ACC 202 Accounting Information Systems: Excel Assignment and Case Study Assessment Answer
1. Customers who are likely to default.
Mass Defaults - Mass defaults apply to all customers of a product or service, without taking customers’ individual characteristics or preferences into account. A common example would be an online retailer’s using standard shipping unless the customer actively chooses rush delivery. Mass defaults by their very nature give some customers a version of the offering that wouldn’t be their first choice. Still they are very useful when most customers can reliably be expected to prefer one basic configuration or to benefit from the seller’s recommendations.
2. A model to forecast demand of the next quarter.
A simple moving average (SMA) is the simplest type of technique of forecasting. Basically, a simple moving average is calculated by adding up the last ‘n’ period’s values and then dividing that number by ‘n’. So, the moving average value is considering as the forecast for next period. Moving averages can be used to quickly identify whether selling is moving in an uptrend or a downtrend depending on the pattern captured by the moving average.
For most business intelligence (BI) professionals, maps are becoming an increasingly common way to view data in a dashboard or report. However, most BI professionals have yet to be exposed to the full power of location intelligence.
- Location Intelligence is the ability to map and visualize data in geographical formats. Exploring and visualizing data sets based on spatial elements enables organizations to understand their business operations from new perspectives, such as sales per region.
- LI is a business intelligence (BI) tool capability that relates geographic contexts to business data. Like BI, location intelligence software is designed to turn data into insight for a host of business purposes. Such tools draw on a variety of data sources, such as geographic information systems (GIS), aerial maps, demographic information and, in some cases, an organization's own databases.
- LI is an asset management tool that allows an organization to track items of economic value that can be converted into cash.
It is most often used to describe the people, data and technology for geographical information. Often these are incorporated as spatial database and spatial OLAP tools. GIS tools helps to analyse and visualize the data given at a time.
Location intelligence is used by a broad range of industries to improve overall business results. Applications include:
- Communications and telecommunications: Network planning and design, boundary identification, identifying new customer markets.
- Financial services: Optimize branch locations, market analysis, share of wallet and cross-sell activities, mergers & acquisitions, industry sector analysis, risk management.
- Hotels and restaurants: Customer profile analysis, site selection, target marketing, expansion planning.
- Media: Target market identification, subscriber demographics, media planning.
- Transportation: Transport planning, route monitoring.
- Healthcare: Site selection, market segmentation, network analysis, growth assessments.
- Insurance: Address validation, underwriting and risk management, claims management, marketing and sales analysis, market penetration studies.
Why Location Intelligence Matters?
Datasets on their own are incredibly powerful and practical. With the right information, you can understand what your customers want, how your business or products are doing and how to make more-informed, almost predictive decisions in the future. Crucially to understand “where” and “when”, location intelligence is most important.
Decision making is a crucial part of any business but when you can take decisions based on data then the outcome of any project or task is always more in control than earlier. What-if analysis directly helps us in this.
· What is WHAT-IF ANALYSIS?
It is the process of changing the values in cell to see how those changes affect the outcome of formulas on the worksheet. In relation to this, you need to create scenarios to analyse.
· What is a SCENARIO?
A scenario is a set of values that Microsoft Excel saves and can substitute automatically in the worksheet. Scenario is important because you can use them to forecast the outcome of a worksheet model.
Three kinds of What-If Analysis tools come with Excel: Scenarios, Goal Seek, and Data Tables. Scenarios and Data tables take sets of input values and determine possible results. A Data Table works with only one or two variables, but it can accept many different values for those variables. A Scenario can have multiple variables, but it can only accommodate up to 32 values. Goal Seek works differently from Scenarios and Data Tables in that it takes a result and determines possible input values that produce that result.
- Goal Seek – Reverse calculations
- Data Table – Sensitivity analysis
- Scenario Manager – Comparison of scenarios
“What if” analysis allows businesses to assess the potential effects of critical business decision before they’re made. Using existing data, users can formulate strategies to achieve business targets and avoid the default “hit and miss” approach. This helps management undertake accurate strategic planning.