Statistics and Business Analytics Overview

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Questions and Answers

What is the primary focus of statistics?

Clearing seasonal inventory by reducing prices

Predicting future trends based on past data

Collecting, analyzing, presenting, and interpreting data (correct)

Using data and mathematical models to gain insight about business operations

Which type of analysis uses models constructed from past data to predict the future?

Analytical techniques that describe what happened in the past

Prescriptive analysis

Descriptive analysis

Predictive analysis (correct)

What is the primary goal of business analytics?

To use information technology and mathematical models to gain insight about business operations

To predict future trends based on past data

To clear seasonal inventory by reducing prices

To transform data into insight for making better decisions (correct)

In business analytics, what does prescriptive analysis yield?

A best course of action to take Signup and view all the answers

What is the scope of business analytics in Example 1.1 Retail Markdown Decisions?

Reducing prices to clear seasonal inventory Signup and view all the answers

What does analytics refer to in the context of business operations?

Data, information technology, statistical analysis, quantitative methods, and mathematical or computer-based models Signup and view all the answers

Which type of analytics involves predicting sales based on price?

Predictive analytics Signup and view all the answers

In the context of finance, what do financial advisors use to guide their investment advice?

Price-earnings ratios and dividend yields Signup and view all the answers

What do economists use statistical information for in the field of economics?

Making forecasts about the future of the economy Signup and view all the answers

What are the entities on which data are collected called?

Elements Signup and view all the answers

What is the scale that indicates the data summarization and statistical analyses that are most appropriate?

Interval Signup and view all the answers

Which scale of measurement includes nonnumeric labels or numeric codes to identify an attribute of an element?

Nominal Signup and view all the answers

What does a data set with n elements contain?

$n$ elements Signup and view all the answers

What type of statistical information helps administrators assess the performance of computer networks?

Other relevant statistical information Signup and view all the answers

What kind of applications use electronic point-of-sale scanners to collect data?

Marketing research applications Signup and view all the answers

What do public accounting firms use when conducting audits for their clients?

Statistical sampling procedures Signup and view all the answers

Study Notes

Primary Focus of Statistics

The primary focus of statistics is to extract insights and make informed decisions from data.

Types of Analysis

Predictive analysis uses models constructed from past data to predict the future.
Business analytics involves descriptive, predictive, and prescriptive analysis.
Prescriptive analysis in business analytics yields recommended actions or decisions.

Business Analytics

The primary goal of business analytics is to drive business decisions and actions.
In retail, business analytics is used to make decisions on markdowns, such as determining the optimal discount amount.

Analytics in Business Operations

Analytics in the context of business operations refers to the practice of using data and statistical methods to drive business decisions.

Types of Analytics

Predictive analytics involves predicting sales based on price and other factors.
Financial advisors use statistical information to guide their investment advice in the field of finance.

Economics

Economists use statistical information to understand economic trends and patterns.

Data Collection

Entities on which data are collected are called elements.
A data set with n elements contains n observations or data points.

Scales of Measurement

The scale of measurement indicates the data summarization and statistical analyses that are most appropriate.
Nominal scale includes nonnumeric labels or numeric codes to identify an attribute of an element.

Applications of Data

Statistical information on network performance helps administrators assess the performance of computer networks.
Retail applications use electronic point-of-sale scanners to collect data.
Public accounting firms use statistical information when conducting audits for their clients.

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Description

Learn about the definitions and applications of statistics and business analytics in business and economic contexts. Understand how data, information technology, and quantitative methods are used to make informed managerial decisions.