QUIZ 1 21. Consider the data below.

What percentage of students scored

grade C?
Grades Number of Students
1. A strategic decision involves higher-level issues and is
concerned with the overall direction of the organization, A 16
defining the overarching goals and aspirations for the B 28
organizations future. C 33
D 13
2. A tactical decision is concerned with how the organization Total 90
should achieve the goals and objectives set by its strategy. Answer: 37%

3. Prescriptive analytics use techniques that take input data 22. Number of nonoverlapping bins, width of each bin, and
and yield a best course of action. bin limits are necessary to be determined to define the
classes for a frequency distribution with quantitative data.
4. Prescriptive analytics is the most complex in the spectrum
of business analytics. 23. The goal regarding using an appropriate number of bins is to
show the variation in the data.
5. HR personnel use descriptive and predictive analytics in
order to manage an organization’s human resource activities, 24. A histogram is a graphical summary of data previously
such as hiring employees, tracking, and influencing employee summarized in a frequency distribution.
retention.
25. Identify the shape of the distribution in the figure below.
6. Variable is a quantity that can take on different values.

7. Observation is a set of values corresponding to a set of

variables.

8. Variation is the difference in a variable measured over

observations (time, customers, items, etc.)

9. A sample act(s) as a representative of the population.

10. The act of collecting data that are representative of the

population data is called random sampling.
Answer: Moderately skewed right
11. The letter grades of business analysis students is recorded by
a professor (4=A, 3=B, 2=C, 1=D). This variable’s
26. The cumulative frequency distribution shows the number
classification is a categorical data.
of data items with values less than or equal to the upper class
limit of each class.
12. The data on the time taken by 10 students in a class to
complete an exam is an example of what type of data?
27. The sample mean is a point estimate of the (typically
Quantitative data
unknown) population mean for the variable of interest.
13. Cross-sectional data are collected from several entities at
28. Compute the mean of the following data.
the same point in time.
56, 42, 37, 29, 45, 51, 30, 25, 34, 57
Answer: 40.6
14. Data that are collected over a period of time (minutes, hours,
days, months, years, etc.) are known as time series data.
29. Compute the median of the following data.
32, 41, 36, 24, 29, 30, 40, 22, 25, 37
15. In an experimental study, a variable of interest is first
Answer: 31
identified. Then one or more other variables are identified and
controlled or manipulated so that data can be obtained about
30. Compute the mode for the following data.
how they influence the variable of interest.
12, 16, 19, 10, 12, 11, 21, 12, 21, 10
Answer: 12
16. The data collected from the customers in restaurants about
the quality of food is an example of a(n) observational study.
31. Compute the variance of the following data set:
1.10, 0.50, 0.70, 1.21, 1.25, 1.12, 1.16, 1.11, 1.13, 1.22
17. When working with large spreadsheets with many rows of
Answer: 0.061
data, it can be helpful to sort and filter the data to better find,
view, or manage subsets of data.
32. The simplest measure of variability is the range.
18. A summary of data that shows the number of observations in
33. The variance is based on the deviation about the mean,
each of several nonoverlapping bins is called a(n) frequency
which is the difference between the value of each observation
distribution.
(xi) and the mean.
19. The relative frequency of a bin equals the fraction or
34. Compute the standard deviation for the following sample data.
proportion of items belonging to a class.
32, 41, 36, 24, 29, 30, 40, 22, 25, 37
Answer: 6.75
20. Compute the relative frequencies for the data given in the
table below:
35. Compute the range for the following data set:
Grades Number of Students
32, 41, 36, 24, 29, 30, 40, 22, 25, 37
A 16 Answer: 21
B 28
C 33 36. Compute the 50th percentile for the following data.
D 13 10, 15, 17, 21, 25, 12, 16, 11, 13, 22
Total 90 Answer: 15.5
Answer: 0.18, 0.31, 0.37, 0.14
37. Compute the third quartile for the following data. 6. Deleting the grid lines in a table and the horizontal lines in a
10, 15, 17, 21, 25, 12, 16, 11, 13, 22 chart increases the data-ink ratio.
Answer: 21.25 7. The charts that are helpful in making comparisons between
categorical variables are bar charts and column charts.
38. Compute the approximate class interval for the following data 8. To avoid problems in interpreting the differences in color in a
set: 10, 15, 17, 21, 25, 12, 16, 11, 13, 22 heat map, sparklines can be added.
Answer: 3.16 9. Bar charts use horizontal bars to display the magnitude of
the quantitative variable.
39. A z-score determines how far a particular value is from the 10. A trendline is a line that provides an approximation of the
mean relative to the data set’s standard deviation. relationship between the variables.
11. A scatter chart is a graphical presentation of the relationship
40. For data having a bell-shaped distribution, approximately 68 between two quantitative variables.
percent of the data values will be within one standard 12. A line chart that has no axes but is used to provide information
deviation of the mean. on overall trends for time series data is called a sparkline.
13. Making visual comparisons between categorical variables is
41. Any data value with a z-score less than –3 or greater than +3 difficult in a pie chart.
is considered to be a(n) outlier. 14. An effective display of trend and magnitude is achieved by
using a combination of a heat map and sparklines.
42. Which of the following graphs provides information on outliers 15. A disadvantage of stacked-column charts and stacked-bar
and IQR of a data set? Box plot charts is that it can be difficult to perceive small
differences in areas.
43. If covariance between two variables is near 0, it implies that 16. The following image is a
the variables are negatively related.

44. The correlation coefficient will always take values between –

1 and +1.

45. Scores on Ms. Bond's test have a mean of 70 and a standard

deviation of 11. Michelle has a score of 48. Convert Michelle's
score to a z-score. (Round to two decimal places if
necessary.)
Answer: –2

46. Scores on Ms. Nash's test have a mean of 64 and a standard

deviation of 9. Steve has a score of 52. Convert Steve's score
to a z-score. (Round to two decimal places if necessary.)
Answer: –1.33
Answer: line chart
47. Scores on Ms. Bond's test have a mean of 70 and a standard 17. Using multiple lines on a line chart or employing multiple
deviation of 11. David has a score of 52 on Ms. Bond's test. charts is an alternative to a three-dimensional chart.
Scores on Ms. Nash's test have a mean of 64 and a standard
deviation of 6. Steven has a score of 52 on Ms. Nash's test. 18. Fields may be chosen to represent all of the following except
Which student has the higher standardized score? filters in the body of a PivotTable
Answer: David's standardized score is -1.64 and Steven's
standardized scores -2.00. Therefore, David has the 19. A two-dimensional graph representing the data using different
higher standardized score. shades of color to indicate magnitude is called a heat map.

48. The decisions concerning an organization’s goals and future 20. In many cases, white space in a chart can improve
plans are called strategic decisions. readability.

49. Tactical decisions define the goals and plans of the 21. A time series plot is also known as a line chart.
organization.
22. Tables should be used instead of charts when the values
50. Picks and Axes Inc. is an Internet-based retail seller of hiking being displayed have different units or very different
boots and mountaineering gear. The company decides to magnitudes.
open retail stores across the major areas of the city to help
complement its Internet-based strategy. This activity would be 23. DJ needs to display data over time. Which of the following
categorized as a(n) strategic decision. charts should he use? Line chart

24. An alternative for a stacked column chart when comparing

QUIZ 2 more than a couple of quantitative variables in each category
is a clustered column chart.
1. A chart that is recommended as an alternative to a pie chart 25. Data-ink is the ink used in a table or chart that is necessary
is a bar chart. to convey the meaning of the data to the audience.
2. Charts are visual methods of displaying data. 26. Data mining is used to examine known, expected patterns and
relationships among variables. False
3. In order to visualize three variables in a two-dimensional
graph, we use a bubble chart. 27. Cluster analysis tries to group observations into clusters so
that observations within a cluster a different and observations
4. The software package most commonly used for creating
in different clusters are similar. False
simple charts is Excel.
28. Lift is the increase in the number of purchasers over the typical
5. Which one of the following statements is not true concerning
number of purchasers. True
PivotTables in Excel?
29. Clustering is considered a supervised data mining technique.
False
30. Which methodology is used to group products that customers 10 Good 13 1
purchase together? 11 Very Good 33 18
12 Very Good 44 7
31. What is the euclidean distance between observer 1 and 4? 13 Excellent 42 18
Observer Income Loan Male Weight 14 Excellent 34 46
1 P542 0 1 80lbs 15 Good 25 0
2 P764 0 1 75lbs 16 Good 22 3
3 P1478 1 0 100lbs 17 Good 26 3
4 P874 1 1 120lbs 18 Excellent 17 36
5 P674 0 1 150lbs 19 Very Good 30 7
Answer: 334.4009569 20 Good 19 3
21 Very Good 33 10
32. What is the euclidean distance between observer 2 and 3? 22 Very Good 22 14
Observer Income Loan Male Weight 23 Excellent 32 27
1 P542 0 1 80lbs 24 Excellent 33 80
2 P764 0 1 75lbs 25 Very Good 34 9
3 P1478 1 0 100lbs 26 Very Good 38 13
4 P874 1 1 120lbs 27 Good 27 1
5 P674 0 1 150lbs 28 Good 27 3
Answer: 1540.650836 29 Very Good 26 7
30 Very Good 34 9
33. What is the similarity index between observer 2 and 5 using 31 Very Good 35 14
matching coefficient? 32 Good 25 2
Observer Income Loan Male Weight 33 Excellent 44 34
1 P542 0 1 80lbs 34 Good 26 1
2 P764 0 1 75lbs 35 Excellent 47 29
3 P1478 1 0 100lbs 36 Good 10 1
4 P874 1 1 120lbs 37 Excellent 35 41
5 P674 0 1 150lbs 38 Good 12 4
Answer: 1 39 Good 15 3
40 Excellent 27 21
34. What is the similarity index between observer 1 and 5 using 41 Good 19 0
Jaccard's coefficient? 42 Excellent 45 24
Observer Income Loan Male Weight 43 Very Good 32 15
1 P542 0 1 80lbs 44 Very Good 14 11
2 P764 0 1 75lbs 45 Excellent 40 29
3 P1478 1 0 100lbs 46 Excellent 31 39
4 P874 1 1 120lbs 47 Very Good 17 10
5 P674 0 1 150lbs 48 Very Good 20 16
Answer: 49 Excellent 36 40
50 Excellent 24 20
35. Calculate the confidence for the following association Answer:
statement: if {mouse}, then {monitor}.
Transactions Purchases 38. Based on this data, what is the average wait time for very good
1 mouse, monitor restaurants with a meal price of 38?
2 keyboard, keypad, headphones Quality Meal Price Wait Time
3 mouse, keyboard, cpu Restaurant Rating ($) (min)
4 cpu, monitor, printer 1 Good 18 5
5 headphones, printer, mouse 2 Very Good 22 6
Answer: 0.333 3 Good 28 1
4 Excellent 38 74
36. Calculate the lift ratio of the following association statement: if 5 Very Good 33 6
{monitor}, then {mouse,keyboard}. 6 Good 28 5
Transactions Purchases 7 Very Good 19 11
1 mouse, monitor 8 Very Good 11 9
2 keyboard, keypad, headphones 9 Very Good 23 13
3 mouse, keyboard, cpu 10 Good 13 1
4 cpu, monitor, printer 11 Very Good 33 18
5 headphones, printer, mouse 12 Very Good 44 7
Answer: 0.333 13 Excellent 42 18
14 Excellent 34 46
37. Based on this data, how many restaurants were rated
15 Good 25 0
excellent with a meal price of 30?
16 Good 22 3
Quality Meal Price Wait Time
17 Good 26 3
Restaurant Rating ($) (min)
18 Excellent 17 36
1 Good 18 5
19 Very Good 30 7
2 Very Good 22 6
20 Good 19 3
3 Good 28 1
21 Very Good 33 10
4 Excellent 38 74
22 Very Good 22 14
5 Very Good 33 6
23 Excellent 32 27
6 Good 28 5
24 Excellent 33 80
7 Very Good 19 11
25 Very Good 34 9
8 Very Good 11 9
26 Very Good 38 13
9 Very Good 23 13
27 Good 27 1
 28 Good 27 3 46 Excellent 31 39
29 Very Good 26 7 47 Very Good 17 10
30 Very Good 34 9 48 Very Good 20 16
31 Very Good 35 14 49 Excellent 36 40
32 Good 25 2 50 Excellent 24 20
33 Excellent 44 34 Answer: 4%
34 Good 26 1
35 Excellent 47 29
36 Good 10 1 QUIZ 3
37 Excellent 35 41
38 Good 12 4
39 Good 15 3 1. In the simple linear regression model, the error term accounts
40 Excellent 27 21 for the variability in the dependent variable that cannot be
41 Good 19 0 explained by the linear relationship between the variables.
42 Excellent 45 24
2. In the graph of the simple linear regression equation, the
43 Very Good 32 15
parameter B1 is the slope of the regression line.
44 Very Good 14 11
45 Excellent 40 29 3. In a simple linear regression analysis the slope of the
46 Excellent 31 39 regression line gives the amount by which the dependent
47 Very Good 17 10 variable changes for a unit change in the independent
48 Very Good 20 16 variable.
49 Excellent 36 40
50 Excellent 24 20 4. The graph of the simple linear regression equation is a
Answer: 13 mins straight line.

39. Based on this data, what is the percentage of very good 5. The population parameters that describe the y-intercept and
restaurants with an average wait time of 6 mins? slope of the line relating y and x, respectively, are B0 and B1.
Quality Meal Price Wait Time
Restaurant Rating ($) (min) 6. A scatter chart is used to visualize sample data graphically
1 Good 18 5 and to draw preliminary conclusions about the possible
2 Very Good 22 6 relationship between the variables.
3 Good 28 1
4 Excellent 38 74 7. The difference between the observed value of the dependent
5 Very Good 33 6 variable and the value predicted using the estimated
6 Good 28 5 regression equation is known as the residual.
7 Very Good 19 11
8. The coefficient of determination
8 Very Good 11 9
9 Very Good 23 13
9. In a simple linear regression model, y = ß0 + ß1x+ εB1
10 Good 13 1
represents the slope of the true regression line.
11 Very Good 33 18
12 Very Good 44 7 10. Regression analysis involving one dependent variable and
13 Excellent 42 18 more than one independent variable is known as multiple
14 Excellent 34 46 regression.
15 Good 25 0
16 Good 22 3 11. In the graph of the simple linear regression equation, the
17 Good 26 3 parameter B0 represents the y-intercept of the regression
18 Excellent 17 36 line.
19 Very Good 30 7
20 Good 19 3 12. A regression analysis involving one independent variable and
21 Very Good 33 10 one dependent variable is referred to as a simple linear
22 Very Good 22 14 regression.
23 Excellent 32 27
24 Excellent 33 80 13. Prediction of the value of the dependent variable outside the
25 Very Good 34 9 experimental region is called extrapolation.
26 Very Good 38 13
14. In a linear regression model, the variable (or variables) used
27 Good 27 1
for predicting or explaining values of the response variable are
28 Good 27 3
known as the independent variable It(they) is(are) denoted
29 Very Good 26 7 by x.
30 Very Good 34 9
31 Very Good 35 14 15. The coefficient of determination is a measure of the
32 Good 25 2 goodness of fit of the estimated regression equation. It can be
33 Excellent 44 34 interpreted as the proportion of the variability in the dependent
34 Good 26 1 variable y that is explained by the estimated regression
35 Excellent 47 29 equation.
36 Good 10 1
37 Excellent 35 41 16. When the mean value of the dependent variable is
38 Good 12 4 independent of the variation in the independent variable, the
39 Good 15 3 slope of the regression line is zero.
40 Excellent 27 21
41 Good 19 0 17. The experimental region is the range of values of the
42 Excellent 45 24 independent variables in the data used to estimate the
43 Very Good 32 15 regression model.
44 Very Good 14 11
45 Excellent 40 29
18. Regression analysis is a statistical procedure used to 30. Considering the presence of seasonality, what is the
develop an equation showing how variables are related. appropriate sales forecast for year 2, quarter 3?
Year Quarter Period Sales (1000s)
19. The sum of squares due to error is a measure of the error 1 1 1 4.8
that results from using the estimated regression equation to 1 2 2 4.1
preduct the values of the dependent variable in the sample. 1 3 3 6
1 4 4 6.5
20. Prediction of the mean value of the dependent variable y for 2 1 5 5.8
values of the independent variables x1, x2, . . . , xq that are 2 2 6 5.2
outside the experimental range is called extrapolation.
2 3 7 6.8
2 4 8 7.4
21. Considering the presence of seasonality, what is the
3 1 9 6
appropriate sales forecast for year 3, quarter 4?
3 2 10 5.6
Year Quarter Period Sales (1000s)
3 3 11 7.5
1 1 1 4.8
3 4 12 7.8
1 2 2 4.1
4 1 13 6.3
1 3 3 6
4 2 12 5.9
1 4 4 6.5
4 3 15 8
2 1 5 5.8
4 4 16 8.4
2 2 6 5.2
Answer:
2 3 7 6.8
2 4 8 7.4
31. Considering the presence of seasonality, what is the
3 1 9 6
appropriate sales forecast for year 4, quarter 1?
3 2 10 5.6 Year Quarter Period Sales (1000s)
3 3 11 7.5
1 1 1 4.8
3 4 12 7.8
1 2 2 4.1
4 1 13 6.3 1 3 3 6
4 2 12 5.9
1 4 4 6.5
4 3 15 8 2 1 5 5.8
4 4 16 8.4
2 2 6 5.2
Answer: 7.81625
2 3 7 6.8
2 4 8 7.4
22. Forecast error is associated with measuring forecast
3 1 9 6
accuracy.
3 2 10 5.6
23. The mean absolute error, mean squared error, and mean 3 3 11 7.5
absolute percentage error are all methods to measure the 3 4 12 7.8
accuracy of a forecast. These methods measure forecast 4 1 13 6.3
accuracy by determining how well a particular forecasting 4 2 12 5.9
method is able to reproduce the time series data that are 4 3 15 8
already available. 4 4 16 8.4
Answer:
24. Which of the following measures of forecast accuracy is
susceptible to the problem of positive and negative forecast
errors offsetting one another? Mean forecast error 32. What is the mean squared error of the forecasts under the
naive method?
25. A time series that shows a recurring pattern over one year or 33. Month Sales
less is said to follow a seasonal pattern. 1 105
2 135
26. A set of observations on a variable measured at successive 3 120
points in time or over successive periods of time constitute a 4 105
time series. 5 90
6 120
27. A forecast is defined as a(n) prediction of future values of 7 145
a time series.
8 140
9 100
28. Suppose for a particular week, the forecasted sales were
$4,000. The actual sales were $3,000. What is the value of 10 80
the mean absolute percentage error? 11 100
12 110
29. What is the mean absolute percent error of the forecasts Answer: 511
under the naive method?
Month Sales 34. With reference to time series data patterns, a cyclical pattern
1 105 is the component of the time series that shows a periodic
2 135 pattern lasting more than one year.
3 120
35. A positive forecast error indicates that the forecasting method
4 105
underestimated the dependent variable.
5 90
6 120 36. Trend refers to the long-run shift or movement in the time
7 145 series observable over several periods of time.
8 140
9 100 37. Demand for a product and the forecasting department’s
10 80 forecast (naïve model) for a product are shown below.
11 100 Compute the mean squared error.
12 110 Period Actual Demand Forecasted Demand
Answer: 1 12 –
 2 15 12 14 9 28 43,000
3 14 15 12 8 43 96,000
4 18 16 18 10 37 110,000
Answer: 16 12 36 88,000
11 7 39 36,000
38. Which of the following is not true of a stationary time series? 16 14 36 81,000
The time series plot is a straight line 12 4 22 38,000
39. What is the mean absolute error of the forecasts under the 16 17 45 140,000
naive method? 13 7 42 11,000
Year Sales 11 6 18 21,000
1 21.6 20 4 40 151,000
2 22.9 19 7 35 124,000
3 25.5 16 12 38 48,000
4 21.9 12 2 19 26,000
5 23.9 10 6 44 124,000
6 27.5 What is the R2 value of the regression model? Use four (4)
7 31.5 decimal points.
8 29.7 Answer:
9 28.6
10 31.4 44. The following time series shows the sales of a particular
Answer: commodity over the past 15 weeks.
Week Sales
40. Which is not true regarding trend patterns? 1 1,123
2 1,157
41. Consider the following time series data. 3 1,138
Year Value Forecast 4 1,120
1 234 5 1,130
2 287 234.00 6 1,132
3 255 250.50 7 1,188
4 310 258.67 8 1,151
5 298 271.50 9 1,129
6 250 276.80 10 1,118
7 456 272.33 11 1,125
8 412 298.57 12 1,147
9 525 312.75 13 1,162
10 436 336.33 14 1,190
Answer: 15 1,137
Using ∝= 0.3, compute for the forecast accuracy under the
42. A researcher wanted to study effect of two factors, x1 and x2, MSE method. Use two (2) decimal points.
on yield (y). The observations are given below. Answer:
Observations x1 x2 y
1 42.5 30.1 260.4 45. Consider the following quarterly sales time series.
2 43.5 29.3 261.7 Quarter Year 1 Year 2 Year 3
3 43.9 31.1 273.6 1 923 1,112 1,243
4 44.8 29.6 278.6 2 1,056 1,156 1,301
5 46.8 29.7 281.5 3 1,124 1,124 1,254
6 47.5 29.9 294.6 4 992 1,078 1,198
7 50.1 30.1 301.2 Using linear regression, what is the forecasted sales in year
8 51.9 30.4 314.6 4, quarter 2? Use three (3) decimal points.
9 54.7 30.5 320.5 Answer:
10 54.8 31 324.7
11 57.1 31.8 356.7
12
13
57.8
62.3
31.4
31.5
370.3
378
QUIZ 4
14 66.7 32.1 384.8
15 71.2 32.5 396.9 1.
Based on this given data, what is the correct linear regression
model?
Answer:

43. A survey conducted by a research team was to investigate

how the education level, tenure in current employment, and
age are related to annual income. A sample of 20 employees
is selected and the data are given below.
Length of
tenure in
Education
current Age (No. of Annual
(No. of
employment years) income ($)
years)
(No. of
years)
17 8 40 124,000
12 12 41 30,000
20 9 44 193,000
14 4 42 88,000
12 1 19 27,000