Quantitative Analysis

Quantitative Analysis – Final Project

BU 407

Quantitative Analysis

        In the business management world, there are many different ways to make decisions. Some will choose to use their “gut” to determine what will be best, others may just guess, but the use of quantitative analysis gives the management a chance to use data to make an informed decisions. There are many different ways of analyzing data, including linear programming and PERT diagrams which help to organize data and see where the highest probabilities of success will occur. Choosing which types of quantitative analysis will be best depends on what the person is doing and what data is available for the management to use.

Quantitative analysis is a way to look at data and use it in a meaningful way that processes the information which is then used by those in management to make decisions (Hillier & Hillier, 2013; Investopedia.com, n.d.). When going through the process of quantitative analysis, first the problem needs to be defined. After the problem is defined and understood, then a model is developed to analyze the problem. The data related to the problem is collected and possible solutions are looked at and developed. The solutions that were developed are then tested to see how the solutions work for the problem and if they are efficient or not. After all the analyses are run and the results are evaluated then the solution with the highest rate of success is implemented. By using the quantitative analysis, it helps to develop skills to use when problem solving skills and to learn to interpret data relevant to the issue.

Business problems that can be solved with quantitative analysis are how to organize a project using PERT diagrams, projecting the needs for supplies and demands with linear programming, and using what-if analyses within linear programming to determine which way is the best to go. The PERT diagrams can be very useful within the business world to lay out what should happen and different paths to go down if there are slight changes. By using the PERT diagram, the steps are clearly laid out and can have the length of time each step will take which allows for looking at which path would be fastest and most efficient. Linear programming allows for analyzing the allocation of resources and how that will affect the needs of the business (Hillier & Hillier, 2013). This allows the management to see how different areas that need the same resources are able to share those resources or which areas are best to put all the resources in while using lower resource amounts in other areas. Related to that is the what-if model of linear analysis. In that situation, the “whats” are addressed prior to solving so that the “if” then includes those whats and how the solution may change with different ifs. This allows for management to adapt to different situations/scenarios and choose the one that will have the highest probability to succeed.