MB1206 Dept of MBA BUSINESS ANALYTICS

L P T C
B1206 BUSINESS ANALYTICS
3 0 0 3
OBJECTIVES
 To learn the fundamentals of Business Analytics, to understand the
importance of Resource Management in business Analytics, fundamentals of
Descriptive Analysis, the role of Predictive analysis and the concepts of
Prescriptive Analysis.
UNIT I INTRODUCTION TO BUSINESS ANALYTICS 9
Business Analytics - Terminologies, Process, Importance, Relationship
with Organizational Decision Making, BA for Competitive Advantage.

UNIT II MANAGING RESOURCES FOR BUSINESS ANALYTICS 9

Managing BA Personnel, Data and Technology. Organisational Structures aligning
BA. Managing Information policy, data quality and change in BA.

UNIT III DESCRIPTIVE ANALYTICS 9

Introduction to Descriptive analytics - Visualising and Exploring Data - Descriptive
Statistics - Sampling and Estimation - Probability Distribution for Descriptive Analytics
- Analysis of Descriptive analytics

UNIT IV PREDICTIVE ANALYTICS 9

Introduction to Predictive analytics - Logic and Data Driven Models - Predictive
Analysis Modeling and procedure - Data Mining for Predictive analytics. Analysis of
Predictive analytics
UNIT V PRESCRIPTIVE ANALYTICS 9
Introduction to Prescriptive analytics - Prescriptive Modeling - Non-Linear
Optimization - Demonstrating Business Performance Improvement.

TOTAL: 45 PERIODS
TEXT BOOKS
1. Robert Schultheis and Mary Summer, Management Information Systems –
The Managers View, Tata McGraw Hill, 2008.
2. Kenneth C. Laudon and Jane Price Laudon, Management Information
Systems – Managing the digital firm, PHI Learning / Pearson Education, PHI,
Asia, 2012.

REFERENCE BOOKS
1. Marc J. Schniederjans, Dara G. Schniederjans and Christopher M. Starkey, "
Business Analytics Principles, Concepts, and Applications - What, Why, and
How" , Pearson Ed, 2014
2. Christian Albright S and Wayne L. Winston, "Business Analytics - Data
Analysis and
3. Decision Making", Fifth edition, Cengage Learning, 2015.
4. James R. Evans, "Business Analytics - Methods, Models and Decisions",
Pearson Ed, 2012

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COURSE OUTCOMES
Upon completion of the course, students will be able to
CO1 Ability to understand the role of Business Analytics in decision making
CO2 Ability to identify the appropriate tool for the analytics scenario
CO3 Ability to apply the descriptive analytics tools and generate solutions
CO4 Understanding of Predictive Analytics and applications
Knowledge of Prescriptive Analytics and demonstrating business
CO5
process improvement
MAPPING OF COs WITH POs AND PSOs

PROGRAM
SPECIFIC
PROGRAM OUTCOMES (POs)
OUTCOMES
Cos
(PSOs)
PO1 PO2 PO3 PO4 PO5 PO6 PO7 PO8 PSO PSO PSO
1 2 3
CO1 3 2 2 3 3 3 2 3 3 1 3
CO2 3 2 2 3 3 3 3 2 2 2 3
CO3 3 3 1 3 2 2 2 2 2 1 3
CO4 3 3 2 3 3 3 2 2 1 3 3
CO5 3 3 2 3 3 2 1 1 2 3 3

RELATION BETWEEN COURSE CONTENT / EXPERIMENTS WITH CO

Knowledge Course
S. No UNIT
level Outcomes
1 R,U,E & A Introduction CO1
2 U,Ap,An,& C Managing Resources for Business Analytics CO2
3 R,Ap,An & C Descriptive Analytics CO3
4 R,Ap, An & E Predictive Analytics CO4
5 U , R & Ap Prescriptive Analytics CO5

R – Remember, Ap – Apply, An – Analyze, U- Understand, E-Evaluate, C-Create

UNIT I INTRODUCTION TO BUSINESS ANALYTICS (BA)

Business Analytics - Terminologies, Process, Importance, Relationship with
Organizational Decision Making, BA for Competitive Advantage.
UNIT-I / PART-A
1 What are business analytics?
Business analytics refers to the skills, technologies, practices for continuous
iterative exploration, and investigation of past business performance to gain
insight and drive business planning. It involves the use of data analysis tools and
techniques to extract meaningful insights from data, providing businesses with
the information they need to make informed decisions, identify trends, and gain a
competitive advantage. Business analytics encompasses a wide range of

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approaches, including statistical analysis, predictive modeling, data mining, and

multivariate testing.

2 Define business analytics?(April/May2023)

"Business analytics is the systematic use of data, statistical analysis, and
quantitative methods to drive fact-based decision-making within organizations. It
involves the exploration, interpretation, and communication of meaningful
patterns and trends in data to support strategic business planning and
operational improvement."

3 What are Analytics?

"Analytics" refers to the systematic computational analysis of data or statistics. It
involves the discovery, interpretation, and communication of meaningful patterns
and insights derived from data. The primary goal of analytics is to turn raw data
into actionable knowledge, helping individuals, organizations, or systems make
informed decisions.
4 What is the need for analytics?
•Availability of large amounts of data, in various forms both structured and
unstructured
•Easier, cheaper storage and retrieval of this data
•Need to take decisions at a faster pace to stay competitive in the market
•Need to get the most of out of every dollar spent
5 What Is Business Analysis?
Business Analysis is a discipline that involves the identification of business
needs, the development of solutions to business problems, and the facilitation of
organizational change. Business analysts, who are professionals specializing in
this field, play a key role in bridging the gap between business stakeholders and
the solutions provided by IT or other departments. Business analysis is an
essential activity for organizations seeking to improve processes, products,
services, or systems to achieve better outcomes.
6 Who is a Business Analyst?
A business analyst is someone who analyzes an organization or business
domain (real or hypothetical) and documents its business, processes, or
systems, assessing the business model or its integration with technology.
7 What is the role of business analyst?
The role of a Business analyst starts from
1. Defining and Scoping Business Areas:
Initiate by defining and delineating the organizational business areas.
2. Eliciting, Analyzing, and Documenting Requirements:
Gather, analyze, and document requirements comprehensively.
3. Communicating Requirements to Stakeholders:
Effectively communicate identified requirements to relevant stakeholders.

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8 Reporting Analysis Reporting Analysis

Provides what is asked for and is typically Provides what is needed and is typically
standardized. customized.
Provides what is asked for Provides what Provides what is asked for Provides
is needed what is needed
is typically standardized is typically is typically standardized is
customized typically customized
Does not involve a person Involves a Does not involve a person
person Involves a person
9 What is the Features Of Business Analytics?
 Decision support system
 Business Continuity Support
 Methodology to gain meaningful insight
 Helps in better business planning
 Improves business performance
10 What is Key Difference Between Business Analysis and Business
Analytics?
 Business Analysis is more related to functions and processes. Business
Analysis techniques include common business tools like SWOT and PESTLE
analysis. Most of the people use ‘waterfall’ or SDLC type methodologies for
Business Analysis projects.
 Business Analytics is usually related with data and reporting. It involves to
the skills, technologies, past performance investigation and information
search. The main aim of business analytics is to gain insight. It includes
statistical or quantitative analysis, data mining, predictive modelling and
multivariate testing.

11 What is Business Intelligence?

BI (Business Intelligence) is a set of processes, architectures, and technologies
that convert raw data into meaningful information that drives profitable business
actions. It is a suite of software and services to transform data into actionable
Intelligence and knowledge.
12 What are the different types of analytics?
They are three categories Descriptive, Predictive, and Prescriptive
13 What are the uses of business analytics?
Analytics is the use of data, information technology, statistical analysis,
quantitative methods, and Mathematical or computer-based models to help
managers gain improved insight about their business operations and make
better, fact-based decisions.
14 What are the business analytics applications?
Business analytics applications encompass a wide range of tools and techniques
used to analyze and interpret data for business decision-making. These
applications can be applied across various industries and functional areas. Here
are some common business analytics applications:Predictive Analytics,
Customer Analytics, Healthcare Analytics, Social Media Analytics.

15 What is meant by data?

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Data refers to information, facts, or raw facts that are collected, stored, and
processed. It can take various forms, including numbers, text, images, sound,
and more. Data is typically the foundation for analysis and decision-making in
various fields.
16 What is meant by database?
A database is an organized collection of structured information, or data, typically
stored electronically in a computer system. ... The data can then be easily
accessed, managed, modified, updated, controlled, and organized. Most
databases use structured query language (SQL) for writing and querying data.
17 What is meant by information?
Information is the processed data on which decisions and actions are based. For
the decision to be meaningful, the processed data must qualify for the following
characteristics − Timely − Information should be available when required.
Accuracy − Information should be accurate.
18 Give some examples of data in business analytics?
 Annual reports, Accounting audits
 Financial profitability analysis
 Economic trends
 Marketing research
 Operations management performance
 Human resource measurements

19 What are the different types of data?

Four Types Data Based on Measurement Scale: Categorical (nominal) data,
Ordinal data, Interval data Ratio data.
20 Define Ordinal Data.
Ordinal data is a type of categorical data where the values have a meaningful
order or ranking, but the intervals between the values are not uniform or well-
defined. In other words, the data categories have a clear sequence or hierarchy,
but the differences between them are not consistent. Common examples of
ordinal data include survey responses like "strongly disagree," "disagree,"
"neutral," "agree," and "strongly agree," where the order matters, but the gaps
between the levels are not necessarily equal.
21 Define Interval Data.
Interval data is a type of numerical data where the intervals between values are
consistent and meaningful. Unlike ordinal data, the intervals between
consecutive points have a constant and equal measure. However, interval data
lacks a true zero point, meaning that a value of zero doesn't indicate an absence
of the quantity being measured. Temperature measured in Celsius or Fahrenheit
is a classic example of interval data, where the differences between, say, 20 and
30 degrees represent the same temperature increase as the differences
between 30 and 40 degrees, but zero degrees does not signify a complete
absence of temperature.
22 Define Ratio Data.
Continuous values and have a natural zero point
Ratios are meaningful
Examples:
- monthly sales, - delivery time

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24 Why business analytics is important?

Business analytics is paramount for organizations seeking to thrive in today's
data-driven landscape. By systematically analyzing data, businesses gain
profound insights that guide strategic decision-making. This data-driven
approach enhances operational efficiency, as organizations can identify and
rectify inefficiencies in their processes. A competitive advantage is forged
through a deep understanding of market trends and customer behavior, enabling
businesses to stay ahead. Moreover, analytics aids in risk management by
predicting and mitigating potential challenges. From optimizing resource
allocation to fostering revenue growth and enabling strategic planning, business
analytics serves as a cornerstone for adaptability and success in a dynamic
business environment. Ultimately, it transforms data into actionable intelligence,
fostering informed decisions, efficiency, and sustained competitiveness.
25 What is the relationship of BA Process and Organization Decision-Making
Process?
The Business Analysis (BA) process is of decision-making process. BA serves
as a catalyst in decision-making by systematically collecting, analyzing, and
interpreting data to provide actionable insights. The BA process, involving
activities such as requirements gathering, analysis, and solution validation, is
specifically designed to inform and guide decision-makers. By understanding the
needs and challenges within the organization, business analysts contribute
valuable information that aids in strategic decision-making. The symbiotic
relationship ensures that decisions are grounded in a comprehensive
understanding of the business landscape, optimizing the alignment between
organizational objectives and effective solutions.
UNIT-I / PART-B
1 Explain the different types of analytics in detail.
2 Explain the purpose and Examples of Methodologies
3 Explain the Characteristics of Analytics, Business Analytics, and Business
Intelligence
4 Write in detail about the Business Analytics Process. (April/May2023)
5 Explain the types of Data Measurement Classification Scales
6 Discuss in detail Relationship of BA Process and Organization Decision-Making
Process
7 Explain why business analytics is important in solving business problems.
8 Explain why business analytics is important in identifying new business
initiatives.
9 Describe the kinds of questions business analytics can help answer.
10 Explain different types of competitive advantages and their relationship to
business analytics. (April/May2023)
11 With an example describe the typical role of business analytics in forecasting?
(April/May2023)

UNIT II MANAGING RESOURCES FOR BUSINESS ANALYTICS

Managing BA Personnel, Data and Technology. Organizational Structures aligning
BA. Managing Information policy, data quality and change in BA.

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UNIT-II / PART-A
1 What is meant by Business Analytics Personnel?
"Business Analytics Personnel" refers to individuals or professionals who
specialize in the field of business analytics. These personnel are equipped with
the knowledge, skills, and expertise to analyze data, extract meaningful insights,
and provide valuable information to support decision-making within an
organization. Business analytics personnel may include data analysts, data
scientists, business intelligence analysts, statisticians, and other professionals
who work with data to uncover patterns, trends, and opportunities for
improvement.
2 What are analytical methods?
Analytical methods refer to the techniques and processes used to analyze data,
extract insights, and draw conclusions. These methods are employed across
various disciplines to make sense of information, identify patterns, and inform
decision-making.
3 Give examples of Analytical method
Analytical methods encompass a diverse set of techniques used to extract
insights from data. Descriptive statistics, like calculating averages and measures
of variability, offer a snapshot of data characteristics, while inferential statistics,
such as hypothesis testing, enable predictions about broader populations. Data
mining techniques, like clustering and association rule mining, unveil hidden
patterns, while machine learning algorithms, including decision trees and support
vector machines, automate pattern recognition. Predictive modeling employs
methods like time series analysis to forecast future trends. Text analytics,
involving sentiment analysis and named entity recognition, interprets
unstructured data. Quantitative analysis, such as financial ratios, and qualitative
analysis, like content analysis, provide a deeper understanding of numerical and
non-numerical data, respectively. The choice of method depends on the specific
analytical goals and the nature of the data being examined.
4 What are the different competency requirements for BI personnel?
Business-Leadership, People-related management and communication skills,
manage BA projects, Analytic-Know how to use statistical methodologies,
Information system- Maintain and use computer portals, identify and extract data
5 What are the different ways to categorizing Data?
There are many ways to categorize business analytics data. Data is commonly
categorized by either internal or external sources. Typical examples of internal
data sources include Billing and reminder, systems, business, customer.
customer relationship, human resources. When firms try to solve internal
production or service operations problems, internally sourced data may be all
that is needed. Typical external sources of data (Customer Satisfaction,
customer demographics, Competition Economic) are numerous and provide
great diversity and unique challenges for BA to process. Data can be measured
quantitatively (for example, sales dollars) or qualitatively by preference surveys
(for example, products compared based on consumers preferring one product
over another) or by the amount of consumer discussion (chatter) on the Web
regarding the pluses and minuses of competing products.
6 What are the different issues in BA?
 Data quality can be defined as data that serves the purpose for which it is
collected. It means different things for different applications, but there are

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some commonalities of high-quality data. These qualities usually include

accurately representing reality, measuring what it is supposed to measure,
being timeless, and having completeness.
 Data privacy refers to the protection of shared data such that access is
permitted only to those users for whom it is intended. It is a security issue
that requires balancing the need to know with the risks of sharing too much.
There are many risks in leaving unrestricted access to a company’s
database. For example, competitors can steal a firm’s customers by
accessing addresses. Data leaks on product quality failures can damage
brand image, and customers can become distrustful of a firm that shares
information given in confidence. To avoid these issues, a firm needs to abide
by the current legislation regarding customer privacy and develop a program
devoted to data privacy.

7 What are the different types of computer Hardware?

This is physical equipment used for input, processing, and output activities in an
information system. Hardware can include computers of various sizes, various
input, output, and storage devices and telecommunications devices that link
computers, including mobile handheld devices.
8 What are the different types of computer software?
These are the preprogrammed instructions that control and coordinate the
computer hardware components in the information system. They include system-
wide software like ERP and smaller apps for mobile devices.
9 Write short notes on Data management technology.
Data management technology encompasses tools and systems for efficient
handling of organizational data. This includes database management systems,
big data platforms, and data warehouses. Advanced technologies like cloud-
based solutions, data lakes, and master data management contribute to
comprehensive data governance, ensuring quality, compliance, and security.
These technologies are essential for supporting data-driven decision-making and
maintaining data accuracy in today's complex business environment.
10 Define DBMS.
A database management system (DBMS) is a computer software application
that interacts with the user, other applications, and the database itself to capture
and analyze data. A general-purpose DBMS is designed to allow the definition,
creation, querying, update, and administration of databases.
11 What is Database?
A database is a collection of information that is organized so that it can easily be
accessed, managed, and updated. In one view, databases can be classified
according to types of content: bibliographic, full-text, numeric, and images.
12 What are the characteristics of database?
Ordered collection, related data, specific information needs and shared.

13 What is data dictionary?(April/Nov 2023)

Data dictionary is a catalogue – of all elements in a system. It is a document that
collects, co-ordinates, and confirms what a specific data terms mean to different
people in the organization.

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14 What is data warehousing?

A data warehouse is a federated repository for all the data that an enterprise's
various business systems collect. The repository may be physical or logical.
15 What is data mart?
The data mart is a subset of the data warehouse and is usually oriented to a
specific business line or team. Whereas data warehouses have an enterprise-
wide depth, the information in data marts pertains to a single department.
16 Analyze the importance of data marts.
The Data Marts can be Dimensional (Star Schemas) or relational, depending on
how the information is to be used and what "front end" Data Warehousing Tools
will be used to present the information. Each Data Mart can contain different
combinations of tables, columns and rows from the Enterprise Data Warehouse.
17 What are DDL Commands?
Data Definition Language (DDL) is a standard for commands that define the
different structures in a database. DDL statements create, modify, and remove
database objects such as tables, indexes, and users. Common DDL statements
are CREATE, ALTER, and DROP.
18 What is meant by Online analytical processing (OLAP)?
Online analytical processing (OLAP) is software that allows users to view data in
multiple dimensions. For example, employees can be viewed in terms of their
age, sex, geographic location, and so on. OLAP would allow identification of the
number of employees who are age 35, male, and in the western region of a
country. OLAP allows users to obtain online answers to ad hoc questions
quickly, even when the data is stored in very large databases.
19 Define Data Mining.
Data mining is the application of a software discovery-driven process that
provides insights into business data by finding hidden patterns and relationships
in big data or large databases and inferring rules from them to predict future
behavior.
20 State any four applications of data mining in marketing.
Data Mining Applications in Sales/Marketing, Banking / Finance, Health Care
and Insurance, Transportation, Data Mining Applications in Medicine
21 Define Text Mining.
Text mining is a software application used to extract key elements from
unstructured data sets, discover patterns and relationships in the text materials,
and summarize the information.
22 Define Web Mining.
Web mining seeks to find patterns, trends, and insights into customer behavior
from users of the Web. Marketers, for example, use BA services like Google
Trends (www.google.com/trends/)
23 What is meant by program?
A program in this context is the process that seeks to create an outcome and
usually involves managing several related projects with the intention of
improving organizational performance. A program can also be a large project.

24 Define Teams.
Teams, in the context of business analysis, Teams are groups of individuals
collectively responsible for accomplishing tasks and achieving goals related to

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business analysis. When it comes to executing business analysis activities, the

responsibility often falls on a dedicated business analysis team. Within these
teams, participants are defined by the specific roles they play in contributing to
the overall team effort. Each team member brings unique skills, expertise, and
responsibilities to the table, contributing to the success of business analysis
initiatives within the organization.
UNIT-II / PART-B
1 Explain why personnel, data, and technology are needed in starting up a
business analytics program.
2 Explain what skills business analytics personnel should possess and why.
3 Describe the job specialties that exist in business analytics. (April/May2023)
4 Describe internal and external sources of data.
5 Describe an information technology infrastructure.
6 Describe a database management system and how it supports business
analytics.
7 Explain why a centralized business analytics (BA) organization structure has
advantages over other structures.
8 Describe the differences between BA programs, projects, and teams and how
they align BA resources in firms.
9 Describe typical BA team roles and reasons for their failures.
10 Explain why establishing an information policy is important.
11 Explain what change management involves and what its relationship is to BA.
12 Describe a data management system and their way in which it help business
analytics. (April/May2023)

UNIT III DESCRIPTIVE ANALYTICS

Introduction to Descriptive analytics - Visualizing and Exploring Data - Descriptive
Statistics - Sampling and Estimation - Probability Distribution for Descriptive Analytics -
Analysis of Descriptive analytics
UNIT- III /PART –A
1 Define Data Visualization.
Data Visualization is the graphical representation of data to provide insights into
complex datasets, making it more accessible and understandable. Through charts,
graphs, maps, and other visual elements, data visualization allows individuals to
quickly grasp patterns, trends, and relationships within the data. It enhances
communication, aids decision-making, and facilitates the interpretation of large
datasets, making complex information more comprehensible and actionable.
2. Define Sample and Sample Size.
A finite subset of statistical individuals in a population is called Sample. The number
of individuals in a sample is called Sample Size (n)
3 What do you mean by Re-sampling?
Re-sampling refers to the process of selecting a subset of data from a larger dataset.
This technique is commonly used in statistical analysis and machine learning for
various purposes, such as model validation, addressing imbalances in datasets, and
estimating the variability of a statistic.

4 Define statistics
Statistics is a very old discipline mainly based on classical mathematical methods,
which can be used for the same purpose that data mining sometimes is which is

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classifying and grouping things.

5. Define Sampling distribution.
The sampling distribution of a statistic is the probability distribution of all possible
values the statistic may take, when computed from random samples of same size,
drawn from a specified population. Like any other distribution, a sampling distribution
will have its mean, standard deviation and moments of higher order
6. Define Descriptive analytics.(April/May 2023)
Descriptive Analytics is a branch of analytics that focuses on summarizing and
presenting historical data to gain insights into past trends, patterns, and events. The
primary goal of descriptive analytics is to describe and understand what has
happened in a given period. It involves the examination of data through various
statistical measures, visualizations, and data summarization techniques.
7. Name the popular visual tools used for monitoring and tracking the project
progress.
 Gantt chart
 Slip chart
 Timeline
 Ball chart

8. What is Gantt chart?(April/May 2023)

Gantt chart is a visual representation of a project schedule that displays the tasks,
activities, and timeline of a project. It is named after Henry L. Gantt, who developed
this charting technique in the early 20th century. Gantt charts provide a graphical
illustration of a project's schedule, showing the start and finish dates of various
elements of the project.
9. What is slip chart? Mention its use.
A slip chart is a very alternative favored by some project managers who believe it
provides a more striking visual indication of those activities that are not progressing
to schedule-the more the slip line bends, the greater variation from the plan.
Additional slip lines are added at intervals and, as they built up, the project manager
will gain an idea to whether the project is improving or not. A very jagged line
indicates a need for
rescheduling.
10. What is the timeline chart?
The timeline chart is a method of recording and displaying the way in which targets
have changed throughout the duration of the project.
Planned time is plotted along the horizontal axis and elapsed time down the vertical
axis.
11. How to Visualize Progress?
Once data has been collected about project progress, a manager needs some way
of presenting that data to greatest effect. Some of these methods such as Gantt
charts provide a static picture, a single snapshot, whereas others such as time line
charts try to show how the project has progressed and changed over time.
12. Define Ball chart.
It can be horizontal, vertical, cone or cyclically shaped and multidimensional with
overlaying variables. Ideal for showing comparative improvement over time.

13. Define Pie chart

A pie chart is a circular statistical graphic that is divided into slices to illustrate

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numerical proportions. Each slice represents a proportionate part of the whole, and
the size of each slice is determined by the quantity it represents relative to the entire
circle. Pie charts are commonly used to show the composition of a whole,
highlighting the relationship of parts to the whole.
14. Define scatter chart.
A scatter chart is a graphical representation of individual data points plotted on a
two-dimensional axis, typically used to visualize the relationship and distribution of
variables. Each point on the chart represents a specific combination of values from
two different variables.
15. Define Histogram.
A histogram is a visual representation of the distribution of a dataset, displaying the
frequencies of different ranges or bins of values along a continuous axis. It provides
a way to understand the shape and central tendencies of the data.
16. Define Mean.
The sample mean is calculated as

where n is the number of nonmissing values for a variable,xi is the ith value of the
variable, and wi is the weight associated with the ith value of the variable.

17. Define Variance

Variance is a statistical measure that describes the spread or dispersion of a set of
values in a data set. In other words, it quantifies how much individual data points in a
dataset differ from the mean (average) of the dataset. A low variance indicates that
the values tend to be close to the mean, while a high variance indicates that the
values are more spread out.
18. Define standard deviation.
The standard deviation is calculated as

19. Define skewness.

Skewness is a statistical measure that describes the asymmetry or skew of a
probability distribution or a dataset. In a symmetric distribution, the left and right
sides are mirror images of each other, and the skewness is close to zero. A
positively skewed distribution has a tail that extends more to the right, while a
negatively skewed distribution has a tail that extends more to the left.
20. Define Kurtosis.
Kurtosis is a measure of whether the data are heavy-tailed or light-tailed relative to
a normal distribution.

21. Define Simple Random Sampling.

This is a type of sampling technique you must have come across at some point.

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Here, every individual is chosen entirely by chance and each member of the
population has an equal chance of being selected. One big advantage of this
technique is that it is the most direct method of probability sampling
22. Define Systematic Sampling.
In this type of sampling, the first individual is selected randomly and others are
selected using a fixed ‘sampling interval’. Let’s take a simple example to understand
this. Say our population size is x and we have to select a sample size of n.
23. Define Stratified Sampling
In this type of sampling, we divide the population into subgroups (called strata)
based on different traits like gender, category, etc. And then we select the
sample(s) from these subgroups: We use this type of sampling when we want
representation from all the subgroups of the population.
24. Define Cluster Sampling
In a clustered sample, we use the subgroups of the population as the sampling unit
rather than individuals. The population is divided into subgroups, known as clusters,
and a whole cluster is randomly selected to be included in the study: This type of
sampling is used when we focus on a specific region or area.
25. Define Quota Sampling
In this type of sampling, we choose items based on predetermined characteristics of
the population. Consider that we have to select individuals having a number in
multiples of four for our sample: In quota sampling, the chosen sample might not be
the best representation of the characteristics of the population that weren’t
considered.
26. Define Judgment Sampling
It is also known as selective sampling. It depends on the judgment of the experts
when choosing whom to ask to participate. Suppose, our experts believe that people
numbered 1, 7, 10, 15, and 19 should be considered for our sample as they may
help us to infer the population in a better way. As you can imagine, quota sampling is
also prone to bias by the experts and may not necessarily be representative.
UNIT-III / PART B
1. Explain why we need to visualize and explore data.
2. Describe statistical charts and how to apply them. (April/May2023)
3. Describe descriptive statistics useful in the descriptive business analytics (BA)
process?
4. Describe sampling methods useful in BA and where to apply them.
5. Describe what sampling estimation is and how it can aid in the BA process.
6. Describe the use of confidence intervals and probability distributions.
7. Explain how to undertake the descriptive analytics step in the BA process.
8. With a mean value of 50 and a standard error of the mean of 12, what is the 90
percent confidence interval for this problem?
9. Why would we ever want to use a sample if we have population information?
10 In setting the confidence level, why not just set one that is low enough for the
population parameter to be assured of inclusion?
11 Give an example to illustrate the stratified random sampling technique used in
descriptive analysis? (April/May2023)
12 Discuss Which method of sampling will be appropriate in dentifying potential location
for selling milk products in Chennai? (April/May2023)

UNIT IV PREDICTIVE ANALYTICS

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Introduction to Predictive analytics - Logic and Data Driven Models - Predictive

Analysis Modeling and procedure - Data Mining for Predictive analytics. Analysis of
Predictive analytics

UNIT IV Part- A
1 Define predictive analytics. ?(April/May 2023)
Predictive Analytics is the branch of advanced analytics that utilizes statistical
algorithms, machine learning, and data mining techniques to analyze historical
data and make predictions about future events or outcomes. It involves
identifying patterns, trends, and relationships within datasets to forecast what
might happen next. Predictive analytics is widely used across various industries
for tasks such as predicting customer behavior, anticipating equipment failures,
optimizing marketing campaigns, and making informed business decisions.
2 What is meant by Predictive modeling?
Predictive modeling means developing models that can be used to forecast or
predict future events. In business analytics, models can be developed based on
logic or data.
3 Write short notes on logic-driven model?(April/May 2023)
A logic-driven model is one based on experience, knowledge, and logical
relationships of variables and constants connected to the desired business
performance outcome situation. The question here is how to put variables and
constants together to create a model that can predict the future.
4 What is meant by cause-effect diagram?
A Cause-and-Effect Diagram is a graphical tool for displaying a list of causes
associated with a specific effect. It is also known as a fishbone diagram or an
Ishikawa diagram (created by Dr. Kaoru Ishikawa, an influential quality
management innovator). The graph organizes a list of potential causes into
categories.
5 Define Influence diagram.
An influence diagram is an intuitive visual display of a decision problem. It
depicts the key elements, including decisions, uncertainties, and objectives as
nodes of various shapes and colors. It shows influences among them as arrows.
6 What is the formula for profit?
Profit = (Unit Price × Quantity Sold) - [(Fixed Cost) + (Variable Cost × Quantity
Sold)], or
P = (UP × QS) - [FC + (VC × QS)]
7 What is meant by data-driven models?
Logic-driven modeling is often used as a first step to establish relationships
through data-driven models (using data collected from many sources to
quantitatively establish model relationships). To avoid duplication of content and
focus on conceptual material in the chapters, we have relegated most of the
computational aspects.

8 What are the different applications of data-driven models?

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Sampling and estimation, Regression Analysis, Correlation Analysis, Probability

Distributions, Predictive Modeling and Analysis, Forecasting Models.
9 What are the two ways of data mining files?
One is referred to as a training data set, and the other as a validation data set.
The training data set develops the association rules, and the validation data set
tests and proves that the rules work. Starting with the training data set, a common
data mining methodology is what-if analysis using logic-based software
10 Define Association.
Association is a data mining function that discovers the probability of the co-
occurrence of items in a collection. The relationships between co-occurring items
are expressed as association rules. Association rules are often used to analyze
sales transactions.
11 Write short notes on classification.
Classification is a data mining function that assigns items in a collection to target
categories or classes. The goal of classification is to accurately predict the target
class for each case in the data. For example, a classification model could be used
to identify loan applicants as low, medium, or high credit risks.
12 Define clustering.
Clustering is the process of making a group of abstract objects into classes of
similar objects. Points to Remember. A cluster of data objects can be treated as
one group. While doing cluster analysis, we first partition the set of data into
groups based on data similarity and then assign the labels to the groups.
13 What is meant by Forecasting?
Forecasting is the process of making predictions of the future based on past and
present data and most commonly by analysis of trends. ... Both might refer to
formal statistical methods employing time series, cross-sectional or longitudinal
data, or alternatively to less formal judgmental methods.
14 Define neural networks.
Neural networks are used to find associations where connections between words
or numbers can be determined. Specifically, neural networks can take large
volumes of data and potential variables and explore variable associations to
express a beginning variable
15 What is meant by Discriminant analysis?

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Discriminant analysis is similar to a multiple regression model except that it

permits continuous independent variables and a categorical dependent variable.
The analysis generates a regression function whereby values of the independent
variables can be incorporated to generate a predicted value for the dependent
variable.
16 Define Hierarchical clustering.
Hierarchical clustering is a methodology that establishes a hierarchy of clusters
that can be grouped by the hierarchy. Two strategies are suggested for this
methodology: agglomerative and divisive. The agglomerative strategy is a
bottom-up approach, in which one starts with each item in the data and begins to
group them.
17 Define K-mean clustering.
K-mean clustering is a classification methodology that permits a set of data to be
reclassified into K groups, where K can be set as the number of groups desired.
The algorithmic process identifies initial candidates for the K groups and then
interactively searches other candidates in the data set to be averaged into a
mean value that represents a particular K group.
18 What is the R-square adjusted?
The R-Square Adjusted statistic does not have the same interpretation as R-
Square (a precise, proportional measure of variation in the relationship). It is
instead a comparative measure of suitability of alternative independent variables.
It is ideal for selection between independent variables in a multiple regression
model.
19 What is meant by nodal relationships?
The term "nodal relationships" can have different meanings depending on the
context in which it is used. In general, "nodal" often refers to nodes, which are
points of connection or intersection in a network or system.
UNIT IV/ Part- B
1 Explain what logic-driven models are used for in business analytics (BA)?
(April/May2023)
2 Describe what a cause-and-effect diagram is used for in BA.
3 Explain the difference between logic-driven and data-driven models.
4 Explain how data mining can aid in BA.
5 Explain why neural networks can be helpful in determining both associations and
classification tasks required in some BA analyses.
6 Explain how clustering is undertaken in BA.

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7 Explain how step-wise regression can be useful in BA.

8 Explain how to use R-Squared adjusted statistics in BA.
9 Explain data driven models with examples.
10 Discuss the data mining technologies.
11 Explain Different type of sampling method used in Predictive analytics?
(April/May2023)
UNIT V PRESCRIPTIVE ANALYTICS
Introduction to Prescriptive analytics - Prescriptive Modeling - Non-Linear Optimisation
- Demonstrating Business Performance Improvement.
PART-A
1 What Resource Considerations Are Important to Support Business
Analytics?
Supporting effective business analytics requires a multifaceted approach to
resources. Key considerations include assembling a skilled team proficient in
data analysis, ensuring access to high-quality and relevant data, investing in a
robust technology infrastructure and analytical tools, implementing a solid data
governance framework, and providing continuous training for the analytics team.
Budgetary allocation, scalability, collaboration, and data security measures are
essential, as is fostering a culture of change management and incorporating
feedback mechanisms. Defined key performance indicators help measure the
impact of analytics on business outcomes, ensuring that the organization can
leverage insights for strategic decision-making and maintain a competitive edge.

2 What are different steps in prescriptive analytics?(April/May 2023)

Prescriptive analytics analysis. The prior analysis should provide a forecast or
prediction of what future trends in the business may hold. For example, there may
be significant statistical measures of increased (or decreased) sales, profitability
trends accurately measured in dollars for new market opportunities, or measured
cost savings from a future joint venture.
3 Write short notes on Linear Programming.
Linear Programming (LP) Linear Programming is a mathematical optimization
method that aims to find the optimal outcome in a linear model with linear
constraints. It's widely used in fields like operations research and supply chain
management, helping make optimal decisions when faced with resource
constraints. The simplex method and graphical approaches are common
techniques for solving LP problems.
4 What is meant by Integer Programming?
Integer Programming is an extension of Linear Programming where some or all of
the decision variables are restricted to be integers. In contrast to Linear
Programming, which allows for fractional values of variables, Integer
Programming requires that certain or all variables take on only whole number
values. This makes IP particularly useful in situations where decisions must be
made in whole units, such as the number of items to produce or the selection of
discrete projects. While solving Integer Programming problems is generally more
challenging than solving Linear Programming problems, it provides a more
realistic representation of decision scenarios in various optimization applications,
including logistics, project management, and resource allocation.

5 What is meant by Non-Linear Optimization?

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Non-Linear Optimization deals with optimizing functions that do not follow linear
relationships. Unlike Linear Programming, which involves linear objective
functions and constraints, non-linear optimization allows for complex, nonlinear
relationships among variables. This technique is crucial for solving problems with
curved or irregular structures, common in fields like engineering, finance, and
machine learning. Algorithms such as gradient descent and Newton's method are
employed to find optimal solutions in non-linear optimization problems.
6 Define Decision Analysis.
A set of methodologies, models, or principles used to analyze and guide decision-
making when multiple choices face the decision maker in different decision
environments(for example, certainty, risk, and uncertainty)
7 Define simulation.
Simulation refers to the imitation or replication of the operation or characteristics
of a system, process, or phenomenon in a virtual or controlled environment. The
purpose of simulation is to study, analyze, or understand the behavior of the real
system without directly interacting with it. Simulations can be performed using
computer programs, mathematical models, physical models, or a combination of
these approaches.
One of the Key aspects of simulation include:
Modeling: The creation of a representation (model) of the real system or
process. This model can be mathematical, physical, or conceptual.

8 What is sentiment analysis? (April / May 2017)

Sentiment analysis is the process of using text analytics to mine various sources
of data for opinions. Often, sentiment analysis is done on the data that is
collected from the Internet and from various social media platforms.
9 Define the decision variable.
In the context of decision-making and optimization, a decision variable is a
variable that represents a decision or a choice that a decision-maker can control.
Decision variables are the key components in mathematical models that are used
to formulate and solve decision problems, particularly in the fields of operations
research, management science, and optimization.
10 How are prescriptive and descriptive analytics related?
Descriptive Analytics tells you what happened in the past. Diagnostic Analytics
helps you understand why something happened in the past. Prescriptive
Analytics recommends actions you can take to affect those outcomes.
11 What are the essential steps in a predictive modeling project?
It consists of the following steps -
Establish business objective of a predictive model
Pull Historical Data - Internal and External
Select Observation and Performance Window
Create newly derived variables
Split Data into Training, Validation and Test Samples

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12 What are the applications of predictive modeling?

Predictive modeling is mostly used in the following areas -
Acquisition - Cross Sell / Up Sell
Retention - Predictive Attrition Model
Customer Lifetime Value Model
Next Best Offer
Market Mix Model
13 What is meant by Observation Period?
The observation period refers to a specific duration during which data is collected,
observed, or analyzed for a particular study, research project, or monitoring
activity. It represents the timeframe over which observations or measurements
are made to gather information or draw conclusions about a particular
phenomenon, behavior, or system. The choice of an observation period depends
on the objectives of the study and the nature of the data being collected, and it
could range from seconds to years, depending on the context and requirements
of the research or analysis.
14 What is Technical analysis?
Technical analysis is a method used in finance and investment to evaluate and
predict future price movements of financial instruments, such as stocks,
currencies, or commodities, based on historical price and trading volume
patterns. Analysts who employ technical analysis, often referred to as
"technicians," use charts, graphs, and various technical indicators to identify
trends, support and resistance levels, and potential entry or exit points for trades.
Unlike fundamental analysis, which focuses on a company's financial health and
economic factors, technical analysis relies on the premise that historical price
movements and patterns can provide insights into future market behavior.
Common tools in technical analysis include moving averages, trendlines, and
oscillators, and the approach is widely used in the field of trading and investment
decision-making.
15 What is meant by Performance Period?
The performance period refers to a specific timeframe during which the
performance of a system, process, or individual is assessed and evaluated. This
duration allows for the measurement of outcomes, achievements, or
effectiveness, often in the context of a project, job role, or organizational initiative.
The performance period is essential for tracking progress, setting goals, and
making informed decisions based on observed results within a defined time
frame.
16 Define Regression model with examples.
Regression analysis is the process of determining how a variable y is related to
one or more other variables, x1,x2….xn. The y variable is usually called the
response and the xi‘s are usually called the regressions or simply the explanatory
variables.
17 Define Regression.
Regression is a statistical method used in finance, investing, and other disciplines
that attempts to determine the strength and character of the relationship between
one dependent variable (usually denoted by Y) and a series of other variables
(known as independent variables)

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18 Give some common reasons for doing a regression analysis?

Regression analysis is commonly employed for two main purposes. Firstly, it
helps researchers understand and quantify the relationships between variables,
providing insights into how changes in independent variables relate to changes in
a dependent variable. Secondly, regression analysis is utilized for prediction and
forecasting.
19 Define Linear regression.
Linear regression attempts to model the relationship between two variables by
fitting a linear equation to observed data. One variable is considered to be an
explanatory variable, and the other is considered to be a dependent variable.
20 Define Logistic regression.
Logistic regression is the appropriate regression analysis to conduct when the
dependent variable is dichotomous (binary). ... Logistic regression is used to
describe data and to explain the relationship between one dependent binary
variable and one or more nominal, ordinal, interval or ratio-level independent
variables.
21 How to handle missing values?
We fill/impute missing values using the following methods. Or make missing
values as a separate category.
Mean Imputation for Continuous Variables (No Outlier)
Median Imputation for Continuous Variables (If Outlier)
Cluster Imputation for Continuous Variables
22 How to treat outliers?
There are several methods to treat outliers -
Percentile Capping
Box-Plot Method
Mean plus minus 3 Standard Deviation
23 What is p-value and how it is used for variable selection?
The p-value is a statistical measure that helps researchers assess the evidence
against a null hypothesis. In the context of variable selection, particularly in the
field of statistics and regression analysis, p-values are often used to determine
the significance of individual predictor variables in a statistical model.
General explanation of the p-value and its role in variable selection:
PART-B
1 List and describe the commonly used prescriptive analytics in the business
analytics (BA) process.
2 Explain the role of case studies in prescriptive analytics.
3 Explain how fitting a curve can be used in prescriptive analytics. (April/May2023)
4 Explain how to formulate a linear programming model.
5 Explain the value of linear programming in the prescriptive analytics step of BA.
6 Explain the concepts of Integer Programming.
7 Explain the Nonlinear Optimization with example? (April/May2023)
8 How are prescriptive and descriptive analytics related?
9 How can we use simulation in both predictive and prescriptive analytics?
10 What conditions allowed the application of LP?

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