Problems And Exercises. 1. Business Analytics Focuses On

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Problems and Exercises 1. Business Analytics focuses on using mathematical models and technology to improve decision-making in both business world and daily life. Without even realizing, people use analytics in everyday scenarios to take different types of decisions. Analytics can be useful in one’s personal life, like managing grocery purchasing, diet, buying any household item, automobile maintenance and etc. Let us take an example from routine life in which analytics can be helpful to take a particular decision. Suppose you need to buy a chair for your home. First of all, you can shortlist the features that are important for you in a chair like colors, length, material and so on. In this way, you are collecting data to further use.…show more content…
5. Classifying Data Elements in the Sales Transactions Database Figure 1.2 in the textbook shows a portion of Excel File Sales Transactions Database. The Data includes Customer ID; Region; Payment; Transaction Code; Source; Amount; Product; Time of the Day. They can be classified as follows: • Customer ID-Ordinal data • Region-Categorical data • Payment- Categorical data • Transaction Code- Ordinal data • Source- Categorical data • Amount- Ratio data • Product- Categorical data • Time of the Day- Interval data Categorical data is the data, which is placed into some categories according to specified characteristics. They have no quantitative relationship to one another. Since region, payment, source, and product are sorted into categories and they have no meaningful relationship to each other, they cannot be ordinal data. Therefore, they are Categorical Data. Ordinal data is the data that ranked according to some relationship to each other. Therefore, transaction, and customer id are classified as ordinal data because they are arranged in order, which have relationship to each other. Interval data is ordinal data with constant differences between observations. Hence, time of the day is interval data. Ratio data has continuous numerical data and have a natural zero. Therefore, Amount is considered as ratio data as it contains numerical value with meaningful figures. 9. A bank developed a model for predicting the average age checking
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