Predictive data Analytics

 

Question 1

2 / 2 points

Which one of the following is used in predictive analytics?

Question options:

	A)  Data dashboard
	B)  Linear regression
	C)  Data visualization
	D)  Optimization model

Feedback Rationale: please see my slides in Ch1

Question 2

2 / 2 points

Which of the following analytical techniques helps us arrive at the best decision?

Question options:

	A)  Predictive analytics
	B)  Data mining
	C)  Prescriptive analytics
	D)  Descriptive analytics

Feedback Rationale: see slides in Ch1.

Question 3

2 / 2 points

In the spectrum of business analytics, which is the most complex?

Question options:

	A)  Descriptive
	B)  Predictive
	C)  Prescriptive
	D)  ​Operational

Feedback Rationale: see slides in Ch1.

Question 4

2 / 2 points

Which of the following is a discrete random variable?

Question options:

	A)  The number of times a student guesses the answers to questions on a certain test.
	B)  The amount of gasoline purchased by a customer.
	C)  ​The amount of mercury found in fish caught in the Gulf of Mexico.
	D)  ​The height of water-oak trees.

Feedback Rationale: A discrete random variable can only take on specified discrete values.

Question 5

2 / 2 points

The center of a normal curve is

Question options:

	A)  always equal to zero.
	B)  the mean of the distribution.
	C)  always a positive number.
	D)  equal to the standard deviation.

Feedback Rationale: see slides in Ch5

Question 6

3 / 3 points

Q6 and Q7 are based on #17 in Chapter 5 in the textbook. The probability distribution for damage claims paid by the Newton Automobile Insurance Company on collision insurance is as follows.

x	f(x)	xf(x)
0	0.85	0
500	0.04	20
1000	0.04	40
3000	0.03	90
5000	0.02	100
8000	0.01	80
10000	0.01	100
Total	1.00	430

Using the expected collision payment, what is the collision insurance premium that would enable the company to break even?

Question options:

	A)  4000
	B)  430
	C)  3929
	D)  None of above

Feedback see my slides in Ch5 Your answer is CORRECT.

Question 7

2 / 2 points

See Q6. The insurance company charges an annual rate of $520 for the collision coverage. What is the expected value of the collision policy for a policyholder?

Hint: It is the expected payments from the company minus the cost of coverage.

Question options:

	A)  -90
	B)  90
	C)  0
	D)  None of above

Feedback see my slides in Ch5 Your answer is CORRECT.

Question 8

3 / 3 points

Q8-Q9 are based on #33 in Chapter 5 in the textbook.

Suppose that Motorola uses the normal distribution to determine the probability of defects and the number of defects in a particular production process. Assume that the production process manufactures items with a mean weight of 10 ounces.

The process standard deviation is 0.15, and the process control is set at plus or minus one standard deviation. Units with weights less than 9.85 or greater than 10.15 ounces will be classified as defects.

What is the probability of a defect?

Question options:

	A)  15.87%
	B)  68.27%
	C)  31.73%
	D)  None of above

Feedback see my slides in Ch5 Your answer is CORRECT.

Question 9

2 / 2 points

See Q8. Suppose that Motorola uses the normal distribution to determine the probability of defects and the number of defects in a particular production process. Assume that the production process manufactures items with a mean weight of 10 ounces.

Through process design improvements, the process standard deviation can be reduced to 0.05. Assume that the process control remains the same, with weights less than 9.85 or greater than 10.15 ounces being classified as defect.

What is the probability of a defect?

Question options:

	A)  13.00%
	B)  99.73%
	C)  0.27%
	D)  None of above

Feedback see my slides in Ch5 Your answer is CORRECT.