QUESTIONS AND ANSWERS SURE A+
✔✔Best decision based on estimated value - ✔✔Decision Tree
✔✔Based on the limited storage tanks and pumps, a gas station determines the right
"mix" of gasoline and diesel to carry each month. - ✔✔Linear Programming
✔✔A station decides to set up self-serve vending for beverages. Which tool helps
determine when they will begin to profit? - ✔✔Break Even Analysis
✔✔A station has three vendors with various packages to offer. Which tool would assist
in determining the optimal package at the correct "volume"? - ✔✔Cross-Over Analysis
✔✔A disadvantage of cluster analysis is - ✔✔It is a long and expensive process.
✔✔Advantages of ____ Analysis: Determines the decision with the greatest value
Produces a value under certainty, uncertainty, and risk - ✔✔Decision Analysis
✔✔Disadvantage of _____ Analysis: Assumes past data patterns will repeat in future,
which may not be true - ✔✔Time Series
, ✔✔Advantage of ___ Analysis: Helps determine target markets - ✔✔Cluster Analysis
✔✔Advantage of ____ Analysis: Allows sophisticated analysis of cost behavior and
sales forecasts - ✔✔Regression Analysis
✔✔Regression determines the - ✔✔relationship between two data sets
✔✔Goodness of fit is defined by - ✔✔R-squared How much of the dependent variable
can be determined by the independent variable?
✔✔The p-value of your regression analysis comes out to be 0.62. Is the independent
variable a significant predictor of the dependent variable? Can we reject the null? -
✔✔No. LESS than 0.05 means Yes. 0.62 is higher than 0.05. No significance.
✔✔The R-squared value is 0.71. Is this a strong goodness of fit? - ✔✔Yes. On a scale
of 0% - 100%, 71% is a strong fit. 71% of the dependent is made up from the
independent.
✔✔We wish to determine if the minutes student spend taking a test can predict their test
score. In this scenario, which is the independent variable? - ✔✔Minutes spend taking
the test.
✔✔As a new manager, you analyze the number of clicks into your website each
subscriber makes in a month to determine how much they spend. In this scenario,
spending is which variable? - ✔✔Dependent. The dependent is always what we are
trying to predict.
✔✔Can correlation be a negative number? - ✔✔Yes.
✔✔True or False: -0.99 is a stronger relationship than 0.74 - ✔✔TRUE
✔✔Linear regression is often referred to as - ✔✔Ordinary Least Squares (OLS)
Regression
✔✔y = 10x + 50. Solve for y if x = 10 - ✔✔y = 10(10) + 50 y = 150
✔✔Our regression module for number of clicks predicting spending on our website is y
= 6 + 5x. If a subscriber has 4 clicks, how much will they spend? - ✔✔y = 6 + 5(4) y =
26
✔✔Multiple regression uses more than one _____ variable. - ✔✔Independent