Part 4: Modeling Profitability Instead of Default :Mastering Data Analysis in Excel (Excel to MySQL: Analytic Techniques for Business Specialization) Answers 2025

Answer Key:

1. Question 1 – Do you feel prepared to take this quiz?
   ✔ Yes
   ❌ No

2. Question 2 – Beta values (Training Set):
   ✔ .01, .19, -.07, .64, -.06, 0
   ❌ .01, -.19, -.07, -.64, -.06, 0
   ❌ .01, .19, .07, .64, .06, 0

3. Question 3 – RMS residual (standardized Test Set):
   ✔ 0.5835
   ❌ 0.3250
   ❌ 0.6750
   ❌ 0.8109
   ❌ 0.6875

4. Question 4 – Observed correlation R (Test Set):
   ✔ 0.7378
   ❌ 0.7332
   ❌ 0.8095
   ❌ 0.7590

5. Question 5 – Standard deviation of model error ($, Test Set):
   ✔ $3,885.14
   ❌ $3,996.81
   ❌ $3,379.36
   ❌ $3,411.80

6. Question 6 – 90% confidence interval ($, Test Set):
   ✔ $5,611.91 above/below point estimate
   ❌ $6,390.49 above/below
   ❌ $5,558.55 above/below
   ❌ $6,574.17 above/below

7. Question 7 – P.I.G. (Test Set):
   ✔ 26.4%
   ❌ 27.7%
   ❌ 18.9%
   ❌ 37.2%

8. Question 8 – Correlation R (Training Set):
   ✔ 0.7805
   ❌ 0.7505
   ❌ 0.8095

9. Question 9 – Std deviation of model error (standardized, Training Set):
   ✔ 0.587
   ❌ 0.487
   ❌ -0.487
   ❌ -0.587

10. Question 10 – Std deviation of model error ($, Training Set):
    ✔ $4,312.91
    ❌ $5,500.87
    ❌ $4,379.36
    ❌ $3,379.36

11. Question 11 – 90% confidence interval ($, Training Set):
    ✔ $5,328.93
    ❌ $7,128.55
    ❌ $6,211.18
    ❌ $5,558.55

12. Question 12 – P.I.G. (Training Set):
    ✔ 37.5%
    ❌ 36.5%
    ❌ 32.4%
    ❌ 41.4%

13. Question 13 – Point estimate of profitability ($):
    ✔ $10,683.61
    ❌ -$10,683.61
    ❌ $11,109.61
    ❌ $8,451.61

14. Question 14 – 50% confidence range ($):
    ✔ Range from $10,683.61 to –$2,278.99
    ❌ Range from $11,823.28 to $9,543.94
    ❌ Range from $13,304.16 to $8,063.06
    ❌ Range from $12,962.61 to $10,683.61

15. Question 15 – 99% confidence range ($):
    ✔ Range from $20,691.32 to $675.90
    ❌ Range from $19,388.27 to $10,683.61
    ❌ Range from $10,683.61 to -$8,704.31
    ❌ Range from $16,388.27 to -$7,704.31

16. Question 16 – Training vs Test Set:
    ✔ Increased by less than 20%, which suggests minimal model over-fitting
    ❌ Increased by more than 50%, over-fitting
    ❌ Increased by more than 25%, possible over-fitting
    ❌ Decreased by about 15%, very strong model