Question

Discuss and provide a business application of nonparametric methods; analysis of ordinal data

Discuss and present a business scenario where Index numbers and/or Time Series Forecasting are used.

Present an analysis of the difference between business intelligence and business analytics

Answer 1

1. Ordinal Data analysis is often used in Questionnaire. We have seen several feedback forms where ordinal data analysis is used. For example- when you visit a restaurant, they give a feedback form where they ask several questions regarding ambience, food quality, service, etc and have options to tick like- LIKERT SCALE (Like[5], Somewhat Like[4], Neutral[3], Somewhat dislike[2], Dislike[1]).

Other applications can be Research or Survey that federal government does to collect details about the citizens like salary details, and other demographic analysis.

2. One of the common use of Time series forecasting model in business is Demand Forecasting. Take example of business in retail sector. As in the case of fast moving consumer goods, a database is used that keeps track of the demand and supply of these products. To keep the stock available, forecasting is must so that customers always gets the product on the shelves and business keeps going. During, festive events, the system might use the past data of festive time to accurately predict the forecasted demand.

3. Let us use short forms for Business Intelligence as BI and Business Analytics as BA

BA has predictive capabilities where BI is used to extract the insights from historical data.

BA is used to know the likelyhood of future events using ETL, Data modelling, mining process etc.Whereas BI is used to report the trends using the historical data and present them in dashboards.

To run the business, you need BI. To change the business, you need BA.