# Paper 4: Fundamental of Business Mathematics and Statistics

**Section A: Fundamentals of Business Mathematics [40 marks]**

**1. Arithmetic**

(a) Ratios and Proportions

(b) Simple and Compound interest
including application of Annuity

(c) Bill Discounting and
Average Due Date

(d) Mathematical reasoning –
basic application

**2. Algebra**

(a) Set Theory and simple
application of Venn Diagram

(b) Variation, Indices,
Logarithms

(c) Permutation and Combinations
– basic concepts

(d) Linear Simultaneous
Equations ( 3 variables only)

(e) Quadratic Equations

(f) Solution of Linear
inequalities ( by geometric method only)

(g) Determinants and Matrices

**3. Calculus**

(a) Constant and variables,
Functions, Limit & Continuity

(b) Differentiability &
Differentiation, Partial Differentiation

(c) Derivatives – First order
and Second order Derivatives

(d) Maxima & Minima –
without constraints and with constraints using Lagrange transform

(e) Indefinite Integrals: as primitives,
integration by substitution, integration by part

(f) Definite Integrals:
evaluation of standard integrals, area under curve

**Section B: Fundamentals of Business Statistics [60 marks]**

**4. Statistical Representation of Data**

(a) Diagrammatic representation
of data

(b) Frequency distribution

(c) Graphical representation
of Frequency Distribution – Histogram, Frequency Polygon, Ogive, Pie-chart

**5. Measures of Central Tendency and Dispersion**

(a) Mean, Median, Mode, Mean
Deviation

(b) Quartiles and Quartile
Deviation

(c) Standard Deviation

(d) Co-efficient of Variation,
Coefficient of Quartile Deviation

**6. Correlation and Regression**

(a) Scatter diagram

(b) Karl Pearson’s Coefficient
of Correlation

(c) Rank Correlation

(d) Regression lines,
Regression equations, Regression coefficients

**7. Index Numbers**

(a) Uses of Index Numbers

(b) Problems involved in
construction of Index Numbers

(c) Methods of construction of
Index Numbers

**8. Time Series Analysis – basic application including Moving Average**

(a) Moving Average Method

(b) Method of Least Squares

**9. Probability**

(a) Independent and dependent
events; Mutually exclusive events

(b) Total and Compound
Probability; Baye’s theorem; Mathematical Expectation

**10. Theoretical Distribution**

(a) Binomial Distribution , Poisson
Distribution – basic application

(b) Normal Distribution –
basic application

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