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12 STD BUSINESS MATHEMATICS

FORMULAE
CHAPTER 1 . APPLICATIONS OF MATRICES AND DETERMINANTS
1. Adjoint of a matrix A is AdjA Ac T .
(where Ac is a cofactor matrix)
1
2. Inverse of a matrix A is A 1 AdjA .
A
3. Results:
(i) A AdjA ( AdjA) A A I .
(ii) Adj ( AB) ( AdjB ) AdjA .
(iii) AB 1 B 1 A1 .
(iv) AA 1 A1 A I .

(v) A 1 A.
4. The rank of a zero matrix (irrespective of its order) is 0.
1

5. Conditions for consistency of Simultaneous Linear Equations (Non homogeneous):

(i) If ( A, B) ( A) n, then the equations are consistent and has unique solution.
(ii) If ( A, B) ( A) n, then the equations are consistent and has infinitely many solutions.
(iii) If ( A, B) ( A), then the equations are inconsistent and has no solution.
6. Conditions for consistency of Simultaneous Linear Equations (Homogeneous):
(i) If ( A, B) ( A) n, (OR) If A 0 then the equations have trivial solutions only.
(ii) If ( A, B) ( A) n, (OR) If A 0 then the equations have non trivial solutions also.
y

7. Cramers rule: x x ;
y
;
z z.

a11 a12

x1
x2

8. Technology matrix B
.
a 21 a 22
x
x 2
1
9. Output matrix X I B 1 D.

PAB
PPP
P
(OR) T
10. Transition Probability Matrix T AA
PBA PBB
PQP
( depends on the name of the products A, B or P, Q)

PPQ

PQQ

11. For finding Equilibrium share of market A + B = 1 (OR) P + Q = 1

(This step carries 1 mark and it is compulsory)

K. MANIMARAN. M.Sc.,B.Ed., P.G.Asst GOLDEN GATES MHSS, SALEM 8.

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CHAPTER 2 . ANALYTICAL GEOMETRY

1.

SP
e.
PM

2. Eccentricity of parabola e = 1.
3. Eccentricity of ellipse e < 1.
4. Eccentricity of hyperbola e > 1.
5. Eccentricity of rectangular hyperbola e 2. .
6. Parabola:
y2 = 4ax

y2 = -4ax

x2 = 4ay

x2 = - 4ay

Vertex

(0,0)

(0,0)

(0,0)

(0,0)

Focus

a,0

a,0

0, a

0,a

x a

xa

y a

ya

4a

4a

4a

4a

y0

y0

x0

x0

Directrix
Latusrectum
Axis
7. Ellipse:

x2 y2

1,
a2 b2
Centre

ab

(0,0)

Vertices
Directrix
Latusrectum
Foci

(OR)
e 1

b2 a 2 1 e2

(OR)
b2
a2

a,0, a,0
x

ab

(0,0)

b2 a 2 1 e2

Eccentricity

x2 y2

1,
b2 a2

a
e

e 1

b2
a2

0, a , 0,a
y

a
e

2b 2
a

2b 2
a

ae,0, ae,0

0, ae, 0,ae

K. MANIMARAN. M.Sc.,B.Ed., P.G.Asst GOLDEN GATES MHSS, SALEM 8.

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8.

Hyperbola:

Centre

x2 y2

1
a2 b2

y2 x2

1
a2 b2

(0,0)

(0,0)

Eccentricity

Directrix
Latusrectum
Foci

b2 a 2 e2 1

(OR)

(OR)

e 1

Vertices

b2 a 2 e2 1
b2
a2

a,0, a,0
x

a
e

e 1

b2
a2

0, a , 0,a
y

a
e

2b 2
a

2b 2
a

ae,0, ae,0

0, ae, 0,ae

9. The general equation of Rectangular Hyperbola (R.H) is xy = c2.

a2
( useful for objectives)
where c 2
2

10. The eccentricity of Rectangular Hyperbola (R.H) is e 2

K. MANIMARAN. M.Sc.,B.Ed., P.G.Asst GOLDEN GATES MHSS, SALEM 8.

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CHAPTER 3 . APPLICATIONS OF DIFFERENTIATION I

C
f ( x) k
(or )
.
x
x
f ( x)
Average variable cost (AVC) =
.
x
k
Average fixed cost (AFC) = .
x
dC
Marginal cost (MC) =
.
dx
d AC
Marginal average cost (MAC) =
.
dx
Total revenue R = px.
R
Average revenue (AR) = .
x
(Average revenue = Demand function i.e, AR = p)
dR
Marginal average revenue (MR) =
.
dx

1. Average cost (AC) =

2.
3.
4.
5.
6.
7.

8.

9. If x = f(p) is a demand function, then Elasticity of demand d

(Where x quantity demanded ; p price)
Note : For a demand function q = f(p) , d

p dx
. .
x dp

p dq
.
q dp

10. If x = f(p) is a supply function, then Elasticity of supply s

p dx
.
x dp

(Where x quantity supplied ; p price)

1
11. Relation between MR and Elasticity of demand is MR p1
d
12. At equilibrium level, Qd = Qs.

13. Equation of tangent is y y1 mx x1 .

1
14. Equation of normal is y y1 x x1 .
m

K. MANIMARAN. M.Sc.,B.Ed., P.G.Asst GOLDEN GATES MHSS, SALEM 8.

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CHAPTER 4 . APPLICATIONS OF DIFFERENTIATION II

1. Eulers theorem : If u is a homogeneous function of x and y with degree n then, x

u
u
y
nu.
x
y

(f or z can be used in the place of u depends on the name of the function)

2. Partial Elasticities
Eq1 p1 q1

.
Ep1
q1 p1

3. Economic order quantity (q0 )

and

Eq1 p 2 q1

.
Ep 2
q1 p 2

2 RC 3
.
C1

(where R Requirement ; C3 ordering cost ; C1 carrying cost)

4. If unit price and percentage of inventory are given then carrying cost C1
5. Time between two consecutive orders (t 0 )
6. Number of orders =

%
unitprice .
100

q0
.
R

R
.
q0

7. Minimum average variable cost =

8. Total ordering cost =

R
C3 .
q0

9. Total carrying cost =

q0
C1 .
2

2 RC 3C1 .

K. MANIMARAN. M.Sc.,B.Ed., P.G.Asst GOLDEN GATES MHSS, SALEM 8.

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CHAPTER 5 . APPLICATIONS OF INTEGRAL CALCULUS

Properties of Definite integrals:

1.

f ( x)dx f ( x)dx..
a

2. If f(x) is an odd function, i.e, if f(-x) = -f(x) then f ( x)dx 0..

a

3. If f(x) is an even function, i.e, if f(-x) = f(x) then f ( x)dx 2 f ( x)dx..

4.

5.

f ( x)dx f (a b x)dx..
f ( x)dx f (a x)dx.

6. The area under the curve y f (x), the x-axis and the ordinates at x a and x b is
b

Area ydx
a

7. The area under the curve x = g (y), the y-axis and the lines y = c and y = d is
d

Area xdy .
c

8. If MC is the marginal cost function then total cost function is given by C MC dx k.

9. If MR is the marginal revenue function then total revenue function is given by
R MR dx k.

10. The producers surplus for the supply function p g( x ) for the quantity x0 and price p0 is
x0

P.S p0 x0 g ( x)dx.
0

11. The consumers surplus for the demand function p = f (x) for the quantity x0 and price p0 is
C.S

x0

f ( x)dx p x .
0

K. MANIMARAN. M.Sc.,B.Ed., P.G.Asst GOLDEN GATES MHSS, SALEM 8.

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CHAPTER 6 . DIFFERENTIAL EQUATIONS

1. The General form of Homogeneous differential equations is

dy f x, y

.
dx g x, y

2. Working rule for finding the solution of linear differential equations

(i)

Extract P and Q.

(ii)

Find P dx.

(iii)

Find Integrating Factor (I.F) = e P dx

3. The solution to linear differential equations of type

dy
Py Q (Where P and Q are functions of
dx

x only) is yI .F QI .F dx C (OR) ye Pdx Qe Pdx dx C

4. The solution to linear differential equations of type

dx
Px Q (Where P and Q are functions of
dy

y only) is xI .F QI .F dy C (OR) xe Pdy Qe Pdy dy C.

5. Second order linear differential Equations
If m1 and m2 are the roots of the Auxilliary equation is of the type ax2 + bx + c = 0
(Quadratic equation)

(i) If the roots m1 and m2 are real and distinct, C.F = Ae m x Be m x .

1

(ii) If the roots m1 and m2 are real and equal(m1 = m2), C.F = Ax B e mx .
(iii) If the roots m1 and m2 are unreal, i.e, if m i , C.F = ex A cos x B sin x .
(C.F Complementary Function)

CHAPTER 7 . INTERPOLATION
1. Forward operator (delta) ( y0 ) y1 y0 (or) ( f ( x)) f ( x h) f ( x).
2. Backward operator (nabla) ( y1 ) y1 y0 (or) ( f ( x h)) f ( x h) f ( x).
3. The Shifting operator E ( y0 ) y1 , E 2 ( y0 ) y2 , E 3 ( y0 ) y3 ......... and so on.
4. The relation between forward operator (delta) and shifting operator E is
E 1

(or)

E 1.

5. (For missing term problems)

K. MANIMARAN. M.Sc.,B.Ed., P.G.Asst GOLDEN GATES MHSS, SALEM 8.

(a)

E 1

(b)

E 14 y0 E 4 4E 3 6E 2 4E 1y0 .

(c)

E 15 y0 E 5 5E 4 10E 3 10E 2 5E 1y0 .

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y0 E 3E 3E 1 y0 .
3

6. Gregory Newtons forward formula :

u
u u 1 2
u u 1u 2 3
uu 1u 2....... u n 1 n
y y0 y0
y0
y0 ...........
y0 .
1!
2!
3!
n!
x x0
Where u
. and h equal interval between the x - values
h
(number of terms in the formula depends on the number of terms in the problem)

7. Gregory Newtons backward formula :

u
uu 1 2
uu 1u 2 3
uu 1u 2....... u n 1 n
y y n y n
yn
y n ...........
yn .
1!
2!
3!
n!
x xn
Where u
. and h equal interval between the x - values
h
(number of terms in the formula depends on the number of terms in the problem)

8. Lagranges formula:
x x1 x x2 ..............x xn
y y0
x0 x1 x0 x2 ..............x0 xn
y1

x x0 x x2 ..............x xn
x1 x0 x1 x2 ..............x1 xn

...........................................................
yn

x x0 x x1 ..............x xn1
xn x0 xn x1 ..............xn xn1

(depends on the number of terms given in the problem)

9. Line Of Best Fit:

Normal equations are

a x nb y
a x b x xy
2

The line of best fit is

y = ax + b

K. MANIMARAN. M.Sc.,B.Ed., P.G.Asst GOLDEN GATES MHSS, SALEM 8.

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CHAPTER 8 . PROBABILITY DISTRIBUTION

b

1. If X is a continuous random variable, then P(a X b) f ( x)dx.

a

2. For a discrete random variable X,

Mean E ( X ) xi pi .
E ( X 2 ) xi p i .
2

Var ( X ) E ( X 2 ) E ( X ) .
2

3. For a continuous random variable X,

Mean E ( X )

xf ( x)dx.

E( X )
2

f ( x)dx.

Var ( X ) E ( X 2 ) E ( X ) .
2

4. If the discrete random variable X follows Binomial distribution then

P( X x) nC x p x q n x ,
x 0,1,2,..........n .
5. Results related to Binomial distribution:
Mean = np ; Variance = npq ; and p + q = 1
6. If the discrete random variable X follows Poisson distribution then
e x
P( X x)
,
x 0,1,2,...........
x!
7. Results related to Poisson distribution:
Mean np ; Variance = .
In Poisson distribution Mean = Variance

8. If the continuous random X follows Normal distribution, then its p.d.f is given by
f x

1 x

x .

9. To convert Normal variate X to standard Normal variate z we use, z

K. MANIMARAN. M.Sc.,B.Ed., P.G.Asst GOLDEN GATES MHSS, SALEM 8.

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CHAPTER 9 . SAMPLING DISTRIBUTION

1. Notations:
(a) N Population size
(b) n Sample size
(c) X Mean of the sample
(d) Mean of the population
(e) s - Standard deviation (S.D) of sample
(f) - Standard deviation (S.D) of population
2. Confidence limits for = X Z c

= X Z c

. (If N is not given)

s
n

N n
. (If N is given)
N 1

3. Confidence intervals for proportion = p Z c

pq
. (If N is not given)
n

= p Z c

pq
n

N n
. (If N is given)
N 1

Note : For 95% confidence interval Zc = 1.96

For 99% confidence interval Zc = 2.58
4. Testing of Hypothesis Formulae:
Test statistic Z

Test statistic Z

pP
pq
n

5. For 5% level of significance : Acceptance region Z 1.96.

Critical region

Z 1.96.

6. For 1% level of significance : Acceptance region Z 2.58.

Critical region

Z 2.58.

K. MANIMARAN. M.Sc.,B.Ed., P.G.Asst GOLDEN GATES MHSS, SALEM 8.

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CHAPTER 10 . APPLIED STATISTICS

1. Correlation coefficient formulae:
(a) r ( X , Y )

N XY X Y

N X 2 X

N Y 2 Y

(If X , Y are integers or non-integers)

(b) r ( x, y)

xy
x y
2

Where x X X and y Y Y .

(If X , Y are integers) and X

X and Y Y
n

N dxdy dx dy

(c) r ( X , Y )

N dx 2 dx

N dy 2 dy

(If X , Y are integers or non - integers)

Where dx X A and dy Y B. (A, B are arbitrary values of X and Y)
(Note: Correlation coefficient should lie between -1 and 1)

2. Regression Formulae:
(a) Regression line of X on Y is
( X X ) bxy (Y Y ).
(b) Regression line of Y on X is
(Y Y ) byx ( X X ). Where X

Where bxy

N XY X Y

and b yx

X and Y Y
n

N XY X Y

(If X , Y are integers or non - integers)

Where bxy

xy
y
2

and b yx

xy
x

(If X , Y are integers)

(Note: Regression lines will intersect at X ,Y . )

3. Seasonal Index =

Quaterly average
100.
Grand average

4. Index Numbers:

K. MANIMARAN. M.Sc.,B.Ed., P.G.Asst GOLDEN GATES MHSS, SALEM 8.

 pp qq

(a) Laspeyres price Index number P01L

1 1

100.

1 0

pp qq

(b) Paasches price index number P01

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0

100.

0 1

pp qq pp qq

(c) Fishers price index number P01F

(OR) P01

1 0

1 1

P01 P01 .
L

(d) Cost of Living Index numbers:

(i) Aggregate Expenditure method (C.L.I)

pq
p q

1 0
0

(ii) Family Budget method (C.L.I)

Where P

100.

0 1

100.

PV .
V

p1
100 and V p0 q0 .
p0

5. Statistical Quality Control (SQC) Formulae:

Range chart (R Chart):

C.L = R

R.
n

U.C.L = D4 R
L.C.L = D3 R
X Chart :

C.L = X

X .
n

U.C.L = X A2 R.
(Where

L.C.L = X A2 R.
C.L Central Line ; U.C.L - Upper Control Line ; L.C.L - Lower Control Line)

K. MANIMARAN. M.Sc.,B.Ed., P.G.Asst GOLDEN GATES MHSS, SALEM 8.