Chapter 5

Question 1

Big data

Answer 1

Refers to datasets that are too large and complex for businesses´existing systems to handle and utilise their traditional capabilities to capture, store, manage and analyse these datasets

Question 2

Characteristics of Big Data

Answer 2

1. volume
2. velocity (how fast data is generated)
3. variety
4. veracity (how accurate is the data)

Question 3

Data analytics

Answer 3

is the process of evaluating data with the purpose of drawing conclusions, making predictions and driving informed decision-making to address business problems.

Question 4

An analystics mindset is…

Answer 4

… a way of thinking that centres on the correct use of data and analysis for decisions-making. Includes the ability to:
1. ask the right questions
2. extract, transform and load relevant data
3. apply appropriate data analytic techniques
4. interpret and share the results with stakeholders

Question 5

Analytic mindset - (1) Ask the right question, SMART objectives

Answer 5

A good analytic question helps establish “SMART” objectives:
S - specific
M - measureable
A - achievable
R - relevant
T - timely

Question 6

Analytic mindset - (2) Extract, transform and load relevant data (ETL)

Answer 6

The ETL process is often the most time-consuming part
- extracting data
- transforming data
- loading data

Question 7

ETL-process - Extracting data

Answer 7

Three steps:
- understand data needs and the data available
- perform the data extraction
- verify the data extraction quality and document what you have done

Question 8

Data lake

Answer 8

a collection of structured (accounting data), semi-structured and unstructured data stored in a single location

Question 9

ETL-process - Transforming data

Answer 9

Four steps:
1. Understand the data and the desired outcome
2. standardise, structure and clean the data
3. validate data quality and verify the data meets data requirements
4. document the transformation process

Question 10

ETL-process - Loading data, important considerations

Answer 10

• the transformed data must be stored in a format and structure acceptable to the receiving software
• programs used for analysis may treat some data formats differently than expected. it is important to understnad how the new program will interpret data formats
• once loaded, it is important to update or create a new data dictionary

Question 11

Analytic mindset - (3) Apply appropriate data analytic techniques, 4 categories

Answer 11

• Descriptive analytic - what happened?
• Diagnostic analytic - why did this happen?
• Predicitve analytic - what might happen in the future?
• prescriptive analytic - what should be done?

Question 12

Analytic mindset - (4) Interpreting results

Answer 12

• common incorrect interprention is: correlation and causation
• or misinterpretation because of psychology

Question 13

Data storytelling

Answer 13

the process of often translating complex data analyses into easier to understand terms to enable better decision-making

Question 14

Data visualisation

Answer 14

the use of graphical representation of data to convey meaning