ACCT Data Analytics - Chapter 5

Prescriptive analytics is performed to identify the best possible options given ____ or changing conditions.

constraints

______ is most directly associated with helping to find anomalies and outliers. A) Benford's law B) Time series analysis C) Pivottables D) Regression analysis

A) Benford's law

What type of analytics addresses questions of "What happened?"? A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

A) Descriptive analytics

What type of analytics would primarily summarize facts and compute sums, averages, counts, etc.? A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

A) Descriptive analytics

Prescriptive analytics would be more likely to use these tools in its analysis than other types of analytics? A) Goal-seek analysis, what-if analysis B) Totals, sums, averages, and subtotals C) Forecasting tools, regression, and classification D) Fuzzy matching, Benford's law, variance analysis

A) Goal-seek analysis, what-if analysis

What kind of analytics is generally used to forecast future sales, earnings, and cash flows from operating activities? A) Time series B) Classification C) Regression D) Benford's law

A) Time series

Which type of question does prescriptive analytics address? A) What should we do based on what we expect will happen? B) What happened? C) Why did it happen? D) Will it happen in the future?

A) What should we do based on what we expect will happen?

Which tool is generally associated with prescriptive analytics? A) What-if scenario B) Fuzzy matching C) Pivottables D) Means, modes, medians, and counts

A) What-if scenario

If the critical value for a one-tailed t-test at the α = 0.05 level is 1.645, the t-statistic needed to reject the null hypothesis of no difference would be _______. A) greater than 1.645 B) less than 1.645

A) greater than 1.645

A _______ t-test has more power than a _______ t-test. A) one-tailed; two-tailed B) two-tailed; two-tailed

A) one-tailed; two-tailed

If p-value < = alpha threshold, you should: A) reject the null hypothesis (i.e., significant result). B) fail to reject the null hypothesis (i.e., not significant result).

A) reject the null hypothesis (i.e., significant result).

Which type of analytics will work to explain why the average effective tax rate changed? A) Predictive analytics B) Diagnostic analytics C) Descriptive analytics D) Prescriptive analytics

B) Diagnostic analytics

What is the final step in the AMPS model? A) Share the Results. B) Share the Story. C) Sharpen the Story. D) Share the Findings.

B) Share the Story.

If we wanted to know what level of sales was achieved last quarter at a competitor company, we would perform __________ analytics. A) diagnostic B) descriptive C) predictive D) prescriptive

B) descriptive

A __________ is a subset of members selected to represent the __________. A) population; sample B) sample; population C) sample; distribution D) statistic; distribution

B) sample; population

A z-score tells us how many __________, a data point (or observation), xi, is from its population mean, μ? A) increments B) standard deviations C) standard errors D) units

B) standard deviations

What tool or technique is used to quantitatively analyze the relationship between and among multiple variables? A) Histograms B) Time series C) Descriptive statistics D) Cross-tabulations

D) Cross-tabulations

What type of analytics would primarily use what-if analysis, scenario manager, and goal seek analysis? A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

D) Prescriptive analytics

Which type of analytics will provide insight on whether the company should rent or own its headquarters? A) Predictive analytics B) Descriptive analytics C) Diagnostic analytics D) Prescriptive analytics

D) Prescriptive analytics

Which distribution is a probability distribution where all outcomes are equally likely? A) Normal distribution B) Poisson distribution C) Level distribution D) Uniform distribution

D) Uniform distribution

Which type of question does predictive analytics address? A) What happened? B) What should we do based on what we expect will happen? C) Why did it happen? D) Will it happen in the future?

D) Will it happen in the future?

The ______ is a statistic used to measure how good the model did at predicting the dependent variable in a regression. A) t-test B) model fit statistic C) z-score D) adjusted r-squared

D) adjusted r-squared

Uncovering the details by summarizing the data at different levels would be an example of _____. A) finding anomalies/outliers B) classifying the data into separable groups C) performing prescriptive analytics D) performing drill-down analytics

D) performing drill-down analytics

If we wanted to know what level of sales would be needed to break even given the current economic environment, we would call that _______ analytics. A) descriptive B) diagnostic C) predictive D) prescriptive

D) prescriptive

Optimization would be a tool used as part of ___________. A) predictive analytics B) descriptive analytics C) adaptive analytics D) prescriptive analytics

D) prescriptive analytics

_____ is a diagnostic analytics technique used to determine patterns between variables and assess how a specific dependent variable is related to an independent variable.

Regression

____ analysis is used in managerial accounting to explain why the actual product cost is different from the standard cost.

Variance

The most common measures of ____ are the standard deviation and the variance.

variability or spread

According to the normal distribution, __________% of the data would fit within 1 standard deviations of the mean. A) 68 B) 99 C) 99.7 D) 95

A) 68

A correlation is used to understand: A) the extent to which variables are related to each other. B) the probability of a difference in means between either two independent samples or a paired sample through time. C) the frequency of the data using a display of rectangles with area proportional to the underlying frequency of the data. D) the basic statistics, including the mean, standard deviation, minimums, and maximums of a data set.

A) the extent to which variables are related to each other.

Which statistic tells us how many standard deviations (σ), a data point (or observation), xi, is from its population mean, μ? A) z-score B) normal distribution C) uniform distribution D) F-statistic

A) z-score

What kind of analytics is generally used to predict whether a company's financial statements are fraudulent? A) Time series B) Classification C) Regression D) Horizontal analytics

B) Classification

If we run a regression where y (college completion rate) = f (factors potentially predicting college completion rate), what is the dependent variable? A) Factors potentially predicting college completion rate B) College completion rate C) Cannot be determined

B) College completion rate

What type of analytics addresses questions of "Why did it happen?"? A) Prescriptive analytics B) Diagnostic analytics C) Descriptive analytics D) Predictive analytics

B) Diagnostic analytics

What type of analytics would include Benford's law to assess whether fraud had occurred? A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

B) Diagnostic analytics

If we run a regression where y (bankruptcy) = f (factors potentially predicting bankruptcy), what is the independent variable? A) Bankruptcy B) Cannot be determined C) Factors potentially predicting bankruptcy D) There are no dependent variables

C) Factors potentially predicting bankruptcy

In the AMPS model, what step immediately precedes Performing the Analysis? A) Mine the Data B) Share the Story C) Master the Data D) Ask the Question

C) Master the Data

What type of analytics would address the question of whether a company will go bankrupt? A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

C) Predictive analytics

Which type of analytics will forecast sales? A) Descriptive analytics B) Diagnostic analytics C) Predictive analytics D) Prescriptive analytics

C) Predictive analytics

Descriptive analytics would be more likely to use these tools in its analysis than other types of analytics? A) Forecasting tools, regression, and classification B) Fuzzy matching, Benford's law, variance analysis C) Totals, sums, averages, and subtotals D) Goal-seek analysis, what-if analysis

C) Totals, sums, averages, and subtotals

Which type of question does diagnostic analytics address? A) What happened? B) What should we do based on what we expect will happen? C) Why did it happen? D) Will it happen in the future?

C) Why did it happen?

The probability that a population parameter will fall between two set values is called a __________. A) sample B) parameter C) confidence interval D) descriptive statistics

C) confidence interval

A __________ is a characteristic of a population. A) descriptive statistics B) normal distribution C) parameter D) sample

C) parameter

If p-value of a statistical test is 0.09 and a 95% confidence interval, you A) accept the alternate hypothesis. B) should reject the null hypothesis (i.e., significant result). C) should fail to reject the null hypothesis (i.e., not significant result). D) have insufficient evidence to either reject or fail to reject the null hypothesis.

C) should fail to reject the null hypothesis (i.e., not significant result).

A t-test is used to understand: A) the basic statistics, including the mean, standard deviation, minimums, and maximums of a data set. B) the relation between specific dependent variable values and independent variable inputs. C) the probability of a statistical difference in means between either two independent samples or a paired sample through time. D) the frequency of the data using a display of rectangles with area proportional to the underlying frequency of the data.

C) the probability of a statistical difference in means between either two independent samples or a paired sample through time.

____ testing allows one to statistically test (i.e., using a t-test or other method) an assertion.

Hypothesis

Auditors are increasingly able to consider data from the full population of transactions, rather than just a sample. (T/F)

True

Prescriptive analytics is the ability to anticipate alternative scenarios. (T/F)

True

The ____ hypothesis is the case management theorizes and/or believes is true.

alternative

Ratio analysis is considered a summarization tool used primarily in _____ analytics.

descriptive

Uncovering patterns is an example of ____ analytics

diagnostic

The ____ sheet is available in the Excel Data Analysis Toolpak to help with predictive analytics.

forecasting

The sample arithmetic ____ is the sum of all data points divided by the number of observations.

mean

Using ____ for crosstabulations to view transactions from a different perspective, is an example of performing drill-down analytics (a category of diagnostic analytics).

pivottables

A group of phenomenon having something in common is called a _____.

population

A _____ distribution is a statistical property that describes the possible values of random variables and the likelihood that a random variable will be within a given range.

probability

As a measure of spread, the difference between the maximum and minimum values of a variable of interest is called its ____

range

A ____ t-test is a statistical test used to compare the means of two sets of data observations.

sample

If we don't know the true population average, we will use the ____ average to make inferences about the true population average.

sample

Whereas a parameter is a characteristic of a population, a _____ is a characteristic of a sample.

statistic