C723 Quantitative Analysis for Business Final Exam
Decision models are used to identify a business problem and develop alternative solutions.
Payoff tables will quantify the costs and benefits of each solution alternative.
Decision trees will be used to identify the alternatives and probabilities of occurrence.
Network analysis refers to the network of activities required to complete a business project.
Quantitative analysis provides methods to analyze large or small amounts of data to look for patterns,
trends, and relationships.
Mathematical analysis 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 subjective or objective.
Subjective data obtained through surveys and interviews, are considered non-measurable,
data typically include personal perceptions, such as likes, dislikes, attitudes, and
opinions.
Objective data are 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 cost-benefit analysis, inventory analysis, logistical analysis, and forecasting
revenue.
quantitative analysis approach 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 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 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.
, C723 Quantitative Analysis for Business Final Exam
Cause and effect use 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 used to determine the cause of a problem.
moderating relationship the relationship between the dependent and independent variables depends on
the level of the moderating variable.
mediating variable explains the relationship between the dependent and independent variables.
Scatter diagrams are used to graph pairs of numbers to determine the relationship.
trend line The line that shows the general direction of the relationship of points over time
If the trend line moves downward as we progress from there is a negative correlation between the two variables.
left to right
what does it mean if one variable increases as the other That there is a positive correlation between the variables
variable also increases?
Forecasting helps businesses make adjustments to the current business environment to
encourage better business outcomes in the future.
Choice vs decision decision -is to choose among reasonable alternatives.
Quantitative analysis is based on specific, not subjective, information. Businesses can obtain specific
information through a method of closed questions.
Subjective questioning uses open-ended answers.
Open-ended questions questions that do not offer answer choices but instead encourage a narrative
response.
Examples of quantitative data gathering strategies can include surveys with close-ended questions, observing
measurable events (how many people were in the coffee shop at a specific time
of day), and performance data.
Mathematical models are used to quantitatively analyze the impact of changes on business
performance and the evaluation of risk.
Decision models are used to identify a business problem and develop alternative solutions.
Payoff tables will quantify the costs and benefits of each solution alternative.
Decision trees will be used to identify the alternatives and probabilities of occurrence.
Network analysis refers to the network of activities required to complete a business project.
Quantitative analysis provides methods to analyze large or small amounts of data to look for patterns,
trends, and relationships.
Mathematical analysis 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 subjective or objective.
Subjective data obtained through surveys and interviews, are considered non-measurable,
data typically include personal perceptions, such as likes, dislikes, attitudes, and
opinions.
Objective data are 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 cost-benefit analysis, inventory analysis, logistical analysis, and forecasting
revenue.
quantitative analysis approach 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 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 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.
, C723 Quantitative Analysis for Business Final Exam
Cause and effect use 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 used to determine the cause of a problem.
moderating relationship the relationship between the dependent and independent variables depends on
the level of the moderating variable.
mediating variable explains the relationship between the dependent and independent variables.
Scatter diagrams are used to graph pairs of numbers to determine the relationship.
trend line The line that shows the general direction of the relationship of points over time
If the trend line moves downward as we progress from there is a negative correlation between the two variables.
left to right
what does it mean if one variable increases as the other That there is a positive correlation between the variables
variable also increases?
Forecasting helps businesses make adjustments to the current business environment to
encourage better business outcomes in the future.
Choice vs decision decision -is to choose among reasonable alternatives.
Quantitative analysis is based on specific, not subjective, information. Businesses can obtain specific
information through a method of closed questions.
Subjective questioning uses open-ended answers.
Open-ended questions questions that do not offer answer choices but instead encourage a narrative
response.
Examples of quantitative data gathering strategies can include surveys with close-ended questions, observing
measurable events (how many people were in the coffee shop at a specific time
of day), and performance data.
Mathematical models are used to quantitatively analyze the impact of changes on business
performance and the evaluation of risk.
