Perform the Analysis: Types of Data Analytics

These flashcards cover key vocabulary terms and concepts related to the analysis process in accounting and statistics, specifically focusing on the types of analytics and their significance in data evaluation.

ETL Process

The process of extracting, transforming, and loading data to prepare it for analysis.

Perform the Analysis

The third step of the AMPS model that involves processing data to draw conclusions.

Descriptive Analytics

Analytics that answers the questions 'What happened?' or 'What is happening?'

Diagnostic Analytics

Analytics that answers 'Why did it happen?' and investigates the underlying causes of past results.

Predictive Analytics

Analytics that forecasts future events and answers the question 'Will it happen?'.

Prescriptive Analytics

Analytics that helps determine 'What should we do?' based on expected outcomes.

Statistical Tools for Descriptive Analytics

Tools such as counts, totals, averages, and pivot tables used to summarize and analyze data.

Null Hypothesis

A statement that assumes no effect or difference, used as a starting point for hypothesis testing.

Alternative Hypothesis

The hypothesis that proposes a potential result opposite to the null hypothesis.

P-value

The probability that measures the evidence against the null hypothesis; low p-values indicate strong evidence against it.

Confidence Interval

A range of values derived from sample statistics that may contain the true population parameter.

Sample

A subset of a population selected to represent the entire group.

Population

The complete set of items or individuals that share common characteristics.

Benford's Law

A principle stating that in naturally occurring collections of numbers, the leading digit is likely to be small.

Time Series Analysis

A method used to predict future values based on previously observed values of the same variable.

Regression Analysis

A predictive analytics technique used to determine the relationship between dependent and independent variables.

Histogram

A graphical representation that organizes a group of data points into user-specified ranges.

Outlier

A data point that differs significantly from other observations in a dataset.

Scenario Analysis

A process to evaluate the effects of different scenarios on a variable or variables.

Variance Analysis

A technique used to analyze the difference between planned financial outcomes and actual financial outcomes.

Z-score

A statistical measurement that describes a value's relationship to the mean of a group of values.

Counts, Totals, Averages, and Pivot Tables

These are statistical methods used in Descriptive Analytics to aggregate and summarize data to understand 'what happened?'

Graphs (e.g., Histograms)

Visual representations used in Descriptive Analytics to display data distributions and patterns to understand 'what happened?'

Horizontal Analysis (Trend Analysis)

A technique used in Descriptive Analytics that compares financial data over multiple periods to identify trends, answering 'what happened?'

Vertical Analysis (Common-Size Analysis)

A technique used in Descriptive Analytics that expresses financial data as a percentage of a base figure within a single period to show relationships, answering 'what happened?'

Z-score

A statistical measurement used in Descriptive Analytics to describe a value's relationship to the mean of a group of values, indicating its position relative to the average.

Benford's Law

A principle used in Diagnostic Analytics to check the distribution of leading digits in numerical datasets to detect anomalies or potential fraud by identifying deviations from expected patterns, helping to understand 'why did it happen?'

Variance Analysis

A technique used in Diagnostic Analytics to identify and explain the differences between planned (budgeted) and actual financial or operational outcomes, helping to understand 'why did it happen?'

Drill-down Analysis and Root Cause Analysis

Techniques used in Diagnostic Analytics to investigate data in detail, moving from high-level summaries to specific transactions to uncover the fundamental reasons for an event, helping to understand 'why did it happen?'

Outlier Detection

Statistical methods used in Diagnostic Analytics to identify data points that significantly differ from others, which might indicate anomalies, errors, or significant events that warrant further investigation, helping to understand 'why did it happen?'

Regression Analysis

A predictive analytics technique that is a statistical process for estimating the relationships among variables, often used to predict a dependent variable from one or more independent variables, answering 'will it happen?'

Time Series Analysis

A method used in Predictive Analytics to analyze data points collected over a period of time to identify trends, cycles, or seasonal patterns and then forecast future values based on these observations, answering 'will it happen?'

Machine Learning Algorithms

Advanced techniques (e.g., decision trees, neural networks, clustering) used in Predictive Analytics that learn complex patterns from data to make predictions or classifications without being explicitly programmed, answering 'will it happen?'

Scenario Analysis

A process used in Prescriptive Analytics to evaluate the effects of different hypothetical situations or future scenarios on a variable or variables to understand potential impacts and inform decision-making, helping to determine 'what should we do?'

Optimization

A method used in Prescriptive Analytics that utilizes mathematical models to find the best possible outcome or maximum value of a function, given a set of constraints, helping to identify the most efficient action to determine 'what should we do?'

Simulation

A technique used in Prescriptive Analytics that models various outcomes of a process or system under different conditions, often using random variables, to predict performance and aid in risk assessment and decision-making, helping to determine 'what should we do?'

Decision Modeling

A framework used in Prescriptive Analytics that