Question

What are the attributes of a good quantitative analysis model? C.W. Churchman once said that "mathematics tends to lull the unsuspecting into believing that he who thinks elaborately thinks well." Do you think that the best QA models are the ones that are most elaborate and complex mathematically? Why or why not?

Answer 1

Quantitative analysis can be seen as a business analysis method which has the main objective to have a comprehensive understanding about the different behaviors by using the trivial mathematical and statistical models by applying measurement, research and assignment of numerical value variables. The individuals in corporate implement these analysis as a methods for the determination, evaluation and valuation of financial aspect in the real life scenario.

A number of attributes are related to the quantitative models which can be seen as suitable or appropriate. First of all, it is important to have the easy and simple to understand model which will facilitate the users to implement these models easily for predicting and evaluating. Apart from this, this model should also be comprehensive and detailed in order to provide the expected outcomes which are required for any further implementations.

A quantitative analysis model can be seen as a model which is considered to be reasonably good, easily portable and flexible in order to make sure that the model can be implemented in a variety of environments along with the different data and information. This will facilitate a more diverse and differentiated application.

It is not important hat all the best models should be detailed, comprehensive and trivial but the good model is one which facilitates simple and easily understandable solutions to the various practical business issues. This is mainly true as the main reason for having the QA model is to make the approach simpler so that predictions can be made easily and present information can be evaluated in such a manner which is easily understandable by the model users. If complex models are used, this the entire process can be quite difficult to implement and understand.

The results of the many research indicate that majority of users have the opinion that the simplicity is the most important aspect of QA models which make it easy to use. But there are some who have the opinion that complexity adds to the robustness and thus it should be given importance in the development of QA model.