What quantitative techniques are applied for business analysis?


Quick Answer

According to University of Baltimore's Dr. Hossein Arsham, quantitative techniques that apply to business analysis include time series analysis, regression analysis and cost benefit analysis. Almost every quantitative method in use in the social sciences is applicable to business.

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Full Answer

One aspect of business analysis is forecasting. Time series analysis and regression analysis allow business to make predictions. For example, according to Duke University, the data from auto sales over a period provides raw scores to input into statistical software to make correlations. In regression analysis, a business examines various independent variables, such as the weather or gender, to forecast auto sales. In time series analysis, business analyst uses the same information over a specific time period, such as a fiscal quarter, to forecast sales for next year's same fiscal quarter. It is important to keep in mind that these results are predictions with standard errors to calculate the difference from the forecast data and the raw data.

According to Dr. Thayes Watkins of San Jose State University, cost benefit analysis allows business analysts to use data from previous consumer behaviors to make decisions. It is also useful to find out if a specific program is earning profits for a company or is feasible in the long run.

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