C207 Data-Driven Decision Making Exam
Review Questions with Verified Correct Answers
There are two types of statistics (Analytics)
Descriptive and inferential
Descriptive statistics are used to _____
Inform / Explanatory
Inferential statistics are used to _____
Predict / Trend
Name the 4 levels of measurement
(NOIR) Nominal, Ordinal, Interval, Ratio
What is continuous data with a unique zero point?
Ratio
Orders data at equal distance apart
Interval
Place qualitative objects in some kind or order
Ordinal
Identify, Group, or Categorize
Nominal
Outliers create this type of error
Out-of Range
Unpredictable error
Random Error - No correlation
Error may occur from missing data (Ex. space not filled in)
,Omission Error - Distorted results
This error repeats itself
Systematic Error - Skewed results
What is the process of quality control?
Reduce / minimize errors
All variable measurements and manipulations are under the researcher's control
Experimental study
Used when impractical or impossible to control the conditions of the study
Observational Study
Participants are not told if they are in the treatment group or control group
Blind Study
The procedure the researcher applies to each subject
Treatments
Neither the treatment allocator nor the participants know who is in the treatment group or
control group
Double blind study
Questions favor an outcome or the interviewer asks questions that favor an outcome
Information Bias
The average outcome (payoff) when the future includes scenarios that may or may not
happen
Expected Monetary Value (EMV) Analysis
Observation points that are distant from other observations
Outliers
Note: Can be included or excluded in analysis (causes skewness)
Bias that occurs from not selecting a random sample
Measurement bias
Bias introduced because respondents believe it will be beneficial if selected
,Conscious bias
Each of the four quartile groups a population can be divided
Quartiles
Measures the difference between the third and the first quartile
IQR: Inter-quartile range
Note: must be ordered in lowest to highest value
Used to study the composition of data set and examine the distribution
Box plot
There are six toll booths to enter the highway. What probability does each toll booth worker
have of getting the next customer?
1 customer and 6 booths = 1/6 or 16.7%
The order you pick you sample in does not matter
Combination
Picking employees for a shift. Order doesn't matter
When given P(A) given P(B), you can use this to find the P(B) given P(A)
Bayes Theorem
You must know P(A), P(B), P(A) given B
Apply this rule when looking for two events occurring (AND)
Multiplying
Use this rule when looking for one or more of the other event happening (OR)
Addition
A technique for minimize total cost or maximize profit based on constraints
Line programming
A technique using a single independent variable to predict a single dependent variable
Linear regression
A technique using more than one independent variable to predict a single dependent variable
Multiple regression
, Measures the strength of a linear relationship
Correlation coefficient
Measures the goodness of fit in a regression analysis
R2 (R-Square)
A simple regression using time as the independent variable
Time series
A general slope upward or downward over a period of time
Trend
Unforeseen circumstances causing random deviations
Irregularity
Repetition in up and down patterns
Cyclicality
Regular pattern within a single year
Seasonality
Represents the probability that a variable falls within a certain range
Cumulative distribution
A list of all the different probabilities of each outcome that can occur
Probability Distribution
Measures of central tendency are approximately equal (Mean and Median)
Normal Distribution
Used to compare the mean of three or more groups
ANOVA
ANOVA uses this test statistics
F-Value
(must be higher than critical value to reject the null)
T-test uses this test statistic
Review Questions with Verified Correct Answers
There are two types of statistics (Analytics)
Descriptive and inferential
Descriptive statistics are used to _____
Inform / Explanatory
Inferential statistics are used to _____
Predict / Trend
Name the 4 levels of measurement
(NOIR) Nominal, Ordinal, Interval, Ratio
What is continuous data with a unique zero point?
Ratio
Orders data at equal distance apart
Interval
Place qualitative objects in some kind or order
Ordinal
Identify, Group, or Categorize
Nominal
Outliers create this type of error
Out-of Range
Unpredictable error
Random Error - No correlation
Error may occur from missing data (Ex. space not filled in)
,Omission Error - Distorted results
This error repeats itself
Systematic Error - Skewed results
What is the process of quality control?
Reduce / minimize errors
All variable measurements and manipulations are under the researcher's control
Experimental study
Used when impractical or impossible to control the conditions of the study
Observational Study
Participants are not told if they are in the treatment group or control group
Blind Study
The procedure the researcher applies to each subject
Treatments
Neither the treatment allocator nor the participants know who is in the treatment group or
control group
Double blind study
Questions favor an outcome or the interviewer asks questions that favor an outcome
Information Bias
The average outcome (payoff) when the future includes scenarios that may or may not
happen
Expected Monetary Value (EMV) Analysis
Observation points that are distant from other observations
Outliers
Note: Can be included or excluded in analysis (causes skewness)
Bias that occurs from not selecting a random sample
Measurement bias
Bias introduced because respondents believe it will be beneficial if selected
,Conscious bias
Each of the four quartile groups a population can be divided
Quartiles
Measures the difference between the third and the first quartile
IQR: Inter-quartile range
Note: must be ordered in lowest to highest value
Used to study the composition of data set and examine the distribution
Box plot
There are six toll booths to enter the highway. What probability does each toll booth worker
have of getting the next customer?
1 customer and 6 booths = 1/6 or 16.7%
The order you pick you sample in does not matter
Combination
Picking employees for a shift. Order doesn't matter
When given P(A) given P(B), you can use this to find the P(B) given P(A)
Bayes Theorem
You must know P(A), P(B), P(A) given B
Apply this rule when looking for two events occurring (AND)
Multiplying
Use this rule when looking for one or more of the other event happening (OR)
Addition
A technique for minimize total cost or maximize profit based on constraints
Line programming
A technique using a single independent variable to predict a single dependent variable
Linear regression
A technique using more than one independent variable to predict a single dependent variable
Multiple regression
, Measures the strength of a linear relationship
Correlation coefficient
Measures the goodness of fit in a regression analysis
R2 (R-Square)
A simple regression using time as the independent variable
Time series
A general slope upward or downward over a period of time
Trend
Unforeseen circumstances causing random deviations
Irregularity
Repetition in up and down patterns
Cyclicality
Regular pattern within a single year
Seasonality
Represents the probability that a variable falls within a certain range
Cumulative distribution
A list of all the different probabilities of each outcome that can occur
Probability Distribution
Measures of central tendency are approximately equal (Mean and Median)
Normal Distribution
Used to compare the mean of three or more groups
ANOVA
ANOVA uses this test statistics
F-Value
(must be higher than critical value to reject the null)
T-test uses this test statistic
