Data Analytics | Determine Business Needs | Part 1

What is the primary aim of data analytics?

• To complicate decision-making

• To discover useful information

• To ignore data

• To increase costs

Answer explanation

The primary aim of data analytics is to discover useful information from data, enabling informed decision-making. The other options do not align with the purpose of data analytics.

Which of the following is NOT an example of the importance of data analytics?

• Lean Management

• Data Cataloguing and Governance

• Employee Satisfaction Surveys

• Smarter Employee Retention

Answer explanation

Employee Satisfaction Surveys focus on gathering feedback rather than analyzing data for decision-making. In contrast, Lean Management, Data Cataloguing and Governance, and Smarter Employee Retention all emphasize the strategic use of data analytics.

What does Lean Management focus on?

• Increasing costs

• Hiring more employees

• Improving quality and reducing costs

• Ignoring customer feedback

Answer explanation

Lean Management focuses on improving quality and reducing costs by eliminating waste and enhancing processes, making it more efficient and customer-centric.

What is a benefit of data analytics related to customer experience?

• Mitigating risks and frauds

• Increasing operational inefficiency

• Reducing product relevance

• Ignoring customer needs

Answer explanation

Data analytics helps in mitigating risks and frauds by analyzing customer behavior and transaction patterns, allowing businesses to identify anomalies and protect customer interests, thus enhancing overall customer experience.

Which step comes first in the data analytics process?

• Analyze and Visualize Data

• Formulate a Problem Statement

• Collect and Organize Data

• Interpret the Findings

Answer explanation

The first step in the data analytics process is to formulate a problem statement. This defines the focus of the analysis and guides subsequent steps like data collection and analysis.

What is the purpose of data cataloging and governance?

• To ignore data storage

• To complicate data retrieval

• To increase data confusion

• To manage varied data types and volumes

Answer explanation

Data cataloging and governance are essential for managing varied data types and volumes effectively. They help organizations organize, access, and utilize data efficiently, ensuring clarity and reducing confusion.

What does the term 'personalization' in data analytics refer to?

• Making generic offers

• Ignoring customer preferences

• Tailoring experiences to individual customers

• Reducing customer interaction

Answer explanation

The term 'personalization' in data analytics refers to tailoring experiences to individual customers, enhancing engagement and satisfaction, unlike making generic offers or ignoring preferences.

Which of the following is a method to mitigate risks and fraud?

• Ignoring security threats

• Reducing data analysis

• Using predictive fraud propensity models

• Increasing data storage costs

Answer explanation

Using predictive fraud propensity models helps identify potential fraud before it occurs, allowing organizations to take proactive measures. This method effectively mitigates risks, unlike the other options which ignore or increase costs.

What is the role of data in decision-making?

• To ignore facts

• To support informed decisions

• To create confusion

• To complicate choices

Answer explanation

Data plays a crucial role in decision-making by providing factual information that supports informed decisions. It helps individuals and organizations analyze options and outcomes, leading to better choices.

What is an example of a third-party source for data collation?

• Internal company reports

• Employee surveys

• Customer feedback forms

• Social media posts

Answer explanation

Social media posts are considered a third-party source for data collation as they provide external insights and opinions from users, unlike internal reports or surveys which are generated within the company.