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    Ninia Quiambao
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    Quantitative techniques involve collecting and analyzing measurable data like revenues, market share, and wages to understand business performance. Managers use these techniques in project management, production planning, purchasing, inventory, marketing, financing, and research and development. Methods like regression analysis, correlation, and forecasting help predict costs and analyze relationships between variables to inform business decisions.

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    Quantitative techniques involve collecting and analyzing measurable data like revenues, market share, and wages to understand business performance. Managers use these techniques in project management, production planning, purchasing, inventory, marketing, financing, and research and development. Methods like regression analysis, correlation, and forecasting help predict costs and analyze relationships between variables to inform business decisions.

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    8 views2 pages

    Quantitative Techniques

    Uploaded by

    Ninia Quiambao
    Quantitative techniques involve collecting and analyzing measurable data like revenues, market share, and wages to understand business performance. Managers use these techniques in project management, production planning, purchasing, inventory, marketing, financing, and research and development. Methods like regression analysis, correlation, and forecasting help predict costs and analyze relationships between variables to inform business decisions.

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    of 2

    QUANTITATIVE TECHNIQUES

    is the process of collecting and evaluating measurable and verifiable data such as revenues, market share,
    and wages in order to understand the behavior and performance of a business.

    USES:
    -give managers a better grasp of the problems so that they can make the best decisions based on
    the information available.
    -used by managers in practically all aspects of a business.
    1) Project Management
    -are used for optimizing the allocation of resources.
    2) Production Planning and Scheduling
    -determining the size & location of new production facilities is a complex issue.
    3) Purchasing and Inventory
    4) Marketing
    5) Financing
    6) Research & Development

    METHODS IN high-low
    SEGREGATING scatter-graph
    MIXED COSTS least-squares

    COST PREDICTION TECHNIQUES


    Regression Analysis
    is a statistical technique used to find the relations between two or more variables.

    Linear Regression
    is a method that studies the relationship between continuous variables.

    Basic Types:
    1 Simple regression -there is only one dependent and independent variables
    2 Multiple regression -there are many independent variables influencing one variable.

    Correlation
    -it shows the strength and direction of a relationship between two variables and is expressed numerically by
    the correlation coefficient.
    -used in determining the behavior of an investment's return with a market index.

    Correlation coefficient's values


    Perfect positive correlation =exactly 1.
    ranges between -1.0 and 1.0 Perfect negative correlation
    =two asset move in opposite directions
    Zero Correlation
    =implies no linear relationship at all.
    r=0.9 r=0.2 r=0 r=-0.9

    1. Strong, Positive 2. Weak, Positive 3. No Correlation 4. Strong, Negative

    *Correlation play an important role in finance because they are used to forecaast future trends and to manage
    the risks w/n a porfolio.
    LEARNING CURVE
    -Experience curve, cost curve, efficiency curve, or productivity curve.
    -Provides measurement and insight into all the above aspects of a company.

    Learning curve theory:


    -as the quantity of a prouct produced doubles, the recurring cost per unit decreases at a fixed or constant
    percentage.
    -it is based on the simple idea that the time required to perform a task decreases as a worker gains
    experience.

    Probability
    -is a measure of the likelihood of an event to occur.

    Expected Value (EV)


    -is an anticipated value for an investment some point in the future.

    Forecasting-Exponential smoothing
    -is a forecating technique that uses a weighted moving average of past data as the basis for a forecast.

    DECISION TREE DIAGRAM


    -is a diagrammatic representation of a problem and on it we show all possible courses of action that we can
    take in a particular situation and all possible outcomes for each possible course of action.

    Two Stages:
    1 Construction stage
    2 Evaluation and Recommendation stage

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