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Set Theory for Business Decisions

The document provides an overview of set theory, emphasizing its application in business decision-making. It covers key concepts such as types of sets, set membership, operations on sets, and properties of ordered pairs. Additionally, it includes references for further reading and examples to illustrate the principles of set theory.

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0% found this document useful (0 votes)
93 views13 pages

Set Theory for Business Decisions

The document provides an overview of set theory, emphasizing its application in business decision-making. It covers key concepts such as types of sets, set membership, operations on sets, and properties of ordered pairs. Additionally, it includes references for further reading and examples to illustrate the principles of set theory.

Uploaded by

Amos
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

TOPIC TWO: SET THEORY

Objective: By the end of the topic students should be able to apply set theory technique
in business decision making.

Key learning points:


Terms used in set theory and types of sets.
Rules used in sets.
Using sets in solving problems in business decision making.

References:

Number Author and Title

1 Jagdish Arya and Robin Lardner, (1985), Mathematical Analysis for Business and

Economics, 2nd Edition Prentice Hall United States of America.

2 Jean [Link] etal, (1972), Mathematical Analysis: Business and Economic

Applications 2nd Edition Printed by Harper and Row Publishers in New York.

3 Terry Lucey (2002), Quantitative Techniques 6th edition TJ, International UK.

4 Terry Lucey (1996), Quantitative Techniques 5th edition BPC London.

Introduction
Set theory is a technique used to classify and group variables to facilitate different kinds of analysis.
It is important in business situations that involve grouping of objects according to their common
properties.
Requirements of a set

 A set must be well defined i.e. it must not leave any room for ambiguities.
 The elements of a given set must be distinct i.e. each object will appear once and once only.
This means that an element must appear but only once.
 The order of presenting the elements of a set is immaterial. Thus, the following four sets are the
same: {1, 3, 2} = {1, 2, 3} = {3, 2, 1} = {2, 1, 3}

Terms used in set theory

8. A set
It is a collection of objects usually of a similar nature for example a set of chairs, a set of
cups, and the number of items in a store, even numbers, and odd numbers below 100.
9. An element This constitutes and refers to each individual member of a set. For example,
given the set of numbers as follows; A = {1, 2, 3, 4, 5}, 2 is an element of set A.
10. Module of a set/ cardinality of a set
This is the total number of items in a set. It is the size of a set and is expressed as │ │ or n
Given B = {2, 3, 4, 5}
│B │ = 4 or n (B) = 4.

Set membership
Set membership is expressed by using the Greek letter epsilon (∈).
x є S, it means that x is an element or member of set S
For example, if S= {2, 4, 6, 7}, we can write: 2 ∈ S, 4 ∈ S, 6 ∈ S and 7 ∈ S or 2, 4, 6 and 7 ∈ S

Set Representation methods


Listing Method
A set is represented by listing its elements separated by commas and enclosed in curly brackets.
In this method all or partial members of the set are listed.
Examples:
a) Let R be the set of Natural number less than 10. 𝑹 = {1, 2, 3, 4, 5, 6, 7, 8, 9}, complete listing
b) Let H be the set of counting numbers less than 1000 𝑯 = {1, 2, 3, . . . , 999}, Partial listing
c) Let N be the set of Natural Numbers 𝑵 = {1, 2, 3, . . .}, Partial listing

Set Builder Form/method


In this method the set is described by listing the properties that describe the elements in the set. / a set
is represented using a rule or condition that defines its elements.
For example,
A = {x│x is a positive integer less than 6}
B = { x│x is an even positive integer less than less than or equal to 10}

Types of sets

Universal set

Universal sets

It is a set which contains all elements under consideration. This is a set consisting of all elements of
interest in a particular discussion. It contains all elements of the population (a population is an entire
group under observation).

A universal set is the largest set possible and it is denoted by ꜫ or U, for example;

If we are interested in a set of real numbers from 1 to 10, then ↋= {1,2,3,4,5,6,7,8,9,10}

If U = {all students of MUBS), we can have the following subsets:

A= {students at Jinja campus}

B= {Male students}

C= {Students studying BBA}, etc


Subset
Subset
It is a set contained inside another set. A set A is a subset of set B if every element in A in also and
element in B. It is denoted by ⸦. For example if A={7, 8, 9, 10, 11} and B={8, 9}, then B ⸦ A
Properties of Subsets
➢ Every set is a subset of itself
➢ An empty is a subset of every set.
➢ If B is a subset of A, it means that B is contained in A
➢ Set A is called a superset of B
➢ Set A can be equal to set B
Eg. A = {1,2} and B= {1,2,3}
A is a subset of B
A is also a proper subset of B

Proper subset
A set A is a proper subset of set B if every element of A is also an element of B and A is not equal to B
eg. Eg. A = {1,2,3} and B= {1,2,3}
A is a subset of B
A is not a proper subset of B because A is equal to B.

Power set
This describes the number of subsets that can be derived from a given set. It is given by the formulae
2n, where n is the number of elements in the original set.
For example, if A = {1, 2, 3, 4} then the number of subsets from A = 24 = 16 subsets.

Union of sets
This is a set which combines all the elements of subsets. It is denoted by U. For
example, given A = {2, 3, 4, 5} and B = {1, 2, 3, 4, 5, 6, 7, 8}.
Then AUB = {1, 2, 3, 4, 5, 6, 7, 8}
Equal sets
These sets contain exactly the same elements. The symbol for equal sets is =. For
example, if A = {1, 2, 3}, B = {3, 2, 1} then A =B.
Equivalent sets
Two sets are said to be equivalent if they have the same number of elements not necessarily similar.
For example, if B = {a, e, i, o, u} and C = {1, 2, 3, 4, 5}.
n (B) = 5 and n(C) = 5 therefore B is equivalent to C.
Intersection of sets
Two sets A and B are said to have an intersection if there exist some elements that are
common to both sets A and B. It is denoted as ∩.
If A = {a, e, i, o, u}, B = {a, b, c, d, e}, then A∩B = {a, e}

Empty set
This is a set without any element. It is also referred to as a null set. It is usually denoted as
{ } or Φ for example A= {1, 2, 3, 4} and B = {6, 7, 8} then A∩B
= { }.
Joint sets
These are sets that have some common elements. A set is said to be joint if it has an intersection e.g. if
A = {2, 4, 5} and B = {5, 6}, then A∩B = {5}, this implies that A and B are joint because they have an
intersection.

Disjoint sets
These are sets with no intersection for example A = {a, b, c, d}, B = {e, f,
g}. A and B are thus disjoint sets since AnB = { } = 0.

Finite sets
These are sets with countable elements. For example, a set of students in Kyambogo University.

Infinite set
This is a set with uncountable elements. For example, a set of sand at the shores of Lake Albert.
Singleton
This is a set with exactly one member.
Doubleton
This is a set with exactly two members.

Compliment of a set
This is a set of all elements in the universal set but not in that particular set. It is denoted as /. For
example, if;
ε= {1, 2, 3, 4, 5, 6, 7, 8, 9, 10}
A = {1, 3, 5, 7, 9}
A/ = {2, 4, 6, 8, 10}

The set of real numbers;


Difference of sets
Given two sets A and B, then set difference is either given by A – B or B – A
Where;
A – B is a set comprising of all elements in set A that are not in set B.
B – A is a set comprising of all elements in set B that are not in set A.
For example, given A = {4, 6, 8, 10} and B = {5, 7, 8, 9}.
Find; (i) A–B
(ii) B–A

Solution
(i) A – B = {4, 6, 10}
(ii) B – A = {5, 7, 9}

The set of real numbers

All possible values on a number line.

Natural numbers are positive integers

Basic properties/laws/Rules used in Sets


Demorgan’s Laws:
Law of union
It states that the compliment of the union of two sets say A and B is equal to the intersection of the
individual compliments. that is;
(AUB)/ = A/∩B/. (Demorgan's law of union)
Therefore (AUB)/ is a set that contains all elements that are not in AUB. For example, given two sets A
= {3,4,9} and B = {7,9,14}, Universal set U = {3,4,9,7,14,8}
(AUB)/ = {8}

Law of intersection
It states that the compliment of the intersection of two sets say A and B is equal to the union of their
individual complements that is;
(A∩B)/ = A/UB/ (Demorgan's law of intersection)
So, in this case we are looking for members that do not belong to the intersection of both sets A and B.
e.g. A = {1,2,3,4} and B = {3,4,5,6}
A∩B = {3,4}
(A∩B)/ = {1,2,5,6}
Other laws;
If given two sets A and B then;
Set A is equal to the intersection of both sets A and B added to the intersection of set A and the
Compliment of B that is;
A = (A∩B) + (A∩B/).

Set B is equal to the intersection of A and B added to the intersection of B and the compliment
of A that is;
B = (A∩B) + (A/∩B).

The union of the given sets A and B is equal to the intersection of two sets added the intersection
of set A and the compliment of set B, added the intersection of set B and the compliment of set
A that is AUB = (A∩B) + (A∩B/ ) + (A/∩B).

Other properties/laws;
ORDERED PAIRS
Recall that a set is an unordered collection of distinct elements i.e. {a, b} = {b, a} therefore the
set {a, b} is identical to the set {b, a}

Ordered pairs; In set theory, an ordered pair is a fundamental concept used to represent a pair
of elements where the order matters. It is denoted by (a, b) where a is the first element of the pair
(first coordinate), and b is the second element of the pair (second coordinate)

Key properties;
• Order matters i.e. (a, b) ≠ (b, a) unless a = b
• Uniqueness; Two ordered pairs (a, b) and (c, d) are equal if and only if a = c and b = d

In contrast the unordered pair {a, b} is always equal to the unordered pair {b, a}
a = (green, red) and b = (red, green)
a≠b
Formal definition: The most common way to define an ordered pair in set theory is
using Kuratowski's definition: (a, b) = {{a}, {a, b}}
In summary the set {a} identifies a as the first element and the set {a, b} allows us to identify b
as the second element since a is already identified as the first element.

Why this definition holds;


1. The order is preserved: (a, b) ≠ (b, a) unless a = b.
2. The property: Two ordered pairs (a, b) and (c, d) are equal if and only if a = c and b = d
holds.
For example;
Given two ordered pairs (5,2) and (2,5)
(5, 2) = {{5}, {5, 2}}
(2, 5) = {{2}, {2, 5}}
These are different sets so (5, 2) ≠ (2, 5)
Also note that changing the standard definition of (a, b) = {{a}, {a, b}} to this (a, b) = {{b}, {a,
b}} would alter the fundamental properties of ordered pairs in set theory.

Determine if the following ordered pairs are equal;


1. (2,3) and (2,3)
2. (9,7) and (7,9)
3. (x, y) and (x, y) where x = 8, and y = 12
4. For two ordered pairs to be equal, their corresponding elements must
be equal. E.g. If ordered pairs (9,13) and (x+3 , y+6) are equal, find the
value of X and Y.

Applications of ordered pairs


✓ Coordinate geometry; Ordered pairs are used to represent points in a coordinate plane
where the first element represents the x-coordinate and the second element represents the
y-coordinate.
✓ Relations and functions (read about this)
✓ Cartesian Products

CARTESIAN PRODUCTS
The Cartesian product of two sets A and B, denoted A×B, is the set of all possible ordered
pairs (a, b) where:
• a∈A (the first element comes from A)
• b∈B (the second element comes from B)
Formally:
A×B= {(a, b) ∣a∈A and b∈B}
A×B= {(a, b): a∈A and b∈B}

A cartesian product is a set containing all possible ordered pairs where the first element is from
the first set in the product and the second element is from the second set in the product. (AxB).
Therefore because of this definition Cartesian product is not commutative

Key Properties of Cartesian product

1. Cartesian product is not commutative. Thus, if we change the order of sets the
result changes. If A and B are two sets, then the cartesian product of A and B, A ×
B≠B×A
2. Cardinality: If A and B are finite, then ∣A×B∣= ∣A∣×∣B∣
3. Cartesian product is not associative. If we regroup the sets in the cartesian
product, then it will change the result. If A, B and C are three sets, then (A × B) × C
≠ A × (B × C)
4. Empty Set: A×∅=∅; Cartesian product of an empty set is equal to the empty set
5. Distribution property of cartesian product over the intersection of sets is given by
A × (B ∩ C) = (A × B) ∩ (A × C)
6. Distribution property of cartesian product over the union of sets is given by A ×
(B∪C) = (A × B) ∪ (A × C)
7. The result of the cartesian product of sets is a set of all ordered pairs

Examples;

Given two set P and Q where P = {4,9} and Q = {x,y} Find;

a) Cartesian product PxQ


b) │PxQ│
soln;
P = {4,9}
Q = {x, y}

PxQ = {(4, x), (4, y), (9, x), (9, y)}

│PxQ│= │P│x│Q│= 4 ordered pairs

Also note that If n(A) = p and n(B) = q and, then n (A × B) = pq.

Example 2;

Given set A = {3,6,5} and B = {2,9} find AxB

A = {3,6,5}

B = {2,9}

AxB = {(3,2), (3,9), (6,2), (6,9), (5,2), (5,9)}

For Two sets you can use this diagram to get the cartesian product;

Sample question;

A = {a, b}

B = {4,1}

C = {x, y}

AxBxC = {(a,4, x), (a,4, y), (a,1, x), (a,1, y), (b,4, x), (b,4, y), (b,1, x), (b,1, y)}
In this case we come with a set of ordered triples since we have 3 sets.

Trial No; Find the Cartesian product of sets A and B and C given that Set A = {1,4}, set B =
{5,6,7} and Set C = {1,8}.

Using sets in solving

problems Venn Diagrams


A Venn diagram is a pictorial representation of a set. We can illustrate information in
Venn
diagrams.
Example; Show the following on a Venn diagram, given that A and B are two sets. (i)
A∩B (ii) AUB (iii) (A∩B)1 (iv) (AUB)1

Solutions

(i) AnB ε

Therefore, AnB is the shaded part of the set.

(ii) AuB ε

Therefore, AuB is the shaded part of the set.

(iii) (A∩B)/ ε
Therefore (A∩B)/is the shaded part of the set

(iv) (AUB)/
ε

Therefore (AUB)/ is the shaded part of the set.


(v) (A∩B)/ ε

Therefore (A∩B)/is the shaded part of the set

(vi) (AUB)/
ε

Therefore (AUB)/ is the shaded part of the set.


The symbol for symmetric difference; Greek letter delta

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