Cover image for The fast forward MBA in business math
The fast forward MBA in business math
Garrity, Peter.
Personal Author:
Publication Information:
New York : Wiley, [2000]

Physical Description:
x, 342 pages : illustrations ; 26 cm.
Format :


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HF5691 .G317 2000 Adult Non-Fiction Non-Fiction Area

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This volume is designed designed to help readers master the basic quantitative skills that are part of any business environment. Key concepts covered include the time value of money, basic statistics, and an introduction to algebra.

Author Notes

Peter Garrity, PhD, is a professor at Columbia University Business School

Table of Contents

Part 1 Making Decisions with Time Value of Money: it Makes Centsp. 1
Chapter 1 The Basics of Time Value of Moneyp. 3
A Simpler Time: The Basic Definitionsp. 4
The Nature of Compound Interestp. 8
Time Value of Money and Your Calculatorp. 13
Applications of Future Valuep. 16
End Pointp. 24
Chapter 2 The Dynamics of Compoundingp. 25
Compounding in a Nutshellp. 25
Understanding Nominal and Effective Ratesp. 30
The Best Compounding Relationshipp. 36
Applications of Periodic Compoundingp. 41
End Pointp. 43
Chapter 3 The Significance of Present Valuep. 45
Defining Present Valuep. 45
Determining Rate of Returnp. 52
Finding the Annual Rate of Returnp. 53
Determining Time to Achieve a Specified Returnp. 54
Applications of Present Valuep. 55
End Pointp. 62
Chapter 4 The Fundamentals of Cash Flowsp. 65
Defining a Cash Flowp. 66
Defining Annuitiesp. 66
Annuity Structure of an IRA Planp. 73
The Present Value of an Annuityp. 73
Determining the Payment Amountp. 76
Applications of Cash Flow Analysisp. 78
End Pointp. 87
Chapter 5 The Beauty of Bondsp. 89
The Nature of Bondsp. 89
Defining Bondsp. 90
How Coupon Bonds Workp. 90
Cash Flow for a Zero-Coupon Bondp. 93
What Makes Bonds Attractive Investmentsp. 97
Applications of Bond Cash Flowsp. 108
Determining Yield to Maturityp. 111
End Pointp. 115
Chapter 6 The Decision-Making Power of Internal Rate of Return and Net Present Valuep. 117
How Companies Compare Returns among Competing Projectsp. 118
What the Internal Rate of Return Tells Youp. 122
Introducing Net Present Value (NPV)p. 127
Applications of IRR and NPVp. 133
End Pointp. 140
Part 2 Business Statistics: Making Decisions from Datap. 141
Chapter 7 Organizing Your Data for Better Decision Makingp. 143
Statistics in Actionp. 143
Descriptive versus Inferential Statisticsp. 144
Rules Regarding Samplingp. 148
Details Regarding Frequency Classesp. 151
The Mean as a Measure of Central Tendencyp. 157
The Median--Not Influenced by Outliersp. 163
Mean or Median--Which Is Better?p. 164
The Mode--Identifying the Clustersp. 165
Skewnessp. 166
Applications of Data Organization and Central Tendencyp. 166
End Pointp. 172
Chapter 8 Describing Variationp. 175
Defining Variationp. 176
The First Measure of Variation: Rangep. 177
The Second Measure of Variation: Average Deviationp. 178
A Better Measure of Variation: Variancep. 180
The Almighty Standard Deviationp. 182
The Coefficient of Variationp. 186
Applications of Data Variationp. 187
End Pointp. 191
Chapter 9 Fundamentals of Probability Distributionsp. 193
The Nature of Random Variablesp. 194
Discrete and Continuous Variablesp. 194
Introducing Probabilityp. 195
Expected Value and the Meanp. 203
Applications of the Binomial Distributionp. 206
End Pointp. 209
Chapter 10 Probability and the Normal Distributionp. 211
Perspective on the Normal Distributionp. 212
Finding Probabilities with the Normal Distributionp. 219
The Importance of Sketchingp. 219
Using the Standard Normal Distributionp. 220
The Importance of Sample Meansp. 227
Applications of the Normal Distributionp. 229
End Pointp. 237
Chapter 11 Hypothesis Testingp. 239
Hypothesis Testing and Quality Control--A Casep. 240
Defining the Null Hypothesis Setupp. 240
Creating a Null Hypothesisp. 241
Decision Options in Hypothesis Testingp. 242
Determining Risk with Type I and Type II Errorsp. 244
Using Level of Significance to Define Decision Limits or Critical Valuesp. 253
Applying Hypothesis Testingp. 255
End Pointp. 257
Chapter 12 Regression and Estimationp. 259
Correlation and Causationp. 260
The Difference between Regression and Correlationp. 260
Types of Regression Modelsp. 261
Conducting a Bivariate Studyp. 262
Mapping the Steps in Regression Analysisp. 264
Regression and the Computerp. 271
Applications of Regression Analysisp. 276
End Pointp. 287
Part 3 All the Algebra and High School Math You Need for Businessp. 289
Chapter 13 Algebra Reduxp. 291
Recommended Method of Proceedingp. 291
Operations with Numerical and Algebraic Expressionsp. 292
The Importance of Factoringp. 297
Solving First-Degree Equationsp. 299
Functionsp. 301
The Importance of Slopep. 306
Behavior of the Quadratic Functionp. 308
Solving Systems of Equationsp. 313
Behavior of the Exponential Functionp. 318
Behavior of e[superscript x] and Continuous Compoundingp. 321
Using Summation Notationp. 323
Using Logarithmsp. 324
Factorials and Their Applicationsp. 327
Appendix Time Value of Money and Standard Normal Distribution Tablesp. 331
Indexp. 338