Exam #1

_____ refers to the scenario in which the relationship between the dependent variable and one independent variable is different at different values of a second independent variable.

Interaction

_____ refers to the technology that allows data, collected from sensors in all types of machines, to be sent over the Internet to repositories where it can be stored and analyzed.

Internet of Things (IoT)

_____ refers to the use of sample data to calculate a range of values that is believed to include the value of the population parameter.

Interval estimation

The ratio of the amount of ink used in a table or chart that is necessary to convey information to the total amount of ink used in the table and chart is known as data-ink ratio. Using additional ink that is not necessary to convey information has what effect on the data-ink ratio?

It reduces the data-ink ratio.

Which one of the following is used in predictive analytics?

Linear regression

_____ refers to the degree of correlation among independent variables in a regression model.

Multicollinearity

To summarize and analyze data with both a crosstabulation and charting, Excel typically pairs _____.

PivotCharts with PivotTables

_______________ analytics use techniques that take input data and yield a best course of action.

Prescriptive

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

Prescriptive analytics

Which of the following regression models is used to model a nonlinear relationship between the independent and dependent variables by including the independent variable and the square of the independent variable in the model?

Quadratic regression model

_____ is the data set used to build the candidate models.

Training set

______ refers to the data set used to compare model forecasts and ultimately pick a model for predicting values of the dependent variable.

Validation set

A two-dimensional graph representing the data using different shades of color to indicate magnitude is called a _____.

heat map

Regression analysis involving one dependent variable and more than one independent variable is known as ____.

multiple regression

What is the difference between the observed value of the dependent variable and the value predicted using the estimated regression equation?

residual

A _____ is a graphical presentation of the relationship between two quantitative variables.

scatter chart

A line chart that has no axes but is used to provide information on overall trends for time series data is called a _____.

sparkline

The process of making estimates and drawing conclusions about one or more characteristics of a population through analysis of sample data drawn from the population is known as _____

statistical inference

The graph of the simple linear regression equation is a(n) _____.

straight line

Tables should be used instead of charts when _____.

the values being displayed have different units or very different magnitudes

Which of the following best exemplifies big data? -A local grocery store collects data from those that scan their loyalty card. -Five hundred Facebook users upload one thousand pictures per day. -Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and browsing the Web on a daily basis. -A pharmacy keeps track of customer purchases to send its customers coupons.

-Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and browsing the Web on a daily basis.

To include education in a regression model where education is defined as: did not graduate high school, high school graduate, some college, undergraduate degree, at least one graduate degree, the number of dummy variables required is

4

_____ is used to test the hypothesis that the values of the regression parameters β1, β2, ... βq are all zero.

An F test

_____ are visual methods of displaying data.

Charts

The company identified in Chapter 3, Analytics in Action, is

Cincinnati Zoo & Botanical Garden

Data dashboards are a type of _________ analytics.

Descriptive

A data visualization tool that updates in real time and gives multiple outputs is called _____.

a data dashboard

The Analytics in Action example in Chapter 3 concerned

a data dashboard.

A variable used to model the effect of categorical independent variables in a regression model which generally takes only the value zero or one is called _____.

a dummy variable

The charts that are helpful in making comparisons between categorical variables are _____.

bar charts and column charts

In order to visualize three variables in a two-dimensional graph, we use a _____.

bubble chart

The _____ is a measure of the goodness of fit of the estimated regression equation. It can be interpreted as the proportion of the variability in the dependent variable y that is explained by the estimated regression equation.

coefficient of determination

Assessing the regression model on data other than the sample data that was used to generate the model is known as _____.

cross-validation

In the simple linear regression model, the _____ accounts for the variability in the dependent variable that cannot be explained by the linear relationship between the variables.

error term

Chapter 3 focuses on

data visualization

When a decision maker is faced with several alternatives and an uncertain set of future events, s/he uses _____ to develop an optimal strategy.

decision analysis

In a linear regression model, the variable that is being predicted or explained is known as _____. It is denoted by y and is often referred to as the response variable.

dependent variable

Deleting the grid lines in a table and the horizontal lines in a chart ______.

increases the data-ink ratio

In a linear regression model, the variable (or variables) used for predicting or explaining values of the response variable are known as the _____. It(they) is(are) denoted by x.

independent variable

Data-ink is the ink used in a table or chart that _____.

is necessary to convey the meaning of the data to the audience

In a business, the values indicating the businesss current operating characteristics, such as its financial position, the inventory on hand, and customer service metrics, are typically known as

key performance indicators

The prespecified value of the independent variable at which its relationship with the dependent variable changes in a piecewise linear regression model is referred to as the ______.

knot

Fitting a model too closely to sample data, resulting in a model that does not accurately reflect the population is termed as _____.

overfitting

Making visual comparisons between categorical variables may be difficult in a _____.

pie chart

A _____ is an interval estimate of an individual y value, given values of the independent variables.

prediction interval

Advanced analytics generally refers to _____.

predictive and prescriptive analytics

In the financial sector, _____ are used to construct financial instruments such as derivatives.

predictive models

A _____ is a line that provides an approximation of the relationship between the variables.

trendline

When the mean value of the dependent variable is independent of variation in the independent variable, the slope of the regression line is _____.

zero

______________ analytics are techniques that use models, constructed from past data, to predict the future or to ascertain the impact of one variable on another.

​​Predictive