BUSINESS ANALYTICS - Business Analytics, 3e (Evans) Test Bank - Tabl...

TEST BANK

PAOLO CATASTI

BUSINESS ANALYTICS

THIRD EDITION

James R. Evans 1 / 4

Copyright © 2020 Pearson Education, Inc.Business Analytics, 3e (Evans) Test Bank - Table of Contents

Chapter 1: Introduction to Business Analytics 1

Chapter 1: Appendix A1 Basic Excel Skills 16

Chapter 2: Database Analytics 24

Chapter 3: Data Visualization 37

Chapter 4: Descriptive Statistics 50

Chapter 5: Probability Distributions and Data Modeling 92

Chapter 6: Sampling and Estimation 108

Chapter 7: Statistical Inference 127

Chapter 8: Trendlines and Regression Analysis 145

Chapter 9: Forecasting Techniques 163

Chapter 10: Introduction to Data Mining 184

Chapter 11: Spreadsheet Modeling and Analysis 198

Chapter 12: Simulation and Risk Analysis 223

Chapter 13: Linear Optimization 237

Chapter 14: Integer and Nonlinear Optimization Models 260

Chapter 15: Optimization Analytics 295

Chapter 16: Decision Analysis 313

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Copyright © 2020 Pearson Education, Inc.1 Business Analytics, 3e (Evans)

Chapter 1: Introduction to Business Analytics

1) Descriptive analytics:

• can predict risk and find relationships in data not readily apparent with traditional analyses.
• helps companies classify their customers into segments to develop specific marketing

campaigns.

• helps detect hidden patterns in large quantities of data to group data into sets to predict

behavior.

• can use mathematical techniques with optimization to make decisions that take into account

the uncertainty in the data.

Answer: B

Diff: 1

Blooms: Remember

Topic: Descriptive, Predictive, and Prescriptive Analytics

LO1: Illustrate examples of descriptive, predictive, and prescriptive analytics.

2) A manager at Gampco Inc. wishes to know the company's revenue and profit in its previous quarter. Which of the following business analytics will help the manager?

• prescriptive analytics
• normative analytics
• descriptive analytics
• predictive analytics

Answer: C

Diff: 1

Blooms: Apply

AACSB: Analytic Skills

Topic: Descriptive, Predictive, and Prescriptive Analytics

LO1: Explain the difference between descriptive, predictive, and prescriptive analytics.

3) Predictive analytics:

• summarizes data into meaningful charts and reports that can be standardized or customized.
• identifies the best alternatives to minimize or maximize an objective.
• uses data to determine a course of action to be executed in a given situation.
• detects patterns in historical data and extrapolates them forward in time.

Answer: D

Diff: 2

Blooms: Remember

Topic: Descriptive, Predictive, and Prescriptive Analytics

LO1: Illustrate examples of descriptive, predictive, and prescriptive analytics.

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• Chapter 1 Introduction to Business Analytics Business Analytics, 3e

Copyright © 2020 Pearson Education, Inc.4) A trader who wants to predict short-term movements in stock prices is likely to use ________ analytics.

• predictive
• descriptive
• normative
• prescriptive

Answer: A

Diff: 1

Blooms: Apply

AACSB: Analytic Skills

Topic: Descriptive, Predictive, and Prescriptive Analytics

LO1: Explain the difference between descriptive, predictive, and prescriptive analytics.

5) Which of the following questions will prescriptive analytics help a company address?

• How many and what types of complaints did they resolve?
• What is the best way of shipping goods from their factories to minimize costs?
• What do they expect to pay for fuel over the next several months?
• What will happen if demand falls by 10% or if supplier prices go up 5%?

Answer: B

Diff: 2

Blooms: Understand

AACSB: Analytic Skills

Topic: Descriptive, Predictive, and Prescriptive Analytics

LO1: Illustrate examples of descriptive, predictive, and prescriptive analytics.

6) The demand for coffee beans over a period of three months has been represented in the form of an L-shaped curve. Which form of model was used here?

• mathematical model
• visual model
• kinesthetic (tactile) model
• verbal model

Answer: B

Diff: 1

Blooms: Apply

AACSB: Analytic Skills

Topic: Models in Business Analytics

LO1: Explain the concept of a model and various ways a model can be characterized.

7) Decision variables:

• cannot be directly controlled by the decision maker.
• are assumed to be constant.
• are always uncertain.
• can be selected at the discretion of the decision maker.
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