QUANTITATIVE BUSINESS ANALYSIS

QUANTITATIVE BUSINESS ANALYSIS

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.
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1) A company sends out monthly statements to its customers. The company is considering including a preaddressed envelope for returning payments. The average and the standard deviation of the number of days before payment is received are 10.5 and 3.3, respectively. As an experiment to determine whether enclosing preaddressed envelopes speeds up payment, 100 customers selected at random were sent preaddressed envelopes with their bills. The average and the standard deviation of the number of days to payment was 9.4 and 2.88, respectively. Can we conclude at the 5% significance level that the variability in payment speed decreases when a preaddressed envelope is included? Also, calculate a 90% confidence interval for the variability in payment speed.

2) One factor in low productivity is the amount of time wasted by production workers. Wasted time includes time spent cleaning up mistakes, waiting for more material and equipment, and performing any other activity not related to production. In a project designed to examine the problem, an operations management consultant surveyed 200 workers in companies that were classified as successful (based on their latest annual profits) and another 200 workers from unsuccessful companies. The amount of time (in hours) wasted during a standard 40-hour workweek was recorded for each worker. It was found that in successful companies workers wasted 5.02 hours per week with a standard deviation of 1.39 hours. In unsuccessful companies, workers wasted an average of 7.80 hours with a standard deviation of 3.09 hours. At the 2% significance level, does the amount of time wasted in unsuccessful firms exceed that of successful ones?

3) A restaurant decides to advertise in the city newspaper. To measure the effectiveness of the advertising, the restaurant owner recorded gross sales for the 10 weeks prior to the ad campaign and for the 10 weeks after the ad campaign commenced. Using the data below, at the 5% significance level, can the owner conclude that the newspaper advertising is effective?