C 207 Data Driven Decision Making
An QM objective where competent, empowered and engaged people at all levels throughout the organization are essential to enhance its apability
Involvement of people
What is Results Based Management (RBM)
Is a way to collect data using results to measure performance, translate goal, and defines accountability through on-going monitoring and self-assessment.
The use of Big Data is increasingly important to businesses in competitive markets. Which of the following characteristics is not true of big data?
can be analyzed with traditional spreadsheets
correlations is not
cause
A chart that identifies the process elements that might effect an outcome
cause and effect
Assists in brainstorming issues that are causing a problem
cause and effect diagram
An analysis has to ________ an _______in order to be ___________from a business prospective
change action worthwhile
What phase of the PDCA model collects data and evaluates the plan against the objectives
check
Easy tool to collect data to create other charts
check sheet
What are the seven tools of TQM
check sheets scatter diagrams cause and effect dia pareto charts flow charts histograms stat process control chart
A type of statistical analysis where data is measured in frequency for significant patterns or differences
chi square
What test uses significant patterns or differences among frequency data
chi-square
What does "solving the problem" involve
choose the model collect the data analyze the data
Two variables are plotted on a scatterplot and the points on the plot closely follow an upward, straight line. What is the likely correlation between the two variables?
close to 1.0
what type of analysis groups commonalities among groupings
cluster
which analysis is used for marketing
cluster analysis
A healthcare study follows a particular sample over time to identify how the health habits of teenagers impact their likelihood of acquiring various diseases later in their life. The healthcare organization hopes this data will allow them to create early prevention programs. What type of research design does this study describe?
cohort study
The order you pick your sample in does not matter
combination
Variations accepted as the normal part of the process
common cause variation
The third stage of the Davenport-Kim model
communicating results
What is provided when value of a company increases
competitive advantages in the market place
A type of bias where the surveyor is actively seeking a certain response
conscious
A type of bias that leads one to answer a certain way
conscious bias
Bias introduced because respondents believe it will be beneficail if selected
conscious bias
A QM principle where successful organization and quality programs have ongoing focus on continual improvement
continual improvement
A manufacturer initiates a 5 year program of analysis and process improvement to improve product quality and reduce lead time to customers
continual improvement
Another name for numerical data
continuous
The PDCA model reflects what
continuous improvement
RBM's life cycle approach uses _________ measurement and evaluation and must be __________
continuous, measurable
Illustrates limits or constraints a process should not exceed
control chart
monitor production process is which statistical procedure
control chart
Charts that are constructed from historical data and helps to distinguish b/t natural and assignable causes
control charts
Which statistical procedure helps to understand effective marketing to spend advertising dollars efficiently?
correlation
Measure the strength of a linear relationship
correlation coefficient
How could one summerize the relationship between the selling price and either the mileage or age
correlations
Used to analyze if funding is worth the outcome of a project
cost-benefit analysis
objectives of leadership 3
creates a unity of purpose and direction, aligns strategies, policies, processed, and resources to meet objectives, employees are motivated toward organizational goals
Compare individual's performance to a standard score
criterion referenced
A test used to compare an individual to defined stadards
criterion referenced test
2 main Types of decision analysis techniques
cross over analysis, break-even analysis linear program cluster analysis decision tree
What decision analysis technique would be used to determine the lease expensive option or 2 or more options
crossover analysis
what decision analysis technique considers both fixed and variable costs
crossover analysis
Represents the probability that a variable falls with a certain range
cumulative distribution
In the sipoc model, what part of the process is when the product is received by a person or organization
customer
A principle that focuses on understanding current and future customer needs
customer focus
NPS provides performance on...
customer loyality
Repetition in up and down patterns
cyclicality
Business decision are no better than the.....
data on which they are based
The 3 areas that encompass analytics
data, statistical and quantitative analysis, and fact based decisions
What model is used when faced with several decisions
decision analysis
What type of analysis is used to get an answer
decision analysis
What analysis is used to decide the best decision based on an estimated value
decision tree
A time series analysis used for forecasting a future value
moving average /exponential smoothing
a time series analysis that is a non linear trend
moving average/ exponential smoothing
A technique using more than one independent variable to predict a single dependent variable
multiple regression
More that one independent variable indicates....
multiple regression
what analytic approach would be used to detrermine if the selling price can be predicted from mileage and or age
multiple regression
A cable company offers its customers both cable television and internet. What statistical rule should be used to determine the probability that customers will have both cable television and internet?
multiplication
Apply this rule when looking for two events occurring (AND)
multiplication
Two rules of probability
multiplication and addition rules
Ratio data can be.....
multiplie, divided added or subtracted
what analytical tool would be used with multiple predictors
mutliple regression
Objective of mutual benefit of supplier relationships 2
mutual beneficial relationship management with suppliers, flexibility and speed in joint responses to changing market
A QM prinicple for sustained success where the organization manages relationship with interested parties and suppliers
mutual benefit of supplier relationships
SPC's monitor what types of causes
natural (common) or special (assignable) causes
An expected amount of variation that exists in all processes
natural or common
A downward trend means
negative
Do ordinal data measure numeric data
no
Does skewness affect median?
no
Is mean affected by skewness
no
X bar charts are considered average if......
no points outside limits and randomly distributed around the mean
What level of measurement is the type of cars produced in Ford factory?
nominal
Which data measurement does not have an intrinsic order
nominal
type of data that uses labels or names and is the lowest of the four levels of measurement
nominal
what type of data has an either/or type of data
nominal
If the dependent variable is categorical, it is __________ and therefore uses _________ regression
nominal logistic
4 levels of data measurement
nominal ordinal interval ratio
Tests that compares an individual to others
norm-referenced tests
Which type of distribution would you expect to see if mean=mode=median?
normal distribution
An educator collects eighth grade math scores from a local school and used this data to recommend curriculum changes for grades 8 - 12. What misuse of statistics may the educator have used in making this recommendation?
not a representative sample
A company is trying to increase its online sales revenue by improving its email advertising campaign for repeat customers as well an new customers. what 2 variables would be used in determining a campaign to maximize revenue gain?
number of purchases per email and spending per purchase
Data is divided into groups
numerical categorical
True score + random error =
observed score
True score + randome error+ systematic error =
observed score
A city government is trying to determine the national origins of its recent immigrant population. If a survey of the immigrant population is conducted in English what type of error might be present in the data?
omission
An error that occurs when something has been left out or did not occur
omission
predictive analysis also is used to look at the impact of
one variable to another
A key aspect of RBM is
ongoing monitoring strategy
What analytic model helps make the best decision when subject to constraints in the enviornment
optimization models
Keyword for addition
or, either
Words used to calculated probability using the addition rule
or, either
Data that categorizes some quality
ordinal
Place qualitative objects in some kind of order
ordinal
What level of measurement is this the 10 best cities in the U.S. to retire in?
ordinal
Which level of measurement has intrinsic order
ordinal
There are two types of categorical data
ordinal nominal
When a variation falls outside of standard deviation, it is considered...
out of control
Outliers create this type of error
out of range
A type of error that occurs when observation points are distant from other observation points
outlier
In the sipoc model, what part of the process is the result of using a resource
output
What chart plots categorical data and percentages of defects
p charts
Attribute charts are either ___ or ___ charts
p, c
Graphical display of data set in highest to lowest order
pareto
A descriptive analysis technique used to identify the category of invnetory that represents a company's highest inventory dollars
pareto chart
A graph that identifies and plots problems or defects in descending order of frequency
pareto chart
tools for identifying problems
pareto chart stat process control chart
Resutls based management needs to see ______ and _____
partnership, results
RBM requires ...(6)
partnerships, inclusiveness, shared expectations, transparency, simplicity, and flexibility
A principle that seeks involvemetn of people at all levels of the organization
people involvement
What type of chart would be best for data that includes 5 years of quarterly determinations
line chart
A company that raises turkeys is hoping to increase the rate of growth of the tyrkeys while controlling the cost of feeding them. It has determined that feeds containing both nutrients and protein can be used. Which decision-making technique is most appropriate for this company to minimize the cost of feeding the birds?
linear
If you have one independent variable in regression, it is....
linear
What regression analysis is synonymous with least squares
linear
Two types of regression analysis
linear and logistic
What type of analysis is used for deciding what mix to produce
linear programming
optimization models include...
linear programming
A technique using a single independent variable to predict a single dependent variable
linear regression
A regression where the dependent variable is binary
logistic regression
A type of statistical analysis where the dependent variable is binary
logistic regression
What are two reason for the increasing use of analytics in organizational decision making
lower cost of computer storage higher computer processing power
How must Inter-quartile range be ordered
lowest to highest value
Objectives to continual improvement 2
maintain performance and react to change, align improvement activities on all levels to achieve strategic goals
Three measures of central tendency
mean, median, mode
nominal data does not have a _______ or ________ ________.
means standard deviation
The M in KPI is
measurable
What type of bias is when the sample is not representative of the population
measurement
Two types of bias
measurement information
An Educator develops a new standardized test to measure math skills of ninth graders. She has students in her home state of Ohio take the test. If the test is to be used on a national level, what type of error might be found in her data?
measurement bias
Bias that occurs from not selecting a random sample
measurement bias
Cause and effect diagrams do not use
measurements
An economist wishes to study the distribution of household income in a Midwestern city. He randomly selects a sample from 12 households. He notices two large incomes in his sample. Which measure best represents the middle of the incomes?
median
middle score for a set of data
median
The primary focus of quality management is to
meet customer requirements and exceed customer expectations
What result do business quality teams expect when using quality tools?
minimizing errors through collection and analysis of data
which 2 attributes indicate potential data quality issues when evaluating a set of nominal data
missing data and out of range data
Analytics is a broad term that refers to a variety of tools that inform managerial decisions. What term can be used to describe managerial decisions
perscriptive
What part of the PDCA model evaluates current processes, collects procedures or data to indentify problems, and develops an improvement plan and performance objectives
plan
An upward trend means
positive
Inferential statistics are used to
predict/ trend
What type of analysis technique is used from past data to predict the future
predictive
The independent variable is the ________ and the dependent variable is the _________
predictor prediction
A manufacturer wants to maximize their factory output while specifically minimizing labor costs. What type of analytics might they employ to achieve this goal?
prescriptive
The analysis type that indicates the best course of action to take
prescriptive
optimization models fall under which analysis type
prescriptive
Term used to determine number of cases per total population (number of cases/ total population)
prevalence
Used to count ALL of the existing cases in a disease
prevalence
formula for Bayes
probability A/ (prob A+Prob B)
framing the problem involves
problem recognition and review of previous findings
In the sipoc model, what part of the process is a series of steps where an input converts to an output
process
Principle that lowers cost and shortens cycle times through effective use of resources
process approach
a QM principle where managed processes create efficient and effective results that are consistent and predictable
process approach
Key word for linear programming
production mix
A ratio of a group to the whole
proportion
An error that is minimized by larger sample sizes
random
An error that is unknown and unpredictable
random
in order for measured data to be reliable the sample tested must be
random
4 common errors
random systematic omission outlier
unpredictable error
random error-no correlation
simulation models is used for..
random variables
The difference b/t the largest and smallest items in a sample
range
Variable control charts are measured by ________ or _______
range, mean
measures of variability include
range, variance, standard deviation
Continous data with unique zero point
ratio
Runners cover 26.2 miles in the Olympics marathon. What level of measurement is this?
ratio
The measure of one quantity in relation to another
ratio
What type of data is common in business
ratio
Two types of numerical data
ratio interval
What is the process of qualtiy control
reduce or minimize errors
A statistical analysis that measures a significant relationslhip or trend
regression
A test that seeks relationships or trends
regression
A time seried analysis where the trend is linear over time
regression
What type of analysis would be appropriate to test for a significant linear trend
regression
a type of statistical analysis used for predicting or forecasting some value
regression
The R in kpi is
relevant
Data management seeks to provide data that is ______________ and ____________
relevant and timely
Two types of information bias
response conscious
A type of bias where the respondent says what they believe the questioner want to hear
response bias
When someone asks a question that we feel there is only one answer to or feel persuaded to answer a certain way
response bias
An advertising manager creates a research study by presenting low, medium, or high frequency of the same ad in matched markets. The manager then reports on sales in each market location. What is the term for the different sales in this study?
response variable
Goals of RBM is translated into
results
RBM seeks
results
What are key to success (3)
results, presentation, generating an action
RBM uses _____ as a central measure of ______
results, performance
what is the difference between structured and unstructured data
rows and columns(grocery bill) versus emails or photos or videos
Illustrates performance measurements over a period of time
run chart
A diagram that looks at relationships between two variables
scatter diagram
A graph of values of one vaiable vs another variable
scatter diagram
Used for potential relationships and correlation between vairables
scatter diagram
what charts are best used with regression or multiple regression
scatter plots
A descriptive graph depicting whether there is a correlation or relationship between two variables, such as car mileage and resale price would be:
scatterplot
Regular pattern within a single year
seasonality
correlation is ______ with cause
sequential
An analysis the uses computer-based models that amulate real-world situations
simulation
What model can be used to predict or forecast in an uncertain environment
simulation
what prescriptive model combines uncertain probability and statistics to make good decisions
simulation
In analytics, what is used to support business decisions
simultaneous application of statistical methods, management science, optimization and decision making
KPI is typically a ......
single performance measure
A model that allow us to see all the elements that could influence a process
sipoc
What happens when outliers are included or excluded in the analysis
skewness
A measure of the degree to which data leans toward one side
skewness or bias
A qualtiy team gathers data and performs a regression analysis. what step is this?
solving the problem
The second stage of Davenport-Kim model
solving the problem
An outlier could describe what type of data
something that doesn't belong
Variation from an abnormality causing large discrepancy in results
special cause variation
A variation that can be traced to a specific cause and red flagged with an objective to eliminate if bad or incorporate if good
special or assignable causes
the S in KPI is
specific
the spread of data in a sample. How far the data points are from the mean
standard deviation
R charts are used when.....
standard deviation are not available or difficult to compute
If the PDCA model trial is a failure, what happens
start the model over again
A chart that uses upper control limits and lower control limits that shows when processes are in or out of control
stat process control chart
A group of observations that have something in common
statistical population
4 additional decision analysis techniques
statistical process control linear programming decision tree simulation
What process uses statistics and control charts to tell WHEN to take corrective actions
statistical process control (SPC)
What does it mean when dots are close together on a scatter plot
strong correlation
Big data refers to both
structured and unstructured data in large volumes
types of discovery of patterns
sums, averages, and percentages
In the SIPOC model, which part reflects a person or organization that provided input to a process
supplier
A type of error that occurs when the measurement does not return to the zero point
systematic
What measurement error is constant within a data set
systematic
What type of data error that occurs in measurement is constant within a data set and is sometimes caused by faulty equipment or bias?
systematic
This type of error occurs when something unrelated to the test is affecting the results
systematic error
When conducting a study that measures an individuals's weight, all scales are calibrated prior to use in measurement. What type of error shoulc this procedure significantly reduce
systematic error
A QM principle where achieved objectives are met through interrelated areas of identifying,understanding, and managing
systems approach to management
A comparison between the effectiveness of online vs. newspaper coupons was conducted over a 3 month period to see which method brought in greater average revenue per customer.Which statistic should the pizza manager recommend use to determine promotional method to use?
t test
North American Oil Company is attempting to develop a reasonably priced gasoline that will deliver improved gasoline mileage. As part of its development process, the company would like to compare the effects of three types of gasoline. Which analysis technique should the company use to compare the performances of each gasoline type?
t-test ANOVA* Z-test Chi-square
5 Types of statistical analysis techniques
t-test anova chi-square time series regression
what types of time series analysis are not used for forecasting a future value (when used)
t-test, anova, chi-square
examples of interval data
temperature dress size
Linear programming tells us what
that so many of each product needs to be made to make the best profit
cross over analysis decides what
the best cost for the volume that will be produced
What does it mean when the dots are spread apart on a scatter plot
the correlationis weak
The significant value of ordinal data is....
the order of value
cluster analysis gives us what
the outcome of groupings
What are analytics
the process of turning data or information into fact based knowledge
Samples need to be.......... and represent..........
the right size, your population
The smaller the range.....
the tighter the process control
Interval data not only tells us of the value but also ....
the value between spaces
The T in KPI is
time bound
What negatively impacts testing entire populations
time consuming and expensive
A simple regression using tine as the independent variable
time series
Predictive analysis models include
time series, regression, and statistical quality control
When do you use the break-even analysis
to determine the volume at which total revenues make up for equal total costs
Observation points that are distant from other observations
Outliers
All statistical tests use what
P value
What value stands for the probability that the hypothesis is incorrect
P value
Key word for decision tree
based on the probability of our payoff, whats our highest estimated value
why can ratios be added, subtracted, multiplied or divided
because it can have a true zero
why can interval data be multiplied or divided
because there is no true zero
Participants are not told if they are in the treatment group or control group
blind study
What type of study is conducted when the participant is not told results
blind study
x bar and r charts can be used together when...
both processes are in control
formula for z score
(Value-Mean)/ std deviation
Which of the following statistics are robust to minimize the effect of a single large outlier? (More than one answer)
*Median *Interquartile range Variance Range Mean *Mode
Used to study the composition of a data set and examine the distribution
box plot
Balanced Scorecard advantages 4
-better organization alignment -better internal and external communication -links operations with company strategy -emphasized strategy and organization results
Disadvantages of KPI
-can be expensive and requires ongoing maintenance -small KPI changes that are not statistically significant might be mistakenly viewed as meaningful -might lead to focus on short term rather than long term goals
Disadvantages of NPS 3
-doesn't consider in-depth customer perception data -may fail to predict loyalty behaviors -doesn't address specific areas of dissatisfaction or satisfaction
NPS advantages 3
-easily understood metric -easy to calculate and monitor -can banchmark against industry leaders
Advantages of KPI's (4)
-help track finance, productivity, and goals -data driven results that make it easier to quantify performance -can be used as a tool across an entire organization -internal benchmarking
Disadvantages to a balanced scorecard 3
-requires time and effort to develope a meaningful scorecard -challenges for cross-company adoption -may not encourage desired behavior changes
What is the significance variable
.05
descriptive techniques are used by
businesses
Z scores always have a mean of _____ and a standard deviation of _____
0, 1
There are six toll booths to enter the highway. What probability does each toll booth worker have of getting the next customer
1 customer in 6 booths= 1/6 or 16.7%
A correlation is strong if the coefficient is close to...
1 or -1
A regional grocery chain measures the increase in prices by tracking the price of milk, eggs, white bread, and ground beef using the year 2005 as a base. The sum of these items in 2005 was $10.00 and the sum of the prices in 2015 was $14.50. What is the simple composite index for these items?
1.45 10.0 125 145 *
Z score for a 95% level of confidence
1.960
The base period of indices
100
A city hospital wishes to evaluate the labor hours it needs based upon monthly occupied bed days and average length of patients' stay. The estimated regression is: y = 2000 + 75X1 + 65X2 What scenario would be predicted if X1 = 500 and X2 = 1000?
104,500
How can we monitor quality
by observing variation in output measures
nominal data has how many values
2
A type of statistical analysis where you comper 2 means
2 sample T-test
Z score for 99% level of confidence
2.576
The mean of 100 bank customers' waiting times for teller service is 5.8 minutes with a standard deviation of 1.5. What time range would represent a 95.4% probability customer waiting time?
2.8 to 8.8
How does probability therory inform decision-making for managers
by quantifying data
How many standard deviations exist in a process control
3
ordinal data has how many values
3
Given the following data set:60, 41, 30, 15, 34, 30 What is the Median?
32
You are on soccer league with a total of 10 opposing teams, the pairings in the first round are at random. There are 4 out of state and 6 in-state opposing teams. What is the probability of playing against an in-state team?
60%
The probability of falling within plus or minus one of you standard deviation mean is
68%
Percentage found within 1 standard deviation of the mean
68.3%
Business Improvement Analytics represent what
A change in price or quantity over time for goods/services
Enterprise Industries produces Fresh, a brand of liquid laundry detergent. In order to study the relationship between price and demand for the large bottle of Fresh, the company develops the following relationship: Demand = 600 + 50X. What price is needed to produce a demand of 1000?
8$
What percent of quality problems does Ishikawa claim the seven tools can solve
90-95%
Plus or minus 2 of standard deviation is what percentage
95%
We examine a population with normal distribution having mean 1000 and standard deviation 50. What percentage of the population lies between 900 and 1100?
95%
When comparing P value, what percentage are we looking at
95%
Percentage found within 2 standard deviations of the mean
95.4%
Percentage found within 3 standard deviations of the mean
99.7%
Plus or minus 3 of standard deviation is what percentage
99.7%
We examine a population with normal distribution having mean of 1000 and standard deviation 50. What percentage of the population lies between 850 and 1150?
99.7%
Which two examples exhibit appropriate use of performance measures in business?
A hospital measure Emergency Room response time for improvement * Nonprofit tracks expenses to increase efficiency * A Women's retail shop reviews color trends for the next fall season A school reviews number of extra-curricular activities available to students
Objectives for Quality Management principles (4)
Achieve sustained Quality success, create value for customers, fast market opportunity response, effective use of resources
Plan-Do-Study-Act Which step is a response to analytical results
Act
use this rule when looking for one or the other event happening (OR)
Addition
What two companies have the highest NPS
Amazon then Iphone
Which statement is not true of the Seven Basic Tools of Quality?
An average worker can easily understand how to use the tools Processes are represented graphically The tools are based on statistics * Tools can be used independent of each other
Used to compare the mean of 3 or more groups
Anova
An online retailer selling workout apparel has a large increase in sales during December and declares that their weekly newspaper ad resulted in higher sales. What misuse of statistics may the retailer have used in making this decision?
Association and Causation
Refers to a situation in which two or more explanatory or independent variables in a multiple regression model are highly linearly related.
Autocorrelation Multicollinearity * Homoscedasticity Heteroscedasticity
A department store is considering a new credit policy to reduce defaults on payments. Its records show that 95% of defaults have at least 2 late payments. Also, 3% of all customers default and 30% of those customers who have not defaulted have a least 2 late payments. What statistical rule should be used to find the probability that a customer will default given that at least 2 payments were late?
Bayes Theorem
When given P(A) given P(B), you can use this to fing the P(B) given P(A)
Bayes Theroem
What makes random selection equal
Because all samples have equal opportunity to be selected
Why is Business Improvement Analytics watched closely
Because it is considered the main measure of inflation
Data mining is associated with
Big data
Value, Quality, and Uniqueness that consumers use to buy things
Brand equity
Ski Boards, Inc. wants to enter the market quickly with a new finish on its ski boards. It has three choices: refurbish the old equipment, make major modifications or purchase new equipment. The company has estimated the fixed and variable cost for each option. Which technique should they use to select the least costly option?
Breakeven Linear Regression Linear Programming Cross Over *
Index numbers are used for
Business Improvement Analytics
What does a balanced scorecard measure
CLIF customer, learning, internal process, financial performance
What are two advantages of Key Performance Indicators (KPI)?
Can be expensive and time-consuming to set up and use Educate management on company performance * Results are often only rough guide rather than a concrete measurement Data-driven results make it easier to quantify performance*
What chart tracks categorical data and plots the number of defects, meeting requirements or not
c chart
Benefits of mutually beneficial supplier relationships 2
Common understanding of goals and values, increased capability to create value by sharing resources and competence and managing quality related risks
A basket of assorted consumer goods and services that are purchased by a common household
Conusmer Price Index
Which measurement may be used by potential home buyers to evaluate the price of homes on the market?
Cost of raw materials Price per square foot* Realtor listings Zoning regulations
The town council of a beach town is studying whether to dredge the canals of an ocean front community that were filled with sand during a hurricane. What analytic method can the council apply to this issue?
Cross-over analysis Boating access to local home sites. Household income Cost-benefit analysis*
What would be used to measure and determine the new cases from research
Cumulative incidence
A large manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of the past 12 months of sales indicates that sales are increasing. What time series pattern does the sales likely exhibit?
Cyclicality Trend * Seasonality Random variation
Which of the following is not an advantage of KPI
Data driven results that make it easier to quantify performance Links operations with company strategy * Allows for internal benchmarking Can be used across an entire organization
A model that maps our a 3 stage approach to quantitative analysis
Davenport-Kim
A researcher is evaluating voter turnout based upon age and location of voting precincts. Which analysis technique should she use?
Decision Analysis Time Series Analysis Linear Programming Analysis Cluster Analysis *
. An entrepreneur is thinking about starting an independent gasoline station and considering how large the station should be. The annual return will depend upon the size of station and a number of marketing factors related to the oil industry and demand for gasoline. What analysis technique should be used to evaluate station size given the uncertainty of oil industry and demand factors?
Decision Analysis * Time Series Analysis Regression analysis Cluster analysis
An analysis that uses a form of financial modeling that considers different options to achieve the most profitable outcome
Decision tree
Two types of statistics
Descriptive and inferential
When KPI is difficult to change once set up
Disadvantage
The father of continuous improvement
Edward Deming
Which two statements describe how a process approach and a commitment to continuous improvement enhance quality?
Efficiently achieving results * Enhances customer loyalty Creates the best possible product * Mutually beneficial partnerships
City Line Transport wants to look at its fuel costs for 2013, 2014 and 2015 against the start-up base period of 2012. What analytic method should the company use?
Exponential smoothing Simple Index * Cumulative incidence Moving average
A business entrepreneur wishes to predict yearly revenue for potential Sub Restaurant sites. He performs a regression analysis based upon the area's population and business rating. What statistic indicates the strength of the relationship of population and rating to revenue?
F - test P - value Z - score R - square *
Anova used this test statistics
F-value
Keyword for Bayes
Given that
How does the government differ than private sector cost-benefit analysis
Government benefits aren't always money
Objectives of a system approach to management 2
focuses on key organization processess, understanding how results are produced to optimize performance
Which of the Seven Basic Quality Tools is used to exhibit the relationship between two variables?
Histogram Scatter Diagram * Check Sheet Cause-and-Effect Diagram
An online Active Wear retailer wants to use their last year's sales to evaluate consumer trends before ordering merchandise for fall season. What process should they use to discover consumer purchasing patterns?
Hypothesis testing Linear programming Data mining * Qualitative research
Measures the difference between the third and first quartile
IQR- Inter-quartile range
Model of designing, analyzing, and scoring tests
IRT Item Response Theory
Benefits of factual based decision making 2
Improved operation effectiveness and efficiency, improved assessment of process performance and ability to achieve objectives
Benefits of People involvement 3
Improved understanding of quality objectives, enhances initiative and creativity, enhanced trust and collaboration
Benefits of meeting Quality Mngt principles (3)
Increased customer value, improved customer loyality, Increased revenue and market share
Benefits of leadership objectives 3
Increased effectiveness and efficiency, better coordination of processes, improved communication
A common analytic used for business improvement
Index numbers
A food chain finds that there is a strong positive correlation between average daily sales for their pizza store and the number of daily visits to their website. What should be considered before the pizza chain can conclude that the daily sales are driving the number of visits to their website (or vice versa)?
Is there a causal relationship between sales and site visits
Another name for the seven tools of TQM
Ishikawa model
A sample of less than 30 will do what to normal distribution
It cannot meet the assumptions of having a normal distribution
A rural town seeks to deploy a new citizen relationship program within its Fire and EMT department. How could the citizen relationship program help the town service citizen's emergencies?
It could help reduce the cost of schools It could enhance the training of town employees It could reduce response times * It could aid funding of road projects
What is the approach for Results Based Management
It is a life-cycle approach that is continuous, measurable, and performance is evaluated.
A theory that takes into account for different questions having different levels/weights of difficulty
Item response theroy
Performance measure for one specific goal
KPI Key Performance indicator
Multiple KPIs are displayed for the big picture
KPI dashboard
What makes KPI different from KPI dashboard
KPI dashboard has multiple graphs and can reveal trends
A technique for minimize total cost or maximize profit based on constraints
Linear programming
An analysis that determines how to best use limited resources
Linear programming
A Charity is evaluating the effectiveness of its annual walk promotional campaign, in increasing walk participants and donations.What is the appropriate tool for evaluating performance?
Management by objectives Results-based management * Balanced scorecard Key Performance Dashboard
Measure of central tendency that is influenced by the size of the values in a dataset
Mean
A Manufacturer needs to closely manage product cost to maintain profit margins in a highly competitive market. Which two key performance indicators should management use to control product cost?
Measure employee productivity * Measure square footage Measure community relations Measure production waste *
. An Online retailer seeks to improve its Amazon customer services rating. What two key performance indicators should the retailer measure?
Measure on time delivery * Measure employee productivity Measure customer return rate * Measure average order size
What two companies have the lowest NPS
Motel 6 then comcast
After traveling down the Mississippi River, barges randomly arrive in New Orleans and are unloaded on a first-in, first-out basis. Any barges not unloaded on the day of arrival must wait until the following day incurring additional cost and negatively affecting customer service. The dock superintendent wants to use analytics to support a request for additional unloading crews. What analysis technique should he use?
Multiple Regression Simulation * Linear Programming ANOVA
name the 4 levels of measurement
NOIR -nominal ordianal interval ratio
A Pizza Chain wishes to improve sales by focusing on product quality, reducing delivery time and improving productivity. Which tool would best meet the Chain's objective of quantifying their improvement in product quality only?
Net Promoter Score Key Performance Indicator * Balance Scorecard Big Data Analysis
A retailer wants to evaluate the strength of its customer relations to see how the company compares to others in the industry. Which analysis technique could help the retailer with this decision?
Net Promoter Score * SIPOC diagram Balance Scorecard Big Data Analysis
A retail chain seeks to improve store performance by growing sales and improving customer service. Which tool would specifically meet the chain's objective of improving store sales growth?
Net promoter score Big data analysis Key performance indicator * Balanced scorecard
Identify, Group or categorize
Nominal
Compares one individual's performance to other individuals
Norm referenced
A test used to compare an individual to others
Norm referenced tests
At WGU, students take objective assessments to evaluate a student's knowledge of predetermined course competencies in relation to a cut score. What type of test is the objective assessment?
Norm-referenced Percentile based Criterion-referenced* Reliability based
Measures of central tendency are approx equal (Mean and Median)
Normal distribution
How are z-scores from a population with normal distribution distributed?
Normal distribution with mean 0 standard deviation 1
Used when impractical or impossible to control the conditions of the study
Observational study
Error may occur from missing data
Omission Error-Distorted results
Several missing values in a particular field in a dataset were observed. The likelihood of a record having a missing value is correlated to another variable in the dataset. Which 2 types of error might be introduced into the dataset if the removed record included missing values?
Omission and systemic
What test compares 1 mean to a standard
One sample t test
A type of statistical analysis where you compare 1 mean standard
One sample t-test
What type of data are the Olympic medals of gold, silve and bronze examples of?
Ordinal data
A local restaurant is attempting to reduce the time from taking a customer's order to delivery of the order. Which quality tool should the restaurant use to study their order process?
PDCA model Histogram Check sheet Flow Chart *
Which quality tool is an organized method for collecting data
Pareto Chart Histogram Flowchart Check Sheet *
. United Motors indicates that gas mileage tests of one of their cars, the Starbird 300, under city driving conditions has a mean of 29.9 mph and a mode of 30 mph. Which type of distribution would this testing represent?
Pareto distribution Bimodal distribution Multimodal distribution Normal distribution*
Benefits of system approach to managment 3
Performance advantage, improved activities at all levels, flexibility to react to opportunities
After collecting data and performing statistical analysis in a company's assembly department, a quality team recommends processing changes to reduce defects. The team proposes a pilot program to evaluate the effectiveness of their recommendations. Which step of the Plan-Do-Check-Act model does the pilot program represent?
Plan Do * Check Act
An International Health Organization is concerned about the spread of the Zika virus in South America as mosquito season approaches. It proposes measuring the growth of new cases for the total population over the next six months. What type of analytics would this represent?
Prevalence Ratio Cumulative Incidence* Incidence Rate
A list of all the different probabilities of each outcome that can occur
Probability distribution
Net Promoter Score (NPS) calculation
Promoters - detractors =NPS
What is the difference b/t QA and QC at its level
QA is advanced and understands the system to predict outcomes and QC is basic and recognized problems so they can be fixed
What is the difference b/t QA and QC and their major activities
QA's major activity is to design and train, and QC's major activity is to inspect and repair
What is the difference b/t QA and QC and their change response
QC is reactive and takes action as the problem occurs, and QA is proactive and takes action before the problem occurs
The difference between QC and QA with its purpose
QC recommends corrective action and QA recommends preventive action
Difference between QC and QA according to its focus
QC uncovers defects to be fixed, QA prevents defects
What type of research design uses explorative research, data the is not characterized by numbers and can be textual, visual, or oral
Qualitative Research
A process that assesses the capabiltiy and recommends preventive action
Quality Assurance
In manufacturing, statistics is used for...
Quality Control
A maker of computer chips develops a new training program to assure that quality standards are met. Which of the following activities is the training program an example of?
Quality Control activity Lean Operations activity Quality assurance activity * Just-in-time activity
What management tool is used to satisfy customer needs
Quality Management Principles
A process that assesses performance and recommends corrective action
Quality control
Which type of research design generates numerical data into usable statistics
Quantitative design
What type of research design uses numerical data with measurements and analytics
Quantitative research
EAch of the four quartile groups a population can be divided
Quartiles
What chart is used for range
R chart
What value represents a "goodness of fit"
R square
Management strategy that used results as the central measurement of performance
RBM Results Based Management
Measures the goodness of fit in a regression analysis
R^2 (R square)
Types of tests that use Item Response Theory
SAT and GMAT
Diagram demonstrating all of the elements that can influence a process before it starts
SIPOC
An Organization seeks to shift its business strategy to development of new products for the future while still growing sales of its current products. Which tool could help the company focus on both its financial objective and growth of new products?
SIPOC Diagram Linear Programming Balanced Scorecard * Net Promoter Score
A model that reflects a high level view of a process using suppliers, inputs, processess, outputs, and the customer
SIPOC model
Key performance indicators follow a __________ criteria
SMART
A recent poll of 519 adults who flew in the past year found they ranked the following as their number 1 complaint: cramped seats (45), cost (16), fear of flying (57), security measures (119), poor service (12), connecting flight problems (8), overcrowded planes (42), late planes (57), food (7), and other (51). Which technique would be used display a ranking of the complaints?
Scatter diagram Pareto chart * Cause-and-effect diagram Control chart
A type of index where the price or quantity relative to a base period of 100
Simple Index number
A type of index based on a combination of items/measures without weightine any data more significantly than any other data
Simple composite index
A craftsman builds two kinds of birdhouses. One for bluebirds and one for cardinals. He knows the amount of labor and the units of lumber that are needed for each birdhouse. The craftsman has available 60 hours of labor and 120 units of lumber. Which technique should the craftsman use to minimize cost?
Simulation Linear Regression *Linear programming Breakeven
Which type of quality activity would assess capabilities and recommend process design changes as preventive action?
Six Sigma activity Lean Quality Management Quality assurance activity * ISO management
Manufacturing approach to improving processes
Six sigma
A quality team reviews a process past improvements and type of data that can be gathered. What step is this?
frame the problem
What are two disadvantages of a Balanced Scorecard?
Sometimes difficult to maintain momentum Emphasizes strategy and organizational results * May not encourage desired behavior changes * Links company operations with its strategy
Types of analysis techniques
Statistical and decision
An analysis where the monitored standards meet the derived standards
Statistical process control
What is SIPOC
Suppliers, Inputs, Process, Outputs, Customers
This error repeats itself
Systematic Error-Skewed results
What types of values or answers do you get from T test anova regression time series chi square
T stat F value R squared R squared x^2 (x squared)
T-test used this test statistic
T-value
Tests that compares an individual to defined standards
Test construction
What does it mean when an individual data point has a z-score of +1?
The data point is one standard deviation greater than the mean of the data set
The first step in the Davenport-Kim model is to
frame the problem
What approach does RBM take
life-cycle approach
A loan officer compares the interest rates for 48 month fixed-rate loans and 48 month variable-rate auto loans. Two independent, random samples of auto loans are selected. Which two results happen when the null hypothesis is rejected using a t-test? (Pick 2)
The test statistic is less than the critical value *The null hypothesis is rejected given a probability of being wrong *The test statistic is greater than the critical value The null hypothesis is accepted given a probability of being correct.
A car dealership wishes to forecast car sales based upon price discounts and television ads. What forecasting technique should the dealership use?
Time series analysis Cluster analysis Decision Analysis Multiple Regression Analysis *
A Boston Hallmark store is preparing a budget for the next year and needs to forecast sales. The store notices variation in sales around holidays. What pattern describes the data to be forecasted?
Trend Cyclicality Seasonality * Random Variation
A theory without systemetic error where the observed score = the true score + the random error
True Score Theory
A type of index where certain variables are given weighted factors when calculating the index
Weighted composite index
Which two statements indicate when it is appropriate to use a KPI Dashboard?
When more than a single chart, graph or piece of data are integral to making business decisions * If used over time, can create an internal benchmarking system Needed to emphasize strategy and organizational results When visual representation is needed to see if an organization is meeting the goals *
Tells us the number of standard deviations a data point is from the mean
Z score
Which analysis technique can be used with hypothesis testing when nominal or categorical data is gathered?
Z-score Chi-square* t-test ANOVA
What is the formula for finding a Z score
Z= (a value-mean)/ standard deviation
Breakeven gives us what
a specific answer
What is required for big data analysis
a system of organization
RBM clearly defines ________ of results and requires ________ and _______ ____________
accountability, monitoring, self assessment
What phase of the PDCA model communicate results of the trial whether successful or failure
act
After communicating results, we.....
act on results
Interval data can be...... but cannot be........
added, subtracted multiplied, divided
Is it an advantage or disadvantage if a balanced score card improve internal and external communication
advantage
When KPI data driven results make it easier to quantify performance
advantage
When a balanced score card links strategy to organization results
advantage
When a score card improves organization alignment
advantage
Key word for combination
all possible
For companies to attract and retain their best customers they need a complete portrait of who they are. To develop this portrait companies turn to...
analytics
Keyword for multiplication
and, both, all
Words used to introduce the multiplication rule of probability
and, both, all
A type of statistical analysis that compare 3 or more means
anova
What statistical test should be used to determine if there are significant differences in incomes among the 3 towns
anova
What test compares 3 or more means
anova
Which statistical test compares 3 or more groups
anova
which statistical procedure compare outcomes of different drug testing results
anova
numerical data measures what
anything in the physical world
What sample size would assume normal distribution
at least 30
The A in kpi is
attainable
Shows whether a result meets a requirement or not
attribute
A type of control chart that has categorical or discrete random variable, have defect related characteristics, classify product at good or bad, and requires larger sample sizes
attributes
Two types of control charts
attributes and variables
What type of chart would be appropriate for an anova analysis of 3 means
bar chart
Analytics uses what 3 categories to achieve results
descriptive, predictive, and prescriptive analytics
The Davenport-Kim three-stage model consists of framing the problem, solving the problem, and communicating results. Which two of the following are part of framing the problem stage
determine the scope of the problem and review of previous findings
Another term for descriptive
diagnostic
Is it an advantage or disadvantage when a score card requires time and effort to establish a meaningful scorecard
disadvantage
When balanced score cards are difficult to maintain momentum
disadvantage
another name for categorical data
discrete
What phase of the PDCA model will implement the plan on a trial basis
do
A local school board is studying the impact of a proposed change in testing on math scores. Bias can be introduced into the study by both students and teachers. Which research technique would eliminate this type of bias?
double blind
what type of study is when the data gatherer and participant are not told results
double blind
Neither the treatment allocator nor the participants know who is in the treatment group or control group
double blind study
Objectives of People involvement 3
effective and efficient management, people accountability of own performance, recognition-empowerment-and enhancement of competence facilitates continual improvement
All measurements contain some degree of...
error
A criterion test can be called a
exam cut score
The average outcome (payoff) when the future includes scenarios that may or may not happen
expected monetary value (EMV) analysis
All variable measurements and manipulations are under the researcher's control
experimental study
A Company's product development team test 3 new car waxes by waxing 5 cars with each wax and then running them through a car wash. They then record number of washes it takes before the wax begins to deteriorate. What is the term for the five cars?
experimental unit
What are the 3 process steps to Quantative research
experimental units treatments responses
A QM principle where decisions are based upon analysis and evaluation of data and information
factual approach to decision making
What would cause a systematic error
faulty equipment or measurment instruments
A balance scorecard included (4)
financial customer operational efficiency and employee learning/innovation
Which of the following is not a Balanced Scorecard perspective
financials customers suppliers * internal business processes
another name for a cause and effect diagram
fishbone
What are the 3 essentials for a break even analysis
fixed costs variable costs revenue
A chart that shows the steps of a process
flowchart
Visual tool to understand a process
flowchart
Tools for generating ideas
flowchart cause and effect dia
Process Approach objectives 2
focus n efficient use of activities and resources, optimize performance through effective process management
A correlation is weak if the coefficient is close to...
zero
examples of nominal data
gender, male or female
Results Based Management is particularily used in (2)
government and nonprofit
Two types of descriptive analytics
graphical analysis and discovery of patterns
Key word for cluster
groups
The F value of an ANOVA test stat must be what to reject the null
higher than the critical value
The T value of a t-test stat must be what to reject the null
higher than the critical value
A chart that shows a distribution of frequency of occurences of a variable
histogram
A local plumbing company is analyzing to see how the number weeks taken for their payment receipts is distributed. Which graphical analysis technique should they use?
histogram
Graphical display of data set cnetered
histogram
Tools to organize data
histogram scatter diagram check sheet
Graphical display of data set with one bar for each category
histogram an pareto
types of graphical analysis
histogram, run chart, scatter diagram, pareto chart
What term is used when only considering new cases
incidence
Used to count only the NEW cases of a disease
incidence or incidence rate
What term is used to describe the importance if the incidence is changing over time
incidence rate
examples of ratio data
income stock prices repeat customers
In analytics, as difficulty increases, company value....
increases
When using linear regression, we are using a __________ variable to predict a ___________ variable
independent dependent
Numerical data can accept how much data
infinite or finite
Descriptive statistics are used to
inform /explanatory
Question favor an outcome or the interviewer ask question that favor an outcome
information bias
Benefits of process approach 3
inproved,-onsistent and predictable results, lower cost and shorter cycle times, focused on prioritized improvement opportunities
In the sipoc model, what part of the process adds resources to the process by a supplier
input
Orders data at equal distance apart
interval
What level of measurement are women's dress sizes (2,4,6, etc.)?
interval
Which type of data has an order and is equally placed apart
interval
The resources of RBM are ________ and ________ where the reults of RBM are ________, __________, and _____.
inuts, activities outputs, outcomes, impact
Benefits to continual improvement 3
investigating root-cause followed by prevention and corrective actions, enhanced ability to anticipate risks and opportunities, drive innovation
Unforeseen circumstances causing random deviations
irregularity
What are 2 aspects of data quality management
it cleans data and reduced the amount of incomplete data
A QM principle where leaders of all levels establish unity of purpose and direction, creating conditions of engagement for the organizations quality objectives
leadership
A P value must be
less than .05
examples of ordinal data
levels of energy low, med, high
examples of ordinal data
top 10 cities to retire in or, top 10 football teams
A healthcare provider is researching blood glucose levels before and after exercising. What two elements should be part of any experimental study such as this?
treatment procedures and experimental response
The procedure the researcher applies to each subject
treatments
A general slope upward or downward over a period of time
trend
another name for time series
trend
What type of study is conducted when the data analyzer, data gatherer and participant are not told results
triple blind
the discrete variables can accept how many values
two or more
A test that compares 2 means
two sample t test
A manufacturer of running shoes is implementing lean operation concepts into their production process. Which critical success factor would assure a smooth transition into the new program?
understand customer needs and wants
The first step for Quantitative analysis is to
understand the data
Objective of factual based decision making 2
understanding of cause and effect relationships and unintended consequences, fact-evidence-and data analysis lead to greater objectivity and confidence in decision making
What is the cornerstone of sound decision making
valid data
Decision analysis assigns ....
values to outcomes based on risk and loss
Shows how well a result meets the requirement
variable
A control chart that measures numerical or continuous random variables, can be measured, uses sampling, and requires smaller sample sizes
variables
A stock broker offers two portfolios for his clients. There are various risks with each portfolio and his is trying to minimize the risk of loss. Both portfolios have the same mean return.Which measure should the employee use to decide between these alternatives?
variance
The revenue of NBA teams ranges from $226 million for the New York Knicks to $92 million for the Milwaukee Bucks. Which statistic would measure how far each NBA team's revenue is from the NBA revenue mean?
variance
If the average is the same for two groups, what will determine their difference
variance (standard deviation)
What is Big Data
vary large data sets
Analytics typically implies the use of....
very large data sets
the key word for cross over analysis is
volume
What are some types of non-monetary government benefits
welfare or flood prevention
Descriptive analytics describes what
what has happened in the past
Decision Tree analysis decides
what is the best decision based on an estimated value
What chart is used for mean
x-bar chart
regression formula
y=mx+b
Can the seven tools be used independently
yes
Can you have KPI in each of the perspectives
yes
dependent variables in binary can include...
yes or no, treated or not treated
A standard score or norm test is a
z score
An online marketing organization designed a social media that wants to earn at least $250,000 in revenue. The campaign will reach 10,000 viewers and receive orders with a mean of $50 and standard deviation of $10. Which measure should be used to determine the probability of the campaign receiving at least $250,000?
z score
Based on quality checks at plastic bags manufacturer, the breaking strength of their bags has a mean of 50.5 and a standard deviation of 1.6. A customer's test of the bags finds bag strength of 54.2 or less. Which statistical measure should be used to help determine the probability of the customer's test occurring?
z score
What will tell you how one person is different from the mean
z score
A High School principal wishes to study the math and science performance of individual 12th grade students by comparing their scores across multiple courses. Which analysis technique should the principal use:
z-score * t-test p-value R-square
