Exam 17: Business Analytics

True or False: In multidimensional scaling, the general rule is to increase the number of dimensions as long as the stress statistic decreases substantially.

SCENARIO 17-3 The tree diagram below shows the results of the classification tree model that has been constructed to predict the probability of a cable company's customers who will switch ("Yes" or "No")into its bundled program offering based on the price ($30, $40, $50, $60)and whether the customer spends more than 5 hours a day watching TV ("Yes" or "No")using the data set of 100 customers collected from a survey. -True or False: Referring to Scenario 17-3, the highest probability of switching is predicted to occur among customers who watch more than 5 hours of TV a day and are offered the bundled price of higher than $50.

True or False: Bullet graphs that use color to represent the value of a second variable, thereby increasing the data density of the displays, is an example of chartjunk.

Dashboards may contain all but which of the following?

True or False: In a classification tree, the dependent variable is a categorical variable.

True or False: Some consider gauges little more than examples of chartjunk, even as many decision makers request them due to their visual appeal, due to the amount of the space it consumes.

SCENARIO 17-1 -True or False: Referring to Scenario 17-1, the sparklines enable you to draw conclusions on the historical trend of the rates of return of the three stocks.

True or False: Most information design specialists prefer bullet graphs over gauges because bullet graphs foster the direct comparison of each measurement.

True or False: Each observation is treated as its own cluster at the beginning in k-means clustering.

True or False: Successful implementation of a regression tree requires rules for deciding when a branch of the tree cannot be split any more.

True or False: Splitting is always followed by pruning in a classification tree.

SCENARIO 17-7 The output below shows the results of cluster analysis on the different regions of the world (North America, Asia Pacific, Western Europe, Central & Eastern Europe, Latin America, and Middle East & Africa)based on the amounts (in billions of US dollars)and the percentage changes from prior year of business-to-consumer ecommerce sales last year. 17-24 Business Analytics -True or False: Referring to Scenario 17-7, at the two cluster level, Asia Pacific alone makes up one of the two clusters.

True or False: Classification tree is not sensitive to the distribution of the independent variables.

SCENARIO 17-4 The regression tree below was obtained for predicting the weekend box office revenue of a newly released movie (in thousands of dollars)based on data collected in different cities on the expenditure (at $25, $30, $35, $40, $45, $50, $55, $60, $65 or $70 thousand)spent on TV advertising and the number of times (10, 15, 20, 25, 30 or 35)a day the advertisement appear on TV. Business Analytics 17-15 -Referring to Scenario 17-4, what percentage of the variation in weekend box office revenue can be explained by the amount spent on TV advertising and the number of times a day the advertisement appear on TV?

SCENARIO 17-2 The treemap below shows the amounts (size)measured in billions of US dollars and percentage changes from prior year (color)of business-to-consumer ecommerce sales last year for North America, Asia Pacific, Western Europe, Central & Eastern Europe, Latin America, and Middle East & Africa. -True or False: Referring to Scenario 17-2, the North America region has the fastest growth in business-to-consumer ecommerce sales last year.

True or False: In multidimensional scaling, the Euclidean distance is most commonly used to measure the distance between objects.

True or False: Ward's minimum variance can be used to measure the distance between clusters in cluster analysis.

SCENARIO 17-7 The output below shows the results of cluster analysis on the different regions of the world (North America, Asia Pacific, Western Europe, Central & Eastern Europe, Latin America, and Middle East & Africa)based on the amounts (in billions of US dollars)and the percentage changes from prior year of business-to-consumer ecommerce sales last year. 17-24 Business Analytics -Referring to Scenario 17-7, what are the first group of countries that clust er together?

True or False: Splitting of a node might be followed by pruning if necessary in a classification tree.

True or False: Successful implementation of a regression tree requires a method to provide prediction for the target variable at each of the nodes.