Business Analytics Final Review
Data analysis through data manipulation is performing basic analysis to understand the quality of the underlying data and its ability to address the business question True or False
False
Data analytics has the potential to transform the manner in which companies run their businesses, however it is not practical in the near future True or False
False
Data analytics professionals estimate that they spend between 25 percent and 70 percent of their time cleaning data so it can be analyzed True or False
False
The A in IMPACT Cycle represents Analyze the Data True or False
False
The C in IMPACT Cycle represents Continuously Track True or False
False
The P in IMPACT Cycle represents Predict the Results True or False
False
The predictive analytics is an important aspect of data analytics for auditors, but is not applicable for tax accountants True or False
False
The process of data analytics aims to transform raw information into data to create value True or False
False
To be proficient in data analysis, accountants need to become data scientists True or False
False
While it is important for accountants to clearly articulate the business problem, drawing appropriate conclusions, based on the data, should be left to statisticians True or False
False
Analytic-minded accountants should report results of analysis in an accessible way to each varied decision maker and their specific needs True or false
True
Auditors can use social media to hear what customers are saying about a company and compare this to inventory obsolescence and other estimates True or False
True
By developing an analytics mindset, accountants will be able to recognize when and how data analytics can address business questions True or False
True
Data analytics allows auditors to glean insights that are beneficial to the client, without breeching independence True or False
True
Data analytics is the process of evaluating data with the purpose of drawing conclusions to address business questions True or False
True
The I in IMPACT Cycle represents Identify the Question True or False
True
The IMPACT cycle is iterative, as insights are gained, outcomes are tracked, and new questions are identified True or False
True
The M in IMPACT Cycle represents Master the Data True or False
True
The T in IMPACT Cycle represents Track Outcomes True or False
True
According to the text, as the credit score increases, there is ______ chance of a loan getting rejected by the back a. a lesser b. a greater c. no effect on the
a. a lesser
Which of the following best describes the classification approach to data analytics? a. an attempt to assign each unit (or individual) in a population into a few categories b. an attempt to divide individuals into groups in a useful or meaningful way c. an attempt to identify similar individuals based on data known about them d. an attempt to discover associations between individuals based on transactions involving them
a. an attempt to assign each unit (or individual) in a population into a few categories
Which of the following best describes the similarity matching approach to data analytics? a. an attempt to identify similar individuals based on data known about them b. an attempt to discover associations between individuals based on transactions involving them c. an attempt to assign each unit (or individual) in a population into a few categories d. an attempt to divide individuals into groups in a useful or meaningful way
a. an attempt to identify similar individuals based on data known about them
Which approach to data analytics attempts to reduce the amount of information that needs to be considered to focus on the most critical items? a. data reduction b. similarity matching c. profiling d. regression
a. data reduction
Which of the following best describes the goal of data quality? a. recognize what is meant by data quality, be it completeness, reliability or validity b. comprehend the process needed to clean and prepare the data before analysis c. demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that allows enhanced analysis d. perform basic analysis to understand the quality of the underlying data and its ability to address the business question
a. recognize what is meant by the data quality, be it completeness, reliability or validity
Which of the following best describes the goal of developing an analytics mindset a. recognize when and how data analytics can address business questions b. recognize what is meant by data quality, be it completeness, reliability or validity c. comprehend the process needed to clean and prepare the data before analysis d. perform basic analysis to understand the quality of the underlying data and its ability to address the business question
a. recognize when and how data analytics can address business questions
Which of the following best describes the goal of data visualization and data reporting a. report results of analysis in an accessible way to each varied decision maker and their specific needs b. perform basic analysis to understand the quality of the underlying data and its ability to address the business question c. recognize when and how data analytics can address business questions d. recognize what is meant by data quality, be it completeness, reliability or validity
a. report results of analysis in an accessible way to each varied decision maker and their specific needs
Which approach to data analytics attempts to identify similar individuals based on data known about them? a. similarity matching b. link prediction c. co-occurrence grouping d. clustering
a. similarity matching
The 3V's of Big Data include all but the following a. volatility b. volume c. velocity d. variety
a. volatility
According to the text, as the length of employment increases, there is ____ chance of a loan getting rejected by the bank a. a greater b. a lesser c. no effect on the
b. a lesser
Which of the following best describes the profiling approach to data analytics? a. an attempt to discover associations between individuals based on transactions involving them b. an attempt to characterize the typical behavior of an individual, group or population by generating summary statistics about the data c. an attempt to reduce the amount of information that needs to be considered to focus on the most critical items d. an attempt to predict a relationship between two data items
b. an attempt to characterize the typical behavior of an individual, group or population by generating summary statistics about the data
Which of the following best describes the co-occurrence grouping approach to data analytics? a. an attempt to reduce the amount of information that needs to be considered to focus on the most critical items b. an attempt to discover associations between individuals based on transactions involving them c. an attempt to predict a relationship between two data items d. an attempt to characterize the typical behavior of an individual, group or population by generating summary statistics about the data
b. an attempt to discover associations between individuals based on transactions involving them
Which of the following best describes the link prediction approach to data analytics? a. an attempt to characterize the typical behavior of an individual, group or population by generating summary statistics about the data b. an attempt to predict a relationship between two data items c. an attempt to discover associations between individuals based on transactions involving them d. an attempt to reduce the amount of information that needs to be considered to focus on the most critical items
b. an attempt to predict a relationship between two data items
Which of the following best describes the data reduction approach to data analytics? a. an attempt to characterize the typical behavior of an individual, group or population by generating summary statistics about the data b. an attempt to reduce the amount of information that needs to be considered to focus on the most critical items. c. an attempt to discover associations between individuals based on transactions involving them d. an attempt to predict a relationship between two data items
b. an attempt to reduce the amount of information that needs to be considered to focus on the most critical items
While accountants don't need to become data scientists, they must know how to do the following except a. comprehend the process needed to clean and prepare the data before analysis b. build a data repository c. clearly articulate the business problem the company is facing d. communicate with the data scientists about specific data needs and understand the underlying quality of the data
b. build a data repository
Which of the following best describes the goal of data manipulation? a. perform basic analysis to understand the quality of the underlying data and its ability to address the business question b. demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that allows enhance analysis c. comprehend the process needed to clean and prepare the data before analysis d. recognize what is meant by data quality, be its completeness, reliability or validity
b. demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that allows enhanced analysis
If a bank uses credit risk score to determine who will receive a loan, the variable predicting who will receive a loan would be considered the a. classification variable b. dependent variable c. independent variable d. determinant variable
b. dependent variable
If we are predicting which companies go bankrupt, bankruptcy would be the a. explanatory variable b. dependent variable c. classification variable d. independent variable
b. dependent variable
If a bank uses credit risk score to determine who will receive a loan, the credit risk score would be considered the a. dependent variable b. independent variable c. classification variable d. response variable
b. independent variable
Which approach to data analytics attempts to predict a relationship between two data items? a. similarity matching b. link prediction c. clustering d. co-occurrence grouping
b. link prediction
Patterns discovered from ___ enable businesses to identify opportunities and risks and better plan for ___ a. current data; today b. past archives; the future c. past archives; today d. current data; the future
b. past archives; the future
Which approach to data analytics attempts to characterize the typical behavior of an individual, group or population by generating summary statistics about the data? a. data reduction b. profiling c. regression d. similarity matching
b. profiling
A recent study from McKinsey Global Institute estimates that data analytics could generate up to $3____ in value A. million B. trillion C. thousand D. billion
b. trillion
According to PwC's 18th Global CEO survey, ___ percent of chief executive officers puts a high value on data analytics a. 55 b. 35 c. 85 d. 95
c. 85
According to the text, as the debt-to-income ratio increases, there is _____ chance of a loan getting rejected by the bank a. a lesser b. no effect on the c. a greater
c. a greater
Which of the following best describes the clustering approach to data analytics? a. an attempt to discover associations between individuals based on transactions involving them b. an attempt to identify similar individuals based on data known about them c. an attempt to divide individuals into groups in a useful or meaningful way d. an attempt to assign each unit (or individual) in a population into a few categories
c. an attempt to divide individuals into groups in a useful or meaningful way
Which of the following best describes the regression approach to data analytics? a. an attempt to discover associations between individuals based on transactions involving them b. an attempt to predict a relationship between two data items c. an attempt to estimate or predict, for each unit, the numerical value of some variable using some type of statistical moel d. an attempt to divide individuals into groups in a useful or meaningful way
c. an attempt to estimate or predict, for each unit, the numerical value of some variable using some type of statistical model
The PwC's 6th annual digital IQ survey of more than 1,400 leaders from digital business, the area of investment that tops CEOs' list of priorities is a. accounting data analytics b. information technology c. business analytics d. capital expenditures including hardware and software
c. business analytics
Which of the following best describes the goal of data scrubbing and data preparation a. recognize what is meant by data quality, be it completeness, reliability or validity b. perform basic analysis to understand the quality of the underlying data and its ability to address the business question c. comprehend the process needed to clean and prepare the data before analysis d. demonstrate ability to sort, rearrange, merge and reconfigure data in a manner that allows enhanced analysis
c. comprehend the process needed to clean and prepare the data before analysis
Which of the following best describes the goal of descriptive data analysis a. comprehend the process needed to clean and prepare the data before analysis b. recognize what is meant by data quality, be it completeness, reliability or validity c. perform basic analysis to understand the quality of the underlying data and its ability to address the business question d. demonstrate ability to sort, rearrange, merge, and reconfigure data in a manner that allows enhanced analysis
c. perform basic analysis to understand the quality of the underlying data and its ability to address the business question
The IMPACT cycle includes all the following processes except a. identify the questions b. track outcomes c. predict the results d. address and refine results
c. predict the results
One of the most important aspects of data analytics that impacts tax is a. co-occurrence grouping b. data quality c. predictive analytics d. similarity matching
c. predictive analytics
Which approach to data analytics attempts to divide individuals into groups in a useful or meaningful way? a. similarity matching b. link prediction c. co-occurrence grouping d. clustering
d. clustering
Which approach to data analytics attempts to discover associations between individuals based on transactions involving them? a. link prediction b. similarity matching c. clustering d. co-occurrence grouping
d. co-occurrence grouping
With a goal to give organizations the information they need to make sound and timely business decisions, data analytics often involves all of the following except a. databases b. technologies c. statistics d. growth
d. growth
Which of the following best describes the goal of defining and addressing problems through statistical data analysis a. perform basic analysis to understand the quality of the underlying data and its ability to address the business question b. demonstrate ability to sort, rearrange, merge and reconfigure data in a manner that allows enhanced anlaysis c. recognize what is meant by data quality, be it completeness, reliability, or validity d. identify and implement an approach that will use statistical data analysis to draw conclusions and make recommendations on a timely basis
d. identify and implement an approach that will use statistical data analysis to draw conclusions and make recommendations on a timely basis
Which approach to data analytics attempts to estimate or predict, for each unit, the numerical value of some variable using some type of statistical model? a. similarity matching b. classification c. data reduction d. regressions
d. regression