Quantitative Techniques in Business

Quantitative Analysis Approach

(1) Defining the Problem, (2) Developing a Model, (3) Acquiring Input Data, (4) Developing a Solution, (5) Testing the Solution, (6) Analyzing the Results, and (7) Implementing the Results

Defining the problem

- The first step in the quantitative approach is to develop a clear, concise statement of the problem. - It is the most important and the most difficult step.

Decision variable

Controllable Variable also called _______________.

assist the military

During World War 2, many new scientific approach to management were developed to _________________.

Garbage in-Garbage out

Even if the model is a perfect representation of reality, improper data will result in misleading results. This situation is called _________________.

Frederick W. Taylor

He pioneered the scientific approach to management.

quantitative and qualitative factors

In solving a problem, managers must consider _____________.

Developing a Solution

It involves mani

Parameter

It is a measurable quantity that is inherent in the problem.

Variables

It is a measurable quantity that may vary or is subject to change.

Model

It is a representation (usually mathematical) of the situation

Mathematical Model

It is a set of mathematical relationships. In most cases, these relationships were expressed in equation and inequalities.

Data

It is manipulated or processed into information that is valuable to people making decisions.

Quantitative Analysis

It is the scientific approach to managerial decision making.

controllable or uncontrollable

Variables can be ________________.