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Created with Fabric.js 1.4.5 How Quants helps you in Decision-Making SAMPLING Sampling theory is the field of statistics involved with collection, analysisand interpretation of data gathered from random samples of a population.Whether designing new products, streamlining a production process or evaluating current vs. prospective customers, todays business managersface greater complexities than ever before. When deciding whether to undertake a new project, it is important to understand the risks associated with it. By applying confidence intervals with potential outcomes, you will be able to determine the likely range of results for the new project based onyour needed confidence level. The type of analysis can be done quickly to determine if the potential range of results are acceptable for the project. Some quants tools you can apply in the business world to answer: SENSITIVITY ANALYSIS CONFIDENCE INTERVAL NORMAL DISTRIBUTION REGRESION ANALYSIS Linear programming deals with problems such as maximizing profits, minimizing costs or ensuring you make the best use of available resources. It allows the rationalization of many managerial and/or technological decisions. Business relies on making accurate and timely decisions and executing them properly. Managers need to make sure that the decisions they make avoid risk and provide proper returns. By combining all topics, managers or MBA students will be able to collect and analyze data in order to make better and more accurate business decision. Each topic can help to increase efficiency in different departments of a company, making them more profitable. No matter which formula, tool or model you use, it is important to know what the input and output numbers represents. Also, you should fully understand the business value of all quantitative methods and how to apply them in real life scenarios. The topics covered allowed us to be more objective and data oriented on decision-making. In addition, the topics covered in class also help us perform analysis of information resulting in clear problem formulation and assumptions. The topics also give us a model to study change in data and how it may impact decisions and outcomes. "The general who wins the battle makes many calculations in his temple before the battle is fought. The general who loses makes but few calculations beforehand" - Sun Tzu Team 8 - MBA HaightVictoria Paredes MargoPreciadoKevin Graft Umesh TiwariDaniel Atmosoerodjo Alberto Becerra Our business world heavily depends on mathematical tools that could provide important qualitative and quantitative information that aids in decision-making. How many units should I produce? ? Which market should I address? What is the risk of faliure? Which factors affect sales results? 1. How do most topics covered in the Quants course fit together? 2. What is the most important thing to know about these topics? Based on the performance of your organization it might become necessary to layoff some of your staff. For example, if you have to layoff 5% of your staff it would be a good decision to eliminate your least effective employees. By running a normal distribution,you can find a rating at which everyone belowthis mark represents the 5% least productive employees for which you will layoff. Who are my top performers? When developing a sales projection there are several factors to consider. Through regression of analysis, you can determine which factors aremost closely correlated with increasing or decreasing sales, leading tomore accurate sales projections. 3. How do these topics create value for a MBA and a professional career?
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