Limitations of quantitative data (Edexcel GCSE Business): Flashcards
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What is quantitative data?
What is quantitative data?
Information that can be measured & expressed in numbers
Examples of quantitative data
Examples of quantitative data
Percentages, ratios, profits, business indices
Types of financial data
Types of financial data
Sales figures, costs, expenses, interest rates, tax rates
Types of market data
Types of market data
No. of competitors, market size, growth, demographics
Types of marketing data
Types of marketing data
Customer satisfaction ratings, visits, opinions
Historical nature limitation of financial data
Historical nature limitation of financial data
It reflects past performance, not current/future conditions
Problem with basing decisions on historical data
Problem with basing decisions on historical data
Making assumptions about future based on what already happened
Why numbers don't tell the complete story
Why numbers don't tell the complete story
They lack context about underlying reasons behind figures
Can financial data be manipulated?
Can financial data be manipulated?
Yes, presented differently to emphasise particular points
Examples of data manipulation techniques
Examples of data manipulation techniques
Selective time periods, cherry-picking, misleading scales
Why is financial data incomplete?
Why is financial data incomplete?
Just one aspect; many factors can't be easily quantified
Qualitative factors not easily measured
Qualitative factors not easily measured
Reputation, staff motivation, customer loyalty, innovation