Quant Analysis Midterm Exam

The six levels of Bloom’s Taxonomy (lowest to highest)

remember, understand, apply, analyze, evaluate, and create

What does AMPS (framework for performing data analytics) stand for?

Ask the question, Master the data, Perform the analysis, Share the story

Share the Story: one way to communicate would be through the use of:

visualizations

a graphical summary of various measures tracked by a company

dashboard

if it is a one-time analytics, the results might be _______

static

if the analytics need to be done daily, weekly, or continuously, perhaps a graph or chart that is more _________ updating on a continuous basis might be the appropriate way to communicate results

dynamic

What type of question is predicting whether a company will go bankrupt in the coming two years?

Will it happen in the future? Is it forecastable?

What type of question is finding the detail to more clearly understand why net income is decreasing when revenues are increasing?

why did it happen? what are the root causes of past results?

what visualization type is most appropriate for evaluating the relationships between values?

scatterplot

which of the following software tools specialize in data visualizations?

Power BI and Tableau

Planning the way to interact with GenAI products is generally called:

prompt engineering

Datasets that are too large and complex for businesses’ existing systems (traditional capabilities) to capture, store, manage, and analyze

Big Data

The Four Vs of Big Data:

volume, variety, velocity, and veracity

What does Volume mean in Big Data?

the amount of data

variety

different forms of data: structured, unstructured, and semi-structed data

velocity

the speed that the data is being generated

Veracity is the underlying quality of the data. We define it in terms of:

whether the data is truthful, accurate, and worthy of trust

What would be most likely to be disclosed in an 8-K filing to the U.S. Securities and Exchange Commission (SEC)?

change in auditors

which system would be used to manage the hiring process for all potential employees?

human resource management system

the biggest difference between a 10-K and 10-Q is:

the frequency of disclosure

what type of data can be used to help evaluate trends with sales and competing products?

product reviews

Whereas _______ would generally be considered to be structured data, _______ would generally be considered to be unstructured data.

financial statements, product reviews

An announcement of a new CEO would most likely be reported on which SEC form?

8-K

There are really very few opportunities to have a question-and-answer session with the CEO of a company and have it recorded for others to use. What provides details of the CEO interactive question-and-answer session and is available to all interested parties?

conference call transcripts

the moral responsibility associated with gathering, protecting, and using data is called:

data ethics

name 3 nonaccounting data sources

economic data, stock prices, earnings forecasts

What is Categorical data?

Data represented by categories or groups such as sales versus returns

What is numerical data?

meaningful numbers such as transaction amounts, net income, or age

what is nominal data?

categorical data that cannot be ranked

what is ordinal data?

categorical data that can be ranked or sorted

An example of ordinal data:

gold, silver, bronze

an example of interval data:

Fahrenheit temperature or SAT Scores

an example of ratio data:

sales, net income, height

What is a data dictionary?

a centralized repository containing information about data

What does a data dictionary describe?

each field’s name, data type, size, definition, and related info

What are the three basic components of relational database?

tables, fields, and records

What is a field?

a column containing descriptive info about observations

what is a record?

a row representing a unique instance in a table

what is a primary key?

a unique identifier for each record in a table

what is a foreign key?

a field used to create a relationship or link between tables

why use related tables?

to reduce redundancy and inefficiency in stored data

what is an update anomaly?

a problem caused when repeated data must be updated in multiple places

what is an insert anomaly?

a problem where data cannot be added without adding unrelated information

what is a delete anomaly?

a problem where deleting data unintentionally removes other needed information

how can relational databases improve internal controls?

they reduce redundancy, improve security, and help enforce data-entry controls

what are the three parts of faithful representation?

free from error, complete, and neutral

What does SQL SELECT do?

specifies the data or fields you want to retrieve

What does SQL FROM do?

specifies the table the data comes from

What does SQL WHERE do?

specifies conditions that determine which records are returned

what SQL command adds records?

INSERT

what SQL command changes existing records?

UPDATE

WHAT SQL command removes records?

DELETE

what SQL joins are listed in the review?

inner, left, right, and outer joins

what question does descriptive analytics answer?

what happened? What is happening?

what question does diagnostic analytics answer?

why did it happen?

what question does predictive analytics answer?

will it happen in the future?

what question does prescriptive analytics answer?

what should we do based on what we expect will happen?

what does descriptive analytics do?

characterizes, summarizes, and organizes data to facilitate understanding

examples of descriptive analytics?

counts, totals, averages, minimums, maximums, etc

what are ratio analytics used for?

calculating financial ratios for comparison

What does diagnostic analytics investigate?

the underlying causes of events or results

what is an anomaly or outlier?

An unusual or unexpected result or transaction

what is drill-down analytics?

examining underlying data at different levels to uncover details

what is variance analysis used for?

Identifying differences between actual results and expectations

What is Benford’s Law used for?

identifying potential fraud or irregular transactions

What are PivotTables used for in diagnostic analytics?

cross-tabulation to uncover patterns and relationships

What can correlation/regression examine?

relationships between variables

What is hypothesis testing used for?

Testing whether differences or relationships are statistically supported.

what does predictive analytics provide?

foresight by using historical patterns to assess future likelihood

What does prescriptive analytics identify?

the best possible options given constraints or changing conditions

what is sensitivity analysis?

evaluating outcomes when inputs are uncertain or changed

what is capital budgeting?

Evaluating future cash flows using techniques such as NPV and IRR

What is marginal/incremental analysis?

determining the change in profit from the next unit or decision

what is Goal Seek?

finding what input is needed to reach a desired output

what is what-if scenario analysis?

analyzing potential future outcomes under different scenarios

what does SQL stand for?

Structured Query Language

Which SQL statement is used to insert new data in a database?

INSERT INTO

With SQL, how do you select a column named "FirstName" from a table named "Persons"?

SELECT FIrstName FROM Persons

with SQL, how do you select all the columns from a table named “Persons”?

SELECT * FROM Persons

With SQL, how do you select all the records from a table named "Persons" where the value of the column "FirstName" starts with an "a"?

SELECT * FROM Persons WHERE FirstName LIKE 'a%'

TRUE OR FALSE: (SQL) The OR operator displays a record if ANY conditions listed are true. The AND operator displays a record if ALL of the conditions listed are true

true

Which SQL statement is used to return only different values?

SELECT DISTINCT

Which SQL keyboard is used to sort the result-set? (SQL)

ORDER BY

what is the most common type of join? (SQL)

inner join

which operator is used to select values within a range? (SQL)

BETWEEN

TRUE OR FALSE: the NOT NULL constraint enforces a column to not accept NULL values (SQL)

true

Which operator is used to search for a specified pattern in a column? (SQL)

LIKE

Which SQL statement is used to create a database table called 'Customers'? (SQL)

CREATE TABLE Customers