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Unit 1: Quantitative Techniques for Managers

1.7 Quantitative Techniques in Business and Management Notes

Some of the areas where statistics can be used are as follows:

Management

(i) Marketing:
(a) Analysis of marketing research information
(b) Statistical records for building and maintaining an extensive market
(c) Sales forecasting
(ii) Production:
(a) Production Planning, control and analysis

(b) Evaluation of machine performance
(c) Quality control requirements
(d) Inventory control measures
(iii) Finance, Accounting and Investment:
(a) Financial forecast, budget preparation
(b) Financial investment decisions
(c) Selection of securities
(d) Auditing function
(e) Credit policies, credit risk and delinquent accounts

(iv) Personnel:
(a) Labour turnover rate
(b) Employment trends
(c) Performance appraisal
(d) Wage rates and incentive plans

Economics

 Measurement of gross national product and input output analysis
 Determination of business cycle, long-term growth and seasonal fluctuations

 Comparison of market prices, cost and profits of individual firms
 Analysis of population, land economics and economic geography
 Operational studies of public utilities
 Formulation of appropriate economic policies and evaluation of their effect

Research and Development

 Development of new product lines

 Optimal use of resources
 Evaluation of existing products

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