Chapter 5 – Quantitative Analysis
Earlier in Chapter 1 and 2 we touch on decision making based on right and wrong.
I would classify Quantitative Analysis as a decision making of an investment/ project based on “yes” or “no” of facts and information gathered for simple understanding.
QA will also study the cash flow analysis and also the future value (NPV).
Something sounds familiar to me (learnt during old school days) that was mentioned in the chapter regarding probability studies of the following few distributions:
- Binomial Distribution – Only two possible outcome – “Yes” or “No”.
With all the probability gathered from the facts and data, one can quantify or forecast the value of the investment special mathematical method of Regression.
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