Business Mathematics and Statistics

CA_PE - I :: Paper 2: [One paper: Three hours - 100 marks]

Basic knowledge.

To provide basic understanding of important quantitative tools and their elementary application to business problems.

Linear, quadratic, exponential, and logarithmic functions; concept and determination of break - even point.

Arithmetic and geometric progression including series.
Permutations and combinations.
Matrices: meaning and operations; matrix inversion; solution to system of linear equations by matrix inversion as well as pivotal reduction method.
Graph of linear inequalities in two variables.
Elements of differentiation, simple application of differential coefficient, maxima and minima of uni variate functions; rules of integration for indefinite and definite integrals; simple application of integration to accounting and business problems.
Mathematics of finance; simple and compound interest, annuity, sinking fund, present value of an annuity/ amortization, present value concept in capital expenditure, leasing and bonds.

Classification and tabulation of data.
Measures of central tendency and dispersion.
Correlation and regression (linear and bi variate only).
Probability and expected value.
Elements of theoretical distribution: binomial, poisson, normal.
Concept of standard error, interval estimation, determination of sample size, tests of hypotheses for proportions, means including means of paired data, independence of attributes, one population variance, equality of two variances, analysis of variance.

S. Chand & Co Ltd.
1. CA. Foundation Course Mathematics
  - P.N. Arora & S Arora
2. Statistical Methods
  - S.P. Gupta
3. Statistics
  - R.S.N. Pillai & V. Bagavathi
4. C.A. Foundation Course Statistics
  - RN. Arora & S. Arora

Tata McGraw Hill
1. Practical Business Mathematics & Statistics
  - Suranjan Saha