Chapter 3

Question 1

5 main categories of Data Analytics

Answer 1

Descriptive
Diagnostic
Predictive
Prescriptive
Cognitive

Question 2

Descriptive Analytics

Answer 2

Summarize existing data to determine what has happened in the past

Question 3

Diagnostic Analytics

Answer 3

Explore the current data to determine why something has happened

Question 4

Predictive Analytics

Answer 4

Generate a model that can be used to determine what is likely to happen

Question 5

Prescriptive Analytics

Answer 5

Models data to enable recommendations

Question 6

Analytics from easiest to hardest

Answer 6

Descriptive, Diagnostic, Predictive, Prescriptive, Cognitive

Question 7

Examples of Descriptive Analytics (READ)

Answer 7

Summary Statistics
Data Reduction
Visualization
Aggregation

Question 8

Summary Statistics

Answer 8

Mean, median, max, min, standard deviation

Question 9

Data Reduction

Answer 9

Filtering large datasets to focus on critical aspects

Question 10

Visualization

Answer 10

Bar charts, pie charts, and histograms that summarize trends in data

Question 11

Aggregation

Answer 11

Combining data from multiple sources

Question 12

Examples of Diagnostic Analytics (READ)

Answer 12

Profiling
Clustering
Similarity Matching
Cooccurrence Matching
Variance Analysis

Question 13

Profiling

Answer 13

Identifying typical behaviors or patterns by comparing individual data points to the overall population

Question 14

Clustering

Answer 14

Grouping similar data points together

Question 15

Similarity Matching

Answer 15

Grouping individuals or entities that are similar

Question 16

Cooccurrence Grouping

Answer 16

Identifying associations between events or data points

Question 17

Variance Analysis

Answer 17

Comparing actual data to expected values

Question 18

Predictive Analytics Examples (READ)

Answer 18

Regression Analysis
Classification
Time Series Forecasting
Link Prediction
Churn Prediction

Question 19

Regression Analysis

Answer 19

Predicts the future value of a dependent variable based on historical data

Question 20

Classification

Answer 20

Assigns new data points to predefined categories or classes

Question 21

Time Series Forecasting

Answer 21

Uses historical time ordered data to make future predictions

Question 22

Link Prediction

Answer 22

Predicts connections or relationships between entities in a dataset

Question 23

Churn Prediction

Answer 23

Identifies customers who are likely to stop using a service based on their behavior

Question 24

Prescriptive Analytics Examples (READ)

Answer 24

Decision Support Systems (DSS)
Optimization Models
Machine Learning and AI Models
What If Analysis
Recommendation Engines

Question 25

Decision Support Systems

Answer 25

Uses predefined rules and algorithms to suggest actions based on historical data and business logic

Question 26

Optimization Models

Answer 26

Suggest the best course of action to achieve a specific goal

Question 27

Machine Learning and AI Models

Answer 27

Models that continuously learn from data and provide recommendations or predictions that improve over time

Question 28

What If Analysis

Answer 28

Allows businesses to test different scenarios and their outcomes

Question 29

Recommendation Engines

Answer 29

Provide personalized product or service recommendations based on user behavior and preferences

Question 30

Examples of Cognitive Analytics (READ)

Answer 30

Natural Language Processing (NLP) Contextual Insights Cognitive Search Speech Recognition Learning Systems

Question 31

Natural Language Processing

Answer 31

Interprets and understands human language

Question 32

Contextual Insights

Answer 32

Analyzes data within the context of a specific scenario to generate deeper insights

Question 33

Cognitive Search

Answer 33

Combines AI and search algorithms to deliver more relevant and personalized results

Question 34

Speech Recognition

Answer 34

Converts spoken language into text and analyzes it to understand the meaning

Question 35

Learning Systems

Answer 35

Uses cognitive models to learn and improve recommendation over time

Question 36

Z-Score

Answer 36

Assigns a value to a number based on how many standard deviations it stands from the mean

Question 37

Cluster Analysis

Answer 37

Grouping similar observations into distinct clusters and then calculating the minimum distance between each data point and the center of each cluster

Question 38

Hypothesis Testing

Answer 38

Determines whether differences between groups are significant or due to chance

Question 39

Supervised Approach

Answer 39

Analysis that uses historical data to predict a future outcome

Question 40

Decision Tree

Answer 40

Tool used to divide data into smaller groups

Question 41

Decision Boundaries

Answer 41

Used to mark the split between different classes

Question 42

Decision Support Systems

Answer 42

Info systems that support decision making by combining data and expertise