Licensed to:
,Licensed to:
Business Mathematics
and Statistics
Andre Francis BSc MSc
Perinatal Institute
Birmingham
Andre Francis works as a medical statistician.
He has previously taught Mathematics, Statistics
and Information Processing to students on busi-
ness and professional courses. His teaching experi-
ence has covered a wide area, including training
students learning basic skills through to teaching
undergraduates. He has also had previous indus-
trial (costing) and commercial (export) experience
and served for six years in statistical branches of
Training Command in the Royal Air Force.
Sixth Edition
Australia • Canada • Mexico • Singapore • Spain • United Kingdom • United States
Copyright 2004 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
,Licensed to:
Acknowledgements
The author would like to express thanks to the many students and teachers who have
contributed to the text in various ways over the years.
In particular he would like to thank the following examining bodies for giving permis-
sion to reproduce selected past examination questions:
Chartered Association of Certified Accountants (ACCA)
Chartered Institute of Management Accountants (CIMA)
Institute of Chartered Secretaries and Administrators (ICSA)
Chartered Institute of Insurance (CII)
Association of Accounting Technicians (AAT)
Each question used is cross referenced to the appropriate Institute or Association.
A CIP catalogue record for this book is available from the British Library
First Edition 1986
Second Edition 1988; Reprinted 1990; Reprinted 1991
Third Edition 1993; Reprinted 1993
Fourth Edition 1995; Reprinted 1996; Reprinted 1997
Fifth Edition 1998; Reprinted 2003 by Thomson Learning
Sixth Edition 2004; Published by Thomson Learning
Copyright A. Francis © 2004
ISBN 1-84480-128-4
All rights reserved
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by
any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the
copyright owner except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or
under the terms of a licence issued by The Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London
W1P 9HE. Applications for the copyright owner’s permission to reproduce any part of this publication should
be addressed to the publisher.
Typeset in Nottingham, UK by Andre Francis
Printed in Croatia by Zrinski d.d.
Copyright 2004 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
, Licensed to:
Contents
Preface ....................................................................................................................................v
1 Introduction to Business Mathematics and Statistics .............................1
Part 1 Data and their presentation ...................................................................................5
2 Sampling and Data Collection ...................................................................6
3 Data and their Accuracy............................................................................24
4 Frequency Distributions and Charts .......................................................38
5 General Charts and Graphs ......................................................................63
Examination questions ......................................................................................90
Part 2 Statistical measures ...............................................................................................95
6 Arithmetic Mean ........................................................................................96
7 Median.......................................................................................................107
8 Mode and Other Measures of Location ................................................ 117
9 Measures of Dispersion and Skewness.................................................129
10 Standard Deviation ..................................................................................136
11 Quantiles and the Quartile Deviation ...................................................148
Examination example and questions ............................................................159
Part 3 Regression and correlation ................................................................................165
12 Linear Functions and Graphs.................................................................166
13 Regression Techniques ............................................................................173
14 Correlation Techniques ...........................................................................191
Examination examples and questions...........................................................207
Part 4 Time series analysis.............................................................................................213
15 Time Series Model....................................................................................214
16 Time Series Trend .....................................................................................219
17 Seasonal Variation and Forecasting.......................................................229
Examination example and questions ............................................................242
Part 5 Index numbers......................................................................................................247
18 Index Relatives .........................................................................................248
19 Composite Index Numbers.....................................................................259
20 Special Published Indices........................................................................272
Examination questions ....................................................................................281
Part 6 Compounding, discounting and annuities .....................................................285
21 Interest and Depreciation........................................................................286
22 Present Value and Investment Appraisal .............................................302
23 Annuities ...................................................................................................318
Examination examples and questions...........................................................330
iii
Copyright 2004 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
,Licensed to:
Business Mathematics
and Statistics
Andre Francis BSc MSc
Perinatal Institute
Birmingham
Andre Francis works as a medical statistician.
He has previously taught Mathematics, Statistics
and Information Processing to students on busi-
ness and professional courses. His teaching experi-
ence has covered a wide area, including training
students learning basic skills through to teaching
undergraduates. He has also had previous indus-
trial (costing) and commercial (export) experience
and served for six years in statistical branches of
Training Command in the Royal Air Force.
Sixth Edition
Australia • Canada • Mexico • Singapore • Spain • United Kingdom • United States
Copyright 2004 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
,Licensed to:
Acknowledgements
The author would like to express thanks to the many students and teachers who have
contributed to the text in various ways over the years.
In particular he would like to thank the following examining bodies for giving permis-
sion to reproduce selected past examination questions:
Chartered Association of Certified Accountants (ACCA)
Chartered Institute of Management Accountants (CIMA)
Institute of Chartered Secretaries and Administrators (ICSA)
Chartered Institute of Insurance (CII)
Association of Accounting Technicians (AAT)
Each question used is cross referenced to the appropriate Institute or Association.
A CIP catalogue record for this book is available from the British Library
First Edition 1986
Second Edition 1988; Reprinted 1990; Reprinted 1991
Third Edition 1993; Reprinted 1993
Fourth Edition 1995; Reprinted 1996; Reprinted 1997
Fifth Edition 1998; Reprinted 2003 by Thomson Learning
Sixth Edition 2004; Published by Thomson Learning
Copyright A. Francis © 2004
ISBN 1-84480-128-4
All rights reserved
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by
any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the
copyright owner except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or
under the terms of a licence issued by The Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London
W1P 9HE. Applications for the copyright owner’s permission to reproduce any part of this publication should
be addressed to the publisher.
Typeset in Nottingham, UK by Andre Francis
Printed in Croatia by Zrinski d.d.
Copyright 2004 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
, Licensed to:
Contents
Preface ....................................................................................................................................v
1 Introduction to Business Mathematics and Statistics .............................1
Part 1 Data and their presentation ...................................................................................5
2 Sampling and Data Collection ...................................................................6
3 Data and their Accuracy............................................................................24
4 Frequency Distributions and Charts .......................................................38
5 General Charts and Graphs ......................................................................63
Examination questions ......................................................................................90
Part 2 Statistical measures ...............................................................................................95
6 Arithmetic Mean ........................................................................................96
7 Median.......................................................................................................107
8 Mode and Other Measures of Location ................................................ 117
9 Measures of Dispersion and Skewness.................................................129
10 Standard Deviation ..................................................................................136
11 Quantiles and the Quartile Deviation ...................................................148
Examination example and questions ............................................................159
Part 3 Regression and correlation ................................................................................165
12 Linear Functions and Graphs.................................................................166
13 Regression Techniques ............................................................................173
14 Correlation Techniques ...........................................................................191
Examination examples and questions...........................................................207
Part 4 Time series analysis.............................................................................................213
15 Time Series Model....................................................................................214
16 Time Series Trend .....................................................................................219
17 Seasonal Variation and Forecasting.......................................................229
Examination example and questions ............................................................242
Part 5 Index numbers......................................................................................................247
18 Index Relatives .........................................................................................248
19 Composite Index Numbers.....................................................................259
20 Special Published Indices........................................................................272
Examination questions ....................................................................................281
Part 6 Compounding, discounting and annuities .....................................................285
21 Interest and Depreciation........................................................................286
22 Present Value and Investment Appraisal .............................................302
23 Annuities ...................................................................................................318
Examination examples and questions...........................................................330
iii
Copyright 2004 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
