Big Data - Answers Both structured and unstructured data in very large volumes that are difficult to
process using traditional tools
Structured Data - Answers Data that is organized and easily searchable, such as multiple-choice
survey responses
Unstructured Data - Answers Data that is not easily organized, such as medical notes or text
responses
Data Mining - Answers Process of discovering patterns and relationships in large datasets
Big Data Warehouse - Answers A centralized system used to store and manage Big Data
Nominal Data - Answers Data with no numbers and no order (e.g., gender, department)
Ordinal Data - Answers Data with order or ranking but no equal intervals (e.g., job levels)
Interval Data - Answers Numerical data with order but no true zero (e.g., temperature in Fahrenheit)
Ratio Data - Answers Numerical data with a true zero indicating absence (e.g., price, years employed)
NOIR - Answers Nominal, Ordinal, Interval, Ratio
Reliable Measurement - Answers A measurement that is consistent and repeatable
Valid Measurement - Answers A measurement that accurately measures what it is intended to
measure
Systematic Error - Answers Error built into the process that must be fixed to go away
Random Error - Answers Error that occurs unpredictably and usually balances out over time
Data Quality Issues - Answers Missing values, impossible numbers, or out-of-range data
Observational Study - Answers A study with no treatment and no control group
Experimental Study - Answers A study that includes a treatment and a control group
Blinding - Answers A technique used to reduce bias by limiting who knows the treatment assignment
Faulty Operationalization - Answers Failure to clearly define variables or how they are measured
Measurement Bias - Answers When the measurement does not accurately reflect what is being
studied
Response Bias - Answers When respondents answer differently due to how or by whom a question is
asked
Information Bias - Answers Misuse or misunderstanding of collected data
Association - Answers A relationship between variables without implying cause
Causation - Answers One variable directly causes a change in another
Association vs Causation - Answers Association does not imply causation
Descriptive Analytics - Answers Analytics that describe what happened in the past
Predictive Analytics - Answers Analytics that use past data to forecast future outcomes
Prescriptive Analytics - Answers Analytics that recommend actions to optimize future results
Big Data Example - Answers FBI filtering suspects using multiple databases
Not Big Data Example - Answers Local shop sending Christmas cards to customers
Interval vs Ratio Difference - Answers Interval has no true zero; Ratio has a meaningful zero
Reliable but Not Valid - Answers Consistent results that do not measure the correct concept
Valid but Not Reliable - Answers Accurate measurement that is not consistent
Probability as a Managerial Tool - Answers Used by managers to evaluate risk versus success when
making decisions
Risk - Answers Possibility of loss or negative outcome
Success - Answers Positive or desired outcome of a decision
Probability - Answers Likelihood that an event will occur
Affordable Risk - Answers Risk level that an organization can financially tolerate
Profitable Outcome - Answers A result that generates financial gain
Beneficial Outcome - Answers A result that creates value beyond profit
Intersection (AND) - Answers Probability that two events occur together; calculated by multiplying
probabilities
Union (OR) - Answers Probability that at least one of two events occurs; calculated by adding
probabilities minus the intersection
p(A and B) Formula - Answers p(A) × p(B)
p(A or B) Formula - Answers p(A) + p(B) − p(A and B)
Conditional Probability - Answers Probability of an event occurring given that another event has
already occurred