Business Intelligence, Analytics, And Data Science: A Managerial Perspective, 4th Edition Test Bank

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1Business Intelligence, 4e(Sharda/Delen/Turban)Chapter 1An Overview of Business Intelligence, Analytics, and Data Science1) Computerized support is only used for organizational decisions that are responses to externalpressures, not for taking advantage of opportunities.Answer: FALSEDiff: 2Page Ref: 32) During the early days of analytics, data was often obtained from the domain experts usingmanual processes to build mathematical or knowledge-based models.Answer: TRUEDiff: 2Page Ref: 133) Computer applications have moved from transaction processing and monitoring activities toproblem analysis and solution applications.Answer: TRUEDiff: 1Page Ref: 114) Business intelligence (BI) is a specific term that describes architectures and tools only.Answer: FALSEDiff: 1Page Ref: 165) The growth in hardware, software, and network capacities has had little impact on modern BIinnovations.Answer: FALSEDiff: 1Page Ref: 116) Managing data warehouses requires special methods, including parallel computing and/orHadoop/Spark.Answer: TRUEDiff: 3Page Ref: 11-127) Managing information on operations, customers, internal procedures and employeeinteractions is the domain of cognitive science.Answer: FALSEDiff: 3Page Ref: 128) Decision support system (DSS) and management information system (MIS) have precisedefinitions agreed to by practitioners.Answer: FALSEDiff: 2Page Ref: 139) In the 2000s, the DW-driven DSSs began to be called BI systems.Answer: TRUEDiff: 1Page Ref: 14

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210) Major commercial business intelligence (BI) products and services were well established inthe early 1970s.Answer: FALSEDiff: 2Page Ref: 1511) Information systems that support such transactions as ATM withdrawals, bank deposits, andcash register scans at the grocery store represent transaction processing, a critical branch of BI.Answer: FALSEDiff: 2Page Ref: 1912) Many business users in the 1980s referred to their mainframes as "the black hole," becauseall the information went into it, but little ever came back and ad hoc real-time querying wasvirtually impossible.Answer: TRUEDiff: 2Page Ref: 2013) Successful BI is a tool for the information systems department, but is not exposed to thelarger organization.Answer: FALSEDiff: 2Page Ref: 2014) BI represents a bold new paradigm in which the company's business strategy must be alignedto its business intelligence analysis initiatives.Answer: FALSEDiff: 2Page Ref: 20-2115) Traditional BI systems use a large volume of static data that has been extracted, cleansed,and loaded into a data warehouse to produce reports and analyses.Answer: TRUEDiff: 2Page Ref: 2116) Demands for instant, on-demand access to dispersed information decrease as firmssuccessfully integrate BI into their operations.Answer: FALSEDiff: 3Page Ref: 2117) The use of dashboards and data visualizations is seldom effective in identifying issues inorganizations, as demonstrated by the Silvaris Corporation Case Study.Answer: FALSEDiff: 2Page Ref: 2418) The use of statistics in baseball by the Oakland Athletics, as described in theMoneyballcasestudy, is an example of the effectiveness of prescriptive analytics.Answer: TRUEDiff: 2Page Ref: 5

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319) Due to industry consolidation, the analytics ecosystem consists of only a handful of playersacross several functional areas.Answer: FALSEDiff: 2Page Ref: 38-3920) Data generation is a precursor, and is not included in the analytics ecosystem.Answer: FALSEDiff: 1Page Ref: 3921) In the Opening Vignette on Sports Analytics, what was adjusted to drive one-time ticketsales?A) player selectionsB) stadium locationC) fan tweetsD) ticket pricesAnswer: DDiff: 2Page Ref: 622) In the Opening Vignette on Sports Analytics, what type of modeling was used to predictoffensive tactics?A) heuristicsB) heat mapsC) cascaded decision treesD) sentiment analysisAnswer: BDiff: 3Page Ref: 723) Business applications have moved from transaction processing and monitoring to otheractivities. Which of the following is NOT one of those activities?A) problem analysisB) solution applicationsC) data monitoringD) mobile accessAnswer: CDiff: 2Page Ref: 1124) Which of the following developments is NOT contributing to facilitating growth of decisionsupport and analytics?A) collaboration technologiesB) Big DataC) knowledge management systemsD) locally concentrated workforcesAnswer: DDiff: 3Page Ref: 11-12

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425) In what decade did disjointed information systems begin to be integrated?A) 1970sB) 1980sC) 1990sD) 2000sAnswer: BDiff: 2Page Ref: 1426) Relational databases began to be used in theA) 1960s.B) 1970s.C) 1980s.D) 1990s.Answer: CDiff: 3Page Ref: 1327) The need for more versatile reporting than what was available in 1980s era ERP systems ledto the development of what type of system?A) management information systemsB) relational databasesC) executive information systemsD) data warehousesAnswer: CDiff: 3Page Ref: 1428) Which of the following is an umbrella term that combines architectures, tools, databases,analytical tools, applications, and methodologies?A) MISB) DSSC) ERPD) BIAnswer: DDiff: 1Page Ref: 1629) The competitive imperatives for BI include all of the following EXCEPTA) right informationB) right userC) right timeD) right placeAnswer: BDiff: 2Page Ref: 16

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530) Which of the following is NOT an example of transaction processing?A) ATM withdrawalB) bank depositC) sales reportD) cash register scansAnswer: CDiff: 2Page Ref: 1931) Online transaction processing (OLTP) systems handle a company's routine ongoing business.In contrast, a data warehouse is typicallyA) the end result of BI processes and operations.B) a repository of actionable intelligence obtained from a data mart.C) a distinct system that provides storage for data that will be made use of in analysis.D) an integral subsystem of an online analytical processing (OLAP) system.Answer: CDiff: 2Page Ref: 19-2032) The very design that makes an OLTP system efficient for transaction processing makes itinefficient forA) end-user ad hoc reports, queries, and analysis.B) transaction processing systems that constantly update operational databases.C) the collection of reputable sources of intelligence.D) transactions such as ATM withdrawals, where we need to reduce a bank balance accordingly.Answer: ADiff: 2Page Ref: 2033) How are enterprise resources planning (ERP) systems related to supply chain management(SCM) systems?A) different terms for the same systemB) complementary systemsC) mutually exclusive systemsD) none of the above; these systems never interfaceAnswer: BDiff: 2Page Ref: 2034) BI applications must be integrated withA) databases.B) legacy systems.C) enterprise systems.D) all of theseAnswer: DDiff: 2Page Ref: 22

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635) What has caused the growth of the demand for instant, on-demand access to dispersedinformation?A) the increasing divide between users who focus on the strategic level and those who are moreoriented to the tactical levelB) the need to create a database infrastructure that is always online and contains all theinformation from the OLTP systemsC) the more pressing need to close the gap between the operational data and strategic objectivesD) the fact that BI cannot simply be a technical exercise for the information systems departmentAnswer: CDiff: 3Page Ref: 2136) Today, many vendors offer diversified tools, some of which are completely preprogrammed(called shells). How are these shells utilized?A) They are used for customization of BI solutions.B) All a user needs to do is insert the numbers.C) The shell provides a secure environment for the organization's BI data.D) They host an enterprise data warehouse that can assist in decision making.Answer: BDiff: 2Page Ref: 2137) What type of analytics seeks to recognize what is going on as well as the likely forecast andmake decisions to achieve the best performance possible?A) descriptiveB) prescriptiveC) predictiveD) domainAnswer: BDiff: 2Page Ref: 24-2738) What type of analytics seeks to determine what is likely to happen in the future?A) descriptiveB) prescriptiveC) predictiveD) domainAnswer: CDiff: 2Page Ref: 24-2739) Which of the following statements about Big Data is true?A) Data chunks are stored in different locations on one computer.B) Hadoop is a type of processor used to process Big Data applications.C) MapReduce is a storage filing system.D) Pure Big Data systems do not involve fault tolerance.Answer: DDiff: 3Page Ref: 36

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740) Big Data often involves a form of distributed storage and processing using Hadoop andMapReduce. One reason for this isA) centralized storage creates too many vulnerabilities.B) the "Big" in Big Data necessitates over 10,000 processing nodes.C) the processing power needed for the centralized model would overload a single computer.D) Big Data systems have to match the geographical spread of social media.Answer: CDiff: 3Page Ref: 3641) Fundamental reasons for investing in BI must be ________ with the company's businessstrategy.Answer: alignedDiff: 2Page Ref: 2042) Software monitors referred to as ________ can be placed on a separate server in the networkand use event- and process-based approaches to measure and monitor operational processes.Answer: intelligent agentsDiff: 2Page Ref: 2143) Organizations using BI systems are typically seeking to ________ the gap between theoperational data and strategic objectives has become more pressing.Answer: closeDiff: 2Page Ref: 2144) ________ is an umbrella term that combines architectures, tools, databases, analytical tools,applications, and methodologies.Answer: Business intelligence (BI)Diff: 2Page Ref: 1645) A(n) ________ is a major component of a Business Intelligence (BI) system that holdssource data.Answer: data warehouseDiff: 2Page Ref: 1146) A(n) ________ is a major component of a Business Intelligence (BI) system that is oftenbrowser based and often presents a portal or dashboard.Answer: user interfaceDiff: 2Page Ref: 1747) ________ cycle times are now extremely compressed, faster, and more informed acrossindustries.Answer: BusinessDiff: 2Page Ref: 1648) Different types of players are identified and described in the analytics ________.Answer: ecosystemDiff: 2Page Ref: 37

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849) ________ providers focus on providing technology and services aimed toward integratingdata from multiple sources.Answer: Data WarehouseDiff: 2Page Ref: 4050) ________ providers focus on bringing all the data stores into an enterprise-wide platform.Answer: MiddlewareDiff: 2Page Ref: 4051) The user interface of a BI system is often referred to as a(n) ________.Answer: dashboardDiff: 2Page Ref: 1652) Data warehouses are intended to work with informational data used for online ________processing systems.Answer: analyticalDiff: 2Page Ref: 2053) With ________, all the data from every corner of the enterprise is collected and integratedinto a consistent schema so that every part of the organization has access to the single version ofthe truth when and where needed.Answer: Enterprise Resource Planning (ERP)Diff: 2Page Ref: 1454) As the number of potential BI applications increases, the need to justify and prioritize themarises. This is not an easy task due to the large number of ________ benefits.Answer: intangibleDiff: 2Page Ref: 2255) ________ analytics help managers understand current events in the organization includingcauses, trends, and patterns.Answer: DescriptiveDiff: 2Page Ref: 2456) ________ analytics help managers understand probable future outcomes.Answer: PredictiveDiff: 2Page Ref: 2557) ________ analytics help managers make decisions to achieve the best performance in thefuture.Answer: PrescriptiveDiff: 2Page Ref: 26-27

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958) The Google search engine is an example of Big Data in that it has to search and indexbillions of ________ in fractions of a second for each search.Answer: Web pagesDiff: 2Page Ref: 3659) The filing system developed by Google to handle Big Data storage challenges is known asthe ________ Distributed File System.Answer: HadoopDiff: 2Page Ref: 3660) The programing algorithm developed by Google to handle Big Data computationalchallenges is known as ________.Answer: MapReduceDiff: 2Page Ref: 3661) List four possible analytics applications in the retail value chain.Answer:•Inventory Optimization•Price Elasticity•Market Basket Analysis•Shopper Insight•Customer Churn Analysis•Channel Analysis•New Store Analysis•Store Layout•Video AnalyticsDiff: 2Page Ref: 3462) What are the four major components of a Business Intelligence (BI) system?Answer:1. Adata warehouse, with its source data2.Business analytics, a collection of tools for manipulating, mining, and analyzing the data inthe data warehouse3.Business performance management(BPM) for monitoring and analyzing performance4. Auser interface(e.g., a dashboard)Diff: 3Page Ref: 1663) Why is data alone worthless?Answer: Alone, data is worthless because it does not provide business value. To providebusiness value, it has to be analyzed.Diff: 2Page Ref: 3664) What is the intent of the analysis of data that is stored in a data warehouse?Answer: The intent of the analysis is to give management the ability to analyze data for insightsinto the business, and thus provide tactical or operational decision support whereby, for example,line personnel can make quicker and/or more informed decisions.Diff: 2Page Ref: 19-20

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1065) Describe the three major subsets of the Analytics Focused Software Developers portion ofthe Analytics Ecosystem.Answer:•Reporting/Descriptive Analytics — Includes tools is enabled by and available from theMiddleware industry players and unique capabilities offered by focused providers.•Predictive Analytics — a rapidly growing area that includes a variety of statistical packages.•Prescriptive Analytics — Software providers in this category offer modeling tools andalgorithms for optimization of operations usually called management science/operations researchsoftware.Diff: 3Page Ref: 41-4266) Business applications can be programmed to act on what real-time BI systems discover.Describe two approaches to the implementation of real-time BI.Answer:•One approach to real-time BI uses the DW model of traditional BI systems. In this case,products from innovative BI platform providers provide a service-oriented, near–real-timesolution that populates the DW much faster than the typical nightly extract/transfer/load (ETL)batch update does.•A second approach, commonly called business activity management (BAM), is adopted bypure play BAM and or hybrid BAM-middleware providers (such as Savvion, Iteration Software,Vitria, webMethods, Quantive, Tibco, or Vineyard Software). It bypasses the DW entirely anduses Web services or other monitoring means to discover key business events. These softwaremonitors (or intelligent agents) can be placed on a separate server in the network or on thetransactional application databases themselves, and they can use event- and process-basedapproaches to proactively and intelligently measure and monitor operational processes.Diff: 3Page Ref: 2167) List and describe three levels or categories of analytics that are most often viewed assequential and independent, but also occasionally seen as overlapping.Answer:•Descriptive or reporting analyticsrefers to knowing what is happening in the organizationand understanding some underlying trends and causes of such occurrences.•Predictive analyticsaims to determine what is likely to happen in the future. This analysis isbased on statistical techniques as well as other more recently developed techniques that fallunder the general category of data mining.•Prescriptive analyticsrecognizes what is going on as well as the likely forecast and makesdecisions to achieve the best performance possible.Diff: 3Page Ref: 24-27

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1168) How does Amazon.com use predictive analytics to respond to product searches by thecustomer?Answer: Amazon uses clustering algorithms to segment customers into different clusters to beable to target specific promotions to them. The company also uses association mining techniquesto estimate relationships between different purchasing behaviors. That is, if a customer buys oneproduct, what else is the customer likely to purchase? That helps Amazon recommend orpromote related products. For example, any product search on Amazon.com results in the retaileralso suggesting other similar products that may interest a customer.Diff: 3Page Ref: 2669) Describe and define Big Data. Why is a search engine a Big Data application?Answer:•Big Data is data that cannot be stored in a single storage unit. Big Data typically refers todata that is arriving in many different forms, be they structured, unstructured, or in a stream.Major sources of such data are clickstreams from Web sites, postings on social media sites suchas Facebook, or data from traffic, sensors, or weather.•A Web search engine such as Google needs to search and index billions of Web pages inorder to give you relevant search results in a fraction of a second. Although this is not done inreal time, generating an index of all the Web pages on the Internet is not an easy task.Diff: 3Page Ref: 35-3670) What storage system and processing algorithm were developed by Google for Big Data?Answer:•Google developed and released as an Apache project the Hadoop Distributed File System(HDFS) for storing large amounts of data in a distributed way.•Google developed and released as an Apache project the MapReduce algorithm for pushingcomputation to the data, instead of pushing data to a computing node.Diff: 3Page Ref: 36

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1Business Intelligence, 4e(Sharda/Delen/Turban)Chapter 2Descriptive Analytics I: Nature of Data, Statistical Modeling,and Visualization1) One of SiriusXM's challenges was tracking potential customers when cars were sold.Answer: TRUEDiff: 1Page Ref: 542) To respond to its market challenges, SiriusXM decided to focus on manufacturing efficiency.Answer: FALSEDiff: 2Page Ref: 553) Data is the contextualization of information, that is, information set in context.Answer: FALSEDiff: 1Page Ref: 984) Data is the main ingredient for any BI, data science, and business analytics initiative.Answer: TRUEDiff: 2Page Ref: 575) Predictive algorithms generally require a flat file with a target variable, so making dataanalytics ready for prediction means that data sets must be transformed into a flat-file format andmade ready for ingestion into those predictive algorithms.Answer: TRUEDiff: 1Page Ref: 586) The data storage component of a business reporting system builds the various reports andhosts them for, or disseminates them to users. It also provides notification, annotation,collaboration, and other services.Answer: FALSEDiff: 2Page Ref: 987) In the FEMA case study, the BureauNet software was the primary reason behind the increasedspeed and relevance of the reports FEMA employees received.Answer: TRUEDiff: 2Page Ref: 1008) Google Maps has set new standards for data visualization with its intuitive Web mappingsoftware.Answer: TRUEDiff: 2Page Ref: 1039) There are basic chart types and specialized chart types. A Gantt chart is a specialized charttype.Answer: TRUEDiff: 2Page Ref: 107

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210) Visualization differs from traditional charts and graphs in complexity of data sets and use ofmultiple dimensions and measures.Answer: TRUEDiff: 2Page Ref: 11011) When telling a story during a presentation, it is best to avoid describing hurdles that yourcharacter must overcome, to avoid souring the mood.Answer: FALSEDiff: 2Page Ref: 11312) Visual analytics is aimed at answering, "What is it happening?" and is usually associatedwith business analytics.Answer: FALSEDiff: 3Page Ref: 11213) Dashboards provide visual displays of important information that is consolidated andarranged across several screens to maintain data order.Answer: FALSEDiff: 2Page Ref: 11714) In the Dallas Cowboys case study, the focus was on using data analytics to decide whichplayers would play every week.Answer: FALSEDiff: 2Page Ref: 11815) Data source reliability means that data are correct and are a good match for the analyticsproblem.Answer: FALSEDiff: 1Page Ref: 5916) Data accessibility means that the data are easily and readily obtainable.Answer: TRUEDiff: 3Page Ref: 5917) Structured data is what data mining algorithms use and can be classified as categorical ornumeric.Answer: TRUEDiff: 2Page Ref: 6118) Interval data are variables that can be measured on interval scales.Answer: TRUEDiff: 2Page Ref: 6219) Nominal data represent the labels of multiple classes used to divide a variable into specificgroups.Answer: FALSEDiff: 2Page Ref: 61

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320) Descriptive statistics is all about describing the sample data on hand.Answer: TRUEDiff: 2Page Ref: 7521) Which characteristic of data means that all the required data elements are included in the dataset?A) data source reliabilityB) data accessibilityC) data richnessD) data granularityAnswer: CDiff: 2Page Ref: 59-6022) Key performance indicators (KPIs) are metrics typically used to measureA) database responsiveness.B) qualitative feedback.C) external results.D) internal results.Answer: DDiff: 2Page Ref: 9923) Kaplan and Norton developed a report that presents an integrated view of success in theorganization calledA) metric management reports.B) balanced scorecard-type reports.C) dashboard-type reports.D) visual reports.Answer: BDiff: 2Page Ref: 9924) Which characteristic of data requires that the variables and data values be defined at thelowest (or as low as required) level of detail for the intended use of the data?A) data source reliabilityB) data accessibilityC) data richnessD) data granularityAnswer: DDiff: 2Page Ref: 59-6025) Which of the following is LEAST related to data/information visualization?A) information graphicsB) scientific visualizationC) statistical graphicsD) graphic artworkAnswer: DDiff: 2Page Ref: 101

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426) The Internet emerged as a new medium for visualization and brought all the followingEXCEPTA) worldwide digital distribution of visualization.B) immersive environments for consuming data.C) new forms of computation of business logic.D) new graphics displays through PC displays.Answer: CDiff: 2Page Ref: 101-10327) Which kind of chart is described as an enhanced version of a scatter plot?A) heat mapB) bulletC) pie chartD) bubble chartAnswer: DDiff: 3Page Ref: 10728) Which type of visualization tool can be very helpful when the intention is to show relativeproportions of dollars per department allocated by a university administration?A) heat mapB) bulletC) pie chartD) bubble chartAnswer: CDiff: 3Page Ref: 10629) Which type of visualization tool can be very helpful when a data set contains location data?A) bar chartB) geographic mapC) highlight tableD) tree mapAnswer: BDiff: 2Page Ref: 10730) Which type of question does visual analytics seeks to answer?A) Why is it happening?B) What happened yesterday?C) What is happening today?D) When did it happen?Answer: ADiff: 2Page Ref: 112

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