Mathematics and Statistics for Economics

Level: Bachelor of ArtsYear: I

Code: Econ. 422

Full Marks: 100

Pass Marks: 40

Teaching Hours: 150

Course ObjectivesAfter the completion of this course, student will be familiarize with basic skills of Mathematicsand Statistics so that they will be able to understand and explain quantitative aspects of economictheories. The course will lay foundation for understanding concepts of Mathematical andStatistical methods required for advance study in Economics.

Group - A: Mathematics Hrs,15

Unit - I Sets, Vectors, Real Number system, Relation and Functions, Limit &Review ofFundamentals Continuity, Logarithms, Permutation and Combination

Unit - 11 Differentiation of function with single variable: Rules of 20

Differntiation differentiation, Higher order derivatives, Differentiation of functionwith two or more variables: Partial derivatives, Total differentials,Total derivatives, Homogenous function, and Euler's theorem.Maxima and Minima of a function with one and two variablesEconomic Applications: Marginal Utility, Marginal revenue, Marginalcost Elasticity Partial elasticity, Revenue and Profit Maximization

Unit - IlllJL`*`J`+-.`J ,IndefiniteIntegrals: Nature of integrals, Basic rules of integration,

20

Integration andDynanicAnalysis Rules of operation, Rules involving substitution, Definite integrals,Definite integral as an area under the curve, Economic Applications:Calculation of TR, TU, and TC from MR, MU, and MC, Consuril.er'sand Producer's surplus, First order difference and differential equationwith constant coefficient and constant term.

Unit - IV Matrices: Meaning and types of matrices, Matrix operation: Addition, 20

Linear Algebra Subtraction, Multiplication, Transpose of a matrixDeterminants: Meaning of determinants, Properties of determinantsRank of a matrix, Inverse of a matrix, Solution of linear equationsystem up to 3 variables, Cramer's rule.

Group -8: Statistics10Unit - V Review of Central Tendency: AM, Median, Mode, HM, GM,

Review of Weighted mean, Measure of Dispersion: Range, Mean deviation,Central Standard deviation, Variance, Coefficient of variation, Lorenz curve,Tendency and Gini-coefficient, Concept of moments, Kurtosis, Skewness and theirMeasure ofDispersion measuremeiit by using moments.

Unit - VIProbability andProbabilityDistributionr'.//: Basic concept of probability and probability distribution: Concept ofprobability,Additionandmultiplicationtheorems,Conditionalprobability,Bayestheorem.RandomVariable:Expectedvalue,Discreteprobabilitydistributionandcontinuousdensityfunctionofsinglerandomvariable,MeanandVariance.ProbabilityDistribution: 18

Binomial distribution and Normal distribution.

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Unit - VII Correlation Analysis: Correlation and causation. Types of 20Correlation and correlation: positive, negative, partial, multiple measurement ofRegression correlation coefficient, Scatter diagram, Karl Pearson's coefficient ofAnalysis correlation, Spearman's rank correlation. Correlation coefficient of

bivariate frequency table.Regression Analysis: Meaning, Difference between correlation andregression, Simple linear regression model, Least square method, Twolines of regression (Y on X and X on Y).

Unit - VIII Meaning and importance of time series, Components of time series, 10

Analysis of Measurement of Trend: Graphic method, Semi - average method,Time Series Moving average method, Least square method.Unit - IX Meaning, Characteristics, Importance, Uses and Classiflcation of 10

Index Numbers Index Numbers. Types of Index Numbers: Price, Quantity and ValueIndex Numbers. Special Purpose Indices: Cost of living index,Wholesale price index, Consumer price index. Proporties of goodindex number, Problems in constructing index numbers.

Unit - X Official statistics and various publications from MOF, NRB, NPC and 7Official CBS etc. Use of Computers: Data tabulation and graphic presentationStatistics and of data (Students are encouraged to interpret relevant published dataComputerApplications using Excel).

References

Chilrl8 A. ernd WaiIT:wr.1ghi, T€. (2005). Fundamental Methods Of Mathematical Economics. 4th ed.New York: MCGraw Hill.

Hoy, M., Livemois J., MCKema C., Rees R. and Stengos, T., (2011). jwczrfeeMcz/z.cf /orEco#omz.cs, 3rd ed. Massachusetts: MIT Press.

Gupta, S. (2014). S/cr#.s/z.c¢/ A4le/feocis. 43rd ed. New Delhi: Sultan Chand and Sous.

Lind, D. A., Garchal, W. G., and Wathen, S. A., (2006). Bc7sz.c S/cz#.s/j.cs /or 82Asz.77ess crnd

Eco77ormz.cs. 5th ed. New York: MCGraw Hill.

Bhusal, T. P. (2012). A4cz/fee#7cz#.cs cz7zc7 S/c7/z.s#.cs /or Eco73offlz.cf, Dreamland Publication,

Kathmandu.

Cirpha, S. a:nd TLzxpoor, V . (2000). Fundamentals Of Mathematical Statistics : A Modern Approach.loth ed. New Delhi: Sultan Chand and Sous.

Lipsctlutz, S. a;nd Tjapsou, M. (2011). Schaum's Outline Of Theory and Problems Of Probability.New York: MCGraw Hill Professional.

Monga, G. (2002). Mcz/¢e"cz#.cs c7nd S/cz#.s/;.cLs/or Eco#o7„z.cs'. Noida: Vikas Publishing House PvtLtd. India.

Sp±egel, M. and StepherLs, L. (2011). Schaum's Outline Of Theory and Problems Of statistics. NowMCGraw Hill Professional.

(1968). Mathematics f;or Econon?ists; An Elementary Survey. 2:a ed. Now DeHhii...`E-Hal I ./\-I

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