Quantitative Methods Module
Quantitative Methods Module
IT 224
QUANTITATIVE METHODS
INCLUDING MODELING AND SIMULATION
Prepared By:
Jessica Rose E. Fernandez, Ph.EdD
Introduction
various fields, including economics, finance, social sciences, and natural sciences,
helping professionals and researchers transform raw data into valuable
information.
longitudinal Studies
1. Purpose: To track changes over time.
2. Method: Data is collected from the same subjects repeatedly over a
prolonged period.
3. Application: Useful in developmental psychology, education, and health
sciences to study changes across the lifespan or the effects of long-term
interventions.
numerical data. This data can be easily quantified and subjected to statistical
analysis, allowing for precise and objective conclusions.
3. Statistical Analysis: Quantitative methods employ statistical techniques to
analyze data. This includes descriptive statistics to summarize the data and
inferential statistics to make predictions or test hypotheses.
4. Objective Methodology: This approach is designed to maintain objectivity and
minimize researcher bias. The research process is often detached from the
researcher, allowing for findings independent of personal feelings or beliefs.
5. Control and Manipulation of Variables: In experimental designs, quantitative
research involves manipulating variables to observe effects on dependent
variables. This helps establish causal relationships.
6. Large Sample Sizes: Quantitative studies often require large sample sizes to
ensure the reliability of results and the ability to generalize findings to a
broader population.
7. Replicability: Due to its structured nature, quantitative research can be
replicated in other settings, allowing for the validation of results through
repeated studies.
8. Generalizability: One aim of quantitative research is to produce findings that
can be generalized to larger populations. This is achieved through the
selection of representative samples and the application of standardized
procedures.
Applications of Quantitative Method
Quantitative methods are widely applied across various fields and disciplines
because they provide reliable, objective, and generalizable results. Here are some
prominent applications:
1. Business and Economics
Market Research: Businesses use quantitative methods to understand market
trends, consumer preferences, and buying behaviors, helping them make
informed decisions about product launches, marketing strategies, and pricing.
Financial Analysis: Economists and analysts use quantitative techniques to
predict market movements, assess investment risks, and evaluate economic
policies.
2. Healthcare
Clinical Trials: Quantitative methods are essential in testing the efficacy and
safety of new drugs and medical treatments through controlled experiments
and statistical analysis.
Epidemiology: Researchers employ these methods to understand the patterns,
causes, and effects of health and disease conditions in defined populations.
3. Social Sciences
Sociology and Psychology: Quantitative studies help in understanding social
phenomena, measuring attitudes, examining behavioral patterns, and testing
psychological theories.
Political Science: Quantitative analysis is used to gauge public opinion, predict
Introduction
Quantitative data analysis involves various techniques that allow researchers to
derive meaningful insights from numerical data. This process is crucial in validating
hypotheses, exploring relationships between variables, and making informed
decisions based on statistical evidence.
Here’s an overview of the key steps and methods used in quantitative data analysis:
Steps in Quantitative Data Analysis:
Data Collection: Gathering numerical data through surveys, experiments, or
secondary data sources.
Data Cleaning: Removing or correcting inaccurate, incomplete, or irrelevant
data to ensure consistency and reliability in the analysis.
Descriptive Statistics: Summarizing and describing the basic features of the data
using measures such as mean, median, mode, standard deviation, and range.
Data Visualization: Using graphs, charts, and plots to visually represent the data,
making it easier to identify patterns, trends, and outliers.
Statistical Testing
Inferential Statistics: Applying statistical tests to infer properties about a
population from the sample data. Common tests include t-tests, chi-square
tests, and ANOVA.
Regression Analysis: Examining relationships between dependent and
independent variables. This can be linear regression for two or multiple
regression for more than two variables.
Interpretation of Results: Drawing conclusions from the data analysis and
deciding how to apply or implement the results.
Reporting: Presenting the findings in a structured format, often accompanied by
charts, graphs, and detailed explanations of the statistical methods used.
Common Quantitative Analysis Methods
Parametric Tests: These assume a normal data distribution and include tests
like t-tests and ANOVA, which are suitable for comparing means or proportions
from the hard sciences to the social sciences—and are adaptable to various
data types and research questions. Quantitative methods provide valuable
insights in health research, market analysis, education, or environmental
studies.
Conclusion
Quantitative methods offer a robust framework for analyzing and interpreting
data across various disciplines. From enhancing business decision-making
processes to advancing scientific research, these techniques empower
professionals to derive meaningful insights from complex datasets.
Module 3: Descriptive Statistics
3.1 Introduction
Statistics very often involves the collection of data. There are many ways to obtain
data, and the World Wide Web is one of them. The advantages and disadvantages of
common data collecting method are discussed below.
Postal Questionnaire
The principal advantages are:
The apparent low cost compared with other methods although the cost per
Other persons' opinions may be given e.g. by a wife consulting per husband.
No control is possible over the speed of the reply.
A poor "response rate" (a low percentage of replies) will be obtained.
The fact that only simple questions can be asked and the possibility of a poor
response rate are the most serious disadvantages and are the reasons why other
methods will be considered. Only simple questions can be asked because there is
nobody available to help the respondent if they do not understand the question.
The respondent may supply the wrong answer or not bother to answer at all. If a
poor response rate is obtained only those that are interested in the subject may
reply and these may not reflect general opinion. The postal questionnaire has been
used successfully on a number of topics by the Social Survey Unit, and in the U.S.A.
there are a number of market research companies who specialize in this technique.
Telephone Interviewing
The main advantages are :
It is cheaper than personal interviews but tends to be dearer on average than
postal questionnaires.
It can be carried out relatively quick.
Help can be given if the person does not understand the question as worded.
The telephone can be used in conjunction with other survey methods, e.g. for
encouraging replies to postal surveys or making appointments for personal
interviews.
Spontaneous answers can be obtained.
the person who is replying, particularly with regard to age and social class.
The questionnaire cannot be too long or too involved.
A trained person may assess the person being interviewed in terms of age and
social class and area of residence, and even sometimes assess the accuracy of
the information given (e.g. by checking the pantry to see if certain goods are
really there).
Help can be given to those respondents who are unable to understand the
questions, although great care has to be taken that the interview's own feelings
do not enter into the wording of the question and so influence the answers of
the respondents.
A well-trained interviewer can persuade a person to give an interview who
might otherwise have refused on a postal or telephone enquiry, so that a
higher response rate, giving a more representative cross-section of views, is
obtained.
A great deal more information can be collected than is possible by the previous
methods. Interviews of three quarters of an hour are commonplace, and a
great deal of information can be gathered in this time.
Its main disadvantages are:
It is far more expensive than either of the other methods because interviewers
have to be recruited, trained and paid a suitable salary and expenses.
The interviewer may consciously or unconsciously bias the answers to the
question, in spite of being trained not to do so.
Persons may not like to give confidential or embarrassing information at a face
to-face interview.
In general, people may tend to give information that they feel will impress the
Observation
This may be carried out by trained observers, cameras, or closed-circuit television.
Observation may be used in widely different fields; for example, the
anthropologist who goes to live in a primitive society, or the social worker who
becomes a factory worker, to learn the habits and customs of the community they
are observing. Observation may also be used in "before and after" studies, e.g. by
observing the "traffic" flow in a supermarket before and after making changes in
the store layout.
In industry many Work Study techniques are based upon observing individuals or
groups of workers to establish the system of movements they employ with a view
to eliminating wasteful effort. If insufficient trained observers are available, or the
movements are complicated, cameras may be used so that a detailed analysis can
be carried out by running the film repeatedly. Quality control checks and the
branch of market research known as retail audits may also be regarded as
observation techniques.
observer.
It is often difficult in practice to obtain a truly random sample of persons or
events.
It is difficult to predict future behavior on pure observation.
It is not possible to observe actions which took place before the study was
contemplated.
Opinions and attitudes cannot usually be obtained by observation.
In marketing, the frequency of a person's purchase cannot be obtained by pure
observation. Nor can such forms of behaviour as church-going, smoking and
crossing roads, except by employing a continuous and lengthy (and hence
detectable) period of observation.
Reports and Published Statistics
When data is used for the purpose for which it was originally collected it is known
as primary data; when it is used for any other purpose subsequently, it is termed
secondary data. For example, if a company Buyer obtains quotations for the price,
delivery date and performance of a new piece of equipment from a number of
suppliers with a view to purchase, then the data as used by the Buyer is primary
data. Should this data later be used by the Budgetary Control department to
estimate price increases of machinery over the past year, then the data is
secondary.
those desired, e.g. a company which wishes to estimate its share of the
"fertilizer" market will find that the government statistics included lime under
"fertilizers".
The sample size may have been too small for reliable results, or the method of
selecting the sample a poor one.
The wording of the questions may have been poor, possibly biasing the results.
No control is possible over the quality of the collecting procedure, e.g. by
seeing that measurements were accurate, questions were properly asked and
calculations accurate.
However, the advantage of secondary data, when available and appropriate, is that
a great deal of time and money may be saved by not having to collect the data
oneself. Indeed, in many cases, for example with import-export statistics, it may be
impossible for a private individual or company to collect the data which can only
be obtained by the government.
A graph is a method of presenting statistical data in visual form. The main purpose
of any chart is to give a quick, easy-to-read-and-interpret pictorial representation
of data which is more difficult to obtain from a table or a complete listing of the
data. The type of chart or graphical presentation used and the format of its
construction is incidental to its main purpose. A well-designed graphical
presentation can effectively communicate the data's message in a language
readily understood by almost everyone. You will see that graphical methods for
describing data are intuitively appealing descriptive techniques and that they can
be used to describe either a sample or a population, quantitative or qualitative
data sets.
Some basic rules for the construction of a statistical chart are listed below:
Every graph must have a clear and concise title which gives enough identification of the
graph.
Each scale must have a scale caption indicating the units used.
The zero point should be indicated on the co-ordinate scale. If, however, lack of space
makes it inconvenient to use the zero-point line, a scale break may be inserted to indicate
its omission.
Each item presented in the graph must be clearly labelled and legible even in black and
white reprint.
There are many varieties of graphs. The most commonly used graphs are described as below.
Pie chart - Pie charts are widely used to show the component parts of a total. They are
popular because of their simplicity. In constructing a pie chart, the angles of a slice from
the center must be in proportion with the percentage of the total. The following example
of pie charts gives the percentage of education attainment in Hong Kong.
Simple bar chart - The horizontal bar chart is also a simple and popular chart. Like the pie
chart, the simple horizontal bar chart is a one-scale chart. In constructing a bar chart, it is
noted that the width of the bar is not important, but the height of the bar must be in
proportion with the data. The following bar chart gives the monthly household income of
Hong Kong.
Two-directional bar chart - A bar chart can use either horizontal or vertical
bars. A two-directional bar chart indicates both the positive and negative
values. The following example gives the top 5 cities which have the highest/
lowest recorded temperature.
Multiple bar chart - A multiple bar chart is particularly useful if one desires to
make quick comparison between different sets of data. In the following
example, the marital status of male and female in Hong Kong are compared
using multiple bar char.
Component bar chart - A component bar chart subdivides the bars in different
sections. It is useful when the total of the components is of interest. The
following example gives the nutritive values of food.
in 100 successive 20-minute time periods. The observations are listed below.
In this example, the class marks of the traffic-count distribution are 7, 12, 17, …, 32
and 37.
Histogram
Notes :
1. The vertical lines of a histogram should be the class boundaries.
2. The range of the random variable should constitute the major portion of the
graphs of frequency distributions. If the smallest observation is far away from
zero, then a 'break' sign ( ) should be introduced in the horizontal axis.
Frequency Polygon
Another method to represent frequency distribution graphically is by a frequency
polygon. As in the histogram, the base line is divided into sections corresponding to
the class-interval, but instead of the rectangles, the points of successive class marks
are being connected. The frequency polygon is particularly useful when two or more
distributions are to be presented for comparison on the same graph.
Frequency Curve
A frequency curve can be obtained by smoothing the frequency polygon.
Cumulative Frequency Distribution and Cumulative Polygon
Sometimes it is preferable to present data in a cumulative frequency distribution,
which shows directly how many of the items are less than, or greater then, various
values.
Example 3
Relative Frequency
probability curve if the total area under the curve be set to 1. Hence the area
under the relative frequency curve between a and b is the probability between
interval a and b.
3.7 Central Tendency
When we work with numerical data, it seems apparent that in most set of data
there is a tendency for the observed values to group themselves about some
interior values; some central values seem to be the characteristics of the data.
This phenomenon is referred to as central tendency. For a given set of data, the
measure of location we use depends on what we mean by middle; different
definitions give rise to different measures. We shall consider some more
commonly used measures, namely arithmetic mean, median and mode. The
formulas in finding these values depend on whether they are ungrouped data or
grouped data.
Arithmetic Mean
The arithmetic population mean, µ, or simply called mean, is obtained by adding
together all of the measurements and dividing by the total number of
measurements taken. Mathematically it is given as
Arithmetic mean can be used to calculate any numerical data and it is always
unique. It is obvious that extreme values affect the mean. Also, arithmetic mean
ignores the degree of importance in different categories of data.
Example 4
Given the following set of ungrouped data:
20, 18, 15, 15, 14, 12, 11, 9, 7, 6, 4, 1
Median
Median is defined as the middle item of all given observations arranged in order.
For ungrouped data, the median is obvious. In case of the number of
measurements is even, the median is obtained by taking the average of the
middle.
Example 5
The median of the ungrouped data:
20, 18, 15, 15, 14, 12, 11, 9, 7, 6, 4, 1 is
Mode
Mode is the value which occurs most frequently. The mode may not exist, and
even if it does, it may not be unique.
For ungrouped data, we simply count the largest frequency of the given value. If
all are of the same frequency, no mode exits. If more than one values have the
same largest frequency, then the mode is not unique.