Fundamentals of Compensation Quantitative Methods

Multiplication

Multiplication is a process that increases the given number.

Multiplication is used to simplify addition. Factors are combined to give a product.

This operation is usually indicated by an "x" sign, a centered period, or sometimes by a star ("*" ).

It may also be understood when a symbol is juxtaposed to a number or another symbol (as in the operation xy where the value is x *y).

Or it is communicated if the symbol is next to an operation within parentheses as in y(3 x 5) where the value is 3 times 5 times y. One always performs operations within parentheses first.

As with addition, multiplication has four properties:

Commutative: When two numbers are multiplied, the product is the same regardless of the order of the numbers being multiplied.

Example: 3 x 5 = 5 x 3 = 15

Associative: When more than two numbers are multiplied, the product is the same regardless of the order of the numbers being multiplied.

Example: 1 x 2 x 3 = 1 x 3 x 2 = 2 x 1 x 3 = 2 x 3 x 1 = 3 x 1 x 2 = 3 x 2 x 1 = 6

Multiplicative identity: The product of any number and 1 is that number.

Example: 5 x 1 = 5

Distributive: The sum of two numbers times a third number is the sum of the first number times the third number and the second number times the third number.

Example: (5 + 3) 2 = (5 x 2) + (3 x 2) = 16

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).