Question 1

__________________ is the process of analyzing large sets of data to find patterns, correlation, trends, or other meaningful relationships that can be used to increase revenues, decrease costs, or both.

Accepted Answer

Data mining is specifically focused on extracting useful information from large datasets, and is commonly used in business to identify trends, patterns, and other insights that can help increase revenues, decrease costs, or both. While statistical analysis, business intelligence (BI), and business analysis can all be related to data mining, they are broader concepts that can include other methods and approaches beyond just analyzing data.

Question 2

With text analytics, information is extracted out of large quantities of various types of textual information. Which of the following is not one of the steps involved in text analytics described in your text?

Accepted Answer

The steps involved in text analytics described in the text are exploration of documents for preliminary categorization or identification of common topics, preprocessing of documents to standardize content as much as possible, categorization and modeling of document content using statistical models and business rules, and visualization of text data to graphic format (e.g. charts, graphs) for effective reporting. Therefore, D is the option that is not involved.

Question 3

Data warehouses that integrate data from databases across an entire organization are called _________________.

Accepted Answer

Enterprise data warehouses (EDW) are designed to integrate data from all databases across an entire organization, providing a single source of truth for decision-making. Data marts (A) are smaller data warehouses that focus on specific business areas, while transaction data warehouses (C) are used to capture detailed transactional data for analysis. Universal data warehouses (D) are not a widely recognized term in the industry.

Question 4

Specialized software used to analyze large data sets to find patterns, correlation, trends, or other meaningful relationships are called _____________________.

Accepted Answer

Data mining tools are specifically designed to analyze large data sets and identify patterns, correlations, and trends. Statistical analysis programs and business analysis tools are more general in nature and may not have the same capabilities as data mining tools. Business Intelligence (BI) systems are broader in scope and include data mining tools as just one component.

Question 5

Databases that receive real-time transaction data are called Online Transaction Processing OTLP) systems. Data is then transferred to data warehouses, known as ______________________ for further analysis.

Accepted Answer

Online Analytical Processing (OLAP) systems are designed for further analysis of data received from real-time transaction processing databases. Data Cloud Storage (DCS) systems are storage solutions for various types of data, not specifically for transaction data. Online Batch Processing (OLBP) systems perform batch processing, not real-time processing. Online Metric Processing (OLMP) systems are not a commonly known type of data processing system.

Question 6

________________ unites data, technology, analytics, and human knowledge to optimize business decisions by transforming data into usable, actionable business information.

Accepted Answer

Business Intelligence (BI) unites data, technology, analytics, and human knowledge to optimize business decisions by transforming data into usable, actionable business information. Strategic business analysis, strategic planning, and strategic modeling are related to BI but do not fully encompass the use of technology and analytics in transforming data into actionable insights.

Question 7

When a customer calls an organization's customer service center, the service representative has access to a complete history of the customer's previous calls as well as a list of the services they have purchased and a customer profitability score. All of this information is up-to-date and is accessed from the company's _________________.

Accepted Answer

An Active Data Warehouse (ADW) is a type of database system that is specifically designed to provide up-to-date and real-time access to critical business information, such as customer data. It allows service representatives to quickly and efficiently access a complete history of the customer's interactions with the company, as well as other relevant data such as their purchase history and profitability score. A Management Information System (MIS) is a broader term that refers to any system used to manage business information, while a Transactional Database System (TDS) and Online Transaction Processing (OLTP) System are both designed specifically for handling transactional data, but may not provide the real-time access to information required by customer service representatives.

Question 8

Data warehouses are designed as ______________________________ systems, meaning that the data can be queried and analyzed much more efficiently than OLTP application databases.

Accepted Answer

Data warehouses are designed for OLAP (Online Analytical Processing) which allows for efficient querying and analysis of data compared to OLTP (Online Transaction Processing) databases which are designed for handling real-time transactional data. Dynamic Data and Stable Data Analytic are not commonly used terms when discussing data warehousing.

Question 9

A recent trend in the field of Business Intelligence BI) involves mining very large data sets that come from billions upon billions of recorded transactions, social media interactions and records of individual user online activities. The trend in using these very large data sets is known as ____________.

Accepted Answer

The trend in using very large data sets is known as "big data". The term "big data" refers to the massive amounts of varied data that cannot be processed or analyzed through traditional means. These data sets come from various sources, including social media, online transactions, and individual user activities. The use of big data has become increasingly popular in the field of business intelligence, as it allows companies to gain insights and make more informed decisions based on the patterns and trends that emerge from these large data sets.

Question 10

Organizations often store data in applications with the following characteristics: -Designed and optimized to ensure that every transaction gets recorded and stored immediately.
-Volatile because data are constantly being updated, added, or edited.
-Online transaction processing OLTP) systems because transactions must be recorded and processed as they occur, in real time.
These three characteristics best describe which of the following?

Accepted Answer

The characteristics listed are common in database systems, which are specifically designed to handle OLTP transactions and store data in real-time. Decision Support Systems and Management Information Systems are typically utilized for analytical and reporting purposes, whereas data warehouses and data marts are designed for storing and analyzing historical data rather than real-time transactions.

Question 11

Because the high costs of a data warehouse can make them too expensive for a company to operate, some organizations turn to an alternative, called an) _______________ which is smaller, less expensive and designed to serve the needs of a specific SBU, department or function, such as finance, marketing, or operations.

Accepted Answer

A data mart is a smaller, less expensive version of a data warehouse that is designed to serve the needs of a specific SBU, department or function. It is used for analyzing a particular subject area and may draw data from multiple sources. The other options - analytical database, data backup system, and operational data store - do not meet the criteria of being a smaller, less expensive version of a data warehouse designed for a specific department or function.

Question 12

What is the key advantage of an active data warehouse ADW) compared to a traditional data warehouse?

Accepted Answer

The key advantage of an active data warehouse (ADW) compared to a traditional data warehouse is that data in an ADW is constantly updated, providing more current information than a traditional data warehouse. This means that organizations can make more informed decisions based on the latest information available. Option A is incorrect as ADWs can be more expensive to operate due to their constant updating. Option B is incorrect as data from a traditional data warehouse can also be used for DSS, report generation, and Business Intelligence. Option D is also incorrect as ADWs are not necessarily more widely available from a larger number of vendors.

Question 13

_________________ is are) used to analyze an organization's non-structured data that comes from word processing documents, social media, text messages, audio, faxes, memos, call center or claims notes, and so on.

Accepted Answer

Text mining is the process of analyzing unstructured data to extract useful insights and information. It involves automatically processing text data and identifying patterns, relationships, and trends within it. This makes it a valuable tool for analyzing a wide range of data sources, including word processing documents, social media, text messages, audio, faxes, memos, call center or claims notes, and more. Media metrics refers to the measurement of media performance, while unstructured analytics and media mining are not specific enough to accurately describe this process.

Question 14

Because of the very large amount of data and the costs associated with BI applications, small and mid-sized companies with limited IT staff and budgets sometimes use a new BI architecture called _______________ .

Accepted Answer

BI in the cloud can provide small and mid-sized companies with access to BI tools and applications without the high costs of maintaining on-premises infrastructure or hiring a large IT staff. Cloud-based BI solutions often offer pay-as-you-go pricing models, making them more affordable for companies with limited budgets.

Question 15

According to a study conducted by MIT Sloan Management Review and IBM, top performing companies use BI and business analytics for both tactical financial insights

Accepted Answer

According to the study, top performing companies use BI and business analytics for both tactical financial insights (such as forecasting, budgeting, and supply chain management) as well as strategic issues like developing competitive advantages. Therefore, option A is the best choice as it directly relates to strategic issues. The other options (B, C, and D) only pertain to tactical or operational use of BI and business analytics.

Question 16

Organizations often store data in applications with the following characteristics: -Designed and optimized for analysis and quick response to queries.
-Are nonvolatile, which means that when data are stored, they can be read only and never deleted so that they can be used for comparison with newer data.
-Online analytic processing OLAP) systems
-Subject-oriented, which means that the data captured is organized to have similar data linked together.
These four characteristics best describe which of the following?

Accepted Answer

These characteristics are specifically associated with data warehouses or data marts, which are designed to support analysis and decision-making by providing subject-oriented, nonvolatile data that can be accessed quickly through query tools like OLAP systems. Management information systems (B) and decision support systems (A) may use data warehouses as a source of information, but they do not have these specific characteristics. A database system (C) can have many different characteristics depending on its design and purpose, so it's too broad a category to be the best choice based on the given characteristics.

Question 17

A 2011 study by MIT Sloan Management Review and IBM studied over 4500 firms and their use of BI and business analytics. Which of the following was not cited in your text as one of the study's findings?

Accepted Answer

The text did not cite the finding that approximately 1/3 (34%) of the respondents indicated they were planning to reduce expenditures related to BI and business analytics because of high costs. The other three choices were mentioned as findings in the study.

Question 18

An) _____________________ is a database for transaction processing systems that uses data warehouse concepts to provide clean data. It is used for short-term decisions involving mission-critical applications rather than for the medium- and long-term decisions associated with the regular data warehouse.

Accepted Answer

An Operational Data Store (ODS) is a database that is used for transaction processing systems and uses data warehouse concepts to provide clean data. The ODS is used for short-term decisions involving mission-critical applications rather than for the medium- and long-term decisions associated with the regular data warehouse. An analytical database is a database that is optimized for data warehousing and data mining, while a data backup system is used to create and maintain copies of data to protect against data loss. A data mart is a subset of an organization's data that is specifically designed to serve a particular business unit or function.

Question 19

In the past, data was transferred from OTLP databases to data warehouses periodically, say once a month or even once a week. Now, the trend is for real-time data warehousing so that analysis and decision support apps are able to use the most current data. These new types of data warehouses are called _____________________.

Accepted Answer

An Active Data Warehouse (ADW) is a type of data warehouse that enables real-time data processing and analysis. It allows for the continuous integration of data from multiple sources and provides users with up-to-date information for decision-making purposes. Therefore, ADW would be the best choice in the context of the given question. The other options (B, C, D) are not commonly used or recognized terms in the industry for real-time data warehousing.

Question 20

Because of volatility, data from databases are transferred to a ________________ so that they are ready for quick responses to inquiries.

Accepted Answer

Data warehouses are specifically designed to store large amounts of structured data from a variety of sources, making them ideal for handling the volatility of database data. They are optimized for fast querying and analysis, making them well-suited for providing quick responses to inquiries. Statistical engines and data clouds may also be used in data analysis, but they are not specifically designed for the storage and management of large amounts of structured data. A data repository is a more general term that can refer to any collection of data, whereas a data warehouse has specific characteristics that make it well-suited for the task at hand.

Quiz 3: Database, Data Warehouse, and Data Mining