Deck 17: Managing Information

Question 1

Kandriva, a fitness equipment manufacturer, runs a small-scale customer service center with thirty customer service representatives. The company invests around $5000 annually toward repair and maintenance of telephones and telephone lines catering to its customer service center. In this scenario, it is evident that Kandriva incurs _____.

A) communication cost
B) processing cost
C) storage cost
D) retrieval cost

Answer 1

A

Question 2

Which of the following is a web-based tool that provides secure off-site access to data and programs?

A) A decision support system
B) Electronic data interchange
C) Secure sockets layer encryption
D) An executive information system

Answer 2

C

Question 3

One of the most common misunderstandings about information is that it is easy and cheap to retrieve after a company has it.

Answer 3

True

Question 4

Sumptuous Supermarket has large amounts of data about its customers. To understand customer buying behavior, the company uses a process that automatically discovers connections in the collected data. Through this process, the company learns that people who buy carbonated drinks, typically also buy a pack of salted snacks. As a result, the manager of the supermarket places carbonated drinks near the shelf with chips and pretzels. In this scenario, Sumptuous Supermarket has most likely used _____.

A) data integration
B) data mining
C) bar coding
D) radio frequency tagging

Question 5

A group of programmers created a website on the Internet. Whenever any user clicked on the website address, a program that erases browsing history is launched. In this scenario, the programmers created a _____.

A) predictive pattern
B) virus
C) firewall
D) data cluster

Question 6

Data mining is the process of discovering patterns and relationships in large amounts of data.

Question 7

A company that has gained first-mover advantage is immune to competition.

Question 8

Most expert systems work by using a collection of "if-then" rules to sort through information and recommend a course of action.

Question 9

Intranets allow companies to exchange information and conduct transactions with outsiders by providing them direct, web-based access to authorized parts of a company's information system.

Question 10

Which of the following statements is true of electronic data interchange (EDI)?

A) It helps managers understand problems and potential solutions by acquiring and analyzing information with sophisticated models and tools.
B) It allows companies to exchange information by purposely providing outsiders with direct access to authorized parts of the company's intranet.
C) It works only if the data in different companies' computer, database, and network systems adheres to a particular set of standards for data structure and processing.
D) It requires human inputs to carry out the interactions between the different purchasing and ordering applications in companies.

Question 11

A group of investigators are investigating a recent airplane crash in Lucitona. The investigators discovered debris of the aircraft, which provided them the information regarding the nature of the plane crash. Because the flight data recorder (a device that preserves the recent history of the flight) of the airplane was completely destroyed in the plane crash, the investigators were unable to determine what exactly went wrong. The absence of the flight data recorder led the investigators to call off the investigation. It can be concluded that the investigation was called off because:

A) the information at disposal was inaccurate.
B) the information at disposal was incomplete.
C) the information at disposal was irrelevant.
D) the information at disposal was untimely.

Question 12

Expert systems do not permit nonexpert employees to draw on the expert knowledge base to make decisions.

Question 13

Data and information are the same as knowledge.

Question 14

Rectang Corp., an e-commerce firm, recently adopted a new supply chain management system. By virtue of the new system, the company is able to deliver products to customers in a shorter period of time than other e-commerce companies. The supply chain management system may become outdated in the near future; however, it has presently led Rectang Corp. to becoming the industry leader. In the given scenario, Rectang Corp. has achieved _____.

A) first-mover advantage
B) competitive inertia
C) quality assurance
D) vertical integration

Question 15

The term__________refers to facts and figures that are useless unless they have meaning.

A) statistic
B) information
C) raw data
D) census data

Question 16

The key to sustaining a competitive advantage is using faster computers, more memory, and larger hard drives.

Question 17

In the context of unsupervised data mining, association patterns help identify database elements that are different.

Question 18

Kanska, an application development firm, received a contract to develop a mobile application for a company. The brief mentioned that the application should enable employees to share up to 30 files at a time from anywhere within the company. After delivering the application, the client informed Kanska that its employees were not able to share more than 20 files at a time. After analyzing the situation, Kanska replied that the application could only transfer files with a total size of up to 2 gigabytes. The application was built with regard to the number of files that can be sent and not built according to the size of each file. In this scenario, it is likely that the client faced the issues with the application because the information it provided to Kanska was _____.

A) untimely
B) irrelevant
C) incomplete
D) inaccurate

Question 19

The goal of executive information systems is to provide accurate, complete, relevant, and timely information to managers.

Question 20

Powell Motors, an automobile manufacturing company, spent $30 million to purchase new servers to archive all its data safely. In this scenario, the cost incurred by Powell Motors is an example of _____.

A) acquisition cost
B) processing cost
C) storage cost
D) retrieval cost

Question 21

_____ usually begins with the user telling the data mining software to look and test for specific patterns and relationships in a data set.

A) Undirected data mining
B) Descriptive data mining
C) Supervised data mining
D) Unsupervised data mining

Question 22

Kamara Jobs, a recruitment company, decides to launch its own global online application. It paid $200,000 to obtain the proven technology required to launch this application from an information technology firm. In the context of the costs of useful information, Kamara Jobs incurred _____.

A) processing cost
B) retrieval cost
C) acquisition cost
D) storage cost

Question 23

After analyzing the data on cab services in Lucitona, the Transport Authority of Lucitona discovered that there was an 85 percent increase in the number of people using cab services on rainy days. In the context of data mining, the Transport Authority of Lucitona discovered a(n) _____.

A) affinity pattern
B) data cluster pattern
C) sequential pattern
D) extrapolative pattern

Question 24

In _____, the different purchasing and ordering applications in companies interact automatically without any human input.

A) electronic data interchange
B) a corporate portal
C) collaborative decision-making software
D) an intranet

Question 25

A(n)__________converts printed text and pictures into digital images.

A) bar code reader
B) electronic scanner
C) autonomous recording unit
D) perceptual filter

Question 26

In the context of accessing and sharing information,__________allow company managers and employees to use a web browser to gain access to customized company information and to complete specialized transactions.

A) extranets
B) firewalls
C) corporate portals
D) decision support systems

Question 27

Which of the following statements is true of radio frequency identification (RFID) tags?

A) They represent numerical data of a product by varying the thickness and pattern of vertical bars printed on the product's packaging.
B) They require direct line-of-sight scanning for the radio waves to scan a product perfectly.
C) They require a reader that tunes into a specific frequency to determine the number and location of products.
D) They are installed in a handheld or pen-type scanner that reads and records data instantly.

Question 28

A(n) _____ allows companies to exchange information and conduct transactions by purposely providing outsiders with direct, password-protected, web browser-based access to authorized parts of a company's information system.

A) extranet
B) corporate portal
C) executive information system
D) intraweb

Question 29

Dextron Customs, a custom automobile shop, received an order for a customized motorcycle. The client specified that it needed a motorcycle with an 800 cc engine that delivered at least 70 PS power. Since the client did not provide details about the number of cylinders required in the engine, Dextron Customs chose to include a two-cylinder engine. Although the motorcycle was made as per the specifications provided by the client, the client was not satisfied because it featured a two-cylinder engine instead of a four-cylinder engine. In this scenario, the most likely reason for the client's dissatisfaction with the product is that the:

A) information provided to Dextron Customs was incomplete.
B) information provided to Dextron Customs was irrelevant.
C) information provided to Dextron Customs was inestimable.
D) information provided to Dextron Customs was inaccurate.

Question 30

The two critical steps required to make sure that data can be accessed by approved users and no one else are:

A) authentication and authorization.
B) empowerment and authorization.
C) empowerment and encryption.
D) authentication and encryption.

Question 31

The two basic requirements for a good electronic scanner are:

A) a radio frequency identification tag and digital printing software.
B) a document feeder and optical character recognition software.
C) a virtual private network and a radio wave transmitter.
D) a bar code imager and an executive information system.

Question 32

Omaco, a technological firm, recently invested $20 million to design a data system that can access the already-stored information in the company servers at a higher speed than previous data systems. In this scenario, the money invested in the data system can be considered to be_____.

A) acquisition cost
B) processing cost
C) retrieval cost
D) storage cost

Question 33

InfoQEN received an order to supply Wi-Fi routers for a company. The brief mentioned that the router should connect up to 10 devices simultaneously. After delivery, the client informed InfoQEN that the devices were not connecting to the router. After analyzing the situation, InfoQEN replied that the router could cover devices only up to a range of 10 meters. The router that was supplied was built with regard to the number of devices to be connected and not built considering the possible distance between the devices and the router (in accordance with the client's wishes). In this scenario, the most likely reason for the client's problem is:

A) untimely information provided to InfoQEN.
B) irrelevant information provided to InfoQEN.
C) incomplete information provided to InfoQEN.
D) inestimable information provided to InfoQEN.

Question 34

A firm can establish a sustainable competitive advantage over competitors if:

A) the firm has access to the same information technology as its competitors.
B) the firm focuses solely on productivity rather than quality and service.
C) the firm uses information technology to continuously improve the core functions of its business.
D) there is a high potential for competing firms to create or buy the firm's information technology.

Question 35

To manage its inventories efficiently, KC Mart, a supermarket, enters into a five-year contract with Ziff Corp., an information technology firm. As per the contract, KC Mart has to pay $125,000 per year to Ziff Corp. in exchange for the information regarding consumer purchase behaviors. In the given scenario, the cost that KC Mart has to incur is the _____.

A) processing cost
B) acquisition cost
C) retrieval cost
D) storage cost

Question 36

A(n)__________stores huge amounts of data that have been prepared for data mining analysis by being cleaned of errors and redundancy.

A) operational data store
B) data warehouse
C) data lake
D) master data store

Question 37

Cosmo Techno, a new technology firm, invested $50,000 to obtain high-speed Internet services for fast and efficient transmission of information across its branches. In this scenario, the investment cost incurred by Cosmo Techno is an example of _____.

A) storage cost
B) processing cost
C) communication cost
D) retrieval cost

Question 38

Magnira Corp., a small-scale e-learning firm, recently bought a three-year license of a cloud-based software. The software provides email services and social networking services on a secure platform. In this scenario, it is evident that Magnira Corp. has incurred _____.

A) communication cost
B) acquisition cost
C) processing cost
D) retrieval cost

Question 39

Which of the following statements is true of intranets?

A) Companies typically use intranets to replace paper forms with online forms.
B) They are evolving to include standardized email accounts.
C) Companies typically use intranets to exchange information and conduct transactions.
D) They are a hybrid of corporate portals and executive information systems.

Question 40

Fuine Corp., a multinational corporation, has spent $1 billion on a new data center that allows the firm to manage and transform raw data into useful information at a very fast speed. This enables the smooth functioning of the firm's operations. In this case, the cost that Fuine Corp. incurs is an example of _____.

A) processing cost
B) retrieval cost
C) acquisition cost
D) communication cost

Question 41

ABD Tech has invested $20 million to install business intelligence software (BIS) at all of its branches across the globe so that it can access stored information in its servers for business analysis and decision making purposes. In this scenario, the cost incurred by ABD Tech is an example of _____.

A) acquisition cost
B) processing cost
C) storage cost
D) retrieval cost

Question 42

Cameron Mart conducted a survey to determine the number of shopping baskets required for its supermarket to function in a smooth manner. The survey required customers to provide data regarding their most frequently purchased items, the quality of service provided by the supermarket's staff, and the ambience of the supermarket. However, Cameron Mart failed to determine the number of shopping baskets required on a daily basis. This is because the information provided in the survey was _____.

A) inestimable
B) inaccurate
C) irrelevant
D) untimely

Question 43

Accel Techs, an information technology firm, recently invested $50 million to construct a data center that can keep all its data securely. In this scenario, the cost incurred by Accel Techs is an example of _____.

A) acquisition cost
B) storage cost
C) processing cost
D) retrieval cost

Question 44

A decision support system (DSS):

A) speeds up and simplifies the acquisition of information.
B) helps replace managerial decision making in a company.
C) is designed to help managers deal with specific kinds of problems.
D) is a hybrid of an executive information system and an intranet.

Question 45

Which of the following is a difference between an executive information system (EIS) and a decision support system (DSS)?

A) Unlike an EIS, a DSS speeds up and simplifies the acquisition of information.
B) Unlike an EIS program, a DSS program is broad in scope.
C) Unlike a DSS program, an EIS program permits managers to retrieve all kinds of information about a company.
D) Unlike a DSS, an EIS helps managers understand problems by acquiring and analyzing information with sophisticated tools.

Question 46

Oreva, a multinational corporation, pays $100,000 per year to an information technology firm to archive and secure all of its data into the information technology firm's cloud platform. In this scenario, the cost incurred by Oreva is an example of _____.

A) storage cost
B) processing cost
C) acquisition cost
D) retrieval cost

Question 47

Estelle Inc., a manufacturer of stationery products, decides to supply free stationery box sets to all the schoolgoing children in the town of Belwick. The company asks the local authorities to provide information about the number of schoolgoing children in the town. However, during the delivery of the boxes, Estelle Inc. realizes that it is short of approximately 100 boxes. If Estelle Inc. manufactured the exact number of boxes stated by the local authorities, it can be concluded that the information provided by the local authorities was _____.

A) inaccurate
B) incomplete
C) irrelevant
D) untimely

Question 48

Colbert Solutions, an electronic equipment manufacturer, recently manufactured a new digital soil moisture meter for the farmers in Lucitona. The equipment measures the moisture content in soil and also states the amount of water that needs to be added to the soil. After collecting the readings from the equipment, the farmers added the exact amount of water indicated by the meter; however, this led to waterlogging-saturation of soil with water. It can be concluded that the information provided by the digital soil moisture meter was _____.

A) incomplete
B) inaccurate
C) irrelevant
D) untimely

Question 49

Which of the following statements defines storage cost?

A) It is the cost of obtaining data that an organization does not have.
B) It is the cost of transforming raw data into meaningful information.
C) It is the cost of physically or electronically archiving information for later use.
D) It is the cost of transmitting information from one place to another.

Question 50

Allied Corp., a multinational corporation, has spent $500 million on a new data center that allows the firm to transform raw data into useful information at a very high speed. This enables the smooth functioning of the firm's operations. In this case, the cost that Allied Corp. incurs is an example of _____.

A) retrieval cost
B) processing cost
C) acquisition cost
D) communication cost

Question 51

Adam ordered a 15.6" laptop from an e-commerce website. After the delivery of the laptop, Adam discovered that the laptop didn't have the same specifications as mentioned in the website. Adam asked for a refund, and the e-commerce company had to bear all the shipping charges. In this scenario, the e-commerce company incurred losses because the information provided on the website was _____.

A) inaccurate
B) irrelevant
C) untimely
D) incomplete

Question 52

Global Networcks has processed and archived a large amount of data on its servers. Due to technical faults in its servers, it could not access the data. The company had to pay $300,000 to external technicians to regain access to its data. The cost incurred by Global Networcks is an example of _____.

A) acquisition cost
B) processing cost
C) storage cost
D) retrieval cost

Question 53

The three kinds of information technology used by officials, managers, and workers inside a company to access and share information are:

A) executive information systems, portals, and intranets.
B) local area networks, extranets, and management control systems.
C) electronic data interchange, web services, and extranets.
D) expert systems, optical character recognition software, and virtual private networks.

Question 54

Gamaz, a video games developer, collects data regarding consumer purchase behaviors, consumer preferences, and product searches. It provides these data to ASZ Analytics. Gamaz pays $100,000 per transaction to ASZ Analytics in exchange for complete information regarding market analytics and sales trends based on the data provided by Gamaz. In the given scenario, Gamaz incurs _____.

A) processing cost
B) retrieval cost
C) acquisition cost
D) communication cost

Question 55

Chenrezic Music Stores, a chain of musical instrument stores, is trying to improve its customer service. While examining its checkout data, it learned that people who buy guitar covers also buy guitar straps and vice versa. In this scenario, the use of data mining to find better ways to improve customer service has also led to the discovery of a(n) _____.

A) affinity pattern
B) sequential pattern
C) data cluster pattern
D) extrapolative pattern

Question 56

Which of the following statements is true of affinity patterns?

A) They help identify database elements that are different.
B) They occur when two or more database elements tend to occur together in a significant way.
C) They can solely be identified through supervised data mining.
D) They occur when three or more database elements occur together in a significant pattern.

Question 57

By analyzing ticket sales, the managers of a soccer stadium discovered that sales increased by almost 80 percent in the seasons it held an open house prior to the opening game and allowed people to view the game from the box seats. In the context of data mining, the management discovered a(n) _____.

A) affinity pattern
B) sequential pattern
C) data cluster pattern
D) extrapolative pattern

Question 58

Which of the following is software that encrypts Internet data at both ends of the data transmission process?

A) Optical character recognition software
B) A virtual private network
C) An executive information system
D) A decision support system

Question 59

Smooth Tide, a surfboard manufacturer, recently received an order to manufacture 30 identical surfboards made of aluminum alloy. During the course of the project, Smooth Tide received a brief to make 14 of the surfboards using aluminum alloy and the rest using carbon fiber. Although the brief from the client was sent before Smooth Tides could start working on the project, the delivery was made after a two week delay. Since Smooth Tide had almost finished the production of the base of the surfboards using aluminum alloy, modifying the order was not feasible. The reason behind this problem is the _____ information provided by the client to Smooth Tide.

A) untimely
B) irrelevant
C) inestimable
D) incomplete

Question 60

Windsor Corp., a technology firm, has an internal search engine that helps employees find answers to queries. The search engine provides results depending on the preferences of the employees. These preferences are automatically learned as the employees continue to use the search engine. The search engine is maintained by an expensive data management system. The company allocates half its budget for the maintenance of the data management system. In this scenario, the cost incurred by Windsor Corp. is an example of _____.

A) processing cost
B) retrieval cost
C) acquisition cost
D) communication cost

Question 61

Brenda bought an automatic vegetable chopper from a local retail store. After a month of use, the vegetable chopper stopped working. She sent an email to the customer service department of the store describing the details of the problem. The store sent a technician to Brenda's house the next day to address the issue. The technician realized that the repair tool that he brought with him was not compatible with the vegetable chopper. On examining the appliance, the technician discovered that the model number of the vegetable chopper was different from what was stated in the complaint email sent by Brenda. In this scenario, it is likely that:

A) the information provided by Brenda was untimely.
B) the information provided by Brenda was irrelevant.
C) the information provided by Brenda was inaccurate.
D) the information provided by Brenda was incomplete.

Question 62

While unlocking his smartphone, Dave was prompted for his password. He had, however, forgotten his password and hence was not able to access his smartphone. By asking for the password, the smartphone is _____ Dave.

A) acknowledging
B) authorizing
C) decrypting
D) authenticating

Question 63

Soundwave Communication Services has processed and archived a large amount of data on its servers. However, due to a technical fault in its servers, it is unable to access the information. It had to spend a large sum of money to regain access to the information. In this scenario, the cost borne by Soundwave Communication Services is an example of _____.

A) acquisition cost
B) processing cost
C) storage cost
D) retrieval cost

Question 64

__________can be used to convert digitized documents into ASCII (American Standard Code for Information Interchange) text that can be searched, read, and edited by word processing and other kinds of software.

A) Electronic bar scanners
B) Radio frequency analog software
C) Optical character recognition software
D) Electromagnetic wave imagers

Question 65

Alex Timbers, a wood supplier, receives an order of 10 wooden logs from a furniture manufacturing company. The client brief mentioned that the logs should be made of teak wood and be identically sized. After receiving the order, the quality specialist of the furniture manufacturer observed that the logs were too big to be used for building furniture. In this scenario, it is likely that the information provided by the furniture manufacturing company to Alex Timbers was _____.

A) untimely
B) irrelevant
C) inaccurate
D) incomplete

Question 66

TimTam Steel, a steel manufacturing company, recently adopted a new supply chain management system. By virtue of the new system, the company is able to acquire raw materials from suppliers in a shorter period of time than its competitors. The supply chain management system may become outdated in the near future; however, it has presently drastically reduced costs associated with material procurement for TimTam Steel. In the given scenario, TimTam Steel has achieved _____.

A) first-mover advantage
B) competitive inertia
C) vertical integration
D) quality assurance

Question 67

_____ is the prediction that about every two years, computer processing power would double and its cost would drop by 50 percent.

A) Moore's law
B) Amdahl's law
C) Metcalfe's law
D) Haitz's law

Question 68

Skoot, an e-commerce startup company, recently paid $300,000 to Widget Corp., a company that provides Internet services and products including cloud computing and online searches, to gain access to the data regarding online product searches. In the context of the costs of useful information, it can be concluded that Skoot incurred _____.

A) processing cost
B) retrieval cost
C) storage cost
D) acquisition cost

Question 69

Unidice, an information technology firm, recently installed a new data system that provides seamless access to data. This data system has a higher storage capacity and processing speed than other data systems available in the market. Although the data system can be acquired in the future by other companies, it has presently enabled Unidice to process its data faster and in a more economical manner than its competitors. It is evident that Unidice has achieved _____.

A) competitive inertia
B) first-mover advantage
C) vertical integration
D) quality assurance

Question 70

Verdure Westerns, a retailer, recently employed a unique data management system that automatically transfers order information to the relevant vendor. This system enables the company to smoothly convey information without any manual effort, thereby reducing the labor costs of the company. By employing this new data management system, Verdure Westerns has most likely achieved _____.

A) competitive inertia
B) strategic dissonance
C) first-mover advantage
D) second-mover advantage

Question 71

DizMart, a supermarket, is trying to improve the sales of its in-house packaged oats. While examining checkout data, DizMart learned that people who buy packaged oats also buy packaged milk. In this scenario, the use of data mining to find ways to improve sales of packaged oats also led to the discovery of a(n) _____.

A) sequential pattern
B) affinity pattern
C) data cluster pattern
D) extrapolative pattern

Question 72

Which of the following statements is true of knowledge?

A) It is similar to data and information.
B) It consists solely of facts and figures.
C) It is the understanding that one gains from information.
D) It is easier to acquire than data and information.

Question 73

Lailey Tech, a global customer service provider, spent $250 million on a new data center to keep its data safe at a single location. In this scenario, the cost that Lailey Tech incurred is an example of _____.

A) acquisition cost
B) processing cost
C) storage cost
D) retrieval cost

Question 74

Zuze, an information technology firm, recently developed a data compression system. By virtue of this system, the company can compress and store more data in its cloud than any of its competitors, without affecting the quality of the data. Although the data compression system can be acquired by other companies in the future, it has presently enabled Zuze to compress and store its data in a more economical manner than its competitors. It is evident that Zuze has achieved _____.

A) competitive inertia
B) organizational agility
C) vertical integration
D) first-mover advantage

Question 75

Matt goes to an Internet café and tries to access his emails. The email client asks Matt to enter his email address along with the password associated with it. By asking for the email address and the password, the email client is _____ Matt.

A) authenticating
B) authorizing
C) decrypting
D) acknowledging

Question 76

__________transforms data into complex, scrambled digital codes that can be decrypted only by authorized users who possess unique decryption keys.

A) Data encryption
B) Authorization
C) Data decoding
D) Authentication

Question 77

Cold Stone, a floor tile manufacturing company, pays $100,000 per year to a real estate firm to obtain information regarding construction companies (potential clients) with new and upcoming projects. In the context of the costs of useful information, it can be concluded that Cold Stone incurred _____.

A) processing cost
B) acquisition cost
C) retrieval cost
D) storage cost

Question 78

One-Stop, a national bank, conducted a survey on how long a customer usually has to wait at its bank. According to the survey, on an average, customers waited five to ten minutes in the queue to deposit their cash into a deposit machine. Based on the survey results, the bank decided to add five more deposit machines. A month later, the management realized that the bank had more machines than it required. Which of the following is most likely the reason for the bank to add more machines than required?

A) The information provided by the survey was incomplete.
B) The information provided by the survey was irrelevant.
C) The information provided by the survey was inaccurate.
D) The information provided by the survey was inestimable.

Question 79

In the context of useful information, _____ transforms stored, unstructured data in real time into meaningful information for business analysis and decision making.

A) business intelligence software
B) optical character recognition software
C) an executive information system
D) a virtual private network

Question 80

In the context of data mining,__________occur when two or more database elements tend to occur together in a significant way.

A) association patterns
B) data clusters
C) time series
D) predictive patterns