Financial Modeling Tutorials

- Excel Modeling
- Financial Functions in Excel
- Sensitivity Analysis in Excel
- Sensitivity Analysis
- Capital Budgeting Techniques
- Time Value of Money
- Future Value Formula
- Present Value Factor
- Perpetuity Formula
- Present Value vs Future Value
- Annuity vs Pension
- Present Value of an Annuity
- Doubling Time Formula
- Annuity Formula
- Present Value of an Annuity Formula
- Future Value of Annuity Due Formula
- Maturity Value
- Annuity vs Perpetuity
- Annuity vs Lump Sum
- Deferred Annuity Formula
- Internal Rate of Return (IRR)
- IRR Examples (Internal Rate of Return)
- NPV vs XNPV
- NPV vs IRR
- NPV Formula
- NPV Profile
- NPV Examples
- Advantages and Disadvantages of NPV
- Mutually Exclusive Projects
- PV vs NPV
- IRR vs ROI
- Break Even Point
- Break Even Analysis
- Breakeven Analysis Examples
- Break Even Chart
- Benefit Cost Ratio
- Payback Period & Discounted Payback Period
- Payback period Formula
- Discounted Payback Period Formula
- Payback Period Advantages and Disadvantages
- Profitability Index
- Feasibility Study Examples
- Cash Burn Rate
- Interest Formula
- Simple Interest
- Simple Interest vs Compound Interest
- Simple Interest Formula
- CAGR Formula (Compounded Annual Growth Rate)
- Growth Rate Formula
- Effective Interest Rate
- Loan Amortization Schedule
- Mortgage Formula
- Loan Principal Amount
- Interest Rate Formula
- Rate of Return Formula
- Effective Annual Rate
- Effective Annual Rate Formula (EAR)
- Compounding
- Compounding Formula
- Compound Interest
- Compound Interest Examples
- Daily Compound Interest
- Monthly Compound Interest Formula
- Discount Rate vs Interest Rate
- Discounting Formula
- Rule of 72
- Geometric Mean Return
- Geometric Mean vs Arithmetic Mean
- Real Rate of Return Formula
- Continuous compounding Formula
- Weighted average Formula
- Average Formula
- EWMA (Exponentially Weighted Moving Average)
- Average Rate of Return Formula
- Mean Formula
- Mean Examples
- Population Mean Formula
- Weighted Mean Formula
- Harmonic Mean Formula
- Median Formula in Statistics
- Range Formula
- Outlier Formula
- Decile Formula
- Midrange Formula
- Quartile Deviation
- Expected Value Formula
- Exponential Growth Formula
- Margin of Error Formula
- Decrease Percentage Formula
- Relative Change
- Percent Error Formula
- Holding Period Return Formula
- Cost Benefit Analysis
- Cost Benefit Analysis Examples
- Cost Volume Profit Analysis
- Opportunity Cost Formula
- Opportunity Cost Examples
- APR vs APY
- Mortgage APR vs Interest Rate
- Normal Distribution Formula
- Standard Normal Distribution Formula
- Normalization Formula
- Bell Curve
- T Distribution Formula
- Regression Formula
- Regression Analysis Formula
- Multiple Regression Formula
- Correlation Coefficient Formula
- Correlation Formula
- Correlation Examples
- Coefficient of Determination
- Population Variance Formula
- Covariance Formula
- Coefficient of Variation Formula
- Sample Standard Deviation Formula
- Relative Standard Deviation Formula
- Standard Deviation Formula
- Standard Deviation Examples
- Effect Size
- Sample Size Formula
- Volatility Formula
- Binomial Distribution Formula
- Multicollinearity
- Hypergeometric Distribution
- Exponential Distribution
- Central Limit Theorem
- Poisson Distribution
- Central Tendency
- Hypothesis Testing
- Gini Coefficient
- Quartile Formula
- P Value Formula
- Skewness Formula
- R Squared Formula
- Adjusted R Squared
- Regression vs ANOVA
- Z Test Formula
- Z Score Formula
- Z Test vs T Test
- F-Test Formula
- Quantitative Research
- Histogram Examples

Related Courses

## Quantitative Research Definition & Examples

Quantitative Research deals with measurable solutions and numbers, which is done in a systematic way to understand the given phenomena and its relationship between those numbers. Quantitative research is performed to explain the situation or phenomena and thereby provide a prediction or estimation around this and can, therefore, be controlled. In this article, we are going to provide you with the top 4 examples of quantitative research.

### Top 4 Examples of Quantitative Research

The following are examples of quantitative research

#### Quantitative Research Example #1 – Using Mean for Opinion Poll

There is a new marketing campaign for the launch of your product which is a smartphone with some added camera benefits. The audience was to rate the additional features on a scale of 1 to 5 , 5 being the highest.

Below is the result of the poll that was taken for a sample size of 50 people from different areas and age groups:

Since there is a different count of respondents for each of the rating, hence we need to calculate the result by using the Weighted Average Mean method. Weighted Average Mean can be calculated using the SumProduct() function in excel.

On calculating, we see that the mean is higher than 3, which means that the observation has resulted in a positive response. The additional features in the camera of the smartphone have created a positive impact and this survey on the pilot sample creates a go-ahead situation for the company.

#### Quantitative Research Example #2 – Calculating Portfolio Return

The portfolio a client has invested in has to be managed by an authorized portfolio manager. This portfolio contains 60% common stocks, 30% in bonds and 10% in cash. The return on common stocks is 14%, return on bonds is 8% and the return on cash is 3.5%.

The portfolio return can be calculated using the concept of the important investment where the overall return is the weighted average of the returns of the individual assets in the portfolio.

4.9 (1,067 ratings)

Therefore, the weighted average on each asset class can be calculated as,

=60% * 14%

**=8.400%**

Similarly, we can calculate the weighted average of other assets class as shown above

As seen below, the return on the overall Portfolio can be easily calculated if we know the returns on each of the asset class. In this scenario, the portfolio is generating a return of 11 % per annum for the investor.

=8.400% + 2.400% + 0.3500%

**Return on Overall Portfolio =11%**

The step-by-step details of how can we arrive at the portfolio return, when each of the asset class have a different weightage in the portfolio, can be calculated using the concept of Weighted Average.

#### Quantitative Research Example 3 – Risk Assessment

Risk assessment is a combination of risk analysis and risk evaluation.

Risk analysis is the different methods and ways of identifying and analyzing potential future events impacting current situations, while, risk evaluation is making estimations and judgments based on the risk analysis done. This is one of the most important processes the management needs to do to handle a team and its employees.

- Risk assessment score is the average of the Likelihood, Impact, and Current Values
- The above 3 components are rated on a scale of 1 to 3, 3 being the highest. However, the overall assessment is done a scale of 0 to 5. The scale of 1 to 3 is converted to 0-5 by the risk analytics.

Let us check for the current scenario of a business idea where:

**Likelihood = Medium****Impact = Medium****Current Impact = High**

**Risk Assessment = Average of the Likelihood, Impact and Current Impact Values**

In order to calculate the Risk Assessment on a scale of 0 to 5, we can solve the same using the Excel spreadsheet features:

The calculation of risk assessment will be –

=((2+2+3)/3)*2 – 1

**Risk Assessment =3.67**

By doing an average we are assessing the risk from 1 to 3 and by multiplying it by 2, we are stretching the same over a larger scale, which is 0 to 5 here. Therefore, the above calculation results in a rating of 3.67 for the risk assessment. This implies the business idea in question depicts medium risk involvement, which means a positive status for the business unit.

#### Quantitative Research Example #4 – Calculation of Average Annual Return

The stock price for one stock of Microsoft corporation approximately 10 years back as on 13^{th} February 2009 was $14.898. The current stock price for the same, as on 11^{th} February 2019 is $105.25.

The average annual return for a given stock or fund can be calculated using the concept of Geometric Mean:

**Average Annual Return = 100*[(Current Stock Price/ Older Stock Price)^(1/10)-1]**

The Average Annual Return can be calculated as follows,

=((14.90/105.25)^(1/10)-1)*100%

**Average Annual Return = 21.59%**

As seen, the stock has given a more than satisfactory returns as compared to its peers when compared over the same 10 years. This kind of analysis is further used for peer comparison, built estimates as well as create any detailed valuation model or numbers around this.

### Conclusion

Quantitative Methodology is used in almost all the fields of humanity today, and the reason being facts and numbers being used. The dependency, variables, and estimation become easier and valid, weighing this research and methodology more than anything else. On the other hand, qualitative research methodologies are used as and when appropriate. Gradually, we are also developing mixed-methods research tools that mix the use of qualitative and quantitative requirements, methods and paradigms.

### Recommended Articles

This has been a guide to what is Quantitative Research and its definition. Here we provide the top 4 examples of Quantitative Research with detailed explanations and calculations. You can learn more about accounting from the following articles –

- What is Quantamental Investing?
- Geometric Mean vs Arithmetic Mean – Compare
- What is Sample Size Formula?
- Top 9 Best Examples of Corporations
- What is Quantitative Easing?
- CQF Exam Guide
- Quantitative Analyst Salary & Skills
- How to Become a Quantitative Financial Analyst?

- 250+ Courses
- 40+ Projects
- 1000+ Hours
- Full Lifetime Access
- Certificate of Completion