BUSI 1915U Lecture Notes - Lecture 7: Real Simple, Real Income
Document Summary
Any statement containing a comparison of two or more quantities can be depicted by a ratio. When making comparisons of more than two numbers, the colon notation is preferred. When comparing quantities, the unit of measurement is usually dropped. The numbers appearing in the ratios are called the terms of the ratio. When two ratios are equal, they form a proportion. A proportion can be expressed as the equality of two fractions. a:b = c:d a c d. Procedure used to reduce ratios same as that used to reduce fractions. Obtained by multiplying each term of the ratio by the same number. Requires dividing a whole into a number of parts according to the ratio. The total number of parts into which the whole is divided, is the sum of the terms of the ratio. Sum of terms: 3 + 2 = 5. Remember the original formula: p = r x b.
