Essential Quantitative Methods for Business, Management and Finance, Third Edition

by Oakshott

• ISBN13: 9781403949912
• ISBN10: 1403949913
• Edition: 3rd
• Format: Paperback
• Copyright: 2006-04-18
• Publisher: Palgrave Macmillan

Summary

A concise, accessible, comprehensive introduction to quantitative techniques emphasizing business relevance and discussing the challenges of problem-solving in the real world. Written for a diverse range of abilities, coverage includes chapters on revision mathematics, investment appraisal, decision-making and simulation. Excel and SPSS are integrated throughout.

Author Biography

Les Oakshott teaches at Warwick Business School and the University of Southampton.

Table of Contents

Preface to the third edition	ix
Notes to the third edition	xi
Acknowledgements	xii
Part I Mathematical applications
Revision mathematics	3	(14)
Introduction	4	(1)
Number and number operations	4	(1)
Decimals, fractions and percentages	5	(2)
Powers and roots	7	(1)
Elementary algebra	7	(3)
Indices and logs	10	(2)
Mathematical symbols	12	(1)
Graphs and straight lines	13	(1)
Solving linear equations graphically	14	(1)
Solving linear equations simultaneously	15	(1)
Inequations	15	(1)
Further reading	16	(1)
Keeping up with change: index numbers	17	(16)
Quantitative methods in action: Is the demand for oil increasing?	18	(2)
Introduction	20	(1)
Simple indices	20	(3)
Weighted aggregate indices	23	(4)
Retail price index	27	(2)
Key points	29	(1)
Reflection	29	(1)
Further reading	30	(1)
Exercises	30	(3)
Choosing wisely: investment appraisal	33	(26)
Quantitative methods in action: Bank One credit cards	34	(1)
Introduction	35	(1)
Measures of investment worth	35	(2)
Traditional methods for comparing projects	37	(1)
Discounted cash flow techniques	38	(9)
Other applications of the compound interest formula	47	(6)
Key points	53	(1)
Reflection	53	(1)
Further reading	54	(1)
Exercises	54	(5)
Part II Collecting and interpreting data
Collecting data: surveys and samples	59	(22)
Quantitative methods in action: The British Government's 10-year plan for transport	60	(2)
Introduction	62	(1)
The basics of sampling	62	(3)
Questionnaire design	65	(2)
Simple random sampling	67	(3)
Stratified sampling	70	(1)
Multi-stage sampling	70	(3)
Cluster sampling	73	(1)
Systematic sampling	73	(1)
Quota sampling	74	(1)
Other sampling methods	75	(1)
Secondary sources of data	76	(1)
Reflection	76	(1)
Key points	77	(1)
Further reading	78	(1)
Exercises	78	(3)
Finding patterns in data: charts and tables	81	(42)
Quantitative methods in action: Do British people work longer hours than people in other EU countries?	82	(2)
Introduction	84	(1)
Data classification	84	(2)
Tabulation of data	86	(7)
Diagrammatic representation of data	93	(11)
Creating charts with Excel	104	(4)
Creating charts with SPSS	108	(9)
Reflection	117	(1)
Key points	118	(1)
Further reading	119	(1)
Exercises	119	(4)
Making sense of data: averages and measures of spread	123	(42)
Quantitative methods in action: The UK National Census 2001	124	(2)
Introduction	126	(1)
Measures of location	126	(11)
Measures of spread	137	(1)
The variance and standard deviation	138	(4)
The variance and standard deviation for a frequency distribution	142	(2)
Coefficient of variation	144	(1)
Box and whisker plots	144	(1)
Automatic methods of calculating measures of location and spread	145	(6)
Using SPSS to calculate summary statistics	151	(4)
Reflection	155	(1)
Key points	156	(1)
Further reading	157	(1)
Exercises	157	(8)
Part III Probability and statistics
Taking a chance: probability	165	(23)
Quantitative methods in action: How to win a million!	166	(2)
Introduction	168	(1)
Basic ideas	168	(2)
The probability of compound events	170	(3)
Conditional probability	173	(1)
Tree diagrams	174	(3)
Bayes' theorem	177	(4)
Permutations and combinations	181	(2)
Expected value	183	(1)
Key points	184	(1)
Reflection	184	(1)
Further reading	185	(1)
Exercises	185	(3)
The shape of data: probability distributions	188	(33)
Quantitative methods in action: Which is safer, flying or driving?	189	(2)
Introduction	191	(1)
Discrete and continuous probability distributions	191	(2)
The binomial distribution	193	(7)
The Poisson distribution	200	(4)
The normal distribution	204	(12)
Reflection	216	(1)
Key points	217	(1)
Further reading	217	(1)
Exercises	217	(4)
Interpreting with confidence: analysis of sample data	221	(18)
Quantitative methods in action: Voting intention prior to the UK 2005 general election	222	(1)
Introduction	223	(1)
Samples and sampling	223	(1)
Point estimates	224	(1)
Sampling distribution of the mean	225	(2)
Confidence intervals for a population mean for large samples	227	(3)
Confidence intervals for a population mean for small samples	230	(2)
Confidence interval of a percentage	232	(1)
Calculation of sample size	233	(2)
Finite populations	235	(1)
Reflection	235	(1)
Key points	236	(1)
Further reading	236	(1)
Exercises	236	(3)
Checking ideas: testing a hypothesis	239	(40)
Quantitative methods in action: The Northern Ireland seat-belt survey	240	(1)
Introduction	241	(1)
The purpose of hypothesis testing	241	(1)
Large sample test for a population mean	242	(5)
Small sample test for a population mean	247	(2)
The Z-test for a population percentage	249	(2)
Hypothesis tests involving two population means	251	(8)
Hypothesis tests involving two population percentages	259	(1)
The chi-square hypothesis test	260	(7)
SPSS and the chi-square test	267	(5)
Reflection	272	(1)
Key points	273	(1)
Further reading	274	(1)
Exercises	274	(5)
Cause and effect: correlation and regression	279	(34)
Quantitative methods in action: Could the result of a US presidential election be predicted?	280	(1)
Introduction	281	(1)
Scatter diagrams	281	(3)
Correlation	284	(7)
Linear regression	291	(1)
The method of least squares	292	(2)
Coefficient of determination	294	(1)
Automatic methods of analysing bivariate data	294	(5)
SPSS and scatter diagrams	299	(1)
SPSS and linear regression	299	(5)
Reflection	304	(1)
Key points	305	(1)
Further reading	305	(1)
Exercises	305	(8)
Part IV Decision-making techniques
How to make good decisions	313	(38)
Quantitative methods in action: Health service review	314	(1)
Introduction	315	(1)
Payoff tables	315	(4)
Decision trees	319	(12)
Utility	331	(3)
Multi-attribute decision-making	334	(9)
Key points	343	(1)
Reflection	343	(1)
Further reading	344	(1)
Exercises	344	(7)
Forecasting: time series analysis	351	(30)
Quantitative methods in action: Forecasting in the utility industries	352	(1)
Introduction	353	(1)
The decomposition model	353	(2)
Isolating the trend	355	(4)
Isolating the seasonal component	359	(5)
Analysis of errors	364	(4)
Seasonally adjusted series	368	(2)
Forecasting using the decomposition model	370	(1)
Exponential smoothing	371	(2)
Using spreadsheets in time series analysis	373	(4)
Key points	377	(1)
Reflection	377	(1)
Further reading	378	(1)
Exercises	378	(3)
Making the most of things: linear programming	381	(25)
Quantitative methods in action: Crew recovery at Continental Airlines	382	(1)
Introduction	383	(1)
Basics of linear programming	383	(1)
Model formulation	383	(2)
Graphical solution of linear programming problems	385	(1)
Finding the optimum -- the isoprofit/cost method	386	(3)
Finding the optimum -- an alternative method	389	(1)
Tight and slack constraints	390	(1)
Sensitivity analysis	390	(4)
Minimisation problems	394	(2)
Using Excel's `Solver' to solve linear programming problems	396	(4)
Key points	400	(1)
Reflection	401	(1)
Further reading	401	(1)
Exercises	402	(4)
Planning large projects: network analysis	406	(22)
Quantitative methods in action: How did they build that? The Second Severn Crossing	407	(1)
Introduction	408	(1)
The activity-on-node method	408	(4)
The float of an activity	412	(1)
Resource scheduling	413	(3)
Cost scheduling	416	(4)
Key points	420	(1)
Reflection	421	(1)
Further reading	421	(1)
Exercises	421	(7)
Managing stock levels: materials management and inventory control	428	(14)
Quantitative methods in action: Tesco's in-store ordering	429	(1)
Introduction	430	(1)
Costs of holding stock	430	(1)
The Economic Order Quantity (EOQ) model	431	(5)
Discounts	436	(1)
Uncertainty in demand	436	(3)
Key points	439	(1)
Reflection	439	(1)
Further reading	440	(1)
Exercises	440	(2)
Taking account of randomness	442	(17)
Quantitative methods in action: Car body production at PSA Peugeot Citroen	443	(1)
Introduction	444	(1)
Queuing problems	444	(2)
Random numbers	446	(2)
Tabular simulation	448	(2)
Accuracy of simulation results	450	(1)
Spreadsheet simulation	450	(4)
Key points	454	(1)
Reflection	454	(1)
Further reading	455	(1)
Exercises	455	(4)
Appendix 1: Statistical tables	459	(12)
Appendix 2: Mathematical and statistical formulae	471	(8)
Index	479