Dr. Harisingh Gour Vishwavidyalaya, Sagar (M.P.

Department Of Business Management

BBA (Hon’s) 5th Semester, II Mid Assignment On The

Subject - ‘Quantitative Techniques For Managers’
(BUM-CC-513)

Session – 2023-24

Submitted to – Submitted by –
Mr. Lokesh Uke Aniket Sahu
(Assistant Professor) (Y21180506)

1
 ACKNOWLEDGEMENT

I would like to express special thanks of gratitude to my University, to the Department of

Business Management as well as my teacher Mr. Lokesh Uke Sir who honoured me with
this opportunity to research and complete this assignment which made me familiar with
‘Quantitative Techniques For Managers’ and helped me to gain in-depth knowledge of this
topic.

Secondly, I would also like to thank my supporting friends who helped me, which added
to successfully completing this assignment.

Thanking you

Aniket Sahu
BBA 5th Semester

(Y21180506)

2
 PREFACE

This assignment has been prepared as a part of BBA. It is prepared with the view to include
all the details regarding the project that I carried out. The initial portion is the information
about concept of Quantitative techniques followed by Set Theory, Arithmetic progression
and Geometric progression. Then the next part consists of concept of Corelation and
Regression and at the last, file contatins meaning, application, uses, and importance of
Linear programming. I assure you to go through this assignment thoroughly to know a bit
more about Quantative Techniques For Managers.

Aniket Sahu
BBA 5th Semester

(Y21180506)

3
 CERTIFICATE

This is to certify that the assignment titled ‘Quantative Techniques For Managers’ is an
original work done by Aniket Sahu as a partial requirement of Bachelors of business
Administration, Dr. Harisingh Gour Vishwavidyalaya, Sagar , Madhya Pradesh. The project
has been prepared under my guidance and is a record of the mid II aasignment work carried
out successfully.

He has completed his assignment work under my supervision and guidance. I wish him a
bright future.

………………………………………
Mr. Lokesh Uke
Assistant Professor
Department of Business Management
Dr. Harisingh Gour Vishwavidyalaya
Sagar, Madhya Pradesh

4
 DECLARATION

I hereby declare that the assignment entitled “Quantative Techniques For Managers”
submitted by me to Dr. Harisingh Gour Vishwavidyalaya, Sagar in partial fulfilment of the
requirement for the award of the degree of BBA , 3 rd year 5th semester is a original work
done by me, under the guidance of Mr. Lokesh Uke sir. I further declare that the work
reported in this assignment has not been submitted and will not be submitted, either in part
or in full, for the award of any other degree or diploma in this institute or any other institute
or university.

Date: Aniket Sahu

Place : Sagar BBA 5th Semester
(Y21180506)

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 Table Of Content :
• Acknowledgement ……………………………………………….(2)
• Preface …………………………………………………………….(3)
• Certificate ………………………………………………………...(4)
• Declarartion ……………………………………………………….(5)

S. no. Content Page no.

1) Concept Of Quantitative techniques 7
2) Nature of Quantitative techniques 8
3) Role of Q.T. in trade and industry 9
4) Role of QT 10

5) Characteristics of Quantitative techniques in industry 11-12

6) Meaning of set theory 13
7) Set builder and Roster form 14
8) Features and Importance of set theory 14
9) Concept of Arithmetic progression with example 15
10) Concept of Geometric progression with example 16-17
11) Concept of Corelation 18
12) Uses and limitations of Corelation 20-21
13) Types of Corelation 24
14) Uses of Regression 21-22
15) Difference between corelation and regression 22-23
16) Meaning and definition of linear programming 24
17) Features of linear programming 24
18) Importance and uses of linear programming 25
19) Applications of linear programming 26
20) Bibliography 27

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 INTRODUCTION

Quantitative techniques refer to a set of methods and approaches that involve the use of
quantitative data and mathematical models for analysis, decision-making, and problem-
solving. These techniques rely on numerical information to derive insights, make
predictions, and optimize outcomes in various fields such as business, economics,
science, and engineering. The emphasis is on measurable and objective data, allowing for
a systematic and rigorous approach to addressing complex problems.

The primary goal of quantitative techniques is to provide a systematic and objective

framework for decision-making and problem-solving through the use of mathematical
models and numerical data.

Here are some key concepts associated with quantitative techniques:

Data Collection:

Rely on data which can be collected through various methods such as surveys,
experiments, and observations. Data collected should be relevant, accurate, and
representative of the phenomenon under study.

Measurement:

Involves the measurement of variables. Variables are characteristics or attributes that can
take different values.

Statistical Analysis: Descriptive statistics, such as mean, median, and standard

deviation, are used to summarize and describe the main features of a dataset. Inferential
statistics involve making predictions or inferences about a population based on a sample
of data.

Modeling: involve the development of mathematical models to represent relationships

between variables.

Decision Making: The ultimate goal of quantitative techniques is to support decision-

making.

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 THE NATURE OF QUANTITATIVE TECHNIQUES IN BUSINESS

The nature of Q.T. in business involves the following characteristics:

Data-Driven:

Quantitative techniques involve the use of data and statistical methods to analyze,
model, and solve business problems.

Objective:

Q.T. provides an objective and systematic way to analyze and interpret data, reducing
the possibility of subjective biases in decision making.

Quantifiable:

Q.T. involves the use of measurable and quantifiable data, making it possible to assess
the impact of different factors on business outcomes.

Predictive:

Q.T. allows businesses to make informed predictions and forecasts based on historical
data and mathematical models.

Technologically Driven:

With the rapid advancement of technology, businesses can now leverage advanced
software tools and computational power to conduct complex Q.T. analyses.

Overall, the nature of Q.T. in business focuses on providing a data-driven, objective,

and quantifiable approach to decision making that can help businesses optimize their
operations and achieve their goals.

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 Role of Quantitative Techniques
Quantitative Techniques (Q.T.) play a crucial role in trade and industry across various
aspects, contributing to informed decision-making, efficient operations, and strategic
planning.

Here are key roles Q.T. plays in trade and industry

1. The major roles of quantitative technique are as follows :
2. It provides a tool for scientific analysis.
3. It offers solutions for various business problems.
4. It enables proper deployment of resources.
5. It supports in minimizing waiting and servicing costs.
6. It helps the management to decide when to buy and what is the procedure of
buying.
7. It helps in reducing the total processing time necessary for performing a set of jobs.

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The main role of QT in business and management is explained below:

1.Tools for scientific analysis

Management wants to take decisions relating to business problems. decision making

is an important task. For this purpose they should understand the cause and effect
relationship and risk underlying in the business operations.
Solution to various business problems :

• Production planning
• Proper deployment of resources

2. Tools for decision making

With the help of QT the management can able to take decision in respect of various
business activities such as production , sales , purchase , finance , personnel
accounting , market and product research and quality control .

3. Quality maintenance
The technique of statistical quality control helps to maintain the quality of the product
continuously.

4. Deployment of human resources

QT are useful to find out optimum manpower planning , the number of employees to
be maintained in the permanent or full time roll and to study personnel recruiting
procedures , accident rates and labor turn over .

5.Marketing management
QT helps to determine where the warehouses are to be located, what should be the size
of the stock , what should be the optimum allocation of sales budget to direct selling
and sales promotion expenses . it is also helps to select the advertising media.

6. Financial management
QT helps to find out the long range capital requirements , ways of raising these funds
, to develop capital investment plans etc.

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 Characteristics of Quantitative Techniques

1) Decision-Making :
Decision-making or problem solving constitutes the major working of operations
research: Managerial decision-making is considered to be a general systematic process
of operations research (OR).

2) Scientific Approach :
Like any other research, operations research also emphasizes on the overall approach
and takes into account all the significant effects of the system. It understands and
evaluates them as a whole. It takes a scientific approach towards reasoning. It involves
the methods defining the problem, its formulation, testing and analyzing of the results
obtained.

3) Objective-Oriented Approach :
Operations Research not only takes the overall view of the problem, but also
endeavor's to arrive at the best possible (say optimal) solution to the problem in hand.
It takes an objective-oriented approach. To achieve this, it is necessary to have a
defined measure of effectiveness which is based on the goals of the organization. This
measure is then used to make a comparison between alternative solutions to the
problem and adopt the best one.

4) Inter-Disciplinary Approach :
No approach can be effective, if taken singly. OR is also inter-disciplinary in nature.
Problems are multi-dimensional and approach needs a team work. For example,
managerial problems are affected by economic, sociological, biological,
psychological, physical and engineering aspect. A team that plans to arrive at a
solution, to such a problem, needs people who are specialists in areas such as
mathematics, engineering, economics, statistics, management, etc.

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 Importance of quantitative analysis :

Quantitative analysis plays a crucial role in various fields because it provides objective,
numerical insights and supports informed decision-making. Here are some key reasons
why quantitative analysis is important:

Objective Decision-Making
Quantitative analysis relies on data and mathematical/statistical methods, which help
minimize subjectivity and bias in decision-making. This objectivity is particularly
valuable when dealing with complex issues that require evidence-based conclusions.

Comparison and Benchmarking

Quantitative analysis deals with the comparison of different variables, scenarios, or
strategies in a systematic and measurable way. This aids in identifying the most effective
or efficient approach among options.

Risk Assessment and Management

It assesses and quantifies risks in various contexts, from financial markets to engineering
projects. This helps understand the potential impact of different risk factors and make
informed decisions to mitigate them.

Resource Allocation
Quantitative analysis assists in optimizing the allocation of resources, whether it’s
allocating budgets, manpower, or time. Organizations can make efficient use of their
resources by understanding the relationships between variables.

Quality Control and Assurance

Quantitative methods are often used to monitor and control quality in manufacturing and
production processes. Statistical process control helps detect deviations from expected
norms and ensures consistent product quality.

Market Research and Consumer Behavior

In marketing, quantitative analysis helps understand consumer behavior, preferences, and
trends. It assists businesses in tailoring their products and marketing strategies to target
audiences effectively.

Predictive Modeling
Many quantitative techniques, such as regression analysis and time series analysis, are
used to build predictive models. These models help forecast future outcomes, allowing
businesses and organizations to plan ahead and make proactive decisions.

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 Set Theory :
Set theory is a branch of mathematical logic that studies sets, which are collections of
objects. The fundamental concept in set theory is the notion of a "set," which is a well-
defined collection of distinct objects, These objects are often called elements or
members of a set. For example, a group of players in a cricket team is a set.
Set is a well-defined collection of objects or people. Sets can be related to many real-
life examples, such as the number of rivers in India, number of colours in a rainbow,
etc.
Example: A={Red, Orange, Yellow} denotes a set with elements Red, Orange and
Yellow.

Types Of Sets

Different types of sets used in mathematics are

Empty Set
Non-Empty Set
Finite Set
Infinite Set
Singleton Set
Equivalent Set
Subset
Superset
Power Set
Universal Set

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 Roster Form

In roster form, all the elements of the set are listed, separated by commas and enclosed
between curly braces { }.

Example: If set represents all the leap years between the year 1995 and 2015, then it
would be described using Roster form as:

A ={1996,2000,2004,2008,2012}

Now, the elements inside the braces are written in ascending order. This could be
descending order or any random order. As discussed before, the order doesn’t matter
for a set represented in the Roster Form.

Also, multiplicity is ignored while representing the sets. E.g. If L represents a set that
contains all the letters in the word ADDRESS, the proper Roster form representation
would be

L ={A,D,R,E,S }= {S,E,D,A,R}

L≠ {A,D,D,R,E,S,S}

Set Builder Form

In set builder form, all the elements have a common property. This property is not
applicable to the objects that do not belong to the set.

Example: If set S has all the elements which are even prime numbers, it is

represented as: S={ x: x is an even prime number} where ‘x’ is a symbolic

representation that is used to describe the element.

‘:’ means ‘such that’

‘{}’ means ‘the set of all’

So, S = { x:x is an even prime number } is read as ‘the set of all x such that x is an
even prime number’. The roster form for this set S would be S = 2. This set contains
only one element. Such sets are called singleton/unit sets.
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 Another Example:

F = {p: p is a set of two-digit perfect square numbers}

How?

F = {16, 25, 36, 49, 64, 81}

We can see, in the above example, 16 is a square of 4, 25 is square of 5, 36 is square

of 6, 49 is square of 7, 64 is square of 8 and 81 is a square of 9}.

Even though, 4, 9, 121, etc., are also perfect squares, but they are not elements of the
set F, because the it is limited to only two-digit perfect square.

Arithmetic Progression (AP)

In AP, we will come across some main terms, which are denoted as:

First term (a)

Common difference
(d) nth Term (an)
Sum of the first n terms (Sn)
All three terms represent the property of Arithmetic Progression. We will learn more about
these three properties in the next section.

First Term of AP
The AP can also be written in terms of common differences, as follows;

a, a + d, a + 2d, a + 3d, a + 4d, ………. ,a + (n – 1)

d where “a” is the first term of the progression.

Common Difference in Arithmetic Progression

In this progression, for a given series, the terms used are the first term, the common
difference and nth term. Suppose, a1, a2, a3, ……………., an is an AP, then; the common
difference “ d ” can be obtained as;

d = a2 – a1 = a3 – a2 = ……. = an – an – 1
Where “d” is a common difference. It can be positive, negative or zero.

The formula for finding the n-th term of an AP is:

an = a + (n − 1) × d
Where

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a = First term d =
Common difference
n = number of terms
an = nth term

Example:
Find the nth term of AP: 1, 2, 3, 4, 5…., an, if the number of terms are 15.
Solution: Given, AP: 1, 2, 3, 4, 5…., an n=15
By the formula we know, an = a+(n-1)d
First-term, a =1
Common difference, d=2-1 =1
Therefore, an = a15 = 1+(15-1)1 = 1+14 = 15

GEOMETRIC PROGRESSION

A geometric progression or a geometric sequence is the sequence, in which each term is

varied by another by a common ratio. The next term of the sequence is produced when we
multiply a constant (which is non-zero) to the preceding term. It is represented by: a, ar,
ar2, ar3, ar4, and so on.

Where a is the first term and r is the common ratio.

Note: It is to be noted that when we divide any succeeding term from its preceding term,
then we get the value equal to the common ratio.

Suppose we divide the 3rd term by the 2nd term we get:

ar2/ar = r

ar3/ar2 = r

ar4/ar3 = r

General Form of Geometric Progression

The general form of Geometric

Progression is: a, ar, ar^2, ar^3, ar^4,…,
ar^n-1 Where,
a = First term r
= common

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ratio ar^n-1 =
nth term
Examples of Geometric Progression

If the first term is 10 and the common ratio of a GP is 3, then write the first five terms
of GP.

Solution: Given,

First term, a = 10

Common ratio, r = 3

We know the general form of GP for first five terms is given by:

a, ar, ar2, ar3, ar4 a = 10

ar = 10 × 3 = 30 ar2 =

10 × 32 = 10 × 9 = 90

ar3 = 10 × 33 = 270 ar4

= 10 × 34 = 810

Therefore, the first five terms of GP with 10 as the first term and 3 as the common
ratio are:

10, 30, 90, 270 and 810

Correlation

This section shows how to calculate and interpret correlation coefficients for ordinal and
interval level scales. Methods of correlation summarize the relationship between two
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 variables in a single number called the correlation coefficient. The correlation
coefficient is usually represented using the symbol r, and it ranges from -1 to +1.

A correlation coefficient quite close to 0, but either positive or negative, implies little or
no relationship between the two variables. A correlation coefficient close to plus 1
means a positive relationship between the two variables, with increases in one of the
variables being associated with increases in the other variable.

- A positive correlation (r > 0) means that as one variable increases, the other tends to
increase as well.

- A negative correlation (r < 0) indicates that as one variable increases, the other tends to
decrease.

- A correlation near zero (r ≈ 0) suggests a weak or no linear relationship.

Correlation does not imply causation; it only quantifies the strength and direction of a
linear relationship. It's sensitive to outliers, and a correlation of 0 does not guarantee
independence. The closer the correlation coefficient is to -1 or 1, the stronger the linear
relationship.

The Pearson correlation coefficient, often denoted by the symbol r, is a measure of the
linear relationship between two variables. It ranges from -1 to 1, where:

• r=1 indicates a perfect positive linear relationship,

• r=−1 indicates a perfect negative linear relationship,
• r=0 indicates no linear relationship.
The formula for Karl Pearson correlation coefficient is:

r = n ∑ xy - ∑ x ∑ y / {n ∑ x2 – (∑x)2 } 1/2 * {n ∑y2 – (∑y) 2 } ½

Spearman’s Rank Corelation Cofficient :

Spearman correlation assesses the strength and direction of the monotonic relationship
between two variables.

It does not assume a linear relationship; it measures how well the relationship can be
described using a monotonic function.

Spearman's rank correlation coefficient ranges from -1 to 1:

• ρ=1 indicates a perfect monotonic increasing relationship,

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• ρ=−1 indicates a perfect monotonic decreasing relationship,
• ρ=0 indicates no monotonic relationship.
• The formula for Spearman Rank Correlation Coefficient is:
ρ = 1 – 6 ∑ D2 / n(n2 -1 ) D = difference between the two rank of each observation,

n = number of observations

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 Uses of Correlation

Correlation is a statistical measure widely used in various fields for different purposes.
Here are some common uses of correlation:

Economics and Finance:

Analyzing the correlation between economic indicators, such as unemployment rates and
GDP growth.
Studying the relationship between various financial instruments, like stocks, bonds, and
commodities.

Biology and Medicine:

Investigating the correlation between certain behaviors or lifestyle factors and health
outcomes. Assessing the relationship between genetic factors and the prevalence of
certain diseases

Psychology:
Studying the correlation between different psychological variables, such as intelligence
and academic performance.
Analyzing the relationship between stress levels and mental health outcomes.

Education:
Assessing the correlation between study habits and academic achievement.
Investigating the relationship between teaching methods and student performance.

Marketing and Business:

Analyzing the correlation between advertising expenditures and sales.
Studying the relationship between customer satisfaction and repeat business.

Social Sciences:
Investigating the correlation between income levels and access to education.
Analyzing the relationship between demographic variables and voting patterns.

Environmental Science:
Studying the correlation between pollution levels and the prevalence of respiratory
diseases. Analyzing the relationship between climate variables and biodiversity.

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 Limitation Of Correlation :
1. We are only considering LINEAR relationships
2. r and least squares regression are NOT resistant to outliers
3. There may be variables other than x which are not studied, yet do influence
the response variable A strong correlation does NOT imply cause and effect
relationship Extrapolation is dangerous.

Regression-

Regression is a statistical method used in finance, investing, and other disciplines that
attempts to determine the strength and character of the relationship between one
dependent variable (usually denoted by Y) and a series of other variables (known as
independent variables).

Uses of Regression-

Market Research:
Analyzing the impact of marketing strategies on sales and predicting market trends.

Medical Research:
Studying the relationship between risk factors and health outcomes, predicting patient
outcomes, and identifying significant factors influencing medical conditions.

Social Sciences:
Understanding and modeling relationships between variables in areas like sociology,
psychology, and education

Human Resources:
Predicting employee performance based on factors such as training, experience, and job
satisfaction.

Supply Chain Management:

Optimizing inventory levels and predicting demand based on historica data and market
trends

Quality Control:
Assessing the impact of process parameters on product quality and predicting defect
rates.

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Environmental Science:
Studying the relationship between environmental factors (e.g., pollution levels,
temperature) and their impact on ecosystems.

Engineering:
Predicting the performance of materials, structures, or processes based on various
factors and conditions.

Education:
Analyzing the relationship between teaching methods, student engagement, and
academic performance.

Difference Between Correlation And Regression

Basis Correlation Regression

Correlation describes
Regression depicts
as a statistical
how an independent
measure that
variable serves to be
1. Definition determines the
numerically related
association or co-
to any dependent
relationship between
variable.
two or more variables.

Regression
Correlation
coefficient i.e slope
coefficients may
2. Range and intercepth may
range from -1.00 to
be any positive and
+1.00.
negative values.

Both variables serve

Both independent and to be different, One
3. Dependent and
dependent variable variable is
Independent
values have no independent, while
Variables
difference. the other is
dependent.

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Basis Correlation Regression

To estimate the
To find the numerical
values of random
value that defines and
4. Aim variables based on
shows the relationship
the values shown by
between variables.
fixed variables.

Its coefficient shows

Its coefficient serves
dependency on the
5. Nature for to be independent of
change of Scale but
Response any change of Scale or
is independent of its
shift in Origin.
shift in Origin.

Its coefficient is
Its coefficient fails
6. Nature mutual and
to be symmetrical.
symmetrical.

Its correlation serves Its coefficient is

7. Coefficient to be a relative generally an
measure. absolute figure.

In this, x is a random
variable and y is a
In this, both variables
fixed variable. At
8. Variables x and y are random
times, both variables
variables.
may be like random
variables.

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 Linear programming (LP)

Linear programming is a mathematical technique for optimization, where the goal is

to maximize or minimize a linear objective function, subject to a set of linear equality
and inequality constraints. It is widely used in various fields such as operations
research, management, finance, and engineering to find the best possible outcome in
a model with linear relationships.

Importance of Linear Programming

Resource allocation :
Linear programming is used in industries to allocate limited resources to maximize
production output while minimizing costs.

Production planning :
Linear programming can be applied to production planning to optimize resource
allocation.

Decision making :
Linear programming improves the quality of decisions by calculating the cost and profit
of different things.

Adaptability :
Linear programming can easily adapt to changes in circumstances.

Features of Linear Programming :

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 Here are the key features of linear programming:
1. Linear Objective Function:
The objective function in linear programming is a linear expression, typically either to
maximize or minimize some quantity. It is subject to linear constraints.
2. Decision Variables:
Linear programming involves decision variables, which represent the quantities to be
determined. These variables are often denoted by 1,2,…,x1,x2,…,xn.
3. Linear Constraints:
The relationships among decision variables are expressed through a set of linear
inequalities or equations, known as constraints. These constraints define the feasible
region, representing the allowable combinations of decision variables.
4. Additivity and Proportionality:
The objective function and constraints are additive and proportional. This means that the
contribution of each decision variable to the total is proportional to its value, and the overall
objective and constraints can be expressed as a sum of these contributions.
5. Non-negativity Constraints:
In linear programming, decision variables are often required to be non-negative (≥0x≥0).
This constraint ensures that the variables cannot take negative values.
6. Feasible Region:
The feasible region is the set of all possible combinations of values for the decision
variables that satisfy all the constraints. It is typically a convex polytope in n-dimensional
space.
7. Optimization:
The goal of linear programming is to optimize the objective function, either by
maximizing or minimizing it, subject to the linear constraints. The optimal solution
occurs at the vertex of the feasible region where the objective function is optimized.

25
 Application of linear programming

Marketing and Advertising:

Media planning to allocate advertising budget across various channels to maximize reach
or impact. Product mix optimization to maximize sales and revenue.

Manufacturing and Production Planning:

Determining the optimal mix of products to manufacture to meet demand while minimizing
production costs.
Workforce scheduling to meet production requirements efficiently.

Agriculture:
Crop planning to optimize the allocation of land, labor, and resources for maximum yield
and profit.

Telecommunications:
Resource allocation for optimal network design, considering factor such as bandwidth, cost,
and reliability.

Energy Sector:
Determining the optimal mix of energy sources to meet demand while minimizing costs
and environmental impact.

Healthcare Management:
Staff scheduling in hospitals to optimize utilization and minimize
costs. Resource allocation for medical equipment and facilities.

Environmental Management:
Optimal waste management planning to minimize disposal costs and environmental
impact. Conservation planning to allocate resources efficiently.

26
 Bibliography :

• https://plato.stanford.edu/entries/set-theory/
• https://www.geeksforgeeks.org/correlation-meaning-significance-
types-and-degree-of-correlation/
• https://www.geeksforgeeks.org/difference-between-correlation-and-
regression/
• https://byjus.com/commerce/types-of-correlation/
• https://byjus.com/maths/correlation/

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