# ATD NOTES / DCM NOTES – BUSINESS MATHEMATICS AND STATISTICS PDF AND HARD COPY NOTES

DIPLOMA IN CREDIT MANAGEMENT (DCM)

ACCOUNTING TECHNICIAN DIPLOMA (ATD)

LEVEL II

STUDY TEXT

KASNEB SYLLABUS

GENERAL OBJECTIVE

This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to apply mathematical and statistical skills in business transactions.

7.0 LEARNING OUTCOMES

A candidate who passes this paper should be able to:

• Compute simple and compound interests
• Solve problems involving appreciation, depreciation, hire purchase and foreign exchange
• Solve business problems using matrix algebra
• Solve business problems involving commercial mathematics
• Present data in form of tables, graphs and curves
• Calculate measures of location, dispersion skewness and kurtosis
• Compute simple, general and weighted index numbers.

CONTENT

7.1Equations

• Linear equations; solving and graphs
• Quadratic equations: solving and graphs
• Differentiation
• Simultaneous equations; solving
• Break-even analysis
• Total revenue, total cost and profit equations; application of errors

7.2 Matrices

• Introduction; order, types
• Determinants of 2×2 matrices
• Inverses of 2×2 matrices
• Application of matrices to business problems

7.3 Commercial mathematics

• Buying and selling; discounts, profit and loss, margins and mark-ups
• Commissions and salaries: piece and hourly rates, gross and net pay, PAYE
• Bills calculations; water and electricity /
• Simple and compound interest
• Depreciation and appreciation of assets
• Hire purchase
• Foreign exchange

7.4 Elementary statistics

• Introduction: definitions and branches of statistics^
• Methods of data collection: primary and secondary data./
• Sampling techniques J
• Presentation of data:
• Tables
• Diagrams: bar charts and pie charts
• Graphs: Basic time series graphs, Z-charts, Lorenz curves and semi-log graphs
• Frequency distribution tables
• Histogram and frequency polygons’
• Cumulative frequency curve (ogive) and its application

7.5 Descriptive statistics

• Measures of central tendency:
• Mean: arithmetic mean, weighted arithmetic mean, geometric mean and harmonic mean
• Mode
• Median
• Measures of dispersion: range, quartile, deciles, percentiles, mean deviation, standard deviation and coefficient of variation
• Measures of skewness and kurtosis excluding computation of the coefficients

7.6 Set theory

• Introduction to set theory
• Types of sets: universal, empty/null. Sublets, finite and infinite
• Operation of sets: unions, intersecting, complements and set difference
• Venn diagrams

7.7 Basic probability theory

• Introduction to probability: definitions, events, outcomes, sample space
• Types of events: simple, compound, independent, mutually exclusive,
• Mutually inclusive, dependent events
• Rules of probability: additive and multiplicative rules
• Baye’s Theorem
• Elementary probability trees

7.8 Index numbers

• Construction of index numbers Purpose of index numbers
• Simple index numbers; fixed base method and chain base method
• Consumer Price Index (CPI)
• Weighted index numbers; Laspeyre’s, Paasche’s, Fisher’s ideal and Marshall- Edgeworth’s methods (both price and quantity index numbers)
• Limitations of index numbers
• Emerging issues and trends

7.9 Emerging trends

CONTENT                                                                                          PAGE

Chapter 1: Equations…………………………………………………………5

Chapter 2: Matrices…………………………………………………….……31

Chapter 3: Commercial mathematics………………………………….52

Chapter 4: Elementary statistics………………………………………..77

Chapter 5: Descriptive statistics………………………………….……109

Chapter 6: Set theory…………………………………………….………146

Chapter 7: Basic probability theory……………………………….176

Chapter 8: Index numbers ……………………………………………..205

Revised on: June 2019

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