PREDICTIVE ANALYTICS CH. 8 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026

PREDICTIVE ANALYTICS CH. 8 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026 What is the job of the data scientist? - Answers To isolate the important patterns in a mass of data so that a firm can take actions to their benefit. What does data mining refer to? - Answers The tools and techniques that are used in the large scale, or big data, arena. Volume, velocity, variety, and value are all characteristics of _____. - Answers big data What is the definition of the first big data characteristic of volume? - Answers The size of the data set. What is the definition of the second big data characteristic of velocity? - Answers The rate at which the data arrives. What is the definition of the third big data characteristic of variety? - Answers The types of data available. What is the definition of the fourth big data characteristic of value? - Answers The valuation of data. Which of these are characteristics of big data? - Answers Value, Volume, Variety What is nonrivalry? - Answers No one person's use diminishes the value another person can extract from the data. Which of the following is correct regarding how data mining differs from standard business forecasting? - Answers [1] Business forecasting forecasts seasonality and trends that are known to exist but data mining looks for those patterns that were not known to exist. [2] Business forecasting uses specific models to estimate and forecast known patterns but data mining extracts valuable information from data. Which of the following are some of the problems forecasters had previously and are currently having with data? - Answers [1] Previously, forecasters were limited by the lack of data collected intelligently by businesses. [2] Previously, forecasters were limited to few pieces of data and only limited observations on that data existed. [3] Today, forecasters are overwhelmed with too much data. What position has a job description that includes making sense of mounds of data by probing the data for patterns? - Answers Data scientist Which of the following are correct when defining the term "data warehouse"? - Answers [1] Collective information on every aspect of what has happened in the past. [2] A firm's central repository of integrated historical data. [3] The "memory" of the firm. Data has waht characteristics? - Answers [1] Data is used and it creates value. [2] Data has the property of "nonrivalry". [3] Data's full value is rarely extracted with its first use. Which of the following would best describe the characteristic of a "data mart"? - Answers [1] It holds information that is specialized and has been grouped or chosen specifically. [2] A subset of a data warehouse. Which of the following are considered part of the definition of data mining? - Answers [1] The analysis of databases, data warehouses, and data marts. [2] Extraction of useful information from large, often unstructured databases. [3] Extraction of knowledge or information from large amounts of data. Data mining has come to be referenced by which of the following terms? - Answers [1] Machine learning [2] Business intelligence, analytics, analysis [3] Data-driven discovery Which of the following would correctly contrast data mining with database management? - Answers [1] Queries are well defined in database management but less structured in data mining. [2] A query in database management would be "find all customers in Atlanta". In data mining it would be "Group all customers with smaller buying habits". [3] Data mining is more forward-looking where database management is more past-focused. Which of the following would be scenarios where data mining could be helpful? - Answers [1] You know the characteristics of potential customers that are likely to continue to purchase your products or services. [2] You know which customers are likely to default on their loans. Which of the following statements are true regarding data mining and business forecasting patterns? - Answers [1] For business forecasting, the expectation is that the data will contain some level of variation where in data mining patterns are not pre-specified. [2] Both measure the certainty or trustworthiness associated with the patterns discovered. [3] In data mining you simultaneously search for different kinds of patterns in parallel, but in business forecasting search for set patterns. Which of the following are the general types of patterns we would like to search for from Schmueli, Patel, and Bruce's taxonomy of analytics tools? - Answers Clustering & Classification Machine learning is a technique used in _____. - Answers data mining What are the two types of prediction variables? - Answers Categorical & Continuous Which of the following are queries that could be used in data mining? - Answers [1] Find all the customers that are likely to purchase recreational vehicle insurance in the next six months. [2] Group all the customers with similar buying habits. Classification tools distinguish between _____. - Answers data classes or concepts Which of the following are categories of Schmueli, Patel, and Bruce's analytics tools or techniques? - Answers Association, Clustering, Prediction Which of the following are true about clustering (segmentation) analysis tools? - Answers [1] Clustering (segmentation) analysis tools group objects based upon maximizing the intraclass similarity and/or minimizing the interclass similarity. [2] Clustering (segmentation) analysis tools are not input by the user. Association rules discovery is _____. - Answers affinity analysis T/F