Module 1-3

MANSCIE
MODULE 1: INTRODUCTION TO
QUANTITATIVE ANALYSIS
I. Pre-test / Activity:
On your One Note, write the difference of the
word Quantitative and Qualitative.
WHAT IS QUANTITATIVE ANALYSIS?

Quantitative analysis is the process of
collecting and evaluating measurable and
verifiable data such as revenues, market share,
and wages in order to understand the behavior
and performance of a business. In the past,
business owners and company directors relied
heavily on their experience and instinct when
making decisions. However, with the era of
data technology, quantitative analysis is now
considered a better approach to making
informed decisions.
A quantitative analyst’s main task is to

present a given hypothetical situation in terms
of numerical values. Quantitative analysis
helps in evaluating performance, assessing
financial instruments, and making predictions.
It encompasses three main techniques of
measuring data: regression analysis, linear
programming, and data mining.
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Approaches/Techniques
1. Regression Analysis
Regression analysis is a common
technique that is not only employed by
business owners but also by statisticians and
economists. It involves using statistical
equations to predict or estimate the impact of
one variable on another. For instance,
regression analysis can be used to determine
how interest rates affect consumers’ behavior
regarding asset investment. One other core
application of regression analysis is
establishing the effect of education and work
experience on employees’ annual earnings.
In the business sector, owners can use

regression analysis to determine the impact of
advertising expenses on business profits. By
using this approach, a business owner can
establish whether there’s a positive or
negative correlation between two variables.
2. Linear Programming
Most companies occasionally
encounter a shortage of resources such as
facility space, production machinery, and
labor. In such situations, company managers
must find ways to allocate resources
effectively. Linear programming is a
quantitative method that determines how to
achieve such an optimal solution. It is also
used to determine how a company can make
optimal profits and reduce its operating costs,
subject to a given set of constraints, such as
labor.
3. Data Mining
Data mining is a combination of
computer programming skills and statistical
methods. The popularity of data mining
continues to grow in parallel to the increase in
the quantity and size of available data sets.
Data mining techniques are used in evaluating
very large sets of data, with the aim of finding
patterns or correlations concealed within
them.
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APPLICATIONS OF QUANTITATIVE
ANALYSIS IN THE BUSINESS SECTOR
Business owners are often forced to
make decisions under conditions of
uncertainty. Luckily, quantitative techniques
enable them to make the best estimates and
thus minimize the risks associated with a
particular decision. Ideally, quantitative
models provide company owners with a better
understanding of information, to enable them
to make the best possible decisions.

Project Management
One area where quantitative analysis
is considered an indispensable tool is
in project management. As mentioned earlier,
quantitative methods are used to find the best
ways of allocating resources, especially if
these resources are scarce. Projects are then
scheduled based on the availability of certain
resources.

Production Planning
Quantitative analysis also helps individuals to
make informed product-planning decisions.
Let’s say a company is finding it challenging
to estimate the size and location of a new
production facility. Quantitative analysis can
be employed to assess different proposals for
costs, timing, and location. With effective
product planning and scheduling, companies
will be more able to meet their customers’
needs while also maximizing their profits.

Marketing
Every business needs a proper marketing
strategy. However, setting a budget for the
marketing department can be tricky,
especially if its objectives are not set. With
the right quantitative method, marketers can
find an easy way of setting the required
budget and allocating media purchases. The
decisions can be based on data obtained from
marketing campaigns.
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Finance
The accounting department of a business also
relies heavily on quantitative analysis.
Accounting personnel use different
quantitative data and methods such as
the discounted cash flow model to estimate
the value of an investment. Products can also
be evaluated, based on the costs of producing
them and the profits they generate.

Purchase and Inventory

One of the greatest challenges that businesses
face is being able to predict the demand for a
product or service. However, with
quantitative techniques, companies can be
guided on just how many materials they need
to purchase, the level of inventory to
maintain, and the costs they’re likely to incur
when shipping and storing finished goods.
IV. Activity
Essay: Students must pick a certain business
department then explain how Quantitative
analysis helps on its improvement.
V. Evaluation / Assessment
Essay/Reflection Paper
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MODULE 2: SYSTEMS OF LINEAR
EQUATIONS AND INEQUALITIES
On your One Note, explain the connection of
Linear Equations to Quantitative analysis.
LINEAR EQUATION
Business managers use linear equations in
order to find cost, profit, revenue, loss and
breakeven points in their businesses. The
breakeven points in linear equations is where
the equations intersect. cost is the amount you
pay for an item, profit is the amount of money
made after the breakeven point.
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Building a Linear Equation
What's the point? Why do I care about a linear
equation? Well, linear equations are the most
common patterns of numbers we see, and they
can be used to describe all sorts of situations
you see around you.
One example has to do with the first car you
bought. As soon as you turned 16, your
parents helped you buy a used car. When you
got your car it had 27,000 miles on it, and
you've owned it for a while now. Every year,
you drive it about 12,000 more miles. What
we end up with is a linear equation to
represent the situation that looks like y =
12,000x + 27,000, because you drive it 12,000
more miles every year, and that's how much
the pattern moves by. And the pattern began
at 27,000 miles when you first bought the car.
So, after year one, it had 39,000; after year
two, it had 51,000; and after year three, it had
63,000. And so on.
System of Linear Equation

A "system" of equations is a set or collection
of equations that you deal with all together at
once. Linear equations (ones that graph as
straight lines) are simpler than non-linear
equations, and the simplest linear system is
one with two equations and two variables.
Types of Linear Equation Systems
 An independent system has exactly
one solution pair.
 An inconsistent system has no
solution.
 A dependent system has infinitely
many solutions.
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System of Linear Inequalities
A system of linear inequalities in two
variables consists of at least two linear
inequalities in the same variables. The
solution of a linear inequality is the ordered
pair that is a solution to all inequalities in the
system and the graph of the linear inequality
is the graph of all solutions of the system.
IV. Activity
Submit a 1 pager containing a certain business
problem that can be solve with the help of
Linear equation.
Essay
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MODULE 3: LINEAR PROGRAMMING:
Search then write on One Note your initial
understanding about Linear Programing
History.
What is Linear Programming?

Now, what is linear programming? Linear
programming is a simple technique where
we depict complex relationships through
linear functions and then find the optimum
points. The important word in the previous
sentence is depicted. The real relationships
might be much more complex – but we can
simplify them to linear relationships.
Applications of linear programming are
everywhere around you. You use linear
programming at personal and professional
fronts. You are using linear programming
when you are driving from home to work and
want to take the shortest route. Or when you
have a project delivery you make strategies to
make your team work efficiently for on-time
delivery.
The process to formulate a Linear

Programming problem
Let us look at the steps of defining a Linear
Programming problem generically:
1. Identify the decision variables
2. Write the objective function
3. Mention the constraints
4. Explicitly state the non-negativity
restriction
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Furthermore, the simplex method is able to
evaluate whether no solution actually exists.
For a problem to be a linear programming
problem, the decision variables, objective
function and constraints all have to be linear
functions.
If all the three conditions are satisfied, it is
called a Linear Programming Problem.
What is the purpose of a graphical

method?
We use a graphical method of linear
programming for solving the problems by
finding out the maximum or lowermost point
of the intersection on a graph between the
objective function line and the feasible region.
Simplex Method
Simplex method is an approach to solving
linear programming models by hand using
slack variables, tableaus, and pivot variables
as a means to finding the optimal solution of
an optimization problem. Simplex tableau is
used to perform row operations on the linear
programming model as well as for checking
optimality.
The simplex method is used to eradicate the
issues in linear programming. It examines the
feasible set's adjacent vertices in sequence to
ensure that, at every new vertex, the objective
function increases or is unaffected. ...
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What is simplex method maximization?

To handle linear programming problems that
contain upwards of two variables,
mathematicians developed what is now
known as the. simplex method. It is an
efficient algorithm (set of mechanical steps)
that “toggles” through corner points until it
has located the one that maximizes the
objective function.
What is simplex method minimization?

It involves solving an associated problem
called the dual problem. To every
minimization problem there corresponds a
dual problem. The solution of the dual
problem is used to find the solution of the
original problem. ... We first solve the dual
problem by the simplex method.
IV. Activity
Write 1 sample each of profit maximization
and cost minimization of a certain company.
Essay

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MANSCIE

WHAT IS QUANTITATIVE ANALYSIS?

A quantitative analyst’s main task is to

In the business sector, owners can use

Purchase and Inventory

System of Linear Equation

Types of Linear Equation Systems

What is Linear Programming?

The process to formulate a Linear

What is the purpose of a graphical

What is simplex method maximization?

What is simplex method minimization?

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