MISY 5380 EXAM REVIEW QUESTIONS WITH
ACCURATE SOLUTIONS 2026
▶ Classification Accuracy? Answer:By counting the classification errors on
a sufficiently large validation set and/or test set that is representative of the
population, we will generate an accurate measure of the model's
classification performance
▶ Classification confusion matrix? Answer:Displays a model's correct and
incorrect classifications
▶ Overall Error Rate? Answer:percentage of misclassified observations
Measure of classification accuracy are based on the classification
confusion matrix
▶ Cutoff Value? Answer:Probability value used to understand the tradeoff
between Class 1 error rate and Class 0 error rate
▶ Cumulative lift chart? Answer:Compares the number of actual Class 1
observations identified if considered in decreasing order of their estimated
probability of being in Class 1 and compares this to the number of actual
Class 1 observations identified if randomly selected
▶ Decile-wise lift chart? Answer:Another way to view how much better a
classifier is at identifying Class 1 observations than random classification.
Observations are ordered in decreasing probability of Class 1 membership
and then considered in 10 equal-sized groups
▶ Prediction Accuracy? Answer:The measures of accuracy are some
function of the error in estimating an outcome for an observation i
▶ k-nearest neighbors? Answer:This method can be used either to classify
an outcome category or predict a continuous outcome.
k-NN uses the k most similar observations from the training set, where
similarity is typically measured with Euclidean distance
▶ Classification and Regression Trees? Answer:Partition a data set of
observations into increasingly smaller and more homogeneous subsets.
, At each iteration of the CART method, a subset of observations is split into
two new subsets based on the values of a single variable
▶ Logistic regression? Answer:Attempts to classify a categorical outcome
(y = 0 or 1) as a linear function of explanatory variables
▶ What-If Models? Answer:They provide easy-to-use, sophisticated
mathematical and logical functions, allowing for easy instantaneous
recalculation for a change in model inputs
▶ Influence diagram? Answer:Visual representation that shows which
entities influence others in a model
▶ Data Table? Answer:Excel tool which quantifies the impact of changing
the value of a specific input on an output of interest
▶ One-way data table? Answer:Summarizes a single input's impact on the
output
▶ Two-way data table? Answer:summarizes two inputs' impact on the
output.
▶ Goal Seek? Answer:Excel tool that allows the user to determine the
value of an input cell that will cause the value of a related output cell to
equal some specified value (the goal).
▶ SUMPRODUCT? Answer:Function that returns the sum of the products
of elements in a set of arrays
▶ COUNTIF? Answer:Counts the number of components having a positive
order quantity
▶ VLOOKUP? Answer:This function allows the user to pull a subset of data
from a larger table of data based on some criterion
▶ Trace Precedents button? Answer:After selecting cells, this button
creates arrows pointing to the selected cell from cells that are part of the
formula in that cell
▶ Trace Dependents button? Answer:Shows arrows pointing from the
selected cell to cells that depend on the selected cell
ACCURATE SOLUTIONS 2026
▶ Classification Accuracy? Answer:By counting the classification errors on
a sufficiently large validation set and/or test set that is representative of the
population, we will generate an accurate measure of the model's
classification performance
▶ Classification confusion matrix? Answer:Displays a model's correct and
incorrect classifications
▶ Overall Error Rate? Answer:percentage of misclassified observations
Measure of classification accuracy are based on the classification
confusion matrix
▶ Cutoff Value? Answer:Probability value used to understand the tradeoff
between Class 1 error rate and Class 0 error rate
▶ Cumulative lift chart? Answer:Compares the number of actual Class 1
observations identified if considered in decreasing order of their estimated
probability of being in Class 1 and compares this to the number of actual
Class 1 observations identified if randomly selected
▶ Decile-wise lift chart? Answer:Another way to view how much better a
classifier is at identifying Class 1 observations than random classification.
Observations are ordered in decreasing probability of Class 1 membership
and then considered in 10 equal-sized groups
▶ Prediction Accuracy? Answer:The measures of accuracy are some
function of the error in estimating an outcome for an observation i
▶ k-nearest neighbors? Answer:This method can be used either to classify
an outcome category or predict a continuous outcome.
k-NN uses the k most similar observations from the training set, where
similarity is typically measured with Euclidean distance
▶ Classification and Regression Trees? Answer:Partition a data set of
observations into increasingly smaller and more homogeneous subsets.
, At each iteration of the CART method, a subset of observations is split into
two new subsets based on the values of a single variable
▶ Logistic regression? Answer:Attempts to classify a categorical outcome
(y = 0 or 1) as a linear function of explanatory variables
▶ What-If Models? Answer:They provide easy-to-use, sophisticated
mathematical and logical functions, allowing for easy instantaneous
recalculation for a change in model inputs
▶ Influence diagram? Answer:Visual representation that shows which
entities influence others in a model
▶ Data Table? Answer:Excel tool which quantifies the impact of changing
the value of a specific input on an output of interest
▶ One-way data table? Answer:Summarizes a single input's impact on the
output
▶ Two-way data table? Answer:summarizes two inputs' impact on the
output.
▶ Goal Seek? Answer:Excel tool that allows the user to determine the
value of an input cell that will cause the value of a related output cell to
equal some specified value (the goal).
▶ SUMPRODUCT? Answer:Function that returns the sum of the products
of elements in a set of arrays
▶ COUNTIF? Answer:Counts the number of components having a positive
order quantity
▶ VLOOKUP? Answer:This function allows the user to pull a subset of data
from a larger table of data based on some criterion
▶ Trace Precedents button? Answer:After selecting cells, this button
creates arrows pointing to the selected cell from cells that are part of the
formula in that cell
▶ Trace Dependents button? Answer:Shows arrows pointing from the
selected cell to cells that depend on the selected cell
