(i)

BUSINESS
MATHEMATICS AND
STATISTICS
(For Higher Secondary Second Year)

ASSAM HIGHER SECONDARY EDUCATION COUNCIL

[ON THE BASIS OF NATIONAL CURRICULUM FRAMEWORK (NCF) 2005]
 (ii)

Business Mathesmatics and Statistics : A textbook of Commerce for H.S. 2nd Year
English medium prepared by Assam Higher Secondary Education Council.

First Edition
April, 2011
ALL RIGHTS RESERVED
Second Edition
June, 2020  No part of this publication may be
3rd Edition
reproducted, stored in a retrieval
May, 2022
system or transmitted, in any form
© Assam Higher Secondary or by any means, electronic,
Education Council, 2001 mechanical, photocopying,
recording or otherwise without the
prior permission of the publisher.
Rs. . 170.00
 This book is sold subject to the
condition that it shall not, by way
Text Printed on 70 GSM of trade, be lent, re-sold, hired out
or otherwise disposed of without
the publisher’s consent, in any
Cover Pages 150 GSM
form of binding or cover other
than that in which it is published.
Published at the Publication
Department by the Secretary, Assam  The correct price of this
Higher Secondary Education Council, publication is the price printed on
Bamunimaidam, Guwahati-781021. this page, Any revised price
indicated by a rubber stamp or by
a sticker or by any other means is
Printed at : SUN BEAM
1 Sankardev Path, Rupnagar
incorrect and should be
Guwahati-781032 unacceptable.
e-mail : sunbeampress.2007@gmail.com

On behalf of
Assam Higher Secondary Education Council

19 45
STUDENTS' STORES
Publisher & Book Sellers
College Hostel Road, Panbazar, Guwahati-1
 (iii)

TEXT BOOK DEVELOPMENT COMMITTEE

1. Sitesh Ch. Chanda

Retd. Professor, Guwahati Commerce College

2. Ajanta Majumder
Senior Lecturer, Guwahati Commerce College

3. Pranjit Das
Senior Lecturer, B. H. College, Howly

4. Sudarshan Choudhury
Lecturer, Guwahati Commerce College

5. Runjun Phukan
Lecturer, K.C. Das Commerce College, Guwahati

Member Co-ordinator cum Editor :

Sitesh Ch. Chanda
 (iv)

FOREWORD

In order to impart quality education to the students of Higher Secondary level

and also to cater its need of the hour Assam Higher Secondary Education
Council has been revising its curriculum and syllabi time to time. It has
introduced a revised curricula with effect from 2010-2011 which has its base
on NCF-2005. In the context of globalization of the economy, emergence of
Information Technologies and application of new technologies in production
processes, the National Council of Education Research and Training has
proposed a new National Curriculum Framework (NCF-2005) for grades I-XII.
This framework, which addresses the emerging development issues and other
social concerns, provides a basis for the state to design their curricula, syllabi,
teaching learning materials etc. In its endeavour to keep the uniformity with
the national level Assam Higher Secondary Education Council after due
deliberation decided to develop its curricula and syllabi on the basis of NCF-
2005. Accordingly textbooks have been prepared to materialize the objectives
of the curricula syllabi.

Writing this book was a collective effort of a group of people. Assam Higher
Secondary Education Council appreciates the hard work done by the textbook
development committee responsible for this book. AHSEC welcomes
comments and suggestions which will enable us to undertake further revision
and refinement. From teachers and students also we would appreciate feedback
about the book and its design.

Guwahati Secretary
31st May, 2022 Assam Higher Secondary
Education Council
Bamunimaidam, Guwahati-21
 (v)

CONSTITUTION OF INDIA

PREAMBLE

We, The People Of India, having solemnly

resolved to constitute India into a Sovereign Socialist
Secular Democratic Republic and to secure to all
its citizen :
Justice, social, economic and political;
Liberty of thought, expression, belief, faith
and worship :
Equality of status and of opportunity; and to
promote among them all
Fraternity assuring the dignity of the individual
and the unity and integrity of the Nation;
In Our Constituent Assembly this twenty-sixth
day of November, 1949, do Hereby Adopt, Enact
And Give To Ourselves This Constitution.
 (vi)

CONTENTS

UNIT SUBJECT PAGE NO.

Unit-1 Simple and Compound Interest, Annuity .. .. .. 7-40

Unit-2 Linear Inequalities & their Graphs .. .. .. 41–96

Unit-3 3.1 Set Theory .. .. .. 97–172

Unit-4 Statistical Averages .. .. .. 173–235

Unit-5 Measures Of Dispersion (Variation) .. .. .. 236–271

Unit-6 Correlation .. .. .. 272–304

 (7)

UNIT-1 SIMPLE AND COMPOUND INTEREST, ANNUITY

SIMPLE INTEREST
Introduction : Concept of interest on a certain sum lent to some one is not new. We have
heard this word interest in many occasions. As for example, people take loan from
‘Kabuliwala’, merchants or any private money lender etc. Even sometimes Govt. takes loan
from any financial institution or big business magnets so as to discharge certain liabilities.
Money lenders do not give loan for loan sake only. Rather they get an extra benefit from
the borrower on the loan amount upto a certain period for which the loan is taken. This extra
benefit is popularly known as ‘interest’ or a service charge. Borrower is also benefited because
he can complete some unfinished work which may later give him rich dividend.
Meaning of Principal, Amount, Rate of Interest : The sum borrowed / cash at hand is
known as Principal or Sum. The invested sum and interest taken together is known as Amount.
Thus, Amount = Principal + Interest
The interest is calculated on the principal at a certain rate for a certain period. This rate of
interest is generally expressed in percentage eg. Rate of interest is 5% p.a. This means that
interest on Rs. 100 (sum) for 1 year is Rs. 5.
Note : (i) Rate of interest is dependent on the term and risk factor.
(ii) In case of simple interest, principal remains the same upto the total period
and interest is calculated every year on the original principal.
(iii) p.a. (per annum) means per year.
(iv) In a non-leap year, total no of days = 365. In a leap year (i.e. the year no is
divisible by 4), total no of days = 366, Month of Feb has 29 days. No of
weeks in a year = 52.
(v) Interest means simple interest unless specifically mentioned.
(vi) In counting the no. of days from one date to another date, one of the extreme
date is taken.
eg. No of days from 15th March to 18 June = 16+30+31+18 = 95.
SOME SYMBOLS USED IN SIMPLE INTEREST (S.I.) :
1. P= Principal or Sum.
2. A = Amount.
3. I = Simple interest.
8 Commercial Mathematics and Statistics

4. n = No of years for which Principal is used.

5. r = rate of interest (generally, rate of interest is expressed in percentage)

SOME FORMULAES OF SIMPLE INTEREST :

1. I = P.r.n 2. P = 100I 3. r = 100I

100 rn P.n

4. n = 100I
P.r.n FH rn
5. A = P + I = P + 100 = P 1 + 100
IK
P.r

Note:
(i) In the above formulae ‘n’ indicates no. of years (periods).
(ii) If time (n) is given in months, convert months in year by dividing the no. of
months by 12.
If time is given in days, convert days by dividing the no. of days by 365.
If time is given in weeks, divide no. of weeks by 52.
5
(iii) Rate of interest 5% is = 100
7
” ” ” 3 1 % is = etc.
2 200
We shall now discuss some problems in connection with the above formulae.
Example 1. What sum of money lent out at 6% p.a. will amount of Rs. 620 in 4 years?
Solution : Here, A = Rs. 620, n=4 years, rate of interest r = 6% p.a.
P=?
FH IK FH
A P 1 + rn= P 1 + 6 × 4
We know, =
IK
100 100

⇒ 620 = P.124
100

∴ P = 620 × 100 = Rs. 500

124
Thus, Sum lent out = Rs.500
Example 2. To repay sum of money borrowed 5 months earlier a man agreed to pay Rs.
529.75. Find the sum borrowed if the rate of interest charged was 4 1 % p.a.
2
Solution : Here, A = Rs. 529.75, n = 5 months = 5 year
12
1
r = 4 % p.a., P = ?
2
 Simple and Compound Interest, Annuity 9

F 9. 5 I
We know, A = e j GG
P 1+
rn
=P 1 + 2 12 JJ
100
H 100
K
⇒ 529.75 = Pe 2400 j
2445

⇒ 52975 = Pe 2400 j
2445
100
∴ P = 5975 × 24 = Rs.520
2445
Thus, Sum borrowed = Rs. 520.
Example 3. What sum will amount to Rs. 5,200 in 6 years at the same rate of S.I. at which
Rs. 1706 amount to Rs. 3412 in 20 years?
Solution : Here, A = Rs. 5,200, n = 6 years, (first case)
Let the rate of S.I. be r% p.a.
Second case:
P = Rs. 1706, A = Rs. 3412, n = 20 years
(rate of interest is same as before)
∴ S.I. = A–P = Rs (3412–1706)
= Rs. 1706 (i.e.I)
Now, I = P. r. n.
100

⇒ 1706 = 1706 × r × 20 ∴ r = 5% P.a.

100

For Case I e rn
⇒ A = P 1 + 100 j
⇒ Rs. 5200 = PFH1+ 5100
× 6I
K
∴ P = 5200 × 100 = Rs.4,000
130
∴ Required sum = Rs. 4,000.
Type II : To find rate of interest, Time and S.I.
Example 4. The S.I. on a sum of money at the end of 8 years is 2 th of the sum itself. Find
5
the rate percent p.a.
Solution : Let the sum be Rs. 100, here, n = 8 years
10 Commercial Mathematics and Statistics

S.I. = 2 ×Rs. 100 = Rs. 40

5
Let the rate percent per annuam be r.
We know, I = P. r. n.
100

⇒ 40 = 100 × r × 8
100
∴ r = 5%
∴ Required rate of interest = Rs. 5% p.a.
Example 5. A sum of money becomes double in 20 years at S.I. In how many years will it
be treble?
Solution : Let the sum be Rs. 100 & rate interest be r% p.a.
A/q, n = 20 years, A = Rs.200

We know, e rn
I = P 1 + 100 j
⇒ 200 = 100 1 +
P.20
e 100 j
⇒ 200–100 = 20r
∴ r = 5%
Again, A = Rs.300, n=?, r=5%

e rn
We know, A = P 1 + 100 j
e
5× n
⇒ 300 = 100 1 + 100 j
⇒ 300–100 = 5n
∴ n = 40 years.
Example 6. A man borrowed from his banker Rs.500 for 8 months on Dec.,31. At the end
of 5 months, he paid Rs.372 and the remainder with interest on Aug.,31. If his
final payment was Rs.137.61; find the rate of interest charged p.a. by the bank.
Solution : A/q, total interest paid = Interest on Rs.500 for 5 months + interest on
Rs.(500-372) i.e. on Rs.128 for 3 months.

e 500. r.5 128. r.3

j
Rs. 12 × 100 + 12 × 100 , where, r% p.a. is the rate interest.

= 1 (2500r + 384r )
1200
= 2884r
1200
 Simple and Compound Interest, Annuity 11

His total payments in 8 months = (372+137.61)

= Rs.509.61
∴ Total interest paid = Rs. (509.61-500) = Rs. 9.61
∴ 9.61 = 2884r ∴ r = 961 × 12 = 961 × 3
1200 2884 721
=
2883 = 4%
721
∴ Rate of interest = 4% p.a. (approx).
Example 7. Find S.I. on Rs. 5600 at 12% p.a. from July 15 to Sept. 26, 2003.
Solution : Here, P = Rs. 5600, r = 12%, n = time = No. of days from July 15 to Sept.
26, 2003
= 16+31+26 = 73 days
Now, S.I. ie. I = P. r. n.
100
= 5600 × 12 × 73
365 × 100
= 672
5
= Rs. 134.40
∴ Required S.I. = Rs. 134.40
Example 8. A certain sum of money at S.I. amounts to Rs.560 in 3 years and to Rs.600 in
5 years. Find the sum and the rate of interest.
Solution : Amount after 5 years = Rs. 600
” ” 3 ” = Rs. 560
∴ Interest for 2 years = Rs. 40
∴ Interest for 3 years = Rs. 60
Now, I = A–P
⇒ 60 = 560 –P ∴ P = Rs. 500 = Sum

Again I = P.r.n.
100

= 60 = 500 × r × 3 , whose r% p.a. is the rate of interest.

100

r = 60 = 4%
15
∴ Required Sum = Rs. 500
& Required rate of interest = 4% p.a.
12 Commercial Mathematics and Statistics

ILLUSTRATIVE EXAMPLES :
Example 9. A man borrowed two sums of money differing by Rs.100 at the same time,
one at 5% p.a. and the other at 6 1 % p.a. both at S.I. At the end of 5 years he
4
paid back the loans with interest. If he payed the same amount in respect to
each loan, fund the sums borrowed by him.
Solution : Let the first sum borrowed him at 5% p.a. be Rs. X

∴ the 2nd sum borrowed by him at 6 1 % p.a. = Rs. (X–100)

4

Now, Amount for 1st loan e 5×5

j
5
= Rs. X 1 + 100 = x × 4
[∴rate of int. in 2nd loan is higher than 1st one &
Amt. after the same period for each loan is same.]

Amount for 2nd loan

FG25
4 .5
= Rs. (X–100) 1 + 100
IJ
= Rs. 5x
H K 4

= aX − 100fe 400 j
525 same.]

= Rs. aX − 100f 21
16
A/q, 21 ( X − 100) =
5x
16 4

⇒ 21
4
b
X − 100 =g
5x

⇒ 21x–20x = 2100 ∴ x = Rs. 2100

∴ Required Sum borrowed at 5% = Rs. 2100
1
& ” ” ” ”6 4% = Rs. 2000

Example 10. Arun deposited a total sum of Rs.15,000 in two different banks. One of them
pays 3% int. & the other pays 2 1 % int. At the end of the year, he receives
2
Rs.432.75 as interest. Find the sum dosited in each bank.
Solution : Let the deposited sum at 3% int. be Rs.X
∴ the deposited sum at 2 12 % int. = Rs. (15000–X)

Total int. received by him after 1 year = x × 3 × 1 + b

15000 − x 25 .1 g
100 100
 Simple and Compound Interest, Annuity 13

1 RS
= 100 3x +
(15000 − x ) × 5 UV
T 2 W
⇒ 43273 = 1 × x + 75000
4 100 2

⇒ 43275 × 2 = 1 × x + 75000
100 2
∴x = 86,550–75,000
= 11,550
∴ Required Sum borrowed at 3% int. = Rs. 11,550
1
& ” ” ” ” 2 2 % int.= Rs. 15000-11,550 = Rs.3,450.

Example 11. Putul borrowed Rs.75,000 at a certain rate of S.I. for 2 years and Rs.6,000 at
1% higher rate of S.I. than the first for 1 year. He paid Rs.2580 for both loans
as interest in all. Find the two rates of interest.
Solution : Let the original rate of int. be r% p.a.

S.I. on Rs.7500 for 2 years @ r% p.a. = Rs. 75000 × r × 2

100
A/q, rate of int. on 2nd loan = (r+1)%

∴ S.I. on Rs.6000 for 1 year = Rs.

a f
6000 × r +1 × 1
100
= Rs.60 (r+1)
A/q, 150r+60 (r+1) = 2580

∴ r = 2520 = 12%
210
∴ Required rates of int. are 12% & 13%.

Example12. If S.I. on Rs.1800 exceeds the interest on Rs.1650 in 3 years by Rs.45, at the
same rate of interest, find the rate of interest p.a.
Solution : Let the original rate of int. be r% p.a.
Difference of int. on Rs.1800 and Rs.1650 at the rate r% p.a. for

e j
3 years = 1800 × r × 3 − 1650 × r × 3 = Rs.45 (given)
100 100

⇒ 3r × 150 = 45 ∴ r =
450 = 10%
100 45
∴ Required rate int. p.a = 10%.
14 Commercial Mathematics and Statistics

Example 13. The difference in S.I. on a certain sum of money at 14.5% p.a. in 3 years and
4 1 years is Rs.696. Find the sum.
2
Solution : Let the sum be Rs.100
Difference in int. on the sum Rs.100 for 4 12 years and 3 years

e
100 × 29 × 9 100 × 29 × 3
@ 14.5% p.a. = Rs. 2 × 100 × 2 − 2 × 100 j
= 261 − 87 =Rs.
87
4 2 4
Differance (Rs.) Sum (Rs.)
87 100
2
696 x ∴ x = 100 × 2 × 696
87
= Rs. 1600
∴ Required sum = Rs. 1600.
Example 14. A personn borrowed Rs.6400. After 2 years and 3 months he paid Rs.6136
in cash plus a bicycle and hence cleared up the entire amount borrowed. If
the rate of S.I. was 3 12 % p.a., find the value of the bicycle.

FG
7
2 ×2 4
1
IJ
Solution : e
A = P 1+ rn
100 j
= Rs. 6400 1 +
H
100 K
= Rs. 6400e1 + 800 j
63

= Rs. 8×863
= Rs. 6904
A/q, value of bicycle = Rs. (6904–6136) = Rs.768.
Example 15. A man left Rs.1,30,000 for his two sons aged 10 years and 16 years with the
direction that the sum should be divided in such a way that the two sons got
the same amount when they attain 18 years. How much did the elder son get
in the beginning, rate of int. is 12 12 % p.a.?
Solution : His elder son will attain the age of 18 years after 2 years
& his younger son will attain the age of 18 years after 8 years

Let the share of elder son at the beginning be Rs. x

∴ Let the share of younger son at the beginning be Rs. (1,30,000–x)
 Simple and Compound Interest, Annuity 15

e 25 × 2
Amount due to elder son after 2 years = x 1 + 2 × 100 j
= Rs. 5x
4
a fe
25 × 8
Amount due to younger son after 8 years = 1,30,000 − x 1 + 2 × 100 j
= (1,30,000–x)×2
A/q, 5x = 2(1,30,000–x)
4
8 × 1,30,000
∴ x = = Rs.80,000
13
Hence, Share of elder son at the beginning = Rs.80,000.

EXERCISE

1. Sunil borrowed Rs.7500 at 14.5% p.a. for 2 12 years. Find the amount he had to pay
after that period.
(Ans: Rs.10218.75)
2. A sum of Rs.1200 was lent out for 2 years at S.I. The lender got Rs.1536 in all. Find the
rate int. p.a.
(Ans: Rs.14%)

3. In what time Rs.5000 will yield Rs.1100 @ 5 12 %?

(Ans: 4 years)
4. In a certain time Rs.1200 becomes Rs.1560 at 10% p.a. S.I. Find the Principal that will
become Rs.2232 at 8% p.a. in the same time.
(Ans: Rs.1800)
5. A person invested some amount of money at 12% p.a. S.I. for 2 12 years and some
amount at 12.5% p.a. S.I. for 2 years. If he had an amount of Rs. 10,000 in hand and on
such investment earned Rs.2700 in all, find the amount invested in each case.
(Ans: Rs. 4000, Rs. 6,000)
6. A man deposited Rs.5000 on 20th April in a company, paying int. at 2% pa S.I. He
withdrawns Rs.3000 on 15th May and deposited Rs.4000 on 6th June. How much
interest was due to him on 30th June following?
(Ans: Rs.17.21 approx)
16 Commercial Mathematics and Statistics

7. A sum of money amounts to Rs. 4720 in 2 years and Rs.5260 in 3 1 years at S.I. Find
2
the sum and rate of int.
(Ans: Rs.4000, 9%)
8. A person borrowed at the same time Rs.250 and Rs.350 at 6% and 5% pa S.I. respectively
on condition that the entire loan and accrued interest be paid when the amount of both
shall be Rs.730. How long is the loan to continue?
(Ans: 4 years)
9. The rates of S.I. in two banks A and B are in the ratio 5:4. A person wants to deposit his
total savings in the two banks in such a way mat he received equal half yearly S.I. from
both. In what ratio he should deposit his savings in banks A & B?
(Ans: 4:5)

10. If Rs.1680 amounts to Rs.2352 in 7 12 years. In how many years will Rs.1350 amount to
Rs.1782, the rate of S.I. being same in both the cases.
(Ans: 6 years)
11. At what rate of S.I. pa will Rs.1500 produce the same interest in 5 years as Rs.3125
produce in 3 years at 4% pa.
(Ans: Rs.5%)
12. Amit and Bipin borrowed Rs.800 each at the same rate of S.I. for 3 years and 6 years
respectively. If Amit pays back Rs.1052 to clear his debt, find the amount which Bipin
has to pay.
(Ans: Rs.1304)
 Simple and Compound Interest, Annuity 17

COMPOUND INTEREST

DIFFERENCE BETWEEN SIMPLE AND COMPOUND INTEREST :

For every year, S.I. is always calculated on the original principal upto the total period for
which the sum (principal) is used.
But in case of C.I., the interest as soon as it is due after a certain period, is added to the
principal and interest for the succeeding period is based upon the principal and interest
added together. Hence the principal does not remain fixed at the original sum but increases
at the end of each interest period.
Interest period is the period after which, the interest becomes due. A year is generally
taken as interest period, but for practical reasons it may be half-year, a quarter year or month.

CALCULATION OF C.I. WITHOUT USING LOGARITHON :

(Ordinary method)
Example : Find C.I. on Rs.500 for 3 years at 5% pa, interest being compound annually.
Solution : Original Principal = Rs.500
Int. for 1st year = Rs. 25 (5% of Rs.500 = Rs.25)
Principal for 2nd yr. = Rs.525
Int. for 2nd year = Rs.26.25 (5% of Rs.525 = Rs.26.25)
Principal for 3rd yr. = Rs.551.25
Int. for 2nd year = Rs.27.5625 (5% of Rs.551.25 = Rs.27.5625)
Amount at the end of 3rd yr. = Rs.578.8125
Now, C.I. = A-P = Rs.(578.8125-500) = Rs.78.8125
= Rs.78.81
Note:
(i) Calculation should be made upto 4 decimal places.
(ii) When no. of yrs. is large and rate of int. is in fraction then it becomes difficult
to do a problem of C.I. by ordinary method as discussed above. On the other
hand, in such cases, use of logarithms facilitates easy calculation.
PROOF OF COMPOUND INTEREST FORMULA :
Let the principal be Rs. P, no. of years be ‘n’, rate of int. be r% pa, (int. being compounded
annually) & the amount after ‘n’ years be Rs. A.

C.Math(2)–2
18 Commercial Mathematics and Statistics

Let i = Int. on Re.1 for 1 year (ie. i = r )

100
Original Principal = Rs.P
Int. for 1st year on Rs.P = Rs.P.i.
Principal at the beginning of 2nd yr. = P(1+i) = Amt. at the end of 1st yr.
Int. for 2nd year = P(1+i).i
Principal at the beginning of 3rd yr. = P(1+i)+P(1+i)i
= P(1+i)(1+i)
= P(1+i)2 = Amt. at the end of 2nd yr.
& soon
∴ Amount at the end of ‘n’ years will be:
A = P(1+i)n .........................(1)
When int. is payable half yearly, formula (1) reduces to :
2n
e j
i
A= P 1 + 2 .........................(2)

When int. is payable quartaly, (2) reduces to :

4n
e j
i
A = P 1+ 4 .........................(3)

When int. is payable monthly (3) reduces to :

12n
e i
A = P 1 + 12 j .........................(4)

EFFECTIVE RATE OF INTEREST :

If the rate of int. is 5% pa, payable yearly then int. o Rs.100 for 1 year is Rs.5. So that
amount becomes Rs.105 after 1 year.
Again if the int. is payable half-yearly, then the principal becomes Rs.102.50 after first
half-year (6 months). For the 2nd half-year int. will be counted by on Rs.102.50 & hence
total amount will be Rs. (102.50+2.56) = Rs.105.06.
∴ Effective rate (percent per year) = Rs. (105.06–100)
= Rs. 5.06
Note:
5% is known as flat rate or nominal rate where as the true rate i.e. 5.06% is the
effective rate.
 Simple and Compound Interest, Annuity 19

FORMULA FOR EFFECTIVE RATE OF INTEREST :

RSF
Effective rate = 100 1 + Pi IK −1UV
P

TH W
Where, i = rate of int. per unit per period
p = No. of int. periods
DEPRECIATION :
Depreciation is the loss in the value of an asset wear and tear with the passage of time.
Loss in the value of an asset occurs due to constant use or sun rays or due to any of the
natural causes.
In case of depreciation, the principal value is diminished every year a certain amount & in
the subsequent period, the diminished value becomes the principal value.
Thus we find that in case of compound interest, int. is in creasing in every period where
as in case of depreciation value of the asset is degreasing every period at a constant rate.
Hence, the depreciation formula takes the following shape
A = P(1-i)n where, i = Depreciation Re 1 for 1 year
P = Original value of an asset
A = Scrap value
n = No. of yrs. (Periods)
We shall now discuss some problems in connection with the above formula.
TYPE I: TO FIND C.I.
Example 1. Find the C.I., the int. compounded annually on Rs.2500 for 4 years at
3 1 % pa.
2
31
Solution : Here, P = Rs.2500, n = 4 years, r = 3 12 % ∴i = 2 = 0.035 C.I. =?
100
n
We know, A = P(1+i)
⇒ A = 2500 (1.035)4
Taking log on both sides we get
logA = log2500 + 4log 1.035
= 3.3979 + 4×0.0149
= 3.3979 + .0596
= 3.4575
∴ A = anti log 3.4575 = Rs. 2867
Now, CI = A–P = Rs.(2867–2500) = Rs. 367
20 Commercial Mathematics and Statistics

Note:
If nothing is mentioned about the modality of payment of interest, consider int.
compounded annually.
Example 2. Find the C.I. on Rs.800 for 2 years, if int. be payable half-yearly the rate for
first year being 5%pa and for the second year 6% pa.
Solution : Here, amount after 1st year = 800(1.025)2×1 = 800×1.050625
= 840.5000
= 840.50
∴ C.I. for 1st year = Rs.(840.50−800) = Rs.40.50
Amount after 2nd year = 840.5(1.03)2×1 = 840.5×1.0609
= 891.69
∴ C.I. for 2nd year = Rs.(891.69−840.50)

= Rs.51.19 Here, Formula used A= P 1 + i FH IK 2n

∴ Total C.I. for 2nd year = Rs.(40.50+51.19)

= Rs.91.69

TYPE II: TO FIND AMOUNT

Example 3. Find the amount due on Rs.1000 for 4years at 5% pa. C.I.
5
Solution : Here, P = Rs.1000, n = 4 years, i = 100 = 0.05 A =? C.I. =?
We know, A = P(1+i)4
⇒ A = 1000 (1.05)4
Taking on both sides we get
logA = log 1000 + 4log 1.4
= 3 + 4×0.0212
= 3.0848
∴ A = anti log 3.0848 = 1215
∴ Required amount = Rs.1215 & C.I. = A−P
= Rs.(1215−1000)
= Rs.215
 Simple and Compound Interest, Annuity 21

TYPE III: TO FIND PRESENT VALUE OR SUM OR PRINCIPAL

Example 4. What sum of money put out at 4% pa C.I. for 18 years will amount to Rs.10,000?
4
Solution : Here, A = Rs.10,000, n = 8, i = 100 = 0.04 P =?
n
We know, A = P(1+i)
⇒ 1000 = P(1.04)18
Taking on both sides we get
log 10,000 = logP + 18 log 1.04
⇒ logP = 4−0.3060
= 3.6940
∴ P = anti log 3.694 = 4943
∴ Required amount = Rs.4943
Example 5. What sum will amount to Rs.1401.60 in 2 years at 5% pa C.I., payable half-
yearly?
2n
Solution : e j
i
We know, A = P 1 + 2

e.05
⇒ 1401.60 = P 1 + 2 j
2×2
a
= P 1.025f 4

Taking on both sides we get

log 1401.6 = logP + 4 log 1.025
⇒ log 1402 = logP + 4×0.0107
⇒ 3.1467 = logP + .0428
∴ P = Anti log 3.1039 = 1271
∴ Required amount = Rs.1271
TYPE IV: TO FIND RATE OF INTEREST
Example 6. At what rate of interest will Rs.6345 amount to Rs.7288 in 7 years, int. being
compounded annually?
Solution : Here, A = Rs.7288, P = Rs.6345, n = 7, r =?
We know, A = P(1+i)n, int. being compounded annually
⇒ 7288 = 6345(1+i)7
Taking on both sides we get
log 7288 = log 6345 + 7 log (1+i)
⇒ 3.8626 = 3.8024+7 log (1+i)
22 Commercial Mathematics and Statistics

⇒ log (1+i) = 0.0602 = 0.0086

7
∴ 1+i = Anti log 0.0086 = 1.020
∴ 1+i = 1.020−1 = 0.020
Now, i = ∴ r = 100i = 100×.020
= 2%
∴ Required rate of int. = 2%.
Example 7. Find the rate percent at which a certain sum of mney invested at C.I. doubles
itself in 17 years?
Solution : Let the sum = Rs.100 = P
A/q, A = Rs.200, here n=17, r=?
We know, A = P(1+i)n
⇒ 200 = 100(1+i)17
⇒ 2 = (1+i)17
Taking on both sides we get
log2 = 17 log (1+i)
⇒ 0.3010 = 17 log (1+i)
∴ log (1+i) = 0.3010 = 0.0177
17
∴ i = 0.042
Now, r = 100i = 100×.042
= 4.2%
∴ Required rate of int. = 4.2%.
Example 8. What is the rate percent pa if Rs.6000 amounts to Rs.10,000 in 15 years, int.
being compounded half-yearly.
Solution : Here, P=Rs.6000, A=Rs.10,000, n=15, r=? (Int. compounded half-yearly)
2n
e j
i
We know, A = P 1 + 2

2 ×15
i
⇒ 10,000 = 6000 1 + 2 e j
30
e j i
⇒ 10 = 6 1 + 2

Taking on both sides we get

 Simple and Compound Interest, Annuity 23

log10 = log6 + 30 log 1 +e j

i
2

⇒ 10 = 0.7782+30 log 1 +e j
i
2

⇒ 0.2218 = log e1 + j
i
30 2

⇒ 0.0074 = log e1 + i j
2
∴ 1 + i =Anti log 0.0074 = 1.017
2
⇒ i = 0.017×2 = 0.034
∴ Required rate of int. = 3.4%.
TYPE V: TO FIND TIME
Example 9. In what time will a sum of money double itself at 5% pa C.I. payable half-
yearly?

Solution : Let the sum be Rs.100 = p (say), Here, i = 5 = 0.05 (int. compounded half
100
yearly) A/q, amount = Rs. 200 = A (say)
2n
e j
We know, A = 1+ i
2
2n
e j
⇒ 200 = 100 = 1 + .05 = 100(1.025)
2
2n

2n
⇒ 2 = (1.025)
Taking log on both sides we get
log 2 = 2n log 1.025
⇒ 0.3010 = 2n×0.0107

∴ n = 0.3010
=
3010 ≅ 14.2 yr.
.0214 214

ILLUSTRATIVE EXAMPLES :
Example 10. The difference between C.I. & S.I. on a sum of money lent for 2 years at 5%
pa is Rs. 27.50. Find the sum that was lent.
Solution : Let the sum be Rs. 100.
S.I. for 2 years @5% pa = Rs.10, Here, i = 5 = 0.05, n = 2 yrs.
100
24 Commercial Mathematics and Statistics

Let us find amount for 2 yrs. @5% pa

2
We know, A = (1+i)
2
= 100 (1.05)
= 100 (1.1025) = Rs. 110.05
Now, CI = A-P = Rs. (110.25-100) = Rs. 10.25
∴ Difference let the CI & S.I. = Rs. (10.25-10) = Rs.0.25
Difference (Rs.) Sum (Rs.)
0.25 100
27.50 x
100 × 2750
∴ x = 100 × 27.50 =
0.25 25
= 11,000
∴ Required Sum = Rs. 11,000.
Example 11. The S.I. and C.I. on a certain sum of money for 2 years at a certain rate are
Rs. 90 and Rs. 93 respectively. Find the sum and the rate.
Solution: S.I. for 1 year = Rs.45, Difference of C.I. & S.I. = Rs.3
∴ Interest on Rs. 45 for 1 year= Rs.3
∴ Interest on Rs. 100 for 1 year = 3 × 100 = Rs. 6 2
45 3

∴ Rate of Interest = 6 2 %
3
p. r. n.
Again,I=
100
20
p. 3 × 2
= 90 = ∴P = Rs.675
100
∴ Required Sum = Rs.675 & Rate of Int. = 6 2 % pa.
3

Example 12. A sum of money double itself in 12 1 years at a certain rate of S.I. How long
2
will it take to double itself at the same rate of C.I.?
Solution: Let the sum be Rs.100 = P

A/q, A = Rs.200, n = 25 year, Let the rate be r% pa. i = r

2 100
∴ S.I. = I = Rs. (200-100) = Rs.100
 Simple and Compound Interest, Annuity 25

p.r.n.
Now, I =
100
100 × r × 25
⇒ 100 = 2 ∴ r = 8%
100
Again, P = Rs.100, A=Rs.200, r=8% pa C.I., n=?
∴ i = 8 = 0.08
100
Now, A = P(1+i) n

⇒ 200 = 100 (1.08)n

⇒ 2 = (1.08)n
Taking log on both side we get
log2 = n long 1.08
⇒ 0.3010 = n×0.0334 ∴ n = 3010
334
~ 9 years
∴ Required Time = 9 years (approx).
Example 13. C.I. on a certain sum of money for 3 years @10% pa. is Rs.993. What would
be S.I. at the same rate on the same sum for the same time?
Solution: A/q, P(1+0.10)3–P = 993
⇒ P{(1.1)3–1} = 993
⇒ P{(1.1)3–1}
⇒ P{0.331)} = 993 ∴ P = 993000 = Rs.3000
331
∴ Sum = Rs.3000
p.r.n.
Now, I = = Rs. 3000 × 10 × 3 = Rs.900.
100 100
∴ Required S.I. = Rs.900.
Example 14. C.I. for 2nd year on a certain sum at 4% pa is Rs.25. Find C.I. for 3rd year.
Solution: Let the sum be = Rs.100
Int. for 1st year = Rs. 4
Principal for 2nd year = Rs. 104
Int. for 2nd Year = Rs. 4.16 (4% of Rs. 104)
Principal for 3rd year = Rs.108.16
Int. for 3rd year = Rs.4.3264 (4% of Rs.108.16)
26 Commercial Mathematics and Statistics

Int. for 2nd yr. (Rs.) Int. for 3rd yr. (Rs.)
4.16 4.3264
25 x

∴ x = 4.3264× 25 = 43264 × 25
4.16 41600

= 43264
1664
= Rs.26
Hence, Required 3rd yr. int. = Rs.26.
Example 15. A sum of money amount to Rs.8820 after 2 years and Rs.9261 after 3 years
at a certain rate of C.I. Find the sum and rates of interest.
Solution: Amount after 3 years = Rs. 9261
Amount after 2 years = Rs. 8820
∴ Difference = Rs. 441
∴Interest on Rs. 8820 for 1 year = Rs. 441 (Note this step)

∴Interest on Rs. 100 for 1 year = 441 × 100 = Rs. 5

8820
∴ Rate of int. = 5% pa

Again, A = P(1+i)n i = 5 = 0.05

100

8820 = P(1.05)2 ∴ P= 8820

1.1025

= 8820.0000
11025
= Rs. 8000
∴ Sum = Rs.8000 & rate of int. = 5%.
Example 16. Borrowing a certain sum of money at 4% S.I., a person invested the entire
amount at 5% C.I. for 3 years and gained Rs. 376.25. Find the sum borrowed.
Solution: Let the sum borrowed by = Rs.100
S.I. on Rs.100 for 3 years = Rs.4×3 = Rs.12
C.I. for 3 years @5% on Rs.100 = 100(1.05)3−100
= Rs.15.76
∴ Gain = Rs.(15.76−12) = Rs.3.76
 Simple and Compound Interest, Annuity 27

Gain Sum borrowed (Rs.)

3.76 100
376.25 x

∴ x = 100 × 376.25
3.76

= 100 × 376.25 = Rs.10000

376
∴ Sum borrowed = Rs.10,000 approx.

EXERCISE

1. What sum will amount to Rs.1000 in 12 years at 4 1 % pa CI?

2
(Ans: Rs.589.90)
2. What sum will amount to Rs.2149 in 5 years at 12% pa C.I. payable half yearly.
(Ans: Rs.1200)
3. The difference between S.I. & C.I. on a certain sum put out for 5 years at 3% was
Rs.46.80. Find the sum
(Ans: Rs.5200)
4. If the population of a town increases every year by 2% of the population at the beginning
of that year, in how many years will the total increase of population be 40%?
(Ans: 17 years)
5. Prabin borrowed Rs.6000 from a money lender but he could not pay any amount in a
period of 4 years. Accordingly, the money lender demanded now Rs.7500 from him.
What rate ercent pa C.I. did the lender require for lending his money?
(Ans: 5.7%)
6. C.I. on a sum at 5% for the 3 years is Rs.158. Find C.I. on the same sum at 6% for 2
years.
(Ans: Rs.124)
7. C.I. & S.I. on a certain sum of money for 2 years are respectively Rs.920.25 and Rs.900.
Find the sum and rate of interest.

(Ans: Rs.10000, 4 1 % )
2
28 Commercial Mathematics and Statistics

8. A sum of money invested at C.I. payable yearly amounts to Rs.10816 at the end of 2nd
year and to Rs.11248.64 at the end of third year. Find the sum and rate of interest.
(Ans: Rs.10,000 & 4%)
9. A man left Rs.18,000 with the direction that it should be divided in such a way that his
3 sons aged, 9,12 & 15 years should receive the same amount when they reach the age
of 25 years. If the rate of C.I. be 3 1 % pa, what should each son receive when he is 25
2
years old?
(Ans: Rs.9,341)
10. A machine depreciates at the rate of 10% of its value of the beginning of a year. The
machine was bought for Rs.5810 & the scrap value realised, when sold, was Rs.2250.
Find the number of years the machine was used.
(Ans: 9 years approx
11. A machine depreciates 10% pa for 1st two years and then 7% for the next three years,
depreciation being calculated on the diminishing value. If the value of the machine be
Rs.10,000 initially, find the effective rate of depreciation & the depreciated value of the
machine at the end of 5th year.
(Ans: 6.968% & Rs.3484)
12. Find the difference but S.I. & C.I. on Rs.1000 for 2 years at 4% payable quarterly.
(Ans: Rs.2)
13. In how many years Rs.3495 will amount to Rs.4680 at 6% pa C.I.?
(Ans: 5 years approx)

Important Note :
When rates of interest are different for different periods
FG r IJ
1
= P 1 + 100 , r1 → rate of int. for 1st year
(1) Amount after 1 year H K
(2) Amount after 2 year
F r IF r I
= PGH 1 + 100 JK GH1 + 100 JK , r → rate of int. for 2nd year
1 2
2

(3) Amount after 3 year

F r IF r IF r I
= PGH 1 + 100 JK GH1 + 100 JK GH 1 + 100 JK , r → rate of int. for 3rd year
1 2 3
3
 Simple and Compound Interest, Annuity 29

ANNUITY
INTRODUCTION :
Items like car, land and building, Computer, refrigeator, motor-bike etc are costly. If is not
possible to buy them by an ordinary customer paying the total cost at one time. For this
purpose, the traders offer varios schemes to customers to promote sales of such costly items.
Instead of paying the cost of items in full at the initial stage the customers are given the
oportunity to pay the price on instalment basis and as such the customers are attracted to
such schemes. The buyer and the seller are both benefitted. The buyer gets the item by
paying small amount of money in instalments and enjoy the benefit. In addition, the buyer
utilises the assets in earning revenue & he can pay the instalments out of such earnings.
Thus, the buyer can pay the instalment while he earns. On the other hand, these schemes
help promotion of sales of such costly items. This sales model makes the sale of costly items
affordable to the ordinary buyers.
The services of small amount of money paid periodically by the buyer to the seller is
called Annuity payments.

DEFINITION OF ANNUITY :
An annuity is a series of regular annual payments of a fixed sum. Instead of paying a
lump-sum annually, the interval of payment may be subdivided into 6 months, 3 months or
even one month. This subdivision of interval may be helpful to the annuitant for easy
payments. The person who receives the annuity is called Annuitant.
The total time for which an annuity is to continue is called its duration. Each equal payment
is called instalment. In case of annuity, C.I. is charged.
TYPES OF ANNUITIES :
Broadly speaking, annuities are of three types viz (a) Annuity certain, (b) Perpetual annuity
&(c) Annuity Contingent.
(a) Incase of Annuity certain, instalments are paid upto a finite and definite number of
years. Annuity certain are of three types :
(1) Annuity immediate
(2) Annuity due
(3) Deferredannuity.
Incase of Annuity immediate, instalments are paid at the end of each year. Where as,
incase of Annuity due, instalments are paid at the beginningof each year.
30 Commercial Mathematics and Statistics

(a) Deffered annuity : It is such an annuity which does not begin until the lapse of a
certain period & after it starts, it continues regulary upto a certain period. eg. if an annuity is
deferred form years, then 1st instalment is given after (m+1). the year & may continue upto
‘n’ years. But if payment continues for ever, the annuity is called deferred perpetuity.
(b) Perpetual annuity or Perpetuity : If an annuity is to continue for ever, it is known
as perpetual annuity eg. corporation tax, land taxes etc. are perpetual annuities.
(c) Contingent annuity : In this case, annual payments are to continue till the happening
of some contingent event such as death of annuitant, marriage of daughter etc.

WHAT IS SINKING FUND?

It is a fund created by depositing regularly a certain sum of money upto a certain period
in order to discharge a future liability with accumulated fund. Such a fund is known as
Sinking Fund.
SOME IMPORTANT SYMBOLS USED IN ANNUITY :
A = Value of each instalment.
n = No. of years (Periods)
i = Insterest on Re 1 for 1 year, where rate of int. is r% pa.

ie. i = r
100
v = Present value of an annuity.
= Sum of present values of all instalments.
M = Amount of an annuity
= Sum of amounts of all instalments.
Some formulaes on Present values and Amount deduced from sum of a GP.
What is GP?
Geomatric progression or GP is a series of quantities, called terms, when the ratio of any
term (except the first) to the preceeding one is constant. This ratio is known as common ratio
(CR)
eg (1) Series is : 1,3,9,27, ....... here 1st term = 1 & CR = 3
(2) Series is : 1 , 1,2,4,.......... here 1st term = 1 , & CR = 2
2 2
2 1 1
(3) Series is : 3 , 3 , 6, ........... here 1st term = 2 , & CR = 1
3 2
General from of a GP is a,ar, ar2,......., here 1st term = a, CR = r, nth term = arn-1 = tn
 Simple and Compound Interest, Annuity 31

Sum to n terms of general GP is :

Sn =
e
a 1 − rn j , when r<1
1− r

=
e
a rn − 1 j , when r>1
r −1
AMOUNT OF AN ANNUITY (left unpaid for n years)
Let value of each yearly instalment be = Rs. A
i = Int. on Re 1 for, one year ,r% being rate of C.I.
Let the annuity be left inpaid for n years.
Now, 1st instalment payable after one year earns int. for (n–1) years, as it is due at the end
of 1st year. Similarly the second instalment earns int. for (n–2) yrs. & so on. The last instalment
earns no int.
∴ Amount of 1st instalment = A (1+i)n–1
” ” 2nd ” = A(1+i)n–2
.........................................................................
” ” last instalment = A
Now,M = Sum of above amounts = Amount of the annuity
= A(1+i)n–1+A(1+i)n–2+ ................ + A(1+i)2+A(1+i)+A
= A[1+(1+i)+(1+i)2+ ................ + A(1+i)n–1], writting in reverse order.
The series within third bracket is a GP with
1st term = 1 & CR = (1+i)>1

∴ M = A.
{b g − 1}
1. 1 + i
n

1+ i − 1

This, M = i
RSb g UV
A 1+ i n − 1
.............(1), when int. is payable yearly..
T W
Note:
(1) is Amount formula for immediate annuity & it is also the formula for sinking
fund.
AMOUNT OF AN ANNUITY DUE :
The formula is : M = (1+i). i
RSb g UV
A 1+ i n − 1
.................(2) (Here, instalment is payable
T W
yearly)
32 Commercial Mathematics and Statistics

Note:
Here payments are made at the beginning of the period so that each instalment
earns int. for a period more. i.e. The 1st instalment earns int. for n years, 2nd
instalment for (n–1) yrs. & so on.)

PRESENT VALUE OF IMMEDIATE ANNUITY FOR N YEARS

Let the value of each yearly instalment be Rs. A & int. on Re 1 for 1st yr = i.
Then the present values of 1st, 2nd, 3rd, ............ nth instalments are :
A , A , A ,.........., A
b g b g
1+ i 1+ i 2 1+ i 3 1+ i b g n

Here, A = P1(1+i)

∴ P1 = A
1+ i
A = P2(1+i)2
A
∴ P2 = 1 + ib g 2

P1, P2 etc. etc. are present values of 1st, 2nd,....... instalments.

∴ V = Sum of above present values = Present value of the annuity.

= A + A +.........+ A
(1 + i ) (1 + i )2 (1 + i)n

=
LM
A 1 + 1 + 1 +.............+ 1 OP
(1 + i )N1 + i (1 + i) 2 (1 + i )n −1 Q
1
The series within third bracket is a GP with 1st term = 1 & CR = (1 + i ) <1.

LM1. R1 − 1 UV OP
A M ST a1 + if n
W PP
=
a1 + if MM 1 − (1 +1 i) PP
MN Q
∴ V
A
= i 1−
LM
1 OP
, after simplification .......................(3)
N
(1 + i ) n Q
 Simple and Compound Interest, Annuity 33

Another form :
A
V = i 1− 1+ i b g −n
.......................(4)
Formula for Present value of Annuity due will be :
A b g b g
V = i 1+ i 1− 1+ i
−n
from formula (3)

PRESENT VALUE OF PERPETUITY :

The formula is : V = A 1− 0 =
i
Al q i

∴ V = A .......................(5)
i

PRESENT VALUE OF DEFERRED ANNUITY :

(deferred for m years & to continue for n years)
Since the annuity begins at the end of m years, the first instalment is due at the end of
(m+1) years, second instalment is due at the end of (m+2) years & so on
Where,
A = Value of each instalment
i = Int. on Re. 1 for 1 year
A
∴ Present value of A at the end of (m+1) years = 1 + i b g m+1

A
” ” ”” ” ” ” ” (m+2) b g
” = 1+ i m+2 & so on.

∴ Present value ‘V’ of all instalments i.e–

A A A
= m +1 + m + 2 +.....+
(1 + i) a f
1+ i (1 + i) m + n

∴ V= A
a f
1+ i n −1
a f
i 1 + i m + n .......................(6) after simplification

PRESENT VALUE OF DEFERRED PERPETUITY :

The formula is :

V= A . 1
i 1+ i a f m .................(7)

C.Math(2)–3
34 Commercial Mathematics and Statistics

Note:
Formula for Amount of deferred annuity will be :

M= A
LM a f OP
1+ i n −1
i 1+ i mNa f Q
N.B. : (i) All the above formula are based on yearly instalments of the instalments are
paid half yearly, quarterly in monthly then replace ‘i’ by i & n by 2n; i by i
2 4
& n by 4n and i by i & n by 12 n respectively in all the formula upto (4)
12
mentioned above.

(ii) An annuity of Rs. 500 means the value of each instalment is Rs. 500.

SOME EXAMPLES ON AMOUNT AND PRESENT VALUE :

TYPE I : TO FIND AMOUNT
Example 1. Find the amount of an annuity of Rs.100 in 20 years allowing C.I. @ 4 1 %
2
pa. Given log10.45=1.0191163 and log0.024117=2.3823260.
Solution: It is a case of amount for immediate annuity as nothing is mentioned about
the modality of payment of instalments, we shall consider that the instalments
are paid at the end of each year.
4 12
Here, A=Rs.100, i= =0.045, n=20, M=?
100

We known, M = i {b g − 1}
A 1+ i n

= 0.045 {b1045
. g − 1} , Let x
100 20
= (1.045)20
∴ log x = 20 log1.045
= 20 × 0.0191163
= 0.3823260

b g
Now, M = 100 1.4117 ∴ x = anti log 0.3823260
0.045
= Rs. 3137.12
= 2.4117 [from given data, Note this step]
∴ Required amount = Rs.3137.12.
 Simple and Compound Interest, Annuity 35

Example 2. Find the amount of an annuity of Rs.800 payable at the end of each 3 months
for 3 years @8% pa C.I. compounded quartely.

Solution: Here, A=Rs.800, i= 8 =0.08, int. compounded quartely, n=3 years, M=?
100

We know, M =
RSe j − 1UV
A 1+ i
4n
i
4 T 4 W
= 0.02 {b102
800 . g − 1
} 4×3
Let x = (1.02)12

800 .
= 0.02 102 {b g − 1} 12
∴ log x = 12 log1.02

= 80000 0.269
2
b g = 12 × 0.0086

= 40000 (0.269) = 0.1032

∴ M = Rs. 10760 ∴ x = anti log 0.1032
∴ Required amount = Rs.10760. = 1.269

TYPE II : TO FIND PRESENT VALUE

Example 3. Aman retires at the age of 60 years & his employer gives him a pension of
Rs.12000 a year paid in half-yearly instalments for the rest of his life.
Reckoning his expectation of life to be 13 years and that interest is at 4% pa,
payable half yearly, what single sum is equivalent to his pension?
Solution: Here half yearly instalment = Rs.6000 = A

i = 4 = 0.04, int. payable half yearly

100
n = 13 years, V = ?

We have, V
ARS e j UV
i
= i 1− 1+ 2
−2 n

T2 W
= 0.02 {1 − b102
. g }
6000 −26

= 300000 {1–(1.02)–26} Let x = (1.02)–26

∴ log x = –26 log1.02
36 Commercial Mathematics and Statistics

∴ M = 300000(1−0.5975) = –20 × 0.0086

= 300000×0.6025 = –0.2236
= Rs.1,80,750 = –1+1–0.2236
= 1.7764
∴ x = anti log 1.7764
= 0.5975
∴ Required amount = Rs.1,80,750.

Example 4. What sum will buy an annuity of Rs.60 payable for 4 years, the rate of int.
being 3 1 % pa?
2
Solution : Here, Price of an annuity is the present value of the annuity.
Here, A = Rs.60, n = 4, i = 0.035, V = ?
Apply, V formula for immediate annuity.
Ans : Rs. 219.77.

Example 5. A man borrows Rs.10,000 on condition to repay with C.I. @5% pa by annual
instalments of Rs.1000 each. In how many years will the debt be paid off?
Solution: Here, V = Rs.10,000, A = Rs.1000, i = 0.05, n = ?

(Note: Borrowing a sum is the present value of an annuity.)

We have, { b g }
V = Ai 1 − 1 + i
−n

1000
{ b g }
⇒ 10000 = 0.05 1 − 105
.
−n

⇒ 10×.05 = 1–(1.05)–n
∴ (1.05)–n = 1–0.5=0.5

Taking log on both sides we get

–n log 1.05 = log 0.5 = (–1+0.6990) = –0.3010
⇒ n×0.0212 = 0.3010

∴ n = 3010 = 14.2 years approx.

212
∴ Required time = 14.2 years approx.
 Simple and Compound Interest, Annuity 37

Example 6. Find the present value of an annuity of Rs.75 per year for 15 years deferred
for 7 years hence at 5%pa.

Solution: Here, m = 7, n = 15, A = Rs.75, i = 5 = 0.05, V = ?

100
n
(1 + i ) − 1
We have, V = Ai .
(1 + i )m + n
15
(1.05) − 1
Now, V = 75 .
a f
0.05 1.05 7+15

b g
75 1.05 − 1
15

= 0.05 . Let x = (1.05)15

b g
1.05
22

= 7500
5
× 1.08
2.927 ∴ log x = 15 log1.05

= 755××108000
2927 = 15 × 0.0012
∴ V = Rs.553 = 0.3180
∴x = anti log 0.318
= 2.080
Let y = (1.05)22
∴log y = 22 log 1.05
= 22 × 0.0212
= 0.4664
∴y = anti log 0.446
= 2.927
Example 7. A man deposits Rs.1200 in a bank at the end or each year @5% pa C.I. what
would be his deposit after 15 years?
Solution : Hint: Here, A=Rs.1200, i=.05, n=15, M=?
(Ans: Rs.256920)
Example 8. The cost of a computer is Rs.1,00,000 & its life is estimated to be 20 years.
The computer is expected to cost more by 20% over its Present cost afte 20
years. Find the sum to be invested every year at 5% pa C.I. for 20 years to
replace this computer.
38 Commercial Mathematics and Statistics

Solution: Here, Here, M= Rs. 1,00,000 + 20% of Rs.1,00,000

= Rs. 1,20,000

i = 5 = 0.05, n = 20;
100

{b g }
Use: M = Ai 1 + i − 1
n

Ans : Rs. 3625.38.

Example 9. A man wants to purchase a car for Rs.1,00,000. The contract is that he will
pay Rs.60,000 cash & the balance in 20 equal annual instalments with 5%
C.I. pa. Find the amount to be paid annually. (Given: (1.05)–20 = 0.3767)
Solution: Here, V = (1,00,000–60,000)
= Rs. 40,000
n = 20, i = .05, A=?

{ b g }
Apply: V = Ai 1 − 1 + i
−n

Ans: Rs. 3208.73.

Example 10. A machine costs a company Rs.52,000 & its effective life is estimated to be
25 years. A sinking fund is created for replacing the machine by a new model
at the end of its life time, when its scrap realises a sum of Rs.2500 only. The
price of the new model is estimated to be 25% more than the price of the
present one. What amount should be retained out of profit at the end of each
year for the sinking fund, if it accumulates 3.5% pa CI.

Solution: Hint: M = Rs. (52,000+25% of 52,000)–Rs.2500

= Rs. 40,000
i = 0.035, n = 25, A=?

{b g }
Use: M = Ai 1 + i
n
−1

Ans: Rs. 1610.82.

Example 11. A firm anticipates a capital expenditure of Rs.5,00,000 for a new equipment
in 10 years. For this purpose they kept aside Rs.35,000 out of profit at the
end of each year. Find the surplus amount (if any) after in curring the
expenditure if int. is accumulated at 8% pa CI.
 Simple and Compound Interest, Annuity 39

Solution: Hint: Anticipated Expenditure = Rs. 5,00,000 (desired)

n = 10, i = 8 = 0.08, A = Rs. 35,000

100
Let us find the amount of annuity of Rs.35,000 for 10 years @8% pa CI for
10 years.

M {b g }
= Ai 1 + i − 1
n

0.08 {
= 35000 b108
. g − 1}
10

= 35000
8
b1158
. g Let x = (1.08)10

= 3500 × 1158 ∴ log x = 10 log1.08

8
= Rs.5,06,525 = 10 × 0.0334
= 0.334
∴ x = anti log 0.334
= 2.158
Thus we find that after incurring the expenditure of Rs. 5,00,000, surplus will be
= Rs.6625.

EXERCISE

1. Calculate the present value of an annuity of Rs.1200 per annum for 12 years at
8% pa CI.
(Ans: Rs.9036)
2. Find the amount of an immediate annuity of Rs.100 pa left unpaid for 10 years allowing
5% pa CI.
(Ans: Rs.1258)
3. What sum will buy an annuity of Rs.1050 for 4 years, the rate of int being 3.5% pa CI?
(Ans: Rs.3846)
4. A man decides to deposit Rs.5000 at the end of each year in a bank at 5% pa CI. What
will be his total accumulation at the end of 15 years?
(Ans: Rs.1,08,000)
40 Commercial Mathematics and Statistics

5. A limited company intends to create a depreciation fund to replace, at the end of 25th
year, assets costing Rs.1,00,000. Calculate the amount to be retained out of the profit’s
every year if int. rate is 3% pa.
(Ans: Rs.2,755)
6. A machine costs the company Rs.97,000 & its effective life is estimated to be 12 years.
A fund is created for replacing the machine at the end of its effective life time. If scrap
realises Rs.2000 only, what amount should be retained out of the profit at the end of
each year to accumulate at 5% pa CI.
(Ans: Rs.5960 approx)
7. A man borrows Rs.3000 at 6% pa CI and promises to pay off the loan in 20 annual
payments beginning at the end of first year. What is the annual payment necessary?
(Ans: Rs.261.57)
8. A person wishes to buy a printing machinery valued at Rs.17,000. He is prepared to
pay now Rs.9000 & the balance in 8 equal annual instalments at 3 1 % pa CI. How
2
much should he pay annually?
(Ans: Rs.1167 approx)
9. A machine is bought on instalment basis, such that Rs.5,000 is to be paid on signing the
contract and four yearly instalments of Rs.3000 each payable, at the end of 1st, 2nd,
third and fourth year. If int. cost is charged at 5% pa CI, what should be the cash down
price?
(Ans: Rs.15,644 approx)
10. A man deposits his whole fortune Rs.20,000 in a bank at 5% pa CI & settles to withdraw
Rs.1800 per year for this personal expenses. If he begins to spend from the end of the
first year and goes on spending at this rate, show that he will be ruined before the end of
17th year.
11. A man borrowed some money and paid back in 3 equal annual instalments of
Rs.21,600 each. What sum did he borrow, if int. charged is 20% pa CI? Find the
interest charged.
(Ans: Rs.45511.20 & Rs.19288.80)
12. What sum should be invested every year at 8% pa CI for 10 years to replace plant
and machinery which is expected to cost then 20% more than its present cost of
Rs.50,000?
(Ans: Rs.4142)
 (41)

LINEAR INEQUALITIES
UNIT-2
& THEIR GRAPHS
Let a and b be two real numbers. Then a is greater than b if a–b is positive. In symbol,
a>b if a–b>0. For example, if a = 2, b = –1 then a–b = 2–(–1) = 3>0. So a>b i.e. 2>–1.
Similarly, a is less than (or smaller than) b if a–b is negative, i.e. a<b if a–b<0. For
example, if a = –5, b=–3, then a–b = –5–(–3) = –2<0
∴ a<b i.e. –5<–3.
Further a > b means either a = b or a>b and a< b means either a = b or a<b.
On the number line, for any two real numbers a and b, a>b means a line on the right of b
and a<b means a line on the left of b.
There are two types of inequalities (i) Absolute inequality and (ii) Conditional inequality.
If an inequality is true for all values of the variable, then the inequality is said to be an
absolute inequality. For example, if x∈R then x2>0 is an absolute inequality. Because we
know that for any real number x, x2>0. But the inequality like 5x>7 is a conditional inequality,
as we see that 5x > 7 if x > 7 . So this inequality is true for real numbers greater than 7 .
5 5
SOME PROPERTIES OF INEQUALITIES :
If a, b, c ae real numbers, then
(i) a > b and b > c ⇒ a > c
(ii) a > b ⇒ a+c > b+c
(iii) a > b and c> 0 ⇒ ac > bc
(iv) a > b and c < 0 ⇒ ac < bc
Proof : (i) We have a–c = (a–b)+(b–c)
Since a > b, b > c, therefore a–b > 0, b–c > 0
∴ (a–b)+(b–c) > 0
Thus a–c > 0
∴ a>c
(ii) (a+c) – (b+c) = a–b
>0 [  a > b)
∴ a+c > b+c
(iii) ac–bc = (a–b)c
>0 [ a > b ⇒ a–b > 0 also c > 0 given)
∴ ac > bc
(iv) ac–bc = (a–b)c
<0 [  a > b ⇒ a–b > 0 but c < 0 given)
∴ ac < bc
42 Commercial Mathematics and Statistics

LINEAR EXPRESSIONS, LINEAR EQUATIONS AND LINEAR INEQUATIONS

An expression of the type ax+b (a ≠ 0) is said to be a linear expression in one variable.
A linear expression in two variables is of the form ax+by+c (a ≠ 0, b ≠ 0). A linear expression
in three variables is of the form ax+by+cz+d (a ≠ 0, b ≠ 0, c ≠ 0) and so on.
When a linear expression is equated to a constant (usually the number zero), then it is said
to be a linear equation.
A linear equation in two variables x and y always represents a straight line. Thus the
graph of the equation ax+by+c=0 (where a and b are not simultaneously zero) is a straight
line.
An inequality of the type ax+b > 0 or ax+b < 0 or ax+b > 0 or ax+b < 0 (a ≠ 0) is a linear
inequality (or a linear inequation) in one variable.
An inequality of the type ax+by+c > 0 or ax+by+c < 0 or ax+by+c > 0 or ax+by+c < 0
(where a and b are not simultaneously zero) is called a linear inequality (or a linear
inequation) in two variables.
GRAPHICAL REPRESENTATION OF LINEAR INEQUATITIES :
When we are to draw the graph of a linear inequality in one variable, we use the number
line. This is illustrated with the help of the following examples.
Example 1: Draw the graphs of the following inequations in one variable :
(i) x > 2 (ii) 2 < x < 7 (iii) 2x+1 > 0
Solution : (i) Since x > 2, so x may take the value equal to 2 and any value greater than 2.
So every point on the number line which lies on the right of 2 (including 2)
satisfies the inequation x > 2.
A B

-3 -2 -1 0 1 2 3 4 5
Hence the required graph is the ray → (the shaded portion of the number line)
AB
(ii) Here x > 2 and x < 7. So all values greater than 2 but less than 7 will satisfy
the given inequality.

-2 -1 0 1 2 3 4 5 6 7
So the graph of the given inequation is the shaded portion ofthe number line
(excluding the points 2 and 7)
(iii) 2x+1 > 0
⇒ 2x > –1
⇒ x > −1
2
 Linear Inequalities & their Graphs 43

So all values greater than − 1 will satisfy the given inequation.

2

1
-2 -1 2 0 1 2
Hence the graph of the given inequation is the shaded portion (excluding the point − 1 )
2
of the number line.
However we may consider an inequation in one variable as an inequation in two variables
also. For example, if we consider the inequation x > 2 as a linear inequation in two variables
x and y then it will mean that x > 2 and y can take any value (positive, negative and zero).
Example 2: Let us draw the graph of the inequation x > 2 in the coordinate plane (i.e. xy–
plane).
Solution : First we shall draw the graph of the equation x=2 in he xy–plane. The line
AB parallel to the y-axis at a distance of 2 units from the y-axis will represent
the graph of the equation x=2.

Y A

X/ O X

Y/ B
Scale: 1 big division=1 unit
44 Commercial Mathematics and Statistics

The line AB divides the coordinate plane into two parts. For all points to the left of AB,
x < 2; for all points to the right of AB, x > 2 and fo all points on the line AB, x = 2.
Hence the graph of the inequation x > 2 is the shaded portion in the xy–plane to the right
of the line AB including the line AB.
Note:
The graph of x > 2 is the shaded portion to the right of the line AB excluding the
line AB.
Example 3: Draw the graph of y < 3 in the xy–plane.
Solution: We shall first draw the graph of the equation y = 3 in the xy–plane.

y
Scale: 1 big
division = 1 unit

A B

x/ O x

y/

The graph of y = 3 is the line AB paralled to x–axis at a distance of 3 units from the x–
axis.
Now, above the line AB, y > 3 and below the line AB, y < 3 but on the line AB, y = 3.
Hence the graph of y < 3 is the shaded space below the line AB, excluding the line AB.
Example 4: Draw the graph of x > y.
Solution: First we shall draw the graph of x = y ..................(i)
Some pairs of values of x and y satisfying–
 Linear Inequalities & their Graphs 45

(i) are as follows : Scale: 1 big Y B

x 0 1 2 division = 1 unit
y 0 1 2

Plotting these points on

the graph paper and joining
them we get the line AB as
the graph of x = y.
Now the line AB
divided the xy–plane into
O
two parts. In the shaded
X/ X
portion, for all points x > y.
But on the other side of the
A
line AB, for all points x < y.
Hence the graph of the
given inequation is the
shaded space (excluding
the line AB) as shown in the figure.
Example 5: Draw the graph of the inequation x+3y–2 < 0
Solution : First we shall draw the graph of the equation x+3y–2 = 0 ...............(i)
From (i) y = 2 − x
3 Y
Some pairs of values of x
and y satisfying (i) are as
follows :
x 2 –1 5 A
y 0 1 –1
X/ X
Plotting these points on a
O
graph paper and joining them
we get the line AB as the graph B
of the equation (i)
Now,
Y/
x+3y–2 < 0 ⇒ y < 2 − x
3
We see that for all points Scale : 1 big division= 1 unit
above the line AB,
46 Commercial Mathematics and Statistics

y > 2 − x and for all points below AB, y < 2 − x .

3 3
Hence the graph of the given inequation is the shaded space below the line AB , excluding the
line AB .
Example 6 : Solve graphically :
3x+y = 6
2x+3y–12 = 0
Solution : First we shall draw the graph of the equations
3x+y = 6 .................. (i)
2x+3y–12 = 0 .................. (ii)
From (i) y = 6–3x
Some pairs of values of x and y satisfying (i) are
x 0 2 1
y 6 0 3
Plotting these points on a graph paper and joining them we get the line AB as the graph of the
equation (i)

A Y Scale : 1 big
C division= 1 unit
P

X/ X
O Q
D

Y/ B
 Linear Inequalities & their Graphs 47
Now, 3x+y > 6
⇒y > 6–3x
For all points to the right of AB, y > 6–3x.
Hence the graph of the first inequation is all the points to the right of the line AB (excluding the
line AB).

Again from (ii) y = 12 − 2x

3
Some pairs of values of x and y satisfying (ii) are
x 0 6 3
y 4 0 2
Plotting these points on the same graph paper (with the same scale) we get the line CD as the
graph of the equation (ii)

Now, 2x+3y–12 > 0 ⇒ y > 12 − 2x .

3
Therefore the graph of the second inequation is all the points above the line CD (excluding the
line CD).
The common portion of the graphs of two inequation lies within the unbounded region APSQD
as shown in the figure by double crossing lines (excluding the rays SA and SD ).
Hence this common space is the graphical solution of the two inequations.
48 Commercial Mathematics and Statistics

EXERCISE

1. Define a linear inequation in one variable.

2. Define a linear inequation in two variables.
3. What do you mean by (i) absolute inequality and (ii) conditional inequality?
4. Draw the graphs of the following inequations considering as linear inequality in one
variable :
(i) x > –2 (ii) x < 0 (iii) x > 0
(iv) x–1< 3 (v) 3 < x < 8
5. Draw the graphs of the following inequations in the xy–plane :
(i) x > 5 (ii) y < 3 (iii) x > 0
y
(iv) x + > 1 (v) 2x–4y > 5
3 4
(vi) x+2y < 6 (vii) 2x+3y > 12
(viii) x < y (ix) x+y < 2
6. Solve graphically the following system of inequations :
(i) 2x+y > 12, x+y > 7
(ii) 2x+5y < 10, x < 2
(iii) 2x+3y > 18, x+y > 8
(iv) y > 5x, y < 0
y y
(v) x + > 6, x − ≤ 1
2 3 2 3
 Linear Inequalities & their Graphs 49

PERMUTATION & COMBINATION

Choices : Suppose there are two doors (A and B) in a room. If you want to enter into the
room, you may enter through the door A or through the door B. So there are two choicces
for the event of entering into the room.
After entering into the room if you are to come out of the room, then for this event also,
there are two choices i.e. you amy choose the door A or the door B to come out of the room.
We may show the choices of entering into and leaving out the room as follows :
enter leave
door name: A A
A B
B A
B B
Thus there are four different ways of entering into and leaving out of the room.
But if there is a restriction that you cannot come out of the room by the same door through
which you have entered into the room, then you have only one choice to come out of the
room. We may tabulate the choices of entering into and leaving out as follows :
enter leave
A B
B A
Thus there are two choices of entering into and leaving the room.
Similarly, suppose there are three doors, A, B, C in a room. You can enter into the room
in three different ways. After entering into the room if you come out by a different door, then
you have two different ways for coming out of the room. We may tabulate the possibilities
of entering into by one door and leaving out by a different door as follows :
enter leave
A B
A C
B A
B C
C A
C B
C.Math(2)–4
50 Commercial Mathematics and Statistics

Thus there are six different ways of entering into and leaving out the room.
We see that the first operation i.e. the entering into can be performed by 3 different ways
and corresponding to each of these performance the second operation i.e. to leave the room
can be performed in 2 different ways. Thus the total number of ways that both the operations
(entering into and leaving out) can be performed in 3×2 i.e. 6 different ways.
If the restriction of coming out through the same door by which you have entered is
removed, then the operation of entering into can be performed in 3 different ways and for
each performance, the second operation i.e. leaving the room can be performed in 3 different
ways. So both the operations can be performed in 3×3 i.e. 9 different ways.
From the above discussion it is clear that there is a baic principle which may be stated as
follows :
Principle : If one operation can be performed in ‘m’ different ways and corresponding
to each performance of this operation another operation can be performed in ‘n’ different
ways, then both the operations can be performed simultaneously in m×n different ways.
The principle can be extended to any member of operations. In general if one operation
can be performed in ‘m’ different ways and if a second operation can be performed in ‘n’
different ways and a third can be performed in ‘p’ different ways and so on, then all the
operations can be performed simultaneously in m×n×p×..... different ways.
Permutation : The different arrangements in a row which can be made by taking some
of the objects or all the objects of a given finite set are called permutations.
For example, if there are three letters A, B, C, then permutations of these letters taking
one, two or three at a time are as follows :
one at a time two at a time three at a time
A AB ABC
B BA ACB
C AC BAC
CA BCA
BC CAB
CB CBA

Notation : Let the number of objects in a given set be ‘n’ and the number of objects in
each permutation be ‘r’ (r < n). Then the number of permutations is denoted by nPr or nPr or
P(n, r). Thus the notation nPr or nPr or P(n, r) will mean the number of permutations of ‘n’
different things taking ‘r’ at a time. Thus in the above example, we see that 3P1 = 3, 3P2 = 6,
3
P3 = 6.
 Linear Inequalities & their Graphs 51

Factorial Notation : The continued product of the first n natural numbers is denoted
by the symbol or n! and is read as “Factorial n”.
Thus n or n! = 1×2×3× ......... ×(n–)×n
= n×(n–1)×(n–2)× ......... ×3×2×1
For example, 5 = 1×2×3×4×5 = 5×4×3×2×1
7 = 1×3×4×5×6×7 = 7×6×5×4×3×2×1
From the definition, we see that
n = n (n–)(n–2) ...... 3.2.1
= n [(n–1)(n–2) ........ 3.2.1]
=n
Similarly, n = n(n–1) n–2 = n (n–1)(n–2) n − 3
and so on
Thus 10 = 10× 9 = 10×9× 8 = 10×9×8× 7 and so on.
Theorem : The number of permetations of n different things taken r (r < n) at
n
a time is
n − r

Proof : The number of permutations of n different things taken r at a time is the same as
the number of arrangements of r things taken from the given n different things in r different
places in a row.
Now the first place can be filled up by any one of the given n different things. So the first
place can be filled up by n different ways. After the first place is filled up, the second place
can be filled up by any one of the remaining (n–1) different things. Sothe second place can
be filled up by (n–1) different ways. Similarly the third place can be filled up by (n–2)
different ways and so on. Continuing this process, we see that for the last place (i.e. the r th
place) there remain [n–(r–1)] different things. So the last place can be filled up in [n–(r–
1)]=(n–r+1) different ways.
Thus the r places can be filled up in n(n–1)(n–2) ....... (n–r+1) different ways.
Hence nPr = n(n–1)(n–2) .......... (n–r+1)
b gb g b gb g
n n − 1 n − 2 ......... n − r + 1 n − r ........3.2.1
=
b gb gn − r n − r + 1 ........3.21
.
n
=
n − r
52 Commercial Mathematics and Statistics

Corollary : (1) Putting r = n in nPr = n(n–1)(n–2)....(n–r+1)

We get nPn = n(n–1)(n–2)..........1 =
n
(2) Again putting r = n in nPr =  ,
n − r
n n
We get pn =
o
n
∴ n =
o
So, we may define 0 = 1.

Example 1 : Find the values of 5P3, 7P4.

5 5 5 5 × 6 × 5 × 4 × 3 = 60
Solution : p3 = = =
5 − 3 2 2

7 7 7 5 × 6 × 5 × 4 × 3 = 840
p4 = = =
7 − 4 3 3

Example 2 : In how many ways can the letters of the word ‘EQUATION’ be arranged?
Solution : There are 8 different letters in the word EQUATION. Therefore number of
ways of arrangements is the permutations of 8 different things taken all at a
time.
= 8P8 = 8 = 8×7×6×5×4×3×2×1 = 40320
Permutations with repetition : To find the number of permutations of n different
things taken r at a time, when each thing may be repeated upto r times.
Clearly the required number of permutations is the same as the number of ways in which
r places can be filled up with n different things when each of the n things can be repeated
upto r times in any permutation.
The first place can be filled up by placing any one of the n things i.e. the first place can be
filled up in n different ways. Since the things may be repeated, corresponding to each way
of filling up of the first place, the second place can be filled up by any one of the given n
different things in n different ways. Similarly the third place can also be filled up in n different
ways. Thus each of the r places can be filled up in n different ways. Hence the total number
of ways of filling up the r places is n.n.n........(r times) = nr.
Thus the required number of permutations is equal to n r.
 Linear Inequalities & their Graphs 53
Example 3 : In how many ways can 6 letters be posted in 5 letter boxes?
Solution : The first letter can be posted in any one of the 5 boxes. When this has been
done, the second letter can also be posted in any one of the 5 boxes (the
second letter can be posted in the box in which the first one is posted). Similarly
each of the 6 letters can be posted in 5 different ways.
Hence the required number of ways
= 5×5×5×5×5×5
= 56
= 15625.
Example 4 : In how many ways can 5 prizes be awarded to 4 boys if each boy is eligible
for any number of prizes?
Solution : First prize can be awarded to any one of the 4 boys. So the first prize can be
awarded in 4 different ways. After giving the first prize, the second one can
also be awarded to any one of the 4 boys. So the second prize can be awarded
in 4 different ways. Thus each of the 5 prizes can be awarded in 4 different
ways.
Hence required number of ways
= 4×4×4×4×4
= 45
= 1024.
PERMUTATIONS OF THINGS NOT ALL DIFFERENT :
To find the number of permutations of n things taken all at a time, when the things are not
all different.
Let a, b, c,......... are the n things and suppose that ‘p’ of them are a’s, ‘q’ of them are b’s
and ‘r’ of them are c’s and the rest are all different. To find the number of permutations of
these things taken all at a time.
Let the total number of permutations be x. If all the a’s are replaced by p new distinct
things, then in each of x permutations, these p new things can be arranged among themselves
in ways. So we get x. permutations from the original x permutations.
In each of these x permutations there will be q like things all b’s and r like things all c’s.
If we replace all the b’s by q new distinct things different from the rest, then these q distinct
things can be arranged among themselves in ways in each of the x permutations. So
from x permutations we now get x. . permutations each containing r like things all c’s. s.
As earlier by replacing all the c’s by r new distinct thing different from the rest, we get
54 Commercial Mathematics and Statistics

x permutations each containing n different things. But from n different things taken
all at a time we getn permutations.
∴x= =

n
⇒ x=
p q r

Example 5 : Find the number of ways in which the letters of the word ‘COLLEGE’ be
arranged.
Solution : Here total number of letters = 7
Out of 7 letters 2 are L’s and 2 are E’s

7
∴ Total number of arrangements =
22

= 7×6×5× 4×3
2
= 1260
CIRCULAR PERMUTATIONS :
In case of linear permutations (i.e. arrangement in a row),
there are two ends but in case of circular permutation (i.e. a
arrangement in a circle) there is neither a beginning nor an d
end. For example, let us consider the circular arrangement
of the 4 letters a, b, c, d as shown in the figure
Starting from each letter we can read it in clockwise b
direction in any one of the following ways : c
a b c d, b c d a, c d a b, d a b c.
It we arrange in a row these four will give 4 different arrangements. Thus corresponding
to 4 linear permutations we get only one circular permutation. But 4 letters can be arranged
in a row in 4 different ways.

4 3
∴ Number of permutations of 4 letters arranging in a circle = = =6
4
TO FIND THE NUMBER OF PERMUTATIONS OF N DIFFERENT THINGS
IN CIRCULAR ARRANGEMENT :
Let the n different things be represented by the letters a1, a2,....., an
If we arrange in a row then these n different things can be arranged in ways. In a
 Linear Inequalities & their Graphs 55
row the arrangements a1 a2 a3........an, a2 a3 a4........an a1, a3 a4 a5........an a1 a2,........,an a1 a2,.....
an–1 are n different arrangements but in a circle all these n arrangements are same. Thus
to every n different arrangement in a row there is only one arrangement in a circle.

n
∴ Total number of arrangements in a circle = 
n
= n − 1

Example 6 : In how many ways can 7 persons be seated around a round table?
Solution : 7 persons can sit around a round table in 7–1 = 6 = 720 ways.
Example 7 : There are 5 boys and 4 girls to sit in a circle. In how many ways can they sit?
Solution : Total number of persons = 5+4=9
So 9 persons are to be seated in a circle.
∴ Total number of ways = 9–1 = 8

Example 8 : In how many ways can 5 boys and 4 girls be arranged in a circle so that no
two girls are together?
Solution : Let the boys be arranged first. They can be
arranged in a circle in 5 − 1 = 4 ways. Since B1
× ×
no two girls are together therefore when the
boys have occupied their seats in any one of B 5 B2
these 4 arrangements, the 4 girls are to occupy
any 4 seats out of 5 seats (see figure) one × ×
between every two boys. This can be done in
5
P4 ways. B B 4 3
∴ Required number of arrangements ×

= 4 × 5P 4
= 4 × .......
= 4× 5
= 2880

Example 9 : In how many ways can 6 different beads be placed in a necklace?

Solution : Here we are to form circular permutations of 6 different things taken all at a
time. But in case of necklace, arrangement counting from clockwise and
anticlockwise directions are not different.
56 Commercial Mathematics and Statistics

Hence the total number of way of arrangements

= 16 − 1 = 15 =1 × 120 =60
2 2 2
RESTRICTED PERMUTATIONS :
Let us give some illustrative example in which there are some restriction in the
arrangements.

Example 10 : In how many ways can the letters of the word ‘DAUGHTER’ be arranged
so that the letters G, T and R never occur?
Solution : Since the letters G, T and R never occur in the arrangements so we are to
arrange the remaining 5 letters among themselves. This can be done in 5
ways.
Required number of arrangements = 5 = 120.

Example 11 : In how many ways can the letters of the word ‘DAUGHTER’ be arranged
taking 5 at a time in which the letters G, T, R always occupy the first, third
and fifth positions respectively.
Solution : Put the three letters G, T, R in the specified positions (1st, 3rd and 5th
respectively). The we are to fill up the remaining 2 places (2nd and 4th) with
the remaining 5 letters which can be done in 5P2 ways.
∴ Required number of arrangements = 5P2 = 20.

Example 12 : Find the number of ways in which 8 boys be seated in 6 chairs in a row so
that 3 particular boys are always included.
Solution : Three particular boys can occupy 3 chairs out of 6 in 6P3 ways. After filling
up the 3 chairs, the remaining (6–3) = 3 chairs can be occupied by the
remaining (8–3) = 5 boys in 5P3 ways.
Hence required number of ways
= 6P 3 × 5P 3

6 5
= ×
3 2
= 7200.

Example13 : In how many ways can the letters of the word TABLE be arranged taken 4 at
a time so that BL is always together and also in the given order?
 Linear Inequalities & their Graphs 57
Solution : Let us consider BL together inthat order as a single letter which can occupy
2 of the 4 places. Now from the remaining 3 letters (T, A, E) taking 2 at a
time can be arranged in 3P2 ways. In each of these 3P2 permutations there are
2 letters. In between then there is a 1 place and at the two ends there are 2
places; so in total there are 3 places which can be occupied by the group of
letters BL in that order by 3 different ways.
Hence the total number of ways = 3×3P2
= 18
Note :
If however BL may not be in that order, then number of ways = 3× 2 ×3P2 = 36
(In this case the letters B and L can be arranged among themselves in 2P2 = 2
ways).

WORKED OUT EXAMPLES

1. Prove that nPn–1 = nPn

n
Solution : We have nPr =
n − r

n n
∴ n
Pn −1 = = = n = n Pn
( n − ( n − 1) 1

∴ nPn–1 = nPn

2. Prove that nPr = n.n–1Pr–1

n
Solution : n
Pr =
n − r

nn − 1
=
( n − 1) − ( r − 1)

n − 1
= n.
( n − 1) − ( r − 1)

= n.n–1Pr–1
58 Commercial Mathematics and Statistics

3. Find the value of n if nP5 : nP3 = 2:1

n
P5 2
Solution : =
n
P3 1

⇒ nP5 = 2×nP3
n n
⇒ = 2×
n − 5 n − 3

n − 3
⇒ =2
n − 5

⇒
an − 3fan − 4fn − 5 = 2
n − 5

⇒ (n–3)(n–4) = 2×1
⇒ n–3 = 2
⇒ n=5

4. Evaluate n if nP4 : n+1P4 = 5:9

n
P4
Solution : =5
n +1
P4 9

n
n − 4
⇒ =5
n + 1 9

n + 1 − 4

n n − 3
⇒ =5
n + 1 n − 4 9

n ( n − 3) n − 4
⇒ =5
( n + 1)n n − 4 9
 Linear Inequalities & their Graphs 59

n−3 5
⇒ n +1 = 9
⇒ 9n–27 = 5n+5
⇒ 4n = 32
⇒ n = 8.

5. If n+1P3 = 10×n–1P2, find n.

Solution : n+1
P3 = 10×n–1P2

n + 1 n − 1
⇒ = 10 ×
n + 1 − 3 n − 1 − 2

⇒
an + 1fnn − 1= 10 ×
n − 1
n − 2 n − 3

⇒
a f=
n n +1
10 ×
1
an − 2fn − 3 n − 3
⇒ n(n+1) = 10(n–2)
⇒ n2+n = 10n–20
⇒ n2–9n + 20 = 0
⇒ (n–4)(n–5) = 0
⇒ n = 4 or n = 5.
6. Evaluate n if 22×nP5 = 7×n+2P5
Solution : 22×nP5 = 7×n+2P5

n n + 2
⇒ 22 × = 7×
n − 5 n + 2 − 5

⇒ 22 ×
n
= 7×
an + 2fan + 1fn
n − 5 n − 3

⇒
a fa f
22 = 7 n + 2 n + 1
n − 5 a fa f
n − 3 n − 4 n − 5
60 Commercial Mathematics and Statistics

⇒ 22(n–3)(n–4) = 7(n+2)(n+1)
⇒ 22n2–154n+264 = 7n2+21n+14
⇒ 15n2–175n+250 = 0
⇒ 3n2–35n+50 = 0
⇒ (n–10)(3n–5) = 0

⇒ n = 10 or n = 5
3
But n is a positive integer.
∴ n = 10.

7. Prove that
2n
Pn = 2n {1. 3. 5. ...... (2n–1)}

2 n
Solution : 2n
Pn =
2 n − n

2n
=
n

2 n(2 n − 1)(2 n − 2 ).........4.3.2.1

=
n

=
k2n(2n − 2)(2n − 4).......4.2pk(2n − 1)(2n − 3)....31. p
n

=
k pk p
2 n n( n − 1)( n − 2 )........2.1 (2 n − 1)(2 n − 3)....31
.
n

=
k
2 nn 1.3.5....(2 n − 3)(2 n − 1) p
n

= 2n {1. 3. 5. ...... (2n–1)}.

8. How many numbers between 100 and 1000 can be formed with the digits 0, 1, 2, 3, 4,
5 without repetition? How many of them are divisible by 5?
Solution : Since the number lies between 100 and 1000 therefore it consists of 3 digits.
 Linear Inequalities & their Graphs 61
The digits in the unit place and the tenth place may be any one of the given 6 digits without
repetition, but the digit 0 cannot be in the hunderedth place.
Let us start with the hundredth place. The hundredth place can be filled up in 5 different
ways (we can put any one from 1, 2, 3, 4, 5). After filling up the hundredth place, the tenth
place can be filled up with the remaining 5 digits in 5 different ways. Now for the unit place
there remain 4 digits, so the unit place can be filled up in 4 different ways.
Hence the required number of numbers
= 5×5×4 = 100
For the second part, the numbers divisible by 5 must end with 0 or 5.
Now 3 digit numbers ending with 0 can be obtained in 5P2 ways ( 0 is placed in the unit
place, the other two places can be filled up with the remaining 5 digits in 5P2 ways. Again 3
digit numbers ending with 5 but not beginning with 0 can be obtained in 4×4 = 16 ways.
(since 5 is placed in the unit place and since 0 cannot be placed in the hundredth place, the
hundredth place can be filled up in 4 ways and the tenth place can be filled up by any one of
the remaining 4 digits in 4 ways)
∴ Required number of numbers divisible by 5
= 5P2+16 = 20+16 = 36.
Alternatively,
Since the number lies between 100 and 1000, it consists of 3 digits. With the given 6
digits, we can fill up three places in 6P3 ways. But these include some numbers beginning
with 0. Which are not 3 digit numbers. Total number of numbers beginning with zero is 5P2
(since 0 is placed in the beginning, the remaining two places can be filled up with the
remaining 5 digits in 5P2 ways)
∴ Required number of 3 digit numbers
= 6P3–5P2 = 120–20 = 100
Again numbers divisible by 5 must end with 0 or 5. Now, 3 digit numbers ending with 0
can be obtained in 5P2 ways.
Also 3 digit numbers ending with 5 can be obtained in 5P2 ways which include those
numbers beginning with 0 also.
Now 3 digit numbers ending with 5 and beginning with 0 can be obtained in 4 ways
(after filling up the 1st place by 0 and the last place by 5, the middle place can be filled up
with the remaining 4 digits in 4 ways)
∴ number of 3 digit numbers ending with 5
= 5P2–4 = 20–4 = 16
∴ Total number of 3 digit numbers divisible by
5 = 5P2+16 = 20+16 = 36.
62 Commercial Mathematics and Statistics

9. Suppose a license plate contains two distinct letters of the English alphabet followed
by four digits, the first digit being non zero. How many different license plate can be obtained?
Solution : There are 26 different letters in English alphabet. The two different letters can
be arranged in 26P2 ways. Now the first digit may be any one of 1, 2, 3, ........., 9. So the first
digit may be taken in 9 different ways. The 2nd, 3rd and the 4th digit may be any one of 0,
1, 2,........., 9. Since the digits may be repeated, therefore each of 2nd, 3rd and 4th digits may
be taken in 10 different ways.
∴ required number of plates
= 26P2×9×10×10×10
= ........ ×9000
= 5850000
10. Find the number of ways in which the letters of the word COMMERCE can be
arranged. So that the vowels may never be separated.
Solution : Consider the 3 vowels O, E, E together as one letter. Then we have total
number of letters as 6 of which two are C’s and 2 are M’s.
∴ number of arrangements of these 6 letters

6
=
2 2

But the 3 vowels O, E, E (of which two are same) can be arranged among themselves in

3
ways.
2
Hence required number of arrangements

6 3
= ×
2 2 2
= 540.
11. In how many ways can 10 answer scripts be arranged placing one on another so that
the script getting the highest mark and the script getting the lowest mark donot come together?
Solution : First we shall find the number of arrangements in which the script getting the
highest mark (say H) and the script getting the lowest mark (say L) come together.
Considering these two scripts (i.e. H and L) as one single script we have 9 scripts which
 Linear Inequalities & their Graphs 63
can be arranged in 9P9 ways. Again H and L can be arranged among themselves in 2P2 ways.
∴ number of arrangements in which both H and L come together
= 9P9×2P2 = 9 ×2 = 2× 9
Again without any restriction all the 10 answer scripts can be arranged in 10P10 ways.
Hence number of arrangements in which the particular two scripts do not come together
= 10P10–2× 9
= 10–2× 9
= 10× 9 –2× 9
= 8× 9
= 2903040.
12. How many numbers not more than 5 digits can be formed with the digits 2, 3, 5?
Solution : The number may be of 1 digit or 2 digit or 3 digit or 4 digit or 5 digit. Now, 1
digit number can be formed in 3 ways (we may take any one from 2, 3 and 5)
∴ number of 1 digit number = 3.
To construct a 2 digit number we are to fill up 2 places with three things where repetition
is allowed. So each of the two places can be filled up in 3 ways.
∴ number of 2 digit numbers = 3×3 = 32
Similarly number of 3 digit numbers = 33
number of 4 digit numbers = 34
number of 5 digit numbers = 35
Hence required number of numbers
= 3+32+33+34+35 = 363.
64 Commercial Mathematics and Statistics

EXERCISE
1. What do you mean by permutation?
2. Find the values of :
(i) 5P3, (ii) 6P4, (iii) 4P2, (iv) 5P0, (v) 6P6,
Ans : (i) 60, (ii) 360, (iii) 12, (iv) 1, (v) 720.
3. Prove that
(i) nPr–1 = n–1Pr–1 + (r–1)n–1Pr–2
(ii) n–1Pr = (n–r) . n–1Pr–1
(iii) nPr = (n–r+1) . nPr–1
(iv) n+1Pr+1 = (n+1) . nPr
4. Find the value of n if
(i) nP3 = 120 (ii) n+1P4 = 4×nP3
(iii) nP5 = 20×nP3 (iv) nP5 = 10×n–1P4
Ans : (i) 6, (ii) 3, (iii) 8, (iv) 10
5. Find the value of r if
(i) 11Pr = 110 (ii) 7Pr = 840
(iii) 50Pr+2 : 50Pr–1 = 720 : 1
Ans : (i) 2, (ii) 4, (iii) 41.
6. Find the value of in if
(i) nP3 : n+2P3 = 5 : 12 Ans : 7
(ii) n+2P3 : n+1P2 = 5: 1 Ans : 3
(iii) 2n+1Pn–1 : 2n–1Pn = 3 : 5 Ans : 4
7. If m+nP2 = 56, m–nP2 = 12, find the values of m and n
Ans : m = 6, n = 2.
8. In how many ways can three friends be admited in 5 selective colleges so that no two of
them may read in the same college?
Ans : 60.
9. Two passengers enter into a bus where there are 5 vacant seats. In how many ways can
they take the seats?
Ans : 20.
 Linear Inequalities & their Graphs 65
10. In how many ways can a man cast 4 votes among 5 candidates, when each candidate is
entitled to receive all the 4 votes?
Ans : 625.
11. How many three digit numbers can be formed from the digits 0, 2, 3, 5, 6, 8 if no digit
is repeated?
Ans : 100.
12. How many numbers less than 1000 can be formed with the digits 2, 3?
Ans : 14.
13. How many numbers less than 10000 can be formed with the digits 0, 2, 3?
Ans : 81.
14. How many numbers not more than 4 digits can be formed with the digits 3, 4?
Ans : 30.
15. How many numbers between 4000 and 5000 can be formed with the digits 0 to 9 if
repetition is not allowed?
Ans : 504.
16. How many even numbers between 3000 and 4000 can be formed with the digits 0 to 9
if repetition is not allowed?
Ans : 280.
17. How many numbers greater than 20000 can be formed by using once each of the digits
1, 2, 3, 0, 2?
Ans : 36.
18. How many odd numbers of six digits can be formed with the digits 0 to 5 each digit
occuring only once?
Ans : 288.
19. How many numbers between 1000 and 4000 can be formed with the digits 0, 1, 2, 3, 4
repetition of digits being allowed?
Ans : 375.
20. In how many ways can 4 different books be given to 5 boys if
(i) no boy may have more than one book?
(ii) one boy may have more than one book?
Ans : (i) 120, (ii) 625.
21. In how many ways can 8 examination scripts be arranged so that the best and the wrost
scripts always come together?
Ans : 10080.
C.Math(2)–5
66 Commercial Mathematics and Statistics

22. In how many ways can 5 boys 3 girls be arranged so that no two girls sit together?
Ans : 14400.
23. In how many ways can 9 gentlemen and 9 ladies sit around a round table if no two
gentlemen sit side by side?
Ans : 8 × 9
24. In how many ways can 15 doctors and 12 engineers be seated in a row so that no two
engineers may occupy consecutive positions?
15 ×16
Ans : =
4
25. Find the number of ways in which 16 different books can be arranged on a shelf so that
two particular books shall not be together.
Ans : 14× 15
26. In how many ways can the letters of the word VOLUME be arranged so that the letters
L and M can occupy only the even places?
Ans : 144.
27. Find the number of ways in which the letters of the word ENGLISH can be arranged so
that the vowels occupy the odd places.
Ans : 1440.
28. In how many ways can the letters of the word ‘EXAMINATION’ be arranged?
11
Ans : = = 4989600
2 2 2
29. In how many ways can the letters of the word ‘EXAMINATION’ be arranged taking all
at a time so that EXM is always together and also in the given order?
Ans : 45360.
30. In how many ways can the letters of the word ‘MATHEMATICS’ be arranged so that
the vowels may never be separated?
Ans : 120960.
31. Find the number of arrangements of the letters of the word ‘BANANA’ in which two
N’s donot appear adjacently.
Ans : 40.
32. There are three different books of Accountancy, 3 of Management, 2 of Mathematics
and 2 of Statistics. In how many ways can these books be arranged in shelf so that
books of the same subject are not separated?
Ans : 3456.
 Linear Inequalities & their Graphs 67

COMBINATION :
The different groups or collections or selections that can be made out of a given number
of things by taking some or all of them at a time are called their combinations.
Suppose we are given three things A, B, C. Then the combinations of these 3 things
taken one, two and three at a time are shown below :
one at a time two at a time three at a time
A AB ABC
B AC
C BC
If is to be noted that the combinations are independent of order. For example, AB and BA
are two permutations while in case of combination they are same.
Notation : The number of combination of n different things taken r (r < n) at a time is
denoted by nCr or nCr or C (n, r).
Thus we see that
3
C1 = 3, 3C2 = 3 and 3C3 = 1.
Now let us taken an example of 4 different things A, B, C, D. We see that combinations
of these 4 things taken one, two, three and 4 at a time are as follows :
one at a time 2 at a time 3 at a time 4 at a time
A AB ABC ABCD
B AC ABD
C AD ACD
D BC BCD
BD
Thus we see that
4
C1 = 4, 4C2 = 6, 4C3 = 4, 4C4 = 1
Theorem : The number of combinations of n different things taken r (r < n) at a time is
n n
equal to i.e. nCr =
r n − r r n − r
Proof : Let the number of combinations of n different things taken r at a time be equal to
x i.e. nCr = x.
Now, each of these x combinations contains r things. These r things can be arranged
among themselves in rPr = ways. Thus from each of the x combinations we may get
permutations. So the number of permutations of n different things taken r at a time is x .
∴ nPr = x .
68 Commercial Mathematics and Statistics

n
⇒ = xr
n − r

n
⇒ x=
r n − r

n
Thus n
Cr =
r n − r

Corollary (1)

n n
Putting r = 0 in Cr = we get
r n − r

n n n
C0 = = = 1 ( 0 = 1)
0 n − 0 1.n
Corollary (2)
Putting r = n, we get

n n 1
Cn = = =1
n n − n 0

Thus nCn = nC0 = 1

Corollary (3)
Putting n–r in place of r, we get
n n n
Cn−r = = =n Cr
n − r n − ( n − r ) n − r r

Thus we get
n
Cn–r = nCr
For example, 7C4 = 7C3, 7C5 = 7C2 etc.
We see that
n
Cr = nCS = > either r = s or r+s = n
 Linear Inequalities & their Graphs 69
One important result
n
Cr + nCr–1 = n+1Cr
n n
Proof : n C r + n C r −1 = +
r n − r r − 1 r − ( r − 1)

n n
= +
r r − 1 n − r r − 1 n − r + 1

n n
= +
r r − 1 n − r r − 1 ( n − r + 1)n − r

n 1+ 1
=
r − 1 n − r r n − r +1

n n +1
=
r − 1 n − r r ( n − r + 1)

n + 1
=
r ( n + 1) − r

= n+1
Cr
For Example,
8
C 5 + 8C 4 = 9C 5
9
C6 + 9C5 = 10C6

WORKED OUT EXAMPLES :

1. Find the value of
(i) nC1 (ii) nC2 (iii) nC3
Solution :
n nn − 1
(i)
n
C1 =
1 n − 1
=
n − 1
e
= n  1 = 1 j
70 Commercial Mathematics and Statistics

n n( n − 1)n − 2 n( n − 1)
(ii) n C 2 = = =
2 n − 2 2 n − 2 2

n n n( n − 1)( n − 2)n − 3 n( n − 1)( n − 2)

(iii) C 3 = = =
3 n − 3 3 n − 3 3

Thus we see that

n( n − 1) n n( n − 1)( n − 2)
n
C1 = n, nC2 = , C3 =
2 3
Similarly we can see that
n
C4 =
a f, C
n( n − 1)( n − 2) n − 3 n
5 =
a f
n( n − 1)( n − 2) n − 3 ( n − 4)
4 4
and so on.

2. Find the value of

(i) 9C4, (ii) 8C5, (iii) 7C0, (iv) 25C20
Solution :
9
(i) 9C4 = = 9 × 8 × 7 × 6 = 126
4 × 3× 2×1
4 5
8
= 8 × 7 × 6 = 56
8
(ii) C 5 =
5 3 3 × 2 ×1

(iii) 7C0 = 1 ( nC0 = 1)

25
(iv) 25C20 = = 25 × 24 × 23 × 22 × 21 = 53130
5 × 4 × 3× 2×1
20 5

3. Find the value of n if

(i) nCn–2 = 6 (ii) nC7 = nC5
Solution :
(i) nCn–2 = 6
n
⇒
a
n − 2 n − n − 2 f =6
 Linear Inequalities & their Graphs 71

n( n − 1)
⇒ =6
2
⇒n(n–1) = 12 = 4×3
⇒n = 4
( n is a positive integer)
(ii) C7 = nC5
n

⇒ n = 7+5 = 12 (nCr = nCs ⇒ r = s or r+s = n)

4. If 24Cr+3 = 24C2r find the value of r.

Solution :
Cr+3 = 24C2r
24

⇒ r+3 = 2r or r+3+2r = 24
⇒ r=3 or r = 7
∴ Value of r is 3 or 7.

5. If nPr = 72 and nCr = 36, find n and r.

Solution : We have
n
Pr = × nCr
⇒ 72 = × 36
⇒ r=2
⇒ r=2
Again n
Pr = 72
⇒ nP2 = 72

n
⇒ = 72
n − 2
⇒ n(n–1) = 72 = 9×8
⇒ n=9
∴ n = 9 and r = 2

6. If nC4 : nC7 = 7:2, find the value of n.

Solution :
n
C4
n = 7
C7 2
72 Commercial Mathematics and Statistics

n
4 n − 4
⇒ = 7
n 2

7 n − 7

7 n − 7
⇒ = 7
4 n − 4 2

7×6×5 7
⇒ b gb gb g
n−4 n−5 n−6 = 2
⇒ (n–4)(n–5)(n–6) = 60 = 5×4×3
(n–4, n–5, n–6 are three consecutive positive integers)
⇒ n–4 = 5
⇒ n=9

7. If n–1
C3 : nC5 = 5:8, find n.
Solution :
n −1
C3
n = 5
C5 8

n − 1
3 n − 1 − 3
⇒ = 5
n 8

5 n − 5

5 n − 5 n − 1
⇒ =5
3 n − 4 2 8

5× 4 5
⇒
a n − 4 fn = 8
⇒ n(n–4) = 32
⇒ n2–4n–32 = 32
⇒ (n–8)(n+4) = 0
⇒ n = 8 or n = –4
But n is a positive integer. ∴ n = 8
 Linear Inequalities & their Graphs 73
8. Prove that
n
Cr + n–1Cr–1 + n–1Cr–2 = n+1Cr
Solution :
L.H.S. = nCr + (n–1Cr–1 + n–1Cr–2)
= nCr + nCr–1 [ nCr + nCr–1 = n+1Cr]
= n+1Cr
= R.H.S.

9. A boy instead of writing nPr writes nCr. By what number should he multiply his result to
get the correct answer?
Solution : Since nPr = nCr × , so he should multiply his result by to get the correct
answer.
10. In an examination paper there are 10 questions and a candidate is to answer any 6
questions. In how many ways can a candidate select 6 questions?
Solution : The different way of selections of questions is nothing but number of combinations
of 10 different things taken 6 at a time.
∴ required number of ways = 10C6

10
=
6 4

= 10 × 9 × 8 × 7
4 × 3× 2 ×1
= 210.

11. A question paper consists of 10 questions and a candidate is to answer 6 questions. If

question no.1 is compulsory in how many ways can a candidate select his questions?
Solution : Since question no.1 is compulsory, therefore he is to select 5 questions out of
remaining 9 questions.
∴ required number of ways = number of combinations of 9 things taken 5 at a time
= 9C 5
9
=
5 4
= 9×8× 7× 6
4 × 3× 2×1
= 126.
74 Commercial Mathematics and Statistics

12. Out of 5 teachers and 20 students in a school, a committee consisting of 3 teachers and
7 students is to be formed. In how many ways can this be done if
(i) any teacher and any student may be included?
(ii) one particular student cannot be in the committee.
(iii) one particular teacher must be in the committee.
Solution :
(i) Since there is no restriction in selecting teachers and students, we can select 3 teachers
out of5 in 5C3 ways and 7 students out of 20 in 20C7 ways.
∴ required number of ways = 5C3 × 20C7

5 20
= ×
3 2 7 13

= 5 × 4 × 20 × 19 × 18 × 17 × 16 × 15 × 14
2 7× 6 × 5× 4 × 3× 2
= 775200.
(ii) Since one particular student cannot be in the ommittee, so out of 19 students we are to
select 7 students which can be done in 19C7 ways.
Hence the required number of ways
= 5C3 × 19C7

5 19
= ×
3 2 7 12

= 5 × 4 × 19 × 18 × 17 × 16 × 15 × 14 × 13
2 7× 6 × 5× 4 × 3× 2
= 503880
(iii) Since one particular teacher must be in the committee, so we are to select 2 teachers
out of remaining 4 teachers, which can be done in 4C2 ways.
Hence the required number of ways
= 4C3 × 20C7

4 20
= ×
2 2 7 13
= 465120.
 Linear Inequalities & their Graphs 75
13. There are 16 points in a plane, no three of which being in the same straight line. Find the
number of straight line which can be drawn by joining these points. How many triangle
can be formed by joining these points?
Solution : Since no three points are in a straight line, therefore by joining any two points out
of 16, we can get a straight line.
∴ required number of straight lines
= 16C2

= 16 × 15
2
= 120
Again joining any three points we can from a triangle.
∴ required number of triangles
= 16C3

= 16 × 15 × 14
3× 2×1
= 560.

14. There are 20 points in a plane, of which only 5 are collinear. How many (i) different
straight lines, (ii) different triangles can be formed by joining these points?
Solution :
(i) By joining any two points we can get one straight line. Now, if out of 20 points no
three points are collinear then we can get 20C2 straight lines. But out of 20 points, 5 are
collinear (i.e. lying in the same straight line). So from these 5 points we are getting only one
straight line instead of getting 5C2 straight lines.
∴ required number of straight lines
= 20C2 – 5C2 + 1
= 20 × 19 − 5 × 4 + 1
2 2
= 190 –10 + 1
= 181.
(ii) By joinng any three non collinear points we can get a triangle. So if no three points
out of the 20 points are collinear, then we can from 20C3 number of triangles. But out of 20
points, 5 points are collinear. From these 5 points we cannot have any triangle, hence number
of triangles lost = 5C3 (if no three of these 5 points are collinear then number of triangles that
can be formed by joining these 5 points = 5C3)
76 Commercial Mathematics and Statistics

∴ required number of triangles

= 20C3 – 5C3
= 20 × 19 × 18 − 5 × 4 × 3
3× 2×1 3× 2×1
= 1140 –10
= 1130.
15. There are 20 points in a plane and A is one of them. If no three of these points are
collinear, find the number of triangles that can be formed with A as one of the vertices.
Solution : Joining any three non collinear points we can form a triangle. But the point A
must be a vertex of the triangle. So we are to select any two points out of the 19 points
(excluding A from the given 20 points)
∴ required number of triangles
= 19C2
= 19 × 18
2
= 171.

16. Out of 9 engineers and 6 doctors how many different committees can be formed, each
consisting of 6 engineers and 3 doctors?
Solution : 6 engineers can be selected out of 9 in 9C6 ways. Again 3 doctors out of 6 can be
selected in 6C3 ways.
∴ required number of committees
= 9C 6 × 6C 3

9 6
= ×
6 3 3 3

9
=
3 3 3

= 9×8×7×6×5× 4
6×6
= 1680.
17. A committee consisting of 7 members is to be formed out of 8 engineers and 5 doctors.
In how many ways can this be done if
(i) there are at least 3 engineers in a committee?
(ii) there are at least 2 engineers and one doctor in a committee?
 Linear Inequalities & their Graphs 77
Solution :
(i) Possible cases of formation of a committee are :
Engineers Doctors Number of selections
3 4 8
C3 × 5C4 = 280
4 3 8
C4 × 5C3 = 700
5 2 8
C5 × 5C2 = 560
6 1 8
C6 × 5C1 = 140
7 0 8
C 7 × 5C 0 = 8
∴ required number of ways = 280+700+560+140+8
= 1688
(ii) Possible cases of formation of a committee are :
Engineers Doctors Number of selections
2 5 8
C2 × 5C5 = 28
3 4 8
C3 × 5C4 = 280
4 3 8
C4 × 5C3 = 700
5 2 8
C5 × 5C2 = 560
6 1 8
C6 × 5C1 = 140

∴ required number of ways = 28+280+700+560+140

= 1708.
18. Mr. X has 7 friends consisting of 3 gentlemen and 4 ladies. His wife Mrs. X has also 7
friends cosisting of 4 gentlemen and 3 ladies. In how many ways can they invite a
dinner party of 3 ladies and 3 gentlemen so that Mr. X has 3 friends and Mrs. X has 3
friends.
Solution :
POSSIBLE CASES
Friends of Mr. X Friends of Mrs. X Number of Selections
Ladies Gentlemen Ladies Gentlemen

3 – – 3 4
C3 × 3C0 × 3C0 × 4C3 = 16
2 1 1 2 4
C2 × 3C1 × 3C1 × 4C2 = 324
1 2 2 1 4
C1 × 3C2 × 3C2 × 4C1 = 144
– 3 3 – 4
C 0 × 3C 3 × 3C 3 × 4C 0 = 1

∴ Total number of ways = 16+324+144+1 = 485

78 Commercial Mathematics and Statistics

EXERCISE

1. What do you mean by combination?

2. Find the values of :
(i) 10C6 (ii) 9C0 (iii) 24C21 (iv) 10C6 + 9C5 + 9C4
Ans : (i) 210, (ii) 1, (iii) 2024, (iv) 462
3. Find the value of r if
(i) 2nCr = 2nCr+2+2
(ii) 8Cr = 7Cr
(iii) 25Cr+4 = 25C2r–3
Ans : (i) n–1, (ii) 0, (iii) 7 or 8
4. Find the value of n if
(i) nC3 = nC5
(ii) nC10 = nC12
(iii) nC3 : n–1C3 = 4:3
(iv) nC3 : n–1C4 = 8:5
(v) 2nC3 : nC2 = 44:3
(vi) nC3 = 6 × nC2
(vii) 2nC3 : nC2 = 44:1
Ans : (i) 8, (ii) 22, (iii) 12, (iv) 8, (v) 6, (vi) 20, (vii) 17
5. If nPr = 336 and nCr = 56, find n and r.
Ans : 8, 3.
6. If Pr = Pr+1 and Cr = Cr–1, find n and r.
n n n n

Ans : 3, 2.
7. Prove that
(i) nCr+2.nCr–1 + nCr–2 = n+2Cr
(ii) n–2Cr + 2.n–2Cr–1 + n–2Cr–2 = nCr
8. A football team of 11 players is to be selected from a class of 40 students. In how many
ways can the team be selected?
Ans : 40C11
 Linear Inequalities & their Graphs 79
9. In how many ways can a person invite his 10 friends to a dinner by inviting any number
of members?
Ans : 1023.
10. There are 12 questions in a question paper. In how many ways can a candidate select 8
questions?
Ans : 495.
11. There are 10 questions in a question paper. A candidate is to answer 6 questions but
question no.1 and 10 are compulsory. In how many ways can a candidate select 6
questions in all?
Ans : 70.
12. A question paper contains 10 questions divided into two groups of 5 questions each. In
how many ways can a candidate select 6 questions taking at least two questions from
each group?
Ans : 200.
13. In an examination paper there are two groups each containing 4 questions. A candidate
is required to answer 5 questions but not more than 3 questions from any group. Final
the number of ways a candidate can slect 5 questions in all.
Ans : 48.
14. A candidate is required to answer 6 questions out of 12 which are divided into two
groups each containing 6 questions. In how many ways can be make up his choice if he
is not allowed to attempt more than 4 questions from any group?
Ans : 850.
15. A cricket team is to be formed from two groups A and B; group A consisting of 6
players and group B consisting of 8 players. In how many ways can the selection be
made if at least 4 players from group A are included?
Ans : 344.
16. In a cricket club, there are 30 players of whom 15 are batsmen, 12 bowlers and 3 wicket
keepers. In how many ways can a cricket team of 11 players be selected so as to include
6 batsmen, 4 bowlers and 1 wicket keeper?
Ans : 7432425.
17. A committee of 6 members is to be constituted from 6 gentlemen and 4 ladies. In how
many ways can this be done so as to include at least one lady?
Ans : 209.
18. How many different triangles can be formed by joining the vertices of a polygon having
12 sides?
Ans : 220.
80 Commercial Mathematics and Statistics

19. A polygon has 27 diagonals. Find the number of sides of the polygon.
Ans : 9.
20. Prove that the number of triangles which can be formed by joining the vertices of a
polygon of n sides is 1 n(n–1)(n–2). Also show that the polygon has 1 n(n–3) diagonals.
6 2
Ans :
21. In how many ways can 22 players be divided into two teams each consisting of 11
players to play against each other?
22
Ans :
2 11 2
22. There are 15 points in a plane such that no three of them are collinear.
(i) How many line segments can be drawn by joining these points?
(ii) How many triangles will be formed by these line segments?
Ans : (i) 105, (ii) 455.
23. There are 18 points in a plane of which only 5 are collinear. How many (i) different
straight lines, (ii) different triangles can be formed by joining them?
Ans : (i) 144, (ii) 806.
24. In how many ways can 6 books be divided equally among 3 students?
Ans : 90.
25. In how many ways can 10 books be divided equally between 2 students?
Ans : 252.
26. Every member of a group of friends gives New Years Greeting cards to each of his
friends. If total number of cards they use is 132, how many members are there in the
group?
Ans : 12.
27. Everybody in a party shakes hands with everybody else. If total number of handshakes
is 120, find the number of persons in the party.
Ans : 16.
28. From a group of 7 gentlemen and 5 ladies a committee of 4 gentlemen and 3 ladies is to
be formed. In how many ways can this be formed if one particular lady L1 refuses to be
in the committee if another particular L2 be included?
Ans : 245.
 Linear Inequalities & their Graphs 81

PRINCIPLE OF MATHEMATICAL
INDUCTION
Many statements or formulas involving natural numbers are to be established to be true
for all natural numbers n. If we prove a statement S(n) involving natural number n, to be true
for n=1, 2 and 3 and conclude that S(n) is true for all n∈N, then our conclusion may not be
true. For example, consider the statement.

12 + 22 + 32 + ............ + n2 =
b gb g
n n + 1 2n + 1
+ (n–1)(n–2)(n–3).
6
We see that the statement is true for n=1, n=2 and n=3 (putting n=1, 2 and 3 respectively
we see that L.H.S.=R.H.S.). If we conclude that since the statement is true for n=1, 2, 3,
hence it is true for all n∈N, our conclussion is not true because if n=4, then
L.H.S. = 12 + 22 + 32 + 42 = 30

R.H.S. = 4 × 5 × 9 + 3 × 2 × 1 = 36.
6
So it is required to develop a method by which we can establish the truth of a given
statement for all n∈N. The principle lying behind the method is known as Principle of
Mathematical Induction.
The Principle of Mathematical Induction may be stated as follows :
Given a mathematical statement or proposition P(n) involving natural member n, if (i)
P(1) is true i.e. P(n) is true for n = 1, and (ii) for any value k of n, we have
P(k) is true ⇒ P(k+1) is true,
then the proposition P(n) will be true for all n∈N.
EXPLANATION :
Let us suppose that we have proved (i) a proposition P(n) to be true for n=1 and (ii) P(n)
to be true for n=k+1 if it is true for n=k.
Then by (i) P(n) is true for n=1 and by (ii) since P(n) is true for n=1, it is true for n = 1+1
= 2. Again since it is true for n=2, so it is true for n = 2+1 = 3 and so on. Continuing the
process indefinitely, we can conclude that P(n) is true for all n∈N.
Note:
Let P(n) be a statement. If we can prove that (i) P(m) is true for a particular value
m of n∈N. and (ii) P(k) is true ⇒ P(k+1) is true for some arbitrary value k∈N
and k > m; then P(n) is true for all n > m∈N.

C.Math(2)–6
82 Commercial Mathematics and Statistics

WORKED OUT EXAMPLES :

1. Prove by the principle of mathematical induction that 1+2+3+........+n =
b g
n n +1
, n∈N.
2
Solution :

When n=1, then L.H.S.=1 and R.H.S. = 1.2 =1

2
∴ L.H.S. = R.H.S.
∴ the proposition is true for n = 1.
Let the proposition be true for n=k(k>1)

∴ 1 + 2 + 3 + .......... + k =
b g
k k +1
2

= 1 + 2 + 3 + ......... + k + (k+1) =
b g b g
k k +1
+ k +1
2

= b k + 1gLM 2 + 1OP
k
N Q
= b k + 1g k + 2
2

=
bk + 1gbk + 2g
2
So the proposition is true for n=k+1 if it is true for n=k.
Hence by induction, the given statement is true for all n∈N.

∴ 1+2+3+ .................. +n =
b g
n n +1
for all n∈N.
2

2. If n∈N, prove by mathematical induction that an–bn is divisible by a–b.

Solution : When n=1, then an–bn = a–b which is divisible by a–b.
So the proposition is true for n=1.
Let us suppose that the proposition is true for n=k. Then a k–bk is divisible by (a–b). So
ak–bk = c(a–b) where c is the quotient obtained on dividing akkk| by (a–b).
Where c is the quotient obtain diring ak–bk by (a–b)
Now, ak+1–bk+1 = a(ak–bk) + abk–bk+1
= ac(a–b) + bk(a–b)
= (a–b)(ac+bk)
 Linear Inequalities & their Graphs 83
Thus we see that ak+1–bk+1 is divisible by (a–b). So the proposition is true for n=k+1 if it
is true for n=k.
Hence by mathematical induction, the proposition is true for all n∈N.
i.e. an–bn is divisible by (a–b) for all n∈N.
3. Prove by mathematical induction that
> 3n for n > 7.
Solution : When n=7, then = 7 = 5040. and 3n=37=2187.
So the proposition is true for n=7.
Let the proposition be true for n=k (k>7).
Then k >3k where k > 7
⇒ (k+1) k > (k+1)3k
⇒ k+1 > 3.3k ( k>7 ∴ k+1>3)
⇒ k+1 > 3k+1
Thus the proposition is true for n=k+1 if it is true for n=k.
Hence by mathematical induction, the proposition is true for all n > 7.
i.e. > 3n for n > 7.

EXERCISE

Prove by the principle of mathematical induction that–

1. Sum of the squares of the first n natural numbers is

b gb g
n n + 1 2n + 1
for all n∈N.
6

2.
L nan + 1f O
2

1 + 2 + 3 + ................. + n = M 2 P for all n∈N.

N Q
3 3 3 3

3. Sum of the first n odd natural numbers is n2.

4. Sum of the first n even natural numbers is n(n+1).

5. 1.2 + 2.3 + 3.4 + ....................... + n(n+1) = 1 n(n+1)(n+2) for all n∈N.

3

6. 1 + 4 + 7 + .................... + (3n–2) = 1 n(3n–1), Vn∈N.

2
84 Commercial Mathematics and Statistics

7. 1 + 2 + 4 + 8 + .................... + 2n–1 = 2n–1, Vn∈N.

1 + 1 + 1 +.....................+ 1 = n
8. 1.2 2.3 3.4 b g
n n + 1 n + 1 , n∈N.

9. xn–1 is divisible by x–1 for all n∈N.

10. 9n+7 is divisible by 8 for all n∈N.
11. 52n+3n–1 is divisible by 9 for all n∈N.
12. 2n > n for all n∈N.
13. > 2n for n > 4.
14. a2n–b2n is divisible by a+b for all n∈N.
15. 52n–1 is divisible by 24 for all n∈N.
 Linear Inequalities & their Graphs 85

BINOMIAL THEOREM
An expression involving two terms is called a Binomial. For example, a+x, a+b, a + b ,
x
2x+3, x2+7x etc. are binomials or binomial expressions.
The theorem which gives us a general rule for expanding any power of a binomial
expression is known as Binomial Theroem. We shall discuss here the Binomial theorem
when the index i.e. power is a positive integer.
BINOMIAL THEOREM FOR A POSITIVE INTEGRAL INDEX :
When n is a positive integer, then for any real numbers a and x,
(a+x)n = nC0an + nC1an–1x + nC2an–2x2 + nC3an–3x3 +
......... + nCran–rxr + ........... + nCnxn ..............(i)
Proof : We shall prove this theorem with the help of principle of mathematical induction.
For n = 1,
L.H.S. of (i) = (a+x)1 = a+x
R.H.S. of (i) = 1C0a1 + 1C1x1 = a+x
∴ the proposition (i) is true for n = 1.
Let us suppose that the proposition be true for any arbitrary value m of n. Then
(a+x)m = m
C0am + mC1am–1x + mC2am–2x2 + mC3am–3x3 +
........... + mCram–rxr + ............ + mCmxm

Multiplying both sides by (a+x), we get

(a+x)m+1 = (a+x) [ mC0am + mC1am–1x + mC2am–2x2 + mC3am–3x3 +
........... + mCram–rxr + ....... + mCmxm ]
= mC0am+1 + (mC0+mC1) amx+(mC1+mC2) am–1x2 + (mC2+mC3) am–2x3+
........ +(mCr–1+mCr) am+1–rxr + ............. +mCmxm+1

But m
C0 = 1 = m+1C0, mCm = 1 = m+1Cm+1
and also mCr–1 + mCr = m+1Cr
∴ mC0 + mC1 = m+1C1
m
C1 + mC2 = m+1C2 etc.
86 Commercial Mathematics and Statistics

∴ (a+x)m+1 = m+1C0am+1 + m+1

C1amx + m+1
C2am–1x2
+ m+1C3am–2x3 + .......... + m+1Cram+1–rxr + ........... + m+1Cm+1xm+1
Thus we see that the proposition is true for n = m+1 if it is true for n = m.
Hence by mathematical induction the proposition is true for all n∈N.
Hence if n∈N, then
(a+x)n = nC0an + nC1an–1x + nC2an–2x2 + ................ + nCran–rxr + .............. + nCnxn

SOME IMPORTANT POINT TO BE NOTED :

1. The number of terms in the expansion of (a+x)n is (n+1) i.e. one more than the
index n.
2. In each term of the expansion of (a+x)n, the sum of the indices of a and x is equal to n.
3. The index of a in the first term is n and thereafter it goes on decreasing by one and it
becomes zero in the last term. On the other hand, the index of x in the first term is zero
and it goes on increasing by one and lastly it becomes n.
COEFFICIENTS OF EQUIDISTANT TERMS FROM BOTH ENDS
In the expansion of (a+x)n, the binomial coefficients of terms equidistant from the beginning
and the end are equal.
In the expansion of (a+x)n the (r+1)th term from the beginning is nCran–rxr whose coefficient
is nCr. Again the (r+1)th term from the end is the [(n+1)–r]th term from the beginning i.e. (n–
r+1)th term from the beginning. Therefore (r+1)th term from the end = (n–r+1)th term from
the beginning.
= nCn–ran–(n–r)xn–r = nCn–rarxn–r whose coefficient is nCn–r.
But we know that nCr= nCn–r
Hence the coefficients of the terms equidistant from the beginning and from the end are
equal.
The Binomial Coefficients nC0, nC1, nC2, .........., nCn in the expansion of (a+x)n follow
a pattern for different values of n
For n = 0, 0
C0 = 1
For n = 1, 1
C0 = 1, 1C1 = 1
For n = 2, 2
C0 = 1, 2C1 = 2, 2C2 = 1
For n = 3, 3
C0 = 1, 3C1 = 3, 3C2 = 3, 3C3 = 1
For n = 4, 4
C0 = 1, 4C1 = 4, 4C2 = 6, 4C3 = 4, 4C4 = 1
For n = 5, 5
C0 = 1, 5C1 = 5, 5C2 = 10, 5C3 = 10, 5C4 = 5, 5C5 = 1 and so on.
 Linear Inequalities & their Graphs 87
We may arrange the coefficients in the form of a triangle called Pascal’s triangle, as
follows :

1
1 1
1 2 1
1 3 3 1
1 4 6 4 1
1 5 10 10 5 1
..................................................................................
...........................................................................................................

The coefficients for different values of n are arranged serially in rows. it is observed that
the numbers at the two ends in each row are 1 each and each intermediate number is the sum
of the nearest two numbers in the row immediately above it.
This triangle gives us a simple rule for finding the coefficients of a binomial expansion,
specially when n is not a big number.
The numbers in the 1st, 2nd, 3rd, ........... rows give the binomial coefficients (in order) in
the expansion of (a+x)n corresponding to n = 0, 1, 2, ............... respectively.
Middle Term(s)
If n is even say n = 2m, then the total number of terms in the expansion of (a+x)n is 2m+1
which is odd. So the (m+1)th term is the middle term which is equal to
n n− n n n n
n
CmCman–mxm i.e. C n a 2x 2 =n C n a 2 x 2
2 2
Again if n is odd say n = 2m+1, then total number of terms in (a+x)n will be 2m+2 which
is even. So (m+1)th and (m+2)th terms are the two middle terms which are equal to
n
Cman–mx m and nCm+1an–m–1xm+1
n +1 n −1 n −1 n +1
n
i.e. C n −1 a 2 x 2 and n C n +1 a 2 x 2
2 2

n +1 n −1 n −1 n +1
n
i.e. C n −1 a 2 x 2 and n C n +1 a 2 x 2
2 2

The General Term in the expansion of (a+x)n

In the expansion of (a+x)n if we denote the 1st term by t1, 2nd term by t2, 3rd term by t3
etc. then
88 Commercial Mathematics and Statistics

t1 = nC0an = nC0an–0x0
t2 = nC1an–1x = nC1an–1x1
t3 = nC2an–2x2
................................................
................................................
Thus tr+1 = Cr an–r xr
n

We see that by putting r=0, 1, 2, ..........,n in the (r+1)th term tr+1, we get all the terms of the
expansion.
(r+1)th term i.e. tr+1 = nCran–rxr is called the general term in the expansion of (a+x)n.

Deductions : In the binomial theorem

(a+x)n = nC0 + nC1an–1x + nC2an–2x2 + nC3an–3x3 + ............ + nCran–rxr + .............. nCnxn
(i) if we put (–x) place of x, we get
(a–x)n = nC0an–nC1an–1x + nC2an–2x2–nC3an–3x3 + .......
+ (–1)r nCran–rxr + ............ + (–1)n nCnxn.
(ii) if we put a = 1, we get
(1+x)n = nC0 + nC1x + nC2x2 + nC3x3 + ................... + nCrx2 + ................ + nCnxn
(iii) if we put a = 1 and (–x) in place of x, we get
(1–x)n = nC0–nC1x + nC2x2–nC3x3 + ................. + (–1)r nCrxr + ............... + (–1)n nCnxn.

WORKED OUT EXAMPLES :

1. By using Binomial theorem, expand (2+x)7.
Solution :
(2+x)7 = 7C027 + 7C126x + 7C2 25x2 + 7C324x3 + 7C423x4 + 7C522x5 + 7C62x6 + 7C7x7
= 27 + 7 × 26x + 21 × 25x2 + 35 × 24x2 + 35 × 23x4 + 21 × 22x5 + 7 × 2x6 + x7
= 128 + 448x + 672x2 + 560x3 + 280x4 + 84x5 + 14x6 + x7
2. Evaluate 1035 by using binomial theorem.
Solution :
1035 = (100+3)5
= 1005 + 5C11004 × 3 + 5C21003 × 32 + 5C31002 × 33 + 5C4100 × 34 + 35
= 1010 + 5 × 108 × 3 + 10 × 106 × 9 + 10 × 104 × 27 + 5 × 102 × 81 + 243
= 1010 + 15 × 108 + 90 × 106 + 27 × 105 + 405 × 102 + 243
= 11, 59, 7, 40, 743.
 Linear Inequalities & their Graphs 89

FH
3. Expand 2a − x I 7

2K
.
Solution :
FH 2a − x IK 7
= (2a)7 – 7C1(2a)6 2 + 7C2(2a)5 2 FH x IK FH x IK 2
– 7C3(2a)4 2 FH x IK 3
2

+ 7C4(2a)3 2 FH x IK 4 FH x IK
– 7C5(2a)2 2 + 7C6(2a) 2 FH x IK 6
– 7C 7 2 FH x IK 7

4
= 128a7 – 7 × 25a6x + 21× 23a5x2 – 35 × 2a4x3 + 35a3 x
2
x5 x 6 x7
– 21a2 + 7a –
23 25 27
7
= 128a7 –224a6x + 168a5x2 – 70a4x3 + 35 a3x4 – 21 a2x5 + 7 ax6 – x .
2 8 32 128

4. Find the 8th term in the expansion of x 2 − 2 FH I 10

xK
.
Solution : 8th term = t7+1
F 2I
= C (x ) H − x K
10 2 10–7
7

F 128IJ
= 120 x GH −
x K
6
7

= − 15360
x

F 1I
5. Find the coefficient of x in expansion of H x − K
5
2
11
.
x
Solution :
1 FG IJ r
Here tr+1 = 11Cr x11–x − 2
H xK
1
= 11Cr x11–r(–1)r
x2r
= (–1)r 11Cr x11–3r
If this term contains x5 then
11–3r = 5
⇒ r=2
90 Commercial Mathematics and Statistics

∴ term containing x5 in t2+1

∴ coefficient of x5 = (–1)2 11C2
= 11 × 10
2
= 55.
6. Find the coefficient of x16 in the expansion of (x–x2)10.
Solution : Here tr+1 = 10Cr x10–r(–x2)r
= (–1)r 10Cr x10–r+2r
= (–1)r 10Cr x10+r
This term will contain x16 if 10+r = 16 i.e. r = 6
coefficient of x16 = (–1)6 10C6

10
=
6 4

= 10 × 9 × 8 × 7
4 × 3× 2
= 210.

c h c h 5
7. Evaluate 3 + 5 + 3 − 5
5

Solution : c3 + 5 h = 3 + C 3 5 +
5 5 5
1
4 5
C 2 3 3 5 2 + 5C 3 3 2 5 3 + 5C 4 3 5 4 + 5 5.

and c3 − 5 h = 3 – C 3 5 + C 3
5 5 5
1
4 5
2
3
5 2 – 5C 3 3 2 5 3 + 5C 4 3 5 4– 5 5

∴ c3 + 5 h + c3 − 5 h = 2[3 + C 3
5 5
5 5
2
3
5 2 + 5C 4 3 5 4]

= 2[243 + 10 × 27 × 5 + 5 × 3 × 25]
= 2[243 + 1350 +375]
= 3936.

8. Find the term containing x4 in 2x 2 + 1 FH I 8

3x K
Solution :

Here tr+1 = 8Cr (2x2)8–r FH 1 IK r

3x
 Linear Inequalities & their Graphs 91

1
= 8Cr 28–r x16–2r r r
3x

28−r 16–3r
= 8C r x
3r
This term will contain x4 if 16–3r = 4 i.e. r = 4
∴ the term containing x4 = t4+1
= 8C 4 x 4
28 − 4 4
= 8C 4 x
34

= 70 × 16 x4
81

= 1120 x4.
81
Fx 2 I
9. Find the term independent of x in the expansion of G 2 − J
3
10
.
H xK 2

Solution : Here t = C G 2 J
F x I FG − 2 IJ
3
10 − r r

r+1 H K H xK
10
r 2

x 30 − 3r 2r
= Cr 10 − r (–1) x
10 r 2r
2
= (–1)r 10Cr 2r–10+r x30–5r
This term will be independent of x if 30–5r= 0 i.e. r = 6.
∴ term independent of x = (–1)6 10Cb 26–10+6
= 10C6 × 22
= 210 × 4
= 840.

10. Find the middle term in the expansion of x − 1 FH I 10

xK
.
Solution : The expansion contains 10+1 = 11 terms.
∴ the middle term is the 6th term.
∴ middle term = t6
= t5+1

= C5 x
10 10–5
FH − 1 IK 5

x
= –10C5
92 Commercial Mathematics and Statistics

Fx 2 I
11. Find the 4th term from the end in the expansion of G 2 + J
3
9
.
H xK 2

Solution : There are 9+1=10 terms in the expansion. Therefore 4th term from the end is the
7th term from the beginning.
∴ the required term = t7 = t6+1

FG x IJ FG 2 IJ
3
9− 6 6
= C69
H 2 K Hx K 2

x 9 . 26
= 9C 6
23 x12
1
= 9C 6 2 3
x3
672
= .
x3

12. In the binomial expansion (a+b)10 the coefficient of the (4r+5)th term is equal to the
coefficient of the (2r+1)th term; find r.
Solution : t4r+5 = 10C4r+4 a10–4r–4 b4r+4
and t2r+1 = 10C2r a10–2r b2r
According to question,
10
C4r+4 = 10C2r
⇒ 4r+4 = 2r or 4r+4+2r = 10
⇒ r = –2 or r = 1
But r = –2 is not admissible, therefore r = 1. [r = –2 ⇒ 4r+5 = –3]
 Linear Inequalities & their Graphs 93

EXERCISE

1. Write down the number of terms in the expansion of

FH
(ii) 2x − 2 I 7

xK
(i) (3x+5y)11

(iii) (1+2x+x2)8 FH IK
(iv) x + a
25

a x
Ans : (i) 12, (ii) 8, (iii) 17, (iv) 26.
2. Using Binomial theorem expand the following :

F 1I
(ii) G 2x − J
7
(i) (1+x)6
H xK 5

FG 2 1 IJ 8
FH
(iv) 2x − 3 I 6

H x K 2x K
(iii) x + 2
3
(v) (x+y)10 + (x–y)10 (vi) (2x+3y)5
Ans :
(i) 1 + 6x + 15x2 + 20x3 + 15x4 + 6x5 + x6
672 − 560 + 280 − 84 + 14 − 1
(ii) 128x7 – 448x +
x5 x11 x17 x 23 x 29 x 35

56 + 28 + 8 + 1
(iii) x16 + 8x12 + 28x8 + 56x4 + 70 +
x 4 x 8 x12 x16
6 4 2
64x 32x 20x 135 243 729
(iv) 729 − 27 + 3 − 20 + 2 − 4 +
4x 8x 64x 6
(v) 2x10 + 90x8y2 + 420x6y4 + 420x4y6 + 90x2y8 + 2y10
(vi) 32x5 + 240x4y + 720x3y2 + 1080x2y3 + 810xy4 + 243y5

3. By using Binomial theorem, find the value of

(i) 96 (ii) 115 (iii) 1017 (iv) 1034 (v) 986 (vi) 995
Ans : (i) 531441 (ii) 161051 (iii) 107213535210701
(iv) 112550881 (v) 885842380864 (vi) 9509900499
94 Commercial Mathematics and Statistics

4. Find the 6th term in the expansion of 2x + 3 FH I 12

xK
.

Ans : 24634368x2

FH
5. Find the 8th term in 1 + 1 I 17

xK
.

1
Ans : 17C7
x7

F 3I
Find the 6th term in the expansion of G1 − J
10
6.
H xK 2 .

243
Ans : –10C5 ×
x10

7. Find the rth term in expansion of x − 1 FH I n

xK
.

Ans : (–1)r–1 nCr–1xn–2r+2

8. Find the nth term in the expansion of x + 1 FH I 2n

xK
.

2 n
Ans : x2
n − 1n + 1
9. Find the coefficient of x15 in the expansion of (2x–x2)10.
Ans : –8064

1
10. Find the coefficient of 1 in the expansion of x − 2
FG IJ 8

x x H K .

Ans : –56

1 FG IJ 8
11. Find the coefficient of x2 in the expansion of 2x + 2
H x K
.

Ans : 1792

12. Find the term containing x4 in the expansion of x + a FH I 10

xK
.

Ans : 120a3x4
 Linear Inequalities & their Graphs 95
13. Find the term containing x18 in the expansion of (x2–3x)12.
Ans : 673596x18

F
in the expansion of G a
2
− 12
IJ 13
14. Find the term containing a –10
H a K .

Ans : –715a–10
15. Find the term containing y7 in (x–2y)15.

5
Ans : 27x8y7
78
16. Find the middle term(s) in the expansion of

FH
(i) x + 1I 12
I
(ii) x − 1 FH 9
FH IK
(iii) x + a
10

xK xK a x

F 1I
(v) G x + J
3
7
(iv) (a+x)21
H xK 2 (vi) (2y+3x)8

Ans : (i) 924, (ii) 126x, −126 , (iii) 252,

x
(iv) 352716 a x , 352716 a10x11
11 10

(v) 35x6, 35x, (vi) 90720 x4y4

17. Find the term independent of x in the expansion of

FH
(i) x 2 − 1 I 12
FH
(ii) 3x 2 + 1 I 9

xK 3x K
, ,

F x 3 IJ
(iii) G 3 +
10
FH
(iv) x − 1 I 2m

H 2x K xK
2 , ,

F 4x 3 I
2
(v) G 3 − 2x J
9

H K
28
Ans : (i) 495, (ii) 9 , (iii) 5 , (iv) (–1)m 2mCm, (v) 2268
12

18. Find the 5th term from the end in the expansion of x − 1 FH I 12

xK
.

495
Ans :
x4
96 Commercial Mathematics and Statistics

19. In the binomial expansion of (a+x)n, the coefficient of 4th and 13th terms are equal to
each other, find n.
Ans : 15.

F
20. Find the value of k if the constant term in the exponsion of G x + k2
IJ 10

H x K is 405.

Ans : + 3.
21. In the expansion of (x+1) the coefficient of (2r+2) term is equal to the coefficient of
41 th

(4r–1)th term; find r.

Ans : 7.
22. If the 21st and the 22nd terms in the expansion of (1–x) are equal; find x.
44

Ans : − 7 .
8

FH
23. In the expansion of a + x I 9

3K
, the coefficient of x2 and x3 are equal; find a.

Ans : 79 .
24. Find the coefficient of x6y5 in the expansion of (x+y)11.
Ans : 462.
25. In the expansion of (1+x) m+n
where m, n∈N, prove that the coefficients of x and xn are m

equal.
26. Find the last three terms in the expansion of (x+x 2)8.
Ans : 28x14, 8x15, x16.
 (97)

UNIT-3 3.1 SET THEORY

3.1.1. INTRODUCTION :
In the later part of 19th century, George Cantor, a German mathematician introduced ‘Set
Theory’ as a new discipline of Mathematics Now a days, Set Theory is one of the basic
theories of Mathamatics which is used in every branch of knowledge like science, social-
science, commerce etc. where use of Mathematics has become essential.

3.1.2. CONCEPT OF SET AND ELEMENTS :

According to Cantor’s concept, A set is a collection of well-defined and distinct objects.
Here we assume that the word set is synonymous with the words ‘collection’, ‘aggregate’,
‘class’ and is comprised of elements. The words ‘element’, ‘object’, ‘member’ are synonymus.
In the definition, given above, the word well-defined means that given any object it must
be possible to tell beyond doubt whether that object belongs to the collection or not. By
distinct we mean that no two elements of the set are same e.g.
(i) The collection of all odd numbers brom 1 to 20 is a set. Because one can immediately
say that 19 is a member of that collection but 16 is not a member.
(ii) The collection of all good cricket players of India is not a set since the term ‘good
player’ is vague and it is not well defined.
Similarly the collection of all beautiful girls, studying in Cotton College is not a set.
However the collection of all girls studying in Cotton College is a set.
 The objects which are listed in a set are called the elements of the set.
 A set is named by using capital letter of English alphabet.
e.g. G = Set of students of Gauhati Commerce College.
 The elements of a set are usually denoted by small letters of English alphabet.
 To indicate that a particular element is a member of a set, we use the Greek symbol
Capital Epsilon (∈) e.g. if an element ‘a’ is a member of the set ‘s’, we write it as a∈s
(read as ‘a belongs to s’)
On the other hand, if we want to express that a particular element is not a member of that
set, we use the symbol ∉ e.g. if b is not a member of the set ‘s’, we express it as b∉s (read
as ‘b does not belong to s’)

C.Math(2)–7
98 Commercial Mathematics and Statistics

Some examples of set :

1. The collection of vowels of English alphabet. This set contains five elements namely
a, e, i, o, u.
2. The collection of first five prime numbers is a set containing the elements 2, 3,
5, 7, 11.
3. The collection of all districts of Assam is a set.
4. The collection of all past prime ministers of Indian Union is a set.

3.1.3. REPRESENTATION OF A SET :

A set is represented or described by using any one of the following two methods–
(i) Roaster or Tabular Method : In this method, the elements of a set are listed in any
order with braces {}, being separated by commas, e.g. if V is the set of vowels of English
alphabet, then it is written as
V = {a, e, i, o, u} or
V = {e, u, i, a, o}
(ii) Rule or Set Builder Method : In this method a set is described by a characterizing
property P(x) of its elements x. In such a case, the set is described by {x | P(x) holds} or {x
: P(x) holds} which is read as ‘the set of all x such that P(x) holds’. The symbol ‘:’ or ‘|’ is
read as ‘such that’. e.g. V={x:x is a vowel of English alphabet}
Note : (i) Repetition of the elements in a set is not allowed as by definition the elements
of a set must be distinct. e.g. P = {1, 2, 3, 5, 5, 5} is same as P={1, 2, 3, 5}
(ii) It should be kept in mind that out of the twenty six English alphabets, the
alphabets C, I, N, Q, R, W, Z are reserved for the sets mentioned below
N = Set of Natural numbers
W = Set of Whole numbers
I or Z = Set of Integers
Q = Set of Rational numbers
R = Set of Real numbers
C = Set of Complex numbers.
[we have discussed about these numbers in the chapter ‘Real Number System’
in H.S. 1st year class]
 3.1 Set Theory 99

WORKED OUT PROBLEMS :

{1 2 3 4 5 6 7 8 9
}
Example 1 : Write the set 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 in the set builder method.

Solution : We observe that each element in the given set has the denominator one more
than that of the denominator. Also the numerator begins from 1 and do not
exceed 9. Hence in the st builder method the given set may be written as

{x:x = n n+ 1 , n ∈N, n ≤ 9}
Example 2 : Write the set A = {x : x∈z, x2 < 25} in the roaster form.
Solution : We observe that the squares of the integces 0, + 1, + 2, + 3, + 4 are less than
25. Therefore, the set A in roaster form is
A = {–4, –3, –2, –1, 0, 1, 2, 3, 4}

3.1.4. TYPES OF SETS :

Singleton Set : A set having only one element is called a singleton Set e.g.
(i) The set of Lady Prime Minister of India = {Indira Gandhi}
(ii) The set of natural satellite of the earth = {moon}
(iii) The set of even prime number = {2}
All the above three sets are singleton set.
Finite Set : A set is called a finite set if its elements can be listed (counted or labelled) by
natural numbers 1, 2, 3, ............ and the process terminates at certain natural number (say n)
Cardinal number of a finite Set : The number n in the above definition is called the
cardinal number of a finite set A and is denoted by n(A)
e.g. The set of days in a week is a finite set. If we denote the set by D, then n(D) =7.
Infinite Set : A set whose elements can not counted by using any natural number is called
an infinate set.
e.g. Set of all points in a plane is an infinite set.

3.1.4. EQUIVALENT SETS :

Two finite sets A and B are said to be equivalent if n(A)=n(B) i.e. they contain the same
number of elements and is denoted by A ~ B.
Eg. If A = {a, b, c}
B = {1, 2, 3}
Here n(A) = n(B) = 3
100 Commercial Mathematics and Statistics

3.1.5. EQUAL SETS :

Two sets A and B are said to be equal if every element of A is a member of B and every
element of B is a member of A and is denoted by A=B.
E.g. If A = {1, 2, 5, 6}
B = {5, 2, 6, 1}
Then A=B
when A and B are not equal we write A≠B.

Note : If A=B then A~B.

But A~B does not always impley that A=B.
Example 3 : Which of the following sets are finite and which are infinite :
(i) A = {x : x∈z and x2–7x+12=0}
(ii) B = {x : x∈z and x2 is odd}
(iii) D = {x : x∈z and x2 = 64}
(iv) E = {x : x∈z and x<3}
Solution : We have
(i) A = {x : x∈z and x2–7x+12=0} = {3, 4} So, A is a finite set.
(ii) B = x : x∈z and x2 is od}.
= {............ –7, –5, –3, –1, 1, 3, 5, 7 ............}
clearly B is an infinite set
(iii) D = {x : x∈z and x2=64} = {–8, 8}
clearly D is a finite set.
(iv) E = {x : x∈z and x<3}
= {........... –3, –2, –1, 0, 1, 2}
clearly E is an infinite set.
Example 4 :Which of the following pairs of sets are equal and which are equivalent?
A = {x : x is a letter of the word ‘FLOW’}
B = {x : x is a letter of the word ‘FOLLOW’}
L = {x : x is a letter of the word ‘LATER’}
M = {x : x is a letter of the word ‘CIRCLE’}
Solution :
Here A : {f, l, o, w}
B = {f, o, l, w}
 3.1 Set Theory 101
L = {l, a, t, e, r}
M = {c, i, r, l, e}
So, A = B and L ~ M

3.1.6 OPERATION ON SETS :

Like addition, multiplication, subtraction and other operations on numbers in arithmetic,
there are catain operations on sets– mainly union, interection and difference by using which
we may combine any two sets.
3.1.6.1 UNION OF TWO SETS : Let A and B are any two sets. The union of A and
B is the set consisting of all those elements, each one of which is contained either in A or in
B or in both A and B and is denoted by A∪B (read as A union B)
Thus A∪B = {x : x∈A or x∈B}
Consequently, x ∈ A∪B ⇒ x ∈ A or x ∈ B
and x ∉ A∪B ⇒ x ∉ A or x ∉ B
Imp : (i) A∪B = B∪A
(ii) A∪A = A
E.g. If A = {a, b, c, d, e}
B = {b, e, f, g}
Then A∪B = {a, b, c, d, e, f, g}

3.1.6.2 INTERSECTION OF TWO SETS : Let A and B are any two sets. The
intersection of A and B is the set consisting of all those elements which belongs to both A
and B and is denoted by A∩B (read as intersection B).

Thus A∩B = {x | x∈A and x∈B}

Consequently, x ∈ A∩B ⇒ x ∈ A or x ∈ B
and x ∉ A∩B ⇒ x ∉ A or x ∉ B
E.g. If A = {a, b, c, d, e}
B = {b, e, f, g}
Then A∩B = {b, e}
Imp : (i) A∩B = B∩A
(ii) A∩A = A
102 Commercial Mathematics and Statistics

3.1.6.3 DIFFERENCE OF TWO SETS : Let A and B are any two sets. The difference
of A and B is the set consisting of all those elements which belongs to A but does not belong
to B and is denoted by A–B or A/B (read as A difference B)
Similarly, the difference of B and A is the set consisting of all those elements which
belong to B but does not belong to A and is denoted by B–A or B/A (read as B
difference A).
Thus A–B = {x | x ∈ A but x ∉ B}
and B–A = {x | x ∈ B but x ∉ A}
E.g. If A = {a, b, c, d, e}
and B = {b, e, f, g}
Then A–B = {a, c, d}
and B–A = {f, g}

Note : To find the difference of any two sets A and B, first mark the elements common
to both A and B. Then to get A–B write the remaining elements of A. Similarly,
to get B–A write the remaining elements of B.
Imp: A–B ≠ B–A
3.1.6.4 SYMMETRIC DIFFERENCE OF TWO SETS : Let A and B are any two
sets. The symmetric difference of A and B is denoted by A ∆B (read as A symmetric difference
B) where A ∆B = (A–B) ∪ (B–A).
E.g. If A = {a, b, c, d, e}
B = {b, e, f, g}
Then, A ∆B = (A–B) ∪ (B–A)
= {a, c, d} ∪ {f, g}
= {a, c, d, f, g}

3.1.7 CONCEPT OF NULL OR EMPTY OR VOID SET :

From the above discussion, it is clear that intersection of any two sets is also a set.
Let us suppose that
A = {2, 6, 9}
B = {4, 5}
By difinition of intersection, A∩B must be a set. But in this case, there is no element
 3.1 Set Theory 103
common to both A and B. Hence we may come across a situation that there may be a set
having no element which contradicts the very defn of set that a set is a collection of objects.
So, the mathematicians have categorised this type set as a special type of set and it is
named as Null Set.
Thus, a set having no element is called a Null Set, Void Set or Empty Set. A null set is
generally denoted by the Greek alphabet φ (pronounced phye)
In Roaster Method it is denoted by { }
E.g. (i) The set of odd numbers lying between 9 and 11.
(ii) The set of integers lying between 5 and 6.
(iii) The set of evcn prime numbers > 2.
Disjoint Set : Any two sets A and B are said to be disjoint if they have no common
element i.e. A∩B = φ.
E.g. Set of positive integers and set of negative integers are disjoint sets as there is no
integer which is both positive as well as negative

3.1.8 SUBSETS AND SUPERSETS :

Let A and B are any two sets such that every element of A is in B, then we say that A is
a Subset of B and we write it as A⊆B (read as A is a subset of B)
Also if A is a subset B then B is said to be a superset of A and denoted by B⊇A)
E.g. If A = {1, 3, 4, 7}
B = {1, 2, 3, 4, 5, 6, 7}
Then A⊆B and B⊇A

Note : (i) If there exists a single element in A which is not in B, then A is not a subset
of B and we express it as A∉B.
(ii) Two sets A and B are said to be equal if A⊂B and B⊂A conversely, if A = B,
then A⊂B & B⊂A.
E.g. A = {1, 2, 5, 6}
B = {1, 2, 3, 4, 5}
Here A ∉ B as 6∈A but 6∉B.

3.1.9 PROPER SUBSET :

If A and B are any two sets that every element of A is in B and B contains at least one
element which is not in A, then A is said to be a proper subset of B and we write it as A⊂B.
E.g. N ⊂ I
104 Commercial Mathematics and Statistics

whereN = Set of natural nos

I = Set of Integer
Note : (i) If a subset is not proper it is said to be an improper subset.
(ii) Every set is a subset of itself but it is not proper subset.
(iii) Null set φ is a proper subset of every set.
(iv) Every non-empty set A has at least two sebsets – A and φ of which A is
improper and φ is proper.
(v) φ has no proper subset.

3.1.10 NUMBER OF SUBSETS : If a set contain n elemens, it has got 2n subsets.

3.1.11 FAMILY OF SET OR SET OF SETS OR CLASS OF SETS :
If all the elements of a set are sets themselves, then it is called a set of sets, family of set or
class of sets.
E.g. Set of all lines in a plane is a family of set since each line itself is a set of points.

3.1.12 POWER SET :

The family or collection of all subsets of a given set A is called the power set of A and is
denoted by P(A)
E.g. If A = {1, 2, 3}
Then P(A) = {φ, {1}, {2}, {3}, {1,2}, {2,3}, {1,3}, {1,2,3},
Imp : Ifn(A) = k, n[P(A)] = 2k

3.1.13 UNIVERSAL SET :

In any discussion in set theory, there always happens to be a set that contains all sets
under consideration i.e. it is a superset of each of the given sets. Such a set is called the
Universal set and is denoted by U.
E.g. If A = {1, 2, 3}
B = {2, 4, 5, 6}
C = {1, 3, 6, 8, 9}
Then U = {1, 2, 3, 4, 5, 6, 7, 8, 9} may be taken as the universal set.
Similarly, U1 = {1, 2, 3, 4, 5, 6, 7, 8, 9, 10}
U2 = {1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11}
.................. are also may be taken as the universal set.
Note : Thus universal set is not unique. There may be infinite number of universal sets.
 3.1 Set Theory 105

3.1.14. COMPLEMENT OF A SET :

Let A be any set and U be its universal set. Then the set of all these elements which are in
U but not in A is called the complement of A and is denoted by A/ or AC
∴ A/ = {x | x∈U but x∉A}
= U–A
E.g. If U = {1, 2, 3, .............. 10}
and A = {2, 4, 5, 7, 8}
Then A/ = {1, 3, 6, 9, 10}

Note : (i) A∪A/ = U (ii) A∩A/ = φ

(iii) (A/)/ = A (iv) U/ = φ
(v) φ/ = U

3.1.15 VENN DIAGRAM :

Sometimes pictures are very helpful to make some abstract mathematical ideas concrete.
First of all Swiss Mathematician Euler gave an idea to represent a set by the points in a
closed curve Later on, British mathematician John-Vcnn
(1834-1883) brought this idea to practice. That is why the ∪
...................
diagrams drawn to represent sets are called Venn-Euler . . . . . . . . . . . . .
diagram or simply Venn Diagram. . . . . . . . . . .
.................
In Venn diagram the universal set U is represented by . . . . . . . . . . .A. . . . . .
points within a rectangle and any subset A of U is represented . . . . . . . . . . . . . . . . .
by points in a closed circular region within this rectangle. . . . . . . . . . . . . . . . . .
Different set operations like union, intersection etc. may be . . . . . . . . . . . . . . . . .
represented by using Venn-Diagram.

UNION AND INTERSECTION :

The union and intersection of two sets A and B is represented by the shaded region of
Fig. 3.1.15(a) and 3.1.15(b) respectively.
A∪B A∩B

B B
A A

3.1.15(a) 3.1.15(b)
106 Commercial Mathematics and Statistics

COMPLEMENT :
The complement of a set A ie A/ or AC is represented by the shaded region of U outside
the region of A [Fig. 3.1.15(c)]
A′ =
∪
A

3.1.15(C)

DISJOINT SETS
The disjoint sets A and B ie A∩B = φ is represented as in Fig.3.1.15(d).
∪
A B
A∪B = φ

3.1.15(d)
DIFFERENCE :
The difference of A and B ie A–B and difference of B and A ie B–A is represented by
Fig.3.1.15(e) and Fig.3.1.15(f) respectively.

A∪B A∩B

3.1.15(a) 3.1.15(b)

IMPORTANT RESULTS DERIVED FROM VENN DIAGRAM :

Suppose A and B are any two non empty intersecting sets as shown in Fig.3.1.15(g).
While counting the elements of A∪B, the elements of A∩B are counted twice, once in the
counting of elements of A and second time in the counting of elements of B.
 3.1 Set Theory 107
∪

B
A
A∩B
A–B B–A

3.1.15(g)

Thus, n(A∪B) = n(A) + n(B) – n(A∩B)

Also, if A∩B = φ, then
n(A∪B) = n(A) + n(B)
It may also be observed from Venn Diagram that :

(i) n(A) = n(A–B) + n(A∩B)

(ii) n(B) = n(B–A) + n(A∩B)
(iii) n(A∪B) = n(A–B) + n(A∩B) + n(B–A)

3.1.16 LAWS OF ALGEBRA OF SETS :

There are certain fundamental laws of algebra of sets which are true for any sets. These
laws are given below :
(a) Idempotent Laws :
(i) A∪A = A (ii) A∩A = A
(b) Identity Laws :
(i) A∪φ = A (ii) A∩φ = φ
(iii) A∪U = U (iv) A∩U = A
(c) Commutative Law :
(i) A∪B = B∪A (ii) A∩B = B∩A
(d) Associative Law :
(i) (A ∪ B) UC = AU (B∪C) (ii) (A∩B)∩C=A∩(B∩C)
(e) Distributive Laws :
(i) A ∪ (B∩C) = (A∪B) ∩ (A∪C)
(ii) A ∩ (B∪C) = (A∩B) ∪ (A∩C)
108 Commercial Mathematics and Statistics

(f) De-Morgans Law :

(i) (A∪B)/ = A/∩B/
(ii) (A∩B)/ = A/∪B/

WORKED OUT EXAMPLES :

Example 5 : Which of the following collections are sets?
(i) Collection of all even numbers < 50.
(ii) Collection of all talented writers of India.
(iii) Collection of all chairs and tables of your college.
(iv) Collection of all long rivers of the world.
Solution :
(i) It is a set
(ii) It is not a set
(iii) It is a set
(iv) It is not a set
as we know that only well-defined collections are set.
Example 6 : Describe the following set in Roaster as well as Rule Method.
(i) Set of root of the equation
x2–7x–30 = 0
(ii) Set of letters of the word ‘Mathematics’.
(iii) Set of prime numbers < 25.
(iv) Set of two digits number whose sum of two digits is 7.
(v) Set of integers whose square is < 30.
Solution:
(i) Solving x2–7x–30 = 0
⇒ (x–10)(x+3) = 0
⇒ x = 10 or –3
∴ A = {10, –3}
= {x | x2–7x–30 = 0}
(ii) A = {m, a, t, h, e, i, c, s}
= {x | x is a letter of the word ‘Mathematics’}
(iii) A = {2, 3, 5, 7, 11, 13, 17, 19, 23}
= {x | x is prime and x < 25}
 3.1 Set Theory 109
(iv) A= {16, 61, 25, 52, 34, 43, 70}
= {x | x is a two digit number whose sum of two digits is 7}
(v) A = {–5, –4, –3, –2, –1, 0, 1, 2, 3, 4, 5}
= x | x∈I and x2 < 30}

Example 7 : Which of the following set are null? Give reasons.

(i) Set of prime numbers between 23 and 29.
(ii) Set of positive integers satisfying x 2–8x–20 = 0.
(iii) Set of even prime numbers > 2.
(iv) Set of rational number satisfying x2–5 = 0.
(v) {x : 5 < x < 6, x∈N}.
Solution :
(i) Set of prime numbers between 23 and 29 = φ as all the numbers 24, 25, 26, 27
and 28 lying between 23 and 29 are not prime.
(ii) Solving x2–8x–20 = 0
⇒ (x–10)(x+2) = 0
⇒ x = 10 or –2
∴ Set of positive integers satisfying x2–8x–20 = 0 is {10} which is not
a null set.
(iii) Set of even prime nos > 2 = φ as all even nos > 2 are divisible by 2.
(iv) x2–5 = 0
⇒ x2 = 5
⇒ x = + 5 which is not rational
∴ Set of rational number satisfying x2–5 = 0 is a null set.
(v) {x | 5 < x < 6, x∈N} = φ as there is no natural number lying between 5 and 6.

Example 8 : Which of the following statement are correct and which are incorrect? Give
reasons.
(i) {1, 2, 3} ⊂ {1, 3, 5, 7}
(ii) {3, 4} ∈ {1, 2, {3, 4}, 5}
(iii) φ ⊂ A
(iv) {3} ∈ {1, 3, 5}
(v) {0, u} ⊂ {x : x is a vowel of English alphabet}.
110 Commercial Mathematics and Statistics

Solution :
(i) Incorrect as 2 ∉{1, 3, 5, 7}.
(ii) Correct as {3, 4} is an element of {1, 2, {3, 4}, 5}
(iii) Correct as it is stated above that φ is a proper subset of every set.
(iv) Incorrect as {3} is not an element of {1, 3, 5}.
(v) Correct as {0, u} ⊂ {a, e, i, o, u} because there are five vowels in English alphabet.

Example 9 : Which of the following pairs of sets are disjoint.

(i) {1, 2, 3, 4} and {x | x is a natual number and 4 < x < 6}.
(ii) {a, e, i} and {b, c, d}.
(iii) A = {x | 5 < x < 9, x∉N}
B = {x | x2–16 = 0}.
Solution :
(i) Given A = {1, 2, 3, 4}
Here B = {4, 5, 6}
∴ A∩B = {4} ≠ φ
So, A and B are not disjoint.
(ii) Here {a, e, i} ∩ {b, c, d} = φ
They are disjoint sets.
(iii) A = {6, 7, 8}
B = {–4, 4}
Since A∩B = φ
∴ A and B are disjoint sets.
Example 10 : If A = {3, 5, 7, 9, 11}
B = {7, 9, 11, 13}
C = {11, 13, 15}
D = {15, 17}
Find (i) A∩C (ii) A∩ (B∪D)
(iii) (A∩B) ∪ (C∪D) (iv) (A∪D) ∩ (B∪C)
(v) (A–B)∪(C–D)
Solution : Given A = {3, 5, 7, 9, 11}
B = {7, 9, 11, 13}
C = {11, 13, 15}
D = {15, 17}
 3.1 Set Theory 111
(i) A∩C = {3, 5, 7, 9, 11} ∩ {11, 13, 15}
= {11}
(ii) A∩ (B∪D) = {3, 5, 7, 9, 11} ∩ {7, 9, 11, 13, 15, 17}
= {7, 9, 11}
(iii) (A∩B) ∪ (C∪D) = {7, 9, 11} {11, 13, 15, 17}
= {7, 9, 11, 13, 15, 17}
(iv) (A∪D) ∩ (B∪C) = {3, 5, 7, 9, 11, 15, 17}{7, 9, 11, 13, 15}
= {7, 9, 11}
(v) (A–B) ∪ (C–D) = {3, 5}{11, 13}
= {3, 5, 11, 13}
Example 11. If U = {a, b, c, d, e, f, g, h}
A = {a, c, e, g}
B = {d, e, f, g}
C = {a, f, g, h}
(i) Find (A–B)/
(ii) Find A/ ∩ (B/–C/)
(iii) Find (A–B)/ ∪ (B–C)/
(iv) Show that (A∩B)/ = A/∪B/
Solution : Given U = {a, b, c, d, e, f, g, h}
A = {a, c, e, g}
B = {d, e, f, g}
C = {a, f, g, h}
(i) (A–B) = {a, c,}/ = {b, d, e, f, g, h}
/

(ii) Here (B/–C/) = {a, b, c, h} – {b, c, d, e}

= {a, h}
∴ A ∩ (B –C ) = {b, d, f, h} ∩ {a, h}
/ / /

= {h}
(iii) (A–B) ∪ (B–C)/ = {a, c}/ ∪ {d, e}/
/

= {b, d, e, f, g, h} ∪ {a, b, c, f, g, h}
= {a, b, c, d, e, f, g, h}
(iv) L.H.S. = (A∩B)/
= {e, g}/
= {a, b, c, d, f, h}
112 Commercial Mathematics and Statistics

R.H.S. = A/ ∪ B/
= {b, d, f, h} ∪ {a, b, c, h}
= {a, b, c, d, f, h}
∴ (A∩B)/ = A/∪B/
Example 12 : In a Vonn diagram, shade the following
(i) A– (B∪C)
(ii) (A–B)/
(iii) A ⊂ (B∩C), B ⊂ C, C≠B, C≠A
Solution :
(i) A B A B

C
C

B∪C = ∴ A–(B∪C) =

(ii) ∪ ∪
A B A

A–B = (A–B)C=
(iii)
C
B
A

A ⊂ (B∩C), B ⊂ C, C≠B, B≠A=

 3.1 Set Theory 113
Example 13 : In a class there are 35 students who takes Bournvita or Horlicks of these, 25
students take Bournvita and 16 students take Horlicks. How maney students
takes both Bournvita and Horlicks.
Solution : Let B = Set of students taking Bournvita
H = Set of students taking Horlicks.
∴ n (B) = 25 n (H) = 16
and n (B∪H) = 35 [since word ‘or’ is given]
To find n (B∩H) [ since word ‘and’ is given]
we have n (B∪H) = n(B) +n(H) – n(B∩H)
⇒ 35 = 25+16 – n(B∩H)
⇒ n(B∩H) = 41–35 = 6
∴ No of students taking both Bournvita and Horlicks = 6.

Example 14 : A survey conducted in a town having 600 families it was found that 150
families take the Assam Tribune, 225 families take Amar Asom and 100
families take both the newspapers. Find how many families takes
(i) none of the newspapers.
(ii) only the Assam Tribune.
(iii) only the Amar Asom.

Solution : Let A = Set of families who takes the Assam Tribune.

B = Set of families who takes Amar Asom.
∴ n (U) = 600
n (A) = 150, n (B) = 225, (n (A∩B) = 100
(i) We have
n (A∪B) = n(A) + n(B) – n(A∩B)
= 150 + 225 – 100
= 375 – 100
= 275
∴ Families who take none of the newspapers
= n(A/∩B/)
= n(A∪B)/
= n(U) – n(A∪B)
= 600 – 275
= 325
C.Math(2)–8
114 Commercial Mathematics and Statistics

(ii) Families who take only the Assam Tribune A B

= n(A–B)
= n(A) – n(A∩B)
A–B B–A
= 150 – 100
= 50 ↑

(iii) Families who take only Amar Asom 
B∩A
= n (B–A)
= n(B) – n(A∩B)
= 225 – 100
= 125

SUMMARY

 A set is a well-defined collection of objects.

 A set which contains no element is called an empty set.
 A set which consists of a definits number of elements is called a finite set, otherwise,
the set is called infinite set.
 Two sets A and B are said to be equivalent if they contain the same number of elements.
 Two sets A and B are said to be equal if they contain exactly the same elements.
 A set A is said to be a subset of the set B, if every elements of A is also an element of
B.
 The power set of a set S, is the collection of all subsets of S and is dended by P(S).
 The union of two sets A and B is the set of all those elements with belongs to either A
or B and is denoted by A∪B.
 The intersection of two sets A and B is the set of all those elements which belongs to
both A and B and is denoted by A∩B.
 The difference of two sets A and B is the set of all those elements which belongs to A
but not to B and is denoted by A–B.
 The complement of a subset A of universal set U is the set of all elements of U which
are not the element of A.
 For any two sets A and B, (A∪B)/ = A/∩B/ and (A∩B)/ = A/∪B/
 If A and B are any two sets such that,
(i) A∩B = φ, then n(A∪B) = n(A) + n(B)
(ii) A∩B ≠ φ, then n(A∪B) = n(A) + n(B) – n(A∩B)
 3.1 Set Theory 115

EXERCISE 3.1

1. State which of the following collections are sets and which are not? Justify your answer.
(i) Teachers of your college.
(ii) The collection of all prime numbers < 100.
(iii) The collection of most talented writers of Assam.
(iv) The collection of Novel written by Dr. Bhabendra Nath Saikia.
(v) The team of eleven best cricket players of Assam.
2. The team following sets using Roaster as well as rule method.
(i) Set of letters in the word ‘Engineering’.
(ii) Set of natural nos whose square is less than 50.
(iii) Roots of equation 4x2–8+3=0.
(iv) Set of prime factors of 24.
(v) Set of fractions of the form, n where n is a natual number..
n +1
(vi) Set of two digits number whose sum of two digits is 6.
3. State which of the following sets are finite and which are infinite.
(i) {x : x∈N, x2–5x–14=0}
(ii) {x : 3x–1 = 0}
(iii) {x : x is a real number between –1 and 0}
(iv) {x : x is a graduate under Gauhati University}
(v) All even prime numbers.
(iv) Integers which are < 30.
4. State which of the following sets are equal and which are equivalent
A = {x : x is an alphabet of the word ‘loyal’}
B = {x : x is an alphabet of the word ‘wolf’}
C = {x : x is an alphabet of the word ‘alloy’}
D = {x : x is a prime no < 10}
5. Which of the following sets are null?
(i) Set of odd natural number divisible by 2.
(ii) A = {x : x∈N, x < 5 and x > 9}
116 Commercial Mathematics and Statistics

(ii) B = {x : x is a real root of x2+4=0}

(iii) D = {x : x+8 = 8}
6. Make correct statement by filling in the symbols ⊂ or ∈ in the blank spaces.
(i) {4, 5, 6 } ...... {1, 2, 3, 4, 5, 6}
(ii) {c, e, g} ...... {a, b, c, d, e}
(iii) {x : x is a student of H.S. 2nd year} ......... {x : x is a student of B.Com 3rd year}
(iv) {x : x is a prime number} ......... {x : x is an integer}
(v) {x : x is a square} ......... {x : x is a rhombus}
(vi) {x : x is a equilateral triangle} .......... {x : x is a right angled triangle}
(vii) {x : x is a circle} ......... {x : x is a circle of radius 2 unit}
7. Which of the following statements are correct and which are incorret.
(i) {2} ⊂ {1, 2, 4}
(ii) {a, b} ⊂ {x | x is a vowel of English alphabet}
(iii) {1, 4} ∈ {1, 4, 6, 7}
(iv) {x : x + 8 = 8} = φ
(v) {a} ∈ {a, b, {a}, {b}}
(iv) {φ} ⊂ {p, q, s}
8. Which of the following statements are incorrect and why?
given A = {a, b, {c, d}, e}
(i) {c, d) ⊂ A
(ii) {c, d) ∈ A
(iii) {a, b, e) ∈ A
(iv) φ ⊂ A
(v) a ⊂ A
(vi) {{c, d}, e} ⊂ A
9. Which of the following set is a singleton set?
(i) {x : x∈R, 2x2–x = 0}
(ii) {x : x∈N, 7x = 9}
(iii) {x : x2 = 36}
(iv) {x : 2x2–9x–5 = 0, x∈N}
10. If A = {x : x is an integer, 1 < x < 12}
B = {x : x is a prime no < 20}
C = {x : x is an odd natural number < 15}
 3.1 Set Theory 117
Find (i) A ∩ B ∩ C
(ii) A – (B∪C)
(iii) B ∆C
(iv) C – B
(v) (A∩B) ∪ (A∩C)
(vi) (A–B) ∪ (B–C)
11. Which of the following pair of sets are disjoint.
(i) A = {x : x∈N, 5 < x < 9}
B = {x : x2–4x–12 = 0}
(ii) L = {x : x is a prime no < 5}
M = {x : x2–16x+63 = 0}
(iii) C = {x : x is a vowel of English alphabet}
D = {x : x is a one of the last five letters of English alphabet}
12. Find A∩B is each of the following cases.
(i) A = {c, d, e, f} B = {d, f, g, h}
(ii) A = {x : x is an even no < 8}
B = {x : x is an even prime number}
(iii) A = {x : 5 < x < 10}
B = {x : 4 < x < 8}
13. If U = {1, 2, 3, 4, 5, 6, 7, 8, 9} be the universal set and
A = {2, 3, 5, 7}
B = {1, 4, 7, 8}
C = {2, 3, 6, 8, 9}
Find (i) B ∩ (A–C)
(ii) A/ ∩ (B–C)/
(iii) A/ ∩ (B ∆ C)
(iv) B/ ∩ (A/–C/)
14. If A = {a, b, c, d}
B = {b, d, f, h}
C = {c, d, e, f}
Verify that
(i) A ∩ (B∪C) = (A∩B) ∪ (A∩C)
118 Commercial Mathematics and Statistics

(ii) A–(B∪C) = (A–B) ∩ (A–C)

(iii) A–(A–B) = A∩B
(iv) A ∩ (B–C) = (A∩B)–(B∩C)
15. If S = Set of all boarders in a hostel.
F = Set of all boarders who takes fish.
M = Set of all boarders who takes meat.
and G = Set of all boarders who takes egg.
Express the following set in language.
(i) F/ (ii) (M∩G)/ (iii) F∪M
(iv) M–G (v) S – (M∪G)
16. Verify the following using Venun Diagram.
(i) (A∪B) ∩ (A∪C) = A ∪ (B∩C)
(ii) A – (B∪C) = (A–B) ∩ (A–C)
(iii) (A/∪B/)/ = A∩B
17. There are 100 students in a class who takes at least one ofthe subjects commercial
Mathematics or Economics. If 75 students take commercial Mathematics and 60 students
take Economics. Find the number of students who have taken.
(i) Both the subjects.
(ii) Only Commercial Mathematics.
(iii) Only Economics.
18. In a club of 100 members, 40 do not like to play football, 30 do not like to play volleyball
and 45 like to play both the game. Find the number of members who
(i) like to play only football
(ii) like to play only volleyball
(iii) do not like to play none of the games.
19. Out of 150 invities in a party, 90 prefer only apple juice, 20 prefer only mango juice and
30 has taken both the juice. Find the number of invities who have taken none of the two
juice.
20. In a group, 100 know Assamese, 50 know English and 25 know both the language. If
each of the members know at least one of the two languages, find the total number of
members in the group.
 3.1 Set Theory 119

ANSWERS 3.1

1. (i), (ii), (iv) are set.

(iii), (v) not set.
2. (i) {e, n, g, i, r}
{x | x is a letter of the word ‘Engineering’}
(ii) {1, 2, 3, 4, 5, 6, 7}
{x : x∈N, x2 < 50}

{ 1 3}
(iii) 2 , 2

{x : x is a root of the equation 4x2–8x+3=0}

(iv) {2, 3}
{x | x is a prime factor of 24}

(v) { 12 , 23 , 43 , 45 ,...........}
{x:x = n n+ 1 , n ∈N}
(vi) {15, 51, 24, 42, 60, 33}
{x : x = 10k+b where l+k=6, l, k∈N}
3. Finite → (i), (ii), (iv), (v)
Infinite → (iii), (vi)
4. A = {l, o, y, a}
B = {w, o, l, f}
C = {a, l, o, y}
D = {2, 3, 5, 7}
∴A= C, A~B, A~C, A~D
B~C, B~D, C~D
5. Null set → (i), (ii), (iii)
6. (i) ⊂ (ii) ⊄ (ii) ⊄
(iv) ⊂ (v) ⊂ (vi) ⊄ (vii) ⊄
120 Commercial Mathematics and Statistics

7. Correct → (i), (v)

Incorrect → (ii), (iii), (iv), (vi)
8. (i) Incorrect as {c, d} ∈ A
(iii) Incorrect as {a, b, c} ⊂ A
(v) Incorrect as a ∈ A
9. (ii), (iv)
10. (i) {3, 5, 7, 11}
(ii) {4, 6, 8, 10, 12}
(iii) {1, 2, 9, 17, 19}
(iv) {1, 9}
(v) {1, 2, 3, 5, 7, 9, 11}
(vi) 1, 2, 4, 6, 8, 9, 10, 12, 17, 19}
11. (ii) L∩M = φ, L and M are disjoint
(iii) C∩D = φ, C and D are disjoint
12. (i) {d, f}
(ii) {2}
(iii) {x | 5 < x < 8}
13. (i) {7}
(ii) {6, 8, 9}
(iii) 1, 4, 6, 9}
(iv) {6, 9}
14. (i) Set of boarders who does not take fish.
(ii) Set of boarder who does not take both meat and egg.
(iii) Set of boarders who take both fish and meat.
(iv) Set of boarder who take meat but not egg.
(v) Set of boarders who takes neither meat nor egg.
17. (i) 35, (ii) 40, (iii) 25
18. (i) 15, (ii) 25, (iii) 15
19. 10
20. 125
 3.2 Determinants 121

3.2 DETERMINANTS
3.2.1 INTRODUCTION
The theory of determinants had its origin in the study of system of simultaneous linear
equation, but it has many other applications as well. Many complicated expressions which
involve lengthy calculations may be solved easily if they are expressed as determinants.
Let us consider the following equations :
a1x + b1 y = d1 .............(1)
a2 x + b2 y = d2 .............(2)
If a1b2 – a2b1 ≠ 0, solving (1) and (2) we get
b2d1− b1d 2
x=
a 1b 2− a 2 b1

a 1d 2− a 2d1
and y=
a 1b 2− a 2 b1
The algebraic expression (a1b2 – a2b1) is expressed in the form
a 1 b1
a 2 b2
which is called a determinant of second order. It has two rows and two columns. The
elements in the horizontal direction form rows and those in the vertical direction form columns.
1st column 2nd column
a1 b1 → 1st row
a2 b 2 → 2 nd row

The numbers a1, a2, b1, b2 which form the determinant are called the elements of the
determinant. a1b2, a2b1 are called the terms and the expression a1b2 – a2b1 is called the
expansion of the determinant.
The elements which lies on the line joining the 1st element and the last element of the
determinant are called diagonal elements.
The diagonals on which those diagonal elements lie is called Principal (or leading) diagonal.
e.g. In a1 b1
Principal Diagonal
a2 b2
a1 and b2 are diagonal elements.
122 Commercial Mathematics and Statistics

Note : (i) There are always equal number of rows and columns in a determinant.
(ii) A determinant is usually denoted by D or ∆.

3.2.2 EXPANSION OF A DETERMINANT OF SECOND ORDER

It is seen that the second order determinant
a 1 b1
= a 1b2 − b 2a 1
a 2 b2

shows that,
Expansion of a second order determinant = Product of the terms of leading diagonal-
Product of the remaining two diagonal elements.
Note : A second order determinant has 22 elements and give on expansion 2 terms.
e.g. 4 5 = 4 × 2 − 5 × −6 b g
−6 2 =8 + 30 =38

3.2.3 THIRD ORDER DETERMINANT

If we have nine numbers a1, a2, a3, b1, b2, b3, c1, c2, c3 and we arrange them in 3 rows and
3 columns like

a1 b1 c1
a2 b2 c2
a3 b3 c3

it is called a determinant of order 3. A third order determinant has 32 elements and give on
expansion 3 terms.
Note : (i) So, in general n2 numbers are arranged in n rows and n columns, it is said to
be a determinant of order n which on expansion gives terms.
(ii) Here we will restrict our discussion to determinant of order 2 and 3 only.

3.2.4 MINOR AND COFACTORS

The minor of any element in a determinant ∆ is the determinant obtained by omitting the
row and column to which the element belongs. Therefore in the determinant ∆ of order 3

ie ∆ = a 1 b1 c1
a2 b2 c2
a3 b3 c3
 3.2 Determinants 123

minor of a1 = b2 c 2 = b2c3 – b3c2

b3 c 3

minor of b2 = a 1 c1 = a1c3 – a3c1

a3 c3

The minor of any element in a 3rd order determinant is thus a second order determinant.
The co-factor of any element in a determinant is equal to the corresponding minor with a
proper sign.
Co-factor of any element
= (–1)R+C × minor of that element where R and C denotes the row and column in which
that particular element exists.
The co-factor of any element is generally denoted by the corresponding capital letter; for
instance, the co-factor of a1 is A1, b2 is B2 etc.
∴ Co-factor of a1 = A1 = (–1)1+1 b 2 c2
b3 c3

= + (b2c3 – b3c2)
Co-factor of b2 = B2 = (–1)2+2 a 1 c1
a3 c3

= + (a1c3 – a3c1)
Co-factor of c3 = C3 = (–1)3+3 a 1 b1
a2 b2

= +(a1b2 – a2b1)

3.2.5EXPANSION OF A DETERMINANT OF ORDER THREE

The rule for expansion of a third order determinant is as follows :

∆ = a1 b1 c1 = a1 b2 c2 –b1 a2 c2 +c1 a2 b2
a2 b2 c2 b3 c3 a3 c3 a3 b3
a3 b3 c3

= a1 (b2c3 – b3c2) – b1 (a2c3 – a3c2) + c1 (a2b3 – a3b2)

= a1 A1 + b1 B1 + C1 C1
124 Commercial Mathematics and Statistics

where A1, B1 and C1 are cofactors of the elements a1, b1 and c1 respectively.
Here we have expanded the determinant in terms of the elements of the 1st Row.
Expanding the determinant in terms of the element of first column we get–
a1A1 + a2A2 + a3A3
= a1 b2 c2 –a2 b1 c1 +a3 b1 c1
b3 c3 b3 c3 b2 c2
= a1(b2c3 – b3c2) – a2(b1c3 – b3c1) + a3(b1c2 – b2c1)
= a1(b2c3 – b2c2) – b1(a2c3 – a3c2) + c1(a2b3 – a3b2)
= a1A1 + b1B1 + c1C1
=∆
∴ Expansion of a third order determinant = Sum of the products of the elements of any
row or column and the corresponding co-factors of the elements.

e. g. Expand 4 3 −6
1 −2 5
0 −7 2

= 4 −2 5 −3 1 5 + ( −6) 1 −2
−7 2 0 2 0 −7
= 4(–4 + 35) –3 (2–0) –6(–7–0)
= 124–6+42
= 160

3.2.6 PROPERTIES OF DETERMINANTS

Now we are going to study some properties of determinants which simplifies its evaluation
by obtaining maximum number of zeros, in a row or column. These propertie sare true for
determinants of any order. However, we shall restrict ourselves upto determinants of third
order only.
Property 1 : The value of a determinant remain unchanged if its rows and columns are
interchanged.
Verification :
Let ∆ =a1 b1 c1
a2 b2 c2
a3 b3 c3
 3.2 Determinants 125
Expanding along 1st Row, we get
∆ = a1 (b2c3–b3c2) – b1 (a2c3–a3c2) + c1 (a2b3–a3b2)
By interchanging rows and columns of ∆ we get the determinant

∆1 = a1 a 2 a3
b1 b2 b3
c1 c 2 c3

Expanding along 1st column we get,

∆1 = a1 (b2c3–b3c2) – b1(a2c3–a3c2) + c1(a2b3–a3b2)
Hence, ∆ = ∆1
Note : This property is symbolically written as R ↔ C
Property 2 : If any two rows (or columns) of a determinant are interchanged, then sign of
the determinant changes.
Verification :
Let ∆ =a1 b1 c1
a2 b2 c2
a3 b3 c3

Expanding along first row, we get

∆ = a1 (b2c3–b3c2) – b1(a2c3–a3c2) + c1(a2b3–a3b2)
Interchanging first and third row, the new determinant is given by

∆1 = c1 c 2 c3
b1 b2 b3
a1 a 2 a3

Expanding alow third row we get

∆ 1 = a1 (c2b3–c3b2) – a2 (c1b3–c3b1) + a3 (c1b2–c2b1)
= – [a1 (b2c3–b3c2) – b1 (a2c3–a3c2) + c1(a2b3–a3b2)]
Clearly, ∆1 = – ∆
Similarly, we can verify the result by interchanging any two columns.

Note : This property is symbolically written as –

Ri ↔ Rj, if ith and jth row are interchanged.
Ci ↔ Cj, if ith and jth column are interchanged.
126 Commercial Mathematics and Statistics

Property 3 : If any two rows (or columns) of a determinant are identical (all corresponding
elements are same), then value of determinant is zero.
Verification :

Let ∆ =a 1 b1 c1
a2 b2 c2
a1 b1 c1

If we interchange R1 and R3, by property 2,

∆=–∆
⇒ 2∆ = 0
⇒ ∆=0
Property 4 : If each element of a row (or column) of a determinant is multiplied by a
constant k, then its value gets multiplied by k.
Verification :

Let ∆ =a1 b1 c1
a 2 b2 c 2
a 3 b3 c 3

and ∆1 be the determinant obtained by multiplying the elements of the first row by k.

Then ∆1 = ka 1 kb1 kc1

a2 b2 c2
a3 b3 c3

Expanding along 1st row, we get

∆1 = ka1 (b2c3–b3c2) – kb1 (a2c3–a3c2) + kc1 (a2b3–a3b2)
= k [a1 (b2c3–b3c2) –b1 (a2c3–a3c2) + c1 (a2b3–a3b2)]
= k∆
Hence ka 1 kb1 kc1 = k a 1 b1 c1
a2 b2 c2 a2 b2 c2
a3 b3 c3 a3 b3 c3

Remark : By this property we can take out any common factor from any one row or
any one column of a given determinant.
 3.2 Determinants 127
Property 5 : If some or all elements of a row (or column) of a determinant are expressed
as sum of two (or more) terms, then the determinant can be expressed as sum
of two (or more) determinants.
Verification :

Let =
∆ a 1 + λ1 b1 c1
a 2 + λ2 b2 c2
a 3 + λ3 b3 c3

Expanding ∆ in terms of the elements of first column we get,

∆ = (a1+λl) (b2c3–b3c2) – (a2+λ2) (b1c3–b3c1) + (a3+λ3) (b1c2–b2c1)
= [a1 (b2c3–b3c2) – a2(b1c3–b3c1) + a3 (b1c2–b2c1)] + [λ1 (b2c3–b3c2)
– λ2 (b1c3–b3c1)+ λ3 (b1c2– b2c1)]

= a1 b1 c1 + λ1 b1 c1
a2 b2 c2 λ 2 b2 c2
a3 b3 c3 λ3 b3 c3

Property 6 : If each element of a row (or column) of a determinant is multiplied by a real

number k and the resulting product is added to the corresponding entry of
another row (or column), the resulting determinant is equal to the original
determinant.
Verification :

Let ∆ =a 1 b1 c1
a2 b2 c2
a3 b3 c3

and
= ∆1 a1 b1 + ka 1 c1
a 2 b2 + ka 2 c2
a3 b3 + ka 3 c3

= a1 b1 c1 + a 1 ka 1 c1 [By property 5]
a2 b2 c2 a 2 ka 2 c2
a3 b3 c3 a3 ka 3 c3
128 Commercial Mathematics and Statistics

= a 1 b1 c1 + k a 1 a 1 c1 [By property 4]
a2 b2 c2 a2 a2 c2
a3 b3 c3 a3 a3 c3

= a1 b1 c1 + k.0 [ c2 = c1]
a2 b2 c2
a3 b3 c3
=∆
Note : Symbolically this property is expressed as –
Ri → Ri + m R j
or C i → Ci + m C j
i.e. m times of jth row is added to ith row and ith row is changed.

WORKED OUT EXAMPLE :

Example 1: Evaluate 3 −4 5
6 7 0
2 8 −3

=37 0 − ( −4 ) 6 0 +5 6 7
8 −3 2 −3 2 8
= 3(–21–0) + 4 (–18–0) + 5 (48–14)
= –63–72+170 = 35

Example 2:
3 x = 3 2
Find the value of x for which
x 1 4 1
Solution :
3 x = 3 2
Given
x 1 4 1
⇒ 3–x = 3–8
2

⇒ x2 = 8
⇒ x=+ 2 2
 3.2 Determinants 129
Example 3:
Without expanding prove that

(i) 2 4 −10 = 0
−3 9 15
7 −2 −35

Solution :

L.H.S. = 2 4 −10
−3 9 15
7 −2 −35

= –5 2 4 2 (Taking –5 common from c3)

−3 9 −3
7 −2 7

=–5×0 [ c1 = c3]
= 0 = R.H.S.

(ii) 3 −6 7
=0
7 −2 11
1 −8 5

L.H.S. = 3 −6 7
7 − 2 11
1 −8 5

= 3 −6 7 R 2 → R2 − R1
4 4 4
−2 −2 −2 R 3 → R3 − R1

= 4×(–2) 3 −6 7 (Taking 4 and –2 common from R2 and R3)

1 1 1
1 1 1

=–8×0 (  R 2 = R 3)
= 0 = R.H.S.
C.Math(2)–9
130 Commercial Mathematics and Statistics

1 p q+r
1 q r+p
(iii) =0
1 r p+q

1 p q+r

L.H.S. = 1 q r + p
1 r p+q

= 1 p p + q + r c3 → c3 + c2
1 q p+q+r
1 r p+q+r

= (p+q+r) 1 p 1 [Taking (p+q+r) common from c3]

1 q 1
1 r 1

= (p+q+r) × 0 [ c1 = c3]

= 0 = R.H.S.

4. Show that 1 1 1 = xy
1 1+ x 1
1 1 1+ y

L.H.S. = 1 1 1
1 1+ x 1
1 1 1+ y

= 0 0 −y R1 → R1 − R3
0 x −y R2 → R2 − R3
1 1 1+ y

= –y 0 x
1 1
= –y (0–x)
= xy = R.H.S.
 3.2 Determinants 131

5. Prove that −a 2 ab ac = 4a2b2c2

ab − b2 bc
ac bc − c2

L.H.S. = −a 2 ab ac
2
ab −b bc
ac bc − c2

= abc − a b c (Taking a, b, c common from R1, R2 and R3)

a −b c
a b −c

= (abc)(abc) −1 1 1 (Taking a, b, c common from C1, C2 and C3)

1 −1 1
1 1 −1

= a2b2c2 0 0 1 C1 → C1 + C3
2 −2 1
0 +2 −1 C2 → C2 − C 3

= a2b2c2 (4–0)
= 4a2b2c2 = R.H.S.
6. Show that a − b − c 2a 2a
2b b−c−a 2b
2c 2c c−a −b

= (a+b+c)3
L.H.S. = a − b − c 2a 2a
2b b−c−a 2b
2c 2c c−a −b

a + b + c a + b + c a + b + c R1 → R1 + R 2 + R3
2b b−c−a 2b
=
2c 2c c−a −b
132 Commercial Mathematics and Statistics

= (a+b+c) 1 1 1 [Taking (a+b+c) common from R1]

2b b − c − a 2b
2c 2c c−a −b

= (a+b+c) 1 0 0 C2 → C2 − C1
2b − b − c − a 0
2c 0 − c − a − b C3 → C3 − C1

= (a+b+c) −(a + b + c) 0
0 −(a + b + c)
= (a+b+c) [(–1)2(a+b+c)2–0]
= (a+b+c)3
= R.H.S.
7. Solve x 1 1 =0
1 x 1
1 1 x

Solution : Given x 1 1 = 0
1 x 1
1 1 x

⇒ x+2 1 1 = 0 C1→C1+C2+C3
x+2 x 1
x+2 1 x

⇒ (x+2) 1 1 1 = 0 [Taking (x+2) common from C1]

1 x 1
1 1 x

1 0 0
= 0 C2 → C2 − C1
⇒ (x+2) 1 x − 1 0
1 0 x −1 C3 → C3 − C1
⇒ (x+2) (x–1) = 0 2

⇒ (x+2) = 0 or (x–1)2 = 0
⇒ x = –2 or x = 1,1
∴ x = –2, 1, 1 Ans.
 3.2 Determinants 133

3.2.6 SOLUTION OF EQUATIONS USING CRAMER’S RULE

Gabriel Cramer obtained a simple method of solution of linear simultaneous equations by
the principle of determinants.
Let us consider the three simultaneous equations :
a1x + b1y+ c1z = d1
a2x + b2y + c2z = d2
a3x + b3y + c3z = d3
Let ∆= a1 b1 c1 ≠ 0
a2 b2 c2
a3 b3 c3

∆X= d1 b1 c1
d2 b2 c 2
d3 b3 c 3

∆ y= a1 d1 c1
a2 d2 c2
a 3 d3 c3

∆z= a1 b1 d1
a2 b2 d 2
a3 b3 d 3
where ∆x, ∆y, ∆z are the determinants obtained from ∆ by substituting the column (d1d2d3)
for first, second and third columns respectively.
Now, ∆X = d1 b1 c1
d2 b2 c2
d3 b3 c3

= a 1x + b1y + c1z b1 c1
a 2 x + b 2y + c 2 z b 2 c2
a 3x + b 3y + c3z b3 c3

= a 1x b1 c1 + b1y b1 c1 + c1z b1 c1
a 2x b 2 c2 b 2 y b2 c 2 c 2 z b2 c2
a 3x b 3 c3 b 3 y b3 c 3 c 3z b 3 c3
134 Commercial Mathematics and Statistics

= x a1 b1 c1 +y b1 b1 c1 +z c1 b1 c1
a2 b2 c2 b2 b2 c 2 c2 b2 c2
a3 b3 c3 b3 b3 c 3 c3 b3 c3

= x.∆ + y.0 + z.0 [By property 4]

⇒ ∆x = x.∆
∆x
⇒x =
∆

y ∆ ∆z
Similary,
= y = , z
∆ ∆
Thus according to Cramer’s Rule.

x y z 1; ∆≠0
= = =
∆x ∆y ∆ z ∆

Note : (i) If ∆ ≠ 0, the system is consistent and has a unique solution.

(ii) If ∆ = 0 and at least one of ∆X, ∆y, ∆z ≠ 0, then the system has no soluton and
is inconsistent.
Remark : Here we will concentrate only to solution of those equations where ∆ ≠ 0.

WORKED OUT EXAMPLE :

Example 8 : Solve by Cramer’s Rule.
2x+3y = 13
x + 7y = 23
∆= 2 3= 14 − 3= 11 ≠ 0
Solution : Here 1 7

∆ x = 13 3 = 91 − 69 = 22
23 7

∆ y = 2 13 = 46 − 13 = 33
1 23

∆ x 22
∴ =
x = = 2
∆ 11
∆ y 33
y
= = = 3
∆ 11
 3.2 Determinants 135
Example 9: Solve by Cramer’s Rule.
x+2y+3z–6 = 0
2x+4y–7 = –z
3x+2y+9z– 14 = 0
Solution :
[Note : It is to be noted that before forming the determinants. We have to transpose
all the constant terms to Right hand side.]
Here x + 2y + 3z = 6
2x + 4y + z = 7
3x + 2y + 9z = 14

Here ∆ =1 2 3
2 4 1
3 2 9

= 1(36–2) – 2 (18–3) + 3 (4–12)

= 34–30–24 = –20 ≠ 0

∆X = 6 2 3
7 4 1
14 2 9

= 6 (36–2) – 2 (63–14) + 3 (14–56)

= 204–98–126 = –20

1 6 3
2 7 1
∆y =
3 14 9

= 1 (63–14) – 6 (18–3) + 3 (28–21)

= 49–90 + 21 = – 20

1 2 6
2 4 7
∆z =
3 2 14

= 1 (56–14) –2 (28–21) +6 (4–12)

136 Commercial Mathematics and Statistics

= 42–14–48
= –20.
∆ x −20
∴ x
= = = 1
∆ −20

∆ y −20
y
= = = 1
∆ −20
∆ z −20
z
= = = 1
∆ −20
Ans : x = 1, y = 1, z = 1.
Example 10 : Solve 3x+y+z – 10 = 0
x+y–z = 0
5x–9y = 1
Solution : Here, 3x+y+z = 10
x+y–z = 0
5x–9y+0.z = 1

∴∆ = 3 1 1
1 1 −1
5 −9 0

= 3 (0–9) –1(0+5) +1 (–9–5)

= –27–5–14
= –46

∆X = 10 1 1
0 1 −1
1 −9 0

= 10 (0–9) –1 (0+1) +1 (0–1)

= –90–1–1
= –92

∆y = 3 10 1
1 0 −1
5 1 0
 3.2 Determinants 137
= 3 (0+1) –10 (0+5) +1 (1–0)
= 3–50+1
= –46
∆z = 3 1 10
1 1 0
5 −9 1
= 3 (1–0) –1 (1–0) +10 (–9–5)
= 3–1–140
= –138
∆ x −92
∴ x
= = =2
∆ −46
∆ y −46
y
= = =1
∆ −46
∆ z −138
z
= = =3
∆ −46
Ans : x=2, y=1, z=3.

SUMMARY
* A = a1 =b1 a 1b 2 − a 2 b1
a 2 b2

* A = a1 b1 c1
a2 b2 c2
a3 b3 c3

= a1 b2 c2 − b1 a 2 c2 + c1 a 2 b2
b3 c3 a3 c3 a3 b3

* Minor Mij of an element aij of a determinant is the determinant obtained by deleting its
ith row and jth column in which the element aij lies.
* Minor of an element of a determinant of order n(n > 2) is a determinant of order n–1.
* Co-factor Aij of an element aij is Aij = (–1)i+j Mij
* If elements of a row (or column) are multiplied with cofactors of any other row (or
column), then their sum is zero.
138 Commercial Mathematics and Statistics

* If elements of a row (or column) are multiplied with their respective cofactors, then
their sum is equal to the value of the determinant.
* If the rows are changed into columns and columns into rows, the value of the determinant
remains the same.
* If we interchange any two rows (or columns), then sign of the determinant changes.
* If any two rows (or columns) are identical, then value of the determinant is zero.
* If we multiply each element of a row (or column) of a determinant by a non zero real
number k, then the value of the determinant is multiplied by k.
* If elements of a row (or column) in a determinant can be expressed as sum of two or
more elements, then the given determinant can be expressed as the sum of two or more
determinants.
* If to each element of a row (or a column) of a determinant the equimultiples of
corresponding elements of other rows (or columns) are added, then the value of the
determinant remains the same.
* If a1x + b1y + c1z = d1
a2x + b2y + c2z = d2
a3x + b3y + c3z = d3
a1 b1 c1

and ∆ = a 2 b2 c2
a3 b3 c3

d1 b1 c1

∆ x = d2 b2 c2
d3 b3 c3

a1 d1 c1
a2 d2 c2
∆y =
a3 d3 c3

a1 b1 d1

∆ z = a 2 b 2 d2
a3 b3 d3
Then by Cramer’s rule
∆x ∆y ∆z
=x = ,y = ,z
∆ ∆ ∆
 3.2 Determinants 139

EXERCISE 3.2

1. (i) Write down the minors of –2 and 4 in ∆ = 2 1 1

1 −2 −3
3 2 4

(ii) Write down the co-factors of 3 and –5 in 1 0 −5

3 −1 2
4 6 −3

2. Write down co-factors of elements of the second row in 5 −2 0

6 1 −3
−4 2 1

3. Write down the minor and co-factors of the elements of first column in each of the
following determinant

(i) 5 17 (ii) 1 a bc
0 −1 1 b ca
1 c ab

4. Evaluate 5 1 0
2 3 −1
−3 2 0

5. Without expanding prove that each of the determinant given below is equal to zero

(i) 6 −3 2 (ii) 3 2 −4
2 −1 2 9 6 −12
−10 5 2 31 16 19

(iii) 3 4 5 (iv) 1 12 22
4 5 6 2 2 2 42
10 13 16 3 32 62
140 Commercial Mathematics and Statistics

(v) 1 a bc (vi) 0 c b
a
1 −c 0 a
b ca
b − b −a 0
1 c ab
c

(vii) a − b b − c c − a
b−c c−a a−b
c−a a−b b−c

6. Solve for x

(i) x 0 0=9 (ii) 1 1 1=0

2 5 7 1 x 1
0 1 2 1 1 x

2
(iii) x x 1 = 28
0 2 1
3 1 4

7. Prove without expanding

(i) bc a a2 = 1 a2 a3 (ii) 1 x x 2 − yz = 0
ca b b2 1 b2 b3 1 y y2 − zx
ab c c2 1 c2 c3 1 z z2 − xy

(iii) bc a 2 a 2 = bc ab ca
b2 ca b2 ab ca bc
2 2
c c ab ca bc ab

8. Prove that

(i) 1 x x2 =(x − y)(y − z)(z − x) (ii) 1 + x y z =1+ x + y + z

2
1 y y x 1+ y z
2
1 z z x y 1+ z
 3.2 Determinants 141

2
(iii) −a ab ac = 4a 2 b 2 c2 (iv) 1 1 1 =(a − b )(b − c)(c − a )
2
ab −b bc a b c
ac bc − c2 bc ca ab

(v) x + y z z − x = x 3 + y 3 + z3 − 3xyz (vi) 0 ab2 ac2 = 2a 3b 3c3

y+z x x−y a 2b 0 bc2
z+x y y−z a 2c b2c 0

(vii) 1 + a1 1 1 (viii) 1 1 1 = (a − b )(b − c)( c − a )(a + b + c)

1 1+ a2 1 a b c
1 1 1 + a3 a3 b3 c3

FG 1 1
= a 1a 2a 3 1 + a + a + a
1 IJ
H 1 2 3 K
9. Solve
(i) 3 − x −6 3 =0 (ii) x+a b c =0
−6 3 − x 3 c x+b a
3 3 −6 − x a b x+c
10. Solve by Cramer’s Rule
(i) 3x+4y = 2 (ii) 2x+3y = 5
9x–16y = –1 3x–2y = 1
(iii) x+2z = 7 (iv) x1+3x2+5x3 = 22
3x+4y = 11 5x1–3x2+2x3 = 5
3y–5z = –9 9x1+8x2–3x3 = 16

(v) 2 − 1 =
8
x y

3+2=5
x y
(vi) x–y = 1
x+z = –6
x+y–2z = 3
142 Commercial Mathematics and Statistics

ANSWERS 3.2

1. (i) Minor = 5; –5
(ii) Co-factors = 30; 22
2. Co-factors of 2nd row elements = 2, 5, –2
3. (i) Minors = –1, 17; Co-factors = –1, –17
(ii) Minors = ab2–ac2; a2b–bc2; a2c–b2c
Co-factors = ab2–ac2; bc2–a2b; a2c–b2c
4. 13

5. (i) x = 3; (ii) x = 1, 1; (iii) x = 2, − 17

7
9. (i) x = 0, 9 or –9
(ii) x = 0 or –(a+b+c)

10. (i)
= , y 1
x 1=
3 4
(ii) x = 1, y = 1
(iii) x = 1, y = 2, z = 3
(iv) x1 = 1, x2 = 2, x3 = 3

(v) x = 1 , y = − 1
3 2
(vi) x = –2, y = –3, z = –4
 3.3 Matrix 143

3.3 MATRIX
3.3.1 INTRODUCTION
It is often desirable to present a set of numbers or other elements in a rectangular array
(Impressive display). In such an array it is conventional to call the vertical lines column and
the horizontal lines rows.
Suppose we wish to express the information – Papori has purchased 10kg of rice, 5kg of
atta and 3kg of sugar and Rupali has purchased 7kg of rice, 4kg of atta and 5kg of sugar in
a compact manner in a rectangulae array. This may be expressed as follows :

Rice Atta Sugar

LM
Papori 10 5 OP
3 → First Row
Rupali 7 N 4 Q
5 → Second Row
A A A
First Second Third
Column Column Column

or

Papori Rupali
Rice LM 10 7 OP → First Row
Atta MM 5 4 PP → Second Row
Sugar N 3 5 Q → Third Row
A A
First Second
Column Column

Such an array when subjected to certain rules of operation is called a Matrix.

The knowledge of matrix is necessary in various branches of mathematics. Matrix is one
of the most powerful tools in mathematics. This mathematical tool simplifies our work to a
great extent. For presenting larg data in a compact form in areas like budgeting, sales projection,
analysis of results in any experiment, for solution of simultaneous lineas equation, for coding
and decoding of secret messages, for solving problems of linear programming, the theory of
matrix has been constantly applied.
144 Commercial Mathematics and Statistics

In this chapter, we shall become acquainted with the fundaments of matrix and matrix
algebra.

3.3.2 DEFINITION
A matrix (Plural is matrices) is an ordered rectangular array of real numbers (or other
suitable entities), arranged in rows and columns.
We denote matrix by capital letters and the entities are enclosed by a pair of brackets
either [ ] or ( ).
The following are some examples of matrices :

A= LM−4 B
6= OP LM8 −7 OP LM
2 + x x3
6 C= 4−x OP
MM 0 2P MM0 1 −2P MM PP
N1 −8 PQ N3 7 PQ
5
N 5 3 2x + 1
Q
As mentioned earlier, the horizontal lines are called rows and vertical lines are called
columns.
Thus matrix A has 3 rows and 2 columns.
Matrix B has 3 rows and 3 columns.
Matrix C has 2 rows and 3 columns.

3.3.3 ELEMENT OF A MATRIX

The entities are called the elements of a matrix and is denoted by aij which means it is the
element lying in ith row and jth column.
So referring to the above example
A, a11 = –4 a21 = 0 a31 = 1
a12 = 6 a22 = 2 a32 = –8

3.3.4 ORDER OF A MATRIX

A matrix having m rows and n columns is called a matrix of order m×n or simply m×n
matrix (read as m by n matrix). So, referring to the above examples, we have A as 3×2
matrix, B as 3×3 matrix and C as 2×3 matrix.
A matrix of order m×n has mn elements.
We observe that matrix A has 3×2=6 elements, B and C have 9 and 6 elements respectively.
In general, a m×n matrix has the following rectangula @array :
 3.3 Matrix 145

LMa 11 a 12 a 13 ....... a 1 j ....... a 1n OP

MMa 21 a 22 a 23 ...... a 2 j ....... a 2 n PP
A=M PP

MMa i1 a i2 a i 3 ....... a ij ........ a in
PP
MM     
PQ
Nam1 am2 a m 3 ...... a mj ...... a mn
m×n
The above matrix may be written in a more concise manner as
A = [aij]m×n,
1<i<m
1<j<n
Note that number of rows are written first and then the number of columns.
In the example given above, A is a 3×2 matrix but C is a 2×3 matrix.
Note : In this chapter
(i) We shall follow the notation, namely A=[aij]m×n to indicate that A is a matrix
of order m×n.
(ii) We shall consider only those matrices whose elements are real numbers.

WORKED OUT EXAMPLES :

Example 1: Consider the following information regarding the number of girls and boys
in three sections A, B, C of a class.
Girls Boys
A 30 24
B 26 34
C 28 25
Represent the above information in the form of 3×2 matrix. What does the entry in the
third row and second column represent?
Solution : The information is represented in the form of a 3×2 matrix as follows

LM
P = 30 24 OP
26
MM28 34
P
25QP 3 × 2
N
C.Math(2)–10
146 Commercial Mathematics and Statistics

The entry in the third row and second column i.e. 25 represent the number of girls in
section C.
Example 2: If a matrix has 12 elements what are the possible orders it can have?
Solution : We know that if a matrix is of order m×n, it has mn elements. Thus, to find
all possible orders of a matrix with 12 elements we will find ordered pairs of
natural numbers, whose product is 12.
Thus all possible ordered pairs are (1, 12), (12, 1), (2, 6), (6, 2), (3, 4), (4,3)
Hence, possible orders are
1×12, 12×1, 2×6, 6×2, 3×4, 4×3

Example 3: a ij 1 i 2 − 2 j
Construct a 2×3 matrix whose elements are given by=
2 e j
Solution : In general 2×3 matrix is given by A = a 11 a 12 a13 LM OP
Na 21 a 22 a 23 Q
2 e
Now a ij =1 i 2 − 2 j , i = j
1, 2; j =1, 2, 3

Therefore,

2 e
a 11= 1 12 − 2= − 1
2 j e
a 12= 1 12 − 4= − 3
2 2 j
e
a 13= 1 12 − 6= −5
2 2 j
e j
a 21= 1 22 − 2= 1 a 22= 1 22 − 4= 0
2 2 e j
a 23 =1 22 − 6 =
2 e
−1 j
LM− 1 −3 −5 OP
Hence the required matrix is given by A =
MN 21 2
0
2
−1 PQ
TYPES OF MATRICES :
In this section, we shall discuss different types of matrices
(i) Row Matrix : A matrix is said to be a row matrix if it has only one row.
For example, A = [5 –6 2 7]
is a row matrix of order 1×4
In general, A = [aij]1×n is a row matrix of order 1×n.
 3.3 Matrix 147
(ii) Column Matrix :
A matrix is said to be a column matrix if it has only one column

LM 4 OP
For example B = M P
−7
is a column matrix.
MM 3 PP
N6Q 4 ×1

In general, B = [bij]m×1 is a column matrix of order m×1.

(iii) Square Matrix :
A matrix in which the number of rows are equal to the number of columns, it is said
to be a square matrix. Thus a m×n matrix is said to be a square matrix if m = n and is known
to be a square matrix of order n.
Note : If A=[aij] is a square matrix of order n, then the elements a11, a22 ............. ann
are said to constitute the principal diagonal, of the matrix and are called the
diagonal elements of the matrix A. Thus if

LM5 −3 2 OP
A = M0 4 1P
, the 5, 4, –4 are diagonal elements.
MN6 −7 −4PQ

(iv) Null or Zero matrix :

A matrix is said to be zero matrix or null matrix if all its elements are zero.
LM0 0OP LM0
For example, 0 0 , 0 0 0
0 0 OP
N Q N Q
[0, 0] are all null matrices, we denote a null matrix by 0 (bold 0)
(v) Diagonal Matrix :
A square matrix A=[aij]n×n is said to be a diagonal matrix if all its non diagonal elements
are zero, that is A=[aij]m×n is said to be a diagonal matrix if aij = 0 when i ≠ j.

L6 0 O= LM3 0 0 OP
For example, A = 7 , B = M
−2PQ MM0 P
,C −6 0
N0 N0 0 8PQ

are diagonal matrices of order 1, 2, 3 respectively.

148 Commercial Mathematics and Statistics

(vi) Scalar Matrix :

A square matrix is said to be a scalar matrix if all its non-diagonal elements are equal to
zero and diagonal elements are equal.
So, a scalar matrix is a diagonal matrix whose diagonal elements are equal.
That is a square matrix A =[ aij]n×n is said to be a scalar matrix if
bij = 0 when i ≠ j
bij = k when i ≠ j, for some constant k.
For example

L −4
A= 5 , B= M
0 OP , C = LM 03 0 0 OP
N0 −4 Q MM 3 0 P
N0 0 3 PQ

are scalar matrix of order 1, 2 and 3 respectively.

(vii) Identity or Unit Matrix :
A square matrix in which elements in the diagonal are all 1 and rest are all zero, is called
an identity or a unit matrix. In other words, the square matrix A=[aij]n×n is an identity matrix
if
aij = 1 when i = j
= 0 when i ≠ j
We denote identity or unit matrix of order n by In. When order is clear from the context,
we simply write it as I.

L1 0OP , I LM1 0 0 OP
I1 = 1 , I 2 =M = M0 1 0 P
N0 1 Q 3
MN0 0 1PQ

are identity matrices of order 1, 2 and 3 respectively.

Note : (i) An identity matrix is a scalar matrix also. But a scalae matrix is not an identity
matrix.
(ii) Every scalar matrix is a diagonal matrix also but the opposite is not true.
(iii) Triagular Matrix : A square matrix in which all the elements above or below
the Principal diagonal are zero is called a triangular matrix.
An upper triangular matrix is a triangular matrix in which all the elements below the
principal diagonal are zero.
 3.3 Matrix 149
A lower triangular matrix is a triangular matrix in which all the elements above the principal
diagonal are zero.
For example the matrix

LMa 11 a 12 a 13 OP
A=M 0 a 22 a 23 PP
MN 0 0 a 33 Q
is an upper triangular matrix and

LMa 11 0 0 OP
B = Ma 21 a 22 0 P
MNa 31 132 a PQ
33

is a lower triangular matrix.

(ix) Singular and Non-Singular Matrix :

A square matrix A is said to be singular if its determinant is equal to zero i.e. A = 0 and
non-singular if A ≠ 0 .

For example, A=
LM3 OP is singular
−6
N2
−4 Q

since A = L3 −6 O = −12 + 12 =0
MN2 −4PQ
L 7 3OP is non-singular
and B = M
N−4 1Q
since B = L 7 3O =−7(−12) =19 ≠ 0
MN−4 1PQ
3.3.6 EQUALITY OF MATRICES
Two matrices A = a ij and B = bij
are said to be equal if
(i) they are of same order.
(ii)each element of A is equal to the corresponding element of B, i.e. aij = bij for all i
and j
150 Commercial Mathematics and Statistics

LM 5 3OP LM 5 3 OP
For example M 1 6 PP and MM 1 6 P
MN−7 0Q N−7 0PQ

LM 5 3 OP LM−5 OP
3
are equal matrices but M 1 6P and M 1 −6P are not equal matrices.
MN−7 0PQ MN 7 0 PQ

Symbolically, if two matrices A and B are equal, we write A = B

If xLM y =OP LM−3.2 0 OP

MMp q P MM 5 6 P
Na b PQ N −8 7 PQ

then x = –3.2, y=0

p = 5, q= 6
a = –8, b=7

Example 4:

LM x + 3 2z − 7 3y + 1 OP LM 0 3 −11 OP
If M −8 a−2 0 = PP MM −8 5 2c − 4 PP
MNb + 4 −17 0 Q N2 b + 5 −17 0 Q
Find the values of a, b, c, x, y and z.
Solution : As the given matrices are equal, their corresponding elements must be equal.
Comparing the corresponding the elements we get
x+3 = 0, 2z–7 = 3, 3y+1 = –11
a–2 = 5, 2c–4 = 0, 2b+5 = b+4
Simpliying we get
x = –3, z = 5, y = –4
a = 7, c = 2, b = –1

OPERATIONS WITH MATRICES :

Now, we are going to introduce certain operations on matrices namely addition of matrices,
multiplication of a matrix by a scalar, difference and multiplication of matrices.
 3.3 Matrix 151

3.3.7 ADDITION OF MATRICES

Consider the following examples : There are two suppliers A and B who supplies brick,
sand and stone. A has supplied 5 trucks of brick, 3 trucks of sand and 2 trucks of stone to Mr.
Choudhury and 3 trucks of brick, 4 turcks of sand and 3 trucks of stone to Mr. Ahmed.
Again Firm B has supplied 3 trucks of brick, 4 trucks of sand and 3 trucks of stone to Mr.
Choudhury and 2 trucks of brick, 2 trucks of sand and 1 truck of stone to Mr. Ahmed. The
above informations regarding supplies to Mr. Choudhury and Mr. Ahmed may be represented
as matrices given below.

Mr. Choudhury Mr. Ahmed

FirmA FirmB FirmA FirmB
LM 5 PPO LM 3 PPO
Brick 3 Brick 2
Sand MM 3 4 Sand MM 4 2
Stone N 2 3 PQ Stone N 3 1 PQ

If we want to know the total supplies made for each category by firm A and B, then
Brick : Firm A (5+3); Firm B (3+2)
Sand : Firm A (3+4); Firm B (4+2)
Stone : Firm A (2+3); Firm B (3+1)
This may be represented in the matrix form as :

FirmA FirmB
Brick LM 5 + 3 3+ 2 O
P
Sand M 3 + 4 4+2 P
Stone MN 2 + 3 3 + 1 PQ

This new matrix is the sum of the above two matrices. We observe that the sum of two
matrices is a matrix obtained by adding the corresponding elements of the given matrices.
Moreover, the two matrices must be of same order.
In general, if A=[aij] and B=[bij] are two matrices of the same order, say m×n, then their
sum is denoted by A+B where A+B = [aij+bij] is also a matrix of order m×n.
Example 5: Given

LM
A = −5 7 OP
4
MM 6 2
0 QP
P
N
152 Commercial Mathematics and Statistics

=B LM6 −1 OP
MM2 5 P
N3 1 PQ

Find A+B
Solution : As A and B are both of the same order 3×2, therefore A+B is defined and

LM
A + B = −5 + 6 7 + ( −1) = 1 OP LM 6 OP
MM 6 + 3
4+2 2+5 6
PP MM9 7
1PQ
P
N 0 +1 Q N
Note : It is to be noted that if A and B are not of the same order, then A+B is not
defined. For example, if

LM OP
A = 5 6= B LM2 4 −1 OP
N Q
2 0 , N6 2 3 Q
then A+B is not defined.

3.3.8 MULTIPLICATION OF A MATRIX BY A SCALAR

Now suppose that if Mr. Ahmed has doubled his order in all categories of each firm then
the new supplies made to Mr. Ahmed are as follows :

FirmA FirmB
Brick LM 2 × 3 2×2 OP
Sand M 2 × 4 2×2 P
Stone MN 2 × 3 2 × 1 PQ

This may be represented in the matrix form as

LM6 4 OP
MM8 4P
N6 2PQ

We observe that this new matrix is obtained by multiplying each element of the previous
matrix by 2.
In general, if A=[aij] is a matrix of order m×n and k is a real number, then kA is another
 3.3 Matrix 153
matrix of order m×n which is obtained by multiplying each element of A by the real number
k. This is called scalar multiplication of matrix A by the scalar k.
Example 6: LM
If A = 4 3 9 OP
N2 0 1 Q
Find 3A.
Solution : Given A = 4 3 9 LMOP
0 1Q N2
∴3A = L12 9 27O
MN 6 0 3 PQ

3.3.9 NEGATIVE OF A MATRIX

The negative of a matrix A is denoted by –A. We define –A = (–1)A
For example let A =LM 5 2OP
N −3 4 Q
Then –A = (–1)A = (–1) L 5 2O
MN−3 4PQ
= L −5 − 2 O
MN 3 −4PQ

3.3.10 DIFFERENCE OF MATRICES :

If A=[aij] and B=[bij] are two matrices of the same order m×n, then their difference is
denoted by A–B where
A–B = [aij–bij] is also a the matrix of order m×n.
In other words, A–B
= A+(–1)B
that is sum of matrix A and the matrix –B.
LM
Example 6: If A= 5 4 2 and OP
N1 6 0Q
B = L −3 6 −4O , Find 3A–2B.
MN 5 2 3 PQ
154 Commercial Mathematics and Statistics

Solution : LM
Given A = 5 4 2 OP
N1 6 0Q
B = L −3 6 − 4 O
MN 5 2 3 PQ
∴ 3A–2B

LM
= 3 5 4 2 –2 −3 6 −4 OP LM OP
N1 6 0Q N5 2 3Q

LM
= 15 12 6 O – L−6 12 −8O
N 3 18 0 PQ MN 10 4 6 PQ

= L15 − (−6) 12 − 12 6 − (−8)O

MN 3 − 10 18 − 14 0 − 6 PQ

L21 0 14 O
= M− 7 14 −6 P
N Q
Example 7 : If A = L 8
MM4 −2OPP
0 and B = L 3 −3 OP
MM 5 1 P
MN5 3 PQ MN−6 2 PQ

then find matrix X such that 2A+3x–4B = 0

Solution : Given 2A+3x–4B = 0
⇒ 3x = 4B–2A

⇒ x = 1 (4B–2A) ............... (1)

3
Now 4B–2A

= LM 12 OP
−12 – 16 LM 0 =OP LM −4 −12 OP
MM 20 4 P8 MM −4 P MM 12 8 P
N−24 8 PQ N10 6 PQ N−34 2 PQ

∴ From, (1)

x = 1 (4B–2A)
3
 3.3 Matrix 155

= 1
3
LM −4 OP
−12 = LM − 4 3 −4 OP
MM 12 8 P MM 4 8 PP
2 PQ
3
N−34 MN− 34 3 2
3 PQ
Example 8 : An industrialist produces 3 products A, B and C which he sells in two cities
Guwahati and Delhi. The annual sales for 2008 and 2009 are as follows.
2008
A B C
Guwahati 2000 8000 10,000
Delhi 20,000 4000 6000

2009
A B C
Guwahati 1500 6500 8000
Delhi 14,000 1500 6000

(i) Find the combined sales in 2008 and 2009 for each type.
(ii) Find the decrease in sales from 2008 to 2009.
(iii) If the profit made in 2008 is 30% of the gross sale compute the total profit made in
the two cities in 2008 for each type.
Solution : Let P and Q are the matrix which denotes the sales in 2008 and 2009.

A B C
LM
∴P =
2000 8000 O
10,000 Guwahati
P
N
20,000 4000 6000 Q Delhi

LM 1500 6500 8000 O Guwahati

6000 PQ Delhi
∴Q =
N 14,000 1500
(i) ∴ Combined sale in 2008 and 2009
A B C
=P + Q = LM
3500 14,500
PQO
18,000 Guwahati
N
34,000 5,5000 12,000 Delhi
156 Commercial Mathematics and Statistics

(ii) Change in the sales from 2008 to 2009 is given by

A B C

P−Q =
500 LM 1500 OP
2000 Guwahati
6000 N 2500 0 Q Delhi
(iii) Gross profit made in two cities for each type of products in two cities in 2008 = 30%
of P
A B C
= 0.3 LM
2000 8000 10,000
PQO
N
20,000 4000 6000

A B C

=
LM 600 2400 O
3000 Guwahati
P
N 6000 1200 1800 Q Delhi

∴ In 2008, total gross profit made for products A, B and C respectively in Guwahati
and Delhi are– Rs. 600, Rs. 2400, Rs. 3000 and Rs. 6000, Rs. 1200, Rs. 1800.

3.1.12 MULTIPLICATION OF MATRICES

Suppose Reba and Pampy are two friends. Reba wants to buy 3 pens and 8 exercise
books and Pampy wants to buy 6 pens and 12 exercise books. They both go to shop to
enquire about the price which are as follows–
Pen – Rs. 6 each
Exercise Book – Rs. 55 each
How much does each need to spend?
Clearly, Reba needs Rs.(6×3+55×8) = Rs. 458 and Pampy needs Rs.(6×6+55×12) =
Rs. 696. In terms of matrix representation, we can write the above information as follows :

Re quirement
Pen ExerciseBook PricePer Unit(Rs.) Money needed (Rs.)
LM3 OP
8 Re ba 6 LM OPPen
LM 3 × 6 + 8 × 55 PO = LM458OP
N6 12Q Pampy N55Q Exercise Book N6 × 6 + 12 × 55Q N696Q
Suppose that they enquire about the rates from another shop, where the prices are –
Pen – Rs. 5 each
Exercise Book – Rs. 50 each
 3.3 Matrix 157
So, the above information for the second shop may be represented in matrix from as
follows :
Re quirement Price Per Unit(Rs.) Money needed (Rs.)
LM3 8 OP 5 LM OP LM 3 × 5 + 8 × 50 PO = LM415OP
N6 12Q N50Q N6 × 5 + 12 × 50Q N630Q
Now the information in both the cases may be combined and expressed in terms of matrices
as follows :
Re quirement Price Per Unit(Rs.) Money needed (Rs.)
LM3 OP LM O LM 3 × 6 + 8 × 55 PQO LMN PQO
8 6 5 3 × 5 + 8 × 50 458 415
N55 P
50 Q
= =
N6 12 Q N6 × 6 + 12 × 55 6 × 5 + 12 × 50 696 630

The above is an example of multiplication of matrices. We observe that for multiplication

of two matrices, A and B, the number of columns in A should be equal to the number of
rows in B. Moreover, for getting the elements of the product matrix, we take the rows of A
and columns of B, multiply them elementwise and take the sum.
Thus the product of any two matrices A and B are defined if No. of columns of A (1st
matrix)
= No. of rows of B (2nd matrix)
Let A =[aij] be a m×n matrix and B=[bjk] be a n×p matrix.
Then their product AB = C is a matrix of order m×p i.e. C=[Cik].
Suppose we want to get the element of the ith row and kth column of AB.

LM b 1k OP
We take ith row of A=[ai1 ai2 ............ ain] and kth column of B = M b 2k PP
MNb nk Q
Multipling elementwise and adding the ith row and kth column of C we get,
C ik = ai1 b1k + aiz b2k + ai3 b3k + ....... + ain bnk
n

= ∑ a ij b jk
j=1

Thus if A = [aij]m×n
B = [bjk]n×p then their product
AB = [Cik]m×p
158 Commercial Mathematics and Statistics

where Cik = ∑ a ij b jk
j=1

For example, if A =
LM2 3OP and B =
LM1 6 5 OP
N5 6 Q 2× 2 N4 7 2Q 2× 3

So here AB is defined and it is 2×3 matrix.

But BA is not defined as Number of columns of B ≠ Number of Rows of A

Now AB =
LM2 3OP LM1 6 5 OP is 2×3 matrix
N5 6 Q N 4 7 2Q
in which each entry is the sum of products across some row of A with the corresponding
entries down some columns of D. These six entries are–

Entry in the 1st row= 2 3 1 6 5

5 6 4 7 2
  
↓ ↓ ↓
= 2×1+3×4 2×6+3×7 2×5+3×2
– – –

Entry in the 2nd row= 2 3 1 6 5

5 6 4 7 2

  
↓ ↓ ↓
= – – –
5×1+6×4 2×6+3×7 5×5+6×2

LM
= 18 33 16 OP
N29 72 37 Q
 3.3 Matrix 159
Note : (i) In multiplication of two matrices A and B, if AB is defined, then BA need
not be defined.
if A and B are respectively. m×n and k×l matrices, then both AB and BA are
defined if and only if n=k and m=l.
In particular, if A and B are both square matrices of same order, then both AB
and BA are defined.
(ii) It is also seen that even if both AB and BA are defined, it is not necessary that
AB=BA.

Example 9: If A = LM 5 6OP and B = L3 4 O

N −1 2 Q MN1 −6PQ
find AB and BA. Are they equal?

Solution: Given A = LM 5 6OP B = LM3 4 OP

N−1 2Q N1 −6Q
Here AB and BA both are defined and each is a 2×2 matrix.
Now, AB = LM 5 6OP LM3 4 OP
N−1 2Q N1 −6Q
= L15 + 6 20 −=
MN−3 + 2 −4 − 12OPQ LMN−1 −16OPQ
36 21 −16

and BA = L3 4 O L 5 6 O
MN1 −6PQ MN−1 2PQ
= L15 − 4 18 + 8O = L11 26 O
MN 5 + 6 6 − 12PQ MN11 −6PQ
Here AB ≠ BA.
Note : 1. Here AB and BA are of same order but AB ≠ BA.

2.
This does not mean that AB ≠ BA for every pair of matrices A, B for which
AB and BA are defined.
For example, if
LM1 0OP
A= 0 2 B= 0 4
LM3 0OP
N Q N Q
160 Commercial Mathematics and Statistics

Then AB
LM1 0OP LM3 0OP
= 0 2
N Q N0 4 Q
L3 + 0 0 + 0O = L 3
= M0 + 0 0 + 8 P M 0
0 OP
N Q N 8 Q
and BA
L 3 0 O L1 0 O
= M 0 4 P M0 2 P
N QN Q
L3 + 0 0 + 0O = L 3
= M0 + 0 0 + 8 P M 0
0 OP
N Q N 8 Q
Here AB = BA
Zero matrix as the product of two non zero matrices :
We know that, for real numbers a and b, if ab=0 then either a=0 or b=0. But this is not
true for matrices.
LM0 a OP LMc dOP
For example, Let A = 0 b B = 0 0
N Q N Q
LM0 a O L c dO
bPQ MN0 0PQ
Then AB = 0
N
L0
= M0
0O
N 0PQ

Thus if product of two matrices is a zero matrix, if is not necessary that one of the matrices
is a zero matrix.
3.1.13 PROPERTIES OF MATRIX MULTIPLICATION :
1. The associative Law : For any three matrices A, B and C.
(AB)C = A(BC) when both sides of the equality are defined.
2. The distributive Law : For three matrices A, B and C.
(i) (A+B)C = AC+BC
(ii) A(B+C) = AB+AC
whenever both sides of equality are defined.
3. The existence of multiplicative identity : For every square matrix A, there exists and
identity matrix of the same I of the order such that AI = IA = A
 3.3 Matrix 161

3.1.14 TRANSPOSE OF A MATRIX

Let A be a m×n matrix. The matrix obtained from A by interchanging its rows into
columns and columns into rows is called transpose of A and is denoted by A / or AT which is
a n×m matrix.
If A = (aij)m×n
Then A/ = (bij)n×n
where bij = aji
FG 2 −6 4IJ
For example, if A= 0 H 1 7K 2× 3

F 2 0I
Then A = G
/
G −6 1JJ
H 4 7K 3× 2

Properties of Transpose of a matrix :

(i) Transpose of transpose of a matrix A is again A ie (A/)/ = A
(ii) (A+B)/ = A/+B/
(iii) (AB)/ = B/A/
(iv) If k is any scalae (kA)/ = kA/

Orthogonal Matrix :
A square matrix A is said to be orthogonal if AA/ = A/A = I where I is the unit matrix of
same order that of A.

3.1.15 SYMMETRIC MATRIX

A square matrix A is said to be symmetric if A = A/.
Thus if A = (aij)n×n then A will be symmetric if aij = aji for all i, j

LM a h a12 g a13 OP
Mh PP
A= M
b fa23
For example,
MM g PP
Na21
fa32 c Q
is a symmetric matrix.

C.Math(2)–11
162 Commercial Mathematics and Statistics

Example 10: If A=
FG1 2 3 IJ
H 4 0 5K
F 3 −4I
B= G 1 6J
GH −2 2 JK

C=
FG 5 −1IJ
H3 0 K
Prove that A(BC) = (AB)C

Solution : Given A=
FG1 2 3 IJ
H 4 0 5K
F 3 −4I
B= G 1 6J
GH −2 2 JK

C=
FG 5 −1IJ
H3 0 K
F 3 −4I 5 −1I
= G 1 6 J FG
Now BC
GH −2 2 JK H 3 0 JK
F 15 − 12 I
−3 + 0
= G 5 + 18 JJ
−1 + 0
GH −10 + 6 2+0 K

F3 −3I
= G 23 −1J
GH −4 2K
J
∴ L.H.S. = A(BC)
F3 −3I
F1
= G4
2 3 IJ G 23 −1J
H 0 5 K GH −4 2K
J
 3.3 Matrix 163

FG 3 + 46 − 12 −3 − 2 + 6 IJ
H
= 12 + 0 − 20 −12 + 0 + 10
K
F 37 1 I
= GH −8 −2JK

F 3 −4I
F 1 2 3I G 1 6 J
Also AB = G 4 0 5J G
H K H −2 2 JK
=G
F 3 + 2 − 6 −4 + 12 + 6 IJ
H12 + 0 − 10 −16 + 0 + 10K
=G
F −1 14 IJ
H 2 −6K
F −1 −14I F 5 −1I
= G 2 −6 J G 3 0 J
∴R.H.S. = (AB)C
H KH K
F −5 + 42 1 + 0 I
= GH 10 − 18 −2 + 0JK

=G
F 37 1 IJ
H −8 −2K
∴ A(BC) = (AB)C (Hence Proved)

Example 11: If A = F1 2 3I
GG 1 2 3JJ
H −1 −2 −3K
Prove that A2 = 0
Solution :
[Note that for a matrix A, A2 does not mean squaring each element of the matrix A. A2
means A.A]
Here A2 = A.A

= F1 2 3 IF1 2 3I
GG 1 2 3 JJ GG 1 2 3JJ
H −1 −2 −3K H −1 −2 −3K
164 Commercial Mathematics and Statistics

F 1+ 2 − 3 2+ 4−6 3+ 6 − 9 I
= G 1+ 2 − 3 2+ 4−6 3+ 6 − 9 JJ
GH −1 − 2 + 3 −2 − 4 + 6 −3 − 6 + 9K

F0 0 0 I
= G0 0 0 JJ
GH 0 0 0K

=0
∴ A = 0 (Hence Proved)
2

Example 12: If A = F1 2 1I
GG −1 0 3JJ
H2 −1 1K

Show that A3–2A2+4A–18I = 0

Solution : Given A= F1 2 1I
GG −1 0 3JJ
H2 −1 1K

∴ A2 = A.A = F1 2 1IF1 2 1I
GG −1 0 3JJ GG −1 0 3JJ
H2 −1 1K H 2 −1 1K

F 1− 2 + 2 2+ 0 −1 1+ 6 +1 I
G
= G −1 + 0 + 6 −2 + 0 − 3 −1 + 0 + 3J
J
H 2 + 1+ 2 4 + 0 −1 2 − 3+1 K

F1 1 8I
G
= G5 −5 2J
J
H5 3 0K

A3 = A2.A = 1F 1 8 IF1 2 1I
GG 5 −5 2 JJ GG −1 0 3JJ
H5 3 0K H 2 −1 1K
 3.3 Matrix 165

F1 − 1 + 16 2 + 0 − 8 1+ 3 + 8 I
= G5+5+ 4 10 + 0 − 2 5 − 15 + 2JJ
GH 5 − 3 + 0 10 + 0 + 0 5+9+0 K

F16 −6 12 I
= G 14 8 −8 JJ
GH 2 10 14 K
∴ L.H.S. = A3–2A2+4A–18I
F1614 −86 −128I − 2F15 − 15 28I + F1−1 20 31I − 18F10 I
0 0
=G
H 2 10 14JK GH 5 3 0JK GH 2 − 1 1JK GH 0 JK
1 0
0 1

F16 − 2 + 4 − 18 −6 − 2 + 8 − 0 12 − 16 + 4 − 0I
G
= G14 − 10 − 4 − 0 8 + 10 + 0 − 18 −8 − 4 + 12 − 0J
J
H 2 − 10 + 8 − 0 10 − 6 − 4 − 0 14 − 0 + 4 − 18K
F0 0 0 I
= G0 0 0 JJ
GH 0 0 0K

= 0 = R.H.S.
(Hence Shown)
Example 13: There are two families X and Y. In family X, there are 3 men, 5 women and
6 children and in family Y, there are 2 men, 2 women and 3 children. The
recommended daily requirement of protein and carbohydrates for men,
women and children are as follows :
Protein : Men : 50gm; Women : 40gm; Children : 35gm.
Carbohydrates
Men : 60gm; Women: 45gm; Children : 25gm.
Calculate the total requirement of Protein and Carbohydrates for each of the
two families by matrix method.
Solution : Let F = Family Matrix
X Y
LM3 OP
2 Men

=M
5
MN6 PP
2 Woman
Q
3 Children
3× 2
166 Commercial Mathematics and Statistics

and R = Requirement Matrix

Men Woman Children
LM
= 50 40 OP
35 Protein
N60 45 Q
25 Carbohydrate

∴Total requirement = RF

L3 2 OP
L50
= M60
40 35 OP MM5 2P
N 45 25 Q MN6 3PQ

LM150 + 200 + 210

= 180 + 225 + 150
100 + 80 + 105 OP
N 120 + 90 + 75 Q
X Y
LM OP
560 285 Protein
N Q
= 555 285 Carbohydrate
3×2

∴ Total requirement for family X is

Protein : 560 gm
Carbohydrate : 555 gm
Total requirement for family Y is
Protein : 285 gm
Carbohydrate : 285 gm
Note : Here both FR and RF are defined. Where FR is a 3×3 and RF is a 2×2 matrix.
But we require total requirement of protein and carbohydrates for family X and Y. So, we
have computed RF which is a matrix having 2×2 = 4 elemen
 3.3 Matrix 167

SUMMARY

 A matrix is an ordered rectangular arrangement of numbers in rows and columns.

 A matrix having m rows and n columns is called a matrix of order m×n.
 [aij]m×1 is a column matrix.
 [aij]1×n is a row matrix.
 An m×n matrix is a square matrix if m=n.
 A=[aij]m×n is a diagonal matrix if aij= 0 when i≠j.
 A=[aij]n×n is a scalar matrix if aij= 0 when i≠j and aij=k (k is some constant) when i=j.
 A[aij]n×n is an identity matrix if aij=0 when i≠j and aij=1 when i=j.
 A=[aij]m×n is a zero or null matrix if aij=0 for all i and j.
 Two matrices A=[aij]m×n and B=[bij]m×n are said to be equal if aij=bij for all i and j.
 kA=k[aij]m×n = [k(aij)]m×n
 A+B = B+A
 A–B = A+(–1)B
n

 If A = [aij]m×n and B=[bij]n×p, then AB=C=[Cik]m×p where Cik = ∑ a ij b jk

j=1

 In general AB≠BA
 A(BC) = (AB)C
 A(B+C) = AB+AC
 (A+B)C = AC+BC
 If A=[aij]m×n then A/ or AT= (bij)n×m where bij = aji
 A is a symmetric matrix, (A/)/ = A
 (A+B)/ = A/+B/
 (AB)/ = B/A/
 (kA)/ = kA/ where k is any real number.
 A square matrix A is said to be orthogonal if AA/ = A/A=I
168 Commercial Mathematics and Statistics

EXERCISE 3.3

1. If a matrix has 12 elements, what are the possible order it may have? What will be the
possible order if it has 5 elements?
2. Write down the indicated elements of the following matrix.
(i) a13, a22 and a32 in
LM 5 −6 0 OP
A= M4 3 7 P
MN−1 2 −3PQ

(ii) b14, b23 and b34 is

LM 2 −5 6 8 OP
B= M0 4 −2 1P
MN−4 9 10 7PQ

3. (i) Construct a 2×3 matrix where

2j − j
a ij =
j2
(ii) Construct a 4×2 matrix where

j2
a ij =
2
4. Find the value of x, y, z, w if
LM x − y 2x + z OP = LM3 OP
5
N2x − y 3z + wQ N5 Q
7

LM 7 −4 3O
P LM−3 8 −2 O
4 PQ
5. If A = −6 and B =
N 2 −1Q N 0 −3
Find (i) 3A+4B
(ii) 2A–3B
LM1 2 −3 OP LM3 −1 2 OP
6. If A = M5 0 2 P B = M4 2 5 P
MN1 −1 1 PQ MN2 0 3PQ
 3.3 Matrix 169

LM4 1 2 OP
and C = M0 3 2 P
MN1 −2 3PQ

Compute (i) A+B

(ii) 3C–A
(iii) AB
(iv) C(A+B)

7. Find the matrix X such that 3A–2B+X = 0 where A = 1 3 B =

LM4 2OP LM−2 1OP
N Q N 3 2Q
8. Find x and y if

x
LM2OP + yLM−1OP = LM10OP
N3Q N 1 Q N 5 Q
9. Find X and Y if

(i) X+Y = 2 5
LM7 0OP and X–Y = 0 3
LM3 0OP
N Q N Q
(ii) Find X if
LM3 2OP
Y= 5 4
N Q
L1 −3O
2x+Y = M7 0 P
N Q
L1 −1O Lx 1 O
10. If A = M2 −1P , B = My −1P and
N Q N Q
(A+B)2 = A2+B2 find the values of x and y
FG 1 0IJ FG 0 1IJ
H K
11. If I = 0 1 A = 0 0
H K
Prove that (aI+bA)3 = a3 I + 3a2bA
FG 1 2IJ FG 2 0IJ FG 4 3IJ
H K H K
12. If A = 0 3 B = 3 4 C = 1 0
H K
verify that (i) A.(B.C) = (A.B).C
(ii) (A+B).C = A.C.+B.C.
170 Commercial Mathematics and Statistics

13.
LMa bOP
If A = c d , show that it satisfies the equation A2–(a+d)A+(ad–bc)I = 0
N Q
F 2 0 1I
14.
G
If A = G 2 1 3J
J
H 1 −1 0K
find A2–5A+6I

LM1 0 2 OP
15. If A = M0 2 1 P
MN2 0 3PQ

Prove that A3–6A2+7A+2I = 0

16.
LM3 −2 OP
If A = 4 −2 and I = 0 1
LM1 0OP
N Q N Q
find k, such that A2=kA–2I.

1 2 2 LM OP
1
17. Show that the matrix
3
2 1 −2 MM PP
−2 2 −1 N Q
is orthogonal.

18. If A =
FG 5 3 IJ B=
FG 2 −6IJ
H0 −4K H −1 7 K
Show that (AB)/ = B/A/
19. There firms X, Y and Z supplied 30, 25 and 15 trucks of brick and 12, 3 and 7 trucks
of sand respectively to Mr. Hazarika. If the cost of brick and sand per truck are
respectively. Rs.5400 and Rs.3000, find the total amount paid by the Mr. Hazarika to
each firm by using matrix method.
20. In a certain district there are 15 branch office and 45 customer service centre of a
mobile company. Each branch office has 1 incharge, 4 office assistant, 2 computer
operator and 2 peons. On the other hand each customer service centre has 1 office
assistant, 3 computer operator and 1 peon. The salary of each of them are as follows :
Peon : Rs.2500; Computer Operator : Rs.7200; Office Assistant : Rs.9500
and Incharge : Rs.16,500.
 3.3 Matrix 171
Using matrix operation find (i) Total monthly salary bill of each branch office and
Customer Service Centre.
(ii) The total monthly salary bill of the whole district.

ANSWERS 3.3

1. 1×12, 12×1, 2×6, 6×2, 3×4, 4×3, 5×1, 1×5.

2. (i) a13=0, a22=3, a32=2
(ii) b14=8, b23= –2, b34=7.

LM 1 0 −1 OP
3. (i) A = M 3 1 1 PQ
N4 2 4

LM 1 OP
MM 21 2
2
PP
2
M
(ii) A = M 2
1 2P
P
MM 1 2P
PQ
N2
4. x = 2, y = –1, z = 1, w = 4
LM 9 20 1 OP
5. (i) −18 −6 13
N Q
L 23 − 32 12 OP
(ii) M−12
N 13 −14Q

L4 1 −1O L11 1 9 OP
6. (i) MM 9 2 7 PP (ii) MM−5 9 4 P
MN3 −1 4 PQ MN 2 −5 8PQ

LM 5 3 3 OP31 4 11 LM OP
(iii) M19 PP
−5 16 (iv) 33 4 29 MM PP
MN 1 −3 0 Q
−5 −6 −3 N Q
172 Commercial Mathematics and Statistics

7. x=
LM−16 −4OP
N3 −5Q
8. x = 3, y = –4

9. (i) x =
LM5 0OP y = LM2 0OP
N1 4 Q N1 1 Q
(ii) x = M
L−1 −5 / 2OP
N 1 −2 Q
10. x = 1, y = 4

LM 1 −1 −3 OP
14. MM−1 −1 −10 P
N−5 4 4 PQ

16. k = 1.
19. Firm X = Rs. 1,98,000
Firm Y = Rs. 1,44,000
Firm Z = Rs.1,02,000
20. (i) Branch Office = Rs. 73,900
Customer Service Centre = Rs. 33,600
(ii) Rs. 26,20,500
 (173)

UNIT-4 STATISTICAL AVERAGES

OBJECTIVES :
This chapter will help you to understand–
 The meaning, purpose and characteristics of an average.
 The different types of averages, their properties, merits, demerits and uses.
 The calculation of averages for individual series, ungrouped and grouped
frequency distributions.
 The meaning and calculation of partitions values.
 The graphical representation of Median and Mode.

4.1 INTRODUCTION :
The arithmetical measures which effectively condense the data to a single value are called
Averages. They represent the entire mass of unwieldly data thereby reducing the complexity
of the raw data. Besides condensing the data, averages provide a more precise description of
the distribution and further helps in comparing two or more similar distributions. Since an
average represents the entire data, its value lies between the two extreme observations. i.e.,
the largest and the smallest observations. There is a general tendency of the value of most of
the frequency distributions to concentrate in the middle part of the distributions. For this
reasons, an average is referred to as a measure of central tendency. Averages or Measures
of central tendency are also known as measures of locations as they enable us to locate the
position of a distributions.
The following definitions of an average by different statisticians will help us to have a
clear idea about it.
Clark defined average as – “Average is an attempt to find one single figure to describe
whole of figures.”
According to Croxton and Cowden – “An average value is a single value within the
range of the data that is used to represent all the values in the series. Since an average is
somewhere within the range of the data, it is sometimes called a measure of central tendency.”
The definition given by Croxton and Cowden is adequate.

4.2 PURPOSE OF AN AVERAGE :

There are two main purposes of an average. They are–
(i) To get a single value to represent the entire group of values. An average
174 Commercial Mathematics and Statistics

condenses the mass of data into a single value which becomes easier to understand
and remember.
(ii) To facilitate comparison. An average reduces the mass of data to a single figure and
thus enables us to made a comparative study of different distributions.

4.3 CHARACTERISTICS OF A GOOD AVERAGE :

A good average or measure of central tendency must passess the following essential
qualities or characteristics:
(i) It should be rigidly defined i.e, the definition must be clear so that its interpretation
does not differ from person to person.
(ii) It should be easy to understand and calculate.
(iii) It should be based on all the observations. An average should take into
consideration each and every observation of a series.
(iv) It should be capable of further algebraic treatment. An average should be
such that it can be used for further statistical computations to enhance its utility.
(v) It should have sampling stability i.e., it should be affected as little as possible by
fluctuations of sampling.
(vi) It should not be unduly affected by extreme observations i.e., one or two very
large or very small values must not effect the average by unduly increasing or
decreasing its values.

4.4 TYPES OF AVERAGES :

The following are the important measures of central tendency or averages which are
commonly used in practice.
(i) Arithmetic Mean (A.M.) or Mean
(ii) Geometric Mean (G.M.)
(iii) Harmonic Mean (H.M.)
(iv) Median
(v) Mode
Remark 1 : Unless specially mentioned mean usually refers to A.M.
Remark 2 : Unit of an average is same as that of the distribution from which it is calculated.
E.g, If unit of a distributions is in ‘cm’ then the average calculated from that
distribution will also be in ‘cm’.
Remark 3 : The symbol ∑ is the letter capital sigma of the Greek alphabet and is used in
Mathematics to denote the sum of values.
 Statistical Averages 175
For example :
n
(i) x1+x2+ ... +xn = ∑ xi or ∑x.
=1

7
(ii) x4+x5+x6+x7 = ∑ xi
= 4

n
(iii) f1x1+ f2x2+....+ fnx2= ∑ f x or ∑fx.
i i

=1

n
(iv) ∑ a = na (where a is a constant)
=1

n 4
(v) ∑ 4 = 4n & ∑ 3 = 3 + 3 + 3 + 3 = 4 × 3=12
=1 =1

3
b g
(vi) ∑ x i + 2 = (x1+2)+(x2+2)+(x3+2)
 =1

= (x1+x2+x3)+(2+2+2)
3
= ∑ x i +3.2.
=1

n n
lly, ∑ a (x +a) =
i
∑ x i +n . a
=1 =1

4.5 ARITHMETIC MEAN :

Arithmetic mean of a given set of observations is calculated by adding the values of all
the observations and dividing the total by the number of observations.
If x1, x2, ... xn are ‘n’ observations, then their AM, usually denoted by x is given by
n

AM = x = x1 + x 2 +........+ x n
∑ x1
 =1
=
n n
n
where ∑ x i is the sum of the ‘n’ observations.
=1
176 Commercial Mathematics and Statistics

Example 1 :
Find the AM of 5, 2, 7, 3, 4.

Solution : AM = x = 5 + 2 + 7 + 3 +=
4 21
= 4.5
5 5

4.5.1 CALCULATION OF ARITHMETIC MEAN (AM)

(A) In case of frequency distributions :
If ‘n’ variates x1, x2, .......... xn occurs f1, f2, ............. fn times respectively i.e., if f1, f2,
.......... fn are the respective frequencies of x 1, x2, ............ xn which can be expressed as

x x1 x 2 x 3....... x n
f f1 f2 f3 ........ fn

then the AM x is given by

AM( x ) =
bx + x +........f
1 1 1 g b g b
times + x 2 + x 2 +........ f2 times + x n + x n +........ fn times g
f1 + f2 +........+ fn
f1x1 + f2 x 2 ........ fn x n
= f1 + f2 +........+ fn
n
∑ fi x i
 =1
= n
∑ fi
 =1

n
∑ fi x i
= =1
N
n
Where ∑ fi = N, the total frequency..
=1

Example 2 :
Compute the mean from the following data–
Value (x) : 10 20 30 40 50
Frequency (f) : 7 12 16 10 5
 Statistical Averages 177
Solution : Let us prepare the following table–
x f fx
10 7 70
20 12 240
30 16 480
40 10 400
50 5 250
Total ∑f = N = 50 ∑fx = 1440

AM( x ) = ∑
fx
= 1440
= 28.8
N 50

(B) Continuous frequency distribution (grouped data) :

In case of continuous frequency distribution, the variable is presented in the form of class
intervals. Here the AM is obtained by taking the mid values of the class intervals and denoting
them by x.
n
∑ fi x i
∴ AM ( x ) = =1 , where xi is the mid value of the ith class interval and is given by
N

Lower limit of i th classinterval + Upper limit of i th classinterval

xi =
2

Example 3 : From the following data of the marks obtained by 30 students of a class,
calculate the average marks.
Marks : 0–10 10–20 20–30 30–40 40–50
No. of Students: 3 6 10 7 4
Solution : Let ‘x’ denote the mid value of the class interval and ‘f’ the number of students.
Now let us prepare the following table.
Marks Mid value No. of students fx
C.I x f
0–10 0 + 10 = 5 3 15
2
10–20 10 + 20 = 15 6 90
2

C.Math(2)–12
178 Commercial Mathematics and Statistics

Marks Mid value No. of students fx

20–30 20 + 30 = 25 10 250
2

30–40 30 + 40 = 35 7 245
2

40–50 40 + 50 = 45 4 180
2
n n
Total ∑ f=
i N= 30 ∑ fi xi = 780
=1 =1

n
∑ fi x i
Average = x (AM) = =1
= 780
= 26
N 30
∴ Average mark is 26.

4.5.2 PROPERTIES OF ARITHMETIC MEAN :

Property 1: The algebraic sum of the deviations from their arithmetic mean is zero. If
mean of ‘n’ observations x 1, x2,..........xn is x , then
(x1– x )+(x2– x )+ .......... +(xn– x ) = 0
n
b
i.e., ∑ x i − x =
0 g
 =1

Proof : (x1– x )+(x2– x )+ ......... +(xn– x )

= (x1+x2+..........+xn)–( x + x + ............ n times)
n
= ∑ x i − nx
=1

LM n
∑x
OP
= n x –n x
MM=x  =1
n
, ∴ nx
= ∑ xPP
n

MN  =1
PQ
= 0.
Thus, the algebraic sum of deviations from mean is zero.
 Statistical Averages 179
For a frequency distribution
n
∑ fi bxi − xg =
0
=1

Property 2 : If each observation from a given set of ‘n’ observations is increased or

decreased by ‘a’ (constant) then the mean is also increased or decreased
by ‘a’ ie., If the mean of ‘n’ observations x1, x2, .......xn is x , then the mean
of the new observations–
(x1+a), (x2+a), ...... (xn+a) is x +a.
Property 3 : If each observation from a given set of ‘n’ observations is multiplied or
divided by ‘a’ (a constant) then the mean is also multiplied or divided by
‘a’ ie., If the mean of ‘n’ observations x 1, x2, ..... xn is x , then the mean of
new observations ax1, ax2, ..... axn is a x .
Again, the mean of new observations which we get by dividing x 1, x2,
x1 x 2 x
......... xn by ‘a’ ie, , ,......... n is x .
a a a a

Property 4 : If we are given the sizes and means of two series then the mean of the
combined series can be obtained. If n1 and n2 are the sizes and x1 and x2
are the respective means of the two series then the mean x of the combined
series of sizes n1+n2 is given by

n1x1 + n 2 x2
x=
n1 + n2
Note :
The above result can be generalised to the case of more than two series. If we
have ‘k’ series with respective sizes n1,n2,........,nk and means x1, x2 ,........, x k then
the combined mean is given by
n1 x1 + n 2 x 2 +..........+ n k x k
x =
n1 + n 2 +.........+ n k

k
∑ n i xi
 =1
= n
∑ ni
 =1
180 Commercial Mathematics and Statistics

Property 5 : The sum of the squares of deviations of the given set of observations is
minimum when taken from the AM. Symbolically, for a given frequency
n
∑ fi b x i − A g
2
=
distribution, the sum, S , which represents the sum of the
 =1
squares of deviations of given observation from any arbitrary value ‘A’ is
minimum when A= x .
Note :
If x be AM of different values of the variate x, y be the AM of the variate y and
if their simple relation is y = a+bx, (where a and b are constant) then y = a+ bx .
We havey = a+bx
Taking ∑ both sides we get
⇒ ∑y = ∑a+b∑x

⇒ ∑ ∑ y a b∑ x
= = [dividing both sides by n]
n n n

LM ∑=a na
= a
OP
⇒ y = a+ bx
N n n Q
Example 4: Average wage of male workers working in a factory is Rs.80, and the number
of male workers is 100. The average wage of the female workers is Rs.70
and their number is 50. Find the average wage of all the workers taken together.
Solution : Here
n1 = No. of male workers = 100
n2 = No. of female workers = 50
∴Total no. of workers = n1+n2 = 100+50 = 150
x1 = Average wage of male workers = Rs.80

x2 = Average wage of female workers = Rs.70

x = Average wage of all the workers = ?
Now, we have
n1x1 + n 2 x2 100 × 80 + 50 × 70
x = =
n1 + n 2 100 + 50

= 8000 + 3500 = 76.67

150
Average wage of all the workers is Rs.76.67.
 Statistical Averages 181

4.5.3 MERITS AND DEMERITS OF ARITHMETIC MEAN

Merits of A.M. are :
(i) It is rigidly defined.
(ii) It is easy to understand and calculate.
(iii) It is based on all the observations.
(iv) It is suitable for further mathematical treatment.
(v) It is least affected by sampling fluctuations.
(vi) It is the best measure to compare two or more series.
Demerits of A.M. are :
(i) It is very much affected by extreme observations (ie, very large or very small
observations)
(ii) It cannot be calculated if a single observation is missing or lost.
(iii) It cannot be determined for qualitative data such as honesty, intellegence etc.
(iv) It cannot be used in case of open end classes such as – less than 10, more than 30
etc.
(v) It cannot be determined by inspection nor it can be located graphically.
(vi) It may not be one of the values which the variable actually takes.
Uses of A.M. :
(i) AM is used for calculating average like – average speed, average marks itc. Usually
by average we mean arithmetic mean (A.M.)
(ii) AM is widely used in business to find out the operation cost, profit per unit
of article, output per man ad per machine, average monthly income and
expenditure etc.
(iii) A.M. is considered to be the ideal average. It is also used in social and economic
problems.

4.5.4 CALCULATION OF AM BY SHORT-CUT METHOD (Method of Assumed

Mean) :
(i) Short-Cut Method for Ungrouped data :
The short-cut method is applied when the frequencies and the values of the variables are
quite large. Here a provisional or assumed mean is taken which corresponds to the highest
frequency or which corresponds to the middle value of a frequency distribution. Next we
find the deviations of the variates from this assumed mean.
182 Commercial Mathematics and Statistics

Then the A.M. is given by –

x =A+ ∑ = A+ ∑
fd fd
∑ f N
Where A = assumed mean
f = frequency
N = ∑f = total frequency
d = x–A = deviations of any variate value from A.
Example 5:
Compute the mean from the following data of marks obtained by 50 students in
Mathematics.
Marks : 10 20 30 40 50
No. of Students : 7 12 16 10 5
Solution : Let x denote the marks and ‘f’ denote the number of students.
Let us take the assumed mean A=30. For calculation of mean we prepare the following
table

Marks No. of Students d = x–A fd

x f = x–30
10 7 –20 –140
20 12 –10 –120
30 16 0 0
40 10 10 100
50 5 20 100
∑f = N = 50 ∑fd = –60

x = A+ ∑
fd
N

= 30 +
b−60g
50

= 30 − −60
50
= 28.8
Average marks is 28.8.
 Statistical Averages 183

(ii) Short-cut method for grouped data (continuous series) :

For grouped data or continuous series we obtain the mind values of each class intervals
which are denoted by x. Here an assumed mean is taken from the mid values which
corresponds to the highest frequency or to the middle value of a frequency distribution.
Next we find the deviations of mid values from the assumed mean. Then the A.M. is
given by

x= A +
∑ fd
N
Where A = assumed mean
d = x–A = deviations of mid-values from assumed mean
N = ∑f = total frequency.

Example 6 :
From the following data of marks obtained by 50 students of a class, calculate the average
marks.
Marks : 0–10 10–20 20–30 30–40 40–50
No. of Students : 7 12 16 10 5

Solution : For calculation of A.M. we prepare the following table.

Marks Mid-value No. of Students d = x–A f.d.

(C.I.) ‘x’ ‘f’ = x–25
0–10 5 7 –20 –140
10–20 15 12 –10 –120
20–30 25 16 0 0
30–40 35 10 10 100
40–50 45 5 20 100
∑f = N = 50 ∑fd = –60

Let the assumed mean A=25

x = A+ ∑
fd
= 25 +
−60 b g
N 50

= 25 − −6 = 25–1.2 = 23.8
5
Average marks is 23.8.
184 Commercial Mathematics and Statistics

4.5.5 CALCULATION OF A.M. BY STEP DEVIATION METHOD

(i) Step Deviation Method for Ungrouped Data :
In the step deviation method for ungrouped data, the only additional point is that in order
to simplify calculations we take a common factor from the data. This common factor is
equal to the common difference in the x values and is denoted by ‘i’.
Here the deviation of variates ‘x’ from the assumed mean A are divided by the common
factor and is denoted by ‘d/’.
The A.M. is denoted by the formula.

x=
A+
∑ fd / × i
N
where A = assumed mean
f = frequency

d / = x − A , i = a common factor
i
N = ∑f = total frequency.
Example 7:
Calculate by step-deviation method the A.M. of the following marks obtained by students
in English.
Marks : 10 20 30 40 50 60
No. of Students : 4 6 10 12 8 5
Solution : Let the assumed mean = 40. For calculation of A.M. we prepare the following
table.

Marks No. of Students d = x–A d/ = d = d fd/

i 10
x f = x–40
10 4 –30 –3 –12
20 6 –20 –2 –12
30 10 –10 –1 –10
40 12 0 0 0
50 8 10 1 8
60 5 20 2 10
Total ∑f = N = 45 ∑fd/ = –16
 Statistical Averages 185

x=
A+
∑ fd /
×i
N

= 40 + −16 × 10
45
= 40–3.55
= 36.45
∴Average marks is 36.45.
(ii) Step-deviation method for grouped or continuous series :
When the class intervals in a grouped date are equal, then the calculation can be
simplified further by taking a common factor. This common factor is the width of the
class interval and is denoted by ‘i’. The other steps in the calculation of A.M. remains
the same as in ungrouped data.

Example 8 :
Find out the mean daily wages from the following distribution by step-deviation method.
Wages (Rs.) : 100–110 110–120 120–130 130–140 140–150 150–160
No. of Workers : 8 20 40 18 10 4
Solution : For calculation we prepare the following table.

Wages Mid value No. of d/ = x − A fd/

i
(C.I.) (x) workers (f) = x − 125
10
100–110 105 8 –2 –16
110–120 115 20 –1 –20
120–130 125 40 0 0
130–140 135 18 1 18
140–150 145 10 2 20
150–160 155 4 3 12

∑f = N = 100 ∑fd/ = 14

Let the assumed mean be 125

186 Commercial Mathematics and Statistics

∴ x=
A+
∑ fd /
×i
N

= 125 + 14 × 10
100
= 125+1.4
= 126.4
The mean daily wages = Rs.126.4.

Note :
If the data are given by the inclusive method like 10–19, 20–29, 30–39, ......... it is
not necessary to adjust the classes by finding the class boundaries for calculating
A.M. To calculate A.M. we need the mid values of the classes which remain the
same whether we make adjustments or not. It is also not necessary to re-arrange the
series in an excending order.

4.5.6 CALCULATION OF A.M. FROM CUMULATIVE FREQUENCY

DISTRIBUTION
For calculation of A.M. from cumulative frequency distribution, we have to convert the
cumulative frequency distritution to simple frequency distribution. After the conversion, we
have to apply the formula to calculate the mean as it has been done in earlier example.
Example 9 :
The following are the marks obtained by the students of a class in statistics.
Find the average mark

Marks No. of Students

less than 10 5
” ” 20 17
” ” 30 32
” ” 40 42
” ” 50 50
Solution :
First we convert the cumulative frequency (c.f.) to simple frequency and then we construct
the grouped frequency distribution to find the A.M. as follows –
Here the width of the classes is 10, so the class intervals are taken as 0–10, 10–20, .......
 Statistical Averages 187

Marks Mid value No. of d/ = x − A fd/

i
(C.I.) (x) Students (f) = − 25
x
10

0–10 5 5 –2 –10
10–20 15 17–5=12 –1 –12
20–30 25 32–17=15 0 0
30–40 35 42–32=10 1 10
40–50 45 50–42=8 2 16

Total ∑f = N = 100 ∑fd/ = 4

Let the assumed mean be 25

∴ x=
A+
∑ fd / × i
N

= 25 + 4 × 10
50
= 25+0.8
= 25.8
The average mark is 25.8.

Example 10 :
Following in the distribution of marks out of 60 obtained by 50 students in a class. Calculate
the mean.
Marks No. of Students
Morethan 0 50
” ” 10 46
” ” 20 36
” ” 30 18
” ” 40 9
” ” 50 3
Solution :
First we convert the cumulative frequency (more than type) to simple frequency and then
re-arrange the distribution as follows –
188 Commercial Mathematics and Statistics

Marks Mid value No. of d/ = x − A fd/

i
(C.I.) (x) Students (f) = − 25
x
10
0–10 5 50–46 = 4 –2 –8
10–20 15 46–36 = 10 –1 –10
20–30 25 36–18 = 18 0 0
30–40 35 18–9 = 9 1 9
40–50 45 9–3 = 6 2 12
50–60 55 3 3 9

∑f = N = 50 ∑fd/ = 12

Let the assumed mean be 25

∴ x=
A+
∑ fd /
×i
N

= 25 + 12 × 10
50
= 25+2.4
= 27.4
The average mark is 27.4.
Remark 1 : The AM from unequal width of class interval in obtained in the same way as
it is obtained in case of equal width of class interval.
Remarks 2 : In case of open end classes, if we want to calculate mean we must close the
ends of the class interval and then proceed in the usual manner.
Remarks 3 : If the class-intervals are of varying width then AM is not an appropriate
measure of central tendency. In such cases, median and mode are used instead of
mean.
Example on Calculation of missing frequency when A.M as given.

Example 11 : The AM of the following frequency distribution is 67.45 inches. Find the
value of the missing frequency (f3).
Height (in inches) : 60–62 63–65 66–68 69–71 72–74
No. of Persons : 5 54 f3 81 24
 Statistical Averages 189
Solution : Let us prepare the following table to calculate the missing frequency f3.

Height Mid values No. of Persons fx

(C.I.) (x) (f)

60–62 61 5 305
63–65 64 54 3456
66–68 67 f3 67f3
69–71 70 81 5670
72–74 73 24 1752

Total ∑f = 164+f3 11183+67f3

x= ∑ fx
N

11183 + 67f3
67.45 = 164 + f3

⇒ 67.45 (164+f3) = 11183+67f3

⇒ 11061.8+67.45f3 = 11183+67f3
⇒ 67.45f3 – 67f3 = 11183 – 11061.8
⇒ 0.45f3 = 121.2

∴ f3 = 1212
. = 269.33
0.45
f3 ~ 269 Ans.

Example on correction of incorrect value of a series when AM is given :

Correct value of ∑ x
Formula for correct mean =
n
Corrected ∑x = Incorrect ∑x – Incorrect observation + Correct observations.

Example 12 : The mean of 15 observations was found to be 20. Later on it was found that
one observation 14 was misread as 40. Find the correct mean.
Solution : Incorrect mean ( x ) = 20
Here n = 15
190 Commercial Mathematics and Statistics

x = ∑x
n
⇒ nx = ∑x
∴ Incorrect ∑x = n× Incorrect x
= 15×20 = 300
Correct ∑x = Incorrect ∑x – Incorrect observation + Correct observations
= 300 – 40+14
Correct ∑x = 274
Correct ∑ x
∴ Correct x =
n

= 274
15
= 18.266 ~ 18.27 Ans.

4.5.7 WEIGHTED ARITHMETIC MEAN

While computing simple arithmetic mean, it is presumed that every item is of equal
importance. Situations may arise where different items may vary in importance. In such
cases, it becomes necessary to assign weights in proportion to the relative importance of the
various items. We then compute the weighted arithmetic mean.
If w1,w2,........., wn are the weights assigned to the values x1,x2, ..........xn respectively,
then the weighted mean is defined as :
w1x1 + w2x2 +............+wnxn
Weighted AM =
w1 + w2 +.............+wn
n
∑ wix i
 =1
xw = n
∑ wi
 =1

This is precisely same as the formula given in case of frequency distribution, with ‘f’
replaced by ‘w’.

Example 13 : A candidate obtains the following percentages in an examination – English

60, Assamese 75, Mathematics 80, Physics 85 and Chemistry 62. Find the
candidate’s weighted AM if weights 1,2,1,3,3 respectively are alloted to the
subjects.
 Statistical Averages 191
Solution : Let ‘x’ denote the percentage of marks in the different subjects and ‘w’ denote
the respective weight. Now we have the following table.

Subjects % Marks Weights wx

(x) (w)

English 60 1 60
Assamese 75 2 150
Mathematics 80 1 80
Physics 85 3 255
Chemistry 6 3 18.6

∑f = 10 ∑wx = 731
n
∑ wix i
i =1
Weighted mean= n
∑ wi
i =1

= 731
10
= 73.1 Ans.

EXERCISE 4 (A)

1. Define Average. Mention the objectives of average.

2. Discuss the characteristics of an ideal average.
3. What are the measures of central tendency? Why are they called measures of central
tendency?
4. Mention the merits, demerits and uses of arithmetic mean.
5. Prove that the algebraic sum of the deviations of a given set of observations from their
AM is zero.
6. If x be AM of x variates, y be AM of y variates and if y=a+bx, where a and b are
constants, then show that y = a + bx .
192 Commercial Mathematics and Statistics

7. Distinguish between simple and weighted average.

8. The weight of 6 persons are as follows (in Kg) 70, 42, 85, 75, 68, 55. Find the mean.
[Ans: 65.83 Kg.]
9. Calculate the AM of the following marks obtained by students in English.
Marks : 10 20 30 40 50 60
No. of Students : 6 4 10 12 8 4
[Ans : 35.6]
10. Determine the AM of the following distribution :
Height (in cm) : 130–134 135–139 140–144 145–149
Frequency : 5 15 28 24
Height (in cm) : 150–154 155–159 160–164
Frequency : 17 10 1
[Ans : 145.35 cm]
11. The AM of the values of a variable x is 20.
(i) If each value is increased by 4, what will be the new AM?
(ii) If each value is decreased by 5, what will be the new AM?
(iii) If each value is multiplied by 2, what will be the new AM?
(iv) If each value is divided by 4, what will be the new AM?
[Ans : (i) 24, (ii) 15, (iii) 40, (iv) 5]
12. Compute the AM of the following distribution –

Marks No. of Students

less than 10 4
” ” 20 10
” ” 30 15
” ” 40 25
” ” 50 30
” ” 60 35
” ” 70 45
” ” 80 65
[Ans : 49.77]
 Statistical Averages 193
13. The mean of the following frequency distribution is 50. But the frequencies f 1 and f2 in
the class 20–40 and 60–80 are missing. Find the missing frequencies.
Class : 0–20 20–40 40–60 60–80 80–100 Total
Frequency : 17 f1 32 f2 19 120
[Ans : f1 = 28, f2 = 24]
14. There are 50 students in a class of which 40 are boys and rest girls. The average weight
of the class is 44Kg and the average weight of the girls is 40Kg. Find the average
weight of the boys.
[Ans : 45Kg]
15. The mean of 200 observations was 50. Later on, it was found that two observations
were misread as 92 and 8 instead of 192 and 88. Find the correct mean.
[Ans : 50.9]
16. A candidate obtains the following percentages in an examination – English 46%,
Mathematics 67%, Statistics 72%, Economics 58% and Political Science 53%. It is
agreed to double the weights to marks in English and Mathematics as compared to the
other subjects. What is the weighted mean?
[Ans : 58.43]

4.6 GEOMETRIC MEAN (G.M.)

The geometric mean of a series of ‘n’ observations is defined as the nth root of the product
of the ‘n’ observations. Geometric mean is abbreviated as G.M.
Thus if x1,x2,..........,xn are ‘n’ observations then their geometric mean is given by :

G.M. = n b
x1 , x 2 ,......... x n = x1. x 2 ......... x n g 1
n ... ... (1)

If there are two observations we take the square root of the product of the two observations
as G.M.
eg. G.M. of 4 and 9 is 4 × 9= 36= 6
Similarly, if there are three observations we take the cube root of the product of the three
observations as the G.M. If the number of observations are greater than 3, then the
computations becomes very tedius. In such cases G.M. can be calculated by taking the
logarithm on both sides of (1)
C.Math(2)–13
194 Commercial Mathematics and Statistics

log (GM) b
= 1 log x1. x 2 .......... x n
n
g
= 1 log x1 + log x 2 +..........+ log x n
n
n
1
= n ∑ log x i
=1

LM 1 n OP
∴ GM = Antilog n ∑ log x i
MN =1 PQ
4.6.1 CALCULATION OF G.M. FOR INDIVIDUAL SERIES
Following are the steps to calculate the G.M. for individual series.
(i) Find log x, where x is the value of the observations.
(ii) Add all the values of log x ie, ∑log x.

(iii) ∑ log x is divided by the total number of observations, which gives ∑ log x .
n

(iv) The antilog of ∑ log gives the required G.M.

n
Example 14 : Calculate the GM of the following
50, 72, 54, 82, 93.
Solution : For computation of G.M. let us prepar the following table :

x log x
50 1.6990
72 1.8573
54 1.7324
82 1.9138
93 1.9685
∑ log x = 9.1710

G.M. = 5 50 × 72 × 54 × 82 × 93

a
= 50 × 72 × 54 × 82 × 93 f 1
5
 Statistical Averages 195

or log GM = 1 log 50 + log 72 + log 54 + log 82 + log 93

5

= 1 1.6990 + 1.8573 + 1.7324 + 1.9138 + 1.9685

5

= 1 × 91710
.
5
= 1.8342.
∴ G.M. = Antilog 1.8342
= 68.29 Ans.

4.6.2 CALCULATION OF G.M.

(i) Calculation of g.m. for ungrouped frequency distribution :
If the observations x1,x2,..........xn occur with frequencies f1,f2,..............fn respectively,
and the total frequency, ∑f=N, then the G.M. in case of ungrouped frequency distribution is
given by

b g b g b
G.M. = x1. x1......... f1 times × x 2 . x 2 ......... f2 times ×...........× x n . x n ......... fn times g 1
N

1
∴ G. M. = x1f1 . xf22 .......... xfnn N

Taking log on both sides we get

log GM = 1 log x1f1 . x f22 .......... xfnn

N

= 1 f1 log x1 + f2 log x 2 +..........+ fn log x n

N
n
1
= N ∑ fi log x i
=1

LM 1 f log x OP n
∴ G. M. = Anti log N ∑
MN PQ
=1
i i

Example 15 : Find the G.M. from the following data.

Marks : 5 15 25 35 45
No. of Students : 5 7 15 25 8
196 Commercial Mathematics and Statistics

For calculation of G.M. we prepare the following table.

x f log x f log x
5 5 0.6990 3.4950
15 7 1.1761 8.2327
25 15 1.3979 20.9685
35 25 1.5441 38.6025
45 8 1.6532 13.2256
∑f = N ∑f log x
= 60 = 84.5243

1 LM
G.M. = Anti log N ∑ f log x OP
N Q
= Anti log LM 60 OP
84.5243
N Q
= Anti log 1.4087 = 25.63
= 25.63 marks Ans.

(ii) Calculation of g.m. for grouped or continuous frequency distributions :

For grouped or continuous frequency distribution, the values of x are the mid values of
the corresponding classes.
The steps to calculate GM for grouped frequency distribution are same as that of
ungrouped frequency distributions.

4.6.3 COMBINED GEOMETRIC MEAN

If G1 and G2 are the geometric means of two series of sizes n1 and n2 respectively, then
the GM of the combined series of size n1+n2 is the Antilog (log GM). Where

n1 logG1 + n2 log G2
log G.M. = n1 + n2

The above result can be generalised to the case of ‘k’ series as follows – If G1, G2,........Gk
are the GM of the ‘k’ series of sizes n1,n2,.........,nk respectively, then the G.M. of the combined
series of size n1+n2+.......+nk is given by Antilog (log G.M.), where
 Statistical Averages 197

n1 logG1 + n 2 log G 2 +..............+ n k log G k

log G.M. = n1 + n 2 +............+ n k

n
∑ n k log G k
k =1
= n
∑ nk
k =1

n
∑ n k log G k
k =1
∴ G.M. = Anti log n
∑ nk
k =1

4.6.4 WEIGHTED GEOMETRIC MEAN :

If the different observations xi(i=1,2,.........,n) are not of equal importance and are assigned
different weights say wi(i=1,2,..........,n) respectively, according to their degree of importance
then their weighted G.M. is defrdad as :
1
G.M (w) = x1w1 . x 2w2 ............. x n w n N

n
where N = w1 + w 2 +.........+ w n = w i ∑
 =1

∴ log G.M (w)= 1 w1 log x1 + w 2 log x 2 +.........+ w n log x n

N
n
1
= n ∑ w i log x i
∑ w i =1
 =1

LM w log x OP n

MM ∑ PP
 =1
n
i i

∴ G.M (w) = Antilog

MM ∑ w PP
N Q  =1
i
198 Commercial Mathematics and Statistics

4.6.5 MERITS, DEMERITS AND USES OF G.M.

The merits of G.M. are :
(i) It is rigidly defined.
(ii) It is based on all the observations.
(iii) It is suitable for further mathematical treatment.
(iv) It is less affectd by extreme observations.
(v) It is not affected much by fluctuations of sampling.
(vi) It is suitable when large weights have to be given to small items and small weight
to the large items.
The Demerits of G.M. are :
(i) It is difficult to understand and calculate for a non-mathematical person.
(ii) The value of G.M. cannot be calculated when any of the observation is zero or
negative.
Uses of G.M. are :
(i) G.M. is used in the construction of Index Number.
(ii) G.M. is highly useful in averaging ratios, percentages and rates of increase between
two periods.
(iii) G.M. is used in economic and social sciences where we want to give more
importance to smaller items.

EXERCISE 4 (B)
1. Define simple and weighted geometric mean.
2. State the merits, demerits and uses of G.M.
3. Find the G.M. of – (i) 2 and 8; (ii) 3, 9 and 27.
4. Compute the G.M. of the following data–
10, 110, 120, 50, 52, 80, 37, 60
[Ans: 52.84]
5. Find the G.M. from the following data :
Marks : 10 15 25 40 50
No. of Students : 4 6 10 7 3
[Ans: 23.89]
 Statistical Averages 199
6. Find the G.M. from the following data :
C.I. : 0–10 10–20 20–30 30–40 40–50
f: 4 8 10 6 7
[Ans: 22.06]
7. Three sets of data contain 8, 7 and 5 observations and their geometric means are 8.52,
10.12 and 7.75 respectively. Find the combined G.M. of 20 observations.
[Ans: 8.835]
8. Find the G.M. of 111, 171, 191, 212 having weights 3, 2, 4 and 5 respectively.
[Ans: 173.4]
9. The rateo of increase in population of a country during the last three decades are 5%,
8% and 12%. Find the average rate of growth during the last three decades.
[Ans: 8.2%]
10. A given machine is assumed to depreciate 40% in value in the first year, 25% in the 2nd
year and 10% per year for the next three years, each percent being calculated on the
divinishing value. What is the average depreciation recorded on the divinishing value
for the period of 5 years.
[Ans: 15.85%]

4.7 HARMONIC MEAN (H.M.)

The harmonic mean abbreviated as H.M., is defined as the reciprocal of the arithmetic
mean of the reciprocal of the individual observations.
Thus if x1,x2,...........,xn are ‘n’ observations then their H.M. is given by

H.M. = 1 = 1
1 L 1 + 1 +...........+ 1 O 1 n
1
n MN x1 x 2 n x PQ n ∑ x i
 =1

= n

∑ FH x1i IK
n

 =1

4.7.1 CALCULATION OF H.M. FOR INDIVIDUAL SERIES :

Following are the steps to calculate H.M. for an individual series

(i). Find the reciprosal of each observation ie, 1 .

x
200 Commercial Mathematics and Statistics
n
1
(ii) Find the reciprocals of all the observations ie, ∑ x i .
=1
n

∑ FH x1i IK
n
(iii) Then apply the formula H.M. =
 =1
where ‘n’ is the number of observations.
Example 16: Find the H.M. of 2, 4, 6, 8.

Solution : H.M. = 1 1 n
+ +...........+ 1
x1 x2 xn
= 4
1+1+1+1
2 4 6 8

= 4
12 + 6 + 4 + 3
24
4
= 25
24
= 3.84
Ans: 3.84

4.7.2 CALCULATION OF H.M.

(i) For ungrouped frequency distribution :
If the observations x1,x2,...........,xn occur with frequencies f1,f2,...........,fn respectively,
n
and the total frequency ie, ∑ fi = N. then H.M. is given by
 =1

f1 + f2 +...........+ fn
H.M. =
LM f1 f2
+ +...........+ n
f OP
N x1 x 2 xn Q
= N .

∑ FH I
n
fi
 =1
xi K
 Statistical Averages 201
Example 17 : Obtain the H.M. of the following data :
x: 10 20 30 40 50
f: 5 6 9 4 1
Solution : For calculation of H.M. let us prepare the following table.

x f 1 f×1
x x

10 5 0.100 0.500
20 6 0.050 0.300
30 9 0.033 0.297
40 4 0.025 0.100
50 1 0.020 0.020
f
Total ∑f = N ∑ xi =1.217
i
= 25

N
∴ H.M. = ∑ fi
n
FG IJ
 =1
xi H K
= 25
1217
.
= 20.54
Ans: 20.54.

(ii) Calculation of H.M. for grouped or Continuous frequency distributions :

For calculating H.M. in a continuous frequency distribution, the procedure is the same as
applied to ungrouped frequency distribution. The only difference is that here we take the
reciproeal of the mid-points of the close intervals as variate values. Thus in continuous or
grouped frequency distribution H.M. is computed by applying the following formula
N
= ∑ FG f IJ
n
H.M. i
Hx K
 =1 i

n
where xi is the mid-point of the i class interval and N = ∑ fi .
th
 =1
202 Commercial Mathematics and Statistics

4.7.3 WEIGHTED HARMONIC MEAN

Weighted H.M. is calculated with the help of the following formula.
n
∑ wi
=1
H.M.(w) =
FG 1 × w IJ + FG 1 × w IJ +............+FG 1 × w IJ
Hx K Hx K
1
1
2
2
Hx K
n
n

n
∑ wi
 =1
= n
Fw I
∑ GH x i JK
 =1 i

4.7.4 MERITS, DEMERITS AND USES OF H.M. MERITS OF H.M. ARE :

(i) It is rigidly defined.
(ii) It is based on all the observations.
(iii) It is suitable for further mathematical treatment.
(iv) It is not affected very much by fluctuations of sampling.
(v) It is useful in averaging special types of rateo and ratios where time factor is variable
and the act being performed remains constant.
Demerits of H.M. :
(i) It is not easy to understand and calculate.
(ii) Its value cannot be computed when there are negative observations or when one
or more observations are zero.
(iii) It is not very useful for analysis of economic data as it given greater weightage to
smaller items.
Uses of H.M.
Harmonic mean is useful in problems in which values of a variable are compared
with a constant quantity of another variable ie, rates, time, distance covered within
certain time and quantities purchased or sold per unit etc.

Problem 18: A man travels from one place to another, a distance of 120km at an average
speed of 40km/hr. He then makes the return journey at average speed of
30km/hr. What is his average speed over the entire distance?
 Statistical Averages 203
Solution : H.M. would be suitable to calculate the average speed.
2= =2 34.29.
∴ H.M. = 1 + 1 7
40 30 120
Ans : 34.29 km/hr.
Remark : The above e.g., clearly shows that when distances are the same for the two
speeds, H.M. given the correct answer, but when time of the journey are given the
A.M. of the rates of speed gives the correct answer.

EXERCISE 4 (C)

1. Define H.M. what are its uses?

2. Mention the merits and demerits of H.M.
3. Find the H.M. of the following
(i) 5, 8, 10, 15, 24 [Ans: 9.38]

(ii) 1, 1 , 1 ,........., 1 [Ans: 2 ]

2 3 n n +1

(iii) 1, 1 , 1 ,........., 1 [Ans: 0.18]

2 3 10
4. A person travelled 10 hrs at 50km/hr and again 14 hrs at 40km/hr, find the average
speed.
[Ans: 44.17km/hr]
5. A car covers four sides of a square at speed of 10, 20, 30 and 40km/hr respectively.
What is the average speed of the car around the square.
[Ans: 19.20km/hr]
6. An investor buys Rs.20,000 worth of shares of a company each month. During the first
three month he bought the shares at prices Rs.120, Rs.160 and Rs.210. After three
months what is the average price paid by him for the shares.
[Ans: Rs.166.66]
7. A cyclist covers his first 5 km at an average speed of 10km/hr, another 3 km at 8km/hr
and the last 2 km at 5km/hr. Find the average speed for the entire journey.
[Ans: 7.84 km/hr]
204 Commercial Mathematics and Statistics

8. Obtain the H.M. from the following data.

Marks : 10 20 30 40 50
No. of Students : 4 5 8 2 1
[Ans: 20.33]
9. Compute the H.M. from the following data.
Class Interval (C.I.) : 0–8 8–16 16–24
32–40 40–48 24–32
Frequency (f) : 8 7 15 6 7 24
[Ans: 25.40]
10. A man makes a trip which entails travelling 1500 km by train at an average speed of
60km/hr, 300 km by boat at an average speed of 25 km/hr, and 90 km by car at 30 km/
hr. What is the average speed for the entire journey.
[Ans: 47.25 km/hr.]

4.8 RELATIONSHIP AMONG AM, GM AND H.M.

For any set of observations, AM, GM and HM are related to each other in the relationship
AM > GM > HM
The sign of equality holds of all the observations are identical.
For the observations x1 & x2, we have

c x − x h ≥0
1 2
2

⇒ c x h −2 x x +c x h
2 2
1 1 2 2 ≥0

⇒ x1 + x 2 ≥ 2 x1x 2

x1 + x2
⇒ ≥ x1x 2
2
⇒AM > GM (This is true for any number of observations)
1 1
Again for x and x observations, we have
1 2

FG 1 − 1 IJ 2
≥0
H x1 x2 K
1 + 1 −2 1 1 ≥0
⇒ x1 x 2 x1 x 2
 Statistical Averages 205

1 + 1 ≥2 1 1
⇒ x1 x2 x1 x 2

1 + 1 ≥ 2
⇒ x1 x2 x1x 2

x1x 2 ≥ 2
⇒ 1 + 1
x1 x 2

⇒ GM > HM (True for any number of observations)

∴ AM > GM > HM
We also have AM×HM = (GM)2
This relationship holded only for a pair of observations.
Let the pair of observations be x 1 and x2
x1 + x 2 2
×
∴ AM×HM = 2 1 + 1
x1 x2

x1 + x2 2x1x2
= ×
2 x1 + x2

x x h bGMg
c= 2 2
= x1x 2
= 1 2

∴ AM×HM = (GM)2

Problem 19 : Find the AM, GM and HM for the numbers 2, 4, 6 and show that
AM>GM>HM.

Solutions : The three observations are 2, 4 & 6.

∴ AM = 2 + 4 +=
6 12
= 4
3 3

GM = 3
b
2× 4×6 = 2× 4×6 g 1
3

∴ log GM = 1 log 2 + log 4 + log 6

3

= 1 0.3010 + 0.6021 + 0.7782

3
206 Commercial Mathematics and Statistics

= 1 1.6813
3
= 0.5604
∴ GM = Anti log (0.5604)
= 3.634
3
HM 1
= + +1
1
2 4 6

3 = = 3 36
= 3.27
= 6 + 3 + 2 11 11
12 12
Now, we have AM = 4, GM = 3.634 & HM = 3.27
∴ AM > GM > HM.

Problem 20 : If the AM and GM of two numbers are 10 and 8 respectively, find their HM
and also the numbers.
Solution : We are given AM = 10 & GM = 8.

We know that AM×HM = (GM)2

or, 10×HM = 82

or, H.M. = 64
10
= 6.4
Let the two numbers be x and y.
x+y
Now, AM = = 10
2
⇒ AM = 20
GM = xy = 8
⇒ xy = 64
We know that (x–y)2 = (x+y)2 – 4xy
⇒ (x–y)2 = (20)2 – 4×64
⇒ (x–y)2 = 144
∴ (x–y) = 12.
 Statistical Averages 207
Solving x+y = 20 and x–y = 12 we get
2x = 32
∴ x = 16
∴ y = 20–16 = 4
Hence the numbers are 16 & 4.

EXERCISE 4 (D)

1. Find the AM, GM & HM for the numbers 4, 6, 8 and show that AM > GM > HM.
[Ans: Am=6, GM=5.755 & HM=5.538]
2. The AM and GM of two observations are 9 and 7.2 respectively. Find the two observations
and also the H.M.
[Ans: Nos are 14.4 & 3.6, HM=5.76]
3. GM and HM of two numbers are 6 and 5.5 respectively, find AM.
[Ans: 6.5]
4. AM and HM of two numbers are 10 and 6.4 respectively. Find the numbers and their
GM.
[Ans: Nos. are 16 & 4, GM=8]

4.9 MEDIAN
If a set of data is arranged in ascending or descending order of magnitude then the middle
value which divides the set into two equal parts is the median. Median is known as positional
average. According to Prof. L.R. Corner– “The median is that value of the variable which
divides the group into two equal parts, one part comprising all values greater and the other
all values less than median.
For eg, if the marks of seven students are given as below : 60, 62, 65, 70, 73, 75, 80.
Then median is given by 70.
208 Commercial Mathematics and Statistics

4.9.1 CALCULATION OF MEDIAN :

(i) For Individual series :
The ‘n’ values of the variable are arranged in ascending or decending order of magnitude,
then
Case I– when ‘n’ is odd.

Median is the value of n + 1 FH IK th

observation
2
Case II– when ‘n’ is even

There will be two middle terms n and n + 1 , then median is the average of these two
2 2
terms i.e.,

FH n2 IK th
FH
term + n + 1
2
IK th
term
Median =
2

Example 21 : The marks secored by 5 students are 40, 42, 38, 45, 50. Find the median.
Solution : Let us arrange the values in ascending order of magnitude – 38, 40, 42, 45, 50
Here n=5 ie, odd number
th
e j
∴ Median = n 2+ 1 value

= FH 5 + 1IK
th
value
2
= 3rd value
= 42
∴ Median = 42 marks.

Example 22: Find the median of the following marks obtained by 6 students 35, 38,
40, 42, 45, 50.
Solution : Here n=6, ie, even

∴ Median = average of n FH IK th
FH IK
and n + 1
th
value
2 2

= average of FH 6 IK and FH 6 + 1IK

th th
value
2 2
 Statistical Averages 209
= average of 3rd and 4th value

= 40 + 42
2
= 41
∴ Median = 41 marks.

Example 23 : Find the median for the following frequency distribution.

Marks : 10 20 30 40 50
No. of Students : 4 6 16 7 2
Solution : Let us prepare the following table for calculation of median.

Marks No. of Students c.f.

(f)

10 4 4
20 6 10
30 16 26
40 7 33
50 2 35
Total ∑f=N=35

Now, N +=
1 35 +1
= 36
= 13
2 2 2
The cf just greater than 13 is 26. The value corresponding to c.f 26 is 30.
∴ Hence the median mark is 30.

(ii) For Simple Frequency Distribution (Ungrouped Data)

Here to calculate median we follow the following steps :
1. Arrange the values of the variable in ascending or descending order of
magnitude.
2. Calculate the cumulative frequency less than type.

3. Find out the cumulative frequency (cf). Which is next higher or equal to N +1 ,
2
where N=∑f (total frequency).
4. The value of the variable which corresponds to the c.f. is the required median.

C.Math(2)–14
210 Commercial Mathematics and Statistics

(iii) For Continuous series (grouped frequency distribution)

In this case, for computation of median, we follow the following steps.
1. Arrange the class interval in ascending order.
2. Find the c.f. for different classes.

3. Find the value of N

2
[as in continuous series N divides the area of the curve into two equal parts]
2
4. Find the c.f. which is eqal to or next higher to N .
2
5. The class interval corresponding to this c.f. is called the median class.
6. Then use the following formula to find median
N − c.f.
Median = L + 2
×i
f
Where L = lower limit of the median class.
N = ∑f = total frequency.
c.f. = cumulative frequency of the class preceeding the median class.
f = frequency of the median class.
i = width of the median class.

Example 24 : Calculate the median from the following data.

Class Interval : 10–20 20–30 30–40 40–50 50–60 60–70
Frequency : 10 18 30 27 15 8
Solution : Let us prepare the following table to compute median.

Class Interval Frequency c.f.

(f)
10–20 10 10
20–30 18 28
30–40 30 58
40–50 27 85
50–60 15 100
60–70 8 108
Total ∑f=N=108
 Statistical Averages 211

Median = value of NFH IK item

th

= value of FH 108 IK = 54
th
th
item
2
The c.f. just greater than 54 is 58.
∴ Median lies in the class 30–40
N − c.f.
Median = L + 2
×i
f

Here L = 30, N = 54, c.f. = 28, f = 30, i = 10

2

∴ Median = 30 + 54 − 28 × 10
30
= 30+8.67 = 38.67
Ans: 38.67.

Remarks :
1. If the class-intervals are in inclusive form, they must be converted into exclusive
form before finding the median.
2. If the observation are increased or decreased by a fixed amount, then median is
also increased or decreased by the same amount.
3. When the class interval are unequal it is not required to make them equal to
compute median.
4. In case of open-end classes, the class-interval is not required to be closed as to
compute median we require only the median class.

4.9.2 MERITS, DEMERITS AND USES OF MEDIAN

Merits of Median are as follows:
(i) It is rigidly defined.
(ii) It is easy to understand and calculate.
(iii) It is not affected by extreme observations.
(iv) It can be computed for a distribution with open-end classes.
(v) It can be located by simple inspection and can be determined graphically.
212 Commercial Mathematics and Statistics

Demerits of Medians :
(i) It is not based on all the observations.
(ii) It is not suitable for further mathematical treatments.
(iii) It is affected more than mean by fluctuations of sampling.
(iv) To compute median, it is necessary to arrange the data in ascending or descending
order of magnitude.
Uses of Medians :
(i) It is the only average to be used while dealing with qualitative characteristics like
honesty, beauty, etc.
(ii) It is used when extreme observations are present in the data.
(iii) It is used to determine the average of a distribution with open end classes.
(iv) In case of income distribution the use of median gives the best result.

Example 25: From the data given below calculate the median.
Marks : (less then) 10 20 30 40 50
No. of Students : 5 9 15 18 20
Solution : First we change the given cumulative distribution to single frequency
distribution as follows :
C.I. f c.f.
0–10 5 5
10–20 9–5 = 4 9
20–30 15–9 = 6 15
30–40 18–15 = 3 18
40–50 20–18 = 2 20
Total ∑f=N=20

Median = value of NFH IK item

th

= value of FH IK = 10 item
20 th
2
The c.f. next higher to 10 is 15
∴ Median lies in class 20–30
 Statistical Averages 213
N − c.f.
∴ Median = L + 2
×i
f
Here L = 20, N = 10, c.f. = 9, f = 6, and i = 10
2
∴ Median = 20 + 10 − 9 × 10
6
= 20+1.67 = 21.67
Median Mark = 21.67.

Example 26 : Median of the following distribution in 24.5 find f2.

Class interval : 10–14 15–19 20–24 25–29 30–34 35–39
Frequency : 5 f2 4 8 4 3
Solution : The data is in inclusive form, so first we convert it into exclusive form. Now
let us prepare the following table.
C.I. f c.f.
9.5–14.5 5 5
14.5–19.5 f2 5+f2
19.5–24.5 4 9+f2
24.5–29.5 8 17+f2
29.5–34.5 4 21+f2
34.5–39.5 3 24+f2
∑f=N=24+f2
Since the median is 24.5, it lies in the class 24.5–29.5
− c.f.N
∴ Median = L + 2
×i
f
24 + f2
Here L = 24.5, N = , c.f. = 9+f2, i = 5, f= 8 and median = 24.5
2 2
24 + f2
− 9 + f2
∴24.5 = 24.5+ 2 ×5
8
24 + f2 − 18 + 2f2
⇒0 = ×5
2
⇒ 0 = 5(6–f2)
⇒ 5f2 = 30
∴ f2 = 6. Ans.
214 Commercial Mathematics and Statistics

4.9.3 GRAPHICAL METHOD OF DETERMINING MEDIAN :

There are two methods of determing median graphically.
Method I : Let us draw two cumulative frequency curves or ogives, one by ‘’less than’’
method and the order by ‘’more than’’ method.
From the point where both these curves intersect each other we draw a
perpendicular on the x-axis. The point where this perpendicular touches the
x-axis gives the value of the median.
Method II :Let us draw one ogive or cumulative frequency curve by less than method.
Now let us determine the median value by the formula, Median = value of
FH N IK th
observations. Let us locate this value N on the y-axis and from it let
2 2
us draw a perpendicular on the ogive. From the point where it meets the
ogive we draw another perpendicular on the x-axis, and the point where it
meets the x-axis is the median.
This will be clear from the example 24 done earlier.
Let us prepare the following cumulative frequency distribution table :

C.I. F c.f.(less than) c.f.(more than)

10–20 10 10 108
20–30 18 28 98
30–40 30 58 80
40–50 27 85 50
50–60 15 100 23
60–70 8 108 8
Total ∑f=N=108

Method I Y
110
100
80

60
40

20

0 10 20 30 40 50 60 70 X

C.I
 Statistical Averages 215
It is clear from the above graph that median value is 39 (approx), which can be verified
with the solved example.

Method II : Median = value of 108 FH IK th

item
2
= value of 54th item
New taking 54 on the y-axis we get.
Y
110

100
80

60
40
20

0 10 20 30 40 50 60 70 X
C.I

Here also it is clear from the above graph that the median value is 39 (approx).

4.10 PARTITION VALUES

Partition values divides a series into number of equal parts. Median is a partition value
which divides a distribution into two equal parts. Quartiles, decides and percentites are also
partition values which can be determined in the same way as median. The only difference is
in their location.
Quartiles divide a series into four equal parts. There are three quartiles denoted by Q1, Q2
and Q3.
Q1 known as the first quartile or lower quartile divides a series in such a way that 25% of
observations have a value less than Q1 and 75% have a value more than Q1.
Q2 known as the second quartile has the same number of observations above and below
it. So it is same as the median value.
Q3 known as the third quartile or Upper quartile divides the series in such a way that 75%
of observations have a value less than Q3 and 25% have a value more than Q3.
Deciles, divide a series into ten equal parts. There are nine deciles denoted by D 1, D2,
D3,........,D9. Between any two consecutive decides there are 10% of the total observations.
For eg, D1 or first decile has 90% of the observations above it and 10% of observations
below it. D5 or fifth decile coincides with the median as it has 50% of the observations
below and above it.
216 Commercial Mathematics and Statistics

Percentiles divide a series into hundred equal parts. There are ninty-nine percentiles denoted
by P1,P2,P3,......,P99. Between any two consecutive percentile there are 1% of the total
observations. For eg, P30 or the 30th percentile has 30% observations below P 30 and 70% of
the observations above it. P50 coincides with the median as it has 50% of observations below
and above it.

4.10.1 CALCULATION OF QUARTILES, DECILES AND PERCENTILES :

A. For simple data or series of individual observations
First the data are to be arranged in ascending order of magnitude, then

Q k = value of b g
k n +1
th
observation, where k = 1, 2, 3.
4

D k = value of b g
k n +1
th
observation, where k = 1, 2,.....,9.
10

P k = value of b g
k n +1
th
observations, where k = 1, 2,.........,99.
100
Example 27 : Find Q1, Q2, Q3, D6 and P75 from the following data of marks obtained out of
50 in English by 10 students.
Solution : First let us arrange the data is ascending order of magnitude
Marks :11, 12, 14, 18, 22, 26, 30, 32, 35, 41
Here we have n = 10.

FH IK observation.
Q 1 = value of n + 1
th

= value of FH 10 + 1IK or 2.75 observation.

th
th
4
∴ Q1 = 2nd observation +0.75 (3rd observation–2nd observation)
= 12+0.75 (14–12)
= 12+1.50
= 13.50 marks.

Q 2 = value of b g
2 n +1
th
observation.
4

= value of b
2 10 + 1 g th
or 5.5th observation.
4
 Statistical Averages 217
∴ Q2 = 5th observation + 0.5 (6th observation–5th observation)
= 22+0.5 (26–22)
= 22+2.0
= 24 marks.

Q 3 = value of b g
3 n +1
th
observation.
4

= value of b
3 10 + 1 g th
or 8.25th observation
4
∴ Q3 = 8th observation + 0.25 (9th observation – 8th observation)
= 32+0.25 (35–32)
= 32+0.75
= 32.75 marks.

D 6 = value of b g
6 n +1
th
observations.
10

= value of b
6 10 + 1 g th
or 6.6th observation
10
D 6 = 6th observation + 0.6 (7th observation – 6th observation)
= 26+0.6 (30–26)
= 26+2.4
= 28.4 marks.

P 75 = value of b g
75 n + 1
th
observation.
100
= value of 8.25th observation
∴ P75 = 8th observation + 0.25 (9th observation – 8th observation)
= 32+0.25 (35–32)
= 32+0.75
= 32.75 marks.
B. For simple frequency distribution or ungrouped frequency distribution
First the data are arranged in ascending order of magnitude. Then cumulative frequency
(c.f.) less than type are found out. Next we have to find out the c.f. which is next higher or
equal to :
218 Commercial Mathematics and Statistics

(i)
b
k N +1 g
for Quartiles, where
4
N = ∑f and k = 1, 2, 3.

(ii)
b
k N +1 g
for Decile, where
10
N = ∑f and k = 1, 2,.......,9.

(iii)
b
k N +1 g
for Percentile where
100
N = ∑f and k = 1, 2,......,99.

Example 28 : Find Q1, Q3, D7 and P40 from the following data.
Weight (in kg): 40 42 45 50 51 54 56 59 60
No. of Persons: 2 6 8 10 6 14 12 8 14
Solution : Let us prepare the following cumulative frequency distribution table

Weight f c.f.
(in kg)

40 2 2
42 6 8
45 8 16
50 10 26
51 6 32
54 14 46
56 12 58
59 8 66
60 14 80

∑f = N = 80

FH IK
Q 1 = value of N + 1
th
observation
4

= value of FH 80 + 1IK
th
or 20.25th observation
4
 Statistical Averages 219
The c.f. next higher to 20.25 is 26 which corresponds to the value 50.
∴ Q1 = 50

Q 3 = value of b
3 N +1 g th
observation
4

FH
= value of 3 × 81 IK th
or 60.75th observation
4
The c.f. next higher to 60.75 is 66 which corresponds to the value 59
∴ Q3 = 59

D 7 = value of b
7 N +1 g th
observation
10

FH
= value of 7 × 81 IK th
or 56.7th observation
10
The c.f. next higher to 56.7 is 58 which corresponds to the value 56.
∴ D7 = 56

P 40 = value of
40 N + 1 b g th
observation
100

FH
= value of 40 × 81 IK th
or 32.4th observation
100
The c.f. next higher to 32.4 is 46 which corresponds to the value 54.
∴ P40 = 54
C. For continuous or grouped frequency distributions :

For continuous frequency distribution :

(i) The formula for calculating quartile is
FH IK
k N − c. f .
4
QK = L+ × i, (k = 1, 2, 3)
f
Where, L = lower limit of the quartile class
N = ∑f = total frequency.
c.f. = cumulative frequency preceeding the quartile class.
f = frequency of the quartile class.
i = width of the quartile class.
220 Commercial Mathematics and Statistics

(ii) Decile is determined by the formula

DK = L 10
e j
k N − c. f .
i, (k = 1, 2,.........,9)
f
Where, L = lower limit of the decile class
N = ∑f = total frequency.
c.f. = cumulative frequency preceeding the decile class.
f = frequency of the decile class.
i = width of the decile class.
(iii) Percentile determined by the formula

p k= L +
e j
k N − cf
100
×i
f
(k=1, 2, ... 99)
Where, L = lower limit of percentile claks
N = ∑f = total frequency
cf = cumulatime frequency of the class precuding the percatile class
f = frequency of the percentile class
i = Width of the percentile class.

Example 29 : Find Q1, Q3, D8 and P65 from the following frequency distribution
Class Interval : 0–10 10–20 20–30 30–40 40–50 50–60
Frequency : 3 9 15 30 18 5
Solution : Let us prepare the following cumulative frequency distribution table.

C.I. f c.f.

0–10 3 3
10–20 9 12
20–30 15 27
30–40 30 57
40–50 18 75
50–60 5 80

∑f = N = 80
 Statistical Averages 221

FH IK observation
Q 1 = value of N
th

= value of FH 80 IK or 20 observation
th
th
4
The c.f. next higher to 20 is 27, so Q1 lies in the class 20–30
N
4− c. f .
∴ Q1 = L + ×i
f

= 20 + 20 − 12 × 10
15
= 20+5.33
= 25.33
FH IK observation
Q 3 = value of 3N
th

= value of FH 3 × 80 IK or 60 observation
th
th
4
The c.f. next higher to 60 is 75, so Q3 lies in the class 40–50.
3N − c. f .
∴ Q3 = L + 4 ×i
f

= 40 + 60 − 57 × 10
18
= 40+1.67
= 41.67
FH IK observation
D 8 = value of 8N
th

10

= value of FH 8 × 80 IK or 64 observation
th
th
10
The c.f. next higher to 64 is 75, so D8 lies in the class 40–50
8N − c. f .
∴ D8 = L + 10 ×i
f

= 40 + 64 − 57 × 10
18
= 40+4.11
= 44.11
222 Commercial Mathematics and Statistics

P 65 = value of 65NFH IK observation

th

100

= value of FH 65 × 80 IK or 60 observation
th
th
100
The c.f. next higher to 52 is 57, so P65 lies in the class 30–40.
65N − c. f .
∴ P65 = L + 100 ×i
f

= 30 + 52 − 27 × 10
30
= 30+8.33
= 38.33

4.10.2 MERITS, DEMERITS AND USES OF QUARTILES, DECILES AND

PERCENTILES
Merits :
(i) They can be computed for distributions with open-end class interval.
(ii) They are not affected by extreme values.
(iii) They can be obtained graphically.
Demerits :
(i) While computing the data have to be arranged in ascending order.
(ii) They do not depend on all the observations.
Uses :
(i) In data relating to business and economic statistics, quartiles are useful in personal
work and productivity ratings.
(ii) Percentiles are useful in scaling and ranking of test scores in psychological and
educational statistics.
Note 1 : If quartile, decile or percentile lies in the first class interval then the c.f. of the
preceeding class-interval shall be taken as zero.
Note 2 : The relations among quartiles, deciles and percentiles are as follows.
Q1 = P25, Q2 = D5 = P50, Q3 = P75
D1 = P10, D2 = 720,.............,D9 = P90
 Statistical Averages 223

4.10.3 GRAPHICAL METHOD OF DETERMINING QUARTILES, DECILES

AND PERCENTILES :
Quartiles, Deciles and Percentiles can be determind graphically with the help of cumulative
frequency curve or ogive. The procedure is same as that of median. Draw are ogive by “less
than” method. Then determine the quartiles, deciles and percentiles by the formula–
KN , (k = 1, 2, 3), KN , (k = 1, 2,......9)
4 10

and KN , (k = 1, 2,.........99) respectively..

100
Now, locate these values on the y-axis and from them draw perpendiculars on the ogive.
From the points where they meet the ogive draw perpendiculars on the x-axis and the points
where they meet x-axis are the required quartiles, deciles and percentiles respectively.
Example 30 : Find Q1 and Q3 graphically from the data given in example.
Solution : After finding c.f. and preparing the table as in example we get
FH IK observation
Q 1 = value of N
th

= value of FH 80 IK or 20 observation and

th
th
4

FH IK observation
Q 3 = value of 3N
th

= value of FH 3 × 80 IK or 60 observation
th
th
4
Now draw an ogive by the “less
Y
than” method. Taking 20 and 60 on
80
the y- axis draw perpendiculars
ogine. From the points where they 70
3n
meet the ogive draw perpendiculars 60
4
on the x-axis. The points where they 50
meet the x-axis are the Q1 & Q3
C.F

40
respectively. 30
N 20
It is clear from the graph that the 4
10
value of Q1 is 25.33 (approx) and
0 70 X
10 20 30 40 50 60
the value of Q3 is 41.67 (approx). Q1 Q2
C.I
224 Commercial Mathematics and Statistics

EXERCISE (4E)

1. Define median and discuss its relative merits and demerits.

2. Describe the similarities and differences among median, quartiles, deciles and percentiles.
3. Find the median from the following data
(i) 70, 60, 75, 90, 65, 80, 42, 65, 72 [Ans: 70]
(ii) 6, 10, 4, 3, 9, 11, 22, 18 [Ans: 9.5]
4. Find the median from the following frequency distribution.
Marks : 20 9 25 50 40 80
No. of Students : 6 4 16 7 8 2
[Ans : 25]
5. The following table gives the marks obtained by 100 students. Find the median mark.
Marks : 0–10 10–20 20–30 30–40 40–50
No. of Students : 14 23 27 21 15
[Ans : 24.81]
6. Find the missing frequencies from the following frequency distribution. The median of
the distribution is 30.
C.I. : 0–10 10–20 20–30 30–40 40–50 50–60
f: 10 ? 25 30 ? 10
[Ans : 15 & 10]
7. Calculate the mean and median from the following data.
Class Interval : 1–10 11–20 21–30 31–40 41–50 51–60 61–70
Frequency : 8 15 25 20 16 10 6
[Ans: mean = 33, median = 31.5]
8. From the following scores of 12 students in an examination find Q1, Q3, D7 and P33.
15, 9, 18, 20, 21, 26, 14, 13, 27, 22, 16, 8
[Ans: Q1=14.25, Q3=25, D7=22.4, P33=15.29]
9. Find Q1, Q3, D4 and P60 from the following data.
x: 5 14 16 22 27 55 70 85 92 100
f: 8 6 14 12 10 5 16 7 4 2
[Ans: Q1 = 16, Q3 = 70, D4 = 22, P60 = 55]
 Statistical Averages 225
10. Determine the value of median from the following data.
Income (Rs.) : Below 1000 1000–2000 2000–3000 3000–4000 above 4000
No. of persons : 4 6 10 7 3
[Ans: Rs.2500]
11. Calculate Median, Q1, Q3, D8 and P30 from the following distribution.
Wages : 150–160 160–170 170–180 180–190 190–200
(in Rs.)
No. of workers : 62 65 71 83 90
Wages (Rs.) : 200–210 210–220 220–230 230–240 240–250
No. of workers : 95 110 80 68 61
[Ans: Median = 202.26, Q1 = 179.75, Q3 = 221.59, D8 = 26.5, P30 = 184.51]
12. Draw an ogine and locate median, first quartile and third quartile from the following
data.
Marks : 0–10 10–20 20–30 30–40 40–50 50–60
No. of Students : 3 9 15 30 18 5
[Ans: Median = 34.33, Q1 = 25.33, Q3 = 41.67]

4.11 MODE
Mode is defined as that value in a series which occurs maximum number of times. In a
frequency distribution mode is that variate which has the maximum frequency. For eg, in a
series 4, 5, 6 3, 2, 1, 6, 7, 8, 4, 6, 2, we notice that 6 occurs maximum number of times,
therefore 6 is the mode.
A series of observations may have one or more modes. The series with one mode is
called unimodal. In a series, the mode is ill-defined if it contains more than one mode. A
series having two modes is called bimodal and if it has three or more modes is called trimodal
or multimodal.

4.11.1 CALCULATION OF MODE

A. For individual series
In case of individual series, the value which is repeated maximum number of times is the
mode of the series.
B. For simple frequency distributions (Ungrouped data)
In case of frequency distribution, mode is the value of the variable corresponding to the
maximum frequency.
C.Math(2)–15
226 Commercial Mathematics and Statistics

Example 31 : Find out the model family size from the following data
Family size (X) : 2 3 4 5 6 7
No. of families (F) : 70 82 93 110 88 74
Solution : Let us prepare the table showing the frequency as follows :
Family size No. of families
(x) (f)
2 70
3 82
4 93
5 110
6 88
7 74

In the above table we notice that the size 5 occurs maximum number of times. It has the
highest frequency size 110.
∴ 5 is the mode of the distribution.

C. Calculation of mode of grouping method :

The value of mode is determind by the method of grouping if :
(i) The maximum frequency is repeated.
(ii) The maximum frequency occurs in the very beginning or at the end ofthe
distribution.
(iii) There are irregularities in the distribution.

To calculate mode by the method of grouping first we prepare the grouping

table as follows :
The frequencies in column (1) are the original frequencies. Column (2) is obtained by
combining the frequencies two by two. If we leave the first frequency and combine the
remaining frequencies two by two we get column (3). We proceed to combine the original
frequencies or frequencies in column (1) thre by three to get column (4). The combination of
frequencies three by three after leaving the first frequency of column of (1) we get the
column (5). After leaving the first two frequencies of column (1) and combining the
frequencies three by three we get column (6). The maximum frequency is each column is
encireled.
 Statistical Averages 227
After preparing the grouping table, we prepare the analysis table. While preparing this
table we put the column number in first column or column (i), then the maximum frequency
in the second column or column (ii). The value or combination of values of x having maximum
frequency indicated in column (ii) in the third column or column (iii).
The procedure will be clear from the following example.

Example 32 : Determine the mode of the following data.

Marks : 20 21 22 23 24 25 26 27 28 29
No. of Students : 6 9 4 2 10 8 7 5 1 1
Solution : Here we observe that the distribution is not regular. Here we cannot say just
by inspection that maximum frequency is 10 and mode is 24. Here we shall
calculate mode by the method of grouping.
Grouping Table :

Size Frequency
(x) 1 2 3 4 5 6
20 6
15
21 9 15
13
22 4 15
6
23 2 16
12
24 10 20
18
25 8 25
15
26 70 20
12
27 5 13
6
28 1 9
4
29 3
228 Commercial Mathematics and Statistics

Analysis table :
Col (i) Col (ii) Col (iii)
Coln number Max Frequency Value or combination
of values of x giving
max freq. in Col (ii)
1 10 24
2 18 24, 25
3 15 25, 26
4 20 23, 24, 25
5 25 24, 25, 26
6 20 25, 26, 27
Here in Col (iii), we find that 25 is repeated maximum number of times and hence the
value of mode is 25.
D. Calculation of mode for a continuous or grouped frequency distribution.
In a continuous or grouped frequency distribution. To find mode we have to determine
the modal calss ie, the class corresponding to the maximum frequency in a distribution. The
modal class can be determined either by inspection or with the help of grouping table. After
finding the modal class, we calculate mode by applying the following formula.

1f −f
0
Mode = L + 2f − f − f × i
1 0 2

Where, L = lower limit of the modal class.

f1 = frequency of the modal class.
f0 = frequency of the class preceeding the modal class.
f2 = frequency of the class succeeding the modal class.
i = width of the modal class.

Example 33 :
Calculate mode for the following frequency distribution.
Income per day : 0–10 10–20 20–30 30–40 40–50
(in Rs.)
No. of Persons : 10 14 19 17 13
Solution : For calculation let us prepare the following table.
 Statistical Averages 229

Income (in Rs.) No. of Persons

(C.I.) (f)
0–10 10
10–20 14 → f0
20–30 19 → f1
30–40 17 → f2
40–50 13

From the table it is clear that the maximum frequency is 19 and it lies in the class 20–30.
Therefore the modal class is 20–30.

1 f −f
0
Mode = L + 2f − f − f × i
1 0 2

Here L = 20, f0 = 14, f1 = 19, f2 = 17 & i = 10

19 − 14
∴ Mode = 20 + 2 × 19 − 14 − 17 × 10

= 20 + 5 × 10
7
= 20+7.143
= Rs. 27.14

Remarks :
1. Mode requires the distribution to be continuous with exclusive class interval.
2. In case of cumulative frequency distribution, it must be converted to simple
frequency distribution before finding mode.
3. In case of open-end class-interval, it is required to close the ends and complete
the class intervals.

4.11.2 MERITS, DEMERITS AND USES OF MODE

Merits
1. It is easy to understand and calculate.
2. It is not at all affected by extreme observations.
3. Mode can be estimated graphically from a histogram.
4. In some cases, it can be located by inspection.
230 Commercial Mathematics and Statistics

Demerits
1. It is not based on all the observations of the series.
2. Mode is not suitable for further mathematical treatment.
3. Mode is ill-defined if the maximum frequency is repeated.
4. As compared with mean, mode is affected to a greater extent by the fluctuations of
sampling.
Uses
Mode is of great use to large scale manufactures of readymade garments, shoes
and so on. In all such cases, it is important to know the size that fits most persons
rather than the mean size.

4.11.3 GRAPHICAL METHOD OF DETERMINING MODE

In case of frequency distribution, mode can be located graphically as follows:
 A histogram is drawn from the given data, the tallest rectangle will represent the
modal class.
 Two diagonal lines are drawn from the top right corner and left corner of the
tallest rectangle to the top right and left corner of the adjacent rectangles.
 A perpendicular line is drawn from the point of intersection of the two diagonal
lines on the x-axis. The point where the perpendicular meets the x-axis is the
value of mode.
Example 34 : Estimate mode graphically from the data given in example 33.
Solution : Let us construct a histogram from the given data.
Y
25

20

15

10

X
0 10 20 ↑ 30 40 50
Made
C.I

From the graph the mode is found to be 27 (approx).

We have observed that the actual calculation of mode was 27.14. Thus we see that the
estimation of mode by graphic method and by calculation is more or less same.
 Statistical Averages 231

4.11.4 RELATIONSHIP BETWEEN MEAN, MEDIAN AND MODE

In a symmetrical distribution mean, median and mode are equal. In a moderality skewed
or asymmetrieal distribution, the relationship between Mean, Median and Mode is given by
Karl Pearson as follows :
Mean – Mode = 3 (Mean – Median)
⇒ Mode = 3 Median – 2 Mean
The above relationship is known as Empirical relationship.

Example 35 :
In a moderately skewed distribution the values of median and mean are 72 and 78
respectively, find the value of mode.
Solution : From the empirical relation we have
Mean – Mode = 3 (Mean – Median)
⇒ Mode = 3 Median – 2 Mean
= 3×72 – 2×78
= 216–156
= 60 Ans.

Example 36 : Compute Mean, Median and Mode from the following frequency distributions.
Wages (in Rs.) : 0–100 100–200 200–300 300–400 400–500
No. of Persons : 3 7 10 6 2
Solution : Let us prepare the following table for calculation of mean, median and mode.

Wages (in Rs.) Mid value f d/ = X − A fd/ c.f.

i
C.I. (x)

0–100 50 3 –2 –6 3
100–200 150 7 –1 –7 10
200–300 250 10 0 0 20
300–400 350 6 1 6 26
400–500 450 2 2 4 28

Total ∑f = N ∑fd/ = –3
= 28
232 Commercial Mathematics and Statistics

Let the assumed mean A = 250

Mean = x = A + ∑
fd /
×i
N

= 250 +
b−3g × 100
28
= 250–10.71
= 239.29
∴Mean wage = Rs. 239.29
N 28
Here = = 14
2 2
The c.f. just greater than 14 is 20, therefore the corresponding class 200–300 is the median
class
N − c.f.
Median = L + 2
×i
f

Here L = 200, N = 14, c.f. = 10, f = 10 & i = 100

2

Median = 200 + 14 − 10 × 100

10
= 200+40 = 240
∴ Median = Rs. 240
By inspection, we observe that modal class is 200–300

1 0 f −f
Mode = L + 2f − f − f × i
1 0 2

Here L = 200, f1 = 10, f0 = 7, f2 = 6 & i = 100

∴ Mode = 200 + 10 − 7 × 100

20 − 7 − 6

= 200 + 37 × 100
= 200+42.86
= 242.86
∴ Mode = Rs. 242.86
 Statistical Averages 233

EXERCISE (4F)

1. Define mode. Write down the merits and demerits of mode.

2. What do understand by unimodal and bi-modal distributions.
3. Find the mode of 8, 7, 6, 8, 8, 5, 6.
[Ans: 8]
4. Find the mode of variable x.
x: 1 2 3 4 5 6 7 8 9
f: 3 4 18 25 40 30 22 10 6
[Ans: 5]
5. Write down the empirical relation between mean, median and mode.
6. Find mode for the following frequency distribution.
Size of shoes : 1 2 3 4 5 6 7 8 9 10 11 12
No. of Pairs : 3 8 15 23 35 40 32 28 20 45 14 6
[Hint: Prepare grouping & analysis table] [Ans: 6]
7. Compute mode for the following frequency distribution.
Production per day : 20–22 22–24 24–26 26–28 28–30
(in tons)
No. of days : 7 13 22 10 8
[Ans: 24.86 tons]
8. Find the mode of family expenditure given below.
Family expenditure : 40–59 60–79 80–99 100–119 120–139
(in Rs.)
No. of family : 25 130 250 70 25
[Ans: Rs. 87.50]
9. Find the mode from the following data.
Marks : less than 5, 5–10 10–15 15–20 more than or equal to 20
No. of Students : 4 15 8 5 2
[Ans: 8.06 marks]
234 Commercial Mathematics and Statistics

10. Calculate the mode for the following data

Marks No. of students
less than 10 5
” ” 20 9
” ” 30 15
” ” 40 18
” ” 50 20

[Ans: 24 marks]

11. In a moderately asymmetrical distribution Mode and Mean are 32.1 and 35.4 respectively.
Find the median.
[Ans: 34.3]
12. Calculate Mean and Median of the following frequency distribution given below. Hence
calculate Mode using the empirical relation between the three.
Marks : 0–10 10–20 20–30 30–40 40–50 50–60
No. of students : 4 6 20 10 7 3
[Ans: Mean = 28.8, Median = 27.5 & Mode = 24.9]
13. Represent the following data by a histogram and find out the modal uses.
Class Interval : 0–5 5–10 10–15 15–20 20–25 25–30 30–35 35–40
Frequency : 4 6 10 10 25 22 18 5
[Ans: 24 (approx)]
14. State whether the statements are true or false.
(i) AM is affected by extreme observations.
(ii) GM is used in the construction of Index numbers.
(iii) HM can be computed when there are negative observations.
(iv) A distribution may have more than one mode.
(v) Median is a positional measure of average.
(vi) AM of a set of values lie between GM and HM.
[Ans: (i) True, (ii) True, (iii) False,
(iv) True, (v) True, (vi) False]
 Statistical Averages 235
15. Fill in the blanks :
(i) ________________ is not affected by extreme observations.
(ii) ________________ is based on all the observations.
(iii) Average suited for qualitative phenomena is ________________.
(iv) A distribution with two modes is called ________________.
(v) ________________ = AM × HM
(vi) If a constant k is added to each of the observation, then AM will __________ by k.
[Ans: (i) Median, (ii) Mean, (iii) Median,
(iv) Bimodal, (v) G.M., (vi) Increased]
 (236)

UNIT-5
MEASURES OF DISPERSION
(VARIATION)
OBJECTIVES :
This chapter will help you to understand–
 The meaning, purpose and characteristics of dispersion.
 The different measures of dispersion, their merits, demerits and uses.
 The calculation of dispersion for individual series, ungrouped and grouped
frequency distributions.
 The meaning and calculation of coefficient of variation.

5.1 INTRODUCTION
Statistical averages fail to reveal the degree or extent of variability of individual items
of a distribution from the central value. For instance, let us consider the following three
series :

Series Observations Total Mean

I 10, 10, 10, 10, 10 50 10
II 8, 9, 10, 11, 12 50 10
III 2, 6, 10, 14, 18 50 10

All the above there series have the same number of observations (n = 5) and the same
mean ( x = 10). Thus if we are given that the mean of a series of 5 observations is 10, we
will not be able to say whether it is the average of the I or II or III series. Hence statistical
averages or measures of central tendency are inadequate in giving us a complete idea of the
distribution. So they must be supported and supplemented by some other measures. One
such measure is that of dispersion.
The literal meaning of dispersion is ‘scatteredness’. We study dispersion to have an idea
of the homogeneity or heterogeneity of a distribution. Dispersion measures the degree to
which data tend to spread around an average.
According to L.R. Cannor, “Dispersion is a measure of the extent to which the individual
items vary.”
 Measures of Dispersion (Variation) 237

5.2 CHARACTERISTICS OR REQUIREMENTS OF A GOOD MEASURE OF

DISPERSION :
To be an ideal measure of dispersion, it must possess the following characteristics :
(i) It should be rigidly defined.
(ii) It should be easy to understand and calculate.
(iii) It should be based on all the observations of the series.
(iv) It should be affected as little as possible by fluctuations of sampling.
(v) It should be capable of further algebraic treatment.
(vi) It should not be unduly affected by extreme observations.
[The above characteristics are same as those for an ideal measure of central tendency]

5.3 ABSOLUTE AND RELATIVE MEASURES OF DISPERSION :

Absolute Measures : The measures of dispersion which are expressed in terms of
original units of a distribution are called absolute measures. For example, if we calculate
dispersion of a series, say monthly income earned by the employees of a company, then the
calculated dispersion will also be in the same unit ie, Rs. The absolute measures are not used
for comparing the variability of two or more distributions.
Relative Measures : These are the measures of dispersion which are independent of the
original units of the variables. We use these measures for comparing the variability of two or
more series. Relative measures are generally in the form of pure number, coefficients,
percentages etc.

5.4 DIFFERENT MEASURES OF DISPERSION :

The different absolute measures of dispersion are :
(i) Range.
(ii) Quartile Deviation (Q.D.) or semi Interquartile Range.
(iii) Mean Deviation (M.D.).
(iv) Standard Deviation (S.D.).
(v) Lorenz curve – is a graphic method of studying variability.
Their corresponding relative measures are –
(i) Coefficient of Range.
(ii) Coefficient of Q.D.
(iii) Coefficient of H.D.
(iv) Coefficient of S.D.
238 Commercial Mathematics and Statistics

5.5 RANGE :
Range is defined as the difference between the maximum and minimum values of the
observations of the distribution.
∴ Range = X(max) – X(min)
where X denotes an observation of the distribution.
The relative measure of dispersion corresponding to range is coefficient of range.
Coefficient of range is defined as the ratio of the difference between the two extreme
observations of the distribution to their sum.
∴ Coefficient of range

X max − X min
=
X max + X min

5.5.1 CALCULATION OF RANGE :

A. Calculation of range for individual series :
Range = Xmax – Xmin
Example 1 : Find the range and coefficient of range for the following data given in Kg.
65, 70, 40, 45, 55, 30
Here the maximum observation is 70 kg and the minimum observation is 30 kg.
∴ Range = 70 kg – 30 kg = 40 kg

Coefficient of range = 70 −= 40 0.4

30 =
70 + 30 100
B. Calculation of range for ungrouped frequency distribution :
In case of frequency distributions, the frequencies of the various variate values are
immaterial as the range depends only on the two extreme observations.
Example 2 : Find the range and its coefficient from the following data.
Wages/day : 170 175 180 185 190 200
(in Rs.)
No. of Persons : 4 16 10 6 4 5
Solution : Range = 200–170 = Rs. 30.

Coefficient of range = 200 − 170

= = 20 0.081
200 + 170 370
 Measures of Dispersion (Variation) 239

C. Calculation of range and its coefficient for the following frequency

distribution.
In case of grouped frequency distribution for discrete values or continuous frequency
distribution, range is defined as the difference between the upper limit of the highest class
and lower limit of the smallest class.
Example 3 : Find the range and its coefficient for the following frequency distribution.
Marks : 10–20, 20–30, 30–40, 40–50
No. of Students : 15 20 16 8
Solution : Range = 50–10 = 40 marks.

Coefficient of range = 50 − 10
= 40
= 0.667
50 + 10 60

Note : In case of inclusive class interval it must be converted to exclusive class

interval before finding range to maintain continuity.

5.5.2 MERITS, DEMERITS AND USES OF RANGE :

Merits
1. It is rigidly defined.
2. It is easy to calculate and understand.
Demerits
1. It is not based on all the observations of a series.
2. Range cannot be computed for open end classes.
3. It is very much affected by fluctuations of sampling.
4. It is not capable of further algebraic treatment.
5. It is highly affected by extrems observations.
Uses
1. It is used in industry for statistical quality control.
2. It is used in stock markets to study the fluctuations.
3. It is used by the meteorological department for weather forecasts.
240 Commercial Mathematics and Statistics

EXERCISE (5A)

1. What do you mean by dispersion?

2. Define measures of dispersion.
3. Write down the characteristics of an ideal measure of dispersion.
4. Define absolute and relative measure of dispersion.
5. Define range. Write down the merits, demerits and uses of range.
6. Find range and coefficient of range for the following data : Rs. (20, 21, 22, 25, 30, 45,
50, 60).
[Ans: Rs.40, 0.5]
7. Find the range and coefficient of range from the following data :
Marks : 8 18 22 25 29 37 48
No. of Students : 1 5 10 4 12 6 1
[Ans: 40 marks, 0.71]
8. Find the range and its coefficient for the following data :
Age : 16–20 21–25 26–30 31–35
No. of Persons : 10 15 17 8
[Ans: 20 yrs, 0.39]

5.6 QUARTILE DEVIATION (Q.D.) :

Quartile deviation is defined as the difference between upper quartile and lower quartile
divided by two.
Q 3 − Q1
ie, Q.D. =
2
Quartile deviation is also known as semi-interquartile range. It is an absolute measure of
dispersion. The relative measure ie, coefficient of quartile deviation is given by
Q 3 − Q1
Coefficient of Q.D. = Q 2+ Q
3 1
2
Q 3 − Q1
=
Q 3 + Q1
 Measures of Dispersion (Variation) 241

5.6.1 CALCULATION OF QUARTILE DEVIATION :

(A) For individual series :
In case of individual series we arrange the data in ascending order to find quartile demiation.
Example 4 : Find Q.D. and coefficient of Q.D. of the following observations.
5, 8, 7, 10, 15, 12, 14
Solution : Let us arrange the data in ascending order of magnitude
5, 7, 8, 10, 12, 14, 15
Here n = 7

Q 1= value of an + 1f th
observation
4

FH
= value of 7 + 1 IK th
on 2nd observation
4
∴ Q 1= 7

Q 3= value of b g
3 n +1
th
observation
4

= value of
3 7+1b g th
on 6th observation
4
∴ Q 3= 14
Q 3 − Q1 14 − 7
∴ Q.D. = = = 3.5
2 2
Q 3 − Q1
∴ Coefficient of Q.D. = Q + Q = 14 − 7
3 1 14 + 7

= 7
21
= 0.33
B. Calculation of Q.D. for ungrouped frequency distribution :
To compute Q.D. for ungrouped frequency distribution we have to find the cumulative
frequency ‘less than’ type.
Example 5 : Compute Q.D. and its coefficient for following data :
x: 10 12 15 20 30 35 50 55
y: 4 6 8 12 16 3 5 6

C.Math(2)–16
242 Commercial Mathematics and Statistics

Solution : Let us prepare the following table

x f c.f.
10 4 4
12 6 10
15 8 18
20 12 30
30 16 46
35 3 49
50 5 54
55 6 60
∑f=N=60

FH IK
Q 1= value of N + 1
th
observation
4

= value of FH 60 + 1IK
th
on 15.25th observation
4
The c.f. just greater than 15.25 is 18
∴ Q 1= 15

Q 3= value of b g
3 n +1
th
observation
4

= value of b
3 60 + 1 g th
on 45.75th observation
4
The c.f. just greater than 45.75 is 46
∴ Q 3= 30
Q 3 − Q1
Now Q.D. =
2

∴ Q.D. = 30 − 15 = 7.5
2
Q 3 − Q1
∴ Coefficient of Q.D. = Q + Q
3 1

= 30 − 15 = 15
30 + 15 45
= 0.33
 Measures of Dispersion (Variation) 243

C. Calculation of Q.D. for grouped or continuous frequency distribution

To calculate Q.D. for grouped or continuous frequency distribution we find the cumulative
frequency ‘less than’ type and find the 1st and 3rd quartiles.
Example 6 : Find the Q.D. and its coefficient from the following data.
Wages per hour : 25–35 35–45 45–55 55–65 65–75
(in Rs.)
Labourers : 2 10 25 16 7
Solution : Let us prepare the following table
Wages per hour Labourers c.f.
(in Rs.) x f
25–35 2 2
35–45 10 12
45–55 25 37
55–65 16 53
65–75 7 60
∑f=N=60

Here,Q 1= value of N FH IK th
observation
4

= value of 60 oR 15th observation.

4
The c.f. just greater than 15 is 37, which corresponds to the class 45–55.
∴ Q1 lies in the class 45–55.
3N − c. f .
Q3 = L + 4 ×i
f

Here, L=45, N =15, c.f.=12, f=25 & i=10

4

∴ Q 1= 45 + 15 − 12 × 10
25
= 45+1.2 = 46.2

Q 3= value of 3NFH IK observation

th

= value of FH 3 × 60 IK on 45 observation
th
th
4
244 Commercial Mathematics and Statistics

The c.f. just greater than 45 is 53, which corresponds to the class 55–65
∴ Q3 lies in the class 55–65.
N − c. f .
Q 3= L + 4 ×i
f

Here, L=55, 3N =45, c.f.=37, f=16 & i=10

4

∴ Q 3= 55 + 45 − 37 × 10
16
= 55+5 = 60
Q 3 − Q1 60 − 46.2 13.8
∴ Q.D.= = =
2 2 2
= Rs.6.9
3 1 Q −Q
60 − 46.2
Coefficient of Q.D. = Q + Q = 60 + 46.2
3 1

= 13.8
106.2
= 0.129

5.6.2 MERITS, DEMERITS AND USES OF Q.D.

Merits
1. Q.D. is easy to understand and calculate.
2. Q.D. is based on 50% of the data, while range is based on only two observation.
3. Q.D. can be computed for frequency distribution with open end classes.
4. It is not at all affected by extreme observations.
Demerits
1. It is not based on all the observations of a series. Q.D. ignores 25% of the data at
the both upper and lower end of the distribution.
2. Q.D. is not suitable for further mathematical treatment.
3. Q.D. is affected considerable by fluctuations of sampling.
Uses
1. Q.D. is use when class-intervals are open or when extreme observations are present
in a distribution.
2. It is also used in description statistics.
 Measures of Dispersion (Variation) 245

EXERCISE (5 B)

1. Define Quartile diviation. What are its merits and demerits?

2. Find the Q.D. and its coefficient from the following data :
(i) 7, 10, 8, 6, 12, 15, 14 [Ans: 3.5, 0.33]
(ii) 69, 75, 72, 73, 70, 71, 74, 76, 74, 70 [Ans: 2.5, 0.034]
3. Compute Q.D. from the following data. Also find its coefficient
Height : 58 59 60 61 62 63 64 65 66
(in inches)
No. of Students : 15 20 32 35 33 22 20 10 8
[Ans: 1.5 inches, 0.024]
4. Calculate the Q.D. and its coefficient for wages earned per hour by 86 labourers.
Wages : 30–32 32–34 34–36 36–38 38–40 40–42 42–44
(in Rs.)
Labourers : 12 18 16 14 12 8 6
[Ans: Rs.2.85, 0.079]
5. Calculate an appropriate measure of despirsion for the following data :
Marks : less than 36 35–37 38–40 41–43 above 43
No. of Students : 14 62 99 18 7
[Ans: Rs.1.75]
6. Find out the semi interquartile range for the following distribution :
Wages (in Rs.) No. of workers
less than 10 5
less than 20 8
less than 30 15
less than 40 20
less than 50 30
less than 60 33
less than 70 35
[Ans: Rs. 12.59]
246 Commercial Mathematics and Statistics

7. From the following data calculate the percentage of workers getting wages :
(i) more than 44
(ii) between Rs.22 and Rs.58
(iii) the quartile deviation
Wages (in Rs.) : 0–10 10–20 20–30 30–40 40–50 50–60 60–70 70–80
No. of workers : 20 45 85 160 70 55 35 30
[Ans: (i) 32.4%, (ii) 68.4%, (iii) Rs.11.12]

5.7 MEAN DEVIATION OF AVERAGE DEVIATION (M.D.)

Mean deviation (MD) is the average of the deviations of observations from any measure
of central tendency. The deviations are taken as positive, ignoring the regative sign.
Thus if x1, x2,........,xn are ‘n’ given observations then M.D. about an average ‘A’ is given
by–

M.D. (about an average A) 1 ∑ x − A . Where |x–A| is the modulus value or absolute

n
value of the deviations after ignoring the negative sign.
We can take mean deviation from mean, median or mode. Thus we have

MD (about mean) = 1 ∑ x − x
n

MD (about median) = 1 ∑ x − Median

n

MD (about mode) = 1 ∑ x − Mode

n
The relative measure ie, coefficient of M.D. is given by
MD
Coefficient of MD = Average about which it is calculated

Thus, Coefficient MD, about mean = MD

Mean

Coefficient of MD, about Median = MD

Median

Coefficient of MD, about Mode = MD

Mode
 Measures of Dispersion (Variation) 247
Note :
In practice MD, about median, is preferred than M.D., about mean, since the
sum of deviation calculated from median is usually less than that calculated
from mean. Mode is not considered as it may be ill defined. Therefore M.D. is
calculated either about mean or median.

5.7.1 CALCULATION OF MEAN DEVIATION (M.D.) :

A. Calculation of M.D. for individual series :
We have to find the average about which it is to be calculated. Then we must take the
deviations ignoring the negative signs. Next the total deviations must be divided by the
number of observations.

Thus, M.D. (about an average A) = ∑ x−A where, |x–A| is the absolute value (ignoring
n
the negative sign) of the deviation of the given values of x from the average A.
Example 7 : Calculate MD about mean and median for 25, 28, 32, 45, 60.
Solution : For calculation of M.D. we prepare the following table by arranging the data
in ascending order of magnitude.

x |x– x |=|x–38| |x–Median|=|x–32|

25 13 7
28 10 4
32 6 0
45 7 13
60 22 28
∑x– x =58 ∑x–Median=52

bg
Mean x = 25 + 28 + 32 + 45 + 60
5

= 190
5
= 38

M.D. about mean = ∑ x−x

n

= 38 = 7.6
5
248 Commercial Mathematics and Statistics

To calculate median we arrange the data in ascending order of magnitude ie, 25, 28, 32,
45, 60
FH IK
Median= value of n +1
th
observation
2

= value of FH 5 + 1IK
th
or 3rd observation
2
∴ Median = 32

∴ M.D. about median = ∑ x − Median

n
= 52
5
= 10.4
B. Calculation of M.D. for ungrouped frequency distribution :
In case of ungrouped frequency distribution M.D. about an average A is given by–

M.D. (about an average A) = ∑f x − A

N
where x is the value of the variable and f |x–A| is the absolute value of the deviation of the
given value of x from the average ‘A’ multiplied by the corresponding frequency ‘f’, N=∑f.
Example 8 : Find the mean deviation from (i) mean and (ii) median for the following data
and also find its coefficients.
Marks : 4 6 8 10 12
No. of Students : 1 4 6 4 1
Solution :
(i) For calculation of MD from mean we prepare the following table.

Marks No. of Students fx |x– x | = |x–8| f |x–8|

x f
4 1 4 4 4
6 4 24 2 8
8 6 48 0 0
10 4 40 2 8
12 1 12 4 4
∑f=N=16 ∑fx=128 ∑f |x–8|=24
 Measures of Dispersion (Variation) 249

x
=
∑=
fx 128
= 8
N 16

M.D. (about mean) = ∑f x − x

N

= 24
16
= 1.5 marks
Coefficient of MD (about mean)
= MD
Mean

= 1.5
8
= 0.19
(ii) For calculation of MD from median we prepare the following table.
Marks No. of Students c.f. |x–Median| = |x–8| f |x–Median|
x f

4 1 1 4 4
6 4 5 2 8
8 6 11 0 0
10 4 15 2 8
12 1 16 4 4
∑f=N=16 ∑f |x–Median|=24

FH IK
Median= value of N + 1
th
observation
2

= value of FH 16 + 1IK
th
or 8.5th observation
2
The c.f. just greater than 8.5 is 11 which corresponds to the value 8
∴ Median = 8

M.D. (about median)= ∑ f x − Median

N

= 24
16
= 1.5 marks
250 Commercial Mathematics and Statistics

Coefficient of MD (about median)

MD
= Median

= 1.5
8
= 0.19

C. Calculation of M.D. for grouped or continuous frequency distribution :

For grouped or continuous frequency distribution MD about an average ‘A’ is
given by :

M.D. (about an average A) = ∑f x − A

N
where x is the mid-value of the class interval and f |x–A| is the absolute value of the
deviation of the given value of x from the average ‘A’ multiplied by the corresponding
frequency ‘f’ and N=∑f.

Example 9 : Calculate the MD from (i) Mean and (ii) Median for the following data and
also find its coefficients.
Marks : 0–10 10–20 20–30 30–40 40–50
No. of Students : 4 6 8 5 2
Solution : (i) For computation of MD from mean we prepare the following table.

Marks Mid-value f d/ = x − A fd/ |x– x | f |x– x |

i
C.I. x
0–10 5 4 –2 –8 18 72
10–20 15 6 –1 –6 8 48
20–30 25 8 0 0 2 16
30–40 35 5 1 5 12 60
40–50 45 2 2 4 22 44

∑f=N=25 ∑fd/ = –5 ∑f |x– x | = 240

Let the assumed mean be 25

 Measures of Dispersion (Variation) 251

Mean x = A + ∑
fd /
bg N
×i

= 25 +
b−5g × 10
25
= 25–2
= 23

∴ M.D. (about mean) = 1 ∑ f x − x

N

= 240
25
= 9.6 marks.
Cofficient of MD (about mean)

= MD
Mean

= 9.6
23
= 0.42

(ii) For computation of MD from median, we prepare the following table.

Marks Mid-value f c.f. |x–Median| f|x–23.13|
C.I. x =|x–23.13|

0–10 5 4 4 18.13 72.52

10–20 15 6 10 8.13 48.78
20–30 25 8 18 1.87 14.96
30–40 35 5 23 11.87 59.35
40–50 45 2 25 21.87 43.74

∑f=N=25 ∑f |x–23.13|
= 239.35

Median= value of NFH IK th

observation
2

= value of FH 25 IK
th
or 12.5th observation
2
252 Commercial Mathematics and Statistics

The c.f. just greater than 12.5 is 18 which corresponds to the class interval 20–30.
∴ Median lies in the class 20–30
N − c. f .
Median = L + 2 ×i
f

Here, L=20, N =12.5, c.f.=10, f=8 & i=10

2

∴ Median = 20 + 12.5 − 10 × 10
8
= 20+3.13
= 23.13

∴ M.D. (about median) = ∑ f x − Median

N

= 239.35
25
= 9.57 marks
Coefficient of MD (about median)
MD
= Median

= 9.57
23.13
= 0.41

5.7.2 MERITS, DEMERITS AND USES OF M.D.

Merits
1. It is rigidly defined.
2. It is easy to understand and calculate.
3. It provides a better measure for comparison.
Demerits.
1. It cannot be calculated for open-end class intervals.
2. It ignores the signs of the deviations.
3. It is not capable of further algebraic treatment.
Uses
M.D. and its coefficients are used in studying economic problems such as
distribution of income and wealth.
 Measures of Dispersion (Variation) 253

EXERCISE (5 C)

1. What do you mean by M.D. Write down its merits and demerits.
2. Discuss the relative merits of M.D. over range and Q.D. as a measure of dispersion.
3. Calcute the M.D. from mean and median for the following data.
(i) 90, 110, 120, 115, 100 [Ans: 9.6, 9]
(ii) 100, 150, 200, 250, 360, 490, 500, 600, 671 [Ans: 174.44, 173.44]
4. Calculate MD from (i) mean and (ii) median for the following data and also find its
coefficient:
x : 4 6 8 10 12 14 16
f: 2 1 3 6 4 3 1
[Ans: 2.44, 2.4, 0.239, 0.24]
5. Calculate MD about mean for the following data and also find its coefficient
Weight (lb) : 95–105 105–115 115–125 125–135
No. of Persons : 20 26 38 16
[Ans: 8.6 lbs, 0.075]
6. Calculate MD from median for the following distribution of the scores of 50 students :
Scores : 140–150 150–160 160–170 170–180 180–190 190–200
No. of Students : 4 6 10 10 9 3
[Ans: 10.24 scores]
7. Find the MD from Median.
Marks No. of Students
less than 80 100
less than 70 90
less than 60 80
less than 50 60
less than 40 32
less than 30 20
less than 20 13
less than 10 5
[Ans: 14.28]
254 Commercial Mathematics and Statistics

8. Calculate MD from median for the following distributions :

Wages (in Rs.) : 125 175 225 275 325
Mid-values : 3 8 21 6 2
[Ans: Rs.31.61]

5.8 STANDARD DEVIATION (S.D.) :

Standard deviation is defined as the positive square root of the arithmetic mean (AM) of
the squares of the deviations of the given observations from their AM. It is denoted by the
greek alphabet σ (sigma)
If x1, x2,..........,xn is a set of ‘n’ observations then its S.D. is given by :

=σ 1
n∑ i
b
x −x g 2

Where x = ∑ x i is the AM of the given values.

n

Alternatively, σ = 1
n∑ i
x −x b g 2

= 1
n∑ i e
x 2 − 2x i x + x 2 j
∑ x2i − 2∑ xi x + 1
n∑
= x2
n n

= ∑ x2i − 2x. x + x 2
n

= ∑ x2i − x 2
n

∑ x2i − F ∑ xi I
2

GH JK LM x = 1 ∑ x OP
∴σ = n n N n Q i

The square of S.D. is called variance

∴ Variance = σ2
 Measures of Dispersion (Variation) 255
Example 10 : Find the S.D. of 1, 2, 3, 4

∑ x 2 − FG ∑ x IJ
2

Solution : σ= n
H n
K
Here, n = 4
∑x = 1+2+3+4 = 10
∑x2 = 1+4+9+16 = 30

∴σ = FH IK
30 − 10=
2
7.5 − 6.25
4 4
= 1.12 Ans.
A relative measure is coeffiecient of S.D. and is given by :

Coefficient of S.D. = σ
x

Note :
1. S.D. is considered to be the best measure of dispersion.
2. Coefficient of S.D. is the most used measure of dispersion for comparing the
homogeneity and heterogeneity of two or more distributions.
3. S.D. is also known as Root Mean Square Deviation.

5.8.1 CALCULATION OF STANDARD DEVIATION

A. Calculation of S.D. for individual series :
There are two methods of calculating S.D. for the individual series, they are :
(i) by taking deviations of the observations from actual mean.
(ii) by taking deviations of the observations from an assumed mean.
(iii) Deviations taken from actual mean :
This method is known as direct method.
Here the S.D. can be obtained by the formula

∑ bx i − x g
2
σ =
n

= d 2 , when d = x – , and
x
n i
256 Commercial Mathematics and Statistics

xi is the value of the observations,

x = AM and n is the total number of observations.
(ii) Deviations taken from assumed mean :
When actual mean is in fraction, we use this method. The formula is

∑ d2 − F ∑ d I
2

σ = n GH n JK
Where d = xi–A, A = assumed mean, n = total number of observations.

Example 11 : From the following data calculate the S.D. and the variance.
12, 15, 16, 18, 19, 20
Solution : Let us take the assumed mean ‘A’ as 17. Now to calculate SD let us prepare
the following table.
x d= (x–A) d2
= (x–17)
12 –5 25
15 –2 4
16 –1 1
18 1 1
19 2 4
∑d = –5 ∑d2 = 35

∑ d2 − F ∑ d I
2

σ = n GH n JK
35 − F −5 I =
2
=
5 H K 5
7 − 1= 6

∴ σ = 2.449
Variance = σ2 = (2.449)2= 5.99
B. Calculation of S.D. from ungrouped frequency distribution :
The S.D. for ungrouped frequency distribution can be calculated by the following methods.
(i) Deviations taken from actual mean
(ii) Deviations taken from assumed mean
(iii) Step diviation method.
 Measures of Dispersion (Variation) 257
(i) Deviations taken from actual mean :
The formula is given by

∑ fi bxi − x g
2
σ=
N

where x is the mean; x is the value of variable, f is the corresponding frequency,,

N=∑f.

(ii) Deviations taken from assumed mean :

The formula is given by :

∑ fd2 − F ∑ fd I
2

σ= N GH N JK
where d = x–A, A is the essumed mean, N=∑f.
Example 12 : Find the S.D. and its coefficient from the following data :
x: 1 2 3 4 5 6
f: 2 5 9 16 7 3
Solution : For calculation of S.D., we must prepare the following table.
x f d=(x–A) fd fd2
= (x–4)
1 2 –3 –6 18
2 5 –2 –10 20
3 9 –1 –9 9
4 16 0 0 0
5 7 1 7 7
6 3 2 6 12
∑f=N=42 ∑fd= –12 ∑fd2=66

Let the assumed mean be 4

∑ fd2 − F ∑ fd I
2

∴σ = N GH N JK
C.Math(2)–17
258 Commercial Mathematics and Statistics

= FH IK
66 − −12
2

42 42

= 157
. − 0.08

= 1.49 = 1.22
∴ σ = 1.22 Ans.

Coefficient of SD = σ
x

we have x = A + ∑
fd
N

= 4+
b−12g
42
= 4 – 0.29
= 3.71

∴ Coefficient of SD = σ = 1.22
x 3.71
= 0.329 Ans.

(iii) Step Deviation Method : is used if there is a common difference between the values
of the variable.
The formula is as given below

∑ fd /2 − F ∑ fd/ I
2

σ= N GH N JK ×i

Where, d/ = x − A , ‘A’ is the assumed mean and ‘i’ is the common factor..
i

Example 13 : Calculate SD from the following data :

Wages (in Rs.) : 10 20 30 40 50 60
No. of Workers : 2 5 9 6 3 1
Solution : For computation of SD by step deviation method, we prepare the following
table :
 Measures of Dispersion (Variation) 259

Wages No. of Workers d/= x − A fd/ fd/2

i
(x) (f) = x − 30
10

10 2 –2 –4 8
20 5 –1 –5 5
30 9 0 0 0
40 6 1 6 6
50 3 2 6 12
60 1 3 3 9
∑f = N = 26 ∑fd/= 6 ∑fd/2= 40

Let the assumed mean A be 30 and common factor i = 10.

∑ fd /2 − F ∑ fd/ I
2

σ= N GH N JK ×i

= FH IK
40 − 6
2
× 10
26 26

= 154
. − 0.05 × 10
= 1.49 × 10
= 1.22×10 = 12.20
σ = 12.20 Ans.

C. Calculation of S.D. for grouped or continuous frequency distribution :

The method is almost same as the step deviation method for simple frequency distribution,
the only difference is that the mid values of class intervals are to be found out.
The formula is

∑ fd /2 − F ∑ fd/ I
2

σ= N GH N JK ×i
260 Commercial Mathematics and Statistics

Where, d/ = x − A , x is the mid values of the class intervals, A is the assumed mean and
i
i is the width of the class intervals.
f = frequency.
N = ∑f = total frequency.

Example 14 : Calculate the SD from the following data :

Daily wages : 5–15 15–25 25–35 35–45 45–55 55–65
(in Rs.)
No. of Workers : 2 5 9 6 3 1
Solution : For computation of SD we prepare the following table :

Daily wages Mid-value No. of workers d/= x − A fd/ fd/2

i
X.I. x f = x − 30
10

5–15 10 2 –2 –4 8
15–25 20 5 –1 –5 5
25–35 30 9 0 0 0
35–45 40 6 1 6 6
45–55 50 3 2 6 12
55–65 60 1 3 3 9

∑f = N = 26 2fd/= 6 ∑fd/2 = 40
Let the assumed mean A be 30.

∑ fd /2 − F ∑ fd/ I
2

σ= N GH N JK ×i

= 40 − 6 FH IK 2
× 10
26 26

= 1.49 × 10
σ = 12.20 Ans.
 Measures of Dispersion (Variation) 261

5.8.2 PROPERTIES OF STANDARD DEVIATION :

Property 1 : Combined SD
The combined S.D. of two sets of data containing n1 and n2 observations with means x1
and x2 and standard deviations σ1 and σ2 respectively is given by..

σ12 =
d i d
n1 σ12 − d12 + n 2 σ 22 − d 22 i
n1 + n 2
n1x1 + n2x2
Where , σ12 = combined S.D. d= x1 − x12 , d= x2 − x12 and x12 =
1 2 n1 + n2
The formula for combined S.D. of two sets of data can be extended to compute the S.D.
of more than two sets of data.
Property 2 : S.D. of natural numbers :
The S.D. of first ‘n’ natural numbers is given by:

=σ
12 e
1 n2 − 1
j
Property 3 : S.D. calculated from two values x1 and x2 of the variable x is equal to
half their difference, ie.
=σ 1 x −x
12 1 2
b g
Property 4 : S.D. is independent of change of origin, but is dependent on the change
of scale. That is, if each observation is increased or decreased by any
number, will find the same S.D.
If each observation is multiplied or divided by a constant, S.D. will be similarly affected.
If y = ax+b, (a > 0)
We have y = ax + b
and y– y = ax + b − ax − b = a (x − x )
1
∑ax − yf
2
Now σ 2y =
n

= b g
a2∑ x − x
2

n
= a 2σ x2
∴ σy = aσx
or, σax+b = aσx [y = ax+b]
This, implies that S.D. is independent of origin, but dependent on scale.
262 Commercial Mathematics and Statistics

Example 15 : The mean and SD of distribution of marks of 60 students of college A are 50

and 5 and that of 90 students of college B are 60 and 8 respectively. Find the
S.D. of all 150 students taken together.
Solution : Here n1 = 60, x1 =50, σ1= 5
& n2=90, x2 =60, σ2=8
n1x1 + n 2 x2
∴ Combined mean x12 = n1 + n 2

60 × 50 + 90 × 60
= 60 + 90

= 3000 + 5400
150
= 56

Combined S.D. : σ12 =

e j e
n1 σ12 + d12 + n 2 σ 22 + d 22 j
n1 + n 2

Where, d1 = x1 − x1 = 50–56 = –6
d2 = x2 − x12 = 60–56 = 4

∴ σ12 =
e b g j + 90e8
60 52 + −6
2 2
+ 42 j
60 + 90

=
b g b
60 25 + 36 + 90 64 + 16 g
150
= 8.51 Ans.

Example 16 : If S.D. of x is 10, find the S.D. of (i) x+5, (ii) x–4, (iii) (–6x), (iv) x 5 , (v)
2x+3.
Solution : Since S.D is independent of origin, so addition and subtraction of a constant
does not change the S.D of x.
∴ (i) S.D. of (x+5) = S.D. of x = 10
(ii) S.D. of (x–4) = S.D. of x = 10
As S.D. is dependent on scale of origin, so multiplication and division of S.D. by a
constant affects the S.D. S.D. is always positive so negative sign is ignored.
 Measures of Dispersion (Variation) 263

(iii) S.D. of (–6x) = 6 (S.D of x) = 6×10 = 60 [negative sign is ignored]

(iv) S.D of ( x 5 ) = 1 (S.D of x) = 10 = 2
5 5
(v) S.D of (2x+3) = 2 (S.D of x) = 2×10 = 20

5.8.3 MERITS, DEMERITS AND USES OF S.D.

Merits
1. It is rigidly defined.
2. It is based on all the observations.
3. It is suitable for further mathematical treatment.
4. It is least affected by fluctuations of sampling.
Demerits
1. It is not easy to understand and calculate.
2. It gives more weight to extreme values.
Uses
1. S.D. is used widely is statistical theory such as in skewness, kurtosis, correlation
and regression analysis, sampling theory has made it the most powerful measure
of elispersion.
2. It is also used in biological studies.
Note 1: S.D. is considered to be the best measure of dispersion as it satisfies almost
all the characteristics laid down for an ideal measure of dispersion.
Note 2: In a moderality skewed distribution : 4SD = 5MD = 6QD

5.8.4 COEFFICIENT OF VARIATION (C.V.)

The coefficient of variation is defined as the percentage variation in mean, while standard
deviation is considered as the total variation in the mean. The coefficient of dispersion based
on standard deviation multiplied by 100 is called the coefficient of variation and abbremiated
as C.V. Thus,
C. V=. σ × 100
x
Coefficient of variation suggested by Prof. Korl Pearson is considered as the best relative
measure of dispersion. C.V. is always expressed in percentage form.
For comparing the variability of two distributions we compute the coefficient of variation
for each distribution. A distribution with smaller C.V. is said be more homogeneous or less
variable than the other, and the distribution with greater C.V. is said to be more heterogeneous
or more variable than the other.
264 Commercial Mathematics and Statistics

Example 17 : Two workers on the same job show the following results over a long period
of time.
Worker A Worker B
Mean time of completing the job (in minutes) 30 25
S.D. (in minutes) 6 4
Which workers appears to be more consistant in the time he require to complete the job.

Solution : Here we use C.V. for comparsion

1σ
Now, C.V. of worker A = x × 100
1

= 6 × 100
30
= 20%
σ2
C.V. of worker B = × 100
x2

= 4 × 100
25
= 16%
∴ Worker B appears to be more consistant.

Example 18 : Calculate the coefficient of variation from the following data :

Marks : 0–10 10–20 20–30 30–40 40–50
No. of Students : 4 5 6 3 2
Solution : For calculation of C.V. we prepare the following table :

Marks Mid value f d / = x − A = x − 25 fd/ fd/2

i 10
x
0–10 5 4 –2 –8 16
10–20 15 5 –1 –5 5
20–30 25 6 0 0 0
30–40 35 3 1 3 3
40–50 45 2 2 4 8

Total ∑f=N=20 ∑f/d/= –6 ∑fd/2=32

 Measures of Dispersion (Variation) 265
Let the assumed mean A be 25.

C. V=. σ × 100
x

x =A+ ∑
fd /
Here ×i
N

= 25 +
b−6g × 10
20
= 22

∑ fd /2 − F ∑ fd/ I
2

σ = N GH N JK ×i

32 − F −6 I
2
= 20 H K 20
× 10

= 1.6 − 0.09 × 10
= 12.29

∴ C.V. = 1222
.29 × 100 =
55.86

CV = 55.86 Ans.
Example 19 : The mean and standard deviation of a series of 20 items were calculated by a
student as 20 cm and 5cm respectively. But while calculating them an item
13 was misread as 30. Find the correct mean and S.D.

Solution : We have, n = 20, x = 20 cm & σ = 5 cm

x=
∑x
n
⇒ ∑x = n x = 20×20 = 400 cm

∑ x2 − F ∑ x I
2

σ= n GH n JK
− FH 400 IK
or, 5 =
∑ x2 2

20 20

or, 25 = ∑ x2 − 400
20
266 Commercial Mathematics and Statistics

or, ∑ x2 = 25+400 = 425

20
or ∑x2 = 425×20 = 8500
Corrected ∑x = 400–30+13 = 383
Corrected ∑x2 = 8500–(30)2+(13)2
= 8500–900+169 = 8269

∴ Corrected mean ( x ) = 383 = 19.15 Ans.

20

Corrected SD (σ) =
20
b
8269 − 1915
. g 2

= 413.45 − 366.72 =
46.73
= 6.83 Ans.

EXERCISE (5 D)

1. Define S.D. Why SD is called the ideal measure of dispersion.

2. Write down the merits and demerits of S.D.
3. What is coefficient of variation? What purpose does it serve?
4. In what situation would you prefer C.V. as a measure of dispersion.
5. Find the S.D. of the following :
(i) 1, 2, 3, 4, 5 [Ans: 1.414]
(ii) 16, 13, 17, 22 [Ans: 3.2]
6. If S.D. of 1, 2, 3,..........,n be 14 , find n. [Ans: 13]
7. Find the S.D. and its coefficient from the following data :
x: 10 11 12 13 14 15 16
f: 2 7 11 15 10 4 1
[Ans: 1.342, 0.104]
8. Calculate SD for distribution of marks given below :
Marks : 10 20 30 40 50 60 70
No. of Students : 10 8 12 20 10 6 4
[Ans: 16.7 marks]
 Measures of Dispersion (Variation) 267
9. Calculate the SD and its coefficient from the following data :
C.I. : 0–10 10–20 20–30 30–40 40–50 50–60 60–70
f: 8 12 17 14 9 7 4
[Ans: 16.67, 0.54]
10. In a moderatily skewrded distribution, the MD is 60, find the value of SD and QD.
[Ans: 75, 50]
11. The mean and SD of distribution of 100. Observations are 50 and 5, and that of 150
observations are 40 and 6 respectively. Find the SD of all 250 observations taken together.
[Ans: 7.46]
12. Find the coefficient of vairation of the number 1, 2, 3, 4, 5.
[Ans: 47.13%]
13. Following data is given for two factories. Find out in which factory there is more
variability in wages.
Factory I Factory II
No. of workers : 50 60
Mean monthly wage : Rs. 60 Rs. 48
Variance : 100 144
[Ans: Factory II]
14. Calculate mean, SD and variance from the following data :
Class Interval : 60–62 63–65 66–68 69–71 72–74
Frequency : 5 18 42 27 8
[Ans: 67.45, 2.92, 8.53]
15. Find the mean, SD and CV of the following data :
Marks : 5–10 10–15 15–20 20–25 25–30 30–35
No. of Students : 2 9 29 54 11 5
[Ans: 21.05, 4.84, 23%]
16. Calculate variance and CV for the distribution of marks given below :
Marks No. of Students.
less than 10 3
less than 20 7
less than 30 13
less than 40 18
less than 50 20 [Ans: 144.72, 48.22%]
268 Commercial Mathematics and Statistics

17. The mean and SD of 100 observations are found to be 30 and 10 respectively. Two
observations were taken by mistake as 12 and 31 instead of 21 and 13 respectively. Find
the correct mean and SD.
[Ans: 29.91, 10.02]
18. The mean and standard deviation of a group of 25 observations were found to be 30 and
3 respectively. After the calculation it was found that two of the observations were
incorrect, which were recorded as 29 and 31. Find the mean and SD, if the incorrect
observations are excluded.
[Ans: 30, 3.11]
19. The mean of five observations is 4.4 and the variance is 8.24. If three of the five
observations are 1, 2 and 6, find the other two.
[Ans: 9, 4]
20. Find the mean and variance of the following data :
Measurement No. of articles
More than 80 5
More than 70 14
More than 60 34
More than 50 65
More than 40 110
More than 30 150
More than 20 170
More than 10 176
More than 0 180
[Ans: 45.2, 282.95]

5.8.5 LORENZ CURVE

Dr. Max O Lorenz, an economic statistician used a graphic method for measuring
dispersion. Hence it is known as Lorenz Curve. It was used for studying the economic
inequalities such as inequalities in the distribution of income and wealth between different
countries or between different periods of time. At present, Lorenz Curve is also used in business
to study the differences of the distribution of wages, profits, production, population etc.
Lorenz Curve is also known as Cumulative Percentage Curve. It deals with cumulative
percentage values of the variable and the cumulated percentage of frequencies. Here on the
X-axis we take the cumulated percentage of variable and on the Y-axis we take the cumulated
percentage of frequency.
 Measures of Dispersion (Variation) 269
First, the values of the variables and the frequencies are both cumulated. Then the
percentage are calculated for the cumulated values of the variables and the corresponding
frequencies. These percentages are to be plotted in the graph paper. If wealth are equally
distributed among the people concerned, the curve would be a straight line joining the extreme
points of the different scales ie. (0, 0) and (100, 100). This line is known as Line of equal
distribution.
If the distribution of items are not proportionately equal, it inducates variability and the
curve would be away from the line of equal distribution. The greater the variability the
greater is the distance of the curve from the line of equal distribution. So, if the curve is
closer to the line of equal distribution it indicates smaller variability
Lorenz Curve given us only a relative idea of the dispersion as compared to the line of
equal distribution. It does not provide any numerical value of the variability for the given
distribution.

Example 20 : Draw Lorenz Curve for the following distribution and compare the variability
of the two distributions.

Profit earned (in Rs.1000) No. of Companies

Area A Area B
10 8 15
20 7 6
40 5 2
50 3 1
80 2 1

Solution : For drawing the Lorenz Curve we must prepare the following table :
Profit earned (in Rs.1000) Area A Area B
Profit Cumulated Cumulated No. of Cumulated Cumulated No. of Cumulated Cumulated
(1000 Rs.) Profit Percentage Companies No. of Percentage Companyes No. of Percentage
Profit Companies No. of Companyes No. of
Companyes Companyes

10 10 5 8 8 32 15 15 60
20 30 15 7 15 60 6 21 84
40 70 35 5 20 80 2 23 92
50 120 60 3 23 92 1 24 96
80 200 100 2 25 100 1 25 100
270 Commercial Mathematics and Statistics

Now plstting the percentage of P(100,100)

cumulated profit earned in the Y-axis 100

and the percentage of cumulated 90

number of companies of area A and 80

area B in the X-axis we get the Lorenz 70

60
Curve as follows :
50
40
The curve B is further away from 30
the line of equal distribution than A. 20
Therefore there is greater variability in 10
the profit earned by the companies of
O (0,0)10 20 30 40 50 60 70 80 90 100
area B than area A.

EXERCISE (5 E)
1. What is Loreng Curve? What is its use?
2. Write a short note on Lorenz Curve.
3. Draw Lorenz Curve for the following distribution and compare the variability of the
two distributions.
Profit earned No. of Companies
(in Rs.) Area A Area B
6 6 2
25 11 38
60 13 52
84 14 28
105 15 38
150 17 26
170 10 12
400 14 4
 Measures of Dispersion (Variation) 271
4. State whether the statements are true or false.
(i) Range is a relative measure of despersion.
(ii) Q.D. is also called semi interquartile range.
(iii) MD is minimum when calculated from mode.
(iv) Mean, SD and CV have the same unit.
(v) Variance is always non-negative.
(vi) S.D. is the best measure of despersion.
[Ans: (i) False, (ii) True, (iii) False,
(iv) False, (v) True, (vi) True]
5. Fill in the blanks :
(i) The concept of Lorenz Curve was put forward by ––––––––––.
(ii) C.V. is –––––––––– of unit of measurement.
(iii) Variance is equal to the square of ––––––––––.
(iv) S.D. is always –––––––––– than range.
(v) S.D. is –––––––––– of the change of origin.
(vi) The further the Lorenz Curve is from the line of equal distribution the ––––––––
is the variability in the series.
[Ans: (i) Max O. Lorenz, (ii) free, (iii) S.D.,
(iv) less, (v) independent, (vi) greater]
 (272)

UNIT-6 CORRELATION

In our previous studies of data analysis with the help of measures of central tendency
and dispersion etc. We came across data involving only one variable. These type of data
are known as univariate data. For example data relating to marks, age, weight, income
etc. are univariate data. But in practice we may face data involving two or more variables.
Data involving two variables an known as bivariate and data involving more than two
variables are known as multivariate data. A few examples of bivariate data are : (i) height
and weight of a group of persons (ii) income and expenditure of a group of families. (iii)
price and demand of commodity for the last 10 years etc. If a bivariate data is given for
analysis, our interest will go at first to know if there is any relationship between the two
variables. The knowledge of such a relationship in important to draw influences about the
bivariate distribution correlation thus is a statistical tool which studies the relationship
between the too variables and it involves various methods for studying and measuring the
extent and degree of relationship.
DEFINITION :
If it is observed in a bivariate data that the change in the values of our variable results
in a corresponding change in the values of the other variable, then the two variables under
study are said to have correlation.
TYPES OF CORRELATION :
Depending on the nature of change correlation has been classified as follows :
1. Positive correlation
2. Negative correlation
3. Perfect correlation
(i) Perfect positive correlation
(ii) Perfect negative correlation
1. Positive correlation :
If it is seen in a bivariable data that the increase (decrease) in the values of our
variable results in a corresponding increase (decrease) in the values of the other variable,
then the correlations between the two variable under study is said to be positive. For
example, the correlation between (i) income and expenditure (ii) height and weight of a
group of persons in positive.
Thus in case of positive correlation changes in the values always occur in the same
direction.
 Correlation 273

Numerical Example of Positive Correlation :

Increase → ← Decrease
x : 17 19 23 25 28 32 37 41 46

Increase → ← Decrease
y: 4 7 15 18 20 26 29 35 37
2. Negative correlation :
If the increase (decrease) in the values of one variable results in a corresponding
decrease (increase) in the values of the other variable, them the correlation in said to be
negative. For example, the correlation between (i) Price and demand of a commodity (ii)
Volume and pressure of a perfect gas is negative.
Thus in case of negative correlation, changes in both the variables always occur in
the opposite direction.
Numerical example of negative correlations :
Increase → ← Decrease
x: 5 8 10 13 15 19 23 26 28 31 33

Decrease → ← Increase
y : 42 38 34 30 28 26 21 19 14 16 11

3. Perfect correlation :
If in a bivariate data it is observed that the amount of change in the values of one
variable tends to bear a constant ratio to the corresponding amount of change in the values
of the other variable, then the correlation between the two variables under study is said
to be perfect.
Now if we changes in the values of the two variables occur in the same direction and
the corresponding changes been a constant ration, then the correlation is said to be perfect
positive.
For example, consider the following bivariate distribution :
Increase → ← Decrease
x: 3 6 9 15 21 30 36 45

Increase → ← Decrease
y: 1 7 13 25 37 55 67 85
Amount of change in x 3 3 6
: = = = 6= 9 = 6= 9 1
=
Amount of change in y 6 6 12 12 18 12 18 2

C.Math(2)–18
274 Commercial Mathematics and Statistics

Since the changes in both x and y an occurring in the same direction and the corre-
sponding changes in proportional. So the correlation between the two variables x and y
in perfect positive.
Again if the changes in both the variables occur in the opposite direction and the
corresponding changes been a constant ratio, then the correlation is said to be perfect
negative.
For example, consider the following bivariate distributions :
Decrease → ← Increase
x : 50 48 47 43 40 38 34 29

Increase → ← Decrease
y: 4 10 13 25 34 40 52 67
Amount of change in x 2 1 4 3 2 4 5 1
:
Amount of change in y 6= 3= 12= 9= 6= 12= 15= 3

Since the changes in x and y an occurring in the opposite direction and the corre-
sponding changes bear a constant vatio, therefore, the correlation between x and y is
perfect negative.
Remarks :
1. If the data given in the examples of perfect positive and perfect negative
correlation an plotted on a graph paper, we will find that all the points in both
the cases will lie on a straight line with different directions.
2. Any deviation of the points from the straight lines measures the extent or
degree of linear relationship between the two variables under study.
3. Our present discussion is restricted to only linear relationship between two
variables.
METHODS OF STUDYING CORRELATION :
Among the various methods which ascertains only linear relationship between two
variables, we consider only the following two methods :
I. Scatter diagram and
II. Karl pearson’s coefficient of correlation.
I. Scatter Diagram :
This is the simplest method of studying whether there is any relationship between the
too variables in a given bivariate distribution. In this method each pair value of the
variables of the given date is plotted on a graph paper using dot marks and thus obtain
as many dots as the number of pairs of observations. The diagram of dots so obtained is
 Correlation 275
known as scatters diagram. By looking at the scatterednss
of the data we can have a fair idea as to whether the Y
variables are related or not. The greater is the scatter of
the dots, the lesser is the relationship between the two
variables and vice-verse.
In the following we discuss considering different
types of scatter diagram has correlation can be O X
interpreted: Diagram 6.1
We observe that the dots of the diagram 6.1 are
Y such that a straight line can be made to pass through
all the dots i.e.; all the plotted points lie on a straight
line and the line is rioring from lower left-hand corner
to the upper right-hand corner. The proportional
changes in the same direction of the values of two
variables x and y in a bivariate data always exhibits
O X
this type of diagram and there by conclude that there
Diagram 6.2 is perfect positive correlation between the two vari-
ables x and y.

The scatter diagram 6.2 reveals that the plotted

points have an upward trend from lower left hand corner Y
to the upper right hand corner. This type of tendency
is seen when the changes in the values of the two
variables occur in the same direction and the changes
on not proportional then we conclude that there is a
positive correlation between the two variables x and y
O X
under study.
Diagram 6.3
In the above scatter diagram 6.3, we see that the
dots are such that a straight line can be made to a pass Y
through all the dots i.e.; all the plotted points lie on a
straight line which has a downward trend from upper
left-hand corner to lower right-hand corner. The pro-
portional changes in the opposite direction of the val-
ues of the two variables in a bivariate data always
results in this type of diagram. The correlation in this O
case between the two variables under study in perfect
negative. Diagram 6.4

X
276 Commercial Mathematics and Statistics

The dots of diagram 6.4 shows a downward

tendency from upper left-hand corner to the lower Y
right-hand corner. So we conclude that the correla-
tion between the two variables under study in nega-
tive since the values of the variables in this case
changes in the opposite direction and the changes or
not proportional. O X

Diagram 6.5
In diagram 6.5, the dots reveals neither upward
nor downward tendency rather the tendency in
parallel to the x-axis. So we conclude that there is no correlation between the two variables
under study.

Note :
As the scatter of the dots increases or closeness decreases from the lines given
in diagrams 6.1 and 6.3 the degree of positive or negative correlation decreases
and vice-verse.

MERITS AND DEMERITS OF SCATTER DIAGRAM METHOD :

Merits :
1. This method is the simplest method of studying correlation as it does not involve
any mathematical complexities. It can be easily understood and it enable is to
form a rough idea as to whether or not the variables under study are correlated.
Demerits :
1. This method can not measure the degree (high or low) of relationship between
the two variables under study.
2. This method is not suitable if the number of observations is fairly large.

Example 1.1. : The marks of 10 students in Mathematics and Statistics are given as follows :
Marks in Maths x : 60 72 68 56 63 71 65 62 60 72
Marks in Stats. y : 58 66 64 51 55 63 62 57 64 68
Draw a scatter diagram of the above data and give your comment on the nature of
orrelation.
 Correlation 277

72

70

68

66

64

62

60

58

56

54

52

50
50 52 54 56 58 60 62 64 68 70 72

Diagram 6.6

From the above scatter diagram we observe that the plotted points shown an upward
trend from the bottown of the left-hand corner to the top of the right hand corner. Hence
we conclude from the closeness of the points that then is fairly high degree of correlation
between the marks. In mathematics and statistics of 10 students.
II. Karl Pearson’s Coefficient of Correlation :
Karl Pearson’s co-efficient of correlation is a mathematical method and it is most
widely used method of numerical measurement of linear relationship between two vari-
ables. It is also known as product moment correlation.
If in a bivariate distribution (x1, y1), (x2, y2), –––, (xn, yn) are ‘n’ pairs of observations
given of the variables x and y then Karl Pearson’s coefficient of correlation between x and
y, denoted r (x, y) a rxy or r, is defined by
cov( x1 y)
r=
rx ry ............... (2.1)
278 Commercial Mathematics and Statistics

Where cov (x1y) known as covariance between x and y, is given by

1
cov(x1y) =
n ∑ ( x − x)( y − y) ......... (2.2)

σ x and σy are known as standard deviations of x and y and are respectively given
by

1
=σx
x
∑(x − x)2
1
and =σy
x
∑(y − y)2 ............ (2.3)

Note :
∑ represents sudmmation being taken over ‘n’ pairs of observations.
Substituting (1.2) and (1.3) in (1.i), we get

r=
∑ ( x − x)( y − y)
............ (2.4)
∑ ( x − x ) . ∑ ( y − y)
2 2

Properties of r :
(i) ‘r’ is a pure number i.e. it is free from any unit of measurement.
(ii) The value of ‘r’ as obtained by formula (1.4) always lies between – 1 and +
1 i.e., – 1 ≤ r ≤ + 1.
(iii) Correlation coefficient between x and y is same as that of correlation coefficient
between y and x i.e. r(x, y) = r(y, x)
(iv) Correlation coefficient ‘r’ is independent of change of origins and scale.
Interpretations of different values of ‘r’ :
(i) If r = 0 then we conclude that there is no linear relationship between the two
variables under study.
(ii) If r = + 1, then we conclude that there is a perfect positive correlation between
the two variables under study.
(iii) If r = – 1, then we conclude that then is a perfect negative correlation between
the two variables under study.
(iv) If 0 < r < 1 then we conclude that then is positive correlation between the two
 Correlation 279
variable under study.
(v) If – 1 < r < 0, then we conclude that then is negative correlation between the
two variables under study.
(vi) If r = 0.24 and r = 0.87 then in both the cases there are positive correlation
between the two variables and we conclude that in the former case there is low
degree and in the later case then is high degree of positive correlation between
the variables under study.
(vii) If r = – 0.16 and r = – 0.92, then in both the cases there is negative correlation
and to interpret have correctly we conclude that in the later case there is a high
degree of negative correlation and in the former case then is a low degree of
negative correlation between the two variables under study.

Remarks :
1. Karl Pearson’s coefficient of correlation only measures the linear relationship
and their degree between two variables under study.
2. r = 0 inchiates absence of linear relationship only but then may exist other types
of non-linear relationship between the two variables under study.

Computation of Karl Pearson’s coefficient of correlation r :

The value of ‘r’ can be calculated by directly using the formula given in (2.4). In this
case x and y to be calculated first and if the values of x and y comes out to be in
decimals, then the entire calculation of ‘r’ will become labourious and will consume more
time and will have a chance of committing mistake in the calculation. So to overcome this
difficulty readers are suggested to use the simplified form of (2.4) for the calculation of
r and it is given by

e∑ xje∑ yj
∑ xy − n
r= ............... (2.5)
R| e ∑ UR
xj | |
2
e ∑ U
yj |
2

S|∑ x − n V| S|∑ y − n |V
2 2

T WT W
Example 1 : Calculate Karl Pearson’s coefficient of correlation between the price and
supply of a commodity during a period of 8 years from the following data.
Price (Rs. per kg) : 12 14 20 18 15 22 20 19
Supply (.00 kg) : 32 37 47 46 42 50 49 48
280 Commercial Mathematics and Statistics

Solution by direct method using formula (1.4)

Let the price of the commodity be denoted by the variable X and the supply be denoted
by Y.

CALCULATION OF CORRELATION COEFFICIENT

X Y X– x Y– y (x– x )(y– y ) (x– x )2 (y– y )2

=x–17.5 = y–43.9
12 32 – 5.5 – 11.9 65.45 30.25 141.61
14 37 – 3.5 – 6.9 24.15 12.25 47.61
20 47 2.5 3.1 7.75 6.25 9.61
18 46 0.5 2.1 1.05 0.25 4.41
15 42 – 2.5 – 1.9 4.75 6.25 3.61
22 50 4.5 6.1 27.45 20.25 37.21
20 49 2.5 5.1 12.75 6.25 26.01
19 48 1.5 4.1 6.15 2.25 16.81

∑x=140 ∑y=351 ∑(x– x )(y– y ) ∑(x– x )2 ∑(y– y )2

= 149.5 = 84.0 = 286.88

=
∑x y =
∑y
x n n
140 357
= =
8 8
= 17.5 (approx) = 43.9 (approx)

∑ ex − xjey − yj 149.5
∴r= =
2 2 84.0 × 286.88
∑ e x − x j . ∑ e y − yj
149.5
= = 0.96 (approx)
155.23
 Correlation 281

Solution of Example 1 by direct method using simplified form (2.5) :

CALCULATION OF CORRELATION COEFFICIENT
X Y xy x2 y2
12 32 384 144 1024
14 37 518 196 1369
20 47 940 400 2209
18 46 828 324 2116
15 42 630 225 1764
22 50 1100 484 2500
20 49 980 400 2401
19 48 912 361 2304
∑x=140 ∑y=351 ∑xy=6292 ∑x =2534
2
∑y =15687
2

e∑ xje∑ yj
∑ xy −
n
r =
R| e ∑ UR
x j ||
2
e ∑ U
yj |
2

S|∑ x − n V|S|∑ y − n V|
2 2

T WT W
140 × 357
6292 −
= 8
RS2534 − (140) UVR|S15687 − b351g U|V
2 2

T 8 W| 8 |
T W
149.5
= = 0.96
155.23
The drawback of the simplified form (1.5) in that in case of cealnes of X and Y given
are big, the enter calculations become labourious and time consuming. We can over come
this difficulty in the following method.
Step-deviation method :
The aim of this method is to current big alues into small values and then correlation is
calculated based on these small values. This method bares time and labour of calculation.
282 Commercial Mathematics and Statistics

In this method the given values of X and Y are currented into u and v by the
technique known as change of origin and scale as follows :
x−a y−b
u= and v =
h k
When a = assumed mean of X
b = assumed mean of Y
h and k are the common factors and h > 0 and k > 0.
Then the correlation coefficient between X and Y is given by

e∑ uje∑ vj
∑ uv − n
rxy = ruv = .......... (2.6)
R| e∑ UR
uj ||
2
e ∑ U
vj |
2

S|∑ u − n V|S|∑ y − n V|
2 2

T WT W
Which implies that correlation coefficient between X and Y is same as that of cor-
relation coefficient between u and v.
Note : The relation (2.6) establishes the property (iv) of Karl Pearson’s coefficient of
correlation ‘r’.

Solution of Example 1 by step-deviation method using formula (2.6) :

CALCULATION OF CORRELATION COEFFICIENT
a = 18, b = 42, h = 1 and k = 1
x − 18 y − 42
X Y u= v= uv u2 v2
1 1

12 32 –6 – 10 60 36 100
14 37 –4 –5 20 16 25
20 47 2 5 10 4 25
18 46 0 4 0 0 16
15 42 –3 0 0 9 0
22 50 4 8 32 16 64
20 49 2 7 14 4 49
19 48 1 6 6 1 36
∑u = – 4 ∑v = 15 ∑uv = 142 ∑u2 = 86 ∑v2 = 315
 Correlation 283

e∑ uje∑ vj
∑ uv −n
rxy = ruv =
R| e ∑ UR
uj ||
2
e ∑ U
vj |
2

S|∑ u − n V|S|∑ v − n V|
2 2

T WT W
(−4)(15)
142 −
= 8
RS86 − (−4) UVRS315 − (15) UV
2 2

T 8 WT 8 W

149.5
=
155.23

= 0.96 (approx)

Note :
While selecting the assumed mean and common factor, the following points to be
remembered:
1. For selecting the assumed mean values, first find the middle value of the con-
cerned variable. If the middle value is not available amongst the values given,
then choose a value from the given values which in nearest to the middle value
and take that value as assumed mean.
2. For selecting the common factors, first look at the given values of the concerned
variable if they are divisible by a common number or not If divisible by a
common number, then take that number as the common factor. Otherwise take
common factor equal to 1 (one).

Example 2.1 : Calculate Karl Pearson’s coefficient of correlation from the data given
below :

X : 15 20 25 30 35 40 45 50 55

Y : 75 63 60 54 48 42 39 30 9
284 Commercial Mathematics and Statistics

CALCULATION OF CORRELATION COEFFICIENT

BY STEP-DEVIATION METHOD
a = 35, b = 42, h = 5 and k = 3
x − 35 y − 42
X Y u= v= uv u2 v2
5 3

15 75 –4 11 – 44 16 121
20 63 –3 7 – 21 9 49
25 60 –2 6 – 12 4 36
30 54 –1 4 –4 1 16
35 48 0 2 0 0 4
40 42 1 0 0 1 0

45 39 2 –1 –2 4 1

50 30 3 –4 – 12 9 16
55 9 4 – 11 – 44 16 121
∑u = 0 ∑v = 14 ∑uv = –139 ∑u2 = 60 ∑v2 = 364

e∑ uje∑ vj
∑ uv − n
rxy = ruv =
R| e ∑ R
uj U||
2
e ∑ vj U|
2

S|∑u − n V|S|∑ v − n V|
2 2

T WT W
0 × 14
−139 − −139
9
= =
RS60 − (0) UVRS364 − (14) UV
2 2 60 × 342.2

T 9 WT 9 W

−139
= = – 0.97 (approx)
143.29
 Correlation 285

EXERCISE

1. State whether the following statements an ‘True’ a ‘False’ :

(i) There are no limits to the value of ‘v’.
(ii) Pearson’s coefficient of correlation is independent of change of origin but not of
scale.
(iii) If ‘r’ is negative both the variables are decreasing.
(iv) The unmarried value of r between two variables X and Y can not exceed unity.
(v) If the value of ‘r’ is positive i.e. r > 0, then as X increases, Y also increases.
(vi) Karl Pearson’s coefficient of correlation measures every type of relationship
between the two variables.
(vii) r = 0 means there is no relationship between the two variables.
[Ans : (i) F (ii) T (iii) F (iv) T (v) T (vi) F (vii) T (only lines)]
2. Fill in the blanks :
(i) Positive correlation means on an average as one variable in increasing the vari-
able is ––– and as one variable is decreasing the other is also––.
(ii) The coefficient of correlation is independent of change of –– and ––.
(iii) Karl Pearson’s coefficient of correlation is a –––– number.
(iv) r = 0 imphis absence of ––– relationship between the two variables.
(v) Karl Pearson’s coefficient of correlation lies between ––– and –––.
(vi) If r(x, y) = 1, the line on the graph paper will move ––– from ––– to –––.
(vii) The absolute value of ‘r’ is less than ––––.
[Ans. : (i) increasing, decreasing (ii) origin and scale (iii) pure (iv) linear (v) 0, 1 (vi)
upward, left, right (vii) 1]
3. What is meant by correlation? Distinguish between positive, negative and zero cor-
relation? Explain what is meant by perfect correlation.
4. Distinguish giving suitable examples between :
(i) Positive and negative correlation.
(ii) Linear and non-linear correlation.
5. (a) What is the meaning of coefficient of correlation?
(b) What are the limits of the value r? What do positive, negative and zero value of
‘r’ indicate?
286 Commercial Mathematics and Statistics

6. What is correlation? State the properties of Karl Pearson’s coefficient of correlation.

7. What is a scatter diagram? How do you interpret a scatter diagram?
8. (a) What is a scatter diagram?
(b) How does it help in studying the correlation between two variables?
9. (a) What is correlation? What are the different types of correlation?
(b) Draw the scatter diagram of the different types of correlations.
10. (a) What is correlation? Distinguish between positive and negative correlation.
(b) Explain the significance of coefficient of correlation.
11. Define perfect correlation. Give numerical examples in each of the following cases.
(i) Positive correlation.
(ii) Negative correlation.
(iii) Perfect positive correlation, and
(iv) Perfect negative correlation.
12. The price and supplies of a commodity during a period of last 8 years are given in
the following data:
Price (Rs. kg) : 10 12 18 16 16 20 18 20
Supply (100 kg) : 30 35 45 45 40 50 55 50
Calculate the coefficient of correlation between price and supply.
13. A group of 8 students got the following marks in statistics and accountancy :
Marks in stats : 50 60 65 70 75 40 70 80
Marks in Accy : 80 70 60 75 90 80 70 50
Calculate Karl Pearson’s coefficient of correlation between the two sets of marks.
14. Draw the scatter diagram of the following data :
X : 15 20 18 12 40 60 20 80 70 75
Y : 40 30 50 30 20 10 30 60 64 70
Give your comment regarding the correlation between X and Y and the degree.

––––––
 Correlation 287

THEORY OF PROBABILITY
INTRODUCTION :
If we observe at the happenings of some phenomena related to business, economics,
social science a even our day-to-day life, then we find that most of the occurrences of
these phenomena are associated with the factor of uncertainity. For instance, a healthy
man will survive for another six months cannot be predicted with certainity. Nothing can
be said about the future life of an electric bulb after if has lasted for one year, a sales
manager can never say with certainity that he will achieve his sales target in a financial
year, an investment in share market will fatch an expected dividend can not be predicted
with certainity. It is uncertain to predict a head on a tail in a toss of a perfect coin, the
sex of a baby to be born can not be predicted with certainty. An element of uncertainity
is associated with the savings that it may rain today. India may win the cricket match
against Pakistan etc. Thus, we observed that the results in all the above phenomena can
not be predicted with certainity and they are known probabilistie phenomena.
Now, the obvious question that arises into the inival of the readers is that – Are there
phenomena whose occurrences can be predicted with certainity. The answer is yes. For
instance, when two mobecules of hydrogen and one molecule of oxygen on mixed up of
water in formed in case of a perfect gas pressure X volume = constant, provided tempera-
ture remains constant of when potasium is added to water hydrogen gas is formed etc.
an predictable phenomena as they gives unique result under homogeneous conditions and
they are known as deterministic phenomena.
Thus, most of the phenomena in physical and chemical sciences are deterministic and
most of phenomena in business economics and social sciences are probabilistic in nature.
Theory of probability is a very important branch of statistics which helps to measure
numerically the uncertainty of occurrence of a phenomenon under study.

HISTORY :
Theory of probability had been originated while solving some problems of gambling
related to games of chances for instance throwing of a dice, drawing cards from a pack
of cards and so on. Galileo (1564-1642) an Italians mathematic was the first to attempt
a quantitative approach to measure the probability or chance to while dealing with some
problems related to throwing of dice in gambling. The first foundation of the mathemati-
cal probability theory was laid in the mid seventeenth century by two French Mathema-
ticians B. Pascal (1623-1662) and P. Fermat (1601-1665), While solving a number of
problems posed by French Gambler and noble man Chevalier-De-Mere to Paseal consid-
erable work in this field was done by Bernoulli (1654-1705) in his ‘Treaties on Probabil-
288 Commercial Mathematics and Statistics

ity’ which was published in 1713. Others who made a significant contributions in devel-
oping the theory of probability are De-Moivre (1667-1754) Thomas Bayes (1702-1761).
P.S. Laplace, (1749-1827) Most notable contributors to the modern theory of probability
are Chebycher (1821-1894) A. Markoff (1856-1922), Liapomnoff A. Khinchive and A.
N. Kolmogoror.
Theory of probability has been developed to such an extent that it is now used in all
disciplines of social and natural sciences. It is used in the quantitative analysis of the
problems related to business and economics. In insurance industry probability is exten-
sively used to measure the risk or loss involved in order to calculate premium.

Approaches to measure Probability :

There are three different approaches to measure probability :
(i) Classical a mathematical approach
(ii) Empirical approach
(iii) Axiomatri approach
Discussion of the measure of probability based on Empirical and Axiomative ap-
proaches one beyond the scope of the book.

Basic Terminology :
Different terms neded to define probability on discussed in this section.
Random Experiment :
It an experiment is conducted repeatedly essentially under homogeneous conditions
and all possible results (out comes) of the experiment an known in advance but no result
can be predicted with certainity then this type of experiment is known as random experi-
ment.
For instance, (1) Tossing of a coin with two known possible outcomes viz; head a
tail is a random experiment.
(2) Throwing of a die with six known possible outcomes viz; 1, 2, 3, 4, 5, and 6 (3)
Drawing a card from a park of cards with 52 known possible outcome etc. an vandom
experiments.
Trial and Event :
Performing a random experiment is a trial and getting an outcome or a combination
of outcomes of the experiment is an event. Events an usually denoted by the capital
alphabets A, B, C etc.
For example (1) tossing of a coin is a trial and getting a head in an event
(2) throwing of a die is a trial and getting 3 or getting an even number is an event.
 Correlation 289

Simple a Elementary and Compound a Composite events :

An event which can not be decomposed into two or more events in known as simple
or elementary event. On the other hand if an event can be decomposed into more than
one simple events then the event is known as compound a composite events.
For example :
(1) The event of getting 3 in a throw of a die is a simple event and the event of getting
a multiple of 3 is a compound event as the event is composed of two simple events
namely 3 or 6.
(2) In a toss of two coins together the event of getting a head is a compound event
as it is composed of two simple events namely HT or TH.

Mutually Exclusive Events :

Two a more events in a trial on said to be mutually exclusive if the occurrence of one
of the events prevents the occurrence of the other events.
For example (1) in tossing of a coin head and tail are mutually exclusive events as
when head occurs tail cannot occur and vice-versa.
(2) In a draw of a card from a pack of cards, getting an ace and king and mutually
exclusive since when ace occurs king cannot occur and vice-versa.

Equally Likely events or Cases :

Two or more events in a trial are said to be equally likely events if all the relevant
evidences associated with the random experiment ensures that no event gets the prefer-
ence of occurrence over the other events.
For example
(1) in a toss of a coin head and tail are equally likely events provided the coin is free
from any defect.
(2) If unbiasedness of a die can be ensured then all the six events 1, 2, 3, 4, 5 and
6 associated with the throwing of a die will be equally like by events.
(3) To ensure all the 52 outcomes associated with the drawing of a card from a pack
of 52 cards to be equally likely cards must be well shuffled before the draw in made.
Exhaustive Events or Cases :
The total number of possible outcomes associated with a random experiment is known
as the exhaustive events a cases.
For example :
(1) in tossing of a coin, then are two exhaustive events or cases namely head and tail.

C.Math(2)–19
290 Commercial Mathematics and Statistics

(2) In tossing of a coin twice (or tossing of two coins together) there are 2 2 = 4
exhaustive cases, namely HH, H T, T H, T T.
(3) Exhaustive cases in a toss of 3 coins together is given by 23 = 8 namely HH H,
HH T, HTH, THH, HT T, THT, T TH, T T T.
(4) In throwing of a die the exhaustive cases in given by 6 namely 1, 2, 3, 4,
5 and 6.
(5) When 2 dice are thrown together the exhausive cases is 62 = 36 and they are
given by–
(1, 1), (1, 2), (1, 3), (1, 4), (1, 5), (1, 6)
(2, 1), (2, 2), (2, 3), (2, 4), (2, 5), (2, 6)
(3, 1), (3, 2), (3, 3), (3, 4), (3, 5), (3, 6)
(4, 1), (4, 2), (4, 3), (4, 4) (4, 5), (4, 6)
(5, 1) (5, 2) (5, 3) (5, 4) (5, 5) (5, 6)
(6, 1) (6, 2) (6, 3) (6, 4) (6, 5) (6, 6)

Favourable cases or Events :

The number of cases or events in a trial, the occurrence of which ensures the occur-
rence of a particular event an known as the favourable cases.
For example :
(1) In a toss of two coins together, the number of cases favourable to the occurrence
of one head and one tail and two namely HT and TH.
(2) In a throw of a die, there are 3 cases namely 2, 4 and 6 which are favourable to
the event of getting an even number.
(3) In a throw of 2 dice together the events (2, 6), (3, 5), (4, 4), (5, 3) and (6, 2)
ensures occurrence of the event of getting a total of 8 points. So the favourable cases in
this case is 5.
(4) If a card is drawn at random from a well shuffled pack of 52 cards, then there
are 4 aces which ensums the occurrence of the event of drawing an ace and hence the
favourable number of cases. is 4.
Independent Events :
Two or more events associated with a random experiment are said to be independent
if the occurrences or non-occurrence of one does not affect and is not affected by the
occurrence of the other events.
 Correlation 291
For example, (1) In 3 successive tosses of an unbiased coin, the event of getting a
head in the 3rd toss is independent of getting a head in the 1st and the 2nd toss.
(2) In two success draws of a card one after the other from a well shuffled park of
52 cards, the event of getting a king in the 2nd draw independent of the event of gitting
a king in the 1st draw if the card drawn in the first draw is replaced before the 2nd draw
is made.

Dependent Events :
Two or more events associated with a random experiment are soda to be dependent
if the occurrence of one event affects the occurrence of the other events.
For example, in two successive draws of a card one after the other from a well-
shuffled pack of 52 cards the event of getting a king in the 2nd draw is dependent on
the event of getting a king in the 1st draw if the card drawn in the 1st draw is not replaced
before the 2nd card is drawn.

Classical or Mathematical Approach to Probability :

Classical a mathematical definition of probability was given by James Bernonlli while
attempting to obtain the quantitative measure of uncertainity.

Definition :
If a trial of a random experiment results in ‘n’ equally likely mutually exclusive and
exhaustive cases and ‘m’ of them are favourable to the occurrence of an event ‘A’, then
probability of occurrence of the event ‘A’ denoted by P(A), is given by
Number of favourable cases
P(A) =
Exhaustive cases
m
⇒ P(A) =
n
Since m ≥ 0 and n > 0, so we have
P(A) ≥ 0 ........ (i)
Again since m ≤ n, so we have
P(A) ≤ 1 ......... (ii)
Courbing (i) and (ii) we get
0 ≤ P(A) ≤ 1.

Note :
(1) Probability of an event always lies between 0 and 1.
292 Commercial Mathematics and Statistics

(2) The ratio m : (n – m) is interpreted as the odds in favour of A’ and the ratio
(n–m) : m as ‘the odds against A’.
(3) The non-occurrence of the event ‘A’, denoted by A is classed the comple-
mentary event of A and the happening number of cases favourable the
happening of the event A is n – m. Therefore, the probability of occur-
rence of A , by definition is given by
n− m
P( A ) =
n
m
=1–
n
⇒ P( A ) = 1 – P(A)
⇒ P(A) + P( A ) = 1
that is the sum of the probabilities of occurrence and non-occurence of the
some event is always unity.
(4) When P(A) = 0, the event A is called the impossible event as in this case
m = 0. Again when P(A) = 1, the event ‘A’ is called the certain or sure
event as in this case when m = n the event A is certain to occur.
Example 1 : An unbiased coin is tossed twice. What is the probability of getting (i) a
head and (ii) at least a tail?
Solution : Since two unbiased coins and tossed, the all possible outcomes and given as
follows : HH, HT, TH, TT
∴ Exhaustive number of cases is n = 64
(i) The number of cases favourable to the event of getting a head is m = 2, namely
HT, and TH.
m 2 1
∴ Required probability = = =
n 4 2
(ii) The number of cases favourable to the event of getting at least a tail is m = 3
namely HT, TH and TT.
m 3
∴ Required probability = =
n 4
Example 2 : If a perfect die is thrown at random, find the probability of getting a
number (i) 3 (ii) in between 2 and 5 (iii) greater then 4 and (iv) multiple
of 2.
Solution : Since a perfect die is thrown, the number on its upper face can be any one
of 1, 2, 3, 4, 5 and 6.
∴ Exhaustive number of cases is n = 6
 Correlation 293
(i) The number of cases favourable to event of getting 3 out of 6 cases is m = 1.
m 1
∴ Required probability = =
n 6
(ii) The numbers in between 2 and 5 are 3 and 4.
∴ The number of cases favourable to the event of getting a number in between 2 and
5 that is the number is 3 or 4 is m = 2.
m 2 1
∴ Required probability = = =
n 6 3
(iii) The number of cases favourable to the event of getting a number greater then 4
i.e. 5 or 6 is m = 2.
m 2 1
∴ Required probability = = =
n 6 3
(iv) The number of cases favourable to the event of getting a number which is a
multiple of 2 i.e. 2, 4 and 6 is m = 3.
m 3 1
∴ Required probability = = =
n 6 2
Example 3 : In a throw of two dice together at random, find the probability that
(i) Find die shows 1 (one).
(ii) both the dice show the same number.
(iii) the sum of the numbers on the dice is 7.
(iv) the sum of the numbers on the dice is a multiple of 3.
Solution : A throw of two dice together a may yield any one of the following results :
(1, 1), (1, 2), (1, 3), (1, 4), (1, 5), (1, 6)
(2, 1), (2, 2), (2, 3), (2, 4), (2, 5), (2, 6)
(3, 1), (3, 2), (3, 3), (3, 4), (3, 5), (3, 6)
(4, 1), (4, 2), (4, 3), (4, 4) (4, 5), (4, 6)
(5, 1) (5, 2) (5, 3) (5, 4) (5, 5) (5, 6)
(6, 1) (6, 2) (6, 3) (6, 4) (6, 5) (6, 6)
Exhaustive number of cases is n = 62 = 36
(i) The number of cases favourable to the event where first die shows 1 is m =
6 namely (1, 1), (1, 2), (1, 3), (1, 4), (1, 5) and (1, 6).
294 Commercial Mathematics and Statistics

m 6 1
∴ Required probability = = =
n 36 6
(ii) Favourable cases to the event that both the dice show the same number are (1,
1) (2, 2), (3, 3), (4, 4), (5, 5) and (6, 6) i.e.; m = 6
m 6 1
∴ Required probability = = =
n 36 6
(iii) Favourable cases to the event of getting sum of the two numbers is 7 are (1, 6),
(2, 5), (3, 4), (4, 3), (5, 2) and (6, 1), i.e.; m = 6
m 6 1
∴ Required probability = = =
n 36 6
(iv) Favourable cases to the event that the sum of the two numbers is a multiple of
3 are (1, 2), (1, 5) (2, 1) (2, 4) (3, 3) (3, 6) (4, 2) (4, 5) (5, 1), (5, 4) (6, 3) and (6, 6)
i. e.; m = 12.
m 12 1
∴ Required probability = = =
n 36 3

Example 4 : What is the probability that a leap year selected at random contains 53
Sundays?
Solution : A leap year consists of 366 days which contains 52 complete weeks that is
52 Sundays and 2 days extra. These 2 days may be any one of the follow-
ing combinations :
(i) Monday, Tuesday
(ii) Tuesday, Wednesday
(iii) Wednesday, Thursday
(iv) Thursday, Friday
(v) Friday, Saturday
(vi) Saturday, Sunday
(vii) Sunday, Monday
The leap year to have 53 Sundays, one day of the extra 2 days must be a Sunday.
We see that of the above 7 equally likely cases only cases (vi) and (vii) are in favour
of the 53 of Sundays.
2
∴ Required probability =
7
 Correlation 295
Example 5 : A bag contains 5 white and 3 black balls. A ball is drawn at random from
the bag what is the probability that it is a white ball?
Solution : The bag contains altogether 5 + 3 = 8 balls. A ball can be drawn at random
from 8 balls in 8C1 = 8 ways.
∴ Exhaustive cases = n = 8
The number of cases favourable to the event of drawing a white ball from 5 white
balls is 5C1 = 5 ways ie, l m = 5.

m 5
∴ Required probability= =
n 8
Example : A person draws 3 balls at random from a bag containing 6 red and 5 black
balls.
Find the probability that balls drawn are
(i) all red
(ii) 2 red and 1 black
(iii) 1 red and 2 black
Solution : Total number of balls in the bag = 6 + 5 = 11
Since 3 balls can be drawn from 11 balls in 11
C3 ways. So the exhaustive number
of cases is given by n = 11 C3

∠11
= = 165
∠3∠8
(i) Since all the 3 balls drawn an required to be red, So 3 red balls out of 6 red balls
can be drawn 6 C3 ways.
∴ The favourable number of cases to the event of occurence of 3rd balls is
m = 6 C3

∠6
= = 20
∠3∠3

m 20
∴ Required Probability = =
n 165
(ii) In this case of the 3 balls drawn 2 balls are required to be red and one black ball.
Now 2 red balls can be drawn out of 6 red in 6 C2 ways and 1 black ball can be drawn
296 Commercial Mathematics and Statistics

out of 5 black in 5 C1 ways. Therefore, the total number of ways of drawing 2 red and
1 black ball is 6 C2 ×5 C1
∴ The number of cases favourable to the event of drawing 2 red and 1 black ball is
m = 6 C2 × 5 C1 = 15

m 15
∴ Required probability= =
n 165
(iii) In this case the event is to draw 1 red and 2 black balls.
Now, 1 red out 6 red balls can be drawn 6 C1 ways and 2 black balls can be drawn
in 5 C2 ways. So, the total number of ways of drawing 1 red and 2 black balls is given
by 6 C1 × 5 C2 .
∴ The favourable cases = =
m 6
C1 × 5 C2 = 10

m 10
∴ Required probability = =
n 165
Example 7 : If a card is drawn at random from a well-shuffled pack of 52 cards, find
the probability that the card drawn is
(i) an arc
(ii) a spade
(iii) not a spade
(iv) a diamond or a spade
(v) a king or a queen
Solution : A card can be drawn from a back of 52 well-shuffled cards in 52C1 ways.

∴ Exhaustive cases ==n 52

= C1 52

(i) There are aces in a pack of cards and an ace can be drawn from 4 in 4 C1 ways.

∴ Favourable cases = m = 4 C1 = 4

m 4 1
∴ Required probability = = =
n 52 13
(ii) There are 13 cards of spade in a pack of cards. One card can be drawn from 13
spade cards in 13
C1 ways.
 Correlation 297

∴ Favourable cases to the event of drawing a spade card=

m C1 13 .
13
=

m 13 1
∴ Required probability= = =
n 52 4
(iii) Probability that the card drawn is not a spade is
= 1 – probability that the card drawn is a spade card.
1 3
= 1− =
4 4
Or
The number of cases favourable to the event of drawing a card which is not a
spade card = m= 39
C1= 39
m 39 3
∴ Required probability= = =
n 52 4
(iv) Each of diamond and spade contains 13 cards in a pack. A card of each quit can
be drawn in 13
C1 ways.
∴ The number of cases favourable to the event of drawing a card of diamond or a
spade
==m 13 C1 +13 C1
= 13 + 13 = 26
m
∴ Required probability =
n
26
=
52
1
=
2
(v) Then are altogether 8 cards of king and queen in a pack and each of king and
queen has 4 cards. A card of each of kind and queen can be drawn in 4 C1 ways.
∴ The number of cases favourable cases to the event of drawing a king a queen
==m 4 C1 + 4 C1
= 4+4=8
m 8 2
∴ Required probability= = =
n 52 13
298 Commercial Mathematics and Statistics

Example 8 : An urn contains 20 balls marked with numbers from 1 to 20. It a ball is
drawn at random from the urn, find the probability that the number on the
ball is a multiple of (i) 2 a 5 and (ii) 3 a 5.
Solution : One ball can be drawn out of 20 balls in 20
C1 ways.

∴ Exhaustive cases = n = 20
C1 = 20
(i) The multiples of 2 upto 20 are 2, 4, 6, 8, 10, 12, 14, 16, 18 and 20 and the
multiples of 5 upto 20 are 5, 10, 15, and 20.
So the number of cases favourable to the event of getting a ball with number which
is a (a) multiple 2 is 10 and (b) multiple of 5, is 4.
Since the two numbers 10 and 20 are multiples of both 2 and 5, so the distinct
number of favourables cases to the event that the number on the ball is a multiple 2 or
5 is m = 10 + 4 – 2 = 14
m 12 3
∴ Required probability = =
n 20 5
(ii) The multiples of 3 upto 20 are
3, 6, 9, 12, 15 and 18
and the multiples of 5 upto to are
5, 10, 15, and 20
So the number of favourable cases to the event that the number on the ball is a
multiple of 3 is 6 and the event that the number on the ball is a multiple of 5 is 4. Since
the number 15 is a multiple of both 3 and 5. So the distinct number of cases favourable
to the event of getting a number on the ball which is a multiple of 3 or 5 is m = 6 + 4
–1=9
m 9
∴ Required probability = =
n 20
Limitations of the Classical Approach to probability :
Classical definition of probability is based on two assumptions namely (i) the all
possible outcomes of the random experiment are equally likely and (ii) the exhaustive
cases i.e., the total number of possible outcomes is infinite or unknown. The classical
approach breaks down if any one of the two assumptions does not hold.
Following are a few examples where classical approach fails :
1. What is the probability that a candidate appearing in a certain last will pass?
Since the two possible outcomes viz; success and failure are not equally likely. So,
1
the probability of passing the test by the candidate is certainly not or 50X.
2
 Correlation 299
2. What is the probability that a man jumps from a three storied building will survive?
Since in this case the two possible outcomes name by survival and death associated
with the trial are not equally likely, So the probability of survival of the man of the is not
1
or 50%.
2
3. What is the probability of getting 60 heads in a repeated toss of a perfect coin?
In this case we can not find the probability of occurrence of 50 hands, since the total
number of tosses required to hour 50 heads is not known.
In the following different terminologies used in classical approach an redefined using
set theory :
Sample space : The set of all possible outcomes associated with a given random
experiment is called a sample space. It is also known as the outcome space of the random
experiment. Each possible outcome of the experiment which is also the element of the
sample space is called a sample point. Sample space is usually denoted by ‘S’.
For example :
(1) in a random toss of 3 perfect coins together the sample space containing all
possible outcomes is given by
S = {HHH, HHT, HTH, THH, HTT, THT, TTH, TTT}
(2) In a throw of an unbiased die the sample space of all possible outcomes is given
by
S = {1, 2, 3, 4, 5, 6}
(3) If two unbiased dice are thrown together the sample space consisting of all
possible out comes in given by S = {1, 2, 3, 4, 5, 6}
S = {(1, 1), (1, 2), –––––, (1, 6), (2, 1) –––– (2, 6) ––––
–––– (6, 1), ––––– (6, 6)}
The number of sample points in the sample space ‘S’ is denoted by n(S) which
represents the exhaustive number of cases associated with the random experiment. In the
above examples n(S) = 8 in (1) n(S) = 6 in (2) and n(S) = 36 in (3).
Remark :
1. A sample space is said to be finite/infinite if the number of elements in S is
finite/infinite.
2. A sample space is called discrete if it contains only countably finite a infinite
number of points which can be arranged into a countable sequence like w 1,
w2 ––––. While a sample space containing uncountably infinite number of
points is called a continuous sample space.
300 Commercial Mathematics and Statistics

Event :
Every non-empty subset A of the sample space is called an event.
Simple or Elementary event :
An elementary a simple event A is a non-empty subset consisting of single element
of the sample space S.
For example, the event of gatting ‘1’ on both the upper faces of two dice thrown
simultaneously given by the subset A = {(1, 1)}, is a simple event.
Compound or Composite Event :
A compound a composite event A is a sub-set of elements of the sample space S
containing more than one element or elementary events of S.
For example, in a throw of an unbiased die, the sample space is given by
S = {1, 2, 3, 4, 5, 6}
Now, the event of getting an even number is a compound event given by the sub-set
A = {2, 4, 6}
In this case the event ‘A’ can be decompobed into a number of Simple events as
follows :
A1 = {2}, A2 = {4}, A3 = {6}
Remark : The null bet φ represents the impossible event and the sample space S
represents the certain or sure event.
For example, in a throw of two unbiased dice, the event A1 of getting a sum of the
points on the uppen faces greater then 12 is A1 = {φ}, So, A1 is an impossible event.
Again the event A2 of getting a sum of points greater than or equal to 2 and less than a
equal to 12 is a certain a sum event since A2 = S.
Mutually Exhaustive Events : Two events A and B associated with a given
random experiment are said to be mutually exclusive if
A∩B = φ
For the 3 events A, B and C to be mutually exclusive we must have
A∩B∩C = φ
That is for the events to be mutually exclusive, they must be disjoint events.
For example, in a toss of an unbiased coin at random three times, let us consider the
following events :
A be the event of getting three heads.
B be the event of getting exactly one head.
C be the event of getting three tails.
 Correlation 301
Then the Sample space S, and the events A, B and C an given by the sets :
S = {HHH, HHT, HTH, THH, HTT THT, THT, TTT}.
A = {HHH}, B = {HTT, THT, TTH} and C = {TTT}.
Now find that
A ∩ B = φ
A ∩ C = φ
A ∩ C = φ
and A∩B∩C = φ
Therefore, A, B and C are mutually exclusive events.
In a random throw of a dice let A denote the event of getting an even number and
B denote the event of getting a number which is a multiple of 3, then the sample space
S and the events A and B are given by
S = {1, 2, 3, 4, 5, 6}
A = {2, 4, 6}
and B = {3, 6}
We find that
A∩B = {6} ≠ φ
Therefore, A and B are not mutually exclusive events.

EXERCISE
1. Fill in the blanks :
(i) Theory of probability had its origin in ––––.
(ii) Two events are said to be mutually exclusion (disjoint) when they –––– simul-
taneously.
(iii) Probability is a –––– increase of ––––.
(iv) Probability lies between –––– and –––––.
(v) 10C2 = –––––

(vi) 12C3 = ––––

(vii) The probability that the throw of two dice yields a total of 11 is ––––.
(viii) If a coin is tossed together, the probability of getting either a hand or a tail is
–––.
302 Commercial Mathematics and Statistics

(ix) If P(A) = 0, then A is –––– event.

If p(A)=1, then A is ––– event.
[Ans. : (i) Gambling (ii) can not happen
(iii) quantitative, uncertainty (iv) 0, 1 (v) 45 (vi) 110
2
(vii) (viii) 1 (ix) an impossible (x) certain]
36
2. State True (T) or False (F) :
(i) Mutually exclusive events and those in which events can occur simultaneously.
(ii) Independent events are those in which the occurrence of one does not affect and
is not affected by the other.
2
(iii) The probability of getting 2 or 5 is .
36
(iv) The classical approach to probability is the oldest.
1
(v) In a throw of a die the probability of getting 8 is .
6
(vi) If two events are not mutually exclusive they must be independent events.
(vii) Classical approach to probability fails if the exhausive cases in known.
(viii) Equally likely of events is a condition for measure of probability is classical
approach.
(ix) If an event A can never take place, then P(A) = 0.
[Ans. : (i) F, (ii) T (iii) – F (iv) – T (v) – F
(vi) T (vii) – F (viii) T (ix) T ]
3. Write in short the concept of probability.
4. Define random experiment with examples.
5. Explain the terms with examples :
(i) Trial (ii) Mutually exclusive events (iii) Equally likely events (iv) Exhaustive cases.
6. (a) State the mathematical definitions of probability.
(b) How that probability always his between 0 and 1.
(c) Interpret the values of P(A) = 0 and P(A) = 1.
7. (a) Mention the different approaches to probability.
(b) Define probability using any one of the approaches.
(c) Write the limitations of classical approach.
(d) Give at least one example where probability can not be measured using classical
approach.
 Correlation 303
8. Explain the terms mutually exclusive and independent events. Give one example for
each.
9. Distinguish between the following with examples :
(i) Simple and compound events.
(ii) Independent and dependent events.
(iii) Mutually exclusive and independent events.
10. Three perfect coins are tossed at random, find the probability of occurrences of (i) one
head (ii) at least 2 heads.
3 1
[Ans. : (i) , (ii) ]
8 2
11. What is the probability that a non-leap year selected at random has 53 Sundays?
1
[Ans. : ]
7
12. If two unbiased dice can thrown simultaneously, what is the probability of getting
(i) at least a 6
(ii) a total of 9 points
(iii) a total which is a multiple of 4?
11 1 1
[Ans. : (i) (ii) (iii) ]
36 9 4
13. A bag contains 5 white, 6 red and 4 black balls. Three balls are drown at random
from the bag. Find the probability of drawing
(i) the balls of different colours
(ii) 3 red balls
(iii) 2 white and 1 black ball
(iv) 2 red and 1 white ball.
(v) either 3 white or 3 black balls.
5
120 20 40 15 C3 + 4 C 3 14
[Ans. : (i) (ii) (iii) (iv) (v) = ]
455 455 455 455 455 455
14. What is the probability of getting a number (i) less than 4 and (ii) multiple of 3 in
a single throw of an unbiased die.
1 1
[Ans. : (i) (ii) ]
2 3
304 Commercial Mathematics and Statistics

15. If two cards are drawn at random from a pack of 52 cards, find the probability of
drawing
(i) two aces
(ii) an ace and a queen
(iii) a spade and a hearts
(iv) either 2 aces or 2 spade.
(v) two cards of different coloums :
4
6 16 169 C2 + 13 C2 78
[Ans. : (i) (ii) (iii) (iv) =
1326 1326 1326 1326 1326
26
C1 × 26 C1 676
(v) = ]
1326 1326

––––––