Business Analytics 1

What is Business Analytics primarily used for?

• Marketing
• Risk management
• Helping managers make decisions
• Creative design

Answer explanation

Business Analytics is primarily used to assist managers in making informed, fact-based decisions.

Which of the following is NOT a typical application of Business Analytics?

• Pricing
• Customer segmentation
• Product design
• Supply chain design

Answer explanation

Typical applications focus on operational or financial decisions, not product design.

What are the foundational elements of Business Analytics?

• Business Intelligence and Statistics
• Marketing and Management
• Economics and Finance
• Psychology and Sociology

Answer explanation

Business Intelligence and Statistics are core to analyzing data and supporting business operations.

What software is widely used in Business Analytics for manipulating data?

• SAS Analytics
• Tableau
• IBM Cognos Express
• Excel

Answer explanation

Excel is known for its wide use in data manipulation and analysis in Business Analytics.

Which type of analytics predicts future trends?

• Descriptive analytics
• Predictive analytics
• Prescriptive analytics
• Quantitative analytics

Answer explanation

Predictive analytics uses historical data to make predictions about future events.

What is the primary challenge in utilizing Business Analytics?

• High costs
• Inadequate data
• Simplistic models
• Lack of understanding how to use it

Answer explanation

A major challenge is often the lack of understanding of how to effectively use analytics tools and data.

What does prescriptive analytics primarily focus on?

• Understanding past performance
• Predicting future trends
• Identifying best actions to take
• Visualizing data

Answer explanation

Prescriptive analytics focuses on identifying the best courses of action.

What is the role of descriptive models in Business Analytics?

• They predict what will happen next
• They explain behavior and allow "what-if?" questions
• They optimize decision making
• They visualize complex data

Answer explanation

Descriptive models explain behavior and allow exploration through "what-if?" scenarios.

What is an essential tool for predictive analytics?

• Spreadsheet technology
• Descriptive models
• Historical data analysis
• Prescriptive models

Answer explanation

Predictive analytics heavily relies on historical data analysis to forecast future trends.

Which of the following best describes data mining in the context of Business Analytics?

• Creating data
• Analyzing large sets of existing data
• Storing data
• Visualizing data

Answer explanation

Data mining involves analyzing large sets of data to discover patterns and insights.