QUANTITATIVE

TECHNIQUES

Suman Kumar Deb

B.Sc. Math (Hons), M.Sc. Stats, PGDM & Six Sigma Black Belt
■ What is QT?
■ Application of QT?
■ Introduction to Statistics
– Descriptive Statistics
– Inferential Statistics

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 What is QT

Its is a study of Math and Statistics to

take decision in uncertainty

Reducing chances of failure….

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How Statistics help Business

Business Statistical
Problem Problem

Business Statistical
Solution Solution

5
Why study statistics?
1. Data are everywhere
2. Statistical techniques are used to make many decisions that
affect our lives
3. No matter what your career, you will make professional decisions
that involve data. An understanding of statistical methods will
help you make these decisions efectively
 Applications of statistical
concepts in the business world
■ Finance – correlation and regression, index numbers, time series
analysis
■ Marketing – hypothesis testing, chi-square tests, nonparametric
statistics
■ Personel – hypothesis testing, chi-square tests, nonparametric
tests
■ Operating management – hypothesis testing, estimation, analysis
of variance, time series analysis
Statistics

■ The science of collectiong, organizing, presenting, analyzing,

and interpreting data to assist in making more effective
decisions
■ Statistical analysis – used to manipulate summarize, and
investigate data, so that useful decision-making information
results.
Types of statistics

■ Descriptive statistics – Methods of organizing, summarizing,

and presenting data in an informative way
■ Inferential statistics – The methods used to determine
something about a population on the basis of a sample
– Population –The entire set of individuals or objects of
interest or the measurements obtained from all
individuals or objects of interest
– Sample – A portion, or part, of the population of interest
 Inferential Statistics
■ Estimation
– e.g., Estimate the population
mean weight using the sample
mean weight
■ Hypothesis testing
– e.g., Test the claim that the
population mean weight is 70
kg

Inference is the process of drawing conclusions or making decisions about a

population based on sample results
 Population Vs Sample

■ The entire set of items is called the Population.

■ The small number of items taken from the population to make a
judgment of the population is called a Sample.
■ The numbers of samples taken to make this judgment is called Sample
size.

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 Common Measures of Statistics

■ Measure of Location or Central Tendency

– Mean, Median and Mode
■ Measure of Spread or Dispersion
– Range (R)
– Variance (s2)
– Standard Deviation (s)
– Co-efficient of Variation (CV)
– Percentile, Quartiles, Interquartile Range
■ Measures of Shape
– Skewness
– Kurtosis

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 Measures of Location

Mean: Average of a set of values

Median: Midpoint in a string of data,

Mode: The most frequently occurring value

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 Mean

■ Most common measure to depict Measure of Central Tendency

■ Calculated as sum of all observations / count of all observations for the

granular data

■ For grouped data it is calculated as – sum of (fi*xi) / sum (fi)

■ Most appropriate when data is not skewed or have extreme values, as

with extreme values, Mean does not give appropariate inferences

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 Median

■ A useful Measure of Location

■ Splits Data into two equal halves
■ 50% of Data points are less than the Median and 50% are greater than
the Median
■ If no of observation is odd, it is the middle value in ascending or
descending data
■ If no of observations is even, it is the arithmetic average of two middle
values
■ It is robust and is not influenced by extreme values (Outliers), unlike
Mean

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 Mode

■ Easiest measure of location

■ It is the most frequently occurring value in the dataset

■ For granular data, it can be simply calculated using visual analysis

■ Not impacted by extreme values

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