Question 1

Raw data contain useful information that communicates a clear and readily understandable message to the person for whom the data were gathered.

Accepted Answer

Raw data on their own are often complex, unorganized, and difficult to interpret. They need to be processed, analyzed, and visualized to extract meaningful insights and convey a clear message.

Question 2

A data warehouse stores raw data that have been collected from a variety of sources for later use.

Accepted Answer

A data warehouse stores processed and structured data, not raw data, which has been cleaned, integrated, and organized for analysis and reporting purposes.

Question 3

Unsupervised data mining is unethical.

Accepted Answer

Unsupervised data mining refers to the process of discovering patterns in data without the use of a pre-existing model or hypothesis. This process is used to gain insights and information that may not be readily apparent from the data. While unsupervised data mining can uncover new and valuable information, it is not inherently unethical. However, the use of unsupervised data mining techniques can potentially lead to privacy violations, discrimination, and other unethical practices if not conducted ethically and transparently. Therefore, the ethical considerations of unsupervised data mining should be carefully considered before conducting any analysis.

Question 4

The key to sustaining a competitive advantage is using information technology to continuously improve and support the core functions of a business.

Accepted Answer

Information technology can provide a competitive advantage by improving and supporting the core functions of a business such as production, marketing, sales, and customer service. By continuously using IT to improve these functions, businesses can maintain their competitive edge in the market.

Question 5

Data mining often reveals data clusters where three or more database elements occur together.

Accepted Answer

This statement is true. Data mining often identifies data clusters where multiple data points occur together, which can be useful for identifying correlations and patterns in the data.

Question 6

The term data mining refers to the process of discovering unknown patterns and relationships in large amounts of data.

Accepted Answer

Data mining is the process of analyzing and extracting knowledge from large amounts of data, by discovering previously unknown and potentially useful patterns and relationships.

Question 7

Association patterns are also called sequence patterns.

Accepted Answer

Association patterns and sequence patterns are related but distinct concepts in data mining. Association patterns identify sets of items that frequently occur together in a dataset, while sequence patterns focus on identifying sequences of items or events that frequently occur in a particular order.

Question 8

Bar codes and document scanners are common methods of electronically capturing data.

Accepted Answer

Bar codes and document scanners are both commonly used to electronically capture data.

Question 9

The first company to gain first-mover advantage typically benefits from higher profits and larger market share.

Accepted Answer

This is because the company is able to establish brand recognition and customer loyalty before competitors enter the market, giving them a significant advantage in terms of sales and revenue.

Question 10

The two basic methods of capturing information are continuous and periodic.

Accepted Answer

The answer of The two basic methods of capturing information...

Question 11

Data mining typically splits a data set in half,finds patterns in one half,and then tests the validity of those patterns by trying to find them again in the second half of the data set.

Accepted Answer

This is a common approach in data mining, known as "training and testing." One half of the data set is used to train the model and find patterns, while the other half is used to test the model and ensure its accuracy.

Question 12

The two activities necessary to properly secure data and data networks are the use of firewalls and antivirus software.

Accepted Answer

While firewalls and antivirus software are important components of a comprehensive security plan, there are many other activities necessary to properly secure data and data networks such as regular software updates, user education and training, access control, network monitoring, and incident response planning.

Question 13

The first airline that was able to allow passengers to buy their plane tickets and reserve their seats online had first-mover advantage.

Accepted Answer

The statement is true. The first airline to offer online ticket purchasing and seat reservations had a first-mover advantage over competitors who were slower to adopt the technology.

Question 14

The primary difference between raw data and information is meaning to the user.

Accepted Answer

Raw data refers to unprocessed data that lacks context, interpretation or organization and has no meaning to the user. Information, on the other hand, is processed data that has context, relevance, and meaning to the user.

Question 15

Moore's law refers to the prediction that every 18 months,the cost of computing will drop by 50 percent as computer-processing power doubles.

Accepted Answer

Moore's law was first expressed in 1965 by Intel co-founder Gordon Moore and has been largely accurate since then, with slight variations in the rate of progress. It predicts that the number of transistors on a microchip will double every two years, leading to an increase in computing power and a decrease in cost.

Question 16

Pioneering differential refers to the strategic advantage that companies earn by being the first in an industry to use new information technology to substantially lower costs or to differentiate a product or service from competitors.

Accepted Answer

The answer of Pioneering differential refers to the strategic advantage...

Question 17

Information has strategic importance for organizations because it can be used to obtain first-mover advantage and to sustain a competitive advantage once it has been created.

Accepted Answer

Information is a valuable resource for organizations as it can help them to gain insights about the market, customer preferences, and industry trends. By using this information, organizations can make informed decisions and take actions to gain a first-mover advantage, which means being the first company to enter a market or launch a new product. Additionally, having access to valuable information can help organizations to sustain a competitive advantage by continuously innovating and improving their products or services. Therefore, information has strategic importance for organizations.

Question 18

In today's hypercompetitive business environments,capital-that is,money-is still more important than information for business success.

Accepted Answer

While capital is undoubtedly important for business success, the increasing role of technology and information in business operations and decision-making means that information has become equally important, if not more so, than money in many industries. Companies that can effectively collect, analyze, and utilize data have a clear advantage over their competitors. Additionally, businesses can now access various sources of funding such as crowdfunding, venture capital, and angel investors, making capital less of a barrier to success than it once was.

Question 19

According to the resource-based view of information technology,sustainable competitive advantage occurs when information technology adds value,is different across firms,and is difficult to create or acquire.

Accepted Answer

This is the definition of sustainable competitive advantage according to the resource-based view of information technology. It states that for IT to provide sustainable competitive advantage, it must add value, be unique to the firm, and be difficult for other firms to acquire or imitate.

Question 20

Protecting information is the process of ensuring that data are reliably and consistently retrievable in a usable format for authorized users,but no one else.

Accepted Answer

Protecting information involves securing it from unauthorized access, modification, or destruction while ensuring it remains accessible to authorized users. This is done through various measures such as using strong passwords, encryption, access controls, and backups. The ultimate goal is to maintain the confidentiality, integrity, and availability of information.

Quiz 16: Managing Information in a Global World