- Quantitative Models:
- REGRESSION ANALYSIS: Linear regression is a method for studying the relationship between a dependent variable and one or more independent variables. Y=A+bx
Probability Theory: Helps Deal with Uncertainty.
- Coeefficient of Correlation: measures relationship between 1 dependend and 1 independent variable.
- + if variable moving in the same direction
- - if moving in different
- 0 if scattered
Exponential Smoothing: Perdicts sales based on historical amounts. used to prepare annual profit plan
- Judgement Model:
- Delphi: Relies on judgement through questionaires.