Applications of Business Analytics 1 Flashcards
These are the facts and figures collected, analyzed, and summarized for presentation and interpretation.
Data
What does Dow mean?
Dow Jones Industrial Index
What is tracked by many financial advisors and investors as an indication of the state of the overall financial markets and the economy in the US?
Dow
It is a characteristic or a quantity of interest that can take on different values.
Variable
Give examples of variables.
Symbols
Industry
Share Price
Volume
It is a set of values corresponding to a set of variables.
Observation
Every problem and opportunity that an organization or individual is concerned with, what?
The impact of the possible values of relevant variables on the business outcome.
How the value of a variable can vary.
It is the difference in a variable measured over observations.
Variation
What is the role of descriptive analytics?
To collect and analyze data to gain a better understanding of variation and its impact on the business setting.
It’s the values of some variables under the direct control of the decision makers.
Direct Variables
Why do values of other variables may fluctuate with uncertainty?
Because of factors outside the direct control of the decision-maker
It is the quantity whose values are not known with certainty.
Random Variable
Uncertain Variable
What can be categorized in several ways on how they are collected and the type collected?
Data
Is it feasible to collect data from population of all elements of interest?
No
It is the data collected from a subset of the population.
Sample
It is a set of individuals who share a characteristic or set of characteristics.
Population data
In most cases, a representative sample can be gathered by what kind of sampling?
Random sampling
What is it called if numeric and arithmetic operations can be performed on data?
Quantitative Data
What is it called if numeric and arithmetic operations can’t be performed on data?
Categorical data
It can be summarized by counting the number of observations or computing the proportions of observations in each category.
Categorical Data
These are collected from several entities at the same time or approximately the same point in time.
Cross-sectional data
These are collected over several time periods.
Time Series Data
These are frequently found in business and economic publications where analysts understand what happened in the past, identify trends over time, and project future levels.
Graphs of time series data
The data necessary to analyze a business problem or opportunity can often be obtained with a/an what?
appropriate study
In this study, a variable of interest is first identifiedthen one or more other variables are identified and controlled or manipulated.
Experimental Study
In this study, there is no attempt to control the variables of interest.
Nonexperimental
Observational studies
What is the most common type of observational study?
Survey
It is the creation of ad hoc analysis to answer specific business questions and forecast possible future financial scenarios.
Financial Analytics
What is the goal of financial analytics?
To shape the strategy for business through reliable, factual insight rather than intuition.
What provides the tools for firms to gain deep knowledge of key trends and take action to improve their performance?
Financial Analytics
What are the mentioned importance of financial analytics?
- It can help companies determine the risks they face, how to enhance and extend the business processes that make them run more effectively, and whether organizations’ investments are focused on the right areas.
- Enable organizations to rethink their strategies for solving problems and supporting business decisions.
- Help companies examine the profitability of products across various sales channels and customers
- Increase visibility regarding the processes that support decision-making
What are the key types of financial analytics?
Predictive sales analytics
Client profitability analytics
Cash-flow analytics
Product profitability analytics
Value-driven analytics
Shareholder value analytics
What may include the use of correlation analysis or past trends to forecast corporate sales?
Predictive sales analytics
What helps differentiate between clients who make money and those who don’t?
Client profitability analytics
What entails assessing each product individually rather than establishing profitability overall at a company?
Product profitability analytics
What employs real-time indicators and may include tools such as regression analysis to predict cash flow?
Cash-flow analytics
What assesses a business’ value drivers or the key “levers” the organization needs to pull to achieve its goals?
Value-driven analytics
What is used to tally the value of a company by examining the returns it provides to shareholders?
Shareholder value analytics
What is used concurrently with profit and revenue analytics?
Shareholder value analytics
What can speed up the creation of reports and present data in an executive dashboard??
Financial Analysis Software
What is the graphical presentation that is easier to read and interpret than a series of spreadsheets with pivot tables?
Executive Dashboard
List the popular financial analysis software programs.
MATLAB
Oracle Financial Analytics
SAP ERP Financial Analytics
SAS Business Analytics
IBM Cognos Finance
NetSuite
It is a modular component of Oracle’s integrated family of business intelligence software applications.
Oracle Financial Analytics
It enables insight into the general ledger, provides visibility into performance against budget and the way staffing costs and employee or supplier performance affects revenue and customer satisfaction.
Oracle Financial Analytics
It helps organizations define financial goals, develop business plans and monitor costs and revenue during execution.
SAP ERP Financial Analytics
It provides an integrated environment for data mining, text mining, simulation, predictive modeling, and descriptive modeling.
SAS Business Anaytics
It is a mathematical model that predicts future outcomes.
Predictive Modeling
It is a mathematical model that describes historical events and the relationships that created them.
Descriptive Modeling
It provides out-of-the-box data analysis capabilities for sales, supply chain procurement, and workforce management functions.
IBM Cognos Finance
It provides financial dashboards, reporting, and analytic functions that allow personal key performance indicators to be motored in real-time.
NetSuite
it allows developers to interface with programs developed in different languages, which makes it possible to haness the unique strengths o f each language for various purposes.
MATLAB
What are the three dimensions of data analytics competency?
Descriptive
Predictive
Prescriptive
It allows finance professionals to look at the past and present facts.
Descriptive
At this level, the use of big data is pretty straightforward.
Descriptive
What patterns can be used to predict what might happen tomorrow?
Historical data (descriptive) and identify payment patterns
At this level, we are approaching the final dimension.
Predictive
It allows for patterns to be identified and be used to predict what might happpen tomorrow.
Predictive
This is the third and most interesting dimension of big data analytics.
Prescriptive
This is where once there is a prediction, there is a necessary action to be done and preempt potential problems before they can occur.
Prescriptive
