Question 1

For the majority of organizations, evaluating the credit rating of a potential business partner is a(n)
A) strategic decision.
B) structured decision.
C) unstructured decision.
D) managerial control decision.

Accepted Answer

The answer of For the majority of organizations, evaluating the...

Question 2

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 3

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 would be the most appropriate analytic application for identifying customers who are using fake credit cards. It involves analyzing transactional data to identify patterns and anomalies that may indicate fraudulent activity. Customer segmentation and customer profitability would focus more on identifying valuable customers and understanding their behavior, while channel optimization would involve optimizing the distribution channels used to reach customers.

Question 4

Which of the following statements about cognitive limits of organizational decision makers is true?
A) Only top managers make decisions where cognitive limits are strained.
B) The most talented and effective managers do not have cognitive limitations.
C) All organizational decision-making requires data beyond human cognitive limits.
D) Cognitive limits affect both the recall and use of data by decision makers.

Accepted Answer

Cognitive limits affect both the recall and use of data by decision makers. This means that decision makers may struggle with recalling and using all relevant data when making decisions. This is true for all organizational decision-making processes, not just those led by top managers or less talented managers.

Question 5

For the majority of organizations, a daily accounts receivable transaction is a(n)
A) strategic decision.
B) structured decision.
C) unstructured decision.
D) managerial control decision.

Accepted Answer

A daily accounts receivable transaction is a routine and repetitive action that follows a standardized and structured process, such as billing customers, recording payments, and chasing outstanding balances. Therefore, the decision-making involved in this transaction is limited and predictable, and can be performed using predefined rules and procedures. Thus, the best choice for the majority of organizations is a structured decision, which relies on automation and workflow management to streamline the accounts receivable process and improve efficiency and accuracy.

Question 6

All of the following may be viewed as decision support systems EXCEPT
A) an expert system to diagnose a medical condition.
B) a knowledge management system to guide decision makers.
C) a system that helps to manage the organization's supply chain management.
D) a retail sales system that processes customer sales transactions.

Accepted Answer

A retail sales system that processes customer sales transactions is a transaction processing system (TPS) and not a decision support system (DSS). While it may generate data that decision makers can use to make decisions, it is not specifically designed to provide decision support functionality like the other options listed.

Question 7

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 globalization, technological change, the importance of knowledge and ideas, and collaboration across organizational boundaries. "Fewer government regulations" does not fall under any of these categories.

Question 8

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 involves making recommendations for actions based on data analysis. The optimal temperature setting would be an example of prescriptive analytics as it involves recommending a specific action (setting the temperature at a certain level). Real time reports of temperature (A) and location of the shipment (C) would fall under descriptive analytics, while a warning of an open shipment seal (B) would fall under diagnostic analytics as it is identifying a problem and its root cause.

Question 9

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...

Question 10

Which of the following activities permeates nearly all managerial activity?
A) planning
B) controlling
C) directing
D) decision-making

Accepted Answer

Decision-making is a fundamental aspect of nearly all managerial activities. Managers constantly make decisions in the process of planning, controlling, directing, and other managerial functions, making it a pervasive activity.

Question 11

Business environments and government requirements are becoming more complex. All of the following actions to manage this complexity would be appropriate EXCEPT
A) hiring more sophisticated and computer-savvy managers.
B) deploying more sophisticated tools and technique.
C) seeking new ways to avoid government compliance.
D) avoiding expensive trial and error to find out what works.

Accepted Answer

Seeking new ways to avoid government compliance is not an appropriate action to manage increasing complexity in business environments and government requirements. It is important for businesses to comply with government regulations in order to avoid legal and financial penalties, as well as to maintain ethical and social responsibility. The other options (hiring more sophisticated managers, deploying more sophisticated tools and techniques, and avoiding expensive trial and error) all aim to improve the organization's ability to navigate complexity and comply with government requirements.

Question 12

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

BI involves transforming raw data into meaningful information, which is used to make informed decisions and take appropriate actions. Therefore, the correct order of transformation is from data to information to decisions to actions. Choices B, C, and D are incorrect as they do not follow the correct sequence of BI transformation.

Question 13

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

Propensity to buy is an analytic application that helps to predict which customers are most likely to make a purchase. This could be useful in identifying which customers are most likely to click on online ads and subsequently purchase goods. Customer profitability and customer attrition are more focused on measuring the financial value of customers and predicting customer churn, respectively. Channel optimization relates to optimizing marketing and sales channels, but may not necessarily provide insights into customer behavior and likelihood of purchasing.

Question 14

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 entirely true as predictive BI capabilities can also have monetary value to top-level managers. Therefore, all the other options are true and valid reasons why prescriptive BI capabilities are viewed as more powerful than predictive ones.

Question 15

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 focus on analyzing past data to understand what has happened and give a clear picture of current state or situation. They answer "what-is?" queries, not "what will be?" queries. Predictive analytics methods, on the other hand, use historical data to make predictions about future events. Prescriptive analytics methods use historical data and analysis to provide recommendations or solutions for future decision-making.

Question 16

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

Sabre chose near-real-time updating of their database in order to provide executives with up-to-date insights. This allows for timely decision making and a better understanding of the current state of the organization.

Question 17

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

The processing power required for handling Big Data is huge and cannot be handled by a single computer. A distributed storage and processing model like Hadoop and MapReduce allow for processing to be spread across multiple nodes, which provides the required computational power to handle Big Data. Centralized storage creates too many vulnerabilities and is not suitable for Big Data. The "Big" in Big Data does not necessarily mean over 10,000 processing nodes are required, and Big Data systems don't have to match the geographical spread of social media.

Question 18

Why are analytical decision making skills now viewed as more important than interpersonal skills for an organization's managers?
A) because interpersonal skills are never important in organizations
B) because personable and friendly managers are always the least effective
C) because analytical-oriented managers produce better results over time
D) because analytical-oriented managers tend to be flashier and less methodical

Accepted Answer

Analytical decision making skills are important because they help managers make well-informed decisions based on data and evidence, rather than relying solely on personal opinions or emotions. This leads to better results for the organization in the long run. Interpersonal skills are still important, but may be considered secondary to analytical skills in some industries or positions where data-driven decision making is crucial. Options A and B are incorrect because interpersonal skills are generally recognized as important in organizations, and there is no evidence to suggest that personable and friendly managers are less effective. Option D is incorrect because flashiness and lack of methodical approach are not desirable traits in managers.

Question 19

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 involve responses after the pressure has already impacted the organization, making it an ineffective way to counter the pressures. Reactivity is better than retroactivity, but it is not as effective as being anticipative or adaptive. Anticipative actions involve identifying potential pressures and taking proactive steps to avoid them, whereas adaptive actions involve adjusting the organization's practices and strategies to align with the changing environment.

Question 20

The deployment of large data warehouses with terabytes or even petabytes of data been crucial to the growth of decision support. All the following explain why EXCEPT
A) data warehouses have enabled the affordable collection of data for analytics.
B) data warehouses have enabled the collection of decision makers in one place.
C) data warehouses have assisted the collection of data for data mining.
D) data warehouses have assisted the collection of data from multiple sources.

Accepted Answer

Data warehouses have not enabled the collection of decision makers in one place, as decision makers may still be located in different physical locations. However, data warehouses have enabled the affordable collection of data for analytics, assisted the collection of data for data mining, and assisted the collection of data from multiple sources.

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

For the majority of organizations, evaluating the credit rating of a potential business partner is a(n)

Which of the following statements about Big Data is true?

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?

Which of the following statements about cognitive limits of organizational decision makers is true?

For the majority of organizations, a daily accounts receivable transaction is a(n)

All of the following may be viewed as decision support systems EXCEPT

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

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?

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?

Which of the following activities permeates nearly all managerial activity?

Business environments and government requirements are becoming more complex. All of the following actions to manage this complexity would be appropriate EXCEPT

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

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?

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

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

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

Why are analytical decision making skills now viewed as more important than interpersonal skills for an organization's managers?

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?

The deployment of large data warehouses with terabytes or even petabytes of data been crucial to the growth of decision support. All the following explain why EXCEPT