Bachelor of Commerce in Supply Chain

Management

CREDITS NQF NOTIONAL

HOURS
15 7 150

QUANTITATIVE ANALYTICS

Copyright © 2025
All rights reserved. No part of this content may be reproduced in any form or by any means; including,
photocopying or electronically, without the written permission of the college.

Table of Contents

1 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
CHAPTER 1 ..................................................................................................................
1.1 Introduction.......................................................................................................10
1.2 Quantitative Analysis .......................................................................................11
1.3 Business Analytics........................................................................................... 13
Case Study.............................................................................................................15
Activity 1................................................................................................................. 17
1.4 Importance of Quantitative Analysis.................................................................18
1.5 Quantitative analysis’s limitations and drawbacks .......................................... 20
Activity 2................................................................................................................. 22
1.6 Conclusion........................................................................................................23
Test Your Knowledge............................................................................................. 24
Additional information.............................................................................................25
References............................................................................................................. 25

STUDY GUIDE OUTLINE

2 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
 Purpose of this Module

This module aims to help students understand quantitative analytics and its role in business
decision-making. Concepts such as decision analysis, regression models, inventory control
models, and linear programming will be elaborated on. Additionally, students will learn
methods of forecasting and problem-solving using these techniques.

How to use this Study Guide?

At the start of each chapter/learning unit, you will find a set of outcomes. These outcomes
are covered in each unit and at the end of that chapter/unit. There is a Test Your Knowledge
to test your understanding of the theory in that chapter/unit. You must complete this and the
Self-Assessment at the end of the module. If you score well in these, you will be in readiness
for the formative and summative assessments that will contribute to your final mark for this
subject.

Assessments

 40% Formative Assessment (1 Assignments and 2 Tests)

 60% Summative Assessment (1 Written Examination)

Prescribed and Recommended Books

It is recommended that alongside this module, you use one of the Prescribed Books listed
below. We have also included a list of recommended readings that will enhance your
learning and complement this study material.

1. Quantitative Analysis for Management. 13th edition, Render, B., Stair, R.M., Hanna, M.E and Hale T.S.
(2018)
2. Quantitative Business Analysis. 2nd edition, Davis, R. (2014).
3. Handbook of Management Accounting Research. Chapman, C. S., Shields, M. D. and Hopwood, A.
G. (2006)
4. Applied Business Statistics: Methods and Excel-based Applications. 5th edition. Wegner, T. (2020)

Study Guide Icons

3 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
In this guide, you will find various icons or symbols used to easily identify key information in
the content. Refer to the Study Guide Keys and their explanation at the start of the guide to
help you navigate the guide to make your learning simple and convenient.

eTools and Case Studies

In this study guide, you have access to various eTools, including links to videos, blogs, and
online academic articles that will enrich your learning and enhance your understanding of the
theory in this module. Case studies are included to provide real-life scenarios of the theory
you have learned.

A - Z Glossary

The glossary at the end of the module provides an A-Z Guide on the key terms in the
module. This is a useful tool for studying and memorising for tests and exams.

WELCOME TO QUANTITATIVE ANALYTICS

4 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
Today's decision-making environment is being influenced more and more by the expanding
volume of data and the need for accuracy, effectiveness, and insight. The nexus of
mathematics, statistics, and technology is where quantitative analytics resides, providing
strong instruments to glean valuable data and guide strategic choices. This quantitative
analytics curriculum aims to close the gap between theory and practice by giving students
the tools they need to evaluate data, create prediction models, and address practical issues
in a variety of industries. Applications of quantitative analytics are numerous and
revolutionary, ranging from marketing and operations to healthcare and finance.

This module's content is thoughtfully arranged to lead students on a journey that starts with
fundamental ideas and advances to more complex analytical methods. Students will be able
to convert theoretical knowledge into practical insights with real-world datasets, case
studies, and computational exercises. A thorough foundation in quantitative analytics is
provided by this curriculum. Additionally, this curriculum has a strong emphasis on ethical
issues, critical thinking, and effective communication. As important as technical expertise in
the era of data-driven decision-making is the capacity to appropriately analyse results and
communicate insights to a variety of stakeholders.

All the chapters in this module are important for the successful completion of this course as
they interlink. Ideally, you have the chronology of the chapter to fully understand the
fundamental aspects of quantitative analytics before further exploration of the contents. The
introductory section will give you a general idea of what to expect and introduce you to the
terminology used in quantitative analytics.

It is important you work through each unit and then test your knowledge at the end by
completing the assessment. This is an excellent gauge of your understanding of the module
and will help you ace your tests and exams. There are eTools from videos and case studies
to make your learning interactive and practical.

The Berea College staff are at your service, from our lecturers to success advisors. Engage
them in contact classes or online. Get to know your success advisor by name and tap into
this important resource to get the most from this module. The Moodle platform is also
available from home or on campus and includes lesson plans, activities, this workbook,
assessments, and contact details of all faculty staff for you to connect with to accompany
you on this journey.

All the best.

The Bachelor of Commerce in Human Resource Management.

5 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
STUDY GUIDE KEYS

LEARNING OUTCOMES
Learning outcomes tell you exactly what you
need to concentrate on and be competent in
after you have studied the module.

DEFINITIONS
Definitions are important information you
need to understand and memorise.

ACTIVITY
Activities allow you to apply the theory you
have learned with practical and relatable
exercises.

LINK/S TO VIDEOS
YouTube videos on the internet complement
and enrich your learning. They include
interactive and engaging content and visuals.

LINKS TO BLOGS/ARTICLES
Online blogs and articles are included to
broaden and enrich your knowledge.

CASE STUDY
Case studies are stories of actual situations,
events, and people, used as a teaching tool
to make theories come to life.

PRESCRIBED AND RECOMMENDED

READING
Prescribed readings are books that are
essential to studying this module.
Recommended readings are readings
recommended over and above your
prescribed books.
ADDITIONAL RESOURCES
This includes additional books or online
reference material that will enrich your
knowledge. They are not compulsory.

GLOSSARY/KEY TERMS
The glossary located at the end of a
Chapter/Unit includes a summary of the key
terms covered in that unit. It is in alphabetical
order.

6 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
 TEST YOUR KNOWLEDGE
This includes a set of questions at the end of
a Chapter/Unit to test your understanding of
the outcomes covered.

ANSWERS TO TEST YOUR KNOWLEDGE

This includes the answers or memos to the
questions asked in Test Your Knowledge.

SELF-CHECK REVISION QUESTIONS

The revision questions found at the end of the
module are important and cover questions to
test your understanding of all outcomes in the
entire module.

7 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
CHAPTER 1: Quantitative analytics' significance in organisational
decision-making.

8 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
Learning Outcomes

At the end of this Chapter, students will be able to:

 Explain the quantitative analysis methodology and know how to use it in a practical
setting.
 Explain the three business analytics categories.
 Acknowledge the role that quantitative analytics plays in organisational decision-making.

 Identify potential issues while applying quantitative analysis.

1.1 Introduction

9 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
Fig 1.1: Quantitative Analytics: https://www.beyondphdcoaching.com/quantitative-analysis/

In today's data-driven world, organisations are under increasing pressure to make accurate
and well-informed decisions that support their strategic goals. By using statistical,
mathematical, and computational techniques to transform raw data into actionable insights,
quantitative analytics plays a crucial role in this process. Quantitative analytics enables
decision-makers to identify patterns, forecast future events, optimise resources, and assess
risks, serving as the foundation for evidence-based strategies. In a rapidly evolving business
environment, this analytical approach not only enhances decision accuracy and efficiency
but also fosters innovation and competitive advantage. Evaluating its significance reveals
how businesses can use quantitative analytics to manage complexity, improve performance,
and achieve long-term growth.

1.2 Quantitative analysis

10 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
Fig 1.2: Quantitative analysis: https://uk.indeed.com/career-advice/career-
development/quantitative-analysis

IMPORTANT DEFINITION
Quantitative analysis is a technique that uses data and statistics to determine the quality of
an asset or investment (Render et al, 2018, p. 20).
Qualitative analysis is a study method used in organisations to examine an organization's
overall worth using non-quantifiable indicators, (Chapman et al, 2006, p. 323).

Quantitative analysis involves gathering and analysing quantifiable and verifiable data, such
as earnings, market share, and revenues, to understand how a firm behaves and performs
(Render et al., 2018, p. 20).

When making decisions in the past, directors and business owners primarily depended on
their intuition and expertise. However, due to advancements in data technology, quantitative
analysis is now regarded as a superior method for arriving at well-informed conclusions. To

11 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
make decisions about investments and financial plans, quantitative analysis mainly uses
numerical data and mathematical models. It emphasises objective, quantifiable information
that may be obtained about a business or financial asset.

Quantitative analysis entails analysing data and making decisions regarding investments,
corporate operations, or other complex systems using statistical and mathematical models.
As mentioned by Render et al. (2018, p. 34), employing data and objective analysis instead
of subjective judgement or intuition, quantitative analysis seeks to produce more rational and
well-informed decisions. Some tools and techniques used by quantitative analysts, or
"quants," to examine large volumes of data include statistical analysis, econometric
modelling, machine learning, and computer programming.

Quantitative analysis is the scientific method used in managerial decision-making (Render et

al., 2018, p. 34). This area of study is known by several names, such as operations
research, business analytics, management science, and quantitative analysis. The core of
quantitative analysis is the conversion and processing of raw data into information that holds
value. The use of quantitative analysis has expanded significantly due to the adoption of
computers and spreadsheets. When addressing an issue, managers need to take into
account both qualitative and quantitative aspects. The most comprehensive understanding
of a particular event is frequently obtained by combining quantitative and qualitative
methods.

Qualitative analysis, which emphasises comprehending phenomena through a more

subjective and descriptive lens, frequently contrasts with quantitative analysis. Quantitative
analysis aims to provide answers to the "how many" or "how much" questions, whereas
qualitative research investigates the "why" and "how" of decision processes. This distinction
is important because it aligns the type of analysis with the nature of the problem. Render et
al. (2018, p. 20) state that qualitative insights provide the figures with more depth and
meaning, while quantitative data serves as the objective foundation.

LINK TO VIDEO/S
12 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
Watch these videos to learn more about quantitative analysis:
https://youtu.be/lT2o-ruuWrs?t=21
https://youtu.be/QC5yjpJU2eY?t=47
https://www.youtube.com/shorts/rTDFIfmlDm8?feature=share
https://youtu.be/sJzP55bY5xM?t=49

1.3 Business analytics

Fig 1.3: Business analytics: https://fortune.com/education/articles/what-is-business-analytics/

IMPORTANT DEFINITION

13 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
Business analytics is an approach to decision-making that is data-driven and enables
businesses to make better choices, (Render et al, 2018, p. 20).

Descriptive analytics is the analysis and consolidation of historical data to explain the past
and present performance of a business, (Render et al, 2018, p. 20).

According to Render et al, (2018, p. 20), prediction analytics is the application of methods to
predict future events by analysing historical data patterns.

Prescriptive analytics is the application of optimisation techniques to offer fresh and

improved operational strategies based on particular corporate goals, (Render et al, 2018, p.
20).

Business analytics is a data-driven decision-making process that enables organisations to

make better choices. Render et al. (2018, p. 21) mention that business analytics research
uses big data, which consists of massive datasets. As a result, information technology
related to data management is highly vital. The data is analysed using statistical and
quantitative techniques to provide the decision-maker with relevant information.

Three types of business analytics are frequently distinguished: prescriptive, predictive, and
descriptive (Pinder, 2022, p. 3). In descriptive analytics, historical data about a company or
industry is analysed and compiled. It assists a business in assessing both its current and
historical performance. The goal of predictive analytics is to anticipate future events by
identifying patterns in historical data. For this, numerous mathematical and statistical models
are employed. Using optimisation techniques, prescriptive analytics offers new and improved
ways to function in alignment with specific company goals. Prescriptive analytics greatly
benefits from the optimisation models discussed in this module. Despite the fact that there
are only three categories of business analytics, data from two or three of these categories is
frequently used to guide business decisions.

Business analytics makes considerable use of many of the quantitative analytical methods
covered in this book's chapters. Techniques for quantitative analysis are crucial tools in
business analytics. The main goal of business analytics is to use available data to inform
better decisions (Render et al., 2018, p. 21).

14 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
 LINKS TO VIDEO/S
Watch these videos to learn more about business analytics:
https://youtu.be/9fFQA-JOXA0?t=38
https://youtu.be/diaZdX1s5L4?t=50
https://youtu.be/V5sw9PghVio?t=9

Case Study

Fig 1.4: Retail store: https://www.skyscrapercity.com/threads/pictures-of-south-african-retail-

and-chain-restaurants.435686/

South African retail businesses deal with issues such as shifting consumer buying patterns,
ineffective inventory control, and expensive operating expenses.

15 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
"SmartMart," a well-known retail company in South Africa, aimed to use quantitative analysis
to enhance its decision-making procedures, cut expenses, and boost profitability throughout
its 100 locations nationwide.

SmartMart had difficulties with:

 Stock shortages in certain places and excess inventories in others.

 High operating expenses as a result of ineffective procurement and logistics plans.
 Insufficient use of data-driven pricing methods, which lowers competitiveness.

So, in this case, the objective was to apply quantitative analytics to:

 Distribute inventory as efficiently as possible.

 Cut down on inefficiencies in operations.
 Create a dynamic pricing model to adapt to changes in the market.

Then the employed methods were:

Information Gathering

Over two years, SmartMart gathered transactional data, which included:

 Sales figures for each store.

 Rates of inventory turnover.
 Purchase patterns and customer demographics.
 Lead periods for suppliers and transportation expenses.

Descriptive Analytics

Important Findings:

 While rural businesses had excess inventory, urban retailers frequently ran out of
popular products due to high demand.
 There were clear seasonal sales patterns, with the holidays seeing the most demand.

Analytics for Prediction

 Demand Forecasting: To forecast future sales for every product category per store, a
time-series analysis model (ARIMA) was used. Result: Better inventory planning due
to accurate demand estimates.
 Segmenting customers: Customers were divided into groups according to their
purchase patterns using a clustering technique (k-means), which enabled customised
marketing tactics.

16 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
 Prescriptive Analytics

 Optimising Inventory: To calculate the ideal inventory levels for every store, a linear
programming model was created, taking lead times, storage expenses, and demand
projections into account. As a result, the cost of keeping inventory was lowered by
18%.
 Optimisation of Logistics: By rearranging delivery times, a vehicle route optimisation
model reduced transportation expenses. The outcome was a 12% reduction in
transport expenses.

Model of Dynamic Pricing

 To suggest dynamic price changes, a machine learning system examined market

demand, rival pricing, and customer price sensitivity. Result: Better price
competitiveness led to a 7% increase in revenue.

Results/Outcomes

 Increased Profit margins: After a year of putting the suggestions into practice, overall
profit margins rose by 15%.
 Increased Client Contentment: Improved inventory control improved the shopping
experience for customers by reducing stockouts by 25%.
 Efficiency in Operations: Lower costs and quicker replenishment periods were the
results of logistics optimisation.
 Scalability: As the business grew, the models created were adaptable to new retail
locations and scalable.

The application of quantitative analytics by SmartMart revolutionised its business processes.

The business addressed inefficiencies, improved supply chain efficiency, and increased
profitability by utilising descriptive, predictive, and prescriptive analytics. This case
demonstrates how companies in South Africa may use data-driven decision-making to stay
competitive in a changing retail landscape. Adapted from:
https://www.coursehero.com/file/240642457/Supply-Chain-Optimization-at-SmartMart-
Retai1docx/

17 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
 Activity 1

1.1 What Is Quantitative Analysis?

1.2 What are some of the challenges that Smartmart faced?
1.3 In this company what were the goals of using quantitative analytics.
1.4 Did the use of quantitative analytics help/assist this business operation?
1.5 Distinguish between quantitative and qualitative analysis.

1.4 Importance of quantitative analysis within the organisational

decision-making process

Fig 1.5: Importance of quantitative analysis:

https://www.seattleu.edu/business/online/albers/blog/quantitative-analysis-in-business

18 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
 IMPORTANT DEFINITION
The decision-making process is a methodical set of procedures that people or organisations
use to find and assess possibilities, select the best course of action, and carry out the
decision to handle an issue or opportunity, (Kumar and Verma, 2024, p. 45).

Quantitative analytics has emerged as a key component of successful decision-making in

organisations due to the growing amount of data available and the demand for evidence-
based strategies. Through the use of statistical, mathematical, and computational methods,
quantitative analytics helps businesses make data-driven, objective decisions that support
their strategic objectives. Render et al, (2018, p. 22), explain the significance of quantitative
analysis using the quantitative analysis approach which consists of seven steps. The
following are some of the main reasons why quantitative analysis is important:
 Data-driven Insights: Quantitative research techniques enable researchers and
analysts to uncover patterns, trends, relationships, and anomalies that may not be
apparent through qualitative methods. This can be accomplished by examining the
first phase of the quantitative approach, which is to formulate a clear and concise
problem statement (defining the problem).
 Objective Decision-Making: Quantitative analysis relies on data and
mathematical/statistical methods, which assist in minimising subjectivity and bias in
decision-making. This objectivity is especially valuable when dealing with complex
issues that require evidence-based conclusions.
 Comparing and Benchmarking - Quantitative analysis compares variables, scenarios,
or strategies in a methodical and quantifiable manner to help determine which option
is the most effective or efficient.
 Risk Assessment and Management - Risk assessment and quantification in a variety
of contexts, from financial markets to engineering projects, helps determine the
potential impact of various risk factors and make well-informed decisions to mitigate
them.
 Predictive Modelling - Predictive models are created using a variety of quantitative
techniques, including regression analysis and time series analysis, which forecast
future outcomes and enable businesses and organisations to plan ahead and take
proactive measures.

19 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
  Allocation of Resources - Budgets, labour, and time can all be allocated more
efficiently with the help of quantitative analysis. By knowing how variables relate,
organisations can use their resources more effectively.
 Assessment of Performance - In domains such as business and finance, it is
essential to assess the performance of investments, projects, or products. It offers a
methodical approach to evaluating if objectives and aims are being fulfilled.
 Research Evidence - In scientific research, quantitative analysis offers empirical data
that either confirms or disproves theories. Through objective data analysis, it aids in
the establishment of correlation and causation linkages.
 Assurance and Quality Control - In manufacturing and production operations, quality
is frequently monitored and managed through the use of quantitative approaches.
Consistent product quality is ensured and deviations from expected norms are
detected with the aid of statistical process control.
 Formulation of Policies - By offering data-driven insights into the possible effects of
various policy options, quantitative models help to influence policy decisions. In fields
like public health, economics, and the social sciences, this is crucial.
 Consumer Behaviour and Market Research - Quantitative analysis aids in the
understanding of consumer trends, preferences, and behaviour in marketing. It helps
companies effectively target audiences with their marketing strategy and product
offerings.
 Verification and Validation - Quantitative analysis is used in computer science and
engineering to validate and verify software systems, simulations, and designs. This
guarantees that systems and products adhere to established standards and
requirements.

Watch these videos to learn more about the importance of

quantitative analysis:
https://youtu.be/abFcMT6FPtM?t=6
https://youtu.be/Blxo1YwOQK0?t=13
https://youtu.be/CqWXxC1Xcj4?t=19

20 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
1.5 Quantitative Analysis's Limitations and Drawbacks

Fig 1.6: quantitative analysis drawbacks: https://slideplayer.com/slide/13170797/

Despite its strength, quantitative analysis has several drawbacks. Render et al, (2018, p.
30), demonstrate that the quantitative analysis methodology is a rational, methodical way to
address decision-making issues. However, even when these procedures are meticulously
followed, several issues could come up that could make it more difficult to put solutions to
real-world issues into practice. Some of the problems faced are given below:
 Data Dependency: The availability and quality of numerical data are critical
components in quantitative analysis. The study and the conclusions that follow will be
flawed if the data is erroneous, out-of-date, or incomplete. 'Garbage-in, garbage-out'
is the saying.
 Complexity: The techniques and models employed in quantitative analysis can be
quite intricate, necessitating a great degree of skill to create, decipher, and
implement. It may also be challenging to explain results to someone without a
quantitative background due to its intricacy.

21 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
  Absence of Subjectivity: Qualitative elements that might have a big impact on a
company's performance or the value of a financial instrument, such as managerial
calibre, brand reputation, and other subjective considerations, are frequently ignored
by quantitative research. Put otherwise, you might have the "what" but not the "why"
or "how." Qualitative analysis can help fill this gap.
 Predicated on assumptions modelling: A lot of quantitative models are based on
hypotheses that might not hold true in practical settings. For instance, presumptions
regarding continual volatility or a normal distribution of returns might not accurately
represent the state of the market.
 Over-reliance on prior Data: In order to forecast the future, quantitative analysis
frequently makes extensive use of prior data. However, historical performance is not
always a reliable predictor of future outcomes, particularly in markets that are
changing quickly or in unanticipated circumstances like economic crises.
 Incapacity to Record Human Emotion and Behaviour: Human emotions and
behaviours, which can be unpredictable and unpredictable, frequently impact
markets. Because it is based on numbers, quantitative analysis finds it difficult to
appropriately take these human elements into account.
 Cost and Time-Intensive: It might take a lot of money and effort to create precise and
trustworthy quantitative models. It calls for highly qualified workers, advanced
software, and frequently a large amount of processing power.
 Overfitting: When a model is overly adapted to historical data, it may perform
exceptionally well on historical data but be unable to reliably forecast future events.
 Lack of Flexibility: Quantitative models might not be able to swiftly adjust to new data
or shifting market conditions, which could result in analysis that is out of date or
inaccurate.
 Model Risk: There is an inherent risk that the model will have faults or weaknesses
that could result in inaccurate analysis and even large financial losses.
 In order to properly evaluate the results of quantitative analysis and balance them
with qualitative insights for more comprehensive decision-making, analysts and
decision-makers must be aware of these limitations.

LINK TO VIDEO
Watch this video to learn more about quantitative analysis problems

22 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
https://youtu.be/2Qxrc0g1BfY?t=15

Activity 2

2.1 The goal of descriptive analytics is to predict future results by identifying trends in
historical data.
2.2 To apply the quantitative analysis technique for precise decision-making, managers do
not need to be aware of its limits, underlying assumptions, or particular applicability.
2.3 What is a decision-making process?
2.4 To make decisions about investments and financial plans, quantitative analysis mainly
uses ----.
2.5 Why is quantitative analysis important in the decision-making process of an
organisation?

23 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
1.6 Conclusion
Ultimately, quantitative analytics is a vital instrument for improving the quality and accuracy
of organisational decision-making. Organisations may confidently address difficulties by
using data to uncover insights, forecast outcomes, and optimise plans. Businesses can stay
flexible, competitive, and creative in ever-changing markets thanks to their capacity to
convert raw data into actionable intelligence. Furthermore, incorporating quantitative
analytics into decision-making promotes transparency, reduces uncertainty, and aids long-
term growth. The importance of quantitative analytics in influencing strategic and operational
decisions will only increase as more businesses adopt data-driven methodologies,
reaffirming its position as a vital component of contemporary corporate success.

24 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
 Test your Knowledge
Question 1
Business analytics is a data-driven decision-making process that enables organisations to
make better choices.

Question 2
Quantitative analysis is used in computer science and engineering to validate and verify
software systems, simulations, and designs.

Question 3
In an organisation when addressing an issue, managers need to take into account both
qualitative and quantitative aspects.

Question 4
Which of the following methods makes use of mathematical and statistical models for
forecasting?
A) Descriptive analytics
B) Prescriptive analytics
C) Predictive analytics
D) Quantitative analysis

Question 5
Which of the following terms is interchangeable with regard to quantitative analysis?
A) Statistics
B) Economics
C) Financial analysis
D) Management science

25 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
Question 6
The situation where inaccurate data produces deceptive outcomes is known as
A) Garbage in, garbage out.
B) Break-even point.
C) Uncontrollable variable.
D) Post optimality.

Question 7
What are some of the tools and techniques used by quantitative analysts, or "quants," to
examine vast volumes of data?

Question 8
What is Quantitative analysis utilised for?

Question 9
Which three different classifications exist for business analytics?

Question 10
Although quantitative analysis offers many advantages, it also has certain disadvantages.
What are these disadvantages?

26 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1
 Additional Resources & Further Reading

https://youtu.be/9IIgH0hNtgk?t=65

https://youtu.be/sJzP55bY5xM?t=18

https://youtu.be/en1ryI23r_4?t=198

https://youtu.be/RE_ORuFDOZE?t=186

https://youtu.be/ve91E5Q3RKc?t=55

https://youtu.be/QUZRxqGVvX8?t=22

References

1. Render, B., Stair, R. M., Hanna, M.E and Hale T.S. 2018 Quantitative Analysis for
Management: Pearson.
2. Chapman, C. S., Shields, M. D. and Hopwood, A. G. (2006) Handbook of Management
Accounting Research: Elsevier Science
3. Kumar, S and Verma, V. (2024) Management Concepts and Organisational Behaviour:
Thakur Publication Private Limited.
4. Pinder, J.P (2022) Introduction to Business Analytics Using Simulation: Academic Press

27 |Q u a n t i t a t i v e A n a l y t i c s Chapter 1