Page 8 - DMGT209_QUANTITATIVE_TECHNIQUES_II

Unit 1: Quantitative Techniques for Managers

2. The quantitative approach does not totally eliminate the scope of …………….ability of the Notes
decision-maker.

Task Explain with the help of example some of the important Quantitative Techniques
used in modern business and in industrial unit.

1.2 Meaning of Quantitative Techniques

Quantitative techniques refer to the group of statistical, and operations research
(or programming) techniques as shown in the following chart.

The quantitative approach in decision-making requires that, problems be defined, analysed and
solved in a conscious, rational, systematic and scientific manner based on data, facts, information,
and logic and not on mere whims and guesses. In other words, quantitative techniques (tools or
methods) provide the decision-maker a scientific method based on quantitative data in identifying
a course of action among the given list of courses of action to achieve the optimal value of the
predetermined objective or goal. One common characteristic of all types of quantitative
techniques is that numbers, symbols or mathematical formulae (or expressions) are used to
represent the models of reality.

1.3 Statistics and Operations Research

The word statistics can be uses, in a number of ways. Commonly it is described in two senses
namely:
1. Plural Sense (Statistical Data): The plural sense of statistics means some sort of statistical
data. When it means statistical data, it refers to numerical description of quantitative
aspects of things; These descriptions may take the form of counts or measurements.

Example: Statistics of students of a college include count of the number of students, and
separate counts of number of various kinds as such, male and females, married and unmarried,
or undergraduates and post-graduates. They may also include such measurements as their heights
and weights.

2. Singular Sense (Statistical Methods): The large volume of numerical information (or
data) gives rise to the need for systematic methods which can be used to collect, organise
or classify, present, analyse and interpret the information effectively for the purpose of
making wise decisions. Statistical 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 phenomena. The above mentioned five functions of statistical methods
are also called phases of a statistical investigation.

Methods used in analysing the presented data are numerous and contain simple to
sophisticated mathematical techniques.

LOVELY PROFESSIONAL UNIVERSITY 3