Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
Solution Manual for Introduction to Business Analytics,
1st Edition
By Vernon Richardson and Marcia Watson
Verified Chapter's 1 - 12 | Complete
, Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
TABLE OF CONTENTS
Chapter 1: Specify the Question: Using Business Analytics to Address Business Questions
Chapter 2: Obtain the Data: An Introduction to Business Data Sources
Chapter 3: Analyze the Data: Basic Statistics and Tools Required in Business Analytics
Chapter 4: Analyze the Data: Exploratory Business Analytics (Descriptive Analytics and Diagnostic Analytics)
Chapter 5: Analyze the Data: Confirmatory Business Analytics (Predictive Analytics and Prescriptive Analytics)
Chapter 6: Report the Results: Using Data Visualization
Chapter 7: Marketing Analytics
Chapter 8: Accounting Analytics
Chapter 9: Financial Analytics
Chapter 10: Operations Analytics
Chapter 11: Advanced Business Analytics
Chapter 12: Using the SOAR Analytics Model to Put It All Together: Three Capstone Projects
Chapter 1 End-of-Chapter Assignment Solutions
Multiple Choice Questions
1. (LO 1.1) A coordinated, standardized set of activities conducted by both people and equipment to accomplish a
specific business task is called .
a. business processes
b. business analysis
c. business procedure
d. business value
2. (LO 1.2) According to the information value chain, data combined with context is
a. Information.
b. Knowledge.
c. Insight.
d. Value.
3. (LO 1.5) Which phase of the SOAR analytics model addresses the proper way to communicate results to the
decision maker?
a. Specify the question
b. Obtain the data
, Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
c. Analyze the data
d. Report the results
4. (LO 1.5) Which phase of the SOAR analytics model involves finding the most appropriate data needed to address
the business question?
a. Specify the question
b. Obtain the data
c. Analyze the data
d. Report the results
5. (LO b1.5) bWhich bquestions bseek binformation babout bTesla’s bsales bin bthe bnext bquarter?
a. What bhappened? bWhat bis bhappening?
b. Why bdid bit bhappen? bWhat bare bthe bcauses bof bpast bresults?
c. Will bit bhappen bin bthe bfuture? bWhat bis bthe bprobability bsomething bwill bhappen? bCan bwe
bforecast bwhatbwill bhappen?
d. What bshould bwe bdo, bbased bon bwhat bwe bexpect bwill bhappen? bHow bdo bwe boptimize bour
bperformance bbasedbon bpotential bconstraints?
6. (LO b1.5) bWhich bquestions bseek binformation bon bthe brouting bof bproducts bfrom bQueretaro, bMexico
bto bChicago,bUnited bStates bin bthe blast bquarter?
a. What bhappened? bWhat bis bhappening?
b. Why bdid bit bhappen? bWhat bare bthe bcauses bof bpast bresults?
c. Will bit bhappen bin bthe bfuture? bWhat bis bthe bprobability bsomething bwill bhappen? bCan bwe
bforecast bwhat bwillbhappen?
d. What bshould bwe bdo, bbased bon bwhat bwe bexpect bwill bhappen? bHow bdo bwe boptimize bour
bperformance bbasedbon bpotential bconstraints?
7. (LO b1.5) bWhich bquestions bask bwhy bnet bincome bis bincreasing bwhen brevenues bare bdecreasing,
bcounter btobexpectations?
a. What bhappened? bWhat bis bhappening?
b. Why bdid bit bhappen? bWhat bare bthe bcauses bof bpast bresults?
c. Will bit bhappen bin bthe bfuture? bWhat bis bthe bprobability bsomething bwill bhappen? bCan bwe
bforecast bwhat bwillbhappen?
d. What bshould bwe bdo, bbased bon bwhat bwe bexpect bwill bhappen? bHow bdo bwe boptimize bour
bperformance bbasedbon bpotential bconstraints?
8. (LO b1.5) bWhich bquestions bhelp bmanagers bunderstand bhow bto borganize bfuture bshipments bbased
bon bexpectedbdemand?
a. What bhappened? bWhat bis bhappening?
b. Why bdid bit bhappen? bWhat bare bthe bcauses bof bpast bresults?
c. Will bit bhappen bin bthe bfuture? bWhat bis bthe bprobability bsomething bwill bhappen? bCan bwe
bforecast bwhat bwillbhappen?
d. What bshould bwe bdo, bbased bon bwhat bwe bexpect bwill bhappen? bHow bdo bwe boptimize bour
bperformancebbased bon bpotential bconstraints?
9. (LO b1.5) bWhich bterm brefers bto bthe bcombined baccuracy, bvalidity, band bconsistency bof bdata bstored
band bused boverbtime?
a. Data bintegrity
b. Data boverload
c. Data bvalue
d. Information bvalue
10. (LO b1.3) bA bspecialist bwho bknows bhow bto bwork bwith, bmanipulate, band bstatistically btest bdata bis ba
a. decision bmaker.
, Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
b. data bscientist.
c. data banalyst.
d. decision bscientist.
11. (LO b1.4) bWhich btype bof banalysts bpredicts bthe bamount bof bmoney bthat ba bcompany bwill breceive bfrom bits
bcustomers btobhelp bmanagement bevaluate bfuture binvestments bbased bon bexpected binvestment
bperformance, bsuch bas binvestments bin bequipment bor bemployee btraining?
a. Marketing banalyst
b. Operations banalyst
c. Financial banalyst
d. Accounting banalyst
12. (LO b1.4) bWhich btype bof banalyst baddresses bquestions bregarding btax band bauditing?
a. Marketing banalyst
b. Operations banalyst
c. Financial banalyst
d. Accounting banalyst
13. (LO b1.5) bSuppose ba bcompany bhas btimely bproduct breviews bthat bare bavailable bwhen bneeded, bbut bthe
breviews barebbiased. bThese bproduct breviews bare bwhich btype bof bdata?
a. Reliable
b. Relevant
c. Curated
d. Consistent
© bMcGraw bHill bLLC. bAll brights breserved. bNo breproduction bor bdistribution bwithout bthe bprior bwritten bconsent bof bMcGraw bHill
bLLC.
14. (LO b1.6) bWhich bcommon bvisualization btype bshows btrends bin bvalues bover btime?
a. Line bgraph
b. Scatterplot
c. Pie bchart
d. Bar bchart
15. (LO b1.6) bWhich bcommon bvisualization btype bshows bthe bcomposition bof bvalues bover btime?
a. Line bgraph
b. Scatterplot
c. Pie bchart
d. Bar bchart
Discussion bQuestions
1. (LO b1.1) bGive bfive bexamples bof bbusiness bprocesses bat bTesla. bHow bdo bthey bcreate bbusiness bvalue bfor
bTesla band bitsbshareholders?
SuggestedbSolution:
Answers bwill bvary,
1. Tesla bprocures bautomobile bparts bfrom bauto bsuppliers b– Because bof bTesla’s bunique bstyling, bgetting
bqualitybparts bfrom bits bsuppliers bon ba btimely bbasis bwill bsupport bits bmanufacturing bbusiness.
2. Tesla bmanufactures bbatteries bfor bits belectric bvehicle bat bits bdesired bspecifications b– bThe bquantity
band bqualitybof bits bbatteries bare bof bcritical bimportance bto bTesla.
3. Accepting band bprocessing bpreorders bfrom bits bcustomers b– bTesla breceives bsome bindication bof bthe
bdemand bforbeach bof bits bproducts, bthat bhelps bwith bplanning.
4. Tesla bmarkets bits bproducts b– bTesla bworks bto bget bTesla bproducts bin bthe bfront bof bmind bfor bits
4
Solution Manual for Introduction to Business Analytics,
1st Edition
By Vernon Richardson and Marcia Watson
Verified Chapter's 1 - 12 | Complete
, Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
TABLE OF CONTENTS
Chapter 1: Specify the Question: Using Business Analytics to Address Business Questions
Chapter 2: Obtain the Data: An Introduction to Business Data Sources
Chapter 3: Analyze the Data: Basic Statistics and Tools Required in Business Analytics
Chapter 4: Analyze the Data: Exploratory Business Analytics (Descriptive Analytics and Diagnostic Analytics)
Chapter 5: Analyze the Data: Confirmatory Business Analytics (Predictive Analytics and Prescriptive Analytics)
Chapter 6: Report the Results: Using Data Visualization
Chapter 7: Marketing Analytics
Chapter 8: Accounting Analytics
Chapter 9: Financial Analytics
Chapter 10: Operations Analytics
Chapter 11: Advanced Business Analytics
Chapter 12: Using the SOAR Analytics Model to Put It All Together: Three Capstone Projects
Chapter 1 End-of-Chapter Assignment Solutions
Multiple Choice Questions
1. (LO 1.1) A coordinated, standardized set of activities conducted by both people and equipment to accomplish a
specific business task is called .
a. business processes
b. business analysis
c. business procedure
d. business value
2. (LO 1.2) According to the information value chain, data combined with context is
a. Information.
b. Knowledge.
c. Insight.
d. Value.
3. (LO 1.5) Which phase of the SOAR analytics model addresses the proper way to communicate results to the
decision maker?
a. Specify the question
b. Obtain the data
, Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
c. Analyze the data
d. Report the results
4. (LO 1.5) Which phase of the SOAR analytics model involves finding the most appropriate data needed to address
the business question?
a. Specify the question
b. Obtain the data
c. Analyze the data
d. Report the results
5. (LO b1.5) bWhich bquestions bseek binformation babout bTesla’s bsales bin bthe bnext bquarter?
a. What bhappened? bWhat bis bhappening?
b. Why bdid bit bhappen? bWhat bare bthe bcauses bof bpast bresults?
c. Will bit bhappen bin bthe bfuture? bWhat bis bthe bprobability bsomething bwill bhappen? bCan bwe
bforecast bwhatbwill bhappen?
d. What bshould bwe bdo, bbased bon bwhat bwe bexpect bwill bhappen? bHow bdo bwe boptimize bour
bperformance bbasedbon bpotential bconstraints?
6. (LO b1.5) bWhich bquestions bseek binformation bon bthe brouting bof bproducts bfrom bQueretaro, bMexico
bto bChicago,bUnited bStates bin bthe blast bquarter?
a. What bhappened? bWhat bis bhappening?
b. Why bdid bit bhappen? bWhat bare bthe bcauses bof bpast bresults?
c. Will bit bhappen bin bthe bfuture? bWhat bis bthe bprobability bsomething bwill bhappen? bCan bwe
bforecast bwhat bwillbhappen?
d. What bshould bwe bdo, bbased bon bwhat bwe bexpect bwill bhappen? bHow bdo bwe boptimize bour
bperformance bbasedbon bpotential bconstraints?
7. (LO b1.5) bWhich bquestions bask bwhy bnet bincome bis bincreasing bwhen brevenues bare bdecreasing,
bcounter btobexpectations?
a. What bhappened? bWhat bis bhappening?
b. Why bdid bit bhappen? bWhat bare bthe bcauses bof bpast bresults?
c. Will bit bhappen bin bthe bfuture? bWhat bis bthe bprobability bsomething bwill bhappen? bCan bwe
bforecast bwhat bwillbhappen?
d. What bshould bwe bdo, bbased bon bwhat bwe bexpect bwill bhappen? bHow bdo bwe boptimize bour
bperformance bbasedbon bpotential bconstraints?
8. (LO b1.5) bWhich bquestions bhelp bmanagers bunderstand bhow bto borganize bfuture bshipments bbased
bon bexpectedbdemand?
a. What bhappened? bWhat bis bhappening?
b. Why bdid bit bhappen? bWhat bare bthe bcauses bof bpast bresults?
c. Will bit bhappen bin bthe bfuture? bWhat bis bthe bprobability bsomething bwill bhappen? bCan bwe
bforecast bwhat bwillbhappen?
d. What bshould bwe bdo, bbased bon bwhat bwe bexpect bwill bhappen? bHow bdo bwe boptimize bour
bperformancebbased bon bpotential bconstraints?
9. (LO b1.5) bWhich bterm brefers bto bthe bcombined baccuracy, bvalidity, band bconsistency bof bdata bstored
band bused boverbtime?
a. Data bintegrity
b. Data boverload
c. Data bvalue
d. Information bvalue
10. (LO b1.3) bA bspecialist bwho bknows bhow bto bwork bwith, bmanipulate, band bstatistically btest bdata bis ba
a. decision bmaker.
, Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
b. data bscientist.
c. data banalyst.
d. decision bscientist.
11. (LO b1.4) bWhich btype bof banalysts bpredicts bthe bamount bof bmoney bthat ba bcompany bwill breceive bfrom bits
bcustomers btobhelp bmanagement bevaluate bfuture binvestments bbased bon bexpected binvestment
bperformance, bsuch bas binvestments bin bequipment bor bemployee btraining?
a. Marketing banalyst
b. Operations banalyst
c. Financial banalyst
d. Accounting banalyst
12. (LO b1.4) bWhich btype bof banalyst baddresses bquestions bregarding btax band bauditing?
a. Marketing banalyst
b. Operations banalyst
c. Financial banalyst
d. Accounting banalyst
13. (LO b1.5) bSuppose ba bcompany bhas btimely bproduct breviews bthat bare bavailable bwhen bneeded, bbut bthe
breviews barebbiased. bThese bproduct breviews bare bwhich btype bof bdata?
a. Reliable
b. Relevant
c. Curated
d. Consistent
© bMcGraw bHill bLLC. bAll brights breserved. bNo breproduction bor bdistribution bwithout bthe bprior bwritten bconsent bof bMcGraw bHill
bLLC.
14. (LO b1.6) bWhich bcommon bvisualization btype bshows btrends bin bvalues bover btime?
a. Line bgraph
b. Scatterplot
c. Pie bchart
d. Bar bchart
15. (LO b1.6) bWhich bcommon bvisualization btype bshows bthe bcomposition bof bvalues bover btime?
a. Line bgraph
b. Scatterplot
c. Pie bchart
d. Bar bchart
Discussion bQuestions
1. (LO b1.1) bGive bfive bexamples bof bbusiness bprocesses bat bTesla. bHow bdo bthey bcreate bbusiness bvalue bfor
bTesla band bitsbshareholders?
SuggestedbSolution:
Answers bwill bvary,
1. Tesla bprocures bautomobile bparts bfrom bauto bsuppliers b– Because bof bTesla’s bunique bstyling, bgetting
bqualitybparts bfrom bits bsuppliers bon ba btimely bbasis bwill bsupport bits bmanufacturing bbusiness.
2. Tesla bmanufactures bbatteries bfor bits belectric bvehicle bat bits bdesired bspecifications b– bThe bquantity
band bqualitybof bits bbatteries bare bof bcritical bimportance bto bTesla.
3. Accepting band bprocessing bpreorders bfrom bits bcustomers b– bTesla breceives bsome bindication bof bthe
bdemand bforbeach bof bits bproducts, bthat bhelps bwith bplanning.
4. Tesla bmarkets bits bproducts b– bTesla bworks bto bget bTesla bproducts bin bthe bfront bof bmind bfor bits
4
