Page 4 of 420 Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
Business Analytics, 2e 1
Business Analytics (Evans)
Chapter 1 Introduction to Business Analytics
1) Descriptive analytics:
A) can predict risk and find relationships in data not readily apparent with traditional analyses.
B) helps companies classify their customers into segments to develop specific marketing
campaigns.
C) helps detect hidden patterns in large quantities of data to group data into sets to predict
behavior.
D) can use mathematical techniques with optimization to make decisions that take into account
the uncertainty in the data.
Answer: B
Diff: 1
Blooms: Remember
Topic: Scope of Business Analytics
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics.
LO2: Compare and contrast tools for presenting and organizing data
2) A manager at Gampco Inc. wishes to know the company's revenue and profit in its previous
quarter. Which of the following business analytics will help the manager?
A) prescriptive analytics
B) normative analytics
C) descriptive analytics
D) predictive analytics
Answer: C
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Scope of Business Analytics
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics.
LO2: Describe the major tools and criteria for decision making.
3) Predictive analytics:
A) summarizes data into meaningful charts and reports that can be standardized or customized.
B) identifies the best alternatives to minimize or maximize an objective.
C) uses data to determine a course of action to be executed in a given situation.
D) detects patterns in historical data and extrapolates them forward in time.
Answer: D
Diff: 2
Blooms: Remember
Topic: Scope of Business Analytics
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics.
LO2: Compare and contrast tools for presenting and organizing data
Copyright © 2016 Pearson Education, Inc.
3/15/2026, 1:30:50 PM Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
,Page 5 of 420 Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
2 Chapter 1: Business Analytics
4) A trader who wants to predict short-term movements in stock prices is likely to use ________
analytics.
A) predictive
B) descriptive
C) normative
D) prescriptive
Answer: A
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Scope of Business Analytics
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics.
LO2: Describe the major tools and criteria for decision making.
5) Which of the following questions will prescriptive analytics help a company address?
A) How many and what types of complaints did they resolve?
B) What is the best way of shipping goods from their factories to minimize costs?
C) What do they expect to pay for fuel over the next several months?
D) What will happen if demand falls by 10% or if supplier prices go up 5%?
Answer: B
Diff: 2
Blooms: Understand
AACSB: Analytic Skills
Topic: Scope of Business Analytics
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics.
LO2: Describe the major tools and criteria for decision making.
6) What is a database?
A) a structured collection of related files and data
B) simply a collection of data
C) a data file holding a single file
D) flat files used to store data
Answer: A
Diff: 1
Blooms: Remember
Topic: Data for Business Analytics
LO1: Explain the difference between a data set and a database.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
Copyright © 2016 Pearson Education, Inc.
3/15/2026, 1:30:50 PM Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
,Page 6 of 420 Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
Business Analytics, 2e 3
7) In a database, information is stored and maintained in ________.
A) fields
B) measurements
C) entities
D) attributes
Answer: C
Diff: 1
Blooms: Remember
Topic: Data for Business Analytics
LO1: Explain the difference between a data set and a database.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
8) Which of the following is an example of a measure of continuous metrics?
A) four errors revealed in an invoice
B) a delivery delayed by seven days
C) weight and volume of a sheet of steel
D) three incomplete orders on a day
Answer: C
Diff: 2
Blooms: Understand
Topic: Data for Business Analytics
LO1: Explain the difference between a discrete metric and continuous metric, and provide
examples of each.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
9) Nominal data:
A) are ranked according to some relationship to one another.
B) have constant differences between observations.
C) are continuous and have a natural zero.
D) are sorted into categories according to specified characteristics.
Answer: D
Diff: 1
Blooms: Remember
Topic: Data for Business Analytics
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and
provide examples of each.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
Copyright © 2016 Pearson Education, Inc.
3/15/2026, 1:30:50 PM Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
, Page 7 of 420 Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
4 Chapter 1: Business Analytics
10) Which of the following is a disadvantage of ordinal data?
A) They bear no relationship to one another.
B) They have no fixed units of measurement.
C) They have no natural zero.
D) They are not comparable with each other.
Answer: B
Diff: 2
Blooms: Understand
Topic: Data for Business Analytics
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and
provide examples of each.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
11) Which of the following allow meaningful comparison of ranges, averages and other
statistics?
A) interval data
B) categorical data
C) ratio data
D) ordinal data
Answer: A
Diff: 1
Blooms: Remember
Topic: Data for Business Analytics
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and
provide examples of each.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
12) Following are the components of a data set containing purchase details of a shoe
manufacturing company. Identify the ratio data.
A) Item Number
B) Rank of suppliers
C) Item cost
D) Arrival Date
Answer: C
Diff: 2
Blooms: Apply
Topic: Data for Business Analytics
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and
provide examples of each.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
Copyright © 2016 Pearson Education, Inc.
3/15/2026, 1:30:50 PM Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
Business Analytics, 2e 1
Business Analytics (Evans)
Chapter 1 Introduction to Business Analytics
1) Descriptive analytics:
A) can predict risk and find relationships in data not readily apparent with traditional analyses.
B) helps companies classify their customers into segments to develop specific marketing
campaigns.
C) helps detect hidden patterns in large quantities of data to group data into sets to predict
behavior.
D) can use mathematical techniques with optimization to make decisions that take into account
the uncertainty in the data.
Answer: B
Diff: 1
Blooms: Remember
Topic: Scope of Business Analytics
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics.
LO2: Compare and contrast tools for presenting and organizing data
2) A manager at Gampco Inc. wishes to know the company's revenue and profit in its previous
quarter. Which of the following business analytics will help the manager?
A) prescriptive analytics
B) normative analytics
C) descriptive analytics
D) predictive analytics
Answer: C
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Scope of Business Analytics
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics.
LO2: Describe the major tools and criteria for decision making.
3) Predictive analytics:
A) summarizes data into meaningful charts and reports that can be standardized or customized.
B) identifies the best alternatives to minimize or maximize an objective.
C) uses data to determine a course of action to be executed in a given situation.
D) detects patterns in historical data and extrapolates them forward in time.
Answer: D
Diff: 2
Blooms: Remember
Topic: Scope of Business Analytics
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics.
LO2: Compare and contrast tools for presenting and organizing data
Copyright © 2016 Pearson Education, Inc.
3/15/2026, 1:30:50 PM Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
,Page 5 of 420 Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
2 Chapter 1: Business Analytics
4) A trader who wants to predict short-term movements in stock prices is likely to use ________
analytics.
A) predictive
B) descriptive
C) normative
D) prescriptive
Answer: A
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Scope of Business Analytics
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics.
LO2: Describe the major tools and criteria for decision making.
5) Which of the following questions will prescriptive analytics help a company address?
A) How many and what types of complaints did they resolve?
B) What is the best way of shipping goods from their factories to minimize costs?
C) What do they expect to pay for fuel over the next several months?
D) What will happen if demand falls by 10% or if supplier prices go up 5%?
Answer: B
Diff: 2
Blooms: Understand
AACSB: Analytic Skills
Topic: Scope of Business Analytics
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics.
LO2: Describe the major tools and criteria for decision making.
6) What is a database?
A) a structured collection of related files and data
B) simply a collection of data
C) a data file holding a single file
D) flat files used to store data
Answer: A
Diff: 1
Blooms: Remember
Topic: Data for Business Analytics
LO1: Explain the difference between a data set and a database.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
Copyright © 2016 Pearson Education, Inc.
3/15/2026, 1:30:50 PM Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
,Page 6 of 420 Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
Business Analytics, 2e 3
7) In a database, information is stored and maintained in ________.
A) fields
B) measurements
C) entities
D) attributes
Answer: C
Diff: 1
Blooms: Remember
Topic: Data for Business Analytics
LO1: Explain the difference between a data set and a database.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
8) Which of the following is an example of a measure of continuous metrics?
A) four errors revealed in an invoice
B) a delivery delayed by seven days
C) weight and volume of a sheet of steel
D) three incomplete orders on a day
Answer: C
Diff: 2
Blooms: Understand
Topic: Data for Business Analytics
LO1: Explain the difference between a discrete metric and continuous metric, and provide
examples of each.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
9) Nominal data:
A) are ranked according to some relationship to one another.
B) have constant differences between observations.
C) are continuous and have a natural zero.
D) are sorted into categories according to specified characteristics.
Answer: D
Diff: 1
Blooms: Remember
Topic: Data for Business Analytics
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and
provide examples of each.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
Copyright © 2016 Pearson Education, Inc.
3/15/2026, 1:30:50 PM Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
, Page 7 of 420 Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
4 Chapter 1: Business Analytics
10) Which of the following is a disadvantage of ordinal data?
A) They bear no relationship to one another.
B) They have no fixed units of measurement.
C) They have no natural zero.
D) They are not comparable with each other.
Answer: B
Diff: 2
Blooms: Understand
Topic: Data for Business Analytics
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and
provide examples of each.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
11) Which of the following allow meaningful comparison of ranges, averages and other
statistics?
A) interval data
B) categorical data
C) ratio data
D) ordinal data
Answer: A
Diff: 1
Blooms: Remember
Topic: Data for Business Analytics
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and
provide examples of each.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
12) Following are the components of a data set containing purchase details of a shoe
manufacturing company. Identify the ratio data.
A) Item Number
B) Rank of suppliers
C) Item cost
D) Arrival Date
Answer: C
Diff: 2
Blooms: Apply
Topic: Data for Business Analytics
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and
provide examples of each.
LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
Copyright © 2016 Pearson Education, Inc.
3/15/2026, 1:30:50 PM Business analytics 2nd edition by james r test bank.pdf
Business analytics 2nd edition by james r test bank.pdf
