QT1 - 01 - Introduction

Class notes used in Quantitative Techniques - I course at Praxis Business School, Calcutta

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Introduction
Q U A N T
T E C H I
N T
E U Q I A
S E V I T
1 0 S
S

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Management : Science or Art
●Management is an Art
–There is something
intangible that
distinguishes a good or
great manager from the
run of the mill people who
run an organisation
●Management is all about
Science
–Where you need to
estimate needs, allocated
resources and monitor
progress on a scientific
basis

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Administration, Management &
Leadership
●Administration
–Clear goals are set by an external agency and the individual
needs to plan, execute and monitor the progress against the
goals that have been set
●Management
–Goals are at a strategic level
–Individual has to figure out what needs to be done to meet the
strategic objectives and then plan, execute and monitor the
progress both against tactical and strategic goals
●Leadership
–Explores and evaluate strategic opportunities
–Take Risk

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The Management Architecture
Business Domain Knowledge
Operations Finance Marketing
Human
Resources
Business Strategy
Systems Engineering Quantitative Techniques

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Physical Models
●Saturn V Rocket to be
sent to the moon
–How much fuel should it
carry ?
–What should be the launch
velocity ?
●Model Rocket helps to
understand the
behaviour of the real
rocket but at lower cost
and risk

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Mathematical Models
●Mathematics of Ballistic
bodies
●Mathematics is made
simple through software

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Models in Business Management
●What is the optimum level of inventory
–Of raw materials ? Of finished goods ?
●How will profit margins change if
–Rupee appreciates ? Interest rates fall ?
●How many people will our advertisements in
–Bengali news channels ? IPL matches ?
●What should we offer to freshers as salary during
Campus recruitments ?
–10% more than last year ? On par with my biggest competitor

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Quantitative Techniques
●Statistics and Probability
–Gathering large volumes
of data
–Analysing and presenting
this data in a manner that
is convenient
–Use this data to draw
conclusions that aid and
assist a profitable
business
●Operations Research
–Taking decisions under
constrained
circumstances
–Using
●Least amount of raw
material
●Least number of
people
●Least amount of time
–To deliver highest value

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QT-I : Statistics & Probability
Testing of Hypotheses
Estimation
Sampling Distributions
Probability Distributions
Probability
Measures of Dispersion
Measures of Central Tendency
Grouping and Displaying Data

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The Big Idea
●Population
–Source of ALL the data that we are currently interested in at
the moment
●We wish to draw certain inferences from this data
●Sample
–A selection from the population whose data is actually
available to us
●We can draw certain inferences from this data
●Estimation
–Drawing inferences on population data based on our
inferences of sample data
●Testing of Hypothesis
–How confident are we of our estimation ?

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Software Solutions
in Statistics

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Why software ?
●Statistics is a branch of
applied mathematics
–It has a strong theoretical
foundation
●In practice you have to
process – do calculations with
– a large sets of numbers.
This has a
–Theoretical aspect
–Practical aspect
●With the advent of computers
the practical aspect has
become very different.

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SPSS
●SPSS was released in its
first version in 1968
●SPSS is among the most
widely used programs for
statistical analysis in
social science.
●SPSS is used by market
researchers, health
researchers, survey
companies, government,
education researchers,
marketing organizations
and others.

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OpenStat

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Spreadsheet

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Spreadsheet Again

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The free, smart alternative

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Kollaborative Klassroom
http://kk.praxis.ac.in

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Kollaborative Klassroom
http://kk.praxis.ac.in

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How to use KK
●Signup to the network
–Please use your full and
correct name
–Please insert your correct
roll number
●Customise your page
–Background
–Add your personal
pictures, videos ..
–Make it your own
●Use the network
–The Praxis Calendar at KK
is the official calender
–All course material will be
delivered through this
network
●Very little hard copy or
printouts
–Contribute ideas, thoughts
and discussion
●Usage of this network is
equivalent to Class
Participation

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Grading
●1 End Semester
Examination
●1 Mid Semester
Examination
●3 -4 Quiz
●Class Participation
●Exact weightage will be
announced later

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First Assignment !
●Create your profile in
Kollaborative Klassroom
●Find a video on the web
that
–Refers to Statistics or
Mathematics
–Can be either downloaded
or somehow placed on KK
●Rate each others video