Quantitative 

Methods
MM ZG515 / QM ZG515
Handout and Introduction
BITS Pilani
Work Integrated Learning
Programmes Division
Srinivas Kota
 BITS Pilani
Work Integrated Learning
Programmes Division

Handout
Course

• Title: Quantitative Methods

• Units: 4 units
• Combines business statistics and management science
that are essential for business managers.
• Objectives:
– Provide an understanding of various tools and techniques of
• Business Statistics
• Management Science
– Clarity on how to apply analytical techniques in different
business situations
– Use spreadsheets for data analysis problems

3 Quantitative Methods MMZG515 / QMZG515 BITS Pilani, WILPD

Learning Outcomes
• Able to understand data and use of basic statistics tools
• Able to understand basics of probability and probability
distributions
• Understanding basics of hypothesis testing
• Understand the basics of Decision Theory and Analysis
• Understanding Linear Programming, Transportation and
Assignment techniques of Management science and their
practical applications

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Content Structure
Statistics
Data Collection and Presenting data in Tables and Charts
Numerical Descriptive Measures
Probability
Discrete probability distributions
Continuous probability distributions and Normal distribution
Sampling and Sampling Distributions, Confidence Interval Estimation
Hypothesis Testing

Management Science
LPP: Formulation, Graphical, Simplex method
Transportation problem
Assignment problem
Decision Analysis
Regression Models

5 Quantitative Methods MMZG515 / QMZG515 BITS Pilani, WILPD

Text Books

6 Quantitative Methods MMZG515 / QMZG515 BITS Pilani, WILPD

Evaluation Scheme

Evaluation Name Type Weight Duration Day, Date, Session, Time

Component
Quiz-I Online 10% August 21-30, 2021
EC - 1 Quiz-II Online 10% September 21-30, 2021
Quiz-III Online 10% October 21-30, 2021
Mid-Semester Open 30% 2 hours Saturday, 25/09/2021 (AN)
EC - 2
Test Book 2 PM – 4 PM
Comprehensive Open 40% 2 hours Saturday, 13/11/2021 (AN)
EC - 3
Exam Book 2 PM – 4 PM

7 Quantitative Methods MMZG515 / QMZG515 BITS Pilani, WILPD

 BITS Pilani
Work Integrated Learning
Programmes Division

Introduction
Quantitative methods
• Quantitative analysis is the scientific approach to
managerial decision making

• Processing and manipulating of raw data into meaningful

information

Quantitative methods

Business Statistics Linear Programming

(7 modules) (5 modules)

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Topics for Today

• Collecting data and Types of data

• Tables and charts for Categorical data

• Organizing Numerical data

10 Quantitative Methods MMZG515 / QMZG515 BITS Pilani, WILPD

 BITS Pilani
Work Integrated Learning
Programmes Division

Collecting data and types of data

Data collection

Sources of data

• Primary
i. Direct personal observations ‐ variations occur
ii. Interviews ‐ prone to bias
iii. Questionnaires ‐ cover wide variety, should be good

• Secondary
• Collected earlier for some other purpose
i. External sources ‐ govt. & non govt. publications, 
international organizations, groups etc.
ii. Internal sources ‐ generated within the organization

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Types of Variables

13 Quantitative Methods MMZG515 / QMZG515 BITS Pilani, WILPD

 Data measurement scale

Ratios,
Differences Ratio Data Order Quantity

True zero
exists Quantitative
Adding &
Subtracting Interval Data Feedback 1 – 5
No true zero

Rankings, order
Ordinal Data Date of Joining

Qualitative

Categories (no Customer Name

ordering or Nominal Data
direction)

14 Quantitative Methods MMZG515 / QMZG515 BITS Pilani, WILPD

Exercise 1

The following information is collected from students upon

exiting the campus bookstore during the first week of
classes:
(a) Amount of time spent shopping in the bookstore
(b) Number of textbooks purchased
(c) Academic major
(d) Gender

Classify each of these variables as categorical or

numerical. If the variable id numerical, determine whether
the variable is discrete or continuous.

15 Quantitative Methods MMZG515 / QMZG515 BITS Pilani, WILPD

Exercise2

Classify each of the following as nominal, ordinal, interval,

or ratio data.

a. The time required to produce each tire on an assembly line

b. The number of quarts of milk a family drinks in a month
c. The ranking of four machines in your plant after they have been
designated as excellent, good, satisfactory, and poor
d. The telephone area code of clients in the United States
e. The age of each of your employees
f. The rupee sales at the local pizza shop each month
g. An employee’s identification number
h. The response time of an emergency unit

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