Business Analytics Exam- Q & A with
Complete Solutions
Strategic decision - Answer-A decision that involves higher-level issues and that is
concerned with the overall direction of the organization, defining the overall goals and
aspirations for the organization's future.
Tactical decision - Answer-concern how the organization should achieve the goals and
objectives set by its strategy, and they are usually the responsibility of midlevel
management. Tactical decisions usually span a year and thus are revisited annually or
even every six months.
Operational decisions - Answer-affect how the firm is run from day to day; they are the
domain of operations managers, who are the closest to the customer.
Decision making process - Answer-Identify and define the problem.
Determine the criteria that will be used to evaluate alternative solutions.
Determine the set of alternative solutions.
Evaluate the alternatives.
Choose an alternative.
Business analytics - Answer-the scientific process of transforming data into insight for
making better decisions.Footnote Business analytics is used for data-driven or fact-
based decision making, which is often seen as more objective than other alternatives for
decision making.
3 categories of analytics - Answer-descriptive analytics, predictive analytics, and
prescriptive analytics.
Descriptive analytics - Answer-encompasses the set of techniques that describes what
has happened in the past. Examples are data queries, reports, descriptive statistics,
data visualization including data dashboards, some data-mining techniques, and basic
what-if spreadsheet models.
data query - Answer-is a request for information with certain characteristics from a
database. For example, a query to a manufacturing plant's database might be for all
records of shipments to a particular distribution center during the month of March. This
query provides descriptive information about these shipments: the number of
shipments, how much was included in each shipment, the date each shipment was
sent, and so on.
, Data dashboard - Answer-collections of tables, charts, maps, and summary statistics
that are updated as new data become available. Dashboards are used to help
management monitor specific aspects of the company's performance related to their
decision-making responsibilities.
Data mining - Answer-the use of analytical techniques for better understanding patterns
and relationships that exist in large data sets. For example, by analyzing text on social
network platforms like Twitter, data-mining techniques (including cluster analysis and
sentiment analysis) are used by companies to better understand their customers.
Predictive analytics - Answer-consists of techniques that use models constructed from
past data to predict the future or ascertain the impact of one variable on another. For
example, past data on product sales may be used to construct a mathematical model to
predict future sales.
Simulation - Answer-involves the use of probability and statistics to construct a
computer model to study the impact of uncertainty on a decision. For example, banks
often use simulation to model investment and default risk in order to stress-test financial
models.
prescriptive analytics - Answer-Techniques that analyze input data and yield a best
course of action.
rule-based model - Answer-A prescriptive model that is based on a rule or set of rules.
optimization models - Answer-A mathematical model that gives the best decision,
subject to the situation's constraints.
simulation optimization - Answer-The use of probability and statistics to model
uncertainty, combined with optimization techniques, to find good decisions in highly
complex and highly uncertain settings.
decision analysis - Answer-A technique used to develop an optimal strategy when a
decision maker is faced with several decision alternatives and an uncertain set of future
events.
utility theory - Answer-The study of the total worth or relative desirability of a particular
outcome that reflects the decision maker's attitude toward a collection of factors such as
profit, loss, and risk.
big data - Answer-Any set of data that is too large or too complex to be handled by
standard data-processing techniques and typical desktop software.
the example in chapter 2 about Colgate-palmolive company focuses on what? - Answer-
product density
Complete Solutions
Strategic decision - Answer-A decision that involves higher-level issues and that is
concerned with the overall direction of the organization, defining the overall goals and
aspirations for the organization's future.
Tactical decision - Answer-concern how the organization should achieve the goals and
objectives set by its strategy, and they are usually the responsibility of midlevel
management. Tactical decisions usually span a year and thus are revisited annually or
even every six months.
Operational decisions - Answer-affect how the firm is run from day to day; they are the
domain of operations managers, who are the closest to the customer.
Decision making process - Answer-Identify and define the problem.
Determine the criteria that will be used to evaluate alternative solutions.
Determine the set of alternative solutions.
Evaluate the alternatives.
Choose an alternative.
Business analytics - Answer-the scientific process of transforming data into insight for
making better decisions.Footnote Business analytics is used for data-driven or fact-
based decision making, which is often seen as more objective than other alternatives for
decision making.
3 categories of analytics - Answer-descriptive analytics, predictive analytics, and
prescriptive analytics.
Descriptive analytics - Answer-encompasses the set of techniques that describes what
has happened in the past. Examples are data queries, reports, descriptive statistics,
data visualization including data dashboards, some data-mining techniques, and basic
what-if spreadsheet models.
data query - Answer-is a request for information with certain characteristics from a
database. For example, a query to a manufacturing plant's database might be for all
records of shipments to a particular distribution center during the month of March. This
query provides descriptive information about these shipments: the number of
shipments, how much was included in each shipment, the date each shipment was
sent, and so on.
, Data dashboard - Answer-collections of tables, charts, maps, and summary statistics
that are updated as new data become available. Dashboards are used to help
management monitor specific aspects of the company's performance related to their
decision-making responsibilities.
Data mining - Answer-the use of analytical techniques for better understanding patterns
and relationships that exist in large data sets. For example, by analyzing text on social
network platforms like Twitter, data-mining techniques (including cluster analysis and
sentiment analysis) are used by companies to better understand their customers.
Predictive analytics - Answer-consists of techniques that use models constructed from
past data to predict the future or ascertain the impact of one variable on another. For
example, past data on product sales may be used to construct a mathematical model to
predict future sales.
Simulation - Answer-involves the use of probability and statistics to construct a
computer model to study the impact of uncertainty on a decision. For example, banks
often use simulation to model investment and default risk in order to stress-test financial
models.
prescriptive analytics - Answer-Techniques that analyze input data and yield a best
course of action.
rule-based model - Answer-A prescriptive model that is based on a rule or set of rules.
optimization models - Answer-A mathematical model that gives the best decision,
subject to the situation's constraints.
simulation optimization - Answer-The use of probability and statistics to model
uncertainty, combined with optimization techniques, to find good decisions in highly
complex and highly uncertain settings.
decision analysis - Answer-A technique used to develop an optimal strategy when a
decision maker is faced with several decision alternatives and an uncertain set of future
events.
utility theory - Answer-The study of the total worth or relative desirability of a particular
outcome that reflects the decision maker's attitude toward a collection of factors such as
profit, loss, and risk.
big data - Answer-Any set of data that is too large or too complex to be handled by
standard data-processing techniques and typical desktop software.
the example in chapter 2 about Colgate-palmolive company focuses on what? - Answer-
product density
