Business Application of Matrices

Model business data as matrices (rows are places, columns are products) and totals, growth, revenue and price changes each become one matrix operation.

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Read in: English · हिन्दी · ગુજરાતી


Theory

Rupa's one-glance report

Rupa (from the multiplication topic) now wants a monthly report for her Campus and Station counters: combined sales, growth, revenue per counter, and what happens if prices rise.

Her competitor scribbles on four pages of loose arithmetic. Rupa writes two grids and four short operations.

You already run your life on this idea: every Excel sheet you have ever used is a matrix wearing office clothes.

Theory

Rows are things, columns are facts

Every business grid follows one convention: rows are the things you compare (branches, counters, months) and columns are the facts about them (items sold, costs, marks). Fix that shape once and keep it. The moment two reports disagree about what a row means, every calculation after that is quietly lying.

At a glance

Which operation answers which question

Business questionMatrix moveWith Rupa's data
Two months combined?Addition: Jan + FebTotal sales table
How much did we grow?Subtraction: Feb - JanGrowth per counter, per item
Revenue per counter?Multiplication: S·PSales grid × price column
All prices double?Scalar multiple: 2POne number scales every cell

Theory

Worked example: February revenue

February sales S and prices P (samosa ₹9, tea ₹7):

S = ⎡ 12 9 ⎤ P = ⎡ 9 ⎤

⎣ 10 14 ⎦ ⎣ 7 ⎦

Inner numbers match (2 = 2), answer is 2×1:

Campus: 12·9 + 9·7 = 108 + 63 = 171

Station: 10·9 + 14·7 = 90 + 98 = 188

S·P = ⎡ 171 ⎤

⎣ 188 ⎦

Read it like a manager: the Station counter earns more, mostly on tea volume.

Think first

Your turn: read the growth matrix

January sales were rows (10 6) and (8 12). February: rows (12 9) and (10 14).

Compute Feb - Jan, then answer like an analyst: which single cell grew the most, and what does it mean in words?

Show the answer

Feb - Jan = ⎡ 2 3 ⎤

⎣ 2 2 ⎦

The biggest cell is 3, at row 1, column 2: the Campus counter sold 3 (hundred) more teas than in January. A matrix answer is not finished until you can say it in a sentence a shopkeeper would nod at.

Quiz

A chain has a 3×4 sales matrix (3 shops, 4 items). What must it be multiplied by to get revenue per shop?

  1. A 4×1 price column
  2. A 1×3 price row
  3. Another 3×4 matrix
  4. A 3×3 matrix
Show the answer

A 4×1 price column

Revenue needs one price per item, and the inner numbers must match: (3×4)·(4×1) works and gives a 3×1 column, one total per shop. Option B fails the inner check: (3×4)·(1×3) puts 4 against 1. Options C and D contain no prices at all, so they cannot produce revenue.

Quiz

The boss asks: "how much MORE did each counter earn in February than January?" Which operation chain answers it?

  1. Multiply each month by the price column, then subtract
  2. Add the two sales matrices
  3. Multiply the two sales matrices together
  4. Take the inverse of the February matrix
Show the answer

Multiply each month by the price column, then subtract

"Earn" means revenue, so price each month first (S·P twice), then subtract the revenue columns: (171-132, 188-156) = (39, 32). Adding gives totals not growth, and multiplying two sales grids has no business meaning here: their columns are items, not prices.

Watch out

Where business matrices go wrong

Order of multiplication: S·P works, but P·S is (2×1)·(2×2), inner numbers 1 ≠ 2, not defined. Sales grid first, price column second.

Shape drift: if February adds a new item, a 2×2 cannot be added to a 2×3. Rebuild both months to the same shape (put 0s for the missing item) before adding.

Theory

This is a real industry pattern

Excel's SUMPRODUCT is one row-into-column. Inventory systems, GST billing software and banking ledgers all store quantity and rate tables and multiply them exactly like Rupa. Economists model entire countries with input-output matrices. In Semester 3 you will store graphs as adjacency matrices: same grid, new costume.

Summary

Key takeaways

  • Model business data with a fixed convention: rows are things, columns are facts.
  • Addition combines periods; subtraction shows growth.
  • Sales grid × price column = revenue per row (shop, counter, branch).
  • Scalar multiplication applies one uniform change to every cell.
  • Check orders before every move: same order to add, inner match to multiply.
  • Memory hook: rows are things, columns are facts.

Study this properly

This page is the lesson to read. In Gri-Learn the same topic is a graded deck: the self-checks are scored and your weak topics are tracked. Free to start.

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