Mathematics in the Modern World
Lesson 5.1: Statistics - Quick but rough, it's the difference between the
Numerical information, termed data, is the focus of
statistics. Statistics encompasses collecting,
organizing, analyzing, and interpreting data. It
divides into Descriptive Statistics, dealing with
data presentation, and Inferential Statistics,
drawing conclusions from data.
Populations and Samples
Population is the entire group for conclusions.
Sample is a subset collected from the population.
Random sampling ensures every population
member has an equal chance.
Frequency Distributions
- After collecting data, statisticians use frequency
distributions.
- These distributions list data values and their
frequencies.
Measures of Central Tendency
Measures like mean, median, mode, and
midrange represent average or typical values.
Mean - is calculated by summing all data items and
dividing by the number of items.
Median - Arranging data from smallest to largest,
the median is the middle item (or mean of middle
items).
Mode - Mode is the most frequently occurring data
value. A dataset may have no mode or multiple
modes (bimodal).
Midrange - Representative value between the
lowest and highest values, divided by 2. It's an
estimate for the mean, quicker to calculate for large
datasets.
Measures of Dispersion
Measures of dispersion reveal the spread of data in a
dataset. This section explores two common
measures: the range and standard deviation.
Range
highest and lowest values.
Example: Houston's range in temperature (103° -
33°) is 70°.
Standard Deviation
- A more detailed measure, dependent on all data
items.
- Calculated by finding each data item's deviation
from the mean.
Computing the Standard Deviation
1. Find the mean of the data items.
2. Find the deviation of each data item from the
mean (data item - mean).
3. Square each deviation.
4. Sum the squared deviations.
5. Divide the sum by (n – 1) (number of data items).
6. Take the square root of the quotient to get the
standard deviation.
Lesson 6: Simple Interest
- When you deposit or borrow money, interest is the
cost or compensation for the use of funds.
Principal - The amount deposited or borrowed.
Interest Rate - Given as a percentage, representing
the cost or earnings over a period.
Simple Interest Formula: I = Prt
- Where I is interest, Pis principal, r the interest rate,
and t is the time period.
Calculation Example:
1. Calculate Simple Interest
- Example: Deposit $1000 for 1 year at 5%
interest.
2. Calculate Simple Interest on a Loan
- Example: $2000 loan for 3 months at 6.5%.
 Mathematics in the Modern World
Calculate Interest Rate Example
- Example: $4000 loan with a $4085 maturity value.

3. Calculate Simple Interest Rate

- Example: $150 interest on a $3000 loan for 6
months.
Lesson 7: Compound Interest

Compound interest is calculated on both the

principal and previously earned interest. It can be
compounded annually, semiannually, quarterly,
monthly, or daily.
There are two usual methods for converting units of
time from days to years: the exact method and the Compounding period - is called the compounding
ordinary method. frequency.
 Annually (1)
 Semiannually (2)
 Quarterly (4)
 Monthly (12)
 Daily (360)
Based on a year having an average of 30 days in a
month and 12 months in a year (30×12 = 360), for Compound Amount Formula
the ordinary method, the number of days is divided A = P (1 + r/n) ^nt
by 360. - A is the compound amount, P is the principal, r is
the annual interest rate, n is compounding periods,
and t is time in years.
Future Value or Maturity Value Formula (for
loans and investments): A = P + I 1. Mr. Banayo borrowed $12,400 for 4 years
- Where (A) is the total amount after interest. at 12.7% and the interest is compounded
semiannually. What is the total you will pay
back?
Maturity Value Calculation:
- Example: $8000 loan for 8 months at 9.75%.

2. Ms. Kyla’s 2 years investment of $5,500

Maturity Value Calculation Example earns 2.9% and is compounded annually.
- Example: $3800 loan for 3 months at 6%. What will your total return be?

Interest Amount Formula: I = A - P

Present Value
 Mathematics in the Modern World
The present value of an investment is the original
principal invested or loaned, or the value of the
investment or loan before it earns any interest.
The present value is used to determine how much
money should be invested or was loaned today in
order for an investment to have a specific value at
a future date or to determine the specific value of a
loan at a future date.
Adjacent Vertices - vertices joined by an edge.
Path - sequence of adjacent vertices and the
connecting edges.
Circuit - a path that starts and ends at the same
vertex.
Graph Connectivity
Connected Graph - any two vertices have at least
one path between them.
Disconnected Graph - consists of connected
components.
Bridge - an edge whose removal results in a
disconnected graph.

Example: How much money should be invested in

an account that earns 8% interest, compounded
quarterly, in order to have $30,000 in 5 years?

Lesson 8: Graphs

Graph - comprises vertices (points) and edges (line

segments or curves) connecting them.
- Edges starting and ending at the same vertex are
loops.

A graph consists of a finite set of points, called

vertices (singular is vertex), and line segments or
curves, called edges, that start and end at vertices.
An edge that starts and ends at the same vertex is
called a loop.

Equivalent Graphs
- Two graphs are equivalent if they have the same
vertex connections, regardless of vertex placement.

Modeling with Graphs

- Graphs can represent relationships. Example:
Königsberg's bridges modeled using vertices and
edges.

Graph Theory Terms

Degree of a Vertex - Number of edges attached to a

vertex (loops contribute 2 edges if present).
Even Vertex - Vertex with an even number of
attached edges. Example: E, D, C.
Odd Vertex - Vertex with an odd number of
attached edges. Example: A, B.