Deck 11: Business Intelligence

Question 1

An RFM analysis analyzes and ranks customers based on demographic characteristics.

Answer 1

False

Question 2

An RFM analysis considers how recently a customer has ordered and how much the customer has spent.

Answer 2

True

Question 3

Analyzing patterns in databases is a function of business intelligence.

Answer 3

True

Question 4

Analyzing operational data is the first activity in the informing process.

Question 5

A digital dashboard is an electronic medium used to output data in the reporting process.

Question 6

RFM analysis produces interactive reports to analyze purchasing patterns.

Question 7

In an RFM analysis conducted on a scale of 1 to 5, an M score of 5 is assigned to 20 percent of the customers who spend the least on orders.

Question 8

One of the applications of the data mining process is to predict products that tend to be purchased together.

Question 9

OLAP provides the ability to analyze data using basic operations such as sorting, grouping, calculating, filtering, and formatting.

Question 10

Noninteractive analyses use a predetermined structure for their output.

Question 11

The data mining process has the same activities as the reporting process.

Question 12

Online analytical processing is a common term used for noninteractive reporting.

Question 13

An RFM score of 555 (R=5; F=5; M=5, on a scale of 1-5)indicates that the customer frequently purchases expensive items.

Question 14

An OLAP measure is the item that is to be summed, averaged, or otherwise processed in the OLAP report.

Question 15

A data warehouse is a special type of database configured for business intelligence applications.

Question 16

Business intelligence refers to an information system that supports a process called informing.

Question 17

The reporting process creates unstructured reports.

Question 18

A business intelligence system is an information system that supports business processes by consolidating and analyzing data in a large database to help users create information.

Question 19

An informing process is separated from the other processes in an organization.

Question 20

The analysis activity in the reporting process is sophisticated and complex.

Question 21

A data warehouse is specially designed to sort and retrieve large volumes of data.

Question 22

BI software varies based on the analysis method used.

Question 23

Problematic data that is presented for business intelligence is called clustered data.

Question 24

Market basket analysis is a technique used to determine sales patterns.

Question 25

Market basket analysis is a technique used to form an equation that predicts market behavior.

Question 26

With unsupervised data mining, analysts create a model or hypothesis before running the analysis .

Question 27

Regression analysis is used in sports to predict future performance.

Question 28

A BI server is used by an analyst to analyze data and produce the output.

Question 29

Regression analysis is an example of unsupervised data mining.

Question 30

The data mining process uses advanced statistical techniques to find patterns and relationships among data for classification and prediction.

Question 31

Supervised data analysis is also known as data-driven analysis.

Question 32

Regression analysis is a type of data mining analysis that measures the impact of a set of variables on another variable.

Question 33

The methods of interactions in BI depend on the user's objectives and the nature of the BI system.

Question 34

Cluster analysis is a common form of analysis used in the reporting process.

Question 35

Postelection analysis is an example of supervised data mining.

Question 36

A decision tree is a hierarchical arrangement of criteria that predict a classification or a value.

Question 37

Data mining analyses are noninteractive.

Question 38

The primary objective of a reporting process is predicting patterns and relationships in data.

Question 39

With an OLAP report, it is possible to drill down into data.

Question 40

BI metadata is data about the source of the data, its format, its assumptions and constraints, and other facts about the data.

Question 41

Which of the following types of analyses is used in the reporting process?

A) market basket analysis
B) RFM analysis
C) cluster analysis
D) regression analysis

Question 42

Data is said to be nonintegrated when it contains missing elements.

Question 43

Which of the following activities of the informing process is typically performed by end-users?

A) storing data in a data warehouse
B) collecting data
C) preparing a data warehouse
D) creating information from the output

Question 44

Which of the following is true regarding the data mining process?

A) It uses interactive and noninteractive analyses.
B) Its activities are entirely different from those in the reporting process.
C) It uses simple statistical techniques for data analysis.
D) Its objective is better prediction.

Question 45

Online transactional processing is the equivalent of strategic decision making.

Question 46

The special type of database configured for business intelligence applications is called a ________.

A) data warehouse
B) data matrix
C) data array
D) data set

Question 47

Visualization is the live or indirect view of the real world augmented by computer-based data.

Question 48

Augmented reality is a mashup of the real world supplemented by data about the objects in that world.

Question 49

Which of the following is the first activity in the informing process?

A) storing data in a data warehouse
B) collecting data
C) transforming data into a usable format
D) creating information from the output

Question 50

A credit card provider uses a software to determine the likelihood of customers defaulting on their payments. The software assigns a credit score to each customer based on their past transactional records. This software is an example of a(n)________ system.

A) project management
B) business intelligence
C) collaboration
D) budgeting

Question 51

BI analysts often know much more about a BI system than the processes it supports.

Question 52

An organization uses a business intelligence system to predict products that tend to be purchased together. This is an example of a(n)________ process.

A) reporting
B) extracting
C) evaluating
D) data mining

Question 53

Oracle is an example of a pure-play BI company.

Question 54

Which of the following is NOT true about the informing process?

A) It is integrated with another process and supports other processes.
B) It does not require BI systems.
C) It is used to provide insight to users and improve the quality of their information.
D) It cannot be standardized.

Question 55

Clickstream data is used to track everything the customer does at a Web site.

Question 56

SAP analysis of data is called online analytical processing (OLAP).

Question 57

Which of the following statements is true about business intelligence systems?

A) They help identify patterns in mountains of data.
B) Their use by private organizations is restricted by law.
C) They require highly trained analysts to uncover data patterns.
D) They are expensive to acquire due to the rising cost of data storage.

Question 58

Which of the following statements is true of the reporting process?

A) It is generally accomplished with just operational data.
B) It creates unstructured reports and delivers them to users.
C) It involves the use of sophisticated statistical techniques.
D) Its objective is better prediction.

Question 59

The operational data collected by SAP is known as Business Objects.

Question 60

Granularity refers to the inconsistencies and missing values that exist within data.

Question 61

________ analysis uses statistical techniques to identify groups of entities that have similar characteristics.

A) Market basket
B) RFM
C) Cluster
D) Regression

Question 62

________ analysis is a type of data mining analysis which measures the impact of a set of variables on another variable.

A) Market basket
B) RFM
C) Cluster
D) Regression

Question 63

Which of the following is the major difference between OLAP and RFM analysis?

A) OLAP sorts data to derive conclusions whereas RFM analysis does not.
B) OLAP is used during the data preparation stage of the reporting process whereas RFM analysis is used during the analysis stage.
C) OLAP uses the basic analysis operations of grouping and filtering whereas RFM analysis does not.
D) OLAP produces interactive reports whereas RFM analysis produces noninteractive reports.

Question 64

An OLAP report that displays information using three dimensions is called an OLAP ________.

A) warehouse
B) dashboard
C) cluster
D) cube

Question 65

Noninteractive analyses ________.

A) use advanced statistical techniques
B) allow users to specify the format of the output
C) use a predetermined structure for their output
D) tend to be unstructured and flexible

Question 66

An OLAP ________ is a characteristic or attribute of a measure.

A) cube
B) dimension
C) dashboard
D) cluster

Question 67

Drilling down into data means ________.

A) changing the format of stored data
B) grouping data into clusters
C) dividing the data into more detail
D) downsizing a database by deleting files

Question 68

________ provides the ability to analyze data using basic operations such as sorting, grouping, calculating, filtering, and formatting in an interactive structure.

A) OLAP
B) RFM analysis
C) Market basket analysis
D) Regression analysis

Question 69

Regression analysis is used to ________.

A) rank customers according to their purchasing patterns
B) predict future performance
C) identify groups of entities that have similar characteristics
D) perform basic operations

Question 70

A(n)________ analysis analyzes and ranks customers according to their purchasing patterns.

A) regression
B) cluster
C) RFM
D) market basket

Question 71

Which of the following statements is true about RFM analysis?

A) It ranks customers based on their purchasing power.
B) It is a common type of noninteractive report.
C) It uses unsorted data to produce an RFM score.
D) It identifies groups of entities that have similar characteristics.

Question 72

________ analysis determines sales patterns such as products that customers tend to buy together.

A) RFM
B) Cluster
C) Regression
D) Market basket

Question 73

An OLAP measure is a(n)________.

A) characteristic of an OLAP report
B) data item to be processed in an OLAP report
C) attribute of an OLAP report
D) detailed report on a data structure

Question 74

The supermarket from which Robert purchases groceries gives him an RFM score of 115 (R=1; F=1; M=5, on a scale of 1 to 5). Based on this information, which of the following is a valid conclusion?

A) Robert recently made a big purchase at the supermarket.
B) Robert does not shop frequently at the supermarket.
C) Robert has not purchased anything from the supermarket recently.
D) Robert frequently purchases inexpensive items from the supermarket.

Question 75

An RFM score of 555 (R=5; F=5; M=5, on a scale of 1 to 5)assigned to a customer indicates that the customer ________.

A) buys expensive items frequently
B) has not purchased anything recently but buys frequently
C) has not purchased anything recently
D) buys inexpensive items frequently

Question 76

In an RFM analysis, what will be the M score of a customer who spends the least amount of money, when rated on a scale of 1 to 5?

A) 5
B) 1
C) 0
D) 2

Question 77

A retail store wants to identify the types of products that they should bundle together on sale. Which of the following types of analysis would be most suitable for this purpose?

A) market basket
B) RFM
C) cluster
D) OLAP

Question 78

Cluster analysis is an example of a(n)________ process.

A) data mining
B) online analytical
C) reporting
D) visualization

Question 79

Selling related products to customers is called ________.

A) hard-selling
B) down-selling
C) up-selling
D) cross-selling

Question 80

A digital dashboard is a(n)________.

A) electronic input device used in business intelligence systems
B) information system that is used to enter data into databases
C) electronic display that is customized for a particular user
D) digital device in the central processing unit of a BI system