An absolute cell reference in a spreadsheet program refers to a fixed location that will not change when a formula is copied to another location. In Microsoft Excel, absolute references are indicated by placing dollar signs before the column and row indicators.
In statistical testing, an alternative hypothesis is accepted if a sample contains sufficient evidence to reject the null hypothesis. It is usually denoted by H₁. In most cases, the alternative hypothesis is the expected conclusion, which is why the test was conducted in the first place.
An analyst is a professional who studies data and makes recommendations on various courses of business actions. Analysts may specialize in various fields such as budgets, credit, securities, financial patterns, sales, and more.
An annual basis is a statistical technique whereby figures covering a period of less than a year are extended to cover a 12-month period. The procedure, called annualizing, must take seasonal variations (if any) into account to be accurate.
ANOVA, which stands for Analysis of Variance, is a statistical technique used to compare the means of three or more samples to determine if at least one sample means significantly differs from the others. It is widely used in various fields such as business, medicine, and social sciences to test hypotheses on data sets.
An argument in a computer spreadsheet program refers to the values that must be specified for a given function to execute properly. For instance, in Excel, the PMT function calculates the periodic payment for a loan based on specified arguments like interest rate, number of periods, and principal amount.
AI refers to the simulation of human intelligence in machines that are programmed to think and learn like humans. These systems can perform tasks that usually require human intelligence, such as decision-making, speech recognition, visual perception, and language translation.
Audit Command Language (ACL) is a specialized software designed for auditors and financial professionals. ACL allows for data extraction, data analysis, and fraud detection in a versatile and efficient manner.
The Bayesian Approach to Decision Making is a methodology that incorporates new information or data into the decision process. It is especially useful when making decisions for which insufficient empirical estimates are available.
Benford's Law describes the expected frequency pattern of the digits in real-life data sets, especially the prevalence of lower digits as the leading digit. This mathematical law is often used in forensic accounting and fraud investigations.
Business Intelligence (BI) refers to the technologies, applications, strategies, and practices used for the collection, integration, analysis, and presentation of business information. The primary objective is to support better decision-making within an organization.
Business Intelligence (BI) refers to the strategies and technologies used by enterprises for the data analysis of business information. BI technologies provide historical, current, and predictive views of business operations.
The Case-Study Method involves studying information from hypothetical or actual business situations to formulate recommended policies based on given facts. This approach is widely used in business education, notably through Harvard case studies, to gather, organize, evaluate, and generalize relevant data. Analyzing how companies handle real-world occurrences helps determine the effectiveness of management policies and offers improvements when necessary.
A measure that indicates the typical value of a distribution. It is used in statistics to summarize a set of data by identifying the central point within that set.
Test statistic that quantifies the amount of variability in a dependent variable explained by the regression model's independent variable(s).
A contingency table is a type of data matrix presenting sample observations classified by two or more characteristics, such as categories or attributes.
Correlation refers to the statistical measure that describes the degree to which two variables move in relation to each other. Its value ranges between -1 and 1, indicating the strength and direction of the relationship.
A statistical measure of the degree to which the movements of two variables are related. It quantifies the direction and strength of the relationship between variables.
Covariance is a statistical measure that indicates the extent to which two variables change together. A positive covariance suggests that the variables tend to increase or decrease in tandem, whereas a negative covariance indicates that as one variable increases, the other tends to decrease.
Cross tabulation, also known as contingency table analysis, is a statistical technique used to establish an interdependent relationship between two or more tables of values, without identifying a causal relationship. This method is widely utilized in data analysis to compare and understand the relationship between two categorical variables.
The process of extracting useful knowledge from the huge volumes of data kept in modern computer databases using sophisticated algorithms and statistical techniques.
Database marketing refers to a marketing strategy that relies on the collection, analysis, and usage of customer data to devise targeted marketing campaigns. Utilizing detailed information from various consumer interactions, this method ensures messages are relevant and personalized but can be costly due to extensive data collection and analysis.
A Decision Support System (DSS) is an information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help in making decisions, which may be rapidly changing and not easily specified in advance.
Data Processing (DP) refers to the collection, manipulation, and processing of data to produce meaningful information that aids decision-making. It is a fundamental aspect of computer science and information technology.
Exponential smoothing is a widely used technique for short-run forecasting by business forecasters. It utilizes a weighted average of past data as the basis for a forecast, giving heavier weight to more recent information and smaller weights to older observations, reflecting the idea that the future is more influenced by the recent past than distant past.
Geodemography involves attributing demographic characteristics to a group of individuals residing in the same geographic area through an overlay of demographic survey data against a geographically segmented list.
The geometric mean is a type of mean that is calculated by taking the n-th root of the product of n numbers. It is particularly useful for sets of numbers whose values are meant to be multiplied together or are exponential in nature, such as rates of growth.
A statistical procedure used to test the hypothesis that a particular probability distribution adequately fits an observed set of data.
Two or more variables that are in no way associated with or dependent on each other.
Estimating unknown quantities that lie between two of a series of known values. Interpolation is a statistical method often used in various fields including finance, science, and engineering.
An interval scale is a level of measurement in which the difference between observations provides meaningful information. Unlike nominal and ordinal scales, interval scales provide exact differences between values but lack a true zero point.
Judgment sampling is a non-statistical method where an auditor selects a sample based on experience and assessment, rather than using statistical techniques. While practical, it doesn't allow inferences for the larger population.
The Law of Large Numbers (LLN) is a mathematical principle that states that as the number of exposures increases, the results become more predictable and closer to the expected outcomes.
An analytical method used to quantify the relationship between two or more variables by fitting a linear equation to observed data. This method is commonly employed in finance, economics, and various scientific fields to identify trends and make predictions.
An observable pattern or direction in data that persists over an extended period. It can significantly impact decision-making and expectation setting in various fields like finance, economics, and business.
A Marketing Information System (MIS) is a structured approach that facilitates the systematic collection, analysis, and distribution of marketing data. This system enables marketing managers to make informed decisions.
Marketing research involves the systematic gathering, recording, and analyzing of data related to the movement of goods and services from producer to consumer. It covers market analysis, product research, and consumer research.
The Arithmetic Mean is a statistic calculated as the sum of all values in the sample divided by the number of observations. It is a fundamental measure of central tendency used in statistical analysis.
The median is a statistical measure that represents the middle value in a data set, effectively dividing the dataset into two equal halves. It is particularly useful in representing a data set without the distortion that large deviations can cause with the average (mean).
Mode refers to the manner of existing or acting; way, method, or form. In statistics, it represents the most commonly occurring value in a data set.
A statistical calculation used to analyze data points by creating a series of averages of different subsets of the full data set. It is particularly used in finance and business to assess trends over a certain period.
Negative correlation is an inverse association between two variables, where one variable increases while the other decreases. It is represented by correlation coefficients less than 0.
Nonparametric statistics refers to statistical methods that do not assume a specific population distribution and are based on distribution-free procedures. These methods are useful when data do not meet the assumptions required for parametric tests.
In statistical hypothesis testing, the null hypothesis (H0) is the default or initial statement assumed to be true, often stating that there is no effect or no difference. The null hypothesis is only rejected if the evidence from the data significantly contradicts it.
A 'Number Cruncher' refers to both a person who spends much time calculating and analyzing numerical data as well as a computer specifically designed to perform extensive numerical calculations.
Online Analytical Processing (OLAP) is a powerful technology used in the realm of business intelligence to analyze data efficiently from multiple perspectives. It enables quick retrieval of information and facilitates complex business queries and reports.
OLAP enables users to extract specific types of data from multidimensional databases and analyze that information in multiple ways. It's useful for answering detailed and complex queries regarding products, sales, and marketing costs.
A statistical term used to express a quantity as a portion of the whole, which is assigned a value of 100. Price changes are often reported as percentage increases or declines.
A statistical ranking designation where the pth percentile of a list is the number such that p percent of the elements in the list are less than that number.
A pie chart is a circular statistical graphic that is used to illustrate numerical proportions in different categories by dividing a circle into wedge-shaped sectors.
A pivot table is a powerful data analysis tool that allows users to summarize, sort, reorganize, group, count, total, or average data stored in a database. It is essential in data processing for its ability to multi-dimensionally analyze and curate data.
The Poisson distribution is a type of probability distribution that typically models the count or number of occurrences of events over a specified interval of time or space.
Population refers to the entire pool of individuals or entities that share a common characteristic from which statistical samples can be drawn for a study.
A term used in statistics to describe the direct association between two variables, indicating that as one variable increases, the other variable also increases. Positive correlation is typically represented by correlation coefficients greater than 0.
Original data compiled and studied for a specific purpose. For example, a structured survey might be conducted for the purpose of discovering current attitudes on a particular topic; raw survey responses would be primary data.
Qualitative analysis is the process of identifying the presence or absence of important factors without measuring them precisely.
Quartiles are statistical measures dividing a data set into four equal parts. Each quartile represents a rank order segment in the distribution of the data. The first quartile (Q1) represents the 25th percentile, the second quartile (Q2) or the median represents the 50th percentile, the third quartile (Q3) represents the 75th percentile, and the fourth quartile (Q4) represents the upper range of data.
A random sample is a subset of individuals selected from a larger population in such a way that every individual has an equal and independent chance of being chosen.
A random variable is a fundamental concept in statistics used to describe quantities that have no fixed value but instead are subject to variability due to random phenomena.
Range is a key metric used in various fields, such as investment and statistics, to measure the scope of data or price fluctuations within a specific period.
The highest level of measurement in which not only the differences between observations are quantifiable, but the observations can themselves be expressed as a ratio. It is the most powerful measurement scale.
Initial data a researcher has before beginning analysis, often unprocessed and unorganized, representing real-world conditions without any transformations or analytical treatments.
A regression line is a line calculated in regression analysis that is used to estimate the relationship between two quantities, the independent variable and the dependent variable.
A Relative Cell Reference in computer spreadsheet programs identifies the position of a cell in relation to another cell. When the reference is copied to a new location, it adjusts to refer to a cell in the same relative position.
Research can refer to both the scientific method of systematically gathering, recording, and analyzing data, as well as the department within a company dedicated to conducting such investigations.
Simple Linear Regression: Method for Analyzing the Relationship Between One Independent Variable and One Dependent Variable
Standard deviation is a statistical measure that quantifies the amount of variation or dispersion in a set of values. It is widely used in situations where comparing variability between different data sets or understanding the consistency of data points is crucial.
A statistic is a descriptive measure calculated from data sampled from a population, used to make inferences about the overall population. It serves as a fundamental element in the field of statistics, aiding in data analysis, hypothesis testing, and predictive modeling.
Statistical modeling refers to the process of applying statistical analysis to a set of data in order to identify patterns, understand relationships, and make predictions.
Computer programs that perform functions helpful to accountants, particularly managerial accountants, by creating, changing, storing, and using mathematical models. Examples include SPSS/PC and Systat.
Statistically significant is a term used in hypothesis testing to determine whether a test statistic meets or exceeds a predetermined threshold, leading to the rejection of the null hypothesis.
Statistics is the study of ways to analyze data. It consists of Descriptive Statistics and Statistical Inference.
A table is a coherent and systematic presentation of data and data calculations combined with textual descriptions for the purpose of conveying understanding of particular findings and information. A spreadsheet is a typical example.
Tracking refers to the process of monitoring and recording the progress or performance of various activities, objects, or data points over time. This can be applied in numerous fields such as logistics, financial performance, project management, marketing campaigns, and online user behavior.
In statistics, the term 'universe' represents all possible elements within a particular set. For example, the universe of shoppers in a country would encompass every individual who engages in shopping activities within that country.
A variable is a data item that can change its value; it is also referred to as a factor or an element in various fields such as statistics, computer science, and mathematics.
