Lecture One (t1) 23/09 Flashcards
What is the classification of data
process of organising data into categories based on attributes
What are decisions based on?
Limited information
Why is there uncertainty when making decisions?
We are never given the full amount of information - we base decisions on small samples
What must accountants do to try make accurate decisions?
need to select a portion of records for auditing purposes
Can decisions made always be accuate?
No, all of the variables cannot be taken into account = uncertainty = decisions may not be accurate
for e.g. analysing a company u cant analyse the whole time they have been trading - since 1900s because of many reasons -therefore u don’t have all of the information
What must be done to ensure data to be efficient?
Now in this day and age there is LARGE amounts of data: eg internet etc
Therefore INORDER TO BE EFFICENT: DATA MUST BE SUMMARISED EFFICENTLY!
How can you summarize 10 years of monthly data points into a single page
Using charts - “A good picture is worth a thousand words”
What is a histogram
a graph type that groups data into specific buckets - e.g. what has in common = grouped
e.g. Students born in different months = split the students into buckets of their own birth months
What is data?
a collection of numbers / characters / words / text - in raw or organised form to represent facts or information.
What can data be used for
use this data to make an inference of certain things
What is numerical data?
values that represent measured or counted quantities as a number
What is numerical data also known as
Quantitative data
What are the two types of numerical data
Continuous and Discrete
What is Continuous data
data that can be measured/ take on any numerical value in specified range of values
e.g. weight can be any between 100kg
What is discrete data
numerical values that are resulted from a counting process
e.g. stock prices/ auction prices - to avoid small bets (must be larger/equal to
a certain value - they increase by a certain amount
