Business Analytics for Management Decision

1. What is not part of data visualization_____________.

a. Histogram
b. Bar Chart
c. Scatter plot
d. None
2. Which is not part of descriptive analytics
a. Median
b. Mean
c. Correlation
d. Mode
3. Which is not part of hypothesis testing?
a. Z
b. T
c. Chi-square
d. None
4. Which one is odd one?
a. Variance
b. SD
c. CoD
d. Mean
5. Which one is odd one?
a. SPSS
b. STATA
c. QSB
d. EVIEWS
6. The sum of probability is ___________.
a. 1.0
b. 10.0
c. 0.01
d. 100
7. The value of joint probability
a. Positive
b. Negative
c. Between 10 to 100
d. Between 0 and 5
8. The exponential distribution is __________.
a. Bimodal
b. Symmetric
c. Skewed to the left
 d. None

9. The normal distribution is also referred to as ______________.

a. The Poisson distribution
b. The de Moivre distribution
c. The exponential distribution
d. The Gaussian distribution

10. What is Business Analytics and describe its types?

Ans-WHAT IS DATA ANALYTICS?
Data Analytics refers to the process of analyzing datasets to draw out the insights they
contain. Data Analytics empowers Business Analysts to take raw data and reveal
patterns to extract significant knowledge. Business Analysts use Data Analytics
techniques in their work to make smart business decisions. The use of Data Analytics
in Business Analysis can help organizations understand their consumers’ patterns and
need better. Ultimately, organizations can use various types of data analytics to boost
business performance and improve their products.

There are mainly 4 broad categories of analytics. These different types of analytics
used by Business Analysts empower them with0 insights that can help them improve
business performance. Let’s take a detailed look at the four types of analytics.

Descriptive Analytics
Diagnostic Analytics
Predictive Analytics
Prescriptive Analytics
1. DESCRIPTIVE ANALYTICS
It is the most straightforward one in the top categories of analytics. Descriptive
analytics shuffles raw data from various data sources to give meaningful insights into
the past, i.e., it helps you understand the impact of past actions. However, these
discoveries can only signal whether something is right or not, without any
clarification. Therefore, Business Analysts don’t prescribe exceptionally data-driven
organizations to agree to descriptive analytics only; they’d preferably combine it with
other types of analytics.

It is a significant step to make raw data justifiable to stockholders, investors, and

leaders. This way, it becomes simple to recognize and address shortcomings that
require attention. The two fundamental procedures included in descriptive analytics
are data aggregation and data mining. It is to be noted that this technique is beneficial
to understand the underlying behavior and not make any estimations.

2. DIAGNOSTIC ANALYTICS
Diagnostic Analytics is one of the 4 broad categories of analytics utilized to decide why
something occurred in the past. It is characterized by techniques like drill-down, data
discovery, data mining, and correlations. Diagnostic Analytics investigates data to
comprehend the main drivers of the events. It is useful in figuring out what elements
and events led to a specific outcome. It generally utilizes probabilities, likelihoods, and
the distribution of results for the analysis.

It gives comprehensive insights into a particular problem. Simultaneously, an

organization must have detailed data available to them.

3. PREDICTIVE ANALYTICS
Predictive analytics is one of the four types of data analytics used by Business Analysts
that determines what will probably occur. It utilizes the discoveries of descriptive and
diagnostic analytics to distinguish groups and exceptional cases and anticipate future
patterns, making it an essential tool for forecasting.

One of the primary applications of predictive analytics is sentiment analysis. All the
opinions posted via online media are gathered and analyzed (existing text data) to
forecast the individual’s opinion on a specific subject as positive, negative, or neutral
(future prediction). Hence, predictive analytics comprises designing and validating
models that render precise predictions.

4. PRESCRIPTIVE ANALYTICS
The basis of these types of data analytics used in Business Analytics is predictive
analytics. Still, it goes past the other three categories of analytics mentioned above to
recommend future solutions. It can recommend all favorable outcomes as per a
predefined game-plan and propose a different course of action to get to a specific
result. Therefore, it utilizes a robust feedback system that continually learns and
updates the connection between the actions and the outcome.

Prescriptive analytics utilizes emerging technologies and tools, such as Machine

Learning, Deep Learning, and Artificial Intelligence algorithms, making it modern to
execute and oversee. Furthermore, this cutting edge data analytics type requires
internal as well as external past data to provide users with favorable outcomes. That
is why before Business Analysts suggest considering the needed efforts against a
demanded added value before implementing prescriptive analytics to any business
system.
 CONCLUSION
Descriptive Analytics, Diagnostic Analytics, Predictive Analytics, and Prescriptive
Analytics are the 4 types of analytics used by Business Analysts to unlock raw data’s
potential in order to improve business performance. If you’re someone who loves to
play with data and wants to build a successful career in Business Analytics, check our
Integrated Program In Business Analytics (IPBA) in collaboration with IIM Indore. It is a
10-month-long Future Leaders Program, aimed at senior executives and mid-career
professionals to help them give their career a significant boost.
11. What do you mean by decision models? Write all steps for the decision models.
Ans. DECISION MODEL:-
A Decision Model is a prescription for how the business arrives at fact-based
conclusions that collectively represent the intended business logic behind a business
decision.
7 steps of the decision-making process:-
Identify the decision.
Gather relevant info.
Identify the alternatives.
Weigh the evidence.
Choose among the alternatives.
Take action.
Review your decision.
12. Explain the meaning of an activity diagram. What are the important elements of an activity
diagram?

ANS:- meaning of activity diagram:-

In Unified Modeling Language (UML), an activity diagram is a graphical representation
of an executed set of procedural system activities and considered a state chart
diagram variation. Activity diagrams describe parallel and conditional activities, use
cases and system functions at a detailed level.
THE important elements of an activity diagram:-
Initial Node - The initial node represents the starting point of the activity diagram.
Activity Final Node - The activity final node represents the termination point of the
activity. Action Node - An action node is a type of activity node that represents a
single action or behavior of the activity being modeled.
13. Define PaaS, SaaS, IaaS and CaaS.
What is PaaS with example?
Image result for PaaS DEFINITION
 PaaS (Platform as a Service), as the name suggests, provides you computing platforms
which typically includes operating system, programming language execution
environment, database, web server etc. Examples: AWS Elastic Beanstalk, Windows
Azure, Heroku, Force.com, Google App Engine, Apache Stratos.

What is SaaS and example?

Software as a service (SaaS) allows users to connect to and use cloud-based apps over
the Internet. Common examples are email, calendaring and office tools (such as
Microsoft Office 365). SaaS provides a complete software solution which you purchase
on a pay-as-you-go basis from a cloud service provider.

What does IaaS mean?

Infrastructure as a service (IaaS) is a type of cloud computing service that offers
essential compute, storage and networking resources on demand, on a pay-as-you-go
basis. IaaS is one of the four types of cloud services, along with software as a service
(SaaS), platform as a service (PaaS) and serverless.
Infrastructure as service or IaaS is the basic layer in cloud computing model. Common
examples: DigitalOcean, Linode, Rackspace, Amazon Web Services (AWS), Cisco
Metapod, Microsoft Azure, Google Compute Engine (GCE) are some popular examples
of Iaas.

What do you mean by CaaS?

Containers as a service
Containers as a service ( CaaS ) is a cloud-based service that allows software
developers and IT departments to upload, organize, run, scale, and manage containers
by using container-based virtualization.
Examples of CaaS services are Amazon Elastic Container Service (ECS), Amazon
Fargate, and Azure Container Instances (ACI).
14. What do you mean by scope creep? How to avoid scope creep?

15. Define Hypothesis. What are the different types of hypotheses? Why we need Hypothesis
Testing? And how can we calculate the Hypothesis Testing.
ANS: - What is Hypothesis?
Hypothesis is an assumption that is made on the basis of some evidence. This is the
initial point of any investigation that translates the research questions into a
prediction. It includes components like variables, population and the relation between
the variables. A research hypothesis is a hypothesis that is used to test the
relationship between two or more variables.

Types of Hypothesis
There are six forms of hypothesis and they are:

Simple hypothesis
Complex hypothesis
Directional hypothesis
Non-directional hypothesis
Null hypothesis
Associative and casual hypothesis
Simple Hypothesis
It shows a relationship between one dependent variable and a single independent
variable. For example – If you eat more vegetables, you will lose weight faster. Here,
eating more vegetables is an independent variable, while losing weight is the
dependent variable.

Complex Hypothesis
It shows the relationship between two or more dependent variables and two or more
independent variables. Eating more vegetables and fruits leads to weight loss, glowing
skin, reduces the risk of many diseases such as heart disease, high blood pressure and
some cancers.

Directional Hypothesis
It shows how a researcher is intellectual and committed to a particular outcome. The
relationship between the variables can also predict its nature. For example- children
aged four years eating proper food over a five-year period are having higher IQ levels
than children not having a proper meal. This shows the effect and direction of effect.

Non-directional Hypothesis
It is used when there is no theory involved. It is a statement that a relationship exists
between two variables, without predicting the exact nature (direction) of the
relationship.

Null Hypothesis
It provides the statement which is contrary to the hypothesis. It’s a negative
statement, and there is no relationship between independent and dependent
variables. The symbol is denoted by “HO”.

Associative and Causal Hypothesis

Associative hypothesis occurs when there is a change in one variable resulting in a
change in the other variable. Whereas, causal hypothesis proposes a cause and effect
interaction between two or more variables.
 Examples of Hypothesis
Following are the examples of hypothesis based on their types:

Consumption of sugary drinks every day leads to obesity is an example of a simple

hypothesis.
All lilies have the same number of petals is an example of a null hypothesis.
If a person gets 7 hours of sleep, then he will feel less fatigue than if he sleeps less.
Functions of Hypothesis
Following are the functions performed by the hypothesis:

Hypothesis helps in making an observation and experiments possible.

It becomes the start point for the investigation.
Hypothesis helps in verifying the observations.
It helps in directing the inquiries in the right directions.
Why do we need hypothesis testing?
The purpose of hypothesis testing is to determine whether there is enough statistical
evidence in favor of a certain belief, or hypothesis, about a parameter.
How do you calculate hypothesis testing?
Using the sample data and assuming the null hypothesis is true, calculate the value of
the test statistic. To conduct the hypothesis test for the population mean μ, we use
the t-statistic t ∗ = x ¯ − μ s / n which follows a t-distribution with n - 1 degrees of
freedom.

16. (i) What do you mean by confidence interval?

(ii) Define Statistical estimation.
(iii) Given the population of elements: {22,24,26}. (a) Write down all possible samples of size
two, chosen by simple random sampling. (b) Calculate the variance of the population. (c)
Calculate the variance of the sample averages.