Case: Data Analytics

Here are some the different situations that can be used for data analytics and
management support in decision making.
1. An accounting firm is trying to understand if its external audit fees are
appropriate. They compute a regression using public data from all
companies in their industry to understand the factors associated with
higher audit.
2. A self-driving car company uses artificial intelligence to help clean its
historic social media data so they can analyze trends.
3. An airline downloads weather data for the past 10 years to help build a
model that will estimate future fuel usage for flights.
4. A shipyard company runs a computer simulation of how a tsunami would
damage its shipyards, computing damages in terms of destruction and lost
production time.
5. An online retail company tracks past customer purchases. Based on the
amount customers previously spent, the program automatically computes
purchase discounts for current customer purchases to build loyalty.
6. An all-you-can-eat restaurant uses automated conveyer belts to bring cold
food to the chefs for preparation. The conveyer belts bring the food to the
chefs based on algorithms that monitor the number of people entering and
leaving the restaurant.
7. A large manufacturer of farm equipment continuously analyzes data sent
from engine sensors to understand how load, temperature, and other
factors influence engine failure.
8. A small tax services business provides its financial statements to a bank to
get a loan so it can buy a new building to grow its business.
Required:
A. Indicate whether the analysis of the above situation is included descriptive
analytic, diagnostic analytic, predictive analytic, or prescriptive analytic.
B. Explain your argument for the type of data analytics you determine in point
A.

Source:
(AIS by Romney et.al. 15th ed.)