Class notes

quantitative analysis

0 purchase

Course
CPA

Institution
CPA

These notes provide a thorough overview of quantitative analysis techniques used in data evaluation and decision-making. Topics include statistical methods, regression analysis, probability, hypothesis testing, and data modeling. The material covers essential concepts such as descriptive and infere...

[Show more]

Preview 4 out of 366 pages

View example

Uploaded on August 12, 2024
Number of pages 366
Written in 2024/2025
Type Class notes
Professor(s) Patrick
Contains All classes

statistics methods
data analysis
probability
forecating
datamodelling
quanyitative analysis

$10.49

Add to cart

Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

QUANTITATIVE ANALYSIS

CPA
CCP
CIFA

PART II

SECTION 4

STUDY TEXT

, QUANTITATIVE ANALYSIS

CONTENT

1. Basic mathematical techniques
Functions
- Functions, equations and graphs: Linear, quadratic, cubic, exponential and logarithmic
- Application of mathematical functions in solving business problems

Matrix algebra
- Types and operations (addition, subtraction, multiplication, transposition, and inversion)
- Application of matrices: statistical modelling, Markov analysis, input- output analysis and
general applications

Calculus
- Differentiation
• Rules of differentiation (general rule, chain, product, quotient)
• Differentiation of exponential and logarithmic functions
• Higher order derivatives: Turning points (maxima and minima)
• Ordinary derivatives and their applications
• Partial derivatives and their applications
- Integration
• Rules of integration
• Applications of integration to business problems

2. Probability
Set theory
- Types of sets
- Set description: Enumeration and descriptive properties of sets
- Operations of sets: Union, intersection, complement and difference
- Venn diagram
Probability theory and distribution Probability theory
- Definitions: Event, outcome, experiment, sample space
- Types of events: Elementary, compound, dependent, independent, mutually exclusive,
exhaustive, mutually inclusive
- Laws of probability: Additive and multiplicative rules - Baye's Theorem
- Probability trees
- Expected value, variance, standard deviation and coefficient of variation using frequency and
probability

Probability distributions
- Discrete and continuous probability distributions (uniform, normal, binomial, poisson and
exponential)
- Application of probability to business problems

3. Hypothesis testing and estimation
- Hypothesis tests on the mean (when population standard deviation is unknown)
- Hypothesis tests on proportions
- Hypothesis tests on the difference between means (independent samples)
- Hypothesis tests on the difference between means (matched pairs)

www.someakenya.co.ke Contact: 0707 737 890 Page 2

, QUANTITATIVE ANALYSIS

- Hypothesis tests on the difference between two proportions

4. Correlation and regression analysis
Correlation analysis
• Scatter diagrams
• Measures of correlation -product moment and rank correlation coefficients (Pearson and
Spearman)
Regression analysis
• Assumptions of linear regression analysis
• Coefficient of determination, standard error of the estimate, standard error of the slope, t
and F statistics
• Computer output of linear regression
• T-ratios and confidence interval of the coefficients
• Analysis of Variances (ANOVA)
• Simple and multiple linear regression analysis

5. Time series
- Definition of time series
- Components of time series (circular, seasonal, cyclical, irregular/ random, trend)
- Application of time series
- Methods of fitting trend: free hand, semi-averages, moving averages, least squares methods
- Models- additive and multiplicative models
- Measurement of seasonal variation using additive and multiplicative models
- Forecasting time series value using moving averages, ordinary least squares method and
exponential smoothing
- Comparison and application of forecasts for different techniques

6. Linear programming
- Definition of decision variables, objective function and constraints
- Assumptions of linear programming
- Solving linear programming using graphical method
- Solving linear programming using simplex method
- Sensitivity analysis and economic meaning of shadow prices in business situations
- Interpretation of computer assisted solutions
- Transportation and assignment problems

7. Decision theory
- Decision process
- Decision making environment - deterministic situation (certainty), analytical hierarchical
approach (AHA), risk and uncertainty, stochastic situations (risk), situations of uncertainty
- Decision making under uncertainty - maximin, maximax, minimax regret, Hurwicz decision
rule, Laplace decision rule
- Decision making under risk - expected monetary value, expected opportunity loss,
minimising risk using coefficient of variation, expected value of perfect information
- Decision trees - sequential decision, expected value of sample information
- Limitations of expected monetary value criteria

www.someakenya.co.ke Contact: 0707 737 890 Page 3

, QUANTITATIVE ANALYSIS

8. Game theory
- Assumptions of game theory
- Zero sum games
- Pure strategy games (saddle point)
- Mixed strategy games (joint probability approach)
- Dominance, graphical reduction of a game
- Value of the game.
- Non zero sum games
- Limitations of game theory

9. Network planning and analysis
- Basic concepts - network, activity, event
- Activity sequencing and network diagram
- Critical path analysis (CPA)
- Float and its importance
- Crashing of activity/project completion time
- Project evaluation and review technique (PERT)
- Resource scheduling (levelling) and Gantt charts
- Limitations and advantages of CPA and PERT

10. Queuing theory
- Components/elements of a queue: arrival rate, service rate, departure, customer behaviour,
service discipline,' finite and infinite queues, traffic intensity
- Elementary single server queuing systems
- Finite capacity queuing systems
- Multiple server queues

11. Simulation
- Types of simulation
- Variables in a simulation model
- Construction of a simulation model
- Monte Carlo simulation
- Random numbers selection
- Simple queuing simulation: Single server, single channel "first come first served" (FCFS)
model
- Application of simulation models

12. Current developments
- Role of advancement in information technology in solving quantitative analysis problems

13. Emerging issues and trends

www.someakenya.co.ke Contact: 0707 737 890 Page 4

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller jamlickmwangiprinzmwas. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $10.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67479 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling