Exam 3 - Chapter 10 - Share the story

Question 1

Data can be communicated more effectively when visualized.

What is data visualization?

Answer 1

Presenting results of an analysis in accesible way through charts/graphs.

Question 2

What are these components of charts/graphs:

• Horizontal axis
• Vertical axis
• Scale
• Tick marks
• Data series
• Data point

Answer 2

Horizontal axis: Used for labels

Vertical axis: Used for values

Scale: The total values shown on vertical axis

Tick marks: Increments of the scale

Data series: raw data the chart visually represents

Data point: Individual items of the data series

Question 3

Use this flaschard as a visual representation of the components of graphs/charts:

Answer 3

Question 4

An easy and effective way to improve data visualizations is to:

Answer 4

Sort data in an order

Question 5

What are descriptive statistics?

Answer 5

Brief summaries of a data set that provide a rep. of the data as a whole.

Includes:

• Mean
• Standard deviation
• Mins and max

Question 6

Time series data

An effect visualization tool for displaying trends over time:

Answer 6

Bar charts

Line charts

Note: time series data should be sorted logically; for example, chronological order

Question 7

The advantage line charts have over bar charts for visualization of trends:

Answer 7

Line charts lend themseviles to numerical data that extends below 0

• When the overall trend is more important to communicate rather than specific data points

Question 8

The advantage bar charts have over line charts for visualization of trends:

Answer 8

Display specific data points easier; important when you want better descriptions of each point

Question 9

Ratio data

How should this data be visualized?

Answer 9

Useful for trend analysis

For bar charts: Always use 0 as starting point

For line chart: Should use 0 as starting point, unless makes more sense not to; trend will stand out regardless

Question 10

Pie Charts

What type of analytics do these visualizations work best with?

Answer 10

Useful for these descriptive analytics:

• Proportions
• Categorical data

Note: Rarely preferred # of categories > 4

Question 11

What are data dashboards?

Answer 11

Report that contains a collection of useful visualizations and tables to check business progress/drive decisions.

Typically contain filters to make it easy to hone on a particular time, category, product, or geographic area

Question 12

What are histograms?

Answer 12

Data visualization that displays the distribution of a particular dataset; compares numbers across intervals

Question 13

Histograms vs. bar charts

What are three key differences in histograms compared to bar charts?

Answer 13

1. Histograms represent bins/intervals: Ear bar represent subsets of data, arranged in increasing order
2. Histograms use numerical data, not categorical: this is why histograms do not contain gaps between bars
3. Histogram’s vertical axis shows only counts of observations: Bar charts may show any descr. statistics.

Question 14

Visualizing diagnostic analysis

What are the two methods for assessing outliers?

Answer 14

1. “Eyeball” data to determine if any observations fall outside expected distributiion
2. Construct a box plot

Question 15

Use this flashcard to understand box plots/outliers.

Answer 15

Question 16

Visualizing predictive statistics

What tool can be used to visualize correlation and regression analysis?

Answer 16

Scatter plot:

• Useful to visualize data if you have two different measures
• Reflect correlation by showing values of two variables

Question 17

Visualizing predictive statistics

What tool should be used to visualize forecasting data?

Answer 17

Multi-line charts:

Allows display of multiple predictions; the expected, upper limit, and lower limit

Question 18

Prescriptive analysis

What tool is best used to visualize sensitivity analysis?

Answer 18

Tables

Best for communicating multiple bits of info and how info changes based on different outcomes

• Since different scenarios are used, graphs would be hard to effectively summarize

Question 19

Prescriptive analysis

What tool is best used to visualize break-even analysis?

Answer 19

Line charts:

• Create lines for: total revenue, total cost, variable cost, and fixed cost
• Total cost line has same slope as variable cost line