MS MS in Business Analytics 2 — Questions and Answers
Question 1: What is the purpose of a confusion matrix in classification models?
- To evaluate model performance by showing true vs. predicted class counts (Correct answer)
- To visualize feature importance rankings
- To display the correlation between variables
- To summarize the training data distribution
Correct answer: To evaluate model performance by showing true vs. predicted class counts
A confusion matrix tabulates actual versus predicted classifications, enabling calculation of accuracy, precision, recall, and F1-score.
Question 2: Which SQL clause is used to filter groups after aggregation?
- HAVING (Correct answer)
- WHERE
- GROUP BY
- ORDER BY
Correct answer: HAVING
The HAVING clause filters rows after a GROUP BY aggregation has been applied, unlike WHERE which filters before aggregation.
Question 3: What is customer lifetime value (CLV) primarily used to measure?
- The total revenue a business expects from a single customer over the relationship (Correct answer)
- The average order value per transaction
- The cost to acquire one new customer
- The churn rate within a customer segment
Correct answer: The total revenue a business expects from a single customer over the relationship
Customer Lifetime Value estimates the total net revenue a business anticipates from a customer throughout the entire business relationship.
Question 4: Which regression technique applies a penalty to large coefficients to prevent overfitting?
- Ridge regression (Correct answer)
- Simple linear regression
- Logistic regression
- Polynomial regression
Correct answer: Ridge regression
Ridge regression adds an L2 regularization penalty (λΣβ²) to the loss function, shrinking large coefficients and reducing overfitting.
Question 5: In supply chain analytics, what does 'lead time' refer to?
- The time between placing an order and receiving the goods (Correct answer)
- The time taken to process a customer complaint
- The duration of a product's shelf life
- The interval between production runs
Correct answer: The time between placing an order and receiving the goods
Lead time is the total elapsed time from when an order is placed to when the goods are received and available for use.
Question 6: Which dashboard tool is most commonly taught in MS Business Analytics programs as a BI platform?
- Tableau (Correct answer)
- Microsoft Word
- AutoCAD
- SPSS only
Correct answer: Tableau
Tableau is widely taught and used in Business Analytics programs for creating interactive data visualizations and business intelligence dashboards.
MS MS in Business Analytics 2
What is the purpose of a confusion matrix in classification models?