2. Sources of Data and Analysing Data Flashcards
Define:
a) primary data
b) secondary data
c) continuous data
d) discrete data
a) gathered for only the purpose of your own research, first-hand.
b) gathered by someone else relating to your research
c) data that can be at any point on a scale, not definitive.
d) data that has distinctive values.
Define and explain the six sampling methods.
- Random: equal chance of being selected.
- Systematic: equal interval between selected participants.
- Stratified: representative of groups within population.
- Multi-step: random selection of a group within a group within a group etc.
- Cluster: same as above but done in clusters.
- Quota: stratified but less random
Define big data.
Explain the 4Vs.
Big data is an extremely large collection of data that is analysed to reveal patterns and trends.
4Vs:
- Volume: alot of it
- Variety: not only financial information
- Velocity: has to be processed quickly to be useful
- Veracity: needs to be reliable.
Why is big data relevant to management accountants? (4)
How is big data used? (5)
Useful to management accounts to:
- Understand customer needs/preferences
- Improve forecasting
- Automate business processes
- Performance measurement
Used to…
- Monitor social media to see customer needs/preferences
- Monitor data to look at usage and wear to improve forecasting.
- Use customer activity to target offers
- Social media to determine popularity
- Phone data to monitor behaviour.
What are the risks associated with big data? (5)
- Cost
- Availability of skills
- Technical difficulties
- Poor veracity leading to poor conclusions
- Security of data
What are the signs for the following:
- Standard deviation
- Mean (2)
Standard deviation: sigma σ
Mean: mμ or x̅
What is the coefficient of variation?
Measurement to determine the size of risk taken in comparison to return on investment
What are the characteristics of standard normal distribution? (4)
- standard deviation of 1
- mean of 0
- mean central
- bell curve
