WGU C207 Data Driven Decision Making Questions and Answers Already Passed

WGU C207 Data Driven Decision Making Questions and Answers Already Passed Activities (RBM stage) second step involves the process that converts inputs to outputs (actions necessary to produces results - training, evaluating, developing) Alternative hypothesis The argument that either a sample is not equal to, greater than, or less than the hypothesized null sample Analysis of Variance (ANOVA) a technique used to determine if there is a sufficient evidence from sample data of three or more populations to conclude that the means of the population are not all equal Analytics The discovery, analysis, and communication of meaningful patterns in data. Autocorrelation A relationship between two variables that is inherently non-linear Balanced Scorecard An approach using multiple measures to evaluate performance, including financial measures, and the non-financial measures of customers, internal business processes, and learning and growth. Bar chart A graph that measures the distribution of data over discrete groups or categories. Benchmarks Standards or points of reference for an industry or sector that can be used for comparison and evaluation. Big Data very large amounts of data; an all-encompassing term for any collection of data sets so large and complex that it becomes difficult to process them using traditional data processing applications Blind Study A study performed where the participants are not told if they are in the treatment group or control group body mass index (BMI) A measure, based on a person's weight and height, that is used to classify people as underweight or overweight. Business process A sequence of logically related and time based work activities to provide a specific output for a customer. Central Limit Theorem A theorem that states that, the greater the sample, the closer the mean of the sample is to the entire population and the more the results will look like a normal distribution Cluster Analysis The process of arranging terms or values based on different variables into "natural" groups Cointegration Occurs when two time series are moving with a common pattern due to a connection between the two time series Combination The number of different unordered possibilities for a certain situation. Complement The occurrence of an event not happening, the opposite Confidence interval An interval estimate used to indicate reliability Continuous Data Data that can lay along any point in a range of data Control chart A graphic display of process data over time and against established control limits, and that has a centerline that assists in detecting a trend of plotted values toward either control limit. Control limits The area composed of three standard deviations on either side of the centerline, or mean, of a normal distribution of data plotted on a control chart that reflects the expected variation in the data Criterion-reference test compare an individual to certain defined standards Critical Success Factors The important things an entity must do to be successful, such as quality measures, customer service, or efficiency. Cumulative Average-Time Learning Model A learning curve model in which the cumulative average time per unit declines by a constant percentage each time the cumulative quantity of units produced is doubled Cumulative distributions The probability that a random variable will be found at a value less than or equal to a given number Customer satisfaction A measure of the extent to which customers are satisfied with the products and related services they received from a supplier. Cycle time The total elapsed time to move a unit of work from the beginning to the end of a physical process, as defined by the producer and the customer. Cyclicality Repetition of up (peaks) or down movements (troughs) that follow or counteract a business cycle that can last several years Data Management The management, including cleaning and storage, of collected data. Data Mining the process of discovering patterns in large data sets; performed on big data to decipher patterns from these large databases Data Set A collection of related data records on a storage device. Davenport Kim Three Stage Model A decision making model developed by Thomas Davenport and Jinho Kim that consists of three stages: framing the problem, solving the problem, and communicating results Dependent Variable The variable whose value depends on one or more variables in the equation; typically the cost or activity to be predicted Detractor A category of customer used in the calculation of the Net Promoter Score that indicates an unhappy customer. Discrete Data Data that can only take on whole values and has clear boundaries Double Blind Study A study performed where neither the treatment allocator nor the participant knows which group the participant is in Economic Value Added (EVA) Net income (after taxes) earned in excess of the amount of net income required to earn the company's cost of capital. Epidemiology study of the incidence, distribution and possible control of diseases and other factors relating to health Event An outcome that occurs Experience Curve A curve that shows the decline in cost per unit in various business functions of the value chain as the amount of these activities increases Heteroscedasticity A regression in which the variances in y for the values of x are not equal Histogram A graph that displays continuous data. This type of graph has vertical bars that show the counts or numbers in each range of data. Homoscedasticity A regression in which the variances in y for the values of x are equal or close to equal Hypothesis A proposed explanation used as a starting point for future examination Impact (RBM stage) last step when applying results-based management is to study the long-term effects that the output will have (economic, environmental, cultural, or political change) Incidence measures the number of new cases that arise in a population over the course of a designated time period Incremental Unit-Time Learning Model A learning curve model in which the incremental unit time (the time needed to produce the last unit) declines by a constant percentage each time the cumulative quantity of units produced is doubled Independent Variable The variable presumed to influence another variable (dependent variable); typically it is the level of activity or cost driver Information Bias A prejudice in the data that results when either the respondent or the interviewer has an agenda and is not presenting impartial questions or responding with truly honest responses, respectively Input (RBM stage) the first step of RBM is to define the resources, human or financial, used by the RBM system (people, funds, information) Interquartile range The difference, in value, between the bottom and top 25 percent of the sample or population Interval Data Data that is ordered within a range and with each data point being an equal interval apart Irregularity One-time deviations from expectations caused by unforeseen circumstances such as war, natural disasters, poor weather, labor strikes, single-occurrence company- specific surprises or macroeconomic shocks Item Response Theory (IRT) model of designing, analyzing and scoring tests Key Performance Indicator (KPI) A performance measurement that organizations use to quantify their level of success. Laspeyres Index a comparison of the same quantity of goods with the same weight over a period of time Line graph A graph that illustrates relationships between two changing variables with a line or curve that connects a series of successive data points Lower limit control The minimum value on a control chart that a process should not exceed Mean An average, calculated by adding a series of elements in a data set together and dividing by the total number in the series Measurement Bias A prejudice in the data that results when the sample is not representative of the population being tested Median The value or quantity lying at the midpoint of a frequency distribution Multicollinearity A multiple regression equation is flawed because two variables thought to be independent are actually correlated to be independent Multiple Linear Regression A statistical method used to model the relationship between one dependent (or response) variable and two or more independent (or explanatory) variables by fitting a linear equation to observed data Multiplication Principle When the probabilities of multiple events are multiplied together to determine the likelihood of all of those events occurring Mutually exclusive events When two or more events are not able to occur at the same time Net Promoter Score A management tool designed to collect data indicating the relative loyalty of customers and their willingness to recommend a company's products or services. Nominal Data Sometimes called categorical data or qualitative data, this data type is used to label subjects or data by name Non parametric test A test that does not assume there to be a structure (may be a normal distribution) to the population. Norm-referenced test compare an individual to other individuals Normal distribution data tending to occur around a central value with no bias right or left Null hypothesis The argument that there is no difference between two samples or that a sample has not changed over time Omission Error An error because something (for example, data or survey response) is missing. Operating Income Earnings before Interest and Taxes. Ordinal Data Data that places data objects into an order according to some quality with higher order indicating more of that quality Outcome (RBM stage) the short-term effect that the outputs will have (greater efficiency, more viability, better decision making, social action, or changed public opinion) Outlier An observation point that is significantly distant from the other observations in the dataset Output (RBM stage) third step when the outputs have been created by the RBM activities (goods and services, publications, systems, evaluations, skills changes) Paasche Index calculates the difference over time between the weighted totals of the qualities purchased at each time Parametric test A test that assumes there is a structure (maybe a normal distribution) to the population, often appearing when mean or standard deviation are important. Passive A category of customer used in the calculation of the Net Promoter Score that indicates an enthusiastic and satisfied but apathetic customer. Percentile the percent of the population that falls below a certain value Permutation The number of different ordered possibilities for a certain situation Prevalence measures the number cases of a particular disease that exist in a population Probability The chance of an event occurring Probability density function Often used to represent probabilities of continuous data, a probability density function (pdf) gives the probability that a continuous random variable is equal to the area below it Probability distributions A set of probabilities that are attached to the different possible outcomes in a survey, experiment, or procedure Probability mass function Often used to represent probabilities of discrete data, a probability mass function (pmf) gives the probability that a discrete random variable is exactly equal to some value Promoter A category of customer used in the calculation of the Net Promoter Score that indicates a loyal and enthusiastic customer. Proportion a ratio in which a part of a group is compared to the whole group R-squared The measure of the "goodness of fit" of the regression line and the percentage of variation in the dependent variable that is explained by the independent variable Random Errors Errors in measurement caused by unpredictable statistical fluctuations Random Variation The variability of a process which might be caused by irregular fluctuations due to chance that cannot be anticipated, detected, or eliminated Range The difference between the minimum and maximum value in a given measurable set Rate measure of an event occurring over a period of time Ratio measures one quantity in relation to another quantity Ratio Data Similar to interval data in that the data that is ordered within a range and with each data point being an equal interval apart, also has a natural zero point which indicates none of the given quality. Regression Analysis A statistical analysis tool that quantifies the relationship between a dependent variable and one or more independent variables Relational Database A database structured to recognize relations among stored items of information. Reliable Data Data that is consistent and repeatable Results-base Management (RBM) a management strategy that uses results as the central measurement of performance Return on Investment (ROI) The ratio of income earned on the investment to the investment made to earn that income. Run chart A line chart that shows performance measurements over time; run charts help to uncover trends or aberrations in processes Sampling with replacement When a piece of the population can be selected more than once Sampling without replacement When a piece of the population cannot be selected more than once Scatter diagram A graphic that uses dots to show relationships or correlations between variables Significance level A number that is used as the cutoff for how statistically meaningful a probability, equal to or more extreme than what was observed, is Simple Composite Index created when a researcher gathers data from many different sources without weighing any data more significantly than any other data Simple Index Number shows the change in price or quantity of a single good or service over time Simple Linear Regression A form of regression analysis with only one independent variable Specification limits The area, on either side of the centerline, or mean, of data plotted on a control chart that meets the customer's requirements for a product or service. This area may be greater than or less than the area defined by the control limits Standard deviation The square root of the variance, a measure of how spread out the numbers are Standard Error (SE) of Estimate The "average" deviation of the data points from the regression line or curve Standard score Also Z-scores, measure the distance from a piece of data from the mean compared to the entire population; method to compare two data sets together with different scales. Statistics The science that deals with the interpretation of numerical facts or data through theories of probability. Also, the numerical facts or data themselves. Systematic Errors Errors in measurement that are constant within a data set, sometimes caused by faulty equipment or bias test statistic One value used to test the hypothesis, it is a numerical summary of the data set The Result Chain 1) Resources - inputs and activities 2) Results - outputs then outcomes then impact Time Series Analysis Regression analysis that uses time as the independent variable Trend In data analysis, a general slope upward or downward over a long period of time Trial An experiment, a test of the performance or qualities of something or someone Triple Blind Study A study performed where neither the treatment allocator nor the participant nor the response gatherer knows which group the participant is in True Score Model average score an individual would achieve if he or she were to take the test infinite times; observed score is the true score plus random error Upper control limit The maximum value on a control chart that a process should not exceed Valid Data Data resulting from a test that accurately measures what it is intended to measure Variance The average of the squared differences from the mean of the related sample Weighted Composite Index created when a researcher applies more weight to certain goods or services than others as they are calculating the index number Z-score A statistical measure that indicates the number of standard deviations a data point is from its mean Pareto chart A bar chart that sorts data into categories, then prioritizes those categories to help project teams identify the most significant factors or the biggest contributors to problems. 80/20 rule states that 80% of quality management problems are the result of a small number - about 20% - of causes expected value a random variable is intuitively the long-run average value of repetitions of the experiment it represents cohort study A study that observes and follows people moving forward in time from the time of their entry into the study. linear programming A mathematical tool used to optimize a function (the objective function) subject to various constraints, all of which are linear. Often used to find the combination of products that will maximize profits or minimize costs. correlation The extent or degree of statistical association among two or more variables. response bias This misuse occurs when the respondents to a survey say what they believe the questioner wants to hear. This bias can occur as a result of the wording of a question. Association and causality This statistical misuse occurs when a researcher notices a relationship between two variables and assumes that one variable is the cause of the other. In reality, these variables might both be caused by a separate variable. In this case, they would merely be correlated, which means they show up together. Or there might be no relationship at all. operationalization refers to the development of specific research procedures that allow for observation and measurement of abstract concepts conscious bias occurs when the surveyor is actively seeking a certain response to support his or her theory or cause Bayes' Theorem A formula that calculates conditional probabilities, important in understanding how new information affects the probabilities of different outcomes. conditional probability the probability of an event occurring given that another event has occurred Chi-square test any statistical hypothesis test in which the sampling distribution of the test statistic is a chi-square distribution when the null hypothesis is true Plan Do Check Act Cycle A four-step method that practitioners use to create plans to solve a problem (Plan), run an experiment to see if the plan will work (Do), check the experiment results (Check), and implement changes to processes or policies (Act) SIPOC diagram A diagram that defines the boundaries of a process and shows how its Suppliers, Inputs, Processes, Outputs, and Customers affect process quality. Ishikawa - 7 Basic Tools of Quality 1) Run Chart 2) Check sheet 3) Cause and effect diagram (fishbone diagram) 4) Histogram 5) Flow Chart 6) Scatter Diagram 7) Pareto chart Six Sigma A highly disciplined, data-driven approach that uses statistical analysis to measure and improve a company's operational performance by identifying and eliminating defects in manufacturing and service processes; the term itself is commonly defined as 3.4 defects per million opportunities. lean operations Popularized by Six Sigma, business practices that use as little time, inventory, supplies and work as possible to create a dependable product or service. The less that is used, the less waste occurs, and the more money the business saves. Accuracy is also very important in POS (Point of Sale) systems, and the most accurate systems produce products and services without flaws, so nothing needs to be thrown away. International Organization for Standardization (ISO) Established a certification program that guarantees that an organization is dedicated to quality concepts and is continually working to ensure that it is producing highest level of quality possible. The certification shows that an organization has a quality management system in place to monitor and control quality issues and is continuing to meet the needs of customers and stakeholders with high-quality products and services.