Deck 10: Business Intelligence Systems

Question 1

RFM analysis considers how recently (R)a customer ordered,how frequently (F)they ordered,and how much margin (M)the company made on the orders.

Answer 1

False

Question 2

A business intelligence (BI)application is a computer program that implements the logic of a particular procedure or process.

Answer 2

False

Question 3

Reporting tools are programs that read data from a variety of sources,process that data,format it into structured reports,and deliver those reports to the users who need them.

Answer 3

True

Question 4

The total contents of the Library of Congress could be stored in one terabyte.

Question 5

OLAP provides the ability to sum,count,average,and perform other simple arithmetic operations on groups of data.

Question 6

OLAP stands for Organizational Lead Analysis Program and is used extensively to generate reports for marketing and sales.

Question 7

Total sales,average sales,and average cost are examples of dimensions used in an OLAP report.

Question 8

In an OLAP report,a measure is the data item of interest.

Question 9

An OLAP cube and an OLAP report are the same thing.

Question 10

Reporting tools are used to address questions like: What has happened in the past? What is the current situation? How does the current situation compare to the past?

Question 11

RFM can be a useful tool to determine who your best customers are,and who hasn't been into the store in a while.

Question 12

Knowledge-management tools differ from reporting and data-mining tools because the source of their data is recorded facts and figures.

Question 13

A drawback associated with OLAP reports is their inability to let users drill down into the data.

Question 14

A business intelligence system is designed to provide the right information,to the right user,at the right time.

Question 15

In most cases,data-mining tools are used to make assessments.

Question 16

Data-mining tools use heuristic techniques to process data to find hidden patterns and relationships among the data.

Question 17

Reporting tools tend to use simpler operations while data-mining tends to use more sophisticated statistical techniques.

Question 18

Tools used to mine business data in order to find meaningful patterns are called business insight (BI)tools.

Question 19

A terabyte is larger than a petabyte in terms of computer storage.

Question 20

Reporting tools produce information from data using five basic operations: sorting,grouping,calculating,filtering,and formatting.

Question 21

Market-basket analysis is based on an "If...then..." analysis.

Question 22

Lift shows how much the base probability increases or decreases when other products are purchased.

Question 23

Decision trees are good for statistical analysis because they will present the user with the correct answer.

Question 24

Neural networks are a popular unsupervised data-mining technique.

Question 25

In market-basket terminology,a conditional probability estimate of purchase is called the lift.

Question 26

With unsupervised data mining,analysts do not create a model or hypothesis before running the analysis.

Question 27

KDD is used as a synonym for data mining.

Question 28

With supervised data mining,the parameters of the model are known prior to the analysis.

Question 29

A market-basket analysis is a data-mining technique used for determining sales patterns.

Question 30

A neural network is the computer equivalent of the human brain.

Question 31

Data mining is the application of statistical techniques to find patterns and relationships among data for classification and prediction.

Question 32

MOLAP and DOLAP are examples of OLAP server schemes.

Question 33

In supervised data mining,a model is developed prior to to the analysis.

Question 34

DBMS servers are used to create OLAP reports from very large databases.

Question 35

Decision trees are easy to understand but very difficult to implement.

Question 36

Regression analysis is an example of an unsupervised data mining analysis.

Question 37

Decision-tree analyses are an unsupervised data-mining technique because data miners develop a model prior to the analysis.

Question 38

In marketing transactions,the fact that customers who buy product X also buy product Y creates a cross-selling opportunity.

Question 39

Cluster analysis is used to identify groups of entities that have similar characteristics.

Question 40

Normally,for performance and security reasons the OLAP server and the DBMS run on separate servers.

Question 41

A value of 999-999-9999 for a U.S.phone number is an example of dirty data.

Question 42

Operational data is designed to support fast transaction processing and might need to be reformatted to be useful for BI applications.Data warehouses help overcome this problem.

Question 43

Knowledge management applications are concerned with minimizing content use.

Question 44

In a generic business intelligence system,a data source is processed by a BI tool to produce application results.

Question 45

Alerts are messages transmitted via email or phone that notify a user that a particular condition has occurred.

Question 46

A file of order totals cannot be used for a market-basket analysis.This is a problem associated with the data being too fine.

Question 47

Because of a phenomenon called the curse of measurability,the more attributes there are,the easier it is to build a model that fits the sample data but that is worthless as a predictor.

Question 48

Wrong granularity implies that data could be too fine or too coarse.

Question 49

A data warehouse is a data collection,smaller than the data mart,that addresses a particular component or functional area of the business.

Question 50

Expert systems attempt to capture human expertise and put it into a format that can be used by non-experts.

Question 51

Real Simple Syndication (RSS)refers to the single universal standard for subscribing to content sources.

Question 52

Semantic security concerns the unintended release of protected information through the release of a combination of reports or documents that are independently not protected.

Question 53

Data marts are also referred to as data warehouses.

Question 54

Expert systems have been unable to live up to the high expectations set by their name.

Question 55

Knowledge management enables employees to leverage organizational knowledge to work more efficiently.

Question 56

Metadata describes the data.

Question 57

Indexing is the single most important content function in KM applications.

Question 58

Though they are difficult and expensive to develop,the low maintenance cost of expert systems makes them an attractive business proposition.

Question 59

Portal servers are like Web servers except that they do not have a customizable user interface.

Question 60

Users of data marts need not have the data management expertise that data warehouse employees have.

Question 61

________ tools are programs that read data from a variety of sources,process that data,format it into structured reports,and deliver those reports to the users who need them.

A)Data-mining
B)Knowledge-management
C)Reporting
D)XML

Question 62

________ involves searching for patterns and relationships among data.

A)Reporting
B)Data warehousing
C)Knowledge management
D)Data mining

Question 63

Knowledge-management tools differ from reporting and data-mining tools because the source of their data is ________.

A)employee knowledge
B)government data
C)recorded facts and figures
D)customer focus groups

Question 64

Which of the following can store the maximum amount of data?

A)1 exabyte (EB)
B)1 gigabyte (GB)
C)1 terabyte (TB)
D)1 petabyte (PB)

Question 65

What are reporting tools primarily used for?

A)assessment
B)predictions
C)testing
D)data mining

Question 66

Which basic operation structures a report so that it would be easier to understand?

A)transposing
B)grouping
C)calculating
D)formatting

Question 67

________ tools are used to store employee knowledge and to make that knowledge available to employees,customers,vendors,auditors,and others who need it.

A)Reporting
B)Data-mining
C)Knowledge-management
D)Competitive intelligence

Question 68

Which of the following is an example of a question that a reporting tool will help address?

A)What is the probability that a customer is likely to respond positively to a promotion?
B)How does the current situation compare to the past?
C)Will a given customer default on a loan?
D)What is the likelihood of an event happening?

Question 69

RFM analysis ranks customers by considering the recency,frequency,and ________ of their orders.

A)dollar amount
B)character
C)capacity
D)timeliness

Question 70

In most cases,data-mining tools are used to make ________.

A)repositories
B)transitions
C)predictions
D)assessments

Question 71

Which of the following is a description of a business intelligence (BI)application?

A)It implements the logic of a particular procedure or process.
B)It is the use of a tool on a particular type of data for a particular purpose.
C)It is an information system having all five components that delivers the results to users who need those results.
D)It stores employee knowledge and makes it available to employees,customers,and others who need it.

Question 72

________ analysis is a way of analyzing and ranking customers according to their purchasing patterns.

A)TQM
B)CRM
C)Market-basket
D)RFM

Question 73

All of the following are basic operations used by reporting tools to produce information from data except ________.

A)sorting
B)grouping
C)calculating
D)transposing

Question 74

Which of the following is an example of question that data-mining will help address?

A)Will a given customer default on a loan?
B)What has happened in the last two years?
C)What is the current situation?
D)How does the current situation compare to the situation one year ago?

Question 75

Semantic security is equally serious and poses tougher problems than physical security.

Question 76

Among the following,what is the best way to distinguish between reporting tools and data-mining tools?

A)type of data used
B)difference in input information
C)objective of using these tools
D)complexity of techniques used

Question 77

Five ________ can store all the words ever spoken by human beings.

A)gigabytes
B)terabytes
C)petabytes
D)exabytes

Question 78

An RFM score of ________ probably means that this customer has taken their business elsewhere and is probably not worth spending too many marketing resources on.

A)121
B)231
C)555
D)111

Question 79

Which of the following is used by businesses to process data in order to produce patterns,relationships,and other forms of information and to deliver that information on a timely basis to users who need it?

A)logistics management tools
B)business intelligence tools
C)competitive intelligence tools
D)electronic data interchange

Question 80

Which of the following is the most accurate description of business intelligence?

A)information used to organize routine business operations
B)information relating to key business processes
C)information containing patterns,relationships,and trends
D)information concerning key competitors in the industry