What are the Key Quantitative Methods Used in Business?
1. Descriptive Statistics: This involves summarizing and describing the features of a dataset. It includes measures such as mean, median, mode, standard deviation, and variance. 2. Regression Analysis: A statistical method used to understand the relationship between variables. It helps in predicting the impact of one variable on another. 3. Linear Programming: A method to achieve the best outcome in a mathematical model whose requirements are represented by linear relationships. It's widely used for resource allocation. 4. Time Series Analysis: This technique analyzes time-ordered data points to forecast future trends. It's particularly useful in financial analysis and demand forecasting. 5. Simulation: Using models to replicate the operation of a system or process. It's often used in risk assessment and strategic planning. 6. Hypothesis Testing: A method to test assumptions regarding a dataset. It helps in making inferences and validating business strategies.