ANL 301 Exam 1

Advanced analytics generally refers to

predictive and prescriptive analytics

The act of collecting data that are representative of the population data is called

random sampling

Which of the following gives the proportion of items in each bin?

relative frequency

Data collected from several entities over a period of time (minutes, hours, days, etc.) are called

time series data

A quantity of interest that can take on different values is known as a(n)

variable

The difference in a variable measured over observations (time, customers, items, etc.) is known as

variation

The goal regarding using an appropriate number of bins is to show the

variation in the data

Influence Diagram

a visual representation that shows which entities influence others in a model

In a survey of patients in a local hospital, 62.42% of the respondents indicated that the health care providers needed to spend more time with each patient. Who makes up the population?

All patients in a local hospital (A population is the set of all elements of interest in a particular study)

In a survey of patients in a local hospital, 62.42% of the respondents indicated that the health care providers needed to spend more time with each patient. Who makes up the sample?

All survey respondents (A sample is a subset of the population)

Which of the following best exemplifies big data?

Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and browsing the Web on a daily basis. (Big data is simply a set of data that cannot be managed, processed, or analyzed with commonly available software in a reasonable amount of time.)

Quantitative Data

Data are considered quantitative data if numeric and arithmetic operations, such as addition, subtraction, multiplication, and division, can be performed on them. ex.) What is your age? or How long have you been in your present job or position?

__________ is the most critical step of the decision-making process.

Identifying and defining the problem

Categorial Data

If arithmetic operations cannot be performed on the data, they are considered categorical data. ex.) Are you male or female? or When did you first start reading the WSJ? High school, college, early career, midcareer, late career, or retirement?

Which of the following analytical techniques helps us arrive at the best decision?

Prescriptive analytics

Data-driven decision making tends to decrease a firm's

Risk

Which of the following relationships would have a negative correlation coefficient?

Supply and Demand (A relationship will have a negative correlation coefficient if as one variable increases the other variable decreases)

Geometric Mean

a measure of location that is calculated by finding the nth root of the product of n values.

correlation coefficient

a statistical index of the relationship between two things (from -1 to +1) - strong, critical, linear

Range

can be found by subtracting the smallest value from the largest value in a data set

The letter grades (A, B, C, D, F) of business analysis students are recorded by a professor. This variable's classification is

categorial data

make-versus-buy decision

comparing the costs of manufacturing in-house to the costs of outsourcing production to another firm

__________ are collected from several entities at the same point in time.

cross-sectional data

Corporate-level managers use ______ to summarize sales by region, current inventory levels, and other company-wide metrics all in a single screen.

data dashboards

The U.S. Internal Revenue Service uses _____________ to identify patterns that distinguish questionable annual personal income tax filings.

data mining

The extraction of information on the number of shipments, how much was included in each shipment, the date each shipment was sent, and so on from the manufacturing plant's database exemplifies

data queries

Optimization models can be used to

decide on how to invest cash received from insurance policies

Data dashboards are a type of _________ analytics.

descriptive

Relative Frequency of a Bin

equals the fraction or proportion of items belonging to a class Equation: Relative frequency of a bin = frequency of the bin / n

A summary of data that shows the number of observations in each of several nonoverlapping bins is called a(n)

frequency distribution

Which of the following is not an approach to making decisions?

guess and check

A __________ is a graphical summary of data previously summarized in a frequency distribution.

histogram

Tactical decisions are concerned with

how the organization should achieve the goals and objectives set by its strategy

Negative Linear Relationship

if one variable gets bigger, the other variable tends to get smaller

Coefficient of Variation

indicates how large the standard deviation is relative to the mean for excel: =stdev(A1:A10)/average(A1:A10)) then multiply by 100.

Mean

measure of central location for the data, computed by adding all the numbers up and dividing by however many numbers there are

A set of values corresponding to a set of variables is defined as a(n)

observation

A forecast that helps direct police officers to areas where crimes are likely to occur based on past data is an example of

predictive analytics

__________ are used in the pharmaceutical industry to assess the risk of introducing a new drug.

simulations

When working with large spreadsheets with many rows of data, it can be helpful to __________ the data to better find, view, or manage subsets of data.

sort and filter

Picks and Axes Inc. is an Internet-based retail seller of hiking boots and mountaineering gear. The company decides to open retail stores across the major areas of the city to help complement its Internet-based strategy. This activity would be categorized as a(n)

strategic decision

If covariance between two variables is near 0, it implies that

the variables are not linearly related.

The decisions concerning an organization's goals and future plans are called

strategic decisions

Percent Frequency Distribution

summarizes the percent frequency of the data for each bin

Standard Deviation

the positive square root of the variance and can be calculated using the Excel function =STDEV.S( ).

Business analytics

the scientific process of transforming data into insight for making better decisions, used or data driven or fact based decision making

Median

the value in the middle when the data are arranged in ascending order (smallest to largest value), if there are two middle values find the average

Mode

the value that occurs most frequently in a data set