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Learning OutcomesOn successful completion of this

subject students should be able to:

Demonstrate the use of financial

mathematics, measures of centraltendency/dispersion and indices in

business.

Display information in a

graphical/tabular form includingfrequency distributions, networks,

etc.

Demonstrate the use of probability

and confidence intervals in

business.

Explain the concept of present

value and apply discounting

techniques in investment appraisal.

Apply moving averages and

regression analysis in forecasting.

Syllabus1: INTRODUCTION TO FINANCIALMATHEMATICS

Simple and compound interest,annual percentage rate, (APR),depreciation (straight line andreducing balance), discounting,

present value and investmentappraisal, annuities, mortgages,amortization, sinking funds.

Handling formulae, use of positiveand negative numbers, bracketsand powers.

Linear and quadratic equations andgraphs; costs (fixed and variable),break-even analysis, revenue andprofit functions and theirinterpretation.

2: SOURCES OF DATA,PRESENTATION AND USE

Sources, nature, appreciation andprecautions in use.

Role of statistics in businessanalysis and decision- making.

Presentation of data, use of barcharts, histograms, pie charts,graphs, tables, frequencydistributions, cumulativedistributions, ogives and their useand interpretation.

Stage: Formation 1

Subject Title: Business Mathematics and Quantitative MethodsExamination Duration: 3 Hours

AimThe aim of this subject is to ensure that students acquire, understand and apply quantitative techniques that are used in business decision-making.

They develop the ability to interpret the information obtained and present this information in a manner appropriate to a business environment.

Business Mathematics and Quantitative Methodsas an Integral Part of the SyllabusThis is an essential foundation subject for the professional accountant. It develops the mathematical and statistical competence necessary to facilitate

students progression through the Formation and Professional Level examinations in subjects such as Financial Accounting, Corporate Reporting,

Advanced Corporate Reporting, Management Accounting, Managerial Finance, Strategic Corporate Finance and Strategic Performance

Management.

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CL: Competency Level

CL*

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Stage Subject Subject Subject Subject Subject Subject

P2 Strategic Strategic Advanced Strategy Leadership Audit Practice Advanced

Corporate Performance Corporate & Knowledge and Assurance Taxation

Finance Management Reporting Management Services

P1 Managerial Corporate Corporate Laws Auditing

Finance Reporting and Governance

F2 Management Financial Information Taxation

Accounting Accounting Systems

F1 Business Economics & Business Laws

Mathematics & The Business

Quantitative Methods EnvironmentThe above table shows the linkages between Business Mathematics and Quantitative Methods and the subjects highlighted. The

capabilities developed will be built upon in the study of the subjects highlighted above.

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3: MEASURES OF CENTRALTENDENCY AND DISPERSION

Averages and variations forgrouped and ungrouped data.

Measures of location mean,median, mode, percentiles,quartiles.

Measures of dispersion range,

variance, standard deviation, co-efficient of variation.

4: PROBABILITY

Meaning of probability, nature ofprobability distributions, discreteand continuous variables, expectedvalues.

Standard Normal Distribution,confidence intervals, z-score andassociated diagrams.

Use and application of probabilitydistributions.

5: SAMPLING AND SAMPLINGTHEORY

Sampling Methods Simplerandom, stratified, cluster,systematic sampling.

Interval estimation for large andsmall samples; confidence levels,standard error; estimate of sample

size. Hypothesis testing Null and

Alternative hypothesis; descriptionof Type I and Type II errors.

6: REGRESSION ANALYSIS

Simple Linear Regression, scatter-graphs, least squares method.

Co-efficient of determination,correlation co-efficient, rankcorrelation.

Use of linear regression equationin forecasting.

7: TIME SERIES ANALYSIS

Factors influencing time series trend, seasonal, cyclical, irregularvariations.

Smoothing time series by meansof moving averages.

Use of time series in forecasting.

8: INDICES: USE ANDCONSTRUCTION

Simple, aggregate, Laspeyres,Paasche, chain indices.

Change of base period, weighting.

Construction, use andinterpretation of indices.

9: NETWORK ANALYSIS

Activity identification, Relationshipbetween various elements,Construction of simple networks.

Analysis of networks by derivingthe critical and non-critical activities.

Derivation and definition of thecritical path.

Assessment Strategy

Examination ApproachThis subject deals with the collectionand organisation of key business factsinto meaningful data and thepresentation and analysis of this datainto useful information. Questions areframed in a business context, witheach question having a number ofsub-sections. The first sub-sectionmay require quantitative analysiswhile others may require qualitativeanalysis, that is, to provide aninterpretation of the quantitative data.

Examination FormatThe examination is unseen, closedbook and 3 hours in duration.Students are required to answer 5questions out of 6.

Marks AllocationEach question carries 20 marks Thetotal for the paper is 100 marks.

BooklistCore TextsCurwin and Slater / Quantitative Methods forBusiness Decisions / Thomson Learning / ISBN1861525311.

Clare Morris / Quantitative Approaches inBusiness Studies, 6th Edition / ISBN0273657593.

Business basics: quantitative methods, 3rd. ed. /BPP / ISBN 0751721271

Donald Waters / Quantitative Methods forBusiness, 3rd Edition / ISBN 027364694X.

(This title is being reprinted, which may result inextended delivery times).

For greater depth on statistics, the following isrecommended:

W.M. Harper / Statistics, 6th Edition / ISBN0273634267.

Supplementary TextsLes Oakshott / Essential Quantitative Methods forBusiness, Management and Finance, 2ndEdition/ /Palgrave / ISBN 0333963350.

Lucy T. / Quantitative Techniques 6th ed. /Continuum Publications (2002) / ISBN0826458548.

Wisniewski M. / Quantitative Methods forDecision Makers / Financial Times Prentice Hall(2002) / ISBN 0273646842.

Buglear J. / Quantitative Methods for BusinessElsevier (2005) / ISBN 0750658983.

Buglear J. / Stats Means Business / ButterworthHeinemann (2001) / ISBN 0750653647.

Soper J. / Mathematics for Economics andBusiness / Blackwell (2004) / ISBN1405111275.

AccountancyPlus.

CPA students eBulletin.

Useful Websites

(as at date of publication)

www.cpaireland.ie - The Institute of CertifiedPublic Accountants in Ireland.

http://ftp7.freebsd.org/sites/home.ubalt.edu/ntsb

arsh/Business-stat/opre504.htm#rcst - ProfessorHossein Arshams, (FOR, FRSS, FWIF), StatisticalThinking for Managerial Decisions.

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