Chapter 6 Business Intelligence and Analytics PDF

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Chapter 6 - Business Intelligence and Analytics True / False 1. Business analytics can be used only for forecasting future business results. a. True b. Fals e ANSWER: False 2. The data for BI (business intelligence) comes from many sources. a. True b. Fals e ANSWER: True 3. A marketing manager who does not have deep knowledge of information systems or data science, will NOT be able to use BI tools a. True b. Fals e ANSWER: False 4. Some insurance companies can detect fraudulant claims using BI software. a. True b. Fals e ANSWER: True 5. A vehicle routing optimization system helps in maximizing the number of drivers being assigned. a. True b. Fals e ANSWER: False 6. Data scientists do not need much business domain knowledge. a. True b. Fals e ANSWER: False 7. Suppose you are good in math and statistics. Adding programming to your skill-set will be necessary if you want to be a data scientist. a. True b. Fals e ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Business Intelligence and Analytics 8. For an organization to get real value from its BI efforts, it must have a solid data management program. a. True b. Fals e ANSWER: True 9. Creative data scientists - a key component of BI efforts in an organization - are people who are primarily focused on coming up with novel ways of analyzing data. a. True b. Fals e ANSWER: False 10. Data governance involves identifying people who are responsible for fixing and preventing issues

with data. a. True b. Fals e ANSWER: True 11. In OLAP data cubes, you would likely find numeric measures categorized by time and geography. a. True b. Fals e ANSWER: True 12. Online analytical processing is another name for enterprise application. a. True b. Fals e ANSWER: False 13. Data cubes can be created on an ad hoc basis. There is no need to create them ahead of time. a. True b. Fals e ANSWER: False 14. During drill-down, you go from high-level summary data to detailed levels of data. a. True b. Fals e ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Business Intelligence and Analytics 15. In linear regression, you are to find a line that best fits the data. Sometimes the line may be curved. a. True b. Fals e ANSWER: False 16. Data mining is used to explore large amounts of data, looking for hidden patterns that can be used to predict future trends and behaviors. a. True b. Fals e ANSWER: True 17. In the regression line Y = a+ bX + e, Y is the value of the independent variable. a. True b. Fals e ANSWER: False 18. In the regression line Y = a+ bX + e, a is the slope of the regression line. a. True b. Fals e ANSWER: False 19. Linear regression is useful when you wish to predict the value of a quantitative variable based on a another quantitative variable. a. True b. Fals e ANSWER: True 20. Suppose your university administrators wish to summarize student GPA on Major, Gender, High School, Home City and ZIP Code dimensions. This cannot be done with one data cube. a. True b. Fals e ANSWER: False 21. Suppose you are viewing a database of your monthly expenses, categorized under broad headings such as food, entertainment and accommodation. If you have drill down ability, you are able to view details under each category. a. True b. Fals e ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Business Intelligence and Analytics 22. Excel's scenario manager can be used to solve optimization-type problems. a. True b. Fals e ANSWER: False 23. Power Pivot and Power Query are components of Microsoft's Power BI tool. a. True b. Fals e ANSWER: True 24. To solve the product mix problem that will maximize the profits, you can use Excel's Solver add-in. a. True b. Fals e ANSWER: True 25. Users still need help from the IT function of the organization to create customer reports using modern reporting tools. a. True b. Fals e ANSWER: False 26. A conversion funnel is a visual depiction of a set of words that have been grouped together because

of the frequency of their occurrence. a. True b. Fals e ANSWER: False 27. If you wish to have a visual depiction of relative frequencies of words in a document, a word cloud would be an appropriate option. a. True b. Fals e ANSWER: True Multiple Choice 28. Which of the following is NOT considered business intelligence practice? a. Data extraction b. Visualization c. Analysis d. Transaction processing Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Business Intelligence and Analytics ANSWER: d 29. One of the goals of business intelligence is to _________. a. present the results in an easy to understand manner b. educate the users about business statistics c. ensure the transaction data is properly stored d. use the most sophisticated techniques ANSWER: a 30. Which of the following is NOT a characteristic of a data scientist? a. strong business acumen b. a deep understanding of analytics c. a healthy appreciation of the limitations of their data d. business leadership skills ANSWER: d 31. What is the projected shortage of data scientists in the USA, according to a McKinsey & Co. report? a. 100,000 or less b. 100,000 to 200,000 c. 200,000 to 500,000 d. more than 500,000 ANSWER: b 32. Mastery over which subject is NOT required for being a data scientist? a. Computer science b. Mathematics c. Statistics d. English ANSWER: d 33. Suppose your employer has four manufacturing units, each with its own data operations. They are considering using BI tools. Which of the following is a valid recommendation regarding the BI initiative? a. Automate data entry at the factories for reduction in error rates b. Implement BI tools in each factory separately c. Create a data warehouse so that data from the factories are combined for BI analysis d. None of these answers ANSWER: c 34. Which of the following is NOT a core process associated with data management? a. process for obtaining data b. process for certifying it fit for use c. process for gathering BI requirements d. process for storage Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Business Intelligence and Analytics ANSWER: c 35. You are to advise XYZ so that their BI efforts are fruitful. Which among the following is the most crucial advice of all? a. You need good data management practices b. There must be strong commitment from the management c. You need good data governance practices d. You need creative data scientists ANSWER: b 36. Which of the following is NOT a component of a KPI (key performance indicator)? a. direction b. measure c. time frame d. format ANSWER: d 37. Which of the following will be a 'fact' measure in a data cube used at a chain retail business? a. Sales revenue b. Month name c. Product category d. City name ANSWER: a 38. Which of the following is NOT true about linear regression? a. both of the variables must be quantitative variables b. the line minimizes the sum of the squared errors of prediction c. the technique implies causality between the independent and the dependent variables d. consists of finding the best-fitting straight line through a set of observations ANSWER: c 39. The coefficient of determination, r squared, is ____. a. the same as the error term in a linear regression b. a number that indicates how well data fits the statistical model c. a number that must be close to zero to be useful d. the same as the slope of the linear regression ANSWER: b 40. Which of these analysis methods describes neural computing? a. a specialized set of algorithms sorts through data and forms statistical rules about relationships among the items

b. historical data is examined for patterns that are then used to make predictions c. historical if-then-else cases are used to recognize patterns Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Business Intelligence and Analytics d. a mathematical procedure to predict the value of a dependent variable based on a single independent variable

ANSWER: b 41. Suppose management wishes to start a BI project at your new job. Which of following will you recommend as the first step? a. Understand the data b. Prepare the data c. Clarify business goals and design a project plan d. Create and apply analytical modeling techniques ANSWER: c 42. Data within the data cube has been ______ by specific dimensional values. a. correlated b. summarize d

c. regressed d. drilled into ANSWER: b 43. _____ is used to explore large amounts of data for hidden patterns to predict future trends. a. Data governance b. Data mining c. Linear regression d. Drill down ANSWER: b 44. During modeling of the CRISP-DM method, we would ______. a. clarify business goals for the data mining project b. select a subset of data to be used and prepare it c. assess if the model achieves business goals d. apply selected modeling techniques ANSWER: d 45. ____ is the last phase of the six-phase CRISP-DM method. a. Evaluation b. Modeling c. Business understanding d. Deployment ANSWER: d 46. Which of the following is NOT considered a BI and analytics tool? a. Data visualization Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Business Intelligence and Analytics b. Drill-down analysis c. Online transaction processing d. Data mining ANSWER: c 47. Suppose you have access to quantitative data on populations by ZIP code and crime rates. You wish to determine if there is a relationship between the two variables and display the results in a graph. Which BI tool will be most useful? a. Word cloud tool

b. Querying tool c. Reporting tool d. Data visualization tool ANSWER: d 48. To analzye various alternative scenarios, a manager would use _______. a. the spreadsheet's 'what-if' capability b. the graphing features of spreadsheet software c. the reporting feature of a BI tool d. a data visualization tool ANSWER: a 49. Which of the following is NOT a key capability of BI tools? a. ability to create graphs of results b. ability to zoom in to view various levels of details c. ability to provide advice to the user on which model best suits the data d. ability to link disparate data to gain various levels of insights ANSWER: c 50. The graphical representation that summarizes the steps a consumer takes in making the decision to buy your product and become a customer is called _____. a. a word cloud b. a conversion funnel

c. a scatter diagram d. a pivot chart ANSWER: b 51. What determines the size of words in a word cloud? a. length of the word or phrase b. difficulty in pronouncing the word or phrase c. whether the word is a pronoun d. frequency of occurrence of the word in source documents ANSWER: d 52. Which of the following is IBM's BI product? a. Power BI Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Business Intelligence and Analytics b. Business objects c. Cognos d. Hyperion ANSWER: c 53. From which vendor is the BI product Business Objects available? a. IBM b. SAP c. Google d. Microsof t

ANSWER: b 54. _________ encourages nontechnical end users to make decisions based on facts and analyses rather

than intuition. a. Easy access to a degree in Statistics b. Self-service analytics c. Seeking expert opinions d. Outsourcing BI tasks ANSWER: b 55. Which of the following is a potential disadvantage with self-service BI? a. Accelerates and improves decision making. b. Can lead to over spending on unapproved data sources and business analytics tools. c. Encourages nontechnical end users to make decisions based on facts and analyses rather than intuition.

d. Gets valuable data into the hands of the people who need it the most—end users. ANSWER: b 56. The goal of business intelligence is to _____. a. provide access to novel tools to the users b. reduce the cost of data processing c. support and improve decision making d. improve employee morale ANSWER: c 57. Which of the following is NOT a commonly used BI tool? a. data visualization b. linear regression c. drill-down analysis d. automated customer service ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Business Intelligence and Analytics Completion 58. Without real time data, generating reports will take ____ time than with real time data. ANSWER: mor e

59. Business intelligence includes technologies for extraction, integration and visualization of ____ . ANSWER: data patterns

60. Business users access BI applications via the Web or through organizational ______ and extranets . ANSWER: intranets internal networks local area networks

61. Grocery stores can use BI tools to better ______ the demands, so that stock outs are reduced. ANSWER: predict forecast determin e estimate calculate compute

62. The goal of the data scientist is to ____ valuable insights that will influence organizational

decisions. ANSWER: uncover

discover find 63. Petroleum companies use BI tools that advise the refineries and oil traders on the mix of products to produce, buy, and sell in order to ______ profit. ANSWER: maximize 64. Data _____ is the core component of data management; it defines the roles, responsibilities, and

processes for ensuring that data can be trusted. ANSWER: governance

65. For BI to be successful, the _____ in the organization must be strongly committed to data-driven

decision making. ANSWER: management executives top-brass senior management Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Business Intelligence and Analytics upper management

66. ______ is the the interactive examination of high-level summary data in increasing detail to gain

insight into certain elements. ANSWER: Drill-down drill down drilldown

67. ____ is the first phase of the cross-industry process for data mining (CRIPS-DM). ANSWER: Business understanding Planning

68. Similar to what you find in a car, a business _____ provides rapid access to information, in an easy-

to-interpret and concise manner, which helps organizations run more effectively and efficiently. ANSWER: dashboard dashboards

69. Metrics that track progress in executing strategies to attain organizational objectives are also known as _______ (KPIs). ANSWER: Key performance indicators

70. Often times, information on dashboards are color coded, using the color ____ for problem areas. ANSWER: red 71. Suppose you wish to predict the value of shopping cart contents (order total), based on the amount of time the customer spent at the online store site. In a linear regression model, you will use order total as the ____ variable. ANSWER: Y Response dependent

72. Suppose the r2 (r squared) value for the linear regression is 0.85. You can state that the linear regression accounts for ____ percent of the variation in the dependent variable.

ANSWER: 85 73. Data ______ tools can take raw data and immediately provide a rich visual image. ANSWER: visualization 74. A ______ is a visual depiction of a set of words that have been grouped together because of the

frequency of their occurrence. Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Business Intelligence and Analytics ANSWER: word cloud 75. _______ tools can present data in an easy-to-understand fashion via formatted data, graphs, and

charts. ANSWER: reporting querying reporting and querying

76. The presentation of data in a pictorial or graphical format is called _____. ANSWER: data visualization 77. ____ is the most popular spreadsheet program. ANSWER: MS Excel Excel

Microsoft Excel

78. If you wish to present traffic trends on your company's Website, a _____ format is preferable to tabular formats. ANSWER: graphical

79. With the help of ____ analytics tools, users work independently to access data and perform their

own analyses. ANSWER: selfservice

80. A ___________ is an individual who combines strong business acumen, a deep understanding of analytics, and a healthy appreciation of the limitations of their data, tools, and techniques to deliver real improvements in decision making. ANSWER: data scientist Essay 81. In what ways can a BI system be useful to a grocery store? ANSWER The BI tool can be useful determining the demand for products by studying past transactions, and customer feedback. The users can run 'what-if' analyses on different : scenarios and prepare to have adequate stocks of items. These capabilities would help the store management to stock adequate amounts of items, while keeping the inventory expenses low. 82. You are to advise a business on how to ensure success with their BI initiatives. List four distinct strategies they must implement to succeed. ANSWER First, they must have good data management practices. Second, they need to ensure that good data government practices are in place. Third, they must have creative data : scientists who can identify opportunities for applying BI techniques on. Lastly, and most importantly, they must have good commitment from the upper management to Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Business Intelligence and Analytics embrace data driven decision making.

83. Suppose you are to develop a data cube for a student organization on campus that wishes to study the effects of membership drives. Describe what dimension variables and fact variables you will use. ANSWER For fact variable, we could use the number of members or amount of memberships collected or attendance figures at the student organization's events. We can use : 'membership drive', gender, major, semester, and student status (fulltime or partime), student residence (on-campus or off campus) as dimension variables.

84. Suppose you wish to study the relationship between the number of 'likes' on Facebook and the number of 'friends' one has on Facebook. Describe the statistical technique you would use. ANSWER I would the linear regression technique to study the relationship between number of 'likes' one gets and the number of friends one has on Facebook. The number of : friends will be the independent or predictor variable. The number of likes will be the dependent variable. We expect a positive association between the two variable and we can expect a positive slope in the the linear regression. I would like to see an rsquared value of 0.70 or higher to ensure that at least 70% of the variability in the dependent variable is described by the linear regression.

85. Suppose you are tasked with collecting customer comments on products and services and analyzing the data. What techniques will you employ and why? ANSWER I would use an analysis tool that can take in textual data as input and outputs quantitative data. A tool that can create word frequencies and word clould will be a : starting point. Based on the quantitative data, we can run additional analyses such as summary statistics, frequency counts etc. The tool should also have the capability to summarize the comments.

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