Business Analytics Final

What is the total cost of errors for the DT model?

$400

Given the output of odds ratios, about what residents would do in case of hurricane thereat, the odds of evacuating for each additional pet they would have is _______.

0.2655

Based on the attached JMP output, to determine if sufficient evidence exists that the mean of variable Profit($M) is above 400, the appropriate p-value to use for this test is...

0.3624

Consider the following scenario. A hospital performs a test for a rare disease on 200 patients and the results of the test are given below. Answer the following questions based on the results. The specificity for this sample is: The TruthTest Score Has the diseaseDoes not have the diseasePositive9020Negative1080

80/(80+20) = 0.8

According to the empirical rule, the percentage of data that will fall within 3 standard deviations of the average in a normal distribution is approximately

99%

Which of the following is a disadvantage of neural networks?

All of the above are weaknesses of neural networks.

Which of the following is a violation of one of the major assumptions of the simple regression model?

As the value of x increases, the value of the error term also increases.

Data has been collected on visitor's viewing habits at a bank's website. Which technique is used to identify pages commonly viewed during the same visit to the website?

Association

A survey handed out to customers in a local mall asked the following questions: marital status -- including single (S), married (M), widowed (W), divorced (D); annual household income (in $); age (in years); and overall satisfaction with city services (on a scale from 1 to 5 with 1 being poor and 5 being excellent.) For the variable Martial Status (S/M/W/D) identify the Data type.

Categorical/nominal

A survey handed out to customers in a local mall asked the following questions: marital status -- including single (S), married (M), widowed (W), divorced (D); annual household income (in $); age (in years); and overall satisfaction with city services (on a scale from 1 to 5 with 1 being poor and 5 being excellent.) Select the appropriate test/model to determine if city service satisfaction level & martial status are independent?

Chi-Square Test

The _________________ measures the percentage of the variation in y (response variable) explained by the multiple regression model or the set of independent variables included in the multiple regression equation.

Coefficient of determination

All of the following is correct except one when describing the present day analytics.

Data Driven

An important factor in selecting software for word-processing and database management systems is the time required to learn how to use the system. To evaluate three file management systems, a firm designed a test involving word processing operators. Since operator variability was believed to have an impact, each of the operators was trained on all three of the file management systems. ------------------ ANALYSIS OF VARIANCE TABLE ----------------- SUM OF SQ'S D.F. MEAN SQ. F(D.F./8) P-VALUE System 103.33 2 51.67 56.36 0.000019 Operator 64.67 4 16.17 17.63 0.000494 ERROR 7.33 8 0.92 --------------------------------------------------------------- TOTAL 175.33 14 If we are using an alpha value of .05 then we would conclude that

Differences exist among both systems and operators.

T or F: A box plot can be used to summarize nominal data.

False

T or F: As per the analysis of Titanic data, passengers who were in 3rd class had higher odds of surviving compared to passengers in 1st class.

False

T or F: Big data is structured and clean data.

False

T or F: Data in online transaction processing systems can best support data analytics and therefore should be directly used for such purposes.

False

T or F: Data warehouse supports day-to-day operations.

False

T or F: Hierarchical clustering a good technique when you have a very large data set.

False

T or F: If 100 patients known to have a disease were tested, and 43 test positive, then the test has 43% specificity.

False

T or F: In predicting the financial status of firms, sensitivity is the ability to predict a firm that is going to stay solvent correctly.

False

T or F: In testing the difference between the means of two normally distributed populations using independent random samples, we can only use a two-sided test.

False

T or F: Meta data is customer demographic information such as customer name, address, gender, education level, and the like.

False

T or F: Predictive analytics involves higher mathematically complex models than prescriptive analytics.

False

T or F: The IQ scores reported in whole numbers of students can be categorized as ratio data

False

T or F: The antecedent (the "A" in If A Then B) of a Market Basket Analysis rule cannot contain more than one individual item.

False

T or F: The controller of a chain of toy stores is interested in determining whether there is any difference in the weekly sales of store 1 and store 2. The weekly sales are normally distributed. This problem should be analyzed using Oneway ANOVA.

False

T or F: The dependent variable in logistic regression is always binary.

False

T or F: The five Vs of Big Data are volume, velocity, volatility, variety, and veracity.

False

T or F: The products chainsaws and corn are known to have a Lift ratio of 0.68. This implies that purchasers of chainsaws are more likely to buy corn than customers who do not purchase chainsaws.

False

T or F: This is a valid null hypothesis: The average weight of desks made on assembly line one is different from the average weight of desks made on assembly line two.

False

T or F: Today, business analytics are data driven rather than business driven.

False

T or F: When creating a decision tree, in general we want to keep splitting as long we can create less purity in the nodes.

False

T or F: When one fails to reject the null hypothesis, one has proven the null hypothesis to be true.

False

T or F: When we are predicting Fraud cases, we want to minimize false positive rates.

False

T ort F: A model's accuracy rate on the training data set is a better measure of the model's predictive ability than its accuracy rate on the validation data set.

False

Unstructured data increases the veracity in the data.

False

Which of the following questions is typically addressed via a Business Intelligence project?

In which country did we have the highest sales last quarter?

According to the Data Management Cycle discussed in class, what comes after the "Organize" phase?

Integrate

If the wages of workers for a given company are normally distributed with a mean of $15 per hour, then the proportion of the workers earning more than $13 per hour:

Is greater than the proportion earning less than $13 per hour.

What is a distinct property of Logistic Regression compared to Linear Regression?

Logistic Regression returns probability estimates of a response variable

In order to test the effectiveness of a drug called XZR designed to reduce cholesterol levels, 9 heart patients' cholesterol levels are measured before they are given the drug. The same 9 patients use XZR for two continuous months. After two months of continuous use the 9 patients' cholesterol levels are measured again. The comparison of cholesterol levels before vs. after administering the drug is an example of testing the difference between:

Matched pairs from two dependent populations.

If a population distribution is skewed to the right, then, given a random sample from that population, one would expect that the

Median would be less than the mean.

In which CRISP-DM phase data is partitioned and training & validation data sets are created?

Modeling

Which data asset is an example of unstructured data?

News Article Text

Which of the following activation functions is not used in neural networks (in JMP)?

None of the Above

This mosaic chart shows the distributions of car size (small, medium, large) by country. Which of the following statements is false?

None. All of the above statements are true.

Which of the following data storage techniques gives users the ability to use multiple dimensions of data, reports & graphics interactively?

Online Analytical Processing

Data mining models can do the following except:

Optimize Taste & Price of a product

A new company is in the process of evaluating its customer service. The company offers two types of sales: 1. Internet sales; 2. Store sales. The marketing research manager believes that the Internet sales are more than 10% higher than store sales. The null hypothesis would be:

Pinternet - Pstore ≤ .10

________________ is a form of analytics which examines data to answer the question "what is going to happen?"

Predictive

WNBA scouts research UA basketball star Rachel Tecca's college scoring history to estimate how much they would blow away other teams if she signed with them. This is an example of

Predictive Analytics

____________________ is a form of analytics which examines data to answer the question "what should be done?" or "what can we do to make XYZ happen?"

Prescriptive

Which of the following is not true about Data Warehouse?

Relational

You received 100,000 home loan records. You want to take a quick look and see if there is any relationship between mortgage age and mortgage amount before conducting advanced analytics. Which graphical tool would you employ for your preliminary analysis?

Scatter Plot

In the Titanic data analysis, which of the independent variables in this model are significant predictors of Survived variable?

Sex, Passenger Class, Age, & Sibling and Spouces

An anti-theft scanner at an entrance of a book store buzzes once for every 1000 innocent people walking through the scanner. The accuracy of the scanner is:

Specificity of 99.9%

Insight provides the following benefit except:

Tells us what happened in the past

In simple regression analysis, if the correlation coefficient (r) between the dependent and independent variable is a positive value, then

The slope of the regression line must also be positive.

Which of the following techniques is not a common data mining technique?

Training

T or F: A Decision Tree procedure that grows trees until the leaves are pure tends to overfit.

True

T or F: A good clustering scheme will have little variation within clusters and signficant variation between clusters.

True

T or F: A histogram is only appropriate for variables whose values are numerical and measured on an interval or ratio scale.

True

T or F: A pie chart is used to summarize categorical data

True

T or F: An application of the multiple regression model generated the following results involving the F test of the overall regression model: p - value = .0012, and adjusted R-squared= .67. Thus, the null hypothesis, which states that none of the independent variables are significantly related to the dependent variable, should be rejected at the .05 level of significance.

True

T or F: As more relevant independent variables are added to a multiple regression model, the value of R-squared increases

True

T or F: As the level of significance (alpha) changes from .01 to .05, we are more likely to reject the null hypothesis.

True

T or F: Big data can generate significant financial value across many companies and industry sectors.

True

T or F: Companies are competing on analytics these days because they have lot of data (Big data).

True

T or F: Data mining should be viewed as a process.

True

T or F: Deciding Ha (alternate hypothesis) is true when it is false is Type I error.

True

T or F: ETL (Extract, Transform, & Load) is a necessary process to build an enterprise-wide consistent, integrated data storage "Data Warehouse" which is a major data source for analytics.

True

T or F: Each terminal node in a decision tree can to be translated into a single IF-THEN rule.

True

T or F: If the frequency distribution is skewed to the left, then the median of the distribution will be greater than the mean.

True

T or F: If the probability of The University of Akron basketball team winning against Kent State team is .5, then the odds of The University of Akron winning against Kent State is 1.

True

T or F: If the test is highly sensitive and the test results is negative, we can be nearly certain that the person doesn't have disease.

True

T or F: In Multiple Regression analysis, a t-test is used in testing the significance of an individual independent variable.

True

T or F: In data mining over-fitting results in developing too precise a model that will fail to generalize and therefore will have poor predicting power.

True

T or F: In order to include a categorical variable in k-means cluster analysis in JMP, the data must be coded numerically. Therefore, categorical variables should be coded as 0/1.

True

T or F: In this residual plot it appears that the constant variance assumptions is not being violated.

True

T or F: Logistic Regression seeks to predict the probability that a dependent variable will fall into a particular category based on the values of independent variables.

True

T or F: Lowering the support threshold from 30% to 10% would be most likely to result in more association rules in Market Basket Analysis

True

T or F: Neural networks can be used for both continuous and categorical dependent (output) variables.

True

T or F: Predicting whether a company will go bankrupt based on comparing its financial data to those of similar bankrupt and non-bankrupt firms is a supervised technique.

True

T or F: Printing of custom discount coupons at the conclusion of a grocery store checkout based on what you just bought and what others have bought previously is an unsupervised technique.

True

T or F: The error term in the regression model describes the effects of all factors other than the independent variables on y (response variable).

True

T or F: The most popular method for using model errors to update weights is called back propagation of error.

True

T or F: There is generally a trade off between data completeness and data accuracy.

True

T or F: Training a neural network model involves estimating the weights that will lead to the best predictive results.

True

______________ refers to the accuracy or trustworthiness of the big data.

Veracity

A multiple regression analysis produced the following table: Source df SS MS p-value Regression 2 121783 60891.48 0.000286 Residual 15 61876.68 4125.112 Total 17 183659.6 Using Alpha - α = 0.01, would the overall regression model be significant ?

Yes

In a decision tree algorithm, how is the attribute picked for the next split?

You pick the attribute with the highest Logworth.

The term "star schema" is most closely associated with which of the following?

data warehousing

In logistic regression, if we change the cutoff value from 0.5 (the default) to a cutoff value of 0.3 we would expect it to

increase the number of false positives

A multiple regression analysis produced the following table: Predictor Coefficients Standard Error t Statistic p-value Intercept 616.6849 154.5534 3.990108 0.000947 x1 -3.33833 2.333548 -1.43058 0.170675 x2 1.780075 0.335605 5.30407 5.83E-05 Using Alpha - α = .05, which independent variable would you drop using backward elimination?

x1