Chapter 1-5

Question 1

The facts and figures collected, analyzed, and summarized for presentation and interpretation.

Answer 1

Data

Question 2

Managers’ responsibility:

Answer 2

To make strategic, tactical, or operational decisions.

Question 3

Involve higher-level issues concerned with the overall direction of the organization; Define the organization’s overall goals and aspirations for the future.

Answer 3

Strategic decisions

Question 4

Concern how the organization should achieve the goals and objectives set by its strategy. ;Are usually the responsibility of midlevel management.

Answer 4

Tactical Decisions

Question 5

Affect how the firm is run from day to day.; Are the domain of operations managers, who are the closest to the customer.

Answer 5

Operational Decisions

Question 6

Decision making can be defined as the following process:

Answer 6

1. Identify and define the problem.
2. Determine the criteria that will be used to evaluate alternative solutions.
3. Determine the set of alternative solutions.
4. Evaluate the alternatives.
5. Choose an alternative.

Question 7

Common approaches to making decisions include:

Answer 7

1. Tradition.
2. Intuition.
3. Rules of thumb.
4. Using the relevant data available.

Question 8

Scientific process of transforming data into insight for making better decisions.

Answer 8

Business Analytics

Question 9

Used for data-driven or fact-based decision making, which is often seen as more objective than other alternatives for decision making.

Answer 9

Business Analytics

Question 10

Encompasses the set of techniques that describes what has happened in the past

Answer 10

Descriptive analytics

Question 11

A request for information with certain characteristics from a database.

Answer 11

Data Query

Question 12

Collections of tables, charts, maps, and summary statistics that are updated as new data become available.

Answer 12

Data Dashboards

Question 13

The use of analytical techniques for better understanding patterns and relationships that exist in large data sets.

Answer 13

Data Mining

Question 14

The use of analytical techniques for better understanding patterns and relationships that exist in large data sets.

Answer 14

Data Mining

Question 15

Consists of techniques that use models constructed from past data to predict the future or ascertain the impact of one variable on another.

Answer 15

Predictive Analysis

Question 16

involves the use of probability and statistics to construct a computer model to study the impact of uncertainty on a decision.

Answer 16

Simulation

Question 18

A characteristic or a quantity of interest that can take on different values.

Answer 18

Variable

Question 19

A set of values corresponding to a set of variables.

Answer 19

Observation

Question 20

The difference in a variable measured over observations.

Answer 20

Variation

Question 21

A quantity whose values are not known with certainty.

Answer 21

Random variable/uncertain variable

Question 22

Symbol, Industry, Share Price, and Volume

Answer 22

Variable

Question 23

Time, customers, items, etc.

Answer 23

Variation

Question 24

All elements of interest

Answer 24

Population

Question 25

Subset of the population.

Answer 25

Sample

Question 26

A sampling method to gather a representative sample of the population data.

Answer 26

Random sampling

Question 27

Data on which numeric and arithmetic operations, such as addition, subtraction, multiplication, and division, can be performed.

Answer 27

Quantitative data

Question 28

Data on which arithmetic operations cannot be performed.

Answer 28

Categorical Data

Question 29

Scales of measurement include:

Answer 29

- Nominal - Ordinal - Interval - Ratio

Question 30

The scale determines the amount of information contained in the data.

Answer 30

Scales of measurement

Question 31

The scale indicates the data summarization and statistical analyses that are most appropriate.

Answer 31

Scales of measurement

Question 32

Data are labels or names used to identify an attribute of the element.

Answer 32

Nominal

Question 33

A nonnumeric label or numeric code may be used.

Answer 33

Nominal

Question 34

1: Farley, 2: Keenan, 3: Zahm, and so on).

Answer 34

Numeric Code

Question 35

Farley, Keenan, Zahm, Breen-Phillips, and so on.

Answer 35

Nonnumeric Code

Question 36

The data have the properties of nominal data and the order or rank of the data is meaningful. A nonnumeric label or numeric code may be used.

Answer 36

Ordinal

Question 37

The data have the properties of ordinal data, and the interval between observations is expressed in terms of a fixed unit of measure. are always numeric.

Answer 37

Interval data

Question 38

The data have all the properties of interval data and the ratio of two values is meaningful.

Answer 38

Ratio

Question 39

Variables such as distance, height, weight, and time use the ratio scale.

Answer 39

Ratio

Question 40

This scale must contain a zero value that indicates that nothing exists for the variable at the zero point.

Answer 40

Ratio

Question 41

Data collected from several entities at the same, or approximately the same, point in time.

Answer 41

Cross-sectional data

Question 42

Data collected over several time periods.

Answer 42

Time series data

Question 43

A variable of interest is first identified. Then one or more other variables are identified and controlled or manipulated so that data can be obtained about how they influence the variable of interest.

Answer 43

Experimental study

Question 44

Makes no attempt to control the variables of interest. A survey is perhaps the most common type of observational study.

Answer 44

Nonexperimental study or observational study

Question 45

Existing Sources

Answer 45

- Within a firm - Business database services - Government agencies - Industry associations - Special-interest organizations - - Admission Council - Collect your own

Question 46

Average value for a variable.

Answer 46

Mean

Question 47

Value in the middle when the data are arranged in ascending order.

Answer 47

Median

Question 48

Value that occurs most frequently in a data set.

Answer 48

Mode

Question 49

The data are spread fairly evenly

Answer 49

Mean

Question 50

The data set has an outlier

Answer 50

Median

Question 51

The data involve a subject in which many data points of one value are important, such as election results.

Answer 51

Mode

Question 52

- A measure of location that is calculated by finding the nth root of the product of n values. - Used in analyzing growth rates in financial data

Answer 52

Geometiric Mean

Question 53

A summary of data that shows the number (frequency) of observations in each of several nonoverlapping classes.

Answer 53

Frequency Distribution

Question 54

A tabular summary of data showing the relative frequency for each bin.

Answer 54

Relative frequency distribution

Question 55

is used to provide estimates of the relative likelihoods of different values of a random variable.

Answer 55

Percent Frequency Distribution

Question 56

are formed by specifying the ranges used to group the data.

Answer 56

Bins

Question 57

Three steps necessary to define the classes for a frequency distribution with quantitative data:

Answer 57

1. Determine the number of nonoverlapping bins. 2. Determine the width of each bin. 3. Determine the bin limits.

Question 58

Formula of Bin

Answer 58

Largest data value - smallest data value / number of bins

Question 59

A common graphical presentation of quantitative data.

Answer 59

Histogram

Question 60

Constructed by placing the variable of interest on the horizontal axis and the selected frequency measure (absolute frequency, relative frequency, or percent frequency) on the vertical axis.

Answer 60

Histogram

Question 61

- Lack of symmetry. - is an important characteristic of the shape of a distribution.

Answer 61

Skewness

Question 62

can be found by subtracting the smallest value from the largest value in a data set.

Answer 62

Range

Question 63

is a measure of variability that utilizes all the data.

Answer 63

Variance

Question 64

It is based on the deviation about the mean, which is the difference between the value of each observation (xi) and the mean.

Answer 64

Variance

Question 65

is the positive square root of the variance.

Answer 65

Standard Deviation

Question 66

is a descriptive statistic that indicates how large the standard deviation is relative to the mean. Expressed as a percentage.

Answer 66

coefficient of variation

Question 67

When the data is divided into four equal parts: - Each part contains approximately 25% of the observations. - Division points are referred to as quartiles.

Answer 67

Quartiles

Question 68

The difference between the third and first quartiles is often referred to as the ___________________.

Answer 68

interquartile range, or IQR

Question 69

measures the relative location of a value in the data set.

Answer 69

Z-score

Question 70

Helps to determine how far a particular value is from the mean relative to the data set’s standard deviation.

Answer 70

Z-score

Question 71

Often called the standardized value.

Answer 71

Z-score

Question 72

can be used to determine the percentage of data values that are within a specified number of standard deviations of the mean.

Answer 72

empirical rule

Question 73

is a graphical summary of the distribution of data. Developed from the quartiles for a data set.

Answer 73

box plot

Question 74

Extreme values in a data set.

Answer 74

Outliers

Question 75

is a descriptive measure of the linear association between two variables

Answer 75

Covariance