Business Analytics and
Decision Making Midterm
with 100% correct answers
(latest update)
Business Analytics - answer the practice of repetitive, methodical
exploration of an organization's raw data through various tools and
techniques with the goal of driving informed decisions
What does the business analytics process start with? - answer A question
= something we need to solve
What are the stages in the business analytics process? - answer 1) Data
2) Information
3) Knowledge
4) Widsom
What is Data? - answer = raw, unorganized facts
- information that is pouring into an organization on a regular basis
What is Information? - answer = potentially valuable concepts based on
data
- organizes data into an understandable format
Information alone doesn't allow you to... - answer make informed
decisions
What is Knowledge? - answer = what we understand based on
information
,- interpret information and draw insight
What is Wisdom? - answer = effective use of knowledge and information
in decision making
= "so what"
What is the ultimate goal of the business analytics process? - answer =
make more informed decisions
What are the three types of Business Analytics? - answer 1) Descriptive
Analytics
2) Predictive Analytics
3) Prescriptive Analytics
* can be used in isolation or in combination based on the business
question being asked/answered
What is Descriptive Analytics? - answer = focuses on the set of
techniques that describe what HAS happened in the past or what is
happening NOW
- backward looking
- uses spreadsheets of data and statistical analysis
In what stage does descriptive analytics fit? - answer = the information
stage
- note quite understanding the information, however data is not
raw/unorganized
What is Predictive Analytics? - answer = focuses on what WILL or
SHOULD happen based on past trends
- uses more specific metrics/measurements than descriptive analytics
What is Predictive Modeling? - answer = run through multiple iterations
and combinations
, - can't do with 100% accuracy
In what stage does predictive analytics fit? - answer = knowledge stage
What is Prescriptive Analytics? - answer = focuses on selecting the best
course of action based on a set of alternatives
- end result is a DECISION
In what stage does prescriptive analytics fit? - answer = wisdom stage
Baseball in terms of the three types of Business Analytics: - answer 1)
Descriptive: "What was the best baseball player last year?"
2) Predictive: "Who will be the best baseball player next year?"
3) Prescriptive: "Of the top free agent short-stops available, who should
we sign?"
See example in notes for DA, PA, and PrA. - answer
What are the sources of Information for Business Analytics? - answer 1)
Statistics and Economics
2) Operations research
3) Artificial Intelligence
4) Database Technologies
Statistics and Economics tools for BA - answer = statistical theories of
pattern recognition, econometric methods, statistical reasoning, and
forecasting techniques
Operations research Tools for BA - answer = Linear programming,
decision theory, and game theory
- understand pattern of outcomes to know which range of behavior you
should exhibit
Decision Making Midterm
with 100% correct answers
(latest update)
Business Analytics - answer the practice of repetitive, methodical
exploration of an organization's raw data through various tools and
techniques with the goal of driving informed decisions
What does the business analytics process start with? - answer A question
= something we need to solve
What are the stages in the business analytics process? - answer 1) Data
2) Information
3) Knowledge
4) Widsom
What is Data? - answer = raw, unorganized facts
- information that is pouring into an organization on a regular basis
What is Information? - answer = potentially valuable concepts based on
data
- organizes data into an understandable format
Information alone doesn't allow you to... - answer make informed
decisions
What is Knowledge? - answer = what we understand based on
information
,- interpret information and draw insight
What is Wisdom? - answer = effective use of knowledge and information
in decision making
= "so what"
What is the ultimate goal of the business analytics process? - answer =
make more informed decisions
What are the three types of Business Analytics? - answer 1) Descriptive
Analytics
2) Predictive Analytics
3) Prescriptive Analytics
* can be used in isolation or in combination based on the business
question being asked/answered
What is Descriptive Analytics? - answer = focuses on the set of
techniques that describe what HAS happened in the past or what is
happening NOW
- backward looking
- uses spreadsheets of data and statistical analysis
In what stage does descriptive analytics fit? - answer = the information
stage
- note quite understanding the information, however data is not
raw/unorganized
What is Predictive Analytics? - answer = focuses on what WILL or
SHOULD happen based on past trends
- uses more specific metrics/measurements than descriptive analytics
What is Predictive Modeling? - answer = run through multiple iterations
and combinations
, - can't do with 100% accuracy
In what stage does predictive analytics fit? - answer = knowledge stage
What is Prescriptive Analytics? - answer = focuses on selecting the best
course of action based on a set of alternatives
- end result is a DECISION
In what stage does prescriptive analytics fit? - answer = wisdom stage
Baseball in terms of the three types of Business Analytics: - answer 1)
Descriptive: "What was the best baseball player last year?"
2) Predictive: "Who will be the best baseball player next year?"
3) Prescriptive: "Of the top free agent short-stops available, who should
we sign?"
See example in notes for DA, PA, and PrA. - answer
What are the sources of Information for Business Analytics? - answer 1)
Statistics and Economics
2) Operations research
3) Artificial Intelligence
4) Database Technologies
Statistics and Economics tools for BA - answer = statistical theories of
pattern recognition, econometric methods, statistical reasoning, and
forecasting techniques
Operations research Tools for BA - answer = Linear programming,
decision theory, and game theory
- understand pattern of outcomes to know which range of behavior you
should exhibit
