Quantitative Techniques 115105
Quantitative Techniques 115105
Quantitative Techniques 115105
Session – 2023-24
Submitted to – Submitted by –
Mr. Lokesh Uke Aniket Sahu
(Assistant Professor) (Y21180506)
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ACKNOWLEDGEMENT
Secondly, I would also like to thank my supporting friends who helped me, which added
to successfully completing this assignment.
Thanking you
Aniket Sahu
BBA 5th Semester
(Y21180506)
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PREFACE
This assignment has been prepared as a part of BBA. It is prepared with the view to include
all the details regarding the project that I carried out. The initial portion is the information
about concept of Quantitative techniques followed by Set Theory, Arithmetic progression
and Geometric progression. Then the next part consists of concept of Corelation and
Regression and at the last, file contatins meaning, application, uses, and importance of
Linear programming. I assure you to go through this assignment thoroughly to know a bit
more about Quantative Techniques For Managers.
Aniket Sahu
BBA 5th Semester
(Y21180506)
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CERTIFICATE
This is to certify that the assignment titled ‘Quantative Techniques For Managers’ is an
original work done by Aniket Sahu as a partial requirement of Bachelors of business
Administration, Dr. Harisingh Gour Vishwavidyalaya, Sagar , Madhya Pradesh. The project
has been prepared under my guidance and is a record of the mid II aasignment work carried
out successfully.
He has completed his assignment work under my supervision and guidance. I wish him a
bright future.
………………………………………
Mr. Lokesh Uke
Assistant Professor
Department of Business Management
Dr. Harisingh Gour Vishwavidyalaya
Sagar, Madhya Pradesh
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DECLARATION
I hereby declare that the assignment entitled “Quantative Techniques For Managers”
submitted by me to Dr. Harisingh Gour Vishwavidyalaya, Sagar in partial fulfilment of the
requirement for the award of the degree of BBA , 3 rd year 5th semester is a original work
done by me, under the guidance of Mr. Lokesh Uke sir. I further declare that the work
reported in this assignment has not been submitted and will not be submitted, either in part
or in full, for the award of any other degree or diploma in this institute or any other institute
or university.
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Table Of Content :
• Acknowledgement ……………………………………………….(2)
• Preface …………………………………………………………….(3)
• Certificate ………………………………………………………...(4)
• Declarartion ……………………………………………………….(5)
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INTRODUCTION
Quantitative techniques refer to a set of methods and approaches that involve the use of
quantitative data and mathematical models for analysis, decision-making, and problem-
solving. These techniques rely on numerical information to derive insights, make
predictions, and optimize outcomes in various fields such as business, economics,
science, and engineering. The emphasis is on measurable and objective data, allowing for
a systematic and rigorous approach to addressing complex problems.
Data Collection:
Rely on data which can be collected through various methods such as surveys,
experiments, and observations. Data collected should be relevant, accurate, and
representative of the phenomenon under study.
Measurement:
Involves the measurement of variables. Variables are characteristics or attributes that can
take different values.
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THE NATURE OF QUANTITATIVE TECHNIQUES IN BUSINESS
Data-Driven:
Quantitative techniques involve the use of data and statistical methods to analyze,
model, and solve business problems.
Objective:
Q.T. provides an objective and systematic way to analyze and interpret data, reducing
the possibility of subjective biases in decision making.
Quantifiable:
Q.T. involves the use of measurable and quantifiable data, making it possible to assess
the impact of different factors on business outcomes.
Predictive:
Q.T. allows businesses to make informed predictions and forecasts based on historical
data and mathematical models.
Technologically Driven:
With the rapid advancement of technology, businesses can now leverage advanced
software tools and computational power to conduct complex Q.T. analyses.
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Role of Quantitative Techniques
Quantitative Techniques (Q.T.) play a crucial role in trade and industry across various
aspects, contributing to informed decision-making, efficient operations, and strategic
planning.
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The main role of QT in business and management is explained below:
• Production planning
• Proper deployment of resources
3. Quality maintenance
The technique of statistical quality control helps to maintain the quality of the product
continuously.
5.Marketing management
QT helps to determine where the warehouses are to be located, what should be the size
of the stock , what should be the optimum allocation of sales budget to direct selling
and sales promotion expenses . it is also helps to select the advertising media.
6. Financial management
QT helps to find out the long range capital requirements , ways of raising these funds
, to develop capital investment plans etc.
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Characteristics of Quantitative Techniques
1) Decision-Making :
Decision-making or problem solving constitutes the major working of operations
research: Managerial decision-making is considered to be a general systematic process
of operations research (OR).
2) Scientific Approach :
Like any other research, operations research also emphasizes on the overall approach
and takes into account all the significant effects of the system. It understands and
evaluates them as a whole. It takes a scientific approach towards reasoning. It involves
the methods defining the problem, its formulation, testing and analyzing of the results
obtained.
3) Objective-Oriented Approach :
Operations Research not only takes the overall view of the problem, but also
endeavor's to arrive at the best possible (say optimal) solution to the problem in hand.
It takes an objective-oriented approach. To achieve this, it is necessary to have a
defined measure of effectiveness which is based on the goals of the organization. This
measure is then used to make a comparison between alternative solutions to the
problem and adopt the best one.
4) Inter-Disciplinary Approach :
No approach can be effective, if taken singly. OR is also inter-disciplinary in nature.
Problems are multi-dimensional and approach needs a team work. For example,
managerial problems are affected by economic, sociological, biological,
psychological, physical and engineering aspect. A team that plans to arrive at a
solution, to such a problem, needs people who are specialists in areas such as
mathematics, engineering, economics, statistics, management, etc.
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Importance of quantitative analysis :
Quantitative analysis plays a crucial role in various fields because it provides objective,
numerical insights and supports informed decision-making. Here are some key reasons
why quantitative analysis is important:
Objective Decision-Making
Quantitative analysis relies on data and mathematical/statistical methods, which help
minimize subjectivity and bias in decision-making. This objectivity is particularly
valuable when dealing with complex issues that require evidence-based conclusions.
Resource Allocation
Quantitative analysis assists in optimizing the allocation of resources, whether it’s
allocating budgets, manpower, or time. Organizations can make efficient use of their
resources by understanding the relationships between variables.
Predictive Modeling
Many quantitative techniques, such as regression analysis and time series analysis, are
used to build predictive models. These models help forecast future outcomes, allowing
businesses and organizations to plan ahead and make proactive decisions.
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Set Theory :
Set theory is a branch of mathematical logic that studies sets, which are collections of
objects. The fundamental concept in set theory is the notion of a "set," which is a well-
defined collection of distinct objects, These objects are often called elements or
members of a set. For example, a group of players in a cricket team is a set.
Set is a well-defined collection of objects or people. Sets can be related to many real-
life examples, such as the number of rivers in India, number of colours in a rainbow,
etc.
Example: A={Red, Orange, Yellow} denotes a set with elements Red, Orange and
Yellow.
Types Of Sets
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Roster Form
In roster form, all the elements of the set are listed, separated by commas and enclosed
between curly braces { }.
Example: If set represents all the leap years between the year 1995 and 2015, then it
would be described using Roster form as:
A ={1996,2000,2004,2008,2012}
Now, the elements inside the braces are written in ascending order. This could be
descending order or any random order. As discussed before, the order doesn’t matter
for a set represented in the Roster Form.
Also, multiplicity is ignored while representing the sets. E.g. If L represents a set that
contains all the letters in the word ADDRESS, the proper Roster form representation
would be
L ={A,D,R,E,S }= {S,E,D,A,R}
L≠ {A,D,D,R,E,S,S}
In set builder form, all the elements have a common property. This property is not
applicable to the objects that do not belong to the set.
Example: If set S has all the elements which are even prime numbers, it is
So, S = { x:x is an even prime number } is read as ‘the set of all x such that x is an
even prime number’. The roster form for this set S would be S = 2. This set contains
only one element. Such sets are called singleton/unit sets.
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Another Example:
How?
Even though, 4, 9, 121, etc., are also perfect squares, but they are not elements of the
set F, because the it is limited to only two-digit perfect square.
First Term of AP
The AP can also be written in terms of common differences, as follows;
d = a2 – a1 = a3 – a2 = ……. = an – an – 1
Where “d” is a common difference. It can be positive, negative or zero.
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a = First term d =
Common difference
n = number of terms
an = nth term
Example:
Find the nth term of AP: 1, 2, 3, 4, 5…., an, if the number of terms are 15.
Solution: Given, AP: 1, 2, 3, 4, 5…., an n=15
By the formula we know, an = a+(n-1)d
First-term, a =1
Common difference, d=2-1 =1
Therefore, an = a15 = 1+(15-1)1 = 1+14 = 15
GEOMETRIC PROGRESSION
Note: It is to be noted that when we divide any succeeding term from its preceding term,
then we get the value equal to the common ratio.
ar2/ar = r
ar3/ar2 = r
ar4/ar3 = r
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ratio ar^n-1 =
nth term
Examples of Geometric Progression
If the first term is 10 and the common ratio of a GP is 3, then write the first five terms
of GP.
Solution: Given,
First term, a = 10
Common ratio, r = 3
We know the general form of GP for first five terms is given by:
ar = 10 × 3 = 30 ar2 =
10 × 32 = 10 × 9 = 90
= 10 × 34 = 810
Therefore, the first five terms of GP with 10 as the first term and 3 as the common
ratio are:
Correlation
This section shows how to calculate and interpret correlation coefficients for ordinal and
interval level scales. Methods of correlation summarize the relationship between two
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variables in a single number called the correlation coefficient. The correlation
coefficient is usually represented using the symbol r, and it ranges from -1 to +1.
A correlation coefficient quite close to 0, but either positive or negative, implies little or
no relationship between the two variables. A correlation coefficient close to plus 1
means a positive relationship between the two variables, with increases in one of the
variables being associated with increases in the other variable.
- A positive correlation (r > 0) means that as one variable increases, the other tends to
increase as well.
- A negative correlation (r < 0) indicates that as one variable increases, the other tends to
decrease.
Correlation does not imply causation; it only quantifies the strength and direction of a
linear relationship. It's sensitive to outliers, and a correlation of 0 does not guarantee
independence. The closer the correlation coefficient is to -1 or 1, the stronger the linear
relationship.
The Pearson correlation coefficient, often denoted by the symbol r, is a measure of the
linear relationship between two variables. It ranges from -1 to 1, where:
Spearman correlation assesses the strength and direction of the monotonic relationship
between two variables.
It does not assume a linear relationship; it measures how well the relationship can be
described using a monotonic function.
n = number of observations
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Uses of Correlation
Correlation is a statistical measure widely used in various fields for different purposes.
Here are some common uses of correlation:
Psychology:
Studying the correlation between different psychological variables, such as intelligence
and academic performance.
Analyzing the relationship between stress levels and mental health outcomes.
Education:
Assessing the correlation between study habits and academic achievement.
Investigating the relationship between teaching methods and student performance.
Social Sciences:
Investigating the correlation between income levels and access to education.
Analyzing the relationship between demographic variables and voting patterns.
Environmental Science:
Studying the correlation between pollution levels and the prevalence of respiratory
diseases. Analyzing the relationship between climate variables and biodiversity.
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Limitation Of Correlation :
1. We are only considering LINEAR relationships
2. r and least squares regression are NOT resistant to outliers
3. There may be variables other than x which are not studied, yet do influence
the response variable A strong correlation does NOT imply cause and effect
relationship Extrapolation is dangerous.
Regression-
Regression is a statistical method used in finance, investing, and other disciplines that
attempts to determine the strength and character of the relationship between one
dependent variable (usually denoted by Y) and a series of other variables (known as
independent variables).
Uses of Regression-
Market Research:
Analyzing the impact of marketing strategies on sales and predicting market trends.
Medical Research:
Studying the relationship between risk factors and health outcomes, predicting patient
outcomes, and identifying significant factors influencing medical conditions.
Social Sciences:
Understanding and modeling relationships between variables in areas like sociology,
psychology, and education
Human Resources:
Predicting employee performance based on factors such as training, experience, and job
satisfaction.
Quality Control:
Assessing the impact of process parameters on product quality and predicting defect
rates.
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Environmental Science:
Studying the relationship between environmental factors (e.g., pollution levels,
temperature) and their impact on ecosystems.
Engineering:
Predicting the performance of materials, structures, or processes based on various
factors and conditions.
Education:
Analyzing the relationship between teaching methods, student engagement, and
academic performance.
Correlation describes
Regression depicts
as a statistical
how an independent
measure that
variable serves to be
1. Definition determines the
numerically related
association or co-
to any dependent
relationship between
variable.
two or more variables.
Regression
Correlation
coefficient i.e slope
coefficients may
2. Range and intercepth may
range from -1.00 to
be any positive and
+1.00.
negative values.
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Basis Correlation Regression
To estimate the
To find the numerical
values of random
value that defines and
4. Aim variables based on
shows the relationship
the values shown by
between variables.
fixed variables.
Its coefficient is
Its coefficient fails
6. Nature mutual and
to be symmetrical.
symmetrical.
In this, x is a random
variable and y is a
In this, both variables
fixed variable. At
8. Variables x and y are random
times, both variables
variables.
may be like random
variables.
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Linear programming (LP)
Resource allocation :
Linear programming is used in industries to allocate limited resources to maximize
production output while minimizing costs.
Production planning :
Linear programming can be applied to production planning to optimize resource
allocation.
Decision making :
Linear programming improves the quality of decisions by calculating the cost and profit
of different things.
Adaptability :
Linear programming can easily adapt to changes in circumstances.
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Application of linear programming
Agriculture:
Crop planning to optimize the allocation of land, labor, and resources for maximum yield
and profit.
Telecommunications:
Resource allocation for optimal network design, considering factor such as bandwidth, cost,
and reliability.
Energy Sector:
Determining the optimal mix of energy sources to meet demand while minimizing costs
and environmental impact.
Healthcare Management:
Staff scheduling in hospitals to optimize utilization and minimize
costs. Resource allocation for medical equipment and facilities.
Environmental Management:
Optimal waste management planning to minimize disposal costs and environmental
impact. Conservation planning to allocate resources efficiently.
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Bibliography :
• https://plato.stanford.edu/entries/set-theory/
• https://www.geeksforgeeks.org/correlation-meaning-significance-
types-and-degree-of-correlation/
• https://www.geeksforgeeks.org/difference-between-correlation-and-
regression/
• https://byjus.com/commerce/types-of-correlation/
• https://byjus.com/maths/correlation/
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