Mathematics in Business Decisions: -

Business mathematics is mathematics used by commercial enterprises to record and manage business operations. Commercial organizations use mathematics in accounting, inventory management, marketing, sales forecasting and financial analysis. Mathematics typically used in commerce includes elementary arithmetic, elementary algebra, statistics and probability. Business management can be made more effective by the use of more advanced mathematics such as calculus, matrix algebra and linear programming. Another meaning of business mathematics, sometimes called commercial math or consumer math, is a group of practical subjects used in commerce and everyday life. Mathematics is an integral aspect of our daily life. Many executive jobs such as those of business consultants, computer consultants, airline pilots, company directors and a host of others find that they require a solid understanding of basic mathematics and in some cases require detailed knowledge of mathematics. It also plays an important role in business, like business mathematics by commercial enterprises to record and manage business operations. Mathematics typically used in commerce includes, elementary arithmetic such as fractions, decimals and percentages, elementary algebra, statistics and probability. Business management can be made more effective in some cases by the use of more advanced mathematics such as calculus, matrix algebra and linear programming. Commercial organizations use mathematics in accounting, inventory management, marketing, sales forecasting and financial analysis. The practical applications typically include checking accounts, price discounts, markups and markdowns, payroll calculations, simple and compound interest, consumer and business credit

and mortgages. For example, while computational formulas are covered in most study-material on interest and mortgages, the use of prepared tables based on those formulas is also presented and emphasized. Mathematics can provide a powerful support for business decisions. Mathematics provides many important tools for economics and other business fields. 1. The mathematical language by nature is concise and precise. Hence, by using Mathematics we can restate the business theory in a more compact form like the one Stated above in the case of the demand law. In it the involved relationship is simple and Self-explanatory in its mathematical form. 2. The mathematical simplicity enhances the precision of analysis like the calculation of Equilibrium price, equilibrium quantity, price elasticity of demand etc. 3. The mathematical approach can have always the advantage of using the ever-growing unlimited amount of tools and theorems in pure mathematics for their advantage. The Use of Eulers mathematical theorem in business in explaining the distribution of income among the factors of production is the classical example for such an advantage. 4. Once a certain specific mathematical relationship is obtained, the business manager can deduce more useful new propositions. 5. The biggest advantage of mathematical science is its ability to handle large number of variables at a given point of time. For example, in the theory of consumption especially in indifference curve analysis, at the most we can handle only two commodities, one along the x-axis and one along y-axis. But in reality, our consumption basket contains a large number of commodities. Mathematical science can handle this situation by increasing the commodity space which can accommodate any number of commodities in getting the extended equi-marginal principle

Role of statistics in Business decisions: Business statistics is the science of good decision making in the face of uncertainty. It is used in many disciplines such as financial analysis, econometrics, auditing, production and operations including services improvement and marketing research. These sources feature regular repetitive publication of a series of data. This makes the topic of time series especially important for business statistics. It is also a branch of applied statistics working mostly on data collected as a by-product of doing business or by government agencies. It provides knowledge and skills to interpret and use statistical techniques in a variety of business applications. A typical business statistics course is intended for business majors and covers statistical study, descriptive statistics (collection, description, analysis and summary of data), probability and the binomial and normal distributions, test of hypotheses and confidence intervals, linear regression and correlation

Inferential statistics tries to infer from the sample data what the population might think. They can use inferential statistics to make judgments of the probability that an observed difference between groups is a dependable one or one that might have happened by chance in a study. Business Statistics is the science of good decision-making in the face of uncertainty and is used in many disciplines such as financial analysis, econometrics, auditing, production and operations including services improvement, and marketing research. These sources feature regular repetitive publication of series of data. This makes the topic of time series especially important for business statistics. It is also a branch of applied statistics working mostly on data collected as a by-product of doing business or by government agencies. It provides knowledge and skills to interpret and use statistical techniques in a variety of business applications. A typical business statistics

course is intended for business majors, and covers statistical study, descriptive statistics (collection, description, analysis, and summary of data), probability, and the binomial and normal distributions, test of hypotheses and confidence intervals, linear regression, and correlation. Role of Statistics in Economic: Economic statistics is a branch of applied statistics focusing on the collection, processing, compilation and dissemination of statistics concerning the economy of a region, a country or a group of countries. Economic statistics is also referred as a subtopic of official statistics, since most of the economic statistics are produced by official organizations (e.g. statistical institutes, supranational organizations, central banks, ministries, etc.). Economic statistics provide the empirical data needed in economic research (econometrics) and they are the basis for decision and economic policymaking. Econometric: Econometrics is concerned with the tasks of developing and applying quantitative or statistical methods to the study and elucidation of economic principles. Econometrics combines economic theory with statistics to analyze and test economic relationships.