GSU MGT 8150 – Business Modeling Final Exam Prep – Georgia State University, study guide
and practice material
Descriptive Analytics - correct answer ✔✔What happened/what is happening (don't make
inferences)
Predictive Analytics - correct answer ✔✔Based on the data we have, we'd like to know what will
happen and why it will happen (predictions/inferences)
Prescriptive Analytics - correct answer ✔✔Based on predictions/inferences...what should I do
about it and why? What solution should I prescribe?
(Main type of analytics used in MGT 8150)
What is a model? - correct answer ✔✔A representation of real objects or situations and can be
presented in various forms; it has to be close enough to the real system/real thing we're
modeling to provide better results than can be obtained by common sense
(Ex: maps)
Why use modeling? - correct answer ✔✔Different alternatives
If the real system/problem is complex (different features, attributes, etc.)
Helps save time and money
What are the three types of models? - correct answer ✔✔Iconic, Analog, and Mathematical
,Iconic Model - correct answer ✔✔Physical replicas of real objects (ex: Sophia the Robot
replicating humans)
Analog Model - correct answer ✔✔Physical in form but do not have same physical appearance
as the object being modeled (ex: dashboard lights in your car representing parts of your vehicle)
Mathematical Model - correct answer ✔✔Representations of a problem by a system of symbols
and mathematical relationships or expressions
Examples of Controllable Inputs - correct answer ✔✔Salaries, scheduling, and budget
Examples of Uncontrollable Inputs - correct answer ✔✔Inflation, external policy and regulation,
and employee circumstanes
Deterministic Model - correct answer ✔✔If all uncontrollable inputs to a model are known and
cannot vary (car wash functionality, answers choices on an exam)
Scholastic/Probabilistic Model - correct answer ✔✔If any uncontrollable inputs are uncertain to
the decision-maker (ex: traffic, weather)
Input - correct answer ✔✔Given values that are fixed (controllable case) or variable
(uncontrollable case)
Decision Variable - correct answer ✔✔Values that a decision maker has control over to affect
better solutions
Output - correct answer ✔✔Ultimate value of interest determined by inputs and decision
variables
, 5 Steps of the Modeling Process - correct answer ✔✔1. Define problem
2. Conceptualize system
3. Create/formulate the model
4. Validate and analyze
5. Transfer insights and ownership
CRISP - correct answer ✔✔Cross Industry Standard Process; used for data mining and similar to
Agile project management; not new, first used in the 90s; most used process across all sorts of
industries.
What are the 6 steps of CRISP? - correct answer ✔✔1. Business Understanding
2. Data Understanding
3. Data Preparation
4. Model Building
5. Testing and Evaluation
6. Deployment
Finish the following - A toy train layout designed to represent an actual railyard is an example of
a:
A. Iconic model
B. Mathematical model
C. Analog model
D. Digital Model - correct answer ✔✔A. Iconic model
True or False: Creating a model would be better to minimize risks and save time and money? -
correct answer ✔✔TRUE!
and practice material
Descriptive Analytics - correct answer ✔✔What happened/what is happening (don't make
inferences)
Predictive Analytics - correct answer ✔✔Based on the data we have, we'd like to know what will
happen and why it will happen (predictions/inferences)
Prescriptive Analytics - correct answer ✔✔Based on predictions/inferences...what should I do
about it and why? What solution should I prescribe?
(Main type of analytics used in MGT 8150)
What is a model? - correct answer ✔✔A representation of real objects or situations and can be
presented in various forms; it has to be close enough to the real system/real thing we're
modeling to provide better results than can be obtained by common sense
(Ex: maps)
Why use modeling? - correct answer ✔✔Different alternatives
If the real system/problem is complex (different features, attributes, etc.)
Helps save time and money
What are the three types of models? - correct answer ✔✔Iconic, Analog, and Mathematical
,Iconic Model - correct answer ✔✔Physical replicas of real objects (ex: Sophia the Robot
replicating humans)
Analog Model - correct answer ✔✔Physical in form but do not have same physical appearance
as the object being modeled (ex: dashboard lights in your car representing parts of your vehicle)
Mathematical Model - correct answer ✔✔Representations of a problem by a system of symbols
and mathematical relationships or expressions
Examples of Controllable Inputs - correct answer ✔✔Salaries, scheduling, and budget
Examples of Uncontrollable Inputs - correct answer ✔✔Inflation, external policy and regulation,
and employee circumstanes
Deterministic Model - correct answer ✔✔If all uncontrollable inputs to a model are known and
cannot vary (car wash functionality, answers choices on an exam)
Scholastic/Probabilistic Model - correct answer ✔✔If any uncontrollable inputs are uncertain to
the decision-maker (ex: traffic, weather)
Input - correct answer ✔✔Given values that are fixed (controllable case) or variable
(uncontrollable case)
Decision Variable - correct answer ✔✔Values that a decision maker has control over to affect
better solutions
Output - correct answer ✔✔Ultimate value of interest determined by inputs and decision
variables
, 5 Steps of the Modeling Process - correct answer ✔✔1. Define problem
2. Conceptualize system
3. Create/formulate the model
4. Validate and analyze
5. Transfer insights and ownership
CRISP - correct answer ✔✔Cross Industry Standard Process; used for data mining and similar to
Agile project management; not new, first used in the 90s; most used process across all sorts of
industries.
What are the 6 steps of CRISP? - correct answer ✔✔1. Business Understanding
2. Data Understanding
3. Data Preparation
4. Model Building
5. Testing and Evaluation
6. Deployment
Finish the following - A toy train layout designed to represent an actual railyard is an example of
a:
A. Iconic model
B. Mathematical model
C. Analog model
D. Digital Model - correct answer ✔✔A. Iconic model
True or False: Creating a model would be better to minimize risks and save time and money? -
correct answer ✔✔TRUE!
