BASIC NUMERICAL METHODS (B.COM/ BBA) Factorization 9.

Lower triangular matrix

The process of writing an expression as a product of two or more A matrix is known as lower triangular matrix if all the elements above
Module I- Equations common factor is called method of factorization. the leading diagonal are zero.
Equations Break Even point 10. Sub matrix
An equation is a statement of equality between two expressions. It A breakeven point is a point at which there is no profit, there is no The matrix obtained by deleting one or more rows or columns or
contains one or more derivatives. loss. Cost are equal to revenue. both of a matrix is called sub matrix.
Types of Equations Module II- Matrices 11. Equal matrix
1. Linear equations Matrix Two matrices are called equal matrices if they have the same order
2. Exponential equations Matrix is a rectangular arrangement of numbers or symbols enclosed or dimension and the corresponding elements are equal.
3. Quadratic equations by a pair of brackets. The term matrix was first introduced in 1850 by 12. Idempotent matrix
4. Cubic equations J J Sylvester. A square matrix is said to be idempotent if A=A2
Properties of Equations Types of Matrices Singular matrix
1. Any quantity can be added to both sides. 1. Row matrix A singular matrix is a square one that whose determinant is zero.
2. Any quantity can be subtracted from both sides. A matrix which has only one row is called a row matrix or row vector. Non-singular matrix
3. Any quantity can be multiplied to both sides. 2. Column matrix A non-singular matrix is a square one whose determinant is not zero.
4. Any quantity can be divided to both sides. A matrix which has only one column is called a column matrix or Transpose of a matrix
5. Any function can be applied to both sides. column vector. The matrix obtained by interchanging rows or columns of a matrix is
Linear equation 3. Null matrix called transpose.
It is an equation for a straight line. The power of the unknown in the If every element of an m x n matrix is zero, the matrix is called zero Adjoint Matrix
linear equation will be 1. matrix or null matrix. Adjoint of a given matrix is the transpose of the matrix formed by co-
System of linear equation 4. Square matrix factors of the elements. It is denoted by Adj A.
It is a collection of one or more involving the same of variable. It is If the number of rows and columns in a matrix are same, such matrix Rank of a matrix
usually a set of two or more linear equation with two or more is called square matrix or rectangular matrix. The maximum number of its linearly independent columns or rows of
variables. 5. Unit matrix a matrix is called rank of a matrix.
Simple linear equation It is a square matrix with 1 on the principal diagonal and zeros Cramer’s rule
Simple linear equations are first degree equation in which one elsewhere. It is also called identity matrix. Cramer’s rule is a method for solving linear simultaneous equations.
variable is unknown. 6. Diagonal matrix It makes use of determinants and so knowledge of these is necessary
Simultaneous Equations A square matrix in which every non- diagonal elements is zero is before proceeding.
Simultaneous equations are a set of equations containing multiple called diagonal matrix
variables. 7. Scalar matrix Module III- Sequence, Series and Progression
Quadratic equations A diagonal matrix whose leading diagonal elements are all equal is Sequence
Quadratic equation is a polynomial equation of the second degree. called diagonal scalar matrix Sequence is an ordered list of an object or events.
The general form is ax2+bx+c=0. 8. Upper triangular matrix Finite sequence
A matrix is known as upper triangular matrix if all the elements A sequence containing finite number of terms is called finite
below the leading diagonal are zero. sequence.

Infinite sequence Module IV- Interest and Time value Equated Monthly Instalments (EMI)
A sequence which is not containing finite sequence is called infinite Simple interest It is a fixed payment amount made by a borrower to a lender at a
sequence. When the interest is calculated for every period only on the principle specified date.
Series then the total interest gained on the all the period is called simple Nominal interest rate
The cumulative sum of given sequence of terms is called series. interest. It refers to the interest rate before taking inflation into account. It is
Finite series Compound interest the interest rate quoted on bonds and loans.
Finite series means summation of a sequence that has an end. Compound interest the interest for one period is compounded to the Real rate of interest
Infinite series principles to get the principal for the next period. It refers to interest rate after taking inflation into account. This
Infinite series means summation of a sequence that has no end. Difference between simple interest and compound interest means it adjusts for inflation and gives the real rate of bonds or loan.
Difference between Sequence and Series Simple Interest Compound interest Conversion period
Sequence Series Interest for all years is same Interest for all years is different It refers to the period of time between interest payment. It must be
Set of elements that follows a Sum of elements of the SI is smaller than CI CI is larger than SI determined for each year or fraction of a year.
pattern. sequence. Interest is on principal amount Interest is on previous interest Time value of money
Order of elements is important. Order of elements not important only and principal amount It is a basic financial concept that holds that money in the present is
Finite sequence: 1,2,3,4,5 Finite series: 1+2+3+4+5 Principal amount is constant Principal amount is varying worth more than the same sum of money to be received in the
Infinite sequence: 1, 2, 3, 4. Infinite series: 1+2+3+4+……. The growth remains quite The growth increases quite future. It is a useful tool helps to understand the worth of money in
Progression uniform in this method rapidly in this method. relation to time.
A progression is defined as a series of numbers arranged in a SI = (P x T x R) / 100 CI = P(1+R/100)t - P
predictable manner. It is a type of number set which follows certain Annuity Module V- Descriptive Statistics
definite rules. Annuity is a series of equal payments or receipts that occur at spaced Requisites of a good average (Desirable qualities of a good average)
Arithmetic progression (AP) intervals. 1. It should be easy to calculate.
An arithmetic progression is a sequence of numbers such that the Present value (PV) 2. It should be simple to understand.
difference between the consecutive terms is constant. Present value is the current value of future sum of money or stream 3. It should have sample stability.
Geometric progression (GP) of cash flows given a specified rate of return. 4. It should be based on all the observations.
It is also known as geometric sequence. It is a sequence of numbers Effective yield (Effective rate) 5. It should not be affected by average values.
where each term after the first is found by multiplying the previous It is the actual rate that earn on an investment or pay on a loan after 6. It should be rigidly design.
one by a fixed non-zero number called common ratio. the effects of compounding frequency are considered. 7. It should be capable for further algebraic treatment.
Harmonic progression (HP) Perpetuity Measures of central tendency
It is defined as a sequence of real numbers which is determined by Perpetuity is an annuity that occurs indefinitely. Average tends to indicate the centre of the distribution is called
taking the reciprocals of the arithmetical progression which does not Deferred perpetuity measures of central tendency.
contain zero. It refers to infinite payment that begin at a later time, because of Types of averages/Measures of central tendency
time value principles of money. 1. Mean
Compounded Annual Growth Rate (CAGR) 2. Geometric mean
CAGR is the rate of return that would be required for an investment 3. Harmonic mean
to grow from its beginning balance to ending balances. 4. Median
5. Mode Harmonic mean (HM)  It is not much affected by extreme values.
Arithmetic mean (AM) Harmonic mean is the reciprocal of the arithmetic mean of the  It can be determined graphically.
The most commonly used measures of central tendency. Mean is the reciprocal of the given set of observations.  It can be calculated for open end data.
sum of the values divided by the total number of items in the set. Merits of HM  It has the greatest frequency.
Weighted arithmetic mean  It is rigidly defined. Demerits of mode
Arithmetic mean computed by considering relative importance of  It is simple to understand.  It is not rigidly defined.
each items is called weighted arithmetic mean.  It is easy to calculate.  It is not based on all observation.
Merits of AM  It is based on all observations.  It is not capable of further mathematical treatment.
 It is easy to calculate.  It has sampling stability.  It does not have sampling stability.
 It is simple to follow.  It is capable for further mathematical treatment. Measures of dispersion
 It is finite. Demerits of HM The degree to which numerical data tend to spread about an average
 It is based on the all observations.  It is affected by extreme values. value is called dispersion or variation.
 It is rigidly defined.  It cannot be determined graphically. Types of measures of dispersion
 It is capable for an algebraic treatment.  It cannot be calculated for open ended data. 1. Range
Demerits of AM  If one of the value is zero, HM cannot be determined. 2. Quartile deviation
 It is highly affected by extreme values. Median 3. Mean deviation
 It cannot be compute accurately. Median is the middle most observation in a data which is arranged in 4. Standard deviation
 It cannot be calculated for qualitative data. ascending or descending order. Range
 It is not a suitable average for highly skewed distributions. Merits of median Range is the difference between highest and lowest values in a given
 It cannot average the ratios.  It is rigidly defined. data.
 It cannot average the percentage.  It is simple to understand. Merits of range
Geometric mean (GM)  It is easy to calculate.  It is simple to understand.
Geometric mean is the nth positive root of the product of 'n' positive  It can be calculated for open end data.  It is easy to calculate.
given values.  It is not much affected by extreme values.  It is popular measure in weather forecast.
Merits of GM  It can be determined graphically.  It is popular measure in the field of medicine.
 It is rigidly defined. Demerits of median Demerits of range
 It is based on all observations.  It is not based on all observation.  It is not based on all observation.
 It is capable for further mathematical treatment.  It is not capable for further mathematical treatment.  It does not have sampling stability.
 It has sampling stability.  It does not have sampling stability  It cannot be calculated for open end data.
Demerits of GM Mode Coefficient of range
 It is not simple to understand. Mode is the most frequently occurring value in the data set. It is the relative measure of the dispersion of the range. It is defined
 It is difficult to calculate. Merits of mode as the relative measure of the distribution based on the range of any
 It cannot be determined graphically.  It is simple to understand. given data set, which is the difference between the maximum and
 It cannot be calculated for open end data.  It is easy to calculate. minimum value in the given set.

Quartile deviation (QD)  It cannot be calculated for open end data. Skewness
Quartiles are three partition values which divides given data into four Steps in calculating standard deviation Lack of symmetry or measure of asymmetry is called skewness.
equal parts. They are denoted Q1, Q2, and Q3.  Steps for grouped data Skewness can be positive or negative.
Merits of QD  Take the deviation of the items from assumed mean and denoted Positive skewness
 It is rigidly defined. it by 'd' If the frequency curve has longer tail to right the distribution is
 It is simple to understand.  Multiply the deviations by frequencies. known as positive skewness. Mean> Median> Mode.
 It is easy to calculate.  Obtain square of the deviation, d2 Negative Skewness
 It is not unduly affected by extreme values.  Multiply the squared deviation by frequencies and obtain total If the frequency curve has longer tail to left the distribution is known
Demerits of QD  Substitute the value in the formula as negative skewness. Mean< Median< Mode.
 It is not based on all observations.  Step deviation method Kurtosis
 It does not have sampling ability.  Find the mid points of various classes It is statistical measure that calculates the degree of peakedness of a
 It is not capable for further mathematical treatment.  Take deviations of the mid points from an assumed mean and variables probability distribution.
Mean deviation (MD) denote these by 'd' Mesokurtic
Mean deviation is defined as the mean of the absolute deviations of  Take the common factor and divide the 'd' with it and find 'd' If the curve of a frequency distribution is neither too peaked nor too
observations from some suitable averages like mean median mode. flat then it is called normal curve or mesokurtic.
 Multiply the frequency of the each class.
Merits of MD Platykurtic
 Square the deviations and multiply them with the respective
It is rigidly defined. If the curve of the frequency distribution is flatter than the
frequencies of each class.
It is based on all observation. mesokurtic curve then it is called platykurtic.
Continuous series
It is less affected by extreme values. Leptokurtic
Continuous series is a statistical series in which all the class intervals
Demerits of MD If the curve of the frequency distribution is more peaked than the
along with their corresponding frequency are listed out in the form
 It suffers inaccuracy because sigma of deviation are ignored. mesokurtic curve then it is called leptokurtic.
of table.
 It cannot be capable for further mathematical treatment. Empirical relation between mean, median and mode
Desecrate series
In the case of a moderately skewed distribution, i.e., in general, the
 It cannot be calculated for open end data. Desecrate series is a statistical series in which all the observations
difference between mean and mode is equal to three times the
Standard deviation (SD) are listed out along with their corresponding frequency in the form
difference between mean and median. In the case of a frequency
The standard deviation is defined as the positive square root of the of a table.
distribution which has a symmetrical frequency curve, the empirical
mean of the square deviations taken from arithmetic mean of the Assumed mean method
relation states that mean = median = mode
data. It is a method for calculating arithmetic mean and standard deviation
Empirical relation between mean, median and mode is:
Merits of SD of a data set. This method is used for calculating mean of a grouped
Mode = 3 Median – 2 Mean
 It is rigidly defined. data. This method helps in reducing the calculation and results in
 It is based on all observation. small method for calculating mean. PREPARED BY
 It is capable for further mathematical treatment. Coefficient of Variation (CV) JUBAIR MAJEED

 It has sampling stability. It is a measure of relative variability. It is the ratio of the standard 8089778065 (WhatsApp only)
Demerits of SD deviation to the mean. It is also known as relative standard
(This is only a short note of the theory part of BASIC NUMERICAL METHODS. For exam preparation,
 It is difficult to understand. deviation. It is a standardised measure of dispersion of a probability please also refer other available materials including problems according to your syllabus)
 It is difficult to calculate. distribution.