Question 1

Total Rewards is an opt-out loyalty program at Caesars.

Accepted Answer

Total Rewards is an opt-in loyalty program at Caesars, meaning customers must actively choose to join.

Question 2

Building a model with so many variables that the solution arrived at might only work on the subset of data used to create it is known as _____.

Accepted Answer

The answer of Building a model with so many variables...

Question 3

What is Wal-Mart's motivation for sharing data with its supply partners?
A) Creating switching costs for suppliers
B) Lowering prices of products
C) Achieving maturity in the American market
D) Countering the accusations of union activists
E) Deflecting criticism for ruining local mom-and-pop stores

Accepted Answer

Wal-Mart shares data with its supply partners to lower prices of products. The sharing of data allows suppliers to better understand demand patterns and adjust their production accordingly, leading to more efficient operations and potentially lower costs for both Wal-Mart and the supplier.

Question 4

Tesco is the planet's largest retailer.

Accepted Answer

Walmart is the world's largest retailer, not Tesco.

Question 5

A data cube refers to a:
A) user who is in control of a database management system.
B) heads-up display of critical indicators that allow managers to get a graphical glance at key performance metrics.
C) special database used to store data in OLAP reporting.
D) firm that collects data with the intention of reselling it to others.
E) combination of fields used to uniquely identify a record, and to relate separate tables in a database.

Accepted Answer

A data cube is a special database used to store data in OLAP reporting. It allows the user to analyze data along multiple dimensions and summarize it into a smaller set of data that can be easily interpreted.

Question 6

What is data mining? What are the key areas where businesses are leveraging data mining?

Accepted Answer

The answer of What is data mining? What are the...

Question 7

_____ are model building techniques where computers examine many potential solutions to a problem, iteratively modifying various mathematical models, and comparing the mutated models to search for a best alternative.
A) Expert systems
B) Ad hoc reporting tools
C) Iterative mutations
D) Sampled alliterations
E) Genetic algorithms

Accepted Answer

The description matches the process of Genetic Algorithms, where computers use iterative mutations and comparisons to find the best solution to a problem.

Question 8

_____ refers to the ratio of a company's annual sales to its inventory.

Accepted Answer

The answer of _____ refers to the ratio of a...

Question 9

Data mining is leveraged by firms to determine which products customers buy together, and how an organization can use this information to cross-sell more products or services. This area of application of data mining is referred to as:
A) market basket analysis.
B) collaborative filtering.
C) customer churn.
D) customer segmentation.
E) vertical integration.

Accepted Answer

Market basket analysis is a technique used to identify the relationship between products that customers buy together. It helps the firms to create efficient cross-selling strategies.

Question 10

Inventory turnover ratio is:
A) the ratio of a company's annual sales to its inventory.
B) the ratio of a company's variable cost to its inventory.
C) the ratio of a company's fixed cost to its inventory.
D) the ratio of a company's annual cost to its inventory.
E) the ratio of a company's fixed assets to its inventory.

Accepted Answer

Inventory turnover ratio is the ratio of a company's annual sales to its inventory. It measures how many times a company sells and replaces its inventory over a year.

Question 11

Computer-driven investment models can be very effective when the market behaves as it has in the past. However, in terms of historical consistency, they are vulnerable to failure in the face of:
A) brute force attacks.
B) black swans.
C) zero-day exploits.
D) over-engineering.
E) distributed denial of service.

Accepted Answer

Computer-driven investment models rely heavily on historical data and patterns to make predictions about future market behavior. However, black swan events, which are rare and unpredictable events that have a significant impact on the market, cannot be predicted based on past data. Therefore, computer-driven investment models can easily fail in the face of black swan events. The other options listed are related to cybersecurity and not directly relevant to the effectiveness of investment models.

Question 12

Customer lifetime value represents:
A) the portion of income spent on leisure by a customer over the course of his lifetime.
B) the increase in the purchase of current goods and services that results from an increase in income.
C) a customer's assessment of the value of the brand, above its objective value.
D) the present value of the likely future income stream generated by an individual purchaser.
E) the tendency of a customer to stick with a brand even when it is priced higher than an otherwise equal product.

Accepted Answer

Customer lifetime value refers to the present value of the estimated future revenue generated by a customer over the course of their relationship with a company. This includes not only the initial purchase but also any subsequent purchases and their likelihood of continuing to be a customer. Therefore, option D is the correct answer. Option A is incorrect as it refers to leisure spending, not the value a customer brings to a company. Option B is incorrect as it refers to an increase in income, not the value generated by a customer. Option C is incorrect as customer lifetime value is about objective value, not subjective assessments of value. Option E is incorrect as it refers to customer loyalty, which may contribute to customer lifetime value but is not the definition of it.

Question 13

How has Wal-Mart leveraged information technology to become the world's largest retailer?

Accepted Answer

The answer of How has Wal-Mart leveraged information technology to...

Question 14

The data mining operations at Caesars have revealed that most of the revenue it generates comes from the affluent classes that include European princes and shipping heirs.

Accepted Answer

There is no evidence or statement provided in the given text to suggest that Caesars' revenue comes mostly from European princes and shipping heirs.

Question 15

A(n) _____ is an AI system that examines data and hunts down and exposes patterns, in order to build models to exploit findings.
A) data mine
B) canned report
C) data aggregator
D) neural network
E) e-discovery

Accepted Answer

A neural network is an AI system designed to recognize patterns and build models based on data, making it suitable for tasks like pattern recognition and data analysis.

Question 16

Having too much inventory or insufficient inventory is known as a retailer's "twin nightmares."

Accepted Answer

Having too much inventory can lead to increased storage costs and potential waste, while insufficient inventory can lead to lost sales and dissatisfied customers. Therefore, both scenarios can be considered a retailer's "twin nightmares."

Question 17

_____ is the process of using computers to identify hidden patterns in and to build models from large data sets.
A) Data harvesting
B) E-discovery
C) Optimization
D) Report canning
E) Data mining

Accepted Answer

Data mining is the process of using computers to identify hidden patterns in and to build models from large data sets. Data harvesting refers to the process of collecting data, e-discovery refers to the legal process of finding and producing electronic information in response to a request, optimization refers to the process of finding the best solution for a problem, and report canning is not a commonly used term in the field of data analysis.

Question 18

Which of the following conditions is essential for data mining to work?
A) The data must be collected from proprietary sources and not from data aggregators.
B) The organization must leverage standard relational databases as opposed to inferior hierarchical and analytical databases.
C) The events in the data should reflect current and future trends.
D) The data mining software must necessarily incorporate ad hoc reporting tools and dashboards.
E) The data should have passed the Diehard suite of stringent tests for randomness.

Accepted Answer

For data mining to work effectively, the events in the data should reflect current and future trends. This means that the data should be relevant and provide insights for decision-making. The other options mentioned are not essential conditions for data mining to work.

Question 19

Wal-Mart supplements its huge data assets with additional data provided by information brokers like Information Resources and ACNielsen.

Accepted Answer

The answer of Wal-Mart supplements its huge data assets with...

Question 20

_____ are AI systems that leverage rules or examples to perform a task in a way that mimics applied human expertise.

Accepted Answer

The answer of _____ are AI systems that leverage rules...

Quiz 12: The Data Asset: Databases, Business Intelligence, Big Data, and Competitive Advantage

Total Rewards is an opt-out loyalty program at Caesars.

Building a model with so many variables that the solution arrived at might only work on the subset of data used to create it is known as _____.

What is Wal-Mart's motivation for sharing data with its supply partners?

Tesco is the planet's largest retailer.

A data cube refers to a:

What is data mining? What are the key areas where businesses are leveraging data mining?

_____ are model building techniques where computers examine many potential solutions to a problem, iteratively modifying various mathematical models, and comparing the mutated models to search for a best alternative.

_____ refers to the ratio of a company's annual sales to its inventory.

Data mining is leveraged by firms to determine which products customers buy together, and how an organization can use this information to cross-sell more products or services. This area of application of data mining is referred to as:

Inventory turnover ratio is:

Computer-driven investment models can be very effective when the market behaves as it has in the past. However, in terms of historical consistency, they are vulnerable to failure in the face of:

Customer lifetime value represents:

How has Wal-Mart leveraged information technology to become the world's largest retailer?

The data mining operations at Caesars have revealed that most of the revenue it generates comes from the affluent classes that include European princes and shipping heirs.

A(n) _____ is an AI system that examines data and hunts down and exposes patterns, in order to build models to exploit findings.

Having too much inventory or insufficient inventory is known as a retailer's "twin nightmares."

_____ is the process of using computers to identify hidden patterns in and to build models from large data sets.

Which of the following conditions is essential for data mining to work?

Wal-Mart supplements its huge data assets with additional data provided by information brokers like Information Resources and ACNielsen.

_____ are AI systems that leverage rules or examples to perform a task in a way that mimics applied human expertise.