Question 1

When middles look across an organization to ensure that project priorities reflect the needs of the entire business,what is their main concern?
A) that their proprietary BI methods are protected from industrial espionage
B) that additional information available through an enterprise data warehouse should assist in decision making
C) that a project does not just serve to sub-optimize one area over others
D) that return on investment (ROI) and total cost of ownership justify the cost-benefit ratio

Accepted Answer

When middles look across an organization to ensure that project priorities reflect the needs of the entire business, their main concern is that a project does not just serve to sub-optimize one area over others. They want to make sure that the project benefits the entire organization and not just one specific department or area.

Question 2

The very design that makes an OLTP system efficient for transaction processing makes it inefficient for what?
A) end-user ad hoc reports, queries, and analysis
B) transaction processing systems that constantly update operational databases
C) the collection of reputable sources of intelligence
D) transactions such as ATM withdrawals, where we need to reduce a bank balance accordingly

Accepted Answer

OLTP systems are designed for efficient transaction processing, which prioritizes consistency, accuracy, and reliability of data. This design does not prioritize the ease of ad hoc reporting or analysis, which relies on different data structures and processing. OLTP systems are optimized for data retrieval for individual transactions, whereas analysis systems may need to retrieve and analyze large data sets across multiple periods to generate meaningful insights.

Question 3

In answering the question "Which customers are most likely to click on my online ads and purchase my goods?" you are most likely to use which of the following analytic applications?
A) customer profitability
B) propensity to buy
C) customer attrition.
D) channel optimization

Accepted Answer

The analytic application that best addresses the question of identifying customers most likely to click on online ads and purchase goods is propensity to buy. This application uses data analysis techniques to predict which customers are most likely to make a purchase based on their past behaviors and characteristics. Customer profitability analyzes the profitability of individual customers, not their likelihood to click on an ad. Customer attrition predicts which customers are likely to leave a company. Channel optimization analyzes the best channels for delivering marketing campaigns, not the individual customer's likelihood to purchase.

Question 4

Which of the following is NOT an example that falls within the four major categories of business environment factors for today's organizations?
A) globalization
B) increased pool of customers
C) fewer government regulations
D) increased competition

Accepted Answer

The four major categories of business environment factors for today's organizations are typically considered to be globalization, technological advancements, societal trends, and competitive forces. Option C, fewer government regulations, does not fit into any of these categories.

Question 5

Business intelligence (BI)can be characterized as a transformation of
A) data to information to decisions to actions.
B) Big Data to data to information to decisions.
C) actions to decisions to feedback to information.
D) data to processing to information to actions.

Accepted Answer

Business intelligence involves transforming raw data into meaningful and actionable insights that inform decision-making and guide actions. This process starts with data, which is transformed into information through analysis and interpretation. This information is then used to make informed decisions, which ultimately result in actions being taken to achieve business goals. Therefore, the correct characterization of BI is that it involves the transformation of data into information, which leads to decisions and ultimately actions. Option A captures this process accurately. Option B is incorrect as it suggests that Big Data is the starting point of BI, while BI can work with any data set. Option C is not accurate as feedback comes after actions have been taken, whereas BI is used to guide actions. Option D is also incorrect as it suggests that processing is a stage in BI, when in fact, it is a part of the transformation process from data to information.

Question 6

What can the BI users in an organization help guide and direct?
A) how to implement and deploy a BI initiative that can be lengthy, expensive, and failure prone
B) how the DW is structured and the types of BI tools and other supporting software that are needed
C) how to decompose the planning and execution into business, organization, functionality, and infrastructure components
D) how the DW is structured and the costs and the appreciation for different classes of potential users

Accepted Answer

BI users can provide insights into how the data warehouse (DW) should be structured and the types of BI tools and supporting software needed, as they are the end-users who will interact with these systems.

Question 7

Which of the following statements about Big Data is true?
A) Data chunks are stored in different locations on one computer.
B) Hadoop is a type of processor used to process Big Data applications.
C) MapReduce is a storage filing system.
D) Pure Big Data systems do not involve fault tolerance.

Accepted Answer

The answer of Which of the following statements about Big...

Question 8

What has caused the growth of the demand for instant,on-demand access to dispersed information?
A) the increasing divide between users who focus on the strategic level and those who are more oriented to the tactical level
B) the need to create a database infrastructure that is always online and contains all the information from the OLTP systems
C) the more pressing need to close the gap between the operational data and strategic objectives
D) the fact that BI cannot simply be a technical exercise for the information systems department

Accepted Answer

As organizations become more data-driven and require real-time decision-making, there is a growing demand for instant access to dispersed information. This is driven by the need to close the gap between operational data and strategic objectives, making it easier for decision-makers to access information quickly and make informed decisions. The increasing divide between strategic and tactical users, the need for an always-online database infrastructure, and the technical nature of BI are all factors to consider, but they do not directly relate to the growth of demand for instant, on-demand access to dispersed information.

Question 9

Organizations counter the pressures they experience in their business environments in multiple ways.Which of the following is NOT an effective way to counter these pressures?
A) reactive actions
B) anticipative actions
C) adaptive actions
D) retroactive actions

Accepted Answer

Retroactive actions are actions taken after the fact, and are not effective in countering pressures in the business environment. Reactive actions, which are taken after a pressure or crisis has already occurred, can be helpful in managing the immediate aftermath, but are not a long-term solution. Anticipative actions, which involve proactively predicting and preparing for potential pressures or changes, and adaptive actions, which involve being able to quickly and flexibly adjust to new circumstances, are more effective ways for organizations to counter the pressures they experience in their business environments.

Question 10

In the Magpie Sensing case study,the automated collection of temperature and humidity data on shipped goods helped with various types of analytics.Which of the following is an example of prescriptive analytics?
A) real time reports of the shipment's temperature
B) warning of an open shipment seal
C) location of the shipment
D) optimal temperature setting

Accepted Answer

Prescriptive analytics provides recommendations on what actions to take based on the analyzed data. In the Magpie Sensing case study, the optimal temperature setting is an example of prescriptive analytics because it suggests a specific action to take to maintain the best conditions for the shipped goods. Real-time reports of the shipment's temperature, warnings of an open shipment seal, and the location of the shipment are examples of descriptive analytics that provide a summary of what is happening with the shipment but do not suggest a specific action to take.

Question 11

How are descriptive analytics methods different from the other two types?
A) They answer "what-if?" queries, not "how many?" queries.
B) They answer "what-is?" queries, not "what will be?" queries.
C) They answer "what to do?" queries, not "what-if?" queries.
D) They answer "what will be?" queries, not "what to do?" queries.

Accepted Answer

Descriptive analytics methods are used to answer “what-is?” queries that explain what happened in the past or what is currently happening. This is different from predictive analytics that answer “what will be?” queries and prescriptive analytics that answer “what to do?” queries.

Question 12

When Sabre developed their Enterprise Data Warehouse,they chose to use near-real time updating of their database.The main reason they did so was
A) to provide a 360 degree view of the organization.
B) to aggregate performance metrics in an understandable way.
C) to be able to assess internal operations.
D) to provide up-to-date executive insights.

Accepted Answer

The use of near-real time updating of the database allows for providing up-to-date executive insights, which is the main reason for Sabre's choice. While A, B, and C could be benefits of having an Enterprise Data Warehouse, they are not the main reason for choosing near-real time updating.

Question 13

If a company's strategy is properly aligned with DW and BI initiatives,and if the company's IS organization can be made capable of playing its role in such a project,and if the requisite user community is in place and has the proper motivation,then
A) it is no longer necessary to start BI within the company.
B) it is wise to start BI and establish a BI Competency Center (BICC) within the company.
C) the organization is ready for the introduction of new data-generating technologies, such as radio-frequency identification (RFID).
D) business leaders are required to document their business processes and to sign off on the legitimacy of the information they rely on.

Accepted Answer

If a company's strategy is aligned with DW and BI initiatives, and its IS organization is capable of playing a role in the project, and users are motivated, then it is wise to start BI and establish a BI Competency Center (BICC) within the company. This will ensure that the BI initiatives are properly managed, developed, and maintained to support the company's strategy and goals. The BICC will also provide a framework for collaboration between stakeholders and ensure that the necessary skills, processes, and tools are in place.

Question 14

Online transaction processing (OLTP)systems handle a company's routine ongoing business.In contrast,a data warehouse is typically
A) the end result of BI processes and operations.
B) a repository of actionable intelligence obtained from a data mart.
C) a distinct system that provides storage for data that will be made use of in analysis.
D) an integral subsystem of an online analytical processing (OLAP) system.

Accepted Answer

A data warehouse is a distinct system that provides storage for data that will be used in analysis. It is designed to support business intelligence (BI) processes and operations but is not the end result of these processes. It may also contain data marts, which are subsets of the data warehouse that are optimized for specific departments or functions. A data warehouse is separate from an OLTP system, which handles routine business transactions. While OLAP (online analytical processing) systems may utilize data from a data warehouse, it is not an integral subsystem of such a system.

Question 15

Prescriptive BI capabilities are viewed as more powerful than predictive ones for all the following reasons EXCEPT
A) prescriptive BI gives actual guidance as to actions.
B) understanding the likelihood of certain events often leaves unclear remedies.
C) only prescriptive BI capabilities have monetary value to top-level managers.
D) prescriptive models generally build on (with some overlap) predictive ones.

Accepted Answer

This statement is not true. Predictive BI capabilities, such as forecasting and trend analysis, have significant monetary value to top-level managers as they aid in strategic decision making.

Question 16

In the Magpie Sensing case study,the automated collection of temperature and humidity data on shipped goods helped with various types of analytics.Which of the following is an example of predictive analytics?
A) real time reports of the shipment's temperature
B) warning of an open shipment seal
C) location of the shipment
D) optimal temperature setting

Accepted Answer

The answer of In the Magpie Sensing case study,the automated...

Question 17

In answering the question "Which customers are likely to be using fake credit cards?" you are most likely to use which of the following analytic applications?
A) channel optimization
B) customer segmentation
C) fraud detection
D) customer profitability

Accepted Answer

Fraud detection is the most appropriate analytic application for identifying customers who are using fake credit cards. This application involves a combination of statistical analysis, machine learning algorithms, and business rules to identify patterns of behaviors and transactions that indicate fraudulent activity. The key objective of this application is to detect fraudulent transactions in real-time or near real-time, and prevent further losses to the organization.

Question 18

Once a data warehouse is in place,the general process of intelligence creation begins with
A) end-user examinations of decision-making impacts.
B) identifying and prioritizing specific BI projects.
C) estimating the cost-benefit ratio of the ROI.
D) establishing the critical partnerships required for BI governance.

Accepted Answer

After a data warehouse is in place, the next step in the process of intelligence creation is identifying and prioritizing specific BI projects. This involves determining which areas of the business would benefit most from BI, and which projects would have the biggest impact on overall performance. This step helps to focus resources and ensure that the most important projects are addressed first.

Question 19

Big Data often involves a form of distributed storage and processing using Hadoop and MapReduce.One reason for this is
A) centralized storage creates too many vulnerabilities.
B) the "Big" in Big Data necessitates over 10,000 processing nodes.
C) the processing power needed for the centralized model would overload a single computer.
D) Big Data systems have to match the geographical spread of social media.

Accepted Answer

Big Data involves processing and analyzing massive amounts of data, which can overload a single computer's processing power. Distributed storage and processing using Hadoop and MapReduce allow for the workload to be split across multiple nodes, increasing computing power and speed while reducing the chances of system failure. Centralized storage may also create a single point of failure and increase vulnerabilities. The "Big" in Big Data does not necessarily mean over 10,000 processing nodes are needed, and the geographical spread of social media does not determine the storage and processing architecture for Big Data.

Question 20

Today,many vendors offer diversified tools,some of which are completely preprogrammed (called shells).How are these shells utilized?
A) They are used for customization of BI solutions.
B) All a user needs to do is insert the numbers.
C) The shell provides a secure environment for the organization's BI data.
D) They host an enterprise data warehouse that can assist in decision making.

Accepted Answer

Shells are completely preprogrammed tools that allow users to input data and receive output without any additional programming or customization. This makes them user-friendly and accessible to those without technical expertise.

Quiz 1: An Overview of Business Intelligence, Analytics, and Decision Support

When middles look across an organization to ensure that project priorities reflect the needs of the entire business,what is their main concern?

The very design that makes an OLTP system efficient for transaction processing makes it inefficient for what?

In answering the question "Which customers are most likely to click on my online ads and purchase my goods?" you are most likely to use which of the following analytic applications?

Which of the following is NOT an example that falls within the four major categories of business environment factors for today's organizations?

Business intelligence (BI) can be characterized as a transformation of

What can the BI users in an organization help guide and direct?

Which of the following statements about Big Data is true?

What has caused the growth of the demand for instant,on-demand access to dispersed information?

Organizations counter the pressures they experience in their business environments in multiple ways.Which of the following is NOT an effective way to counter these pressures?

In the Magpie Sensing case study,the automated collection of temperature and humidity data on shipped goods helped with various types of analytics.Which of the following is an example of prescriptive analytics?

How are descriptive analytics methods different from the other two types?

When Sabre developed their Enterprise Data Warehouse,they chose to use near-real time updating of their database.The main reason they did so was

If a company's strategy is properly aligned with DW and BI initiatives,and if the company's IS organization can be made capable of playing its role in such a project,and if the requisite user community is in place and has the proper motivation,then

Online transaction processing (OLTP) systems handle a company's routine ongoing business.In contrast,a data warehouse is typically

Prescriptive BI capabilities are viewed as more powerful than predictive ones for all the following reasons EXCEPT

In the Magpie Sensing case study,the automated collection of temperature and humidity data on shipped goods helped with various types of analytics.Which of the following is an example of predictive analytics?

In answering the question "Which customers are likely to be using fake credit cards?" you are most likely to use which of the following analytic applications?

Once a data warehouse is in place,the general process of intelligence creation begins with

Big Data often involves a form of distributed storage and processing using Hadoop and MapReduce.One reason for this is

Today,many vendors offer diversified tools,some of which are completely preprogrammed (called shells) .How are these shells utilized?