Page 22 - DMGT209_QUANTITATIVE_TECHNIQUES_II

Unit 1: Quantitative Techniques for Managers

Operations Research: It is a scientific method of providing executive departments with a Notes
quantitative basis for decision regarding the operations under control.
Predictive Models: Models which are used to predict the status of a system in the near future
based on data.
Quantitative Techniques: It is the name given to the group of statistical and operations research
(or programming) techniques.
Statistical Data: It refers to numerical description of quantitative aspects of things. These
descriptions may take the form of counts or measurement.

Statistical Decision Theory: It is concerned with the establishment of rules and procedures for
choosing the course of action from alternative courses of actions under situation of uncertainty.
Statistical Methods: These methods include all those devices of analysis and synthesis by means
of which statistical data are systematically collected and used to explain or describe a given
phenomenon.

Answers: Self Assessment

1. Quantitative techniques 2. Qualitative or judgment

3. Statistical methods 4. Secondary data
5. Decision environment 6. Linear Models
7. Simulation model 8. False
9. True 10. True

11. True 12. False

1.10 Review Questions

1. Briefly explain an overview of quantitative techniques. What factors in modern society
contribute to the increasing importance of quantitative approach to management?
2. Describe the major phases of statistics. Formulate a business problem and analyse it by
applying these phases. Also explain the various statistical methods.

3. Explain the distinction between:
(a) Static and dynamic models
(b) Analytical and simulation models
(c) Descriptive and prescriptive models.
4. Describe the main features of the quantitative approach to management.

5. What is the need of using quantitative approach to managerial decisions?
6. What are the various models frequently used in operations research and the basis of their
classification?

7. Explain the areas of applications of quantitative approach in business and management.

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