SOLUTION
MANUAL
Data Analytics for Accounting, 3rd Ed
by Vernon Richardson, Chapters 1 - 9
1
,2
,Chapter 1: Data Analytics for Accounting and Identifying the Questions Chapter 2:
Mastering the Data
Chapter 3: Performing the Test Plan and Analyzing the Results Chapter 4:
Communicating Results and Visualizations
Chapter 5: The Modern Accounting Environment Chapter 6:
Audit Data Analytics
Chapter 7: Managerial Analytics
Chapter 8: Financial Statement Analytics Chapter 9: Tax
Analytics
3
, Solutions Manual – Chapter 1
Solutions to Multiple Choice Questions
1. (LO 1-1) Big Data is often described by the four Vs, or
a. volume, velocity, veracity, and variability.
b. volume, velocity, veracity, and variety.
c. volume, volatility, veracity, and variability.
d. variability, velocity, veracity, and variety.
Answer: b
2. LO 1-4) Which data approach attempts to assign each unit in a
population into a small set ofclasses (or groups) where the unit best fits?
a. Regression
b. Similarity matching
c. Co-occurrence grouping
d. Classification
Answer: d
3. (LO 1-4) Which data approach attempts to identify similar
individuals based on data knownabout them?
a. Classification
b. Regression
c. Similarity matching
d. Data reduction
Answer: c
4. (LO 1-4) Which data approach attempts to predict connections between
two data items?
a. Profiling
b. Classification
c. Link prediction
d. Regression
4
MANUAL
Data Analytics for Accounting, 3rd Ed
by Vernon Richardson, Chapters 1 - 9
1
,2
,Chapter 1: Data Analytics for Accounting and Identifying the Questions Chapter 2:
Mastering the Data
Chapter 3: Performing the Test Plan and Analyzing the Results Chapter 4:
Communicating Results and Visualizations
Chapter 5: The Modern Accounting Environment Chapter 6:
Audit Data Analytics
Chapter 7: Managerial Analytics
Chapter 8: Financial Statement Analytics Chapter 9: Tax
Analytics
3
, Solutions Manual – Chapter 1
Solutions to Multiple Choice Questions
1. (LO 1-1) Big Data is often described by the four Vs, or
a. volume, velocity, veracity, and variability.
b. volume, velocity, veracity, and variety.
c. volume, volatility, veracity, and variability.
d. variability, velocity, veracity, and variety.
Answer: b
2. LO 1-4) Which data approach attempts to assign each unit in a
population into a small set ofclasses (or groups) where the unit best fits?
a. Regression
b. Similarity matching
c. Co-occurrence grouping
d. Classification
Answer: d
3. (LO 1-4) Which data approach attempts to identify similar
individuals based on data knownabout them?
a. Classification
b. Regression
c. Similarity matching
d. Data reduction
Answer: c
4. (LO 1-4) Which data approach attempts to predict connections between
two data items?
a. Profiling
b. Classification
c. Link prediction
d. Regression
4
