Quantitative Reasoning for Business Overview
Thomas A Vereb
Quantitative Reasoning or, statistics as it is sometimes referred to, deals with the hard
numbers that business professionals use on a daily basis. Typically they are used for analysis of
the business’ function, or for forecasting future numbers.
Economics uses QRB in many different fashions. A few key examples are: forecasting
demand for a product or service, determining the price elasticity of a product, and return
on investment just to name a few. These few examples will be key components within the
upcoming Economics courses within my program. By mastering the techniques of QRB in
economics, I will not only excel in the class, but use these skills to better manage my
departments within my profession.
Projecting return on investment is a very important component of finance. This can help
determine if a project is worth the time and effort to proceed. Forecasting future returns will also
help in realizing the time value of money, or what your dollar will be worth many years from
now. Finance will also teach the concept of risk versus reward. In other words, if we take on a
project at a specific cost, is the return on the investment worth the risk of losing our capital? All
of these are key concepts in the framework of an effective executive.
As for accounting, QRB can help determine profit levels, are we making any money? It
can also play a crucial role in determining the value of equipment, and physical structures
(depreciation). Accounting helps managers determine cash flow, such as profit and loss, how
much must we produce to not only cover the expenses, but to turn a profit? QRB will help lay a
foundation in accounting that will allow an individual to present well formed projections based
on hard numbers.
QRB in an operational function can help determine how many widgets to make based off