C207 Data Driven Decision Making
Which of the following is a disadvantage of cluster analysis?
It is a long and expensive process.
Which of the following tools is not used to evaluate numerical data?
a flowchart
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?
Intersection Multiplication principle
If you were to take your temperature 10 times in a row using the same thermometer and get the following results (in degrees Fahrenheit), what could you assume about the thermometer? 34, 99, 108, 45, 66, 21, 78, 53, 94, 102
It is neither reliable nor valid.
Which of the following is a disadvantage of key performance indicators (KPIs)?
KPIs are often only a rough guide.
If a company has a positive variance against its target for a performance measure, what does that mean?
The company exceeded its target performance goal. Variance = actual performance - target performance
The Consumer Price Index (CPI) is an example of a ________.
Weighted Composite Index
Assume you are measuring the various returns on investment, over the past year, for four different stocks in your portfolio. You find the following values (each as a percent of your investment): 4.68, 5.65, 3.78, -0.46, 6.91. What kind of data are these data points?
continuous data
The goals a company must reach in order to consider itself successful are called?
critical success factors
If you were to take your temperature 10 times in a row using the same thermometer and got the same result every time, you could say that the thermometer is __________.
reliable
Suppose you were making a simplified representation of a complex problem in order to solve it, which stage of the Three Stage Model would you be in?
solving the problem
The science of using mathematical procedures to describe data is __________.
statistics
Select the choice that is true. Regression analysis:
takes information from one data set and can predict information for another data set.
Standard deviation measures
the dispersion from the average for the data set.
Which of the following would be most helpful in completing quality assurance activities?
training line workers to institute new testing standards
California is about 160,000 square miles. Maine is about 35,000 square miles. If California had one and a half times as many trees as Maine, then:
trees are more prevalent in Maine.
If you designed a drug trial in which the subject, the data gatherer, and the treatment allocator did not know who was in the control group, then you created a __________ study.
triple-blind
What is a disadvantage of a using net promoter score in an organization?
A net promoter score system does not determine the area of dissatisfaction.
Elizabeth got a 75 on her performance review. The average was 80, but the standard deviation was 3.5. Determine the z-score for her performance review.
-1.43 (75-80)/3.5
There is an 80 percent chance of snow. If it snows there is a 10 percent chance of Todd walking to the store. If it doesn't snow there is a 60 percent chance of Todd walking to the store. What is the likelihood that it will not snow and Todd will walk to the store?
0.12 P(no snow∩walk)=P(no snow)×P(walk|no snow)=P(no snow∩walk)=P(no snow)×P(walk|no snow) = 0.20×0.60=0.12=12%
There is a 90 percent chance that a package will arrive within three days of when it was shipped. Also, there is a 75 percent chance that it will get wet. There is a 70 percent chance that it will get wet and will be delivered within three days. What is the likelihood that at least one of these events occurs?
0.95 This is a union between P(on time) and P(wet). Therefore, P(on time∪wet)P(on time∪wet) =P(on time)+P(wet)−P(on time∩wet) =0.90+0.75−0.70=0.95=95%
Determine the Mode, Median, Mean (in that order) from the following data set.: 4, 7, 11, 12, 14, 14, 15, 17, 17, 17, 18, 20, 23, 24, 26, 29, 35, 39, 40
17, 17, 20.11
Given the following data set:9, 12, 14, 10, 8, 11, 12 What is the mode?
12
Companies A, B, and C were the three construction companies in Dedge, Minnesota in 2012. Companies A, B, and C built 9, 21, and 15 house additions in 2012, respectively. Company A went out of business after 2012 while Company C seriously expanded. No construction companies were founded between 2012 and 2013. In 2013, Companies B and C built 25 and 29 house additions, respectively. What is the simple composite index of house additions from the construction companies in Dedge, Minnesota for 2013. Hint: the base period is 2012.
120 2012 = 9+21+15 =45 2013 = 25+29 = 54 (54/45) * 100 = 120
Mary is determining the likelihood that she will lose money on an investment. There is an expected 10 percent gain in a normally distributed dataset, with a standard deviation of 10 percent. The likelihood she'll lose money is _______ percent.
16 This is a little tricky as 68 percent of the dataset will be between a 0 and 20 percent gain. The other 32 percent is above 20 percent and below 0 percent. We care about the half that is below 0 percent, therefore half of the 32 percent outside of one standard deviation. Therefore there is a 16 percent chance Mary will lose money on this investment.
A company predicts 300 people to make purchases this year on Black Friday. The total number is actually 282. What is the variance? And is it favorable or unfavorable?
18, unfavorable 300-282 = 18 less than prediction
The following is a list of prices for a barrel of oil over time: 20 dollars in 1990 15 dollars in 1995 27 dollars in 2000 50 dollars in 2005 75 dollars in 2010 What is the simple index number for the price of oil in 2005? Hint: the base period is 1990.
250 50/20 * 100 = 250
The greatest variance in scores occurs if ___ percent of the class gets each question correct.
50
A company is trying to determine their net promoter score. If their net promoter score is lower than the industry average, they will begin an initiative to improve customer satisfaction. The industry average net promoter score is 12 percent. 200 people respond to a survey of whether they would recommend the company to a friend. On a scale from 0 to 10, 40 people answered between 0 and 6, 105 people answered with either a 7 or 8, and 55 people answered with either a 9 or 10. What is the company's net promoter score?
7.5 40/200 = 20% detractors 55/200 = 27.5% promoters 27.5 -20 = 7.5
A company's revenue is 1.4 million dollars for the year and 400 thousand dollars in the fourth quarter. The same company's costs are 1.2 million dollars for the year and 350 thousand dollars in the fourth quarter. What is the ratio of revenue to costs for the fourth quarter of the year? What is the proportion of revenue in the fourth quarter to total revenue for the year? (Answers in the following form: Ratio, Proportion) The answers are simplified.
8:7, 2:7 The ratio of revenue to costs for the fourth quarter of the year is 400 thousand to 350 thousand. This is simplified to 8:7. The proportion of revenue in the fourth quarter to total revenue for the year is 400 thousand to 1.4 million. This is simplified to 2:7.
Compare outcomes of different drug testing results
ANOVA
How do you determine the early finish date for an activity in a network diagram?
Add the duration of the activity to the early start date.
Mr. Wonka notices that the last twenty times he invented a new chocolate candy, his major competitors, Count Chocula, and the Easter Bunny, have big sales in late October. Mr. Wonka feels directly responsible for the profit of his competitors. What is the flaw in this experiment?
Association vs. Causation
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
How does probability theory inform decision-making for managers?
By quantifying risk
Catherine is trying to sell a ticket to the Super Bowl. She is determining whether or not she should sell a ticket now or wait until just before the game and try and sell it then. Currently, someone is offering $350 for the ticket. From research of past prices, she knows that the tickets immediately before the Super Bowl are sold for about $500. She determines that there is a 75 percent chance she will be able to sell the ticket immediately before the Super Bowl. Based on expected payoffs from risk decision making, what should she do? How much is the difference if she chooses to sell now?
Catherine should wait to sell ticket; the difference will be $25. P(atSB) =0.75×$500+0.25×$0=$375
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?
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?
Confusion of association and causality
Monitor production process
Control charts
Understand effective marketing to spend advertising dollars efficiently
Correlation
Kai's team is running an experiment to see if their ideas will work before they implement them company-wide. What step of the PDCA cycle are they in?
Do
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?
Company A predicts 45 customer visits for the week and actually gets 50 customer visits for the week. Company B predicts a 5 percent decrease in customer visits and gets an actual decrease of 3 percent in customer visits. Is the variance for company A favorable or unfavorable? Is the variance for company B favorable or unfavorable?
Favorable, Favorable
Which one of the following is NOT a fundamental element of, and essential to, epidemiology? a) Proportion b) Index Number c) Rate d) Ratio
Index Number
What are the four main perspectives examined by the balanced scorecard?
Innovation and Growth Financials Internal Business Processes
Which graphical tool is used to illustrate a possible relationship or correlation between two variables?
Scatterplot
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?
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?
Median
Which one of the following is criterion-referenced test? a. A history test where the professor "curves" the test, making sure the average for the entire class is at least 75. b. The horses competing at the Kentucky Derby where the winner gets crowned in the winner's circle with a garland of roses c. Medical students needing to effectively give an appendectomy on a mannequin before passing their appendicitis course. d. The Mensa society is only open to those that score in the top two percent on the IQ test (a standardized test).
Medical students needing to effectively give an appendectomy on a mannequin before passing their appendicitis course.
Which two attributes indicate potential data quality issues when evaluating a set of nominal 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?
Number of purchases per email Spending per purchase
Doctor Andrews has been trying to measure the likelihood of heart attack risk. Doctor Andrews decides to monitor hair length in people to determine those at high risk of heart attack. What is the flaw in this experiment?
Operationalization
Which type of data are the Olympic medals of gold, silver, and bronze examples of?
Ordinal data
If there is a relationship between variables, but the relationship is not linear, what possible challenge with regression could it be?
Polynomial Regression
We perform a regression analysis on a pair of variables and determine that there is a linear relationship. The regression line is determined to be y=12x−5y=12x-5. What type of linear relationship exists between the independent variable, x, and the dependent variable, y?
Positive
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
Which of the following does NOT describe R-squared?
R-squared shows negative correlation when closest to 0. R-squared shows no correlation when closest to 0. It shows negative correlation when closest to -1.
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
Bethany notices that her husband is wearing a blue sweater on Tuesday. She cannot remember what he has worn previous Tuesdays. The next Tuesday she notices he is wearing another blue sweater. She concludes that if it is Tuesday, he will wear a blue sweater having data from her experiment to support this. What is the flaw with this experiment?
Small Sample Size
A Net Promoter Score seeks to quantify which of the following?
Strength of customer relations
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
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?
Systematic error Omission error
When determining the reliability of a test, the same test is given to the sample on two different occasions. What type of reliability test is this?
Test-Retest Method
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 building brand awareness.
What does it mean when an individual data point has a z-score of -2?
The data point is two standard deviations less than the mean of the data set.
A balanced scorecard usually has a list of objectives. In each objective, a variance is shown. What is the meaning of variance when used on a balanced scorecard?
The difference between the target performance and the real performance
According to McKinsey & Company, what are the areas of performance measurement that needs to be focused on in nonprofit management?
The employee effectiveness The progress on its goals The success of mobilizing its resources
How would a greater number of samples and a fewer number of populations affect an ANOVA analysis?
The results would be more accurate.
In results-based management (RBM), which of the following is the definition of Outcome?
The short-term effect that the outputs will have on the organization
The quality management team at Snoop Diagnostics wants to understand how strong the relationships are between two sets of items. They set up an L-shaped matrix diagram and place one set of items into the rows of the matrix and the other set of items into the matrix's columns. They use stars, diamonds, and plus-signs to mark the strength of the relationships between the items. When they are done, they notice that some of the cells in the matrix are blank but decide to move on anyway. They analyze the chart, make plans to address the trends they see and then post the chart for the rest of the organization to see. What is wrong with the team's process?
The team forgot to create a legend to explain the symbols they used.
The third stage of Davenport and Kim's Three-Stage Model of quantitative decision making is which of the following?
communicating results
A company has a survey process for determining its net promoter score. 50 people responded to the survey with an answer between 6 and 10? How does NPS classify this group?
This is not a defined group.
There are five steps to the process of results-based management. Which of the following is NOT one of the three steps in the RESULTS part of results-based management?
Three Steps: Impact Outputs Outcomes
Which of the following is not a technique a manager uses when forecasting?
Transitive
If the United States had 300 Olympic athletes and 60 of them won a medal while France had 100 Olympic athletes and 9 of them won a medal, which country had a higher prevalence of Olympic athletes winning medals? By what percent?
United States, 11 percent US = 60/300 = 20% France = 9/100 = 9% 20%- 9% = 11%
You survey 100 New Yorkers about their preference for New York-style or Chicago-style pizza. What would be wrong with this?
You would encounter measurement bias
Hector has asked his team to collect data to show when and where defects occur. Now he is having problems compiling the information because the people on his team all decided to collect the data in different ways. What tool should Hector have asked his team to use to make this process easier to manage?
a check sheet
In the military, a cost-benefit analysis might not be easily evaluated. Because of this, the military often uses:
a cost-effective analysis.
A trend is...
a general slope upward or downward over a long period of time.
What are two reasons for the increasing use of analytics in organizational decision-making? a) Relatively lower cost of computer storage b) Lower availability of statistical experts c) Higher cost of obtaining data d) Higher computer processing power
a) Relatively lower cost of computer storage d) Higher computer processing power
Which one of the following is NOT an example of big data? a) The amount of money collected by taxes b) The results of a one-question survey about voting preferences collected from many c) Weights of people in the city of Houston, Texas d) Incomes of people from St. Louis
a) The amount of money collected by taxes
Which of the following statements about a process is false? a. Activities do not have to be completed in order. b. A process produces an output. c. Viewing work as a process allows you to evaluate steps and the interaction among steps. d. Others should be able to repeat the process to achieve similar results.
a. Activities do not have to be completed in order.
What are two aspects of data quality management? a) It calculates spurious data. b) It reduces the amount of incomplete data. c) It monitors data input rates. d) It cleans data.
b) It reduces the amount of incomplete data. d) It cleans data.
Your quality management processes should monitor ________.
both the products you make and the processes you use to make them
Which of the following could NOT be an appropriate key performance indicator (KPI)? a) Fatality rate in pregnant woman b) Average time spent in stores c) New company goals d) Employees' amount of sleep
c) New company goals
Which of the following statements about metrics is false? a. Metrics should be continually evaluated to ensure that they are actually providing the data you are looking for. b. Metrics can be used to compare plans to performance. c. Metrics can help expose trends, but teams must use statistics—not metrics—to uncover root causes. d. Collecting regular measurements can keep a team focused on improving quality.
c. Metrics can help expose trends, but teams must use statistics—not metrics—to uncover root causes.
Which of the following is NOT an application of statistics in business? a. Determine the internet advertiser that will reach the most people from extensive page view data. b. Determine a target market based on information on household incomes throughout the country. c. Predict trends in certain investments of big companies from previous results of Fortune 100 companies. d. Forecast likelihood of board of director decisions from previous voting habits.
d. Forecast likelihood of board of director decisions from previous voting habits.
Cleaning and organizing collected raw data refers to which of the following?
data management
Data mining is not useful in:
determining the underlying causes of trends.
According to the 2000 census the average number of people in a family in the U.S. was 3.17. Since it isn't possible to have .17 of a person, you would use a __________ data point to describe the number of people in your family.
discrete
Rankings are an example of which kind of data?
discrete
Performance measures are used to evaluate the _______ of an individual or group by using data collection and _________.
efficiency, analytics
Jane works for a public health company. She is working on an anti-tobacco campaign and is interested in how smoking cigarettes affects a smoker's cholesterol. She could use the number of cigarettes smoked per day as her _____ variable and place it on the __-axis.
independent, x
Who is most likely to use a company's KPI performance dashboard?
management
Of the following, which is considered the most serious kind of data error?
missing data
Suppose you wanted to determine the ratio of cyclists to drivers in cities with higher versus lower air quality. What kind of study might you use?
observational study
Where would you find control limits?
on a control chart
Suppose you employed analytics to determine which sales territories had shown the most profitable growth in the last four quarters and would most likely do so again in the future. You would be using which kind of analytics?
predictive
Suppose you were to use analytics in an experiment to determine how many salespeople to assign to particular sales territories based on the makeup and performance of the territories in the results of the experiment. You would be using which kind of analytics?
prescriptive
Chester is showing his team how to uncover and fix the defects that their process has produced. What is he helping his team do?
quality control
