MMPC - 005 Quantitative Analysi

MMPC - 005 Quantitative Analysis For Managerial Applications
1. Describe briefly the questionnaire method of collecting primary data. State the
essentials of a good questionnaire.
Answer:- What is primary data collection?
Primary data collection is the process of collecting data from a live source, such
as a human being. The goal of primary data collection is to collect data that is as
accurate and complete as possible. This data can be used to improve the quality of
life for people and the environment. Primary data collection is the process of
collecting data from a real-world source, like a customer or user. This can be done
manually or through automated means.
Basic types of primary data collection include online, offline, and self-collection
are :-
There are various types of collection of primary data, and We collect primary data
during the course of doing experiments in an experimental
research but in case we do research of the descriptive type and perform surveys,
whether sample surveys or census surveys, then we can obtain primary data either
through observation or through direct communication with respondents in one form or
another or through personal interviews.
This, in other words, means that there are several methods of collecting primary
data, particularly in surveys and descriptive researches. Important ones are:
i. observation method,
ii. interview method,
iii. through questionnaires,
iv. through schedules, and
v. other methods
:- the questionnaire method of collecting primary data is :-
This method of data collection is quite popular, particularly in case of big

enquiries. It is being adopted by private individuals, research workers, private
and public organizations and even by governments. In this method a questionnaire is
sent (usually by post) to the persons concerned with a request to answer the
questions and return the questionnaire.
A questionnaire consists of a number of questions printed or typed in a definite

order on a form or set of forms. The questionnaire is mailed to respondents who are
expected to read and understand the questions and write down the reply in the space
meant for the purpose in the questionnaire itself. The respondents have to answer
the questions on their own. This method is beneficial for collecting large amounts
of data in a relatively short time and is versatile in reaching diverse
populations. The method of collecting data by mailing the questionnaires to
respondents is most extensively employed in various economic and business surveys.
for Example 1 :- Main aspects of a questionnaire: Quite often questionnaire is

considered as the heart of a survey operation. Hence it should be very carefully
constructed. If it is not properly set up, then the survey is bound to fail. This
fact requires us to study the main aspects of a questionnaire viz., the general
form, question sequence and question formulation and wording.
For Example 2 :- A brand new website or even an existing brand can use a feedback
form to gather data about what customers like or do not like on their website. This
kind of information is essential for the brands to get an unbiased insight into how
their brand is perceived by the customer.
* The merits claimed on behalf of this method are as follows:
1. There is low cost even when the universe is large and is widely spread
geographically.
2. It is free from the bias of the interviewer; answers are in respondents’ own
words.
3. Respondents have adequate time to give well thought out answers.
4. Respondents, who are not easily approachable, can also be reached
conveniently.
5. Large samples can be made use of and thus the results can be made more
dependable and reliable.
*Following are the essential of a good questionnaire:
1] Limited number of questions: The number of questions should be limited as far as

possible. Normally 15 to 20 questions are sufficient enough for making the required
enquiry.
2] Simplicity: The language of the question should be simple and easily

understandable. It should be clear and not be vague. It should not convey two
meanings.
3] Logically arrange: The question should be arranged logically. There question be

a proper sequence of the questions.
4] Related to the points: Questions should be related to the point. They should
not be irrelevant.
5] Avoiding personal questions: Personal questions should be avoided as far as

possible. For example, questions about Income, volume of sales, etc. should not be
asked.
6] Calculations: Questions requiring respondents to perform calculations should be

avoided. The calculations should be done by the investigator himself.
7] Pre-Testing On a trial basis, certain questions will be asked of respondents in

a pilot survey. If their responses are difficult to understand, they can be
reframed accordingly. Pilot survey is the technical term for this type of testing.
8] Instructions: A questionnaire should include clear instructions on how to fill

out the form.
9]Cross-Verification: Questions that aid cross-verification may be asked.
10] Request for Return: The respondents should be asked to return the
questionnaire completely filled out. The respondent must be confident that the
information he provides will be kept private. Questionnaires and plans have
identical sets of questions. The only difference between the two is that in
questionnaires, the respondents record all of the information themselves. The
enumerators, on the other hand, record the information provided by the respondents
in the schedules.
2. Discuss the importance of measuring variability for managerial decision-making.
Answer:- what is measuring variability ?
A measure of variability is a summary statistic that represents the amount of

dispersion in a dataset. How spread out are the values? While a measure of central
tendency describes the typical value, measures of variability define how far away
the data points tend to fall from the center.
Measuring variability in data provides crucial insights for managerial decisions,

indicating the reliability of processes and data points, and highlighting the
predictability of outcomes, which is essential for effective data-driven decision-
making and risk management.
*key points :-
> Measuring variability in data is crucial for managerial decisions as it assists

managers in understanding the range of possible outcomes and the associated risks.
Measures of variability such as range, interquartile range (IQR), and standard
deviation provide insights into how spread out data points are, indicating the
predictability and reliability of processes and phenomena. For example, in a
control chart used for performance-based quality assessment, a known mean and
standard deviation indicate a process under statistical control, whereas an
increase in variability might signal the presence of additional sources of error,
prompting managerial action.
>Understanding the variance in data helps managers to avoid poor decision-making,

incomplete risk assessments, and ineffective risk communication. Variability can be
attributed to measurement, natural factors, sampling, or induced reasons,
necessitating different approaches to reduce it. For instance, to decrease variance
due to sampling, a manager might employ more robust sampling techniques or increase
sample sizes to obtain more reliable data.
>In essence, data-driven decision-making relies not just on measuring central

tendencies but also on understanding the spread of data to evaluate stability and
predict future performance. Tailored strategies can thus be developed to mitigate
risk and improve outcomes based on a comprehensive grasp of data variability.
>One way to measure variability is through the use of the standard deviation, which
quantifies the average amount by which data points differ from the mean and a
higher standard deviation indicates a larger variability, while a lower standard
deviation suggests a smaller variability.
For example :- consider a manager analyzing sales data for multiple products.
Measuring the variability in sales performance can help identify which products are
consistently popular and which ones are more volatile. This information can guide
decisions on resource allocation, inventory management, and marketing strategies.
*the importance of measuring variability for managerial decision-making are :-
1) Decision-Making Precision: Quantifying variability allows managers to make more

precise and informed decisions. Statistical analysis of variability provides a
clearer picture of operational dynamics, reducing reliance on intuition and
enhancing decision accuracy.
2) Financial Planning and Cost Control: Understanding cost variability enables

better budgeting and financial forecasting. Managers can identify the causes of
cost fluctuations and take steps to control expenses, improving profitability and
financial stability.
3) Resource Allocation: Variability insights assist in optimal resource allocation.

By understanding the fluctuations in resource needs, managers can allocate
personnel, equipment, and materials more effectively, improving productivity and
reducing waste.
4) Competitive Advantage: Organizations that effectively measure and manage

variability can achieve a competitive edge. Consistent and predictable operations
enhance reliability, build customer trust, and differentiate the organization from
competitors.
5) Risk Assessment and Management: Variability highlights the degree of uncertainty

in processes and outcomes. Managers can identify potential risks and develop
strategies to mitigate them, ensuring more stable and predictable operations.
6) Performance Improvement: Variability in employee performance or production

processes can indicate areas needing improvement. Managers can use this information
to implement targeted training, streamline processes, and enhance overall
efficiency.
In summary, measuring variability equips managers with critical insights into the
stability and performance of business processes. This understanding supports
proactive management, leading to improved efficiency, reduced risks, and sustained
organizational success. Measuring variability in data provides also crucial
insights for managerial decisions, indicating the reliability of processes and data
points, and highlighting the predictability of outcomes, which is essential for
effective data-driven decision-making and risk management.

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MMPC - 005 Quantitative Analysis For Managerial Applications

Answer:- What is primary data collection?

:- the questionnaire method of collecting primary data is :-

This method of data collection is quite popular, particularly in case of big

A questionnaire consists of a number of questions printed or typed in a definite

for Example 1 :- Main aspects of a questionnaire: Quite often questionnaire is

* The merits claimed on behalf of this method are as follows:

*Following are the essential of a good questionnaire:

1] Limited number of questions: The number of questions should be limited as far as

2] Simplicity: The language of the question should be simple and easily

3] Logically arrange: The question should be arranged logically. There question be

5] Avoiding personal questions: Personal questions should be avoided as far as

6] Calculations: Questions requiring respondents to perform calculations should be

7] Pre-Testing On a trial basis, certain questions will be asked of respondents in

8] Instructions: A questionnaire should include clear instructions on how to fill

9]Cross-Verification: Questions that aid cross-verification may be asked.

Answer:- what is measuring variability ?

A measure of variability is a summary statistic that represents the amount of

Measuring variability in data provides crucial insights for managerial decisions,

> Measuring variability in data is crucial for managerial decisions as it assists

>Understanding the variance in data helps managers to avoid poor decision-making,

>In essence, data-driven decision-making relies not just on measuring central

*the importance of measuring variability for managerial decision-making are :-

1) Decision-Making Precision: Quantifying variability allows managers to make more

2) Financial Planning and Cost Control: Understanding cost variability enables

3) Resource Allocation: Variability insights assist in optimal resource allocation.

4) Competitive Advantage: Organizations that effectively measure and manage

5) Risk Assessment and Management: Variability highlights the degree of uncertainty

6) Performance Improvement: Variability in employee performance or production

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