CHAPTER TWO
Matrices and its applications
SECTION ONE: MATRIX
CONCEPTS
Section Objectives : Up on completing this
section, you will be able to:
 Know the definition and meaning of a matrix.
 Know dimension of a matrix and basic types of
matrices.
 Develop an insight towards basic operations in
matrix and the techniques.
 Develop know-how towards inverse of a matrix
 Build an insight on matrix algebra principles
and concepts.
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Definition of a Matrix
 Matrix - rectangular array of numbers,
parameters, or variables each of which has a
carefully ordered place within the matrix.
 The numbers (parameters or variables) are
referred to as elements of the matrix.
 The numbers in the horizontal line are called
rows; the numbers in a vertical line are called
columns.
 Elements enclosed in parentheses, brackets,
or braces to signify that they must be
considered as a whole and not individually.
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Matrix definition …
 Denoted by a single letter in bold face
type.
 First subscript in a matrix refers to the
row and the second subscript refers to
the column.
 A general matrix of order m x n is written
as:
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Matrix …
 Matrix X above has m rows and n columns or it
is said to be a matrix of order (size) m x n
(read as m by n).
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General matrix …
 The above 3x3 = 9 general matrix has 9
elements, arranged in three rows and three
columns.
 All elements have double subscripts which
give the address or placement of the element
in the matrix;
 First subscript identifies the row and the
second identifies the column in which the
element appears
 a23 is the element which appears in the
second row and the third column and a32 is
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Dimensions and Types of
Matrices
 Dimension of a matrix is defined
as the number of rows and
columns.
 Based on their dimension (order),
matrices are classified in to the
following types:
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Dimensions and Types of
Matrices
 Vector matrix – is a matrix, which consists of
just one row or just one column. It is an m x 1
or 1 x n matrix.
Row matrix/Row Vector: is a matrix that has
only one row and can have many columns.
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Dimensions and Types of
Matrices
 Column matrix/Column Vector: is a matrix
with one column and can have many rows.
It is also called n-th order matrix, 2x2, 3x3, nxn
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Dimensions and Types of
Matrices
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Dimensions and Types of
Matrices
 F. Unit matrix (Identity matrix): is a type of
diagonal matrix where its main (Primary) diagonal
elements are equal to one. Denoted by I
 “ An identity matrix is a scalar matrix but a
scalar matrix may not be an identity
matrix”.
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Dimensions and Types of
Matrices
 N.B. Each identity matrix is a square matrix
 * Primary diagonal represents: a11, a22, a33,
a44---------ann entries element
 A x I = A & I x A = A that is, the product of
any given matrix & the identity matrix is the
given matrix itself.
 Thus, the identity matrix behaves in a matrix
multiplication like number 1 in an ordinary
arithmetic.
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 G. A null matrix (zero matrix): a matrix is
called a null matrix if all its elements are zero.
Denoted by 0mxn
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 H. A symmetric matrix: a matrix is said to be
symmetric if A = At.
Transpose matrix: let A be an mxn matrix. The transpose
of A, denoted by 𝐴𝑡
or A’ is an nxm matrix which is
obtained by interchanging rows and columns of A
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I. Idempotent matrix: this is a matrix having the
property that 𝐴2
=A.
what do you conclude about the relationship of scalar
matrix and diagonal matrix? And about unit matrix and
scalar matrix?
Every scalar matrix is a diagonal matrix; whereas a
diagonal matrix need not be a scalar matrix. Every unit
matrix is a scalar matrix; whereas a scalar matrix need
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Matrix Operations and
Properties
1. Matrix equality: two matrices are said to
be equal if and only if they have the same
dimension and corresponding elements of
each matrix are equal.
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Matrix Operations and
Properties
2. Transpose of a matrix: If the rows and
columns of a matrix are interchanged the new
matrix is known as the transpose of the original
matrix.
 If the original matrix is denoted by A, the
transpose is denoted by 𝐴′
or 𝐴𝑡
.
 Transposition means interchanging the rows or
columns of a given matrix.
 That is, the rows become columns and the
columns become rows.
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Matrix Operations and
Properties
The dimension of B is changed from 3x4 to
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Matrix Operations and
Properties
Properties of the transpose
The following properties are held for the
transpose of a matrix:
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Properties …
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Matrix Operations and
Properties
3. Addition and subtraction of matrices: Two matrices A
and B with the same order can be added or subtracted
(which is the same number of rows and columns).
 Number of columns of matrix A is equal to the
number of columns of matrix B, and the number of
rows of matrix A is equal to the number of rows of
matrix B.
 Two matrices of the same order are said to be
conformable for addition and subtraction.
 The sum and subtraction of two matrices of the
same order is obtained by adding together or
subtracting corresponding elements of the two
matrices.
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Matrix Operations and
Properties
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Matrix Operations and
Properties
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Matrix Operations and
Properties
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Properties …
c. Existence of identity: A+ 0 = 0 + A = A.
 Note: The subtraction (difference) of two
matrices of the same order is obtained by
subtracting corresponding elements.
 Referring to the above matrices given in
(a);
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Matrix Operations and
Properties
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Matrix Operations and
Properties
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Matrix Multiplication
 Two matrices A and B can be multiplied
together to get AB if the number of columns in
A is equal to the number of rows in B.
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Matrix Multiplication
 If two matrices have the same inner
dimension, then we can get the product of
the matrices.
 The resulting matrix will have a dimension
equal to the outer dimensions of the two
matrices.
 There are two types of matrix
multiplication:
1. multiplication by a scalar and
2. multiplication by a matrix.
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Matrix Multiplication
1. By a constant (scalar multiplication)
 A matrix can be multiplied by a constant, by
multiplying each component in the matrix by a
constant.
 The result is a new matrix of the same dimension
as the original matrix.
 If K is any real number & A is an M x N matrix,
then the product KA is defined to be the matrix
whose components are given by K times the
corresponding component of A; i.e.
 KA = Kaij (m x n)
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By Constant
Laws of scalar multiplication
• The operation of multiplying a matrix by a constant
(a scalar) has the following basic properties.
• If X & Y are real numbers & A & B are m x n
matrices, conformable for addition, then
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Laws …
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Laws ….
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Laws…
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Laws…
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Laws …
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Laws…
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Laws ….
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b ) Matrix by matrix
multiplication
 If A & B are two matrices, the product AB is
defined if and only if the number of Columns in
A is equal to the number of rows in B, i.e. if A is
an m x n matrix, B should be an n x b.
 If this requirement is met., A is said to be
conformable to B for multiplication. The matrix
resulting from the multiplication has dimension
equivalent to the number of rows in A & the
number columns in B
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Matrix by matrix …
 If A is a matrix of dimension n x m (which has
m columns) & B is a matrix of dimension p x q
(which has p rows) and if m and p aren’t the
same product A.B is not defined.
 That is, multiplication of matrices is possible
only if the number of columns of the first
equals the number of rows of the second.
 If A is of dimension n x m & if B is of
dimension m x p, then the product A.B is of
dimension n x p
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Matrix by matrix …
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Special properties of matrix
multiplication
1. The associative & distributive laws of
ordinary algebra apply to matrix multiplication.
 Given three matrices A, B & C which are
conformable for multiplication,
 A (BC) = AB (C)  Associative law, (not C
(AB)
 A (B+C) = AB + AC  Distributive property
 (A + B) C = AC + BC  Distributive property
 Property 3: If I is an identity matrix, then; AI =
IA =A
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 In general, as long as the order of the matrix is
maintained, matrix multiplication is associative,
but matrix multiplication is not commutative
except for:
a) The multiplication of a matrix with an identity
matrix;
i.e. A.I = I. A =A
b) The multiplication of a matrix with its inverse;
i.e., A.A-1 = A-1.A = I
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Examples
1. Interest at the rates of 0.06, 0.07
and 0.08 is earned on respective
investments of $3000, $2000 and
$4000.
a) Express the total amount of interest
earned as the product of a row vector
by a column vector.
b) Compute the total interest by matrix
multiplication.
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 Finfine Furniture Factory (3F) produces three
types of executive chairs namely A, B and C.
The following matrix shows the sale of
executive chairs in two different cities.
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 If the cost of each chair (A, B and C)
is Birr 1000, 2000 and 3000
respectively, and the selling price is
Birr 2500, 3000 and 4000
respectively;
a) Find the total cost of the factory for
the total sale made.
b) Find the total profit of the factory.
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Special pro…..
2. On the other hand, the commutative law of
multiplication doesn’t apply to matrix
multiplication.
 For any two real numbers X & Y, the product
XY is always identical to the product YX.
 But for two matrices A & B, it is not generally
true that AB equals BA.
 (In the product AB, we say that B is pre
multiplied by A & that A is post multiplied by
B.)
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Special pro…..
3. In many instances for two matrices, A &
B, the product AB may be defined while the
product BA is not defined or vice versa.
 In some special cases, AB does equal BA.
In such special cases A & B are said to be
commute.
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Special pro…
4. Another unusual property of matrix
multiplication is that the product of two
matrices can be zero even though neither
of the two matrices themselves are zero:
we can’t conclude from the result AB = 0 that at
least one of the matrices A or B is a zero matrix
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Special pro…
5. Also we can’t, in matrix algebra, necessarily
conclude from the result AB = AC that B= C even
if A  0.
Thus the cancellation law doesn’t hold, in
general, in matrix multiplication
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The multiplicative inverse of a
matrix
 If A is a square matrix of order n, then a square
matrix of its inverse (A-1) of the same order n is
said to be the inverse of A, if and only if A x A-1
= I = A-1 x A
 Two square matrices are inverse of each other,
if their product is the identity matrix.
 AA-1 = A-1 A = I
 Not all matrices have an inverse. In order for a
matrix to have an inverse, the matrix must, first
of all, be a square matrix.
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… inverse…
 Still not all square matrices have inverse.
 If a matrix has an inverse, it is said to be INVERTIBLE
OR NON-SINGULAR.
 A matrix that doesn’t have an inverse is said to be
singular.
 An invertible matrix will have only one inverse; that is, if
a matrix does have an inverse, that inverse will be
unique.
Note:
a) Inverse of a matrix is defined only for square matrices
b) If B is an inverse of A, then A is also an inverse of B
c) Inverse of a matrix is unique
d) If matrix A has an inverse, A is said to be invertible &
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Finding the inverse of a
matrix
 Lets begin by considering a tabular format
where the square matrix A is AUGMENTED
with an identity matrix of the same order as A /
I i.e. the two matrices separated by a vertical
line
 Now if the inverse matrix A-1 were known, we
could multiply the matrices on each side of the
vertical line by A-1 as
 AA-1 / A-1 I
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 Then because AA-1 = I & A-1I = A-1, we would have I / A-
1. We don’t follow this procedure, because the inverse
is not known at this juncture, we are trying to determine
the inverse.
 We instead employ a set of permissible row
operations on the augmented matrix A / I to transform
A on the left of the vertical line in to an identity matrix (I).
 As the identity matrix is formed on the left of the vertical
line, the inverse of A is formed on the right side.
 The allowable manipulations are called Elementary raw
operations.
 ELEMENTARY ROW OPERATIONS: are operations
permitted on the rows of a matrix.
 In a matrix Algebra there are three types of row
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… three types of row operations
 Type 1: Any pair of rows in a matrix
may be interchanged / Exchange
operations
 Type 2: a row can be multiplied by
any non-zero real number / Multiple
operation
 Type 3: a multiple of any row can be
added to any other row. / Add A-
multiple operation
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In short the operation can be
expressed as
 Interchanging rows
 The multiplication of any row by a
non-zero number.
 The addition / subtraction of (a
multiple of) one row to /from another
row
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Theorem on row operations
 A row operation performed on product of two
matrices is equivalent to row operation
performed on the pre factor matrix.
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Ones first method
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Ones first method
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Ones first method
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Ones first method
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Zeros first method

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Find the inverse for the following
matrices (if exist)
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MATRIX APPLICATIONS
I. n by n systems
 Solving Systems of Linear Equations
 Systems of linear equations can be solved
using different methods. Some are:
Estimation method – for two (2) variable
problems (equation)
 Matrix method
- Inverse method
- Gaussian method
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Inverse method:
Steps
1. Change the system of linear equation into matrix
form.
2. The result will be 3 different matrices constructed
using
coefficient of the variables,
unknown values and
right hand side (constant) values
3. Find the inverse of the coefficient matrix
4. Multiply the inverse of coefficient matrix with the
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Inverse method:
 2X + 3Y = 4
 X + 2Y = 2
 Given this
system of linear
equation,
applying Inverse
method we can
find the
unknown
values.
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Inverse method:
Step 1. Change it into matrix form
 Using coefficient construct one matrix i.e. coefficient
matrix
 Using the unknown variables construct unknown
matrix & it is a column vector (a matrix which has
one column)
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 Using the constant values again construct
vector of constant
 Step 2. Find inverse of the coefficient matrix
 Now we are familiar how to find an inverse for
any square matrix.
 Assuming once first method find the inverse
for matrix
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 Step 3. Multiply the coefficient inverse with the
vector of constant
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 Then X = 2 and Y = 0 that is unique solution
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 The logic is these given three
matrices, coefficient matrix, unknown
matrix and vector of constant in the
following order.
 AX = B
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Limitations of inverse method
 It is only used whenever the
coefficient matrix is square matrix
 In addition to apply the method the
coefficient matrix needs to have an
inverse
 It doesn’t differentiate between no
solution and infinite solution cases.
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Gausian method
 It is developed by a mathematician
Karl F. Gauss (1777-1855).
 It helps to solve systems of linear
equations with different solution
approaches i.e. unique solution, no
solution and infinite solution cases.
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Gauss …. “n” by “n” systems
Step:
1. Change the system of linear equation into a
matrix form
2. Augment the coefficient matrix with the vector
of constant.
3. Change the coefficient matrix into identity form
by applying elementary row operation and
apply the same on the vector of constant.
4. The resulting values of the vector of constant
will be the solution or the value of the unknown
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Step: 3. Change the coefficient matrix into identity
form by applying elementary row operation (use
ones first method)
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 Change first the primary diagonal
entry from the first row into positive
one.
 Possible operation is exchange row
one with row two.
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 Next change the remaining numbers
in the first column into zero, this case
number 2
 Now multiply the 1st row by –2 & add
the result to row –2
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 Then proceed to column 2 and
change the primary diagonal entry i.e.
–1 into 1 Multiply the 2nd row by –1 (-
1R2)
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 Now change the remaining number
with in the same column (column –2)
into zero i.e. number 2
 Multiply 2nd row by –2 and add the
result to the 1st row
 Therefore X = 2 and Y = 0
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 The next step is changing the primary
diagonal entry in the 2nd row to 1.
 But there is no possible operation that can
enable you to change it in to number 1
 Therefore the implication is that you can’t
go further but we can observe something
from the result.
 And it is implying an infinite solution case
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 Note:
 An equation is an expression that has an equal sign (=)
in between. For example, 4+3 = 7.
 An expression consists of variables like x or y and
constant terms which are conjoined together using
algebraic operators. For example, 2x + 4y - 9 where x
and y are variables and 9 is a constant.
 As far as we look there is usually one solution to an
equation.
 But it is not impossible that an equation cannot have
more than one solution or an infinite number of solutions
or no solutions at all.
 Having no solution means that an equation has no
answer whereas infinite solutions of an equation mean
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Change the encircled number
above in to zero
 Multiply the first row by –1 & add the
result to the 2nd row.
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 There is no possible operation that we
can apply in order to change the primary
diagonal entry in the 2nd column without
affecting the first column structure.
 Therefore stop there, but here we can
observe something i.e. it is no solution
case.
 Therefore, Gaussian method makes a
distinction between No solution & infinite
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 Summarizing our results for solving an “n” by “n”
system, we start with the matrix.
 (A/B), & attempt to transform it into the matrix (I/C)
one of the three things will result.
1. an “n” by “n” matrix with the unique solution.
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2. A row that is all zeros except in the constant column,
indicating that there are no solutions,
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3. A matrix in a form different from (1) & (2),
indicating that there are an unlimited
number of solutions.
Note that for an n by n system, this case
occurs when there is a row with all zeros,
including the constant column.
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II M by n linear systems
 The m x n linear systems are those
systems where the number of rows
(m) and number of columns (n) are
unequal
 Or it is the case where the number of
equations (m) & the number of
variables (n) are unequal.
 And it may appear as m > n or m < n.
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Linear equation where m > n
To solve an m by n system of
equations with m > n, we start
with the matrix (A/B) and
attempt to transform it into the
matrix (I/C).
 One of the three things will
result:
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1. An m by n identifying matrix above m – n
bottom rows that are all zeros, giving the
unique solution:
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2. A row that is m – n bottom raw is all zeros
except in the constant column, indicating
that there are no solutions
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3. A matrix in a form different from (1) & (2),
indicating that there are an unlimited
number of solutions
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Linear Equations where m < n
 Our attempts to transform (A/B) into (I/C)
in the case where m < n will result in:
1. A raw which is all zeros except in the constant
columns, indicating that there are no solutions,
or
2. A matrix in a form different from number one
above indicating that there are an unlimited
number of solutions.
 “Every system of linear equations has either No
solution, Exactly one solution or infinitely many
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Example
Solve the following systems of linear
equations
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Solution for an “n” by “n” system
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Solution …
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Solution …
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“m” by “n” systems
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“m” by “n” systems
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“m” by “n” systems
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m by n system where m <n
 i.e. Number of equations are less than # of variables
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Word problems
 Steps
1. Represent one of the unknown quantities by a
letter usually X & express other unknown quantities
if there is any in terms of the same letter like X1, X2
etc
2. Translate the quantities from the statement of the
problem in to algebraic form & set up an equation
3. Solve the equation (s) for the unknown that is
represented by the letter & find other unknowns
from the solution
4. check the findings according to the statement in
the problem
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Word problems, Example:
1) A Manufacturing firm which manufactures office
furniture finds that it has the following variable costs
per unit in dollar/unit
Assume that an order of 5 desks, 6 chairs, & 4 tables &
12 cabinets has just been received. What is the total
material, labor & overhead costs associated with the
production of ordered items?
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Solution …
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Example …
2. Kebede carpet co. has an inventory of 1,500
square yards of wool & 1,800 square yards of
nylon to manufacture carpeting. Two grades of
carpeting are produced. Each roll of superior
grade carpeting requires 20 sq. yards of wool &
40sq. yards of nylon. Each roll of quality-grade
carpeting requires 30 square yards of wool &
30 square yard of nylon. If Kebede would like to
use all the material in inventory, how many rolls
of superior & how many rolls of quality
carpeting should be manufactured?
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Solution …
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Example 3:
3. Getahun invested a total of br.
10000 in three different saving
accounts. The accounts paid simple
interest at an annual rate of 8%, 9% &
7.5% respectively. Total interest earned
for the year was br. 845. The amount in
the 9% account was twice the amount
invested in the 7.5% account. How
much did Getahun invest in each
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Solution …
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Exercise … solve the following
cases
1. A certain manufacturer produces two product P & q.
Each unit of product P requires (in its production) 20
units of row material A & 10 units of row material B.
each unit of product q requires 30 units of raw material
A & 50 units of raw maternal B. there is a limited supply
of 1200 units of raw material A & 950 units of raw
material B. How many units of P & Q can be produced
if we want to exhaust the supply of raw materials? :
Ans. 45 units of P and 10 units of Q
2. Attendance records indicate that 80,000 South Koreans
attended the 2002 world cup at its opening ceremony.
Total ticket receipts were Birr 3,500,000. Admission
prices were Birr 37.5 for the second-class and Birr
62.50 for the first class. Determine the number of South
Koreans who attended the football game at first class
and second class.
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Markov Chains
 This model is a
forecasting model.
 Probabilistic (stochastic)
model.
 A Russian Mathematician
called Andrew Markov
around 1907 develops
this model.
 Markov chains are
models, which are useful
in studying the evolution
of certain systems over
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 These repeated trials are often successive time
periods where the state (outcome condition) of
the systems in any particular time period can’t be
determined with certainty.
 Therefore, a set of transition probabilities is used
to describe the manner in which the system makes
transition from one period to the next.
 Used to predict the probabilities of the system being
in a particular state at a given time period.
 We can also talk about the long run or equilibrium
or steady state.
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The necessary assumptions of
the chain:
1. The outcome in any given period depends on
its state in the Preceding period & on the
transition probabilities
2. The transition probabilities are constant
overtime
3. Change in the system will occur once & only
once each period eg. If it’s a week, its only
once in a week
4. The transition period occurs with regularities
* if we start with days, we use the day until we
reach our end.
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Information flow in the
analysis
The Markov model is based on
two sets of input data
The set of transition
probabilities
The existing or initial or current
conditions or states
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Information flow in the
analysis
 The Markov process describes the
movement of a system from a
certain state in the current
state/time period to one of n
possible states in the next stage.
 The system makes in an uncertain
environment, all that is known is the
probability associated with any
possible move or transition.
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Information flow in the
analysis
 This probability is known as transition
probability, symbolized by Pij.
 It is the likelihood that the system which is
currently in state i will move to state j in
the next period.
 From these inputs the model makes two
predictions usually expressed as vectors.
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1. The probabilities of the system being in
any state at any given future time
period
2. The long run (equilibrium) or steady
state probabilities.
 The set of transition probabilities are
necessary for both prediction (time period
n, & steady state), but the initial state is
needed for only the first prediction.
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Example
 Currently its known that 80% of customers shop at
store 1 & 20% shop at store 2. In reviewing a past
data suppose we find that out of all customer who
shopped at store 1 in a given week 90% remain loyal
for the next week (store one again), 10% switch to
store 2. On the other hand, out of all customers who
shopped at store 2, in a given week 80% remains
loyal for the next week (store 2 again), 20% switch to
store 1. What will be the proportion of customers
shopping at store 1 & 2 in each of the next two
weeks.
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Solution…
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Solution …
Transition probability matrix is a square
matrix such that each entry indicates the
probability of the system moving from a
given state to another state.
• The sum of rows in the transition matrix should
be 1
• We have to be consistent in writing the
elements
• We also know that each entry in the P
matrix must be nonnegative.
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Markov Chain Formula
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For the Above example
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For the Above example
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b) Long run market share
Assumption: In the log run the share of
the systems is assumed to be constant.
Let : The share of store 1 in the long run
be V1 and The share of store 2 in the
long run be V2
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Prediction:
 Long run: only the transition matrix
 At specified time:- the transition
matrix & state vector. Hence unless
the transition matrix is affected, the
long run state will not be affected.
 Moreover, we can’t know the number
of years, weeks to attain the long run
state / point but we can know the
share
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Exercises
 1. A division of the ministry of public health has
conducted a simple survey on the public attitude to
wards smoking . From the results of the survey the
department concluded that currently only 20% of
the population smokes cigarette & every month 10%
of non-smokers become smokers where as 5% of
smokers discontinue smoking.
 Required:
1. Write the current & transition matrices
2. What will be the proportion of the non-users (non-
smokers) & users (smokers) in the long run
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Solution
 Let U – stands for Smokers
 N – stands for non-Smokers
 Initial state VUN
(0) = (0.2 0.8)
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Exercise
 2. A population of 100,000 consumers make the
following purchases during a particular week: 20000
purchase Brand A, 35,000 Brand B & 45000 purchase
neither Brand. From a market study, it is estimated that
of those who purchase Brand A, 80% will purchase it
again next week, 15% will purchase brand B next week,
& 5% will purchase neither brand. Of those who
purchase B, 85% will purchase it again next week, 12%
will purchase brand A next week, & 3% will purchase
neither brand. Of those who purchase neither brand,
20% will purchase A next week, 15% will purchase
Brand B next week, & 65% will purchase neither brand
next week. If this purchasing pattern continues, will the
market stabilize? What will the stable distribution be?
 Yes. The share of A, B and C is = (0.4 0.5 0.1)
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Solution
 2) Given: 20,000 purchase brand A
 35,000 purchase brand B
 45,000 purchase neither brand
Total consumers = 100,000 (20,000 + 35,000 +
45,000)
 Let VA represents the share of brand A purchasers
 VB represents the share of Brand B purchasers
 VN represent the share of neither brand
purchasers
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The stable market means the long run or
steady state market because it is noted
that in the long run the share will be
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Solution …. 2
 And in the long run we have said that the share at n
period is equal with the share at n + 1 period.
Therefore
 (The share at n period) x (the transition
probabilities) = (the share at n + 1 period)
 Let the share of brand A purchasers be V1 in the
long run
 the share of brand B purchasers be V2 in the
long run
 the share of neither purchasers be V3 in the long
run
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Solution ….2
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Solution ….2
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Solution ….2
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Solution ….2
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Solution ….2
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Solution ….2
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Exercise ….3
 3. A vigorous television advertising campaign is
conducted during the football reason to promote a
well-known brand X shaving cream. For each of
several weeks, a survey is made & it is found that
each week 80% of those using brand X continue to
use it & 20% switch. It is also found that those not
using brand X, 20% switch to brand X while the other
80% continue using another brad.
 a) Write the transition matrix, assuming the transition
percentage continue to hold for succeeding weeks.
 b) If 20% of the people are using brand X at the
start of the advertising campaign, what percentage
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Solution …3
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Solution …3
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Solution …3
 The proportion of brand X and other brand users
after one week period is expected to be 32% and
68% respectively. Then the expected users in the
2nd week will be
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Solution …3
 The expected share of brand X and
other brand users is 39.2% and
60.8% in the second week.
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UNIT 3: INTRODUCTION TO
LINEAR PROGRAMMING
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2 Chapter Two matrix algebra and its application.pptx

  • 1.
    CHAPTER TWO Matrices andits applications
  • 2.
    SECTION ONE: MATRIX CONCEPTS SectionObjectives : Up on completing this section, you will be able to:  Know the definition and meaning of a matrix.  Know dimension of a matrix and basic types of matrices.  Develop an insight towards basic operations in matrix and the techniques.  Develop know-how towards inverse of a matrix  Build an insight on matrix algebra principles and concepts. 2 5/19/2024
  • 3.
    Definition of aMatrix  Matrix - rectangular array of numbers, parameters, or variables each of which has a carefully ordered place within the matrix.  The numbers (parameters or variables) are referred to as elements of the matrix.  The numbers in the horizontal line are called rows; the numbers in a vertical line are called columns.  Elements enclosed in parentheses, brackets, or braces to signify that they must be considered as a whole and not individually. 3 5/19/2024
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    Matrix definition … Denoted by a single letter in bold face type.  First subscript in a matrix refers to the row and the second subscript refers to the column.  A general matrix of order m x n is written as: 4 5/19/2024
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    Matrix …  MatrixX above has m rows and n columns or it is said to be a matrix of order (size) m x n (read as m by n). 6 5/19/2024
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    General matrix … The above 3x3 = 9 general matrix has 9 elements, arranged in three rows and three columns.  All elements have double subscripts which give the address or placement of the element in the matrix;  First subscript identifies the row and the second identifies the column in which the element appears  a23 is the element which appears in the second row and the third column and a32 is 7 5/19/2024
  • 8.
    Dimensions and Typesof Matrices  Dimension of a matrix is defined as the number of rows and columns.  Based on their dimension (order), matrices are classified in to the following types: 8 5/19/2024
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    Dimensions and Typesof Matrices  Vector matrix – is a matrix, which consists of just one row or just one column. It is an m x 1 or 1 x n matrix. Row matrix/Row Vector: is a matrix that has only one row and can have many columns. 9 5/19/2024
  • 10.
    Dimensions and Typesof Matrices  Column matrix/Column Vector: is a matrix with one column and can have many rows. It is also called n-th order matrix, 2x2, 3x3, nxn 10 5/19/2024
  • 11.
    Dimensions and Typesof Matrices 11 5/19/2024
  • 12.
    Dimensions and Typesof Matrices  F. Unit matrix (Identity matrix): is a type of diagonal matrix where its main (Primary) diagonal elements are equal to one. Denoted by I  “ An identity matrix is a scalar matrix but a scalar matrix may not be an identity matrix”. 12 5/19/2024
  • 13.
    Dimensions and Typesof Matrices  N.B. Each identity matrix is a square matrix  * Primary diagonal represents: a11, a22, a33, a44---------ann entries element  A x I = A & I x A = A that is, the product of any given matrix & the identity matrix is the given matrix itself.  Thus, the identity matrix behaves in a matrix multiplication like number 1 in an ordinary arithmetic. 13 5/19/2024
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     G. Anull matrix (zero matrix): a matrix is called a null matrix if all its elements are zero. Denoted by 0mxn 14 5/19/2024
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     H. Asymmetric matrix: a matrix is said to be symmetric if A = At. Transpose matrix: let A be an mxn matrix. The transpose of A, denoted by 𝐴𝑡 or A’ is an nxm matrix which is obtained by interchanging rows and columns of A 15 5/19/2024
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    I. Idempotent matrix:this is a matrix having the property that 𝐴2 =A. what do you conclude about the relationship of scalar matrix and diagonal matrix? And about unit matrix and scalar matrix? Every scalar matrix is a diagonal matrix; whereas a diagonal matrix need not be a scalar matrix. Every unit matrix is a scalar matrix; whereas a scalar matrix need 16 5/19/2024
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    Matrix Operations and Properties 1.Matrix equality: two matrices are said to be equal if and only if they have the same dimension and corresponding elements of each matrix are equal. 17 5/19/2024
  • 18.
    Matrix Operations and Properties 2.Transpose of a matrix: If the rows and columns of a matrix are interchanged the new matrix is known as the transpose of the original matrix.  If the original matrix is denoted by A, the transpose is denoted by 𝐴′ or 𝐴𝑡 .  Transposition means interchanging the rows or columns of a given matrix.  That is, the rows become columns and the columns become rows. 18 5/19/2024
  • 19.
    Matrix Operations and Properties Thedimension of B is changed from 3x4 to 19 5/19/2024
  • 20.
    Matrix Operations and Properties Propertiesof the transpose The following properties are held for the transpose of a matrix: 20 5/19/2024
  • 21.
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    Matrix Operations and Properties 3.Addition and subtraction of matrices: Two matrices A and B with the same order can be added or subtracted (which is the same number of rows and columns).  Number of columns of matrix A is equal to the number of columns of matrix B, and the number of rows of matrix A is equal to the number of rows of matrix B.  Two matrices of the same order are said to be conformable for addition and subtraction.  The sum and subtraction of two matrices of the same order is obtained by adding together or subtracting corresponding elements of the two matrices. 22 5/19/2024
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    Properties … c. Existenceof identity: A+ 0 = 0 + A = A.  Note: The subtraction (difference) of two matrices of the same order is obtained by subtracting corresponding elements.  Referring to the above matrices given in (a); 27 5/19/2024
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    Matrix Multiplication  Twomatrices A and B can be multiplied together to get AB if the number of columns in A is equal to the number of rows in B. 31 5/19/2024
  • 32.
    Matrix Multiplication  Iftwo matrices have the same inner dimension, then we can get the product of the matrices.  The resulting matrix will have a dimension equal to the outer dimensions of the two matrices.  There are two types of matrix multiplication: 1. multiplication by a scalar and 2. multiplication by a matrix. 32 5/19/2024
  • 33.
    Matrix Multiplication 1. Bya constant (scalar multiplication)  A matrix can be multiplied by a constant, by multiplying each component in the matrix by a constant.  The result is a new matrix of the same dimension as the original matrix.  If K is any real number & A is an M x N matrix, then the product KA is defined to be the matrix whose components are given by K times the corresponding component of A; i.e.  KA = Kaij (m x n) 33 5/19/2024
  • 34.
    By Constant Laws ofscalar multiplication • The operation of multiplying a matrix by a constant (a scalar) has the following basic properties. • If X & Y are real numbers & A & B are m x n matrices, conformable for addition, then 34 5/19/2024
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    b ) Matrixby matrix multiplication  If A & B are two matrices, the product AB is defined if and only if the number of Columns in A is equal to the number of rows in B, i.e. if A is an m x n matrix, B should be an n x b.  If this requirement is met., A is said to be conformable to B for multiplication. The matrix resulting from the multiplication has dimension equivalent to the number of rows in A & the number columns in B 43 5/19/2024
  • 44.
    Matrix by matrix…  If A is a matrix of dimension n x m (which has m columns) & B is a matrix of dimension p x q (which has p rows) and if m and p aren’t the same product A.B is not defined.  That is, multiplication of matrices is possible only if the number of columns of the first equals the number of rows of the second.  If A is of dimension n x m & if B is of dimension m x p, then the product A.B is of dimension n x p 44 5/19/2024
  • 45.
    Matrix by matrix… 45 5/19/2024
  • 46.
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  • 48.
    Special properties ofmatrix multiplication 1. The associative & distributive laws of ordinary algebra apply to matrix multiplication.  Given three matrices A, B & C which are conformable for multiplication,  A (BC) = AB (C)  Associative law, (not C (AB)  A (B+C) = AB + AC  Distributive property  (A + B) C = AC + BC  Distributive property  Property 3: If I is an identity matrix, then; AI = IA =A 48 5/19/2024
  • 49.
     In general,as long as the order of the matrix is maintained, matrix multiplication is associative, but matrix multiplication is not commutative except for: a) The multiplication of a matrix with an identity matrix; i.e. A.I = I. A =A b) The multiplication of a matrix with its inverse; i.e., A.A-1 = A-1.A = I 49 5/19/2024
  • 50.
    Examples 1. Interest atthe rates of 0.06, 0.07 and 0.08 is earned on respective investments of $3000, $2000 and $4000. a) Express the total amount of interest earned as the product of a row vector by a column vector. b) Compute the total interest by matrix multiplication. 50 5/19/2024
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     Finfine FurnitureFactory (3F) produces three types of executive chairs namely A, B and C. The following matrix shows the sale of executive chairs in two different cities. 53 5/19/2024
  • 54.
     If thecost of each chair (A, B and C) is Birr 1000, 2000 and 3000 respectively, and the selling price is Birr 2500, 3000 and 4000 respectively; a) Find the total cost of the factory for the total sale made. b) Find the total profit of the factory. 54 5/19/2024
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    Special pro….. 2. Onthe other hand, the commutative law of multiplication doesn’t apply to matrix multiplication.  For any two real numbers X & Y, the product XY is always identical to the product YX.  But for two matrices A & B, it is not generally true that AB equals BA.  (In the product AB, we say that B is pre multiplied by A & that A is post multiplied by B.) 58 5/19/2024
  • 59.
    Special pro….. 3. Inmany instances for two matrices, A & B, the product AB may be defined while the product BA is not defined or vice versa.  In some special cases, AB does equal BA. In such special cases A & B are said to be commute. 59 5/19/2024
  • 60.
    Special pro… 4. Anotherunusual property of matrix multiplication is that the product of two matrices can be zero even though neither of the two matrices themselves are zero: we can’t conclude from the result AB = 0 that at least one of the matrices A or B is a zero matrix 60 5/19/2024
  • 61.
    Special pro… 5. Alsowe can’t, in matrix algebra, necessarily conclude from the result AB = AC that B= C even if A  0. Thus the cancellation law doesn’t hold, in general, in matrix multiplication 61 5/19/2024
  • 62.
    The multiplicative inverseof a matrix  If A is a square matrix of order n, then a square matrix of its inverse (A-1) of the same order n is said to be the inverse of A, if and only if A x A-1 = I = A-1 x A  Two square matrices are inverse of each other, if their product is the identity matrix.  AA-1 = A-1 A = I  Not all matrices have an inverse. In order for a matrix to have an inverse, the matrix must, first of all, be a square matrix. 62 5/19/2024
  • 63.
    … inverse…  Stillnot all square matrices have inverse.  If a matrix has an inverse, it is said to be INVERTIBLE OR NON-SINGULAR.  A matrix that doesn’t have an inverse is said to be singular.  An invertible matrix will have only one inverse; that is, if a matrix does have an inverse, that inverse will be unique. Note: a) Inverse of a matrix is defined only for square matrices b) If B is an inverse of A, then A is also an inverse of B c) Inverse of a matrix is unique d) If matrix A has an inverse, A is said to be invertible & 63 5/19/2024
  • 64.
    Finding the inverseof a matrix  Lets begin by considering a tabular format where the square matrix A is AUGMENTED with an identity matrix of the same order as A / I i.e. the two matrices separated by a vertical line  Now if the inverse matrix A-1 were known, we could multiply the matrices on each side of the vertical line by A-1 as  AA-1 / A-1 I 64 5/19/2024
  • 65.
     Then becauseAA-1 = I & A-1I = A-1, we would have I / A- 1. We don’t follow this procedure, because the inverse is not known at this juncture, we are trying to determine the inverse.  We instead employ a set of permissible row operations on the augmented matrix A / I to transform A on the left of the vertical line in to an identity matrix (I).  As the identity matrix is formed on the left of the vertical line, the inverse of A is formed on the right side.  The allowable manipulations are called Elementary raw operations.  ELEMENTARY ROW OPERATIONS: are operations permitted on the rows of a matrix.  In a matrix Algebra there are three types of row 65 5/19/2024
  • 66.
    … three typesof row operations  Type 1: Any pair of rows in a matrix may be interchanged / Exchange operations  Type 2: a row can be multiplied by any non-zero real number / Multiple operation  Type 3: a multiple of any row can be added to any other row. / Add A- multiple operation 66 5/19/2024
  • 67.
    In short theoperation can be expressed as  Interchanging rows  The multiplication of any row by a non-zero number.  The addition / subtraction of (a multiple of) one row to /from another row 67 5/19/2024
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    Theorem on rowoperations  A row operation performed on product of two matrices is equivalent to row operation performed on the pre factor matrix. 69 5/19/2024
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    Find the inversefor the following matrices (if exist) 76 5/19/2024
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    MATRIX APPLICATIONS I. nby n systems  Solving Systems of Linear Equations  Systems of linear equations can be solved using different methods. Some are: Estimation method – for two (2) variable problems (equation)  Matrix method - Inverse method - Gaussian method 85 5/19/2024
  • 86.
    Inverse method: Steps 1. Changethe system of linear equation into matrix form. 2. The result will be 3 different matrices constructed using coefficient of the variables, unknown values and right hand side (constant) values 3. Find the inverse of the coefficient matrix 4. Multiply the inverse of coefficient matrix with the 86 5/19/2024
  • 87.
    Inverse method:  2X+ 3Y = 4  X + 2Y = 2  Given this system of linear equation, applying Inverse method we can find the unknown values. 87 5/19/2024
  • 88.
    Inverse method: Step 1.Change it into matrix form  Using coefficient construct one matrix i.e. coefficient matrix  Using the unknown variables construct unknown matrix & it is a column vector (a matrix which has one column) 88 5/19/2024
  • 89.
     Using theconstant values again construct vector of constant  Step 2. Find inverse of the coefficient matrix  Now we are familiar how to find an inverse for any square matrix.  Assuming once first method find the inverse for matrix 89 5/19/2024
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     Step 3.Multiply the coefficient inverse with the vector of constant 90 5/19/2024
  • 91.
     Then X= 2 and Y = 0 that is unique solution 91 5/19/2024
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     The logicis these given three matrices, coefficient matrix, unknown matrix and vector of constant in the following order.  AX = B 92 5/19/2024
  • 93.
  • 94.
    Limitations of inversemethod  It is only used whenever the coefficient matrix is square matrix  In addition to apply the method the coefficient matrix needs to have an inverse  It doesn’t differentiate between no solution and infinite solution cases. 94 5/19/2024
  • 95.
    Gausian method  Itis developed by a mathematician Karl F. Gauss (1777-1855).  It helps to solve systems of linear equations with different solution approaches i.e. unique solution, no solution and infinite solution cases. 95 5/19/2024
  • 96.
    Gauss …. “n”by “n” systems Step: 1. Change the system of linear equation into a matrix form 2. Augment the coefficient matrix with the vector of constant. 3. Change the coefficient matrix into identity form by applying elementary row operation and apply the same on the vector of constant. 4. The resulting values of the vector of constant will be the solution or the value of the unknown 96 5/19/2024
  • 97.
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    Step: 3. Changethe coefficient matrix into identity form by applying elementary row operation (use ones first method) 98 5/19/2024
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     Change firstthe primary diagonal entry from the first row into positive one.  Possible operation is exchange row one with row two. 99 5/19/2024
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     Next changethe remaining numbers in the first column into zero, this case number 2  Now multiply the 1st row by –2 & add the result to row –2 100 5/19/2024
  • 101.
     Then proceedto column 2 and change the primary diagonal entry i.e. –1 into 1 Multiply the 2nd row by –1 (- 1R2) 101 5/19/2024
  • 102.
     Now changethe remaining number with in the same column (column –2) into zero i.e. number 2  Multiply 2nd row by –2 and add the result to the 1st row  Therefore X = 2 and Y = 0 102 5/19/2024
  • 103.
  • 104.
     The nextstep is changing the primary diagonal entry in the 2nd row to 1.  But there is no possible operation that can enable you to change it in to number 1  Therefore the implication is that you can’t go further but we can observe something from the result.  And it is implying an infinite solution case 104 5/19/2024
  • 105.
     Note:  Anequation is an expression that has an equal sign (=) in between. For example, 4+3 = 7.  An expression consists of variables like x or y and constant terms which are conjoined together using algebraic operators. For example, 2x + 4y - 9 where x and y are variables and 9 is a constant.  As far as we look there is usually one solution to an equation.  But it is not impossible that an equation cannot have more than one solution or an infinite number of solutions or no solutions at all.  Having no solution means that an equation has no answer whereas infinite solutions of an equation mean 105 5/19/2024
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    Change the encirclednumber above in to zero  Multiply the first row by –1 & add the result to the 2nd row. 107 5/19/2024
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     There isno possible operation that we can apply in order to change the primary diagonal entry in the 2nd column without affecting the first column structure.  Therefore stop there, but here we can observe something i.e. it is no solution case.  Therefore, Gaussian method makes a distinction between No solution & infinite 108 5/19/2024
  • 109.
     Summarizing ourresults for solving an “n” by “n” system, we start with the matrix.  (A/B), & attempt to transform it into the matrix (I/C) one of the three things will result. 1. an “n” by “n” matrix with the unique solution. 109 5/19/2024
  • 110.
    2. A rowthat is all zeros except in the constant column, indicating that there are no solutions, 110 5/19/2024
  • 111.
    3. A matrixin a form different from (1) & (2), indicating that there are an unlimited number of solutions. Note that for an n by n system, this case occurs when there is a row with all zeros, including the constant column. 111 5/19/2024
  • 112.
  • 113.
    II M byn linear systems  The m x n linear systems are those systems where the number of rows (m) and number of columns (n) are unequal  Or it is the case where the number of equations (m) & the number of variables (n) are unequal.  And it may appear as m > n or m < n. 113 5/19/2024
  • 114.
    Linear equation wherem > n To solve an m by n system of equations with m > n, we start with the matrix (A/B) and attempt to transform it into the matrix (I/C).  One of the three things will result: 114 5/19/2024
  • 115.
    1. An mby n identifying matrix above m – n bottom rows that are all zeros, giving the unique solution: 115 5/19/2024
  • 116.
    2. A rowthat is m – n bottom raw is all zeros except in the constant column, indicating that there are no solutions 116 5/19/2024
  • 117.
    3. A matrixin a form different from (1) & (2), indicating that there are an unlimited number of solutions 117 5/19/2024
  • 118.
    Linear Equations wherem < n  Our attempts to transform (A/B) into (I/C) in the case where m < n will result in: 1. A raw which is all zeros except in the constant columns, indicating that there are no solutions, or 2. A matrix in a form different from number one above indicating that there are an unlimited number of solutions.  “Every system of linear equations has either No solution, Exactly one solution or infinitely many 118 5/19/2024
  • 119.
    Example Solve the followingsystems of linear equations 119 5/19/2024
  • 120.
    Solution for an“n” by “n” system 120 5/19/2024
  • 121.
  • 122.
  • 123.
    “m” by “n”systems 123 5/19/2024
  • 124.
    “m” by “n”systems 124 5/19/2024
  • 125.
    “m” by “n”systems 125 5/19/2024
  • 126.
    m by nsystem where m <n  i.e. Number of equations are less than # of variables 126 5/19/2024
  • 127.
  • 128.
    Word problems  Steps 1.Represent one of the unknown quantities by a letter usually X & express other unknown quantities if there is any in terms of the same letter like X1, X2 etc 2. Translate the quantities from the statement of the problem in to algebraic form & set up an equation 3. Solve the equation (s) for the unknown that is represented by the letter & find other unknowns from the solution 4. check the findings according to the statement in the problem 128 5/19/2024
  • 129.
    Word problems, Example: 1)A Manufacturing firm which manufactures office furniture finds that it has the following variable costs per unit in dollar/unit Assume that an order of 5 desks, 6 chairs, & 4 tables & 12 cabinets has just been received. What is the total material, labor & overhead costs associated with the production of ordered items? 129 5/19/2024
  • 130.
  • 131.
    Example … 2. Kebedecarpet co. has an inventory of 1,500 square yards of wool & 1,800 square yards of nylon to manufacture carpeting. Two grades of carpeting are produced. Each roll of superior grade carpeting requires 20 sq. yards of wool & 40sq. yards of nylon. Each roll of quality-grade carpeting requires 30 square yards of wool & 30 square yard of nylon. If Kebede would like to use all the material in inventory, how many rolls of superior & how many rolls of quality carpeting should be manufactured? 131 5/19/2024
  • 132.
  • 133.
  • 134.
  • 135.
    Example 3: 3. Getahuninvested a total of br. 10000 in three different saving accounts. The accounts paid simple interest at an annual rate of 8%, 9% & 7.5% respectively. Total interest earned for the year was br. 845. The amount in the 9% account was twice the amount invested in the 7.5% account. How much did Getahun invest in each 135 5/19/2024
  • 136.
  • 137.
  • 138.
  • 139.
    Exercise … solvethe following cases 1. A certain manufacturer produces two product P & q. Each unit of product P requires (in its production) 20 units of row material A & 10 units of row material B. each unit of product q requires 30 units of raw material A & 50 units of raw maternal B. there is a limited supply of 1200 units of raw material A & 950 units of raw material B. How many units of P & Q can be produced if we want to exhaust the supply of raw materials? : Ans. 45 units of P and 10 units of Q 2. Attendance records indicate that 80,000 South Koreans attended the 2002 world cup at its opening ceremony. Total ticket receipts were Birr 3,500,000. Admission prices were Birr 37.5 for the second-class and Birr 62.50 for the first class. Determine the number of South Koreans who attended the football game at first class and second class. 139 5/19/2024
  • 140.
    Markov Chains  Thismodel is a forecasting model.  Probabilistic (stochastic) model.  A Russian Mathematician called Andrew Markov around 1907 develops this model.  Markov chains are models, which are useful in studying the evolution of certain systems over 140 5/19/2024
  • 141.
     These repeatedtrials are often successive time periods where the state (outcome condition) of the systems in any particular time period can’t be determined with certainty.  Therefore, a set of transition probabilities is used to describe the manner in which the system makes transition from one period to the next.  Used to predict the probabilities of the system being in a particular state at a given time period.  We can also talk about the long run or equilibrium or steady state. 141 5/19/2024
  • 142.
    The necessary assumptionsof the chain: 1. The outcome in any given period depends on its state in the Preceding period & on the transition probabilities 2. The transition probabilities are constant overtime 3. Change in the system will occur once & only once each period eg. If it’s a week, its only once in a week 4. The transition period occurs with regularities * if we start with days, we use the day until we reach our end. 142 5/19/2024
  • 143.
    Information flow inthe analysis The Markov model is based on two sets of input data The set of transition probabilities The existing or initial or current conditions or states 143 5/19/2024
  • 144.
    Information flow inthe analysis  The Markov process describes the movement of a system from a certain state in the current state/time period to one of n possible states in the next stage.  The system makes in an uncertain environment, all that is known is the probability associated with any possible move or transition. 144 5/19/2024
  • 145.
    Information flow inthe analysis  This probability is known as transition probability, symbolized by Pij.  It is the likelihood that the system which is currently in state i will move to state j in the next period.  From these inputs the model makes two predictions usually expressed as vectors. 145 5/19/2024
  • 146.
    1. The probabilitiesof the system being in any state at any given future time period 2. The long run (equilibrium) or steady state probabilities.  The set of transition probabilities are necessary for both prediction (time period n, & steady state), but the initial state is needed for only the first prediction. 146 5/19/2024
  • 147.
  • 148.
    Example  Currently itsknown that 80% of customers shop at store 1 & 20% shop at store 2. In reviewing a past data suppose we find that out of all customer who shopped at store 1 in a given week 90% remain loyal for the next week (store one again), 10% switch to store 2. On the other hand, out of all customers who shopped at store 2, in a given week 80% remains loyal for the next week (store 2 again), 20% switch to store 1. What will be the proportion of customers shopping at store 1 & 2 in each of the next two weeks. 148 5/19/2024
  • 149.
  • 150.
    Solution … Transition probabilitymatrix is a square matrix such that each entry indicates the probability of the system moving from a given state to another state. • The sum of rows in the transition matrix should be 1 • We have to be consistent in writing the elements • We also know that each entry in the P matrix must be nonnegative. 150 5/19/2024
  • 151.
  • 152.
    For the Aboveexample 152 5/19/2024
  • 153.
    For the Aboveexample 153 5/19/2024
  • 154.
    b) Long runmarket share Assumption: In the log run the share of the systems is assumed to be constant. Let : The share of store 1 in the long run be V1 and The share of store 2 in the long run be V2 154 5/19/2024
  • 155.
  • 156.
  • 157.
    Prediction:  Long run:only the transition matrix  At specified time:- the transition matrix & state vector. Hence unless the transition matrix is affected, the long run state will not be affected.  Moreover, we can’t know the number of years, weeks to attain the long run state / point but we can know the share 157 5/19/2024
  • 158.
    Exercises  1. Adivision of the ministry of public health has conducted a simple survey on the public attitude to wards smoking . From the results of the survey the department concluded that currently only 20% of the population smokes cigarette & every month 10% of non-smokers become smokers where as 5% of smokers discontinue smoking.  Required: 1. Write the current & transition matrices 2. What will be the proportion of the non-users (non- smokers) & users (smokers) in the long run 158 5/19/2024
  • 159.
    Solution  Let U– stands for Smokers  N – stands for non-Smokers  Initial state VUN (0) = (0.2 0.8) 159 5/19/2024
  • 160.
  • 161.
    Exercise  2. Apopulation of 100,000 consumers make the following purchases during a particular week: 20000 purchase Brand A, 35,000 Brand B & 45000 purchase neither Brand. From a market study, it is estimated that of those who purchase Brand A, 80% will purchase it again next week, 15% will purchase brand B next week, & 5% will purchase neither brand. Of those who purchase B, 85% will purchase it again next week, 12% will purchase brand A next week, & 3% will purchase neither brand. Of those who purchase neither brand, 20% will purchase A next week, 15% will purchase Brand B next week, & 65% will purchase neither brand next week. If this purchasing pattern continues, will the market stabilize? What will the stable distribution be?  Yes. The share of A, B and C is = (0.4 0.5 0.1) 161 5/19/2024
  • 162.
    Solution  2) Given:20,000 purchase brand A  35,000 purchase brand B  45,000 purchase neither brand Total consumers = 100,000 (20,000 + 35,000 + 45,000)  Let VA represents the share of brand A purchasers  VB represents the share of Brand B purchasers  VN represent the share of neither brand purchasers 162 5/19/2024
  • 163.
    The stable marketmeans the long run or steady state market because it is noted that in the long run the share will be 163 5/19/2024
  • 164.
    Solution …. 2 And in the long run we have said that the share at n period is equal with the share at n + 1 period. Therefore  (The share at n period) x (the transition probabilities) = (the share at n + 1 period)  Let the share of brand A purchasers be V1 in the long run  the share of brand B purchasers be V2 in the long run  the share of neither purchasers be V3 in the long run 164 5/19/2024
  • 165.
  • 166.
  • 167.
  • 168.
  • 169.
  • 170.
  • 171.
    Exercise ….3  3.A vigorous television advertising campaign is conducted during the football reason to promote a well-known brand X shaving cream. For each of several weeks, a survey is made & it is found that each week 80% of those using brand X continue to use it & 20% switch. It is also found that those not using brand X, 20% switch to brand X while the other 80% continue using another brad.  a) Write the transition matrix, assuming the transition percentage continue to hold for succeeding weeks.  b) If 20% of the people are using brand X at the start of the advertising campaign, what percentage 171 5/19/2024
  • 172.
  • 173.
  • 174.
    Solution …3  Theproportion of brand X and other brand users after one week period is expected to be 32% and 68% respectively. Then the expected users in the 2nd week will be 174 5/19/2024
  • 175.
    Solution …3  Theexpected share of brand X and other brand users is 39.2% and 60.8% in the second week. 175 5/19/2024
  • 176.
    UNIT 3: INTRODUCTIONTO LINEAR PROGRAMMING 176 5/19/2024