear Programming: The Graphical Method 35
2.1 Graphing Linear Inequalities . . . . . . . . . . . . . . . . . . . . . . . . . . 35
2.2 Solving Linear Programming Problems Graphically . . . . . . . . . . . . . 47
2.3 Applications of Linear Programming . . . . . . . . . . . . . . . . . . . . . 54
3 Linear Programming: The Simplex Method 63
iii
iv CONTENTS
3.1 Slack Variables and the Pivot . . . . . . . . . . . . . . . . . . . . . . . . . 64
3.2 Maximization Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
3.3 Minimization Problems; Duality . . . . . . . . . . . . . . . . . . . . . . . . 78
4 Probability 85
4.1 Introduction to Probability . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
4.2 Basic Concepts of Probability . . . . . . . . . . . . . . . . . . . . . . . . . 91
4.3 Conditional Probability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

List of Figures
2.1 x+y > 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
2.2 4x + 3y ≤ 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
2.3 y ≤ −2x + 8, −2 ≤ x ≤ 1 . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.4 2x − 5y ≤ 10, x + 2y ≤ 8, x ≥ 0, y ≥ 0. . . . . . . . . . . . . . . . . . 41
2.5 x + 2y ≤ 12, 2x + y ≤ 12, x ≥ 0, y ≥ 0. . . . . . . . . . . . . . . . . . 42
2.6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
2.7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
2.8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
2.9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
2.10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
3.1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
v
vi LIST OF FIGURES
Chapter 1
Systems of Linear Equations and

Matrices
1.1 Solution of Linear Systems by the Echelon Method
In this section, we discuss following important questions about the systems of linear equa-
tions?
How many solutions(if any) are possible for the system of linear equations?
How to use transforms to simplify the system of linear equations?
What is Echelon Method?
How to find solution(s) of the system of linear equations by using Echelon

Method?
What is the difference between consistent and inconsistent system of linear
1
2 CHAPTER 1. SYSTEMS OF LINEAR EQUATIONS AND MATRICES
equations?
Possible Types of Solutions
1. Unique solution: Graphs of linear equations will intersect at a single point.
2. No solution: Graphs of linear equations will not intersect.
3. Infinitely many solutions: All linear equations will be representing a same graph or
their graphs are intersecting at infinite many points.
Definition 1 An equivalent system is a system that has the same solutions as the given
system.
Example 1 System of equations

2x + 3y = 12
3x − 4y = 1
and system of equations

3
x+ y =6
2
y=2
are equivalent systems because both have same solution (3, 2).
Transformations of a System The following transformations can be applied to a

system of equations to get an equivalent system:
1. exchange any two equations.
2. multiply both sides of an equation by any nonzero real number.

1.1. SOLUTION OF LINEAR SYSTEMS BY THE ECHELON METHOD 3
3. replacing any equation by a nonzero multiple of that equation plus a nonzero multiple
of any another equation.
Demonstration of Transformations: For example, we are given a system of equa-

tions
2x − 3y + 4z = 11
4x − 19y + z = 31
5x + 7y − z = 12
Transformation 1: Interchanging any two equations.
2x − 3y + 4z = 11
5x + 7y − z = 12
4x − 19y + z = 31
Here we interchanged second and third equations and got an equivalent system to the given
system. We will denote this transformation by R23 .
Transformation 2: Multiplying an equation by a nonzero real number.
−4x + 6y − 8z = −22
4x − 19y + z = 31
5x + 7y − z = 12
Here we multiplied first equation by −2 in the given system. We will denote this transfor-
mation by (−2)R1 → R1 .
Transformation 3: Replacing any equation by a nonzero multiple of that equation

plus a nonzero multiple of any another equation.
2x − 3y + 4z = 11
0x − 13y − 7z = 9
5x + 7y − z = 12
Here we have replaced second equation by multiplying second equation by 1 plus multiplying
first equation by −2 in the given system. We will denote this transformation by (−2)R1 +
R2 → R2 .
The Echelon Method A systematic approach for solving systems of equations using
above three transformations is called the Echelon method. The goal of the Echelon method
is to use the transformations to rewrite the equations of the system until the system has a
triangular form. For a system of three equations in three variables, for example, the system
should have the form
x + ay + bz = c
y + dz = e
z=f
Where a, b, c, d, e, and f are constants. Then the value of z from the third equation
can be substituted into the second equation to find y, and the values of y and z can be
substituted into the first equation to find x. This is called back substitution.
Example 2 Solve the following system by Echelon method;
2x + 3y = 12
3x − 4y = 1.
Solution We will first use transformation 3 to eliminate the x term from the second
equation. We can see 3R1 + (−2)R2 gives us
17y = 34
so we are replacing it with the second equation.
2x + 3y = 12
3R1 + (−2)R2 → R2 17y = 34
1
Next we are using transformation 2 and multiplying first equation by 2
and second
1
equation by 17
.
1
R
2 1
→ R1 x + 32 y = 6
1
R2 → R2 y=2
17
Back substitution gives

3
x + (2) = 6
2
x+3=6
x = 3.
The solution of the system is (3, 2).
Definition 2 A system of equations is called inconsistent if it has no solution.
Example 3 Solve the system

2x − 3y = 6
−4x + 6y = 8.
Solution We will use transform 3 to eliminate x term from the second equation.
2x − 3y = 6
2R1 + R2 → R2 0 = 20.
In the second equation, both variables have been eliminated, leaving a false statement.
This is a signal that this system has no solution and therefore is inconsistent.
Example 4 Solve the system

3x − 2y = −4
−6x + 4y = 8.
Solution Using transform 3, we have
3x − 2y = −4
2R1 + R2 → R2 0 = 0.
In the second equation, both variables have been eliminated, leaving true statement. In
fact, we are left with one equation in two variables. This indicates that both equations are
representing the same line. We call such system as dependent and it has infinite many
solutions. We will express these solutions in terms of y, where y can be any real number.
2y−4
Solving first equation for x, we get x = 3
. Therefore, solution will be ( 2y−4
3
, y). In this
case y is called parameter.
Summary of Echelon Method for Solving System of Linear equations
Suppose we have a system of linear equations in n variables, x1 , x2 , · · · , xn . Then

1. If possible, arrange the equations so that there is an x1 term in the first equation, an
x2 term in the second equation, and so on.
2. Eliminate x1 term in all equations after the first equation.
3. Eliminate x2 term in all equations after the second equation.
4. Eliminate x3 term in all equations after the third equation.
5. Continue in this way until the last equation has the form axn = k, for constant a and
k, if possible.
6. Multiply each equation by a reciprocal of the coefficient of its first term.
7. Use Back Substitution to find the value of each variable.
Example 5 Solve the following system by Echelon Method.
2x + y − z = 2
x + 3y + 2z = 1
x + y + z = 2.
Solution First we need to eliminate x term from second and third equations.
2x + y − z = 2
R1 + (−2)R2 → R2 − 5y − 5z = 0
R1 + (−2)R3 → R3 − y − 3z = −2.
Next we need to eliminate from third equation.
2x + y − z = 2
−5y − 5z = 0
R2 + (−5)R3 → R3 10z = −10.
Now we have to make coefficient of first term in each equation equal to 1.
1 1 1
R1 → R1 x + y+ z=1
2 2 2
−1
R2 → R2 y+z =0
5
1
R3 → R3 z = 1.
10
Substitute z = 1 in second equation and get y = −1 and substituting these values of y

and z in first equation and get x = 2. The solution of the system is (2, −1, 1).
Example 6 If 20 lb of rice and 10 lb of potatoes cost $16.20, and 30 lb of rice and 12 lb

of potatoes cost $23.04, how much will 10 lb of rice and 50 lb of potatoes cost?
Solution Let x denotes per lb price of rice and y denotes per lb price of potatoes. Then
20x + 10y = 16.20
30x + 12y = 23.04.
Now we have to solve this system. Eliminate y from the second equation.
20x + 10y = 16.20
(−3)R1 + 2R2 → R2 − 6y = −2.52.

Make coefficient of first term in each equation equal to 1.
1 1
R1 → R1 x + y = 0.81
20 2
−1
R2 → R2 y = 0.42.
6
Substitute the value of y = 0.42 in first equation, we have, x = 0.60. Which means per
lb price of rice is $0.60 and per lb price of potatoes is $0.42. The price of 10 lb of rice and
50 lb of potatoes is 10(0.60) + 50(0.42) = $27.
Practice Problems
Solve each system of equations by using Echelon method.
1.
2x + 5y = 15
x + 4y = 9.
2.
3x − 2y = 3
7x − 5y = 0.
3.
2x − 2y = 5
4y + 8z = 7
x + 2z = 1.
4.
x + y + z = −1
4x + 5y = −2
y − 3z = 3.
5.
x + 3y − 2z = 4
2x + 7y − 3z = 8
3x + 8y − 5z = −4.
1.2 Solution of Linear systems by the Gauss-Jordan Method
Important questions explored in this section are the following.
How to write augmented matrix from the given system of linear equations?
What are elementary row operations?
What is Gauss-Jordan method?
How to solve system of linear equations by using Gauss-Jordan method?
Suppose we have a system of linear equations,
2x + y − z = 2
x + 3y + 2z = 1
5x − 2y + 3z = 7.
1.2. SOLUTION OF LINEAR SYSTEMS BY THE GAUSS-JORDAN METHOD 11
This system can be written in an abbreviated form as

 
 2 1 −1 2 
 
.
 1 3 2 1 

 
5 −2 3 7
Such a rectangular array of numbers enclosed by brackets is called matrix and each
number in the array is called an element or entry. The matrix written from the system of
equations is called augmented matrix.
Row Operations For any augmented matrix of a system of equations, following op-
erations produce the augmented matrix of an equivalent system:
1. Interchanging any two rows.
2. Multiplying the elements of a row by a nonzero number.
3. Adding a nonzero multiple of the elements of one row to the corresponding elements
of a nonzero multiple of some other row.
If we interchange row 2 of the matrix by row 3 then

   
 2 1 −1 2   2 1 −1 2 
   
 becomes  5 −2 3 7  . We will denote this by R12 .
 1 3 2 1   

   
5 −2 3 7 1 3 2 1
Similarly multiplying row 2 by a number 3 will be denoted by 3R2 → R2 .

   
 2 1 −1 2   2 1 −1 2 
   
 changes to  3 .
 1 3 2 1   9 6 3 

   
5 −2 3 7 5 −2 3 7
In the following operation, twice of row 2 is added to three times row 1. It is denoted
by 2R2 + 3R1 → R1 .
   
 2 1 −1 2   8 9 1 8 
   
1 3  changes to
2 1  1 3 .
2 1 
 
 
   
5 −2 3 7 5 −2 3 7
Gauss Jordan Method Suppose we have a system of linear equations in n variables.

Then Gauss Jordan method requires following steps for the solution of the system of linear
equations.
1. Write each equation so that variable terms are in the same order on the left side of
the equals sign and constants are on the right.
2. Write the augmented matrix that corresponds to the system.
3. Use row operations to transform the first column so that all elements except the ele-
ment in the first row are zero.
4. Use row operations to transform the second column so that all elements except the
element in the second row are zero.
5. Use row operations to transform the third column so that all elements except the
element in the third row are zero.
6. Continue in this way, when possible, until the last row is written in the form

0 0 0 · · · 0 j k ,
where j and k are constants with j 6= 0. When this is not possible, continue until
every row has more zeros on the left than the previous row (except possibly for any
rows of all zeros at the bottom of the matrix), and the first nonzero entry in each row
is the only nonzero entry in this column.
7. Multiply each row by the reciprocal of the nonzero element in that row.
Example 7 Use Gauss Jordan Method to solve the following system of linear equations.
x+y−z =6
2x − y + z = −9
x − 2y + 3z = 1
Solution The augmented matrix is

 
 1 1 −1 6 
 
 2 −1 1 −9 .
 
 
1 −2 3 1
To produce zeros in the first column (in second and third row), we perform
(−2)R1 + R2 → R2 and (−1)R1 + R3 → R3 .
 
 1 1 −1 6 
 
 0 −3 3 −21  .
 
 
0 −3 4 −5
To produce zeros in second column (in first and third row), we perform
1
R
3 2
+ R1 → R1 and (−1)R2 + R3 → R3 .
 
 1 0 0 −1 
 
 0 −3 3 −21  .
 
 
0 0 1 16
Next we produce zero at the third column (second row),

(−3)R3 + R2 → R2 .
 
 1 0 0 −1 
 
 0 −3 0 −69  .
 
 
0 0 1 16
To produce 1 at the place of first nonzero element in row 2, we have,

( −1
3
)R2 → R2 .
 
 1 0 0 −1 
 
 0 1 0 23 .
 
 
0 0 1 16
Thus we conclude that system is consistent and its solution is (−1, 23, 16).
Example 8 Use Gauss Jordan method to solve the system
x + 2y − z = 0
3x − y + z = 6
−2x − 4y + 2z = 0
Solution
The augmented matrix is  

 1 2
−1 0 
 
.
 3 −1 1 6 

 
−2 −4 2 0
We first get zeros in the second and third rows of column 1 by

(−3)R1 + R2 → R2 and 2R2 + R3 → R3 .
 
 1 2 −1 0 
 
 0 −7 4 6  .
 
 
0 0 0 0
To continue, we get zero in the first row of column 2 by,

2R2 + 7R1 → R1 .
 
 7 0 1 12 
 
 0 −7 4 6  .
 
 
0 0 0 0
We cannot get zeros for the first and second row of column 3 without changing the form
of first two columns. We must multiply each of the first two rows by the reciprocal of the
first nonzero numbers. So we have
1 −1
R
7 1
→ R1 and 7
R2 → R2 .
 
1 12
 1 0 7 7 
 
 0 1 −4 −6 .

 7 7 

0 0 0 0
To complete the solution, write the equations
1 12
x+ z =
7 7
4 −6
y− z=
7 7
Since both equations involve z, let z be the parameter.Then
12 − z
x=
7
4z − 6
y=
7
Therefore, the general solution is ( 12−z

7
, 4z−6
7
, z). Where z is any real number.
Practice Problems
Solve each system of equations by using Gauss-Jordan method.
1.
2x + 5y = 15
x + 4y = 9.
2.
3x − 2y = 3
7x − 5y = 0.
3.
2x − 2y = 5
4y + 8z = 7
x + 2z = 1.
4.
x + y + z = −1
4x + 5y = −2
y − 3z = 3.
5.
x + 3y − 2z = 4
2x + 7y − 3z = 8
3x + 8y − 5z = −4.
1.3 Addition and Subtraction of Matrices
Important concepts discussed in this section will include addition of matrices, sub-
traction of matrices, equal matrices and additive inverses.
Matrices are often classified by by size; that is number of rows and columns they contain.
For example, a matrix with three rows and two columns has a size 3 × 2 or we call it a
3 × 2 matrix..
 
 1 3 −1 4 
 
Example 9 The matrix 
 6 2 5 0  is a 3 × 4 matrix.
 
7 0 1 2
Definition 3 A matrix containing only one row is called row matrix.

Example 10 The matrix 3 2 1 2 5 1 is a 1 × 6 matrix. It is also a row matrix.
Definition 4 A matrix of only one column is called column matrix.
 
 3 
 
 2 
 


 is a column matrix of size 4 × 1.

 5 

 
1
Definition 5 A matrix with the same number of rows as columns is called a square
matrix.
1.3. ADDITION AND SUBTRACTION OF MATRICES 19
 
 4 2 3
7 
 

 1 −5 2 −4 



 is a square matrix of size 4 × 4.

 5 2 0 1 

 
2 0 6 3
Definition 6 Two matrices are said to be equal if they are the same size and if each pair
of corresponding elements is equal.
Example 13 Matrices  
 3 2 
 
0 1
and  
 3 2 
 
0 2
are not equal because each pair of corresponding elements is not equal.
Example 14 Matrices  
 2 3 
 
1 4
and  
 2 3 2 
 
1 4 1
are not equal because they have different size.
Example 15 Determine the values of the variables such that following statement is true.
   
 2 5 −1   2 s y 
 = 
t 4 x 7 4 2
solution we have t = 7, x = 2, y = −1, s = 5.

Definition 7 The sum of two m × n matrices X and Y is the m × n matrix X + Y in

which each element is the sum of the corresponding elements of X and Y .
Example 16      
3 −2   2 3   5 1 
+ = .


4 1 5 4 9 5
Example 17
 
  −2 4 
3 1  
 
+
 1 3 
 

1 0  
0 0
does not exist because matrices have different sizes.
Note: It is important to remember that only matrices that are the same size can be
added.
Definition 8 The additive inverse of a matrix X is the matrix −X in which each

element is the additive inverse of the corresponding element of X.
Example 18 The additive inverse of matrix

 
 4 −3 
 
A=
 2 4 

 
0 1
is the matrix  
 −4 3 
 
−A = 
 .
−2 −4 
 
0 −1
1.3. ADDITION AND SUBTRACTION OF MATRICES 21
Definition 9 If O is m × n zero matrix, and A is any m × n matrix, then
A + O = O + A = A.
Note Zero matrix is a matrix whose all elements are zero.
Definition 10 For two m × n matrices X and Y , the difference X − Y is the m × n

matrix defined by
X − Y = X + (−Y ).
Example 19      
 3 −1   2 −3   1 2 
     
 2 4 − 1 4 = 1
     .
0 
     
5 7 6 1 −1 6
Practice Problems Find values of variables in each equation.
1.    
 s−4 t+2   6 2 
 = .
5 7 5 r
2.      
 a + 2 3z + 1 5m   3a 2z 5m   10 −14 20 
 + = .
4k 0 3 2k 5 6 10 5 9
Perform indicated operations, where possible.
1.  
 3 0 

1 3 −2  
 
+
 6 4 .
 

4 7 1  
−5 2
2.
     
2 −3   4 3   3 2 
+ − .


−2 4 7 8 1 4
1.4. MULTIPLICATION OF MATRICES 23
1.4 Multiplication of Matrices
In this section, we will address four important questions.
How to multiply a number to a matrix?
How to multiply any two given matrices?
Can we multiply any two matrices?
Is multiplication of matrices commutative?
Definition 11 The product of a scalar k and a matrix X is the matrix kX, each of whose
elements is k times the corresponding element of X.
Example 20
   
3 −1   −15 5 
(−5)  = .

5 9 −25 −45
Definition 12 Let A be an m × n matrix and let B be an n × k matrix. To find the

element in the ith row and jth column of the product AB, multiply each element in the ith
row A by the corresponding element in the jth column of B, and then add these products.
The product matrix AB is an m × k matrix.
Example 21 Find the product AB of matrices

 
  1
 2 3 −1 
 
 
A=  and B= 8 

.
4 2 2  
6
Solution Since A is 2 × 3 and B is 3 × 1 matrices, we can find the product AB.
 
 1 
    
2 3 −1   2 × 1 + 3 × 8 + (−1) × 6 20
AB =  =
 8  = .
     
4 2 2   4×1+2×8+2×6 32
6
NOTE The product AB of two matrices A and B can be found only if the number of
columns of A is the same as the number of rows of B.
In above example, the product BA is not possible because number of columns in B is 1

and number of rows in A is 2.
Example 22 Find AB and BA if possible for the matrices
 
 1 −3   
   1 0 −1 
A=
 7 2 
 and B= .
  3 1 4
−2 5
Solution
 
 1 −3   
   1 0 −1 
AB = 
 7 2 
 
  3 1 4
−2 5
1.4. MULTIPLICATION OF MATRICES 25
 
 1 × 1 + (−3) × 3 1 × 0 + (−3) × 1 1 × (−1) + (−3) × 4 
 
=
 7×1+2×3 7×0+2×1 7 × (−1) + 2 × 4 

 
(−2) × 1 + 5 × 3 (−2) × 0 + 5 × 1 (−2) × (−1) + 5 × 4
Which gives
 
 −8 −3 −13 
 
AB = 
 13 2 1 .
 
13 5 22
Similarly
 
 1 −3 
 
1 0 −1  
BA =   7 2 

 
3 1 4  
−2 5
 
 1 × 1 + 0 × 7 + (−1) × (−2) 1 × (−3) + 0 × 2 + (−1) × 5 
= 
3 × 1 + 1 × 7 + 4 × (−2) 3 × (−3) + 1 × 2 + 4 × 5
Which gives  
3 −8 
BA =  .

2 13
From above example, we can conclude that multiplication in matrices is not commuta-
tive. That is AB 6= BA in general.
Practice problems Find each product, if possible.
1.  
  5
2 −1 7 



.
 10

  
−3 0 −4  
2
2.
 
 5 2 
 
  1 4 0 
 7 6 
  .
  2 −1 2
1 0
3.
    
2 −2   4 3   7 0 
+ .

 
1 −1 1 2 −1 5
1.5. MATRIX INVERSES 27
1.5 Matrix Inverses
In this section, we will try to answer four important questions.
What is the inverse of a matrix?
How to find an inverse of a matrix?
Does inverse matrix exist for any given matrix?
Why we need inverse matrix?
Definition 13 The matrix I is called identity matrix if AI = IA = A.
This means identity matrix must be square matrix and all of its elements are zero except
the elements on the main diagonal, which are equal to 1.
 
 1 0 
Example 23 The 2 × 2 identity matrix is I =  .
0 1
Let we have  
a b 
A= .

c d
Then
      
a b   1 0   a(1) + b(0) a(0) + b(1)   a b 
AI =  = = .


c d 0 1 c(1) + d(0) c(0) + d(1) c d
and       
 1 0  a b   1(a) + 0(c) 1(b) + 0(d)   a b 
IA =   = = .
0 1 c d 0(a) + 1(c) 0(b) + 1(d) c d
We have
AI = IA = A.
 
 1 0 0 
 
Example 24 The 3 × 3 identity matrix is I = 
 .
0 1 0 
 
0 0 1
Definition 14 Let A be any given square matrix. Then the matrix A−1 is called multi-
plicative inverse of A if
AA−1 = A−1 A = I.
1
NOTE A−1 does not mean A
; here A−1 is just the notation for multiplicative inverse.
Example 25 For the matrix  

 2 1 
A= ,
5 3
 
 3 −1 
A−1 = .
−5 2
Because  
1 0 
AA−1 =  −1
 = A A.

0 1
How to find Inverse?
Let A be any given matrix. In order to find its inverse, first we write it in the form
[A|I]. Where I is the identity matrix of size A. We perform row operations on [A|I] so that
it has the form [I|B]. The matrix B will be inverse of A and we will write as A−1 = B.
 
 1 3 
Example 26 Find the inverse of a matrix A =  .
−1 2
Solution We have the matrix A written in the form

 
1 3 1 0 
.


−1 2 0 1
We perform
 
1 3 1 0 
R1 + R2 → R2

 
0 5 1 1
 
 5 0 2 −3 
−3R2 + 5R1 → R1  
0 5 1 1
 
2 −3
1
1 0 5 5
R
5 1
→ R1 



0 5 1 1
 
2 −3
1  1 0 5 5
R → R2

5 2 
1 1

0 1 5 5
Therefore, we have  
2 −3
5 5
A−1 = 
 

1 1
5 5
 
2 −1 
Example 27 Find A−1 if A = 
 .
4 −2
Solution Write the given matrix in [A|I] form.

 
 2 −1 1 0 
 
4 −2 0 1
 
 2 −1 1 0 
(−2)R1 + R2 → R2  .
0 0 −2 1
Because the last row has all zeros to the left of a vertical line, there is no way to
complete the process of finding the inverse matrix. In other words, we can say that inverse
of the given matrix does not exist.
 
 1 0 1 
 
Example 28 Find A −1
if A = 
 2 −2 −1
.

 
3 0 0
Solution Write in [A|I] form,
 
 1 0 1 1 0 0 
 
 2 −2 −1 0 1 0  .
 
 
3 0 0 0 0 1
−2R1 + R2 → R2
 
 1 0 1 1 0 0 
 
 0 −2 −3 −2 1 0 .
 
 
3 0 0 0 0 1
−3R1 + R3 → R3
 
 1 0 0 0 1 1
 
.
0 −2 −3 −2 1 0 


 
0 0 −3 −3 0 1
R3 + 3R1 → R1
 
 3 0 0 0 0 1 
 
 0 −2 −3 −2 1 0  .
 
 
0 0 −3 −3 0 1
R3 + (−1)R2 → R2  
 3 0 0 0 1  0
 
.
 0 2 0 −1 −1 1 

 
0 0 −3 −3 0 1
1
R
3 1
→ R1 , 12 R2 → R2 & −1
3
R3 → R3
 
1
 1 0 0 0 0 3 
 
 0 1 0 −1 −1 1 .
 2 2 2 
 
−1
0 0 1 1 0 3
Thus we have  
1
 0 0 3 
−1
 
A = 1 1
 −2 −2
1
2
.

 
1 0 − 13
Solving Systems of Linear Equations
Any system of linear equations can be expressed in the matrix equation as AX = B ,

where A is the matrix of coefficients of the variables of the system, X is the matrix of the
variables, and B is the matrix of the constants. Matrix A is called coefficient matrix.
If A−1 exists, and using the fact that A−1 A = I, we can solve the system.
AX = B
A−1 (AX) = A−1 B
(A−1 A)X = A−1 B
IX = A−1 B
X = A−1 B.
Example 29 Use the inverse of the coefficient matrix to solve the linear system;
2x − 3y = 4
x + 5y = 2.
Solution We represent the system as a matrix equation AX = B , where
     
2 −3  x   4 
A= , X=  & B= .
 
1 5 y 2
To solve the system, first find A−1 and we can get this by using row operations on the
matrix
 
 2 −3 1 0 
 .
1 5 0 1
 
5 3
13 13
and we will get, A−1 =  (verify!).
 

1 2
− 13 13
Next we need to find the product A−1 B.

    
5 3
13 13  4   2 
A−1 B =  = .


1 2
− 13 13
2 0
Since X + A−1 B.    
x   2 
X= = .

y 0
The solution of the system is (2, 0).

Practice Problems
Find inverse of the following matrices, if possible.
1.  
 5 10 
 .
−3 −6
2.  
 −3 −8 
 .
1 3
3.  
 2 1 0 
 
.
 0 3 1 

 
4 −1 −3
4.  
 1 3 0 
 
 0 2 −1  .
 
 
1 0 2
Solve each system of equations by using the inverse of the coefficient matrix.
1.
2x + 5y = 15
x + 4y = 9.
2.
3x − 2y = 3
7x − 5y = 0.
3.
2x − 2y = 5
4y + 8z = 7
x + 2z = 1.
4.
x + y + z = −1
4x + 5y = −2
y − 3z = 3.
5.
x + 3y − 2z = 4
2x + 7y − 3z = 8
3x + 8y − 5z = −4.
Chapter 2
Linear Programming: The Graphical

Method
2.1 Graphing Linear Inequalities
This section is about graphing inequalities. Several examples are provided to explain the
concept.
A linear inequality in two variables has the form
ax + by ≤ c
ax + by < c
ax + by ≥ c
or
ax + by > c
for real numbers a, b and c, with a and b not both 0.
35
36 CHAPTER 2. LINEAR PROGRAMMING: THE GRAPHICAL METHOD
Y-axis
x+y>5
X-axis
x+y=5
Figure 2.1: x + y > 5
Main Steps: Graphing Linear Inequality
1. Draw the graph of the boundary line. Make the line solid if the inequality involve ≤
or ≥; make the line dashed if the inequality involves > or <.
2. Decide which half plane to shade. Use either of the following methods.
(a) Solve the inequality for y; shade the region above the line if the inequality is of
the form y > or y ≥; shade the region below the line if the inequality is of the form
y < or y ≤.
(b) Choose any point not on the line as a test point. Shade the half plane that includes
the test point if the test point satisfies the original inequality; otherwise, shade the
half plane on the other side of the boundary line.
Example 30 Graph the linear inequality x + y > 5.

2.1. GRAPHING LINEAR INEQUALITIES 37
Solution
Step 1: First we have to draw the dotted (because of < in inequality) line x + y = 5,
which indicates that this line is not the part of the graph of the inequality. In fact, dotted
line will be the boundary of the graph.
Step 2: To decide whether to shade the region above the line or the region below the
line, we would choose a test point not on the boundary line. Choosing (0, 0), we replace x
with 0 and y with 0:
x+y >5
0+0 >5
0>5
Which is false.
The correct half-plane is the one that does not contain (0, 0). Therefore, the region
above the boundary line is shaded as shown in the figure 2.1.
Example 31 Graph the linear inequality 4x + 3y ≤ 12.
Solution
Step 1: Graph of the inequality has the line 4x + 3y = 12 as a boundary. Because of

≤, we use solid line, which indicates this line is a part of the graph of the inequality.
Step 2: To decide weather to shade the region above the line or the region below the
line, we would choose a test point not on a boundary line. Choosing (0, 0), we replace x
Y-axis
4x+3y <= 12
X-axis
(0,0)
Figure 2.2: 4x + 3y ≤ 12
with 0 and y with 0:

4x + 3y ≤ 12
4(0) + 3(0) ≤ 12
0 ≤ 12
Which is true.
The correct half-plane is the one that contains (0, 0). Therefore, the region below the
boundary line is shaded as shown in the figure 2.2.
System of Inequalities
A collection of two or more inequalities is called system of inequalities. The solution

of the system of inequalities is made up of all those points that satisfy all the inequalities
of the system at the same time. Graph of the system of inequalities will be the overlapping
region of the graphs of all the inequalities involved. This overlapping region is called region
of feasible solutions or feasible region.
Example 32 Graph the feasible region for the system
y ≤ −2x + 8
−2 ≤ x ≤ 1.
Solution
The boundary line of the first inequality is y = −2x + 8. because of the ≤ symbol, we
use a solid line and shade below the line.
The second inequality is a compound inequality, indicating −2 ≤ x and x ≤ 1. Recall

that the graph x = −2 is the vertival line through (−2, 0), and the graph of x = 1 is the
vertical line through (1, 0). For −2 ≤ x, draw a solid vertical line and shade the region to
the right. For x ≤ 1, draw a solid vertical line and shade the region to the left.
Shaded region in figure 2.3 shows all the points that satisfy the system of inequalities.
Example 33 Graph the feasible region for the system
2x − 5y ≤ 10
x + 2y ≤ 8
x≥0
y ≥ 0.
Y-axis
x=1
x=-2
y=-2x+8
X-axis
feasible
region
Figure 2.3: y ≤ −2x + 8, −2 ≤ x ≤ 1

Y axis
x+2y=8
X axis
2x-5y=10
Figure 2.4: 2x − 5y ≤ 10, x + 2y ≤ 8, x ≥ 0, y ≥ 0.
Solution On the same axis, graph each inequality by graphing the boundary and choos-
ing the appropriate half plane. Then find the feasible region by locating the overlap of all
the half planes. This feasible region is shaded in figure 2.4.
Example 34 Happy Ice Cream Company makes cake cones and sugar cones, both of which
must processed in the mixing department and the baking department. Manufacturing one
batch of cake cones requires 1 hour in the mixing department and 2 hours in the baking
department, and producing one batch of sugar cones requires 2 hours in the mixing depart-
ment and 1 hour in baking department. Each department is operated for at most 12 hours
per day.
(a) Write a system of inequalities that expresses these restrictions.
(b) Graph the feasible region.
Y axis
2x+y=12
(4,6)
2x+y=12
(3,2)
X axis
Figure 2.5: x + 2y ≤ 12, 2x + y ≤ 12, x ≥ 0, y ≥ 0.
(c) Use the graph from part (b), can 3 batches of cake cones and 2 batches of sugar cones
be manufactured in one day? Can 4 batches of cake cones and 6 batches of sugar cones be
manufactured in one day?
Solution (a) Let x represent the number of batches of cake cones made and y represent
the number of batches of sugar cones made. Then make the table that summarizes the given
information.
Cake Cones Sugar Cones Total

Number of Units Made x y
Hours in Mixing Dept. 1 2 ≤ 12
Hours in Baking Dept. 2 1 ≤ 12
Since the department operates at most 12 hours per day, we put the total number of
hours ≤ 12. From the table, we can easily construct two inequalities for mixing department
and baking department;
x + 2y ≤ 12
2x + y ≤ 12.
Since it is not possible to produce negative number of cake cones or sugar cones, there-
fore we have
x≥0 and y ≥ 0.
Thus the system of inequalities is;
x + 2y ≤ 12
2x + y ≤ 12
x≥0
y ≥ 0.
(b) The feasible region for this system of inequalities is shown (shaded region) in figure
2.5.
(c) Three batches of cake cones and two batches of sugar cones correspond to the point
(3, 2). Since (3, 2) is in the feasible region in figure 2.5, it is possible to manufacture these
quantities in one day. However, since (4, 6) is not in the feasible region in figure 2.5, it is
not possible to manufacture 4 batches of cake cones and 6 batches of sugar cones in one
day.
Practice Problems
1. Graph the linear inequality y ≤ x + 1.
2. Graph the linear inequality x + 3y ≥ −2.
3. Graph the linear inequality 2x + 3y ≤ 6.

4. Graph the linear inequality 2x − y > 2.
5. Graph the feasible region for the system of inequalities
4x − y < 6
3x + y < 9.
3x − 2y ≥ 6
x + y ≤ −5
y ≤ 4.
−2 ≤ x ≤ 3
−1 ≤ y ≤ 5
2x + y < 6.
3x + 4y > 12
2x − 3y < 6
0≤y≤2
x ≥ 0.
9. Carmella and Walt produce handmade shawls and afghans. They spin the yarn, dye
it, and then weave it. A shawl requires 1 hour of spinning, 1 hour of dying, and 1
hour of weaving. An afghan needs 2 hours of spinning, 1 hour of dying, and 4 hours
of weaving. Together they spend at most 8 hours spinning, 6 hours dying and 14 hours
weaving.
(a) Write a system of inequalities to express the conditions of the problem.
(b) Graph the feasible region of the system.

2.2. SOLVING LINEAR PROGRAMMING PROBLEMS GRAPHICALLY 47
(c) Use the graph from part(b), can 3 shawls and 2 afghans be made? can 4 shawls
and 3 afghans be made?
2.2 Solving Linear Programming Problems Graphically
Many mathematical models designed to solve problems in economics, business, and engi-
neering involve finding an optimum (maximum or minimum) value of a function, subject
to certain restrictions. In linear programming problem, we must find maximum or mini-
mum value of a function, called objective function, and also satisfies set of restrictions, or
constraints, given by linear inequalities. When only two variables are involved, the solution
to a linear programming problem can be found by first graphing the set of constraints, then
finding the feasible region.
Example 35 Maximaization
Find the maximum value of the objective function z = 3x + 4y, subject to the following
constraints.
2x + y ≤ 4
−x + 2y ≤ 4
x≥0
y ≥ 0.
Y axis
-x+2y=4
X axis
2x+y=4
Figure 2.6:
Solution The feasible region is graphed in figure 2.6. We can find the coordinates of
the point of intersection ( 54 , 12
5
) of lines represented by 2x + y = 4 and −x + 2y = 4 by
solving the system
2x + y = 4
−x + 2y = 4.
Any point in the feasible region satisfies all the constraints; however, we want to find
those points that produce the maximum possible value of the objective function. To see how
to find maximum value, change the graph of the figure 2.6 by adding lines that represent
the objective function z = 3x + 4y for various sample values of z. By choosing the values
0, 5, 10, and 15 for z, the objective function becomes
0 = 3x + 4y
5 = 3x + 4y
10 = 3x + 4y
15 = 3x + 4y.
Y axis
-x+2y=4
z=15
X axis
z=0
Figure 2.7:
These four lines are graphed in figure 2.7. The figure shows that z cannot take on the
value 15 because the graph for z = 15 is entirely outside the feasible region. The maximum
value of z will be obtained from line parallel to others and between the lines representing
the objective function when z = 10 and z = 15.The value of z will be as large as possible
and all constraints will be satisfied if this line just touches the feasible region. This occurs
at the point ( 54 , 12
5
). The value of z at this point is
4 12
z = 3x + 4y = 3 + 4 = 12.
5 5
The maximum possible value of z is 12. Of all the points in the feasible region, ( 54 , 12
5
)
generates largest value of z.
Theorem 1 Corner Point Theorem

If an optimum value (either maximum or a minimum) of the objective function exists, it
will occur at one or more of the corner points of the feasible region.
Main Steps For Solving A Linear Programming Problem
1. Write the objective function and all necessary constraints.
2. Graph the feasible region.
3. Identify all corner points.
4. Find the value of the objective function at each corner point.
5. For a bounded region, the solution is given by the corner point producing the optimum
value of the objective function.
6. For an unbounded region, check that a solution actually exists. If it does, it will occur
at a corner point.
Example 36 Maximization and Minimization

Sketch the feasible region for the following set of constraints, and then find the maximum
and minimum values of the objective function z = x + 10y.
x + 4y ≥ 12
x − 2y ≤ 0
(6,6) 2y-x=6
Y axis
x=6
x-2y=0
(0,3)
(6,3)
(4,2) x+4y=12
X axis
Figure 2.8:
2y − x ≤ 6
x ≤ 6.
Solution The graph in figure 2.8 shows that the feasible region is bounded. Find the
corner points by solving the corresponding pairs of equations of lines. Use the corner points
to find the maximum and minimum values of the objective function z = x + 10y.
Corner Point Value of z = x + 10y

(0,3) 0+10(3)=30
(4,2) 4+10(2)=24 Minimum
(6,3) 6+10(3)=36
(6,6) 6+10(6)=66 Maximum
The minimum value of z = x + 10y is 24 at the corner point (4, 2). The maximum
value of z = x + 10y is 66 at (6, 6).
Maximum and minimum values of of objective function can be verified by adding graphs
of the line z = x + 10y for z = 66 and z = 24 to the graph in figure 2.8.
Practice problems
1. Use graphical methods to minimize z = 4x + 7y, subject to
x−y ≥1
3x + 2y ≥ 18
x≥0
y ≥ 0.
2. Use graphical methods to minimize z = x + 3y, subject to
x + y ≤ 10
5x + 2y ≥ 20
−x + 2y ≥ 0
x≥0
y ≥ 0.
3. Use graphical methods to maximize z = 10x + 8y, subject to
2x + 3y ≤ 100
5x + 4y ≤ 200
x ≥ 10
0 ≤ y ≤ 20.
4. Use graphical methods to maximize z = 4x + 6y, subject to
3 ≤ x + y ≤ 10
x−y ≥3
x≥0
y ≥ 0.
2.3 Applications of Linear Programming
Example 37 Mr. Trenga plans to start a new business called River Explorer, which will
rent canoes and kayaks to people to travel 10 miles down the Clarion River in Cook Forest
state Park. He has $45, 000 to purchase new boats. He can buy the canoes for $600 each
and the kayaks for $750 each. His facility can hold up to 65 boats. The canoes will rent
for $25 a day, and the kayaks will rent for $30 a day. How many canoes and how many
kayaks should he buy to earn the most revenue?
Solution Let x represent the number of canoes and let y represent the number of
kayaks. Summarize all the given information, we have,
2.3. APPLICATIONS OF LINEAR PROGRAMMING 55
Canoes kayaks Symbol Total

Number of boats x y ≤ 65
Cost of Each $600 $750 ≤ $45, 000
Revenue $25 $30
The constraints imposed by the number of boats and the cost will give the following
inequalities.
x + y ≤ 65
600x + 750y ≤ 4500.
Simplifying second equation, we have,
4x + 5y ≤ 300.
Since the number of boats cannot be negative, therefore, x ≥ 0 and y ≥ 0. Let z

represents the total revenue, then the objective function is
z = 25x + 30y.
Mathematical model for the given problem can be summarized as follow.
Maximize z = 25x + 30y

subject to x + y ≤ 65
4x + 5y ≤ 300
x≥0
y ≥ 0.
Y axis
x+y=65
(0,60)
Q(25,40)
4x+5y=300
X axis
(0,0)
(65,0)
Figure 2.9:
Graph of the feasible region for this problem is shown in figure 2.9. Three corner points
(0, 0), (65, 0) and (0, 60) can be easily determined. The fourth corner point labeled as Q in
the figure 2.9, can be determined by solving the system;
x + y = 65
4x + 5y = 300.
It can be easily verified that Q is the point (25, 40). Now find the values of objective
function at all the corner points, we have,
Corner Point Value of z = 25x + 30y

(0,0) 25(0)+30(0)=0
(65,0) 25(65)+30(0)=1625
(0,60) 25(0)+30(60)=1800
(25,40) 25(25)+30(40)=1825 Maximum
The objective function, which represents revenue, is maximized at (25, 40). He should
buy 25 Canoes and 40 kayaks.
Example 38 A 4-H member raises only goats and pigs. She wants to raise no more than
16 animals, including no more than 10 goats. She spends $25 to raise a goat and $75 to
raise a pig, and she has $900 available for this project. The 4-H member wishes to maximize
her profits. Each goat produces $12 in profit and each pig $40 in profit.
Solution First summarize all information in a table with the assumption that x rep-
resent the number of goat raised and y represent the number of pigs raised.
Goats Pigs Symbol Total

Number Raised x y ≤ 16
Goat Limit x ≤ 10
Cost to Raise $25 $75 ≤ $900
Profit (each) $12 $40
The constraints can be expressed in terms of inequalities as;
x + y ≤ 16
x ≤ 10
25x + 75y ≤ 900.
Simplifying third equation, we get
x + 3y ≤ 36.
Since the number of pigs and goats cannot be negative, therefore, x ≥ 0 and y ≥ 0.
Let z represents the profit, then we have objective function
z = 12x + 40y.
In summary, we have the following linear problem.
Maximize z = 12x + 40y
subject to x + y ≤ 16
x + 3y ≤ 36
Y axis
x=10
(0,12) (6,10)
x+3y=36
(10,6)
x+y=16
(0,0)
X axis
(10,0)
Figure 2.10:
0 ≤ x ≤ 10
y ≤ 0.
Graph of the feasible region is shown in figure 2.10. The corner points (0, 0), (0, 12)
and (10, 0) can easily be determined from the graph. Coordinates of the other two corner
points are (6, 10) and (10, 6). They can be verified by solving system of linear equations.
Now we determine the value of objective function on all the corner points.
Corner Point Value of z = 12x + 40y

(0,0) 12(0)+40(0)=0
(10,0) 12(10)+40(0)=120
(0,12) 12(0)+40(12)=480 Maximum
(6,10) 12(6)+40(10)=472
(10,6) 12(10)+40(6)=360
Thus 12 pigs and no goat will produce maximum profit of $480.
Practice Problems
1. The manufacturing process requires that oil refineries must manufacture at least 2 gal
of gasoline for every gallon of fuel oil. To meet the winter demand for fuel oil, at
least 3 million gal a day must be produced. The demand for gasoline is not more than
6.4 million gal per day. It takes 0.25 hours to ship each millon gal of gasoline and
1 hour to ship each million gal of fuel oil out of the warehouse. No more than 4.65
hours are available for shipping. If the refinery sells gasoline for $2.50 per gal and
fuel oil for $2 per gal, how much of each should be produced to maximize revenue?
Find the maximum revenue?
2. Certain animals in a rescue shelter must have at least 30 g of protein and at least 20
g of fat per feeding period. These nutrients come from food A, which costs 18 cents
per unit and supplies 2 g of protein and 4 g of fat; and food B, which costs 12 cents
per unit and has 6 g of protein and 2 g of fat. Food B is bought under the long term
contract requiring that at least 2 units of B be used per serving.
(a) How much of each food must be bought to produce the minimum cost per serving?
(b) The rescue shelter manager notices that although the long term contracts states
that at least 2 unit of food B be used per serving, the solution uses 4 units of food B,
which is 2 units more than the minimum amount required. Can a more economical
solution be found that only uses 2 units of food B?
Chapter 3
Linear Programming: The Simplex

Method
In the previous chapter, we discussed solving linear programming problems by the graphical
method. This method illustrates the basic idea of linear programming but it is practical only
for problems with two variables. For problems with more than two variables or problems
with two variables and many constraints, the simplex method is used.
The simplex method starts with the selection of one corner point (usually origin) from
the feasible region. Then in a systematic way, another corner point is found that attempts
to improve the value of the objective function. Finally, an optimum solution is reached, or
it can be seen that no solution exists.
63
64 CHAPTER 3. LINEAR PROGRAMMING: THE SIMPLEX METHOD
3.1 Slack Variables and the Pivot
The simplex method requires several steps. In this section, we will discuss some of the
important steps, selecting slack variables, setting up simplex tableau, and selecting the
pivot.
Since the simplex method is used for problems with several variables, therefore, for our
convenience, we will be using variables x1 , x2 , x3 and so on, instead of x, y, z, or w. Thus
the constraints in the simplex method will be represented in a linear form
a1 x1 + a2 x2 + a3 x3 · · · ≤ b,
where x1 , x2 , x3 , · · · are variables and a1 , a2 , a3 , · · · and b are constants.
Standard Maximum Form
A linear programming problem is in standard maximum form if the following conditions

are satisfied.
1. The objective function is to be maximized.
2. All variables are nonnegative (xi ≥ 0).
3. All remaining constraints are stated in the form
a1 x1 + a2 x2 + a3 x3 · · · ≤ b,
with b ≥ 0.
3.1. SLACK VARIABLES AND THE PIVOT 65
Example 39 Maximize z = 5x1 + 7x2
subject to: 2x1 + 3x2 ≤ 15
4x1 + 5x2 ≤ 35
x1 + 6x2 ≤ 20
with x1 ≥ 0, x2 ≥ 0.
The problem in the above example is in the standard maximum form.
In the simplex method, we start by changing constraints, which are linear inequalities
into linear equations. We do this by adding a nonnegative variable to each constraint and
call it a slack variable. For example, the constraint 2x1 + 5x2 ≤ 4 is converted into an
equation by adding slack variable s1 , to get
2x1 + 5x2 + s1 = 4 where s1 ≥ 0.
Note: A different slack variable must be used for each constraint.
Example 40 Restate the following linear programming problem by introducing slack vari-
ables.
Maximize z = 5x1 + 7x2
subject to: 2x1 + 3x2 ≤ 15
4x1 + 5x2 ≤ 35
x1 + 6x2 ≤ 20
with x1 ≥ 0, x2 ≥ 0.
Solution We rewrite three constraints by adding slack variables s1 , s2 and s3 , one for
each constraint. The above problem can be restated as follows.
subject to: 2x1 + 3x2 + s1 = 15
4x1 + 5x2 + s2 = 35
x1 + 6x2 + s3 = 20
with x1 ≥ 0, x2 ≥ 0.
By adding slack variables to the constraints, we convert a linear programming problem

into a system of linear equations. In each of these equations, all variables should be on
the left side of the equals sign and all constants on the right. In the above example, only
objective function is not satisfying this condition. We can rewrite it as
−5x1 − 7x2 + z = 0.
Thus we have the following system of equations with all nonnegative variables,
−5x1 − 7x2 + z = 0.
2x1 + 3x2 + s1 = 15
4x1 + 5x2 + s2 = 35
x1 + 6x2 + s3 = 20.
We can get the augmented matrix;
x1 x2 s1 s2 s3 z
 
 2 3 1 0 0 0 15 
 

 4 5 0 1 0 0 35 

 
 

 1 6 0 0 1 0 20 

 
−5 −7 0 0 0 1 0
This matrix is called initial simplex tableau. The numbers in the bottom row, which
are from the objective function, are called indicators (except for the 1 and 0 at the far
right).
Example 41 Set up the initial simplex tableau for the following problem.
A farmer has 100 acres of available land on which he wishes to plant a mixture of
potatoes, corn and cabbage. It costs him $400 to produce an acre of potatoes, $160 to
produce an acre of corn, and $280 to produce an acre of cabbage. He has maximum $20, 000
to spend. He makes a profit of $120 per acre of potatoes, $40 per acre of corn, and $60 per
acre of cabbage. How many acres of each crop should he plant to maximize his profit?
Solution Let x1 , x2 , and x3 represent the number of acres allotted to potatoes, corn,
and cabbage respectively. Then we can summarize the above problem in the following table.
Potatoes Corn Cabbage Symbol Total

Number of Acres x1 x2 x3 ≤ 100
Cost (per acre) $400 $160 $280 ≤ $20, 000
Profit (per acre) $120 $40 $60
Now we can easily express constraints in the form of inequalities as
x1 + x2 + x3 ≤ 100
and
400x1 + 160x2 + 280x3 ≤ 20, 000.
Second inequality can be simplified as
10x1 + 4x2 + 7x3 ≤ 500.
Let s1 and s2 be the slack variables for these two constraints, then we have the equations
x1 + x2 + x3 + s1 = 100
10x1 + 4x2 + 7x3 + s2 = 500.
Since the number of acres are positive, therefore, we have

x1 ≥ 0, x2 ≥ 0, and x3 ≥ 0.
The objective function is the profit. Let z represents the profit then
z = 120x1 + 40x2 + 60x3 .
This linear programming problem can now be expressed as
Maximize z = 120x1 + 40x2 + 60x3
subject to: x1 + x2 + x3 + s1 = 100
10x1 + 4x2 + 7x3 + s2 = 500
with x1 ≥ 0, x2 ≥ 0, x3 ≥ 0, s1 ≥ 0, s2 ≥ 0.
We can now rewrite the objective function as −120x1 − 40x2 − 60x3 + z = 0, and
complete the initial tableau as follows.
x1 x2 x3 s1 s2 z
 
 1 1 1 1 0 0 100 
 
10 4 7 .
0 1 0 500 


 
−120 −40 −60 0 0 1 0
In feasible solution, all variables must be nonnegative. To get a unique feasible solution
for m equations, only m variables can be nonzero. These m nonzero variables are called
basic variables and the corresponding solutions are called basic feasible solutions.
Each basic feasible solution is corresponds to a corner point.
Each step of simplex method produces a solution that corresponds to a corner point of
the region of feasible solutions. These solutions can be read directly from the matrix.
Example 42 Read a solution from the following simplex tableau.
x1 x2 x3 s1 s2 z
 
 2 0 8 5 2 0 17 
 
.
 9 5 3 12 0 0 45 

 
−2 0 −4 0 0 3 90
In this solution, the variables x2 and s2 are the basic variables. They can be identified
quickly because the columns of these variables have all zeros except for the one nonzero
entry. All variables that are not basic variables have the value 0. This means in the given
tableau, x2 and s2 are basic variables and x1 , x3 and s1 are not basic variables are equal
to 0. The nonzero entry for x2 is 5 in the second row. Therefore, from the second row of
tableau, we have the equation 5x2 = 45, so x2 = 9. Similarly, from the first row, we have
17
2s2 = 17, so s2 = 2
. From the bottom row, we have 3z = 90, so z = 30. The solution is
17
x1 = 0, x2 = 9, x3 = 0, s1 = 0, and s2 = 2
, with z = 30.
Pivot Solutions read directly from the initial tableau are seldom optimal. Therefore, it
is necessary to produce other solutions until an optimum solution is reached. To get these
other solutions, we perform restricted row operations to change the tableau by using one of
the nonzero entries of the tableau as pivot. The row operations are performed to change
all entries to zero in the column containing pivot.
Note: By restricted row operations, we mean when adding a multiple of one row to a
multiple of another, we will never take a negative multiple of the row being replaced. For
example (−2)R1 + 5R2 → R2 may be used but 2R1 + (−5)R2 → R2 will never be used.
Example 43 Pivot about the indicated 2 of the following initial simplex tableau.
x1 x2 x3 s1 s2 z
 

1 2 4 1 0 0 56 
 
.
 2 2 1 0 1 0 40 

 
−1 −3 −2 0 0 1 0
Solution We perform the following row operations.

−R2 + R1 → R1 and 3R2 + 2R3 → R3 ;
x1 x2 x3 s1 s2 z
 
 −1 0 3 1 −1 0 16 
 
.
 2 2 1 0 1 0 40 

 
4 0 −1 0 3 2 120
Here x2 and s1 are the basic variables. The solution is x1 = 0, x2 = 20, x3 = 0, s1 = 16,
and s2 = 0. Substituting these results in the objective function, we have,
4(0) + 0(20) − 1(0) + 0(16) + 3(0) + 2z = 120
or
z = 60.
Practice Problems
1. Write the solutions that can be read from the simplex tableau.
x1 x2 x3 s1 s2 z
 
 1 0 4 5 1 0 8 
 
.
 3 1 1 2 0 0 4 

 
−2 0 2 3 0 1 28
2. Write the solutions that can be read from the simplex tableau.
x1 x2 x3 s1 s2 z
 
 1 5 0 1 2 0 6 
 
0 2 1 2 3 .
0 15 


 
0 4 0 1 −2 1 64
3. Pivot about the indicated 3 of the following simplex tableau. Read the solution from
the result.
x1 x2 x3 s1 s2 z
 

2 3 4 1 0 0 18 
 
6 3 2 .
0 1 0 15 


 
−1 −6 −2 0 0 1 0
4. Pivot about the indicated 2 of the following simplex tableau. Read the solution from
the result.
x1 x2 x3 s1 s2 s3 z
 
 2 2 3 1 0 0 0 500 
 
 4 1 1 0 1 0 0 300 


 .
 

 7 2 4 0 0 1 0 700 

 
−3 −4 −2 0 0 0 1 0
3.2 Maximization Problems
Simplex Method ( Main Points)
1. Determine the Objective function.
2. Write all the necessary constraints.
3. Convert each constraints into an equation by adding a slack variable in each.
4. Set up the initial simplex tableau.
5. Locate the most negative indicator. If there are two such indicators, choose the one
farther to the left.
6. From the necessary quotients to find the pivot. Disregard any quotients with 0 or
negative number in the denominator. The smallest nonnegative quotient gives the
location of the pivot. If all quotients must be disregarded, no maximum solution exists.
3.2. MAXIMIZATION PROBLEMS 73
If two quotients are both equal and smallest, choose the pivot in the row nearest the
top of the matrix.
7. Use row operations to change all other numbers in the pivot column to zero by adding
a suitable multiple of the pivot row to a positive multiple of each row.
8. If the indicators are all positive or 0, this is the final tableau. If not, go back to step
5 and repeat the process until a tableau with no negative indicator is obtained.
9. Read the solution from the final tableau.
Example 44 Use Simplex Method

Mr. Trenga plans to start a new business called River Explorer, which will rent canoes and
kayaks to people to travel 10 miles down the Clarion River in Cook Forest state Park. He
has $45, 000 to purchase new boats. He can buy the canoes for $600 each and the kayaks
for $750 each. His facility can hold up to 65 boats. The canoes will rent for $25 a day, and
the kayaks will rent for $30 a day. How many canoes and how many kayaks should he buy
to earn the most revenue?
Solution Let x represent the number of canoes and let y represent the number of
kayaks.
Mathematical model for the given problem can be summarized as follow.
subject to x1 + x2 ≤ 65
4x1 + 5x2 ≤ 300
x1 ≥ 0, x2 ≥ 0.
Add a slack variable to each constraints:
x1 + x2 + s1 = 65
4x1 + 5x2 + s2 = 300
x1 ≥ 0, x2 ≥ 0, s1 ≥ 0, s2 ≥ 0.
The initial tableau is
x1 x2 s1 s2 z
 

1 1 1 0 0 65 
 
4 5 .
0 1 0 300 


 
−25 −30 0 0 1 0
This tableau leads to the solution x1 = 0, x2 = 0, s1 = 65, s2 = 300, with z = 0, which

corresponds to the origin in the figure 3.1. The most negative indicator is −30, which is in
column 2 of row 3. The quotients of the numbers on the righthand column and in column
2 are
65 300
= 65 & = 60.
1 5
The smaller quotient is 60, giving 5 as a pivot. To make all other elements in second
column equal to zero, we perform
−R2 + 5R1 → R1
and
6R2 + R3 → R3 .
x1 x2 s1 s2 z
 
 1 0 5 −1 0 25 
 
.
 4 5 0 1 0 300 

 
−1 0 0 6 1 1800
The solution from this tableau is x1 = 0, x2 = 60, with z = 1800. This corresponds to
the corner point (0, 60) in figure 3.1.
We repeat the process to get the new tableau. Most negative indicator is −1 and the
25 300
corresponding coefficients are 1
= 25 and 4
= 75, which give 1 as a pivot. To make all
other elements in the first column equal to zero, we perform
−4R1 + R2 → R2
and
R1 + R3 → R3 .
x1 x2 s1 s2 z
 
 1 0 5 −1 0 25 
 
.
 0 5 −20 5 0 200 

 
0 0 5 5 1 1825
Since there is no more negative indicator, therefore, this is the final tableu. We get the
solution x1 = 25, x2 = 40 with z = 1825, which is corresponds to the corner point (25, 40)
of the figure 3.1.
X2-axis
(0,60)
Q(25,40)
X1-axis
(0,0)
(65,0)
Figure 3.1:
Practice Problems
1. Use simplex method to solve linear programming problem
subject to 4x1 + x2 ≤ 25
2x1 + 3x2 ≤ 15
with x1 ≥ 0, x2 ≥ 0.
subject to 2x1 + 4x2 ≤ 15
3x1 + x2 ≤ 10
with x1 ≥ 0, x2 ≥ 0.
Maximize z = 8x1 + 10x2 + 7x3
subject to x1 + 3x2 + 2x3 ≤ 10
x1 + 5x2 + x3 ≤ 8
with x1 ≥ 0, x2 ≥ 0, x3 ≥ 0.
Maximize z = 8x1 + 3x2 + x3
subject to x1 + 6x2 + 8x3 ≤ 118
x1 + 5x2 + 10x3 ≤ 220
with x1 ≥ 0, x2 ≥ 0, x3 ≥ 0.
3.3 Minimization Problems; Duality
Standard Minimization Form

A linear programming problem is in standard minimum form if the following conditions
are satisfied.
1. The objective function is to be minimized.
2. All variables are nonnegative.
3. All remaining constraints are stated in the form
a1 y1 + a2 y2 + a3 y3 + · · · + an yn ≥ b
with b ≥ 0.
Duality
An interesting connection exists between standard maximization and and standard mini-
mization problems: any solution of standard maximization problem produces the solution
of an associated standard minimization problem and vice versa. Each of these associated
problems is called the dual of each other.
Example 45 Minimize w = 8y1 + 16y2
subject to: y1 + 5y2 ≥ 9
2y1 + 2y2 ≥ 10
with y1 ≥ 0, y2 ≥ 0.
3.3. MINIMIZATION PROBLEMS; DUALITY 79
The augmented matrix of the system of inequalities without adding slack variables can
be written as  

1 5 9 
 
 2 2 10 
 
 
8 16 0
By interchanging rows of the above matrix with columns, and get the matrix
 
 1 2 8 
 
 5 2 16 
 
 
9 10 0
The entries of this matrix can be used to write the following maximization problem in
standard form:
subject to: x1 + 2x2 ≤ 8
5x1 + 2x2 ≤ 16
with x1 ≥ 0, x2 ≥ 0.
This maximization problem is dual to the minimization problem stated in the start of
this example.
To find the dual of standard minimization problem;
1. Find the augmented matrix of constraints without adding slack variables.
2. Find a transpose of the matrix.
3. Write the maximization problem in standard form, from the transposed matrix.
The following table shows close connection between a problem and its dual.
Given Problem Dual Problem

m variables n variables
n constraints m constraints
Coefficients from objective function Constraints constant
Constraints constant Coefficients from objective function
Note: To solve minimization problem with duals, all the coefficients in the objective
function must be positive. Otherwise negative numbers will appear on the right side of the
constraints of the associated maximization problem, which we do not allow.
Theorem 2 Theorem of Duality

The objective function w of a minimization linear programming problem takes on a mini-
mum value if and only if the objective function z of the corresponding dual maximization
problem takes on maximum value. The maximum value of z equals minimum value of w.
Solving a Standard Minimization Problem with Duals
1. Find the dual standard maximization problem.
2. Solve the maximization problem using the simplex method.
3. The minimum value of the objective function w is the maximum value of the objective
function z.
4. The optimum solution to the minimization problem is given by the entries in the
bottom row of the columns corresponding to the slack variables, so long as the entry
in the z column is equal to 1.
Example 46 Minimize w = 3y1 + 2y2
subject to: y1 + 3y2 ≥ 6
2y1 + y2 ≥ 3
with y1 ≥ 0, y2 ≥ 0.
Solution The augmented matrix of the system of inequalities is

 
 1 3 6 
 

 2 1 3 

 
3 2 0
Transpose to get the matrix for the dual problem
 

1 2 3 
 
 3 1 2 
 
 
6 3 0
Now we can write the dual problem as:
subject to: x1 + 2x2 ≤ 3
3x1 + x2 ≤ 2
with x1 ≥ 0, x2 ≥ 0.
Solve this problem by using simplex method. We start by adding slack variables,
x1 + 2x2 + s1 = 3
3x1 + x2 + s2 = 2
−6x1 − 3x2 + z = 0
with x1 ≥ 0, x2 ≥ 0, s1 ≥ 0, s2 ≥ 0.
The initial simplex tableau for this system is
x1 x2 s1 s2 z
 
 1 2 1 0 0 3 
 
.
 3 1 0 1 0 2 

 
−6 −3 0 0 1 0
The simplex method gives us following as a final tableau.
x1 x2 s1 s2 z
 
3
 0 1 5
− 15 0 7
5 
 
 1 0 −1 2
0 1 .
 5 5 5 
 
3 9 27
0 0 5 5
1 5
We can now easily read the solution from the last row. The minimum value of w =
27 3
3y1 + 2y2, subject to the given constraints is 5
and occurs when y1 = 5
and y2 = 59 . Note
that the minimum value of w is the same as the maximum value of z.
Practice Problems
1. Minimize w = 3y1 + 6y2 + 4y3 + y4
subject to: y1 + y2 + y3 + y4 ≥ 150
2y1 + 2y2 + 3y3 + 4y4 ≥ 275
with y1 ≥ 0, y2 ≥ 0, y3 ≥ 0, y4 ≥ 0.
2. Minimize w = y1 + y2 + 4y3
subject to: y1 + 2y2 + 3y3 ≥ 115
2y1 + y2 + 8y3 ≥ 200
y1 + y3 ≥ 50
with y1 ≥ 0, y2 ≥ 0, y3 ≥ 0.
3. Find y1 ≥ 0 and y2 ≥ 0 such that
2y1 + 3y2 ≥ 6
2y1 + y2 ≥ 7
and w = 5y1 + 2y2 is minimized.
2y1 + 3y2 ≥ 15
5y1 + 6y2 ≥ 35

10y1 + 5y2 ≥ 100
20y1 + 10y2 ≥ 150

Chapter 4
Probability
Probability is used in many areas, including public financing, medicine, insurance, elections,
manufacturing, weather forecasting, opinion polls, and investment. In this chapter, we will
discuss some important probability concepts and some applications especially related to
management sciences and finance.
4.1 Introduction to Probability
We start this section with some definitions.
Definition 15 Experiment
An experiment is a controlled operation that yields a set of results.
Definition 16 Outcomes
The possible results of an experiment are called its outcomes.
85
86 CHAPTER 4. PROBABILITY
Definition 17 Event
An event is a subcollection of the outcomes of an experiment. It is usually denoted by E.
Definition 18 Sample Space

The set of all possible outcomes of an experiment is called a sample space for that experi-
ment. It is usually denoted by S.
Example 47 An experiment consists of studying families with exactly three children.
Let b represents boy and g represents girl. Then the sample space for this experiment
is
S = {bbb, bbg, bgb, gbb, bgg, gbg, ggb, ggg}.
If we are interested only in the outcomes with exactly two boys and one girl. Then we
call this subcollection as an event an we have
E = {bbg, bgb, gbb}.
Example 48 A fair die is rolled and we are interested in an event of getting even numbers,
then we have sample space
S = {1, 2, 3, 4, 5, 6}
and event E will be

E = {2, 4, 6}.
Example 49 Suppose that coin is flipped until both a head or a tail appear, or until the
coin has been flipped four times, whichever comes first. Write each of the following event
in a set notation.
(a) The coin is flipped exactly three times.
4.1. INTRODUCTION TO PROBABILITY 87
(b) The coin is flipped at least three times.

(c) The coin is flipped fewer than two times.
Solution (a) This means that first two flips of the coin did not include both a head and
a tail, so they must both be head or both be tail. Because the third flip is the last one, it
must show the side of the coin not yet seen. Thus the event is
{hht, tth}.
(b) In addition to the outcomes listed in part (a), there is also the possibility that the coin
is flipped four times. Which only happens when the first three flips are all heads or all tails.
Thus the event is
{hht, tth, hhhh, tttt, hhht, ttth}.
(c) The coin cannot be flipped fewer than two times under the given rules, so the event is
the empty set and is denoted by φ. It is also called impossible event.
Set Operations for Events Let E and F be events for a sample space S.
E ∩ F occurs when both E and F occur;
E ∪ F occurs when E or F or both occur;
E ′ occurs when E does not occur.
Definition 19 Mutually Exclusive Events

Events E and F are mutually exclusive events if E ∩ F = φ.
Example 50 Let S = {1, 2, 3, 4, 5, 6}, the sample space of tossing a single die. Let E =
{1, 3, 5}, and let F = {2, 4, 6}. Then E and F are mutually exclusive events because they
have no outcome in common and, therefore, E ∩ F = φ.
Definition 20 Equally Likely Outcomes

If each outcome of an experiment has the same chance of occurring as any other outcome,
they are said to be equally likely outcomes.
Example 51 If we are rolling a fair die, an odd number is as likely to be rolled as an even
number. Therefore, odd and even umbers are equally likely outcomes in a sample space
{1, 2, 3, 4, 5, 6}.
Basic Probability Principle

Let S be a sample space of equally likely outcomes, and let E be a subset of S. The the
probability P (E) that the event E occurs is
n(E)
P (E) = .
n(S)
Where n(E) is the number of outcomes in E and n(S) is the total number of outcomes in
S.
Example 52 Suppose a single fair die is rolled. Use the sample space S = {1, 2, 3, 4, 5, 6}
and give the probability;
(a) E: the die shows an even number
(b) F : the die shows a number less than 10.
(c) G: the die shows an 8.
Solution (a)
Here E = {2, 4, 6}, a set with three elements. Since S contains 6 elements, therefore,
3 1
P (E) = = .
6 2
(b) Event F is a certain event, with
F = {1, 2, 3, 4, 5, 6}.
4.1. INTRODUCTION TO PROBABILITY 89
with n(F ) = 6, therefore,

6
P (F ) = = 1.
6
(c) Event G is impossible because die cannot show number 8, so n(G) = 0 and
0
P (G) = = 0.
6
Example 53 If a single playing card is drawn at random from a standard 52-deck card,
find the probability;
(a) Drawing an ace,
(b) Drawing a face card,
(c) Drawing a spade,
(d) Drawing a spade or heart,
(e) Drawing a spade and heart.
Solution (a) There are four aces in the deck, therefore,

4 1
P (ace) = = .
52 13
(b) There are 12 face cards in a deck (three in each of the four suits),
12 3
P (f ace card) = = .
52 13
(c) Deck has 13 spades, so
13 1
P (spade) = = .
52 4
(d) There are 13 spades and 13 hearts, so
26 1
P (spade or heart) = = .
52 2
(e) There is no card which is spade and heart at the same time. So this is an impossible
event, therefore,
0
P (spade and heart) = = 0.
52
Practice Problems
1. Write a sample space for the following experiments;

(a) A month of the year is chosen for a wedding.
(b) A student is asked how many points she earned on a recent 70-point test.
(c) A coin is tossed and a die is rolled.
(d) A day in November is selected for indoor games.
2. A card is drawn from a well-shuffled deck of 52 cards. Find the probability of the
following.
(a) A 9
(b) A black card
(c) A black 8
(d) A heart
(e) The 9 of hearts
(f ) A face card
(g) A 2 or queen
(h) A black 7 or red 4
(i) A red card or a 10
(j) A spade or a king.
4.2. BASIC CONCEPTS OF PROBABILITY 91
4.2 Basic Concepts of Probability
Two determine the probability of the union of two events A and B in a sample space S, we
use the following Union Rule for probability.
Union Rule For Probability

For any events A and B from the sample space S,
P (A ∪ B) = P (A) + P (B) − P (A ∩ B).
Example 54 If a single card is drawn from an ordinary deck of cards, find the probability
that it will be a red card or a face card.
Solution
Let A represents the event ”red card” and B represents the event ”face card”. There are
26 12
26 red cards, therefore, P (A) = 52
. There are 12 face cards in the deck, so P (B) = 52
.
6
Since there are 6 cards which are face cards as well as red cards, therefore, P (A ∩ B) = 52
.
By the union rule, probability of the card being red or a face card is
26 12 6 32 8
P (A ∪ B) = + − = .
52 52 52 52 13
Example 55 Suppose two fair dice are rolled.

(a) Find the probability that first die shows a 2, or the sum of the results is 6 or 7.
(b) Find the probability that the sum of the results is 11, or a second die shows a 5.
Solution
(a) Let A represents the event ”first die shows a 2” and B represents the event ”the sum
of the results is 6 or 7”. Since there are 6 possibilities out of 36 all possible outcomes that
6
the first die shows a 2. Therefore, P (A) = 36
. For the event B, there are 11 outcomes
11
showing sum as 6 or 7, so P (B) = 36
. Since only two outcomes (2, 4) and (2, 5) give sum
2
6 or 7 and there first die is showing a 2, therefore, P (A ∩ B) = 36
. By the union rule,
6 11 2 15 5
P (A ∪ B) = + − = = .
36 36 36 36 12
(b)
Let A represents the event ”sum is 11” and B represent the event ”second die shows a 5”.
2 6 1
Then it can be easily determined that P (A) = 36
, P (B) = 36
, and P (A ∩ B) = 36
. By the
union rule,
2 6 1 7
P (A ∪ B) = + − = .
36 36 36 36
Note:
If events A and B are mutually exclusive, then A∩B = φ by definition; hence, P (A∩B) = 0.
In this case union rule is reduced to
P (A ∪ B) = P (A) + P (B).
Definition 21 Let A be any event in a sample space S then the event A′ will consist of
all the outcomes in the sample space S except the outcomes which are in A. A′ is called
complement event of the event A.
Example 56 Let S = {1, 2, 3, 4, 5, 6} and A = {2, 4, 6}, then A′ = {1, 3, 5}.
By definition A ∪ A′ = S and A ∩ A′ = φ.
Therefore,
P (S) = P (A ∪ A′ ) = P (A) + P (A′ ).
Since P (S) = 1, therefore,

1 = P (A) + P (A′ ).
Now from here we can define very useful rule for complements.
Complement Rule
P (A) = 1 − P (A′)
and
P (A′ ) = 1 − P (A).
Example 57 If a fair die is rolled, what is the probability that any number but 3 will come
up.
Solution
Let A be the event that 3 comes up, then A′ is the event that any number but 3 comes up.
Since P (A) = 61 , we have
1 5
P (A′) = 1 − P (A) = 1 − = .
6 6
ODDS
Most often probability statements are expressed in terms of odds, a comparison of P (A)
and P (A′ ). In the following, we will discuss odds in favor and odds against the event.
Odds in Favor
The odds in favor of an event A are defined as the ratio of P (A) to P (A′), or
P (A)
Odds in F avor = ,
P (A′)
where P (A′ ) 6= 0.
Odds against
The odds against an event A are defined as the ratio of P (A′ ) to P (A), or
P (A′)
Odds against = ,
P (A)
where P (A) 6= 0.
Example 58 Suppose the weather forecaster says that the probability of rain tomorrow is
1
3
. Find the odds in favor of rain tomorrow.
Solution
Let A be the event ”rain tomorrow”. Then A′ will represent the event ”no rain tomorrow”.
Since P (A) = 13 , therefore by complement rule, P (A′) = 1 − 1
3
= 23 . Therefore,
1
3 1
Odds in F avor of rain = 2 = .
3
2
We will write it as odds in favor of rain are 1 to 2, or 1 : 2.
2
Similarly, one can find, odds against the rain tomorrow will be 1
or 2 : 1.
Finding Probability from Odds

If odds favoring event A are m to n, then
m
P (A) =
m+n
and
n
P (A′ ) = .
m+n
Example 59 The odds that a particular bid will be the low bid are 4 to 5. Find the
probability that the bid will be the low bid.
Solution
Odds of 4 to 5 shows 4 favorable chances out of total 4 + 5 = 9 chances. Therefore,
4
P (bid will be a low bid) = .
9
Properties of Probability
Let S be the sample space consisting of n distinct outcomes, s1 , s2 , · · · , sn . Let pi represents
the probability for the outcome si for each i = 1, 2, · · · , n. then
1. 0 ≤ p1 ≤ 1, 0 ≤ p2 ≤ 1, · · · , 0 ≤ pn ≤ 1.
2. Sum of the probabilities of all possible outcomes is equal to 1. That is
p1 + p2 + · · · + pn = 1.
Practice Problems
4.3 Conditional Probability

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Math180

Mathematics for Management

Dr. Muhammad Aslam

1 Systems of Linear Equations and Matrices 1

1.1 Solution of Linear Systems by the Echelon Method . . . . . . . . . . . . . 1

1.2 Solution of Linear systems by the Gauss-Jordan Method . . . . . . . . . . 10

1.3 Addition and Subtraction of Matrices . . . . . . . . . . . . . . . . . . . . . 18

1.4 Multiplication of Matrices . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

1.5 Matrix Inverses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

2 Linear Programming: The Graphical Method 35

2.1 Graphing Linear Inequalities . . . . . . . . . . . . . . . . . . . . . . . . . . 35

2.2 Solving Linear Programming Problems Graphically . . . . . . . . . . . . . 47

2.3 Applications of Linear Programming . . . . . . . . . . . . . . . . . . . . . 54

3 Linear Programming: The Simplex Method 63

3.1 Slack Variables and the Pivot . . . . . . . . . . . . . . . . . . . . . . . . . 64

3.2 Maximization Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

3.3 Minimization Problems; Duality . . . . . . . . . . . . . . . . . . . . . . . . 78

4.1 Introduction to Probability . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

4.2 Basic Concepts of Probability . . . . . . . . . . . . . . . . . . . . . . . . . 91

4.3 Conditional Probability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

2.1 x+y > 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

2.5 x + 2y ≤ 12, 2x + y ≤ 12, x ≥ 0, y ≥ 0. . . . . . . . . . . . . . . . . . 42

Systems of Linear Equations and

1.1 Solution of Linear Systems by the Echelon Method

How to use transforms to simplify the system of linear equations?

What is Echelon Method?

How to find solution(s) of the system of linear equations by using Echelon

What is the difference between consistent and inconsistent system of linear

Possible Types of Solutions

1. Unique solution: Graphs of linear equations will intersect at a single point.

2. No solution: Graphs of linear equations will not intersect.

Example 1 System of equations

and system of equations

Transformations of a System The following transformations can be applied to a

1. exchange any two equations.

2. multiply both sides of an equation by any nonzero real number.

Demonstration of Transformations: For example, we are given a system of equa-

Transformation 1: Interchanging any two equations.

Transformation 2: Multiplying an equation by a nonzero real number.

Transformation 3: Replacing any equation by a nonzero multiple of that equation

Example 2 Solve the following system by Echelon method;

so we are replacing it with the second equation.

3R1 + (−2)R2 → R2 17y = 34

Back substitution gives

The solution of the system is (3, 2).

Definition 2 A system of equations is called inconsistent if it has no solution.

Example 3 Solve the system

Example 4 Solve the system

Solution Using transform 3, we have

Summary of Echelon Method for Solving System of Linear equations

Suppose we have a system of linear equations in n variables, x1 , x2 , · · · , xn . Then

2. Eliminate x1 term in all equations after the first equation.

3. Eliminate x2 term in all equations after the second equation.

4. Eliminate x3 term in all equations after the third equation.

6. Multiply each equation by a reciprocal of the coefficient of its first term.

7. Use Back Substitution to find the value of each variable.

Example 5 Solve the following system by Echelon Method.

Next we need to eliminate from third equation.

R2 + (−5)R3 → R3 10z = −10.

Now we have to make coefficient of first term in each equation equal to 1.

Substitute z = 1 in second equation and get y = −1 and substituting these values of y

Example 6 If 20 lb of rice and 10 lb of potatoes cost $16.20, and 30 lb of rice and 12 lb

20x + 10y = 16.20