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Unit 2: FUNCTIONS AND PROGRESSION

Add on for
MS-8 BASIC MATHEMATICS FOR
MANAGEMENT

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Note: This unit is an add-on to the original course material for MS-8: Quantitative Analysis
for Managerial Application. The unit has to be read in conjunction with the original course
material. We recommend that you first scan this material and note on the original text that
you need to study the relevant part of this supplement so that you will not forget to do so as
you study. Then, when you reach that section in your studies, refer back to this supplement.
Objective:
1. To orient and help the readers with more examples on each unit of MS-8 on Public
Systems Management.
2. To further clarify the fundamentals of quantitative techniques, supported by Public
systems examples, which have been discussed in MS-8.
3. To retain sections of this unit of MS-8 that has clear explanation of the Public
Systems Management.

SECTION 2.1. No supplementation is included. Refer to corresponding section of MS-8

SECTION 2.2 DEFINITIONS
Variable: A variable is a quantity that can assume various values. In quantitative analysis,
we often deal with variables like, price, profit, sales, demand, etc. Since the magnitude of a
variable can vary, we therefore use a symbol to represent it. Thus a variable is a symbol (say,
x y, etc.) used to represent any real number. For example, we may use the symbol y to
represent the profit, x to present the demand and so on.
Function: We come across situations in which two or more variables are related. For
example, demand (y) for an item depends on its price (x). We express this dependence or
relationship mathematically by writing y = f(x). This relationship is read as ``Demand (y) is a
function of price (x). To each value of x there corresponds a unique value of another
variable y; we say that y is a function of x and denote it by y = f(x).
The set of values of x for which the value of the function is determined is called the domain
of the function and the set of values of y is called the range of the function.
y is called the dependent variable and x is called the independent variable. If the amount of
taxi fare (y) to be paid depends on the distance covered (x) and relationship is given
y = 10 + 5x
In this case y = f(x) = 10 + 5x

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SECTION 2.3 TYPES OF FUNCTIONS

Constant Function: A constant function is of the form y = f(x) = c where value taken by y
does not depend on x. For example y = 5

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Linear Function: A linear function is of the form

y = f(x) = a + b x
where a is the y intercept, that is y = a if x = 0 and b is the slope of the line. It gives the
change in y for every unit change in x. If b is positive the slope of the straight line is positive
and the line is sloping up. Where as if b is negative the straight line is sloping down.
For example y = 10 + 5x Here a = 10 and b = 5, the various values taken by y for different
values of x are as follows.
1
2
3
4
5
6
x
15 20 25 30
35
40
y
The graph of these points will be a straight line with a positive slope.
Activity (i) Make a plot of the points given above.
(ii) If y = a + bx and y =50 for x = 5 and the slope of the
line is 3 find y for x = 10 .
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Quadratic Function: A quadratic function is of the form
y = ax2 + bx + c, where a 0 and a, b and c are real numbers.
The graph of a quadratic function forms a parabola. The minimum or the maximum of a
parabola is called the vertex.
If a > 0, the vertex is a minimum point and the graph open upwards, when a < 0, the vertex is
the maximum point and the graph open downwards.
Cubic Function: A cubic function is of the form
y = f(x) = ax3 + bx2 + cx + d where a 0 and a ,b, c and d are real numbers.

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Polynomial Function: A function of the form

y = f(x) = anxn + an-1 xn-1 + + a1 x1 +a0
where an, an-1, a1, a0 are real numbers and a n 0 and n is a positive integer, is called a
polynomial of degree n.

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Absolute Function: An absolute function is defined as y = f(x) = |x| where |x| is known as
the absolute value of x given by

x if 0

y = f ( x) = | x | =

x if x < 0

If x= 5, y = 5 and
If x = 5 , y = 5.
Step Function: In this case y takes a constant value for different values of x in an interval
and y takes different values for different intervals of x.
For example:
y : Unit price of a commodity
x : Quantity ordered

8
7

y=
6
5

if
if
if
if

0 < x 50
50 < x 100

100 < x 150

150 < x

Exponential Function: An exponential function is of the form

y = f(x) = k ax where k > 0, a > 0 and a 1.
It is called exponential because the independent variable x appears as an exponent.
For a > 1, it is a sharply increasing function and for 0 < a < 1, the function features a
decreasing curve.
Examples of exponential function: population increase, money invested if compounded,
depreciation and decay etc.
If Rs. 1000 is deposited in an account at 5% per annum compounded annually and interest is
added to the account. The amount at end of 3 years, f(3) in the account is given by
f(3) = 1000 (1.05)3

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Activity A1
A car costing Rs. 3,00,000 depreciates in such a way that each year it is worth 9/10 of what
was worth a year earlier. What is the worth of the car (i) after 2 years and (ii) after x years?
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SECTION 2.4 No supplementation is included. Refer to corresponding section of MS-8

SECTION 2.5 No supplementation is included. Refer to corresponding section of MS-8
SECTION 2.6 No supplementation is included. Refer to corresponding section of MS-8
SECTION 2.7 ARITHMETIC PROGRESSION (A.P.)
An arithmetic progression (A.P.) is a sequence whose term increases (or decreases) by a
constant number called a common difference denoted by d. A.P. is completely determined by
the first term `a and the common difference, d. The standard form of an A.P. is written as
a, a + d, a + 2d, a + 3d,
The nth term of an A.P. is given by Tn = a + (n-1) d, for n = 1,2,3. The sum of first n
terms (Sn ) of an A.P. is given by

n
n
[a + a + (n 1) d ] = [2a + (n 1)d ]
2
2
n
= [ First term + Last term]
2
S
The average value of the first n terms of an A.P. is n
n
S n [a + a + (n 1) d ]
=
n
2
Sn =

Thus the average value of the first n terms of an A.P. equals the average of the first and the
last term.

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Example 5A Consider the sequence

5, 8, 11, 14
It is an A.P. with a = 5 and d = 3 the 10th term of this sequence is
T10 = 5 + (10 1) 3 = 5 + 27 = 32
The sum of the first 10 terms of this A.P. is S10 =

10
[5+32] = 5 37 = 185. The average
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value of the first 10 terms = (5 + 32)/2 = 18.5

Activity E 1
(i) Find the sum of first 20 natural numbers .
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(ii) Find the sum and the average of all natural numbers greater than 20 but less than 160 and
a multiple of 5.
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(iii) Consider the first 15 terms of an A.P.
6, 11, 16, 21, _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Find the total, the average and the median of the first 15 terms .
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(iv) A company starts with a customer base of 15 and every month it increase its customer
base by 6 new customers without losing any customer. Find the number of customers
the company has at the end of one year.
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(v) In the above problem, if each customer produces a business of Rs. 50 per month, find the
total business done by the company at the end of six months.
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SECTION 2.8 GEOMETRIC PROGRESSION (G.P.)

A geometric progression (G.P.) is a sequence whose next term is obtained by multiplying the
previous term by a constant number called common ratio (r). A geometric progression is
completely known if the first term, denoted by `a, and common ratio (r) are known. The
standard form of a G.P. is written as
a, ar, ar2, ar3 .
The nth term Tn is given by : arn-1

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Sum of the first n terms of a G.P.

The sum Sn of first n terms is expressed as
Sn = a + ar + + arn-1
It can be shown that

Sn =

a (1 r n )
for r 1 and r < 1
(1 r )

Sn =

a(r n 1)
for r 1 and r > 1
r 1

For r > 1 we have

If r = 1, G.P. reduces to a, a, ,a, and Sn = na.

If r < 1, the sum of G.P. as the number of terms tends to infinity. That is n Sn ,
equals

a
.
1 r

Example:
2

1
1
Consider the sequence 500, 500 , 500 , . It is a G.P.
2
2
1
with a = 500 and r = . The 10th term of this G.P. is given by
2
9

10-1

T10 = a r

1
= 500 . The sum of the first 5 terms is given by
2
1 5
500 1
2
a (1 r 5 )

S5 =
=
1 r
1
1
2
31
31000
= 500
2 =
32
32

The sum of the infinite G.P. would be

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1
1
1
S = 500 + 500 + 500 + 500 +
2
3
2
500
=
= 1000.
1 r

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Example 8A
A person deposits Rs. 2000 per year in a special account paying 8% per annum. How much
money is in his or her account after 5 years?
Solution At the end of 5 years, Rs. 2000 deposited at the beginning of the first year will
become = 2000 (1 + 0.08)5 = A5.
At the end of year 5, Rs. 2000 deposited in the beginning of year 2 will become
= 2000 ( 1 + 0.08)4 = A4 and so on.
Hence, the total money at the end of 5 years would be
A = A5 + A4 + A3 + A2 + A1
= 2000(1.08)5 + 2000(1.08) 4 + 2000(1.08)3 + 2000(1.08)2 + 2000(1.08)
= 2000[1.08 + (1.08)2 + (1.08)3 + (1.08)4 + (1.08)5]

(1.08) 5 1

1.08 1

= 2000 1.08

(1.08) 5 1
= 2000 1.08
= 12671.86
0.08
Hence the total money in the account at the end of 5 year will be Rs. 12671.86.
Activity F1
Consider the sequence
81, 27, 9, 3
(i) Find the 10th term of this sequence
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(ii) Find the sum of first ten terms of this sequence
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(iii) Consider the first 20 terms of this sequence and find the sum of even number of terms.
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Activity F2
(i) The population of a place is increasing at the rate of 2% every year. Find the population
at end of fifth year if the initial population is 50,000.
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(ii) An item is purchased for Rs. 60,000 and its depreciation is calculated at the rate of 4%.
Find its worth at the end of sixth year.
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SECTION 2.9 SELF ASSESSMENT EXERCISES

1. For the function f(x) = 7x2 + 2x , find
(i) f(0)
(ii) f(-3)
(iii) f(4)
2. Graph and find the domain of
2
if
x<0
f(x) = 2x
3x + 1 if
x 0
3. Graph each function
(i)
f(x) = |x-2| ,

(ii) f(x) = x2 2

4. A woman deposits Rs. 20,000 in a bank that pays 6% interest per year compounded
annually. How much is in her account after 4 years. We assume that interest is
added to her account and not withdrawn.

5. Answer the question posed in problem 4 if the compounding of interest is

done every month.

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SECTION 2.10 No supplementation is included. Refer to corresponding section of MS-8

SECTION 2.11 FURTHER READINGS
Raghavachari, M., 1995. Mathematics of Management: An Introduction; Tata McGraw-Hill
Pub. Comp. Ltd.: New Delhi.

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Mizrahi Abe and Sullivan Michael, 1979. Mathematics for Business and Social Sciences: An
Applied Approach, John Wiley & Sons.

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