Quantitative Methods in Business also known as Business Statistics is a source of relief for all lovers of practical subjects. Along with Financial Accountancy this is the second subject in your Sem 1 that needs a lot of practice but is also a lot of fun to study. For those who run away from Mathematics don’t worry this subject has statistics involved which is not at all related to the algebra and geometry you fear so this subject is a win- win for everyone.
The name confuses you a bit, as first year students we tend to wonder what would be the use of statistics to a person doing business? For the CEO of a multinational or someone who is an entrepreneur why do we need to know stats? Well the aspects of statistics covered in this chapter are really basic in nature and the understanding of these basic aspects is a must because these observations help us in taking a lot of important business decisions.
When a company wishes to launch a particular product, they are always skeptic whether it will be a success or not, so how do we go about determining whether the product should be launched or not? We take a survey, we take a group of people and ask them whether they would use such a product, why would they use it or why would they not. Simple and basic questions will help the company realize whether to start or just scrap the idea, the analysis of such surveys is what quantities methods in business deals with.
It teaches you the basic statistical techniques used while making business decisions, the essential components of converting primary data into logical conclusion upon analysis to attain certain desired results to help in taking vital business decisions.
Why Do I Have To Study This Subject?
As students of Business Studies, it is very important that we develop an analytical thought process and a logical bent of mind that helps us take decisions which are based on proper analysis and turn out be favorable for the organization. Subjects like Quantitative Methods in Business guide us in developing these qualities within us as individuals.
Knowledge of the basic statistical concepts is also important; in future we may take up any field of specialization for our career but statistics is something that is useful to everyone, a marketing expert may analyze his audience based on the analysis created by using stats and similarly for a HR personnel who may calculate labor turnover ratio using stats and the finance head who may need to know the percentage of expenses in a certain department using the observations by the primary data collected.
Hence, the knowledge of this subject is extremely essential.
Is it a Difficult subject?
No, Quantitative Methods in Business is not at all difficult; it draws its base from all that you had studied for your H.S.C Mathematics and statistics paper. If you have your vase right it will be very easy for you to get good marks in this subject if not then in the BMS syllabus for this subject the chapters included are of very basic nature so you can have a fresh start and develop a good base right away.
Is Quantitative Methods in Business a Boring Subject?
No, Quantitative Methods in Business is a very interesting and fun subject to learn and solve. The advantage being that the concepts are very basic and most of us have done them before so you eventually get all your answers right. For many it is like solving their 12th class sums again and so they love doing them again and again and getting maximum marks in the exams and tests. Even if you are weak with the subject you will enjoy solving the sums.
Do I need to join a Coaching Class for this subject?
It depends on your comfort-level with this subject. If you find this subject very easy and you have a strong base of the concepts then you don’t need to join classes, in case you don’t then joining a coaching class is the right way ahead. There are a lot of private tuition’s available for such subjects but they charge on the higher side so try and find a coaching class with group learning so that you don’t end up spending 7,000-8,000 on a subject that doesn’t really require that much of expenditure.
You can always take help from college seniors or other friends who are comfortable with the subject as the syllabus covered is very basic in nature.
What is the Syllabus for Quantitative Methods in Business?
- Basic Statistical Concepts,
- Summarization of Data: Frequency Distribution; Measures of Central Tendency;
- Measure of Dispersion; Relative Dispersion – Skewness, Kurtosis.
- Elementary Probability Theory: Relative Frequency Approach; Axiomatic Approach:
- Subjective Probability: marginal & Conditional Probability : Independence/Dependence of Events,
- Elementary Statistical Distributions: Binomial, Poisson, Normal, Sampling, Estimation;
- Point and Interval, Sampling Distribution mean and proportion, Testing of Hypothesis,
- Simple correlation and regression, Spearman’s rank correlation
- Types of sampling, simple and random sampling, stratified sampling and cluster sampling,
- Time series – Components of Time Series. Estimation of Trends and Seasonal Components.
How Do I Study this Subject?
“Studying this subject has everything to do with practice, practice and more practice” says Hiren Kacha a Maths lover and a private tutor for the subject. “Students these days have issues with having their basic concepts being weak in this subject, so they have to work really hard in order to get their concepts correct. Another issue they face is of incorrect calculations and silly mistakes which need more attention. Scoring marks is very easy if you know your techniques well and you have practiced them well.” He adds.
Bhumi Desai, a BMS Alumni says, “it is only practice that will help you clear this subject with ease. I myself was an S.P student in my 12th standard and had no knowledge of the subject. After every lecture I used to burst into tears thinking about how I would clear the K.T in this subject as passing in the first attempt was something I knew would never happen. Just like what Hiren Sir said it’s all about the concepts, he helped me out by setting my concepts right and helped me build a strong basic understanding of the subject, and the result was surprising, not only did I score well, but managed an A grade in Quantitative Methods in Business, which would have been impossible if I had not put in the hours of practice.”
So now that we know it’s all about the practice and the concepts lets frame a study schedule which helps us score good marks in this subject.
- Practice this subject for an hour a day without fail every day.
- Start by creating mind maps for each type of sums, every chapter has two or three type of sums and we need to identify those types first.
- Once you are done with that, make a list of the steps to be followed while solving those sums, the basic steps will repeat in all sums of a particular type, so these steps that you will create for each kind of sums are your mind maps that guide your mind on how to solve the sums.
- Even when you are stuck in the middle of a sum it is these maps that will guide you step by step on how to solve the sum further.
- Take a chapter, create mind maps and solve 2-3 related sums using your map. Make sure that the first sum is easy, second is medium level of difficulty and the third is a very tough sum so you know all types have been covered of a particular map. Makes sure you attach those solution behind its map so while you revise its easily available.
- This system will be very helpful in scoring really good marks and later on as you complete all the chapters by this method you can take up remaining sums from the text book and solve them for practice. You can also go to your college library and take sums from text books of other publication houses and solve the sums for better practice.
- Do make sure that you do your theory section well, as theory also counts as a part of the paper and will contribute to your marks. Take up theory for Quantitative Methods in Business on days when you are bored of doing the lengthy Law or POM theory and do for half an hour on alternate days, it won’t take more than 15 days to complete the entire theory section and you have a winning subject at hand.
- Many students get a KT in this subject due to silly mistakes that they commit, use your calculator wisely and do not forget the steps to solving sums; your mind maps are going to be of utmost help during exam time so if you really want to score good marks make sure that when you make these maps they are made with perfection and in a way that they stay throughout the semester with you.
- Also, create formula sheets for all the chapters where you come across any formulas and attach them to your mind maps, make them chapter and sum type wise so you have a mini reference guide at hand before the exams.
- If you have a month left for cracking the papers do not fret, you will have to compromise of solving sums and so whatever 2-3 sums you per type do need to be done perfectly in order to pass.
- Take up each type of sums and solve 3 sums from each type.
- While you solve them you will realize the steps followed, so in simple language create a mind map for yourself, it may not be a elaborate as the ones created by someone who is studying since 2 months but make sure you do them, even if they are simple bullet points, they will help you while you revise on exam day, try and give 2 hours a day to this subject and you will easily pass your exams.
What books can I refer for Quantitative Methods in Business?
Any textbook available in the market that has a lot of sums and solved examples is the ideal choice for this subject. Do go through the number of sums and take a pick accordingly.
Can there be a Career post Quantitative Methods in Business?
Ok, so you liked the subject a lot and wish to make a career into it post your BMS? Well, yes there are quite a few possibilities for someone who wishes to make a career in this subject. They are as follows:
You can become a financial analyst or an economical analyst; you can try becoming a professor if helping students is what attracts you. One of the very interesting options if you love statistics would be Acturial sciences.
So who is an Actuary?
An actuary is someone who analyzes the financial consequences of risk, primarily in the insurance sector. Actuaries use mathematics, statistics, and financial theory to study uncertain future events and determine the future in the different insurance and pension programmes.
As a career option today an actuary is truly a well paid and well respected profession, banks and insurance companies will be your primary takers and dealing with facts and figures derived from the statistical data collection that you love will be what you will be dealing with day in and day out.
To make a career as an actuary post your BMS you will need to do your masters in finance by means of an MBA with a specialization in finance or a C.A/C.S/ICWA and the further study of actuarial sciences.
An extremely analytic personality with the ability to use foresight, logical and analytical thinking is what makes a good actuary, you need persistence and a lot of hard work to get there but once you do, it’s an amazing career opportunity! BMS at graduation level is an amazing base you can channelize what you love into any great career opportunity post this course!