Thursday, 2 July 2015

GATEWAY TO CGL MAINS: ECONOMICS NOTES 2

Dear Readers, 
As we have already started the GATEWAY TO CGL MAINS, so from today we will provide you the notes of the most important topics in ECONOMICS. This will be important for the prelims exam. 

FORMS OF MARKET AND PRICE DETERMINATION

Market: Market is a place in which buyers and sellers come into contact for the purchase and sale of goods and services.
Market structure: refers to number of firms operating in an industry, nature of competition between them and the nature of product.

Types of market
a) Perfect competition. b) Monopoly.
c) Monopolistic Competition d) Oligopoly.
a) Perfect competition: refers to a market situation in which there are large number of buyers and sellers. Firms sell homogeneous products at a uniform price.
b) Monopoly market: Monopoly is a market situation dominated by a single seller who has full control over the price.
c) Monopolistic competition: It refers to a market situation in which there are many firms who sell closely related but differentiated products.
d) Oligopoly: is a market structure in which there are few large sellers of a commodity and large number of buyers.

Features of perfect competition:
1. Very large number of buyers and sellers.
2. Homogeneous product.
3. Free entry and exit of firms.
4. Perfect knowledge.
5. Firm is a price taker and industry is price maker.
6. Perfectly elastic demand curve (AR=MR)
7. Perfect mobility of factors of production.
8. Absence of transportation cost.
9. Absence of selling cost.


Features of monopoly:
1. Single seller of a commodity.
2. Absence of close substitute of the product.
3. Difficulty of entry of a new firm.
4. Negatively sloped demand curve(AR>MR)
5. Full control over price.
6. Price discrimination exists
7. Existence of abnormal profit.

Features of monopolistic competition
1. Large number of buyers and sellers but less than perfect competition.
2. Product differentiation.
3. Freedom of entry and exit.
4. Selling cost.
5. Lack of perfect knowledge.
6. High transportation cost.
7. Partial control over price.

Main features of Oligopoly.
1. Few dominant firms who are large in size
2. Mutual interdependence.
3. Barrier to entry.
4. Homogeneous or differentiated product.
5. Price rigidity.

Features of pure competition
1. Large number of buyers and sellers.
2. Homogeneous products.
3. Free entry and exit of firm.

What are selling cost?
Ans.: Cost incurred by a firm for the promotion of sale is known as selling cost. (Advertisement cost)

What is product differentiation?
Ans: It means close substitutes offered by different producers to show their output differs from other output available in the market. Differentiation can be in colour, size packing, brand name etc to attract buyers.

What do you mean by patent rights?
Ans:- Patent rights is an exclusive right or license granted to a company to produce a particular output under a specific technology.

What is price discrimination?
Ans: - It refers to charging of different prices from different consumers for different units of the same product.

924 comments:

  1. Please provide notes in pdf format

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  2. save this webpage!

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  3. thank u SA...it's better provide all economy topic at a place i.e. pdf

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  4. Saving number of webpages will not be possible !!
    So I request to wrap up whole notes in pdf format to help in a smooth n hectic free manner

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  5. Sir, one question, plz reply, I want to know that if I follow ur all gateway to CGL, can I expect 30 marks in CGL GK Part?

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  6. Nice... Pls continue the good work.... We r thankful to u

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  7. Vai in your pc u can install uc broswer then through this if u will open this webpage , you can save this webpage as a jpeg image format

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  8. It is very tough 20-25 is very good
    Even in cgl 2014 i scored 40 in reasoning 30 math and 18 English
    But in gk only 13

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  9. giffin goods - A Giffen good is typically an inferior product...

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  10. Gresham's law - Bad money drives out good one".

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  11. father of economics - Adam Smith and his book was - wealth of nations

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  12. yaa, ri8, I am also facing problems mainly in GK Part, Its seriously too tough because most of the questions are irrelevant and not possible to collect those informations from any book.

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  13. Please elaborate it using different types of curve formed.
    I have seen so many questions regarding curve graphs.

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  14. how to prepare for gs?

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  15. how to prepare for gs?....

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  16. how to prepare for general studiesols tell?

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  17. economics to 12th level ka aata hai,,science9,10 history and polity 12 level,,,so it is very time consuming to read all those books but lucent gk is as a good choice but science books to padhni hi padegi...

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  18. ok thanks....

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  19. curve samajhne ke liye to theory samajhni padegi, like micro,macro welfare economics in different markets and demand and supply ye ni aata,,

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  20. Plz provide us notes instead of questions... In science too...thanks guyz

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  21. ufff science fir se padhni pad rahi hai

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  22. this is a welcome initiative..!!

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  23. Avnit Chaudhary2 July 2015 at 21:09

    U r doing great job but but but not 100%dedication...plz focus on main topics...economics means ... Microeconomics and macroeconomics...kha hai bahi ye.. kuch bhi karnae ka time nahi hai questions vahi sae puchae ja rahe hai har baar to itna gussa kyu hai unsae ..jo sidha market pae pauch gaye...plz aisa mat karo yar kuch fayada nahi hai only micro or macro padho 4 quest wahi sae aayegae...plz understand..dont take peesonaly..hahhaah
    Thank you.

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  24. Avnit Chaudhary2 July 2015 at 21:18

    Arre bahi @sscadda important topic - yo keynesian economics ka kuch kar 2quest aa he jayegae economics ki 2 post mae he kam ho ja ga...

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  25. Dumping is price discrimination at.......
    A. Local market
    B. State level market
    C. Nation market
    D. International market

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  26. SSC cgl me English me close test aate h ???

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  27. thanks mam:) @Ayushi

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  28. PERMUTATION/ COMBINATION and PROBALITY CONCEPT CLASS will Start At 11:30PM.

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  29. Kl kon.sa topic kraya tha ?

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  30. Okk mera miss ho gya tha

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  31. Hlo evry1..plz guys sggst me dat if I solve prevs ppr of ssc cgl n follow regular quizes here..will it b enough to crack ssc pre

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  32. Late to nahi hui na....

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  33. thnkz
    mjhe bahut problems hoti yr:(
    is topic m

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  34. then aur kya??

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  35. Den plz sggst hw shud I prepare

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  36. Time For Some Maths. :)

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  37. Waiting For Others To Come,

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  38. Ambitious Kavya2 July 2015 at 23:25

    I ve a doubt....
    Yrr these niacl nicl uiicl..
    They are not fair enough with their reaults.....
    And fees of the forms r almost 500...
    Is it right to fill theur forms ??

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  39. CGL mei toh ni aate na yeh topic??
    easy wale kr lu to b on safe side

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  40. bhai let the class begin..

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  41. So today's topic is Permutation Combination and Probability.

    Permutation and Combination are not that important for the purpose of exam Because Question are rarely asked from This Topic but We have to learn them

    anyway because Question of probability can't be solved without learning permutation and combination. So will give you all a little hint about what is

    permutation and what is combination and then we will move on to Probability.

    But Before That Just Look at A very Important Concept Without Which You can't solve a single Question of permutation/combination or probability.

    And that Factorial Notation.

    It's represented by (!) and it is read as Factorial.

    So if i write 5! it will be read as Five Factorial.

    And what it means ? It means to simply multiply all the numbers in decreasing order till 1.

    Like if i write 6! it means 6*5*4*3*2*1 = 720

    Or 7! = 7*6*5*4*3*2*1 = 5040

    For Fast Calculation You all must learn the value of factorial till 10.

    Just Learn these values

    1! = 1

    2! = 2

    3!= 6

    4! = 24

    5! = 120

    6! = 720

    7! = 5040

    8! = 40320

    9! = 362880

    10! = 3628800

    Well Before I Start Explainig Permutation and combination one thing i want to tell and that is It's the easiest topic that you will find in maths. Most people are unable to understand it and that's why people think it's complex and all type of misconceptions but trust me it's the easiest topic in the whole mathematics and It's not actually even maths, It's less about Calculation and more about Logical Thinking. Well We all can't Calculate Fast but we all can think fast.

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  42. insomniac sir ki class start ho gyi kya?? :((((iam late

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  43. Ambitious Kavya2 July 2015 at 23:27

    I ve a doubt sir....
    Yrr these niacl nicl uiicl..
    They are not fair enough with their results
    And d fees of the forms r almost 500...
    Is it right to fill theur forms ??

    ReplyDelete
  44. NAHI CGL Syllabus me Nahi hai.

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  45. No just startd

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  46. Profitr loss ka topicc kaise Repeat kr skti hun kis post pe tha ?

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  47. I am not Sir Please.

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  48. Gd mrng bhaii

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  49. Ambitious Kavya2 July 2015 at 23:28

    abhi na

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  50. previous papers mei ek do ques dekhe the..isliye confused:(

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  51. are quant padha rahe ho app
    ye bhoot hai mere lye
    respect se bola

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  52. Ambitious Kavya2 July 2015 at 23:29

    sir rply me///

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  53. hoga jarur hoga2 July 2015 at 23:30

    permu aur combo aaj toh gye tum dono

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  54. So what is permutation? In Simple words it's arrangement or No. of ways things can be arranged.

    Suppose there are 3 words ABC and if it's asked How many ways these three can be arranged then all yu or What are the no. of permutations Possible. Then all you have to do is Arrange this things in as many ways it's Possible.

    Let's try to arrange them now. SO There is ABC, ACB, BAC, BCA, CAB, CBA Are there any more ways these can be arranged ? try it ? No These are the all possible arrangements. So The answer to the above Question will be 6. That is ABC can be arranges in different ways.

    Now there were only 3 alphabets What if there were more like You have to Arrange ABCDEFGHI. Now for 3 alphabets it was easy you easily arranged them But Arranging these 9 letters will take you days and even then you will not be able to get a certain answer.

    So what we should do here. No need to worry our mathematicians were genius they created a very simple formula for that.

    And Formula is like this. N Different things can be arranged in N! ways.

    So in above Question there were 9 alphabets so the no. of possibele arrangements will be 9! = 362880.

    So that was out basic concept Now let's move on to another basic concept.

    So in the above questions It was Asked in how many ways ABCDEFGHI Can be arranged. In this question they were asking the possible arrangements of all the 9 Alphabets, They can also Ask In how many ways 4 alphabets from above 9 alphabets can be arranged.

    In such type of Questions there is another formula Which is very very very important because it will be used in almost every question.

    So the formula is Out of n things r things can be arranged in nPr ways. and nPr = n!/(n-r)!

    So in the above Question it is asked that in how many ways 4 alphabets from the total 9 alphabets can be arranged.

    So apply the formula nPr = 9P4 = 9!/(9-4)! = 9*8*7*6*5*4*3*2*1/5*4*3*2*1 =9*8*7*6 = 3024.

    Now there is a trick to easily calculate nPr by which you won't have to do any division work.

    Like if it say 9P3 then you just have to multiply Starting from 9 in decreasing order till the next 2 digit i.e 9P3 = 9*8*7. Why we multiply till 7 only ? that is because the value of r is 3 and total multiplication should contain the value of r.

    Another example if it 7P2 then you will just do 7*6[ 2 number because r = 2 ok]

    if it's 7P4 then the answer will be 7*6*5*3[ 4 no. because value of r=4]

    So If it's 10P5 then the value will be 10*9*8*7*6 [ 5 digit because value of r = 5]

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  55. just started

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  56. SHADOW WHERE ARE YOU??

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  57. vai tera sunglass bhut achha hey...

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  58. Still I don't like the Word SIR.

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  59. Raat mei chayaa ni hoti..

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  60. hoga jarur hoga2 July 2015 at 23:34

    rey- gon ka hai

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  61. Actually there are infinite cases in Permutation and Combination 100's of different type of question can be formed So i will only discuss the cases that are important for the exam, And if you have any problem in any other case then you can ask me personally.

    Case - 1 Simple Arrangement Case well all words are unique.

    By UNIQUE i mean all alphabets are different

    In how many ways the letters of the word ROCKET can be arrnged.

    very Simple just count the no. of words in ROCKET that will be 6

    So number of arrangements will be n! that will be 6! = 720

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  62. HI can you post some short cut methods for different types of qns on time speed distance including trians problems

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  63. we have to learn upto 10!
    na dear??

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  64. @Hsotnas @ hyd ?

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  65. ok sure:)

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  66. Yr apka kahi consolidated material h kya...pta hi nhi chalta kb kya hota h..i m wrking so dnt get much tym..cn u provide in consolidated way??

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  67. Quant class going on here.... by insomniac

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  68. MAY I COME IN........SIR

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  69. I Daily Write Material For One Topic and Then Post It here only. Well I will Upload it to Google drive will share the link OK.

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  70. Yeah...
    Its one of d easiest toppics

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  71. mission ibps po 20152 July 2015 at 23:38

    kn kn h

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  72. yes!
    save dz whole thng and send na!
    on sme other learning actualy!

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  73. Acha opposite of out.....thank u

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  74. okay sure....

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  75. this is not right.........@

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  76. It will be really helpful for people like me..u r doing a grt job man..and plz share the link frm somewher i cn get to knw dat u hv given it..

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  77. Pehle muh doke aa........

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  78. CASE - 2 Arrangement When All the words are not UNIQUE

    That means some words are repeated.

    Like No. of possible arrangements of word TITANIC

    Now In this case you Just have to find the total possible ways first without even thinking about Repeated words and then after that You will divide that with factorial of the numbers of times a Word is repeated.

    So in the above Question Total alphabets = T = 2, I = 2. A= 1 C =1 N = 1Total 7 So Permutations will be 7! and Now you will divide It by No. of times an aphabet is repeated SO T is repeated 2 times and I is repeated two times So divde 7! by these 2. So final Answer will be 7!/(2!*2!)

    Let's See another Example. In how many ways the letters of the word RUNNING Can be arranged.

    So total no. of alphabets in the above Words = 7

    No. of words that are repeated = N = 3 times repeated.

    So the solution will be Total permutation divided by no. of times a word is repeated and that will be 7!/3! that will be your answer.

    Case 3 - Arrangement Some Words are always together and Some Words and Never together

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  79. Sb hai bhai
    aa jao

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  80. omg aap hum log k lye daily topic prepare karte ho:)
    ty dear :)

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  81. mission ibps po 20152 July 2015 at 23:40

    acha

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  82. i was jockeying :P

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  83. Bhai peg pike aao :P

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  84. tq yaar
    truly awesome: )
    prev lessons too!

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  85. mission ibps po 20152 July 2015 at 23:40

    abhi nahi 12 k bd

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  86. The main dilema arrive where to use permutation nd where combination

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  87. Nhi desi lag raha hai...

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  88. hoga jarur hoga2 July 2015 at 23:41

    aap mod ban gye
    acha hai ji

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  89. I asked the MOD of BA to Post My Material But They Didn't Post It. Don't know maybe they didn't like it. Anyways tell me your email ID for Now i will mail you the material.

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  90. we will divide always whenever in the que there is a repition in a word?

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  91. Casee 3 worstt :-/ Vry confusing

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  92. yea.......

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  93. 1 Simple Distinction Arrangement = Permutation and Selection or Choosing = Combination.

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  94. ok CK... :P

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  95. tag645@gmail.com
    I will ask the MOD also to post ur material

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  96. are u from WB??

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  97. hi bhai... chori se aa kar padh rahe ho.... :))

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  98. Hello...kahaan gaayab the...

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  99. noo jhknd

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  100. OKK..........

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  101. Yeah i knw this..
    Bt many people get confuse where to apply..

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  102. Nhi bhai .....abhi aaya.....5 minutes pehle

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  103. Case 3 - Arrangement Some Words are always together and Some Words and Never together

    No of possible arrangements of the words LAYERING When Vowels are always together.

    In this case what we do Is we consider the no. of Vowels as 1 single alphabet That [AEI] is a one single alphabet In that way they will always be together and the rest words are LYRNG.

    So the total no. of alphabets will be 6 ? Why 5 Alphabets are LYRNG and [AEI] is One alhpabet remember ? so The total alphabet will be 6

    And no. of possible arrangements will be 6!

    But but the question is not complete yet [AEI] Though considered as 1 alphabet but stil the words AEI can change places within itself Like AEI it also can be AIE or EIA. So there are 3 words so no. of total arrangements that they can do within itself will be 3!

    So our final answer will be 6!*3![ that is because 6! is the no. of possible ways when AEI are together and And multiplied by 3! because AEI can change places within themselves in 3! possible Ways]

    If it was asked that VOWELS in LAYERING are never together that what we will do ?

    This Question can't be solved directly.

    In order to solve this We will have to FIND the total no. of arrangements of the word LAYERING and then Subtract the no. of arrangemnts in which AEI are Always together.

    So no. of possible arrangements of LAYERING will be 8!

    And We already Solved that when AEI are always together the no. of possible ways are 6!*3!

    So no. of possible ways when AEI are never together will be


    = 8! - 6!*3!

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  104. mission ibps po 20152 July 2015 at 23:45

    hello hey choro
    radhey radehy bolo

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  105. bacche rona band kar...!!!

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  106. i am also........:p

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  107. Oggybhai ka pravachan sunken aaya kya

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  108. Sent Check your email.

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  109. ­­ʍ€gąʍɨɲď~2 July 2015 at 23:48

    gr8 :)

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  110. mission ibps po 20152 July 2015 at 23:48

    ha hum sath m hi gaye te satsang m

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  111. hoga jarur hoga2 July 2015 at 23:48

    hello viha ji
    busy in ssc cgl prep baki baat class k baad karta hu

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  112. in 2nd situation'
    we have to subtract from 8!?
    why not from 1?

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  113. Thanq bhai... isme bahut confuse tha pahle _/\_

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  114. Arre bhai samjho toh sahi pehle kya likha hai......jaa fir se much done aa

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  115. ok srry i undrstood
    i was little bit confused:)

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  116. It's Not case of probability, It's Permutation.

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  117. Ye 1 me se subtractn n saayad probability k at least case me hota hai naa..

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  118. hoga jarur hoga2 July 2015 at 23:51

    wah bhai

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  119. ___/\__
    :))

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  120. Yeahh...
    One more thing
    Whnever there is repeated alphabets or vowels
    We hv to apply case2 here i.e. dividing with factorial of no. Of repeated alphabets or vowels..

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  121. Ohkk SSC ki prep..kaise krr rha hai..matlb gk portn kaise krr rha hai..??

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  122. yaar 2 rule padh liye... mere sar ghumne laga.... :))

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  123. Answers:
    1. 4320
    2. 36000, rt??

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  124. whole divided?

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  125. Now i told you that there are many more cases but that are really not important I am explaining these cases because they are important and help ypu while

    solving Probability.

    Now We should move on to the next Topic That Is Combination. Now you know that Permutation means Arrangement or no. of possible ways A thing can be

    arranged. But What is the meaning of Combination.

    Combination is a simple act of Chosing or Selection.

    Like When it is asked What are no. of possible ways Word TITAN can be arrange You have to find The Permutation.

    But if it is asked what are no. of possible ways You can Select 2 alphabet from the word TITAN, It means you have to find Combination.

    The act of selection or Choosing is called COMBINATION.

    Now you all must know what is nPr so it's time to move towards nCr

    Like nPr = n!/(n-r)!

    nCr is somewhat simillar but that is just an extra r! in the denominator

    So nCr = n!/(n-r)!*r!

    nCr means r things has to be selected out of n things.

    Like IN the above Question No. of possible ways 2 alphabets can be selected from the word TITAN

    So total no. of alphabets n = 5

    no. of alphabets which we have to select r = 2

    So the answer will be 5C2 = 5!/(5-2)!*2! = 5!/3!*2! = 5*4/2*1 = 10

    Now i told you have to calculat nPr in a simple way Just like that we can also calculate nCr in a simple way All you have to do is Follow the method of nPr and

    In division you have to also multiply in increasing order from 1

    Like 6C3 = 6*5*4/1*2*3

    And 9C2 = 9*8/1*2

    and 10C4 = 10*9*8*7/1*2*3*4

    7C5 = 7*6*5*4*3/1*2*3*4*5



    I think You all are getting what i am trying to explain, because you know sometimes it's very difficult to explain in written Communication.

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  126. u have clear the basic concept....

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  127. Arre thum concept seeko... baadme practise karenge

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  128. If u r science student than it is easy to score in g.k..15 no ki science ai g..2 3 current affair..1 question currency ya capital of any country..economics chota topic h woh tyr krlo 3 4 ques uske..2 3 ques computers ke..
    If u r non science bckground like me then it is difficut

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  129. thank u..........

    ReplyDelete
  130. hahaha
    chalo koi to hai jo apka sir ghuma sakta hai
    s.s.s

    ReplyDelete
  131. !! मूनमून !!2 July 2015 at 23:54

    If it was asked that VOWELS in LAYERING are never together what is probability ??

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  132. mera bhi ghumta hai pr padhna to padega

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  133. I don't know multiply kar lo yaar.

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  134. haan yaar... majboori hai.... :(

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  135. ­­ʍ€gąʍɨɲď~2 July 2015 at 23:55

    u xplained superbly :)

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  136. Seriously ? How can you ask Probability ?

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  137. Welcome sir! :P

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  138. Bhai is se acha institutes mey b nahi explain karthe shayadh !

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  139. If u wann to arrange thngs then use permutation..if u picked or select things than use combination..its main funda

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  140. Sayad delete krdo..:):)

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  141. ­­ʍ€gąʍɨɲď~2 July 2015 at 23:57

    are. myself student .. :P

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  142. Dhanyawaad. :D

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  143. Bhai probability ki value 0 to 1 hoti hai n so when it is given no vowels should come together than
    1- probability of coming vowels together ........hota hai

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  144. yeas yr
    m getting :))
    u explained 1 no.

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  145. Ur name sounds like a bong..

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  146. :D okay.

    ReplyDelete
  147. Yeahh btt still u xplain vry well

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  148. Wah ji wah kya error nikala aapne

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  149. megamind tune quiz karwana kyu band kar diya??

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  150. !! मूनमून !!2 July 2015 at 23:59

    Evening one person asked the same que ..

    The letters in the word NOKIA be arranged randomely what is the probability that all vowles are not together

    solution :_All vowel come together=3!*3!=36
    Total outcome=5!=120
    Prob of vowel come together =36/120 =3/10
    Prob of all the vowel not comr together =1-3/10=7/10

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  151. !! मूनमून !!2 July 2015 at 23:59

    Hello DK!!

    ReplyDelete