BANA2082: Modules 1 & 2

_____ refers to the technology that allows data, collected from sensors in all types of machines, to be sent over the Internet to repositories where it can be stored and analyzed.

Internet of Things (IoT)

The ratio of the amount of ink used in a table or chart that is necessary to convey information to the total amount of ink used in the table and chart is known as data-ink ratio. Using additional ink that is not necessary to convey information has what effect on the data-ink ratio?

It reduces the data-ink ratio.

Which one of the following is used in predictive analytics? Data visualization Data dashboard Linear regression Optimization model

Linear regression

To summarize and analyze data with both a crosstabulation and charting, Excel typically pairs _____.

PivotCharts with PivotTables

______________ analytics are techniques that use models, constructed from past data, to predict the future or to ascertain the impact of one variable on another.

Predictive

_______________ analytics use techniques that take input data and yield a best course of action.

Prescriptive

Which of the following analytical techniques helps us arrive at the best decision?

Prescriptive Analytics

The company identified in Chapter 7, Analytics in Action, is

Walmart.com

A two-dimensional graph representing the data using different shades of color to indicate magnitude is called a _____.

heat map

Regression analysis involving one dependent variable and more than one independent variable is known as ____.

multiple regression

What is the difference between the observed value of the dependent variable and the value predicted using the estimated regression equation?

residual

A _____ is a graphical presentation of the relationship between two quantitative variables.

scatter chart

In the simple linear regression model, the _____ accounts for the variability in the dependent variable that cannot be explained by the linear relationship between the variables.

error term

In a simple linear regression model, y = 𝛽0 + 𝛽1x + 𝜀 the parameter 𝛽1 represents the _____.

slope of the true regression line

A line chart that has no axes but is used to provide information on overall trends for time series data is called a _____.

sparkline

The least squares regression line minimizes the sum of the _____

squared differences between actual and predicted y values

The graph of the simple linear regression equation is a(n) _____.

straight line

Tables should be used instead of charts when _____.

the values being displayed have different units or very different magnitudes

Chapter 7 focuses on

linear regression

The Analytics in Action example in Chapter 7 concerned

managing packaging of orders.

Use the applet "Least-Squares Best Fit for Estimating Regression Line" to answer the following questions. (a)Drag the end of the blue line on the scatter diagram up and down. How does the position of the line relate to the value of r-squared on the left? (b)Next, hit the "Find Best Line" button and then the "Display/Hide Error Squares" button. Move the line up and down a few times. What does the total area of the orange squares represent?

(a) The better the line fits the data the higher the value of r-squared. (b) sum of squares due to error (SSE)

Use the applet "Decomposition of Error in Simple Linear Regression" to answer the following questions. (a)Press the "Find Best Line" button. What does the blue portion of the vertical lines represent if the lines were squared and drawn on the graph? (b)If sum of squares due to regression (SSR) is found to be 14,200, what is the value of total sum of squares (SST)?

(a) sum of squares due to regression (SSR) (b) 15,725

What would be the coefficient of determination if the total sum of squares (SST) is 23.29 and the sum of squares due to regression (SSR) is 10.03?

0.43

What would be the value of the sum of squares due to regression (SSR) if the total sum of squares (SST) is 25.32 and the sum of squares due to error (SSE) is 6.89?

18.43

Which of the following best exemplifies big data? Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and browsing the Web on a daily basis. Five hundred Facebook users upload one thousand pictures per day. A local grocery store collects data from those that scan their loyalty card. A pharmacy keeps track of customer purchases to send its customers coupons.

Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and browsing the Web on a daily basis.

_____ are visual methods of displaying data.

Charts

The company identified in Chapter 3, Analytics in Action, is

Cincinnati Zoo & Botanical Garden

A data visualization tool that updates in real time and gives multiple outputs is called _____.

a data dashboard

The Analytics in Action example in Chapter 3 concerned

a data dashboard

The charts that are helpful in making comparisons between categorical variables are _____.

bar charts and column charts

In order to visualize three variables in a two-dimensional graph, we use a _____.

bubble chart

The _____ is a measure of the goodness of fit of the estimated regression equation. It can be interpreted as the proportion of the variability in the dependent variable y that is explained by the estimated regression equation.

coefficient of determination

Chapter 3 focuses on

data visualization

When a decision maker is faced with several alternatives and an uncertain set of future events, s/he uses _____ to develop an optimal strategy.

decision analysis

In a linear regression model, the variable that is being predicted or explained is known as _____. It is denoted by y and is often referred to as the response variable.

dependent variable

Data dashboards are a type of _________ analytics.

descriptive

Deleting the grid lines in a table and the horizontal lines in a chart ______.

increases the data-ink ratio

In a linear regression model, the variable (or variables) used for predicting or explaining values of the response variable are known as the _____. It(they) is(are) denoted by x.

independent variable

Data-ink is the ink used in a table or chart that _____.

is necessary to convey the meaning of the data to the audience

In a business, the values indicating the current operating characteristics of the business, such as its financial position, the inventory on hand, and customer service metrics, are typically known as

key performance indicators

Making visual comparisons between categorical variables may be difficult in a _____.

pie chart

Advanced analytics generally refers to _____.

predictive and prescriptive analytics

In the financial sector, _____ are used to construct financial instruments such as derivatives.

predictive models

A _____ is a line that provides an approximation of the relationship between the variables.

trendline

When the mean value of the dependent variable is independent of variation in the independent variable, the slope of the regression line is _____.

zero