Data and Information

Question 1

Data

Answer 1

The initial input of raw facts and figures

Question 2

Information

Answer 2

Data which has been processed and converted into meaningful output

Question 3

Internal Information

Answer 3

Information which can be found within the businesses itself, e.g. the profit or loss

Question 4

External Information

Answer 4

Contextual information that concerns a business, e.g. disposable income of the customers

Question 5

Quantitative Data

Answer 5

Data that is measurable numerically and is objective, hence more reliable

Question 6

Qualitative Information

Answer 6

Data that is based on experiences and opinions and is subjective, hence less reliable

Question 7

Primary Data

Answer 7

Data obtained for a specific purpose through original research conducted by the business itself

Question 8

Secondary Data

Answer 8

Data obtained by a business from secondary sources

Question 9

Pros and Cons of Primary and Secondary Data

Answer 9

Primary:
Pros: Collected for a specific purpose
Cons: Reliability depends on staff skill, expensive to produce

Secondary:
Pros: Cost-effective
Cons: Information can be too generic

Question 10

Adhoc Data

Answer 10

Data required for a specific issue

Question 11

Continuous Data

Answer 11

Collected and analysed continuously by a business

Question 12

Good Quality Information

Answer 12

Reliable - from a trusted source

Relevant - directly relates to biz and it’s decisions

Clear - easily read and well presented

Accurate - stats are correct and expressed in the most appropriate way

Targeted - delivered to the right person at the right time

Cost-efficient - info’s usefulness in changing biz process should outweigh the monetary cost of sourcing it

Question 13

Internal information Sources

Answer 13

Financial info - info from accounting systems e.g. cash books and sales ledgers

Management info - gathered from internal reports e.g. production reports

Question 14

External Information Sources

Answer 14

Business contacts - info obtained through customers and suppliers

Trade associations - info obtained through trade journals

News media - info obtained through media sources e.g. econ forecasts & social trends

Government - info obtained through gov sources e.g. current GNP or unemployment rates

Question 15

Big Data

Answer 15

Information which is too large to analyse or interpret using standard reporting facilities

Question 16

Value of Big Data

Answer 16

Allows info to be drawn from large amounts of different data as opposed to separate sets.
Has potential for almost universal application

Question 17

Gartner’s 3 Vs of Big Data

Answer 17

Gartner outlined 3 challenges of Big Data in 2001:
Volume - the increasing amount of data being processed makes it harder to extract information
Velocity - the increasing speed of data in and out means it can quickly change.
Variety - the range of types and sources of data makes analysis difficult

Question 18

Formal Definition of Big Data

Answer 18

High volume, high velocity and/or high variety information that requires new forms of processing which enable advanced decision making, insight discovery and process optimisation

Question 19

Seven Stages of Big Data

Answer 19

Capture - what data? How to collect it?
Storage - where? IT needs?
Curation - organising the data
Analysis - examine data to make useful info
Visualisation - present data in clear way
Search - allow users to search for info
Data sharing and transfer

Question 20

Big Data Competitive Advantage

Answer 20

Big data can provide competitive advantage through:

• Production of improved products
• Ensuring stock levels are correct
• Better targeting of marketing campaigns
• Effective pricing strategies

Question 21

Graphs: Single Bar Charts

Answer 21

Pros:
Simplest
Clear overview of subject being measured

Cons:
Lacks detail

Question 22

Multiple Bar Charts

Answer 22

Pros:
Separate bar for each product, highlights areas of success and concern
Can be rearranged to show performance of one item over the total period to highlight patterns or consistencies

Cons:
No overall total - to get total sales each month the total for each column would need to be added together

Question 23

Component/Compound Bar Charts

Answer 23

Pros:
Can see the total value and breakdown per component
Can represent the Y axis as a % and create a % composition graph

Question 24

Pie Charts

Answer 24

Pros:
Can see the extent to which an element contributes to the total
Provides a clear overview

Cons:
Doesn’t show trends
Info needs further analysis to be useful

Question 25

Scatter Graphs

Answer 25

Useful in showing the connection between two sets of data. Correlation is found by plotting both sets and drawing a line of best fit. The more points on or near the line, the better the correlation

Question 26

Positive Correlation

Answer 26

When both variable are increasing together

Question 27

Negative Correlation

Answer 27

When one variable increases while the other decreases

Question 28

Histograms

Answer 28

The height of each bar is proportional to the frequency i.e. the y axis variable, while the width of the bar is proportional to the class interval i.e. the x axis variable

Question 29

Ogives

Answer 29

Plot the cumulative frequency of data on the y axis and interval or group size on the x axis. They record the running total of a data set, e.g. the number of children in a class and their heights