Quantitative

Techniques
in
Management

Dr. Gayatri V Singh, PhD,

AMITY University,
INDIA
 Today’sHighlights
• Introduction
• Application in Business and
Management
• Classification of Data
• Graphical Presentation of Data
• Mean and Variance
• Correlation Analysis
• Regression Analysis
 WhatisStatistics?
 It is the science of collecting, organizing,
presenting, analyzing, and interpreting data
(quantitative or qualitative) for the purpose of
assisting in making a more effective decision.

WHO USES STATISTICS?

 Statistical techniques are used extensively by
marketing, accounting, quality control,
consumers, professional sports people,
hospital administrators, educators,
politicians, physicians, etc.
• For empirical inquiry
•
Applications
Financial Decisions
• How is the economy doing?
• The impact of technology at work
• Compensation survey
• Perfomance management
• Employee Satisfaction Survey
• Training feedback evaluation
• Human Resource Accounting
• HR Budgeting
Statistical Methods
Statistical Methods
Contd…
 Data Classification

Number of students Temperature, Gender Education

Time taken for exam Rank of a performance
 FrequencyDistribution

X Frequen Xf Class Frequen X

cy (f) Interval cy (f)
11 1 11
10 2 20 10-15 6 12.5
9 1 9 15-20 22 15.5
8 2 16 20-25 35 22.5
7 2 14 25-30 29 27.5
6 4 24 30-35 16 32.5
5 3 15 35-40 8 37.5
40-45 4 42.5
• X = score value ; Σ f = N and Σ X =Σ fX
• f = frequency
• fx = total value associated with frequency
Graphs
A histogram is a bar graph that shows the frequency of data within
equal intervals. There is no space between the bars in a histogram

Histogram
Whatisthemostcommonagegroupfor

musicians?
 Frequency Polygons
Shows same
information with
lines: traces ‘shape’
of distribution
Both histograms and
polygons represent
continuous data
 Box Plot
A graph that uses a number line to show the
distribution of a set of data.

Second quartile: The median of the set of a data.

Lower quartile: The median of the lower half of a
set of data.
Upper quartile: The median of the upper half of
the set of data.
Inter-quartile range: The difference between the
lower and upper quartiles.
 Box Plots

2, 3, 4, 4, 6, 7, 8, 10, 15, 20

least value = 2
greatest value = 20
lower quartile = 4
upper quartile = 10
middle quartile = 6.5
(median)

0 5 10 15 20
 BarGraphs

BarGraph -agraphthat usesvertical orhorizontal barstodisplaydata.

Most Widely Spoken Languages

900
800
700
600
500 Speakers in
400 Millions
300
200
100
0
English Hindi Mandarin Spanish
 FreshFruitConsumption

30
Avg. per person (lb.)

25

20

15

10

0
Apples Bananas Grapes Oranges

1.) Which fruit was eaten the least? Most?

2.) How many pounds of apples were eaten per person?
3.) How many more pounds of bananas were eaten than
oranges?
 Pie Chart

A pie chart (or a circle

graph) is circular chart
divided into sectors,
illustrating proportion. In a
pie chart, the arc length of
each sector (and
consequently its central
angle and area), is
proportional to the quantity
it represents.
 Central Tendency
Mean, Median, Mode are
measures of central
tendency. We can use them
to describe a set of data.
 Central Tendencies
Mean: (Average)
The sum of a set of numbers divided by
the total number of the set.

To find the mean of the data set:

2, 1, 8, 0, 2, 4, 3, 4
Median: (Middle Value)

The number in the middle of a set of numbers that

are arranged in order from least to greatest.

To find the median of the data set:

2, 1, 8, 0, 2, 4, 3, 4
Mode: (Most frequent value)

The number that occurs most often in a set of

numbers. There can be 1 mode, more than 1
mode, or no mode.

To find the mode of the data set:

2, 1, 8, 0, 2, 4, 3, 4
Range:

The difference between the greatest and least

values in a set.

To find the range of the data set:

2, 1, 8, 0, 2, 4, 3, 4

8–0=8
The range is 8.
 Central Tendencies

18, 21, 8, 12, 26

Find the mean, median, mode and range of these numbers.

8, 12, 18, 21, 26

Mean = 8 + 12 + 18 + 21 + 26 = 85 = 17
5 5

Median = 8, 12, 18, 21, 26

Mode = NO MODE Range = 26 - 8 = 18

 Central Tendencies

80, 60, 76, 60, 90, 80, 70, 60

Find the mean, median, mode and range of these numbers.

60, 60, 60, 70, 76, 80, 80, 90

Mean = 576 = 72
8

76 + 70 = 73
Median = 60, 60, 60, 70, 76, 80, 80, 90
2

Mode = 60 Range = 90 - 60 = 30
 Measurement of
Variability
• A certain amount of variability will
naturally occur when a control is
tested repeatedly.
• Variability is affected by operator
technique, environmental
conditions, and the performance
characteristics of the assay method.
• The goal is to differentiate between
variability due to chance from that
due to error.
Measures of Variability
• There are several terms that
describe the dispersion or variability
of the data around the mean:
• Range
• Variance
• Standard Deviation
• Coefficient of Variation
 Calculation of Variance
• Variance is the measure of variability
about the mean.
• It is calculated as the average
squared deviation from the mean.
– the sum of the deviations from the
mean, squared, divided by the number
of observations (corrected for degrees of
freedom)
 Correlation Analysis
• the degree to which two variables are
associated
• strength of the relationship (correlation)
between two variables
• may be either positive or negative.
• Its magnitude depends on the units of
measurement.
• Assumes the data are from a bivariate normal
population.
• Does not necessarily imply causation
Correlation Analysis
 Correlation
• The value of r can range between -1 and +
1.
• If r = 0, then there is no correlation
between the two variables.
• If r = 1 (or -1), then there is a perfect
positive (or negative) relationship between
the two variables.
 Scatter Plot

r=+1 r=-1 r=0

 Calculation

∑ xy − ( ∑ x )( ∑ y ) / n 6∑ d 2
rxy = ρ = 1−
σ xσ y n(n 2 − 1)

∑ − (∑ x) / n
2
σx = x 2
“d” is the difference between ranks
of two variables

∑y − (∑ y) / n
2
σy = 2
 Regression

Analysis
Regression analysis includes any techniques for modeling and analyzing several variables, when the focus is on

the relationship between a dependent variable and one or more independent variables.

More specifically, regression analysis helps us understand how the typical value of the dependent variable changes

when any one of the independent variables is varied, while the other independent variables are held fixed.

Most commonly, regression analysis estimates the conditional expectation of the dependent variable given the

independent variables — that is, the average value of the dependent variable when the independent variables are

held fixed.
 Regression Analysis
Purpose –
To determine the regression equation. It is used
to predict the value of one variable (Y,
called the dependent variable) based on
another variable (X, called the independent
variable).
Procedure:
•Select a sample from the population, and list the
paired data (X, Y) for each observation.
•Draw a scatter diagram to give a visual portrayal
of the relationship.
•Determine the regression equation Y = a + bX.
 RegressionAnalysis
•Y istheaveragepredictedvalueof Y forany X.

•a isthe Y-intercept, ortheestimated Y valuewhen X =0.

•b iscalledtheslopeoftheline. Itistheaveragechangein Y foreachchangeofone

unitin X.
σy σx
b yx = rxy bxy = rxy
•Theleastsquaresprincipleisusedtoobtainσ
x − −
σ
a and b andaregivenby: y
a = y − b yx x
 Example
• Develop a regression equation for the
information given in the EXAMPLE that
can be used to estimate the selling price
based on the number of pages.
• b = 0.01714, a = 16.00175.
• Y = 16.00175 + 0.01714X .
• What is the estimated selling price of a
650-page book?
• Y = 16.00175 + 0.01714(650) = $27.14.
Thank you
You may send in your queries at
gvsingh@amity.edu