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Quantitative Analysis: CPA CCP Cifa

This document provides an outline of the content covered in the Quantitative Analysis section of the KASNEB July 2018 syllabus. It includes 9 main topics: 1) basic mathematical techniques, 2) probability, 3) hypothesis testing and estimation, 4) correlation and regression analysis, 5) time series, 6) linear programming, 7) decision theory, 8) game theory, and 9) network planning and analysis. Each topic lists the key concepts and methods covered within that section of the syllabus.

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0% found this document useful (0 votes)
482 views5 pages

Quantitative Analysis: CPA CCP Cifa

This document provides an outline of the content covered in the Quantitative Analysis section of the KASNEB July 2018 syllabus. It includes 9 main topics: 1) basic mathematical techniques, 2) probability, 3) hypothesis testing and estimation, 4) correlation and regression analysis, 5) time series, 6) linear programming, 7) decision theory, 8) game theory, and 9) network planning and analysis. Each topic lists the key concepts and methods covered within that section of the syllabus.

Uploaded by

Timo Paul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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QUANTITATIVE ANALYSIS

CPA
CCP
CIFA

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PART II

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Section 4

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STUDY TEXT

KASNEB JULY 2018 SYLLABUS

Revised on: January 2019


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
• Constrained Optimisation; lagrangian multiplier

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- Integration

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• Rules of integration

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• Applications of integration to business problems

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2. Probability

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Set theory

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- Types of sets 07 om
- Set description: Enumeration and descriptive properties of sets
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- 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

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QUANTITATIVE ANALYSIS

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)
- 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)

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• Simple and multiple linear regression analysis

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5. Time series

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- Definition of time series

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- Components of time series (circular, seasonal, cyclical, irregular/ random, trend)

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- Application of time series

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- Methods of fitting trend: free hand, semi-averages, moving averages, least squares

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- Models- additive and multiplicative models
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- 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

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QUANTITATIVE ANALYSIS

- 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

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

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9. Network planning and analysis

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- Basic concepts - network, activity, event

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- Activity sequencing and network diagram

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- Critical path analysis (CPA)

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- Float and its importance

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- Crashing of activity/project completion time

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- Resource scheduling (levelling) and Gantt charts
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- 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

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QUANTITATIVE ANALYSIS

CONTENT PAGE

Topic 1: Basic mathematical techniques……………………………………………… …..…6


Topic 2: Probability………………………………………………………………………….100
Topic 3: Hypothesis testing and estimation…………………………………………………151
Topic 4: Correlation and regression analysis…………………………………………….….162
Topic 5: Time series……………………………………………………………………..…..199

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Topic 6: Linear programming………………………………………………………………..227

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Topic 7: Decision theory………………………………………………………………..……280

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Topic 8: Game theory………………………………………………………...……………...301

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Topic 9: Network planning and analysis………………………………………… ….……..310

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Topic 10: Queuing theory………………………………………………...…………..….…..330

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Topic 11: Simulation…………………………………………………...……………….……345

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Topic 12: Emerging issues and trends

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