1. Give 3 limitations of Quantitative techniques and why?

a) Inappropriate portrayal of the objective populace.

As referenced in the article, the inappropriate portrayal of the objective populace may
impede the specialist from accomplishing its ideal points and destinations. Regardless
of applying suitable examining plan portrayal of the subjects is reliant on the
likelihood dissemination of noticed information. This may prompt erroneous
conclusion of likelihood circulation and lead to misrepresentation in suggestion.
For instance, an investigation indicates to check the extent of female matured between
20-30 years is applying make-up scopes of global brands. The objective populace for
this situation is the ladies having a place with the said age gathering, with both expert
and non-proficient foundations, dwelling in Delhi. The tested populace dependent on
the likelihood conveyance must be determined against the complete females living in
the city (for example 400 examined out of 7,800,615 female populaces).
Notwithstanding, there is an extent of getting incomplete data about the scope of
cosmetics items from the examined, attributable to its small frame against the
complete populace. Thus, the consequences of the examination can't be summed up in
setting to a bigger populace, but instead, be recommended.

b) Inability to control the environment

Sometimes researchers face problems to control the environment where the
respondents provide answers to the questions in the survey (Baxter 2008). Responses
often depend on particular time which again is dependent on the conditions occurring
during that particular time frame. For example, if data for a study is collected on
residents' perception of development works conducted by the municipality, the results
presented for a specific year (say, 2009), will be held redundant or of limited value in
2015. Reasons being, either the officials have changed or the development scenario
have changed (from too effective to minimal effective or vice versa)

c) Expensive and time consuming

Quantitative research is difficult, expensive and requires a lot of time to be perform
the analysis. This type of research is planned carefully in order to ensure complete
randomization and correct designation of control groups (Morgan 1980). A large
proportion of respondents is appropriate for the representation of the target
population. So, as to achieve in-depth responses on an issue, data collection in
quantitative research methodology is often too expensive as against qualitative
approach. For example, to understand the influence of advertising on the propensity of
purchase decision of baby foods parents of 5-year old and below of Bangalore, the
researcher needs collect data from 200 respondents. This is time consuming and
expensive, given the approach needed to each of these parents to explain the study
purpose.
 
2. Explain the procedures in decision making process?

Step 1: Identify the decision

You understand that you need to settle on a choice. Attempt to obviously characterize
the idea of the choice you should make. This initial step is very vital.
Step 2: Gather relevant information
Collect some pertinent information before you make your decision: what information
is needed, the best sources of information, and how to get it. This step involves both
internal and external "work." Some information is internal: you'll seek it through a
process of self-assessment. Other information is external: you will find it online, in
books, from other people, and from other sources. 
Step 3: Identify the alternatives
As you collect information, you will probably identify several possible paths of
action, or alternatives. You can also use your imagination and additional information
to construct new alternatives. In this step, you will list all possible and desirable
alternatives.
Step 4: Weigh the evidence
Draw on your information and emotions to imagine what it would be like if you
carried out each of the alternatives to the end. Evaluate whether the need identified in
Step 1 would be met or resolved through the use of each alternative. As you go
through this difficult internal process, you'll begin to favor certain alternatives: those
that seem to have a higher potential for reaching your goal. Finally, place the
alternatives in a priority order, based upon your own value system.
Step 5: Choose among alternatives
Once you have weighed all the evidence, you are ready to select the alternative that
seems to be the best one for you. You may even choose a combination of alternatives.
Your choice in Step 5 may very likely be the same or similar to the alternative you
placed at the top of your list at the end of Step 4.
 Step 6: Take action
You're now ready to take some positive action by beginning to implement the
alternative you chose in Step 5. 
Step 7: Review your decision & its consequences
 In this final step, consider the results of your decision and evaluate whether or not it
has resolved the need you identified in Step 1. If the decision has not met the
identified need, you may want to repeat certain steps of the process to make a new
decision. For example, you might want to gather more detailed or somewhat different
information or explore additional alternatives

3. Describe the steps in formulating a linear programming problem?

To formulate this linear programming problem, we consider the following

three steps:
1. What are the decision variables? This is whereby we identify which quantities we
need to know in order to solve the problem. To find out what the decision variables
are, we read through the question and identify the things you'd like to know in order
to solve the problem.
2. What are the constraints? This is probably the hardest bit since we have to identify
the constraints. To understand this bit, we consider what could happen in each
department.

3. What is the objective? The main objective of any organization is to maximize

income.
4. Explain the complete procedures in the linear programming sensitivity
analysis?

1. If the objective function changes, how does the solution change? 

2. If resources available change, how does the solution change? 
3. If a constraint is added to the problem, how does the solution change?

5. Is outlier included in regression analysis? What is the importance of

regression analysis to business nowadays? Why regression analysis is considered
the best method in cost segregation?

Outliers in regression are observations that fall from the "cloud" of points.
These points are especially important because they can have a strong influence on the
least square line.
Regression analysis is important to business nowadays because regression
analysis is all about data. It helps businesses understand the data points they have and
use them, specifically the relationships between data points. "Of all the business
analysis techniques, regression analysis is one of the most significant". It is also
considered as the backbone of an enterprise. The importance of regression analysis in
a business is that it helps determine which factors matter most, which it can ignore
and how those factors interact with each other.
Regression analysis is considered the best method simply because the use of
regression analysis is the most accurate method in segregating total costs into fixed
and variable components. Regression analysis tends to be most accurate because it
provides a cost equation that best fits the line to the data points.

6. Differentiate the 3 methods in computing co-efficient of correlations?

The formulas include;

a) Pearson r correlation: Pearson r correlation is the most widely used correlation
statistic to measure the degree of the relationship between linearly related variables.
For example, in the stock market, if we want to measure how two stocks are related to
each other, Pearson r correlation is used to measure the degree of relationship between
the two. The point-biserial correlation is conducted with the Pearson correlation
formula except that one of the variables is dichotomous.
b) Kendall rank correlation: Kendall rank correlation is a non-parametric test that
measures the strength of dependence between two variables.  If we consider two
samples, a and b, where each sample size is n, we know that the total number of
pairings with a b is n(n-1)/2.
c) Spearman rank correlation: Spearman rank correlation is a non-parametric test that
is used to measure the degree of association between two variables.  The Spearman
rank correlation test does not carry any assumptions about the distribution of the data
and is the appropriate correlation analysis when the variables are measured on a scale
that is at least ordinal.
7. Discuss the transportation model and how it affects or what is the importance
to businesses today despite the COVID pandemic?

The transportation model is a special case of linear programming problem.

The simplex algorithm method which is discussed before can be used to solve any
linear programming problem but this method is laborious. For this reason whenever
possible we try to simplify the calculations. One such model requiring simplified
calculations is called transportation model. It deals with the situation in which
commodity is shipped from origins (sources or factories) to destinations (e.g.
warehouses). The objective is to determine the amounts shipped from each source to
each destination that minimizes the total shipment cost while satisfying both the
supply limits and demand requirements. The model assumes that the shipping cost on
a given route is directly proportional to the number of units shipped on that route. In
general the transportation model can be extended to areas other than the direct
transportation of a commodity. Including among others inventory control,
employment scheduling and personnel assignment. 
The importance of transport model towards business during this pandemic is
that:
a) It has enabled organizations plan for its resources to identify the destinations where
the products are shipped and ensure maximum returns.
b) It has also helped in scheduling of events in an organization
c) It has enabled planning of human resource during this pandemic since the company
knows what to produce to certain regions and the quantity required thus some human
resource can work from home and this has led to reduction of labor cost

8. Construct a PERT and CPM network model on how you finish a certain
module in all the subjects.

9. List down 5 businesses that exist nowadays that uses economic order quantity.
Give some pros and cons of it.

Amazon, Walmart, Walgreen boots alliance Inc, Costco wholesale corp, The home
depot Inc

Pros
1) Minimizes Storage and Holding Costs
Storing inventory may be expensive for small business owners. The main advantage
of the EOQ model is the customized recommendations provided regarding the most
economical number of units per order. The model may suggest buying a larger
quantity in fewer orders to take advantage of discount bulk buying and minimizing
order costs. Alternatively, it may point to more orders of fewer items to minimize
holding costs if they are high and ordering costs are relatively low.
2) Specific to the Business
Maintaining sufficient inventory levels to match customer demand is a balancing act
for many small businesses. Another advantage of the EOQ model is that it provides
specific numbers particular to the business regarding how much inventory to hold,
when to re-order it and how many items to order. This smoothens out the re-stocking
process and results in better customer service as inventory is available when needed.
Cons
1) Complicated Math Calculations
The EOQ model requires a good understanding of algebra, a disadvantage for small
business owners lacking math skills. Additionally, effective EOQ models require
detailed data to calculate several figures. The benefit to resolving the math is the
ability to determine how much inventory should be attached to each order at the
lowest possible costs. Keeping costs low will inflate margins and ultimately drive
more revenue. EOQ software is one solution that may be worth the investment for
small business owners lacking the time and capital to hire a consultant or employee
for regular calculations.
2) Based on Assumptions
The EOQ model assumes steady demand of a business product and immediate
availability of items to be re-stocked. It does not account for seasonal or economic
fluctuations. It assumes fixed costs of inventory units, ordering charges and holding
charges. This inventory model requires continuous monitoring of inventory levels.
The effectiveness of the basic EOQ model is most limited by the assumption of a one-
product business, and the formula does not allow for combining several different
products in the same order.
 

10. Define time series analysis and give its importance to businesses.

A time series is a collection of observations of well-defined data items

obtained through repeated measurements over time. For example, measuring the value
of retail sales each month of the year would comprise a time series. This is because
sales revenue is well defined, and consistently measured at equally spaced intervals.
Data collected irregularly or only once are not time series. An observed time series
can be decomposed into three components: the trend (long term direction), the
seasonal (systematic, calendar related movements) and the irregular (unsystematic,
short term fluctuations). 
The importance of time series analysis are a) Time Series Analysis for Data-
driven Decision-Making Time series analysis helps in analyzing the past, which
comes in handy to forecast the future. The method is extensively employed in a
financial and business forecast based on the historical pattern of data points collected
over time and comparing it with the current trends. This is the biggest advantage used
by organizations for decision making and policy planning by several organizations. b)
Time Series Analysis and Forecast Service for Your Business. Time series analysis is
a statistical technique to analyze the pattern of data points taken over time to forecast
the future. The major components or patterns that are analyzed through time series
are: trend, seasonality, Cyclicity, irregularity. c) Time Series Analysis and Its
Applicability.
Time Series analysis is "an ordered sequence of values of a variable at equally
spaced time intervals." It is used to understand the determining factors and structure
behind the observed data, choose a model to forecast, thereby leading to better
decision making.
11. List down 5 ratios under financial statement analysis, that is commonly used
in evaluating a business. Give an example of each

a) Profitability Ratios- It includes the following ratios

1. Gross Profit Rate = Gross Profit ÷ Net Sales- Evaluates how much gross
profit is generated from sales. Gross profit is equal to net sales (sales
minus sales returns, discounts, and allowances) minus cost of sales.
2. Return on Sales = Net Income ÷ Net Sales- Also known as "net profit
margin" or "net profit rate", it measures the percentage of income derived
from dollar sales. Generally, the higher the ROS the better.

b) Liquidity Ratios

1. Current Ratio = Current Assets ÷ Current Liabilities

Evaluates the ability of a company to pay short-term obligations using current

assets (cash, marketable securities, current receivables, inventory, and
prepayments).

1. Acid Test Ratio = Quick Assets ÷ Current Liabilities

Also known as "quick ratio", it measures the ability of a company to pay short-
term obligations using the more liquid types of current assets or "quick assets"
(cash, marketable securities, and current receivables).

1. Cash Ratio = ( Cash + Marketable Securities ) ÷ Current Liabilities

Measures the ability of a company to pay its current liabilities using cash and
marketable securities. Marketable securities are short-term debt instruments
that are as good as cash.

1. Net Working Capital = Current Assets - Current Liabilities

Determines if a company can meet its current obligations with its current
assets; and how much excess or deficiency there is.

c) Management Efficiency Ratios

1. Receivable Turnover = Net Credit Sales ÷ Average Accounts Receivable

Measures the efficiency of extending credit and collecting the same. It

indicates the average number of times in a year a company collects its open
accounts. A high ratio implies efficient credit and collection process.

1. Days Sales Outstanding = 360 Days ÷ Receivable Turnover

Also known as "receivable turnover in days", "collection period". It measures

the average number of days it takes a company to collect a receivable. The
shorter the DSO, the better. Take note that some use 365 days instead of 360.
1. Inventory Turnover = Cost of Sales ÷ Average Inventory

Represents the number of times inventory is sold and replaced. Take note that
some authors use Sales in lieu of Cost of Sales in the above formula. A high
ratio indicates that the company is efficient in managing its inventories.

1. Days Inventory Outstanding = 360 Days ÷ Inventory Turnover

Also known as "inventory turnover in days". It represents the number of days

inventory sits in the warehouse. In other words, it measures the number of
days from purchase of inventory to the sale of the same. Like DSO, the
shorter the DIO the better.

1. Accounts Payable Turnover = Net Credit Purchases ÷ Ave. Accounts

Payable

Represents the number of times a company pays its accounts payable during
a period. A low ratio is favored because it is better to delay payments as much
as possible so that the money can be used for more productive purposes.

1. Days Payable Outstanding = 360 Days ÷ Accounts Payable Turnover

Also known as "accounts payable turnover in days", "payment period". It

measures the average number of days spent before paying obligations to
suppliers. Unlike DSO and DIO, the longer the DPO the better (as explained
above).

1. Operating Cycle = Days Inventory Outstanding + Days Sales Outstanding

Measures the number of days a company makes 1 complete operating cycle,

i.e. purchase merchandise, sell them, and collect the amount due. A shorter
operating cycle means that the company generates sales and collects cash
faster.

1. Cash Conversion Cycle = Operating Cycle - Days Payable Outstanding

CCC measures how fast a company converts cash into more cash. It
represents the number of days a company pays for purchases, sells them, and
collects the amount due. Generally, like operating cycle, the shorter the CCC
the better.

1. Total Asset Turnover = Net Sales ÷ Average Total Assets

Measures overall efficiency of a company in generating sales using its assets.

The formula is similar to ROA, except that net sales is used instead of net
income.
d) Leverage Ratios

1. Debt Ratio = Total Liabilities ÷ Total Assets

Measures the portion of company assets that is financed by debt (obligations

to third parties). Debt ratio can also be computed using the formula: 1
minus Equity Ratio.

1. Equity Ratio = Total Equity ÷ Total Assets

Determines the portion of total assets provided by equity (i.e. owners'

contributions and the company's accumulated profits). Equity ratio can also be
computed using the formula: 1 minus Debt Ratio.
The reciprocal of equity ratio is known as equity multiplier, which is equal to
total assets divided by total equity.

1. Debt-Equity Ratio = Total Liabilities ÷ Total Equity

Evaluates the capital structure of a company. A D/E ratio of more than 1

implies that the company is a leveraged firm; less than 1 implies that it is a
conservative one.

1. Times Interest Earned = EBIT ÷ Interest Expense

Measures the number of times interest expense is converted to income, and if

the company can pay its interest expense using the profits generated. EBIT is
earnings before interest and taxes.

e) Valuation and Growth Ratios

1. Earnings per Share = ( Net Income - Preferred Dividends ) ÷ Average

Common Shares Outstanding

EPS shows the rate of earnings per share of common stock. Preferred
dividends is deducted from net income to get the earnings available to
common stockholders.

1. Price-Earnings Ratio = Market Price per Share ÷ Earnings per Share

Used to evaluate if a stock is over- or under-priced. A relatively low P/E

ratio could indicate that the company is under-priced. Conversely, investors
expect high growth rate from companies with high P/E ratio.

1. Dividend Pay-out Ratio = Dividend per Share ÷ Earnings per Share

Determines the portion of net income that is distributed to owners. Not all
income is distributed since a significant portion is retained for the next year's
operations.
 1. Dividend Yield Ratio = Dividend per Share ÷ Market Price per Share-
Measures the percentage of return through dividends when compared to
the price paid for the stock. A high yield is attractive to investors who are
after dividends rather than long-term capital appreciation.
2. Book Value per Share = Common SHE ÷ Average Common Shares

Indicates the value of stock based on historical cost. The value of common
shareholders' equity in the books of the company is divided by the average
common shares outstanding.