Amoud University: Department of Business in Information Technology
Amoud University: Department of Business in Information Technology
Management Mathematics
LECTURE NOTES
CHAPTER ONE
MATHEMATICAL REVIEW
SECOND SEMESTER
LECTURER: Mr. Abdiqani M. Aden (Msc in Research & Analysis; Msc in Pure Mathematics)
Ratio, Rate and Proportions
A ratio is a comparison of two numbers by division. We can write a ratio for any statement
containing such comparisons. For example; if Oranges cost $10/kg, Apples cost $8/kg and
Pineapples cost $20/kg.
The ratio of the prices can be written as 10:8:20.
Ratio can be expressed as (written) in any of the following ways:
The numbers in a ratio are called the “ terms of the ratio”.
1. Don’t include units of measurement, but the terms of the ratio need to be in the same unit of
measurement before written the ratio.
2. When rates are expressed as ratio’s, the units of measurement are dropped even though the
terms of the ratio are different things. i.e 750km/hr become 75:1.
3. Ratio couldn’t contain decimals, multiply by 100 or other factor to get rid-off the decimal.
4. Ratio should be reduced to lowest terms by dividing a common factor.
Example (1)
Express each of the following ratio’s in its lowest terms.
a) 8 : 4
b) 8 : 6 : 24
c) 3.5 : 5
d) ∶
Example (2)
Ali, Osman and Omer all have the partnership interest in Borama International company in the
ratio of their initial investment o $38,000 , $26,000 and $62,000 respectively. What is the ratio of
Ali’s to Osman’s to Omer’s partnership interest.
RATE
Def: A rate is a ratio of two measurement having different kinds of units. Here are two examples
i.e Miles and hours are different kinds of units, 65 miles in 3 hours.
Hours and dollars, $66 in 12 hours.
When the rate is simplified so that it has denominator of 1, it’s called a unit rate.
An example of unit rate is ; $5 per pound, which means $5 per 1pound.
Example (3)
a) 8 shirts cost $16. Find the cost of each.
b) Abdi works for a fan company. He takes a base salary of $80 for every 6hours he works. Find
his hourly rate of pay
Ahmed and Omer are two friends. Ahmed works for company X and gets $120 for 60 hours per
week and Omar works for company Y and gets $140 for 72 hours per week.
a) Find their hourly rate of pay.
b) Which one has more hourly rate of pay than the other.
Proportions
When two ratio’s are equal, they form a proportion.
= or a : b = c:d
Note: we can solve equations where one term is unknown or in a problem by using this rule.
Example (5)
Solve 5 : 25 = 2 : x
Example (6)
The cost of 8 computers is $3600. How much does 20 computers costs.
Example (7)
Ali and Osman share $18,000 for the ratio 2:3. How much does each get.
Example (8)
If three Business partners invest a total of $86,000 in total in a ratio 5 : 3 : 2. What is the share of
each partner?
Example (9)
In an open share company. Mouse invested 20% o the total shares, Nimco invested 45% of the
total shares and Hirsi invest the rest. If the company made a profit of $12000. How much does
each shareholder will earn.
Example (1)
Write the following fractions in its lowest form.
a)
b)
Example (2)
Combine the following.
a) +
b) −
c) +
d) ×
e) ÷
Decimals
Decimals are used almost every time we go to store and spend money.
Decimals are used in money to show cents.
Note: The key point when adding or subtracting decimals manually, line-up the decimal point.
Example (3)
Combine
a) 14.73 + 12.157
b) 2.67 + 11.2
c) 11.47 – 12.128
Note:
Some decimals go on forever, to simplify their use, we decide on a cut-off point and round
them up or down.
When rounding up or down:
Example (4)
Given the value 243.7684
a) Round to 2 decimal points.
b) Round to 2 significant figures.
Example (5)
When 2.4689 is rounded
a) 2 d.p
b) 3 d.p
c) 2 s.f
d) 3 s.f
Example (6)
Round 3643.73 to the nearest
a) Ten
b) Hundred
c) Thousand
d) Whole number
Percentages
Percentages are commonly used every day around us. We may see headlines like:
o Imports now taxed at 10%.
o 40% off sale this week.
o Earn 6.5% on your money.
o 65% of children are overweight.
An understanding of percentages and how to operate with them is therefore vital.
We use percentages to compare an amount with a whole which we call 100%.
% reads “per cent” which is short for per centum.
Example (2)
Express as fraction in its lowest term.
a) 20%
b) 12 %
Example (3)
Ali, osman and Muna establish a company. Ali invest $2000, Osman invest $2800 and Muna
invest $3600. What percent of the total investment does each invest.
Example (4)
The population of Awdal region were estimated 486,000 people. Out of which 256,000 of the
population are males. What percent of the population are
a) Males
b) Females
Percentage of quantity
To find a certain percentage of quantity, write the percentage as a fraction out of 100 and then
multiply the quantity.
Example (5)
Three brothers establish a company. The first invest 30% of the total investment, the second
invest 45% and third invest the rest. If the total investment was $200,000. How much does each
invested.
Example (7)
63% of Somaliand’s population live in Hargiesa. If the exact number of population living in
Hargiesa is 1,806,000.
a) Find the Total population of Somaliland.
b) If 21% of the Somalilanders live in Borama district. How many actually live in Borama.
END