Week 2: Data-Driven Decisions
Data-Driven Decisions INTRODUCTION
The Google Data Analytics Professional Certificate available on Coursera is a very captivating and wholesome comprehensive course on the essentials of data and analytics as core for decision-making. It provides knowledge of data collection, data visualization, data analysis, and data interpretation. It empowers learners to develop strategies for their organizations.
After taking this course, you will be able to analyze large data sets using appropriate subjects and extract worthwhile insights. Essentially, you shall learn to show your findings mainly through succinct reporting and dashboards for stakeholders. Upon completing the course, you are likely to strengthen your learning in decision-making based on evidence derived from data.
Learning Objectives:
- Define data usefulness in decision-making;
- Contrast data-driven decision making-another with data-inspired decision making;
- Differentiate between the quantitative and qualitative data with examples from the uses;
- Establish the relevance of reporting and dashboard communication to the data analyst, including tools like Tableau and spreadsheet;
- Differentiate between data and metrics, including concrete examples;
- Understand how to apply mathematical approaches to solve problems.
Test Your Knowledge on The Power of Data
1. What is the difference between qualitative and quantitative data?
- Qualitative data can be used to measure qualities and characteristics. Quantitative data can be used to measure numerical facts. (Correct)
- Qualitative data describes the kind of data being analyzed. Quantitative data describes how much data is being analyzed.
- Qualitative data is about the quality of a product or service. Quantitative data is about how much of that product or service is available.
- Qualitative data is specific. Quantitative data is subjective.
Correct: Qualitative data can be used to measure qualities and characteristics. Quantitative data can be used to measure numerical facts.
2. Fill in the blank: Data-inspired decision-making can discover _____ when exploring different data sources.
- if a decision was properly made
- which experts can give advice
- where the largest amount of data is
- what the data has in common (Correct)
Correct: Data-driven decision-making means sifting through different sources of data for common recurring patterns and revealing insights from them.
3. Which of the following examples describes using data to achieve business results? Select all that apply.
- A movie theater tracks the number of weekend movie goers for three months.
- A large retailer performs data analysis on product purchases to create better promotions. (Correct)
- A video streaming service analyzes user preferences to customize movie recommendations. (Correct)
- A grocery chain collects data on sale items and pricing from each store.
Correct: They really open the door to seeing how data can be applied in real businesses. One can see movie recommendations when analyzing specific user preferences, and one can even study product purchases to improve promotions.
4. If someone is subjectively describing their feelings or emotions, it is qualitative data.
- True (Correct)
- False
Correct: An instance is when a person refers to emotions or feelings, which most people consider as qualitative data. Qualitative data involves explanatory subjective quality of in-depth nature about a quality or a characteristic.
Test Your Knowledge on Following the Evidence
1. Fill in the blank: Pivot tables in data processing tools are used to _____ data.
- populate
- validate
- clean
- summarize (Correct)
Correct: Pivot tables are used to summarize data.
2. In data analytics, how are dashboards different from reports?
- Dashboards provide a high-level presentation of historical data. Reports provide a more detailed presentation of live, interactive data.
- Dashboards monitor live, incoming data from multiple datasets and organize the information into one central location. Reports are static collections of data. (Correct)
- Dashboards are used to share updates with stakeholders only periodically. Reports give stakeholders continuous access to data.
- Dashboards contain static data. Reports contain data that is constantly changing.
Correct: Dashboards are usually designed to monitor real-time incoming data from different datasets then unify that information into a single central location. On the other hand, reports are static compiled data records.
3. Describe the difference between data and metrics.
- Data is a collection of facts. Metrics are quantifiable data types used for measurement. (Correct)
- Data can be used for measurement. Metrics cannot be used for measurement.
- Data is quantifiable and used for measurement. Metrics are unorganized collections of facts.
- Data is quantifiable. Metrics are unquantifiable.
Correct: Data are facts, while metrics are quantifiable data points that may be measured.
4. Return on Investment (ROI) uses which of the following metrics in its definition?
- Sales and margin
- Supply and demand
- Profit and investment (Correct)
- Inventory and units
Correct: Return on Investment (ROI) = Profit/Investment.
Test Your Knowledge on Connecting Data Dots
1. Describe the key differences between small data and big data. Select all that apply.
- Small data is effective for analyzing day-to-day decisions. Big data is effective for analyzing more substantial decisions. (Correct)
- Small data involves datasets concerned with a small number of specific metrics. Big data involves datasets that are larger and less specific. (Correct)
- Small data focuses on short, well-defined time periods. Big data focuses on change over a long period of time. (Correct)
- Small data is typically stored in a database. Big data is typically stored in a spreadsheet.
Correct: Little data is limited to few sets of specific metrics, and spans a very short time frame regarding day-to-day decision making. Unlike big data which deals with large generic and time-dependent datasets, propagating the changes over an extended period, big data provides more significant and long-term decisions.
2. Which of the following is an example of small data?
- The trade deficit between two countries over a hundred years
- The total absences of all high school students
- The bed occupancy rate for a hospital for the past decade
- The number of steps someone walks in a day (Correct)
Correct: The number of steps someone walks in a day is an example of small data.
3. The amount of exercise time it takes for a single person to burn a minimum of 400 calories is a problem that requires big data.
- True
- False (Correct)
Correct: This short quantity of time can also be approached with a small amount of data, being based on a single metric (400 kcal) and it corresponds to a restricted interval (the duration of the movement).
Ask Questions to Make Data-Driven Decisions Weekly Challenge 2
1. In data analytics, a pattern is defined as a process or set of rules to be followed for a specific task.
- True
- False (Correct)
Correct: In the field of data analytics, an algorithm is an established process or rules which dictate how to conduct a particular task.
2. In data analytics, quantitative data measures qualities and characteristics.
- True
- False (Correct)
Correct: In data analytics, quantitative data is specific and measures numerical facts.
3. In data analytics, dashboards monitor data that is a continuous source of incoming information. Which of the following terms describes this type of data?
- Comprehensive
- Live (Correct)
- Filtered
- Sorted
Correct: Real-time data are data that are continuously streaming in and updating themselves instantaneously.
4. Fill in the blank: A _____ is a data-summarization tool used to sort, reorganize, group, count, total, or average data.
- dashboard
- pivot table (Correct)
- function
- report
Correct: A pivot table, also known as a data summarization tool, sorts, rearranges, groups, counts, totals, or averages the data for making large data sets more meaningful and manageable.
5. What is an example of using a metric? Select all that apply.
- Using column headers to sort and filter data
- Using a pie chart to visualize data
- Using key performance indicators, such as click-through rates, to measure revenue (Correct)
- Using annual profit targets to set and evaluate goals (Correct)
Correct: Application of metrics as part of measurement and evaluation of business performance includes the use of key performance indicators (KPIs) to track revenue and sale of setting annual profit targets for establishing and assessing goals.
6. Fill in the blank: A _____ goal is measurable and evaluated using single, quantifiable data.
- metric (Correct)
- benchmark
- finite
- conceptual
Correct: A metric target is specific and measurable, evaluated based on a single point of quantifiable evidence.
7. If a data analyst compares the cost of an investment to the net profit of that investment over a period of time, they’re analyzing the investment scope.
- True
- False (Correct)
Correct: A data analyst can perform an analysis on returns on investment if he or she compares the cost of an investment with net profit worked out along a time-line.
8. Describe the main differences between big and small data.
- Small data is specific and concerns a short time period. Big data is less specific and concerns a longer time period. (Correct)
- Small data has been cleaned and sorted. Big data has not yet been cleaned or sorted.
- Small data is less useful to data analysts. Big data is more useful to data analysts.
- Small data is typically stored and organized in databases. Big data is typically stored and organized in spreadsheets.
Correct: Small data is concise, particular, and usually precise for a short time. Large data, however, tends to cover a broad range or not so much specify something and covers, more often than not, a long period of time.
9. Which of the following statements describes an algorithm?
- A tool that enables data analysts to spot something unusual
- A process or set of rules to be followed for a specific task (Correct)
- A method for recognizing the current problem or situation and identifying the options
- A technique for focusing on a single topic or a few closely related ideas
Correct: Algorithm comprises the processes or a series of rules in order to be intended for the following for some completion of specific tasks.
10. In data analytics, reports use live, incoming data from multiple datasets; dashboards use static collections of data.
- True
- False (Correct)
Correct: Dashboards display incoming, live data from different datasets providing real-time information. Reports, on the other hand, comprise static collections of data, which give a snapshot of data as it exists at one point in time.
11. Which data-summarization tool do data analysts use to sort, reorganize, group, count, total, or average data?
- A dashboard
- A function
- A report
- A pivot table (Correct)
Correct: The benefits of using a pivot table to data analysts are to sort, reorganize, group, count, total, or average data enabling effective summarization and analysis of large datasets.
12. A metric is a single, quantifiable type of data that can be used for what task?
- Sorting and filtering data
- Setting and evaluating goals (Correct)
- Defining a problem type
- Cleaning data
Correct: An indication is a precise type of data, in a measurable form, applied for purposes of setting, measuring and evaluating objectives.
13. Fill in the blank: Return on investment compares the cost of an investment to the _____ of that investment.
- future success
- purpose
- timing
- net profit (Correct)
Correct: It is one of the finance tools that help relate the cost of an investment with the net profit generated by that investment to evaluate its effectiveness.
14. A data analyst is using data from a short time period to solve a problem related to someone’s day-to-day decisions. They are most likely working with small data.
- True (Correct)
- False
Correct: A data analyst is most probably using very small data when using data for a short duration to analyze the problem regarding day-by-day decision-making.
15. Fill in the blank: In data analytics, a process or set of rules to be followed for a specific task is _____.
- a domain
- a value
- an algorithm (Correct)
- a pattern
Correct: An algorithm is a process or a set of predetermined rules in data analytics which must be adhered to in order to successfully accomplish a specific task.
16. Fill in the blank: A metric goal is a _____ goal set by a company that is evaluated using metrics.
- conceptual
- measurable (Correct)
- finite
- theoretical
Correct: A metric goal refers to a measurable target by a company, which is eventually evaluated against certain metrics for monitoring progress and performance.
17. Fill in the blank: In data analytics, qualitative data _____. Select all that apply.
- measures numerical facts
- is subjective (Correct)
- is always time bound
- measures qualities and characteristics (Correct)
Correct: A metric goal is a clear and measurable objective of a company that is evaluated in terms of appropriate metrics for evaluating its progress and success.
18. A metric is a specific type of data that companies use to identify a problem domain.
- True
- False (Correct)
Correct: A metric is a particular, measurable datum used to define and assess objectives so that there will be an unambiguous indication of performance or progress.
19. In data analytics, reports use data that doesn’t change once it’s been recorded. Which of the following terms describes this type of data?
- Comprehensive
- Static (CORRECT)
- Real-time
- Monitored
Correct: Static data is data that doesn’t change once it’s been recorded.
20. Fill in the blank: A data analyst is using data to address a large-scale problem. This type of analysis would most likely require _____. Select all that apply.
- data represented by a limited number of metrics
- small data
- data that reflects change over time (CORRECT)
- big data (CORRECT)
Correct: Most probably, a data analyst will require big data that will record changes over time to address a problem at a larger scale.
Correct: In fact, one would probably need big data that changes over time for the data analyst who’s working on a huge problem.
21. A pivot table is a data-summarization tool used in data processing. Which of the following tasks can pivot tables perform? Select all that apply.
- Clean data
- Calculate totals from data (CORRECT)
- Reorganize data (CORRECT)
- Group data (CORRECT)
Pivot tables aid in reorganizing, grouping, and calculating totals out of data.
Pivot tables, if using, will restructure, group, and compute total from data.
Pivot tables reformat, group and summarize numerical data.
22 Fill in the blank: Return on investment compares the _____ of an investment to the net profit gained from that investment.
- Cost (CORRECT)
- timing
- success
- purpose
Correct: The ROI ratio of an investment is its cost relative to the net benefit that it produces.
23. Which of the following options describes a metric goal? Select all that apply.
- Indefinite
- Based on theory
- Evaluated using metrics (CORRECT)
- Measurable (CORRECT)
Metric goals are specific measurements that a company sets up for itself and measures by using metrics.
A metric goal is a quantifiable target that an entity sets for itself evaluation by means of metrics.
24. A data professional at a retail store automates a process to identify their company’s best-selling products. First, a list of all products is compiled. Then, the number of times they have been sold is counted. Finally, the products are sorted, with best-sellers at the top. What does this scenario describe?
- Creating an algorithm (CORRECT)
- Using a formula
- Data-inspired decision-making
- Making a pivot table
Correct!
25. Which of the following statements accurately describe qualitative and quantitative data? Select all that apply.
- The weight of a cruise ship is an example of qualitative data.
- The texture of a wool sweater is an example of quantitative data.
- Qualitative data describes explanatory assessments of qualities. (CORRECT)
- Quantitative data involves specific and objective measures. (CORRECT)
Correct!
26. When working with big data, analysts consider the veracity of the data within large, complex datasets. What does this entail?
- Assessing the amount of data included
- Evaluating the quality and reliability of the data
- Understanding how quickly the data can be processed
- Identifying the different kinds of data available (CORRECT)
Correct!
27. A data professional uses a spreadsheet tool to create a visualization that totals productivity data by organization, department, and employee. What tool are they using?
- Pivot table (CORRECT)
- Format
- Data validation
- Sort
Correct!
28. Company decision-makers at a gas utility want to improve business performance. How could they use metrics and a metric goal to help them do so?
- Establish a metric goal as a single data point. Then, quantify it with metrics.
- Set a metric as the business objective. Then, quantify it using numerous data points.
- Develop a metric. Then, evaluate it to determine whether it advances performance.
- Create a metric goal as the business objective. Then, evaluate it using metrics. (CORRECT)
Correct!
29. Which of the following statements correctly describe dashboards and reports? Select all that apply.
- Reports offer ongoing access to dynamic information.
- An HR dashboard could be used to track employee hours worked daily. (CORRECT)
- A dashboard enables stakeholders to monitor live, incoming data. (CORRECT)
- Reports are useful for data visualization. (CORRECT)
Correct!
30. Fill in the blank: ROI is calculated by comparing the two metrics of _____, enabling a company to determine the success of the investment.
- investment cost and profit (CORRECT)
- value and expenses
- sales and revenue
- gross margin and net margin
Correct!
31. What are some typical challenges that may be faced by businesses that are beginning to collect and use big data? Select all that apply.
- Cannot help large organizations spot trends
- Less efficient decision-making time frames (CORRECT)
- Difficulty finding important data (CORRECT)
- There may be gaps in big data business tools (CORRECT)
Correct!
32. A data analyst at a staffing agency automates a process to schedule temporary employees. First, a list of all employees is compiled. Then, they are sorted by availability, area of expertise, and past performance ratings. Finally, employees for each open position are listed. What does this scenario describe?
- Making a pivot table
- Data-inspired decision-making
- Using a formula
- Creating an algorithm (CORRECT)
Correct!
33. A data team uses a spreadsheet tool to create a visualization that summarizes financial data by region, facility, and time period. What tool are they using?
- Format
- Sort
- Data validation
- Pivot table (CORRECT)
Correct!
34. Company leaders at a cafeteria supplier want to improve business performance. How could they use metrics and a metric goal to help them do so?
- Develop a metric. Then, evaluate it to determine whether it advances performance.
- Establish a metric goal as a single data point. Then, quantify it with metrics.
- Set a metric as the business objective. Then, quantify it using numerous data points.
- Create a metric goal as the business objective. Then, evaluate it using metrics. (CORRECT)
Correct!
35. Which of the following statements correctly describe dashboards and reports? Select all that apply.
- Reports provide continual access to information.
- A sales dashboard could be used to track daily e-commerce sales. (CORRECT)
- Dashboards are useful for data visualization. (CORRECT)
- A report is a static collection of data given to stakeholders periodically. (CORRECT)
Correct!
36. What are some typical challenges that may be faced by businesses that are beginning to collect and use big data? Select all that apply.
- Format
- Pivot table (CORRECT)
- Data validation
- Sort
Correct!
36. A junior data analyst uses a spreadsheet tool to create a visualization that groups and counts shipping data by carrier, route, and trip length. What tool are they using?
- Operational (CORRECT)
- Technical (CORRECT)
- Managerial (CORRECT)
- Regulatory
You might say there are three categories that generalize all security types: technical, operational, and managerial controls. They’re all critical components needed in order for the company to have adequate information privacy.
37. Fill in the blank: A company determines the _____ of an investment using ROI, which is calculated by comparing the two metrics of investment cost and profit.
- expense
- difficulty
- urgency
- success (CORRECT)
Correct!
38. Fill in the blank: A company determines the success of an investment using _____, which is calculated by comparing the two metrics of investment cost and profit.
- reasoning on investment
- retention of investment
- rating of investment
- return on investment (CORRECT)
Correct!
39. What are some typical challenges that may be faced by businesses that are beginning to collect and use big data? Select all that apply.
- Cannot help large organizations spot trends
- Less efficient decision-making time frames (CORRECT)
- There may be gaps in big data business tools (CORRECT)
- Difficulty finding important data (CORRECT)
Correct!
40. What is the relationship between a metric and a metric goal?
- A metric goal is a business objective that is evaluated using metrics.
- A metric is a goal that is set and evaluated by a business. (CORRECT)
- A metric goal is a single data point that is quantified with metrics.
- A metric is a business goal that is evaluated using numerous data points.
Correct!
Data-Driven Decisions CONCLUSION
It’s very important in today’s business environment to understand data and how it shapes analytical decisions. It is through the different types of data as well as their roles in informing business choices that the course “Data-Driven Decision Making” offered at Coursera will show you. You will also acquire practical skills applicable to your career such as communicating data into reports and dashboards. Join now to this learning journey!