UNIT1 - QUESTION BANK

PART A (2 MARKS)

1. Define Business Analytics.

Business analytics, or simply analytics, is the use of data, information technology, Statistical analysis, quantitative methods, and mathematical or computer-
based models to help managers gain improved insight about their business operations and make better, fact-based decisions. Business analytics is “a process
of transforming data into actions through analysis and insights in the context of organizational decision making and problem solving.

2. Write about Statistical Analysis.

Statistical analysis is the process of collecting and analyzing samples of data to uncover patterns and trends and predict what could happen next to make
better and more scientific decisions. Once the data is collected, statistical analysis can be used for many things in your business.

Some include:
 Summarizing and presenting the data in a graph or chart to present key findings
 Discovering crucial measures within the data, like the mean
 Calculating if the data is slightly clustered or spread out, which also determines
similarities.
 Making future predictions based on past behavior
 Testing a hypothesis from an experiment

2. Define Data Visualization.

It is the practice of converting raw information (text, numbers, or symbols) into a graphic format. The data is visualized with a clear purpose: to show logical correlations
between units, and define inclinations, tendencies, and patterns. Depending on the type of logical connection and the data itself, visualization can be done in a suitable
format. So, it’s dead simple, any analytical report contains examples of data interpretations like pie charts, comparison bars, demographic maps, and much more
3. What is Data Cleansing?
During the exploration phase, analysts may notice that their data is poorly structured and in need of tidying up to improve its quality. This is where data cleansing comes
into play. Cleansing data includes:
 Correcting entry errors
 Removing duplicates or outliers
 Eliminating missing data

 Masking sensitive or confidential information like names or addresses

4. Elucidate the steps involved in Business Analytics.

 Business Problem Framing
 Analytics Problem Framing
 Data
 Methodology selection and model building

 Deployment
5. What are the types of Analytics?
For different stages of business analytics huge amount of data is processed at various steps. Depending on the stage of the workflow and the requirement of data analysis,
there are four main kinds of analytics – descriptive, diagnostic, predictive and prescriptive. These four types together answer everything a company needs to know- from
what’s going on in the company to what solutions to be adopted for optimizing the functions.
1) Descriptive Analytics: Describing or summarizing the existing data using existing business intelligence tools to better understand what is going on or what has
happened.
2) Diagnostic Analytics: Focus on past performance to determine what happened and why. The result of the analysis is often an analytic dashboard.
3) Predictive Analytics: Emphasizes on predicting the possible outcome using statistical models and machine learning techniques.
4) Prescriptive Analytics: It is a type of predictive analytics that is used to recommend one or more course of action on analyzing the data.
6. What are the steps in Business Analytics Lifecycle?
Step 1: Identifying the Problem
Step 2: Exploring Data
Step 3: Analysis
Step 4: Prediction and Optimization
Step 5: Making a Decision and Evaluating the Outcome
Step 6: Optimizing and Updating

7. What is Data collection?

Data collection is the methodological process of gathering information about a specific subject. It’s crucial to ensure your data is complete during the collection phase and
that it’s collected legally and ethically. If not, your analysis won’t be accurate and could have far-reaching consequences. In general, there are three types of consumer data:
 First-party data, which is collected directly from users by your organization
 Second-party data, which is data shared by another organization about its customers (or its first-party data)

 Third-party data, which is data that’s been aggregated and rented or sold by organizations that don’t have a connection to your company or users

8. What are the Data collection Methods?

1. Surveys
2. Transactional Tracking
3. Interviews and Focus Groups
4. Observation
5. Online Tracking
6. Forms
7. Social Media Monitoring
8.
9. What is Data preparation?

Data preparation, also sometimes called “pre-processing,” is the act of cleaning and consolidating raw data prior to using it for business analysis. It might not be the most
celebrated of tasks, but careful data preparation is a key component of successful data analysis.

10. What are the types of Hypothesis?

 Alternative Hypothesis
 Null Hypothesis
 Non-Directional Hypothesis
 Directional Hypothesis
 Statistical Hypothesis

11. What are the common types data visualizations.

The main types of data visualization include charts, graphs and maps in the form of line charts, bar graphs, tree charts, dual-axis charts, mind maps, funnel charts and
heatmaps.

12. What are the Measures of variation?

Variability in the data is measured using the following measures:

• Range
• Inter-Quartile Distance (IQD)
• Variance
• Standard Deviation

13. What is Chebyshev’s Theorem

Empirical rule that allows us to predict proportion of observations that is likely to lie between an interval defined using mean and standard deviation.
Probability of finding a randomly selected value in an interval defined by
P (μ- k σ ≤ X ≤ μ + k σ) ≥ 1- 1/ k2 Is useful when the value of k>1.
14. What is Kurtosis?

Kurtosis is a measure of shape, aimed at shape of the tail that is whether the tail of the data
distribution is heavy or light.
∑ 𝑛 (𝑋 − 𝑋̅ )4⁄𝑛
𝑖
𝐾𝑢𝑟𝑡𝑜𝑠𝑖𝑠 = 𝑖=1
𝜎4
15. What are the types of distribution in kurtosis.

If kurtosis value is less than 3 it is called platykurtic distribution and if the value is greater
than 3 it is called leptokurtic distribution. The kurtosis value of 3 indicates the standard
distribution also called as mesokurtic distribution.

16. What are the steps in Hypothesis Testing.

1. Identification of null and alternative hypothesis

2. Identification of test statistic.
3. Calculation of p-value.
4. Decision criteria for rejection or retention of null hypothesis.
17. What is ANOVA?

Analysis of Variance, it is a statistical analysis technique in which data sets are compared
and measured to determine their significance. This test effectively measures how significant
the interaction is between variables; they analyze the variance.

18. What is Bessel’s Correction?

While calculating sample variance S2, the sum of squared deviation n
∑ (𝑋𝑖 − 𝑋̅ )2 is
𝑖=
divided by (n-1). This is known as Bessel’s Correction.

19.What is Ogive Curves?

The cumulative histograms are called Ogive curves.

20.What is Population and Sample?

Population also known as universal set is the set of all possible data for a given context

whereas Sample is the subset taken from the population.

21.Write the formula to calculate Px position in the data.

Position corresponding to Px≈ (𝑛+1)

where n is the no. of observations in the data.

100
 22. What is the mathematical representation of the Decision Model?
TC = F + VQ
TC = total cost
V = unit variable cost F = fixed cost
Q = quantity produced

23. What is Optimization and Optimal Solution?

Optimization is the process of finding a set of values for decision variables that minimize or
maximize some quantity of interest, profit, revenue, cost, time, and so on—called the objective
function. Any set of decision variables that optimizes the objective function is called an optimal
solution.

24. What is Model Validation?

Model validation is defined within regulatory guidance as “the set of processes and activities
intended to verify that models are performing as expected, in line with their design objectives, and
business uses.” It also identifies “potential limitations and assumptions, and assesses their possible
impact.”

25. How data can be classified?

Data can be classified into four groups categorical data, Ordinal data, Interval data, and Ratio data.

26. What is the Excel function to find the Standard Deviation of Population and Sample?

 STDEV.P (data range) for population

 STDEV.S (data srange) for sample

27. What are the types of Data Interpretation?

 Qualitative data Interpretation

 Observations:
 Groups of people
 Interviews
 Content Analysis
 Narrative Analysis
 Discourse Analysis
 Quantitative data Interpretation
 Median
 Mean:
 Standard deviation:
 Regression analysis
 cohort Analysis
 Predictive Analysis
 Prescriptive Analysis
 Conjoint Analysis
 Cluster analysis
PART B QUESTION (16 MARKS)
1. Write about Business Analytics Lifecycle.
2. Elaborate about Data Collection.
3. What are the steps are involved in Data Preparation Process.
4. Write about the types of Data Interpretation.
5. Write about Deployment and Iteration and its benefits and challenges.
6. Write about the Measures of Skewness and Kurtosis.
7. The Cumulative grade point average (CGPA) of 40 students are shown in the table,
CGPA of students
3.36 1.56 1.48 1.43 2.64 1.48 2.77 2.20 1.38 2.84

1.88 1.83 1.87 1.95 3.43 1.28 3.67 2.23 1.71 1.68
2.57 3.74 1.98 1.66 1.66 2.96 1.77 1.62 2.74 3.35
1.80 2.86 3.28 1.14 1.98 2.96 3.75 1.89 2.16 2.07
(a) Calculate the mean , median and mode .Calculate the standard deviation.
(b) Calculate the 90th and 95th percentile of CGPA
(c) Calculate the inner quartile range (IQR)
(d) The Dean of the school believes that the CGPA is a right tailed distribution. Is there an
evidence to support dean’s belief?
(e) Create a histogram for the data, what should be the ideal number of bins in the
histogram.
8. What is outlier detection? How do we use box plot, scatter plot and histogram to detect
outliers.
9. The TATA steel company manufactures steel bars. If the production process is working
properly, it turns out steel bars with mean length of at least 2.8 feet with a standard
deviation of 0.20 foot (as determined from engineering specifications on the production
equipment involved). Longer steel bars can be used or altered, but shorter bars must be
scrapped. A sample of 25 bars is selected from the production line. The sample indicates
a mean length of 2.73 feet. The company wants to determine whether the production
equipment needs to be adjusted.
a. State the null and alternative hypotheses.
b. If the company wants to test the hypothesis at the 0.05 level of significance,
what decision would be made using the critical value approach to hypothesis
testing?
c. If the company wants to test the hypothesis at the 0.05 level of significance,
what decision would be made using the p-value approach to hypothesis
testing?
d. Interpret the meaning of the p-value in this problem.
e. Compare your conclusions in (b) and (c).
10. You are given the following data pertaining to kilowatt of electricity consumed
by 100 persons in Calicut
Consumption (KW 0-10 10-20 20-30 30-40 40-50
Hours)
No. of users 6 25 36 20 16
Calculate the coefficient of skewness.

11. There are 800 students in the School of Business Administration. There are four
majors in the School: Accounting, Finance, Management, and Marketing. The
following shows the number of students in each major.

Major Number of
Students
Accounting 240
Finance 160
Management 320
Marketing 80

Develop a percent frequency distribution and construct a bar chart and a pie chart.