MBM1810 - QUANTITATIVE METHODS (OPTIMISATION)

Module Identifier

MBM1810

Module Title

QUANTITATIVE METHODS (OPTIMISATION)

Academic Year

2003/2004

Co-ordinator

Dr John A Lane

Semester

Intended for use in future years

Next year offered

N/A

Next semester offered

N/A

Course delivery

Lecture

20 Hours

Seminars / Tutorials

4 x 1 hour tutorial. Each student is required to attempt regular assignments.

Assessment

Assessment Type	Assessment Length/Details	Proportion
Semester Exam	2 Hours	100%

Learning outcomes

On successful completion of the module students should be able to:

formulate linear programming problems and solve simple problems graphically;
interpret the output from computer software in more complex problems;
sum geometric series and solve investment and lending problems;
manipulate polynomial functions and solve equations involving polynomials of low degree;
find an equilibrium point and determine its stability;
differentiate simple functions and find the maxima and minima of a function of one and two variables;
integrate simple functions, use integration to evaluate the area under a curve and interpret the result in economic or business contexts;
evaluate and interpret marginal, total and average cost or revenue functions.

Brief description

The purpose of the course is to demonstrate the usefulness of quantitative methods in situations that arise in industry and business. The underlying mathematics is introduced and related to topics including optimisation of functions representing profit, costs, etc; calculations for investment problems; equilibrium states for supply and demand; and relationships between functions such as average, total and marginal cost/revenue . The emphasis throughout is on the application of mathematical techniques to situations that arise in business and industry and the ability to make appropriate deductions from the results.

Content

Linear Programming: Formulation. Graphical solution for two variables. Sensitivity analysis. Interpretation of computer output for multi-variable problems.
Investment Problems: Compound interest; effective interest rate, present value. Geometric series; regular investments, annuities.
Supply and Demand Functions: Equilibrium price; solution of equations, stability. Differentiation of polynomial functions; maximum and minimum. Relation between marginal, total and average; integration. Elasticity. Two variable problems, Lagrange multipliers.

Reading Lists

Books
** Recommended Text
L Swift (2001) Quantitative Methods for Business, Management and Finance Palgrave ISBN 0-333-92076-7
J Curwin and R Slater (2001) Quantitative Methods for Business Decisions 5th edition. Thomson Learning ISBN 1-861525-311
** Supplementary Text
Hoffmann, LD and GL Bradley, (1996) Calculus for Business, Economics, and the Social and Life Sciences 6th. McGraw-Hill 0070293724

Notes

This module is at CQFW Level 7