Basic Math (1)

QUAN101
Lecture 1
Dr. Hazem Refaat Ahmed
Lecturer of applied Statistics And Econometrics
Faculty of graduate Studies for Statistical Research
Cairo University
E-Mail: hazemrefaatfgsr67@[Link]
 Course Structure and Content
•Sets
• o Definition and Properties
• o Venn Diagrams
• o Subsets
• o Power Sets
• o Sets Operations
• o Disjoint Sets
• o complement Sets
• o Set identities: DeMorgan Laws
• Applications
 Course Structure and Content
Counting Techniques
• o Fundamental counting principle
• o Permutations and combinations
• o Applications in probability and statistics
• Matrices
• o Matrix operations and properties
• o Determinants and inverse matrices
• o Applications in business modeling and data analysis
• Functions
• o Linear, quadratic, and exponential functions
• o Graphing and interpreting functions
• o Business applications of functions
 Course Structure and Content
• Derivatives
• o Concept of derivatives and rates of change
• o Rules of differentiation
• o Applications in marginal analysis and optimization
• Limits
• o Concept of limits and continuity
• o Techniques for evaluating limits
• o Applications in business decision-making
• Integration
• o Definite and indefinite integrals
• o Techniques of integration
• o Applications in total cost, revenue, and consumer surplus
Course Grading
Class work 30%

Midterm Exam 30%

Final Exam 40%

Total 100%
 Reading List and References
Mandatory Book
Sullivan, M., & Mizrahi, A. (2004). Mathematics: An applied approach. John Wiley & Sons.
Recommended Books
Haeussler, E. F., Paul, R. S., & Wood, R. J. (2019). Introductory Mathematical Analysis
for Business, Economics, and the Life and Social Sciences (14th ed.). Pearson.
"Business Calculus Demystified" by Rhonda Huettenmueller.
Academic journals and other resources
• Journal of Business Mathematics
• Harvard Business Review
• Online business analytics platforms for case studies and data analysis
• Khan Academy (for supplementary explanations and practice)
• Wolfram Alpha (for complex calculations and visualizations)
 Sets
What is a set?
• A set is a group of “objects”
– People in a class: { Alice, Bob, Chris }
– Classes offered by a department: { CS 101, CS 202, … }
– Colors of a rainbow: { red, orange, yellow, green, blue, purple }
– States of matter { solid, liquid, gas, plasma }
– States in the US: { Alabama, Alaska, Virginia, … }
– Sets can contain non-related elements: { 3, a, red, Virginia }

• Although a set can contain (almost) anything, we will most

often use sets of numbers
– All positive numbers less than or equal to 5: {1, 2, 3, 4, 5}
– A few selected real numbers: { 2.1, π, 0, -6.32, e }

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 Set properties 1
• Order does not matter
– We often write them in order because it is
easier for humans to understand it that way
– {1, 2, 3, 4, 5} is equivalent to {3, 5, 2, 4, 1}

• Sets are notated with curly brackets

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 Set properties 2
• Sets do not have duplicate elements
– Consider the set of vowels in the alphabet.
• It makes no sense to list them as {a, a, a, e, i, o, o,
o, o, o, u}
• What we really want is just {a, e, i, o, u}
– Consider the list of students in this class
• Again, it does not make sense to list somebody
twice
• Note that a list is like a set, but order does
matter and duplicate elements are allowed
– We won’t be studying lists much in this class
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 Specifying a set 1
• Sets are usually represented by a capital
letter (A, B, S, etc.)

• Elements are usually represented by an

italic lower-case letter (a, x, y, etc.)

• Easiest way to specify a set is to list all the

elements: A = {1, 2, 3, 4, 5}
– Not always feasible for large or infinite sets
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 Specifying a set 2
• Can use an ellipsis (…): B = {0, 1, 2, 3, …}
– Can cause confusion. Consider the set C = {3, 5, 7,
…}. What comes next?
– If the set is all odd integers greater than 2, it is 9
– If the set is all prime numbers greater than 2, it is 11

• Can use set-builder notation

– D = {x | x is prime and x > 2}
– E = {x | x is odd and x > 2}
– The vertical bar means “such that”
– Thus, set D is read (in English) as: “all elements x
such that x is prime, and x is greater than 2”

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 Specifying a set 3
• A set is said to “contain” the various
“members” or “elements” that make up the
set
– If an element a is a member of (or an element
of) a set S, we use then notation a  S
• 4  {1, 2, 3, 4}
– If an element is not a member of (or an
element of) a set S, we use the notation a  S
• 7  {1, 2, 3, 4}
• Virginia  {1, 2, 3, 4}
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 Often used sets
• N = {0, 1, 2, 3, …} is the set of natural numbers
• Z = {…, -2, -1, 0, 1, 2, …} is the set of integers
• Z+ = {1, 2, 3, …} is the set of positive integers
(a.k.a whole numbers)
– Note that people disagree on the exact definitions of
whole numbers and natural numbers
• Q = {p/q | p  Z, q  Z, q ≠ 0} is the set of
rational numbers
– Any number that can be expressed as a fraction of
two integers (where the bottom one is not zero)
• R is the set of real numbers
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 The universal set 1
• U is the universal set – the set of all of
elements (or the “universe”) from which
given any set is drawn
– For the set {-2, 0.4, 2}, U would be the real
numbers
– For the set {0, 1, 2}, U could be the natural
numbers (zero and up), the integers, the
rational numbers, or the real numbers,
depending on the context
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 The universal set 2
– For the set of the students in this class, U
would be all the students in the University (or
perhaps all the people in the world)

– For the set of the vowels of the alphabet, U

would be all the letters of the alphabet

– To differentiate U from U (which is a set

operation), the universal set is written in a
different font (and in bold and italics)

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 Venn diagrams
• Represents sets graphically
– The box represents the universal set
– Circles represent the set(s)
• Consider set S, which is c
b d f U
the set of all vowels in the g h j S
alphabet k l m
• The individual elements n p q a e i
are usually not written r s t
o u
in a Venn diagram v w x
y z

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 The empty set 1
• If a set has zero elements, it is called the
empty (or null) set
– Written using the symbol 
– Thus,  = { }  VERY IMPORTANT
– If you get confused about the empty set in a
problem, try replacing  by { }
• As the empty set is a set, it can be a
element of other sets
– { , 1, 2, 3, x } is a valid set
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 The empty set 1
• Note that  ≠ {  }
– The first is a set of zero elements
– The second is a set of 1 element (that one
element being the empty set)

• Replace  by { }, and you get: { } ≠ { { } }

• It’s easier to see that they are not equal that way

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 Set equality
• Two sets are equal if they have the same
elements
– {1, 2, 3, 4, 5} = {5, 4, 3, 2, 1}
• Remember that order does not matter!
– {1, 2, 3, 2, 4, 3, 2, 1} = {4, 3, 2, 1}
• Remember that duplicate elements do not matter!
• Two sets are not equal if they do not have
the same elements
– {1, 2, 3, 4, 5} ≠ {1, 2, 3, 4}
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 Subsets 1
• If all the elements of a set S are also elements of
a set T, then S is a subset of T
– For example, if S = {2, 4, 6} and T = {1, 2, 3, 4, 5, 6,
7}, then S is a subset of T
– This is specified by S  T
• Or by {2, 4, 6}  {1, 2, 3, 4, 5, 6, 7}
• If S is not a subset of T, it is written as such:
ST
– For example, {1, 2, 8}  {1, 2, 3, 4, 5, 6, 7}

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 Subsets 2
• Note that any set is a subset of itself!
– Given set S = {2, 4, 6}, since all the elements
of S are elements of S, S is a subset of itself
– This is kind of like saying 5 is less than or
equal to 5
– Thus, for any set S, S  S

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 Subsets 3
• The empty set is a subset of all sets (including
itself!)
– Recall that all sets are subsets of themselves
• All sets are subsets of the universal set
• A horrible way to define a subset:
– x ( xA → xB )
– English translation: for all possible values of x,
(meaning for all possible elements of a set), if x is an
element of A, then x is an element of B
– This type of notation will be gone over later

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 Proper Subsets 1
• If S is a subset of T, and S is not equal to
T, then S is a proper subset of T
– Let T = {0, 1, 2, 3, 4, 5}
– If S = {1, 2, 3}, S is not equal to T, and S is a
subset of T
– A proper subset is written as S  T
– Let R = {0, 1, 2, 3, 4, 5}. R is equal to T, and
thus is a subset (but not a proper subset) or T
• Can be written as: R  T and R  T (or just R = T)
– Let Q = {4, 5, 6}. Q is neither a subset or T
nor a proper subset of T 18
 Proper Subsets 2
• The difference between “subset” and
“proper subset” is like the difference
between “less than or equal to” and “less
than” for numbers

• The empty set is a proper subset of all

sets other than the empty set (as it is
equal to the empty set)

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Proper subsets: Venn diagram
SR
U
R

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 Set cardinality
• The cardinality of a set is the number of
elements in a set
– Written as |A|
• Examples
– Let R = {1, 2, 3, 4, 5}. Then |R| = 5
– || = 0
– Let S = {, {a}, {b}, {a, b}}. Then |S| = 4
• This is the same notation used for vector length
in geometry
• A set with one element is sometimes called a
singleton set 21
 Power sets 1
• Given the set S = {0, 1}. What are all the
possible subsets of S?
– They are:  (as it is a subset of all sets), {0},
{1}, and {0, 1}
– The power set of S (written as P(S)) is the set
of all the subsets of S
– P(S) = { , {0}, {1}, {0,1} }
• Note that |S| = 2 and |P(S)| = 4

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 Power sets 2
• Let T = {0, 1, 2}. The P(T) = { , {0}, {1},
{2}, {0,1}, {0,2}, {1,2}, {0,1,2} }
• Note that |T| = 3 and |P(T)| = 8
• P() = {  }
• Note that || = 0 and |P()| = 1
• If a set has n elements, then the power set
will have 2n elements

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