CGMA BA1 Fundamentals of Business Economics - The informational context of business: data and information Flashcards
What is the difference between quantitative and qualitative data?
Quantitative data: Data that can be measured, e.g., age, height.
Qualitative data: Data that cannot be measured, e.g., eye color, feelings.
What is discrete data?
Discrete data: Values or observations that are distinct and separate, and can be counted. For example, the number of kittens in a litter.
What is continuous data?
Continuous data: Values or observations that can take any value within a finite or infinite interval. For example, height, weight, temperature.
What is primary data?
Primary data: Data gathered for a specific purpose by the user, such as interviews or questionnaires.
What is secondary data?
Secondary data: Data gathered by someone else for another purpose, such as government statistics or financial reports.
What is random sampling?
Random sampling: Items are selected randomly from the sampling frame until the sample is complete.
What is stratified random sampling?
Stratified random sampling: The sampling frame is divided into non-overlapping groups (strata), and a random sample is taken from each group.
What is systematic sampling?
Systematic sampling: Every nth item in the sampling frame is selected for the sample.
What is cluster sampling?
Cluster sampling: The population is divided into clusters, and a random selection of clusters is chosen. All units within the selected clusters are included in the sample.
What is multistage sampling?
Multistage sampling: A sample is selected in multiple stages. Initially, large groups or clusters are chosen, then smaller samples are selected within each cluster.
What is quota sampling?
Quota sampling: A sample of a specified number of items is taken, but there may be bias in the sample due to the method of selection.
What did Doug Laney identify as the three characteristics of big data?
Doug Laney identified the three V’s of big data:
Volume: The sheer amount of data collected.
Velocity: The speed at which data is streamed in real time.
Variety: The different formats and sources of data.
What is meant by the “Volume” characteristic of big data?
Volume refers to the large amounts of data being collected, driven by sources like social media, transactional systems, and internal company systems.
What is meant by the “Velocity” characteristic of big data?
Velocity refers to the speed at which data is being generated and streamed into the organization, often in real time, such as constant transactions for multinational or e-commerce companies.
What is meant by the “Variety” characteristic of big data?
Variety refers to the many different types and formats of data included in big data, such as structured transaction files, and unstructured data like social media posts, emails, images, and videos.
How do companies use big data for a competitive advantage?
Companies like Netflix use big data to shape customer recommendations and improve streaming. Those who identified the potential of big data early have gained a competitive edge over others.
How can big data be used to increase revenues?
Big data can be used to improve product offerings, reduce costs through process efficiencies, and enhance customer targeting, like how Tesco uses its Clubcard data to target personalized offers.
How does big data help organizations understand their customers?
Big data allows organizations to build a comprehensive picture of customers from multiple sources, including transactions, website visits, social media posts, and emails.
How can big data help organizations save costs?
Big data can be used to identify cost-saving opportunities, such as improving logistics, reducing delivery miles, storage costs, or even detecting fraud in credit card transactions by identifying travel patterns.
Why is it important for big data systems to be fast and efficient?
Systems must be quick and efficient to act on big data, as slow systems present opportunities for competitors to act faster and gain an advantage.
What is required to make the best use of big data?
To make the best use of big data, it must be analyzed and converted into actionable information that can be used to make informed business decisions.
What is Data?
Raw Facts, numbers, or transactions that are not yet processed.
What is information?
Data that has been processed in such a way that is meaningful.
What is Accurate information?
information should be precise enough to allow the appropriate decision to be made
