1. Consider the following:
- How is data analytics different from statistics?
- What are the main differences between descriptive, predictive, and prescriptive analytics tools?
- How do businesses use analytics to convert raw operational data into actionable information?
Reflect on the following in a minimum of 500 words.
Think about the organization you work for (or any other organization you are familiar with). Does the organization use data analytics?
- If so, how is it used? How can the organization improve the way it uses data analytics? What opportunities is the organization missing out on?
- If not, how could data analytics be used to improve the organizations performance?
2. Consider the following:
Many business activities generate data that can be thought of as random. An example described in the textbook is the servicing of cars at an oil change shop. Each car entering the shop can be considered an experiment with random outcomes. A variable of interest in this experiment could be the amount of time necessary to service the car. Service time will vary randomly with each car. Often, we can capture the most relevant characteristics of a stochastic process with a simple probability distribution model. We can then analyze the model to make predictions and drive decisions. For instance, we could estimate the number of technicians the oil change shop needs to service demand on a Saturday afternoon.
Respond to the following questions:
- What is a random variable?
- How would you differentiate a discrete from a continuous random variable?
A laptop manufacturing company has implemented a 2-step process to test the quality of each production batch. In the first step, a technician randomly selects 15 laptops from the batch and determines whether they meet specifications. The batch is considered acceptable provided no more than 1 laptop fails to meet specifications. Otherwise, the entire batch has to be tested in the second step. Historical data shows that 95% of the laptops produced adhere to specifications.
Reflect on the following in a minimum of 500 words:
- What are the 4 characteristics of a binomial experiment?
- Can we use a binomial distribution to model this process?
- What is the probability that the entire batch unnecessarily has to be tested if in fact 95% of its laptops conform to specifications? (Hint: Use Excels =BINOMDIST() function to find the probability)
- What is the probability that the batch is incorrectly accepted if only 75% of its laptops actually conform to specifications?
- What situations in your organization might this type of analysis apply to? Explain.