MS MS in Business Analytics 1

Question 1

Which technique is commonly used to reduce the number of variables in a dataset while retaining most of its variance?

Accepted Answer

Principal Component Analysis

Answer

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?

Accepted Answer

Key Performance Indicator

Answer

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?

Accepted Answer

ANOVA

Answer

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?

Accepted Answer

Diagnostic analytics

Answer

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?

Accepted Answer

Control group

Answer

The control group receives no treatment and serves as the baseline against which the treatment group's performance is measured.

MS - Master of Science Practice Test