Quantitative Methods Case Study

Case Title:

Students’ Educational Loans: Bank Manager’s Dilemmas on Repayment Probabilities

Abstract:
This case study helps understand the concept of probability and its practical applications in business situations. Every year, banks extend educational loans to various professional courses and the students repay the loans after being employed. However, year 2009 is not ‘as usual’ for Pinto. Sensitizing him to the economic crisis and the accompanying liquidity crisis, his immediate boss, the regional manager, cautioned him on the repayment probabilities of the students. What if this situation persists for a long time and the students do not get meaningful employment? He came up with various scenarios and he is confused about what is the probability of each of the events occurring?

Pedagogical Objectives:

• To understand the concept of probability and discuss on the scope of business applications
• To explain different ways of calculating probabilities.

Keywords : Quantitative Methods; Decision Science; Analysis; Probability; Statistics; Decision Dilemma; Loans; MBA Course Case Mapping; Business Statistics; Quantitative Methods; Course Case Mapping

Contents:

• Introduction
• Assignment Questions