Question 1: How has quantitative analysis changed the current scenario

in the management world today?

An sw er:
Quantitative analysis requires the representation of the problem using
a mathematical model. Mathematical modeling is a critical part of the
quantitative approach to decision making. Quantitative factors can be
measured in terms of money or quantitative units. Examples are
incremental revenue, added cost, and initial outlay.
Q u a l it a t iv e f a c t o r s in decision making are the factors relevant to
a decision that are difficult to measure in terms of money.
Qualitative factors may include: (! effect on employee morale, schedule
and other internal elements" (#! relationship $ith and commitments to
suppliers" (%! effect on present and future customers" and (&! long'
term future effect on profitability. (n some decision'making situations,
qualitative aspects are more important than immediate financial
benefit from a decision.
Di ffe r e n t S t a t is t i c a l
T ec h n i q u e s
M e a s u r es o f C e n tr a l T e n d e n c y : )or proper understanding of
quantitative data, they should be classified and converted into a
frequency distribution. *his type of condensation of data reduces their
bulk and gives a clear picture of their structure. (f you $ant to kno$ any
specific characteristics, of the given data or if frequency distribution
of one set of data to be compared $ith another, then it is necessary that
the frequency distribution itself must be summari+ed and condensed in
such a manner that it must help us to make useful inferences about the
data and also provide yardstick for comparing different sets of data.
M e a s u r es o f D i s p e r s io n : Measures of dispersion $ould tell you
the number of values, $hich are substantially different from the
mean, median or mode. *he commonly used measures of dispersion are
range, mean deviation and standard deviation.
C o r r e la t i o n : ,orrelation coefficient measures the degree to $hich
the change in one variable (the dependent variable! is associated $ith
change in the other variable ((ndependent one!. )or example, as a
marketing manager, you $ould like to kno$ if there is any relation
bet$een the amounts of money you spend on advertising and the sales
you achieve. -ere, sales are the dependent variable and advertising
budget is the independent variable. ,orrelation coefficient, in this case,
$ould tell you the extent of relationship bet$een these t$o
variables, $hether the relationship is directly proportional (i.e.
increase or decrease in advertising is associated $ith increase or
decrease in sales! or it is an inverse relationship (i.e. increasing
advertising is associated $ith decrease in sales and vice'versa! or
there is no relationship bet$een the t$o variables.
R e g r e s s io n A n a ly sis : .egression analysis includes any techniques for
modeling and analy+ing several variables, $hen the focus is on the
relationship bet$een a dependent variable and one or more independent
variables. /sing this technique you can predict the dependent variables
on the basis of the independent variables. (n 012, 3,4E. (3ational
,ouncil of 4pplied and Economic .esearch! predicted the annual stock of
scooters using a regression model in $hich real personal disposable
income and relative $eighted price index of scooters $ere used as
independent variable.
Time Series Analysis: 5ith time series analysis, you can isolate and
measure the separate effects of these forces on the variables.
Examples of these changes can be seen, if you start measuring increase
in cost of living, increase of population over a period of time, gro$th of
agricultural food production in (ndia over the last fifteen years, seasonal
requirement of items, impact of floods, strikes, and $ars so on.
I n d e ! u m "e r s : 4n index number is an economic data figure reflecting
price or quantity compared $ith a standard or base value. *he base
usually equals 22 and the index number is usually expressed as 22
times the ratio to the base value. )or example, if a commodity costs
t$ice
as much in 012 as it did in 062, its index number $ould be #22
relative to 062. (ndex numbers are used especially to compare business
activity, the cost of living, and employment. *hey enable economists to
reduce un$ieldy business data into easily understood terms.
S a m p l in g a n d S t a t i s ti c a l I n fe r e n c e: (n many cases due to shortage of
time, cost or non availability of data, only limited part or section of the
universe (or population! is examined to (a! get information about the
universe as clearly and precisely as possible, and (b! determine the
reliability of the estimates. *his small part or section selected from the
universe is called the sample, and the process of selections such a
section (or past! is called sampling.
#ample: Site selection process $quantitative and
qualitative f a ct o r s %
5hile quantitative factors have been and $ill continue to be very
important in the site selection process, qualitative factors are also
critical in order to ensure that the company makes the best decision.
5hat are the most important quantitative and qualitative factors
evaluated by site selection advisors and companies $hen making a
decision regarding the location of a ne$ or expanded operation7 *he list
$ill vary depending on type of facility (i.e. manufacturing, logistics,
research 8 technology, office!, but most factors apply to all forms
of pro9ects. :elo$ is a summary of the most important quantitative
and qualitative factors
considered by companies.
Q u a n t it a t iv e & a c t o r s
. ;roperty *ax .ates
#. ,orporate (ncome *ax .ates
%. <ales *ax .ates
&. .eal Estate ,osts
=. /tility .ates
6. 4verage 5age><alary ?evels
1. ,onstruction ,osts
@. 5orkerAs ,ompensation .ates
0. /nemployment ,ompensation .ates
2. ;ersonal (ncome *ax .ates
. (ndustry <ector ?abor ;ool <i+e
#. (nfrastructure Bevelopment ,osts
%. Education 4chievement ?evels
&. ,rime <tatistics
=. )requency of 3atural Bisasters
6. ,ost of ?iving (ndex
1. 3umber of ,ommercial )lights to Cey Markets
@. ;roximity to Ma9or Cey Deographic Markets
0. /nioni+ation .ate>.ight to 5ork versus 3on'.ight to 5ork <tate
#2. ;opulation of Deographic 4rea
Q u a l it a t iv e & a c t o r s
. ?evel of ,ollaboration $ith Dovernment, Educational and /tility Efficials
#. <ports, .ecreational and ,ultural 4menities
%. ,onfidence in 4bility of 4ll ;arties to Meet ,ompanyAs Beadlines
&. ;olitical <tability of ?ocation
=. ,limate
6. 4vailability of Quality -ealthcare
1. ,hemistry of ;ro9ect *eam $ith ?ocal and <tate Efficials
@. ;erception of Quality of ;rofessional <ervices )irms to Meet the
,ompanyAs 3eeds
0. ;redictability of ?ong'term Eperational ,osts
2. 4bility to ,omplete .eal Estate Bue Biligence ;rocess Quickly
4nother important part of the site selection evaluation process relates to the
$eighting of the key quantitative and qualitative factors. Bepending on the
type of pro9ect, factors $ill be $eighted differently. 4s an example, for a ne$
manufacturing facility pro9ect, issues such as utility rates, real estate costs,
property tax rates, collaboration $ith governmental entities, and average
hourly $age rates may be $eighted more heavily. :y contract, for a
ne$ office facility factors such as real estate costs, number of commercial
flights, crime statistics, climate and industry sector labor pool si+e may be
more important.
Every pro9ect is unique and must be evaluated based upon its o$n
individual set of circumstances.