Quantitative Analysis in Management

The word Business Statistics is generally used in two senses:

Statistical Data; and

Statistical Methods.

1.

Statistical Data: refers to facts expressed in Quantitative Form, e.g., Statistics of Production, Consumption, Unemployment to National Income, Population, etc.

1.2 The area from which statistical data are collected is generally, referred to as the Population or Universe.

2.

Statistical Methods: refers to all such tools and techniques, which are used in : a. Collection;

b. Organization (Summarizing);
c. Presentation;

d. Analysis; and
e. Interpretation

..of Statistical Data

2.1 Collection : Constitutes the foundation of statistical analysis. The data are collected from published or unpublished sources or else may be collected by the investigator himself. 2.2 Organization:

The first step in organizing a group of data is editing and the next is to classify them according to some common characteristics and the last step in organization is tabulation i.e., to arrange the data in columns and rows.

2.3 Presentation: After the data have been collected and organized, they are presented in orderly manner to facilitate statistical analysis. The two different ways in which the collected data are presented are : Statistical Tables; and Diagrams/Graphs. 2.4 Analysis : Business data are analyzed using techniques such as : Measures of central tendency, Measures of variation, Correlation and Regression Analysis , etc.

2.5 Interpretation: It deals with drawing conclusions from the data collected and analyzed.

Since Statistical Methods help in taking decisions, statistics may rightly be regarded as
A body of methods for making wise decisions in the face of uncertainty or

Statistics is a method of decision-making in the face of uncertainty, on the basis of numerical data, and at calculated risks.

A.

Collection of Business Data: Secondary Data Primary Data Internal Records

B.

Types of Classification:
Geographical ..area-wise, (cities, districts, etc.)

Chronological..on the basis of time.

Qualitative (Categorical Data).according to some attributes. Quantitative. in terms of magnitudes.

C. Frequency Distribution: Is a tabular summary of a set of data that shows the frequency or number of data items that fall in each of several distinct classes. A frequency distribution is also known as a frequency table.

Some times, however, we require information on the number of observations whose numerical value is less than a given value this information is contained in the cumulative frequency distribution (cfd).

D.

Variable: A frequency distribution refers to data classified on the basis of some variable that can be measured such as prices, wages, age, number of units produced or consumed.

The term Variable refers to the characteristic that varies in amount or magnitude in a frequency distribution. A variable may be either continuous or discrete (also called discontinuous).
Parts of a Table: Table Number Title of the Table Caption Stub Body of the Table Head Note Foot Note

(a)

(b) 1. 2. (c) 1.

Types of Table: Simple and Complex Tables General Purpose and Special Purpose Tables Types of Diagrams: One-dimensional diagrams, e.g., bar diagrams: i. Simple bar diagrams ii. Sub-divided bar diagrams iii. Multiple bar diagrams iv. Percentage bar diagrams Two-dimensional diagrams: i. Rectangles ii. Squares iii. Circles Pictograms and Cartograms

2.

3.

(d) Types of Graphs: 1. Graphs of time series or Line graphs: i. Range graph ii. Band Graph

2.

Graphs of frequency distribution: i. ii. iii. iv. Histogram or Column diagram Frequency polygon Frequency Curves Cumulative Frequency Curves or OGIVE