(Test Bank) Predictive Analytics for Business Strategy

Prince, 1

Business

Test Bank

1st Edition

• $15.00 $50.00

---

Description

Test Bank for Predictive Analytics for Business Strategy, The downloadable file consists of 397 pages, and the total size of the file is 3.86 MB. Purchase now only for highly discounted price.

Author(s): Prince

---

---

Study Note Preview

1 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Predictive Analytics for Business Strategy, 1e (Prince) Chapter 1 The Roles of Data and Predictive Analytics in Business 1) Which of the following business strategies has a strong business analytics focus? A) Using data on historical sales to build a recommendation service for your product portfolio. B) Building a market presence through franchising. C) Building a reputation for high quality through informative advertising. D) Ensuring high quality through vertically integrating. Answer: A Explanation: Companies routinely collect sales data by product or service at various frequencies, e.g., daily, weekly, monthly, quarterly, and annually. Thus, analysts can use this data to move beyond theoretical arguments or "instincts" and physically measure what products or services in their product portfolio customers like, purchase, and continue to purchase. Using this type of information allows companies to understand their customers' buying preferences and then target appropriate audiences with appropriate marketing campaigns thus increasing overall sales. An example of this is Amazon's "customers who purchased this item also purchased these other items…" The other answer responses require more complex business analytical measurements, and typically appropriate data are not readily available. Difficulty: 2 Medium Topic: Defining Data and Data Uses in Business Learning Objective: 01-01 Explain how predictive analytics can help in business strategy formulation. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 2) An appealing alternative to using "rules of thumb" and "gut feelings" in formulating business strategies includes: A) not deviating from the firm's previously established practices. B) being an early adopter of business strategies of industry leaders. C) business strategies justified from evidence-based business analytics. D) None of these choices are correct. Answer: C Explanation: Business strategies supported by empirical based evidence, i.e., data, become more compelling and convincing to key business decision makers. Difficulty: 1 Easy Topic: Defining Data and Data Uses in Business Learning Objective: 01-01 Explain how predictive analytics can help in business strategy formulation. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 2 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 3) A plan of action designed by a business practitioner to achieve a business objective would be best described as: A) business analytics. B) predictive analytics. C) business strategy. D) a database. Answer: C Explanation: Business and predictive analytics inform business strategies. They provide evidenced-based measurement that identifies appropriate business strategies that business practitioners can use to achieve specific business outcomes such as increased sales. The resulting business plan of action details how to execute the business strategy(s) to achieve that business objective. Difficulty: 1 Easy Topic: Defining Data and Data Uses in Business Learning Objective: 01-01 Explain how predictive analytics can help in business strategy formulation. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 4) A necessary foundational element for a business to organize the collection of data that the firm will use to analyze is: A) the HR department. B) cloud-based storage. C) the IT department. D) a database. Answer: D Explanation: Business analysts build digital databases based on the relational model of the data using a defined table(s) of information. Analysts can then access or reassemble the information in many ways without having to reorganize the database tables. Difficulty: 1 Easy Topic: Defining Data and Data Uses in Business Learning Objective: 01-01 Explain how predictive analytics can help in business strategy formulation. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 3 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 5) Which of the following statements best summarizes the use of business analytics? A) The use of data analysis to aid in business decision making. B) Using of cluster analysis to create customer categories. C) Forecasting stock prices. D) Using "big data" methods to predict sales. Answer: A Explanation: The use of data analysis to aid in business decision making is the underlying argument for the use of business analytics, i.e., empirical-based measurement that provides powerful and convincing evidence for use by key business decision makers. The other answer options are approaches to data analysis used to conduct business analytics. Difficulty: 1 Easy Topic: Defining Data and Data Uses in Business Learning Objective: 01-01 Explain how predictive analytics can help in business strategy formulation. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 6) Suppose you collect a series of pictures from Facebook and wish to perform analysis on them. The collection of pictures you've gathered is an example of what type of data? A) Unstructured data B) Incomplete data C) Structured data D) Censored data Answer: A Explanation: A series of pictures do not provide well-defined units of observation of which corresponding information is identifiable. Thus, one cannot classify the data as incomplete, structured, or censored, given the lack of a well-defined unit of observation. Difficulty: 2 Medium Topic: Data Features Learning Objective: 01-02 Distinguish structured from unstructured data. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 4 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 7) Suppose you collect a series of texts from CEOs' public speaking engagements and wish to perform analysis on them. The collection of texts you've gathered is an example of what type of data? A) Unstructured data B) Incomplete data C) Structured data D) Censored data Answer: A Explanation: A series of text does not provide well-defined units of observation of which corresponding information is identifiable. Thus, one cannot classify the data as incomplete, structured, or censored, given the lack of a well-defined unit of observation. Difficulty: 2 Medium Topic: Data Features Learning Objective: 01-02 Distinguish structured from unstructured data. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 8) Suppose you collect monthly sales figures for each store location in your company as well as the wages paid to employees for each store, and that you have a complete history for the last ten years for each store. Provided this information is in table format, the information you've gathered is an example of what type of data? A) Unstructured data B) Incomplete data C) Structured data D) Censored data Answer: C Explanation: One can define the unit of observation for this data as monthly sales figures and employee wages by store location. Store location is the defined unit of observation; thus, the data are structured. Difficulty: 1 Easy Topic: Data Features Learning Objective: 01-02 Distinguish structured from unstructured data. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 5 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 9) Suppose you collect a series of texts from statements made of a sample of potential customers as they watch an advertisement for your company's product. The collection of texts you've gathered from these statements is an example of what type of data? A) Structured data B) Incomplete data C) Unstructured data D) Panel data Answer: C Explanation: A series of text does not provide well-defined units of observation of which corresponding information is identifiable. Thus, one cannot classify the data as structured, incomplete, or panel data, given the lack of a well-defined unit of observation. Difficulty: 2 Medium Topic: Data Features Learning Objective: 01-02 Distinguish structured from unstructured data. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 10) Use the following dataset to answer the following question. Name Month Commission Tenure Travel Expense Sophie Castro 1 $48,000 4 years $11,000 Travis Turner 1 $53,000 7 years $21,000 Elias Hansen 2 $67,000 10 years $7,000 Amanda Garza 2 $72,000 8 years $14,000 What is the unit of observation? A) Month-tenure B) Person-month C) Month D) Tenure Answer: B Explanation: The dataset contains commission, tenure, and travel expenses across names (cross-section of people), by month (over time). Thus, the unit of observation is person by month or person-month. Difficulty: 2 Medium Topic: Data Features Learning Objective: 01-03 Differentiate units of observation. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 6 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 11) Use the following dataset to answer the following question. Name Month Commission Tenure Travel Expense Sophie Castro 1 $48,000 4 years $11,000 Travis Turner 1 $53,000 7 years $21,000 Elias Hansen 2 $67,000 10 years $7,000 Amanda Garza 2 $72,000 8 years $14,000 What type of dataset is this? A) Cross-sectional B) Time series C) Pooled cross-section D) Panel Answer: C Explanation: The dataset collects commission, tenure, and travel expense for various company people (cross-section of people by name) by month (over time). Therefore, it is a pooled cross-section dataset. It is not a panel dataset because month 2 collects data on different people than month 1. Difficulty: 1 Easy Topic: Data Features Learning Objective: 01-03 Differentiate units of observation. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 7 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 12) Use the following dataset to answer the following question. Firm Year # of Employees Sales Profits Jim's Auto 2014 23 $741,000 $52,000 Mechanic Zone 2014 15 $510,000 -$72,000 Jim's Auto 2015 31 $1,081,050 $101,000 Mechanic Zone 2015 27 $811,000 $28,000 What is the unit of observation? A) Firm B) Year C) Year-Profits D) Firm-Year Answer: D Explanation: The dataset contains data on # of employees, sales, and profits across firms (cross-section of firms) by year (over time). Thus, the unit of observation is Firm-Year. Difficulty: 2 Medium Topic: Data Features Learning Objective: 01-03 Differentiate units of observation. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 8 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 13) Use the following dataset to answer the following question. Firm Year # of Employees Sales Profits Jim's Auto 2014 23 $741,000 $52,000 Mechanic Zone 2014 15 $510,000 -$72,000 Jim's Auto 2015 31 $1,081,050 $101,000 Mechanic Zone 2015 27 $811,000 $28,000 What type of dataset is this? A) Cross-sectional B) Time-series C) Pooled cross-section D) Panel Answer: D Explanation: The dataset contains data on # of employees, sales, and profits across firms (cross-section of firms) by year (over time). It contains data on the same set of firms for both 2014 and 2015. Thus, it is a panel dataset. Difficulty: 2 Medium Topic: Data Features Learning Objective: 01-03 Differentiate units of observation. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 9 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 14) Use the following dataset to answer the following question. State Year Sales Tax Sales per Store Employees per Store Indiana 2014 7.25 $650,000 50 Illinois 2014 7.75 $625,000 65 Indiana 2015 8.00 $800,050 75 Illinois 2015 8.75 $525,000 55 What is the unit of observation? A) Panel B) State C) Sales-employee per store D) State-year Answer: D Explanation: The dataset contains data on sales tax, sales per store, and employees per store across states (cross-section of states) by year (over time). Thus, the unit of observation is State-Year. Difficulty: 2 Medium Topic: Data Features Learning Objective: 01-03 Differentiate units of observation. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 10 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 15) Use the following dataset to answer the following question. State Year Sales Tax Sales per Store Employees per Store Indiana 2014 7.25 $650,000 50 Illinois 2014 7.75 $625,000 65 Indiana 2015 8.00 $800,050 75 Illinois 2015 8.75 $525,000 55 What type of dataset is this? A) Pooled cross-section B) Panel C) Time Series D) State-year Answer: B Explanation: The dataset contains data on sales tax, sales per store, and employees per store across states (cross-section of states) by year (over time). It contains data on the same set of states for both 2014 and 2015. Therefore, it is a panel dataset. Difficulty: 2 Medium Topic: Data Features Learning Objective: 01-03 Differentiate units of observation. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 11 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 16) Use the following dataset to answer the following question. State Year Salary Location Sales Workshop? Aiden Rosen 2017 $98,000 Seattle Y Sadie Hubbard 2017 $83,000 Chicago N Jen Jordan 2018 $77,000 Seattle N Rob Jackson 2018 $79,000 Chicago N What is the unit of observation? A) Person-salary B) Person-year C) Person-year-location D) Salary Answer: B Explanation: The dataset contains data on salary, location, and sales workshop by name (cross-section of people) and year (over time). Therefore, the unit of observation is Person-Year. Difficulty: 3 Hard Topic: Data Features Learning Objective: 01-03 Differentiate units of observation. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 12 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 17) Use the following dataset to answer the following question. State Year Salary Location Sales Workshop? Aiden Rosen 2017 $98,000 Seattle Y Sadie Hubbard 2017 $83,000 Chicago N Jen Jordan 2018 $77,000 Seattle N Rob Jackson 2018 $79,000 Chicago N What type of dataset is this? A) Panel B) Time series C) Pooled cross-section D) Cross-section Answer: C Explanation: The dataset contains salary, location, and sales workshop attendance across people (cross-section of people) by year (over time). Therefore, it is a pooled cross-section dataset. It is not a panel dataset because 2018 collects data on different people than year 2017. Difficulty: 2 Medium Topic: Data Features Learning Objective: 01-03 Differentiate units of observation. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 13 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 18) Use the following dataset to answer the following question. Stock Day Stock Price Apple 5-13-18 $189 Apple 5-14-18 $187 Apple 5-15-18 $185 Apple 5-16-18 $188 What is the unit of observation? A) Apple-stock price B) Day-price C) Day D) Stock price Answer: C Explanation: The dataset contains stock price by day (over time) for Apple. Thus, it does not have a cross-sectional aspect to it. Therefore, the unit of observation is Day. Difficulty: 2 Medium Topic: Data Features Learning Objective: 01-03 Differentiate units of observation. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 14 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 19) Use the following dataset to answer the following question. Stock Day Stock Price Apple 5-13-18 $189 Apple 5-14-18 $187 Apple 5-15-18 $185 Apple 5-16-18 $188 What type of dataset is this? A) Panel B) Unstructured C) Pooled cross-section D) Time series Answer: D Explanation: The dataset contains stock price by day (over time) for Apple (no cross-section, only one firm). Therefore, the dataset contains a well-defined structure given its unit of observation (over time). Thus, it is time series data. Difficulty: 2 Medium Topic: Data Features Learning Objective: 01-03 Differentiate units of observation. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 15 Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 20) Use the following dataset to answer the following question. Name Year Salary Tenure MBA? Dmitry Haas 2017 $98,000 5 years Y Jackie Bay 2017 $83,000 3 years N Renee Topkis 2017 $77,000 12 years Y Maria Val 2017 $79,000 8 years N What is the unit of observation? A) Person-salary B) Person C) Person-Tenure D) Salary Answer: B Explanation: The dataset contains data on salary, tenure, and whether an employee has an MBA across people (cross-section of people) for 2017 only (point in time). Thus, the unit of observation is Person. Difficulty: 2 Medium Topic: Data Features Learning Objective: 01-03 Differentiate units of observation. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation