PRACTICAL APPLICATIONS OF QUANTITATIVE ANALYSIS IN BUSINESS

A business or financial analysis technique that seeks to understand behavior by using complex mathematical and
statistical modeling, measurement and research. By assigning a numerical value to variables, quantitative analysts try to
replicate reality mathematically.

Quantitative analysis can be done for a number of reasons such as measurement, performance evaluation or valuation of a
financial instrument. It can also be used to predict real world events such as changes in a share price.

CORE ELIGHTNING :

Quantitative statistical analysis is any mathematical procedure individuals apply to specific data. There is no shortage of
application for this analysis process. Investors can use quantitative statistical analysis to assess stocks, and researchers
define hypotheses and businesses assess major decisions using this process. The two broad groups of quantitative analysis
process are interval estimates and hypothesis tests, which provide specific tools for use.

Interval estimates require parameters set in a specific data sample. This process starts with selecting a sample from a
larger population set as it is often impractical to measure an entire population. In quantitative statistical analysis,
population is a broad term that represents any large data group. From the selected sample, individuals and companies can
make inferences about the larger population set. Each sample must be large enough in order to make these inferences.

Once individuals have a sample, they need to discover which types of statistics apply to the data. For example, descriptive
statistics are among the most common for quantitative statistical analysis. These statistics include mode, mean, and
median along with standard deviation and variance, among other potential statistics. The application of confidence levels
also has inclusion here. Individuals and companies often look to achieve the highest confidence level possible in order to
make accurate inferences.

SECONDARY REVIEW APPLICAPLE BY MOST BUSINESSES :

The second broad group of quantitative statistical analysis hypothesis tests focuses more on research than practical
business application. Researchers often look at a topic or situation and define a number of hypotheses. The purpose of
applied statistical techniques is to either support or not support each hypothesis. In some research reports, interval
estimates or other quantitative methods may have inclusion.

Most research cases have a null hypothesis and an alternative hypothesis. In quantitative statistical analysis, the null
hypothesis tends to mean that things are the same as before or two items are equal. The alternative hypothesis indicates
some changes exist from the initial null hypothesis. The significance level defines how strong the support is or is not for
the analysis. A critical region represents values in which a researcher can reject the null hypothesis.

Quantitative statistical analysis is often a lengthy process. Companies tend to use shorter methods in order to provide
timely data for making decisions. In other words, not all the statistical tools available have a purpose in these studies.
Research reports often require multiple tools due to the length, depth, and breadth of the report. The type of report or need
for information dictates the tools necessary for the process.