Deck 5: Perform the Analysis: Types and Tools of Data Analyses

Question 1

Compilation of the financial statements would be a form of predictive analytics?

Answer 1

False

Question 2

What kind of analytics tool or technique is generally used to perform diagnostic analytics?

A) Variance analysis
B) Vertical analysis
C) Time series
D) Regression

Answer 2

A

Question 3

Which type of question does diagnostic analytics address?

A) What happened?
B) What should we do based on what we expect will happen?
C) Why did it happen?
D) Will it happen in the future?

Answer 3

C

Question 4

What type of analytics addresses questions of "Why did it happen?"?

A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics

Question 5

Optimization is most closely associated with prescriptive analytics.

Question 6

Which analytics tool or technique is generally used in descriptive analytics?

A) Time series
B) Classification
C) Variance analysis
D) Horizontal analytics

Question 7

What type of analytics would predict if a company is expected to go bankrupt?

A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics

Question 8

Classification is most closely associated with diagnostic analytics.

Question 9

"What should we do based on what we expect will happen?" is investigated using Prescriptive Analytics.

Question 10

An adjusted R-squared value of 0 represents no ability of the model to explain the dependent variable.

Question 11

Descriptive Analytics emphasizes "Why something happened?".

Question 12

Diagnostic Analytics emphasizes "What happened?".

Question 13

What is the second step in the AMPS model?

A) Master the Data
B) Manipulate the Data
C) Maintain the Data
D) Mine the Data

Question 14

Which type of question does descriptive analytics address?

A) What happened?
B) What should we do based on what we expect will happen?
C) Why did it happen?
D) Will it happen in the future?

Question 15

What type of analytics would investigate performance different than was expected, such anomalies/outliers?

A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics

Question 16

Which type of question does prescriptive analytics address?

A) What happened?
B) What should we do based on what we expect will happen?
C) Why did it happen?
D) Will it happen in the future?

Question 17

If we wanted to know what level of sales was achieved last quarter at a competitor company, we would perform __________ analytics.

A) descriptive
B) diagnostic
C) predictive
D) prescriptive

Question 18

What type of analytics would include a classification analysis to assess whether the bank should extend a loan?

A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics

Question 19

Predictive Analytics emphasizes "Will something happen in the future?".

Question 20

What type of analytics would primarily use analytics to separate, or classify, a sample into two or more groups or classes?

A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics

Question 21

If p-value of a statistical test >= alpha threshold, you

A) should reject the alternate hypothesis (i.e., significant result).
B) should fail to reject the null hypothesis (i.e., not significant result).
C) accept the null hypothesis.
D) have insufficient evidence to either reject or fail to reject the alternate hypothesis.

Question 22

If p-value of a statistical test is 0.09 and a 90% confidence interval, you

A) should reject the null hypothesis (i.e., significant result).
B) should fail to reject the null hypothesis (i.e., not significant result).
C) accept the alternate hypothesis.
D) have insufficient evidence to either reject or fail to reject the null hypothesis.

Question 23

A z-score tells us how many __________, a data point (or observation), x_i, is from its population mean, μ?

A) standard deviations
B) units
C) standard errors
D) increments

Question 24

If the hypothesized relationship is assumed to not exist, this would be an example of a(n) __________ hypothesis.

A) alternative
B) correct
C) null
D) incorrect

Question 25

A __________ is a characteristic of a population.

A) parameter
B) normal distribution
C) sample
D) descriptive statistics

Question 26

Which distribution is a probability distribution with a low mean and highly skewed to the right?

A) Normal distribution
B) Poisson distribution
C) Level distribution
D) Uniform distribution

Question 27

According to the normal distribution, __________% of the data would fit within 1 standard deviations of the mean.

A) 68
B) 99
C) 95
D) 99.7

Question 28

The probability that a population parameter will fall between two set values is called a __________.

A) parameter
B) confidence interval
C) sample
D) descriptive statistics

Question 29

If p-value of a statistical test is 0.04 and alpha is 0.10, you

A) should reject the null hypothesis (i.e., significant result).
B) should fail to reject the null hypothesis (i.e., not significant result).
C) accept the alternate hypothesis.
D) have insufficient evidence to either reject or fail to reject the null hypothesis.

Question 30

The distribution of hearts within a fair deck of cards would follow the __________.

A) Normal distribution
B) Poisson distribution
C) Level distribution
D) Uniform distribution

Question 31

If an accounts payable transaction has a z-score of 3, with a mean of $20,000 and a standard deviation of $5,000, what is the amount of the related party transaction?

A) $20,000
B) $15,000
C) $25,000
D) $35,000

Question 32

A histogram is used to understand:

A) the basic statistics, including the mean, standard deviation, minimums, and maximums of a data set.
B) the frequency of the data using a display of rectangles with area proportional to the underlying frequency of the data.
C) the relation between specific dependent variable values and independent variable inputs.
D) the probability of a statistical difference in means between either two independent samples or a paired sample through time.

Question 33

Which type of analysis is generally associated with predictive analytics?

A) What-if scenario
B) Fuzzy matching
C) Times series
D) Means, modes, medians, and counts

Question 34

If we run a regression where y (bankruptcy) = f (factors potentially predicting bankruptcy), what is the independent variable?

A) Factors potentially predicting bankruptcy
B) Bankruptcy
C) There are no dependent variables
D) Cannot be determined

Question 35

Albert Einstein's intelligence quotient (IQ) was reported to be 160. If the population mean IQ is 100 and the standard deviation is 15, what is the z-score associated with Albert Einstein's IQ?

A) 160
B) 4
C) 10.666
D) 100

Question 36

According to the normal distribution, __________% of the data would fit within 2 standard deviations of the mean.

A) 68
B) 99
C) 95
D) 99.7

Question 37

A(n) __________ hypothesis is a hypothesis used in hypothesis testing that is opposite of the null hypothesis, or a potential result that the analyst may expect.

A) alternative
B) correct
C) null
D) incorrect

Question 38

A statistic is a characteristic of a __________.

A) parameter
B) population
C) sample
D) correlation

Question 39

If we run a regression where y (bankruptcy) = f (factors potentially predicting bankruptcy), what is the dependent variable?

A) Factors potentially predicting bankruptcy
B) Bankruptcy
C) There are no dependent variables
D) Cannot be determined

Question 40

If p-value of a statistical test is 0.09 and a 95% confidence interval, you

A) should reject the null hypothesis (i.e., significant result).
B) should fail to reject the null hypothesis (i.e., not significant result).
C) accept the alternate hypothesis.
D) have insufficient evidence to either reject or fail to reject the null hypothesis.

Question 41

What tool or technique is used to quantitatively analyze the relationship between and among multiple variables?

A) Cross-tabulations
B) Time series
C) Histograms
D) Descriptive statistics

Question 42

What type of analytics would encompass creating Key Performance Indicators (KPI's) from the information reported in financial statements?

A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics

Question 43

A __________ is a subset of members selected to represent the __________.

A) sample; distribution
B) sample; population
C) population; sample
D) statistic; distribution

Question 44

Which type of analytics will forecast sales?

A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics

Question 45

A t-test is used to understand:

A) the basic statistics, including the mean, standard deviation, minimums, and maximums of a data set.
B) the frequency of the data using a display of rectangles with area proportional to the underlying frequency of the data.
C) the relation between specific dependent variable values and independent variable inputs.
D) the probability of a statistical difference in means between either two independent samples or a paired sample through time.

Question 46

Diagnostic analytics would be more likely to use these tools in its analysis than other types of analytics?

A) Totals, sums, averages, and subtotals
B) Fuzzy matching, Benford's law, variance analysis
C) Forecasting tools, regression, and classification
D) Goal-seek analysis, what-if analysis

Question 47

A correlation is used to understand:

A) the probability of a difference in means between either two independent samples or a paired sample through time.
B) the basic statistics, including the mean, standard deviation, minimums, and maximums of a data set.
C) the frequency of the data using a display of rectangles with area proportional to the underlying frequency of the data.
D) the extent to which variables are related to each other.

Question 48

Which type of analytics will summarize how much the company paid in federal taxes last year?

A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics

Question 49

What is the third step in the AMPS model?

A) Predict the Outcome
B) Prescriptive Analysis
C) Perform the Analysis
D) Predictive Analysis

Question 50

Prescriptive analytics would be more likely to use these tools in its analysis than other types of analytics?

A) Totals, sums, averages, and subtotals
B) Fuzzy matching, Benford's law, variance analysis
C) Forecasting tools, regression, and classification
D) Goal-seek analysis, what-if analysis

Question 51

Which type of analytics will provide insight on whether the company should rent or own its headquarters?

A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics

Question 52

Predictive analytics would be more likely to use these tools in its analysis than other types of analytics?

A) Totals, sums, averages, and subtotals
B) Fuzzy matching, Benford's law, variance analysis
C) Forecasting tools, regression, and classification
D) Goal-seek analysis, what-if analysis

Question 53

Which type of analytics would encompass compiling the financial statements?

A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics

Question 54

A regression is used to understand:

A) the basic statistics, including the mean, standard deviation, minimums, and maximums of a data set.
B) the frequency of the data using a display of rectangles with area proportional to the underlying frequency of the data.
C) the relation between specific dependent variable values and independent variable inputs.
D) the probability of a statistical difference in means between either two independent samples or a paired sample through time.

Question 55

Which type of analytics will work to explain why the average effective tax rate changed?

A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics

Question 56

What is the final step in the AMPS model?

A) Share the Findings.
B) Sharpen the Story.
C) Share the Results.
D) Share the Story.

Question 57

Descriptive analytics would be more likely to use these tools in its analysis than other types of analytics?

A) Totals, sums, averages, and subtotals
B) Fuzzy matching, Benford's law, variance analysis
C) Forecasting tools, regression, and classification
D) Goal-seek analysis, what-if analysis

Question 58

In the AMPS model, what step immediately precedes Performing the Analysis?

A) Master the Data
B) Mine the Data
C) Ask the Question
D) Share the Story