Chapter 3 Handout
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University of the Pacific, Stockton *
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293E
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Information Systems
Date
Feb 20, 2024
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docx
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Uploaded by ChefEel4028
Chapter 3 Handout
Part One: Multiple Choices
1: An observation about the frequency of leading digits in many real-life sets of numerical data is
called:
a.
leading digits hypothesis.
b.
Moore’s law.
c.
Benford’s law.
d.
clustering.
2: Which approach to Data Analytics attempts to predict a relationship between two data items?
a.
Similarity matching
b.
Classification
c.
Link prediction
d.
Co-occurrence grouping
3: In general, the more complex the model, the greater the chance of:
a.
overfitting the data.
b.
underfitting the data.
c.
pruning the data.
d.
a more accurate prediction of the data.
4: In general, the simpler the model, the greater the chance of:
a.
overfitting the data.
b.
underfitting the data.
c.
pruning the data.
d.
the need to reduce the amount of data considered.
5: Auditing financial statements, looking for errors, anomalies, and possible fraud, is most consistent with which type of analytics?
a.
Descriptive analytics
b.
Diagnostic analytics
c.
Predictive analytics
d.
Prescriptive analytics
6: Models associated with regression and classification data approaches all have these important parts
except
:
a.
identifying which variables (we’ll call these independent variables) might help predict an outcome (we’ll call this the dependent variable).
b.
the functional form of the relationship (linear, nonlinear, etc.).
c.
the numeric parameters of the model (detailing the relative weights of each of the variables associated with the prediction).
d.
test data.
7: Which approach to Data Analytics attempts to assign each unit in a population into a small set of classes where the unit belongs?
a.
Classification
b.
Regression
c.
Similarity matching
d.
Co-occurrence grouping
Part Two: Problems
1: What is the difference between training data sets and test (or testing) data sets?
-
Training data is used to train the model. It has already evaluated and assigned to a class.
The more training data the model has, the better it can make predictions. Training data is
used to learn the pattern and relationships.
-
Testing data is used to evaluate the performance of the model. It is unseen data. Testing
data is used to confirm the model works correctly, how well the model generalize the new
data.
2: Match the accounting question to the appropriate type of data analytics:
Descriptive Analytics
Diagnostic Analytics
Predictive Analytics
Prescriptive Analytics
Accounting Question
Analytics Type
1.
What are the expected stock returns to our investment in Facebook stock?
Predictive Analytics
2.
What was the price and quantity variance associated with the production of chicken at Tyson
?
Diagnostic Analytics
3.
What are the cash needs and projections over the next 3 months?
Predictive Analytics
4.
What were the total taxes paid the past 5 years?
Descriptive Analytics
5.
If we expect our Asian sales to increase, where should we produce them?
Prescriptive Analytics
6.
Should we ship by truck, rail, or air given the expected increase in fuel expenses?
Prescriptive Analytics
7.
Our refunds seem to be high. Are they fraudulent?
Diagnostic Analytics
8.
Which product sold the most last month?
Descriptive Analytics
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