BQA Midterm Exam Questions and
Answers|Latest Update
Analysis tools: Step 3 Data Analysis
select and apply the most appropriate statistical/analytical methods for each digestible question
develop useful/appropriate robust analysis
Decisions: Step 4 Decision Making
Integrate answers of multiple digestible questions to address a complex decision-making
problem faced by the firm
provide multiple scenarios
iterate step 2 through step 4 if needed
Why do we use Statistical Models? Functional Relation: y= f(x)
Statistical Relation: y1 = b0 + b1x1 +ei
Causes of variation that are based on random reasons that we cannot identify
Prediction VS. reality: the error represents the difference between the actual observation versus
the predicted observation.
, Data Set a collection of data that could consist of items such as marketing survey
responses, historical stock prices, or a collection of measurements related to a manufactured
item
Database a collection of related files containing records on people, places, or things that
are usually arranged in a two-dimensional table where columns correspond to an individual
data item and rows represent individual records
Database Analytics: 3 step process Identify the right values
Data reduction
Data validation
Identifying the Right Values: Step 1 with every increasing amount of data, you should be
ensuring that the data for your models reflects your target demographics and maximizes
profitability
Data Reduction by reducing the amount of data, you focus your analysis on the most
important data points. This reduces the chance that outliers may bias your results.
Answers|Latest Update
Analysis tools: Step 3 Data Analysis
select and apply the most appropriate statistical/analytical methods for each digestible question
develop useful/appropriate robust analysis
Decisions: Step 4 Decision Making
Integrate answers of multiple digestible questions to address a complex decision-making
problem faced by the firm
provide multiple scenarios
iterate step 2 through step 4 if needed
Why do we use Statistical Models? Functional Relation: y= f(x)
Statistical Relation: y1 = b0 + b1x1 +ei
Causes of variation that are based on random reasons that we cannot identify
Prediction VS. reality: the error represents the difference between the actual observation versus
the predicted observation.
, Data Set a collection of data that could consist of items such as marketing survey
responses, historical stock prices, or a collection of measurements related to a manufactured
item
Database a collection of related files containing records on people, places, or things that
are usually arranged in a two-dimensional table where columns correspond to an individual
data item and rows represent individual records
Database Analytics: 3 step process Identify the right values
Data reduction
Data validation
Identifying the Right Values: Step 1 with every increasing amount of data, you should be
ensuring that the data for your models reflects your target demographics and maximizes
profitability
Data Reduction by reducing the amount of data, you focus your analysis on the most
important data points. This reduces the chance that outliers may bias your results.
