Chapter 1; Using DA to ask and answer questions

Question 1

What is the AMPS model?

Answer 1

Framework that provides steps in data analytics process:

1. Ask the question
2. Master the data
3. Perform the analysis
4. Share the story

Question 2

Step 1 of AMPS model:

How should questions be formed to strengthen critical thinking?

Answer 2

Asking questions that could be solved using data provides framework to solve issues in a specific, detailed manner:

How can we improve snack sales in Target’s store #458 in Fayettesville, Arkansas

Question 3

Questions that would be answered with descriptive analysis include:

Answer 3

“What happened?”

Examples:

Did return on assets improve or decline last month?

Which product is the most profitable one?

How long have accounts receivable been past due?

Question 4

Questions that would be answered using diagnostic analysis include:

Answer 4

“why did it happen?”

“What is the root issue of what occured?”

examples:

Why did overall tax increase even though net income fell?

Question 5

Questions that would be answered using predictive analysis include:

Answer 5

“Will it happen in the future?”

“What is the probability this will happen?”

Question 6

Questions that would be answered using prescriptive analytics include:

Answer 6

“What should we do based on what we expect to happen?”

“How do we optimize performance?”

Question 7

Bloom’s Taxonomy Provides a framwork for critical thinking skills.

Describe the framework and explain where accountants might excel more than machines.

Answer 7

Question 8

Master the data:

What roles do accountants play when considering appropriate data?

Answer 8

• Ensure data integrity₁
• Understand trade offs of well organized and not well organized data
• Understand the traits of data

_{1 high levels of data integrity include accuracy, validity, and consistency over time}