Question 1

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

Accepted Answer

Cross-tabulations are used to quantitatively analyze the relationship between and among multiple variables by displaying the multivariate distribution of data variables in a matrix format, allowing for the observation of the relationship between them.

Question 2

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

Accepted Answer

The answer of What type of analytics would encompass creating...

Question 3

A __________ is a subset of members selected to represent the __________.
A) sample; distribution
B) sample; population
C) population; sample
D) statistic; distribution

Accepted Answer

A sample is a subset of members selected from a larger group, which is referred to as the population. The purpose of a sample is to make inferences about the population.

Question 4

Which type of analytics will forecast sales?
A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics

Accepted Answer

Predictive analytics uses historical data to forecast future events, such as sales forecasts. It involves techniques like statistical modeling and machine learning to predict future outcomes based on past data.

Question 5

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.

Accepted Answer

A t-test specifically assesses the probability of a significant difference in the means between two groups (either independent or related/paired), making it a tool for hypothesis testing regarding mean differences, not for assessing basic statistics, data frequency, or specific variable relations.

Question 6

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

Accepted Answer

Diagnostic analytics often involves techniques like fuzzy matching (to handle data that is not exactly the same but similar), Benford's law (to detect anomalies), and variance analysis (to understand deviations from expected performance), which are more specific to understanding the reasons behind certain outcomes or trends.

Question 7

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.

Accepted Answer

Correlation is a statistical technique used to determine the extent to which two variables are related. It measures the strength and direction of a relationship between two variables, indicating how changes in one variable are associated with changes in another.

Question 8

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

Accepted Answer

Descriptive analytics focuses on summarizing historical data, which includes summarizing how much a company paid in federal taxes last year.

Question 9

What is the third step in the AMPS model?
A) Predict the Outcome
B) Prescriptive Analysis
C) Perform the Analysis
D) Predictive Analysis

Accepted Answer

The third step in the AMPS (Assessment, Modeling, Performance, and Synthesis) model is "Perform the Analysis." This step involves conducting the actual analysis based on the model and data prepared in the earlier steps.

Question 10

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

Accepted Answer

Prescriptive analytics focuses on recommending actions and uses tools like goal-seek and what-if analysis to determine the best course of action based on different scenarios.

Question 11

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

Accepted Answer

Prescriptive analytics is focused on providing recommendations for actions to achieve specific goals or solve problems, such as deciding whether to rent or own company headquarters based on various data inputs and forecasts.

Question 12

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

Accepted Answer

Predictive analytics focuses on forecasting future outcomes based on historical data, and tools like forecasting, regression, and classification are essential for making such predictions.

Question 13

Which type of analytics would encompass compiling the financial statements?
A) Descriptive analytics
B) Diagnostic analytics
C) Predictive analytics
D) Prescriptive analytics

Accepted Answer

Compiling financial statements involves summarizing past financial transactions and statuses, which falls under descriptive analytics. This type of analytics focuses on summarizing and explaining what has happened in the past.

Question 14

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.

Accepted Answer

Regression analysis is primarily used to model the relationship between a dependent variable and one or more independent variables. This helps in understanding how the value of the dependent variable changes when any one of the independent variables is varied, while the other independent variables are held fixed.

Question 15

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

Accepted Answer

Diagnostic analytics is used to determine why something happened, which in this case would be applied to understand the reasons behind changes in the average effective tax rate.

Question 16

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.

Accepted Answer

The final step in the AMPS model is "Share the Story," which involves communicating the insights and outcomes of the project to the relevant stakeholders in a compelling and understandable way.

Question 17

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

Accepted Answer

Descriptive analytics focuses on summarizing historical data to understand what has happened in the past. Tools like totals, sums, averages, and subtotals are commonly used in descriptive analytics to provide insights into past performance.

Question 18

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

Accepted Answer

In the AMPS model, "Master the Data" is the step that immediately precedes "Performing the Analysis."

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

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

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

A is a subset of members selected to represent the .

Which type of analytics will forecast sales?

A t-test is used to understand:

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

A correlation is used to understand:

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

What is the third step in the AMPS model?

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

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

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

Which type of analytics would encompass compiling the financial statements?

A regression is used to understand:

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

What is the final step in the AMPS model?

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

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