QUANTITATIVE TECHNIQUES FOR BUSINESS …

1 QUANTITATIVE TECHNIQUESFOR BUSINESS DECISIONSM aster of commerceSemester IPaper IIStudy Material2015 Admission onwardsUNIVERSITYOFCALICUTSCHOOL OF DISTANCE EDUCATIONCALICUT UNIVERSITY , THENJIPALAM, MALAPPURAM-6736352022 QUANTITATIVE TECHNIQUESFOR BUSINESS DECISIONSM aster of commerceSemester IPaper IIStudy Material2015 Admission onwardsUNIVERSITYOFCALICUTSCHOOL OF DISTANCE EDUCATIONCALICUT UNIVERSITY , THENJIPALAM, MALAPPURAM-6736352022 QUANTITATIVE TECHNIQUESFOR BUSINESS DECISIONSM aster of commerceSemester IPaper IIStudy Material2015 Admission onwardsUNIVERSITYOFCALICUTSCHOOL OF DISTANCE EDUCATIONCALICUT UNIVERSITY , THENJIPALAM, MALAPPURAM-6736352022 School of Distance EducationQuantitative TECHNIQUES for BUSINESS DecisionsPage2 UNIVERSITYOFCALICUTSCHOOL OF DISTANCE EDUCATIONM aster of commerceStudy Material2015 Admission onwardsSemester IPaper IIQUANTITATIVE TECHNIQUES FOR BUSINESS DECISIONSP repared byDr.

2 Yakoob . and Research Guide,SS COLLEGE, settings and Lay out :Computer Section, SDE ReservedSchool of Distance EducationQuantitative TECHNIQUES for BUSINESS DecisionsPage3 TABLE OF TECHNIQUES -CONCEPTS52 INFERENTIALANALYSIS-POINT ESTIMATION133 INTERVAL ESTIMATION194 SAMPLING & SAMPLE SIZE235 TESTS OF SIGNIFICANCE-CONEPTS276 PARAMETRIC TESTS MEANS & PROPORTIONS327 TESTS FOR VARIANCE & PAIRED OBSERVATIONS458 ANALYSIS OF VARIANCE519 NONP[ARAMETRIC TESTS-CONCEPTS5910 CHI-SQUARE TESTS6511 SIGN AND SIGNED RANK TESTS7312 RANK SUM & OTHER NON PAREMETRIC TESTS8413 STATISTICAL QUALITY CONTROL-CONCEPTS9314 CONTROL CHART FOR VARIABLES10015 CONTROL CHART FOR ATTRIBUTES10716 TOTAL QUALITY MANAGEMENT11617 CORRELATION ANALYSIS12218 RANL.]

3 PARTIAL & MULTIPLE CORRELATION13119 REGRESSION ANALYSIS13720 SOFTWARES FOR QUANTITATIVE ANALYSIS14721 APPENDIX160 School of Distance EducationQuantitative TECHNIQUES for BUSINESS DecisionsPage4 School of Distance EducationQuantitative TECHNIQUES for BUSINESS DecisionsPage5 UNIT 1 QUANTITATIVE TECHNIQUES FOR MANAGERIAL DECISIONSI ntroductionDecision making is the most complex, butessentialhuman havebeen developed for facilitating decision making whether inordinary course of life or decisions are always applauded. Decisions determine the destiny of individuals can be based on both qualitative aspects and QUANTITATIVE data. Certainsituations warrant the introduction of elements of quantities which support judgment andintuition.

4 Many of the decision circumstances of BUSINESS organizations necessitate planning andevaluation of alternatives. Thus emergedthe subject ofquantitative is becoming more and more complex and requires effective management tosucceed. Managing complexity requires many professional skillsincluding QUANTITATIVE environment is being globalized, competitors are increasing, demand is getting diverse,and employeesbecoming more a consequence, effective decisionmaking is more crucial than ever the other hand, managers have more access to larger and more detailed data basethat are potential sources of information. However, to achieve this potential, it isrequiredthatmanagers know how to convert data into information.

5 This is one of the reasons why quantitativetechniquesare being more and more isa practical methodological technique , there isno precisedefinition forthe TECHNIQUES aredefinedas those statistical techniqueswhich leadto numerical analysis of variables,affecting a decision situation,and evaluation ofalternative strategies to attain objectives of organizations. Quantitativetechniquesinvolves transformation of a qualitative description of adecisionsituation, into QUANTITATIVE format,identifying of variables, setting out alternativesolutions and supplementingdecision making, by replacingjudgment and intuition. Quantitativetechniquesmay be described as those TECHNIQUES whichprovide decisionmaker,with a systematic and powerful tool of analysis,based on quantitativeand numericdatarelating to alternative option.

6 Thus QUANTITATIVE TECHNIQUES are a set of techniquesinvolving numerical formulation of adecision situation and analysis of variables, so as toarrive atalternative solutions, leading tooptimal and NatureQuantitative TECHNIQUES comprise those statisticaland programming TECHNIQUES which arehelpful in managerial decision making. These TECHNIQUES involve use of numbers, symbols andother mathematical expressions to express problems in QUANTITATIVE terms. They serve as a usefulsupplement to human judgment and intuition. They prove a systematic means of analysis andchoice for attaining predetermined objectives of an organization. QUANTITATIVE TECHNIQUES involveuse of scientific methods of experimentation, observation and modification, in managerialdecisionmaking of Distance EducationQuantitative TECHNIQUES for BUSINESS DecisionsPage6 FeaturesDescriptions of quantitativetechniques revealfollowing characteristics or is the basis of QUANTITATIVE technique .

7 Measurement is assigning numbersto concepts and phenomena. Measurement generates necessary analysisAnother basicfeature of quantitativetechniques isnumerical expression of variables andanalysis thereto. Even qualitative characteristics or phenomenon can betransformedtonumbersand symbols using methodQuantitative techniquesfor decision making are examples for the use of scientificmethods of management. It offers asystematicand objectiveexperimentation, observation andevaluationof best makingIt is a support system in decision making process. It provides decision makers withappropriate tools of evaluation and techniquesshould evaluate and reveal alternative strategies or is no scope fordecisionwhere there is a single TECHNIQUES should replace personal judgment and intuition.

8 It should lead toimprovedand ofquantitative techniquesQuantitativeTechniquesare thosemethods in which details of a problem or situation areexpressedin numerical terms, so as to support decision making. Accordingly, following are thefunctions ofQuantitative techniquesQuantificationCritical factors affecting a decision situation is transformed intoquantitative or numericalform. It is easy to comprehend, understand and delegate an issue in numerical TECHNIQUES enablescientific and systematic study of any issue. It probes deepinto the factors influencing the problem and helps to express thesituation in a makingQuantitative TECHNIQUES facilitatethe process of decision making.

9 It sets out all possiblealternatives and enables a feasibility study of each so that the optimal alternative canbe chosenDeployment of resourcesQuantitativetechniques, if properly applied, leads to optimal allocation of availablelimited resources. It avoids wastages and less efficient usage of resources, and leads toconservation of of Distance EducationQuantitative TECHNIQUES for BUSINESS DecisionsPage7 SequencingCertain projects may involve several complex activities , to be performed in a techniquesaids in determining optimal sequence of performing a set of jobs,so as to minimizetotal serviceIn service sector,quantitativetechniquesis the only option for addressing questions likewaiting time, service time, traffic intensity.

10 Idle time ofquantitative techniquesin decision makingQuantitative TECHNIQUES havebeen increasingly used in decisionmaking relating tosolution of complex problems of BUSINESS and TECHNIQUES arenowrecognized as an effective tool for solving managerial problems. Its role is vital due to followingreasons,Better controlManagement of bigger organizations find it much costlier to provide continuous executivesupervision over routine decisions. AQuantitativetechniquesapproach directs the executives todevote their attention to more pressing matters. For examplequantitativetechniquesapproachdea ls with production scheduling and inventory coordinationSometimes QUANTITATIVE TECHNIQUES havebeen very useful in maintaining the orderlysituation out of chaos.