Foundations of Analytics

true

(T/F) Modern business analytics can be viewed as an integration of BI/IS, statistics, and modeling and optimization.

false

(T/F)A trader who wants to predict short-term movements in stock prices is likely to use descriptive analytics.

internal

(primary) from company records, business transactions, automated data-capturing equipment

external

(secondary) from published sources, such as government and commercial data sources, customer research providers, online research

predictive analytics

Example: Builds up a forecasting model and predict sales based on difference price

prescriptive analytics

Example: Develop an optimization model to identify the best combination of pricing & advertising strategies to maximize profit

descriptive analytics

Example: Examine historical data for similar products (prices, units sold, advertising...)

generated

From a survey for a special purpose (e.g. customer survey)

c. An equal sign

Functions in MS Excel must begin with ___. a. An ( ) sign b. A plus sign c. An equal sign d. A > sign

descriptive analytics

Is the most used and most well-understood type of analytics. It allows us to use data to understand past & current business performance.

big data

Is the term used to describe huge amounts of production, consumer, & social media data collected in digital form from such locations as: web sites, credit cards, POS records, social media, ...

business analytics

The process of using information technology, statistical analysis, quantitative methods, mathematical or computer-based models to convert data into meaningful information and help managers gain improved insight about their business operations and make better, fact-based decisions.

volume, veracity, velocity, variety

What are the 4 V's of Big data?

internal, external, generated

What are the sources of data?

descriptive, predictive, and prescriptive

What are the three types of analytics?

c. Column chart

What type of chart is most appropriate for comparing values over categories? a. Pie chart b. Line chart c. Column chart d. Combo chart

c. Use 3D graphs to grab viewers' attention.

Which of the following is not one of the tips for effective dashboard design? Address only relevant key questions. Choose the right type of data chart. Use 3D graphs to grab viewers' attention. Position the most important charts at the top-left. Keep the design simple and easy to understand.

b. AVG

Which one is not a function in MS Excel? a. SUM b. AVG c. MAX d. MIN

prescriptive analytics

answers the question of what we should do to optimize our performance based on potential constraints. It is especially useful when problems involve too many choices or alternatives for a human decision maker to effectively consider.

c. OR

A logical function that returns TRUE if any of the conditions is true and FALSE if not. a. NOT b. AND c. OR d. IF

b. =SUMIF(A2:A7, "A", E2:E7)

Below is a spreadsheet of purchase orders for a computer software retailer. To find the total order cost from supplier A, what Excel formula should be used in B9? =SUM(E2:E7) =SUMIF(A2:A7, "A", E2:E7) =COUNTIF(A2:A7, "A") =SUMIFS(A2:A7, "A", E2:E7)

predictive analytics

seeks to predict the future by examining historical data, detecting patterns or relationships in the data & extrapolating these relationships forward in time.