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Basic Mathematics – I




                    Notes
                                                  1   5 z
                                                  5 15 z     15 z    25 5z    4z  10   10 4z
                                             y =
                                                      3             3            3       3

                                   Since we can assign infinite number of values to z, there are infinite number of solutions.
                                   Since the variables are not permitted to be negative, we can write.

                                                                       z  5
                                                                   x =       0   or  z ³ –5
                                                                         3

                                                                       10 4z                      5
                                     and                           y =          0  or 10 – 4z ³ 0 or  z
                                                                          3                       2

                                                                                                       5
                                   Since z cannot be negative, therefore the range of values of z is restricted to  0  z  .
                                                                                                       2



                                          Example
                                   Two companies A and B are holding shares in each other, A is holding 20% shares of B and B is
                                   holding 10% shares of A. If the separately earned profits of the two companies are   98,000 and
                                     49,000 respectively, find total profit of each company using matrix algebra. Also show that the
                                   total profits  allocated to the outside shareholders is  equal to  the total  of separately earned
                                   profits.
                                   Solution:

                                   Let x and y denote the total profit of the two companies A and B respectively.
                                   Then we can write
                                                     x = 98000 + 0.2y   or  x – 0.2y = 98000
                                                     y = 49000 + 0.1x   or  –0.1x + y = 49000
                                     Writing the above equations as the matrix equation


                                        1     0.2  x      98000
                                                       =
                                        0.1    1   y      49000
                                     This can be solved either by matrix inversion method or Cramer’s rule.
                                     Using Cramer’s Rule, we get


                                                         98000    0.2
                                                         49000    1     107800.00
                                                     x =                           1,10,000
                                                           1     0.2      0.98
                                                           0.1   1


                                                           1   98000
                                                          0.1 49000     58800.00
                                                     y =                          60,000
                                                             0.98         0.98



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