Business Math

Discover how to leverage the power of numbers to make everyday decisions and better understand the world around you.

Introduction

• Welcome

1. The Power of Ratios and Percentages

• How to compare Olympic medals won in Rio
• Growth rates, the Rule of 72, and the danger of extrapolation
• Financial ratios and determining the unpaid inventory of Walmart
• Convert to percentages: Least common denominator, stock prices, and common-size financial statements
• Converting numbers: Mars, miles, dollars, and Usain Bolt

2. Applied Probability and Statistics

• Low-probability events: Fear of flying, black swans, and extinction of the dinosaurs
• Famous averages: Dow Jones and consumer prices
• Income distribution: The difference between mean and median
• Probabilities: Life insurance and the weather
• Conditional probabilities and counting cards
• Variance and the concept of risk

3. Numerical Planning and Measurement

• Numerical planning and everyday decisions
• Create, monitor, and evaluate your budget
• How many KPIs should an organization have?
• How the market responds so fast to an earnings announcement
• Forecast the timing and amount of a business loan

4. Interest: Paying and Earning

• Time value of candy (and money)
• The power of compound interest
• Loan payments and interest rates
• Start saving early for retirement

5. The Art of Numerical Estimation

• Numerical estimation: How many windshield wiper blades are sold in Salt Lake City each year?
• Calibrate uncertainty: What is the wingspan of a 747?
• Identifying key variables: What is the value of your neighbor's house?
• What would it cost to construct a custom-made oak table?

Conclusion

• Quick understandings that come from numbers