CHAPTER 1 INTRODUCTION: The techniques discussed in this section are classical statistical methods as opposed to EDA techniques.

EDA and classical techniques are not mutually exclusive and can be used in a complementary fashion. For example, the analysis can start with some simple graphical techniques such as the 4-plot followed by the classical confirmatory methods discussed herein to provide more rigorous statements about the conclusions. If the classical methods yield different conclusions than the graphical analysis, then some effort should be invested to explain why. Often this is an indication that some of the assumptions of the classical techniques are violated categories: 1. Interval estimation 2. Hypothesis tests 1. Interval Estimates It is common in statistics to estimate a parameter from a sample of data. The value of the parameter using all of the possible data, not just the sample data, is called the population parameter or true value of the parameter. An estimate of the true parameter value is made using the sample data. This is called a point estimate or a sample estimate. For example, the most commonly used measure of location is the mean. The population, or true, mean is the sum of all the members of the given population divided by the number of members in the population. As it is typically impractical to measure every member of the population, a random sample is drawn from the population. The sample mean is calculated by summing the values in the sample and dividing by the number of values in the sample. This sample mean is then used as the point estimate of the population mean. Interval estimates expand on point estimates by incorporating the uncertainty of the point estimate. In the example for the mean above, different samples from the same population will generate different values for the sample mean. An interval estimate quantifies this uncertainty in the sample estimate by computing lower and upper values of an interval which will, with a given level of confidence (i.e., probability), contain the population parameter.

2. Hypothesis Tests Hypothesis tests also address the uncertainty of the sample estimate. However, instead of providing an interval, a hypothesis test attempts to refute a specific claim about a population parameter based on the sample data. For example, the hypothesis might be one of the following: the population mean is equal to 10 the population standard deviation is equal to 5 the means from two populations are equal the standard deviations from 5 populations are equal To reject a hypothesis is to conclude that it is false. However, to accept a hypothesis does not mean that it is true, only that we do not have evidence to believe otherwise. Thus hypothesis tests are usually stated in terms of both a condition that is doubted (null hypothesis) and a condition that is believed (alternative hypothesis). A common format for a hypothesis test is: H0: A statement of the null hypothesis, e.g., two population means are equal. Ha: A statement of the alternative hypothesis, e.g., two population means are not equal. Test Statistic: The test statistic is based on the specific hypothesis test. Significance Level: The significance level, , defines the sensitivity of the test. A value of = 0.05 means that we inadvertently reject the null hypothesis 5% of the time when it is in fact true. This is also called the type I error. The choice of is somewhat arbitrary, although in practice values of 0.1, 0.05, and 0.01 are commonly used. The probability of rejecting the null hypothesis when it is in fact false is called the power of the test and is denoted by 1 - . Its complement, the probability of accepting the null hypothesis when the alternative hypothesis is, in fact, true (type II error), is called and can only be computed for a specific alternative hypothesis. Critical Region: The critical region encompasses those values of the test statistic that lead to a rejection of the null hypothesis. Based on the distribution of the test

statistic and the significance level, a cut-off value for the test statistic is computed. Values either above or below or both (depending on the direction of the test) this cut-off define the critical region. Quantitative analysis is now extended & several aliases of business operation & responsibilities probably the most effective approach to handling of some types of decision problems. A significant benefit of attaining some degree of proficiency with quantitative methods is exhibited in the way problems are formulated. A problem has to well defined before it can be formulated in a well structure framework for solution. The 2 different divisions of quantitative techniques are:1) Business statistics 2) 2) Operative Researches

BUSINESS STATISTICS Statistical data & statistical method are of immense helping the proper understanding of the economic problem & in the formulations of economic policies as well as evaluating of their effect for example in order to check the overgrowing population, if emphasis has been placed on family planning methods one can ascertain statistically the efficiency of such methods in attaining the desired goals.

OPERATION RESEARCH It is the application of scientific methods, technique & tools to problems involving the operation of system. So as to provide these in control of operation & optimum solution to the problem. The modus of operandi of each are:-

1. Formulate the problem 2. Analyze the data & collection of data 3. Analyze the data a. central tendency i) mean ii) median iii) mode b. Dispersion i) Standard deviation ii) Mean deviation iii) Skew ness

CORRELATION, REGRESSION ANALYSIS ETC. Testing Hypothesis be it data & accurate to what extent Interpret the result

SCOPE OF QUANTATIVE TECHNJQUES:

In ancient times the scope of statistics was limited but now a days the scope of statistics is so vast and ever expanding that it is difficult to define it. Statistics is a tool of all sciences indispensable to research and intelligent judgment and has become a recognized discipline in its own right. The scope of statistics stretches over all those branches of human knowledge in which a grasp of the significance of large numbers is looked for. The scope of statistics iswide,the limiting factor being its accountability to studies of quantitative character alone. However, the scope of statistics may be discussed under three main headings. 1. Division of statistics 2. Importance of statistics 3.Application of statistics in various disciplines

OBJECTIVES OF QUANTITATIVE TECHNIQUES: 1. It simplifies complexity. 2. Statistics presents facts in a definite and precise form. 3. Statistics provides comparison. 4. Statistics studies the relationship between different facts. 5. Statistics helps in formulation of policies and measures their effects. 6. It formulates and tests hypothesis.

CHAPTER-2

USES OF PICTORIAL DIAGRAMS We can use various diagrams, charts and graphs to interpret the available data. The different types of diagrams used are:

CIRCLE GRAPH

A circle graph is a graph in the form of a circle that is divided in sectors, with each sector representing of a set of data. Here is the circle graph showing the total expenditure on education including the tuitions fees, transportation, books, board and room.

POLYGON GRAPH To represent discrete series by polygons, the values of the variable and the corresponding frequencies are plotted as points with the help of rectangular co-ordinates.

The graph below shows the minimum hourly wages of the federal employees.

A graph that uses points connected by lines to show how something changes in value (as time goes by, or as something else happens).

Visual presentation of data using icons, pictures, symbols, etc., in place of or in addition to common graph elements(bars, lines, points). Pictographs use relative sizes or repetitions of the same icon, picture, or symbol to show comparison. Also called pictogram, pictorial chart, pictorial graph, or picture graph.

It consists of a set of continuous rectangles one over each class interval having their areas proportional to the class frequencies. The class interval is taken on the x axis and the class frequencies on the y axis.

OBJECTIVES OF THE STUDIES

The objectives of the study is to find out:

1. Uses of quantitative techniques in day to day business activities.

2. To analyses a business situation using tools of quantitative techniques. 3. To study the definitive terms of quantitative techniques.

Graph showing the total monthly expenses of a family on different things like food, rent, education, recreation, miscellaneous and savings.

 BAR GRAPHS

The bar graph is a graphical representation of discrete frequency distribution. In its construction the different values of the variables are taken as points on the x axis and at each of these points a perpendicular line is drawn to represent the corresponding frequencies.

A graph consisting of parallel, usually vertical bars or rectangles with lengths proportional to the frequency with

which specified quantities occur in a set of data. Also called bar chart.

CONCLUSION:

We can conclude from the above data that the quantitative techniques can be used to collect, analyze and interpreting numerical facts and taking decisions on the basis of the quantitative data.

Statistics is a science and an art which deals with collection, classification, tabulation, presentation, establishment of relationship, interpretation of data in connection with social, economics, natural and other problems so that the predetermined aims can be achieved

CHAPTER-3

USES OF PICTORIAL DIAGRAMS TO ANALYZE REAL LIFE BUSINESS SITUATIONS

A survey by Morgan Stanley shows that India is likely to receive $80 billion of foreign direct investment (FDI) over the next 12-24 months. India has received FDI of $48 billion over the past two years. This evidence lends conviction to the company's forecast of $70 billion of FDI over the coming two years. The survey says that global companies see a big opportunity in India's growing market, though they consider infrastructure to be a bottleneck. India still doesn't appear to rank highly as a FDI destination. At the sector level, metals and mining, technology and auto are likely to gain market share in the total FDI inflows. Telecom has been the biggest recipient of FDI over time.

CONTENTS

OBJECTIVES OF THE STUDY

CHAPTER-1 : INTRODUCTION

CHAPTER-2: USES OF PICTORIAL DIAGRAM

CHAPTER-3: USES OF PICTORIAL DIAGRAMS TO ANALYSES A BUSINESS SITUATION CONCLUSION

The following data shows the power generation by major energy sources the thermal, hydro, nuclear and Bhutan import.

It also gives information regarding the sector wise generation share and the fuel wise generation share in the country.

POWER GENERATION BY MAJOR ENERGY SOURCES NUCLEAR HYDRO THERMAL BHUTAN IMPORT 4 25 70 1.3

SECTOR WISE GENERATION SHARE

CENTRAL PRIVATE STATE

42 42 16

PROJECT WORK ON QUANTITATIVE TECHNIQUES

FOR THE REQUIREMENT OF THE AWARD OF PGDM

SUBMITTED TO: RUPALI MAM

SUBMITTED BY: ASEEM SINGH CHAUHAN PGDM SEM 1 ASIAN BUSINESS SCHOOL