BNAL 406 Final Exam

1) All of the following statements are TRUE about business intelligence EXCEPT: A) Business intelligence is a variety of software applications that are used to analyze an organization's data. B) The role of BI has increased over the last decade because the amount of data being collected by businesses continues to grow at a rapid rate. C) The most recent trend, which appears that it will be short-lived, is the desire for digital dashboards. D) Dashboards provide management with a "big picture" view of the business, usually from multiple perspectives using various charts and other graphical representations.

C) The most recent trend, which appears that it will be short-lived, is the desire for digital dashboards.

29) Companies that are planning to make a long-term investment, like the purchase of machinery, typically use ________ to evaluate whether the endeavor is worth pursuing. A) capital budgeting B) amortization table C) cash flows D) present value analysis

A) capital budgeting

1) Often used to determine a company's value, ________ is the movement of cash in and out of a business. A) cash flow B) economic risk C) NPV D) capital budgeting

A) cash flow

3) The spa calculates the total revenue that a spa package generates over the course of a year. This is an example of ________. A) descriptive statistics B) probability C) inferential statistics D) statistics

A) descriptive statistics

40) ________ is a method used to predict future values by analyzing the relationships between two or more variables. A) The R square value B) The correlation coefficient C) The regression analysis D) The intercept coefficient

C) The regression analysis

30) The ________ distribution is a discrete probability distribution that is used to model the number of successful trials based on the total number of trials and the rate of success. A) normal B) exponential C) binomial D) Poisson

C) binomial

9) The spa manager uses data such as time between sales transactions, the weight of a package for shipping, and the amount of money a customer spends in any given visit. These are examples of ________. A) probability distributions B) discrete variables C) continuous variables D) populations

C) continuous variables

21) Array functions look different from other functions because ________ are required for the function to calculate correctly. A) forward slashes \ \ B) pipes | | C) curly brackets { } D) square brackets [ ]

C) curly brackets { }

35) The ________ method of depreciation assumes that the value of an asset depreciates more in the first year than in the second year. A) accumulated B) double distributing-balance C) declining-balance D) straight-line

C) declining-balance

15) A(n) ________ field is a field where a calculation takes place, but a new calculated field is not being created. A) bidirectional B) explicit calculated C) implicit calculated D) vertical multiple

C) implicit calculated

11) Excel 2013 not only gives you the ability to conduct analyses on data from multiple sources, but you can also do more advanced data modeling ________. A) with slicers B) with sparklines C) in PowerPivot D) in Silverlight

C) in PowerPivot

22) The Turquoise Oasis Spa places orders for cases of bath salts through a nearby wholesaler. To summarize several orders worth of data, it may prove beneficial to determine how many orders of bath salts were for 1 to 10 cases, between 11 and 20 cases, 21 to 30 cases, 31 to 40 cases, and more than 40 cases. This is an example of ________. A) grouping the data into bins B) calculating variances C) a probability distributions D) sample populations

A) grouping the data into bins

16) To calculate the ________, sum of all values in a data set and divide by the total number of values. A) mean B) mode C) variance D) median

A) mean

34) Managers at the Turquoise Oasis Spa are interested in knowing whether there is a relationship between the age of their clients and the amount of money they spend in the spa. Upon analyzing the data, they found a correlation coefficient of .672. Thus, the relationship between the two variables is ________. A) strong B) moderate C) weak D) very weak

A) strong

18) A ________ can be the aggregate of 2013 Profit or a monthly sales goal that every employee should meet. A) target value B) status threshold C) KPI D) base value

A) target value

2) All of the following statements are TRUE about the current business drivers for dashboard initiatives EXCEPT ________. A) the need to recruit the best employees B) the need to gain visibility into key business processes C) the need for one view of the business date D) improved timeliness and accuracy of business decisions

A) the need to recruit the best employees

20) Finding the central tendency may lead to incorrect assumptions about the data due to possible ________. A) variance B) central tendency C) standard deviation D) outliers

A) variance

15) To display a positive result for the CUMIPMT function you would need to nest the ________ function. A) NPV B) PV C) PPMT D) ABS

ABS

16) All of the following functions can be used to analyze an annuity investment EXCEPT ________. A) FV B) PV C) ABS D) PMT

ABS

19) An amortization table shows all of the following EXCEPT ________. A) interest payments over the life of the loan B) interest rate for each payment C) principal payments over the life of the loan D) remaining balance of the

B) interest rate for each payment

4) The pv argument in the PMT function represents the ________ of the loan. A) payment amount B) loan amount C) percentage rate D) percentage value

B) loan amount

10) If a product is tested 100 times and the rate at which it fails is recorded on a scale of 1 to 10, then the average of all the product's failure rates on the scale could be useful. This is an example of ________ data. A) nominal B) ordinal C) interval D) ratio

B) ordinal

28) The FV function has two optional arguments. These two arguments are ________ and ________. A) rate; payment B) payment; type C) pv; rate D) pv; type

B) payment; type

7) A(n) ________ describes all the possible values and likelihoods that a given variable can be within a specific range, and they can be in the form of a graph, table, or formula. A) continuous variable B) probability distribution C) observational unit D) discrete variable

B) probability distribution

19) In Excel, the ________ is displayed with a graphic providing a visual indicator of the status of the base value compared to the target value. A) target value B) status threshold C) KPI D) base value

B) status threshold

20) Calculated fields can be extended to become ________. A) target values B) status thresholds C) KPIs D) base values

B) status thresholds

5) The spa manager surveys 100 random customers about their opinions on a new service being offered at the spa. Based on the results of that random sample, managers at the spa can make assumptions about whether or not the new spa service would go over well. This is an example of ________. A) descriptive statistics B) probability C) inferential statistics D) statistics

C) inferential statistics

25) A(n) ________ is the ratio of the amount of money gained or lost from an investment relative to the initial amount invested. A) return on security B) equity distribution C) return on investment D) maturity ratio

C) return on investment

39) The ________ of an asset is the value of an asset at the end of its useful life. A) depreciation B) principal C) salvage value D) death

C) salvage value

10) All of the following statements are TRUE about the new data model EXCEPT: A) Data can be added to the data model from a variety of sources. B) Many organizations store data inside a relational database such as MySQL, Oracle, or a DBMS like Microsoft Access. C) Most organizations store their data in a relational database in order to ensure their data are secure, accurate, and consistent. D) Prior to Excel 2010, it would be very complicated and time consuming to integrate relational data into an analysis.

D) Prior to Excel 2010, it would be very complicated and time consuming to integrate relational data into an analysis.

1) ________ is the practice of collecting, analyzing, and interpreting data. A) Descriptive statistics B) Probability C) Inferential statistics D) Statistics

D) Statistics

14) All of the following statements are TRUE regarding the RAND function EXCEPT: A) The RAND function in Excel is one method that can help with creating a random sample. B) The RAND function does not have any arguments. C) Randomness in selecting a sample from a population is crucial in conducting effective and accurate statistical analyses. D) The RAND function generates a random letter between A and Z.

D) The RAND function generates a random letter between A and Z.

22) All of the following statements are TRUE about amortization schedules EXCEPT: A) All interest and principal paid should equal the sum of all the payments made. B) The final remaining balance value in your table should be zero. C) A given periodic payment will equal the sum of the interest payment (IPMT) and the principal payment (PPMT). D) The sum of the principal payments (PPMT) will always equal the loan amount. If you add interest it will be the total amount paid over the course of the loan term, both in interest and principal.

C) A given periodic payment will equal the sum of the interest payment (IPMT) and the principal payment (PPMT).

36) Calculating the correlation coefficient using the ________ function is useful to determine the type and strength of a relationship between two variables. A) CAUSATION B) COVARIANCE.S C) CORREL D) COVARIANCE.P

C) CORREL

3) All of the following statements are TRUE about the basics of dashboard design EXCEPT: A) Dashboard components typically consist of tables, PivotTables, PivotCharts, conditional formatting, and other features available in Excel. B) How a dashboard is designed has just as much of an impact on its effectiveness as the data displayed. C) Dashboards that do not include multi-screen, visually oriented user interfaces are poorly designed. D) Typically, dashboards are also oriented around specific business activities, such as sales analysis, cash flow, employee productivity, and customer service.

C) Dashboards that do not include multi-screen, visually oriented user interfaces are poorly designed.

32) The ________ function indicates the profitability of an investment and is commonly used in business when choosing between investments. A) NPV B) XNPV C) IRR D) XIRR

C) IRR

11) ________ data measures the size of the difference between values. A) Nominal B) Ordinal C) Interval D) Ratio

C) Interval

6) You can increase the success of your dashboard by taking personal preferences into account whenever possible. This is an example of the ________ design concept. A) Making Sure It Is Well Defined B) Designing with White Space C) Knowing Your Users D) Defining Crucial KPIs

C) Knowing Your Users

15) ________ are only useful with discrete data that is sorted in either ascending or descending order. A) Means B) Medians C) Modes D) Central tendencies

C) Modes

3) You would use the ________ function to find out how much money you would pay on a mortgage loan of $100,000 with a monthly rate of 5%. A) PV B) FV C) PMT D) IF

C) PMT

18) The ________ function can be used to identify the principal portion for a mortgage payment. A) PMT B) IPMT C) PPMT D) FV

C) PPMT

10) The ________ function calculates the interest rate per period for an investment or loan, given that you know the present value of the loan, payment amount, and number of payment periods. A) NPV B) IPMT C) RATE D) NPER

C) RATE

37) ________ is a method used to predict future values by analyzing the relationships between two or more variables. A) Standard deviation B) Kurtosis C) Regression analysis D) Intercept coefficient

C) Regression analysis

29) All of the following statements are TRUE regarding probability distribution EXCEPT: A) Small businesses tend to experience more volatility than large organizations and can therefore benefit greatly from using probability distributions to estimate future outcomes and events. B) The normal distribution has wide applications in business. C) Excel offers many probability distribution functions with wide applications across many different industries of business, science, engineering, and mathematics. D) A normal distribution is one of the least used distributions in statistics.

D) A normal distribution is one of the least used distributions in statistics.

7) One of the primary goals of a dashboard is to ensure that managers have ways to quantifiably measure the progress toward short-term and long-term goals. This is an example of the ________ design concept. A) Making Sure It Is Well Defined B) Keeping It Simple C) Knowing Your Users D) Defining Crucial KPIs

D) Defining Crucial KPIs

14) Which of the following is not a category of DAX functions? A) Date and Time B) Information C) Parent/Child D) Mathematical and Geometric

D) Mathematical and Geometric

24) ________ is the middle value(s) when all the values of the sample are sorted in ascending order. A) Kurtosis B) Mean C) Standard error D) Median

D) Median

11) The ________ function calculates the number of payment periods for an investment or loan if you know the loan amount, interest rate, and payment amount. A) NPV B) IPMT C) RATE D) NPER

D) NPER

32) The ________ distribution is a discrete probability function that has wide business applications. A) normal B) exponential C) binomial D) Poisson

D) Poisson

6) The ________ argument in the PMT function represents the balance you want to attain after the last payment is made. A) fv B) pv C) rate D) nper

fv

9) The ________ argument is used when you want to speculate about what the interest rate would be when using the RATE function. A) guess B) pv C) fv D) type

guess

12) If you don't know the number of periods for a loan but you know the present value, payment, and number of interest rate, you can use the ________ function to determine the number of periods. A) GUESS B) PMT C) RATE D) NPER

NPER

12) ________ variables are often used to categorize responses in a survey. A) Nominal B) Ordinal C) Interval D) Ratio

A) Nominal

38) The ________ provides a more conservative estimate of the independent variable's ability to predict the value of the dependent variable. A) R square value B) correlation coefficient C) regression analysis D) intercept coefficient

A) R square value

13) All of the following statements are TRUE about the Microsoft Azure Marketplace EXCEPT: A) There are a variety of categories based on development date and price. B) One of the many services the Microsoft Azure Marketplace provides is access to very large data sets for use in analysis. C) There are several data sets available for free, and they can be accessed in the PowerPivot window. D) Having access to large data sets allows you to explore all the analysis tools available in Excel 2013.

A) There are a variety of categories based on development date and price.

18) ________ is a calculation used in statistics to determine how far the data set varies from the mean. A) Variance B) Range C) Standard deviation D) Central tendency

A) Variance

5) One of the primary goals of a dashboard is to stay focused on a specific business problem. This is an example of the ________ design concept. A) Making Sure It Is Well Defined B) Keeping It Simple C) Knowing Your Users D) Defining Crucial KPIs

A) Making Sure It Is Well Defined

40) The SLN function has ________ arguments. A) three B) four C) five D) six

3

14) Identify the correct formula to calculate the cumulative interest paid on a mortgage loan for the second year of the loan (periods 13-24, where rate =9%, nper= 5, present value = $250,000. A) =CUMIPMT(.09/12, 5*12, 250000,13,24,0) B) =CUMIPMT(.09/12, 5*12, 250000,24,13,0) C) =CUMIPMT(.09*12, 30/12,-250000,13,24,0) D) =CUMIPMT(.09/12, 30/12,-250000,24,13,0)

A) =CUMIPMT(.09/12, 5*12, 250000,13,24,0)

8) All of the following statements are TRUE about the benefits to using Microsoft Excel to create digital dashboards EXCEPT: A) Because companies can get free copies of the full version of Excel for all of their employees, leveraging the capabilities of Microsoft Excel is a very cost-effective solution. B) People will spend less time learning how to use the dashboard and more time getting value from what is displayed. C) With the appropriate know-how, Excel can be much more flexible in the variety of analytics it can provide in a dashboard than many off-the-shelf solutions. D) Having the capability of creating your own reporting mechanisms in Excel can reduce your reliance on the IT department's resources.

A) Because companies can get free copies of the full version of Excel for all of their employees, leveraging the capabilities of Microsoft Excel is a very cost-effective solution.

6) All of the following statements are TRUE about the language of statistics EXCEPT: A) Business professionals rely heavily on inferential distributions. B) Statistics often refer to populations and samples. C) Businesses can use various statistical methods in many areas to get a better understanding of the organization. D) Statistics can be used to determine effectiveness of advertising campaigns, to understand what factors contribute to the demand for your products, to spot seasonal trends in the sales of certain products, and much more.

A) Business professionals rely heavily on inferential distributions.

13) The ________ function calculates the amount of interest paid over a specific number of periods. A) CUMIPMT B) PPMT C) IPMT D) CUMPRINC

A) CUMIPMT

23) Since the FREQUENCY function is an array function, once it is typed into a cell you must press ________ + Enter in order for it to calculate properly. A) Ctrl + Shift B) Ctrl + Alt C) Ctrl D) Alt + Shift

A) Ctrl + Shift

4) ________ is the likelihood that some event will occur based on what is already known. A) Descriptive statistics B) Probability C) Inferential statistics D) Statistics

A) Descriptive statistics

27) A ________ graph is a statistical graph that summarizes the distribution of data and how the data fits into defined bins. A) Histogram B) Kurtosis C) Bin D) Sample variance

A) Histogram

26) ________ characterizes the peakedness or flatness of a distribution compared to the normal distribution. A) Kurtosis B) Skewness C) Standard error D) Sample variance

A) Kurtosis

30) The ________ function is used to determine the value of an investment by analyzing a series of future incoming and outgoing cash flows expected to occur over the life of the investment. A) NPV B) XNPV C) IRR D) XIRR

A) NPV

7) Identify the correct formula to calculate the payment for a loan, where rate =6%, loan amount = $2,000, and payments will be made monthly for six years. A) =PMT(.06, 6*12, 2000) B) =PMT(.06/12, 6*12, -2000) C) =PMT(.06, 6*12, -2000) D) =PMT(6, 6*12, 2000)

B) =PMT(.06/12, 6*12, -2000)

12) The Microsoft ________ is a cloud computing platform offering a variety of features and services to individuals and businesses. A) Silverlight B) Azure Marketplace C) SkyDrive D) Outlook Live

B) Azure Marketplace

23) All of the following statements are TRUE about investments EXCEPT: A) A security is a legal document that can be bought and sold and holds some financial value. B) In terms of economic risk for stocks and bonds, stocks are typically considered less risky. C) Stocks are categorized as equity securities because the company gives partial ownership of its equity, defined as total assets minus total liabilities, by selling stock in the company. D) Bonds are categorized as debt securities because the company is indebted to the people who loan the company money through the purchase of bonds.

B) In terms of economic risk for stocks and bonds, stocks are typically considered less risky.

4) One of the primary goals of a dashboard is to help the user navigate and interpret a large quantity of data at a glance. This is an example of the ________ design concept. A) Making Sure It Is Well Defined B) Keeping It Simple C) Knowing Your Users D) Designing with White Space

B) Keeping It Simple

25) ________ is the average of the variables in the sample. A) Kurtosis B) Mean C) Standard error D) Median

B) Mean

9) Following the ________ model can provide the necessary guidance to creating an effective dashboard. A) KPI B) SDLC C) BI D) white space

B) SDLC

19) All of the following statements are TRUE regarding variance EXCEPT: A) The higher the variance calculation the more dispersed the data set. B) Variance is most useful because its value is in the same unit as the median and therefore easier to interpret. C) Variance provides a more accurate picture of the dispersion of a data set than a range. D) Due to the way variance is calculated, the value is not in the same units as the mean.

B) Variance is most useful because its value is in the same unit as the median and therefore

31) The ________ function determines the value of an investment or business by analyzing an irregular time series of incoming and outgoing cash flows. A) NPV B) XNPV C) IRR D) XIRR

B) XNPV

8) The spa manager uses data such as number of soaps in a box and the number of different services the spa offers its customers. These are examples of ________. A) probability distributions B) discrete variables C) continuous variables D) populations

B) discrete variables

17) Calculating the range, variance, and standard deviation of a data set are all methods used to determine the ________ of a data set. A) concentration B) dispersion C) standard deviation D) central tendency

B) dispersion

34) The ________ method of depreciation calculates depreciation at the highest accelerated rate. A) accumulated B) double declining-balance C) declining-balance D) straight-line

B) double declining-balance

2) A(n) ________ occurs when there is a concern that a chosen act or activity will not generate sufficient revenues to cover operating costs and repay debt obligations. A) cash flow B) economic risk C) NPV D) capital budgeting

B) economic risk

16) A(n) ________ field is created when a formula is typed in the Calculation Area of the PowerPivot window. A) bidirectional B) explicit calculated C) implicit calculated D) vertical multiple

B) explicit calculated

31) The ________ distribution is a continuous probability function that models the times between events. A) normal B) exponential C) binomial D) Poisson

B) exponential

17) Identify the correct formula to calculate the cumulative principal paid on a mortgage loan for the second year of the loan (periods 1-12, where rate =5%, nper =120, present value = $147,000. A) =CUMIPMT(.05/12, 120*12, 147000,12,1,0) B) =CUMIPMT(.05/12, 120*12,-147000,1,12,0) C) =ABS(CUMIPMT(.05/12, 120,-147000,12,1,0)) D) =(ABS(CUMIPMT(.05/12, 120, 147000,1,12,0))

D) =(ABS(CUMIPMT(.05/12, 120, 147000,1,12,0))

33) All of the following statements are TRUE about finding relationships in data EXCEPT: A) The covariance and correlation formulas are used to describe linear relationships between data. B) Covariance is a formula that can calculate the relationship between two variables, like age and dollars spent as well as the direction of the relationship. C) The correlation formula produces a value between -.1 and 1 that is called the correlation coefficient. D) The correlation coefficient is represented by the letter "r" in statistics and is a unitless value that describes the strength and direction of a relationship between two variables.

D) The correlation coefficient is represented by the letter "r" in statistics and is a unitless value that describes the strength and direction of a relationship between two variables.

2) All of the following statements are TRUE about basic statistical methods to business EXCEPT: A) With so much data so easily available, it is becoming increasingly important that people in business understand how to use that data to make good, strategic decisions. B) Statistical methods can be used to analyze business data to support good decision making. C) Statistics can be used to determine effectiveness of advertising campaigns, to understand what factors contribute to the demand for your products, to spot seasonal trends in the sales of certain products, and much more. D) The more random the sample, the less accurate the statistical analysis will be, in part, because randomness eliminates bias.

D) The more random the sample, the less accurate the statistical analysis will be, in part, because randomness eliminates bias.

33) The ________ function analyzes a series of cash flows that are not periodic. A) NPV B) XNPV C) IRR D) XIRR

D) XIRR

24) A(n) ________ is a an investment with recurring payments. A) interest rate B) amortization schedule C) principal D) annuity

D) annuity

17) A ________ is a calculated field that resolves to a value. A) target value B) status threshold C) vertical multiple D) base value

D) base value

39) The ________ is the value at which a regression line will cross the y-axis and is used in the slope intercept formula to predict values. A) R square value B) correlation coefficient C) regression analysis D) intercept coefficient

D) intercept coefficient

28) A ________ calculates the average of values over time based on specified intervals. A) standard error B) sample variance C) mean D) moving average

D) moving average

37) A depreciation schedule records all of the following EXCEPT ________. A) accumulated depreciation B) calculation for each year's depreciation C) the date an asset was placed into service D) net book value

D) net book value

13) If a manager learns that product 1 failed after 15 tests and product 2 failed after only 5, then ________ data could state that product 1 passed three times as many tests as product 2. A) nominal B) ordinal C) interval D) ratio

D) ratio

35) Correlation coefficient values are easy to interpret, but it is often more powerful to create a ________ chart that illustrates that relationship visually. A) matrix B) quick analysis C) histogram D) scatter

D) scatter

36) The ________ method of depreciation that the value of the asset loses the same amount of value each year of its life. A) accumulated B) double distributing-balance C) declining-balance D) straight-line

D) straight-line

38) The ________ method of depreciation calculates depreciation evenly over the life of the asset. A) accumulated depreciation B) double-depreciation C) fixed-declining balance D) straight-line

D) straight-line

27) The ________ function can help businesses determine the future return on an investment. A) FV B) NPV C) PV D) PMT

FV

26) The ________ function calculates what an investment would be worth in today's dollars. A) FV B) NPV C) PV D) PMT

PV

21) The ________ function can be used to identify the interest portion for a mortgage payment. A) PMT B) IPMT C) PPMT D) FV

ipmt

5) The ________ argument in the PMT function represents number of periods. A) nper B) fv C) type D) rate

nper

20) The PMT function and the IPMT functions use the same arguments EXCEPT ________. A) fv B) pv C) type D) per

pv

8) If you don't know the interest rate for a loan but you know the present value, payment, and number of payment periods, you can use the ________ function to determine the interest rate. A) GUESS B) PMT C) RATE D) NPER

rate