LO7-03: Analyze data sets using drill-down statistical techniques to discover unknown patterns, links, and relationships.

M7-03 lecture

Drill-down analytics looks for underlying patterns in data by examining it at a more detailed level.

It is also important to determine linkages, patterns, and relationships between and among variables using statistical tools and techniques.

A two-sample t-test difference of means is a statistical test to evaluate if the means of two different populations are the same.

Regressions are used to help measure the relationship between one output variable and one or more input variables.

Ask the question: Are advertising expenses related to sales revenue outcomes?
Master the data: Accounting systems record both advertising expenses and sales revenue. Observations at the weekly, monthly, quarterly, and annual level would likely work well for analytics.
Perform the analysis: Regression is a basic technique used in diagnostic analytics that allows the accountant to evaluate whether a specific dependent variable outcome value is related to independent variable inputs. Dependent variable here: Sales revenue; Independent variable: Advertising expenses.
Share the story: Summarize and report the results of the analyses to decision makers. Depending on the results, the decision makers may decide to increase, decrease, or leave their investment in advertising.