ITIS 1P97 Data Analysis and Business
Modelling study guide solution new
update 2026 exam tips
business analytics - The use of data, information technology, statistical analysis, quantitative
methods, and mathematical or computer-based models to help managers gain improved insight
about their business operations and make better, fact-based decisions.
descriptive analytics - the use of data to understand past and current business performance and
make informed decisions
predictive analytics - predict the future by examining historical data, detecting patterns or
relationships in these data, and then extrapolating these relationships forward in time.
prescriptive analytics - identify the best alternatives to minimize or maximize some objective
what techniques and tools are used for descriptive analytics? - Statistical measures such as
means and standard deviations, probability distributions
what techniques and tools are used for predictive analysis? - Decision analysis and decision
trees
Regression models
Forecasting
Simulation
,what techniques and tools are used for prescriptive analytics - Linear programming
Transportation and assignment models
what is a model - an abstraction or representation of a real system, idea, or object.
Captures the most important features
Can be a written or verbal description, a visual representation, a mathematical formula, or a
spreadsheet
A trader who wants to predict short-term movements in stock prices is likely to use
analytics?
Predictive
prescriptive
Descriptive
Normative - Predictive
You are modeling the expected effect of an increase in the advertising budget on sales of new
cars at your dealership. You are aware that you model will be affected by the local
unemployment rate and a rumored move out of the area by a major employer. In this model,
the independent variable is the
Sales of new cars
Advertising budget
Local unemployment rate
None of the above - Advertising budget
Which of the following is a drawback to models and analytics?
, Models can simulate the passage of a long period of time in a few seconds
The analytics process requires a manager to think rigorously and incisively
Numerous solutions can be developed
Uncertainties can be difficult to assess - Uncertainties can be difficult to assess
what are the benefits of modeling? - Models let us
Compress time
Manipulate the model more easily than the real system and reduce the cost of experimentation
and mistakes
Consider risk
Help us learn about and understand systems
Encourage rigorous thinking
Analyze a large number of solutions
what are some drawbacks to modeling - Can be time-consuming and expensive
Managers must agree to accept results
Data collection can be expensive or impossible
It may be difficult to assess uncertainties
Oversimplification may produce poor results
Common perception that if it is done on a computer, it must be correct
Which of the following characteristics has to be present for a solution to be considered
optimal?
a) It is the best of all solutions
b) All solutions have been checked
Modelling study guide solution new
update 2026 exam tips
business analytics - The use of data, information technology, statistical analysis, quantitative
methods, and mathematical or computer-based models to help managers gain improved insight
about their business operations and make better, fact-based decisions.
descriptive analytics - the use of data to understand past and current business performance and
make informed decisions
predictive analytics - predict the future by examining historical data, detecting patterns or
relationships in these data, and then extrapolating these relationships forward in time.
prescriptive analytics - identify the best alternatives to minimize or maximize some objective
what techniques and tools are used for descriptive analytics? - Statistical measures such as
means and standard deviations, probability distributions
what techniques and tools are used for predictive analysis? - Decision analysis and decision
trees
Regression models
Forecasting
Simulation
,what techniques and tools are used for prescriptive analytics - Linear programming
Transportation and assignment models
what is a model - an abstraction or representation of a real system, idea, or object.
Captures the most important features
Can be a written or verbal description, a visual representation, a mathematical formula, or a
spreadsheet
A trader who wants to predict short-term movements in stock prices is likely to use
analytics?
Predictive
prescriptive
Descriptive
Normative - Predictive
You are modeling the expected effect of an increase in the advertising budget on sales of new
cars at your dealership. You are aware that you model will be affected by the local
unemployment rate and a rumored move out of the area by a major employer. In this model,
the independent variable is the
Sales of new cars
Advertising budget
Local unemployment rate
None of the above - Advertising budget
Which of the following is a drawback to models and analytics?
, Models can simulate the passage of a long period of time in a few seconds
The analytics process requires a manager to think rigorously and incisively
Numerous solutions can be developed
Uncertainties can be difficult to assess - Uncertainties can be difficult to assess
what are the benefits of modeling? - Models let us
Compress time
Manipulate the model more easily than the real system and reduce the cost of experimentation
and mistakes
Consider risk
Help us learn about and understand systems
Encourage rigorous thinking
Analyze a large number of solutions
what are some drawbacks to modeling - Can be time-consuming and expensive
Managers must agree to accept results
Data collection can be expensive or impossible
It may be difficult to assess uncertainties
Oversimplification may produce poor results
Common perception that if it is done on a computer, it must be correct
Which of the following characteristics has to be present for a solution to be considered
optimal?
a) It is the best of all solutions
b) All solutions have been checked
