DE LEON, Kamylle Anne T.

3FM5

“Many decisions in business and finance requires quantitative estimates of how a change in
one variable affects another variable.” – Stock and Watson

In every decision one makes, there is always a foregone opportunity. A missed

chance that could have been the result of success, or the other way around. In the field of
business, whether it may be a star-up or a large corporation, decisions should always be
based on factual and accurate data. One wrong choice a business can make has the
possibility of immediately generating negative outcomes. Hence, from the statement of
Stock and Watson, it can be related to the analysis and requirement of quantitative data in
order to see the effect of making a decision and seeing how it influences its related
variables. Behind every success, there is always a strategy that comes along with it. A
strategy in foreseeing potential, growth, opportunities, and more. It is not based on
hunches or instincts; it is derived from the usage of data and variables for the actual need
of support and foundation.

For instance, taking into account the COVID-19 pandemic and how it drastically
affected many businesses, and the overall economy; how were companies prepared for
such? How will they bounce back after decreased sales? Lack of consumer spending, and
more? The key to such is creating a realistic strategy, and not relying on false hope. There is
no shortcut in success, which is why focusing in supported fundamentals is an important
part. Statistics that provide growth rates, consumer spending, and more in an economy,
financial planning and decision making; all of these are integral for a business’ success. All
of these are used in seeing how one specific thing can affect the other.

Overall, a decision cannot always be made without the support of data, especially in
the field of business and more so, finance. In this type of industry, one must always be
technical and mindful of their decisions, seeing as everything can always have an effect on
something.