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# QUANTITATIVE APTITUDE &

QUANTITATIVE TECHNIQUES
AFTERSCHO☺OL
– DEVELOPING CHANGE MAKERS
CENTRE FOR SOCIAL ENTREPRENEURSHIP
PGPSE PROGRAMME –
World’ Most Comprehensive programme in social
entrepreneurship & spiritual entrepreneurship
OPEN FOR ALL FREE FOR ALL

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

QUANTITATIVE APTITUDE &
QUANTITATIVE TECHNIQUES
Dr. T.K. Jain.
AFTERSCHO☺OL
Centre for social entrepreneurship
Bikaner M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk, www.afterschoool.tk
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
WHAT IS CORRELATION
• Any association between two variables is
called correlation. Correlation can be of
various types:
• Positive (example: income and demand)
• Negative (example: Price and demand)
• Linear (where the correlation moves in a
linear fashion)( see the graph)
• Curvilinear
• Partial (when it is not complete).
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Positive linear correlation..
INCOME V/S DEMAND
MORE THE INCOME,
MORE WILL BE THE
DEMAND

NEGATIVE LINEAR
CORRELATION

## PRICE V/S DEMAND,

HIGHER THE PRICE,
LESS WILL BE THE
DEMAND AND LOWER
THE PRICE, HIGHER
WILL BE THE DEMAND.

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Corvilinear correlation

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

How to judge correlation ?
• 1. Scatter Diagram Method (just plot the
dots, find the mid line and prepare a
graph, and observe the graph).
• 2. Graphic Method
• 3. Karl Pearson’s Coefficient of Correlation
Method
• 4. Spearman’s Rank Correlation Method
• 5. Con-current deviation Method
• 6. Method of Least-squares
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Find correlation between the
following two series:

price demand

10 50

15 40

20 35

24 24

30 20

99 169
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Write a note on scatter diagram?
• It is the simplest and easiest measure to
judge correlation. Here we plot the actual
data (pairs of actual observations) on a
graph paper and try to draw a line from the
middle of these data.
• This method is possible, when the
relationship is very clearly visible – i.e.
there is straight positive or negative
relationship.

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

What is coefficient of correlation
• It si a measure of relation (remember, it does
not check causation).
• It is independent of change of origin, even if
we change the origin, it will remain the same.
• It is denoted by r. r=0 means no correlation,
r=1 means perfect positive correlation, r =-1
• Square of r is called coefficient of
determination.

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

What are the basic assumptions in
Karl Pearson’s correlation ?
• Both the data sets are based on ratio
scale
• Both the values are normally distributed.
• There is some relationship between the
two variables – which may be based on
cause – effect relationship (correlation
does not identify cause effect
relationship).
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
What is probable error ..
• We can draw two limits (upper and lower
limits) where by we can ensure that there will
be 50% probability that the values will lie in
the range. The values of probable error may
be added or subtracted to the average
correlation values, to find the range.
• PE =.6745*(1- r^2)/ sqrt(n)
• N= number of values
• R= correlation value.

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

What is standard error?
• It is a better measure in comparison to
probable error. It is the standard
deviation of sampling distribution of
the statistics drawn from randam
sampling. It is 3/2 of the probable error.
• S.E. = (1 – r^2)/ Sqrt(n)
• There is 99.73% chanse that the values
will fall in the range (upper and lower
values) of correlation + - standard
error.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
What is coefficient of
determination..
• It shows the proportion of total variability.
• It is denoted by r^2.
• If correlation is .6, it means it accounts for
36% variability, similarly, if correlation is
.4, it accounts for only 16% variability of
the values.

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Find the correlation between height
and weight of any 5 friends…
Name Height Weight

Amit 180 70
Giriraj 170 58
Dushyant 180 53
Nitin 166 51
Jayant 168 49

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Solution .
Name Height Weight
dx Dy DXDY DXSQR DYSQR
Amit 180 70 7.2 13.8 99.36 51.84 190.44
Giriraj 170 58 -2.8 1.8 -5.04 7.84 3.24
Dushyant 180 53
7.2 -3.2 -23.04 51.84 10.24
Nitin 166 51 -6.8 -5.2 35.36 46.24 27.04
Jayant 168 49 -4.8 -7.2 34.56 23.04 51.84

45.224

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Solution …
• As we can see, the correlation is : .6244
(this shows that there is positive relation
between height and weight, that means if
height increases weight also increases).

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Calculate range,within which
random values will fall with 99.7%
certainty?
• S.E. = (1- r^2) / sqrt (n)
• =(1-.6244^2)/sqrt(5)
• =.2729
• Thus range is : .6244+.2729 and .6244 -
.2729
• Thus we will get the range:.8973 and
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Solution …
• Step 1. calculate average of the two
series.
• Step 2. Calculate standard deviation of the
two series.
• Step 3: calculate covariance
• Step 4. Divide covariance by the product
of the two standard deviations. This is
correlation.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Steps in standard deviation…
• 1. calculate mean (sum divided by number
of items)
• 2. calculate Dx and Dy
• 3. calculate squares of Dx and Dy.
• 4. find mean of Dxsquare and Dy square
• 5. calculate square roots of the above
values. This is standard deviation.

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Calculation of standard deviation

demand
price X Y Dx Dy Dx^2 Dy^2
10 50 -9.8 16.2 96 262
15 40 -4.8 6.2 23 38.4
20 35 0.2 1.2 0.04 1.44
24 24 4.2 -9.8 17.6 96
30 20 10.2 -14 104 190
99 169 Total 241 589

## sqrt (std. dev.) 6.94 10.9

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
How to calculate covariance…
1. You have already calculated Dx and Dy
by now.
2. Get the product of Dx and Dy by
multiplying them.
3. Now addup all these values
4. Get the average of sum of DxDy by
dividing the above value by the number.
5. This is called covariance.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Final solution …
• Divide covariance by the product of
standard deviations.
• This is correlation.
• In the question, we have covariance = -.74
• Standard deviations are : 6.9 and 10.9.
When we multiply these standard
deviations to each other, we get 75.3
• Divide covariance by 75.3, we get -.98
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Final word…
• Correlation will never be less than -1 and
more than 1. it will always be between 1 to
-1.
• 1 = perfect positive correlation
• -1 = perfect negative correlation.

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Final solution…
dema
price nd
X Y Dx Dy Dx^2 Dy^2 DX * DY
10 50 -9.8 16.2 96 262 -158.76
15 40 -4.8 6.2 23 38.4 -29.76
20 35 0.2 1.2 0.04 1.44 0.24
24 24 4.2 -9.8 17.6 96 -41.16
30 20 10.2 -14 104 190 -140.76
99 169 Total 241 589 -370.2

## sqrt (std. dev.) 6.94 10.9 -0.98316

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Afterschoool conducts three year integrated PGPSE
(after class 12th along with IAS / CA / CS) and 18
month PGPSE (Post Graduate Programme in Social
Entrepreneurship) along with preparation for CS / CFP /
CFA /CMA / FRM. This course is also available online
also. It also conducts workshops on social
entrepreneurship in schools and colleges all over India –
start social entrepreneurship club in your institution
today with the help from afterschoool and help us in
developing society.

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Why such a programme?
• To promote people to take up entrepreneurship
and help develop the society
• To enable people to take up franchising and
other such options to start a business / social
development project
• To enable people to take up social development
as their mission
• To enable people to promote spirituality and
positive thinking in the world

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Who are our supporters?
• Afterschoolians, our past beneficiaries,
entrepreneurs and social entrepreneurs
are supporting us.
• You can also support us – not necessarily
by money – but by being promotor of our
concept and our ideas.

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

best programme for developing great
entrepreneurs
• Most flexible, adaptive but rigorous programme
• Available in distance learning mode
• Case study focused- latest cases
• Industry oriented practical curriculum
• Designed to make you entrepreneurs – not just
an employee
• Option to take up part time job – so earn while
you learn
• The only absolutely free course on internet
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Workshops from
AFTERSCHO☺OL
• IIF, Delhi
• CIPS, Jaipur
• Gyan Vihar, Jaipur
• Apex Institute of Management, Jaipur
• Aravali Institute of Management, Jodhpur
• Xavier Institute of Management, Bhubaneshwar
• Pacific Institute, Udaipur

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Flexible Specialisations:
• Rural development and transformation
• HRD and Education, Social Development
• NGO and voluntary work
• Investment analysis,microfinance and inclusion
• Retail sector, BPO, KPO
• Accounting & Information system (with CA / CS /CMA)
• Hospital management and Health care
• Hospitality sector and culture and heritage
• Other sectors of high growth, high technology and social
relevance

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Salient features:
• The only programme of its kind (in the whole world)
• No publicity and low profile course
• For those who want to achieve success in life – not just a
degree
• Flexible – you may stay for a month and continue the rest of
the education by distance mode. / you may attend weekend
classes
• Scholarships for those from poor economic background
• Latest and constantly changing curriculum – keeping pace
with the time
• Placement for those who are interested
• Admissions open throughout the year
• Latest and most advanced technologies, books and study
material

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Components
• Pedagogy curriculum and approach based on IIM Ahmedabad and ISB
• Meditation, spiritualisation, and self development
• Participation in conferences / seminars
• Workshops on leadership, team building etc.
• Written submissions of research projects/articles / papers
• Interview of entrepreneurs, writing biographies of entrepreneurs
• Editing of journals / newsletters
• Consultancy / research projects
• Assignments, communication skill workshops
• Participation in conferences and seminars
• Group discussions, mock interviews, self development diaryng
• Mind Power Training & writing workshop (by Dr. T.K.Jain)

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Pedagogy
• Case analysis,
• Articles from Harvard Business Review
• Quiz, seminars, workshops, games,
• Visits to entrepreneurs and industrial visits
• PreGotitations, Latest audio-visuals
• Group discussions and group projects
• Periodic self assessment
• Mentoring and counselling
• Study exchange programme (with institutions out of
India)
• Rural development / Social welfare projects
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Branches
• AFTERSCHO☺OL will shortly open its
branches in important cities in India
including Delhi, Kota, Mumbai, Gurgaon
and other important cities.
Afterschooolians will be responsible for
managing and developing these branches
– and for promoting social entrepreneurs.

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Case Studies
• We want to write case studies on social
entrepreneurs, first generation
entrepreneurs, ethical entrepreneurs.
be in touch with entrepreneurs, so that we
may develop entrepreneurs.

## www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

Basic values at AFTERSCHO☺OL
• Interact to develop yourself
• Fear is your worst enemy
• Make mistakes to learn
• Study & discuss in a group
• Criticism is the healthy route to mutual support
and help
• Ask fundamental questions : why, when, how &
where?
• Embrace change – and compete with yourself
only
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www.afterschoool.tk
social entrepreneurship for better
society