Question 1

Estimation samples an existing population.

Accepted Answer

Estimation involves using samples to make inferences or predictions about the characteristics of an existing population.

Question 2

Everything can be measured for analysis.

Accepted Answer

Not everything can be measured for analysis due to limitations such as abstract concepts (e.g., love, happiness), qualitative observations, and phenomena that are beyond current scientific understanding or measurement capabilities.

Question 3

Analytical managers should start small and only use analytics for very simple decisions.

Accepted Answer

Analytical managers should leverage analytics for both simple and complex decisions to fully utilize data-driven insights for strategic advantage and operational efficiency. Starting small can be a strategy to build capabilities, but limiting analytics to simple decisions is not a recommended approach.

Question 4

Most insurance policies are priced based on probability.

Accepted Answer

Insurance policies are typically priced based on the probability of the event they cover occurring, as well as the potential cost of claims. This helps insurers manage risk and ensure financial stability.

Question 5

People with more stable jobs tend to be the best drivers and have the lowest insurance risk.

Accepted Answer

People with more stable jobs are more likely to have regular schedules, which means they are less likely to be driving while tired or under the influence of alcohol. They are also more likely to be able to afford a safe and reliable car, and to have the time and resources to maintain it properly. All of these factors contribute to a lower insurance risk.

Question 6

Statistical analysis rarely provides the truth.

Accepted Answer

Statistical analysis often provides insights, trends, and evidence towards hypotheses but rarely offers absolute truth due to limitations such as sampling errors, biases, and the complexity of real-world phenomena.

Question 7

Statistical analysis normally proves the truth.

Accepted Answer

Statistical analysis can provide evidence supporting or refuting a hypothesis, but it does not prove truth in an absolute sense. It often deals with probabilities and can be subject to limitations, biases, and uncertainties.

Question 8

People often misinterpret a significant amount of data rather than a single data point.

Accepted Answer

People are more likely to misinterpret or draw incorrect conclusions from large datasets due to complexities, biases, and the potential for overfitting or underestimating variability, compared to interpreting a single data point which is generally more straightforward.

Question 9

Define availability bias.

Accepted Answer

The answer of Define availability bias....

Question 10

Precision can mask inaccuracies.

Accepted Answer

Precision refers to the closeness of two or more measurements to each other, but it does not guarantee that those measurements are accurate, meaning they may not be close to the true value. Therefore, a set of measurements can be very precise without being accurate, masking the inaccuracies.

Question 11

It is important to fail when doing analytics.

Accepted Answer

The answer of It is important to fail when doing...

Question 12

Quantitative reasoning should never replace sound reasoning.

Accepted Answer

The answer of Quantitative reasoning should never replace sound reasoning....

Question 13

Analysts should never rely on their hunches in analytics.

Accepted Answer

The answer of Analysts should never rely on their hunches...

Question 14

A manager should use analytics to search for the truth.

Accepted Answer

The answer of A manager should use analytics to search...

Question 15

Analytics is designed to produce perfect decisions.

Accepted Answer

The answer of Analytics is designed to produce perfect decisions....

Question 16

A manager should keep data secret and should shy away from sharing data with others.

Accepted Answer

The answer of A manager should keep data secret and...

Deck 13: Putting It All Together