Applications of Matrices in Business
Math in Business Applications of Matrices in Business
15-0109
María Amelia Jiménez
Mathematics I
CGM140
Due date: Friday 19th, 2014
Universidad Iberoamericana (UNIBE)
Applications of Matrices in Business It happens often that students question the concepts that are required for them to learn. They usually say "How is this going to help me in the future?" or "Will I seriously use this in my life?" and that 's because they don 't know the applications of those subjects in a more palpable way. In high school, my classmates and me used to think like this about matrices. A matrix is an assortment of numbers, usually real numbers, organized into rows and columns. Matrices can be added, subtracted, multiplied by a constant or another matrix, divided, and decomposed in different ways. That is why we used to doubt its importance in life, because it used to get so difficult and/or tricky. However, matrices have many applications in life. The concept has been explored by many professionals who have discovered several applications in areas such as Business, Statistics, Economics, and other sciences (Gupta, 2009). Inside the business discipline, matrix algebra is a significant instrument because business problems can be displayed easier in fixed numbers (University of Delhi, 2014). So the matrix form adapts well for allocation of expenses, game theory, among other things (University of Dhaka, 2009). Allocation of expenses is the process of designating a cost to one cost goal. Costs are allocated if they benefit a project in the same proportion as the cost (Standford University, 2014). There are different methods of allocating costs, one of them is the reciprocal method, which is considered the best one and it uses matrix to calculate and help the decision making process (Hussein & Togo, 2011). Game theory in business is a study of strategic decision-making in an economic environment (Pinkasovitch, 2014), and matrices also take
15-0109
María Amelia Jiménez
Mathematics I
CGM140
Due date: Friday 19th, 2014
Universidad Iberoamericana (UNIBE)
Applications of Matrices in Business It happens often that students question the concepts that are required for them to learn. They usually say "How is this going to help me in the future?" or "Will I seriously use this in my life?" and that 's because they don 't know the applications of those subjects in a more palpable way. In high school, my classmates and me used to think like this about matrices. A matrix is an assortment of numbers, usually real numbers, organized into rows and columns. Matrices can be added, subtracted, multiplied by a constant or another matrix, divided, and decomposed in different ways. That is why we used to doubt its importance in life, because it used to get so difficult and/or tricky. However, matrices have many applications in life. The concept has been explored by many professionals who have discovered several applications in areas such as Business, Statistics, Economics, and other sciences (Gupta, 2009). Inside the business discipline, matrix algebra is a significant instrument because business problems can be displayed easier in fixed numbers (University of Delhi, 2014). So the matrix form adapts well for allocation of expenses, game theory, among other things (University of Dhaka, 2009). Allocation of expenses is the process of designating a cost to one cost goal. Costs are allocated if they benefit a project in the same proportion as the cost (Standford University, 2014). There are different methods of allocating costs, one of them is the reciprocal method, which is considered the best one and it uses matrix to calculate and help the decision making process (Hussein & Togo, 2011). Game theory in business is a study of strategic decision-making in an economic environment (Pinkasovitch, 2014), and matrices also take
References: Definition of Matrix. (2009). Retrieved September 17, 2014, from http://chortle.ccsu.edu/vectorlessons/vmch13/vmch13_2.html Department of Finance University of Dhaka. (2009). Report On Use of Mathematical Tools in Business. Retrieved September 17, 2014, from http://www.google.com.do/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja &uact=8&ved=0CB0QFjAA&url=http%3A%2F%2Fmdmosarraf.weebly.com%2Fupl oads%2F4%2F6%2F8%2F2%2F4682737%2Fmath_final_09.doc&ei=69AZVIesFM OeggSVxoLwDw&usg=AFQjCNEXMBFCBiY307paTZLEEeqShqR24A&bvm=bv. 75097201,d.eXY Gupta, A. (2009, September 10). Paper IX Business Mathematics: Applications of Matrices to Business Economics. Retrieved September 17, 2014, from http://www.scribd.com/doc/19613606/Applications-of-Matrices-to-Business-and- Economics Hussein, S. S., & Togo, D. F. (2011). Al-Jo’anee Company: support department cost allocations with matrices to improve decision making. Journal of Business Cases and Applications, page 6. Retrieved September 17, 2014, from http://www.aabri.com/manuscripts/11960.pdf Pinkasovitch, A. (2014) Why is Game Theory useful in business? Retrieved September 17, 2014, from http://www.investopedia.com/ask/answers/09/game-theory-business.asp School of Open Learning, University of Delhi. (2014). Paper-6: Business Mathematics & Statistics. Retrieved September 17, 2014, from http://elearning.sol.du.ac.in/mod/book/view.php?id=873 Standford University. (2014). Allocation of Expense. Retrieved September 17, 2014, from https://doresearch.stanford.edu/research-administration/major-topics/allocation- expense#main