What is a quantitative analysis approach?

Steps of the Quantitative Analysis Approach Defining the Problem:

The First Step in the quantitative approach is to develop a clear, concise statement of problem .
this statement will give direction and meaning to the following steps. In many cases defining the
problem is most important and most difficult step.
Developing a Model: An important part of the quantitative analysis approach is the modeling, model is
a representation usually mathematical of the situation. Models can save time and money in decision
making and problem solving. Acquiring Input Data: Once we have developed a model we must obtain
the data that are used in the model (input data). Obtaining accurate date for the model is essential,
improper data will result in misleading results. Collecting accurate data can be one of the most difficult
steps in performing quantitative analysis. Developing a Solution: Developing a solution involve
manipulating the model to arrive at the best optimal solution to the problem that is practical and can be
implemented, this requires that an equation to be solved for the best decision. Solving equations is a
common technique. Testing the Solution: Before a solution can be analyzed and implemented it needs
to be tested completely because a solution depends on the input data and the model, both requires
testing. Testing the input data and the model includes determining the accuracy and completeness of
the data used by the model. Analyzing the Results: Analyzing the results starts with determining the
implications of the solution. Implementing results often requires change in an organization, the impact
of actions or changes needs to be studied and understood before implementation. Implementing the
Results: The final step is to implement the results, this is the process of incorporating the solution into
the organization. The optimal solution will hundred of Bahraini dinars and it will help the users manage
dedicated time more efficiently




Business owners faced with tough decisions can use one or both of two general approaches to problem
solving. The qualitative approach draws on a managers experience and expertise, which together hone
keen business instincts concerning the likelihood of success. The quantitative approach is more formal.
Using mathematical reasoning, a manager derives the solution on paper and puts it into practice.





Qualitative Approach


The qualitative approach requires experiential knowledge of the various factors involved in a decision.
For example, to use the qualitative approach to solve a dispute over resources between two
departments of an organization, the manager must understand the complex interplay of variables in
that organization, such as the interpersonal connections among supervisors in each department and the
overall availability of resources for which the two departments are competing. In simpler terms, the
manager must have an intuitive feel for how decisions will play out given the nature of that
organization, which can only come from direct, hands-on experience.


Quantitative Approach


Managers lacking direct experience can opt for a quantitative approach. The first step is to translate the
problem into mathematical language. Accordingly, the quantitative approach works best for objectively
measurable problems. For example, deciding how to distribute resources among many departments
might begin with determining which departments are the most profitable and therefore most likely to
generate more profits per unit of fresh resources. Based on this reasoning, the manager uses accounting
data to construct a mathematical model, or formula, for resource apportionment.

Related Reading: How to: Qualitative Measures for Make-or-Buy Decisions


Faulty Models


Quantitative models can fail because a manager over- or underestimates, or entirely fails to account for,
an important variable. For example, relying on the relative profitability of various departments to
apportion resources doesnt account for scalability. Some of the top-producing departments might be
operating at peak efficiency; more resources wont generate proportionally more profits because the
employees simply cant work any faster.


Monitoring


Illogic can cripple either approach, but the quantitative approach is more vulnerable because it relies so
heavily on formal reasoning. Therefore, close monitoring of results is vital to verify the reasoning behind
a quantitative decision. In contrast, managers using the qualitative approach likely have fair
expectations for how their decisions will play out due to past experiences in similar situations.


Considerations


Use both approaches, if possible. Combining depth of experience with keen mathematical reasoning to
make a tough decision offers a better chance of success than either would separately. Each element
complements the other, creating maximally efficient and effective solutions to difficult problems.








Limitations to Qualitative Research
Qualitative research often depends on techniques such as interviews and case-by-case
analysis.
Qualitative research is increasingly common, particularly in the social sciences, as an
alternative to quantitative research. While quantitative research focuses on numerically or
statistically significant differences among populations, qualitative research often involves
looking for "thick" and "rich" detail about a particular question, phenomenon, or group of
people (Peshkin, 1997, quoted in Watt, 2007). Although it has gained increasing
acceptance, qualitative research still has significant limitations. In particular, qualitative
research can present challenges in terms of generalizable results, validity, wider
implications and reliability.
Validity
o One limitation to qualitative research is that, especially to audiences accustomed
to reviewing quantitative research, qualitative research may seem to be less than
valid in its approach, methods, or conclusions. Qualitative research often
depends on the individual judgment of the researcher and is heavily dependent
on the researcher's interpretation (for example, in the analysis of interview data
or case study information). Although this fact allows for research to reflect the
complexity of a particular situation or the knowledge of the researcher, it can also
allow the researcher's subjective opinions to bias the information presented or
the conclusion drawn. In such cases, the study becomes more reflective of the
researcher's opinions than of the actual data, presenting issues with validity.
Ability to Generalize Results
o One significant limitation of qualitative research involves the ability to generalize
results to other populations. Because qualitative research is often exploratory
and often tailored to the needs of one population (as when a researcher adapts
an interview question to a participant's prior knowledge, or when case-study
analysis is specific to the person or situation under study), it is difficult to
extrapolate findings to more broad populations or to draw general or far-reaching
conclusions from the findings of a qualitative study. For example, one might
conduct a case study which finds that teachers at a particular school have all
articulated a need for more training in technology. Although the findings might be
valid for that particular school, it is impossible, from that single case study, to
draw a wider conclusion and state that all teachers, everywhere, need more
training in technology. Your study, because it is so specific to that school, only
indicates something about teachers at that school.
Wider Implications
o In the same way, qualitative research has limitations with respect to wider or
broader implications. Because qualitative research is specific to one setting and
is not generalizable, it is difficult or impossible to make broad, sweeping
recommendations (such as recommendations for policy change) based on the
outcome of the research. To use the example provided in the previous
paragraph, one could not use a case study of a single school to formulate a
broad policy recommendation to provide all teachers with increased technology
training. Because qualitative research provides in-depth answers about one, very
specifically defined individual or group, it does not provide assurance that
findings can transfer across individuals or groups.
Reliability
o Similar to the challenges surrounding wider implications and generalizable
results, qualitative research presents an additional set of issues involving
reliability, or the ability to reproduce the study with consistent results. Because
qualitative research heavily depends on the researcher's knowledge and
interpretation, it is questionable that another researcher, replicating a qualitative
study, would achieve the same results -- he might make different decisions about
interpretation, might ask interview questions in a different way, or might even
change the design halfway through the study, based on perceptions of the
participants' needs. This variation can radically change the results of a study and
can make study results inconsistent even if two studies have the same approach.