ISYE 6501 OAN/O01/A MIDTERM 1 EXAM
— VERSION 1
INTRODUCTION TO ANALYTICS MODELING
Georgia Institute of Technology | 2026/2027 Practice Question Bank
This original practice exam reviews foundational analytics modeling concepts,
including descriptive statistics, probability, regression, classification, optimization,
decision analysis, model evaluation, and data-driven business decisions. It is designed
for study and self-assessment, not as a reproduction of an official exam.
Core study areas
1.
Descriptive and inferential statistics
2.
3.
Probability and conditional probability
4.
5.
Regression and predictive modeling
6.
7.
Classification and model performance
8.
9.
Decision trees and optimization
10.
11.
Simulation and uncertainty
12.
13.
, Data preparation and exploratory analysis
14.
15.
Model selection and business interpretation
16.
SECTION 1: INTRODUCTION TO ANALYTICS MODELING
Question 1
A retail company wants to understand why sales declined last quarter. Which
analytics approach is most appropriate for identifying factors associated with the
decline?
A. Prescriptive analytics only B. Descriptive analytics followed by diagnostic analysis
C. Random assignment without data analysis D. Encryption analysis
Correct Answer: B. Descriptive analytics followed by diagnostic analysis
Rationale: Descriptive analytics summarizes what happened, while diagnostic
analysis investigates potential explanations. Together, they help the company examine
sales trends, customer behavior, pricing, and other possible contributing factors.
Question 2
Which statement best describes predictive analytics?
A. It guarantees what will happen in the future. B. It uses historical data and modeling
techniques to estimate future outcomes. C. It replaces all business judgment. D. It
summarizes only past performance without estimating future outcomes.
Correct Answer: B. It uses historical data and modeling techniques to estimate future
outcomes.
Rationale: Predictive analytics estimates likely outcomes using patterns in historical
data. Predictions are uncertain and depend on data quality, assumptions, and whether
the relationships remain relevant.
Question 3
A manager must choose the number of employees to schedule next week based on
expected demand and staffing costs. Which analytics category is most directly
relevant to selecting the best action?
,A. Descriptive analytics B. Diagnostic analytics C. Prescriptive analytics D. Data
visualization alone
Correct Answer: C. Prescriptive analytics
Rationale: Prescriptive analytics evaluates possible actions and helps identify a
decision that optimizes an objective, subject to constraints such as staffing capacity
and labor costs.
Question 4
A dataset contains each customer's age, annual income, purchase frequency, and total
spending. In a model predicting total spending, what is total spending?
A. A predictor B. A response variable C. A sampling frame D. A random seed
Correct Answer: B. A response variable
Rationale: The response variable is the outcome the model is designed to explain or
predict. Age, income, and purchase frequency are potential predictor variables.
Question 5
Which is the strongest example of a business decision supported by analytics?
A. Choosing a price randomly and ignoring the results B. Selecting a marketing
campaign after comparing expected profit, cost, and uncertainty C. Assuming last
year's results will always repeat D. Removing every unusual observation
automatically
Correct Answer: B. Selecting a marketing campaign after comparing expected profit,
cost, and uncertainty
Rationale: Analytics supports informed decisions by comparing alternatives using
relevant evidence, business objectives, costs, and uncertainty.
SECTION 2: DESCRIPTIVE STATISTICS
Question 6
A company's daily sales are $100, $120, $130, $150, and $200. What is the mean
daily sales value?
A. $120 B. $130 C. $140 D. $150
Correct Answer: C. $140
Rationale: The mean is the sum divided by the number of observations:
, \[ \frac{100+120+130+150+200}{5}=140 \]
Question 7
What is the median of the values 4, 7, 9, 12, and 18?
A. 7 B. 9 C. 10 D. 12
Correct Answer: B. 9
Rationale: The median is the middle value after the observations are arranged in
ascending order. The third of five observations is 9.
Question 8
A dataset contains annual incomes of $35,000, $38,000, $40,000, $42,000, and
$500,000. Which measure of central tendency is generally less affected by the
extreme high value?
A. Mean B. Median C. Sum D. Range
Correct Answer: B. Median
Rationale: The median depends on the position of observations rather than their
magnitudes. The extreme income substantially increases the mean but has much less
influence on the median.
Question 9
What does the standard deviation measure?
A. The number of observations in a dataset B. The spread of observations around their
mean C. The most frequent category D. The difference between the largest and
smallest categories only
Correct Answer: B. The spread of observations around their mean
Rationale: Standard deviation quantifies dispersion around the mean. A larger
standard deviation indicates greater variability, in the same units as the original data.
Question 10
A dataset has a range of 60. Its minimum is 15. What is its maximum?
A. 45 B. 60 C. 75 D. 90
Correct Answer: C. 75
— VERSION 1
INTRODUCTION TO ANALYTICS MODELING
Georgia Institute of Technology | 2026/2027 Practice Question Bank
This original practice exam reviews foundational analytics modeling concepts,
including descriptive statistics, probability, regression, classification, optimization,
decision analysis, model evaluation, and data-driven business decisions. It is designed
for study and self-assessment, not as a reproduction of an official exam.
Core study areas
1.
Descriptive and inferential statistics
2.
3.
Probability and conditional probability
4.
5.
Regression and predictive modeling
6.
7.
Classification and model performance
8.
9.
Decision trees and optimization
10.
11.
Simulation and uncertainty
12.
13.
, Data preparation and exploratory analysis
14.
15.
Model selection and business interpretation
16.
SECTION 1: INTRODUCTION TO ANALYTICS MODELING
Question 1
A retail company wants to understand why sales declined last quarter. Which
analytics approach is most appropriate for identifying factors associated with the
decline?
A. Prescriptive analytics only B. Descriptive analytics followed by diagnostic analysis
C. Random assignment without data analysis D. Encryption analysis
Correct Answer: B. Descriptive analytics followed by diagnostic analysis
Rationale: Descriptive analytics summarizes what happened, while diagnostic
analysis investigates potential explanations. Together, they help the company examine
sales trends, customer behavior, pricing, and other possible contributing factors.
Question 2
Which statement best describes predictive analytics?
A. It guarantees what will happen in the future. B. It uses historical data and modeling
techniques to estimate future outcomes. C. It replaces all business judgment. D. It
summarizes only past performance without estimating future outcomes.
Correct Answer: B. It uses historical data and modeling techniques to estimate future
outcomes.
Rationale: Predictive analytics estimates likely outcomes using patterns in historical
data. Predictions are uncertain and depend on data quality, assumptions, and whether
the relationships remain relevant.
Question 3
A manager must choose the number of employees to schedule next week based on
expected demand and staffing costs. Which analytics category is most directly
relevant to selecting the best action?
,A. Descriptive analytics B. Diagnostic analytics C. Prescriptive analytics D. Data
visualization alone
Correct Answer: C. Prescriptive analytics
Rationale: Prescriptive analytics evaluates possible actions and helps identify a
decision that optimizes an objective, subject to constraints such as staffing capacity
and labor costs.
Question 4
A dataset contains each customer's age, annual income, purchase frequency, and total
spending. In a model predicting total spending, what is total spending?
A. A predictor B. A response variable C. A sampling frame D. A random seed
Correct Answer: B. A response variable
Rationale: The response variable is the outcome the model is designed to explain or
predict. Age, income, and purchase frequency are potential predictor variables.
Question 5
Which is the strongest example of a business decision supported by analytics?
A. Choosing a price randomly and ignoring the results B. Selecting a marketing
campaign after comparing expected profit, cost, and uncertainty C. Assuming last
year's results will always repeat D. Removing every unusual observation
automatically
Correct Answer: B. Selecting a marketing campaign after comparing expected profit,
cost, and uncertainty
Rationale: Analytics supports informed decisions by comparing alternatives using
relevant evidence, business objectives, costs, and uncertainty.
SECTION 2: DESCRIPTIVE STATISTICS
Question 6
A company's daily sales are $100, $120, $130, $150, and $200. What is the mean
daily sales value?
A. $120 B. $130 C. $140 D. $150
Correct Answer: C. $140
Rationale: The mean is the sum divided by the number of observations:
, \[ \frac{100+120+130+150+200}{5}=140 \]
Question 7
What is the median of the values 4, 7, 9, 12, and 18?
A. 7 B. 9 C. 10 D. 12
Correct Answer: B. 9
Rationale: The median is the middle value after the observations are arranged in
ascending order. The third of five observations is 9.
Question 8
A dataset contains annual incomes of $35,000, $38,000, $40,000, $42,000, and
$500,000. Which measure of central tendency is generally less affected by the
extreme high value?
A. Mean B. Median C. Sum D. Range
Correct Answer: B. Median
Rationale: The median depends on the position of observations rather than their
magnitudes. The extreme income substantially increases the mean but has much less
influence on the median.
Question 9
What does the standard deviation measure?
A. The number of observations in a dataset B. The spread of observations around their
mean C. The most frequent category D. The difference between the largest and
smallest categories only
Correct Answer: B. The spread of observations around their mean
Rationale: Standard deviation quantifies dispersion around the mean. A larger
standard deviation indicates greater variability, in the same units as the original data.
Question 10
A dataset has a range of 60. Its minimum is 15. What is its maximum?
A. 45 B. 60 C. 75 D. 90
Correct Answer: C. 75
