Business Analytics 3rd Edition Evans Test Bank
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 1 / 4
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
- helps detect hidden patterns in large quantities of data to group data into sets to predict
- can use mathematical techniques with optimization to make decisions that take into account
campaigns.
behavior.
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.
1 2 / 4
Chapter 1: Introduction to Business Analytics Business Analytics, 3e 11
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. 3 / 4
- Chapter 1 Introduction to Business Analytics Business Analytics, 3e
Answer: D
Diff: 2
Blooms: Understand
Topic: Models in Business Analytics
LO1: Define and list the elements of a decision model.
8) Identify the uncontrollable variable from the following inputs of a decision model.
- investment returns
- machine capacities
- staffing levels
- intercity distances
Answer: A
Diff: 1
Blooms: Apply
Topic: Models in Business Analytics
LO1: Define and list the elements of a decision model.
9) Which of the following inputs of a decision model is an example of data?
- estimated consumer demand
- inflation rates
- costs
- investment allocations
Answer: C
Diff: 1
Blooms: Remember
Topic: Data for Business Analytics
LO1: Define and list the elements of a decision model.
10) Descriptive decision models:
- aim to predict what will happen in the future.
- describe relationships but do not tell a manager what to do.
- help analyze the risks associated with various decisions.
- do not facilitate evaluation of different decisions.
Answer: B
Diff: 2
Blooms: Understand
Topic: Models in Business Analytics
LO1: Explain the concept of a model and various ways a model can be characterized.
11) Prescriptive decision models help:
- make predictions of how demand is influenced by price.
- make trade-offs between greater rewards and risks of potential losses.
- decision makers identify the best solution to decision problems.
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