EBK BUSINESS ANALYTICS
3rd Edition
ISBN: 9780135231906
Author: Evans
Publisher: VST
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Textbook Question
Chapter 1, Problem 4PE
For each of the following scenarios, state whether descriptive, predictive, or prescriptive analytics tools would most likely be used.
- The chief financial officer for a small manufacturing firm would like to estimate the net profit that the firm could expect over the next three years.
- A human resource manager needs to understand whether the company’s current employee mix has the skills and capabilities needed to achieve the goals laid out by a new strategic plan.
- A financial advisor would like to develop the best mix of stocks, bonds, and other investments for a client to achieve a comfortable level of risk.
- A large service firm wishes to determine how to invest the cash received from its financial product to achieve the best return.
- A logistics company wants to better understand the relative profitability of its numerous customers over the past three years.
- A disaster relief agency needs to allocate its budget for the next year among various relief efforts and programs.
- An automobile company would like to determine the number of vehicles it could sell next year based on the proposed price.
- A baseball team would like to set ticket prices for different sections in its stadium to attract the highest number of fans throughout the season.
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True or false
One of the roles of the management accountant in the steep analysis is to assist the management in determining/assessing the logic between the identified factors their competitiveness/strategy, and its effect on their financial performance.
The first step in strategic analysis is to define the purpose/objectives of the analysis
Assume a company's Income Statement for Year 12 is as follows:
Year 12
(in 000s)
Income Statement Data
Net Revenues from Footwear Sales
$ 580,000
370,000
40,000
75,000
15,000
90,000
Cost of Pairs Sold
Warehouse Expenses
Marketing Expenses
Administrative Expenses
Operating Profit (Loss)
Interest Income (Expense)
Pre-tax Profit (Loss)
Income Taxes
Net Profit (Loss)
(15,000)
75,000
22,500
$ 52,500
Based on the above income statement data and assuming the company has 20 million shares of
common stock outstanding , the company's operating profit margin and EPS were
Copyright O by Glo-Bus Software, Inc. Capying, distributing, ar 3rd party website posting isexpressly prohibited and constitutes copyright vialation.
15.52% and $4.50.
O 9.05% and $3.75.
13.79% and $1.75.
O 12.93% and $3.75.
O 15.52% and $2.63.
Determine the type of business analytics for the following scenarios.
A. Imagine you are a meteorologist. You have to foretell the weather for the next two weeks by analysing the data from the satellites. Here, you have to apply advanced statistical, information software, or operations research methods to identify predictive variables and build predictive models. Discuss in detail which type of business analytics will be suitable for this scenario.
Chapter 1 Solutions
EBK BUSINESS ANALYTICS
Ch. 1 - Discuss how you might use business analytics in...Ch. 1 - How might analytics be used in the following...Ch. 1 - A supermarket has been experiencing long lines...Ch. 1 - For each of the following scenarios, state whether...Ch. 1 - Suppose that a manufacturer can produce a part for...Ch. 1 - A bank developed a model for predicting the...Ch. 1 - Four key marketing decision options are price P,...Ch. 1 - Total marketing effort is a term used to describe...Ch. 1 - A manufacturer of headphones is preparing to set...Ch. 1 - In this chapter, we noted the importance of...
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