Fundamentals of Compensation Quantitative Methods

Subtraction

Subtraction is a process that reduces values.

Subtraction is the inverse of addition. It calls for the difference in the values of numbers. This operation is usually indicated by a "-" sign.

For example, 1 + 2 = 3. 

The inverse of this is subtraction: 3 –2 = 1 or 3 – 1 = 2.

Employee contributions to 401(k) plans are an example of how Human Resource departments utilize subtraction:

Employee's monthly pay $3500
Contribution to 401(k) $200
Total income before taxes $3300

Order of operation

The operations of multiplication and division are performed FIRST in most mathematical and statistical equations, unless parentheses indicate a sub-operation to be performed first or exponents or square roots need to be calculated (after any sub-operations in parentheses).