Quantitative Techniques is related to setting of objectives, goals and mobilizing resources to meet these objectives and goals. It is making and acting on the decisions.
It is about identifying a need/problem and mobilizing resources to meet that need. Quantitative Techniques is the study of the use of mathematical (quantitative)Techniques in making and implementing managerial decisions. It helps in analyzing the problem quantitatively (mathematical expressions) and generating quantitative/mathematical solutions. For example producers may want to encourage the demand for a certain commodity. How would they analyze and generate solutions using Quantitative Technique.
Significance of Quantitative Techniques
- Use of symbols and equations that are more convenient to apply as opposed to words and sentences
- It is more concise and precise approach and therefore it lowers the degree of ambiguity and tediousness
- the approach is economical in time, space and energy as opposed to words and sentences
- It allows economic/business analysts to state explicitly all the assumptions as a prerequisite to the use of mathematical theorems as such helping them to avoid the adoption of unwanted theorems/rules/conditions.
- It allows us to treat the n-variable case i.e. where we have many variables or solving a system of equations with many unknowns. It helps us analyze complex situations which could not be easily analyzed in a simpler manner.
- The approach has found relevant application in dealing with economic or management issues through policy formulation e.g. estimating or predicting economic growth, profit levels, output and inflation rates.
Quantitative Techniques is a scientific method of applying mathematical tools in decision making
regarding the best utilization of resources. It is seeks to improve efficiency and productivity in operations
such as in the industrial sector and managerial activities.
Quantitative Techniques involves the
- Specification of the hypothesis/model i.e. presenting problem statements in research
- Estimation of the model/hypothesis
- Evaluation of the model/hypothesis
- Forecasting of the model/hypothesis
Conclusion to Quantitative Techniques
Quantitative Techniques enable us to reach our conclusions much faster than the theory