C723 QUANTITATIVE ANALYSIS FOR
BUSINESS COMPREHENSIVE STUDY GUIDE
2026 BUSINESS ANALYTICS SOLUTIONS
VERIFIED A+
◉ Payoff tables
Answer: will quantify the costs and benefits of each solution
alternative.
◉ Decision trees
Answer: will be used to identify the alternatives and probabilities of
occurrence.
◉ Network analysis
Answer: refers to the network of activities required to complete a
business project.
◉ Quantitative analysis
Answer: provides methods to analyze large or small amounts of data
to look for patterns, trends, and relationships.
,◉ Mathematical analysis
Answer: can help managers make strategic decisions and find
statistically supported solutions to business questions. These are
functional areas over a period of time.
◉ Data may be categorized as either
Answer: subjective or objective.
◉ Subjective data
Answer: obtained through surveys and interviews, are considered
non-measurable,
data typically include personal perceptions, such as likes, dislikes,
attitudes, and opinions.
◉ Objective data are
Answer: measurable and typically arise from observation or testing
in business areas like sales, operations, manufacturing, and logistics.
Data must be valid: that is, the data must accurately represent the
true business relationship at hand. Further, the data must be
reliable: if we sought to characterize a particular business
relationship by gathering data several different times (different
,samples), the data would reflect the relationship the same way with
every sample.
◉ Examples of quantitative analysis
Answer: cost-benefit analysis, inventory analysis, logistical analysis,
and forecasting revenue.
◉ quantitative analysis approach
Answer: defines a problem and then develops a mathematical model
to represent the particular business situation. The model allows
managers to make inferences regarding the data.
◉ Total Revenue
Answer: p=$xq $X is the revenue earned per item sold, Q is the
quantity of items sold.
Company XYZ can use this equation to forecast its revenue if X
remains constant
◉ Steps in Quantitative Analysis
Answer: 1. Define problem.
2. Develop mathematical model.
3. Prepare and input data.
, 4. Find best solution.
5. Test solution.
6. Analyze results.
7. Implement solution.
◉ Cause and effect use
Answer: independent and dependent variables. A dependent
variable is the variable that is being measured, or affected. The
independent variable is free to change in a given model.
The dependent variable is affected by the changes in the causing
independent variable. Although only one dependent variable is
considered, many independent variables can have an effect.
◉ fishbone diagram is sometimes
Answer: used to determine the cause of a problem.
◉ moderating relationship
Answer: the relationship between the dependent and independent
variables depends on the level of the moderating variable.
◉ mediating variable
BUSINESS COMPREHENSIVE STUDY GUIDE
2026 BUSINESS ANALYTICS SOLUTIONS
VERIFIED A+
◉ Payoff tables
Answer: will quantify the costs and benefits of each solution
alternative.
◉ Decision trees
Answer: will be used to identify the alternatives and probabilities of
occurrence.
◉ Network analysis
Answer: refers to the network of activities required to complete a
business project.
◉ Quantitative analysis
Answer: provides methods to analyze large or small amounts of data
to look for patterns, trends, and relationships.
,◉ Mathematical analysis
Answer: can help managers make strategic decisions and find
statistically supported solutions to business questions. These are
functional areas over a period of time.
◉ Data may be categorized as either
Answer: subjective or objective.
◉ Subjective data
Answer: obtained through surveys and interviews, are considered
non-measurable,
data typically include personal perceptions, such as likes, dislikes,
attitudes, and opinions.
◉ Objective data are
Answer: measurable and typically arise from observation or testing
in business areas like sales, operations, manufacturing, and logistics.
Data must be valid: that is, the data must accurately represent the
true business relationship at hand. Further, the data must be
reliable: if we sought to characterize a particular business
relationship by gathering data several different times (different
,samples), the data would reflect the relationship the same way with
every sample.
◉ Examples of quantitative analysis
Answer: cost-benefit analysis, inventory analysis, logistical analysis,
and forecasting revenue.
◉ quantitative analysis approach
Answer: defines a problem and then develops a mathematical model
to represent the particular business situation. The model allows
managers to make inferences regarding the data.
◉ Total Revenue
Answer: p=$xq $X is the revenue earned per item sold, Q is the
quantity of items sold.
Company XYZ can use this equation to forecast its revenue if X
remains constant
◉ Steps in Quantitative Analysis
Answer: 1. Define problem.
2. Develop mathematical model.
3. Prepare and input data.
, 4. Find best solution.
5. Test solution.
6. Analyze results.
7. Implement solution.
◉ Cause and effect use
Answer: independent and dependent variables. A dependent
variable is the variable that is being measured, or affected. The
independent variable is free to change in a given model.
The dependent variable is affected by the changes in the causing
independent variable. Although only one dependent variable is
considered, many independent variables can have an effect.
◉ fishbone diagram is sometimes
Answer: used to determine the cause of a problem.
◉ moderating relationship
Answer: the relationship between the dependent and independent
variables depends on the level of the moderating variable.
◉ mediating variable
