Question 1

Online transaction processing (OLTP)and online analytical processing (OLAP)are similar MIS strategies used to help with business decision making.What is the primary difference between OLTP and OLAP?
A) OLTP is used at the operational level; OLAP is used at the managerial level.
B) OLTP is used to capture transactional and event data; OLAP is used to manipulate information.
C) OLTP is used to support structured decisions; OLAP is used to support semi-structured decisions.
D) All of these choices

Accepted Answer

Online transaction processing (OLTP)is the capturing of transaction and event information using technology to (1)process the information according to defined business rules, (2)store the information,and (3)update existing information to reflect the new information.It is used at the operational level and to support structured decisions.Online analytical processing (OLAP)is the manipulation of information to create business intelligence in support of strategic decision making.It is used at the managerial level and to support semi-structured decisions.

Question 2

An optimization analysis finds the optimum value for a target variable by repeatedly changing other variables,subject to specified constraints.What can a manager determine by changing revenue and cost variables in an optimization analysis?
A) Calculate the highest potential profits
B) Calculate employee benefit payments
C) Use this as an extension for a digital dashboard
D) Create production schedules

Accepted Answer

An optimization analysis finds the optimum value for a target variable by repeatedly changing other variables,subject to specified constraints.By changing revenue and cost variables in an optimization analysis,managers can calculate the highest potential profits.

Question 3

What are the three primary types of management information systems available to support decision making across the company levels?
A) Transaction processing systems,decision support systems,executive information systems
B) Analytical information,decision support systems,executive information systems
C) Transaction processing systems,drill-down systems,expert systems
D) What-If analysis,sensitivity analysis,goal-seeking analysis

Accepted Answer

The three primary types of management information systems available to support decision making across the company levels are 1)transaction processing systems,2)decision support systems,and 3)executive information systems.

Question 4

Tom Jordan is a manager for a McDonald's restaurant.Many of his key responsibilities include analyzing data and making key decisions for the success of his store.Tom's store has been experiencing decreased sales for breakfast services over the past three months.Tom is unsure why breakfast revenues are down while lunch and dinner revenues remain unchanged.Tom believes that he can drive revenue up by implementing a few different breakfast promotions such as free coffee or hash browns with the purchase of a meal.Tom performs an extensive analysis of how continuous changes in breakfast promotions could impact his daily revenue.What type of DSS analysis is Tom performing?
A) Optimization analysis
B) Sensitivity analysis
C) Transaction analysis
D) Goal-seeking analysis

Accepted Answer

Sensitivity analysis is a special case of What-If analysis,is the study of the impact on other variables when one variable is changed repeatedly.For example,changing revenue in small increments to determine its effects on other variables would help a manager understand the impact of various revenue levels on other decision factors.

Question 5

What is the MIS system that manipulates information to create business intelligence in support of strategic decision making?
A) Online transaction processing (OLTP)
B) Online analytical processing (OLAP)
C) Digital dashboard
D) Visualization

Accepted Answer

Online analytical processing (OLAP)is the manipulation of information to create business intelligence in support of strategic decision making.

Question 6

How does a DSS typically differ from an EIS?
A) EIS requires data from external sources to support unstructured decisions where a DSS typically use internal sources to support semi-structured decisions.
B) DSS typically use external sources and EIS use internal sources to support decisions.
C) A DSS never use external sources.
D) EIS always use internal sources to support structured decisions.

Accepted Answer

A DSS (decision support system)differs from an EIS (executive information system)primarily because EIS require data from external sources to support unstructured decisions where a DSS typically uses internal sources to support semi-structured decisions.

Question 7

What is a common tool that is used to support visualizations and tracks KPIs and CSFs by compiling information from multiple sources?
A) Models
B) Digital dashboards
C) Neural networks
D) Verified graphs

Accepted Answer

Digital dashboards track KPIs and CSFs by compiling information from multiple sources and tailoring it to meet user needs.

Question 8

What is the analysis that works in reverse to What-If and sensitivity analysis by finding the inputs necessary to achieve a goal such as a desired level of output?
A) Solutions based analysis
B) Optimization system
C) Goal-seeking analysis
D) Revenue analysis

Accepted Answer

A goal-seeking analysis works in reverse to What-If and sensitivity analysis,and finds the inputs necessary to achieve a goal such as a desired level of output.

Question 9

A transaction processing system (TPS)is the basic business system that assists operational level analysts when making structured decisions.Which of the following is not an example of a TPS?
A) Target's internal company payroll system
B) Comfort Dental's patient diagnosis system
C) First Bank's overall accounting system
D) Stewart Sport's order entry system

Accepted Answer

A transaction processing system (TPS)is the basic business system that assist operational level analysts make structured decisions.The most common examples of a TPS include 1)a company payroll system,2)an operational accounting system,and 3)an order entry system.Comfort Dental's patient diagnosis system is an example of a DSS or decision support system.

Question 10

Executives of a company deal less with details of the operational activities and deal more with the higher meaningful aggregations of information or "coarser" information.What refers to the level of detail in the model?
A) Drill-down
B) Visualization
C) Granularity
D) Consolidation

Accepted Answer

Granularity refers to the level of detail in the model or the decision-making process.

Question 11

Which of the below does not represent an example of analytical information?
A) Trends and product statistics
B) Unstructured long-term decisions
C) Five year sales report
D) Future: growth projections

Accepted Answer

Examples of analytical information are trends,sales,product statistics,and future growth projections.Managers use analytical information when making important semi-structured decisions.

Question 12

What is the DSS analysis that checks the impact of a change in a variable or assumption on the model?
A) Optimization analysis
B) Goal-seeking analysis
C) Sensitivity analysis
D) What-If analysis

Accepted Answer

A what-if analysis checks the impact of a change in a variable or assumption on the model.

Question 13

Decision making at the executive or strategic level require business intelligence and knowledge to support the uncertainty and complexity of the business.What is a specialized DSS that supports senior-level executives and unstructured decisions requiring judgment,evaluation,and insight?
A) OLTP
B) Executive information system (EIS)
C) Transaction support system (TSS)
D) Decision support system (DSS)

Accepted Answer

An EIS or an Executive information system is a specialized DSS that supports senior-level executives and unstructured,long-term,non-routine decisions requiring judgment,evaluation,and insight.

Question 14

Online transaction processing (OLTP)is the capturing of transaction and event information using technology to _____________.
A) update existing information to reflect the new information
B) store the information
C) process the information according to defined business rules
D) All of these choices

Accepted Answer

Online transaction processing (OLTP)is the capture of transaction and event information using technology to 1)update existing information to reflect the new information,2)store the information,and 3)process the information according to defined business rules.

Question 15

What would managers use to make structured decisions at the operational level?
A) Transactional information
B) Analytical information
C) EIS system
D) Intelligent system

Accepted Answer

Transactional information is the basic business system that serves the operational level (analysts)and assists in making structured decisions.

Question 16

When viewing systems thinking,source documents are the original transaction records.What would the source documents for a medical doctor's payroll system include?
A) Employee time sheets
B) Employee benefit reports
C) Employee wage rates
D) All of these choices

Accepted Answer

When viewing systems thinking,source documents are the original transaction records.Source documents for a medical doctor's payroll system,for example,would include 1)employee time sheets,2)employee benefit reports,and 3)wage rates.

Question 17

What is a graphical display of patterns and complex relationships in large amounts of data?
A) Visualization
B) Model
C) Table
D) Digital spreadsheet

Accepted Answer

Visualizations produce graphical displays of patterns and complex relationships in large amounts of data.

Question 18

Which of the below would create transactional information?
A) Projecting future sales growth
B) Making an airline reservation
C) A semi-structured decision to hire more employees
D) Generating payroll reports

Accepted Answer

Transactional information is created,for example,when customers are purchasing stocks,making an airline reservation,or withdrawing cash from an ATM.

Question 19

What is the flow that a systems thinking approach using a TPS would follow?
A) Streamlining (Input)- CRUD,calculate (process)- reports (output)
B) Source Documents (input)- optimization analysis (process)- (feedback)- (output)
C) Source Documents (input)- CRUD,calculate (process)- reports (output)- (feedback)
D) Selling Documents (input)- cycle time (process)- reports (output)- (feedback)

Accepted Answer

A transaction processing system or TPS is the basic business system that assist operational level analysts make structured decisions.An example of the process of a systems thinking utilizing a TPS follows this flow is 1)source documents (Input),2)CRUD,calculate,summarize (Process),3)reports (Output),and 4)feedback.

Question 20

Which of the below represent the four main DSS analysis techniques outlined in the chapter?
A) What-If analysis,sensitivity analysis,goal-seeking analysis,optimization analysis
B) Workflow analysis,sensitivity analysis,growth analysis,organizational analysis
C) What-If analysis,structured analysis,goal-seeking analysis,optimization analysis
D) What-If analysis,sensitivity analysis,growth analysis,organizational analysis

Accepted Answer

The four main DSS analysis techniques outlined in the chapter are 1)What-If analysis,2)sensitivity analysis,3)goal-seeking analysis,and 4)optimization analysis.

Quiz 2: Decisions Processes: Value Driven Business

Online transaction processing (OLTP) and online analytical processing (OLAP) are similar MIS strategies used to help with business decision making.What is the primary difference between OLTP and OLAP?

An optimization analysis finds the optimum value for a target variable by repeatedly changing other variables,subject to specified constraints.What can a manager determine by changing revenue and cost variables in an optimization analysis?

What are the three primary types of management information systems available to support decision making across the company levels?

What is the MIS system that manipulates information to create business intelligence in support of strategic decision making?

How does a DSS typically differ from an EIS?

What is a common tool that is used to support visualizations and tracks KPIs and CSFs by compiling information from multiple sources?

What is the analysis that works in reverse to What-If and sensitivity analysis by finding the inputs necessary to achieve a goal such as a desired level of output?

A transaction processing system (TPS) is the basic business system that assists operational level analysts when making structured decisions.Which of the following is not an example of a TPS?

Executives of a company deal less with details of the operational activities and deal more with the higher meaningful aggregations of information or "coarser" information.What refers to the level of detail in the model?

Which of the below does not represent an example of analytical information?

What is the DSS analysis that checks the impact of a change in a variable or assumption on the model?

Decision making at the executive or strategic level require business intelligence and knowledge to support the uncertainty and complexity of the business.What is a specialized DSS that supports senior-level executives and unstructured decisions requiring judgment,evaluation,and insight?

Online transaction processing (OLTP) is the capturing of transaction and event information using technology to _____________.

What would managers use to make structured decisions at the operational level?

When viewing systems thinking,source documents are the original transaction records.What would the source documents for a medical doctor's payroll system include?

What is a graphical display of patterns and complex relationships in large amounts of data?

Which of the below would create transactional information?

What is the flow that a systems thinking approach using a TPS would follow?

Which of the below represent the four main DSS analysis techniques outlined in the chapter?