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BASIC MATHEMATICS FOR BUSINESS

OBJECTIVES : MATHEMATICS &

STATISTICS
Develop Mathematical skills needed for • To talk about problems that are formulated in mathematical terms • Not to make you expert Mathematicians but help you in the understanding and interpretation of the results given by experts. • Project Work : All areas of Management

• Have access to large amounts of information – Use available information to make better decisions • Mathematical models are used in decision making , so the practitioner must be able to think and write in mathematical terms • In management environment it will be necessary to translate detailed mathematical reasoning into something closer to everyday language – Able to translate to and from Mathematics

MEANING OF QUANTITATIVE TECHNQUES • Group of statistical and operations research techniques. • Requires preliminary knowledge of mathematics . • Quantitative approach in decision making requires that problems be defined , analyzed and solved in a conscious , rational, systematic and scientific manner based on data , facts ,information and logic , not on guesses

• Common characteristic of all types of quantitative techniques is that numbers , symbols or mathematical formulae are used to represent the models of reality. • Quantitative techniques have made valuable contribution towards arriving at an effective decision in various functional areas of management - Marketing , Finance , Production and Personnel.

ADVANTAGES OF QUANTITATIVE APPROACH TO MANAGEMENT

• • • • • •

Forecasting /Prediction Definiteness Condensation Comparison Formulation of Policies Formulating and Testing Hypothesis

QUANTITATIVE TECHNIQUES IN MARKETING MANAGEMENT
• Analysis of marketing research information • Statistical records for building and maintaining an extensive market • Sales forecasting

QT IN PRODUCTION
• • • • Production planning , control and analysis Evaluation of machine performance Quality control requirements Inventory control measures

QT IN FINANCE , ACCOUNTING AND INVESTMENT

• • • •

Financial forecast , budget preparation Financial investment decisions Auditing function Credit policies, credit risk

QT IN PERSONNEL MANAGEMENT • • • • Labor turnover rate Employment trends Performance appraisal Wage rates and incentives

QT IN ECONOMICS
• Measurement of GDP, GNP • Business Cycle determination , Long term growth , seasonal fluctuation • Market price comparison • Population Analysis , Land economics • Formulation of appropriate economic policies and evaluation of their effect

STATISTICS
• Field of statistics provides the methods for collecting , presenting and meaningfully interpreting the given data • Statistical Methods could be divided into: Descriptive Statistics Inductive Statistics Statistical Decision Theory

• Descriptive Statistics : Data Collection and Presentation • Inductive Statistics : Statistical Inference and Estimation • Statistical Decision Theory : Analysis of Business Decisions

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