Introduction

 Makurumidze S

 BSc Economics

 C.I.S

 MBA(Financial Services)

 PhD(Finance) Candidate
Business mathematical models
A
  model is an abstraction of reality (real world). A
mathematical model is one which may consist of a set
of equations describing the structure of the model.
These equations consist of variables related in a certain
manner e.g. costs, profit, revenues, investment etc.
A model should be solved to give solution values which
are usually numeric. Typical business models include:

As solution values are numeric, its important to look at

the numbering system.
Numbering system
Positive integers- these are the numbers that are most
frequently used in counting such as 1,2,3…….
Their negative counterparts are called negative integers such
as -1, -2,-3,-4……these can be used to denote sub-zero
temperature
The number o is neither positive or negative and as such is
unique. A set of positive, negative and the zero are a set of all
integers.
Similarly a set of all fractions consists of positive and negative
fractions. A fraction is a ratio expressing two integers.
-cont-
 A set of rational numbers consist of all integers and
the set of all fractions. Rational numbers have also a
terminating decimal( )or a repeating decimal( )
Irrational numbers are numbers that cannot be
expressed as a ratio of a pair of integers e.g. =1.4142…
which is nonrepeating and nonterminating decimal.
Another irrational number is the constant Irrational
numbers fall between two rational numbers.
Real numbers refer to continuum of numbers on a
number line.
Coefficients
Variables often appear in combination with fixed
numbers or constants and this constant referred to as a
coefficient for instance 0.75Q, -3.5Y etc.
it should however be noted that coefficients may not
necessarily be numeric but can be symbolic e.g. αY or
βX. The symbol represents a constant which can take
any value and is known as a parametric
constant/parameter.
Exponents

An
  exponent is a power to which a variable or numeric value
is raised to. In general exponents obey the following rules:
Rule 1.
Rule 2. ,
Rule 3.
Rule 4.
Rule 5.
Rule 6.
Rule 7.
Rule 8.
Revision questions
 Simplify the following expressions, giving your answer
with positive exponents:
 2. 3. 4. 5.
6. 7. 8. 9. 10.
Algebra
It is a branch of Mathematics about translating
numbers into letters or expressions. Thus in Algebra
letters represent numbers.
Simplifying Algebraic Expressions
Like terms are added or subtracted together. Like
terms are multiples of the same letter or unknown or
letter.
Bracketed Expressions
 Process of removing brackets is expanding brackets
and is based on the distributive law for instance:

Take note of multiplying negative numbers.

Factorizing algebraic expressions
 This is a process of writing an expression as a product
of a simpler expression using brackets.
For instance:
Algebraic fractions
These are expressions with numerators and denominators
involving letters as well as numbers.
The simplification of algebraic fractions is similar to that of
ordinary numerical expressions.
When multiplying fractions always multiply their
corresponding numerators and denominators.
When dividing fractions invert the second fraction and
then multiply.
When adding or subtracting fractions, find the common
denominator or LCM, then add or subtract the numerators.
Revision questions
 Simplify the following:
1(a)
b)
2. 3.
4.
5.
Factorize the following
6. 7.