The Algebra is concerned with three undefined concepts; entity, property, and value. Although these concepts are formally undefined, certain intuitive statements can be made.Data processing is the activity of maintaining and processing data to accomplish certain objectives. The data are collections of values of certain selected properties of certain selected entities. e.g. A payroll manager has many objectives of which the primary one is the payment of his employees (the entities). He selects certain properties such as employee number, name, sex, hourly payrate, and he maintains a file in which he records values of these properties for each entity.