PGDM II SEM

Submitted To: Mr. Vinay Chaporkar

Submitted By: Padma Utwani

Quantitative techniques are those statistical and programming techniques, which help decision makers solve many problems, especially those concerning business and industry

Quantitative techniques are those techniques that provide the decision makers with systematic and powerful means of analysis, based on quantitative data, for achieving predetermined goals

The utility of quantitative techniques has been realized long ago and the science of mathematics is probably as old as the human society The evolution of industrial engineering, scientific methodologies the were prominent earlier in the natural sciences, were found applicable to management functionsplanning, organizing and controlling of operations

They can broadly be put under two groups 1) Statistical Techniques: Which are used in conducting the statistical inquiry concerning a certain phenomenon It includes all the statistical methods beginning from the collection of data till the task of interpretation of the collected data. Collection, Classification, Summarizing, Analyzing , Interpretation of the data

2) Programming Techniques: Used by many decision makers in modern times First designed to tackle defense and military problems and are now being used to solve business problems It includes variety of techniques like linear programming, games theory, simulation, network analysis, queuing theory, and so on

Quantitative techniques specially operation research techniques have gained increasing importance since world war II in the technology of business administration. These techniques greatly help in tackling the intricate and complex problems of modern business and industry

a) b) c)

d)

The inherent limitation concerning mathematical expressions High costs are involved in the use of quantitative techniques Quantitative techniques do not take into consideration the intangible factors ie nonmeasurable human factors. Quantitative techniques are just the tools of analysis and not the complete decision making process

X1 + X2 + Xn Arithmetic Mean =

Where X1, X2 .Xn are individual

observations

The following data presents the monthly individual salary earned by the students of PGDM. All the figures are in lacs 14, 22, 17, 16, 20, 14,22, 19, 30, 28, 14, 29, 16, 12, 10, 10, 12, 15, 25, 27 Calculate the average salary

X1 + X2 + Xn Arithmetic Mean = n

14 + 72 + 17 25 + 27
20 372

=
=

20 18.6

Mean The average score in a frequency distribution Median The score in the middle of frequency distribution, or the score at the 50th percentile. Mode The score that occurs most frequently in the distribution. Range The difference between the highest and lowest score in the distribution.

A set of classes together with the frequencies of occurrences of values in each class in a given set of data, presented in a tubular form is referred a frequency distribution.

* frequency distribution is grouping of data into mutually exclusive classes showing no of observations in each class.

A histogram is "a representation of a frequency distribution by means of rectangles whose widths represent class intervals and whose areas are proportional to the corresponding frequencies.

To display long data rows To interpolate between data points To extrapolate beyond known data values (forecast) To compare different graphs To find and compare trends (changes over time) To recognize correlations and co variations between variables

convey approximate proportional relationships (relative amounts) at a point in time compare part of a whole at a given point in time Exploded: emphasize a small proportion of parts