Data and Analytics Flashcards
What is critical thinking?
Disciplined reasoning that involves logically forming conclusions, judgments, or inferences from facts.
Why is critical thinking important for finance professionals?
It is a core skill essential for performing data analytics projects.
What mnemonic can be used to remember the key elements of critical thinking in data analysis?
SPARKS
What does the ‘S’ in SPARKS stand for?
Stakeholders
What does the ‘P’ in SPARKS represent?
Purpose
What does the ‘A’ in SPARKS signify?
Alternatives
What does the ‘R’ in SPARKS refer to?
Risks
What does the ‘K’ in SPARKS indicate?
Knowledge
What does the ‘S’ in SPARKS mean?
Self-reflection
Who are considered internal stakeholders?
Individuals or groups directly involved in the business’s operations such as managers and employees.
Who are considered external stakeholders?
Individuals or groups outside the business such as investors, creditors, regulators, business partners, or the wider community.
What is the purpose of defining the objectives in a data analytics project?
To ensure the analysis remains focused and achieves specific goals.
What should be identified when recognizing alternatives in data analysis?
Choices about questions to ask, datasets to analyze, types of analysis to perform, and ways to communicate results.
True or False: It is important to identify potential risks from the outset of a data analysis project.
True
What knowledge is vital for conducting a data analysis?
Proficiency with relevant accounting tools and techniques and understanding factors influencing the area being analyzed.
What does self-reflection involve in the context of data analysis?
Considering issues from previous projects and ensuring lessons are learned for future projects.
What are the key steps in preparing for a data analytics project?
- Defining the project objectives
- Framing the problem
- Evaluating the business’s capabilities
- Gathering the specific requirements
- Developing a data analytics strategy
Why is framing the problem important in data analytics?
To define the scope of the work and ensure the analysis meets stakeholders’ expectations.
What should be included in evaluating existing capabilities for data analysis?
- Audit of available data
- Assessment of existing analytics capabilities
- Cost-benefit analysis for additional investments
What ethical considerations must be followed in a data analytics project?
Conformance to the business’s ethical principles regarding data use, analysis methods, and results application.
What is the importance of validating findings in data analysis?
To confirm that the findings are valid, reliable, and free from biases.
Fill in the blank: The analysis must consider the _______ to ensure it meets the objectives.
[needs of stakeholders]
What are the four key terms in the decision-making process hierarchy?
Data, Information, Knowledge, Insights
What does ‘Data’ refer to in the decision-making process?
Raw unprocessed facts or objects, such as numbers, words, symbols, or images
