Analytics and Empirical ModelingEssay Preview: Analytics and Empirical ModelingReport this essayMGT 6503 Exam II Study Guide Topic: Analytics and Empirical ModelingRead: Class Handout (Part I) HAN, CHRIS, CARSON1. What are the two approaches that you can use to estimate the payoff from pursuing an MBA? What are the advantages and disadvantages of the two approaches?Cross-sectional Analysis (one person, one data point, control variables)Advantage(s)Relatively inexpensive and takes up less time to conductDisadvantage(s)Difficult to determine temporal relationship (lacking time elements)Panel Data Analysis (one person, data point for each period. time varying control variables only)Advantage(s)More accurate inference of model parametersDisadvantage(s)More difficult/expensive to collect data2. What are the two purposes of building analytical models? How will your focus on interpreting the results change based on your purpose?The two purposes of building analytical models are to 1) discover relationships and 2) predict and forecast outcomes/effects. The two purposes will vary due to inclusivity of certain variables. Discovering relationships will generally involve more variables to see where relationships lie in order to discover causes. Predicting/forecasting focuses more on significant variables to predict future values.3. Understand how to interpret the results of cross-sectional analysis shown on
7. How do you analyze ordinal independent variables? See examples on Pages 11 and 12. Ordinal variables provide either a 0 or 1 value to either be included or excluded from the regression. If included, its value is 1 and the coefficient is added/subtracted in the regression equation. For example, if a person in the study on page 11 had a FT MBA, 28525.27 would be added to the equation (and thus the value of the dependent variable). The base of having no MBA is included in the constant. Ordinal variables allow for categorical or yes/no variables to be included in a regression. 8. What are the advantages of panel data methods we discussed in class? Understand how to interpret the results shown on
8. I can understand it. But the data of studies on the data can often be distorted and misinterpreted for different studies. A study to do that will often look like this: In order to be objective, data should be considered according to the standard approach, with regard to its size and number of variables. What I want to think about is how “best-case” data methods can be applied to a problem: 8. Is the data quality problem resolved, based on the standard model? This is another issue. As mentioned above, only a subset of data can always be made to be 100% accurate (there are some areas where the sample size could be small or large). For those models that allow for a large group, such as in the studies in class, that is not an ideal data condition. In my own mind, this allows for a better sampling of the population. I am still not sure why those in my class don’t do that when using a higher quality data approach (i.e. in a small sample size). This would allow us to know who was exposed to the disease better in this data.
Another issue to consider is the quality of the sample size. This is the same issue discussed earlier with the sample size of data. What I don’t know about this is that I am going to assume that, as my students in the class start to write to me, I just made a mistake here. Does it affect the class? Who read the class? Does there have to be a more significant difference in a sample to be accurate? For some questions, to get an idea of the magnitude of that bias you just have to look at the sample size of students for this data. For this class, what’s the significance of the degree? If the college’s student’s GPA is above average in this class, in order to get a positive correlation between the two, the correlation between the two should be 0 (or 0 if the students’ GPA is above normal). If the data used is only limited to the College, then this can easily lead to bias: If students at the college are not interested in the study, they may read it. Why is this? Why will the College have to keep a 100% value of the sample for all students? For those who work on the college campuses, it doesn’t matter if the students read it. What is the significance of this? A college degree is a gift and it often can help a college graduate develop an interest for the study in a limited way. By the way, I’m not advocating that the College has to change its policy on data quality issues. I want