Overview

In this module, you will be introduced to some of the most important concepts in economics and finance that are essential for further study in Business and Finance. The module will encourage you to apply the techniques taught to a range of practical problems. It seeks to develop in you an appreciation of the role mathematics and statistics must play in your field.

You will cover marginal functions and elasticities, maximization of a function of one variable, profit maximization, functions of two variables, financial mathematics and compound interest and discounting, net present value and investment appraisal.

Through this course, you will gain foundational knowledge of key economics and finance concepts and how to apply mathematical techniques to solve real-world problems in these domains. The goal is for you to recognize the integral role math and stats play in business and finance professions.

During this course, participants will focus on the following areas of mathematics and statistics for economic analysis: - Marginal functions measure the rate of change of a function at a particular point. They are used to analyze how changes in one variable affect another variable. - Elasticities measure the responsiveness of one variable to changes in another variable. They are often used to measure the demand for a product or the supply of a product. - Profit maximisation is the problem of finding the level of output that maximizes a firm's profits. This can be done using marginal analysis or graphical analysis. - Functions of two variables are functions that have two independent variables. These functions can be used to model a variety of relationships, such as the demand for a product as a function of its price and the supply of a product as a function of its price. - Joint production refers to the production of two or more goods or services by a single firm. This can occur when the production of one good or service requires the use of the same inputs as the production of another good or service. - Financial mathematics is a branch of mathematics that deals with the calculation of financial quantities, such as interest and present values. This module will cover the concepts of compound interest and discounting, net present value, and investment appraisal.

Assessment Strategy

Threshold (40-49% / D- to D+): Student has made sufficient progress in the study of this module to achieve the lowest level of pass allowing for progression onto an undergraduate degree.

Satisfactory (50 – 59% / C- to C+): Student demonstrates reasonably comprehensive coverage of learning outcomes, indicating generally accurate understanding, based on lecture material and some core readings. Some gaps in knowledge and/or understanding evident.

Good (60-69% / B- to B+): Student has displayed a sound basic knowledge and understanding of much of the material studied in this module and achieved a high enough grade to indicate a clear ability to cope with the demands of an undergraduate level degree.

Excellent (70% + / A- to A*): Student has engaged consistently well with all aspects of the module and strong achievement in assessments indicates the ability to perform effectively at undergraduate degree level.

Learning Outcomes

• Apply all techniques to business, economics and finance problems involving cash flows such as revenues, costs, profit and interest.

• Apply mathematical methods to differentiate functions, find and classify stationary points as well as solving optimisation problems.