INTRODUCTION TO

QUATITATIVE TECHNIQUES
DEFINITION
Quantitative Techniques are those statistical techniques/methods which help decision makers
solve many problems, especially those concerning business and industry.

These methods involve the use of numbers, symbols and mathematical expressions.

In other words, quantitative techniques are those methods that provide the decision makers with
systematic and powerful means of analysis, based on quantitative data, for achieving
predetermined goals.
 MEANING OF STATISTICS

 Latin words status

 Italian word “statista”

 German word “ statistik”.

 Statistics also signifies the method or methods of dealing with numerical

facts. In this sense, it is considered as a science of collecting,
summarizing, analyzing and interpreting numerical facts.
 IMPORTANCE IN BUSINESS
• Organize data
• Describe data
• Make your conclusions based upon your data
• Interpret results in scientific studies
• To become a good researcher or businessman
• Helps businessman to plan production according to the taste of the
costumers
• Business Statistics is used in many disciplines, such as financial analysis,
econometrics, auditing, production and operations, and marketing
research.
 DATA AND STATISTICS

• Data consists of information coming from observations, counts,

measurements, or responses.

• Statistics is the science of collecting, organizing, analyzing, and

interpreting data in order to make decisions.

• A population is the collection of all outcomes, responses, measurement,

or counts that are of interest.

• A sample is a subset of a population

 POPULATION AND SAMPLING

Example:

In a recent survey, 250 college students at degree College were asked if

they exercise regularly. 35 of the students said yes. Identify the population
and the sample.
 PARAMETERS & STATISTICS

• A parameter is a numerical description of a population characteristic.

• A statistic is a numerical description of a sample characteristic

PARAMETER POPULATION

STATISTIC SAMPLE
 PARAMETER AND STATISTICS
Example:
• A survey of a sample of 450 college students reported that the
average monthly income for students parents is 30000.
• Because the average of 30000 is based on a sample, this is a sample
statistic
• The average monthly income for all students parents is 35000.
• Because the average of 35000 is based on a population, this is a
population parameter.
 BRANCHES OF STATISTICS

The study of statistics has two major branches: descriptive statistics and
inferential statistics.
Statistics

Descriptive Statistics Inferential Statistics

 CONTINUED.....
Descriptive Statistics • Inferential statistics

• collection
• Using data collected from small
• Organizing
group to draw conclusion about a
• summarizing larger group

• presenting data
• Hypothesis testing
 TYPE OF DATA
• Using data collected from small group to draw conclusion about a larger
group
Data

Quantitative data Qualitative data

 QUANTITATIVE & QUALITATIVE DATA

• The grade point averages of five students are listed in the

table. Which data are qualitative data and which are
quantitative data
Student GPA
Sana 3.22
Sara 3.92
Rafay 3.25
Ali 3.84
Hina 2.78
 LEVEL OF MEASUREMENT

The level of measurement determines which statistical calculations are

meaningful. The four levels of measurement are: nominal, ordinal,
interval, and ratio.
Nominal

Level of Ordinal
Measurement
Interval

Ratio
 NOMINAL LEVEL OF MEASUREMENT

Data at the nominal level of measurement are qualitative only.

Calculated using names, labels, or

Nominal qualities. This is used for labeling
variables

Ex: Gender, Name of students, Text book you are

using in this semester
 ORDINAL LEVEL OF MEASUREMENT

• Data at the ordinal level of measurement are qualitative or quantitative

Arranged in order, but differences

between data entries are not
meaningful. like happiness
Ordinal

Ex: How you feel today?

1- Unhappy 2- Ok
3- Happy 4- Very happy
 INTERVAL LEVEL OF MEASUREMENT

Data at the interval level of measurement are quantitative. In this we not

only know about order but also the exact difference. (space in between)

Arranged in order, the differences

interval between data entries can be calculated

EX: Temperature
difference between 60 and 50
degrees is a measurable 10 degrees
 RATIO LEVEL OF MEASUREMENT

Data at the ratio level of measurement are similar to the interval level, but
a zero entry is meaningful. A ratio of two data values can be formed
so one data value can be expressed as
Ratio a ratio. It tell us the exact value between
units,

EX: Grade point averages

Age
 DESIGNING A STATISTICAL STUDY

GUIDELINES
1. Identify the variable(s) of interest (the focus) and the population of the study.
2. Develop a detailed plan for collecting data. If you use a sample, make sure
the sample is representative of the population.
3. Collect the data.
4. Describe the data.
5. Interpret the data and make decisions about the population using inferential
statistics.
6. Identify any possible errors.