The Decisions Concerning An Organization's Goals And Future Plans

Chapter 1 Strategic The decisions concerning an organization's goals and future plans. Tactical decisions are concerned with How the organization should achieve its goal. Data dashboards are type of descriptive Analytics predictive analytics are techniques that use models, constructed from past data, to predict the future or to ascertain the impact of one variable on another. Which one of the following is used in predictive analytics? Linear regression. 6 prescriptive analytics use techniques that take input data and yield a best course of action. 7. Prescriptive analytical techniques helps us arrive at the best decision? 8. When a decision maker is faced with several alternatives and an uncertain set of future events, s/he uses _decision Analysis____ to develop an optimal strategy. Which of the following best exemplifies big data? Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and browsing the Web on a daily basis predictive and prescriptive analytics are Advanced analytics In the financial sector, which of the following are used to construct financial instruments such as derivatives? Predictive models Which of the following 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 a thing A light bulb manufacturer uses descriptive analytics to do which of the following? Presents supply chains to managers virtually. Chapter 3 Data-ink is the ink used in a table or chart that _____. is necessary to convey the meaning of the data to the audience Deleting the grid lines in a table and the horizontal lines in a chart ______. increases the data-ink ratio In many cases, white space in a chart can improve which of the following? Increase readability. Tables should be used instead of charts when _____. the values being displayed have different units or very different magnitudes 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 dataink ratio? It reduces the data-ink ratio. Which of the following is a graphical presentation of the relationship between two quantitative variables? Scatter Chart which of the following are visual methods of displaying data? Charts Which of the following is a line that provides an approximation of the relationship between the variables? Trendline A line chart that has no axes but is used to provide information on overall trends for time series data is called which of the following? A sparkline The charts that are helpful in making comparisons between categorical variables are which of the following? Bar Charts and Column charts Of the charts used to compare categorical data, making visual comparisons between categorical variables may be difficult in which of the following? Pie Charts A chart that is recommended as an alternative to a pie chart is which of the following? Bar Chart In order to visualize three variables in a two-dimensional graph, we use which of the following? Bubble Charts A two-dimensional graph representing the data using different shades of color to indicate magnitude is called which of the following? Heat Map An effective display of trend and magnitude is achieved by using a combination of which of the following? Heat map and Sparklines An alternative for a stacked column chart when comparing more than a couple of quantitative variables in each category is which of the following? a clustered column chart To summarize and analyze data with both a crosstabulation and charting, Excel typically pairs which of the following? PivotCharts and PivotTables A data visualization tool that updates in real time and gives multiple outputs is called which of the following? Data Dashboards In a business, the values indicating the business's current operating characteristics, such as its financial position, the inventory on hand, and customer service metrics, are typically known as which of the following? Key Performance Indicators Chapter 7 The company identified in Chapter 7, Analytics in Action, is Walmart The Analytics in Action example in Chapter 7 concerned managing packaging of orders. Chapter 7 focuses on linear regression A regression analysis involving one independent variable and one dependent variable is referred to as which of the following? a simple linear regression The population parameters that describe the y-intercept and slope of the line relating y and x, respectively, are which of the following? �0 and �1 In the simple linear regression model, which of the following accounts for the variability in the dependent variable that cannot be explained by the linear relationship between the variables? Error term. In a linear regression model, the variable that is being predicted or explained is known as which of the following? It is denoted by y and is often referred to as the response variable. dependent variable In a linear regression model, the variable (or variables) used for predicting or explaining values of the response variable are known as which of the following? It(they) is(are) denoted by x. Independent Variable The graph of the simple linear regression equation is which of the following? A straight line When the mean value of the dependent variable is independent of variation in the independent variable, the slope of the regression line is which of the following? Zero the least squares method is a procedure for using sample data to find the estimated regression equation A scatter Chart is used to visualize sample data graphically and to draw preliminary conclusions about the possible relationship between the variables. A residual is the difference between the observed value of the dependent variable and the value predicted using the estimated regression equation. Experimental Region is the range of values of the independent variables in the data used to estimate the regression model. Prediction of the value of the dependent variable outside the experimental region is called Extrapolation the sum of squares due to error (SSE) is a measure of the error that results from using the estimated regression equation to predict the values of the dependent variable in the sample. the squared differences between actual and predicted y-values the least squares regression line minimizes the sum. coefficient of determination 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. Math What would be the value of the sum of squares due to regression (SSR) if the total sum of squares (SST) is 26.32 and the sum of squares due to error (SSE) is 7.89? SST =SSR + SSE 26.32= +7.89 =26.32 – 7.89 = 18.43 What would be the coefficient of determination if the total sum of squares (SST) is 23.28 and the sum of squares due to regression (SSR) is 11.04? Coefficient of determination = SSR/SST 11.04/23.28 = 0.47 r2=SSR/SST Regression analysis involving one dependent variable and more than one independent variable is known as Multiple Regression 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 process of making a conjecture about the value of a population parameter, collecting sample data that can be used to assess this conjecture, measuring the strength of the evidence against the conjecture that is provided by the sample, and using these results to draw a conclusion about the conjecture is known as Hypothesis Testing Confidence Interval Estimation refers to the use of sample data to calculate a range of values that is believed to include the value of the population parameter at some level of confidence. the confidence level: is an indication of how frequently interval estimates based on samples of the same size taken from the same population using identical sampling techniques will contain the true value of the parameter we are estimating. Multicollinearity refers to the degree of correlation among independent variables in a regression model an F-test is used to test the hypothesis that the values of the regression parameters �1, �2, … �q are all zero. a dummy variable A variable used to model the effect of categorical independent variables in a regression model which generally takes only the value zero or one. 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). Quadratic 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. 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 Knot Interaction 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. Fitting a model too closely to sample data, resulting in a model that does not accurately reflect the population is termed as Overfitting Assessing the regression model on data other than the sample data that was used to generate the model is known as Cross validation. Training Set is the data set used to build the candidate models. Validation set refers to the data set used to compare model forecasts and ultimately pick a model for predicting values of the dependent variable Prediction Interval is an interval estimate of an individual y-value, given values of the independent variables