3. Basic Rules

Loading...

From the course by University of London

Quantitative Foundations for International Business

125 оценки

University of London

Quantitative Foundations for International Business

125 оценки

Course 3 of 6 in the Specialization International Business Essentials

This course provides the essential mathematics required to succeed in the finance and economics related modules of the Global MBA, including equations, functions, derivatives, and matrices. You can test your understanding with quizzes and worksheets, while more advanced content will be available if you want to push yourself. This course forms part of a specialisation from the University of London designed to help you develop and build the essential business, academic, and cultural skills necessary to succeed in international business, or in further study. If completed successfully, your certificate from this specialisation can also be used as part of the application process for the University of London Global MBA programme, particularly for early career applicants. If you would like more information about the Global MBA, please visit www.londoninternational.ac.uk/mba This course is endorsed by CMI

From the lesson

Equations

Although financial models are theoretical frameworks, we often use mathematical tools to work with these models. Mathematical models usually consist of a set of equations, which are designed to describe the structure of the model, and whose solution determines the importance of variables. This week, we will look at equations, including the basic terminology, and the rules for solving equations requiring more than one operation.

Equations- An Introduction3:33

1. Variables, Constants and Parameters6:14

2. The Real Number System6:08

3. Basic Rules7:34

4. Like Terms3:12

5. Translate Phrases into Mathematics6:22

6. Working with Business Formulas5:30

7. Ratio and Proportion6:25

Equations- Summary2:42

Meet the Instructors

George Kapetanios
Professor of Finance and Econometrics
King's College London

[MUSIC]

An expression can refer to a single term such as 3b.

But, however, more often an expression refers

to the sum or difference of two or more terms.

Like for example 8x + 9.

z- 1/3 y or

18.4t- 1.

What makes the difference between an expression and an equation?

Is that an expression does not contain an equal sign.

An equation refers to two expression that

are equal to one another, such as x + 5 = 9.

Each equation has a left-hand side, which in our case is x + 5 and

a right-hand side which in our case is 9.

A solution to an equation is the number that can be substituted in

place of the variable, and that makes the equation true.

X = 4 is the solution to our equation.

In fact if we substitute 4 instead of x,

we have got 4 + 5 = 9.

Therefore the resulting equation is true.

The general rule Is that to solve a basic equation for

the unknown, we need to manipulate it.

So that all terms with the variable are on the one side of the equation and

all terms with the only numbers are on the other side of the equation.

According to the addition rule, the same number or

term may be added or subtracted on both sides of the equation.

According to the multiplication rule, both sides of an equation maybe multiplied or

divided by the same non-zero number or term.

For example, in order to solve x- 9 = 15 for

the unknown, we need to take some steps.

Firstly, the variable x must be isolated on the one side of the equation,

and the numbers must be located on the opposite sides.

How to do that?

First of all we need to get rid of 9 and

move the 9 to the other side of the equation by adding 9 to both sides.

And then we have x-9+9=15+9,

which is x+0=24.

Thus the solution is x=24.

Is this true?

Let's confirm that the value of the unknown variable is 24.

We just need to substitute 24 for x in the original equation.

The original equation was x-9=15.

By substituting our solution

we get 24-9=15.

Therefore our solution x=24 is correct because it's 15=15.

Another example,

in order to solve k + 7 = 18.

Firstly, the variable k must be isolated to the one side of the equation and

the numbers must be located on the opposite side.

In order to isolate k on the left-hand side, we need to get rid of 7.

And then in this case we need to do the opposite of adding 7,

which is subtracting 7 from both sides.

Then we have that k + 7 = 18.

k+7-7=18-7.

And then our solution is k=11.

Let's go for another example.

And let's solve 5p = 60.

The term 5p indicates that

multiplication of 5 and p, 5p = 60.

And then in that case, in order to isolate our variable which is p,

on the one side of the equation in the number,

on the other side of the equation, we need to get rid of 5.

We can do it just by applying the operation which is

the inverse of the multiplication that is the division.

Therefore, we solve the equation by dividing both sides by 5.

And then we have 5p/5 = 60/5.

And our solution is p = 12.

Another example,

involves solving y/3 = 9.

The first term indicates y/3.

In this case, in order to isolate our variable, that is y,

on the one side of the equation and the number on the other side of the equation.

We need to get 3 over 3.

We can do it just by applying the operation which is inverse

of the division, that is the multiplication.

Therefore we solve the equation

by multiplying both sides by 3 and

then we have 3 x y/3 = 9 x 3.

And then our solution is y = 27.

[MUSIC]

Ознакомьтесь с нашим каталогом

Присоединяйтесь бесплатно и получайте персонализированные рекомендации, обновления и предложения.

Coursera делает лучшее в мире образование доступным каждому, предлагая онлайн-курсы от ведущих университетов и организаций.

© Coursera Inc., 2018 Все права защищены.

Загрузить из App Store

Загрузить в Google Play