Which of the following are true for quantitative analysis? Each correct answer represents a complete solution.
Choose three.
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A. B. C. D.BCD.
As quantitative analysis is data driven, it: -> Allows data classification and counting.
-> Allows statistical models to be constructed, which help in explaining what is being observed.
-> Generalizes findings for a larger population and direct comparisons between two different sets of data or observations.
-> Produces statistically reliable results.
-> Allows discovery of phenomena which are likely to be genuine and merely occurs by chance.
Incorrect Answers: A: Risk factors are expressed in terms of high/medium/low in qualitative analysis, and not in quantitative analysis.
Quantitative analysis is a method of risk analysis that involves using numerical data and mathematical models to quantify the likelihood and impact of potential risks. Here are the correct statements about quantitative analysis:
A. Determines risk factors in terms of high/medium/low: True. Quantitative analysis provides a systematic approach to assessing risk by assigning numerical values to each risk factor. These numerical values can then be used to classify risks into categories such as high, medium, or low.
B. Produces statistically reliable results: True. Quantitative analysis is based on the use of statistical methods, which can produce results that are statistically reliable. This means that the results are based on a large enough sample size and are not likely to be due to chance.
C. Allows discovery of which phenomena are likely to be genuine and which are merely chance occurrences: True. Quantitative analysis can help distinguish between genuine trends or patterns and chance occurrences. By analyzing data over a long period of time, statistical models can identify patterns that are statistically significant and likely to continue in the future.
D. Allows data to be classified and counted: True. Quantitative analysis involves the use of numerical data, which can be classified and counted. This allows for a systematic approach to risk analysis, where risks can be assigned numerical values and prioritized based on their likelihood and impact.
In summary, quantitative analysis is a reliable and systematic approach to risk analysis that involves the use of numerical data and statistical models to identify and prioritize potential risks. It allows for risks to be classified, counted, and analyzed in terms of their likelihood and impact.