Paper 14 QUANTITATIVE METHODSUnit 1Basic Mathematical
Paper 1.4: QUANTITATIVE METHODS
Unit – 1
Basic Mathematical concepts : Nature of quantitative analysis in the practice of management – problem definition – Models and their development – Concept of trade off – Notion of constants – Variables and function – Linear and Non-linear – Simple examples.
Graphical representation of functions and their application –
Concepts of slope and its relevance – Plotting graphs of functions.
Use of functional relationships to understand elasticity of demands.
Productive function – Costs of operating a system – Measuring the level of activity of a system in terms of volume – Value and other parameters –
Relationship between costs and level of activity – Costs and Profits – Relevance of marginal average and total costs. Importance of “relevant costs” for decisionsmaking – Break-even analysis and its uses.
Unit – 2
Introduction to the linear programming – Concepts of optimisation
– Formulation of different types of linear programming – Duality and Sensitivity analysis for decision-making.
Unit – 3
Solving LP using graphical and simplex method (only simple problems) – Interpreting the solution for decision-making – Other types of linear programming – Transportation – Formulation and solving methods.
Unit – 4
Introduction to the notion of probability – Concepts of events –
Probability of events – Joint, conditional and marginal probabilities.
Unit – 5
Introduction to simulation as an aid to decision-making.
Illustration through simple examples of discrete event simulation. Emphasis to be on identifying system parameter, variables, measures of performance etc.
1
Unit – 6
Introduction to Decision Theory: Pay-off and Loss tables –
Expected value of pay-off – Expected value of perfect Formation – Decision
Tree approach to choose optimal course of action – Criteria for decision – Minimax, Maxi-max, Minimising Maximal Regret and their applications.
Course Material Prepared by :
Dr.M.SELVAM, M.Com., M.B.A., Ph.D.,
Professor & Head,
Dept.
Unit – 1
Basic Mathematical concepts : Nature of quantitative analysis in the practice of management – problem definition – Models and their development – Concept of trade off – Notion of constants – Variables and function – Linear and Non-linear – Simple examples.
Graphical representation of functions and their application –
Concepts of slope and its relevance – Plotting graphs of functions.
Use of functional relationships to understand elasticity of demands.
Productive function – Costs of operating a system – Measuring the level of activity of a system in terms of volume – Value and other parameters –
Relationship between costs and level of activity – Costs and Profits – Relevance of marginal average and total costs. Importance of “relevant costs” for decisionsmaking – Break-even analysis and its uses.
Unit – 2
Introduction to the linear programming – Concepts of optimisation
– Formulation of different types of linear programming – Duality and Sensitivity analysis for decision-making.
Unit – 3
Solving LP using graphical and simplex method (only simple problems) – Interpreting the solution for decision-making – Other types of linear programming – Transportation – Formulation and solving methods.
Unit – 4
Introduction to the notion of probability – Concepts of events –
Probability of events – Joint, conditional and marginal probabilities.
Unit – 5
Introduction to simulation as an aid to decision-making.
Illustration through simple examples of discrete event simulation. Emphasis to be on identifying system parameter, variables, measures of performance etc.
1
Unit – 6
Introduction to Decision Theory: Pay-off and Loss tables –
Expected value of pay-off – Expected value of perfect Formation – Decision
Tree approach to choose optimal course of action – Criteria for decision – Minimax, Maxi-max, Minimising Maximal Regret and their applications.
Course Material Prepared by :
Dr.M.SELVAM, M.Com., M.B.A., Ph.D.,
Professor & Head,
Dept.