e-book

Business Mathematics

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Among the Nobel Laureates in Economics more than 60% were
Economists who have done pioneering work in Mathematical
Economics.These Economists not only learnt Higher Mathematics
with perfection but also applied it successfully in their higher pursuits
of both Macroeconomics and Econometrics.

A Mathematical formula (involving stochastic differential
equations) was discovered in 1970 by Stanford University Professor
of Finance Dr.Scholes and Economist Dr.Merton.This achievement
led to their winning Nobel Prize for Economics in 1997.This formula
takes four input variables-duration of the option,prices,interest rates
and market volatility-and produces a price that should be charged for
the option.Not only did the formula work ,it transformed American
Stock Market.

Economics was considered as a deductive science using verbal
logic grounded on a few basic axioms.But today the transformation
of Economics is complete.Extensive use of graphs,equations and
Statistics replaced the verbal deductive method.Mathematics is used
in Economics by beginning wth a few variables,gradually introducing
other variables and then deriving the inter relations and the internal
logic of an economic model.Thus Economic knowledge can be
discovered and extended by means of mathematical formulations.

Modern Risk Management including Insurance,Stock Trading
and Investment depend on Mathematics and it is a fact that one can
use Mathematics advantageously to predict the future with more
precision!Not with 100% accuracy, of course.But well enough so
that one can make a wise decision as to where to invest money.The
idea of using Mathematics to predict the future goes back to two 17th
Century French Mathematicians Pascal and Fermat.They worked
out probabilities of the various outcomes in a game where two dice
are thrown a fixed number of times.

In view of the increasing complexity of modern economic
problems,the need to learn and explore the possibilities of the new
methods is becoming ever more pressing.If methods based on
Mathematics and Statistics are used suitably according to the needs
of Social Sciences they can prove to be compact, consistent and
powerful tools especially in the fields of Economics, Commerce and
Industry. Further these methods not only guarantee a deeper insight
into the subject but also lead us towards exact and analytical solutions
to problems treated.

This text book has been designed in conformity with the revised
syllabus of Business Mathematics(XII) (to come into force from
2005 - 2006)-http:/www.tn.gov.in/schoolsyllabus/. Each topic is
developed systematically rigorously treated from first principles and
many worked out examples are provided at every stage to enable the
students grasp the concepts and terminology and equip themselves
to encounter problems. Questions compiled in the Exercises will
provide students sufficient practice and self confidence.

Students are advised to read and simultaneously adopt pen and
paper for carrying out actual mathematical calculations step by step.
As the Statistics component of this Text Book involves problems based
on numerical calculations,Business Mathematics students are advised
to use calculators.Those students who succeed in solving the problems
on their own efforts will surely find a phenomenal increase in their
knowledge, understanding capacity and problem solving ability. They
will find it effortless to reproduce the solutions in the Public
Examination.

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Ketersediaan

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Informasi Detail

Judul Seri

Volume 1

No. Panggil

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Penerbit

Chennai : Tamilnadu Textbook Corporation., 2006

Deskripsi Fisik

vi, 206 Hlm.

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

2nd ed.

Subjek

EKONOMI

Info Detail Spesifik

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Pernyataan Tanggungjawab

agus

Versi lain/terkait

Lampiran Berkas

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