Data-Driven Decision Making (C207) Questions With Complete Solutions

Analytics correct answer: "Turning information into insight and developing conclusive facet-based strategies to gain a competitive edge." Encompasses: - Implies the analysis of very large data sets. - Statistics of the study of data analysis. - Management science or the study of model building, optimization, and decision making. Descriptive (Diagnostic) Analytics correct answer: What happened in the past? Graphical Analysis: - Histogram - Run chart - Scatter diagram - Pareto chart Discover of Patterns: - Sums - Averages - Percentages Ex: The mean math score of High School students. Predictive Analytics correct answer: Techniques that use models constructed from past data to predict the future or ascertain the impact of one variable on another. Models: - Time Series Analysis (trend) - Regression - Statistical Quality Control Ex: New car sales are projected to decrease by 3% in the new year. Prescriptive Analytics correct answer: Decision models that indicate the best course of action to take. Optimization Models: - Linear Programming Decision Analysis: - Decision Tree Ex: A builder elects to build fewer homes and more apartments based on the risk of rising interest rates. Big Data correct answer: Refers to both structured and unstructured data in large volumes. Analytics is used to discover and communicate meaningful patterns in ______ ______. Analysis of ______ ______ requires a system of organization. Models of Quantitative Decision Makin correct answer: The Davenport-Kim three-stage model maps out a 3-stage approach to quantitative analysis.