Statistics - Correlation and Regression and Data Mining Flashcards
Statistics Definition
Science of turning data into information
What is the role of statistics in Management
Decision Making
Problem Solving
Processes
What can correlation and regression be used to do?
Identify Key Variables for managing and reducing variation
what can regression be a stepping stone to do?
design an experiment or analyze a designed experiment
What does correlation do?
describes the LINEAR relationship between two variables
explores cause and effect
What are the X and Y axis’, USUALLY when plotting correlation?
X - Cause
Y- Effect
what is ‘r’ in a correlation plot?
the degree of linear association.
Basically the average distance of the data from the average line. the smaller, the more correlated the x and y axis are
What is the definition of data mining?
exploration and analysis of large quantities of data to discover meaningful patterns and rules
what is the goal of data mining
extract valid, previously unknown, comprehensible and actionable information from large databases to make business decisions
What is a simple questions that can lead to data mining?
“I wonder why ________”
“Why are _______ doing ________”
What are the two basic subsets of data mining?
Predictive modeling
descriptive modeling
what is predictive modeling?
“Hypothesis testing”
having target variables and inputs
what is descriptive modeling
clustering and pattern analysis
no targets or inputs
What is Allen’s simple Business analytics definition?
Utilizing Data to increase shareholder value
What are the five ways you can use business analytics
Compete ON analytics
compete WITH analytics
Improve WITH analytics
Revenue THROUGH analytics
Persevering THROUGH analytics
