C207 Data-Driven Decision Making

An analyst used multiple linear regression to explore how Store A's sales ( y) are predicted by Store A's advertising expenditure dollars (variable x1) and the advertising expenditure dollars of Store A's competitor (variable x2). The estimated regression is y = 532 + 80.5 x1 - 35.6 x2. How much sales would be predicted if x1 is $1,000 and x2 is also $1,000? $45,432 $116,632 $44,900 $44,367

$45,432

A nonprofit organization ran an email campaign with three different messages to solicit additional donations. What should the nonprofit organization use to determine if the average donation differs for the different messages? T-test Mean ANOVA Median

ANOVA

A researcher looks at moving average data on store sales and wishes to perform a multiple regression of interest rates and disposable income. What is a particular concern when performing time series multiple regression? Multicollinearity Heteroscedasticity Homoscedasticity Autocorrelation

Autocorrelation

A hardware store has found that there is a 0.25 probability that a customer buys an electrical product, a 0.45 probability that a customer buys a plumbing product, and a 0.10 probability that a customer buys an electrical product if they purchase a plumbing product. Which statistical rule can be used to determine the probability that a customer buys a plumbing product given that this customer has purchased an electrical product? Bayes' theorem Multiplication Combination Conditional probability

Bayes' theorem

How does probability theory inform decision-making for managers? By quantifying risk By quantifying data By quantifying quality By quantifying costs

By quantifying risk

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. Which type of research design does this study describe? Double-blind study Systematic study Cohort study Experimental study

Cohort study

A researcher concludes that bananas create healthy children because the researcher's notes indicate that children who eat a banana every day are healthy. Which misuse of statistics would this study be an example of if these children also eat a balanced diet and exercise daily? Unfounded assumptions Lack of blinding Faulty operationalization Confusion of association and causality

Confusion of association and causality

Which two decision considerations describe fact-based decision-making, according to the quality management principles? Choose 2 answers. Decisions reduce external bias. Decisions have marginal effect on relationships with suppliers. Decisions foster trust in plans. Decisions use diversity of experience.

Decisions reduce external bias. Decisions foster trust in plans.

A manager uses a linear regression to examine how the store's retail sales are predicted by advertising expenditures. Which type of variable do retail sales represent in this regression? Independent variable Dependent variable Control variable Predictor variable

Dependent variable

In the month of December, there is a strong positive correlation between airline ticket sales and retail sales. Which question should the researcher consider before concluding that the correlation statistic implies that airline sales drive retail sales? Does a causal relationship truly exist? Are the data biased? Is the sample size large enough? Does the sample accurately reflect the population?

Does a causal relationship truly exist?

A medical care provider determines the probability that a patient needs treatment for a broken bone, the probability that a patient needs treatment for a concussion, and the probability that a patient needs treatment for both a broken bone and a concussion. Which two techniques apply in finding the probability that a patient needs treatment for a broken bone and a concussion? Choose 2 answers. Intersection Union Multiplication principle Mutually exclusive

Intersection Multiplication principle

Which two statements describe how the dedication of leadership and a focus on process enhance quality? Choose 2 answers. It ensures a systems approach. It enhances customer loyalty. It ensures clearly aligned goals. It makes results easier to manage and achieve.

It ensures clearly aligned goals. It makes results easier to manage and achieve.

What are two aspects of data quality management? Choose 2 answers. It calculates spurious data. It reduces the amount of incomplete data. It monitors data input rates. It cleans data.

It reduces the amount of incomplete data. It cleans data.

A company that raises turkeys is hoping to increase the rate of growth of the turkeys 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? Correlation Linear programming Chi-square Z-score

Linear programming

A manager analyzes a data set that includes information on individual incomes. The manager knows that the data set is fairly representative of the general population and includes several millionaires. Based on this data set, which measure of central tendency best represents the middle of the distribution? Mean Median Frequency Mode

Median

Which two attributes indicate potential data quality issues when evaluating a set of nominal data? Choose 2 answers. Outlier data Missing data Out-of-range data Misspelled data

Missing data Misspelled data

A company is trying to increase its online sales revenue by improving its email advertising campaign for repeat customers as well as new customers. Which two variables would be used in determining a campaign to maximize revenue gain? Choose 2 answers. Number of purchases per email E-mail content Spending per purchase Cost per email

Number of purchases per email Spending per purchase

A researcher wants to predict student test scores based on hours spent studying. Which type of regression would be more appropriate? Weighted least squares regression Ordinary least squares regression Logistic regression Multiple regression

Ordinary least squares regression

Which type of data are the Olympic medals of gold, silver, and bronze examples of? Nominal data Ordinal data Interval data Ratio data

Ordinal data

An organization is concerned about whether quality control standards are being met and develops a strategy to test quality control metrics. Which step does this represent in the plan-do-check-act cycle? Plan Do Check Act

Plan

Analytics is a broad term that refers to a variety of tools that inform managerial decisions. Which term can be used to describe managerial decisions? Prescriptive Descriptive Pareto chart Biased

Prescriptive

A company decides to auction excess inventory on an auction website. The company has performed a regression analysis to identify how the length of the auction impacts the final price. Which statistic indicates the strength of the relationship between the length of the auction and final price? R-squared Z-score P-value F-statistic

R-squared

What are two reasons for the increasing use of analytics in organizational decision-making? Choose 2 answers. Relatively lower cost of computer storage Lower availability of statistical experts Higher cost of obtaining data Higher computer processing power

Relatively lower cost of computer storage Relatively lower cost of computer storage

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? Experimental unit Treatment Response variable Intervention

Response variable

A doctoral student surveys chief executive officers (CEOs) to understand their relationships with their governing boards. The student determines the years of business experience for each CEO as well as their rating, on a 10-point scale, of satisfaction with the governing board. Which statistical approach should be used to display the data for analysis? Scatter plot Median Bell curve Mean

Scatter plot

Which graphical tool is used to illustrate a possible relationship or correlation between two variables? Run chart Scatterplot Box plot Histogram

Scatterplot

A retail store notices a spike in turkey sales every November. Which time series pattern are turkey sales likely to exhibit? Trend Cyclical Seasonal White noise

Seasonal

After evaluating manufacturing times for a particular product, a manager determines that the times are spread out across the distribution. The manager has been asked to determine how far, on average, the time is from the mean. Which statistic roughly measures the average distance of a data point from the mean of the distribution? Median Standard deviation Mode Arithmetic mean

Standard deviation

A manager of a call center is in charge of creating a staffing plan. The number of calls received per day is normally distributed. Which two statistics would be needed to estimate the number of calls that would be received 95% of the time? Choose 2 answers. Standard deviation Mean Median Interquartile range

Standard deviation Mean

When conducting a study that measures an individual's weight, all scales are calibrated prior to use in measurement. Which type of error should this procedure significantly reduce? Systematic error Omission error Random error Information error

Systematic error

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 two types of error might be introduced into the dataset if the removed record included missing values? Choose 2 answers. Systematic error Omission error Random error Typographical error

Systematic error Omission error

A research study examined the impact of product advertisement exposure on that product's brand awareness. The appropriate statistical test indicates that the null hypothesis should be rejected at the 5% significance level. What can be concluded from this study? The advertisement was effective in increasing sales. The advertisement was effective in building brand awareness. Five percent of the subjects did not like the advertisement. Ninety-five percent of the subjects liked the brand.

The advertisement was effective in building brand awareness.

What does it mean when an individual data point has a z-score of -2? The data point is greater than the mean of the data set. The sample standard deviation of the data set is negative. The data point is equal to the mean of the data set. The data point is two standard deviations less than the mean of the data set.

The data point is two standard deviations less than the mean of the data set.

A doctoral student is surveying chief executive officers (CEOs) to understand their relationships with their governing boards. The student receives responses to a survey with 10 questions that rates the respective relationships. Why would the student measure the standard deviation of responses? To create a bell curve To measure the spread of the data To determine if the data is nonlinear To understand the midpoint location of the data

To measure the spread of the data