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Assignmemt of QT2

The document provides details about a student named Ali Ahmad enrolled in the 1st semester of an MBA program, studying Quantitative Techniques. It includes an acknowledgment thanking his professor and friends for their support, and presents his assignment on applying business mathematics to accurate decision making, providing examples like distributing water among containers and calculating the distance a bird would travel between trains.

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Ali Ahmad
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25 views

Assignmemt of QT2

The document provides details about a student named Ali Ahmad enrolled in the 1st semester of an MBA program, studying Quantitative Techniques. It includes an acknowledgment thanking his professor and friends for their support, and presents his assignment on applying business mathematics to accurate decision making, providing examples like distributing water among containers and calculating the distance a bird would travel between trains.

Uploaded by

Ali Ahmad
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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NAME – ALI AHMAD

CLASS – M.B.A
SEMESTER- IST(FIRST)
SUBJECT –QUANTITATIVE TECHNIQUES
SESSION – 2022-2023
PID NO – 22MBA059
Acknowledgement
I would like to express my deep appreciation to Dr. Pradhuman Singh for his valuable coordination
and support for the substantial outcome of my assignment. At most credit goes to him/her behind the
outcome of the assignment.

Finally, I would like to thank my friends and supporters, without them the assignment would not have
been completed effectively in a short time.
Assignment Of
Quantitative
Techniques
Topic - what is your opinion about the
use of applied mathematics in accurate
decision making support your answer
with one suitable example

How the Use of Business Mathematics Helps in


Decision Making
For making a good and effective decision, you must have accurately driven data.
Business mathematics summarizes and presents data in an accurate form. It
becomes easier for the decision maker to take quick and necessary action
immediately.
The use of business mathematics assists you to make an important decision
based on numerical and measurable scale and not on personal belief and
opinions. The decisions made using statistical studies are more productive.
Using statistical data for analyzing various business activities have several
benefits:

 It simplifies the decision-making process by neglecting complex and


confusing situations.
 It helps in creating a decision model.
 The testing and interpretation of the decision become easier.
 The data driven by using business mathematics can be used again and
again for similar situations.
 Modification becomes easier.

Business mathematics also plays a crucial role in the sales department. When it
comes to making a decision regarding sales and profit margins, business
mathematics is used for determining the accurate cost of the product. It helps in
deciding the fair cost of the product or service so that it can generate a fair
amount of profit.
The decision making task comes with so many responsibilities. It is a critical step
which makes a huge impact in shaping the future of the organization. It is
important to make effective decisions that make development and growth of the
business. Mathematical data and calculation evaluate the quality of information
that is used for making decisions. It can be used for making both big as well as
small decisions. In today’s world, most of the organizations use business
mathematics for decision making because it is becoming very popular. Making
decisions for business has become all about numerical exercise.

Role of Business Mathematics in Decision Making Process


Mathematics is used in almost every aspect of life. It also plays an important role
in business decision making. Business mathematics is used to record and manage
business operations. Many Business activities like accounting, financial analysis,
sales etc. are done by using business mathematics. When we talk about decision
making for business, mathematics plays an important role in it. A businessman
has to take thousands of decisions every day for his business, therefore,
mathematics helps in rationalizing the information and it gives the accurate
results inherent for any decision making.
Mathematics has numerous concepts like statistics, probability, algebra, calculus
etc. that are used in business mathematics. These concepts provide accurate
statistics solutions for various business activities. Mathematics is an important
subject which enhances the knowledge of the person and it also improves
problem-solving skills. The students who are studying business administration
must learn business mathematics because it is used for almost every business
activities.

Example
Given an 8 litre jug full of water and two empty jugs of 5- and 3-litre capacity, get exactly 4 litre of water
in one of the jugs by completely filling up and/or emptying jugs into others. It’s easy but the key is in
finding the optimal solution with least number of moves.

Another example

The simplicity of the problem, keep it simple. Knowledge of big formulae and strategies can in fact
sometime slow down the decision making, it’s better to start and assume simplicity in the problem. This
problem of the flight of the bird will illustrate how solving can be simplified. A train leaves City X for City
Y which are 350 km apart, at 15 kmph. At the very same time, a train leaves City Y for City X at 20 kmph
on the same track. At the same moment, a bird leaves the City X train station and flies towards the City Y
train station at 25 kmph. When the bird reaches the train from City Y, it immediately reverses direction.
It then continues to fly at the same speed towards the train from City X, when it reverses its direction
again, and so forth. The bird continues to do this until the trains collide. How far would the bird have
traveled in the meantime? Knowledge of mathematics can slow down the time taken for solving, as it is
natural to start summing the infinite series. But if the mind keeps it simple, it’s really that simple, Time
elapsed before trains collide can be estimated by dividing total distance 350km by the relative speed of
trains i.e., 15+20=35 kmph. Thus it is 10 hours. So before colliding the bird would have flown for 10
hours i.e. 10×25=250 km. STRAIGHT and SIMPLE. The story goes that John von Neumann, a pioneer of
computer science was asked a similar problem and he solved it using infinite series.

EXAMPLE 2
Decision Tree:
Another increasingly useful tool for management decision-makers is
the so called decision tree. This is basically a conceptual map of
possible decisions and outcomes in a particular situation. It is useful in
cases where a manager is required to make a number of sequential
decisions i.e., where earlier decisions will affect later ones.

A simple decision tree appears below:

The above diagram focuses attention on outcomes or consequences as


well as decisions. These outcomes can be further elaborated in terms
of their probability and their anticipated pay off. It is also possible to
add a time dimension to the whole diagram, so that, for example in
Fig. 18.3 the period from decision point 1 to decision point 2 could be
one year. These additional features help to make the use of decision
trees a salutary exercise for managers.
EXAMPLE 3

EXAMPLE

Expected Value:
To understand expected value model, it is important to
comprehend the concept of probability which refers to the
likelihood that an event will happen. Mathematically,
probability is expressed as a fraction or percentage.
For example, there is a 30% (or 0.3) probability that it will
rain tomorrow. Probabilities may be established empirically,
by observing some phenomenon over time. When several
courses of action are available and the outcome of each is
uncertain, the decision maker can use probabilities to select
his final choice.

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