About the Author About the Technical Reviewer Acknowledgments. Introduction... !Chapter 1: Introduction to Analytics ‘Chapter 2: Data Understanding .. Chapter 3: Introduction to Basic Stati Chapter 4: Hypothesis Testing ‘Chapter 5: Correlation and Regression.. Chapter 6: Segmentati Chapter 7: Advanced Statistics and Usage... iChapter 8: Classification Techniques and Analytics Tools... Index...MChapter 1: Introduction to Analytics ..... Q: What is analytics?....... Q: Why has analytics become so popular today?.... Q: What has led to the explosion of analytics into the mainstream? Q: How is analytics used within e-commerce and marketing Q: How is analytics used within the financial industry?..... Q: How is analytics used within the retail industry? .. Q: How is analytics used in other industries? Q: What are the various steps undertaken in the process of performing analytics? portant to have an understanding of Q: Why is business understanding such an integral part of analytics?, Q: What is modeling’ Q: What are optimization techniques?.... Q: What is model evaluation? Q: What is in-sample and out-of-sample testing?..‘Q: What are response models?. ‘Q: What is model lift? ... Q: Can you explain the deployment of an analytics model? Why is it important? .. Q: How are predictive and descriptive analytics differentiated?. : How much can we rely on the results of analytics: 0: Can you briefly summarize the tools used in analytic: Chapter 2: Data Understanding ... (Q: What are the four types of data attributes? Q: Can you explain the nominal scale in detail?.. Q: What are some of the pitfalls associated with the nominai scale’ Q: Can you explain the ordinal scale in detail?, 'Q: What are some of the pitfalls of the ordinal scale?. Q: Where are ordinal scales most commonly used Q: What is meant by data coding?.... Q: Can you explain the interval scale in detail? J Q: What are the two defining principles of an interval scale?. O: What are the characteristics of the ratio scale? Q: What are the limitations of scale transformation? .. Q: In 2014, Forbes ranked Bill Gates as the richest man in ‘the United States. penne to what scale of measurement iis this ranking?. Q: How are continuous and discrete variables differentiated?.. 0: How are primary and secondary data differentiated? Q: Broadly, what are the four methods af primary data collection’ Q: What is meant by primary data collection by observation? .. 0: What is primary data collection by in-depth interviewing?....0: What is primary data collection by focus QTOUPS? ..cccccccineseese 16 O: What is primary data coflection by questionnaires and surveys?..... 16 Q: What is data sampling?... Q:What are the different types of sampling plans? 0: What is simple random sampling?...... 0: What is stratified random sampling?...... Q: What is cluster sampling?................ OQ: What are the different errors involved in sampling?. : What causes a sampling error? ......... Q: What is a non-sampling error?......... Q: What are the three types of non-sampling errors? . 0: Can you identify some errors in data acquisition Q: When does selection bias occur?........ Q: What is data quality’... 0: What is data quality assurance? Q: What are various aspects of data quality? 0... 1D Q: What is data consistency? ...... 0: What is meant by data timeliness?.. Q: What is data auditability?..... Q: What is meant by data being “redundant”?......... O: What is data cleaning?..... Q: What are different sources of errors in data’ O: What are data entry errors? eee O: What are distillation QFOTS? ssessesssees0e‘0: What are data outliers?.. ‘0: What are the sources of outliers’ MSChapter 3: Introduction to Basic Statistics ...ccssssessecssesasssssseses 23 ‘0: How would you define statistics to a layperson? (0: How are statistical methods categorized! ‘0: What is the definition of descriptive statistics’ (0: How do you define inferential statistics? ‘0: What is a population data set?. ‘0: What are data frequency tables? 0: How do you define location statistics? ‘Q: What is the mean or average? Q; What are some of the key characteristics of a mean? ‘0: What is a weighted mean?..... Q: What is a median? How do we determine the median of a data set?...... Q; When is a median used as opposed to a me 0: What is meant by *mode"? 0; Can you define quartiles, quintiles, deciles, and nd parcatien? ee oe Q; Can you define standard deviation? Also, can you discuss briefly the notations used for i Q: What is the variance of a data set?.... Q: What is unconditional probability? .. ‘0; What is conditional probabbili ‘0: What is the multiplication rube of probability? Q: What is Bayes's theorem?...Q: What is meant by the “skewness” of a distribution? Also, what is positive and negative skewness?.... Q: What are outliers? How do they affect the skewness of a distribution?.... Q; How does skewness affect the location of the mean, med and mode of a distribution? . Q: What is a normal distribution’ Q: What is the kurtosis of a distribution? Also, what are the various types of kurtosis? ...... O: What is a standard normal curve?..... Q: What are some of the other continuous probability disttibutions?.. Q: What is an F distribution? Q: What is a binomial probability distribution?...... M|Chapter 4: Hypothesis Testing OQ: What is a hypothesis? : What is hypothesis testing? O: Why is hypothesis testing necessary? ..... Q: What are the criteria to consider when ela a good hypathesis? .. Q: How is hypothesis testing jevtormeat. 0: What are the various steps of hypothesis testing? Q: What is the role of sample size in analytics? Q: What is standard error? Q: What are null and alternate hypotheses’ Q: Why are null and alternate hypotheses necessarv?....‘Q: What is meant by “level of significance"? Q: What is test statistics?.... 0: What are the ditferent types of errors in hypothesis testing?... ‘Q: What is meant by the statement “A result was said to be statistically significant at the 5% level."? O: What are parametric and non-parametric tests? 0; What differentiates a paired vs, an unpaired test? 0: What is.a chi-square test? ... 0: Whatis a t-test?... 0; What is a one-sample t-test? 0: What is a two-sample t-test? ssc ctsesetecteseteseee ‘0: What is a paired-sample t-test?....... 0; Briefly, what are some issues related to t-tests? lthapter 5; Correlation and Regression. ‘0: What is correlation and what does it do?.. ‘0: When should correlation be used or not used! 0: What is the Pearson product-moment correlation coefficie (0: What is the formula for calculating the correlation coefficient? .......47 ‘0: Briefly, what are the other techniques for calculating correiation?... Spearman Rank-Order Correlation Phi Gosretation... 0: How would you use a graph to illustrate and interpret a correlation coefficient?.....Q: How would you calculate a correlation coefficient in Excel?. O: What is meant by the tenm “linear regression"?... Q: What are the various assumptions that an analyst fakes into account while running a regression analysis? .......... Q: How would you execute regression on Excel’... ™ Q: What is the multiple coefficient of determination or R-squared’ O: What is meant by “heteroscedasticity"? ... Q: How do you differentiate between conditional and unconditional heteroscedasticity?....... i Q:What are the different methods of detecting fiasniosonaate?: O: What are the different methods to correct heteroscedasticity? Q: What is meant by the term “serial correlation"?... ii Q: What are the different methods to detect serial correlation? 0: What are the different methods to correct multicollinearity? OQ: What is an odds ratio?... a OQ: How is linear regression different from logistic regression? .........55 OChapter 6: Segmentation....... O:What are supervised and unsupervised learning algorithms? How are they different from each other? ...........57 Q: Can you give an example to differentiate between supervised and unsupervised learning algorithms? Q: What are some of the Hoeven and i anecetee algorithms? .... 0: How Is sine defined?... Q:What are the two basic types of clustering methods?.......... Atha te teeta abt tale saosssasanssssessecrareneseseaesseeseseserensees OT‘0: What is meant by “exclusive clustering”? ... Q; What is non-exclusive or overlapping clustering? 0: What is the concept behind fuzzy clustering’... ‘0: Can you differentiate between a vaannpia 4S. a partial clustering? ............ Q: What is meant by “k-means clustering”? Q: What is the basic algorithm of k-means clustering, in layperson’s terms?....... ‘Q: What is the proximity measure that you take in k-means clustering? ..... ‘0: What differentiates a k-means from a k-median? When would you use k-median as opposed to k-means? ..... ‘0: What are some of the limitations of the k-means clustering technique?... 0: Given that each iteration of k-means gives us. different results, how would you ensure picking the best results?, 0: What are the two types of hierarchical clustering 0: What is the difference between agglomerative vs. divisive clustering’...... 0: What is a dendrogram’... ‘0: What is the basic algorithm behind the agglomerative clustering technique’... 0: Can you briefly explain some of the proximity measures that are used in hierarchical clustering techniques? 0: What is Ward’s method of defining cluster proximity’ 0; How do you determine the optimal number of clusters fora data set? .... BBQ: What is the business aspect of Sena ‘the optimal cluster solution?. assests Q: Gan you explain, using a case study, the use of clusteri techniques in the retail industry?... Chapter 7: Advanced Statistics and Usage.... Q: What is understood by one-way analysis of variance? 0: Ina nutshell, how does the ANOVA technique work?.. Q: What is the null hypothesis that ANOVA tests’... Q: What is understood by dimension reduction techniques’ 7 Q: What are some commonly used variable reduction techniques?...... 70 Q: Can you provide a brief overview of principal component analysis? ..... Q: Can you provide a brief overview of fact Q: What is factor loading? ..... Q: What is conjoint analysis?.. = Q: What are the three main steps involved in ececng a conjoint analysis?..... Q: What are some of the ways in which an HR Gepatinert can use analytics? ....... 6 Q: What are some of the a specific questions that HR analytics helps to answer? : What, briefly, is employee sentiment analys' Q: What, in detail, is the predictive attrition model?......... Q: How would you create a predictive attrition model? What, briefly, is the statistics part of this modal?...... Q: What would a typical output of a predictive0: How can HR managers use ani promote employee effectiveness? .... se 0: Briefly, what is Net Promoter Score, and how is analytics used with it?... Q: Briefly, how can anion be be used in the hospitality industry? Q: Can you describe a use case of social media analytics. 0: What is understood by text analytics? Q: What typical process would you undertake for text analytics?. Q; What is a word cloud? How is it used? ... ile Q: Briefly, how can analytics be used in the banking industry? ‘0: Can you provide a use case of analytics in the banking industry? 0: Can you provide some key use cases of geospatial analytics? Location Gomparison Based on Populated Area Density. Strategic Location identification ‘Area Growth identification .... Chapter &: Classification Techniques and Analytics Tools............ ‘0: What is understood by “classification"? .. ‘0: Can you name some popular classification methodologies? O: Briefly, what is understood by “logistic regression"? ....... 0: What is understood by “neural network"?... 0: How is neural network different from conventional computin ‘0: Can you give a brief overview of decision trees? ............... ‘0: Can you explain briefly the random forest method of classification? 1B RRREREBQ:What are some of the visualization tools available in the market Q: What are the three v's that define big data’ Q: Can you differentiate between structured, semi-structured, and unstructured data?.... 88 Q: What are some of the tools used for statistical analysis