C207 Preassessment
compare 3 groups, is there a significant difference in the AVG. the test statistic (F) must be greater than the critical value (f value) in order to reject the null hypothesis.
ANOVA
An organization develops a new strategic plan and seeks ways to measure its performance over a specific period of time. Which system enables the organization to measure performance based upon established global standards?
ISO
a researcher wants to predict test scores based upon hours studying. What type of regression would be more appropriate.
Ordinary least squares regression (linear regression)
A college is reviewing statistics concerning student retention. The college would like to determine the most important factors that cause students to leave and asks the researcher to display this information using one of the Seven Basic Tools of Quality. Which tool should be used in this case?
Pareto chart
What is a significant disadvantage of KPI's?
They require significant ongoing maintenance
t stat needs to be great than the critical t stat in order to reject (prove your hypothesis)
null hypothesis
dectractors, passives, promoters, %promoters - %dectractores
Net Promoter Score NPS
broad definition, history, type of analysis, what data to collect
frame the problem
random variables have an unequal spread of the variances
heteroscedasticity
graph that displays continuous data (values)
histogram
Given the following data set 9 12 14 10 8 11 12 What is the mode
12
A normal distributed data set has a mean of 10 and a standard deviation of 2 What is the probability that a randomly selected event from the data set will be between 8 and 12?
68.2%
The number of customers that an automobile service shop receives on any given day is normally distributed with a mean of 75 and a standard deviation of 25. On a given day, 125 oil changes are performed. What is the probability on a given day of 125 or fewer oil changes performed?
97.5
A nonprofit organization ran an e-mail campaign with three different messages to solicit additional donations. What should the nonprofit organization use to determine if the average donation differs for the different messages.
ANOVA
assumption that one variable is causing another
Association and Causality
Which approach uses financial, customer, internal business processes, and innovation/learning measures?
Balanced Scorecard
A hardware store has found that there is a 0.25 probability that a customer buys an electrical product, a 0.45 probability that a customer buys a plumbing product, and a 0.10 probability that a customer buys an electrical part if they purchase a plumbing part. Given this information, which statistical rule can be used to determine the probability that a customer buys a plumbing product given that this customer has purchased an electrical product?
Bayes' Theorem*
if you know the probability of an event you can determine the probability of another event. usually states "given that"
Bayes' Theroem
structured, row/column format unstructured, email, video, word docs, social media
Big Data
A county government must reduce spending. It wishes to eliminate incremental budgeting and align budget allocations with each of its units' strategic business objectives. How can the county apply data analytic approaches to attain this goal?
By benchmarking like strategies of successful counties
Which analysis technique can be used with hypothesis testing when nominal or categorical data is gathered?
Chi square
no average, "frequency" with an N over 30. assumes equal distribution
Chi-square
50% =0.674 95% = 1.960 99% = 2.576
Confidence Level
2 or more decisions, looking for OPTIMAL CHOICE
Crossover analysis
frame the problem solve the problem communicate the result
Davenport-Kim three stage model of decision making
analysis tool that shows the number of options, the paths by which each option is reached and the possible consequences of each option
Decision Trees
Which two decision considerations describe fact-based decision making, according to the quality management principles? Choose 2 answers
Decisions foster trust in plans. Decisions reduce external bias.
In the month of December, there is a strong positive correlation between airline tickets and retail sales. Which question should the researcher consider before concluding that the correlation statistic implies that the airline sales drive retail sales?
Does a casual relationship truly exist
68-95-99.7 Rule
Empirical Rule
A hotel chain is interested in improving its customer service by reducing the amount of time it takes customers to check in. Which analysis technique should they use?
Flowchart
What is the most important analytic to determine the success or failure of a particular year's flu vaccine?
Incidence accounting for all new cases
(price/base period) - 100
Index
revenue performance goal
KPI
how do balanced scorecards differ from KPI dashboards?
KPI dashboards provide visual representations, such as charts and graphs of KPIs
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?
Linear Programming
A company that raises turkeys is hoping to increase the rate of growth of the birds while controlling the cost of feeding the birds. It has been determined that feeds containing both nutrients and protein can be used. What decision making technique is most appropriate for this company to minimize the cost of feeding the birds.
Linear programming
A manager of a call center is in charge of creating a staffing plan. The number of calls received per day is normally distributed. Which two statistics would be needed in order to estimate the number of calls that would be received 95% of the time? Choose 2 answers
Mean Standard deviation
Known as The Greatest Marketer In The World
Michael Von Irvin www.michaelvonirvin.com
A professional services firm is undergoing a business process improvement exercise to improve productivity, staff morale, and client satisfaction. Which technique might the firm use to evaluate the strength of customer service relations?
Net promoter score
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 two types of error might be introduced into the dataset if the removed record included missing values? Choose 2 answers.
Omission error typographical error
Which type of data are the Olympic medals of gold, silver and bronze examples of?
Ordinal data
Analytics is a broad term that refers to a variety of tools that inform managerial decisions. Which term can be used to describe managerial decisions?
Predictive
observational, descriptive technique, mean, correlation, NPS
Qualitative technique
measure of "goodness of fit", if close to 1 a good fit, if close to 0 not a good fit.
R squared
must compare apples to apples, compare 2 groups, is there a significant difference in the AVERAGE
T test
What are two reasons for the increasing use of analytics in organizational decision making?
Relatively lower cost of computer storage Higher computer processing power
A professional services firm wants to track and monitor important financial performance measures of the company (e.g., year-over-year change in revenues and profits). Which performance approach would best meet the company's objective
Results-based management
Which key performance indicator can a hotel chain use to measure its ability to meet client tastes and preferences?
Surveying customer satisfaction upon checkout
When conducting a study that measures an individuals weight, all scales are calibrated prior to use in measurement. Which type of error should this procedure significantly reduce?
Systematic Error
A research study examined the impact of product advertisement exposure on that product's brand awareness. The appropriate statistical test indicates that the null hypothesis should be rejected with 95% confidence. What can be concluded from this study?
The advertisement was effective in building brand awareness
A manager uses a linear regression to examine how the store's retail sales are predicted by advertising expenditures. What will retail sales represent in this regression?
The dependent variable
What does True Score Theory state about a test without systematic error?
The observed score is the true score plus random error
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?
The response variable
The management for Hospital A conducted a survey of its patients' opinions including gathering demographic data to determine which programs should be pursued during the upcoming fiscal year. Upon analyzing the response on the need for a cosmetic surgery program for the hospital, it was found that there was an r score of 0.75, and a p of 0.03 between a patient's income level and support for the creation of a cosmetic surgery department. Which statement provides an effective strategic decision based on an analysis of the given information?
There is a strong positive relationship for a cosmetic surgery program as a function of income, and this program should not be developed in high income areas.
In what two ways are KPI dashboards useful in performance assessment? Choose 2 answers
They show trends that represent organizational results over time They are visual representations of key areas of focus
Match each action with the appropriate statistical procedure Answer options may be used more than one or not at all.
Understand effective marketing to spend advertising dollars efficiently = Correlation Monitor production process= Control Charts Compare outcomes of different drug testing results= ANOVA
Z = (x-~x)/std dev will transform different datasets to the same scale
Z score
number between -1 and 1. number close to zero is weak while a number close to 1 is strong. used in linear regression
correlation coefficient
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?
anova
In a statistical process control analysis, sample data are collected from an assembly line and measured to see if they fall within a tolerated measurement range. If an observation does fall within the range, a "yes" is recorded, and if it falls outside the range, a "no" is recorded. Which kind of data do the "yes" and "no" represent?
attribute data
A company uses time series analysis to develop its product forecast. The forecaster uses simple linear regression but notices that the past data trend is aligned with advertising expenditures. What issue might exist with this regression analysis?
autocorrelation
A researcher looks at moving average data on store sales and wishes to perform a multiple regression of interest rates and disposable income. What is a particular concern when performing time series multiple regression?
autocorrelation
a data point in a time series is affected by a previous data point. i.e. if the previous day was hot and sunny its not likely there will be snow today.
autocorrelation
graph of data distributed over groups or categories
bar chart
charts have a vertical y axis and horizontal x axis and measure 2 different variables. scatter diagrams and line graphs
bivariate charts
Shows when costs will break even with sales
break-even analysis
How can organizations implement an effective performance management evaluation system
by establishing a balanced scorecard
A county government wishes to convert government vehicles from gasoline to natural gas. How can the county evaluate the effectiveness of the conversion?
by estimating the payback period
the greater the sample, the closer the mean of the sample is to the entire population and the more the results will look like normal distribution
central limit theroem
A researcher is evaluating voter turnout based upon age and location of voting precincts. Which analysis technique should she use?
cluster
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 in the hope that the healthcare organization will be able to create early prevention programs. Which type of research design does this study describe
cohort study
refers to a situation where a number of independent variables in a multiple regression model are closely correlated to one another. Multicollinearity can lead to skewed or misleading results when a researcher or analyst is attempting to determine how well each one of a number of individual independent variables can most effectively be utilized to predict or understand the dependent variable in a statistical model. I
collinerity
situations with committees, voting, lottery will most likely need what test?
combination
presentation and recommendation
communicate results
opposite of an event happening
complement
A check sheet indicates that of 100 returned items, 50 were damaged upon delivery, 30 were the wrong size, 10 were of poor quality, 5 were a mistaken order, and 5 were returned due to the customer no longer wanting the item. What is the appropriate way to represent these data?
construct a pareto chart
construct has been generally accepted in the field
construct validity
Which common analytic measure is used to improve business performance
consumer price index
does the construct measure what it claims to measure
content valildity
can lay along any point in a range of data, fraction
continuous data
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?
crossover
number of new cases
cumulative incidence
when all random variables have the same variance (assumed in ordinary least squares regression)
homoscedasticity
opposite of what you are looking for which is the alternative hypothesis.
null hypothesis
cleaning and organizing data
data management
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
process of weighing all outcomes of a decision to determine the best course of action
decision analysis
find a solution, linear regression break even analysis, crossover analysis, time series analysis
decision science
quantitative analysis approach. tools that shows a number of options, the paths in which each option can be reached, and possible consequences of choosing each option. establishes a logical sequence for decisions. used in risk assessments
decision tree
which two items represent steps of results-based management? Choose two answers
define resources study the long-term effects or the output
variables whose value depends on the independent variable y axis
dependent variable
graphical - charts, histograms, pareto charts, scatterplots basic arithmetic
descriptive analytics
A national manufacturer is building an overseas factory to be closer to one of its largest markets. Which analysis technique would be appropriate when evaluating location options under risk in order to strengthen the firm's competitiveness in the new market?
developing a decision tree
whole numbers only
discrete data
experimental units - subjects or objects under observation treatments - procedures applies to each subject responses - effects of the experimental treatments
elements to experimental studies
Which phrase is a description of quality assurance
focuses on training
What does this scatter diagram of a organizations retails sails and advertising expenditures indicate?
increases in advertising expenditures are associated with increases in retail sales
variables that influence dependent variables x axis
independent variable
how data is collected or acquired, responder lies, questions biased
information bias
concerns biases that may find their way into the data that is collected
internal validity
has an order with equal spacing, no true zero, dress sz, temperature, time, date, cant * or /
interval data
What is true of cost-effective analysis
it analyzes the cost of achieving a quantifiable goal
What are some aspects of data quality management? Choose 2 answers
it cleans data it reduces the amount of incomplete data
What is a description of data mining
it discovers patterns or trends in large data sets
Which two statements describe how the dedication of leadership and a focus on process enhance quality? choose 2 answers
it ensures a systems approach it ensures clearly aligned goals
A joint venture is established between two firms to use their core competencies to increase their market share. How would a SIPOC (suppliers, inputs, process, outputs, and customers) diagram benefit the joint venture?
it provides a holistic view of the entire operation
What is a disadvantage of a balanced scorecard?
it requires significant time and effort to establish a meaningful scorecard
Which approach focuses on eliminating activities that do not add value or satisfy customers?
lean operations
determines best fit for one or multiple variables
least squares estmation
graph plots relationships between 2 or more variables using connected dots. useful for time series, appropriate for continuous data
line graph
to minimize cost or maximize profit.
linear regression
used when the dependent variable is categorical, binary variable, like male/female, dead/alive, gas/electric etc.
logistic regression
data that is not random
measurement bias
A manager is analyzing a dataset that includes information on individual incomes. The manager knows that the dataset is fairly representative of the general population and includes several millionaires. Based on this dataset, which measure of central tendency best represents the middle of the distribution?
median
which two attributes indicate potential data quality issues when evaluating a set of nominal data?
missing data misspelled data
which factor predicts an outcome
multiple regression
A medical care provider determines the probability that a patient needs treatment for a broken bone, the probability that a patient needs treatment for a concussion, and the probability that a patient needs treatment for both a broken bone and a concussion. Which two rules should be used to find the probability that a patient needs treatment for a broken bone and a concussion? Choose 2 answers
multiplication intersection
probabilities of multiple events are multiplied together to determine the likelihood of all those events ocurring
multiplication principle
categorical 2 options, male/female, names of carers, # on jersey, yes/no
nominal data
United Motors indicates that gas mileage tests of one of their cars, the Starbird 300, under city driving conditions has a mean of 30 mph and a median of 29.9 mph. Which type of distribution would this testing represent?
normal distribution
places in order of quality 10 best cities gold, silver bronze
ordinal data
difference between 2 variables
paired T test
An organization is concerned about whether quality control standards are being met and develops a strategy to test quality control metrics. Which step does this represent in the Plan-Do-Check-Act cycle?
plan
ongoing monitoring, goals measured by results, non-profits
points of results based management RBM
uses past data to predict trends in the future
predictive analytics
makes use of current and future projected data to help direct decisions (optimization)
prescriptive analytics
all cases
prevalence
sum of P(A) and P(B) minus the intersection P(A)*P(B)
probability of a union
one event and another event happening together P(A)XP(B)
probability of an intersection
In what way does probability theory inform decision-making for managers?
quantifying risk
A company decides to auction excess inventory on an auction website. They have performed a regression analysis to identify how the length of the auction impacts the final price. Which statistic indicates the strength of the relationship between the length of auctions and final price?
r-squared
cancel themselves out over time, no correlation between errors
random error
has a true zero, can be + - * /, distance, age, stock price, income, amount of inventory, # repeat customers
ratio data
influence relationship between 2 factors
regression
car dealership wishes to forecast car sales based upon price discounts and television ads. What forecasting technique should the dealership use?
regression analysis
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?
rsquare
Which of Ishikawa's Seven Basic Tools of Quality is used to illustrate performance measurements over time?
run chart
An analyst used multiple linear regression to explore how Store A's sales (y) are predicted by Store A's advertising expenditure dollars (variable x1) and the advertising expenditure dollars of Store A's competitor (variable x2). The estimated regression is y = 532 + 80.5x1 — 35.6x2. Which scenario would be predicted if x1 is $1,000 and x2 is also $1,000?
sales of $45,432
shows potential relationships or correlations between two variables using dots - one variable does NOT cause the other
scatter diagram
A doctoral student is surveying chief executive officers (CEOs) to understand their relationships with their governing boards. The student determines the years of business experience for each CEO as well as their rating, on a 10-point scale, of satisfaction with the governing board. Which statistical approach should be used to display the data for analysis?
scatter plot
which graphical tool is used to illustrate a possible relationship or correlation between two variables?
scatterplot
A retail store notices a spike in turkey sales every November. Which time series pattern are turkey likely to exhibit.
seasonality
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?
simulation
attempts to emulate a real process through modeling
simulation
simulate real world, lots of trials to find out possible outcomes "what if"
simulation
specific question, type of data, analysis technique
solve the problem
A soft-drink manufacturer performs a control chart analysis and the results indicate that the soft-drink bottles are consistently under-filled by a large amount according to specifications. The system was evaluated three months prior and was determined to be stable and filling bottles within accepted limits. What is this consistent under-filling an example of?
special cause variation
A company is trying to increase its online sales revenue by improving its e-mail campaign for repeat customers as well as new customers. Which two variables would be used in determining a campaign to maximize revenue gain? Choose 2 answers
spending per purchase number of purchases per email
After evaluating manufacturing times for a particular product, a manager determines that the times are spread out across the distribution. The manager has been asked to determine how far, on average, the time is from the mean. Which statistic roughly measures the average distance of a data point from the mean of the distribution?
standard deviation
I wonder if? regression, ANOVA, T test
statistical analysis
does the results stand up to statistical scrutiny
statistical validity
not due to chance, correcting takes time
systematic errors
what does it mean when an individual data point has a z-score of -2
the data point is two standard deviations less than the mean of the data set
is time a significant factor in predicting any influences. time is the independent variable
time series analysis
A doctoral student is surveying chief executive officers (CEOs) to understand their relationships with their governing boards. The student receives responses to a survey with ten questions that rates the respective relationships. Why would the student measure the standard deviation of responses?
to measure the spread of the data
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?
trend
A researcher concludes that bananas create healthy children because the researcher's notes indicate that children who eat a banana every day are healthy What misuse of statistics would this study be an example of if these children also eat a balanced diet and exercise daily?
unfounded assumptions
when an assumption is made that has not been proven
unfounded assumptions
measure of how spread out data are about the mean
variance
1
what is the sum of an event happening and its complement
The average test score of students taking an exam was 70% with a standard deviation of 8.5%. Which tool should be used to compare a student's score to the group average?
z-score
