Business Analytics and Quality Management Flashcards

Vocabulary practice flashcards covering business analytics, statistics, quality management, regression analysis, and organizational performance metrics.

Analytics (Organizational Benefit)

Helps an organization by developing fact-based strategies.

Prescriptive Analytics

An analytics classification that uses experimental design and optimization to suggest a course of action.

Data Quality Management Benefits

Mitigates undetected errors from the data entry process and ensures there are no missing data points.

Treatments

The procedures applied to each subject in an experimental study.

Omission Error

An error in data collection or entry where crucial data is missing.

Blind Study

A research design that eliminates bias when testing a new drug by ensuring patients are not aware of who received the treatment and who received the placebo.

Flawed Data Results

Leads to more time spent managing data than analyzing data, and missing data that can skew results.

Family Practice A Visit Comparison Sample

Sample comprising only Family Practice A telemedicine visits and in-person Family Practice A visits.

Observational Study

A type of study also known as a quasi-experimental study.

Management Use of Statistics

An appropriate application of statistical methods, such as understanding the demographics of customers.

Sample Size Importance

Crucial for statistical significance so that accurate conclusions can be confidently applied to larger populations.

Conditional Probability

The type of probability used to determine whether a project will be completed on time when one task depends on another completing first.

Multiplication Principle

The counting rule used to determine the total number of possible voting outcomes when voters cast ballots for candidates.

Median of Sales Receipts

The middle value ($34) among sales receipt totals of $25, $22, $48, $42, $32, $28, $24, $54, $34, $41, and $48.

Box Plot

A graphical display used to examine the distribution of a data set using quartiles.

95% Confidence Level Conclusion

The conclusion drawn when subjects exposed to an ad show greater brand awareness than a control group, indicating the advertisement was effective.

Normal Distribution

A distribution in which the mean and median are approximately equal.

Mean and Median in Salary Evaluation

Both statistics should be used because a large difference between them reveals outliers that must be assessed.

Chi-Square

The statistic used to compare mutually exclusive categorical data, such as new and used car sales.

Median (Outlier Resistance)

A statistic less affected by outliers and skewed data, used to determine typical donation amounts.

Left-Skewed Exercise Boxplot

Represented by the fourth boxplot option in a study of 1,020 people with a mean of 44.75.

Three Standard Deviations Concern

A manager's concern caused when daily sales of $750 fall outside three standard deviations of a mean of $1,500 with a standard deviation of $250.

Independent Variable

The predictor variable in regression analysis, such as land availability predicting commute time.

Linear Regression

A regression analysis method used to predict continuous quantitative variables, such as sales based on advertising spending.

Expected Sales Calculation ($Y = 2X + 25,000$)

The calculated result yielding expected sales of $65,000 when advertising spending ($X$) is $20,000.

Seasonality

A recurring data pattern where sales decline in Q1, grow in Q2, decline in Q3, and rapidly increase in Q4.

Cluster Analysis

An analytical technique used to determine different segments or target groups within a market.

ANOVA

A statistical analysis used to test whether there is a significant difference in average donor solicitation among three fundraising events.

Mode

The survey response or data value that appears the greatest number of times.

Break-Even Analysis

A quantitative technique used to determine how many units must be sold to cover total costs and generate a profit.

Customer Focus Outcome

The organizational result where focusing on customers leads to increased revenue and market share.

Continuous Improvement Commitments

Two individual commitments focused on increasing one's effectiveness and increasing one's skills.

Check Step (PDCA Cycle)

The step in the Plan-Do-Check-Act cycle that involves analyzing results and deciding whether they can be improved.

Quality Control Activity

An operational activity where a manager reviews performance data to address defect patterns, such as shift-specific error rates.

SIPOC Diagram

A quality tool used to closely monitor process inputs and outputs.

Statistical Process Control Example

Determining whether the weight of selected product samples is within a tolerable range.

Fact-Based Decision-Making

A quality management principle intended to reduce bias driven by increased trust in plans.

Ishikawa's Seven Basic Tools of Quality

Tools that represent processes graphically and can be easily understood and used by the average worker.

Cause-and-Effect Diagram

A quality management tool often referred to as a fishbone chart or diagram.

Pareto Chart

A tool that sorts data into categories to identify the most significant factors contributing to problems.

80-20 Rule

The Pareto principle stating that 80% of quality management problems result from 20% of causes.

Flowchart

A graphical representation depicting the individual steps that compose a process.

Six Sigma (Primary Goal)

Fostering an organizational commitment to continuous improvement.

Six Sigma (Defect Rate Target)

A quality methodology seeking to reduce process variation to no more than 3.4 defects per million process outputs.

Data Mining

An analytical activity used to discover similarities among existing customers, such as products purchased, location, and average amount spent.

Activities Stage (Results-Based Management)

The stage represented by operational actions such as hiring a third party to train staff and assess existing operational procedures.

Big Data

Large datasets that require analysis using powerful analytics tools.

Simple Index Number Formula

Calculated as $\frac{\text{Current Price}}{\text{Base-Year Price}} \times 100$.

Patient-to-Staff Ratio

A service delivery metric measured to evaluate whether each shift is adequately staffed during restructuring.

Incidence Rate

A healthcare analytic measuring the proportion of new cases compared to person-time units.

Patient Satisfaction Campaign Decision

Discontinuing a campaign because mean satisfaction dropped from 4.20 to 1.5, indicating a decline.

Z-Score Basic Assumption

The foundational assumption that the standard normal distribution has a mean $\mu = 0$ and standard deviation $\sigma = 1$.

Scatter Diagram

A graphical plot used to demonstrate a relationship between variables.

Average Cost Per Project Method

A method using the average cost per project spent by other similar organizations to guide budgeting decisions.

Voters' Complaints Per Department

A performance metric measured to guide budget allocation to departments to improve trust in tallying machines.

Balanced Scorecard vs. Key Performance Indicator

A KPI aligns with one aspect of success, whereas a balanced scorecard views performance across several operational areas.

Appropriate Performance Indicators

Metrics selected specifically because they align directly with an organization's definition of success.

Balanced Scorecard Perspectives

A performance metric system that accounts for financial, customer, internal process, and learning metrics.

Qualities of Key Performance Indicators

Characteristics including alignment with SMART criteria and application as tools for internal benchmarking.

Balanced Scorecard Disadvantage

The requirement of substantial time and effort to develop a meaningful template.

Net Promoter Score

A customer feedback metric used to determine the likelihood that a customer will recommend the company.

On-Time Performance KPI

A metric tracking delivery compliance, such as measuring whether first-class mail is delivered within two days of postmark.

Balanced Scorecard (Long-Term Performance)

The overall management tool best suited for improving productivity, staff morale, client satisfaction, and long-term financial performance.