Business Analytics - Chapter 1

Which of the following best defines Business Analytics?

• The process of storing business data in databases

• The use of data analysis, statistical models, and predictive methods to aid decision-making

• A method of collecting customer feedback

• The application of intuition and experience in business decision-making

Answer explanation

Business Analytics helps businesses make data-driven decisions using analytical techniques.

Which of the following is NOT a type of Business Analytics?

• Descriptive Analytics

• Diagnostic Analytics

• Predictive Analytics

• Transactional Analytics

Answer explanation

Transactional analytics is not a recognized type of business analytics.

What is the primary purpose of descriptive analytics?

• To forecast future trends

• To summarize past data and identify patterns

• To determine the root cause of past events

• To recommend actions based on predictions

Answer explanation

Descriptive analytics focuses on summarizing historical data.

Which of the following best describes structured data?

• Data organized in tables, such as databases and spreadsheets

• Unformatted data, including emails and social media posts

• A mix of structured and unstructured data

• Data stored in image and video formats

Answer explanation

Structured data is well-organized and stored in tables/databases.

Which type of analytics answers the question, “Why did this happen?”

• Descriptive Analytics

• Diagnostic Analytics

• Predictive Analytics

• Prescriptive Analytics

Answer explanation

Diagnostic analytics focuses on identifying the causes of past trends.

Which of the following is an example of a strategic decision in business?

• Adjusting inventory levels for seasonal demand

• Deciding to launch a new product line

• Scheduling employee shifts for next week

• Resolving a customer complaint

Answer explanation

Strategic decisions focus on long-term business goals.

What is the main goal of prescriptive analytics?

• To describe what has happened

• To analyze why something happened

• To predict what might happen

• To recommend the best course of action

Answer explanation

Prescriptive analytics suggests actions based on insights from data.

What type of data includes customer purchase history, sales records, and payment transactions?

• Time-Series Data

• Geospatial Data

• Transactional Data

• Metadata

Answer explanation

Transactional data includes sales and payment records.

Which of the following is an example of geospatial data?

• Customer feedback on a survey

• A company’s profit and loss statement

• GPS coordinates of a delivery truck

• A company’s employee records

Answer explanation

Geospatial data includes location-based information like GPS coordinates.

Predictive analytics can determine the best course of action for a business based on data insights.

• True

• False

Answer explanation

Predictive analytics forecasts future trends, while prescriptive analytics recommends actions.