MS MS in Business Analytics 1 — Questions and Answers
Question 1: Which technique is commonly used to reduce the number of variables in a dataset while retaining most of its variance?
- Principal Component Analysis (Correct answer)
- Linear Discriminant Analysis
- K-Means Clustering
- Decision Tree Pruning
Correct answer: Principal Component Analysis
Principal Component Analysis (PCA) is a dimensionality reduction technique that projects data onto orthogonal components capturing maximum variance.
Question 2: In business analytics, what does KPI stand for?
- Key Performance Indicator (Correct answer)
- Key Process Integration
- Knowledge Processing Interface
- Key Predictive Index
Correct answer: Key Performance Indicator
KPI stands for Key Performance Indicator, a measurable value that demonstrates how effectively a company is achieving business objectives.
Question 3: Which statistical test is appropriate for comparing means across three or more independent groups?
- ANOVA (Correct answer)
- Paired t-test
- Chi-square test
- Pearson correlation
Correct answer: ANOVA
Analysis of Variance (ANOVA) tests whether the means of three or more groups differ significantly from each other.
Question 4: What type of analytics focuses on understanding why something happened?
- Diagnostic analytics (Correct answer)
- Descriptive analytics
- Predictive analytics
- Prescriptive analytics
Correct answer: Diagnostic analytics
Diagnostic analytics examines historical data to identify the root causes and reasons behind past outcomes.
Question 5: In A/B testing, which element is kept unchanged and serves as the comparison baseline?
- Control group (Correct answer)
- Treatment group
- Holdout set
- Validation set
Correct answer: Control group
The control group receives no treatment and serves as the baseline against which the treatment group's performance is measured.
Question 6: Which data visualization type is best suited for displaying part-to-whole relationships?
- Pie chart (Correct answer)
- Line chart
- Scatter plot
- Box plot
Correct answer: Pie chart
Pie charts display how individual categories contribute to a whole, making them ideal for part-to-whole comparisons.
MS MS in Business Analytics 1
Which technique is commonly used to reduce the number of variables in a dataset while retaining most of its variance?