US CMA Part 1 · Chapter 6 · Question 13 of 22
An analyst drills down into sales data to determine why revenue in the western region fell last quarter. This is an example of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Diagnostic analytics
Explanation
Diagnostic analytics investigates the causes of past outcomes, using techniques such as drill-down, data discovery and correlation analysis. Simply reporting that revenue fell would be descriptive analytics.
More Technology and Analytics MCQs
- Q15A regression of monthly utility cost on machine hours has a coefficient of determination (R-squared) of 0.81. What does this indicate?
- Q16For a regression model, the total sum of squares is 50,000 and the sum of squared errors (residual sum of squares) is 8,000. What is the…
- Q17In a regression of delivery cost on miles driven, the slope coefficient is 3.6 and its standard error is 1.2. Using the common rule of…
- Q18A cost estimation equation was derived from data on production between 2,000 and 6,000 units per month. Why should managers be cautious…
- Q19What distinguishes Monte Carlo simulation from simple sensitivity analysis?