DSI MGTS QUIZ 3: PRESCRIPTIVE
ANALYTICS CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◍ Training data.
Answer: Existing data that have been manually evaluated and assigned a
class, which assists in classifying the test data.
◍ Influences on How Well a Statistic Estimates its True Parameter:Worse,
More "Noisy" Estimate of the Parameter.
Answer: - happens when there is more error (SE is higher) - Likelier with
small n - leads to a wider CI
◍ (Population) Parameter.
Answer: A numeric value that is based on an entire population; usually
theoretical/ estimated from the corresponding sample statistic
◍ Regression analysis typically involves the following steps except:A)
Identify the variables that might predict an outcome.B) Identify the
parameters of the model.C) Set boundaries or thresholds.D) Determine the
functional form of the relationship..
Answer: C) Set boundaries or thresholds.
◍ Assumptions of Spearman (nonparametric).
Answer: - Two numeric variables (both ordinal or interval/ratio)-
independent pairs- monotonic relationship
◍ One of the key tasks of auditors of a bank is to consider the amount of the
loan loss reserve. When developing a model to estimate the current year's
loan loss reserve amount, which of the following would be least likely to be
included as an independent variable?A) Original loan approval amountB)
Customer loan historyC) Current aged loansD) Collections success.
, Answer: A) Original loan approval amount
◍ Null Hypothesis of Chi-Square.
Answer: - There is no association between the categorical variables; the
proportions will be similar in each sub-group- Does not have to be 50-50,
and does not have to have similar COUNTS- just similar PROPORTIONS
◍ Correlation near 0.
Answer: the variables have no/a weak relationship (trivial/ small effect). If
near 1 or -1, the variables have a strong relationship (large effect).
◍ Correct Interpretation of 95% CI.
Answer: Under repeated sampling, this interval would contain the true
population parameter 95% of the time
◍ Outliers.
Answer: 3 std deviations or more from Z-score
◍ What is the analytics type for procedures that work to identify the best
possible options given constraints or changing conditions?A) PrescriptiveB)
PredictiveC) DiagnosticD) Descriptive.
Answer: A) Prescriptive
◍ Assumptions of Chi-Square.
Answer: - Independent observations - No expected cell count less than 1- No
more than 20% of cells have an expected cell count less than 5. (Note: For
2x2 Table, this just means no expected cell counts can be less than 5)
◍ Which of the following best describes a dependent variable?A) OutputB)
InputC) ApplicationD) Operation.
Answer: A) Output
◍ QCA.
Answer: Qualitative Comparison Analysis
◍ The__________ statistical concept that assigns a value to a number based on
how many standard deviations it stands from the mean?A) z-scoreB)
F-scoreC) q-scoreD) median.
ANALYTICS CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◍ Training data.
Answer: Existing data that have been manually evaluated and assigned a
class, which assists in classifying the test data.
◍ Influences on How Well a Statistic Estimates its True Parameter:Worse,
More "Noisy" Estimate of the Parameter.
Answer: - happens when there is more error (SE is higher) - Likelier with
small n - leads to a wider CI
◍ (Population) Parameter.
Answer: A numeric value that is based on an entire population; usually
theoretical/ estimated from the corresponding sample statistic
◍ Regression analysis typically involves the following steps except:A)
Identify the variables that might predict an outcome.B) Identify the
parameters of the model.C) Set boundaries or thresholds.D) Determine the
functional form of the relationship..
Answer: C) Set boundaries or thresholds.
◍ Assumptions of Spearman (nonparametric).
Answer: - Two numeric variables (both ordinal or interval/ratio)-
independent pairs- monotonic relationship
◍ One of the key tasks of auditors of a bank is to consider the amount of the
loan loss reserve. When developing a model to estimate the current year's
loan loss reserve amount, which of the following would be least likely to be
included as an independent variable?A) Original loan approval amountB)
Customer loan historyC) Current aged loansD) Collections success.
, Answer: A) Original loan approval amount
◍ Null Hypothesis of Chi-Square.
Answer: - There is no association between the categorical variables; the
proportions will be similar in each sub-group- Does not have to be 50-50,
and does not have to have similar COUNTS- just similar PROPORTIONS
◍ Correlation near 0.
Answer: the variables have no/a weak relationship (trivial/ small effect). If
near 1 or -1, the variables have a strong relationship (large effect).
◍ Correct Interpretation of 95% CI.
Answer: Under repeated sampling, this interval would contain the true
population parameter 95% of the time
◍ Outliers.
Answer: 3 std deviations or more from Z-score
◍ What is the analytics type for procedures that work to identify the best
possible options given constraints or changing conditions?A) PrescriptiveB)
PredictiveC) DiagnosticD) Descriptive.
Answer: A) Prescriptive
◍ Assumptions of Chi-Square.
Answer: - Independent observations - No expected cell count less than 1- No
more than 20% of cells have an expected cell count less than 5. (Note: For
2x2 Table, this just means no expected cell counts can be less than 5)
◍ Which of the following best describes a dependent variable?A) OutputB)
InputC) ApplicationD) Operation.
Answer: A) Output
◍ QCA.
Answer: Qualitative Comparison Analysis
◍ The__________ statistical concept that assigns a value to a number based on
how many standard deviations it stands from the mean?A) z-scoreB)
F-scoreC) q-scoreD) median.
