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Level 4 Diploma Unit Title: Introduction to Quantitative Methods Learning Outcome: 1. Understand the rules of numeracy.

Please note that the content of this Lecture Guide is listed in its recommended teaching order, rather than in numerical order.

Assessment Criteria/Indicative Content: 1.1 Apply the four rules of numeracy to whole numbers, fractions and decimals. Be prepared to apply the rules of numeracy without use of a calculator showing all the working steps in your calculations. Distinguish between whole numbers, fractions and decimals 1.2 Express numbers in standard form. 1.3 Add, subtract, multiply and divide negative numbers. Convert fractions to decimals and decimals to fractions. Express fractions in their simplest form (e.g.
175 100

= 14 )

Express large and small numbers in standard form and be able to reverse the process. Explain the terms index, power, root, reciprocal and factorial. Examiners tips: Understanding the rules of numeracy is fundamental for solving any business problem quantitatively and it is a pre-requisite to completing most of the other Learning Outcomes for this subject. Therefore, ensure you fully understand the rules of numeracy before moving on. Have a look at specimen papers and past exam questions. To test your understanding, make sure you can apply the four rules of numeracy to whole numbers, fractions and decimals without the use of a calculator. Always remember to show all steps in your workings as in an examination situation; even if you fail to arrive at the correct answer, you can still earn marks for applying the correct method. Remember to read all questions carefully and, when specified, to express your final answer in the requested format, indicating any units as appropriate.

Level 4 Diploma Unit Title: Introduction to Quantitative Methods Learning Outcome: 2. Be able to make and apply calculations relevant to business. Assessment Criteria/Indicative Content: 2.1 Compare numbers using ratios, proportions and percentages. Apply ratios, proportions and percentages to practical problems, including calculations involving the sharing of money, purchases, wages, discounts and taxation. Convert ratios and proportions to percentages and vice versa. Convert ratios, proportions and percentages to fractions and decimals. Approximate data using rounding and significant figures. Determine final answers which are rounded up or down, or are to be given to a stated number of significant figures. 2.3 Make calculations using a scientific calculator including the use of: roots and powers; logarithms and exponential values (e.g. use a calculator to find the value of: 2.62 , 5-1.33, log4.2, ln5.2 and e3.4). Evaluate terms involving a sequence of operations and use of brackets. Interpret, transpose and evaluate formulae. Make use of formulae which might be provided or have to be derived from a given problem and interpret in the context of solving business problems. Examiners tips: Have a look at how ratios, proportions and percentages are used in your daily activities, both business and personal. For example, you will no doubt be aware how to calculate what your latest annual percentage salary increase was worth in absolute terms or how you proportion your income to cover your living expenses. Make sure you use a suitable scientific calculator when making calculations and that you are aware of how to use the memory function on it. Do not take a calculator with which you are not fully familiar to the examination. Even when using a calculator, it is good practice to show all steps in your workings as in an examination situation marks can be awarded for applying the appropriate method if you fail to arrive at the correct answer. Remember to read all questions carefully and, when specified, to approximate your final answer in the requested format indicating any units as appropriate. Remember that the correct order in which mathematical operations are performed is essential to arrive at the correct answer and solve business problems, especially when making calculations using formulae and involving brackets. Take a look at specimen papers and past exam questions and familiarise yourself with this process before moving on.

Level 4 Diploma Unit Title: Introduction to Quantitative Methods Learning Outcome: 2. Be able to make and apply calculations relevant to business. Assessment Criteria/Indicative Content: 2.2 Determine values for simple financial transactions involving purchases, commission, and discounts. Obtain values for simple financial transactions involving wages and taxation. This includes understanding how gross pay is made up and the main deductions made from gross pay in order to leave net (i.e. take-home) pay as well as how income tax payable on pay is calculated, taking into account non-taxable items and personal tax allowances. Convert different foreign currency using given exchange rates. Understand the difference between buying and selling rates for currency exchange. Apply a commission rate to a financial transaction involving either cash or travellers cheques. Examiners tips: Consider how financial transactions are used in your daily activities, both business and personal. For example, you will no doubt be aware how much money you earn and how much of it you pay in taxes, or how much foreign currency you could change when travelling overseas. Have a look at examples of how financial calculations can be used to solve business problems by viewing specimen and past exam papers. Ensure you familiarise yourself with the necessary formulae included in the examination paper and how these can be used in the business context. Be prepared to modify and/or rearrange such formulae as necessary to solve business problems.

Level 4 Diploma Unit Title: Introduction to Quantitative Methods Learning Outcome: 2. Be able to make and apply calculations relevant to business. Assessment Criteria/Indicative Content: 2.2 Determine values for simple and compound interest, using monthly, quarterly and annual interest rates. Determine values for unknowns using the transposition of the formulae required for both simple and compound interest. This could involve making use of roots, powers or logarithms. Apply the principle of simple and compound interest to the analysis of financial decisions in the context of business management. Determine the values for the depreciation of an asset using the straight line method and the reducing balance method. Interpret its relevance in the context of business management. Examiners tips: Consider how financial transactions are used in your daily activities, both business and personal. For example, you will no doubt be aware how much interest you will earn on your savings or how much your car will be worth in a years time. Have a look at examples of how interest and depreciation calculations can be used to solve business problems by viewing specimen and past exam papers. Ensure you familiarise yourself with the necessary formulae included in the examination paper and how these can be used in the business context. Be prepared to modify and/or rearrange such formulae as necessary to solve business problems.

Level 4 Diploma Unit Title: Introduction to Quantitative Methods Learning Outcome: 3. Be able to use algebraic methods to solve business problems. Assessment Criteria/Indicative Content: 3.1 Solve equations using the basic principles of algebra. Apply the basic arithmetic operations of addition, subtraction, multiplication and division to algebraic notation, and simplify algebraic expressions by the process of collecting like terms. Outline the principles of equations and formulae, their uses and how they are constructed. Find unknown quantities and values from simple equations and formulae by using transposition. Rearrange the terms in equations and formulae to isolate different unknowns and solve. Formulate and solve business problems using linear equations. Formulate business problems using simultaneous equations. Use the elimination method to solve simultaneous equations including two unknowns. Formulate business problems using quadratic equations. Solve quadratic equations using both the factorisation and formulae methods 3.2 Solve and simplify equations using roots or logarithms. Examiners tips: Understanding algebraic methods to solve business problems is a pre-requisite to completing many of the other Learning Outcomes for this subject. Therefore, ensure you fully understand the basic principles of algebra before moving on. Consider how you might use algebraic methods to solve common problems in both your business and personal lives. Ensure you familiarise yourself with the principles of equations and formulae, their uses and how they are constructed. Be prepared to modify and/or rearrange such formulae as necessary to solve business problems. Have a look at specimen and past exam questions and to test your understanding make sure you can formulate and apply business problems using linear, quadratic and simultaneous equations.

Level 4 Diploma Unit Title: Introduction to Quantitative Methods Learning Outcome: 3. Be able to use algebraic methods to solve business problems. Assessment Criteria/Indicative Content: 3.3 Recognise and make use of straight lines which have equations of the form y=mx+c and ax+by+c=0. Identify the characteristics of a straight line from its equation. Identify from looking at an equation, which way the line of that equation will slope. Identify from looking at two equations whether the two lines of those equations are parallel. Determine the x or y intercepts for a line (i.e. the point (co-ordinates) where the line cuts the x and y axes) and the gradient (or slope) of a line, given an equation with these terms unknown or graphically. Understand the relevance of the x and y intercepts and gradient of a line in the context of solving business problems. Determine the equation of a straight line through two points when given two sets of co-ordinates. Determine the equation of a straight line when given one point (i.e. set of co-ordinates) and its gradient. Understand the importance of determining an equation of a straight line in the context of solving business problems. Use the equations for two straight lines to find the co-ordinates of their point of intersection, using simultaneous equations. Understand the importance of the point of intersection of two lines in the context of solving business problems. Use information about straight lines to construct their graphs to solve business problems. Identify (co-ordinates of) important points and interpret their meaning in the context of business decision making. Examiners tips: Ensure that you are familiar with how to recognise, formulate, interpret and plot equations of straight lines to solve business problems. Take a moment to think how everyday events in both your business and personal life can be represented by a straight line equation in the form of y=mx+c. For example, your income (y) can be represented as a function of your fixed salary (c) and any overtime you may carry out (mx where m is the hourly overtime rate and x is the overtime hours worked). Have a look at specimen and past exam questions to see how equations of straight lines can be used to provide business and management information. Practice using straight line equations to plot graphs and identify and interpret points of interest in a business context. Be prepared to modify and/or rearrange such equations as necessary to solve business problems.

Level 4 Diploma Unit Title: Introduction to Quantitative Methods Learning Outcome: 4. Be able to construct and use graphs, charts and diagrams in a business context. Assessment Criteria/Indicative Content: 4.1 Draw charts, including bar charts and pie charts, from given data. Comment on and interpret points of interest. Use such charts to solve business problems. 4.2 Plot fully labelled graphs, charts and diagrams applying the general rules and principles of graphical construction, including choice, range and scale of axes. Arrange and tabulate data in an appropriate format (e.g. grouped and ungrouped) for use in the construction of graphs, charts and diagrams. Use graphs, charts and diagrams to solve a variety of business problems. Draw diagrams, including scatter diagrams, from given data. Comment on and visually interpret potential relationships between two variables (i.e. whether variables seem to be positively or negatively correlated). Use such diagrams to solve business problems. Plot line graphs from given data, including time series data. Comment on and interpret visual trends and points of interest from graph. Use such graphs to solve business problems. Examiners tips: Ensure that you are familiar with how to plot fully labelled graphs, charts and diagrams applying the general rules and principles of graphical construction. Take a moment to see how graphs, charts and diagrams are used in your everyday life to convey information. You might find them in a daily newspaper or on a television news programme to report trends and/or identify points of interest. Based on your understanding of the rules and principles of graphical construction, assess whether these have been applied to the graphs, charts and diagrams you have found. See if you can identify best and worst case examples.

Level 4 Diploma Unit Title: Introduction to Quantitative Methods Learning Outcome: 4. Be able to construct and use graphs, charts and diagrams in a business context. Assessment Criteria/Indicative Content: 4.3 Plot and interpret mathematical graphs for simple linear, quadratic, exponential and logarithmic equations. Use equations and formulae to identify co-ordinates for use in the construction of graphs. Arrange and tabulate data in an appropriate format for use in the construction of graphs. Identify and interpret important points (and their co-ordinates) on graphs, such as points of maximum and minimum, points of intercept of two lines (e.g. break-even points) and points of intercept of lines with the x and y axes. Plot graphs (such as cost, revenue and profit functions) to solve business problems. Examiners tips: Ensure that you are familiar with using equations and formulae to plot fully labelled graphs, applying the general rules and principles of graphical construction. Take a moment to see how equations and formulae are presented graphically in your everyday life to convey information. You might find them used in a daily newspaper or on a television news programme to highlight graphical points and areas of importance. Have a look at specimen and past exam questions to see how equations and formulae can be used to generate data, which can then be tabulated and presented graphically to provide business and management information. Practice using equations to plot such graphs to identify and interpret points of interest in a business context.

Level 4 Diploma Unit Title: Introduction to Quantitative Methods Learning Outcome: 5. Be able to apply statistical methods to provide business and management information. Assessment Criteria/Indicative Content: 5.1 Define and distinguish between quantitative data (e.g. weight of a parcel) and qualitative data (e.g. shape of a parcel). Define and distinguish between continuous data (e.g. weight of a parcel) and discrete data (e.g. number of parcels in a sack). Define and distinguish between primary (e.g. raw data) and secondary data (e.g. analysed data). 5.2 Represent and interpret data. Arrange and tabulate data in an appropriate format (e.g. grouped and ungrouped) for subsequent statistical analysis. Explain the concept of a frequency distribution and define the terms class frequency, class boundary, class limits and class interval. Prepare and interpret data using simple, grouped, cumulative and relative frequency distributions. Understand and apply the methods of presenting frequency distributions graphically (e.g. histogram, the Ogive, stem and leaf diagrams, frequency dot diagram, frequency bar chart and frequency polygon). Use the frequency curve to determine summary statistics and comment on important features of the data, such as median, quartiles and interquartile range. Prepare and interpret data using histograms, Ogives and stem and leaf diagrams. Use such representation to determine summary statistics and comment on important features of the data, such as range, mode, median and skewness. Examiners tips: Take a look at how data and information forms part of your daily activities, both business and personal. Data and information will be presented in newspapers you read, on the packaging of food and drinks you consume, on television programmes you watch and on pages on the internet. See whether you can classify the data and information around you as being either quantitative or qualitative data, continuous or discrete data, and primary or secondary data. Have a look at specimen papers and past exam questions to see how data can be arranged, tabulated and presented graphically to provide business and management information. Familiarise yourself with how frequency distributions and histograms can be used to determine summary statistics to aid business decision making.

Level 4 Diploma Unit Title: Introduction to Quantitative Methods Learning Outcome: 5. Be able to apply statistical methods to provide business and management information. Assessment Criteria/Indicative Content: 5.3 Determine summations for data using a calculator and represent results using sigma notation. Determine and interpret summary statistics for both raw ungrouped data and grouped data, using appropriate formulae or graphically. These would include measures of location (e.g. mean, mode and median), measures of dispersion (e.g. range, interquartile range and standard deviation) and measures of skewness. Calculate Pearsons first and second coefficient of skewness from given data. Explain the nature of skewness and describe the relationship between the mean, median and mode in a skewed distribution. Calculate the coefficient of variation and explain its use. Interpret and compare summary statistics for a sample or a population. Explain the relative advantages and disadvantages of the mean, median and mode. Recognise the appropriate measure of location to use in common situations. Explain the relative advantages and disadvantages of the range, interquartile range and standard deviation as measures of dispersion. Recognise the appropriate measure of dispersion to use in common situations. Examiners tips: Take a look at how summary statistics can be used in your daily activities, both business and personal. For example, you will no doubt be aware of the average time it takes you to get to a particular destination each day (e.g. to work). Consider how you could use measures of location, dispersion and skewness to summarise and describe your journey times over a longer period of time (e.g. a month). Consider how the mean, median and mode journey time would differ over this period and whether this information could be used to describe how dispersed or skewed your journey times over the period are. Have a look at specimen and past exam questions to see how summary statistics can be applied to find solutions to business problems. Familiarise yourself with how measures of location, measures of dispersion and measures of skewness can be used to provide business and management information. Ensure you understand how to apply the various rules of probability.

Level 4 Diploma Unit Title: Introduction to Quantitative Methods Learning Outcome: 6. Understand and be able to apply the laws of probability to find solutions to business problems. Assessment Criteria/Indicative Content: 6.1 Explain and apply the laws of probability. Understand the concept of probability applied to simple events which are equally likely, not equally likely or subjective. Recognise outcomes which are equally likely and not equally likely. Explain, using examples, what is meant by the term subjective probability. Define and use appropriate notation for the probability of a simple or compound event. Identify events which are complementary, mutually exclusive, independent or conditional. Use appropriate formulae (e.g. probability rules, addition rules, multiplication rules and conditional rules) to determine probabilities for complementary, mutually exclusive, independent and conditional events. Construct and use sample space, two way tables and tree diagrams to solve probability problems in business under conditions of uncertainty. 6.2 Calculate the expected value of an outcome. Use probabilities to calculate the expected value of an outcome from appropriate data. Show how they can be used as an aid to business decision-making under conditions of uncertainty. Examiners tips: Have a look at specimen and past exam questions to see how the laws of probability can be applied to find solutions to business problems. Familiarise yourself with how sample space, two way tables and tree diagrams can be used in business decision making to determine probabilities for business under conditions of uncertainty. Ensure you understand how to apply the various rules of probability. Unless otherwise specified, answers may be expressed as percentages, fractions or decimals.

Level 4 Diploma Unit Title: Introduction to Quantitative Methods Learning Outcome: 6. Understand and be able to apply the laws of probability to find solutions to business problems. Assessment Criteria/Indicative Content: 6.3 Determine probabilities using he normal distribution. Describe, in simple terms, the significance of the normal frequency distribution. Explain the properties of the normal distribution in terms of the location of observations, the mean and the standard deviation. Using the normal distribution determine the probability of a particular event happening within specified limits (e.g. greater than, less than or between specified values) and interpret your findings. A standard normal distribution table will need to be used to find probabilities. Conversely for a given probability that an event will happen, use a standard normal distribution table to determine the value of an observation and interpret your findings. Represent graphically the location of observations, and normal probabilities as areas, under the standard normal distribution curve. Examiners tips: Have a look at specimen and past exam questions to see how the normal distribution can be applied to solve business problems. Ensure you understand how to use the normal distribution table to determine the probability of a particular event happening and conversely to determine the value of an observation for a given probability within the normal distribution. Unless otherwise specified, answers may be expressed as percentages, fractions or decimals.