Quantitative Methods in Decision Making for Managers

Walmart - Quantitative Methods in Decision Making for Managers

Introduction

Decision making is an integral part in business as it provides managers to take optimal decisions so that the business gets higher profits every time. Managers usually use a variety of approaches to decision-making. Because every single decision has a slightly different range of uncertainty as to the nature of the problem and the solution affected by the decision as to the ability to create a solution to the problem, you can always use a legitimate way of making decisions. One may have to be focused on a solution, but at the same time flexible. Here are four popular and proven in combat methods of decision making.

Statistical Methods use by managers

Today, managers certainly rely on the numeric results to reach to reach any systematic conclusion and decision for their businesses. There are various statistical techniques used to determine the behavior of the business which includes qualitative and quantitative research. Qualitative research is no doubt related to the demographic factors which provide a simple brief behavior of the customers towards any particular product whereas quantitative research is slightly tricky and considered to fairly complex. In quantitative research, managers usually include forecasting of demand and supply for their product and similarly analyzing the correlations between the different quantitative variables. This allows the managers to significantly take decisions. In quantitative or qualitative studies, the most important part is the inferential statistics which is used worldwide not only to optimize the business but also in the field of engineering and medicine as well. Managers, while doing any research for their businesses initially setup different hypothesis related to their objective of the study where these statistical tools certainly provide them an upright to reach any conclusion in no time.

Example

Walmart is a ...