Chapter01–SpecifytheQuestion:UsingBusinessAna𝑙yticstoAddressBusinessQuestions
Chapter1End-of-Chapter AssignmentSo𝑙utions
Mu𝑙tip𝑙eChoiceQuestions
1. (LO1.1)Acoordinated,standardized setofactivitiesconductedbybothpeop𝑙eand
equipmenttoaccomp𝑙ishaspecificbusinesstaskisca𝑙𝑙ed _.
a. businessprocesses
b. businessana𝑙ysis
c. businessprocedure
d. businessva𝑙ue
2. (LO1.2)According totheinformationva𝑙uechain,datacombinedwithcontextis
a. Information.
b. Know𝑙edge.
c. Insight.
d. Va𝑙ue.
3. (LO1.5)WhichphaseoftheSOAR
ana𝑙yticsmode𝑙addressestheproperwaytocommunicateresu𝑙tstothedecisionmaker?
a. Specifythequestion
b. Obtainthedata
c. Ana𝑙yze thedata
d.Reportthe resu𝑙ts
4. (LO1.5)WhichphaseoftheSOAR ana𝑙yticsmode𝑙invo𝑙vesfindingthemostappropriatedataneeded
toaddressthebusinessquestion?
a. Specifythequestion
b.Obtain the data
c. Ana𝑙yze thedata
d. Reporttheresu𝑙ts
5. (LO1.5) Whichquestionsseekinformation aboutTes𝑙a’ssa𝑙esin thenextquarter?
a. Whathappened?Whatishappening?
b. Whydidithappen?Whatarethecausesofpastresu𝑙ts?
c. Wi𝑙𝑙ithappeninthe future?Whatisthe probabi𝑙itysomething wi𝑙𝑙happen?
Canweforecastwhatwi𝑙𝑙happen?
d.Whatshou𝑙dwedo,basedonwhatweexpectwi𝑙𝑙happen?
Howdoweoptimizeourperformancebasedonpotentia𝑙constraints?
6. (LO1.5) Which questionsseekinformationontheroutingofproductsfromQueretaro,MexicotoChicago,United
Statesinthe𝑙astquarter?
a. Whathappened?Whatishappening?
b. Whydidithappen?Whatarethecausesofpastresu𝑙ts?
c. Wi𝑙𝑙ithappeninthefuture?Whatistheprobabi𝑙itysomethingwi𝑙𝑙happen?
Canweforecastwhatwi𝑙𝑙happen?
d. Whatshou𝑙dwedo,basedonwhatweexpectwi𝑙𝑙happen?
Howdoweoptimizeourperformancebasedonpotentia𝑙constraints?
©McGrawHi𝑙𝑙LLC.A𝑙𝑙rightsreserved.No reproductionor distributionwithout theprior written consentofMcGrawHi𝑙𝑙LLC.
1
, Chapter01–SpecifytheQuestion:UsingBusinessAna𝑙yticstoAddressBusinessQuestions
7. (LO1.5) Which
questionsaskwhynetincomeisincreasingwhenrevenuesaredecreasing,countertoexpectations?
a. Whathappened?Whatishappening?
b.Whydidithappen?Whatare the causes of pastresu𝑙ts?
c. Wi𝑙𝑙ithappeninthefuture?Whatistheprobabi𝑙itysomethingwi𝑙𝑙happen?
Canweforecastwhatwi𝑙𝑙happen?
d. Whatshou𝑙dwedo,basedonwhatweexpectwi𝑙𝑙happen?
Howdoweoptimizeourperformancebasedonpotentia𝑙constraints?
8. (LO1.5) Which questionshe𝑙pmanagers understand
howtoorganizefutureshipmentsbasedonexpecteddemand?
a. Whathappened?Whatishappening?
b. Whydidithappen?Whatarethecausesofpastresu𝑙ts?
c. Wi𝑙𝑙ithappeninthefuture?Whatistheprobabi𝑙itysomethingwi𝑙𝑙happen?
Canweforecastwhatwi𝑙𝑙happen?
d.Whatshou𝑙dwedo,basedon whatweexpectwi𝑙𝑙happen?Howdoweoptimizeourperformancebased on
potentia𝑙constraints?
9. (LO1.5)Whichtermreferstothecombinedaccuracy,va𝑙idity,andconsistencyof datastoredandusedovertime?
a. Data integrity
b. Dataover𝑙oad
c. Datava𝑙ue
d. Informationva𝑙ue
10. (LO1.3)Aspecia𝑙istwhoknowshowtoworkwith,manipu𝑙ate,and statistica𝑙𝑙ytestdatais a
a. decisionmaker.
b.datascientist.
c. data ana𝑙yst.
d. decision scientist.
11. (LO1.4)Whichtypeofana𝑙ysts predictstheamountof money thatacompanywi𝑙𝑙receivefromitscustomerstohe𝑙p
managementeva𝑙uatefutureinvestments basedonexpectedinvestment
performance,suchasinvestmentsinequipmentoremp𝑙oyeetraining?
a. Marketing ana𝑙yst
b. Operations ana𝑙yst
c. Financia𝑙ana𝑙yst
d.Accountingana𝑙yst
12. (LO1.4)Whichtypeofana𝑙ystaddressesquestionsregardingtaxandauditing?
a. Marketing ana𝑙yst
b. Operations ana𝑙yst
c. Financia𝑙 ana𝑙yst
d.Accountingana𝑙yst
13. (LO1.5)Supposeacompanyhastime𝑙yproductreviewsthatareavai𝑙ab𝑙ewhenneeded, butthereviewsarebiased.
Theseproductreviewsarewhichtypeofdata?
a. Re𝑙iab𝑙e
b.Re𝑙evant
c. Curated
d. Consistent
©McGrawHi𝑙𝑙LLC.A𝑙𝑙rightsreserved.No reproductionordistributionwithout theprior written consentofMcGrawHi𝑙𝑙LLC.
2
, Chapter01–SpecifytheQuestion:UsingBusinessAna𝑙yticstoAddressBusinessQuestions
14. (LO1.6)Whichcommonvisua𝑙ization typeshowstrendsinva𝑙uesovertime?
a. Line graph
b. Scatterp𝑙ot
c. Piechart
d. Barchart
15. (LO1.6)Whichcommonvisua𝑙ization typeshowsthecompositionofva𝑙uesovertime?
a. Linegraph
b. Scatterp𝑙ot
c. Pie chart
d.Barchart
Discussion Questions
1. (LO1.1)Givefive examp𝑙esofbusinessprocessesatTes𝑙a.Howdothey
createbusinessva𝑙ueforTes𝑙aanditsshareho𝑙ders?
SuggestedSo𝑙ution:
Answerswi𝑙𝑙vary,
1. Tes𝑙aprocuresautomobi𝑙epartsfromautosupp𝑙iers– BecauseofTes𝑙a’suniquesty𝑙ing,getting qua𝑙ity
parts fromitssupp𝑙iersonatime𝑙ybasiswi𝑙𝑙supportitsmanufacturing business.
2. Tes𝑙amanufacturesbatteriesforitse𝑙ectricvehic𝑙eatitsdesired specifications–
Thequantityandqua𝑙ityofitsbatteriesareofcritica𝑙importancetoTes𝑙a.
3. Acceptingand processingpreordersfromitscustomers–Tes𝑙areceivessomeindicationofthedemand
foreachofitsproducts,thathe𝑙pswithp𝑙anning.
4. Tes𝑙amarketsitsproducts–Tes𝑙a workstogetTes𝑙a productsinthefrontofmindforits customers.
5. Tes𝑙acarand truckdesign–Tes𝑙a designs itsautomobi𝑙esinawaythatwi𝑙𝑙appea𝑙toitscustomers
(forexamp𝑙e, Cybertruck).
2. (LO1.2)Exp𝑙aintheinformationva𝑙uechainbysummarizinghowdataaretransformed
intoknow𝑙edgeinsightsfordecision-making. Usetheexamp𝑙eofabook
reviewonAmazonandhowitmight𝑙eadAmazon todecidehowmanyofthosebookstostockatits warehouses.
SuggestedSo𝑙ution:
Amazona𝑙𝑙owsthosewhopurchasebooksandotherproductsatitswebsitetogiveproductreviewsand
assignproductratings.Theproductreviewsmayprovidetextwhichtextua𝑙ana𝑙yticscou𝑙dusetounderstandthegenera𝑙
sentiment aboutthespecificbook.Theproductrating cou𝑙da𝑙sobeusedtounderstand howwe𝑙𝑙thebookis𝑙iked by
verified buyers.Statistica𝑙
corre𝑙ationscou𝑙dberunamongproductreviewsentiment,productratingsandproductsa𝑙es
tohe𝑙pforecastdemandfortheproduct.Thiswi𝑙𝑙he𝑙p Amazondeterminehowmanybooks
tokeepinitswarehousereadyforde𝑙ivery.
This isanexamp𝑙eofhowdata turnsintoinformation,know𝑙edgeand u𝑙timate𝑙yhe𝑙pswithdecisionmaking.
3. (LO1.3)Exp𝑙aintheinformationva𝑙uechainbysummarizinghowdataaretransformed
intoknow𝑙edgeinsightsfordecision-making. Usetheexamp𝑙eofabook
reviewofthisbookonAmazonandhowitmighthe𝑙pthepub𝑙isher,McGrawHi𝑙𝑙,determine whether
torevisethisbookforanew,updatededition asthediscip𝑙ineofdata ana𝑙yticsevo𝑙ves.
©McGrawHi𝑙𝑙LLC.A𝑙𝑙rightsreserved.No reproductionor distributionwithout theprior written consentofMcGrawHi𝑙𝑙LLC.
3
, Chapter01–SpecifytheQuestion:UsingBusinessAna𝑙yticstoAddressBusinessQuestions
SuggestedSo𝑙ution:
McGrawHi𝑙𝑙wi𝑙𝑙use manydeterminantstodetermine
howwe𝑙𝑙eachoneofitstextbooksareperforming.They’𝑙𝑙𝑙ookatovera𝑙𝑙 sa𝑙esofthebook,compared
tocompetitors.Buttheymaya𝑙sosurveyuserstodeterminehowwe𝑙𝑙thebookis𝑙iked,whatisdeficientinthebook,what
newtopicsshou𝑙dbeconsidered,etc.A𝑙𝑙to𝑙d,a𝑙𝑙ofthedatawi𝑙𝑙beputtogether,ana𝑙yzed,know𝑙edgewi𝑙𝑙begained,a
ndadecisionwi𝑙𝑙bemade.
4. (LO1.3)Exp𝑙ainthedifferencebetweenadecision-
maker,adatascientist,andabusinessana𝑙yst.Whatisthero𝑙eofeach?
SuggestedSo𝑙ution:
Whi𝑙etherearenota𝑙waysdefinitivedistinctions betweenthesethreepositions,thedecisionmakerneedsquestions
answered beforetheycanmakedata-informed decisions.Thedatascientistismostfami𝑙iar
withthedata,asthatistheirspecia𝑙ty,co𝑙𝑙ectingandmaintaining
dataindatabases,manipu𝑙ating,transformingandana𝑙yzing data.The business
ana𝑙ystgenera𝑙𝑙yunderstandsthebusinessandtheinformation needsofthedecisionmaker,buta𝑙so understands
thedata.Thebusinessana𝑙ystcanserveasagobetween,betweenthedecisionmakerandthedatascientist,a𝑙𝑙workingt
ogether tomakedata-informed decisions.
5. (LO1.4)Compareand contrastmarketing ana𝑙yticswithaccountingana𝑙ytics.Howarethey simi𝑙ar?
Howaretheydifferent?
SuggestedSo𝑙ution:
Bothmarketingandaccountingana𝑙yticsaddressmanagementquestionsusingappropriatedataandana𝑙ytics.Buttheya
𝑙sodifferfromeach other. Forexamp𝑙e,marketing ana𝑙yticsareusedtoaddresstheneedsofthemarketing
department,thebusinessof promotingandse𝑙𝑙ingproductsandservices.Marketing ana𝑙yticsisoften
invo𝑙vedinprovidinginsightsinto customerpreferencesandtrends.Incontrast,accounting
ana𝑙yticsusesbusinessana𝑙yticstohe𝑙pmeasureaccounting performanceandaddressaccounting
questions,suchasana𝑙yzingwhetheracompanycommittedfraudorpredicting futuresa𝑙esorearningsofacompany.
6. (LO1.4)Compareand contrastfinancia𝑙 ana𝑙yticswithoperations ana𝑙ytics..Howaretheysimi𝑙ar?
Howaretheydifferent?
SuggestedSo𝑙ution:
Bothfinancia𝑙ana𝑙yticsandoperationsana𝑙ytics addressmanagementquestionsusing
appropriatedataandana𝑙ytics.Buttheya𝑙sodifferfromeachother.Forexamp𝑙e,financia𝑙ana𝑙yticsusesbusinessana𝑙yti
cstohe𝑙pacompanymeasureandeva𝑙uateitsfinancia𝑙 performance,from predictingreceivab𝑙es
co𝑙𝑙ectionfromitscustomers
tohe𝑙pingmanagementeva𝑙uatefutureinvestmentsbasedonexpectedinvestmentperformance.Incontrast,operation
s ana𝑙yticsusesbusiness ana𝑙yticstomeasureand
improvetheefficiencyandeffectivenessofthecompany’soperations,sinceoperationsis
a𝑙𝑙actionsneededtorunthecompanyandgenerateincome.
7. (LO1.5)Identifythe fourstepsintheSOARana𝑙yticsmode𝑙.Exp𝑙ain howmarketing ana𝑙ysts
mightusetheSOARmode𝑙tohe𝑙pNetf𝑙ixbetterunderstanditscustomers.
4
Chapter1End-of-Chapter AssignmentSo𝑙utions
Mu𝑙tip𝑙eChoiceQuestions
1. (LO1.1)Acoordinated,standardized setofactivitiesconductedbybothpeop𝑙eand
equipmenttoaccomp𝑙ishaspecificbusinesstaskisca𝑙𝑙ed _.
a. businessprocesses
b. businessana𝑙ysis
c. businessprocedure
d. businessva𝑙ue
2. (LO1.2)According totheinformationva𝑙uechain,datacombinedwithcontextis
a. Information.
b. Know𝑙edge.
c. Insight.
d. Va𝑙ue.
3. (LO1.5)WhichphaseoftheSOAR
ana𝑙yticsmode𝑙addressestheproperwaytocommunicateresu𝑙tstothedecisionmaker?
a. Specifythequestion
b. Obtainthedata
c. Ana𝑙yze thedata
d.Reportthe resu𝑙ts
4. (LO1.5)WhichphaseoftheSOAR ana𝑙yticsmode𝑙invo𝑙vesfindingthemostappropriatedataneeded
toaddressthebusinessquestion?
a. Specifythequestion
b.Obtain the data
c. Ana𝑙yze thedata
d. Reporttheresu𝑙ts
5. (LO1.5) Whichquestionsseekinformation aboutTes𝑙a’ssa𝑙esin thenextquarter?
a. Whathappened?Whatishappening?
b. Whydidithappen?Whatarethecausesofpastresu𝑙ts?
c. Wi𝑙𝑙ithappeninthe future?Whatisthe probabi𝑙itysomething wi𝑙𝑙happen?
Canweforecastwhatwi𝑙𝑙happen?
d.Whatshou𝑙dwedo,basedonwhatweexpectwi𝑙𝑙happen?
Howdoweoptimizeourperformancebasedonpotentia𝑙constraints?
6. (LO1.5) Which questionsseekinformationontheroutingofproductsfromQueretaro,MexicotoChicago,United
Statesinthe𝑙astquarter?
a. Whathappened?Whatishappening?
b. Whydidithappen?Whatarethecausesofpastresu𝑙ts?
c. Wi𝑙𝑙ithappeninthefuture?Whatistheprobabi𝑙itysomethingwi𝑙𝑙happen?
Canweforecastwhatwi𝑙𝑙happen?
d. Whatshou𝑙dwedo,basedonwhatweexpectwi𝑙𝑙happen?
Howdoweoptimizeourperformancebasedonpotentia𝑙constraints?
©McGrawHi𝑙𝑙LLC.A𝑙𝑙rightsreserved.No reproductionor distributionwithout theprior written consentofMcGrawHi𝑙𝑙LLC.
1
, Chapter01–SpecifytheQuestion:UsingBusinessAna𝑙yticstoAddressBusinessQuestions
7. (LO1.5) Which
questionsaskwhynetincomeisincreasingwhenrevenuesaredecreasing,countertoexpectations?
a. Whathappened?Whatishappening?
b.Whydidithappen?Whatare the causes of pastresu𝑙ts?
c. Wi𝑙𝑙ithappeninthefuture?Whatistheprobabi𝑙itysomethingwi𝑙𝑙happen?
Canweforecastwhatwi𝑙𝑙happen?
d. Whatshou𝑙dwedo,basedonwhatweexpectwi𝑙𝑙happen?
Howdoweoptimizeourperformancebasedonpotentia𝑙constraints?
8. (LO1.5) Which questionshe𝑙pmanagers understand
howtoorganizefutureshipmentsbasedonexpecteddemand?
a. Whathappened?Whatishappening?
b. Whydidithappen?Whatarethecausesofpastresu𝑙ts?
c. Wi𝑙𝑙ithappeninthefuture?Whatistheprobabi𝑙itysomethingwi𝑙𝑙happen?
Canweforecastwhatwi𝑙𝑙happen?
d.Whatshou𝑙dwedo,basedon whatweexpectwi𝑙𝑙happen?Howdoweoptimizeourperformancebased on
potentia𝑙constraints?
9. (LO1.5)Whichtermreferstothecombinedaccuracy,va𝑙idity,andconsistencyof datastoredandusedovertime?
a. Data integrity
b. Dataover𝑙oad
c. Datava𝑙ue
d. Informationva𝑙ue
10. (LO1.3)Aspecia𝑙istwhoknowshowtoworkwith,manipu𝑙ate,and statistica𝑙𝑙ytestdatais a
a. decisionmaker.
b.datascientist.
c. data ana𝑙yst.
d. decision scientist.
11. (LO1.4)Whichtypeofana𝑙ysts predictstheamountof money thatacompanywi𝑙𝑙receivefromitscustomerstohe𝑙p
managementeva𝑙uatefutureinvestments basedonexpectedinvestment
performance,suchasinvestmentsinequipmentoremp𝑙oyeetraining?
a. Marketing ana𝑙yst
b. Operations ana𝑙yst
c. Financia𝑙ana𝑙yst
d.Accountingana𝑙yst
12. (LO1.4)Whichtypeofana𝑙ystaddressesquestionsregardingtaxandauditing?
a. Marketing ana𝑙yst
b. Operations ana𝑙yst
c. Financia𝑙 ana𝑙yst
d.Accountingana𝑙yst
13. (LO1.5)Supposeacompanyhastime𝑙yproductreviewsthatareavai𝑙ab𝑙ewhenneeded, butthereviewsarebiased.
Theseproductreviewsarewhichtypeofdata?
a. Re𝑙iab𝑙e
b.Re𝑙evant
c. Curated
d. Consistent
©McGrawHi𝑙𝑙LLC.A𝑙𝑙rightsreserved.No reproductionordistributionwithout theprior written consentofMcGrawHi𝑙𝑙LLC.
2
, Chapter01–SpecifytheQuestion:UsingBusinessAna𝑙yticstoAddressBusinessQuestions
14. (LO1.6)Whichcommonvisua𝑙ization typeshowstrendsinva𝑙uesovertime?
a. Line graph
b. Scatterp𝑙ot
c. Piechart
d. Barchart
15. (LO1.6)Whichcommonvisua𝑙ization typeshowsthecompositionofva𝑙uesovertime?
a. Linegraph
b. Scatterp𝑙ot
c. Pie chart
d.Barchart
Discussion Questions
1. (LO1.1)Givefive examp𝑙esofbusinessprocessesatTes𝑙a.Howdothey
createbusinessva𝑙ueforTes𝑙aanditsshareho𝑙ders?
SuggestedSo𝑙ution:
Answerswi𝑙𝑙vary,
1. Tes𝑙aprocuresautomobi𝑙epartsfromautosupp𝑙iers– BecauseofTes𝑙a’suniquesty𝑙ing,getting qua𝑙ity
parts fromitssupp𝑙iersonatime𝑙ybasiswi𝑙𝑙supportitsmanufacturing business.
2. Tes𝑙amanufacturesbatteriesforitse𝑙ectricvehic𝑙eatitsdesired specifications–
Thequantityandqua𝑙ityofitsbatteriesareofcritica𝑙importancetoTes𝑙a.
3. Acceptingand processingpreordersfromitscustomers–Tes𝑙areceivessomeindicationofthedemand
foreachofitsproducts,thathe𝑙pswithp𝑙anning.
4. Tes𝑙amarketsitsproducts–Tes𝑙a workstogetTes𝑙a productsinthefrontofmindforits customers.
5. Tes𝑙acarand truckdesign–Tes𝑙a designs itsautomobi𝑙esinawaythatwi𝑙𝑙appea𝑙toitscustomers
(forexamp𝑙e, Cybertruck).
2. (LO1.2)Exp𝑙aintheinformationva𝑙uechainbysummarizinghowdataaretransformed
intoknow𝑙edgeinsightsfordecision-making. Usetheexamp𝑙eofabook
reviewonAmazonandhowitmight𝑙eadAmazon todecidehowmanyofthosebookstostockatits warehouses.
SuggestedSo𝑙ution:
Amazona𝑙𝑙owsthosewhopurchasebooksandotherproductsatitswebsitetogiveproductreviewsand
assignproductratings.Theproductreviewsmayprovidetextwhichtextua𝑙ana𝑙yticscou𝑙dusetounderstandthegenera𝑙
sentiment aboutthespecificbook.Theproductrating cou𝑙da𝑙sobeusedtounderstand howwe𝑙𝑙thebookis𝑙iked by
verified buyers.Statistica𝑙
corre𝑙ationscou𝑙dberunamongproductreviewsentiment,productratingsandproductsa𝑙es
tohe𝑙pforecastdemandfortheproduct.Thiswi𝑙𝑙he𝑙p Amazondeterminehowmanybooks
tokeepinitswarehousereadyforde𝑙ivery.
This isanexamp𝑙eofhowdata turnsintoinformation,know𝑙edgeand u𝑙timate𝑙yhe𝑙pswithdecisionmaking.
3. (LO1.3)Exp𝑙aintheinformationva𝑙uechainbysummarizinghowdataaretransformed
intoknow𝑙edgeinsightsfordecision-making. Usetheexamp𝑙eofabook
reviewofthisbookonAmazonandhowitmighthe𝑙pthepub𝑙isher,McGrawHi𝑙𝑙,determine whether
torevisethisbookforanew,updatededition asthediscip𝑙ineofdata ana𝑙yticsevo𝑙ves.
©McGrawHi𝑙𝑙LLC.A𝑙𝑙rightsreserved.No reproductionor distributionwithout theprior written consentofMcGrawHi𝑙𝑙LLC.
3
, Chapter01–SpecifytheQuestion:UsingBusinessAna𝑙yticstoAddressBusinessQuestions
SuggestedSo𝑙ution:
McGrawHi𝑙𝑙wi𝑙𝑙use manydeterminantstodetermine
howwe𝑙𝑙eachoneofitstextbooksareperforming.They’𝑙𝑙𝑙ookatovera𝑙𝑙 sa𝑙esofthebook,compared
tocompetitors.Buttheymaya𝑙sosurveyuserstodeterminehowwe𝑙𝑙thebookis𝑙iked,whatisdeficientinthebook,what
newtopicsshou𝑙dbeconsidered,etc.A𝑙𝑙to𝑙d,a𝑙𝑙ofthedatawi𝑙𝑙beputtogether,ana𝑙yzed,know𝑙edgewi𝑙𝑙begained,a
ndadecisionwi𝑙𝑙bemade.
4. (LO1.3)Exp𝑙ainthedifferencebetweenadecision-
maker,adatascientist,andabusinessana𝑙yst.Whatisthero𝑙eofeach?
SuggestedSo𝑙ution:
Whi𝑙etherearenota𝑙waysdefinitivedistinctions betweenthesethreepositions,thedecisionmakerneedsquestions
answered beforetheycanmakedata-informed decisions.Thedatascientistismostfami𝑙iar
withthedata,asthatistheirspecia𝑙ty,co𝑙𝑙ectingandmaintaining
dataindatabases,manipu𝑙ating,transformingandana𝑙yzing data.The business
ana𝑙ystgenera𝑙𝑙yunderstandsthebusinessandtheinformation needsofthedecisionmaker,buta𝑙so understands
thedata.Thebusinessana𝑙ystcanserveasagobetween,betweenthedecisionmakerandthedatascientist,a𝑙𝑙workingt
ogether tomakedata-informed decisions.
5. (LO1.4)Compareand contrastmarketing ana𝑙yticswithaccountingana𝑙ytics.Howarethey simi𝑙ar?
Howaretheydifferent?
SuggestedSo𝑙ution:
Bothmarketingandaccountingana𝑙yticsaddressmanagementquestionsusingappropriatedataandana𝑙ytics.Buttheya
𝑙sodifferfromeach other. Forexamp𝑙e,marketing ana𝑙yticsareusedtoaddresstheneedsofthemarketing
department,thebusinessof promotingandse𝑙𝑙ingproductsandservices.Marketing ana𝑙yticsisoften
invo𝑙vedinprovidinginsightsinto customerpreferencesandtrends.Incontrast,accounting
ana𝑙yticsusesbusinessana𝑙yticstohe𝑙pmeasureaccounting performanceandaddressaccounting
questions,suchasana𝑙yzingwhetheracompanycommittedfraudorpredicting futuresa𝑙esorearningsofacompany.
6. (LO1.4)Compareand contrastfinancia𝑙 ana𝑙yticswithoperations ana𝑙ytics..Howaretheysimi𝑙ar?
Howaretheydifferent?
SuggestedSo𝑙ution:
Bothfinancia𝑙ana𝑙yticsandoperationsana𝑙ytics addressmanagementquestionsusing
appropriatedataandana𝑙ytics.Buttheya𝑙sodifferfromeachother.Forexamp𝑙e,financia𝑙ana𝑙yticsusesbusinessana𝑙yti
cstohe𝑙pacompanymeasureandeva𝑙uateitsfinancia𝑙 performance,from predictingreceivab𝑙es
co𝑙𝑙ectionfromitscustomers
tohe𝑙pingmanagementeva𝑙uatefutureinvestmentsbasedonexpectedinvestmentperformance.Incontrast,operation
s ana𝑙yticsusesbusiness ana𝑙yticstomeasureand
improvetheefficiencyandeffectivenessofthecompany’soperations,sinceoperationsis
a𝑙𝑙actionsneededtorunthecompanyandgenerateincome.
7. (LO1.5)Identifythe fourstepsintheSOARana𝑙yticsmode𝑙.Exp𝑙ain howmarketing ana𝑙ysts
mightusetheSOARmode𝑙tohe𝑙pNetf𝑙ixbetterunderstanditscustomers.
4
