Quantitative Analysis
Group Members Deron Wilson Malik Tucker Brandon Nelson Kemar McPherson Alexander Hudson
What Is a Quantitative Analysis ? This is a business analysis technique that seeks to understand behavior by using complex mathematical and statistical modeling, measurement and research. By assigning a numerical value to variables, quantitative analysts try to replicate reality mathematically (Investopedia, 2003). Quantitative analysis helps to make the best decisions for the company, it allows the company to make investments and decisions that yields great benefit for the business.
Steps in using Quantitative Analysis
Defining the Problem The first step one should take is to define the problem, one should develop a clear statement talking about the problem. It is always easy to identify that there is a problem but is very difficult to identify the underlying causes of the problem. Analysts will develop mathematical expressions that describe the objectives, constraints, and other relationships that exist in the problem. Analysts will use one or more quantitative methods to make a recommendation.
Developing The Model Individual/Individuals making the decision must utilize the model to represent real objects or situations Three forms of models are: Iconic models - physical replicas (scalar representations) of real objects Analog models - physical in form, but do not physically resemble the object being modeled Mathematical models - represent real world problems through a system of mathematical formulas and expressions based on key assumptions, estimates, or statistical analyses .
Acquiring Input Data After defining the problem and analyzing its nature, the next step is to obtain the relevant information/ data about it In developing a solution involves utilizing the model and input data to come up come with the best option to solve the problem There are several data collection instrument that the researcher can use to collect raw data such as; questionnaires, interviews, case studies, observation and surveys
Developing a Solution Developing a solution involves manipulating the model to arrive at the best optimal solution to the problem that I practical and can be implement, this requires that an equation to be solved. Only realistic alternatives should be considered. It is equally important to take into account time and cost constraints that limit the alternatives and also it must to communicated to those who are likely to be affected by it.
Testing The Solution Testing the solution is very critical to ensure that which ever solution is selected is the most suitable solution to the problem.
Analyzing The Results After the selection of the best decision, the next step is to convert the selected decision into an effective action. Without such action, the decision will remain merely a declaration of good intentions. Here, the manager has to convert 'his decision into 'their decision' through his leadership. For this, the subordinates should be taken in confidence and they should be convinced about the correctness of the decision. Thereafter, the manager has to take follow-up steps for the execution of decision taken.
Implementing the Results This is the final step whereby the results of the process will be incorporated into the organization. Feedback is an important feature in this final stage in the decision- making process. Feedback I necessary to decide whether the decision already taken should be continued or be modified in the light of changed conditions.
References Answers what is a quantitative analysis approach www.answers. Com/q/what_is_a_ quantitative_ analysis _ approach Investopedia,. (2003). Quantitative Analysis Definition | Investopedia. Retrieved 27 September 2015, from http://www.investopedia.com/terms/q/quantitativeanalysis.asp