C207 OA QUESTIONS WITH CORRECT ANSWERS

Simple indexing CORRECT ANSWER Common analytic measure to improve performance. Compares current data with data during a base period. (Price / Price during "Base Period") x 100 i.e. Big Mac was 1.60 in 1968 which is base period. what is index for 2014 if price was 4.80 then? (4.80 / 1.60) * 100 = 300 (means price is 3x greater than base period) Used to identify price fluctuations of supplies, materials, products, etc. Weighted Index CORRECT ANSWER assign a weight to allow for significant differences in the index. Reasons for including analytics in decision-making CORRECT ANSWER decrease cost of data storage increase processing power Descriptive Analytics CORRECT ANSWER using current and past data for strictly descriptive purposes. i.e. car price data shows a 2% increase over the prior year a manager wants to know why sales spiked during the prior quarter Predictive / Inferential Analytics CORRECT ANSWER using current and past data to predict/estimate future. i.e. based on the past 10 years of data for car prices, we predict an increase of 1.5% over the upcoming year. Prescriptive Analytics CORRECT ANSWER using past data to PREDICT or ESTIMATE future in order to optimize operations includes experimental design and optimization to aid in DECISION-MAKING. MANAGERIAL DECISIONS. i.e. based on past data, sales prices for electric cars could increase by 5% if we increased charging stations by 7% Big data CORRECT ANSWER Data so big that it's difficult to process using traditional methods. Stored in a Data Warehouse. Mined to identify patterns and trends Primary purpose is to encourage buying behavior. Enables products to be more tailored to customer base. Improves decision-making. Supports development of next generation products/services. watch for keywords in test options. i.e. company TOTAL sales (just one number) vs all sales invoices Structured / Quantitative Data CORRECT ANSWER Data follows pre-defined formats. i.e. multiple choice answers, addresses, names, stock tickers Unstructured / Qualitative Data CORRECT ANSWER Data doesn't follow pre-defined formats. Usually gets structured by a "theme analysis" i.e. blocks of freeform text, audio, video Continuous Data CORRECT ANSWER Data that can take any value (within a set range) i.e. 3.14159, -189,115.2 a thermometer reads 66.5 degrees Interval Data (data measuring levels) CORRECT ANSWER data is ordered at equal intervals apart and "0" doesn't mean absence of data, just another data point a type of continuous data i.e. date, time, degrees Ratio Data (data measuring levels) CORRECT ANSWER 0 actually means nothing, not just a data point a type of continuous data