Data Analytics Exam 1

3 types of aggregates:

1. SUM 2. COUNT 3. AVG

4 categories of data analytics:

1. descriptive 2. diagnostic 3. predictive 4. prescriptive

5 steps of ETL

1. determine purpose and scope 2. obtain data 3. validate data 4. clean data 5. load data for data analysis

4 of the 7 skills analytic-minded accountants should have:

1. develop an analytics mindset 2. data scrubbing and data prep 3. data quality 4. descriptive data analysis

IMPACT cycle

1. identify the questions 2. master the data 3. perform the test plan 4. address and refine results 5. communicate insights 6. track outcomes

4 basic types of JOIN:

1. inner 2. outer 3. left 4. right

JOIN clause is part of what clause?

FROM clause

you can use SELECT ______ and _____ to refine your query

aggregates; aliases

OUTER JOIN =

attributes from other table are NULL

The real value inherent in data comes from ____________, discovering the various buying patterns of customers, investigating anomalies that were not predicted in firm operations, forecasting future demand and supply and so on.

data analytics

What process involves the technologies, systems, practices, methodologies, databases, statistics, and applications used to analyze diverse business data to give organizations the information they need to make decisions?

data analytics

big data

datasets that are too large and complex to be analyzed traditionally

data dictionary

defines what data are acceptable

summary statistics

describe set of data in terms of location, range, shape, and size

summary statistics and data reduction are what type of data analytics?

descriptive

if a z-score is higher, then it is ______ from the mean

farther

what is the power of the JOIN clause?

foreign keys

Benford's law evaluates the ______ distribution of the ____ digits of a large set of ______ data

frequency; first; numerical

predictive analytics

generates a model to predict what could happen in the future

to aggregate means to...

group or cluster

Which of the following is an accurate description of the Audit Data Standards?

guide for formatting the way in which data are provided to auditors

Tax compliance deals primarily with filing tax returns. In contrast, tax planning primarily helps

minimize the amount of taxes paid

in a WHERE clause, number attributes need...

no special criteria

mean, median, and mode are always the same in a ______ _______

normal distribution

As part of mastering the data, data analysts perform data ________________ to reduce data redundancy and improve data integrity.

normalization

in a WHERE clause, date attributes need to be enclosed by ______ _____

number signs

predictive and prescriptive analytics are considered to be _______ and ______

optimization; foresight

descriptive data analysis

perform basis analysis to understand the quality of the underlying data and its ability to address the business question

foreign keys

point to a primary key in another table

an alias ______ a column by using the ___ clause

renames; AS

JOIN clause is used to...

retrieve info from multiple tables

RIGHT JOIN

retrieved from the joined table

LEFT JOIN

retrieved from the main table

decision support systems

rule based systems that gather data and recommend actions

descriptive analytics

summarize existing data to determine what happened in the past

the safest type of data is ____

text

HAVING clause is a filter for when you are using which clause?

the GROUP BY clause

A digital dashboard would be part of which step of the IMPACT cycle?

track outcomes

primary keys

unique identifiers

4 types of attributes:

1. primary keys 2. foreign keys 3. composite keys 4. descriptive attributes

what are the 3 V's?

1. volume- size 2. velocity- frequency 3. variety- different types

data dictionary answers what 4 questions for each attribute we learn about?

1. what type of key is it 2. what data are required 3. what data can be stored in it 4. how much data is stored

___% of CEOs say data analytics are the 2nd most important strategic technology

80

___% of CEOs put a high value on data analytics

85

the operator for the HAVING clause can be...

=, <, >, =<, =>, <>

what clause is always the last line in any query?

ORDER BY clause

which clause can not be used with the GROUP BY clause?

WHERE clause

Financial accounting often has challenges with valuation and estimation in all but the following area:

accounts payable

machine learning and artificial intelligence

adapt to new external data to recommend a course of action

what is the default order for attributes?

ascending

ORDER BY clause sorts the records in...

ascending or descending order

Why does data analytics matter to accountants?

because it allows them to test the whole population rather than just the sample (enhances audit quality)

Why does data analytics matter to business?

because it translates into higher profits (up to $3 trillion per year)

relational databases ensure that data is ______, is not _______, follows _____ _____ and ______ ______, and aids _______ and _______ of business practices

complete; redundant; business rules; internal controls; communication; integration

data scrubbing and data prep

comprehend the process needed to clean and prepare the data before analysis

what does a foreign key do?

carries out the relationship between 2 tables

Which testing approach would be considered to be an attempt to discover associations between individuals based on transactions involving them?

co occurrence grouping

composite keys

combo of 2 foreign keys for line items

After data analysts slice and dice the data, find correlations, ask ourselves further questions, ask colleagues what they think, and revise and rerun the analysis, what comes next in the IMPACT cycle?

communicate insights

Data Visualization would be part of which step of the IMPACT cycle?

communicate insights

Variance analysis, a common practice in management accounting, is an example of _____ analytics.

diagnostic

profiling, clustering, similarity matching, and co occurrence grouping are what type of data analytics?

diagnostic

co occurence grouping

discovers associations between individuals based on common events

prescriptive analytics

enable recommendations for what should be done in the future

GROUP BY clause is the...

engine that powers subtotaling data

regression

estimates numerical value of a dependent variable based on the slope and intersect of a line and value of an independent variable

training data

existing data that have been manually evaluated and assigned a class

test data

existing data used to evaluate the model

diagnostic analytics

explore the current data to determine why something happened the way it did

mastering the data involves what 3 things?

extract, transform, load (ETL)

clustering

identifies groups/clusters of individuals that share common underlying characteristics

similarity matching

identifies similar individuals based on data known about them

profiling

identifies typical behavior of an individual, group, pop by compiling summary statistics and comparing the individuals to the pop

which step of the IMPACT cycle is the most important?

identify the questions

descriptive and diagnostic analytics are considered to be _____ and _______

info; hindsight

unified modeling language (UML)

know which tables and attributes contain relevant data

data reduction takes a _____ set of data and reduces it to a smaller set that has the vast majority of the _____ ____ of the larger set

large; critical info

you can have _____ and _____ skewed distributions

left; right

Which of the following is not an existing Audit Data Standard?

manufacturing subledger

INNER JOIN =

match in both tables

regression, classification, and link prediction are what type of data analytics?

predictive

classification

predicts a class/category based on the manual identification of classes from previous observations

link prediciton

predicts a relationship between 2 data items

decision supports systems, machine learning, and AI are what type of data analytics?

prescriptive

data analytics

process of evaluating data with the purpose of drawing conclusions to address business equations

_____ might be used to identify areas where there is a lack of controls, changes in procedures, or individuals more willing to spend excessively in potential types of T&E expenses which might be associated with higher risk.

profiling

in a WHERE clause, text attributes need _____

quotes

data quality

recognize what is meant by data quality (completeness, reliability, validity)

develop an analytics mindset

recognize when and how data analytics can address business equations

data reduction/filtering

reduces the amount of observations to focus on relevant items

Structured data is stored in a database or spreadsheet and are readily _________

searchable

profiling uses what type of data?

structured

effective data analytics provide a way to search through large ______ and __________ data to identify ______ patterns and relationships

structured; unstructured; unknown

if all attributes are selected, then the order is based on...

the primary key

An _________ approach is used when you don't have a specific question and are simply exploring the data for potential patterns of interest.

unsupervised

Profiling is an __________ method that is used to discover patterns of behavior, based on the distance of z-scores from the mean.

unsupervised

what is the 4th V?

veracity- quality of data

SELECT clause indicates...

which attribute you wish to view

FROM clause indicates...

which table contains the attributes you are selecting

WHERE clause...

works like a filter in excel