TEST BANK
PAOLO CATASTI
Virginia Commonwealth University
BUSINESS ANALYTICS
SECOND EDITION
James R. Evans
University of Cincinnati
Boston Columbus Hoboken Indianapolis New York San Francisco
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto
Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
, 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
The author and publisher of this book have used their best efforts in preparing this book. These efforts include the
development, research, and testing of the theories and programs to determine their effectiveness. The author and
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?
publisher make no warranty of any kind, expressed or implied, with regard to these programs or the documentation
A) prescriptive analytics
contained in this book. The author and publisher shall not be liable in any event for incidental or consequential B) normative analytics
damages in connection with, or arising out of, the furnishing, performance, or use of these programs. C) descriptive analytics
D) predictive analytics
Reproduced by Pearson from electronic files supplied by the author.
Answer: C
Diff: 1
Blooms: Apply
Copyright © 2016, 2013 Pearson Education, Inc. AACSB: Analytic Skills
Publishing as Pearson, 75 Arlington Street, Boston, MA 02116. 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.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any
form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written 3) Predictive analytics:
permission of the publisher. Printed in the United States of America. 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.
ISBN-13: 978-0-13-384680-5 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.
ISBN-10: 0-133-84680-6
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
www.pearsonhighered.com
Copyright © 2016 Pearson Education, Inc.
,2 Chapter 1: Business Analytics Business Analytics, 2e 3
4) A trader who wants to predict short-term movements in stock prices is likely to use ________ 7) In a database, information is stored and maintained in ________.
analytics. A) fields
A) predictive B) measurements
B) descriptive C) entities
C) normative D) attributes
D) prescriptive Answer: C
Answer: A Diff: 1
Diff: 1 Blooms: Remember
Blooms: Apply Topic: Data for Business Analytics
AACSB: Analytic Skills LO1: Explain the difference between a data set and a database.
Topic: Scope of Business Analytics LO2: Explain how data are acquired and distinguish among different types of data and levels of
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics. measurement
LO2: Describe the major tools and criteria for decision making.
8) Which of the following is an example of a measure of continuous metrics?
5) Which of the following questions will prescriptive analytics help a company address? A) four errors revealed in an invoice
A) How many and what types of complaints did they resolve? B) a delivery delayed by seven days
B) What is the best way of shipping goods from their factories to minimize costs? C) weight and volume of a sheet of steel
C) What do they expect to pay for fuel over the next several months? D) three incomplete orders on a day
D) What will happen if demand falls by 10% or if supplier prices go up 5%? Answer: C
Answer: B Diff: 2
Diff: 2 Blooms: Understand
Blooms: Understand Topic: Data for Business Analytics
AACSB: Analytic Skills LO1: Explain the difference between a discrete metric and continuous metric, and provide
Topic: Scope of Business Analytics examples of each.
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics. LO2: Explain how data are acquired and distinguish among different types of data and levels of
LO2: Describe the major tools and criteria for decision making. measurement
6) What is a database? 9) Nominal data:
A) a structured collection of related files and data A) are ranked according to some relationship to one another.
B) simply a collection of data B) have constant differences between observations.
C) a data file holding a single file C) are continuous and have a natural zero.
D) flat files used to store data D) are sorted into categories according to specified characteristics.
Answer: A Answer: D
Diff: 1 Diff: 1
Blooms: Remember Blooms: Remember
Topic: Data for Business Analytics Topic: Data for Business Analytics
LO1: Explain the difference between a data set and a database. LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and
LO2: Explain how data are acquired and distinguish among different types of data and levels of provide examples of each.
measurement LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
Copyright © 2016 Pearson Education, Inc. Copyright © 2016 Pearson Education, Inc.
, 4 Chapter 1: Business Analytics Business Analytics, 2e 5
10) Which of the following is a disadvantage of ordinal data? 13) When data are classified by the type of measurement scale, which is the strongest form of
A) They bear no relationship to one another. measurement?
B) They have no fixed units of measurement. A) nominal
C) They have no natural zero. B) interval
D) They are not comparable with each other. C) ordinal
Answer: B D) ratio
Diff: 2 Answer: D
Blooms: Understand Diff: 1
Topic: Data for Business Analytics Blooms: Remember
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and Topic: Data for Business Analytics
provide examples of each. LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and
LO2: Explain how data are acquired and distinguish among different types of data and levels of provide examples of each.
measurement 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? 14) The demand for coffee beans over a period of three months has been represented in the form
A) interval data of an L-shaped curve. Which form of model was used here?
B) categorical data A) mathematical model
C) ratio data B) visual model
D) ordinal data C) kinesthetic (tactile) model
Answer: A D) verbal model
Diff: 1 Answer: B
Blooms: Remember Diff: 1
Topic: Data for Business Analytics Blooms: Apply
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and AACSB: Analytic Skills
provide examples of each. Topic: Decision Models
LO2: Explain how data are acquired and distinguish among different types of data and levels of LO1: Explain the concept of a model and various ways a model can be characterized.
measurement LO2: Compare and contrast tools for presenting and organizing data
12) Following are the components of a data set containing purchase details of a shoe 15) Decision variables:
manufacturing company. Identify the ratio data. A) cannot be directly controlled by the decision maker.
A) Item Number B) are assumed to be constant.
B) Rank of suppliers C) are always uncertain.
C) Item cost D) can be selected at the discretion of the decision maker.
D) Arrival Date Answer: D
Answer: C Diff: 2
Diff: 2 Blooms: Understand
Blooms: Apply Topic: Decision Models
Topic: Data for Business Analytics LO1: Define and list the elements of a decision model.
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and LO2: Describe the major tools and criteria for decision making.
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. Copyright © 2016 Pearson Education, Inc.
PAOLO CATASTI
Virginia Commonwealth University
BUSINESS ANALYTICS
SECOND EDITION
James R. Evans
University of Cincinnati
Boston Columbus Hoboken Indianapolis New York San Francisco
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto
Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
, 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
The author and publisher of this book have used their best efforts in preparing this book. These efforts include the
development, research, and testing of the theories and programs to determine their effectiveness. The author and
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?
publisher make no warranty of any kind, expressed or implied, with regard to these programs or the documentation
A) prescriptive analytics
contained in this book. The author and publisher shall not be liable in any event for incidental or consequential B) normative analytics
damages in connection with, or arising out of, the furnishing, performance, or use of these programs. C) descriptive analytics
D) predictive analytics
Reproduced by Pearson from electronic files supplied by the author.
Answer: C
Diff: 1
Blooms: Apply
Copyright © 2016, 2013 Pearson Education, Inc. AACSB: Analytic Skills
Publishing as Pearson, 75 Arlington Street, Boston, MA 02116. 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.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any
form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written 3) Predictive analytics:
permission of the publisher. Printed in the United States of America. 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.
ISBN-13: 978-0-13-384680-5 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.
ISBN-10: 0-133-84680-6
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
www.pearsonhighered.com
Copyright © 2016 Pearson Education, Inc.
,2 Chapter 1: Business Analytics Business Analytics, 2e 3
4) A trader who wants to predict short-term movements in stock prices is likely to use ________ 7) In a database, information is stored and maintained in ________.
analytics. A) fields
A) predictive B) measurements
B) descriptive C) entities
C) normative D) attributes
D) prescriptive Answer: C
Answer: A Diff: 1
Diff: 1 Blooms: Remember
Blooms: Apply Topic: Data for Business Analytics
AACSB: Analytic Skills LO1: Explain the difference between a data set and a database.
Topic: Scope of Business Analytics LO2: Explain how data are acquired and distinguish among different types of data and levels of
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics. measurement
LO2: Describe the major tools and criteria for decision making.
8) Which of the following is an example of a measure of continuous metrics?
5) Which of the following questions will prescriptive analytics help a company address? A) four errors revealed in an invoice
A) How many and what types of complaints did they resolve? B) a delivery delayed by seven days
B) What is the best way of shipping goods from their factories to minimize costs? C) weight and volume of a sheet of steel
C) What do they expect to pay for fuel over the next several months? D) three incomplete orders on a day
D) What will happen if demand falls by 10% or if supplier prices go up 5%? Answer: C
Answer: B Diff: 2
Diff: 2 Blooms: Understand
Blooms: Understand Topic: Data for Business Analytics
AACSB: Analytic Skills LO1: Explain the difference between a discrete metric and continuous metric, and provide
Topic: Scope of Business Analytics examples of each.
LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics. LO2: Explain how data are acquired and distinguish among different types of data and levels of
LO2: Describe the major tools and criteria for decision making. measurement
6) What is a database? 9) Nominal data:
A) a structured collection of related files and data A) are ranked according to some relationship to one another.
B) simply a collection of data B) have constant differences between observations.
C) a data file holding a single file C) are continuous and have a natural zero.
D) flat files used to store data D) are sorted into categories according to specified characteristics.
Answer: A Answer: D
Diff: 1 Diff: 1
Blooms: Remember Blooms: Remember
Topic: Data for Business Analytics Topic: Data for Business Analytics
LO1: Explain the difference between a data set and a database. LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and
LO2: Explain how data are acquired and distinguish among different types of data and levels of provide examples of each.
measurement LO2: Explain how data are acquired and distinguish among different types of data and levels of
measurement
Copyright © 2016 Pearson Education, Inc. Copyright © 2016 Pearson Education, Inc.
, 4 Chapter 1: Business Analytics Business Analytics, 2e 5
10) Which of the following is a disadvantage of ordinal data? 13) When data are classified by the type of measurement scale, which is the strongest form of
A) They bear no relationship to one another. measurement?
B) They have no fixed units of measurement. A) nominal
C) They have no natural zero. B) interval
D) They are not comparable with each other. C) ordinal
Answer: B D) ratio
Diff: 2 Answer: D
Blooms: Understand Diff: 1
Topic: Data for Business Analytics Blooms: Remember
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and Topic: Data for Business Analytics
provide examples of each. LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and
LO2: Explain how data are acquired and distinguish among different types of data and levels of provide examples of each.
measurement 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? 14) The demand for coffee beans over a period of three months has been represented in the form
A) interval data of an L-shaped curve. Which form of model was used here?
B) categorical data A) mathematical model
C) ratio data B) visual model
D) ordinal data C) kinesthetic (tactile) model
Answer: A D) verbal model
Diff: 1 Answer: B
Blooms: Remember Diff: 1
Topic: Data for Business Analytics Blooms: Apply
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and AACSB: Analytic Skills
provide examples of each. Topic: Decision Models
LO2: Explain how data are acquired and distinguish among different types of data and levels of LO1: Explain the concept of a model and various ways a model can be characterized.
measurement LO2: Compare and contrast tools for presenting and organizing data
12) Following are the components of a data set containing purchase details of a shoe 15) Decision variables:
manufacturing company. Identify the ratio data. A) cannot be directly controlled by the decision maker.
A) Item Number B) are assumed to be constant.
B) Rank of suppliers C) are always uncertain.
C) Item cost D) can be selected at the discretion of the decision maker.
D) Arrival Date Answer: D
Answer: C Diff: 2
Diff: 2 Blooms: Understand
Blooms: Apply Topic: Decision Models
Topic: Data for Business Analytics LO1: Define and list the elements of a decision model.
LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and LO2: Describe the major tools and criteria for decision making.
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. Copyright © 2016 Pearson Education, Inc.
