Quantitative Methods for Business and Economics

This course offers an introduction to fundamental mathematical concepts crucial for understanding Economics and Business dynamics.

Topics covered include linear algebra, calculus, and statistics, providing students with essential tools to analyse real-world economic challenges.

Initially the focus of the unit is on algebra, understanding and solving algebraic equations. Linear and matrix algebra is introduced in particular matrix addition, subtraction, multiplication, inversion, and linear dependence and independence. These topics give an understanding of how linear algebra and matrices are used in computer models to simulate real-world scenarios and make predictions

Students will then be introduced to the calculus. Differential calculus is introduced, then students will build on this to tackle functions of more than one variable. The tools acquired in this section are built upon to calculate extrema, for maximising or minimising economic functions. Students will develop several techniques for examining examples from business and economics, and gain insight into the computer processes used to make these calculations in business.

Integral calculus is then introduced. Students will acquire a range of techniques for solving integration problems, and learn to recognise when they can be applied, and through this will gain a good understanding of how dynamic systems such as population growth or economic dynamics can be modelled with differential equations.

In the second half of the course, students are introduced to statistics and probability and their practical uses in decision making. This begins with basic descriptive statistics followed by the idea of probability, focussing on the probability distribution, including the ‘binomial’ and the ‘normal’ distribution. The work with statistics culminates in the discussion of inferential statistics. Finally, regression analysis is cover in order to identify relationships between variables and make predictions based on data.

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