Introduction to Accounting Data Analytics and Visualization Quiz Answers

Get All Weeks Introduction to Accounting Data Analytics and Visualization Quiz Answers

Accounting has always been about analytical thinking. From the earliest days of the profession, Luca Pacioli emphasized the importance of math and order for analyzing business transactions. The skillset that accountants have needed to perform math and to keep order has evolved from pencil and paper to typewriters and calculators, then to spreadsheets and accounting software.

A new skill set that is becoming more important for nearly every aspect of the business is that of big data analytics: analyzing large amounts of data to find actionable insights. This course is designed to help accounting students develop an analytical mindset and prepare them to use data analytic programming languages like Python and R.

Enroll on Coursera

Week 01: Introduction to Accounting Data Analytics and Visualization Quiz Answers

Lesson 1.1 Knowledge Check

Which of the following statements describes modifications to Pacioli’s three critical skills for merchants? (Select all that apply.)

  • The role of cryptocurrency in accounting starts to become important to understand.
  • The importance of cash and credit in accounting is replaced by bookkeeping.
  • Mathematics are more important than before and are especially important for forecasting future events and trends.
  • Keep financial and non-financial data in order.

Which of the following statements is a reason why people rely too much on data? (Select all that apply.)

  • People invest lots of efforts to collect data.
  • People overestimate the power of data.
  • Managers in large organizations don’t have time to stay in front lines.
  • People have the ability to access more data than they need. 

Which of the following statements describes how financial accountants can shape how data is used? (Select all that apply.)

  • Financial accountants can influence external parties to use data to make investments by capturing the important assumptions under financial statements and summarizing individual transactions to a brief historical snapshot.
  • Financial accountants can prevent the overuse of data by helping to provide insight in the management discussion section of annual reports.
  • Financial accountants can provide guidance on the hardware and software that’s used for tracking accounting information.
  • Financial accountants can encourage the use of relevant data by reporting costs internally in a way to make it more helpful than if it were reported for external purposes.

Which of the following types of accounting will closely analyze the evidence to judge whether firms’ financial statements are accurate?

  • Tax accounting
  • Auditing accounting
  • Financial accounting
  • Managerial accounting

Lesson 1.2 Knowledge Check

Which of the following types of accounting is mainly responsible for keeping costs under control?

  • Audit accounting
  • Tax accounting
  • Managerial accounting 
  • Financial accounting

Which of the following statements represents examples of how financial accountants may improve their efficiency with the use of advanced data analytics skills? (Select all that apply.)

  • By analyzing market basket size, customer’s purchase of products and weather patterns, financial accountants may improve their estimation of bad debts.
  • Financial accountants can evaluate their companies’ performance by analyzing and comparing their companies’ financial statements relative to other companies in the same industry.
  • With the understanding of XBRL, financial accountants can better organize and gather data to communicate relative performance for investors, creditors, and regulators.
  • With the use of Excel, financial accountants can efficiently evaluate all transactions.

The decisions of systems accountants can influence which of the following things? (Select all that apply.)

  • The extent to which data is recorded
  • The accuracy of data
  • The extent to which data is protected
  • The availability of data

Introduction to Accountancy Analytics: Quiz

Which of the following principles that Pacioli proposed is linked to forecasting future trends and events?

  • Cash is most important, and when not present, merchants use credit.
  • Merchants should be good at mathematics.
  • Merchants should be good keepers.
  • All of above

Organizational architecture will affect people using data in which of following ways? (Select all that apply.)

  • In large organizations where people work independently, people may not use data because they fail to recognize the existence of data.
  • In small organizations where people work independently, people are less likely to use data because they fail to recognize the existence of data.
  • In large organizations, people may over-rely on data because the managers are removed from front lines.
  • In large organizations, people are more careful in using data and therefore will not over-rely on or neglect data.

Which of the following subdomains in accounting is more likely to be responsible for summarizing accounting transactions during a period of time for users external to an organization?

  • Tax accounting
  • Audit accounting
  • Financial accounting
  • Managerial accounting

Which of the following statements does the IRS report on its website? (Select all that apply.)

  • The IRS reports the number and types of audits.
  • The IRS maintains a public database on the Statistics of Income in which they report statistical tables from millions of tax returns.
  • The IRS reports the percentage of audits that resulted in no change and additional recommended tax per return.
  • The IRS reports the performance of internal auditors.

Which of the following statements about the influence of managerial accounting is TRUE? (Select all that apply.)

  • Managerial accounting focuses on how historical cost information can be used to forecast future costs.
  • Managerial accounting focuses on how external parties can use data to make investment decisions.
  • Managerial accountants can use cost information to minimize the cost of production given multiple constrained resources.
  • Managerial accountants take thE lead role in identifying errors in the financial statements, and then working with managers to correct those errors.

How can big data and advanced analytics help with activity-based costing?

  • By helping to estimate the future financial performance of companies based on their current cost data.
  • By organizing costs into costs pools and finding activities for allocating costs in those pools.
  • By helping auditors compare the costs with allocated activities to determine if any discrepancies exist.
  • By helping auditors evaluate the existence of companies’ financial activities by analyzing their related costs.

In the US, only large public companies are required to file annual reports to the Securities and Exchange Commission.

  • True
  • False

Which of the following statements about business reporting language under XBRL is CORRECT? (Select all that apply.)

  • Under XBRL, cost of goods sold is tagged as us-gaap: CostOfGoodsSold.
  • Under XBRL, cost of goods sold is tagged as gaap: TheCostOfGoodsSold.
  • Under XBRL, net income is tagged as us-gaap: NetIncomeLoss.
  • Under XBRL, net income is tagged as us-gaap: NetIncomeGain.

Which of the following statements about tax accountants is TRUE? (Select all that apply.)

  • Tax accountants only focus on preparing tax returns.
  • Tax accountants may benefit from census data, which reports information by zip code.
  • The area deprivation index may provide insightful information to tax accountants.
  • Tax accountants are not responsible for reducing the likelihood of companies being audited by the IRS.

Which of following statements about the internet of things is TRUE?

  • The internet of things refers to the ability for technology to be embedded and connected via the internet.
  • The internet of things is not likely to be useful to systems accountants because it cannot provide direct financial information.
  • The internet of things refers to the ability of using the internet to collect useful financial information about companies.
  • Both A and B

Week 02: Introduction to Accounting Data Analytics and Visualization Quiz Answers

Lesson 2.1 Knowledge Check

Data analytics can shape people’s lives in which of following ways?

  • People are able to receive real time traffic information to avoid traffic jams.
  • People have access to their health conditions with watches or smartphones.
  • Companies will better understand the changes in customers’ preferences.
  • All of the above

In making decisions, the tendency to think that the likelihood something will occur is based on how easily it comes to mind refers to which type of bias?

  • Anchoring bias
  • Confirmation bias
  • Availability bias
  • Information bias

Which of the following statements is TRUE?

  • The more information we have on hand, the better decisions we will make.
  • Anchoring bias may occur when people rely too much on irrelevant numbers to make decisions.
  • Availability bias takes place when looking at the pattern of stock price over time; our estimation of the variability of stock price is lower than the actual amount.
  • The situation that people only seek information to support what they trust refers to information bias.

Lesson 2.2 Knowledge Check

Which of the following statements is TRUE? (Select all that apply.)

  • If the control risk is low, then all else equal, more effort will be needed to gather evidence than if the control risk is high.
  • The inherent risk is the risk of a misstatement occurring for any reason.
  • The higher inherent risk or control risk, the more time auditors will spend to make sure no material misstatements exist.
  • Control risk refers to the risk of a material misstatement occurring as a result of insufficient controls or failure to uphold the controls.

Which of the following statements about deductive and inductive reasoning is TRUE?

  • Deductive reasoning is usually used in estimating bad debt expenses.
  • Data can fully prove a premise.
  • Using deductive reasoning to evaluate an inference, we usually assume the premises are true.
  • Deductive reasoning is a bottom-up approach.

When presenting the results of data analytics to an audience, it’s better to include as much information as possible so the audience can fully appreciate our mindset.

  • True
  • False

Lesson 2.3 Knowledge Check

Which of the following statements about assembling data is TRUE?

  • The first and most important step in the FACT framework is to assemble the data.
  • Preparing data for analysis is a fairly linear, straightforward process.
  • Assembling data is critical for it directly impacts how questions are solved.
  • B and C

What is a common practice we should perform when evaluating model accuracy?

  • Identify the speed of the algorithm that was used to create the model. There’s typically a one-to-one relationship between algorithm speed and model accuracy: the algorithm that created the model the fastest is typically the most accurate.
  • Rely on the real-time classification parameter (RCP), which is the standard metric used to evaluate model accuracy.
  • We should break the data into at least three datasets, a pre-training dataset, a training dataset, and a test dataset. Then use the pre-train dataset to select an algorithm, the training dataset to create a model, and the test dataset to evaluate the accuracy of the model.
  • We should break the data into at least two datasets, a training dataset and a test dataset. The training dataset is used to create the model, and the test dataset is used to evaluate the accuracy of the model.

Which of following things should you be careful of when presenting results to an audience? (Select all that apply.)

  • You should use technical terms whether the audience is familiar with the terms or not.
  • You should not persuade your audience that the results are important but let them make their own decisions.
  • You should persuade your audience that the results are important.
  • You don’t have to pay attention to every detail of data analytics because it will confuse your audience.

Accounting Analysis and an Analytics Mindset: Quiz

Which of the following statements is TRUE?

  • Heuristics refers to the thinking pattern that is careful and does not rely on cognitive shortcuts.
  • The system 2 mentioned in the book Thinking Fast and Slow is slow, effortful, and analytical.
  • Information bias assumes that people fail to pay attention to information and therefore make wrong decisions.
  • Confirmation bias assumes that people only believe what they believe and do not have critical thinking.

Which of the following risks may take place if the accounting staff’s training is insufficient and complex transactions exist.

  • Audit risk
  • Detection risk
  • Control risk
  • Inherent risk

Which of the following statements about risks that may take place in accounting is TRUE?

  • The detection risk is independent from control risk and inherent risk.
  • Control risk refers to the risk of a material misstatement occurring for reasons other than insufficient controls or failure to uphold the controls.
  • The detection risk is the risk that a material misstatement will not be discovered by the audit procedures.
  • A and C

If we know what assets and liabilities are, then we can infer the value of owners’ equity with the use of inductive reasoning.

  • True
  • False

What’s a difference between deductive reasoning and inductive reasoning?

  • Inductive reasoning is a top-down approach, while deductive reasoning is a bottom-up approach.
  • Inductive reasoning assumes that the premises are true.
  • Inductive reasoning uses observations to create general rules.
  • Deductive reasoning is a bottom-up approach.

Which of the following statements about assembling data is TRUE? (Select all that apply.)

  • Assembling data is the second step of the FACT framework.
  • In assembling data, we should only focus on the data that has a direct relationship with our problems.
  • Creating a survey is not a good choice for gathering data.
  • When the questions are important enough, it may be worth gathering our own data instead of relying on others’ datasets. 

What is the most commonly known data repository?

  • Object database
  • Relational database
  • Operational database
  • Distributed database

Which of the following things about advanced analytic techniques is TRUE?

  • With advanced analytic techniques, we are able to consider many factors at once.
  • Ensembling takes place when we use only one analytic algorithm to create model.
  • Advanced analytic techniques can identify complex relationships, but it can’t quantify the impact.
  • Both A and C 

When presenting the results to an audience, we should not focus on listening to their comments and questions so that we can persuade them that our results are important.

  • True
  • False

What should we know in order to effectively start framing a question?

  • What information is available to use
  • How long are we going to spend on framing questions?
  • What do we know about our audience?
  • What kind of tools are we going to use?

Week 03: Introduction to Accounting Data Analytics and Visualization Quiz Answers

Lesson 3.2 Knowledge Check

For data to be relevant, it must possess which of the following characteristics? (Select all that apply.)

  • It should be related to the questions.
  • It should be accessible.
  • It should be timely.
  • It should have variation.
  • It should be accurate.
  • It should be the right level of granularity.

Which of the following statements about the SQL and NoSQL structures is TRUE?

  • A document storage database is an example of a SQL structure.
  • A SQL structured database refers to relational database.
  • XBRL is a type of SQL structured data.
  • NoSQL structures optimize data for reasons like reducing storage space.

What must a tidy data frame have? (Select all that apply.)

  • Each column is an observation, and each row is a feature of the observation.
  • Each row is an observation, and each column is a feature of the observation.
  • Title case column labels that include spaces and punctuation so that the purpose of the data is easily remembered.
  • Consistent data types and patterns within columns.

Data dictionaries should have a list of each column name, but it should not include an example of what the data looks like.

  • True
  • False

Lesson 3.4 Knowledge Check

Which of the following statements about the shape of a dataframe is TRUE? (Select all that apply.)

  • A wide dataframe has a lot of rows and few columns.
  • A wide dataframe is usually the most efficient way to store data.
  • A long dataframe is usually used for machine learning and regression analysis.
  • A long dataframe is useful for data visualizations.

Which of the following statements about left joins is TRUE?

  • We cannot use left joins in Excel with VLOOKUP function.
  • Left joins can help us combine data by adding more rows.
  • We can still use left joins to add in rows if the items do not exist in the data frame.
  • When using left joins, the values of the join column have to be exactly the same.

What should we do if we want to perform repetitive tasks?

  • Use VLOOKUP.
  • Use hired help.
  • Train our computer to do it.
  • None of above

Data and Its Properties: Quiz

Which of the following statements is NOT an important feature of relevant data? (Select all that apply.) 

  • Related to the question
  • Has variation
  • Must be easy to access 
  • Must be completed
  • Updated

The following image depicts which type of database?

  • Graph database
  • Document store database 
  • Key-valued database
  • SQL structured database

XBRL uses non-standardized tags and we can create our own tags if a tag doesn’t exist to accurately describe information.

  • True
  • False

Which of the following statements is TRUE about a tidy data-frame?

  • Missing data should not exist.
  • Data type and patterns should be consistent within columns.
  • Rows and columns are not required to have indices or labels.
  • All of above

When I enter 09831 in Excel and want to display the leading zero, what should I do in order to make sure that Excel does not automatically remove the zero?

  • Use split-apply-join method.
  • Add “$” before zero. 
  • Use DATEVALUE function.
  • Add a ` in front of the number.

Which of the following statements is TRUE about data dictionaries?

  • They are not strongly recommended because column names are typically descriptive enough.
  • They are typically hard to find because they’re not used very often.
  • Data dictionaries are usually found in the last column of data.
  • A read me file, like ReadMe.txt, is a type of data dictionary.

Long data-frames are more efficient to store data, whereas wide data-frames are more useful for visualization.

  • True
  • False

Which of the following statements is TRUE about merging data? 

  • A left join means that we are going to add new rows from the data-frames on the left.
  • In using VLOOKUP to do a left join, the index value has to be in the first column of the table.
  • The values we are going to join on do not have to be exactly the same.
  • One of the limitations of VLOOKUP is that the join column has to be sorted in reverse alphabetical order.

Which of the following statements is TRUE about summary statistics?

  • Summary statistics are qualitative values to describe a data distribution.
  • Summary statistics are also known as descriptive statistics.
  • Summary statistics cannot show the existence of outliers.
  • Both A and B

The following graph displays violin plots.

  • True
  • False

Week 04: Introduction to Accounting Data Analytics and Visualization Quiz Answers

Lesson 4.1 Knowledge Check

Which of the following statements is TRUE about data visualization? (Select all that apply.)

  • It’s better for us to use as many colors as we can in data visualization.
  • Using data visualization, we should consider what our audience is expecting.
  • We should include as many elements as we can in data visualization. 
  • We should try to exclude distractions in data visualization.

Which of the following shapes is usually used to communicate connection?

  • Rectangle
  • Straight line
  • Circle
  • Dot plots

Which of the following statements is TRUE about building blocks in realizing data visualization?

  • The more shapes we use, the better we can deliver information.
  • It is not required to order the elements of our data visualization in a meaningful way. 
  • In order to let the audience better understand the information, we should always use large-sized shapes in data visualization.
  • None of above

Lesson 4.2 Knowledge Check

Which of the following statements describes a strength of scatter plots? (Select all that apply.)

  • Scatter plots can effectively show areas where a lot of overlapping points exist.
  • Scatter plots can clearly show the linear relationship of the data.
  • Scatter plots can effectively show the outliers.
  • Scatter plots can display the variation within data. 

Which of the following statements is TRUE about bar charts?

  • A bar chart is good at communicating relative comparisons and distributions among data.
  • A bar chart is good at showing the frequency with which values are distributed across a range.
  • A histogram is not a type of bar chart.
  • Both A and B

Box plots are efficient in displaying changes in values over time.

  • True
  • False

Lesson 4.3 Knowledge Check

Which of the following built-in Excel charts cannot correctly show a summary of negative values.

  • Bar chart
  • Waterfall chart
  • Candlestick chart
  • None of the above

Which of the following charts is good at communicating intraday and interday patterns in stock market prices?

  • Bar chart
  • Waterfall chart
  • Candlestick chart
  • Treemaps

What is one way to deal with a negative numbers when creating treemaps? 

  • Leave it as it is.
  • Take it and subtract it from any a summary line item.
  • Turn it to a positive number.
  • All of the above

Data Visualization 1: Quiz

Which of the followings statements is NOT an important visual perception principle that can be applied to data visualization? (Select all that apply.)

  • People have unlimited working memory.
  • People prefer to focus on things that stand out. 
  • People recognize familiar patterns.
  • People are curious about new things.

Which of the following statements is TRUE about shapes in data visualization?

  • Straight lines are often used to communicate relevant values.
  • Rectangles are often used to communicate connection.
  • Circles are often used to represent total amount.
  • Rectangles are often used to represent total amount.

Which of the following charts cannot effectively show areas where there are a lot of overlapping points?

  • Bar chart
  • Scatter plots
  • Waterfall chart
  • Pie chart

Which of the following charts is good at quickly communicating relative comparisons and distributions?

  • Bar chart
  • Scatter plots
  • Waterfall chart
  • Pie chart

Which of the following statements is TRUE about box plots?

  • A box plot is not good at showing outliers. 
  • A box plot is different from a box and whisker plot.
  • The 75th percentile is represented by the top value of the box.
  • The 25th percentile is represented by the top value of the box.

Which of the following charts are exclusively used in financial and accounting areas? (Select all that apply.)

  • Waterfall charts
  • Histogram
  • Candlestick charts
  • Bar Charts

Back

Which of the following statements is TRUE about waterfall charts? (Select all that apply.)

  • The bottom of the bar may not start at zero.
  • They are not simply the same as bar charts.
  • Excel’s built-in waterfall charts can correctly show negative summary values.
  • Excel’s built-in waterfall charts can’t correctly show negative values.

Why is a candlestick chart better than a line chart in connecting stock values over time?

  • A candlestick chart is easier to create than a line chart.
  • A candlestick chart is easier to read than a line chart.
  • A candlestick chart can show the range of prices during the day.
  • A candlestick chart can highlight the outliers.

Which of the following graphs is particularly useful for hierarchical or nested data?

  • Pie charts
  • Scatter plots
  • Treemap
  • Histograms

Which of the following statement is TRUE about using sparklines to present multiple plots? 

  • Sparklines work well when they are embedded in a table.
  • Sparklines require data to be set up in a unique way.
  • Sparklines can have independent scales.
  • Both A and C

Week 05: Introduction to Accounting Data Analytics and Visualization Quiz Answers

Lesson 5.2 Knowledge Check

Which of the following statements is TRUE about Tableau?

  • Tableau can automatically convert original column names to a more presentable format in the Field Name.
  • Tableau cannot show the column names using the original name from the data source.
  • Tableau cannot connect to server like SQL database.
  • All of the above

Which of the following statements about dimensions is TRUE?

  • Dimensions are numeric value.
  • String is a type of dimension.
  • A column of sales revenue would be considered a dimension.
  • Both A and C

What should we do when the data point in Tableau is outside the range?

  • Remove the outlier point.
  • Leave it as it is.
  • Select automatic option in the range section.
  • Adjust the original data.

What should we do in Tableau if we want one measure to be along the x-axis?

  • Drag the measure to the filter box.
  • Create a new worksheet.
  • Drag the measure to columns shelf.
  • Drag the measure to rows shelf.

Lesson 5.4 Knowledge Check

A faceted chart is a useful alternative to a multiline chart that has lots of overlapping lines.

  • True
  • False

In combining multiple datasets, if we want to keep the selected data and only bring in new data that matches on the fields that are in the selected, what type of join method(s) should we choose?

  • Right join
  • Left join
  • Outer join
  • Both A and B

Which of the following statements is TRUE about the forecast tool in Tableau?

  • The forecast tool looks at any of the underlying causes of historical changes.
  • The forecast tool uses historical trends in time series data to forecast the future.
  • To use the forecast tool, we can click on the Analytics tab and then drag the forecast icon onto the chart.
  • Both B and C

Which of the following tools in Tableau enables you to combine a variety of charts into one place?

  • Dashboard
  • Analysis
  • Worksheet
  • Format

Data Visualization 2: Quiz

Which of the following statements is TRUE about dataframes in Tableau?

  • The hashtag symbol is for qualitative values.
  • Tableau can show us the range of all data, not just the visible data.
  • Tableau does not indicate where the table is from.
  • Tableau cannot perform calculations.

Which of the following statements is TRUE about dimensions and measures?

  • Measures are qualitative values.
  • Dimensions are quantitative values.
  • Dates and strings belong to dimensions. 
  • A column of net income values would be classified in Tableau as a dimension.

What is TRUE about Tableau?

  • We can add observations to a scatter plot by clicking on the Pages box.
  • The range of the axes in Tableau scatter plots is automatically set and cannot be changed.
  • The Analytics tab in Tableau enables us to create an average line for charts.
  • Tableau cannot show the range of all data.

Which of the following charts can group the observations for a measure into bins and then shows the frequency with which observations occur?

  • Scatter plot
  • Waterfall chart
  • Line chart

Histogram

In Tableau, what should we do if we want to create a separate box plot for each level of a dimension?

  • Drag the dimension to the Marks box.
  • Drag the dimension into the Detail area.
  • Copy and paste the original box plot for each level of the dimension.
  • Move the dimension to the Columns shelf.

In which setting is a left join appropriate to combine datasets together?

  • When we want to remove some of the observations in the selected data.
  • When we want to bring in new data that does not match any existing data.
  • When we want to bring in data that exists in both the existing and new tables.
  • When we want to keep the selected data and only bring in new data that matches on the fields that are in the selected data.

The forecast tool in Tableau looks at any underlying causes of historical changes and then forecasts when those events will occur in the future.

  • True
  • False

In Tableau, we cannot set the number of clusters we want to group.

  • True
  • False

Which of the following statements is TRUE about dashboards in Tableau? (Select all that apply.) 

  • Dashboards only allow us to use text as a filter.
  • If we created a chart with a filter, we can remove that filter in a dashboard.
  • Tableau workbook is the only format for saving dashboards that we created.
  • We can position the charts in a dashboard at any place we want.

We can specify how long we want the forecast to be in the Tableau forecast option. 

  • True
  • False

Week 06: Introduction to Accounting Data Analytics and Visualization Quiz Answers

Lesson 6.1 Knowledge Check

Which of the following statements is NOT a reason why forecasting sales is important in doing business?

  • To make sure we have the correct amount of inventory.
  • To prevent employees from slacking.
  • The make sure that employees aren’t performing non-value added work.
  • To make sure that there’s an adequate number of employees working on a given day.

Which of the following statements is TRUE about dealing with data related to time? (Select all that apply.)

  • There is no need to aggregate data from all sources.
  • It is important to know how the date and times are represented in data.
  • A correlation matrix can help us aggregate all the data into one year.
  • A pivot table can help us aggregate all the data into one day.

If the mean is greater than the median for a column of data, then it suggests that extremely small values exist in the data.

  • True
  • False

Lesson 6.2 Knowledge Check

Which of the following statements is the CORRECT way to determine if the linear model you created for forecasting is effective?

  • Whether the slope is steep enough.
  • Whether we are able to make more precise predictions with the model than with the overall average.
  • Whether we can explain a lot of the variation.
  • Both B and C

R-squared is the percentage of variation NOT explained by the regression line.

  • True
  • False

Which of the following statements is TRUE about Significance F in the ANOVA table.

  • Significance F determines whether the model does a good job in predicting values.
  • If the significance F is less than 0.05, then we can conclude that the model does not do a better job of explaining variation relative to the mean.
  • If the significance F is greater than 0.05, then we can conclude that the model does not do a better job of explaining variation relative to the mean. 
  • Both A and C

Lesson 6.4 Knowledge Check

Which of the following statements is TRUE about simple and multiple regression? (Select all that apply.)

  • Simple regression is when a single dependent variable is regressed on the independent variable.
  • Simple regression is when a single independent variable is regressed on the dependent variable.
  • Multiple regression is when multiple dependent variables are regressed on the independent variable.
  • Multiple regression is when multiple independent variables are regressed on the dependent variable.

Residuals are the difference between the predicted value of the independent variable and the actual value of the dependent variable.

  • True
  • False

Which of the following statements is TRUE about adjusted R-squared?

  • The adjusted R-squared imposes a penalty for each dependent variable that is added.
  • When performing simple regression, the adjusted R-squared is always preferred to R-squared.
  • When performing multiple regression, the adjusted R-squared is always preferred to R-squared.
  • Both A and C

Analytic Tools in Excel 1: Quiz

Which of the following problems can be prevented by forecasting sales? (Select all that apply.)

  • Employees are not satisfied with their salaries.
  • Managers find they have too many employees scheduled to work.
  • The inventory is not qualified to sell to customers.
  • There’s not enough inventory to satisfy customers’ needs.

Why is aggregating data important in dealing with datasets related to time?

  • To make sure all of the datasets are reported at the same level.
  • To see if data is outdated.
  • To determine if data is eligible for analysis.
  • To prevent computer viruses.

Which of the following statement is TRUE about descriptive statistics? (Select all that apply.)

  • When the distribution is skewed to the right it means that the distribution has a thicker tail on the right side.
  • The range of the data is calculated by the maximum minus minimum.
  • If the mean is greater than the median, there may exist some extremely small values.
  • The count tells us how many observations are in the data.

The values of correlation always range from –1 to 1.

True

False

Which of the following statements is TRUE about correlation?

  • When the correlation is low, the points are tightly clustered to each other.
  • There is a curvilinear slope if correlation is high.
  • If the correlation is low, there is a linear slope.
  • If the points are positively correlated, then they move in the same direction.

Which of the following statement is TRUE about regression output?

  • The lower the R-squared, the better the regression line explains the variation in the dependent variable.
  • The R-squared refers to the percentage of variation that is not explained by the regression line.
  • The regression algorithm always creates a line that minimizes the distance between all the points and the line.
  • R-squared cannot be used as a measurement to determine the effectiveness of a regression line.

Which of the following statements is NOT TRUE about regression results? (Select all that apply)

  • The t Stat is calculated by the coefficient divided by standard error.
  • The p-value tells us the amount of variation in the coefficient estimate.
  • A p-value less than 0.05 means the coefficient is not significantly different from zero. 
  • The t Stat tells us the likelihood that the coefficient is different from the intercept.

Multiple regression is a powerful tool that reports the common effect of coefficients.

  • True
  • False

Which of the following statements is NOT true about residuals?

  • The residuals are the difference between the actual value  and the predicted value of the dependent variable.
  • Residuals can help to identify whether assumptions about regression have been met.
  • Residuals cannot help us identify ways to fine-tune the model.
  • Residuals can identify observations that are not predicted well. 

Which of the following things should we consider when performing a regression analysis for forecasting future sales?

  • We should consider if there are any other factors that may affect prediction.
  • If the levels of the independent variables are not known, or are controllable, then the independent variables can probably be used to make a forecast if necessary.
  • We should consider only using variables that are highly correlated with each other.
  • Both B and C

Week 07: Introduction to Accounting Data Analytics and Visualization Quiz Answers

Lesson 7.1 Knowledge Check

Why should we consider adding in an additional term to the regression function once we see a curvilinear relationship between an independent variable and dependent variable?

  • To prevent overfitting when making predictions
  • To allow the regression algorithm freedom to fit parameters to the curve
  • To detect if there any outliers exist
  • To make sure we cover all the independent variables in regression

Which of the following variables is NOT a categorical variable?

  • Color
  • Gender
  • Preference
  • Age

Which of the following statements about regression is TRUE?

  • A nominal variable is different from a categorical variable.
  • Regression does not require that all of the data be encoded as numeric values.
  • The interaction effect will make regression analysis easier because we can better figure out the relationship between independent and dependent variables.
  • None of the above

Lesson 7.3 Knowledge Check

What does the slack column in the Excel solver function tell us?

  • The deviation of expected value
  • How close the final value is to the constraint
  • The possibility of getting correct final value
  • How close the final value is to the actual value

What does it suggest if the levels for each of the variables in a complex linear model are binding when using the Solver to maximize a function?

  • If we relaxed the boundaries, then we could get a higher maximum value.
  • If we relaxed the boundaries, then we could get a lower maximum value.
  • If we relaxed the boundaries, then we could get a higher minimum value.
  • If we relaxed the boundaries, then we could get a lower minimum value.

Which of the following statements is TRUE about logistic regression? (Select all that apply.)

  • It means that the independent variable has been transformed by taking the log of the odds ratio.
  • Logistic regression is useful for modeling non-binary outcomes.
  • Logistic regression is useful for modeling binary outcomes.
  • It means that the dependent variable has been transformed by taking the log of the odds ratio.

A simple, powerful way to evaluate the accuracy of a logistic regression model is the number of observations we are able to predict.

  • True
  • False

Analytic Tools in Excel 2: Quiz

Which of the following statements is TRUE?

  • The inverted U relationship between price and revenue will take place when the decrease in demands outweighs the increase in price.
  • The quickest way to add a squared term to the regression model is to use the trendline option for histograms.
  • The quickest way to add a squared term to the regression model is to use the solver analysis for scatter plots.
  • The U shape relationship in regression is not the result of polynomial function.

Which of the following statements is TRUE about categorical variables?

  • Categorical variables are also known as qualitative variables.
  • Color is not a type of categorical variable.
  • Categorical variables do not have to be encoded as numeric values in regression analysis.
  • Categorical variables are the same as numeric variables.

Which of the following statements is TRUE about nominal and ordinal variables?

  • Nominal variables are totally different from categorical variables.
  • Nominal variables are categorical variables that are naturally rank ordered.
  • Ordinal variables have meaningful orders.
  • Both nominal and ordinal variables have meaningful orders. 

In performing regression analysis, what should you do when you encounter a nominal variable that doesn’t have natural rank order?

  • Find another dataset.
  • Convert the labels to one or more variable columns whose value can only be 0 or 1.
  • Change the nominal variable to a categorical variable.
  • Create one or more ordinal variables.

What should we do if we find that a coefficient in multiple regression is insignificant?

  • We should use another dataset to perform regression analysis.
  • We should keep it in our regression model to make sure that it completely explains the dependent variable.
  • We should delete it from our regression model to preserve simplicity.
  • Evaluate the R-squared value. If R-squared is higher with that variable, then we should keep the variable in the model.

Which of the following statements about probability and odds are true? (Select all that apply.)

  • Probability cannot convert to odds.
  • Probability can be negative. 
  • The reference point of odds is the probability of an event happening relative to the probability of alternative events happening.
  • Odds cannot be negative.

For regression with categorical dependent variable, the dependent variable is coded as an indicator variable.

  • True
  • False

We may consider using logistic regression under which of the following situations? 

  • There is a non-linear relationship between dependent and independent variables. 
  • The dependent variable is binary.
  • When there are outliers, high skewness exists in the data. 
  • There is autocorrelation.

In logistic regression, why might using the percentage of observations accurately predicted be better than using R-squared to evaluate model performance? (Select all that apply.)

  • Easy to communicate
  • It can prevent overfitting
  • Because R square is not stable
  • The R square does not depend on the type of algorithm

An efficient way to evaluate the accuracy of a logistic regression model is the number of observations accurately predicted.

  • True
  • False

Week 08: Introduction to Accounting Data Analytics and Visualization Quiz Answers

Lesson 8.1 Knowledge Check

Which of the following is the first step of recording a macro?

  • The first step of recording a macro is to write down the code.
  • The first step of recording a macro is to create a shortcut.
  • The first step of recording a macro is to make sure the Developer tab is enabled. 
  • None of the above

Which of the following statements is true about the IDE (integrated development environment) that is included with Excel? (Select all that apply.)

  • Excel’s IDE is called Visual Basic Editor it’s not included with Excel. We should install it ourselves.
  • Excel’s IDE is called Visual Basic Editor, and it’s included with Excel.
  • The code window in Excel’s IDE is where we see the code that’s generated when the macro is recorded.
  • The project window in Excel’s IDE tells us what projects we can open.

Every time we create our own visual basic code in Excel, it starts with the statement “Sub “and ends with “End sub.”

  • True
  • False

Lesson 8.2 Knowledge Check

Which of the following statements is TRUE about for loops?

  • Loops can help reduce the amount of code that is needed to perform a task.
  • We do not have to indicate where a for loop ends because it is automatically detected in the Visual Basic for Application (VBA) language.
  • The variables in for loops can be made up of many data types.
  • Both A and C

Which of the following statements is NOT TRUE about data programming?

  • It is necessary to start small in every way because it will increase our work efficiency.
  • In order to make sure our work progresses, it’s better to code a full program all at once.
  • We should save our work often in case there’s a power outage or computer failure.
  • It is important to know where to search for coding solutions.

If-then-else statements enable us to specify what should happen for each situation.

  • True
  • False

Lesson 8.3 Knowledge Check

When VBA was used to create histograms for all of the columns of data, why was it important to break of a for loop based on a conditional statement?

  • To prevent overlapping in charts
  • To prevent Excel from creating needless charts
  • To speed up the process of Excel creating charts
  • To make sure the charts are not missing

Machine learning algorithms are often broken down into a supervised category and an unsupervised category, and supervision is only required for the supervised category.

  • True
  • False

In performing k-means clustering by hand, what is the first thing we should do?

  • Create some rows underneath the data where we can track the coordinates of the data.
  • Calculate the distance of each observation from each cluster centroid.
  • Assign observations to start as the centroid of each cluster.
  • None of the above

In clustering our observations, why are data values often scaled so that all the values fall between 0 and 1 for every column of data?

  • To make sure that we do not miss any cluster assignments
  • To allow each column to have equal influence on how the clusters are formed
  • To highlight the column that has the greatest influence on how the clusters are formed
  • Both A and C

Automation in Excel: Quiz

Which of the following statements about macro is TRUE?

  • Macro does not allow us to create shortcut key.
  • We are allowed to add description to macro.
  • Macro can automatically stop recording.
  • We can find macro under Analysis tab in Excel.

Which of the following statements is NOT true about the five windows in Excel’s IDE, Visual Basic Editor (VB)?

  • The code window is the place where we can see and control the code.
  • The project window only displays the project we are working on.
  • The properties window allows us to change attributes about the selected object.
  • None of the above

Which of the following statements is/are TRUE about the text in VB? (Select all that apply.)

  • Green text means that the code is free of syntactical errors.
  • Comments can only be used at the beginning or the end of the code.
  • The blue text refers to code that has intrinsic meaning in VBA language.
  • The red text refers to code that is syntactically wrong. 

Which of the following statements is the CORRECT way to define a variable “i” in VBA? 

  • Type “Set i As” and then the data type name.
  • Type “For i As” and then the data type name.
  • Type “Dim i As” and then the data type name.
  • None of the above

We can use undo for changes performed by a macro.

  • True
  • False

In unsupervised learning, we do not need the presence of a group label since we let algorithms tell us which group our observations fall into.

  • True
  • False

Which of the following statements about clustering is TRUE?

  • In K-means clustering, the algorithm assigns each observation to a cluster based on the distance between the observation and the cluster centroids.
  • K-means clustering is only useful in dealing with bivariate relationship data.
  • In density-based clustering, the algorithm creates clusters based on the proximity of data points to the center of each cluster.
  • Both K-means clustering and density-based clustering require users to identify the acceptable distance between each data point and other data points.

Euclidean distance is often used to calculate the distance of each observation from each centroid, based on a distance formula derived from the Newtonian Theorem (a squared – b squared = c squared). 

True

False

Which of the following statements correctly describes the function AVERAGEIF(C10:C20, 1, D10:D20)?

  • For those values in cells D10 to D20, if their value is equal to 1, then take the average of the values in cells C10 to C20.
  • For those values in cells C10 C20, if their value is equal to 1, then take the average of their corresponding values in cells D10 to D20.
  • For those values in cells D10 to D20, if their value is less than 1, then take the average of the values in cells C10 to C20.
  • Calculate the average of the values in cells C10 to C20. If the resulting average equals 1, then calculate the average of their corresponding values in cells D10 to D20.

Which of the following statements is NOT an issue we may see in clustering? 

  • If we add more columns, it’s going to be harder to explain the results to an audience.
  • The cluster labels are not typically meaningful and usually require interpretation.
  • If we add more columns, the columns that have larger values are going to dominate how the clusters are formed.
  • None of the above
Conclusion:

I hope this Introduction to Accounting Data Analytics and Visualization Quiz Answers would be useful for you to learn something new from the Course. If it helped you, don’t forget to bookmark our site for more Quiz Answers.

This course is intended for audiences of all experiences who are interested in learning about new skills in a business context; there are no prerequisite courses.

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