What distinguishes quantitative analysis from qualitative analysis?

Quantitative analysis is distinguished by its reliance on statistical methods to interpret numerical data. It typically involves the use of mathematical models and algorithms to analyze patterns, make predictions, and derive conclusions based purely on figures. This approach allows for measurable and objective insights, often resulting in concrete numbers that can be compared and evaluated.

In a quantitative analysis framework, various metrics such as financial ratios, statistical distributions, and historical performance data are assessed to inform decision-making. This lends itself well to rigorous testing and validation, enabling analysts to derive actionable conclusions based on solid numerical foundations.

In contrast, qualitative analysis emphasizes non-numeric factors, such as individual opinions, observations, and descriptive characteristics. It seeks to understand underlying motivations and sentiments rather than strictly focusing on quantifiable outcomes, which is why responses that imply qualitative analysis is solely about numbers are incorrect.