Chapter 5

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

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 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 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 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

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 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?

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 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?

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