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Ba 2 Marks Unit 4

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11 views

Ba 2 Marks Unit 4

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23mbat04
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BUSINESS ANALYTICS

UNIT 4: PREDICTIVE ANALYTICS

2 Marks

1. What is predictive analytics?


Predictive analytics is the process of using data to forecast future outcomes. The process uses data analysis,
machine learning, artificial intelligence, and statistical models to find patterns that might predict future behavior.

2. What is predictive modeling?


Predictive modeling means developing models that can be used to forecast or predict future events. In business
analytics, models can be developed based on logic or data.

3. What are logic-driven models?


A logic-driven model is one based on experience, knowledge, and logical relationships of variables and constants
connected to the desired business performance outcome situation. The question here is how to put variables and
constants together to create a model that can predict the future.

4. What are data-driven models?


Data-driven Models refers to the models in which data is collected from many sources to qualitatively establish
model relationships. Data driven models include sampling and estimation, regression analysis, correlation
analysis, forecasting models and stimulation.

5. Explain the difference between logic-driven and data-driven models.


Logic driven models remain based on experience, knowledge and logical relationships of variables and constants
connected to the desired business performance outcome situation. Data-driven Models refers to the models in
which data is collected from many sources to qualitatively establish model relationships.

6. List some data-driven models.


 Sampling and estimation
 Regression analysis
 Correlation analysis
 Probability Distributions

7. Describe what a cause-and-effect diagram is used for in BA.


The cause-and-effect diagram is a visual aid diagram that permits a user to hypothesize relationships between
potential causes of an outcome.
8. What are influence diagrams?
Influence diagrams can be useful to conceptualize the relationships of variables in the development of models.

9. Demonstrate the advantages of Predictive analytics.


 Detecting fraud
 Optimizing marketing campaigns
 Improving operations
 Reducing risk

10. How can we make use of clustering model?


Clustering model takes data and sorts it into different groups based on common attributes. We can use clustering
to segment images for face recognition, object detection, medical imaging, market segmentation or for artistic
effects.

11. What is your opinion on data mining?


The activity of analyzing various data from different aspects and presenting it into meaningful information which
can be used to promote sales and revenues or reduce costs is referred to as data mining. It is also known as
‘knowledge or data discovery’
12. What are the types of information in data mining methodologies?
 Association
 Classification
 Clustering
 Forecasting
 Sequence

13. Define association.


An association rule is an unsupervised learning method which is used for finding the relationships between
variables in the large database. It determines the set of items that occurs together in the dataset. Association rule
makes marketing strategy more effective. Such as people who buy X item (suppose a bread) are also tend to
purchase Y (Butter/Jam) item. A typical example of Association rule is Market Basket Analysis.

14. Define clustering.


Clustering is a method of grouping the objects into clusters such that objects with most similarities remain into a
group and has less or no similarities with the objects of another group. Cluster analysis finds the commonalities
between the data objects and categorizes them as per the presence and absence of those commonalities.

15. What is K-means clustering?


K-mean clustering is a classification methodology that permits a set of data to be reclassified
into K groups, where K can be set as the number of groups desired.

16. What is hierarchical clustering?


Hierarchical clustering is a methodology that establishes a hierarchy of clusters that can be
grouped by the hierarchy. Two strategies are suggested for this methodology: agglomerative
and divisive.

17. Elaborate on neural networks.


A neural network is a method in artificial intelligence that teaches computers to process data in a way that is
inspired by the human brain. It is a type of machine learning process, called deep learning, which uses
interconnected nodes or neurons in a layered structure that resembles the human brain.

18. What is retail pricing markdowns model?


When retailers deliberately reduce the selling price of retail merchandise, it is called price markdown or
markdown pricing.

19. Explain how step-wise regression can be useful in BA.


The procedure by which multiple regression can be used to evaluate which independent variables are best to
include or exclude in a linear model is called step-wise multiple regression. It is based on an evaluation of
regression models and their validation statistics—specifically, the multiple correlation coefficients and the F-ratio
from an ANOVA. SAS software and many other statistical systems build in the step-wise process. Some are called
backward selection or step-wise regression, and some are called forward selection or step-wise regression.
20. Explain how to use R-Squared adjusted statistics in BA.
The R-Square Adjusted statistic does not have the same interpretation as R-Square. It is instead a comparative
measure of suitability of alternative independent variables. It is ideal for selection between independent
variables in a multiple regression model. The R-Square adjusted seeks to take into account the phenomenon of
the R-Square automatically increasing when additional independent variables are added to the model.

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