Institute of Commercial Management | Qualification Subject

Quantitative Methods for Managers

Main Topics of Study

Data Presentation and Collection

  • Frequency distribution
  • Frequency tables
  • Discrete or continuous data
  • Histograms
  • Frequency polygon
  • Frequency curve
  • Cumulative frequency curves
  • Bar charts and pie charts
  • Lorenz curve

Central Location and Dispersion

  • Notation
  • Measures of central location
  • Normal and skewed distribution
  • Measures of dispersion
  • Coefficient of variation

Regression and Correlation

  • Regression analysis
  • Correlation
  • Spearman’s coefficient of rank correlation
  • Multiple regression

Time Series and Forecasting

  • Time series analysis
  • Moving average
  • Finding the trend
  • Finding and eliminating the seasonal variation
  • Forecasting: time series
  • Forecasting: exponential smoothing

Probability

  • Probability calculations
  • Mutually exclusive events: OR rule
  • Venn diagrams: events not mutually exclusive
  • Independent events: AND rule
  • Conditional probability
  • Decision trees
  • Expected value
  • Permutations and combinations

Probability Distributions

  • Normal distribution
  • Standard normal distribution
  • Binomial distribution
  • Poisson distribution

Sampling and Tests of Hypotheses

  • Types of sample
  • Distribution of sample means
  • Central limit theorem
  • Confidence intervals
  • Tests of hypotheses: principles
  • Tests of hypotheses: practice
  • Student distribution

Index Numbers

  • Constructing an index number
  • Weighted aggregate index numbers
  • The Laspeyres (base-weighted) price index
  • The Paasche (current-weighted) price index
  • The Laspeyres (base-weighted) quantity index
  • The Paasche (current-weighted) quantity index
  • Changing the base year
  • Price and quantity relative index numbers
  • The Retail Price Index (RPI)

Time Value of Money

  • Simple and compound interest
  • Discounting and present value
  • Investment appraisal
  • Depreciation
  • Annuities and other financial instruments

Linear Programming and Break-Even Analysis

  • Linear programming
  • Solving the linear programme: maximisation
  • Solving the linear programme: minimisation
  • Break-even analysis

Calculus and Business Applications

  • Differentiation
  • Turning points
  • Rules for differentiation
  • Applications of differentiation
  • Partial differentiation
  • Integration

Basic Mathematics

  • Whole numbers, fractions and decimals
  • Rounding-off
  • Percentages and ratio
  • Powers and roots
  • Simple algebra
  • Solving equations
  • Simultaneous equations
  • Inequalities
  • Graphs and functions
  • Progressions

Recommended Reading

Main Text:

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Quantitative Methods for Business & Economics, Second Edition – Glyn Burton, George Carrol, & Stuart Wall (Financial Times-Prentice Hall, ISBN 0-273-65570-1)

Indicative Text:

Alternative Text and Further Reading:

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Statistics for Marketing & Business – R Galloway (Stanley Thomas)

A First Course in Statistics – D Booth (DP Publications)