MODULE ONE

BASIC CONCEPTS OF DIFFERENTIAL CALCULUS AND THEIR APPLICATIONS

1.1 Limits
Calculus is the study of differentiation and integration (this is indicated by the Chinese translation of “calculus”).
Both concepts of differentiation and integration are based on the idea of limit. In this chapter, we use an intuitive
approach to consider limits.
The concept of limit is one idea that allows calculus to solve problems that are impossible to solve with algebra
alone. The combination of the ideas of limit and linear approximation together provide most of the results of
calculus. We are not going to give a precise mathematical definition of limit here, since we believe it is important
that you first develop a feel for the idea through computations and examples before attempting to understand a
precise definition. Here are a couple of examples of problems that require the use of limit.

In this section, we introduce the idea of limit by considering some problems. The first problem is to “find” the
velocity of an object at a particular instant. The idea is related to differentiation. The second problem is to “find”
the area under the graph of a curve (and above the x-axis). The idea is related to integration.

Problem 1: Suppose an object moves along the x-axis and its displacement (in meters) s at time t (in seconds)
is given by s(t) = t2; t ≥ 0:
We want to consider its velocity at a certain time instant, say at t = 2.
𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒 𝑡𝑟𝑎𝑣𝑒𝑙𝑒𝑑
Idea Velocity (or speed) is defined by velocity =
time elapsed
This formula can only be applied to find average velocities over time intervals. We (still) don’t have a definition
for velocity at t = 2.

To define the velocity at t = 2, we consider short time intervals

1
about t = 2, say from t = 2 to t = 2 +2𝑛 Using (the above formula), we can compute the average velocity over
the time intervals [2; 2.5], [2; 2.25] etc.

1
In general, the velocity vn over the time interval [2, 2 + 22 ] is

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It is clear that if n is very large (that is, if the time interval is very short), vn is very close to 4. The velocity,
called the instantaneous velocity, at t = 2 is (defined to be) 4.

Problem2: Find the area of the region that lies under the curve y = x2 and above the x-axis for x between 0 and
1. Idea Similar to the idea in Problem 1, we use approximation to find/define area. First, we divide the interval
[0; 1] into finitely many subintervals of equal lengths:

𝑖−1 𝑖 𝑖−1 2
For each subinterval ⌊ 𝑛 , 𝑛⌋ , we consider the rectangular region with base on the subinterval and height ( 𝑛 )
(the largest region that lies under the curve). If we add the area of these rectangular regions, the sum is smaller
than that of the required region. However, if n is very large, the error is very small and we get a good
approximation for the required area.

The following table gives the sum S n of the areas of the rectangular regions (correct to 3 decimal places) for
several values of n.
In general, if there are n subintervals, the sum Sn is

1
It is clear that if n is very large (so that the error is small), S n is very close to 3

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 1 𝑛(𝑛 + 1)(2𝑛 + 1)
Conclusion The area of the region is 3 . Sum of Squares Formula 12 + 22 + _ _ _ + n2 = 6
Problem 3: Suppose you deposit ₦1000 in an account that pays 10% interest compounded one time
per year. After one year the account contains ₦1100. Now suppose the interest is compounded two
times per year. The amount in the account after one year is now ₦1102. 50. If the interest is
compounded four times per year the amount after one year is ₦1103. 80. Here is a table that gives the
resulting amount in the account after one year as a function of the number of times per year that the
interest is compounded.
No of Times compounded Amount (in Naira)
1 1100
2 1102.50
4 1103.80
12 1104.70
We see that as the number of times we compound the interest increases, the amount in the account at
the end of the year increases. An obvious question is this; does this amount get larger and larger without
bound. For example, if we compound enough times per year might we end up with ₦2000 in the
account at the end of the year? The answer is NO. In fact, no matter how many times we compound
per year we would never end up with more than ₦1,105.20 (approximately).
1.2 LIMITS OF FUNCTIONS
Limits – Conceptually, the limit of a function f(x) at some point x0 simply means that if your value of
x is very close to the value x0, then the function f(x) stays very close to some particular value
Definition: The limit of a function f(x) at some point x0 exists and is equal to L if and only if every
“small” interval about the limit L, say the interval (L−ε, L + ε), means you can find a “small” interval
about x0, say the interval (x0 −δ}, x0 +δ}), which has all values of f(x) existing in the former “small”
interval about the limit L, except possibly at x0 itself
Diagram for Definition of Limit

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Example of Limits: Consider 𝑓(𝑥) = 𝑥 2 − 𝑥 – 6
• Find the limit as x approaches 1
• From either the graph or from the way you have always evaluated this quadratic function that
as x approaches 1, 𝑓(𝑥) approaches −6, since f(1) = −6

Fact: Any polynomial, 𝑝(𝑥), has as its limit at some x0, the value of p(x0)

𝑥 2 −𝑥−6
Example of Limits: Consider 𝑓(𝑥 ) =
𝑥−3
• Find the limit as x approaches 1
• If 𝑥 is not 3, then this rational function reduces to 𝑓(𝑥) = 𝑥 + 2
So as x approaches 1, this function simply goes to 3

Fact: Any rational function, 𝑓(𝑥) = 𝑝(𝑥) 𝑞(𝑥) , 𝑤ℎ𝑒𝑟𝑒 𝑝(𝑥) 𝑎𝑛𝑑 𝑞(𝑥) are polynomials with q(x0)
not zero, then the limit exists with the limit being r(x0)
𝑥 2 −𝑥−6
Example of Limits: Consider f(x) =
𝑥−3
• Find the limit as x approaches 3
• Though 𝑓(𝑥) is not defined at x0 = 3, arbitrarily “close” to 3,
𝑓(𝑥) = 𝑥 + 2
• So as x approaches 3, this function goes to 5
• Its limit exists though the function is not defined at x0 = 3
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 5−𝑥
Consider the function 𝑓(𝑥) =
7+𝑥
5
The value of this function becomes closer and closer to as x gets closer and closer to zero. Hence, we
7
5 5
say that 𝑓(𝑥) approaches 7 as 𝑥 approaches zero. i.e. 𝑓(𝑥) → as 𝑥 → 𝑧𝑒𝑟𝑜.
7
5−𝑥 5
This can be written in a shorter form as lim =
𝑥→0 7+𝑥 7
5
Meaning that the limiting value of 𝑓(𝑥) = as 𝑥 → 0
7
𝑓(𝑥)
Limit can be found directly or by formulas, in most cases when the given function is a quotient
𝑔(𝑥)
, one may find it difficult to find the limit of the function directly because it may give an
0 ∞ 𝑛
unreasonable solution. i.e. solution like , or (where n is a non-zero). Hence the alternative is
0 ∞ ∞
to use formula.
0 ∞ 𝑛
Generally, in limit one should always avoid , or (where n is a non-zero).
0 ∞ ∞

Example: Find the limit of 𝑥 2 − 4 as 𝑥 tends to zero

Solution: in this case the limit can be found directly since the function is a polynomial. Thus
lim 𝑥 2 − 4 = 02 – 4 = 0 – 4 = -4
𝑛→0
This result is definite; hence the limit is -4.

(𝑥 2 −1)
Example: Find the limit of as 𝑥 tends to 1
𝑥−1
Solution: if we attempt to evaluate this limit directly in this case we are going to have an unreasonable
solution as can be seen below.

𝑥 2 −1 12 − 1 0
lim = =0
𝑥 →1 𝑥−1 1−1
All we need to do in order to get a definite solution is to solve by factorization, that is by given the
equivalent of the numerator x2 -1 [i.e., factorizing the numerator to get (𝑥 − 1 )(𝑥 + 1) ]
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 𝑥 2 −1 (𝑥−1)(𝑥+1)
Hence 𝑙𝑖𝑚 = lim
𝑥 →1 𝑥−1 𝑥 →1 𝑥−1

lim 𝑥 + 1 =1+1
𝑛 →1
= 2
𝑥 4 − 16
1. Fill in the tables below to estimate the limit of f(x) = as x approaches 2.
𝑥−2

x 1.9 1.99 1.999 1.9999 2.1 2.01 2.001 2.0001

f(x)
Solution: Filling in the tables is straightforward, but you might need some practice with your particular
calculator, the order in which to punch things in, etc. You don't want to spend valuable test time fumbling with
your calculator! So, make sure you get the hang of these calculations. Double check that you get the entries I
get. When it comes to the limit, we make an educated guess.

x 1.9 1.99 1.999 1.9999 2.1 2.01 2.001 2.0001

f(x) 29.679 31.761 31.976 31.9976 34.481 32.241 32.024 32.002

Properties of Limits
Below are some of the basic properties of limits that will enable us to evaluate the limiting values of a
rather large class of function without resorting to geometric figures or graphs.
1. lim 𝑐 = C where a and c are constants.
𝑥→𝑎
2. lim 𝑐𝑓(𝑥) = 𝑐 lim 𝑓(𝑥)
𝑥 →𝑎 𝑥→𝑎
3. lim[ 𝑓(𝑥) ± 𝑔(𝑥)] = [lim 𝑓(𝑥)]± [ lim 𝑔(𝑥)]
𝑥→𝑎 𝑥→𝑎 𝑥→𝑎
4. lim[ 𝑓(𝑥 ) 𝑔(𝑥)] = [lim 𝑓(𝑥)] [lim 𝑔(𝑥) ]
𝑥→𝑎 𝑥→𝑎 𝑥→𝑎
𝑓(𝑥)
5. lim = lim 𝑓(𝑥) , provided lim 𝑔(𝑥) ≠ 0
𝑥→𝑎 𝑔(𝑥) 𝑥→𝑎 𝑥→𝑎
lim 𝑔(𝑥)
𝑥→𝑎
6. lim 𝑃(𝑥) = P(a) where p is a polynomial
𝑥→𝑎
7. lim [𝑓(𝑥)]n = [lim 𝑓(𝑥)]n
𝑥→𝑎 𝑥→𝑎
𝑛
8. lim √𝑓(𝑥) = 𝑛√ lim 𝑓(𝑥) , where n is a positive integer.
𝑥→𝑎 𝑥→𝑎

Exercise 1a
Evaluate the following limits

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 √𝑥+ℎ− √𝑥 5𝑥+1 4𝑥 2 +3𝑥+2 2𝑥 3 +4𝑥 2 +𝑥
1. lim (𝑥 + 1) (2) lim (3) lim (4) lim (5) lim (6)
𝑥→2 ℎ→0 ℎ 𝑥→∞ 𝑥 𝑥→∞ 2𝑥 3 +5 𝑥→0 𝑥 2 +5𝑥
2−√𝑥−3 𝑥 2 +4𝑎𝑥−5𝑎2 𝑥 3 −𝑎3 50 √𝑥 −1
lim 2 (7) lim (8) lim (9) lim (𝑥 − 1) (10) lim
𝑥→7 𝑥 −49 𝑥→𝑎 𝑥−𝑎 𝑥→𝑎 𝑥−𝑎 𝑥→1 𝑥→1 𝑥−1
3
√𝑥+27−3
11 . lim
𝑥→0 𝑥
1.3 CONTINUOUS LIMIT
Definition: A function 𝑓(𝑥) is continuous at a point x0 if the limit exists at x0 and is equal to f(x0).
For a function to be continuous, the following three properties must be satisfied otherwise it is
discontinuous.
A function is continuous at the point 𝑥 = 𝑎 if
1. lim 𝑓(𝑥) exist
𝑥→𝑎
2. 𝑓(𝑎) 𝑒𝑥𝑖𝑠𝑡
3. lim 𝑓(𝑥) = 𝑓(𝑎)
𝑥→𝑎

Note: Polynomial functions are continuous for all values of x and rational functions are continuous
for all values of x which they are defined, i.e. for all value of x; provided that the denominator is not
zero. Simply we have to say that continuous functions are well defined while undefined functions are
discontinuous.
Example: 𝑓(𝑥) = 2𝑥 5 − 3𝑥 2 + 2
For what values of x are the following functions discontinuous?
Solution: Since this function is a polynomial, hence it is continuous for all values of x.
e.g. 𝑓(−1) = 2(−1)5 − 3(−1)2 + 2 = -2-3+2 = -3
𝑓(0) = 2(0)5 − 3(0)2 + 2 = 2
𝑓(1) = 2(1)5 − 3(1)2 + 2 = 2 – 3 + 2 = 1
𝑓(2) = 2(2)5 − 3(2)2 + 2 = 64 – 12 + 2 = 54
Also, lim(2𝑥 − 3𝑥 + 2) = 2
𝑥→0

Therefore lim 𝑓(𝑥) 𝑓(0)

𝑥→0

lim(2𝑥 5 − 3𝑥 2 + 2)
𝑥→1

Therefore lim 𝑓(𝑥) 𝑓(1)

𝑥→1

1 2𝑥
𝑓(𝑥) =
𝑥 (𝑥−3)(𝑥+2)

Solution: The L.C.M of the denominator 𝑥 (𝑥 − 3)(𝑥 + 2)

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 1 2𝑥 (𝑥−3)(𝑥+2)+2𝑥 2
Therefore
𝑥 (𝑥−3)(𝑥+2) 𝑥(𝑥−3)(𝑥+2)

This function is discontinuous when the denominator is zero i.e

𝑥 (𝑥 − 3)(𝑥 + 2) = 0
x = 0 or x-3=0 or x+2 =0
x =0 or x= 3 or x = -2
Hence the function is discontinuous at point -2, 0 and 3.
Exercise: For what values of x is the following function discontinuous?
𝑥−1
1. 𝑓(𝑥 ) =
𝑥 2 +2𝑥−3
2. For what value of x is the function 𝑔(𝑥) = √𝑥 − 5 continuous?
Differentiation as an Incremental notation of function
The concept “slope of a line” is a number which measures how steep is the line. For a non-vertical line,
its slope is given by
The derivative of a function f(x) at a point x = a is given by the limit
𝑓(𝑎 + ℎ) − 𝑓(𝑎)
𝑓 ′ (𝑎) = lim
ℎ→0 ℎ
The derivative at a is the slope of the tangent line to the graph of f(x) at a.
Once we have a way of taking the derivative of a function at a point, we can take the derivative in
general and get a formula for the derivative at any point.

Example: Find the derivative of f(x) = 𝑥 3

Solution: Use the limit given in the definition above, we have

𝑓(𝑥 + ℎ) − 𝑓(𝑥)
𝑓 ′ (𝑥) = lim
ℎ→0 ℎ

′(
(𝑥 + ℎ)3 − 𝑥 3
𝑓 𝑥 ) = lim
ℎ→0 ℎ
𝑥 3 +3𝑥 2 ℎ+3𝑥ℎ2 +ℎ3 −𝑥 3
= lim
ℎ→0 ℎ

ℎ(3𝑥 2 +3𝑥ℎ+ℎ2 )
= lim
ℎ→0 ℎ

= lim (3𝑥 2 + 3𝑥ℎ + ℎ2 )

ℎ→0

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 = 3𝑥 2
Differentiation
𝑑𝑦
The process of finding is called differentiation. It is called the gradient function and sometimes
𝑑𝑥
referred to as derivative or differential coefficient.
Differentiation from First Principle
Example 1: Differentiate 3𝑥 2 − 𝑥 + 5 with respect to 𝑥 (w.r.t. 𝑥) from the first principle.
Solution: let y= 3𝑥 2 − 𝑥 + 5 , an increment from 𝑥 𝑡𝑜 𝑥 + 𝛿𝑥 produce corresponding increment in
𝑦 𝑡𝑜 𝑦 + 𝛿𝑦 (i.e. in place of 𝑥 𝑖𝑛 𝑦 put𝑥 + 𝛿𝑥.
Hence 𝑦 + 𝛿𝑦 = 3(𝑥 + 𝛿𝑥)2 - (𝑥 + 𝛿𝑥) + 5
≡ 𝑦 = 3(𝑥 + 𝛿𝑥)2 - (𝑥 + 𝛿𝑥) + 5 – 𝑦 0
≡ 𝛿𝑦 = 3(𝑥 2 + 2𝑥𝛿𝑥 + 𝛿𝑥 2 ) − (𝑥 + 𝛿𝑥) + 5 − (3𝑥 2 − 𝑥 + 5)
δ𝑦 = 3𝑥 2 + 6𝑥𝛿𝑥 + 3𝛿𝑥 2 − 𝑥 − 𝛿𝑥 + 5 − 3𝑥 2 + 𝑥 − 5
δ𝑦 = 3𝑥 2 + 6𝑥𝛿𝑥 + 3𝛿𝑥 2 – 𝑥 − 𝛿𝑥 + 5 − 3𝑥 2 + 𝑥 − 5)
δ𝑦 = 6𝑥𝛿𝑥 + 3𝛿𝑥 2 − 𝛿𝑥

𝛿𝑦 6𝑥𝛿𝑥+3𝛿𝑥 2 −𝛿𝑥 (6𝑥+3𝛿𝑥−1)𝛿𝑥

Slope = = =
𝛿𝑥 𝛿𝑥 𝛿𝑥
𝛿𝑦
= 6𝑥 + 3𝛿𝑥 − 1
𝛿𝑥
𝛿𝑦 𝑑𝑦
As 𝛿𝑥 → 0, 3𝛿𝑥 → 0 , 𝑎𝑛𝑑 𝛿𝑥 = 𝑑𝑥

𝑑𝑦
Hence = 6𝑥 + 3(0) − 1 ≡ 6𝑥 − 1
𝑑𝑥
1
Example 2: Differentiate w.r.t 𝑥 from first principle
𝑥2
1
Solution: Let 𝑦=
𝑥2
Any small increase of 𝛿𝑥 𝑖𝑛 𝑥 produces a corresponding increase of 𝛿𝑦 𝑖𝑛 𝑦
1
≡ 𝑦 + 𝛿𝑦 =
(𝑥+𝛿𝑥)2
1
≡ 𝛿𝑦 = -𝑦
(𝑥+𝛿𝑥)2
1 1
≡ 𝛿𝑦 = -
(𝑥+𝛿𝑥)2 𝑥2
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 𝑥 2 −(𝑥+𝛿𝑥)2 𝑥 2 −(𝑥 2 +2𝑥𝛿𝑥−𝛿𝑥 2 )
𝛿𝑦 = =
(𝑥+𝛿𝑥)2 𝑥 2 (𝑥+𝛿𝑥)2 𝑥 2

𝑥 2 −𝑥 2 −2𝑥𝛿𝑥−𝛿𝑥 2 ) −2𝑥𝛿𝑥+𝛿𝑥 2
𝛿𝑦 = =
(𝑥+𝛿𝑥)2 𝑥 2 (𝑥+𝛿𝑥)2 (𝑥)2
𝛿𝑦
𝑑𝑖𝑣𝑖𝑑𝑒 𝑡ℎ𝑟𝑜𝑢𝑔ℎ 𝑏𝑦 𝑑𝑥 (slope = 𝛿𝑥 )

𝛿𝑦 −(2𝑥−𝛿𝑥)𝛿𝑥
=
𝛿𝑥 (𝑥+𝛿𝑥)2 (𝑥)2 𝛿𝑥
𝛿𝑦 −(2𝑥−𝛿𝑥)
=
𝛿𝑥 (𝑥+𝛿𝑥)2 (𝑥)2
𝛿𝑦 𝑑𝑦 −2𝑥−0
As 𝛿𝑥 →0 , = =
𝛿𝑥 𝑑𝑥 (𝑥+0)2 (𝑥 2 )
−2𝑥 −2𝑥
= =
𝑥2 𝑥2 𝑥4
−2
=
𝑥3
Generally, if 𝑦 = 𝑎𝑥 𝑛
𝑑𝑦
= 𝑛𝑎𝑥 𝑛−1 a is a constant.
𝑑𝑥
Differentiation of a Constant
𝑑𝑦
If 𝑦 = 𝑘 𝑤ℎ𝑒𝑟𝑒 𝑘 𝑖𝑠 𝑎 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡 , the =0
𝑑𝑥
In other words, the differentia coefficient of a constant is zero. Consider y =10 which can be written
as 10𝑥 0
𝑑𝑦
Then = 0 x 10𝑥 0−1
𝑑𝑥
= 0 x 10𝑥 −1 = 0
𝑑𝑦
Hence if 𝑦 = 10, =0
𝑑𝑥
𝑑𝑦
Example 3: 𝑖𝑓 𝑦 = 𝑥 2 , = 2𝑥
𝑑𝑥
1 𝑑𝑦 1
𝑖𝑓 𝑦 = , = −𝑥 −1−1 = −𝑥 −2 =
𝑥 𝑑𝑥 𝑥2
𝑑𝑦
𝑖𝑓 𝑦 = 3𝑥 2 − 𝑥 + 5, = 6𝑥 − 1
𝑑𝑥

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 𝑑𝑦
𝑖𝑓 𝑦 = 𝑎𝑥 2 + 𝑏𝑥 + 𝑐 , = 2𝑎𝑥 + 𝑏
𝑑𝑥
𝑑𝑦
𝑖𝑓 𝑦 = 5𝑥 − 6.3𝑥 2 , = 5 − 12.6𝑥
𝑑𝑥
1 𝑑𝑦 −2
𝑖𝑓 𝑦 = , =
𝑥2 𝑑𝑥 𝑥3
Techniques of Differentiation
Differentiation of Polynomials
Given that y = au + bv +cw where a, b and c are constant and u, v and w are function of x then
𝑑𝑦 𝑑𝑢 𝑑𝑣 𝑑𝑤
=𝑎 +𝑏 +𝑐
𝑑𝑥 𝑑𝑥 𝑑𝑥 𝑑𝑥

1
Example4: Differentiate 𝑦 = 3𝑥 4 − 4𝑥 3 + 2𝑥 2 − + 8 w.r.t x
𝑥
𝑑𝑦 𝑑 𝑑 𝑑 𝑑 𝑑
Solution: =3 (𝑥 4 ) − 4 (𝑥 3 ) + 2 (𝑥 2 ) − (𝑥 −1) + (8)
𝑑𝑥 𝑑𝑥 𝑑𝑥 𝑑𝑥 𝑑𝑥 𝑑𝑥

= 3(4𝑥 3 ) − 4(3𝑥 2 ) + 2(2𝑥 ) − (𝑥 −2 ) + 0

= 12𝑥 3 − 12𝑥 2 + 4𝑥 − 𝑥 −2
1
= 12𝑥 3 − 12𝑥 2 + 4𝑥 −
𝑥2
(2𝑥−1)(3𝑥+1)
Example 5: Differentiate 𝑦 = w.r.t x
2𝑥 2
6𝑥 2 +2𝑥−3𝑥−1 6𝑥 2 2𝑥 3𝑥 1
Solution: 𝑦= = 2 + 2 − 2 −
2𝑥 2 2𝑥 2𝑥 2𝑥 2𝑥 2
1 1 𝑥 −1 𝑥 −2
𝑦=3− − = 3− −
2𝑥 2𝑥 2 2 2
𝑑𝑦 𝑥 −2 𝑥 −3
= 0 − (−1 ) − (−2 )
𝑑𝑥 2 2
𝑑𝑦 𝑥 −2 2𝑥 −3
= +
𝑑𝑥 2 2
1 1
= +
2𝑥 2 𝑥 3
Exercise

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Differentiate the following functions w.r.t x
3
(1) 𝑦 = 2 √𝑥 −
√𝑥
(2) 𝑦 = 500 − 3𝑥 + 4𝑥 2 − 15𝑥 3 + 50𝑥 4
1−√𝑥
(3) 𝑦=
𝑥2
Composite Function
The method of differentiating composite function is called the function of a function or the chain rule.
i.e. If y = u where u is a function of x
𝑑𝑦 𝑑𝑦 𝑑𝑢
then = x
𝑑𝑥 𝑑𝑢 𝑑𝑥

Examples: Differentiate with respect to x

1
𝑦=
√3𝑥−4
1
Solution: let 𝑦 = (3𝑥 − 4)−2 and take 𝑢 = 3𝑥 − 4
−1 3
𝑑𝑦 1 −
𝑦=𝑢 2 which gives =− 𝑢 2
𝑑𝑢 2
𝑑𝑢
But u =3x -4 ≡ =3
𝑑𝑥
3
𝑑𝑦 𝑑𝑦 𝑑𝑢 1
then = x = - 𝑢 −2 x 3
𝑑𝑥 𝑑𝑢 𝑑𝑥 2
3
3
- (3𝑥 − 4)−2
2
−3
Or 3
2(3𝑥−4)2
−3
=
2√(3𝑥−4)3

Example2: 𝑦 = (𝑥 2 + 1)4
𝑑𝑢
Solution: take u = 𝑥 2 +1≡ = 2𝑥
𝑑𝑥

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 𝑑𝑦
Then = 𝑢4 , = 4𝑢3
𝑑𝑢
𝑑𝑦 𝑑𝑦 𝑑𝑢
= x = 4𝑢3 x 2𝑥
𝑑𝑥 𝑑𝑢 𝑑𝑥

= 8𝑥𝑢3
= 8𝑥(𝑥 2 + 1)3
Exercise
Differentiate the following function using the composite rule:
1. 𝑦 = (1 − 𝑐𝑥)𝑛
2. 𝑦 = (1 + √𝑥 )3
The Product Rule
Given that y = uv where u and v are each function of x and uv a product then
𝑑𝑦 𝑑𝑢 𝑑𝑣
=𝑣 +𝑢
𝑑𝑥 𝑑𝑥 𝑑𝑥
Example: Differentiate the following with respect to x
𝑦 = (3𝑥 − 2)(𝑥 2 + 5)
Solution: Let u = 3𝑥 − 2, and 𝑣 = 𝑥 2 + 5
𝑑𝑢 𝑑𝑣
Then = 3 𝑎𝑛𝑑 = 2𝑥
𝑑𝑥 𝑑𝑥
𝑑𝑦 𝑑𝑢 𝑑𝑣
But =𝑣 +𝑢
𝑑𝑥 𝑑𝑥 𝑑𝑥

= (𝑥 2 + 5)(3) + (3𝑥 − 2)(2𝑥)

= (3𝑥 2 + 15) + (6𝑥 2 − 4𝑥)
= 9𝑥 2 − 4𝑥 + 15
Exercise: differentiate the following functions using the product rule.

1. 𝑦 = 3𝑥 2 (2𝑥 − 5)4
2. 𝑦 = √𝑥 + 1(𝑥 + 3)2
(𝑥+1)2
3. 𝑦 =
(𝑥 2 +1)3

The Quotient Rule

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 𝑢
Suppose 𝑦 = where u and v are function of x, then
𝑣
𝑑𝑢 𝑑𝑣
𝑑𝑦 𝑣 −𝑢
𝑑𝑥 𝑑𝑥
=
𝑑𝑥 𝑣2

Example: Differentiate the following with respect to x

2𝑥+1
𝑦=
3𝑥−2
Let u = 2𝑥 + 1 and 𝑣 = 3𝑥 − 2
𝑑𝑢 𝑑𝑣
=2, =3
𝑑𝑥 𝑑𝑥
𝑑𝑢 𝑑𝑣
𝑑𝑦 𝑣 𝑑𝑥 −𝑢 𝑑𝑥
=
𝑑𝑥 𝑣2
𝑑𝑦 (3𝑥−2)(2)−(2𝑥+1)(3)
=
𝑑𝑥 (3𝑥−2)2
6𝑥−4−6𝑥−3
=
(3𝑥−2)2
−7
=
(3𝑥−2)2

Exercise
Differentiate the following with respect to x using the Quotient rule.

𝑥−1
1. 𝑦 = √
𝑥+1
√1+3𝑥
2. 𝑦 =
4𝑥
Differentiation of Trigonometric Ratios
There are only two basic rules for differentiating trigonometric functions:

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For differentiating all trigonometric functions these are the only two things that we need to remember.
Of course, all the rules that we have already learnt still work with the trigonometric functions. Thus,
we can use the product, quotient and chain rules to differentiate functions that are combinations of the
𝑠𝑖𝑛 𝑥
trigonometric functions. For example, tan x = and so we can use the quotient rule to calculate
cos 𝑥
the derivative.

Note also that

So, it is also true that

Example 1

Differentiate f(x) = sin2 x.

Solution
f(x) = sin2 x is just another way of writing f(x) = (sin x)2. This is a composite function, with the
outside function being (・)2 and the inside function being sin x.

By the chain rule, f’ (x) = 2(sin x)1 × cos x = 2sin x cos x. Alternatively using the other method
and setting u = sin x we get f(x) = u2 and

Example 2

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Differentiate g(z) = cos (3z2 + 2z + 1).
Solution
Again, you should recognize this as a composite function, with the outside function being cos(.) and
the inside function being 3z2 + 2z + 1. By the chain rule g’(z) = −sin (3z2 +
2z + 1) × (6z + 2) = −(6z + 2) sin (3z2 + 2z + 1).
Example 3

Differentiate
Solution

By the quotient rule

Example 4
Use the quotient rule or the composite function rule to find the derivatives of cot x, sec x, and cosec x.
Solution
These functions are defined as follows:

By the quotient rule

Using the composite function rule

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Exercise: Differentiate the following:

a. cos 3x b. sin (4x + 5) c. sin3 x d. sin x cos x e. x2 sin x

𝑠𝑖𝑛 𝑥 1 1 1
f. cos(x2 + 1) g. h. sin i. tan(√x) j. sin
𝑥 𝑥 𝑥 𝑥
Differentiation of exponential and Logarithmic function.
You may have seen that there are two notations popularly used for natural logarithms, loge and ln.
These are just two different ways of writing exactly the same thing, so that loge x ≡ ln x. In this manual
we will use both these notations.
The basic results are:
𝑑
𝑒𝑥 = 𝑒𝑥
𝑑𝑥
𝑑 1
(log 𝑒 𝑥) =
𝑑𝑥 𝑥
We can use these results and the rules that we have learnt already to differentiate functions which
involve exponentials or logarithms.
Example 1
Differentiate log 𝑒 (𝑥 2 + 3𝑥 + 1).
Solution:
We solve this by using the chain rule and our knowledge of the derivative of log 𝑒 𝑥

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Example 2:

Solution:
This is an application of the chain rule together with our knowledge of the derivative of 𝑒 𝑥

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Exercise 1
Differentiate the following functions w.r.t x

𝜋
(j) 𝑦 = 𝑠𝑖𝑛5𝑥 (k) 𝑦 = sin(7𝑥 2 − 3𝑥 + 1) (l) 𝑦 = 𝑐𝑜𝑠 (6 − 𝑥) (m) 𝑦 = 15𝑥 3 + 7𝑥 2 − 9𝑥 + 500

(n) 𝑦 = 𝑐𝑜𝑠(4𝑥 2 − 5𝑥 + 11)

Applications of Differentiation
BASIC FUNCTIONS
Before studying the application of calculus, let us first define some functions which are used in business
and economics.
Cost Function
The total cost C of producing and marketing x units of a product depends upon the number of units
(x). So, the function relating C and x is called Cost-function and is written as C = C (x).
The total cost of producing x units of the product consists of two parts
(i) Fixed Cost
(ii) Variable Cost i.e. C (x) = F + V (x)

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Fixed Cost: The fixed cost consists of all types of costs which do not change with the level of
production. For example, the rent of the premises, the insurance, taxes, etc.
Variable Cost: The variable cost is the sum of all costs that are dependent on the level of production.
For example, the cost of material, labour cost, cost of packaging, etc.
Demand Function
An equation that relates price per unit and quantity demanded at that price is called a demand function.
If 'p' is the price per unit of a certain product and x is the number of units demanded, then we can write
the demand function as x = f(p) OR p = g (x) i.e., price (p) expressed as a function of x.
Revenue function
If x is the number of units of certain product sold at a rate of ₦. 'p' per unit, then the amount derived
from the sale of x units of a product is the total revenue. Thus, if R represents the total revenue from x
units of the product at the rate of ₦. 'p' per unit then R= p.x is the total revenue
Thus, the Revenue function R (x) = p.x. = x. p (x)
Profit Function
The profit is calculated by subtracting the total cost from the total revenue obtained by selling x units
of a product. Thus, if P (x) is the profit function, then P(x) = R(x) - C(x)

Break-Even Point
Break-even point is that value of x (number of units of the product sold) for which there is no profit or
loss. i.e. At Break-Even point P (x) = 0 or R (x) - C(x)= 0 i.e. R (x) = C ( x )
Let us take some examples.
Example 1:
For a new product, a manufacturer spends ₦ 100,000 on the infrastructure and the variable cost is
estimated as ₦150 per unit of the product. The sale price per unit was fixed at ₦200.
Find (i) Cost function (ii) Revenue function (iii) Profit function, and (iv) the break-even point.
Solution: (i) Let x be the number of units produced and sold
Then cost function C ( x) = Fixed cost + Variable Cost
= 100,000 + 150 x
(ii) Revenue function = p.x = 200 x
(iii) Profit function P ( x ) = R ( x )-C( x )
=200 x - (100,000+150 x )
=50 x -100,000
(iv) At Break-Even point P (x) = 0
50 x -100,000 = 0
50 x =100,000
100,000
x = 50
x =2000
Hence x = 2000 is the break-even point.
i.e. When 2000 units of the product are produced and sold, there will be no profit or loss.
Example 2 A Company produced a product with ₦18000 as fixed costs. The variable cost is
estimated to be 30% of the total revenue when it is sold at a rate of ₦20 per unit. Find the total
revenue, total cost and profit functions.
Solution : (i) Here, price per unit (p) = ₦ 20
Total Revenue R ( x ) = p. x = 20 x where x is the number of units sold.
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 30
(ii) Cost function C ( x) =18000 + 100R(x)
30
=18000 + 100 x 20x
=18000+6x
(iii) Profit function P ( x )= R ( x )-C( x )
=20x -(18000+6x)
= 20x -6x -18000
=14 x-18000
Example 3:
Find the turning points of the function 𝑦 = 𝑥 3 − 3𝑥 + 2 and distinguish between them.
Solution:
We need to find where the turning points are, and whether we have maximum or minimum points.
𝑑𝑦
First of all, we carry out the differentiation and set equal to zero. This will enable us to look for
𝑑𝑥
any stationary points, including any turning points.
𝑦 = 𝑥 3 − 3𝑥 + 2
𝑑𝑦
= 3𝑥 2 − 3
𝑑𝑥
𝑑𝑦
At stationary points, =0 and so
𝑑𝑥
3𝑥 2 − 3 =0
3(𝑥 2 − 1) =0 (factorizing)
3(𝑥 − 1)(𝑥 + 1) =0
It follows that either 𝑥 − 1 = 0 𝑜𝑟 𝑥 + 1 = 0 𝑎𝑛𝑑 𝑠𝑜 𝑒𝑖𝑡ℎ𝑒𝑟 𝑥 = 1 𝑜𝑟 𝑥 = −1
𝑑𝑦
What we have just gotten now are the x coordinates of the points on the graph when 𝑑𝑥 =0 and that is
the stationary points. We need the y coordinates by substituting the value of x in the original
function 𝑦 = 𝑥 3 − 3𝑥 + 2.

In summary, we have located two stationary points and these occur at (1, 0) and (−1, 4). Next we
need to determine whether we have maximum or minimum points, or possibly neither maxima nor
minima.

We have seen that the first derivative

𝑑𝑦
= 3𝑥 2 − 3
𝑑𝑥

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 𝑑2 𝑦
Differentiating this we can find the second derivative: = 6𝑥 We now take each point in turn
𝑑𝑥 2
and use our test.
𝑑2 𝑦
When x =1: = 6𝑥 = 6(1) = 6. We are not really interested in this value. What is most important
𝑑𝑥 2
to us is the sign. Because it is positive we know we are dealing with a minimum point.
𝑑2 𝑦
When x = -1: = 6𝑥 = 6(−1) = −6. We are not really interested in this value. What is most
𝑑𝑥 2
important to us is the sign. Because it is negative we know we are dealing with a maximum point.
Finally, to finish this off we produce a quick sketch of the function now that we know the precise
locations of its two turning points (See Figure 2.2).

Figure 2.2 Graph of 𝑦 = 𝑥 3 − 3𝑥 + 2 showing the turning points.

Exercise
Locate the position and nature of any turning points of the following functions.
1
(1.)𝑦 = 2 𝑥 2 − 2𝑥 (2.) 𝑦 = 𝑥 2 + 4𝑥 + 1 3.𝑦 = 12𝑥 − 2𝑥 2 (4.) 𝑦 = −3𝑥 2 + 3𝑥 + 1
(5.) 𝑦 = 𝑥 4 + 2 (6.) 𝑦 = 7 − 2𝑥 4 (7.) 𝑦 = 2𝑥 3 − 9𝑥 2 + 12𝑥 (8.)𝑦 = 4𝑥 3 − 6𝑥 2 − 72𝑥 + 1
(10) A manufacturing company finds that the daily cost of producing x items of a product is given by
C(x)=210x+7000. (i) If each item is sold for ₦350, find the minimum number that must be produced
and sold daily to ensure no loss. (ii) If the selling price is increased by ₦35 per piece, what would be
the break-even point.

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 MODULE TWO
INTEGRATION OR ANTI-DIFFERENTIATION
What we are beginning to learn now is called integral calculus. It will be mostly about adding an
incremental process to arrive at a “total”. It will cover three major aspects of integral calculus: In this
module we will be looking at integrals. As with derivatives this module will be devoted almost
exclusively to finding and computing integrals. There are really two types of integrals that we’ll be
looking at in this module: Indefinite Integrals and Definite Integrals. The first half of this module is
devoted to indefinite integrals and the last half is devoted to definite integrals. As we will see in the
last half of the module if we don’t know indefinite integrals we will not be able to do definite integrals.
Applications areas of integration will also be covered in this module.
Definitions
Given a function, f (x) , an anti-derivative of f (x) is any function F (x) such that F’ (x) = f (x)
If F’(x) is any anti-derivative of f ( x) then the most general anti-derivative of f ( x) is called an indefinite
integral and denoted, ∫ 𝑓(𝑥)𝑑𝑥 = 𝐹(𝑥) + 𝑐, c is any constant.
In this definition the ∫ 𝑖𝑠 called the integral symbol, 𝑓(𝑥) is called the integrand, 𝑥 is called the
integration variable and the “c” is called the constant of integration.
The process of finding the indefinite integral is called integration or integrating f(x). If we need to be
specific about the integration variable we will say that we are integrating f(x) with respect to x.
Example 1 Evaluate the following indefinite integral.
∫ 𝑥 4 + 3𝑥 − 9 𝑑𝑥

Solution
The integration is carried out by increasing the power (exponent) of the variable with which we are
integrating (integration variable), then use the new power to divide the [Link] indefinite integral
is,
1 5 3 2
∫ 𝑥 4 + 3𝑥 − 9 𝑑𝑥 = 𝑥 + 𝑥 − 9𝑥 + 𝐶
5 2
A couple of warnings are now in order. One of the more common mistakes that students make with
integrals (both indefinite and definite) is to drop the dx at the end of the integral. This is required! Think
of the integral sign and the dx as a set of parentheses. You already know and are probably quite
comfortable with the idea that every time you open a parenthesis you must close it.
With integrals, think of the integral sign as an “open parenthesis” and the dx as a “close parenthesis”.
If you drop the dx it won’t be clear where the integrand ends. Consider the following variations of the
above example.

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You only integrate what is between the integral sign and the dx. Each of the above integrals end in a
different place and so we get different answers because we integrate a different number of terms each
time. In the second integral the “-9” is outside the integral and so is left alone and not integrated.
Likewise, in the third integral the “3x − 9” is outside the integral and so is left alone.
Properties of the Indefinite Integral
1.∫ 𝑘 𝑓(𝑥)𝑑𝑥 = 𝑘 ∫ 𝑓(𝑥)𝑑𝑥 , where k is any number. So, we can factor multiplicative constants out
of indefinite integrals.
2. ∫ −𝑓(𝑥)𝑑𝑥 = − ∫ 𝑓(𝑥)𝑑𝑥 , where k = -1
3. ∫ 𝑓(𝑥) ± 𝑔(𝑥)𝑑𝑥 = ∫ 𝑓(𝑥)𝑑𝑥 ± 𝑔(𝑥)𝑑𝑥 In other words, the integral of a sum or difference of
functions is the sum or difference of the individual integrals. This rule can be extended to as many
functions as we need.
Notice that when we worked the first example above we used the first and third property in the
discussion. We integrated each term individually, put any constants back in and the put everything back
together with the appropriate.
Example 1 Evaluate each of the following indefinite integrals.
a) ∫5𝑡 3 −10𝑡 −6 + 4 dt
Solution: There’s not really a whole lot to do here other than use the first two formulas from the
beginning of this section. Remember that when integrating powers (that aren’t -1 of course) we just
add one onto the exponent and then divide by the new exponent.
1 1
∫5𝑡 3 −10𝑡 −6 + 4 dt =5 (4 ) 𝑡 4 − 10 (−5) 𝑡 −5 + 4𝑡 + 𝑐
5
= 4 𝑡 4 + 2𝑡 4 + 4𝑡 + 𝑐

b) ∫ 𝑥 8 + 𝑥 −8 𝑑𝑥
1 1
= 9 𝑥 9 + −7 𝑥 −7 +C
𝑥9 𝑥 −7
= − +𝐶
9 7
4 7 1
c) ∫ 3 √𝑥 3 + + 𝑑𝑥
𝑥5 6√𝑥
In this case there isn’t a formula for explicitly dealing with radicals or rational expressions.
However, just like with derivatives we can write all these terms so they are in the numerator
and they all have an exponent. This should always be your first step when faced with this kind
of integral just as it was when differentiating.

4 7 1 3 1 −1
∫ 3 √𝑥 3 + + 𝑑𝑥 = ∫ 3 𝑥 4 + 7𝑥 −5 + 𝑥 2 𝑑𝑥
𝑥 5 6 √𝑥 6

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 7 1
1 7 −4 1 1
= 3 7⁄ 𝑥
4 − 𝑥 + (1 )𝑥 + 𝐶
2
4 4 6 ⁄2
7 1
12 7 −4 1
= 𝑥 −
4 𝑥 + 𝑥 +𝐶
2
7 4 3
Exercise:
Evaluate each of the following integrals
3 4𝑥 10 −2𝑥 4 +15𝑥 2
(1)∫ 𝑑𝑦 (2) ∫(𝑤 + √𝑤 ) (4 − 𝑤 3 )𝑑𝑤 (3) ∫ 𝑑𝑥 (4)
𝑥3
∫ 𝑒 5𝑥+2 𝑑𝑥 (5) ∫ 5𝑥 𝑑𝑥 (6) ∫ 6√𝑥 𝑑𝑥
The Definite Integral
Definite integrals can be recognised by numbers written to the upper and lower right of the integral
sign. This leaflet explains how to evaluate definite integrals.
1. Definite integrals

The quantity is called the definite integral of f(x) from a to b. The numbers a and b
are known as the lower and upper limits of the integral. To see how to evaluate a definite integral
consider the following example.

Solution
First of all, the integration of 𝑥 2 is performed in the normal way. However, to show we are dealing
with a definite integral, the result is usually enclosed in square brackets and the limits of integration
are written on the right bracket:

Then, the quantity in the square brackets is evaluated, first by letting x take the value of the upper
limit, then by letting x take the value of the lower limit. The difference between these two results
gives the value of the definite integral:

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Note that the constants of integration cancel out. This will always happen, and so in future we can
ignore them when we are evaluating definite integrals.
Example 2
3
Find ∫−2 𝑥 3 𝑑𝑥
Solution:

Example 3

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Application of Integration in Economics and Commerce
The cost function and average cost function from marginal cost function:
𝑑𝐶
If C is the cost of producing an output x then marginal cost function MC =
𝑑𝑥
Using integration as reverse process of differentiation we obtain,
Cost function, C = ∫(𝑀𝐶 ) 𝑑𝑥 + 𝑘
Where k is the constant of integration which can be evaluated if the fixed cost is known. If the fixed
cost is not known, then k = 0.

𝐶
Average cost function, AC = ,𝑥≠0
𝑥
Example 1
The marginal cost function of manufacturing x units of a commodity is 6 + 10𝑥 − 6𝑥 2 . Find the
total cost and average cost, given that the total cost of producing 1 unit is 15.

Example 2

STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 27 BY PRINCE MOJEED ADENIYI ASADE

The marginal cost function of manufacturing x units of a commodity is 3𝑥 2 − 2𝑥 + 8. If there is no
fixed cost find the total cost and average cost functions.
Solution:
Given that,
MC = 3𝑥 2 − 2𝑥 + 8
C = ∫(𝑀𝐶) 𝑑𝑥 + 𝑘
= ∫(3𝑥 2 − 2𝑥 + 8)𝑑𝑥 + 𝑘
= 𝑥 3 − 𝑥 2 + 8𝑥 + 𝑘
No fixed cost  k = 0
 Total cost, C = 𝑥 3 − 𝑥 2 + 8𝑥
𝐶
Average cost, AC = , 𝑥 ≠ 0
𝑥
2
=𝑥 − 𝑥 + 8
The revenue function and demand function from marginal revenue function
𝑑𝑅
If R is the total revenue function when the output is x, then marginal revenue MR = . Integrating
𝑑𝑥
with respect to ‘x’ we get Revenue function, R = ∫(𝑀𝑅)𝑑𝑥 + 𝑘
where ‘k’ is the constant of integration which can be evaluated under given conditions.
If the total revenue R = 0, when x = 0,
𝑅
Demand function, p = ,𝑥 ≠ 0
𝑥
Example3: If the marginal revenue for a commodity is MR =9 − 6𝑥 2 + 2𝑥, find the total revenue
and demand function.

STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 28 BY PRINCE MOJEED ADENIYI ASADE

 MODULE THREE
SETS, PERMUTATIONS AND COMBINATIONS
SET THEORY
A set may be thought of as a collection of things or objects of any type. These objects are called elements or
members of the set. We refer to the set as an entity in its own right and often denote it by A, B, C or D, etc. A
set is usually described by listing or describing its members inside curly brackets. For example, when we write
A = {1, 2, 3} we mean that the objects belonging to the set A are the numbers 1, 2, 3 (or, equivalently, the set A
consists of the numbers 1, 2 and 3). Equally (and this is what we mean by `describing' its members), this set
could have been written as
A = {n | n is a whole number and 1 ≤ n ≤ 3}.
Here, the symbol | stands for `such that'. Often, the symbol `:' is used instead, so that we might write
A = {n | n is a whole number and 1 ≤ n ≤ 3}.
As another example, the set
B = {n: x is a reader of this guide}
has as its members all of you (and nothing else). When x is an object in a set A, we write x ϵ A and say `x belongs
to A' or `x is a member of A'.
ɵ
The set which has no members is called the empty set and is denoted by . The empty set may seem like a
strange concept, but it has its uses. The set containing everything is termed the universal set and is usually written
as U.

Set-theoretic equalities
There are a number of general laws about sets which follow from the definitions of set theoretic operations,
subsets, etc. A useful selection of these is shown below. They are grouped under their traditional names. These
equations below hold for any sets X, Y, Z:
1. Idempotent Laws
(a) X ∪ X = X (b) X ∩ X = X ‘The union or intersection of a set with itself does not change the set.’
2. Commutative Laws
(a) X ∪ Y = Y ∪ X (b) X ∩ Y = Y ∩ X ‘The order in which sets are combined with union or intersection is irrelevant’
3. Associative Laws
(a) (X ∪ Y) ∪ Z = X ∪ (Y ∪ Z) (b) (X ∩ Y) ∩Z = X ∩ (Y ∩ Z) ‘The selection of 3 or more sets for grouping in a union
or intersection is immaterial.’
4. Distributive Laws
(a) X ∪ (Y ∩ Z) = (X ∪ Y) ∩ (X ∪ Z) (b) X ∩ (Y ∪ Z) = (X ∩ Y) ∪ (X ∩ Z)
5. Identity Laws
(a) X ∪ ∅ = X (c) X ∩ ∅ = ∅
(b) X ∪ U = U (d) X ∩ U = X
6. Complement Laws
(a) X ∪ X’ = U (c) X ∩ X’ = ∅
(b) (X’)’ = X (d) X – Y = X ∩ Y’
7. DeMorgan’s Laws
(a) (X ∪ Y)’ = X’ ∩ Y’ (b) (X ∩ Y)’ = X’ ∪ Y’
8. Consistency Principle
(a) X ⊆ Y iff X ∪ Y = Y (b) X ⊆ Y iff X ∩ Y = X
STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 29 BY PRINCE MOJEED ADENIYI ASADE
Subsets
If A and B are two sets and all the elements of A also belong to B then it can be said that:
A is contained in B
or A is a subset of B
or B contains A:
These expressions are all equivalent and may be symbolically written as A⊆ B.
For example, {1, 2, 5} ⊆ {1, 2, 4, 5, 6, 40} (Be aware that some textbooks use ⊂ where we use ⊆.)

The order of sets: finite and infinite sets

A set is said to be finite if it contains only a finite number of elements; otherwise the set is an infinite set. The
number of elements in a set A is called the order of A and is denoted by |A| or n (A) or nA.
Example 1: The set of all integers is an infinite set.
Example 2: The set of days in a week has order 7.

Union and intersection of sets

Given two sets A and B, the union A ∪ B is the set whose members belong to A or B (or both A and B) that is,
A ∪ B = { x | x ϵ A or x ϵ B }
Example 3: If A = {1, 2, 3, 5} and B = {2, 4, 5, 7}, then A ∪ B = {1, 2, 3, 4, 5, 7}.
Similarly, we define the intersection: A ∩ B to be the set whose members belong to both A and B A ∩ B = {x |
x ϵ A and x ϵ B}. If sets A and B have no elements in common, i.e. A ∩ B = ɵ, then A and B are termed disjoint
sets.
Differences and complements
If A and B are sets then the difference set A − B is the set of all elements of A which do not belong to B. If B is
a subset of A, then A − B is sometimes called the complement of B in A.
The predicate notation defines this operation as follows:

Complements
When A is the universal set one may simply refer to the complement of B to denote all things not in B. The
complement of a set A is denoted as AC or Ᾱ.
Note: De Morgan's Theorems
(A ∩ B)C = AC ∪ BC
(A ∪ B)C = AC ∩ BC
The above relationships are most easily conformed by using a Venn diagram to indicate that both sides of the
above equations amount to the same areas of the diagram.

Power Set
The power set P(S) of a given set S is the set of all subsets of S: P(S) = { A | A  S}.
• Example – For S= {1,2,3} P(S)={,{1},{2},{3},{1,2},{1,3},{2,3},{1,2,3}}
• If a set A has n elements, then P(s) has 2 n elements.
Venn diagrams
Often the relationships that exist between sets can best be shown using a Venn diagram. To construct a Venn
diagram, we let a certain region, usually a rectangle, represent the universal set. This rectangle is often implied
by the constraints of the page and only in those circumstances where its boundary is important is the rectangle
drawn (see the diagrams below for example). Individual sets are then represented by regions, often circles, within

STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 30 BY PRINCE MOJEED ADENIYI ASADE

this rectangle. One can then easily depict intersections, unions, complements, etc. on the diagram. Figure 1.1
below shows Venn diagram examples.

In Figure 1.1 the triple set Venn diagram is particularly useful and can be used to show, for example, that
n(A⋃B⋃C) = n(A) + n(B) + n(C) - n(A⋂B) - n(A⋂C) - n(B ⋂C) + n(A⋂B⋂C)
Example 4 A publishing company has three main magazine publications A, B and C. A market survey on the
reading habits of 200 people surveyed revealed.
84 read magazine A
111 read magazine B
73 read magazine C
59 read A and B
53 read B and C
32 read A and C
20 read all three magazines.
How many of those people surveyed (a) Read just one of the magazines? (b) Read just two of the magazines?
(c) Read none of the magazines?
Solution:
This problem can be solved by putting the information into a Venn diagram, as shown in Figure 1.2.
The number of elements in each region might be calculated in a number of ways.
Perhaps starting from the centre and working outwards is the best idea here. Since 20 people read A, B and C
and 32 read A and C then 12 must read A and C but not B, etc. Hence from the diagram we have the answers:
(a) 13 + 19 + 8 = 40
(b) 39 + 12 + 33 = 84
(c) 56

Figure 1.2: Venn diagram for Example 4

A
13 B
39
19
20
12 33

56
8

C
STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 31 BY PRINCE MOJEED ADENIYI ASADE
Example 5 If n(X ⋃ Y ⋃ Z) = 25; n(X ⋂ Y ⋂ Z) = 5; n(X ⋂ Y ) = 8; n(Y ⋂ Z) = 9; n(X ⋂ Y C ⋂ ZC) = 2 and
n(X) = n(Y ) = n(Z), what is n(X)?
Solution:
From the given information, we can construct the following Venn diagram in Figure 1.3 below; Letting x, y
and z be the number of members in the unknown areas we have the following equations:
(1): 25 = 2 + 3 + 5 + x + y + 4 + z ⇒ x + y + z = 11
Furthermore, since n(X) = n(Y) = n(Z) we have
10 + x = 12 + y = 9 + x + z
which means that z = 1 and x = y + 2. Substituting in (1), we have x + x - 2 + 1 = 11 ⇒ x = 6
Hence n(X) = 2 + 3 + 5 + 6 = 16.

X Y
2 3
y

5
x 4

z
Z

Figure 1.3: Venn diagram for Example 6

Identity and cardinality
Two sets are identical if and only if they have exactly the same members. So, A = B iff for every x, x ∈ A ⇔ x ∈ B.
For example, {0, 2, 4} = {x| x is an even natural number less than 5}
From the definition of identity follows that there exists only one empty set; its identity is fully determined by
its absence of members.

Cartesian product.
Suppose we have two sets A and B and we form ordered pairs by taking an element of A as the first member of
the pair and an element of B as the second member. The Cartesian product of A and B, written A × B, is the set
consisting of all such pairs. The predicate notation defines it as:
A × B =def {<x,y>| x ∈ A and y ∈ B}
What happens if either A or B is ∅? Suppose A = {a,b}. What is A × ∅?
Here are some examples of Cartesian products:
Let K = {a,b,c} and L = {1,2}, then
K × L = {<a,1>,<a,2>,<b,1>,<b,2>,<c,1>,<c,2>}
L × K = {<1,a>,<2,a>,<1,b>,<2,b>,<1,c>,<2,c>}
L × L = {<1,1>,<1,2>,<2,1>,<2,2>}

Permutations and Combinations

Permutations and Combinations is concerned with determining the number of different ways of arranging and
selecting objects out of a given number of objects, without actually listing them. There are some basic counting
techniques which will be useful in determining the number of different ways of arranging or selecting objects.
The two basic counting principles are given below:

Multiplication principle (Fundamental Principle of Counting)

STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 32 BY PRINCE MOJEED ADENIYI ASADE

Suppose an event E can occur in m different ways and associated with each way of occurring of E, another event
F can occur in n different ways, then the total number of occurrence of the two events in the given order is m ×
n.
Addition principle
If an event E can occur in m ways and another event F can occur in n ways, and suppose that both cannot occur
together, then E or F can occur in m + n ways.
Permutations A permutation is an arrangement of objects in a definite order.
Permutation of n different objects: The number of permutations of n objects taken all at a time, denoted by
the symbol nPn, is given by
n
Pn = n!
where n! = n(n-1) (n-2) ….3.2.1 read as n factorial
The number of permutations of n objects taken r at a time, where 0 < r ≤ n, denoted by nPr, is given by
n 𝑛!
Pr = (𝑛−𝑟)!

When repetition of objects is allowed: The number of permutations of n things taken all at a time, when
repetition of objects is allowed is nn .The number of permutations of n objects, taken r at a time, when
repetition of objects is allowed, is nr.
Permutations when the objects are not distinct: The number of permutations of n objects of which p1 are of
one kind, p2 are of second kind, ..., pk are of kth kind and the rest if any, are of different kinds is
𝑛!
𝑝1!𝑝2!….𝑝𝑘!

Combinations On many occasions we are not interested in arranging but only in selecting r objects from given
n objects. A combination is a selection of some or all of a number of different objects where the order of
selection is immaterial. The number of selections of r objects from the given n objects is denoted by nCr , and
is given by
n 𝑛!
Cr = 𝑟!(𝑛−𝑟)!

NB:
1. Use permutations if a problem calls for the number of arrangements of objects and different orders are to be
counted.
2. Use combinations if a problem calls for the number of ways of selecting objects and the order of selection is
not to be counted.
Example 1
In a class, there are 27 boys and 14 girls. The teacher wants to select 1boy and 1 girl to represent the class for a
function. In how many ways can the teacher make this selection?
Solution Here the teacher is to perform two operations:
(i) Selecting a boy from among the 27 boys and
(ii) Selecting a girl from among 14 girls.
The first of these can be done in 27 ways and second can be performed in 14 ways. By the fundamental
principle of counting, the required number of ways is 27 × 14 = 378.
STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 33 BY PRINCE MOJEED ADENIYI ASADE
Example 2
(i) How many numbers are there between 99 and 1000 having 7 in the unit’s place?
(ii) How many numbers are there between 99 and 1000 having at least one of their digits 7?
Solution
(i) First note that all these numbers have three digits. 7 is in the unit’s place. The middle digit can be any one of
the 10 digits from 0 to 9. The digit in hundred’s place can be any one of the 9 digits from 1 to 9. Therefore, by
the fundamental principle of counting, there are 10 × 9 = 90 numbers between 99 and 1000 having 7 in the unit’s
place.
(ii) Total number of 3-digit numbers having at least one of their digits as 7 = (Total numbers of three-digit
numbers) – (Total number of 3-digit numbers in which 7 does not appear at all).
= (9 × 10 × 10) – (8 × 9 × 9)
= 900 – 648 = 252.
Example 3 In how many ways can this diagram be coloured subject to the following two conditions?
(i) Each of the smaller triangle is to be painted with one of three colours: red, blue or green.
(ii) No two adjacent regions have the same colour.

Solution These conditions are satisfied exactly when we do as follows: First paint the central triangle in any one
of the three colours. Next paint the remaining 3 triangles, with any one of the remaining two colours.
By the fundamental principle of counting, this can be done in 3 × 2 × 2 × 2 = 24 ways.

Example 4 In how many ways can 5 children be arranged in a line such that (i) two particular children of them
are always together (ii) two particular children of them are never together.
Solution
(i) We consider the arrangements by taking 2 particular children together as one and hence the remaining 4 can
be arranged in 4! = 24 ways. Again, two particular children taken together can be arranged in two ways.
Therefore, there are 24 × 2 = 48 total ways of arrangement.
(ii) Among the 5! = 120 permutations of 5 children, there are 48 in which two children are together. In the
remaining 120 – 48 = 72 permutations, two particular children are never together.

Example 5 If all permutations of the letters of the word AGAIN are arranged in the order as in a dictionary.
What is the 49th word?
Solution Starting with letter A, and arranging the other four letters, there are 4! = 24 words. These are the first
4!
24 words. Then starting with G, and arranging A, A, I and N in different ways, there are = 12 words.
2!1!1!
Next the 37th word starts with I. There are again 12 words starting with I. This accounts up to the 48th word.
The 49th word is NAAGI.
STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 34 BY PRINCE MOJEED ADENIYI ASADE
Likely Examinations Questions
1 Suppose A = {1, 2, 3, 5} and B = {2, 4, 5, 7}. Find A ∩ B.
2 If A = {a, b, c, d, e, f}, B = {a, e, g, h, j} and C = {b, c, f, g} what are the following subsets?
(a) A ∪ B
(b) B ∩ C
(c) A ∩ BC
(d) A ∩ (B ∪ C).
3. Construct Venn diagrams involving A, B and C to show each of the following subsets:
(a) A ⋃ (B ⋂ CC)
(b) (A ⋃ B ⋃C)C
(c) B ⋃ AC
(d) (A ⋃ B) ⋂ (B ⋃C).

4. An insurance company insures 20,000 businesses against the perils of fire, flood and storm damage. During a
10-year period 99% of these businesses make no claim at all against the insurance company. No business claims
for more than one type of peril at a time, but of those businesses that have made one or more claims during the
stated 10-year period:
40% have claimed for fire damage
50% have claimed for flood damage
38% have claimed for storm damage
10% have claimed on different occasions for fire and storm damage
15% have claimed on different occasions for storm and flood damage
5% have claimed on different occasions for fire and flood damage.
(a) How many businesses have claimed for all three types of damages (fire, flood and storm) on separate
occasions? (b) Assuming no business has claimed for the same type of damage more than once, how many
claims in total have been made?

5. In a large company, out of 20 management trainees, 16 are male, 15 are graduates and 10 have had at least
three years' experience. Determine:
(a) the minimum number of males with at least three years' experience
(b) the maximum number of female graduates who have had at least three years' experience.

6. In a fruit feast among 200 students, 88 chose to eat apples, 73 ate mangoes, and 46 ate pear. 34 of
them had eaten both apples and mangoes, 16 had eaten apples and pear, and 12 had eaten mangoes
and pear, while 5 had eaten all 3 fruits. Determine, how many of the 200 students ate none of the 3
fruits, and how many ate only mangoes?

7. In how many ways 3 mathematics books, 4 history books, 3 chemistry books and 2 biology books can be
arranged on a shelf so that all books of the same subjects are together?

8.A student has to answer 10 questions, choosing at least 4 from each of Parts A and B. If there are 6 questions
in Part A and 7 in Part B, in how many ways can the student choose 10 questions?

[Link] married couples are to be seated in a row having six seats in a cinema hall. If spouses are to be seated
next to each other, in how many ways can they be seated? Find also the number of ways of their seating if all
the ladies sit together.
[Link] a small village, there are 87 families, of which 52 families have at most 2 children. In a rural development
program, 20 families are to be chosen for assistance, of which at least 18 families must have at most 2 children.
In how many ways can the choice be made?

STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 35 BY PRINCE MOJEED ADENIYI ASADE

 MODULE FOUR
BINOMIAL EXPANSION AND APPLICATION
A binomial is a polynomial with two terms. We're going to look at the Binomial Expansion Theorem, a shortcut
method of raising a binomial to a power. An expression consisting of two terms, connected by + or – sign is
1 1 4
called a binomial expression. For example, x + a, 2x – 3y, 𝑥 − 𝑥 3 , 7𝑥 − 5𝑦 are all binomial expressions.
If a and b are real numbers and n is a positive integer, then (a + b)n = nC0 an + nC1 an – 1 b1 + nC2 an – 2 b2 + ... ...
𝑛!
+ nCr an – r br + ... + nCn bn, where nCr = 𝑟!(𝑛−𝑟)! for 0 ≤ r ≤ n
(x+y)0 = 1
(x+y)1 = x + y
(x+y)2 = x2 + 2xy + y2
(x+y)3 = x3 + 3x2y + 3xy2 + y3
(x+y)4 = x4 + 4x3y + 6x2y2 + 4xy3 + y4
(x+y)5 = x5 + 5x4y + 10x3y2 +10x2y3 + 5xy4 + y5
There are several things that you hopefully have noticed after looking at the expansion
• There are n+1 terms in the expansion of (x+y)n
• The degree of each term is n
• The powers on x begin with n and decrease to 0
• The powers on y begin with 0 and increase to n
• The coefficients are symmetric
•
Pascal's Triangle
Pascal's Triangle, named after the French mathematician Blaise Pascal is an easy way to find the coefficients of
the expansion. Each row in the triangle begins and ends with 1. Each element in the triangle is the sum of the
two elements immediately above it.
0 1
1 1 1
2 1 2 1
3 1 3 3 1
4 1 4 6 4 1
5 1 5 10 10 5 1
6 1 6 15 20 15 6 1
7 1 7 21 35 35 21 7 1

Binomial Expansion Theorem

Okay, now we're ready to put it all together.
The Binomial Expansion Theorem can be written in summation notation, where it is very compact and
manageable.

Remember that since the lower limit of the summation begins with 0, the 7th term of the sequence is actually the
term when k=6.
When you go to use the binomial expansion theorem, it's actually easier to put the guidelines from the top of this
page into practice. The x starts off to the nth power and goes down by one each time, the y starts off to the
0th power (not there) and increases by one each time. The coefficients are combinations.

Binomial Expansion Example:

Expand (3x - 2y )5
Start off by figuring out the coefficients. Remember that these are combinations of 5 things, k at a time, where
k is either the power on the x or the power on the y (combinations are symmetric, so it doesn't matter).
C(5,0) = 1; C(5,1) = 5; C(5,2) = 10; C(5,3) = 10; C(5,4) = 5; C(5,5) =1 (This is pronounced as 5 combination 0)
STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 36 BY PRINCE MOJEED ADENIYI ASADE
Now throw in the 3x and -2y terms.
1(3x)5(-2y)0 + 5(3x)4(-2y)1 + 10(3x)3(-2y)2 + 10(3x)2(-2y)3 + 5(3x)1(-2y)4 + 1(3x)0(-2y)5

Raise the individual factors to their proper powers.

1(243x5)(1) + 5(81x4)(-2y) + 10(27x3)(4y2) + 10(9x2)(-8y3) + 5(3x)(16y4) + 1(1)(-32y5)

Simplify each term to get the final answer.

243x5 - 810x4y + 1080x3y2 - 720x2y3 + 240xy4 - 32y5

Finding the kth term

Find the 9th term in the expansion of (x-2y)13
Since we start counting with 0, the 9th term is actually going to be when k=8. That is, the power on the x will
13-8=5 and the power on the -2y will be 8. The coefficient is either C(13,8) or C(13,5), combinations are
symmetric, so it doesn't matter.

C(13,8) * (x)5 (-2y)8 = 1287 (x5) (256y8) = 329472x5y8

Combinations
A combination is an arrangement of objects, without repetition, and order not being important. Another
definition of combination is the number of such arrangements that are possible. The n and r in the formula stand
for the total number of objects to choose from and the number of objects in the arrangement, respectively.

Each element in Pascal's Triangle is a combination of n things. The value for r begins with zero and works its
way up to n. Or, because of symmetry, you could say it begins with n and works its way down to 0.
Let's consider the n=4 row of the triangle.
4C0 = 1, 4C1 = 4, 4C2 = 6, 4C3 = 4, 4C4 = 1
Notice that the 3rd term is the term with the r=2. That is, we begin counting with 0. This will come into play
later.

BINOMIAL THEOREM

The (r + 1)th term or general term is given by

Tr + 1 = nCr an – r br
Some particular cases
If n is a positive integer, then
(a + b)n = nC0 an b0 + nC1 an b1 + nC2 an – 2 b2 + ... + nCr an – r br + ... + nCn a0 bn eqn. 1
In particular
1. Replacing b by – b in (i), we get
(a – b)n = nC0 an b0 – nC1 an – 1 b1 + nC2 an – 2 b2 + ... + (–1)r nCr an – r br + ... + (–1)n nCn a0 bn ... eqn. 2
2. Adding (1) and (2), we get
(a + b)n + (a – b)n = 2 [nC0 an b0 + nC2 an – 2 b2 + nC4 an – 4 b4 + ... ]
= 2 [terms at odd places]
3. Subtracting (2) from (1), we get
(a + b)n – (a – b)n = 2 [nC1 an – 1 b1 + nC3 an – 3 b3 + ... ]
= 2 [sum of terms at even places]
4. Replacing a by 1 and b by x in (eqn.1), we get
(1 + x)n =nC0 x0 + nC1 x + nC2 x2 + ... + nCr xr + ... + nCn – 1 xn – 1 + nCn xn
i.e. (1 + x)n = ∑𝑛𝑟=0 nCr xr
5. Replacing a by 1 and b by –x in ... (1), we get
(1 – x)n = nC0 x0 – nC1 x + nC2 x2 ... + nCn–1 (–1)n–1 xn-1 + nCn (–1)n xn
STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 37 BY PRINCE MOJEED ADENIYI ASADE
 i.e., (1 – x)n = ∑𝑛𝑟=0(−1)𝑛 nCr xr
Solved Examples
1 2𝑟
Example 1 Find the rth term in the expansion of ( 𝑥 + 𝑥)
1 𝑟−1
Solution We have Tr = 2rCr – 1 (x)2 r – r + 1(𝑥)
2𝑟!
= (𝑟−1)!(𝑟+1)! 𝑥 𝑟+1−𝑟+1
2𝑟!
= (𝑟−1)!(𝑟+1)! 𝑥 2
Example 2 Expand the following (1 – x + x2)4
Solution Put 1 – x = y. Then
(1 – x + x2)4 = (y + x2)4
= 4C0 y4 (x2)0 + 4C1 y3 (x2)1 + 4C2 y2 (x2)2 + 4C3 y (x2)3 + 4C4 (x2)4
= y4 + 4y3 x2 + 6y2 x4 + 4y x6 + x8
= (1 – x)4 + 4x2 (1 – x)3 + 6x4 (1 – x)2 + 4x6 (1 – x) + x8
= 1 – 4x + 10x2 – 16x3 + 19x4 – 16x5 + 10x6 – 4x7 + x8
𝑥3 2 9
Example 3 Find the 4th term from the end in the expansion of (2 − 𝑥 2 )
Solution Since rth term from the end in the expansion of (a + b)n is (n – r + 2)th term from the beginning.
Therefore 4th term from the end is 9 – 4 + 2, i.e., 7th term from the beginning, which is given by
𝑥3 3 −2 6 𝑥 9 64 9 𝑋 8 𝑋 7 64 672
T7 = 9C3 ( ) ( 2 ) = 9C3 . = X = 3
2 𝑥 8 𝑥 12 3 𝑋 2𝑋1 𝑥 𝑥
4 4
2 2
Example 4 Evaluate: (𝑥 − √1 − 𝑥 ) + (𝑥 + √1 − 𝑥 2 )
2

Solution Putting √1 − 𝑥 2 = y, we get

The given expression = (x2 – y)4 + (x2 + y)4 = 2 [x8 + 4C2 x4 y2 + 4C4 y4]
4𝑋3
= 2 [𝑥 8 + 2 𝑋 1 𝑥 4 . (1 − 𝑥 2 ) + (1 − 𝑥 2 )2 ]
= 2 [x8 + 6x4 (1 – x2) + (1 – 2x2 + x4]
= 2x8 – 12x6 + 14x4 – 4x2 + 2
2 12
Example 5 Find the coefficient of x11 in the expansion of [𝑥 3 − ]
𝑥2
Solution Let the general term, i.e., (r + 1)th contain x11 .
2 𝑟
We have Tr + 1 = 12Cr (x3)12 – r (− 𝑥 2 )
= 12Cr x36 – 3r – 2r (–1)r 2r
= Cr (–1)r 2r x36– 5r
12

Now for this to contain x11, we observe that 36 – 5r = 11, i.e., r = 5

Thus, the coefficient of x11 is
12 12 𝑋 11 𝑋 10 𝑋 9 𝑋 8
C5 (–1)5 25 =− 𝑋 32
5𝑋4𝑋3𝑋2
= –25344

Exercise
1. Expand (x + 2)5
2. Expand (3x - y)3
3. Expand (2x - 3)4
1 11
4. Using the binomial theorem, find the first four terms of the expansion (2𝑎 − 𝑥
)
Write the binomial expansion.
5. (x + y)6 6. (x + 2)4 7. (x - 2y)5 8. (3x - 4y)3 9. (x2 + 3y)4 10. (4x2 - 2)6 11. (x3 - y3 )3 12. (2x4 + 5y2 )5
13. Find the coefficient of x3 in the expansion of (x + 3)5

STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 38 BY PRINCE MOJEED ADENIYI ASADE

 MODULE FIVE
PROBABILITY & ITS APPLICATION
CONCEPTS OF PROBABILITY
A probability is a number that reflects the chance or likelihood that a particular event will occur.
Probabilities can be expressed as proportions that range from 0 to 1, and they can also be expressed as
percentages ranging from 0% to 100%. A probability of 0 indicates that there is no chance that a
particular event will occur, whereas a probability of 1 indicates that an event is certain to occur. A
probability of 0.45 (45%) indicates that there are 45 chances out of 100 of the event occurring.

The concept of probability can be illustrated in the context of a study of obesity in children 5-10 years
of age who are seeking medical care at a particular pediatric practice. The population (sampling frame)
includes all children who were seen in the practice in the past 12 months and is summarized below.

Unconditional Probability
If we select a child at random (by simple random sampling), then each child has the same probability
(equal chance) of being selected, and the probability is 1/N, where N=the population size. Thus, the
probability that any child is selected is 1/5,290 = 0.0002. In most sampling situations we are generally
not concerned with sampling a specific individual but instead we concern ourselves with the probability
of sampling certain types of individuals. For example, what is the probability of selecting a boy or a
child 7 years of age? The following formula can be used to compute probabilities of selecting
individuals with specific attributes or characteristics.
1. What is the probability of selecting a boy?
2. What is the probability of selecting a 7 year-old?
3. What is the probability of selecting a boy who is 10 years of age?
4. What is the probability of selecting a child (boy or girl) who is at least 8 years of age?

1. If we select a child at random, the probability that we select a boy is computed as follows
P(boy) = 2,560/5,290 = 0.484 or 48.4%.
2. The probability of selecting a child who is 7 years of age is P(7 years of age) = 913/5,290 =
0.173.
3. P(boy who is 10 years of age) = 418/5,290 = 0.079.
4. P(at least 8 years of age) = (846 + 881+ 918)/5,290 = 2,645/5,290 = 0.500
Conditional Probability
Each of the probabilities computed in the previous section (e.g., P(boy), P(7 years of age)) is an
unconditional probability, because the denominator for each is the total population size (N=5,290)
reflecting the fact that everyone in the entire population is eligible to be selected. However, sometimes
it is of interest to focus on a particular subset of the population (e.g., a sub-population). For example,
suppose we are interested just in the girls and ask the question, what is the probability of selecting a 9-
STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 39 BY PRINCE MOJEED ADENIYI ASADE
year-old from the sub-population of girls? There is a total of NG=2,730 girls (here NG refers to the
population of girls), and the probability of selecting a 9 year old from the sub-population of girls is
written as follows:

P(9 year old | girls) = # persons with characteristic / N

This also means that 16.9% of the girls are 9 years of age. Note that this is not the same as the
probability of selecting a 9-year old girl from the overall population, which is P(girl who is 9 years of
age) = 461/5,290 = 0.087.

What is the probability of selecting a boy from among the 6 year olds?
Answer
P(boy | 6 years of age) = 379/892 = 0.425. Thus 42.5% of the 6 year old are boys (57.5% of the 6 year
old are girls).

Independence
In probability, two events are said to be independent if the probability of one is not affected by the
occurrence or non-occurrence of the other. This definition requires further explanation, so consider the
following example.
Consider data from a population of N=100 men who had both a PSA test and a biopsy for prostate
cancer. Suppose we have a different test for prostate cancer. This prostate test produces a numerical
risk that classifies a man as at low, moderate or high risk for prostate cancer. A sample of 100 men
underwent the new test and also had a biopsy. The data from the biopsy results are summarized below.

The probability that a man has prostate cancer given he has a low risk is: P(Prostate Cancer | Low Risk)
= 10/60 = 0.167.
The probability that a man has prostate cancer given he has a moderate risk is: P(Prostate Cancer |
Moderate Risk) = 6/36 = 0.167.
The probability that a man has prostate cancer given he has a high risk is: P(Prostate Cancer | High
Risk) = 4/24 = 0.167.

Note that regardless of whether the hypothetical Prostate Test was low, moderate, or high, the
probability that a subject had cancer was 0.167. In other words, knowing a man's prostate test result
does not affect the likelihood that he has prostate cancer in this example. In this case, the probability
that a man has prostate cancer is independent of his prostate test result.

Demonstrating Independence
Consider two events, call them A and B (e.g., A might be a low risk based on the "prostate test", and
B is a diagnosis of prostate cancer). These two events are independent if P(A | B) = P(A) or if P(B | A)
= P(B).

STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 40 BY PRINCE MOJEED ADENIYI ASADE

To check independence, we compare a conditional and an unconditional probability: P(A | B) = P(Low
Risk | Prostate Cancer) = 10/20 = 0.50 and P(A) = P(Low Risk) = 60/120 = 0.50. The equality of the
conditional and unconditional probabilities indicates independence.
Independence can also be tested by examining whether P(B | A) = P(Prostate Cancer | Low Risk) =
10/60 = 0.167 and P(B) = P(Prostate Cancer) = 20/120 = 0.167. In other words, the probability of the
patient having a diagnosis of prostate cancer given a low risk "prostate test" (the conditional
probability) is the same as the overall probability of having a diagnosis of prostate cancer (the
unconditional probability).
Example:
The following table contains information on a population of N=6,732 individuals who are classified as
having or not having prevalent cardiovascular disease (CVD). Each individual is also classified in terms
of having a family history of cardiovascular disease. In this analysis, family history is defined as a first
degree relative (parent or sibling) with diagnosed cardiovascular disease before age 60.

Are family history and prevalent CVD independent? Is there a relationship between family history and
prevalent CVD? This is a question of independence of events.
Let A=Prevalent CVD and B = Family History of CVD. (Note that it does not matter how we define A
and B, for example we could have defined A=No Family History and B=Free of CVD, the result will
be identical.) We now must check whether P(A | B) = P(A) or if P(B | A) = P(B). Again, it makes no
difference which definition is used; the conclusion will be identical. We will compare the conditional
probability to the unconditional probability as follows:

Since these probabilities are not equal, family history and prevalent CVD are not independent.
Individuals with a family history of CVD are much more likely to have prevalent CVD.

Mutual Exclusivity
The concept of mutually exclusivity applies if the occurrence of one event prohibits the occurrence of
another event. For example, assume you have two tasks on your to-do list. Both tasks are due today
and both will take the entire day to complete. Whichever task you choose to complete means the other
will remain incomplete. These two tasks can’t have the same outcome. Thus, these tasks are mutually
exclusive.
Dependent Events
A second concept refers to the impact two separate events have on each other. Dependent events are
those in which the occurrence of one event affects -- but doesn't prevent -- the probability of the other
occurring. For example, assume a five-year goal is to purchase a new building and pay the full purchase
price in cash. The expected funding source is investment returns from excess sales revenue investments.
STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 41 BY PRINCE MOJEED ADENIYI ASADE
The probability of the purchase happening within the five-year period depends on whether sales
revenues meet projected expectations. This makes these dependent events.
Interdependent Events
Interdependent events are those in which the occurrence of one event has no effect of the probability
of another event. For example, assume consumer demand for hairbrushes is falling to an all-time low.
The concept of interdependence says that declining demand for hairbrushes and the probability that
demand for shampoo will also decline share no relationship. In the same way, if you intend to purchase
a new building by investing personal funds instead of relying on investment returns from excess sales
revenues, the purchase of a new building and sales revenues share no relationship. Thus, these are now
interdependent events.
Example: A fair die is rolled and the outcome noted. Determine whether each of the following
outcomes is: certain to happen, certain not to happen, likely to happen, likely not to happen.
• rolling a 2 • probability = 1/6 likely not to happen
• probability = 1/6 + 1/6 = 2/6 likely not to
• rolling a number less than 3
happen
Possible rolls: • rolling a 7 • not possible - certain not to happen
• rolling a number less than 10 • certain to happen
1, 2, 3, 4, 5, 6 • rolling a number greater than 1 • probability = 5/6 likely to happen
• rolling a factor of 6 (1,2,3,6) • probability = 4/6 likely to happen
• rolling a number that is an integer • certain to happen
• rolling a negative number • certain not to happen

Bayes's Theorem
Bayes, who was a reverend who lived from 1702 to 1761 stated that the probability you test positive
AND are sick is the product of the likelihood that you test positive GIVEN that you are sick and the
"prior" probability that you are sick (the prevalence in the population). Bayes’ theorem allows one to
compute a conditional probability based on the available information.

P(A) is the probability of event A

P(B) is the probability of event B
P(A|B) is the probability of observing event A if B is true
P(B|A) is the probability of observing event B if A is true.
Wiggins's explanation can be summarized with the help of the following table which illustrates the
scenario in a hypothetical population of 10,000 people:

In this scenario P(A) is the unconditional probability of disease; here it is 100/10,000 = 0.01.
STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 42 BY PRINCE MOJEED ADENIYI ASADE
P(B) is the unconditional probability of a positive test; here it is 198/10,000 = 0.0198..
What we want to know is P (A | B), i.e., the probability of disease (A), given that the patient has a
positive test (B). We know that prevalence of disease (the unconditional probability of disease) is 1%
or 0.01; this is represented by P(A). Therefore, in a population of 10,000 there will be 100 diseased
people and 9,900 non-diseased people. We also know the sensitivity of the test is 99%, i.e., P(B | A) =
0.99; therefore, among the 100 diseased people, 99 will test positive. We also know that the specificity
is also 99%, or that there is a 1% error rate in non-diseased people. Therefore, among the 9,900 non-
diseased people, 99 will have a positive test. And from these numbers, it follows that the unconditional
probability of a positive test is 198/10,000 = 0.0198; this is P(B).
Thus, P(A | B) = (0.99 x 0.01) / 0.0198 = 0.50 = 50%.
From the table above, we can also see that given a positive test (subjects in the Test + row), the
probability of disease is 99/198 = 0.05 = 50%.
Another Example:
Suppose a patient exhibits symptoms that make her physician concerned that she may have a particular
disease. The disease is relatively rare in this population, with a prevalence of 0.2% (meaning it affects
2 out of every 1,000 persons). The physician recommends a screening test that costs $250 and requires
a blood sample. Before agreeing to the screening test, the patient wants to know what will be learned
from the test, specifically she wants to know the probability of disease, given a positive test result, i.e.,
P(Disease | Screen Positive).
The physician reports that the screening test is widely used and has a reported sensitivity of 85%. In
addition, the test comes back positive 8% of the time and negative 92% of the time.
The information that is available is as follows:
• P(Disease)=0.002, i.e., prevalence = 0.002
• P(Screen Positive | Disease)=0.85, i.e., the probability of screening positive, given the presence
of disease is 85% (the sensitivity of the test), and
• P(Screen Positive)=0.08, i.e., the probability of screening positive overall is 8% or 0.08. We
can now substitute the values into the above equation to compute the desired probability,
Based on the available information, we could piece this together using a hypothetical population of
100,000 people. Given the available information this test would produce the results summarized in the
table below. Point your mouse at the numbers in the table in order to get an explanation of how they
were calculated.

The answer to the patient's question also could be computed from Bayes’ Theorem:

We know that P(Disease)=0.002, P(Screen Positive | Disease)=0.85 and P(Screen Positive)=0.08. We

can now substitute the values into the above equation to compute the desired probability,
P(Disease | Screen Positive) = (0.85)(0.002)/(0.08) = 0.021.

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If the patient undergoes the test and it comes back positive, there is a 2.1% chance that he has the
disease. Also, note, however, that without the test, there is a 0.2% chance that he has the disease (the
prevalence in the population). In view of this, do you think the patient have the screening test?
Another important question that the patient might ask is, what is the chance of a false positive result?
Specifically, what is P(Screen Positive| No Disease)? We can compute this conditional probability with
the available information using Bayes Theorem.

By substituting the probabilities in this scenario, we get:

Thus, using Bayes Theorem, there is a 7.8% probability that the screening test will be positive in
patients free of disease, which is the false positive fraction of the test.

Complementary Events
Note that if P(Disease) = 0.002, then P(No Disease)=1-0.002. The events, Disease and No Disease, are
called complementary events. The "No Disease" group includes all members of the population not in
the "Disease" group. The sum of the probabilities of complementary events must equal 1 (i.e.,
P(Disease) + P(No Disease) = 1). Similarly, P(No Disease | Screen Positive) + P(Disease | Screen
Positive) = 1.
You can as well refer to this as Success and Failure Events.

Likely Examinations Questions:

1. A display of 15 T-shirts in a Sports shop contains three different sizes: small, medium and large.
Of the 15 T-shirts: 3 are small ,6 are medium ,6 are large. If two T-shirts are randomly selected
from the T-shirts, what is the probability of selecting both a small T-shirt and a large T-shirt,
the first not being replaced before the second is selected?
2. A die is rolled, find the probability that an even number is obtained.
3. Two coins are tossed, find the probability that two heads are obtained.
4. Two dice are rolled, find the probability that the sum is (a) 1 (b) 4 (c) less than 13
5. A die is rolled and a coin is tossed, find the probability that the die shows an odd number and
the coin shows a head.
6. A card is drawn at random from a deck of cards. Find the probability of getting the 3 of
diamond.
7. A card is drawn at random from a deck of cards. Find the probability of getting the 3 of
diamond.
8. A card is drawn at random from a deck of cards. Find the probability of getting a queen.
9. A jar contains 3 red marbles, 7 green marbles and 10 white marbles. If a marble is drawn from
the jar at random, what is the probability that this marble is white?
10. The blood groups of 200 people is distributed as follows: 50 have type A blood, 65
have B blood type, 70 have O blood type and 15 have type AB blood. If a person from this
group is selected at random, what is the probability that this person has O blood type?
11. A die is rolled, find the probability that the number obtained is greater than 4.
12. Two coins are tossed, find the probability that one HEAD only is obtained.

STUDY PACK ON BUSINESS MATHEMATICS II (BAM122) 44 BY PRINCE MOJEED ADENIYI ASADE