C03 fundamentals of business mathematics
On completion of this exam you will have learnt from the following topics:
- Basic mathematics – 15%
- Probability – 15%
- Summarising and analysing data – 15%
- Relationships between variables – 15%
- Forecasting – 15%
- Financial mathematics – 15%
- Spreadsheets – 10%
The C3:
Fundamentals of Business Mathematics introduces students to basic mathematics, probability, summarising and analysing data, variables, forecasting, financial mathematics and spreadsheets.
C3: A - Basic Mathematics (15%)
Indicative syllabus content:
- use of formulae, including negative powers as in the formula for the learning curve
- percentages and ratios
- rounding of numbers
- basic algebraic techniques and solution of equations, including simultaneous equations and quadratic equations
- manipulation of inequalities
C3: B - Probability (15%)
Indicative syllabus content:
- the relationship between probability, proportion and percent
- addition and multiplication rules in probability theory
- Venn diagrams
- expected values and expected value tables
- risk and uncertainty
C3: C - Summarising and Analysing Data (15%)
Indicative syllabus content:
- data and information
- tabulation of data
- graphs and diagrams: scatter diagrams, histograms, bar charts and ogives
- summary measures of central tendency and dispersion for both grouped and ungrouped data
- frequency distributions
- normal distribution, the Pareto distribution and 80:20 rule
- index numbers
C3: D - Interrelationships between Variables (15%)
Indicative syllabus content:
- scatter diagrams and the correlation coefficient
- simple linear regression
C3: E - Forecasting (15%)
Indicative syllabus content:
- time series analysis - graphical analysis
- trends in time series - graphs, moving averages and linear regression
- seasonal variations using both additive and multiplicative models
- forecasting and its limitations.
C3: F - Financial Mathematics (15%)
Indicative syllabus content:
- simple and compound interest
- annuities and perpetuities
- loans and mortgages
- sinking funds and savings funds
- discounting to find NPV and IRR and interpretation of NPV and IRR
C3: G - Spreadsheets (10%)
Indicative syllabus content:
- features and functions of commonly-used spreadsheet software: workbook, worksheet, rows, columns, cells, data, text, formulae, formatting, printing, graphics and macros. Note: Knowledge of Microsoft Excel type spreadsheet vocabulary/formulae syntax is required. Formulae tested will be that which is constructed by users rather than pre-programmed formulae
- advantages and disadvantages of spreadsheet software, when compared to manual analysis and other types of software application packages
- use of spreadsheet software in the day-to-day work of the chartered management accountant: budgeting, forecasting, reporting performance, variance analysis, what-if analysis, discounted cashflow calculations