QUANTITATIVE TECHNIQUES-I

Presentation

By

Prof. (Dr.) T. Muthukumar

M.Sc; MCA; MBA; PhD
Professor – XIME - Bangalore
QUANTITATIVE TECHNIQUES-I
 Introduction (1)
 Data and Data Type, Population and Sample (2)
 Data Represented by graphs and Table (3)
 Frequency Distribution (4)
 Measures of Central Tendency and Variation (5&6)
 Probability Basics (7,8,9)
 Probability Distribution (10)
 Discrete Probability Distributions (11 & 12)
 Continuous Probability Distributions (13 & 14)
 Testing Assumptions (15,16,17)
 Confidence Interval (18)
 Testing two Populations (19 & 20)
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QUANTITATIVE TECHNIQUES-I
 Testing Two Populations (19 & 20)
 Analysis of Variance (ANOVA) (21, 22 &
23)
 Understanding Relationship (24, 25 & 26)
 Forecasting (Basics & Time Series Analysis)
(27 & 28)
 Case Study (29 & 30)

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QUANTITATIVE TECHNIQUES-I
 Books for Reference
• Statistics for Management – R.I. LEVIN &
D.S. RUBIN - PHI
• Business Statistics – G.C. BERI - TMH
• Statistical Methods – S.P. GUPTA –Sultan
Chand & Sons

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QUANTITATIVE TECHNIQUES-I
 Introduction of Statistics
• Definition (Data, Information System, Decision
Making , Quantitative Technique)
• Decisions Making Process
• Definition of Statistics
• Major Characteristics of Statistics
• Nature of a Statistical Study
• Statistics in Business

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QUANTITATIVE TECHNIQUES-I
 Definition
• Data or Data Set: “A collection of observations
or measurements on one or more variable”
• Information System
• Decision Making System
• Decisions Making Process
* Defining the problem in a clear manner
* Collecting pertinent facts
* Analyzing the facts thoroughly
* Deriving and implementing the solution
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QUANTITATIVE TECHNIQUES-I
• Statistics : “Statistics is concerned with
Scientific method for collecting, organizing,
summarizing, presenting and analyzing data
as well as drawing valid conclusions and
making reasonable decisions on the basis of
such analysis”

• “A group of Methods that are used to

collect, analyze, present and interpret data
and to make decisions”
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QUANTITATIVE TECHNIQUES-I

Major Characteristics of Statistics

• Statistics are aggregate of facts
• Statistics are affected by a number of factors
• Statistics must be reasonably accurate
• Statistics must be collected in a systematic
manner
• Statistics should be placed in relation to
each other

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 QUANTITATIVE TECHNIQUES-I
 Nature of a Statistical Study (Process of Statistical Study)
• Formulation of the problem
• Objective of the study
• Determining Source of Data
• Designing Data Collection Forms
• Conducting the Field Survey
• Organizing the Data
• Analyzing the Data
• Reaching Statistical Findings
• Presentation of Findings

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QUANTITATIVE TECHNIQUES-I
 Business Example
• Statistical Quality Control Methods
• Personnel Management
• Seasonal Behavior
• Export Marketing
• Maintenance of Cost Records
• Management of Inventory
• Expenditure on Advertising and Sales
• Mutual Funds
• Relevance in Banking and Insurance Institutions
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QUANTITATIVE TECHNIQUES-I
 Types of Statistics
• Descriptive Statistics: “A collection of
Methods that enable us to organize, display
and describe data using such devices as
tables, graphs and Summary measures”
• Inferential Statistics: “A collection of
methods that enable us in making decisions
about a population based on sample
results”
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 QUANTITATIVE TECHNIQUES-I
 Grouping and Displaying Data
• Introduction
• Types of Data
• Arranging Data Using the Data Array
• Arranging Data Using the Frequency
Distribution
• Constructing Frequency Distribution
• Graphing Frequency Distribution
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 Grouping and Displaying Data
 Introduction
• Objective:

• Arrange raw data in an array, and then

classify data to construct a frequency table
and a cumulative frequency table

• Transform frequency table into relative

frequency and percentage distribution
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 Grouping and Displaying Data
 Types of Data
• Secondary Data : Any data that have been
gathered earlier for some other purpose are
secondary data in the hands of an individual who
is using them.

• Primary Data : The data that are collected first

hand by someone specifically for the purpose of
facilitating the study are known as primary data.

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Grouping and Displaying Data
• Qualitative Data : Data are expressed by a
non-numerical property such as satisfaction
of a customer, rich, poor and superior.

• Quantitative Data : This data are

numerically expressed. Ex. Weight, height,
income, expenditure, and price.

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Grouping and Displaying Data

 Arranging Data using Data Array

• Data Array : Arranging the data values in
ascending or descending order.
• Ex: Sample of Daily Production in Yards of
30 Carpet Looms :
16.2 15.4 16.0 16.6 15.9 15.8 16.0 16.8 16.9 16.8
15.7 16.4 15.2 15.8 15.9 16.1 15.6 15.9 15.6 16.0
16.4 15.8 15.7 16.2 15.6 15.9 16.3 16.3 16.0 16.3

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Grouping and Displaying Data

 Arranging Data using the Data Array

• Data array of Daily Production in Yards of
30 Carpet looms :
15.2 15.7 15.9 16.0 16.2 16.4
15.4 15.7 15.9 16.0 16.3 16.6
15.6 15.8 15.9 16.0 16.3 16.8
15.6 15.8 15.9 16.1 16.3 16.8
15.6 15.8 16.0 16.2 16.4 16.9
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Grouping and Displaying Data

 Advantage of Data array

• We can quickly notice the lowest and
highest values in the data
• We can easily divide the data into section
• We can see whether any values appear
more than once in the array
• We can observe the distance between
succeeding values in the data

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Grouping and Displaying Data

 Arranging Data Using the Frequency

Distribution (Table)
• Ex: Average inventory (in Days) for 20
convenience stores:
2.0 3.8 4.1 4.7 5.5 3.4 4.0 4.2 4.8 5.5
3.4 4.1 4.3 4.9 5.5 3.8 4.1 4.7 4.9 5.5

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 Grouping and Displaying Data
• Frequency Distribution (table) of Average inventory ( in days) for
20 Convenience Stores (6 classes)
Class (Group of Similar Values) Frequency (No. of Observation)
2.0 to 2.5 1
2.6 to 3.1 0
3.2 to 3.7 2
3.8 to 4.3 8
4.4 to 4.9 5
5.0 to 5.5 4
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 Grouping and Displaying Data
 Arranging Data using the Frequency Distribution
• Ex.2: A Class of 30 Management Students and
each student in the class is asked to toss a coin
five times and record each time whether he gets a
head. Result as follows:
3, 2, 0, 4, 1, 2, 3, 2, 5, 3, 3, 1, 1, 3, 5, 4, 2, 2, 3, 1, 0, 4,
3, 2, 2, 4, 2, 3, 3, 1
• Data Array : 0, 0, 1, 1, 1, 1, 1, 2, 2, 2, 2, 2, 2, 2, 2,
3, 3, 3, 3, 3, 3, 3, 3, 3, 4, 4, 4, 4, 5, 5

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 Grouping and Displaying Data
 Arranging Data Using Frequency Distribution
• Frequency Distribution (table)

Observation (x) Frequency (f)

0 2
1 5
2 8
3 9
4 4
5 2
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 Grouping and Displaying Data
 Arranging Data Using Relative Frequency Distribution
• Relative Frequency : The Concerned frequency is divided by the number
of observation or the total frequencies.
• Relative Frequency Table (Distribution)
Observation (x) Frequency (f) Relative Frequency (f/N)
0 2 0.07
1 5 0.17
2 8 0.27
3 9 0.30
4 4 0.12
5 2 0.07
Total 30 1.00
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 Grouping and Displaying Data
 Relative Frequency Distribution
• Relative Frequency distribution of Average Inventory (in Days) for 20
Convenience Stores :
Class Frequency (f) Relative Frequency (f/N)
2.0 to 2.5 1 0.05
2.6 to 3.1 0 0.00
3.2 to 3.7 2 0.10
3.8 to 4.3 8 0.40
4.4 to 4.9 5 0.25
5.0 to 5.5 4 0.20
Total 20 1.00
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