Quantitative Techniques in

Business (QTB)
Quantitative Techniques are the techniques used to
gather, sort, analyze and interpret numerical data in
order to improve business decisions.

Numerical data
Numerical data (or quantitative data) is data measured or identified on a
numerical scale. Numerical data can be analysed using statistical methods, and
results can be displayed using tables, charts, histograms and graphs
Examples
Company sales (millions) 18, 12, 20, etc
Number of employees in company(hundreds) 15, 8, 5, etc
 Why Study QTB
Studying QTB is essential as it enables to
Gather, sort, analyze and interpret the data
Have needed, timely, accurate, yet relevant information.
Understand and compare different types of situations
Predict and forecast about the future needs of the
business
Develop effective policies and business related strategies
Make effective decisions to achieve business goals
efficiently
Research is based on QTB
Final thesis is based on QTB
 Research Problem
Any problem or opportunity that needs to be addressed through
research process of data collection and analysis is called
Research Problem
Examples

Human Resource manager wants to develop HR policies regarding

employees turnover in order to reduce it.
Marketing manager wants to launch a new product successfully
using advertisement as promotional tool
Finance manager needs to invest excessive money profitably
Problem Statement
A problem statement is a clear and concise description
of any business issue that seeks for Description,
Association or difference of two or more variables.

Example
Measure the annual turnover of employees in Higher educational
sector of Pakistan
Does advertisement contribute to the sales of a new product in the
market
Which of the two options i.e. stock market or real estate is better for
investment.
 What is Variable?
Vary + able = Change + able

Variable is a characteristic of anything that can vary

(Change).

Examples
Gender (Male, Female)
Age (20 years, 30 years, 50 years)
Motivation level (High, Medium, Low)

Constant is a characteristic that do not vary

e.g. If all students are male in a class then Gender will be constant
 Types of Variable
with respect to relation

Budget Advertisement Awareness Sales

Competitors product, price,

packaging, placement
 Types of Variable
with respect to data
Variable

Categorical Numerical

Nominal Ordinal Discrete Continuous

Gender Motivation
1. No of students 1. Height
1. Male 1. Highly Motivated
2. No of chairs 2. Weight
2. Female 2. Moderately
3. Collar size 3. speed
Motivated
3. Less Motivated
 Categorical Variable
A variable whose values are not numerical in nature
Variables Values
Gender Male, female
Religion Islam, christianity, Jews, etc
Motivation level High, medium, low

Types of Categorical variable

1. Nominal variable
A categorical variable whose values are not ordered
Example
Gender Male, Female
2. Ordinal variable
A categorical variable whose values are in ordered
Example
Education Metric, inter, graduation
 Numerical Variable
A variable whose values are numerical in nature
Variables Values
Collar size 14, 14.5, 15, 15.5.
Height 5.7, 5.8, 5.3
No of employees 23, 45, 69, 100

Types of Numerical variable

1. Discrete variable
A numerical variable whose values have same interval
Example
collar size 14.5, 15, 15.5..
2. continuous variable
A numerical variable whose values dont have same interval
Example
speed 40.1, 45, 67.
 Research Question
Research problem needs to be translated into one or
more research questions that are defined as
A research question is an interrogative statement that
seeks for the tentative relationship among variables
and clarifies what the researcher wants to answer.
Example
What is the impact of advertisement on sales of a new product in
the market
What is the annual turnover of employees in Higher educational
institutions of Pakistan
Does investing in stock market yield more return on investment as
compare to investment in real estate.
 Type of Research Question
Descriptive: A question that is answered through Summarising
data about a single variable
E.g.: What is the annual turnover of employees in Higher
educational institutions of Pakistan

Associational: A question that is answered through

determining strength and direction of
relationship between two or more variables
E.g.: What is the impact of advertisement on sales of a new product in
the market

Difference: A question that is answered through comparing

and contrasting two groups or variables
E.g.: Does investing in stock market yield more return on investment as
compare to investment in real estate.
 Research Hypotheses
Research hypotheses are predictive statements about
the relationship between two variables

Types of Hypothesis

There are two types of hypothesis

1. Null Hypothesis
Ho = There is no relationship between Advertising and Sales

2. Alternative Hypothesis
H1 = There is relationship between advertising and sales
 Research Question Vs. Hypothesis
Research question Hypothesis

o Interrogative statement Simple statement

oNon-Predictive Predictive

oNon-Directional Directional
Activity
In groups of four, use the variables provided to write:
An associational question
A difference question
A descriptive question
 Data
Set of raw facts figures is called Data
Example: Age- 16, 18, 20, 21, 23,
Nationality- Pakistani, Indian, American
Types of Data

Data

Nature Time frame

Qualitative Quantitative Cross-

Time-Series
sectional
Thank You!