Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
Solution Manual for Introduction to usiness Analytics, 1st
Edition
By Vernon Richardson and Marcia Watson
Verified Chapter's 1 - 12 | Complete
, Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
TABLE OF CONTENTS
Chapter 1: Specify the Question: Using usiness Analytics to Address usiness Questions Chapter
2: Obtain the Data: An Introduction to usiness Data Sources
Chapter 3: Analyze the Data: asic Statistics and Tools Required in usiness Analytics
Chapter 4: Analyze the Data: Exploratory usiness Analytics (Descriptive Analytics and Diagnostic Analytics)
Chapter 5: Analyze the Data: Confirmatory usiness Analytics (Predictive Analytics and Prescriptive Analytics)
Chapter 6: Report the Results: Using Data Visualization
Chapter 7: Marketing Analytics
Chapter 8: Accounting Analytics
Chapter 9: Financial Analytics
Chapter 10: Operations Analytics
Chapter 11: Advanced usiness Analytics
Chapter 12: Using the SOAR Analytics Model to Put It All Together: Three Capstone Projects
Chapter 1 End-of-Chapter Assignment Solutions
Multiple Choice Questions
1. (LO 1.1) A coordinated, standardized set of activities conducted y oth people and equipment to accomplish a
specific usiness task is called .
a. business processes
b. business analysis
c. business procedure
d. business value
2. (LO 1.2) According to the information value chain, data combined with context is
a. Information.
b. Knowledge.
c. Insight.
d. Value.
3. (LO 1.5) Which phase of the SOAR analytics model addresses the proper way to communicate results to the
decision maker?
a. Specify the question
b. Obtain the data
, Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
c. Analyze the data
d. Report the results
4. (LO 1.5) Which phase of the SOAR analytics model involves finding the most appropriate data needed to address
the usiness question?
a. Specify the question
b. Obtain the data
c. Analyze the data
d. Report the results
5. (LO 1.5) Which questions seek information about Tesla’s sales in the next quarter?
a. What happened? What is happening?
b. Why did it happen? What are the causes of past results?
c. Will it happen in the future? What is the probability something will happen? Can we forecast
whatbwill happen?
d. What should we do, based on what we expect will happen? How do we optimize our performance
basedbon potential constraints?
6. (LO 1.5) Which questions seek information on the routing of products from Queretaro, Mexico to
Chicago,bUnited States in the last quarter?
a. What happened? What is happening?
b. Why did it happen? What are the causes of past results?
c. Will it happen in the future? What is the probability something will happen? Can we forecast what
willbhappen?
d. What should we do, based on what we expect will happen? How do we optimize our performance
basedbon potential constraints?
7. (LO 1.5) Which questions ask why net income is increasing when revenues are decreasing, counter
tobexpectations?
a. What happened? What is happening?
b. Why did it happen? What are the causes of past results?
c. Will it happen in the future? What is the probability something will happen? Can we forecast what
willbhappen?
d. What should we do, based on what we expect will happen? How do we optimize our performance
basedbon potential constraints?
8. (LO 1.5) Which questions help managers understand how to organize future shipments based on
expectedbdemand?
a. What happened? What is happening?
b. Why did it happen? What are the causes of past results?
c. Will it happen in the future? What is the probability something will happen? Can we forecast what
willbhappen?
d. What should we do, based on what we expect will happen? How do we optimize our
performancebbased on potential constraints?
9. (LO 1.5) Which term refers to the combined accuracy, validity, and consistency of data stored and used
overbtime?
a. Data integrity
b. Data overload
c. Data value
d. Information value
10. (LO 1.3) A specialist who knows how to work with, manipulate, and statistically test data is a
a. decision maker.
, Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
b. data scientist.
c. data analyst.
d. decision scientist.
11. (LO 1.4) Which type of analysts predicts the amount of money that a company will receive from its customers tobhelp
management evaluate future investments based on expected investment performance, such as investments in
equipment or employee training?
a. Marketing analyst
b. Operations analyst
c. Financial analyst
d. Accounting analyst
12. (LO 1.4) Which type of analyst addresses questions regarding tax and auditing?
a. Marketing analyst
b. Operations analyst
c. Financial analyst
d. Accounting analyst
13. (LO 1.5) Suppose a company has timely product reviews that are available when needed, but the reviews
arebbiased. These product reviews are which type of data?
a. Reliable
b. Relevant
c. Curated
d. Consistent
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
14. (LO 1.6) Which common visualization type shows trends in values over time?
a. Line graph
b. Scatterplot
c. Pie chart
d. Bar chart
15. (LO 1.6) Which common visualization type shows the composition of values over time?
a. Line graph
b. Scatterplot
c. Pie chart
d. Bar chart
Discussion Questions
1. (LO 1.1) Give five examples of business processes at Tesla. How do they create business value for Tesla and
itsbshareholders?
SuggestedbSolution:
Answers will vary,
1. Tesla procures automobile parts from auto suppliers – ecause of Tesla’s unique styling, getting qualitybparts
from its suppliers on a timely basis will support its manufacturing business.
2. Tesla manufactures batteries for its electric vehicle at its desired specifications – The quantity and qualitybof
its batteries are of critical importance to Tesla.
3. Accepting and processing preorders from its customers – Tesla receives some indication of the demand
forbeach of its products, that helps with planning.
4. Tesla markets its products – Tesla works to get Tesla products in the front of mind for its customers.
4
Solution Manual for Introduction to usiness Analytics, 1st
Edition
By Vernon Richardson and Marcia Watson
Verified Chapter's 1 - 12 | Complete
, Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
TABLE OF CONTENTS
Chapter 1: Specify the Question: Using usiness Analytics to Address usiness Questions Chapter
2: Obtain the Data: An Introduction to usiness Data Sources
Chapter 3: Analyze the Data: asic Statistics and Tools Required in usiness Analytics
Chapter 4: Analyze the Data: Exploratory usiness Analytics (Descriptive Analytics and Diagnostic Analytics)
Chapter 5: Analyze the Data: Confirmatory usiness Analytics (Predictive Analytics and Prescriptive Analytics)
Chapter 6: Report the Results: Using Data Visualization
Chapter 7: Marketing Analytics
Chapter 8: Accounting Analytics
Chapter 9: Financial Analytics
Chapter 10: Operations Analytics
Chapter 11: Advanced usiness Analytics
Chapter 12: Using the SOAR Analytics Model to Put It All Together: Three Capstone Projects
Chapter 1 End-of-Chapter Assignment Solutions
Multiple Choice Questions
1. (LO 1.1) A coordinated, standardized set of activities conducted y oth people and equipment to accomplish a
specific usiness task is called .
a. business processes
b. business analysis
c. business procedure
d. business value
2. (LO 1.2) According to the information value chain, data combined with context is
a. Information.
b. Knowledge.
c. Insight.
d. Value.
3. (LO 1.5) Which phase of the SOAR analytics model addresses the proper way to communicate results to the
decision maker?
a. Specify the question
b. Obtain the data
, Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
c. Analyze the data
d. Report the results
4. (LO 1.5) Which phase of the SOAR analytics model involves finding the most appropriate data needed to address
the usiness question?
a. Specify the question
b. Obtain the data
c. Analyze the data
d. Report the results
5. (LO 1.5) Which questions seek information about Tesla’s sales in the next quarter?
a. What happened? What is happening?
b. Why did it happen? What are the causes of past results?
c. Will it happen in the future? What is the probability something will happen? Can we forecast
whatbwill happen?
d. What should we do, based on what we expect will happen? How do we optimize our performance
basedbon potential constraints?
6. (LO 1.5) Which questions seek information on the routing of products from Queretaro, Mexico to
Chicago,bUnited States in the last quarter?
a. What happened? What is happening?
b. Why did it happen? What are the causes of past results?
c. Will it happen in the future? What is the probability something will happen? Can we forecast what
willbhappen?
d. What should we do, based on what we expect will happen? How do we optimize our performance
basedbon potential constraints?
7. (LO 1.5) Which questions ask why net income is increasing when revenues are decreasing, counter
tobexpectations?
a. What happened? What is happening?
b. Why did it happen? What are the causes of past results?
c. Will it happen in the future? What is the probability something will happen? Can we forecast what
willbhappen?
d. What should we do, based on what we expect will happen? How do we optimize our performance
basedbon potential constraints?
8. (LO 1.5) Which questions help managers understand how to organize future shipments based on
expectedbdemand?
a. What happened? What is happening?
b. Why did it happen? What are the causes of past results?
c. Will it happen in the future? What is the probability something will happen? Can we forecast what
willbhappen?
d. What should we do, based on what we expect will happen? How do we optimize our
performancebbased on potential constraints?
9. (LO 1.5) Which term refers to the combined accuracy, validity, and consistency of data stored and used
overbtime?
a. Data integrity
b. Data overload
c. Data value
d. Information value
10. (LO 1.3) A specialist who knows how to work with, manipulate, and statistically test data is a
a. decision maker.
, Chapter 01 – Specify the Question: Using Business Analytics to Address Business Questions
b. data scientist.
c. data analyst.
d. decision scientist.
11. (LO 1.4) Which type of analysts predicts the amount of money that a company will receive from its customers tobhelp
management evaluate future investments based on expected investment performance, such as investments in
equipment or employee training?
a. Marketing analyst
b. Operations analyst
c. Financial analyst
d. Accounting analyst
12. (LO 1.4) Which type of analyst addresses questions regarding tax and auditing?
a. Marketing analyst
b. Operations analyst
c. Financial analyst
d. Accounting analyst
13. (LO 1.5) Suppose a company has timely product reviews that are available when needed, but the reviews
arebbiased. These product reviews are which type of data?
a. Reliable
b. Relevant
c. Curated
d. Consistent
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
14. (LO 1.6) Which common visualization type shows trends in values over time?
a. Line graph
b. Scatterplot
c. Pie chart
d. Bar chart
15. (LO 1.6) Which common visualization type shows the composition of values over time?
a. Line graph
b. Scatterplot
c. Pie chart
d. Bar chart
Discussion Questions
1. (LO 1.1) Give five examples of business processes at Tesla. How do they create business value for Tesla and
itsbshareholders?
SuggestedbSolution:
Answers will vary,
1. Tesla procures automobile parts from auto suppliers – ecause of Tesla’s unique styling, getting qualitybparts
from its suppliers on a timely basis will support its manufacturing business.
2. Tesla manufactures batteries for its electric vehicle at its desired specifications – The quantity and qualitybof
its batteries are of critical importance to Tesla.
3. Accepting and processing preorders from its customers – Tesla receives some indication of the demand
forbeach of its products, that helps with planning.
4. Tesla markets its products – Tesla works to get Tesla products in the front of mind for its customers.
4
