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Applications of quantitative analysis in business
Quantitative analysis helps businesses make estimates before making decisions. It is particularly helpful in guiding business owners reduce risks when making decisions that can affect their operations. It can be used in:
- Production planning: Quantitative analysis helps business people make good and informed decisions in product planning. Through quantitative analysis, business owners can assess the costs, business location and even production timing.
- Project management: Quantitative analysis is highly used in project management. It helps businesses find the best ways of distributing resources, especially when resources are scarce.
- Purchase and Inventory: Predicting the demand for a product or service is a huge challenge for most businesses. However, through quantitative analysis, businesses can analyze what they need to buy at a particular time. The analysis includes all costs, such as transportation and storage costs.
- Finance: The finance department also rely on quantitative analysis to estimate the value of an investment. One popular model that uses quantitative analysis is the discounted cash flow model.
- Marketing: In marketing, quantitative analysis is used in setting marketing budgets and allocating purchases.
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Differences Between qualitative and Quantitative Methods
|Qualitative research methods||Quantitative research methods|
|Qualitative research focuses on expiring ideas and formulating a hypothesis.||Quantitative research focuses on testing theories and hypothesis.|
|It is majorly expressed in words||It is majorly expressed in tables, graphs and numbers.|
|Open-ended questions method is used||Carried out in closed questions format|
|In qualitative research methods, data collection is done through: Focus groupsInterviewsLiterature reviewEthnography||In quantitative research methods, data collection is done through: ExperimentsSurveysobservations|
|In qualitative analysis, there are no statistical tests||In quantitative analysis, statistical tests are used for analysis|
|Less time is used in planning and more time in analysis||More time is used in planning and less time in analysis|
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