C 207 Data Driven Decision Making

An QM objective where competent, empowered and engaged people at all levels throughout the organization are essential to enhance its apability

Involvement of people

What is Results Based Management (RBM)

Is a way to collect data using results to measure performance, translate goal, and defines accountability through on-going monitoring and self-assessment.

The use of Big Data is increasingly important to businesses in competitive markets. Which of the following characteristics is not true of big data?

can be analyzed with traditional spreadsheets

correlations is not

cause

A chart that identifies the process elements that might effect an outcome

cause and effect

Assists in brainstorming issues that are causing a problem

cause and effect diagram

An analysis has to ________ an _______in order to be ___________from a business prospective

change action worthwhile

What phase of the PDCA model collects data and evaluates the plan against the objectives

check

Easy tool to collect data to create other charts

check sheet

What are the seven tools of TQM

check sheets scatter diagrams cause and effect dia pareto charts flow charts histograms stat process control chart

A type of statistical analysis where data is measured in frequency for significant patterns or differences

chi square

What test uses significant patterns or differences among frequency data

chi-square

What does "solving the problem" involve

choose the model collect the data analyze the data

Two variables are plotted on a scatterplot and the points on the plot closely follow an upward, straight line. What is the likely correlation between the two variables?

close to 1.0

what type of analysis groups commonalities among groupings

cluster

which analysis is used for marketing

cluster analysis

A healthcare study follows a particular sample over time to identify how the health habits of teenagers impact their likelihood of acquiring various diseases later in their life. The healthcare organization hopes this data will allow them to create early prevention programs. What type of research design does this study describe?

cohort study

The order you pick your sample in does not matter

combination

Variations accepted as the normal part of the process

common cause variation

The third stage of the Davenport-Kim model

communicating results

What is provided when value of a company increases

competitive advantages in the market place

A type of bias where the surveyor is actively seeking a certain response

conscious

A type of bias that leads one to answer a certain way

conscious bias

Bias introduced because respondents believe it will be beneficail if selected

conscious bias

A QM principle where successful organization and quality programs have ongoing focus on continual improvement

continual improvement

A manufacturer initiates a 5 year program of analysis and process improvement to improve product quality and reduce lead time to customers

continual improvement

Another name for numerical data

continuous

The PDCA model reflects what

continuous improvement

RBM's life cycle approach uses _________ measurement and evaluation and must be __________

continuous, measurable

Illustrates limits or constraints a process should not exceed

control chart

monitor production process is which statistical procedure

control chart

Charts that are constructed from historical data and helps to distinguish b/t natural and assignable causes

control charts

Which statistical procedure helps to understand effective marketing to spend advertising dollars efficiently?

correlation

Measure the strength of a linear relationship

correlation coefficient

How could one summerize the relationship between the selling price and either the mileage or age

correlations

Used to analyze if funding is worth the outcome of a project

cost-benefit analysis

objectives of leadership 3

creates a unity of purpose and direction, aligns strategies, policies, processed, and resources to meet objectives, employees are motivated toward organizational goals

Compare individual's performance to a standard score

criterion referenced

A test used to compare an individual to defined stadards

criterion referenced test

2 main Types of decision analysis techniques

cross over analysis, break-even analysis linear program cluster analysis decision tree

What decision analysis technique would be used to determine the lease expensive option or 2 or more options

crossover analysis

what decision analysis technique considers both fixed and variable costs

crossover analysis

Represents the probability that a variable falls with a certain range

cumulative distribution

In the sipoc model, what part of the process is when the product is received by a person or organization

customer

A principle that focuses on understanding current and future customer needs

customer focus

NPS provides performance on...

customer loyality

Repetition in up and down patterns

cyclicality

Business decision are no better than the.....

data on which they are based

The 3 areas that encompass analytics

data, statistical and quantitative analysis, and fact based decisions

What model is used when faced with several decisions

decision analysis

What type of analysis is used to get an answer

decision analysis

What analysis is used to decide the best decision based on an estimated value

decision tree

A time series analysis used for forecasting a future value

moving average /exponential smoothing

a time series analysis that is a non linear trend

moving average/ exponential smoothing

A technique using more than one independent variable to predict a single dependent variable

multiple regression

More that one independent variable indicates....

multiple regression

what analytic approach would be used to detrermine if the selling price can be predicted from mileage and or age

multiple regression

A cable company offers its customers both cable television and internet. What statistical rule should be used to determine the probability that customers will have both cable television and internet?

multiplication

Apply this rule when looking for two events occurring (AND)

multiplication

Two rules of probability

multiplication and addition rules

Ratio data can be.....

multiplie, divided added or subtracted

what analytical tool would be used with multiple predictors

mutliple regression

Objective of mutual benefit of supplier relationships 2

mutual beneficial relationship management with suppliers, flexibility and speed in joint responses to changing market

A QM prinicple for sustained success where the organization manages relationship with interested parties and suppliers

mutual benefit of supplier relationships

SPC's monitor what types of causes

natural (common) or special (assignable) causes

An expected amount of variation that exists in all processes

natural or common

A downward trend means

negative

Do ordinal data measure numeric data

no

Does skewness affect median?

no

Is mean affected by skewness

no

X bar charts are considered average if......

no points outside limits and randomly distributed around the mean

What level of measurement is the type of cars produced in Ford factory?

nominal

Which data measurement does not have an intrinsic order

nominal

type of data that uses labels or names and is the lowest of the four levels of measurement

nominal

what type of data has an either/or type of data

nominal

If the dependent variable is categorical, it is __________ and therefore uses _________ regression

nominal logistic

4 levels of data measurement

nominal ordinal interval ratio

Tests that compares an individual to others

norm-referenced tests

Which type of distribution would you expect to see if mean=mode=median?

normal distribution

An educator collects eighth grade math scores from a local school and used this data to recommend curriculum changes for grades 8 - 12. What misuse of statistics may the educator have used in making this recommendation?

not a representative sample

A company is trying to increase its online sales revenue by improving its email advertising campaign for repeat customers as well an new customers. what 2 variables would be used in determining a campaign to maximize revenue gain?

number of purchases per email and spending per purchase

Data is divided into groups

numerical categorical

True score + random error =

observed score

True score + randome error+ systematic error =

observed score

A city government is trying to determine the national origins of its recent immigrant population. If a survey of the immigrant population is conducted in English what type of error might be present in the data?

omission

An error that occurs when something has been left out or did not occur

omission

predictive analysis also is used to look at the impact of

one variable to another

A key aspect of RBM is

ongoing monitoring strategy

What analytic model helps make the best decision when subject to constraints in the enviornment

optimization models

Keyword for addition

or, either

Words used to calculated probability using the addition rule

or, either

Data that categorizes some quality

ordinal

Place qualitative objects in some kind of order

ordinal

What level of measurement is this the 10 best cities in the U.S. to retire in?

ordinal

Which level of measurement has intrinsic order

ordinal

There are two types of categorical data

ordinal nominal

When a variation falls outside of standard deviation, it is considered...

out of control

Outliers create this type of error

out of range

A type of error that occurs when observation points are distant from other observation points

outlier

In the sipoc model, what part of the process is the result of using a resource

output

What chart plots categorical data and percentages of defects

p charts

Attribute charts are either ___ or ___ charts

p, c

Graphical display of data set in highest to lowest order

pareto

A descriptive analysis technique used to identify the category of invnetory that represents a company's highest inventory dollars

pareto chart

A graph that identifies and plots problems or defects in descending order of frequency

pareto chart

tools for identifying problems

pareto chart stat process control chart

Resutls based management needs to see ______ and _____

partnership, results

RBM requires ...(6)

partnerships, inclusiveness, shared expectations, transparency, simplicity, and flexibility

A principle that seeks involvemetn of people at all levels of the organization

people involvement

What type of chart would be best for data that includes 5 years of quarterly determinations

line chart

A company that raises turkeys is hoping to increase the rate of growth of the tyrkeys while controlling the cost of feeding them. It has determined that feeds containing both nutrients and protein can be used. Which decision-making technique is most appropriate for this company to minimize the cost of feeding the birds?

linear

If you have one independent variable in regression, it is....

linear

What regression analysis is synonymous with least squares

linear

Two types of regression analysis

linear and logistic

What type of analysis is used for deciding what mix to produce

linear programming

optimization models include...

linear programming

A technique using a single independent variable to predict a single dependent variable

linear regression

A regression where the dependent variable is binary

logistic regression

A type of statistical analysis where the dependent variable is binary

logistic regression

What are two reason for the increasing use of analytics in organizational decision making

lower cost of computer storage higher computer processing power

How must Inter-quartile range be ordered

lowest to highest value

Objectives to continual improvement 2

maintain performance and react to change, align improvement activities on all levels to achieve strategic goals

Three measures of central tendency

mean, median, mode

nominal data does not have a _______ or ________ ________.

means standard deviation

The M in KPI is

measurable

What type of bias is when the sample is not representative of the population

measurement

Two types of bias

measurement information

An Educator develops a new standardized test to measure math skills of ninth graders. She has students in her home state of Ohio take the test. If the test is to be used on a national level, what type of error might be found in her data?

measurement bias

Bias that occurs from not selecting a random sample

measurement bias

Cause and effect diagrams do not use

measurements

An economist wishes to study the distribution of household income in a Midwestern city. He randomly selects a sample from 12 households. He notices two large incomes in his sample. Which measure best represents the middle of the incomes?

median

middle score for a set of data

median

The primary focus of quality management is to

meet customer requirements and exceed customer expectations

What result do business quality teams expect when using quality tools?

minimizing errors through collection and analysis of data

which 2 attributes indicate potential data quality issues when evaluating a set of nominal data

missing data and out of range data

Analytics is a broad term that refers to a variety of tools that inform managerial decisions. What term can be used to describe managerial decisions

perscriptive

What part of the PDCA model evaluates current processes, collects procedures or data to indentify problems, and develops an improvement plan and performance objectives

plan

An upward trend means

positive

Inferential statistics are used to

predict/ trend

What type of analysis technique is used from past data to predict the future

predictive

The independent variable is the ________ and the dependent variable is the _________

predictor prediction

A manufacturer wants to maximize their factory output while specifically minimizing labor costs. What type of analytics might they employ to achieve this goal?

prescriptive

The analysis type that indicates the best course of action to take

prescriptive

optimization models fall under which analysis type

prescriptive

Term used to determine number of cases per total population (number of cases/ total population)

prevalence

Used to count ALL of the existing cases in a disease

prevalence

formula for Bayes

probability A/ (prob A+Prob B)

framing the problem involves

problem recognition and review of previous findings

In the sipoc model, what part of the process is a series of steps where an input converts to an output

process

Principle that lowers cost and shortens cycle times through effective use of resources

process approach

a QM principle where managed processes create efficient and effective results that are consistent and predictable

process approach

Key word for linear programming

production mix

A ratio of a group to the whole

proportion

An error that is minimized by larger sample sizes

random

An error that is unknown and unpredictable

random

in order for measured data to be reliable the sample tested must be

random

4 common errors

random systematic omission outlier

unpredictable error

random error-no correlation

simulation models is used for..

random variables

The difference b/t the largest and smallest items in a sample

range

Variable control charts are measured by ________ or _______

range, mean

measures of variability include

range, variance, standard deviation

Continous data with unique zero point

ratio

Runners cover 26.2 miles in the Olympics marathon. What level of measurement is this?

ratio

The measure of one quantity in relation to another

ratio

What type of data is common in business

ratio

Two types of numerical data

ratio interval

What is the process of qualtiy control

reduce or minimize errors

A statistical analysis that measures a significant relationslhip or trend

regression

A test that seeks relationships or trends

regression

A time seried analysis where the trend is linear over time

regression

What type of analysis would be appropriate to test for a significant linear trend

regression

a type of statistical analysis used for predicting or forecasting some value

regression

The R in kpi is

relevant

Data management seeks to provide data that is ______________ and ____________

relevant and timely

Two types of information bias

response conscious

A type of bias where the respondent says what they believe the questioner want to hear

response bias

When someone asks a question that we feel there is only one answer to or feel persuaded to answer a certain way

response bias

An advertising manager creates a research study by presenting low, medium, or high frequency of the same ad in matched markets. The manager then reports on sales in each market location. What is the term for the different sales in this study?

response variable

Goals of RBM is translated into

results

RBM seeks

results

What are key to success (3)

results, presentation, generating an action

RBM uses _____ as a central measure of ______

results, performance

what is the difference between structured and unstructured data

rows and columns(grocery bill) versus emails or photos or videos

Illustrates performance measurements over a period of time

run chart

A diagram that looks at relationships between two variables

scatter diagram

A graph of values of one vaiable vs another variable

scatter diagram

Used for potential relationships and correlation between vairables

scatter diagram

what charts are best used with regression or multiple regression

scatter plots

A descriptive graph depicting whether there is a correlation or relationship between two variables, such as car mileage and resale price would be:

scatterplot

Regular pattern within a single year

seasonality

correlation is ______ with cause

sequential

An analysis the uses computer-based models that amulate real-world situations

simulation

What model can be used to predict or forecast in an uncertain environment

simulation

what prescriptive model combines uncertain probability and statistics to make good decisions

simulation

In analytics, what is used to support business decisions

simultaneous application of statistical methods, management science, optimization and decision making

KPI is typically a ......

single performance measure

A model that allow us to see all the elements that could influence a process

sipoc

What happens when outliers are included or excluded in the analysis

skewness

A measure of the degree to which data leans toward one side

skewness or bias

A qualtiy team gathers data and performs a regression analysis. what step is this?

solving the problem

The second stage of Davenport-Kim model

solving the problem

An outlier could describe what type of data

something that doesn't belong

Variation from an abnormality causing large discrepancy in results

special cause variation

A variation that can be traced to a specific cause and red flagged with an objective to eliminate if bad or incorporate if good

special or assignable causes

the S in KPI is

specific

the spread of data in a sample. How far the data points are from the mean

standard deviation

R charts are used when.....

standard deviation are not available or difficult to compute

If the PDCA model trial is a failure, what happens

start the model over again

A chart that uses upper control limits and lower control limits that shows when processes are in or out of control

stat process control chart

A group of observations that have something in common

statistical population

4 additional decision analysis techniques

statistical process control linear programming decision tree simulation

What process uses statistics and control charts to tell WHEN to take corrective actions

statistical process control (SPC)

What does it mean when dots are close together on a scatter plot

strong correlation

Big data refers to both

structured and unstructured data in large volumes

types of discovery of patterns

sums, averages, and percentages

In the SIPOC model, which part reflects a person or organization that provided input to a process

supplier

A type of error that occurs when the measurement does not return to the zero point

systematic

What measurement error is constant within a data set

systematic

What type of data error that occurs in measurement is constant within a data set and is sometimes caused by faulty equipment or bias?

systematic

This type of error occurs when something unrelated to the test is affecting the results

systematic error

When conducting a study that measures an individuals's weight, all scales are calibrated prior to use in measurement. What type of error shoulc this procedure significantly reduce

systematic error

A QM principle where achieved objectives are met through interrelated areas of identifying,understanding, and managing

systems approach to management

A comparison between the effectiveness of online vs. newspaper coupons was conducted over a 3 month period to see which method brought in greater average revenue per customer.Which statistic should the pizza manager recommend use to determine promotional method to use?

t test

North American Oil Company is attempting to develop a reasonably priced gasoline that will deliver improved gasoline mileage. As part of its development process, the company would like to compare the effects of three types of gasoline. Which analysis technique should the company use to compare the performances of each gasoline type?

t-test ANOVA* Z-test Chi-square

5 Types of statistical analysis techniques

t-test anova chi-square time series regression

what types of time series analysis are not used for forecasting a future value (when used)

t-test, anova, chi-square

examples of interval data

temperature dress size

Linear programming tells us what

that so many of each product needs to be made to make the best profit

cross over analysis decides what

the best cost for the volume that will be produced

What does it mean when the dots are spread apart on a scatter plot

the correlationis weak

The significant value of ordinal data is....

the order of value

cluster analysis gives us what

the outcome of groupings

What are analytics

the process of turning data or information into fact based knowledge

Samples need to be.......... and represent..........

the right size, your population

The smaller the range.....

the tighter the process control

Interval data not only tells us of the value but also ....

the value between spaces

The T in KPI is

time bound

What negatively impacts testing entire populations

time consuming and expensive

A simple regression using tine as the independent variable

time series

Predictive analysis models include

time series, regression, and statistical quality control

When do you use the break-even analysis

to determine the volume at which total revenues make up for equal total costs

Observation points that are distant from other observations

Outliers

All statistical tests use what

P value

What value stands for the probability that the hypothesis is incorrect

P value

Key word for decision tree

based on the probability of our payoff, whats our highest estimated value

why can ratios be added, subtracted, multiplied or divided

because it can have a true zero

why can interval data be multiplied or divided

because there is no true zero

Participants are not told if they are in the treatment group or control group

blind study

What type of study is conducted when the participant is not told results

blind study

x bar and r charts can be used together when...

both processes are in control

formula for z score

(Value-Mean)/ std deviation

Which of the following statistics are robust to minimize the effect of a single large outlier? (More than one answer)

*Median *Interquartile range Variance Range Mean *Mode

Used to study the composition of a data set and examine the distribution

box plot

Balanced Scorecard advantages 4

-better organization alignment -better internal and external communication -links operations with company strategy -emphasized strategy and organization results

Disadvantages of KPI

-can be expensive and requires ongoing maintenance -small KPI changes that are not statistically significant might be mistakenly viewed as meaningful -might lead to focus on short term rather than long term goals

Disadvantages of NPS 3

-doesn't consider in-depth customer perception data -may fail to predict loyalty behaviors -doesn't address specific areas of dissatisfaction or satisfaction

NPS advantages 3

-easily understood metric -easy to calculate and monitor -can banchmark against industry leaders

Advantages of KPI's (4)

-help track finance, productivity, and goals -data driven results that make it easier to quantify performance -can be used as a tool across an entire organization -internal benchmarking

Disadvantages to a balanced scorecard 3

-requires time and effort to develope a meaningful scorecard -challenges for cross-company adoption -may not encourage desired behavior changes

What is the significance variable

.05

descriptive techniques are used by

businesses

Z scores always have a mean of _____ and a standard deviation of _____

0, 1

There are six toll booths to enter the highway. What probability does each toll booth worker have of getting the next customer

1 customer in 6 booths= 1/6 or 16.7%

A correlation is strong if the coefficient is close to...

1 or -1

A regional grocery chain measures the increase in prices by tracking the price of milk, eggs, white bread, and ground beef using the year 2005 as a base. The sum of these items in 2005 was $10.00 and the sum of the prices in 2015 was $14.50. What is the simple composite index for these items?

1.45 10.0 125 145 *

Z score for a 95% level of confidence

1.960

The base period of indices

100

A city hospital wishes to evaluate the labor hours it needs based upon monthly occupied bed days and average length of patients' stay. The estimated regression is: y = 2000 + 75X1 + 65X2 What scenario would be predicted if X1 = 500 and X2 = 1000?

104,500

How can we monitor quality

by observing variation in output measures

nominal data has how many values

2

A type of statistical analysis where you comper 2 means

2 sample T-test

Z score for 99% level of confidence

2.576

The mean of 100 bank customers' waiting times for teller service is 5.8 minutes with a standard deviation of 1.5. What time range would represent a 95.4% probability customer waiting time?

2.8 to 8.8

How does probability therory inform decision-making for managers

by quantifying data

How many standard deviations exist in a process control

3

ordinal data has how many values

3

Given the following data set:60, 41, 30, 15, 34, 30 What is the Median?

32

You are on soccer league with a total of 10 opposing teams, the pairings in the first round are at random. There are 4 out of state and 6 in-state opposing teams. What is the probability of playing against an in-state team?

60%

The probability of falling within plus or minus one of you standard deviation mean is

68%

Percentage found within 1 standard deviation of the mean

68.3%

Business Improvement Analytics represent what

A change in price or quantity over time for goods/services

Enterprise Industries produces Fresh, a brand of liquid laundry detergent. In order to study the relationship between price and demand for the large bottle of Fresh, the company develops the following relationship: Demand = 600 + 50X. What price is needed to produce a demand of 1000?

8$

What percent of quality problems does Ishikawa claim the seven tools can solve

90-95%

Plus or minus 2 of standard deviation is what percentage

95%

We examine a population with normal distribution having mean 1000 and standard deviation 50. What percentage of the population lies between 900 and 1100?

95%

When comparing P value, what percentage are we looking at

95%

Percentage found within 2 standard deviations of the mean

95.4%

Percentage found within 3 standard deviations of the mean

99.7%

Plus or minus 3 of standard deviation is what percentage

99.7%

We examine a population with normal distribution having mean of 1000 and standard deviation 50. What percentage of the population lies between 850 and 1150?

99.7%

Which two examples exhibit appropriate use of performance measures in business?

A hospital measure Emergency Room response time for improvement * Nonprofit tracks expenses to increase efficiency * A Women's retail shop reviews color trends for the next fall season A school reviews number of extra-curricular activities available to students

Objectives for Quality Management principles (4)

Achieve sustained Quality success, create value for customers, fast market opportunity response, effective use of resources

Plan-Do-Study-Act Which step is a response to analytical results

Act

use this rule when looking for one or the other event happening (OR)

Addition

What two companies have the highest NPS

Amazon then Iphone

Which statement is not true of the Seven Basic Tools of Quality?

An average worker can easily understand how to use the tools Processes are represented graphically The tools are based on statistics * Tools can be used independent of each other

Used to compare the mean of 3 or more groups

Anova

An online retailer selling workout apparel has a large increase in sales during December and declares that their weekly newspaper ad resulted in higher sales. What misuse of statistics may the retailer have used in making this decision?

Association and Causation

Refers to a situation in which two or more explanatory or independent variables in a multiple regression model are highly linearly related.

Autocorrelation Multicollinearity * Homoscedasticity Heteroscedasticity

A department store is considering a new credit policy to reduce defaults on payments. Its records show that 95% of defaults have at least 2 late payments. Also, 3% of all customers default and 30% of those customers who have not defaulted have a least 2 late payments. What statistical rule should be used to find the probability that a customer will default given that at least 2 payments were late?

Bayes Theorem

When given P(A) given P(B), you can use this to fing the P(B) given P(A)

Bayes Theroem

What makes random selection equal

Because all samples have equal opportunity to be selected

Why is Business Improvement Analytics watched closely

Because it is considered the main measure of inflation

Data mining is associated with

Big data

Value, Quality, and Uniqueness that consumers use to buy things

Brand equity

Ski Boards, Inc. wants to enter the market quickly with a new finish on its ski boards. It has three choices: refurbish the old equipment, make major modifications or purchase new equipment. The company has estimated the fixed and variable cost for each option. Which technique should they use to select the least costly option?

Breakeven Linear Regression Linear Programming Cross Over *

Index numbers are used for

Business Improvement Analytics

What does a balanced scorecard measure

CLIF customer, learning, internal process, financial performance

What are two advantages of Key Performance Indicators (KPI)?

Can be expensive and time-consuming to set up and use Educate management on company performance * Results are often only rough guide rather than a concrete measurement Data-driven results make it easier to quantify performance*

What chart tracks categorical data and plots the number of defects, meeting requirements or not

c chart

Benefits of mutually beneficial supplier relationships 2

Common understanding of goals and values, increased capability to create value by sharing resources and competence and managing quality related risks

A basket of assorted consumer goods and services that are purchased by a common household

Conusmer Price Index

Which measurement may be used by potential home buyers to evaluate the price of homes on the market?

Cost of raw materials Price per square foot* Realtor listings Zoning regulations

The town council of a beach town is studying whether to dredge the canals of an ocean front community that were filled with sand during a hurricane. What analytic method can the council apply to this issue?

Cross-over analysis Boating access to local home sites. Household income Cost-benefit analysis*

What would be used to measure and determine the new cases from research

Cumulative incidence

A large manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of the past 12 months of sales indicates that sales are increasing. What time series pattern does the sales likely exhibit?

Cyclicality Trend * Seasonality Random variation

Which of the following is not an advantage of KPI

Data driven results that make it easier to quantify performance Links operations with company strategy * Allows for internal benchmarking Can be used across an entire organization

A model that maps our a 3 stage approach to quantitative analysis

Davenport-Kim

A researcher is evaluating voter turnout based upon age and location of voting precincts. Which analysis technique should she use?

Decision Analysis Time Series Analysis Linear Programming Analysis Cluster Analysis *

. An entrepreneur is thinking about starting an independent gasoline station and considering how large the station should be. The annual return will depend upon the size of station and a number of marketing factors related to the oil industry and demand for gasoline. What analysis technique should be used to evaluate station size given the uncertainty of oil industry and demand factors?

Decision Analysis * Time Series Analysis Regression analysis Cluster analysis

An analysis that uses a form of financial modeling that considers different options to achieve the most profitable outcome

Decision tree

Two types of statistics

Descriptive and inferential

When KPI is difficult to change once set up

Disadvantage

The father of continuous improvement

Edward Deming

Which two statements describe how a process approach and a commitment to continuous improvement enhance quality?

Efficiently achieving results * Enhances customer loyalty Creates the best possible product * Mutually beneficial partnerships

City Line Transport wants to look at its fuel costs for 2013, 2014 and 2015 against the start-up base period of 2012. What analytic method should the company use?

Exponential smoothing Simple Index * Cumulative incidence Moving average

A business entrepreneur wishes to predict yearly revenue for potential Sub Restaurant sites. He performs a regression analysis based upon the area's population and business rating. What statistic indicates the strength of the relationship of population and rating to revenue?

F - test P - value Z - score R - square *

Anova used this test statistics

F-value

Keyword for Bayes

Given that

How does the government differ than private sector cost-benefit analysis

Government benefits aren't always money

Objectives of a system approach to management 2

focuses on key organization processess, understanding how results are produced to optimize performance

Which of the Seven Basic Quality Tools is used to exhibit the relationship between two variables?

Histogram Scatter Diagram * Check Sheet Cause-and-Effect Diagram

An online Active Wear retailer wants to use their last year's sales to evaluate consumer trends before ordering merchandise for fall season. What process should they use to discover consumer purchasing patterns?

Hypothesis testing Linear programming Data mining * Qualitative research

Measures the difference between the third and first quartile

IQR- Inter-quartile range

Model of designing, analyzing, and scoring tests

IRT Item Response Theory

Benefits of factual based decision making 2

Improved operation effectiveness and efficiency, improved assessment of process performance and ability to achieve objectives

Benefits of People involvement 3

Improved understanding of quality objectives, enhances initiative and creativity, enhanced trust and collaboration

Benefits of meeting Quality Mngt principles (3)

Increased customer value, improved customer loyality, Increased revenue and market share

Benefits of leadership objectives 3

Increased effectiveness and efficiency, better coordination of processes, improved communication

A common analytic used for business improvement

Index numbers

A food chain finds that there is a strong positive correlation between average daily sales for their pizza store and the number of daily visits to their website. What should be considered before the pizza chain can conclude that the daily sales are driving the number of visits to their website (or vice versa)?

Is there a causal relationship between sales and site visits

Another name for the seven tools of TQM

Ishikawa model

A sample of less than 30 will do what to normal distribution

It cannot meet the assumptions of having a normal distribution

A rural town seeks to deploy a new citizen relationship program within its Fire and EMT department. How could the citizen relationship program help the town service citizen's emergencies?

It could help reduce the cost of schools It could enhance the training of town employees It could reduce response times * It could aid funding of road projects

What is the approach for Results Based Management

It is a life-cycle approach that is continuous, measurable, and performance is evaluated.

A theory that takes into account for different questions having different levels/weights of difficulty

Item response theroy

Performance measure for one specific goal

KPI Key Performance indicator

Multiple KPIs are displayed for the big picture

KPI dashboard

What makes KPI different from KPI dashboard

KPI dashboard has multiple graphs and can reveal trends

A technique for minimize total cost or maximize profit based on constraints

Linear programming

An analysis that determines how to best use limited resources

Linear programming

A Charity is evaluating the effectiveness of its annual walk promotional campaign, in increasing walk participants and donations.What is the appropriate tool for evaluating performance?

Management by objectives Results-based management * Balanced scorecard Key Performance Dashboard

Measure of central tendency that is influenced by the size of the values in a dataset

Mean

A Manufacturer needs to closely manage product cost to maintain profit margins in a highly competitive market. Which two key performance indicators should management use to control product cost?

Measure employee productivity * Measure square footage Measure community relations Measure production waste *

. An Online retailer seeks to improve its Amazon customer services rating. What two key performance indicators should the retailer measure?

Measure on time delivery * Measure employee productivity Measure customer return rate * Measure average order size

What two companies have the lowest NPS

Motel 6 then comcast

After traveling down the Mississippi River, barges randomly arrive in New Orleans and are unloaded on a first-in, first-out basis. Any barges not unloaded on the day of arrival must wait until the following day incurring additional cost and negatively affecting customer service. The dock superintendent wants to use analytics to support a request for additional unloading crews. What analysis technique should he use?

Multiple Regression Simulation * Linear Programming ANOVA

name the 4 levels of measurement

NOIR -nominal ordianal interval ratio

A Pizza Chain wishes to improve sales by focusing on product quality, reducing delivery time and improving productivity. Which tool would best meet the Chain's objective of quantifying their improvement in product quality only?

Net Promoter Score Key Performance Indicator * Balance Scorecard Big Data Analysis

A retailer wants to evaluate the strength of its customer relations to see how the company compares to others in the industry. Which analysis technique could help the retailer with this decision?

Net Promoter Score * SIPOC diagram Balance Scorecard Big Data Analysis

A retail chain seeks to improve store performance by growing sales and improving customer service. Which tool would specifically meet the chain's objective of improving store sales growth?

Net promoter score Big data analysis Key performance indicator * Balanced scorecard

Identify, Group or categorize

Nominal

Compares one individual's performance to other individuals

Norm referenced

A test used to compare an individual to others

Norm referenced tests

At WGU, students take objective assessments to evaluate a student's knowledge of predetermined course competencies in relation to a cut score. What type of test is the objective assessment?

Norm-referenced Percentile based Criterion-referenced* Reliability based

Measures of central tendency are approx equal (Mean and Median)

Normal distribution

How are z-scores from a population with normal distribution distributed?

Normal distribution with mean 0 standard deviation 1

Used when impractical or impossible to control the conditions of the study

Observational study

Error may occur from missing data

Omission Error-Distorted results

Several missing values in a particular field in a dataset were observed. The likelihood of a record having a missing value is correlated to another variable in the dataset. Which 2 types of error might be introduced into the dataset if the removed record included missing values?

Omission and systemic

What test compares 1 mean to a standard

One sample t test

A type of statistical analysis where you compare 1 mean standard

One sample t-test

What type of data are the Olympic medals of gold, silve and bronze examples of?

Ordinal data

A local restaurant is attempting to reduce the time from taking a customer's order to delivery of the order. Which quality tool should the restaurant use to study their order process?

PDCA model Histogram Check sheet Flow Chart *

Which quality tool is an organized method for collecting data

Pareto Chart Histogram Flowchart Check Sheet *

. United Motors indicates that gas mileage tests of one of their cars, the Starbird 300, under city driving conditions has a mean of 29.9 mph and a mode of 30 mph. Which type of distribution would this testing represent?

Pareto distribution Bimodal distribution Multimodal distribution Normal distribution*

Benefits of system approach to managment 3

Performance advantage, improved activities at all levels, flexibility to react to opportunities

After collecting data and performing statistical analysis in a company's assembly department, a quality team recommends processing changes to reduce defects. The team proposes a pilot program to evaluate the effectiveness of their recommendations. Which step of the Plan-Do-Check-Act model does the pilot program represent?

Plan Do * Check Act

An International Health Organization is concerned about the spread of the Zika virus in South America as mosquito season approaches. It proposes measuring the growth of new cases for the total population over the next six months. What type of analytics would this represent?

Prevalence Ratio Cumulative Incidence* Incidence Rate

A list of all the different probabilities of each outcome that can occur

Probability distribution

Net Promoter Score (NPS) calculation

Promoters - detractors =NPS

What is the difference b/t QA and QC at its level

QA is advanced and understands the system to predict outcomes and QC is basic and recognized problems so they can be fixed

What is the difference b/t QA and QC and their major activities

QA's major activity is to design and train, and QC's major activity is to inspect and repair

What is the difference b/t QA and QC and their change response

QC is reactive and takes action as the problem occurs, and QA is proactive and takes action before the problem occurs

The difference between QC and QA with its purpose

QC recommends corrective action and QA recommends preventive action

Difference between QC and QA according to its focus

QC uncovers defects to be fixed, QA prevents defects

What type of research design uses explorative research, data the is not characterized by numbers and can be textual, visual, or oral

Qualitative Research

A process that assesses the capabiltiy and recommends preventive action

Quality Assurance

In manufacturing, statistics is used for...

Quality Control

A maker of computer chips develops a new training program to assure that quality standards are met. Which of the following activities is the training program an example of?

Quality Control activity Lean Operations activity Quality assurance activity * Just-in-time activity

What management tool is used to satisfy customer needs

Quality Management Principles

A process that assesses performance and recommends corrective action

Quality control

Which type of research design generates numerical data into usable statistics

Quantitative design

What type of research design uses numerical data with measurements and analytics

Quantitative research

EAch of the four quartile groups a population can be divided

Quartiles

What chart is used for range

R chart

What value represents a "goodness of fit"

R square

Management strategy that used results as the central measurement of performance

RBM Results Based Management

Measures the goodness of fit in a regression analysis

R^2 (R square)

Types of tests that use Item Response Theory

SAT and GMAT

Diagram demonstrating all of the elements that can influence a process before it starts

SIPOC

An Organization seeks to shift its business strategy to development of new products for the future while still growing sales of its current products. Which tool could help the company focus on both its financial objective and growth of new products?

SIPOC Diagram Linear Programming Balanced Scorecard * Net Promoter Score

A model that reflects a high level view of a process using suppliers, inputs, processess, outputs, and the customer

SIPOC model

Key performance indicators follow a __________ criteria

SMART

A recent poll of 519 adults who flew in the past year found they ranked the following as their number 1 complaint: cramped seats (45), cost (16), fear of flying (57), security measures (119), poor service (12), connecting flight problems (8), overcrowded planes (42), late planes (57), food (7), and other (51). Which technique would be used display a ranking of the complaints?

Scatter diagram Pareto chart * Cause-and-effect diagram Control chart

A type of index where the price or quantity relative to a base period of 100

Simple Index number

A type of index based on a combination of items/measures without weightine any data more significantly than any other data

Simple composite index

A craftsman builds two kinds of birdhouses. One for bluebirds and one for cardinals. He knows the amount of labor and the units of lumber that are needed for each birdhouse. The craftsman has available 60 hours of labor and 120 units of lumber. Which technique should the craftsman use to minimize cost?

Simulation Linear Regression *Linear programming Breakeven

Which type of quality activity would assess capabilities and recommend process design changes as preventive action?

Six Sigma activity Lean Quality Management Quality assurance activity * ISO management

Manufacturing approach to improving processes

Six sigma

A quality team reviews a process past improvements and type of data that can be gathered. What step is this?

frame the problem

What are two disadvantages of a Balanced Scorecard?

Sometimes difficult to maintain momentum Emphasizes strategy and organizational results * May not encourage desired behavior changes * Links company operations with its strategy

Types of analysis techniques

Statistical and decision

An analysis where the monitored standards meet the derived standards

Statistical process control

What is SIPOC

Suppliers, Inputs, Process, Outputs, Customers

This error repeats itself

Systematic Error-Skewed results

What types of values or answers do you get from T test anova regression time series chi square

T stat F value R squared R squared x^2 (x squared)

T-test used this test statistic

T-value

Tests that compares an individual to defined standards

Test construction

What does it mean when an individual data point has a z-score of +1?

The data point is one standard deviation greater than the mean of the data set

The first step in the Davenport-Kim model is to

frame the problem

What approach does RBM take

life-cycle approach

A loan officer compares the interest rates for 48 month fixed-rate loans and 48 month variable-rate auto loans. Two independent, random samples of auto loans are selected. Which two results happen when the null hypothesis is rejected using a t-test? (Pick 2)

The test statistic is less than the critical value *The null hypothesis is rejected given a probability of being wrong *The test statistic is greater than the critical value The null hypothesis is accepted given a probability of being correct.

A car dealership wishes to forecast car sales based upon price discounts and television ads. What forecasting technique should the dealership use?

Time series analysis Cluster analysis Decision Analysis Multiple Regression Analysis *

A Boston Hallmark store is preparing a budget for the next year and needs to forecast sales. The store notices variation in sales around holidays. What pattern describes the data to be forecasted?

Trend Cyclicality Seasonality * Random Variation

A theory without systemetic error where the observed score = the true score + the random error

True Score Theory

A type of index where certain variables are given weighted factors when calculating the index

Weighted composite index

Which two statements indicate when it is appropriate to use a KPI Dashboard?

When more than a single chart, graph or piece of data are integral to making business decisions * If used over time, can create an internal benchmarking system Needed to emphasize strategy and organizational results When visual representation is needed to see if an organization is meeting the goals *

Tells us the number of standard deviations a data point is from the mean

Z score

Which analysis technique can be used with hypothesis testing when nominal or categorical data is gathered?

Z-score Chi-square* t-test ANOVA

What is the formula for finding a Z score

Z= (a value-mean)/ standard deviation

Breakeven gives us what

a specific answer

What is required for big data analysis

a system of organization

RBM clearly defines ________ of results and requires ________ and _______ ____________

accountability, monitoring, self assessment

What phase of the PDCA model communicate results of the trial whether successful or failure

act

After communicating results, we.....

act on results

Interval data can be...... but cannot be........

added, subtracted multiplied, divided

Is it an advantage or disadvantage if a balanced score card improve internal and external communication

advantage

When KPI data driven results make it easier to quantify performance

advantage

When a balanced score card links strategy to organization results

advantage

When a score card improves organization alignment

advantage

Key word for combination

all possible

For companies to attract and retain their best customers they need a complete portrait of who they are. To develop this portrait companies turn to...

analytics

Keyword for multiplication

and, both, all

Words used to introduce the multiplication rule of probability

and, both, all

A type of statistical analysis that compare 3 or more means

anova

What statistical test should be used to determine if there are significant differences in incomes among the 3 towns

anova

What test compares 3 or more means

anova

Which statistical test compares 3 or more groups

anova

which statistical procedure compare outcomes of different drug testing results

anova

numerical data measures what

anything in the physical world

What sample size would assume normal distribution

at least 30

The A in kpi is

attainable

Shows whether a result meets a requirement or not

attribute

A type of control chart that has categorical or discrete random variable, have defect related characteristics, classify product at good or bad, and requires larger sample sizes

attributes

Two types of control charts

attributes and variables

What type of chart would be appropriate for an anova analysis of 3 means

bar chart

Analytics uses what 3 categories to achieve results

descriptive, predictive, and prescriptive analytics

The Davenport-Kim three-stage model consists of framing the problem, solving the problem, and communicating results. Which two of the following are part of framing the problem stage

determine the scope of the problem and review of previous findings

Another term for descriptive

diagnostic

Is it an advantage or disadvantage when a score card requires time and effort to establish a meaningful scorecard

disadvantage

When balanced score cards are difficult to maintain momentum

disadvantage

another name for categorical data

discrete

What phase of the PDCA model will implement the plan on a trial basis

do

A local school board is studying the impact of a proposed change in testing on math scores. Bias can be introduced into the study by both students and teachers. Which research technique would eliminate this type of bias?

double blind

what type of study is when the data gatherer and participant are not told results

double blind

Neither the treatment allocator nor the participants know who is in the treatment group or control group

double blind study

Objectives of People involvement 3

effective and efficient management, people accountability of own performance, recognition-empowerment-and enhancement of competence facilitates continual improvement

All measurements contain some degree of...

error

A criterion test can be called a

exam cut score

The average outcome (payoff) when the future includes scenarios that may or may not happen

expected monetary value (EMV) analysis

All variable measurements and manipulations are under the researcher's control

experimental study

A Company's product development team test 3 new car waxes by waxing 5 cars with each wax and then running them through a car wash. They then record number of washes it takes before the wax begins to deteriorate. What is the term for the five cars?

experimental unit

What are the 3 process steps to Quantative research

experimental units treatments responses

A QM principle where decisions are based upon analysis and evaluation of data and information

factual approach to decision making

What would cause a systematic error

faulty equipment or measurment instruments

A balance scorecard included (4)

financial customer operational efficiency and employee learning/innovation

Which of the following is not a Balanced Scorecard perspective

financials customers suppliers * internal business processes

another name for a cause and effect diagram

fishbone

What are the 3 essentials for a break even analysis

fixed costs variable costs revenue

A chart that shows the steps of a process

flowchart

Visual tool to understand a process

flowchart

Tools for generating ideas

flowchart cause and effect dia

Process Approach objectives 2

focus n efficient use of activities and resources, optimize performance through effective process management

A correlation is weak if the coefficient is close to...

zero

examples of nominal data

gender, male or female

Results Based Management is particularily used in (2)

government and nonprofit

Two types of descriptive analytics

graphical analysis and discovery of patterns

Key word for cluster

groups

The F value of an ANOVA test stat must be what to reject the null

higher than the critical value

The T value of a t-test stat must be what to reject the null

higher than the critical value

A chart that shows a distribution of frequency of occurences of a variable

histogram

A local plumbing company is analyzing to see how the number weeks taken for their payment receipts is distributed. Which graphical analysis technique should they use?

histogram

Graphical display of data set cnetered

histogram

Tools to organize data

histogram scatter diagram check sheet

Graphical display of data set with one bar for each category

histogram an pareto

types of graphical analysis

histogram, run chart, scatter diagram, pareto chart

What term is used when only considering new cases

incidence

Used to count only the NEW cases of a disease

incidence or incidence rate

What term is used to describe the importance if the incidence is changing over time

incidence rate

examples of ratio data

income stock prices repeat customers

In analytics, as difficulty increases, company value....

increases

When using linear regression, we are using a __________ variable to predict a ___________ variable

independent dependent

Numerical data can accept how much data

infinite or finite

Descriptive statistics are used to

inform /explanatory

Question favor an outcome or the interviewer ask question that favor an outcome

information bias

Benefits of process approach 3

inproved,-onsistent and predictable results, lower cost and shorter cycle times, focused on prioritized improvement opportunities

In the sipoc model, what part of the process adds resources to the process by a supplier

input

Orders data at equal distance apart

interval

What level of measurement are women's dress sizes (2,4,6, etc.)?

interval

Which type of data has an order and is equally placed apart

interval

The resources of RBM are ________ and ________ where the reults of RBM are ________, __________, and _____.

inuts, activities outputs, outcomes, impact

Benefits to continual improvement 3

investigating root-cause followed by prevention and corrective actions, enhanced ability to anticipate risks and opportunities, drive innovation

Unforeseen circumstances causing random deviations

irregularity

What are 2 aspects of data quality management

it cleans data and reduced the amount of incomplete data

A QM principle where leaders of all levels establish unity of purpose and direction, creating conditions of engagement for the organizations quality objectives

leadership

A P value must be

less than .05

examples of ordinal data

levels of energy low, med, high

examples of ordinal data

top 10 cities to retire in or, top 10 football teams

A healthcare provider is researching blood glucose levels before and after exercising. What two elements should be part of any experimental study such as this?

treatment procedures and experimental response

The procedure the researcher applies to each subject

treatments

A general slope upward or downward over a period of time

trend

another name for time series

trend

What type of study is conducted when the data analyzer, data gatherer and participant are not told results

triple blind

the discrete variables can accept how many values

two or more

A test that compares 2 means

two sample t test

A manufacturer of running shoes is implementing lean operation concepts into their production process. Which critical success factor would assure a smooth transition into the new program?

understand customer needs and wants

The first step for Quantitative analysis is to

understand the data

Objective of factual based decision making 2

understanding of cause and effect relationships and unintended consequences, fact-evidence-and data analysis lead to greater objectivity and confidence in decision making

What is the cornerstone of sound decision making

valid data

Decision analysis assigns ....

values to outcomes based on risk and loss

Shows how well a result meets the requirement

variable

A control chart that measures numerical or continuous random variables, can be measured, uses sampling, and requires smaller sample sizes

variables

A stock broker offers two portfolios for his clients. There are various risks with each portfolio and his is trying to minimize the risk of loss. Both portfolios have the same mean return.Which measure should the employee use to decide between these alternatives?

variance

The revenue of NBA teams ranges from $226 million for the New York Knicks to $92 million for the Milwaukee Bucks. Which statistic would measure how far each NBA team's revenue is from the NBA revenue mean?

variance

If the average is the same for two groups, what will determine their difference

variance (standard deviation)

What is Big Data

vary large data sets

Analytics typically implies the use of....

very large data sets

the key word for cross over analysis is

volume

What are some types of non-monetary government benefits

welfare or flood prevention

Descriptive analytics describes what

what has happened in the past

Decision Tree analysis decides

what is the best decision based on an estimated value

What chart is used for mean

x-bar chart

regression formula

y=mx+b

Can the seven tools be used independently

yes

Can you have KPI in each of the perspectives

yes

dependent variables in binary can include...

yes or no, treated or not treated

A standard score or norm test is a

z score

An online marketing organization designed a social media that wants to earn at least $250,000 in revenue. The campaign will reach 10,000 viewers and receive orders with a mean of $50 and standard deviation of $10. Which measure should be used to determine the probability of the campaign receiving at least $250,000?

z score

Based on quality checks at plastic bags manufacturer, the breaking strength of their bags has a mean of 50.5 and a standard deviation of 1.6. A customer's test of the bags finds bag strength of 54.2 or less. Which statistical measure should be used to help determine the probability of the customer's test occurring?

z score

What will tell you how one person is different from the mean

z score

A High School principal wishes to study the math and science performance of individual 12th grade students by comparing their scores across multiple courses. Which analysis technique should the principal use:

z-score * t-test p-value R-square