Cost-Benefit Analysis
A cost-benefit analysis is a common type of business decision-making tool that involves quantitative reasoning. In a cost benefit analysis, managers decide the best course of action out of two or more possible courses of action by attributing values to the expected benefits of different courses of action and comparing those values. For example, if a company is trying to decide whether to spend its money on launching a new product or spending more toward advertising current products, it might conduct a cost-benefit analysis to estimate how much profit it could expect from each course of action and then choose the course that is expected to produce more profit.
Break-Even Analysis
A break-even analysis is a quantitative inquiry businesses make to determine how many units of a certain product they must sell in order to break even. Breaking even means that a company covers all of its costs but does not make a profit. A company must at least meet the break-even point to avoid losing money.
Related Reading: Quantitative Data Interpretation
Statistical Analysis
A statistical analysis is any study of numerical data that draws conclusions from the data. For example, a company might collect data on whether customers who enter a store actually purchase goods and which goods they purchase. If a statistical analysis shows that only 30 percent of customers who enter a store purchase goods but that the majority of those who buy goods purchase a certain product that is located in the back of the store, the business might decide to move the popular product the front in an effort to increase sales.
Feasibility Study
A feasibility study is an examination into whether a certain new business or project is actually capable of being carried out and achieving profitability. A feasibility study may involve quantitative analysis, such as determining whether a certain project has the potential to produce profit based on the expected costs of producing the product and the price the company expects to charge for the product.
Cost-Benefit AnalysisA cost-benefit analysis is a common type of business decision-making tool that involves quantitative reasoning. In a cost benefit analysis, managers decide the best course of action out of two or more possible courses of action by attributing values to the expected benefits of different courses of action and comparing those values. For example, if a company is trying to decide whether to spend its money on launching a new product or spending more toward advertising current products, it might conduct a cost-benefit analysis to estimate how much profit it could expect from each course of action and then choose the course that is expected to produce more profit.Break-Even AnalysisA break-even analysis is a quantitative inquiry businesses make to determine how many units of a certain product they must sell in order to break even. Breaking even means that a company covers all of its costs but does not make a profit. A company must at least meet the break-even point to avoid losing money.Related Reading: Quantitative Data InterpretationStatistical AnalysisA statistical analysis is any study of numerical data that draws conclusions from the data. For example, a company might collect data on whether customers who enter a store actually purchase goods and which goods they purchase. If a statistical analysis shows that only 30 percent of customers who enter a store purchase goods but that the majority of those who buy goods purchase a certain product that is located in the back of the store, the business might decide to move the popular product the front in an effort to increase sales.Feasibility StudyA feasibility study is an examination into whether a certain new business or project is actually capable of being carried out and achieving profitability. A feasibility study may involve quantitative analysis, such as determining whether a certain project has the potential to produce profit based on the expected costs of producing the product and the price the company expects to charge for the product.
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