Business Analytics Anna University 2 Mark Questions
Business Analytics Anna University 2 Mark Questions
Business Analytics Anna University 2 Mark Questions
2Marks
7. Data Visualisation
8. What is population?
9. What is sampling?
Sampling is a process in which the fixed numbers of observations are taken
randomly from a larger population.
10. List out the characteristics of good sample design
1) True Representative
2) Free from Bias
3) Accurate
4) Comprehensive
5) Approachable
6) Good Size
7) Feasible
8) Goal Orientation
9) Practical
10) Economical
11. Advantages of Sampling
1) Saves Time, Money and Effort
2) More Effective
3) Faster and Cheaper
4) More Accurate
5) Gives More Comprehensive Information
12. Disadvantages of Sampling
1) Biased Selection
2) Difficulty in Selection
3) Specialised Knowledge Needed
4) Problem of Cooperation
5) Less Accuracy
6) Limited Nature
13. Sampling Methods
Thus, sample designs are basically of two types, viz., probability sampling and
non-probability sampling as shown in figure below:
14. Sample Random Sampling
This is the most famous and simple method of sampling where each unit of the
population is equally probable of getting included in the sample. Let us consider that
the size of the population is 'N' from which n units are to be selected at random for a
sample such that ncn sample has the probability of being selected equally. Simple
random sampling says that:
15. Systematic Sampling
After the selection of one unit at random from the universe the other units are
selected systematically at a specified interval of time. This method is applicable when
the size of the population is finite and on the basis of any system the units of the
universe are arranged such as alphabetic arrangement, numerical arrangement, or
geographical arrangements.
16. Stratified Random Sampling
In the Stratified Random Sampling, the sample is selected from different
homogeneous strata or parts of a universe of heterogeneous universe as a whole. The
summary of this sampling procedure is as follows.
17. Cluster Sampling
According to this method there is further noticeable sub-division of the
universe into clusters. Simple random sampling is performed and clusters are drawn
accordingly constituting a sample of all the units belonging to the selected clusters.
For example, if we have to conduct a survey in the city of Mumbai, then the city may
be divided into, say, 40 blocks and out of these 40 blocks, 5 blocks can be picked up
by random sampling and the people in these five blocks are interviewed to give their
opinion on a particular issue. The clusters chosen should be small in size, i.e., more or
less the same number of sample units should be there in each cluster. This method is
used in the collection of data about some common traits of the population.
18. Multi-Stage Sampling
Modification of cluster sampling is multi-stage sampling where in cluster
sampling, a sample is constituted by all the units selected in a cluster but in multi-
stage sampling where in cluster sampling the selection of the sample units is in two,
three, four stages. Firstly , the universe is divided into first-stage sample units and
then further sub-divided into second stage sampling is performed in the same way.
For example, in an urban survey first stage sampling fourth stage sampling is will be
of selection of towns and then for each selected as samples of third-stage sampling.
19. Area Sampling
The area sampling is a form of multi-stage sampling in which maps instead of
lists or registers is used as 'sampling frame' . It is commonly used in those countries
which do not have proper sampling frame like a population list. For geographic sub-
divisions, 'clusters sampling' is the other name of 'area sampling' . The cluster of units
based non geographical area is the primary sampling units known as 'cluster designs'
which are famous as area sampling. The positive and negative features of cluster
sampling area also applicable to area sampling.
20. Non-Probability Sampling Methods
Non-probability sampling is that type of sampling procedure which does not
have any ground for estimating the probability that whether or not each item in the
population has been included in the sample. There are different names of non-
probability sampling such as deliberate sampling, purposive sampling and judgement
sampling. In this type of sampling, the researcher deliberately selects items for the
sample and the choice of researcher regarding the item is provided more weightage. In
other words, under non-probability sampling the organiser of the inquiry purposively
chooses specific units of the universe to constitute a sample on the basis that the small
portion selected by him, out of a huge one is typical or representative of the whole
universe. The various non-probability sampling designs are:
Non-Probability Sampling Methods
Convenience Sampling
Purposive Sampling
Panel Sampling
Snowball Sampling
26. Estimation
When a researcher makes inferences about a population then this process is
known as estimation. The inferences are concluded on the basis of information
obtained from the sample. A statistic is any measurable quantity that is concludes
from a data sample (e.g. the average). For a given variable it is a stochastic variable.
General it is vary from sample to sample.
27. Estimator and Estimate
A sample statistic is used when one makes an estimate of a population
parameter. This sample statistic is the 'estimator'.
28. Characteristics of Estimation
The specific value of the sample statistic used to estimate a population
parameter is known as 'point estimate'. Point estimation manages the task of
selecting a particular sample value which is an estimate for a population parameter.
Point estimation of some population parameter is shown in figure 3.14. The
population parameter of interest might be the mean, variance, standard deviation,
proportion or any other characteristic of the population. Collection of random sample
to estimate the value of an unknown population parameter typically comprises of 'n'
observations of the variable of interest. The estimator of the population parameter is a
function of these sample observations.
29. Point Estimation
The fixed interval of scores where the population's mean or some other parameter is
expected to fall when that parameter is to be estimated from the given sample data is
known as 'interval estimation' .
30. Internal
31. Important teams related to probability Distribution
32. Types of Probability Distribution
The various types of Probability Distributions are as shown in figure below:
Discrete Probability
Distributions Continuous Probability
Distributions
Bin Binomial Distribution
Poisson Distribution Uniform Probability
Distribution
Exponential Probability
Distribution
Normal Probability
Distribution
Student's Distribution
Chi-Square Distribution
F Distribution
33. Discrete Probability Distribution
In a probability distribution of a random variable X, in which X can only take
the values of distribution when its random variable is a discrete variable. The
following examples illustrate discrete probability distributions:
i) A car can have only 0,1,2,3 or 4 flat tyres.
ii) A bookshop has only 0,1,2,3,4 or 5 copies of a particular title in stock
iii) The number of employees absent on a given day is 0,1,2,3
34. Continuous Probability Distribution
The probability distribution of a random variable is called continuous
Probability Distribution if the given random variable is continuous. Continuous
variables contain very large number of outcomes (which are in fact uncountable) but
discrete variables contain finite number of outcome values. In continuous random
variables, the probability of a single outcome will be close to zero since the total
probability '1' is divided among a very large number of outcomes. For continuous
random variables, calculation of probability for a single value may not be significant.
Some examples that will clarify the difference between discrete and continuous
variables are
35. Analysis of descriptive analytics
Step 1) State the Business Metrics
Step 2) Identify the Data Required
Step 3) Extract and Prepare the Data
Step 4) Analyze the Data
Step 5) Present the Data
unit-4
Two Marks
1. Predictive Analytics
Predictive analytics is an area of data mining that deals with extracting
information from data using it to predict trends and behaviour patterns. Often the
unknown event of interest is in the future, but predictive analytics can be applied
to any type of unknown, whether it be in the past, present or future. For example,
identifying suspects after a crime has been committed, or credit card fraud as it
occurs.
2. Procedure involved in predictive Analytics
Figure 4.2 shows the basic steps involved in the predictive analytics process, which
are describe below:
Predictive
Analytics
Pattern Evaluation
More Proactive
Capturing Multiple Data Touchpoints and
Formats
Real-Time Insights
Removing Bottlenecks
Linear Programming
Integer Programming
Non-Linear Optimisation
Decision Analysis
Case Studies
Simulation
Other Methodologies
7. Linear Programming
A general-purpose modelling methodology is applied to multi-constrained,
multivariable problems when an optimal solution is sought. It is ideal for complex and
large-scale problems when limited resources are being allocated to multiple uses.
Examples include allocating advertising budgets to differing media, allocating human
and technology resources to product production, and optimising blends of mixing
ingredients to minimise costs of food products.
8. Integer Programming
This is the same as LP, but it permits decision variables to be integer values.
Examples include allocating stocks to portfolios, allocating personnel to jobs, and
allocating types of crops to farm lands.
9. Non-Linear Optimisation
A large class of methodologies and algorithms is used to analyse and solve for
optimal or near-optimal solutions when the behaviour of the data is non-linear.
Examples include solving for optimised allocations of human, technology, and
systems whose data appears to form a cost or profit function that is quadratic, cubic,
or nonlinear in some way.
10. Decision Analysis
A set of methodologies, models, or principles is used to analyse and guide
decision-making when multiple choices face the decision maker in differing decision
environments (e.g., certainly, risk, and uncertainty). Examples include selecting one
from a set of computer systems, trucks, or site locations for a service facility.
11. Case Studies
A learning aid provides practical experience by offering real or hypothetical
case studies of real-world applications of BA.
For example, case studies can simulate the issues and challenges in an actual problem
setting. This kind of simulation can prep decision makers to anticipate and prepare for
what has been predicted to occur by the predicted analytics step in the BA process.
For example, a case study discussion on how to cope with organisation growth might
provide a useful decision-making environment for a firm whose analytics have
predicted growth in the near future.
12. Simulation
This methodology can be used in prescriptive analysis in situations where parameters
are probabilistic, non-linear, or just too complex to use with other optimisation
models that require deterministic or linear behaviour.