C207 DDDM
Bias introduce because response believe it will be beneficial if selected
Conscious bias
Measures the difference between the third and first quartile
IQR: Inter-quartile range. Must be ordered in highest to lowest value
Model of designing, analyzing, and scoring tests
IRT: Item Response Theory
A researcher wants to predict test scores based upon hours spent studying. Which type of aggression would be more appropriate?
Ordinary least squares regression
Observation points that are distant from other observations.
Outliers. Note: can be include or excluded in analysis (cause skewness).
Graphical display of data set and highest to lowest order
Pareto
A college is reviewing statistics concerning student retention. The college would like to determine the most important factors that cause students to leave and asks the researcher to display this information using one of the seven basic tools of quality. Which tools should be used in this case?
Pareto chart
What does true score theory state about a test without systematic error?
The observed score is the true score plus random error
Compare individual's performance to a standard score (example, cut score 64%)
criterion-referenced
Apply this role and looking for two events occurring (AND)
Multiplication
Name the 4 levels of measurement
NOIR Nominal Ordinal Interval Ratio
Used to analyze if funding is worth the outcome of a project
cost-benefit analysis
Graphical display of data set centered
histogram
Z-score for 99% level of confidence
2.576
Used to compare of the mean of three or more groups
ANOVA
When given P(A) given P(B), you can use this to find the P(B) given P(A)
Bayes Theorem You must know P(A), P(B), P(A) given B
There are six toll booths to enter the highway. What probability does each toll booth worker have of getting the next customer?
1 customer and 6 booths = 1/6 or 16.7%
A correlation is strong if the coefficient is close to
1 or -1
Z-score for 95% level of confidence
1.960
Given the following data set: 9 12 14 10 8 11 12 what is the mode?
12
A normally distributed data set has a mean of 10 and a standard deviation of two. What is the normal probability that a randomly selected event from the data set will be between eight and 12?
68.2%
What percent of quality problems does Ishikawa claim the seven tools can solve?
90%-95%
The number of customers that an automobile service shop receives on any given day is normally distributed with a mean of 75 and a standard deviation of 25. On a given day, 125 oil changes are performed. What is the probability on a given day of 125 or fewer oil changers performed?
97.9%
A non-prophet organization Brandon email campaign with three different messages to solicit additional donations. What should the non-prophet organization used to determine if the average donation difference for the different messages?
ANOVA
Plan - do - study - act Which step is a response to analytical results?
Act
Use this role one looking for one or the other event happening (OR)
Addition
Balance scorecard: improve organizational alignment
Advantage
In a statistical process control analysis, sample data are collected it from and assembly line and measured to see if they fall with in a tolerated measurement range. If an observation does fall within the range, a yes is recorded, and if it falls outside the range, I know is recorded. Which kind of data do the yes and no represent?
Attribute data
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?
Autocorrelation
Which approach uses Financial, customer, internal business processes, and innovation/learning measures?
Balance scorecard
A hardware store has found that there is a 0.25 probability that a customer buys an electrical products, a 0.45 probability that a customer buys a plumbing products, And a 0.10 probability that a customer buys an electrical product if they purchase a plumbing products. Given this information, which does to Sicle rule can be used to determine the probability that a customer buys a plumbing products given that this customer has purchased an electrical product?
Bayes' Theorem
They county government must reduce spending. It was just to eliminate incremental budgeting and aligne budget allocations with each of its units strategic business objectives. How can the county applied data analytic approach is to attain this goal?
By benchmarking like strategies of successful counties
How can organizations implement an effective performance management evaluation system?
By establishing a balanced scorecard
A county government was just you convert government vehicles from gasoline to natural gas. How can the county evaluate the effectiveness of this conversion?
By estimating the payback period
In what ways does probability theory inform decision-making for managers?
By quantifying risk
What does the balance scorecard measure?
CLIF- (customer, Learning, internal process, financial performance) we meeting a strategy?
Assist in brainstorming issues that are causing a problem
Cause and effect diagram Not measurements
Easy told to collect data to create other charts
Checksheet
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 and the hope that the healthcare organization will be able to create early prevention programs. Which type of research design does a study describe?
Cohort study
The order you pick you sample in does not matter
Combination Picking employees for a shift. Order doesn't matter.
Variations excepted as the normal part of the process
Common cause variation
ANOVA
Compare outcomes of different drug testing results
A researcher concludes that bananas create healthy children because the researchers notes indicate that children who ate a banana every day are healthy. Which miss use of statistics would this Saturday be an example of if these children also eat a balanced diet and exercise daily?
Confusion of association and causality
A check she indicates that of 100 returned items, 50 were damaged upon delivery, 30 were the wrong size, 10 war of poor quality, five or a mistake in order, and five or return due to the customer no longer wanting the item. What is the appropriate way to represent these data?
Construct a Pareto chart
Illustrates limits or constraints a process should not exceed
Control chart
Compare individual's performance to a standard score (example: cut score 64%)
Criterion referenced
Represents the probability that a variable falls within a certain range
Cumulative distribution
Repetition in up and down patterns
Cyclicality
Which two decision considerations describe fact based decision making, according to the quality management principles?
Decisions reduce external bias Decisions foster trust in plans
Which two items represent steps of results based management?
Define resources Study the long-term effects of the output
There are two types of statistics or analytics
Descriptive and inferential
A national manufacturer is building an overseas factory to be closer to one of it's largest markets. Which in the Alysis technique would be appropriate when evaluating location options under risk in order to strengthen the firms competitiveness in the new market?
Developing a decision tree
Balance scorecard: difficult to maintain momentum
Disadvantage
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 statistics implies that airline sales drive retail sales?
Does a casual relationship truly exist?
Night of the treatment allocator nor the participants know who is in the treatment group or control group
Double-blind study
The average outcome (payoff) when the future includes scenarios that may or may not happen
Expected Monetary Value (EMV) Analysis
ANOVA uses this test statistics
F-Value (must be higher than the critical value to reject the null)
A hotel chain is interested in improving it's customer service by reducing the amount of time it takes customers to check in. Which analysis technique should they use?
Flow chart
How does the government differ from private sector cost benefit analysis Mark
Government benefits aren't always money. Could be flooded prevention or welfare.
Graphical display of a data set with one bar for each category
Histogram and Pareto
And organization develops a new strategic plan and six ways to measure its performance over a specific period of time. Which system enables the organization to measure performance based upon establish global standards?
ISO
Used to count only the NEW cases of a disease
Incidence (incident rate)
What is the most important analytic to determine the success or failure of a particular year's flu vaccine?
Incidents accounting for all new cases
What does the scatter diagram of an organizations retail sales and advertising expenditures indicate? The diagram shows consistent linear positive advancements with clusters closely related
Increases in advertising expenditures are associated with increases in retail sales
Descriptive statistics are used to
Inform / Explanatory
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 rules should be used to find the probability that a patient needs treatment for a broken bone and a concussion?
Intersection Multiplication principle
Orders data at equal distance apart
Interval
Which two statements describe how the dedication of leader ship and a focus on process enhance quality?
It ensures clearly aligned goals It makes results easier to manage and achieve
What are some of the aspects of data quality management?
It reduces the amount of incomplete data It cleans data
What is the disadvantage of a balanced scorecard?
It requires significant time and effort to establish a meaningful score card
Performance measure for one specific goal
KPI - Key performance indicator
Multiple KPIs are displayed for the big picture
KPI dashboard (more than one chart is needed)
How do balance scorecard differ from KPI dashboards?
KPI dashboard provide visual representations, such as charts and graphs, of KPI's
Control charts
Monitor production process
A company that raises turkeys is hoping to increase the rate of growth of the birds while controlling the cost of feeding the birds. 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 programming
Measure of central tendency that is influenced by the size of the values in a data set
Mean note: skewness does affect mean
Bias that occurs from not selecting a random sample
Measurement bias
A manager is analyzing a data set that includes information on individual incomes. The manager knows that the data set is fairly representative of the general population includes several millionaires. Based on the status of? Which measure of central tendency best represents the middle of the distribution?
Median
Middle score for a set of data
Median (Note: skewness does not affect the median)
A professional services firm is undergoing a business process improvement exercise to improve productivity, staff morale, and client satisfaction. Which technique might the firm used to evaluate the strength of customer service relations?
Net promoter score
Compares one individual's performance two other individuals
Norm referenced
A company is trying to increase its online sales revenue by improving it's 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?
Number of purchases per email Spending per purchase
Error may occur from missing data (space not filled in)
Omission Error - Distorted results
Place qualitative objects in some kind of order
Ordinal
And 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
Inferential statistics are used to
Predict / Trend
A company decides to auction excess inventory on an auction website. They have performed a regression analysis to identify how the length of the auction in packs the final price. Which statistic indicates the strength of the relationship between the length of auctions in the final price?
R-squared
Measures the goodness of fit in a regression analysis
R2 (r squared)
Management strategy that uses results as the central measurement of performance
RBM: Results Based Management
Unpredictable error
Random Error - No correlation
Continuous data with unique is zero point
Ratio
What is the process of quality control?
Reduce/ minimize errors
What are two reasons for the increasing use of analytics in organizational decision making?
Relatively lower cost of computer storage Higher computer processing power
A professional services firm wants to track and monitor important financial performance measures of the company (e.g., year over year change in revenues and profits). Which performance approach would best meet the companies objective?
Results based management
Which of Ishikawa's seven basic tools of quality is used to illustrate performance measurements over time?
Run chart
Diagram demonstrating all of the elements that can influence a process before it starts
SIPOC (Supplier - Input - Process - Output - Customer)
A doctoral student is serving chief executive officers 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?
Scatterplot
Which graphical tool is used to illustrate a possible relationship or a correlation between two variables?
Scatterplot
A retail store notices a spike in turkey sales every November. Which timeseries pattern are turkey sales likely to exhibit?
Seasonality
Which common analytic measure is used to improve business performance?
Simple composite index
Manufacturing approach to improving processes
Six Sigma
A soft drink manufacturer performs a control chart analysis and the results indicate that the soft drink bottles are consistently under filled by a large amount according to specifications. The system was evaluated three months prior and was determined to be stable and filling bottles with an excepted limits. What is This consistent underfilling an example of?
Special cause variation
Variation from abnormality causing a large discrepancy in results
Special cause variation
T-test uses this test statistic
T-Value (must be higher than the critical value to reject the null)
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 to statistics would be needed in order to estimate the number of calls that would be receive 90% of the time?
Standard deviation Mean
Which key performance indicator can a hotel chain used to measure its ability to meet client tastes and preferences?
Surveying customer satisfaction upon check out
When conducting a study that measures and individuals wait, all skills are calibrated prior to use in measurement. Which type of error should do this procedure significantly reduce?
Systematic error
Several missing values in a particular field in a data set were observed. The likelihood of a record having a missing value is correlated to another variable in the data set. Which two types of error might be introduced into the data set if the remove record included missing values?
Systematic error Omission error
This era repeats itself
Systematic error - skewed results
A research study examined the impact of product advertisement exposure on the products brand awareness. The appropriate statistical test indicates that the no hypothesis should be rejected with 95% confidence. What can be concluded from the study?
The advertisement was effective in building brand awareness
What does it mean when individual data point has a Z score of -2?
The data point is to standard deviation is less than the mean of the data set
It manager uses a linear regression to examine how the store is the retail sales are predicted by advertising expenditures. What will retail sales represent in this regression?
The dependent variable
A hospital gathers the blood pressure readings of a sample of patients. They find that the mean, median and mode of this data set are all nearly equal and that 50% of the blood pressure readings are less than the mean and 50% or greater than the mean. Which histogram would correctly graph this data set?
The histogram would be highest in the middle and equal on both sides
And advertising manager creates a research study by presenting low, medium, or high frequency of the same ad and marched markets. The manager then reports on sales in each market location. What is the term for the different sales in the study?
The response variable
The management for hospital a conducted a survey of its patients opinions including gathering the demographic data to determine which programs should be pursued during the upcoming fiscal year. Upon analyzing the response on the need for a cosmetic surgery program for the hospital, it was found that there was an are score of 0.75, and AP of 0.03 between a patient's income level and support for the creation of a cosmetic surgery department. Which statement provides an effective strategic decision based on an analysis of the given information?
There is a strong positive relationship for a cosmetic surgery program as a function of income, and this program should be developed in high income areas.
In what two ways are KPI dashboard is useful and performance assessment?
They are visual representations of key areas of focus They show trends that represent organizational results over time
What is a significant disadvantage of KPI's?
They require significant ongoing maintenance
A simple regression using time as the independent variable
Time series
A doctoral student is surveying chief executive officer us to understand their relationships with their governing boards. The student receives responses to a survey with 10 questions that writes the respective relationships. Why would the student measure the standard deviation of responses?
To measure the spread of data
Correlation
Understand effective marketing to spend advertising dollars efficiently
What is big data?
Very large data sets
Can the seven tools be used independently?
Yes
The average test score of students taking an exam was 70% with a standard deviation of 8.5%. Which tool should be used to compare a student score to the group average?
Z-score
Tell us the number of standard deviation's a data point is from the mean
Z-score = (value - mean) / standard deviation
Advantage or Disadvantage of balanced score card? Improves Internal and External Communication
advanatage
Balanced scorecard: links strategy to organizational results
advantage
KPI: data driven results make it easier to quantify performance
advantage
Shows whether a result meets a requirement or not
attribute
Participants are not told if they are in the treatment group or control group
blind study
Used to study the composition of a data set and examine the distribution.
box plot
Measures the strength of a linear relationship
correlation coefficient
Advantage or Disadvantage of balanced score card? Requires time and effort to establish a meaningful scorecard
disadvantage
KPI: difficult to change once set up
disadvantage
All variable measurements and manipulations are under the researchers control
experimental study
Visual tool to understand a process
flowchart
Which phrase is a description of quality assurance?
focuses on training
Questions favor an outcome or the interviewer asks questions that favor an outcome.
information bias
Unforeseen circumstances causing random deviations.
irregularity
What is true of cost effective analysis?
it analyzes the cost of achieving a quantifiable goal
What is a description of data mining?
it discovers patterns or trends in large data sets
A joint venture is established between two firms to use their core competencies increase their market share. How would a SIPOC (suppliers, inputs, process, outputs, and customers) Diagram benefit the joint venture?
it provides a holistic view of the entire operation
Which approach focuses on eliminating activities that do not add a value or satisfy customers?
lean operations
A technique for minimize total cost or maximize profit based on constraints
linear programming
A technique using a single independent variable to predict a single dependent variable
linear regression
Which two attributes indicate potential data quality issues when evaluating a set of nominal data?
missing data misspelled data
A technique using more than one independent variable to predict a single dependent variable
multiple regression
Identify, group, or categorize
nominal
Measures of central tendency are approximately equal (mean and median)
normal distribution
Used when impractical or impossible to control the conditions of the study
observational study
Which type of data are the Olympic medals of gold, silver, and bronze examples of?
ordinal data
Outliers create this type of error
out of range
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
Used to count ALL of the existing cases in a disease
prevalence
A list of all the different probabilities of each outcome that can occur
probability distribution
In manufacturing, statistics is used for:
quality control
Each of the four quartile groups a population can be divided
quartiles
Illustrates performance measurements over a period of time
run chart
And analyst use multiple on your profession to explore store A's sales (Y) are protected by store is advertising expenditure dollars (variable x1) and the advertising expenditure dollars of store is competitor (variable x2) The estimated regression is y= 532 + 80.5 x1- 35.6 x2. Which scenario would be predicted if x1 is $1,000 and x2 is also $1,000?
sales of $45,432
Used for potential relationships and correlation between variables
scatter diagram
Regular pattern within a single year
seasonality
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?
standard deviation
The spread of data in a sample. How far the data points are from the mean
standard deviation
The procedure the researcher applies to each subject
treatments
A general slope upward or downward over a period of time
trend
Shows how well a result meets the requirement
variable
If the average is the same for two groups, what will determine their difference?
variance (standard deviation)
A correlation is a weak if the coefficient is close to
zero