...these outcomes a success and the other, a failure. * The sample includes at least 10 successes and 10 failures. (Some texts say that 5 successes and 5 failures are enough.) * The population size is at least 10 times as big as the sample size. This approach consists of four steps: (1) state the hypotheses, (2) formulate an analysis plan, (3) analyze sample data, and (4) interpret results. State the Hypotheses Every hypothesis test requires the analyst to state a null hypothesis and an alternative hypothesis. The hypotheses are stated in such a way that they are mutually exclusive. That is, if one is true, the other must be false; and vice versa. Formulate an Analysis Plan The analysis plan describes how to use sample data to accept or reject the null hypothesis. It should specify the following elements. * Significance level. Often, researchers choose significance levels equal to 0.01, 0.05, or 0.10; but any value between 0 and 1 can be used. * Test method. Use the one-sample z-test to determine whether the hypothesized population proportion differs significantly from the observed sample proportion. Analyze Sample Data Using sample data, find the test statistic and its associated P-Value. * Standard deviation. Compute the standard deviation (σ) of the sampling distribution. σ = sqrt[ P * ( 1 - P ) / n ] where P is the hypothesized value of population proportion in the null hypothesis, and n is the sample size. * Test statistic. The test statistic is...
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...includes the importance of accounting for an effective managerial decision making. It is true that accounting information provides important financial data of company’s costs and revenues; additionally, it also defines options for managers to take decisions on the best option for their companies to minimize cost while increasing profits. The decision making may involve whether to accept special order, make or buy, sell or process further, retain or replace equipment to name a few (Kimmel, Weygandt & Kieso, 2011). This paper discusses the option of incremental and comprehensive analysis and how it can be beneficial to decision making for managers. Furthermore, it elaborates on whether “Incremental analysis is considered to be more economical than a comprehensive analysis, while being just as effective or not” (Learning Assignment, week 6). Incremental Analysis The management usually faces two different types of decisions: a short-term, regarding the normal operation of the company, and long-term capital investments. The short-term decisions can be carried out and then make them retroactive actions to carry out the strategic company goals. In the long-term decision-making, many resources are involved and may include rigid and difficult processes. The short-term decisions may affect different areas that make up an organization, such as sales, finance, production, human resources, etc. There is a wide range of decisions which can be compromised the company's short term and that...
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...Management Accounting | 15 Management Accounting and Decision-Making Management accounting writers tend to present management accounting as a loosely connected set of decision‑making tools. Although the various textbooks on management accounting make no attempt to develop an integrated theory, there is a high degree of consistency and standardization in methodology of presentation. In this chapter, the concepts and assumptions which form the basis of management accounting will be formulated in a comprehensive management accounting decision model. The formulation of theory in terms of conceptual models is a common practice. Virtually all textbooks in business administration use some type of conceptual framework or model to integrate the fundamentals being presented. In economic theory, there are conceptual models of the firm, markets, and the economy. In management courses, there are models of organizational structure and managerial functions. In marketing, there are models of marketing decision‑making and channels of distribution. Even in financial accounting, models of financial statements are used as a framework for teaching the fundamentals of basic financial accounting. The model, A = L + C, is very effective in conveying an understanding of accounting. Management accounting texts are based on a very specific model of the business enterprise. For example, all texts assume that the business which is likely to use management accounting is a manufacturing business. Also,...
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...Incremental analysis is sometimes referred to as incremental cost analysis, relevant cost analysis, or differential cost analysis. Incremental analysis is an accounting tool used to assist decision making by assessing the impact of small or marginal changes. However, incremental analysis is applicable to short and long-term issues. Using accounting information that provides important financial data such as costs and revenues is very important to companies. It helps the managers define what their options are on how to minimize cost increasing their profits. The decision making may involve whether to accept special order, make or buy, sell or process further, retain or replace equipment to name a few (Kimmel, Weygandt & Kiesco, 2011). Incremental Analysis In most cases management usually have to face two types of decisions: short term, which involves the normal operation of the company and long-term capital investments. However, the short-term decision can be carried out and then made retroactive actions to carry out the strategic goals of the company. Whereas the long-term decision making, there are several resources involved and sometimes it includes rough and difficult processes. Keep in mind that in some instance, short term decisions can affect different areas that make up an organization such as sales, finance, production, and human resources. The different types of decisions that involve incremental analysis are accept as an order at a special price, make or buy...
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...Accounting Information for Managers To Make Better Decisions 1 Abstract This paper analysis how the accounting information would support the decision making process. The main goal of an accounting system is to provide financial information about the organization including financial situation and the performance of the organization. The decision makers should know the situation of the organization either by comparing competitors or previous periods’ performance in order to achieve the objectives of the company and this being possible by using accounting information. In addition, this thesis studies the importance of having effective and efficient accounting system to make better decision as it relates to increase the profitability target of an organization. Organizations should replace their weak accounting system in order to ensure that each team member in the Accounts Department is conscious of their role to produce good accounting information (1, Okoli Margaret). The result of this paper describes that providing right information to the right people in time via management reporting to maximize the use of reports in decision-making. 2 Introduction Any organization should survive and excel in the fast paced and ever changing market. We are living in the digital era so information can be found everywhere via websites, databases documents, reports, and emails. However, it’s important to read the historical data-set during decision making process but providing report in quick & timely...
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...Big data is nothing but the collection of large set data which cannot be examined with the normal conventional methods. Big data plays a huge role in different types of industries to improve their business efficiently and effectively. The role of big data is much more in business because many business takes decision based on the data. The workers collects the data relevant to the decisions making. For example, data analyst can track the customer transaction data and helps them to know what kind of improvements can make for increasing their sales. Big data analysis benefits the business to improve the productivity and run efficiently. Basically, leaders depends on the intuition for making the critical decisions but the fact says when leaders uses the data and facts for taking the critical decisions they have the high chance of success. Even though intuition decision making is simple and fast, data based decision are more tactical and by using the modernized technology it is easy for the leaders to finish up the simple tasks and decisions. To incorporate the data into the decision making, leaders must lead in front by supporting the cultural change and by acknowledging the importance of data based decision making and then leaders have to guide their team to get used to the big data analysis. When I was working in electronic based company in India, I had no idea about the big data analysis. The productivity and sales of the company went down at that time. As an employee, I gave...
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...of an organization’s data with emphasis on statistical analysis. It describes the skills, technologies, practices for continuous iterative exploration and investigation of past business performance to gain insight and drive business planning. Business analytics is used by companies committed to data-driven decision making. It focuses on developing new insights and understanding of business performance based on data and statistical methods. BA is used to gain insights that inform business decisions and can be used to automate and optimize business processes. Business analytics makes extensive use of statistical analysis, including explanatory and predictive modeling, and fact-based management to drive decision making. It is therefore closely related to management science. Analytics may be used as input for human decisions or may drive fully automated decisions. Data-driven companies treat their data as a corporate asset and leverage it for competitive advantage. Successful business analytics depends on data quality, skilled analysts who understand the technologies and the business and an organizational commitment to data-driven decision making. Once the business goal of the analysis is determined, an analysis methodology is selected and data is acquired to support the analysis. Data acquisition often involves extraction from one or more business systems, cleansing, and integration into a single repository such as a data warehouse or data mart. The analysis is typically performed...
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...Business Decision Making ( Prity) INTRODUCTION Because of the globalization everyone can do business wherever find profitable place or location, for technological development it become easier and accessible to do business one corner from another corner of the world. Although there is lots or benefits for technological advancement, for operating every business in every place there are some problem also. So for effective business organization should plan for their project. For market research, Abacus Research and Analytics (ARA) a research institute, this institute is going to do a research on consumer behaviors and attitudes towards Food Discount in Retailing by Wm Morrison in Greater London for providing the customer better services. This research will help the organization to take correct and concrete decision for the improvement of customer service for customer satisfaction. Amicus company ltd., Royal company ltd., and . Every company has some problem to operate business although these companies located in good places. These companies want to acquire customer satisfaction by improving customer services. So for better improvement in customer services, Abacus Research and Analytics (ARA) is doing a research for taking correct decision. Abacus Research and Analytics (ARA) collect their information from primary and secondary sources which are authentic as well as accurate, and necessary tools which are relevant to this research used to analysis and calculating data for taking...
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...Question 1: What is the nature of Information? Explain how individuals interpret data to become information. Answer: Data that is (1) accurate and timely, (2) specific and organized for a purpose, (3) presented within a context that gives it meaning and relevance, and (4) can lead to an increase in understanding and decrease in uncertainty, is called an information. Information is valuable because it can affect behavior, a decision, or an outcome. For example, if a manager is told his/her company's net profit decreased in the past month, he/she may use this information as a reason to cut financial spending for the next month. A piece of information is considered valueless if, after receiving it, things remain unchanged. For a technical definition of information see information theory. Data analysis is a practice in which raw data is ordered and organized so that useful information can be extracted from it. The process of organizing and thinking about data is a key to understanding what the data does and does not contain. There are a variety of ways in which people can approach data analysis, and it is notoriously easy to manipulate data during the analysis phase to push certain conclusions or agendas. For this reason, it is important to pay attention when data analysis is presented, and to think critically about the data and the conclusions which were drawn. Raw data can take a variety of forms, including measurements, survey responses, and observations...
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...Decision making 1. What are the different types of decisions and how does the decision-making process work? There are 3 different types of decisions, which are Unstructured, Structured, and Semi-Structured. For Unstructured decision making managers must provide judgment, evaluation, and insight to solve problem. The made decision depends on the individual making it. In a Structured decision repetition and routines are applied for each decision that is made. These decisions have a procedure for handling a situation so that it does not have to be approached as a new situation upon accurance. Structured takes away stress from the manangers as they do not have to make difficult decisions. But, managers also lose some of their power with this decision making process. Semi-structured allows the manager to use past situations for current problems, but also has the flexibility to emphasize using own judgement. 2. How do information systems support the activities of managers and management decision making? Information systems can assist in making decisions by providing information and tools for analysis. To manage situations effieciently and effectively, organiztions use Management Information Systems, MIS, to process information. Individuals, technology, and informationManagement information systems involve three primary resources people, technology, and information. Management information systems are distinct from other information systems in that they are used to analyze...
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...indispensable tool for decision making in big companies * What is Business intelligence exactly? (Bapt ou Greg) Business intelligence, or BI for short, is a term that refers to competencies, processes, technologies, applications and practices used to support evidence-based decision making in organisations. In the widest sense it can be defined as a collection of approaches for gathering, storing, analysing and providing access to data that helps users to gain insights and make better fact-based business decisions. The basic components of Business Intelligence are gathering, storing, analysing and providing access to data (see Figure). Gathering Data Gathering data is concerned with collecting or accessing data which can then be used to inform decision making. Gathering data can come in many formats and basically refers to the automated measurement and collection of performance data. For example, these can come from transactional systems that keep logs of past transactions, point-of-sale systems, web site software, production systems that measure and track quality, etc. A major challenge of gathering data is making sure that the relevant data is collected in the right way at the right time. If the data quality is not controlled at the data gathering stage then it can jeopardise the entire BI efforts that might follow - always remember the old adage - garbage in garbage out. Storing Data Storing Data is concerned with making sure the data is filed and stored in appropriate...
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...TOPic: DECISION SUPPORT SYSTEMS: AN OVERVIEW AND ITS ROLE IN BUSINESS Introduction A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. Typical information that a decision support application might gather and present are: * Inventories of information assets (including legacy and relational data sources, cubes, data warehouses, and data marts), * Comparative sales figures between one period and the next, * Projected revenue figures based on product sales assumptions. Making decisions concerning complex systems (e.g., the management of organizational operations, industrial processes, or investment portfolios; the command and control of military units; or the control of nuclear power plants) often strains our cognitive capabilities. Even though individual interactions among a system's variables may be well understood, predicting how the system will react to an external manipulation such as a policy decision is often difficult. What will be, for example, the effect of introducing the third shift on a factory floor? One might expect that this will increase the plant's output by roughly 50 percent. Factors such as additional wages, machine weardown, maintenance breaks, raw material usage, supply logistics, and...
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...Intelligence and Decision Support Systems Goals of the Chapter The primary objective of this chapter is to recognize the importance of data, the management issues that relate to it, and its life cycle. Other objectives include relating data management to multimedia and document management, explaining the concept of data warehousing, data mining, analytical processing, and knowledge discovery management. An Overview Section 12.1 – The Need for Business Intelligence – The section serves as an overview of Business Intelligence and its use in business. It discusses the problems associated with disparate data stores where data are not integrated into a single reporting system. The section discusses the technologies involved in Business Intelligence and the vendors involved. It also talks about predictive analytics, alerts and decision support. Section 12.2 – BI Architecture, Reporting and Performance Management – This section discusses the modes of data extraction and integration into a standardized, usable and trustworthy one. It also discusses the different types of reporting systems available to organizations, data mining, query and analysis. The section provides an insight into Business Performance Management (BPM) as a way for business managers to know if their organizations are achieving their strategic goals Section 12.3 – Data, Text and Web Mining and BI Search – This section discusses data mining technology, tools, and techniques. Information types, data mining applications...
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...information to make decisions * Changing the structures of information systems databases are much more costly and harder to do than by just building it right the first time * Transaction processing system, records sales * Point of sales example with organizational boundaries * Successfully collecting, compiling, sorting, and analyzing information can provide tremendous insight into how an organization is performing * Information Granularity: Extend of details within the information (fine, detailed, coarse and abstract). 2 Primary type of Information: Transactional and Analytical Transactional information (data) = encompasses all of the information (data) contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks (for repetitive decision making) * Airline tickets, sales receipts (Model 6-8 chart) Analytical information – encompasses all organizational information (data), and its primary purpose is to support the performing of managerial analysis tasks (such as: whether the organization should build a new manufacturing plant or hire additional sales personnel) * 1/3 of all organizational content is contained within databases * Explicit knowledge – all the things that can be recorded (procedures, policies, formulas, algorithms) * Tacit knowledge – skills, talent etc Information Timeliness * Timeliness is an aspect of information (data) that depends...
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... Business Intelligence and Data Warehouses Student’s name: Professor’s name: Course title: 1. Differences between the structures of a relational database optimized for online transactions versus a data warehouse optimized for processing and summarizing large amounts of data Data Warehouse is a database which is designed to process for query and analysis rather than for transaction processing, and it is usually contains historical data derived from transaction data, but can include data from other sources while relational database optimized for online transaction which includes insertions, updates and deletion. Basically Data Warehouse is defined as a subject-oriented, non-volatile and time –variant collection of database which support management’s decisions. Data Warehouse is very distinct from online transaction systems. Some of distinctions are given below: * One of main difference, a data warehouse you can do separate analysis workload form transaction workload which makes it very much read-oriented systems. * They deal higher amount of volume in comparisons to online transaction database. * They have a far higher amount of data reading versus writing and updating. This enables far better analytical performance and avoids impacting your transaction systems. * A data warehouse system can be optimized to consolidate data from many sources to achieve a key goal. * it prevents many disputes and enhances decision-making efficiency 2. Differences...
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