Exam 13: Data Analytics

Carson is the marketing manager at a local travel publication. He is working with department heads to get some data to help him in his efforts to attract new clients while also investigating aspects of their existing clientele. Why would Carson choose to use prescriptive analytics?

More accountants continue to train in the area of data analytics and are using this new knowledge to help businesses look at data in new ways. What are a few ways companies can use data analytics in their cost accounting decisions?

Cynthia has been working at her current job for a little more than two years as a customer service representative. She has expressed interest in obtaining more job responsibilities and is seeking out ways that she could be promoted to a management role. She knows one thing she could do would be to assist with a new marketing campaign. If the campaign targets attracting customers who like to use dating apps, then what would her best source of data be?

The management at Gellar Corp. is compiling data for their analytics team. Gellar is a factory that produces candy gummy bears, and they are very interested in what changes in the next few years will reduce costs. Which of the following type of data analytics will be the most useful for this purpose, and why?

Chocolate Delights Company manufactures gourmet chocolate candy that it sells online. Chocolate Delights takes customer service very seriously and asks customers if they would like to complete a survey after each purchase. The company has been in business for 5 years and have had a good response rate on the surveys sent so far. The company needs to decide whether to add 4^th of July-themed candy to its current offerings, so they solicited feedback from 20 randomly selected customers to rate the idea on a scale from 1 to 10, along with other questions. Here are some results from those 20 randomly selected individuals: On their customer survey scores, the following ranges exist: a. How many of each converted letter scores (column B) did Chocolate Designs receive from this survey? b. What is the overall average score from these 20 results? What is the median score? And what is the mode score? c. If you were going to create a graph to display results of the survey (from part a), then what kind of graph would you create, and why? Create the graph you just mentioned.

Decision makers have to establish their needs and discover what data will help them to answer their queries. This data can be attained from a variety of sources, but these sources can be divided into the categories of internal or external. Which of the following best represents an example of a source of internal data?

Phoebe started her first job out of college, and she decided that creating a budget is incredibly important. After her first month on the job, she brought home a net sum of $1,853 in take-home pay, and she currently has savings of $500. She has constructed a chart to summarize her budgeted and actual financial amounts. Phoebe knows living within her means is very important and is open to the possibility of obtaining additional income when needed. With all of this information in mind, please answer the following questions. Use Excel where appropriate. a. Create a chart that shows both the budgeted and actual amounts for each expense category (a form of descriptive analytics), and comment on any observations you have. b. Are there any external data sets Phoebe could use to determine whether her budgeted amounts are appropriate and realistic? What actions could she take to better align her budgeted values with the results of this external data? c. Phoebe is debating whether she should accept a part-time baking job on weekends where she could net an extra $200 per week. What are the pros and cons of Phoebe taking on this extra work? How could Phoebe utilize what-if analysis (prescriptive analytics) to consider different scenarios?

Jessica recently compiled a budget for herself. She believes she needs to do a better job planning her finances and knows establishing a budget could be a step in the right direction. Her take home pay is $2,500. The following information is for the month of May: From an overall perspective, by what percent is Jessica over or under budget for the month of May?

Lauren launched her online boutique at the beginning of last year and would like to review her performance so far. She gathered the following information: Lauren would like to use her data analytics skillset to help with her assessment of the year. Which graph would most accurately depict this data visually in a compelling manner?

As students prepare for a life beyond the classroom, they must anticipate what skills will best translate into the business world. Employers created lists of their most in-demand skills for entry-level accountants. Which of the following is an example of one of the top five skills from these lists?

What is big data and how does it compare to data analytics? What are structured and unstructured data, and how do they relate to big data?

What are the four broad categories of analytics? How are they different from one another, and what kind of information can each assist in addressing?

As companies expand and work towards better understanding their existing and potential clients, they accumulate virtual profiles of their customers. The information gathered can vary in nature and scope but ultimately creates a snapshot of a typical customer. Which of the following are examples of Activity and History information that could be collected about a customer?

Archer is a sales associate at a music equipment store. He worked for this store for while finishing a degree at a local university. Archer is debating whether he should stay and accept a promoted role of manager in his current music store or accept a management position at a different store once he finishes his schooling. He determined that as a manager, his take home pay for both jobs will be $4,000 per month, and he constructed a following budget for each scenario: Each job has different benefits. The new job pays for a larger portion of health insurance premiums, provides company-paid internet, and is closer to Archer's house, while the current job provides onsite lunches frequently resulting in a lower overall food budget. These different benefits result in differing amounts in the budget. Archer decided that any unspent funds will go to a savings account. With this information in mind, please answer the following questions. Use Excel or a similar spreadsheet where appropriate. a. Under each budget, how much will Archer be able to put in his savings account? What is the percent difference in savings that Archer can amass per month? How many months would it take in each scenario to save enough money to afford a down payment of $22,500 towards a new house? b. Create a chart for each job's budget to visualize the proportion of Archer's budget needed for each category in each scenario. What chart is appropriate for this, and why is it the best option? What type of data analytics is this an example of? c. Assume Archer decides to stay at his current job and accept the management role. He did a good job in his first month of the new role but he did go over budget in a few areas. His actual spending was $340 on food, $71 on phone, and $191 on household supplies. Create a chart to show the budgeted and actual amounts for each category. To add some diagnostic analysis, provide at least three plausible explanations for the overages. d. Now, assume Archer decides to accept the management position in a different store, and his actual spending was $502 on food, $89 on gas, $71 on phone, and $199 on household supplies. Create a chart to show the budgeted and actual amounts for each category. To add some diagnostic analysis, provide at least three plausible explanations for the overages. e. Archer has come to you for guidance and help deciding what job to take based on the available information gathered in parts a-d. Which job would you advise him take, and why? How could Archer use what-if analysis, a form of prescriptive analytics, to help with this decision? What is a potential scenario that Archer should investigate?

As companies expand and work towards better understanding their existing and potential clients, they accumulate virtual profiles of their customers. The information gathered can vary in nature and scope but ultimately creates a snapshot of a typical customer. Which of the following are examples of financial information that may be collected about a customer?

Simon recently completed the third year of his four-year college and is trying to decide what he would like to do after graduation. Simon decided to pursue a one-year graduate degree in Accounting with a minor in Finance. Simon also accepted an internship for the coming summer at a local accounting firm where he is hoping to gain insight into what his life would look like if he went into an accounting-specific position after 4th year. Simon's grades and GPA for the first three years of his college look as follows: In order to be accepted into the graduate program, Simon needs a minimum GPA of 3.5. He believes he would be offered a starting salary of $48,000 if he went straight into working as opposed to attending graduate school. After graduate school, he expects a starting salary of $58,000, assuming he does complete his graduation. With all of this in mind, please help Simon evaluate his past three year's performances by answering the following questions. a. Use Excel to calculate the following totals for Simon's GPA: Average, Median, and Mode. What does each of these figures tell you? b. Based on data calculated in part a), is Simon's GPA on track for what will be needed to get into graduate school? Is there any additional advice to give Simon about his senior year? c. Simon would like to know how many As he has earned compared to Bs and Cs. Create a Count Data chart that summarizes this data. d. Using Excel, create a graph that displays the information you collected in part c). Why did you select the graph you did, and why is it the best way to represent this data? e. Assume Simon's GPA is sufficient and does not change much. He is accepted into a graduate program, so how many years would it take him after entering his profession to make up the lost year of income from extending his time in school? Please ignore inflation, and please explain how you arrived at your answer.

Sarah works for a mid-size law firm as a staff accountant. Sarah wants to develop her skills into something more valuable to her organization and more marketable in general. She knows that data analytics is an incredibly popular new area for high-demand skills. What routes could Sarah pursue to become more numerate?

Decision-making involving data analytics includes a five-step process. Which of the following best outlines what happens in the Gain Insight steps?

As more users engage in online activity, more data circulates and more information is collected by outside entities. In the United States, there are laws that govern the collection of information rather than a single comprehensive policy or agency. Which of the following is an example of a law that governs personal information collection by banks or financial institutions?

Windows R Us is a nationwide producer and wholesaler of residential windows. They are in the process of analyzing financial data from their most recent year and compiled the following information: Their accountant is putting together a presentation to demonstrate their performance during the year. Which quarter produced the highest average Net Income and what was that value?