Business Intelligence International Edition, 2E Efraim Turban Test Bank

Business Intelligence International Edition, 2E

By Efraim Turban

Email: richard@qwconsultancy.com

Business Intelligence, 2e PIV (Turban/Sharda/Delen/King) Chapter 1 Business Intelligence 1) When faced with a turbulent business environment, organizations are best able to survive or even excel by minimizing changes until the environment stabilizes.

Answer: FALSE Diff: 2 Page Ref: 23 2) The management of Norfolk Southern, a large freight railroad company, invested in data warehousing technologies. Even though railroad transportation is a mature industry, Norfolk Southern gained a competitive advantage by using its data warehousing technologies to squeeze additional efficiency from its operations.

Answer: TRUE Diff: 2 Page Ref: 25 3) Globalization has significantly reduced the complexity of the business environment. For example, companies can find suppliers and customers in many countries where materials are cheaper, which reduces competition and complexity.

Answer: FALSE Diff: 3 Page Ref: 26 4) One of the major objectives of computerized decision support is to minimize the gap between the current performance of an organization and its desired performance.

Answer: TRUE Diff: 2 Page Ref: 28 5) Decision support concepts have been implemented incrementally, under different names, by many vendors who have created tools and methodologies for decision support.

Answer: TRUE Diff: 1 Page Ref: 28 6) Business intelligence (BI) is a narrow term that refers to specific architectures, tools, databases, analytical tools, applications, and methodologies.

Answer: FALSE Diff: 2 Page Ref: 28 7) BI's major objective is to enable interactive access, sometimes in real time, to data, to enable manipulation of data, and to give business managers and analysts the ability to conduct appropriate analysis.

Answer: TRUE Diff: 2 Page Ref: 28

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8) BI system has four major components: data warehouse, business analytics, business performance management; and a user interface Answer: TRUE Diff: 2 Page Ref: 30 9) A BI system's components include a decision support system with source data; business performance management (BPM) for monitoring and analyzing performance; and a user interface such as a dashboard.

Answer: FALSE Diff: 2 Page Ref: 30 10) In BI, data warehousing performs the monitoring and analyzing of performance.

Answer: FALSE Diff: 2 Page Ref: 30 11) Only the most current data is stored in the data warehouse to keep BI current.

Answer: FALSE Diff: 2 Page Ref: 30 12) End users can work with the data in a data warehouse by using reports, queries, and various data mining tools.

Answer: TRUE Diff: 2 Page Ref: 30 13) The advantage of BPM is that it extends the monitoring, measuring, and comparing of sales, profit, cost, profitability, and other performance indicators by introducing prediction and forecasting capabilities.

Answer: FALSE Diff: 2 Page Ref: 32 14) The benefits of dashboards are that they provide a comprehensive visual view of key performance indicators, trends, and exceptions.

Answer: TRUE Diff: 2 Page Ref: 32 15) Dashboards and information portals are important BI data visualization tools.

Answer: TRUE Diff: 2 Page Ref: 32 16) Automated decision systems (ADS) are rule-based systems that provide solutions to repetitive managerial problems, usually in one functional area (e.g., finance, manufacturing).

Answer: TRUE Diff: 3 Page Ref: 34

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17) Online Transaction Processing (OLTP) systems handle a company's routine on-going business. In contrast, a data warehouse is typically a distinct system that provides storage for data that will be made use of in analysis.

Answer: TRUE Diff: 3 Page Ref: 38 18) One of the most important aspects of a successful BI is that it must be of benefit to the enterprise as a whole rather than a single manager or task.

Answer: FALSE Diff: 2 Page Ref: 38 19) BI must be a technical exercise for the information systems department to insure its success.

Answer: FALSE Diff: 2 Page Ref: 39 20) Security and privacy are extremely important issues in the development of any computerized system, especially BI that contain data that may possess strategic value.

Answer: TRUE Diff: 3 Page Ref: 41 21) Norfolk Southern Railroad built a ________ application that pulls data from the data warehouse and then graphically depicts actual performance against planned performance.

A) dashboard B) graphical interface C) transaction processing D) forecasting Answer: A Diff: 2 Page Ref: 24 22) Norfolk Southern Railroad invested in a Teradata ________, which is a central repository of historical data that is organized for easy access and manipulation to support decision making.

A) database B) data warehouse C) data repository D) data disk Answer: B Diff: 2 Page Ref: 24 23) Numerous types of business ________ result from today's business climate.

A) decisions B) responses C) support D) pressures Answer: D Diff: 1 Page Ref: 26 3 .

24) Companies are facing each of the following impacts of globalization except: A) easier to find suppliers and customers in many countries B) less complex business environment C) cheaper materials D) more and stronger competitors Answer: B Diff: 2 Page Ref: 26 25) Which of the following is an organizational response to a business environmental factor?

A) customer demand B) government regulations C) new business models D) globalization Answer: C Diff: 3 Page Ref: 26 26) Today's computerized systems possess capabilities that can facilitate decision support in a number of ways, including each of the following except: A) increased productivity of group members B) improved communication and collaboration C) agility support D) reduced environmental pressures Answer: D Diff: 2 Page Ref: 26 27) Business environment factors that create pressures on organizations include all of the following except: A) workforce that is younger and shrinking B) need for real-time, on-demand transactions C) booming electronic markets on the Internet D) innovative marketing methods Answer: A Diff: 1 Page Ref: 27 28) One of the major objectives of ________ is to facilitate closing the gap between the current performance of an organization and its desired performance, as expressed in its mission, objectives, and goals.

A) business alliances B) customer relationships C) business models D) computerized decision support Answer: D Diff: 3 Page Ref: 28

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29) Which of the following is not a component of BI architecture?

A) Data B) Users C) User interface D) Web Answer: D Diff: 2 Page Ref: 30 30) The major benefit of ________ to the company is the ability to provide accurate information when needed.

A) data warehouse B) analytical models C) management information systems D) business intelligence Answer: D Diff: 2 Page Ref: 32 31) Organizations are being compelled to capture, understand, and harness their data to support decision making in order to improve: A) business operations B) competition C) compliance D) risk Answer: A Diff: 2 Page Ref: 32 32) ________ are now extremely compressed; faster, more informed, and better decision making is therefore a competitive imperative. Managers need the right information at the right time and in the right place.

A) R & D B) Business cycle times C) Product life cycle D) Forecasts Answer: B Diff: 3 Page Ref: 32 33) Which BI analytic application provides the following business value: Personalize customer relationships for higher satisfaction and retention?

A) customer segmentation B) fraud detection C) customer attrition D) channel optimization Answer: A Diff: 2 Page Ref: 33 5 .

34) Which BI analytic application provides the following business value: Prevent loss of highvalue customers and let go of lower-value customers?

A) customer segmentation B) fraud detection C) customer attrition D) channel optimization Answer: C Diff: 2 Page Ref: 33 35) Which BI analytic application provides the following business value: Interact with customers based on their preference and your need to manage cost?

A) customer segmentation B) fraud detection C) customer attrition D) channel optimization Answer: D Diff: 2 Page Ref: 33 36) A(n) ________ is a rule-based system that provides a solution, usually in one functional area, such as finance or manufacturing, to a specific repetitive managerial problem.

A) decision support systems (DSS) B) transaction processing system (TPS) C) online analytical processing (OLAP) system D) automated decision system (ADS) Answer: D Diff: 2 Page Ref: 34 37) The two critical partnerships required for ________ are a partnership between functional area heads and a partnership between potential customers and providers.

A) intelligence creation B) BI governance C) event-driven alerts D) predictive analysis Answer: B Diff: 2 Page Ref: 36

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38) Most operational data in Enterprise Resources Planning (ERP) systems are stored in ________ systems.

A) OLTP B) OLAP C) TPS D) DSS Answer: A Diff: 2 Page Ref: 38 39) Which of the following is not a function of a BI Competency Center (BICC)?

A) Demonstrates how BI is clearly linked to strategy and execution of strategy.

B) Encourages interaction between the potential business use communities and the IS organization.

C) Insures that the data warehouse platform is structured and remains stable enough to provide for changing business requirements.

D) Helps important stakeholders like high-level executives see how BI can play an important role.

Answer: C Diff: 2 Page Ref: 39 40) An approach to real-time, on-demand BI, commonly called ________, uses Web services to discover key business events.

A) business activity management (BAM) B) business performance management (BPM) C) business best practices D) operational control Answer: A Diff: 2 Page Ref: 40 41) Business intelligence (BI) combines architectures, tools, ________, analytical tools, applications, and methodologies.

Answer: databases Diff: 1 Page Ref: 28 42) Business intelligence's major objective is to enable ________ access to data, enable manipulation of these data, and to provide business managers and analysts the ability to conduct appropriate analysis.

Answer: interactive Diff: 2 Page Ref: 28 43) The process of business intelligence is based on the ________ of data to information, then to decisions, and finally to actions.

Answer: transformation Diff: 1 Page Ref: 29 7 .

44) ________ are the collection of tools for manipulating, mining, and analyzing the data in the data warehouse.

Answer: Business analytics Diff: 2 Page Ref: 30 45) Users can connect to the BI system via the ________, such as a browser.

Answer: user interface Diff: 1 Page Ref: 30 46) ________ is a process of searching for unknown relationships or information in large databases or data warehouses, using intelligent tools.

Answer: Data mining Diff: 1 Page Ref: 30 47) ________ which is also referred to as corporate performance management (CPM), is an emerging portfolio of applications and methodology that contains evolving BI architecture and tools in its core.

Answer: Business performance management (BPM) Diff: 2 Page Ref: 32 48) ________ are a type of user interface that provide a comprehensive visual view of corporate performance measures, trends, and exceptions.

Answer: Dashboards Diff: 2 Page Ref: 32 49) ________ are now extremely compressed; faster, more informed, and better decision making is therefore a competitive imperative.

Answer: Business cycle times Diff: 2 Page Ref: 32 50) ________ is a business rules-based system that uses intelligence to recommend solution to repetitive decisions, such as pricing.

Answer: Automated Decision Systems (ADS) Diff: 2 Page Ref: 34 51) One example of ADS is an ________ alert, which is a warning or action that is activated when a predefined or unusual event occurs.

Answer: event-driven Diff: 2 Page Ref: 35 52) Critical partnerships required for ________ are a partnership between functional area heads and a partnership between potential customers and providers.

Answer: BI governance Diff: 2 Page Ref: 36 8 .

53) For each potential BI project in the portfolio, it is important to use return on investments (ROI) and total cost of ownership measures to estimate the ________ ratio.

Answer: cost-benefit Diff: 2 Page Ref: 36 54) A major ________ issue is who should serve as decision makers involved in prioritizing BI projects.

Answer: BI governance Diff: 2 Page Ref: 36 55) Online Transaction Processing (OLTP) systems handle a company's ________ business.

Answer: routine on-going Diff: 2 Page Ref: 38 56) Most operational data in supply chain management (SCM) or customer relationship management (CRM) systems are stored in ________ systems.

Answer: OLTP Diff: 2 Page Ref: 38 57) First and foremost, the fundamental reasons for investing in BI must be ________ with the company's business strategy.

Answer: aligned Diff: 2 Page Ref: 39 58) Software monitors called ________ can be placed on a separate server in the network or on the transactional application databases themselves, and they can use event- and process-based approaches to proactively and intelligently measure and monitor operational processes.

Answer: intelligent agents Diff: 2 Page Ref: 40 59) Traditional BI systems use a large volume of ________ data that has been extracted, cleansed, and loaded into a data warehouse to produce reports and analyses.

Answer: static Diff: 2 Page Ref: 40 60) An approach to real-time, on-demand BI, commonly called ________, uses Web services to discover key business events.

Answer: business activity management (BAM) Diff: 2 Page Ref: 40 61) List four major business environmental factors in today's business environment.

Answer: See Table 1.1 in the textbook.

Diff: 2 Page Ref: 26

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62) List the components of the architecture of business intelligence.

Answer: • Data warehouse with source data • Business analytics, a collection of tools for manipulating, mining, and analyzing the data in the data warehouse • Business performance management (BPM) for monitoring and analysis of performance • User interface Diff: 1 Page Ref: 30 63) End users can work with the data and information in a data warehouse by using a variety of tools and techniques. These tools and techniques fit into two major categories. Identify and explain or give examples of these two categories.

Answer: 1. Reports and queries. Business analytics include static and dynamic reporting, all types of queries.

2. Data, text, and Web mining and other statistical tools. Data mining is a process of searching for unknown relationships or information in large databases or data warehouses, using intelligent tools such as neural computing, predictive analytics techniques, or advanced statistical methods.

Diff: 2 Page Ref: 30 64) What is business performance management (BPM)?

Answer: BPM is a portfolio of applications and methodology. BPM extends the monitoring, measuring, and comparing of sales, profit, cost, profitability, and other performance indicators by introducing the concept of management and feedback.

Diff: 2 Page Ref: 32 65) List two BI analytical applications and their business value.

Answer: See Table 1.2 in textbook.

Diff: 3 Page Ref: 33

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Business Intelligence, 2e PIV (Turban/Sharda/Delen/King) Chapter 2 Data Warehousing 1) Before implementing an active data warehouse solution, DirecTV pulled data from the server every night in batch mode, a process that was taking too long and straining the system.

Answer: TRUE Diff: 2 Page Ref: 50 2) A real-time data warehouse together with a decision support system that leverages integrated data can provide significant financial benefits for an organization.

Answer: TRUE Diff: 2 Page Ref: 52 3) A data warehouse differs from an operational database in that most data warehouses have a product orientation and are designed to handle transactions that update the database.

Answer: FALSE Diff: 1 Page Ref: 52 4) A data warehouse maintains historical data that do not necessarily provide current status, except in real-time systems.

Answer: TRUE Diff: 2 Page Ref: 53 5) Once the data are entered into the data warehouse, users cannot change or update the data.

Answer: TRUE Diff: 2 Page Ref: 53 6) There are three main types of data warehouses, which are data marts, operational data stores, and enterprise data warehouses.

Answer: TRUE Diff: 2 Page Ref: 53 7) An independent data mart is a small warehouse designed for a strategic business unit (SBU) or a department whose source is an EDW. Answer: FALSE Diff: 2 Page Ref: 53 8) Operational data store is used for the medium- and long-term decisions associated with the enterprise data warehouse (EDW).

Answer: FALSE Diff: 3 Page Ref: 53 9) The data for an oper mart come from an ODS. Answer: TRUE Diff: 2 Page Ref: 54 1 .

10) Effectiveness, extensibility, reusability, interoperability, efficiency and performance, evolution, entitlement, flexibility, segregation, user interface, versioning, versatility, and low maintenance cost are some of the key requirements for building a successful metadata-driven enterprise.

Answer: TRUE Diff: 1 Page Ref: 56 11) There are several levels of metadata management maturity that describe where an organization is in terms of how and how well it uses its metadata.

Answer: TRUE Diff: 2 Page Ref: 56 12) There are ethical considerations involved in the collection and ownership of the information contained in metadata, including privacy and intellectual property issues.

Answer: TRUE Diff: 2 Page Ref: 56 13) There are many metaware tools that business users can use to access data stored in the data repositories, including data mining, reporting tools, and data visualization.

Answer: FALSE Diff: 1 Page Ref: 57 14) In a three-tier architecture, operational systems contain the data and the software for data acquisition in the first tier, the data warehouse is a second tier, and the third tier includes the DSS/BI/BA engine.

Answer: TRUE Diff: 2 Page Ref: 58 15) The centralized data warehouse helps to simplify data management and administration and reduce data redundancy.

Answer: FALSE Diff: 2 Page Ref: 62 16) Because of performance and data quality issues, most experts agree that federated approaches work well to replace data warehouses.

Answer: FALSE Diff: 1 Page Ref: 62 17) According to conventional wisdom, independent data marts are a poor architectural solution.

Answer: TRUE Diff: 2 Page Ref: 64

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18) ETL tools transport data between sources and targets, document how data elements change as they move between source and target, exchange metadata with other applications, and administer all runtime processes and operations.

Answer: TRUE Diff: 2 Page Ref: 68 19) A hosted data warehouse has less functionality than an onsite data warehouse, but it does not consume computer resources on client premises for computer upgrades, software licenses, inhouse development, and in-house support and maintenance.

Answer: FALSE Diff: 2 Page Ref: 74 20) A data warehouse needs to support scalability, which pertains to the amount of data in the warehouse, how quickly the warehouse is expected to grow, the number of concurrent users, and the complexity of user queries.

Answer: TRUE Diff: 3 Page Ref: 82 21) When DirectTV decided to implement an active data warehouse solution, the goal of the new system was to send fresh data to the call center at least daily. Once the capabilities of the solutions became apparent, that goal: A) dropped to fresh data of less than 15 minutes to improve responsiveness.

B) dropped to fresh data every 12 hours to improve responsiveness.

C) increased to every 2 days to reduce maintenance costs.

D) increased to every 5 days to reduce maintenance costs.

Answer: A Diff: 2 Page Ref: 50 22) Data warehouse is a(n) ________, integrated, time-variant, nonvolatile collection of data in support of management's decision making process.

A) analysis-oriented B) object-oriented C) subject-oriented D) model-oriented Answer: C Diff: 2 Page Ref: 52

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23) Once data are entered into the warehouse, users cannot change or update the data. Obsolete data are discarded, and changes are recorded as new data. This ________ characteristic is one of the characteristics of data warehousing.

A) changeable B) nonvolatile C) nonperishable D) static Answer: B Diff: 2 Page Ref: 53 24) A data warehouse contains ________ about how data are organized and how to use them effectively.

A) a data directory B) a data index C) data fields D) metadata Answer: D Diff: 2 Page Ref: 53 25) The high cost of data warehouses limits their use to large companies. As an alternative, many firms use a lower-cost, scaled-down version of a data warehouse referred to as (an) ________.

A) data mart B) operational data store C) dependent data mart D) independent data mart Answer: D Diff: 2 Page Ref: 53 26) Which of the following are created when operational data need to be analyzed multidimensionally?

A) Oper marts B) Customer information file C) Dependent data marts D) Independent data marts Answer: A Diff: 2 Page Ref: 54 27) Which of the following is not a data source to a data warehouse?

A) ERP B) Legacy C) POS D) ETL Answer: D Diff: 2 Page Ref: 57 4 .

28) Which of the following is one of the components of data warehousing process that enables users to access the data warehouse?

A) Middleware tools B) Users interface C) Query tools D) OLAP Answer: A Diff: 2 Page Ref: 58 29) The advantage of three-tier architecture for data warehousing is its separation of the functions of the data warehouse, which eliminates resource constraints and makes it possible to easily create data ________.

A) banks B) cubes C) bases D) marts Answer: D Diff: 1 Page Ref: 58 30) The ________ have inconsistent data definitions and different dimensions and measures, making it difficult to analyze data across those marts.

A) enterprise data marts B) operational data marts C) dependent data marts D) independent data marts Answer: D Diff: 2 Page Ref: 62 31) Users demanding access via PDAs and through speech recognition and synthesis is becoming more commonplace, further complicating ________ issues.

A) data extraction B) data load C) data integration D) OLAP Answer: C Diff: 1 Page Ref: 65

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32) Which of the following is an evolving tool space that promises real-time data integration from a variety of sources, such as relational databases, Web services, and multidimensional databases?

A) Information integration B) Data management integration C) SQL data integration D) Enterprise information integration (EII) Answer: D Diff: 2 Page Ref: 67 33) ETL process consists of extract, transform, and load. Transformation occurs by using ________ or lookup tables or by combining the data with other data.

A) rules B) policies C) strategies D) procedures Answer: A Diff: 2 Page Ref: 67 34) Karacsony indicates that there is a direct correlation between the extent of ________ data and the amount of ETL processes. When data are managed correctly as an enterprise asset, ETL efforts are significantly reduced.

A) enormous B) bad C) redundant D) wrong Answer: C Diff: 3 Page Ref: 69 35) Which of the following is not a direct benefit of a data warehouse?

A) End users can perform extensive analysis in numerous ways.

B) A consolidated view of the data provides a single version of the truth.

C) Simplified data access D) Improved customer service and satisfaction Answer: D Diff: 2 Page Ref: 69 36) Guidelines that need to be considered when developing a vendor list include all of the following except: A) financial strength B) trade shows C) ERP linkages D) market share Answer: B Diff: 2 Page Ref: 72 6 .

37) A star schema contains a central ________ surrounded by several dimension tables.

A) database B) fact table C) data tree D) data table Answer: B Diff: 2 Page Ref: 75 38) Which of the following is not one of the failure factors in data warehousing?

A) Cultural issues are ignored.

B) inappropriate architecture C) unrealistic expectations D) high levels of data summarization Answer: D Diff: 3 Page Ref: 81 39) ________ is a critical aspect of data warehousing that includes reconciling conflicting data definitions and formats organization-wide.

A) Data modification B) Fact refinement C) Data purification D) Data cleansing Answer: D Diff: 2 Page Ref: 82 40) Which of the following is needed to determine how data are to be retrieved from a data warehouse, and will assist in the physical definition of the warehouse by helping to define which data require indexing?

A) Indexing modeling B) Retrieval modeling C) Access modeling D) Tactic modeling Answer: C Diff: 2 Page Ref: 83 41) Data often are fragmented in distinct operational systems, so managers often make decisions with partial information at best. ________ cuts through this obstacle by accessing, integrating, and organizing key operational data in a form that is consistent, reliable, timely, and readily available where needed.

Answer: Data warehousing Diff: 1 Page Ref: 52

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42) ________ is a subset that is created directly from the data warehouse. It has the advantages of using a consistent data model and providing quality data.

Answer: Dependent data mart Diff: 2 Page Ref: 53 43) ________ is a small data warehouse designed for a strategic business unit (SBU) or a department.

Answer: Independent data mart Diff: 1 Page Ref: 53 44) ________ provides a fairly recent form of customer information files (CIF). It is a type of database often used as an interim staging area for a data warehouse.

Answer: Operational data store (ODS) Diff: 2 Page Ref: 53 45) An ________ is a large-scale data warehouse that is utilized across the enterprise for decision support.

Answer: enterprise data warehouse (EDW) Diff: 1 Page Ref: 54 46) In three-tier architecture for data warehouse, ________ contain the data and the software for data acquisition in one tier, the data warehouse is another tier, and the third tier includes the decision support and the client.

Answer: operational systems Diff: 3 Page Ref: 58 47) The ________ is a concession to the natural forces that undermine the best plans for developing a perfect system. It uses all possible means to integrate analytical resources from multiple sources to meet changing needs or business conditions.

Answer: federated approach Diff: 2 Page Ref: 62 48) ________ comprises three major processes that, when correctly implemented, permits data to be accessed and made accessible to an array of ETL and analysis tools and data warehousing environment.

Answer: Data integration Diff: 2 Page Ref: 65 49) EII (enterprise information integration) tools use predefined metadata to populate views that make integrated data appear relational to end-users. ________ may be the most important aspect of EII, because it allows data to be tagged either at the time of creation or later.

Answer: Extensible markup language (XML) Diff: 2 Page Ref: 67

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50) One of the benefits of a well-designed data warehouse is that business rules can be stored in a ________ repository and applied to the data warehouse centrally.

Answer: metadata Diff: 3 Page Ref: 68 51) A data warehouse contains numerous ________ that define such things as how the data will be used, summarization rules, standardization of encoded attributes, and calculation rules.

Answer: business rules Diff: 2 Page Ref: 68 52) The ________ is a scaled-down version of the data warehouse that centers on the requests of a specific department, such as marketing or sales.

Answer: data mart Diff: 1 Page Ref: 72 53) The data warehouse design is based upon the concept of ________ modeling, which is a retrieval-based model that supports high-volume query access.

Answer: dimensional Diff: 2 Page Ref: 75 54) A(n) ________ contains the attributes needed to perform decision analysis, descriptive attributes used for query reporting, and foreign keys to link to dimension tables.

Answer: fact table Diff: 2 Page Ref: 75 55) A(n) ________ data warehouse has nearly the same, if not more, functionality as an on-site data warehouse, but it does not consume computer resources on client premises.

Answer: hosted Diff: 2 Page Ref: 75 56) Once the data are properly stored in a data warehouse, that data can be used in various ways to support organizational ________.

Answer: decision making Diff: 2 Page Ref: 76 57) During data modeling, expertise is required to determine what data are needed, define business rules associated with the data, and decide what ________ and other calculations may be necessary.

Answer: aggregations Diff: 3 Page Ref: 76

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58) The main issues pertaining to ________ are the amount of data in the warehouse, how quickly the warehouse is expected to grow, the number of concurrent users, and the complexity of user queries.

Answer: scalability Diff: 3 Page Ref: 84 59) ________ is the process of loading and provides data via the data warehouse as they become available.

Answer: Real-time data warehousing (RDW) or active data warehousing (ADW) Diff: 2 Page Ref: 85 60) ________ is the person responsible for the administration and management of a data warehouse.

Answer: Data warehouse administrator (DWA) Diff: 2 Page Ref: 90 61) List four fundamental characteristics of a data warehouse.

Answer: • Subject-oriented • Integrated • Time variant (time series) • Nonvolatile • Real time • Web based • Contains internal and external data • Contains metadata Diff: 2 Page Ref: 52 62) Describe the major components of the data warehousing process.

Answer: • Data sources. Data are sourced from multiple independent operational "legacy" systems and possibly from external data providers (such as the U.S. Census).

• Data extraction. Data are extracted using custom-written or commercial software called extraction, transformation, and load (ETL).

• Data loading. Data are then loaded into a staging area where they are transformed and cleansed.

• Comprehensive database. The enterprise data warehouse to support all decision analysis.

• Metadata. Metadata are maintained so that they can be assessed by IT personnel and users.

• Middleware tools. Middleware tools enable access to the data warehouse.

Diff: 2 Page Ref: 57

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63) What are the issues to consider when deciding which architecture for data warehousing to use?

Answer: • Which database management system (DBMS) to use?

• Will parallel processing and/or partitioning be used?

• Will data migration tools be used to load the data warehouse?

• What tools will be used to support data retrieval and analysis?

Diff: 2 Page Ref: 60 64) Describe or sketch two alternative architectures to the basic architectural design types in data warehousing.

Answer: See Figure 2.5 in the textbook.

Diff: 2 Page Ref: 61 65) List five factors that potentially affect the architecture selection decision.

Answer: Any five of the following: 1. Information interdependence between organizational units 2. Upper management's information needs 3. Urgency of need for a data warehouse 4. Nature of end-user tasks 5. Constraints on resources 6. Strategic view of the data warehouse prior to implementation 7. Compatibility with existing systems 8. Perceived ability of the in-house IT staff 9. Technical Issues 10. Social/political factors Diff: 2 Page Ref: 63 66) Describe various integration technologies that enable data and metadata integration.

Answer: • Enterprise application integration (EAI). It provides a vehicle for pushing data from source systems into the data warehouse. It involves integrating application functionality and is focused on sharing functionality across systems, thereby enabling flexibility and reuse.

• Service-oriented architecture (SOA). Coarse-grained services that are well defined and documented • Enterprise information integration (EII). An evolving tool space that promises real-time data integration from a variety of sources such as relational databases, Web services, and multidimensional databases • Extraction, transformation, and load (ETL). Instrumental in the process and use of data warehouses Diff: 3 Page Ref: 67

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67) Describe various issues that affect whether an organization will purchase data transformation tools or build the transformation process itself.

Answer: • Data transformation tools are expensive.

• Data transformation tools may have a long learning curve.

• It is difficult to measure how the IT organization is doing until it has learned to use the tools.

Diff: 2 Page Ref: 68 68) Describe a star schema.

Answer: Data warehouse design is based upon the concept of dimensional modeling. The dimensional model is implemented with a star schema. The star schema is the means by which dimensional modeling is implemented. A star schema contains a central fact table. A fact table contains the attributes needed to perform decision analysis, descriptive attributes used for query reporting, and foreign keys to link to dimension tables. The fact tables describe what data can be analyzed; dimension tables describe how data can be analyzed.

Diff: 3 Page Ref: 75 69) List five benefits of a hosted data warehouse.

Answer: Any five of the following: • Minimal investment in infrastructure • Frees up capacity on in-house systems • Frees up cash flow • Powerful solutions are affordable • Powerful solutions provide for growth • Better quality equipment and software • Faster connections • Ability to access data from remote locations • Allows a company focus on core business • Meets storage needs for large volumes of data Diff: 2 Page Ref: 75

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70) Identify five data warehouse best practices.

Answer: Any five of the following: • The project must fit with corporate strategy and business objectives.

• There must be complete buy-in to the project.

• Manage user expectations.

• The data warehouse must be built incrementally.

• Build in adaptability.

• The project must be managed by both IT and business professionals.

• Develop a business supplier relationship.

• Only load data that have been cleansed and are of a quality understood by the organization.

• Do not overlook training requirements.

• Be politically aware.

Diff: 2 Page Ref: 81

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Business Intelligence, 2e PIV (Turban/Sharda/Delen/King) Chapter 3 Business Performance Management 1) Business performance management (BPM) is an outgrowth of decision support systems (DSS), enterprise information systems (EIS), and business intelligence (BI).

Answer: TRUE Diff: 1 Page Ref: 101 2) The term business performance management (BPM) refers to the business processes, methodologies, metrics, and technologies used by enterprises to measure, monitor, and manage business performance.

Answer: TRUE Diff: 1 Page Ref: 101 3) A data mart forms the base of a closed-loop marketing system that enables Harrah's to define the objectives of its marketing campaigns, to execute and monitor those campaigns, and to learn what types of campaigns provide the highest return for particular types of customers.

Answer: FALSE Diff: 2 Page Ref: 103 4) Harrah's closed-loop marketing system has all the hallmarks of a performance management system.

Answer: TRUE Diff: 1 Page Ref: 105 5) For a low-cost provider such as Wal-Mart, distribution capabilities are a critical success factor.

Answer: TRUE Diff: 1 Page Ref: 108 6) The Palladium Group found that 75 percent of organizations tied their budgets to their strategic plans.

Answer: FALSE Diff: 1 Page Ref: 109 7) An operational plan translates an organization's strategic objectives and goals into a set of well-defined tactics and initiatives, resource requirements, and expected results for some future time period, usually, but not always, a month.

Answer: FALSE Diff: 1 Page Ref: 109 8) In a budget-centric operational plan, tactics are established to meet the objectives and targets established in the strategic plan.

Answer: FALSE Diff: 1 Page Ref: 110 1 .

9) A comprehensive framework for monitoring performance should address two key issues: what to monitor and how to monitor.

Answer: TRUE Diff: 2 Page Ref: 111 10) The average knowledge worker spent less than 20 percent of his or her time focused on higher-value analytical and decision support tasks, according to the Saxon Group's findings.

Answer: TRUE Diff: 2 Page Ref: 116 11) A KPI represents a tactical objective and measures performance against a goal.

Answer: FALSE Diff: 2 Page Ref: 117 12) An effective performance measurement system should not change measurements even when the underlying processes and strategies change.

Answer: FALSE Diff: 1 Page Ref: 123 13) Both balanced scorecards and Six Sigma are performance management tools and methodologies.

Answer: TRUE Diff: 1 Page Ref: 123 14) Six Sigma is a performance management methodology aimed at reducing the number of defects in a business process to as close to zero DPMO (defects per million opportunities) as possible.

Answer: TRUE Diff: 2 Page Ref: 126 15) Unlike BPM, DMAIC is an open-loop business improvement model that encompasses the steps of defining, measuring, analyzing, improving, and controlling a process.

Answer: FALSE Diff: 2 Page Ref: 127 16) Lean manufacturing focuses on the elimination of waste or non-value-added activities, whereas Six Sigma focuses on reducing the variation or improving the consistency of a process.

Answer: TRUE Diff: 2 Page Ref: 128 17) Six Sigma is drastically different from other business initiatives.

Answer: FALSE Diff: 1 Page Ref: 128

2 .

18) Operational dashboards are used by managers and analysts to track, on weekly basis, raw data generated from departmental processes and projects.

Answer: FALSE Diff: 2 Page Ref: 137 19) The primary challenge of dashboard design is to display all the required information to be displayed clearly and without distraction on a single screen in a manner that can be assimilated quickly.

Answer: TRUE Diff: 1 Page Ref: 139 20) With comparative measures, it is important to point out whether a particular number is good or bad and whether it is trending in the right direction. Without these designations, it can be time-consuming to determine the status of a particular number or result.

Answer: TRUE Diff: 2 Page Ref: 139 21) What was the most important service provided by Harrah's Total Rewards program?

A) It provided Harrah's with a vast collection of high volume, real-time transaction data about its customers and their behaviors.

B) The program served to reward customers with cash for their gaming.

C) The program served to reward customers with comps for their gaming.

D) Opulent accommodations and surroundings for loyal customers.

Answer: A Diff: 2 Page Ref: 103 22) The term business performance management (BPM) encompasses three key components, which include all of the following except: A) a set of integrated, closed-loop management and analytic processes, supported by technology, that address financial as well as operational activities B) an enterprise-wide strategy that helps to optimize local business performance C) tools for businesses to define strategic goals and then measure and manage performance against those goals D) a core set of processes, including financial and operational planning, modeling, analysis, and monitoring of key performance indicators (KPIs), linked to organizational strategy Answer: B Diff: 3 Page Ref: 105

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23) BPM encompasses a core set of processes, including financial and ________ planning, consolidation and reporting, modeling, analysis, and monitoring of KPIs, linked to organizational strategy.

A) strategic B) tactical C) operational D) daily Answer: C Diff: 2 Page Ref: 105 24) BPM is an enterprise-wide strategy that seeks to prevent organizations from optimizing ________ business at the expense of overall corporate performance.

A) corporate wise B) global C) regional D) local Answer: D Diff: 2 Page Ref: 106 25) A(n) ________ plan translates an organization's strategic objectives and goals into a set of well-defined tactics and initiatives, resources requirements, and expected results for some future time period.

A) business B) operational C) tactical D) strategic Answer: B Diff: 1 Page Ref: 109 26) Fundamentally, an operational plan is like a project plan that is designed to ensure that an organization's ________ is realized.

A) business policy B) plan C) strategy D) business rules Answer: C Diff: 1 Page Ref: 109

4 .

27) Best practice organizations tend to utilize ________ operational planning, which begins the operational planning process by defining the alternative tactics and initiatives that can be used to reach a particular target.

A) tactic-centric B) budget-centric C) cost-centric D) revenue-centric Answer: A Diff: 1 Page Ref: 110 28) An organization's strategic objectives and key metrics should serve as ________ drivers for the allocation of an organization's tangible and intangible assets.

A) bottom-up B) top-down C) company wide D) revenues Answer: B Diff: 1 Page Ref: 110 29) Which of the following is not a part of a cybernetic system?

A) Inputs B) Standard C) Feedback channel D) Diagnostic mechanism Answer: D Diff: 3 Page Ref: 111 30) An effective diagnostic control system encourages ________.

A) management by exception B) strict rules C) democratic rules D) elite rules Answer: A Diff: 2 Page Ref: 111 31) The effectiveness of a campaign is measured by ________.

A) net cost and productivity B) relative profitability and net value C) gross revenue and net income D) cost and quality Answer: B Diff: 2 Page Ref: 116

5 .

32) Saxon Group's benchmarking results indicate that best practice organizations: A) focus on competition instead of on cause-and-effect relationships between tactics and objectives.

B) develop better predictions or plans.

C) are far better equipped to quickly identify changes or problems, diagnose the root causes, and take corrective action.

D) are historic and internally focused.

Answer: C Diff: 2 Page Ref: 117 33) Which of the following is not what an effective performance measurement system should do?

A) Align top-level strategic objectives and bottom-level initiatives.

B) Identify opportunities in a timely fashion.

C) Determine priorities and allocate resources based on those priorities.

D) Maintain measurement when the underlying processes and strategies change.

Answer: D Diff: 2 Page Ref: 123 34) Which of the following is the best-known and most widely used performance management system?

A) Dashboard B) Performance reengineering C) Balanced scorecard (BSC) D) Total quality management Answer: C Diff: 1 Page Ref: 123 35) BSC translates an organization's vision and strategy into a set of interrelated financial and nonfinancial objectives. All of the following are nonfinancial objectives except: A) business rules B) customers C) internal business process D) learning and growth Answer: A Diff: 1 Page Ref: 124

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36) A ________ delineates the process of value creation through a series of cause-and-effect relationships among the key organizational objectives for all four BSC perspectives--financial, customer, process, and learning and growth.

A) balanced scorecard B) strategic theme C) strategy map D) KPI Answer: C Diff: 2 Page Ref: 125 37) Sigma, σ, is a Greek alphabet letter used by statisticians to measure the ________ in a process.

A) variance B) mean C) inconsistency D) variability Answer: D Diff: 2 Page Ref: 126 38) Which of the following about Six Sigma is not true?

A) Six Sigma focuses on the elimination of waste activities, whereas lean focuses on reducing the variation or improving the consistency of a process.

B) Most companies use Six Sigma as a process improvement methodology that enables them to scrutinize their processes, pinpoint problems, and apply remedies.

C) Six Sigma is a performance management methodology aimed at reducing the number of defects in a business process to as close to zero DPMO as possible.

D) Six Sigma uses DMAIC, a closed-loop business improvement model that involves the steps of defining, measuring, analyzing, improving, and controlling a process.

Answer: A Diff: 3 Page Ref: 126 39) Logically speaking, a BPM system consists of three basic parts, or layers. Which of the following is not one of those parts or layers?

A) BPM applications B) Dashboards and scorecards C) Information hub D) Source systems Answer: B Diff: 2 Page Ref: 132

7 .

40) Characteristics of all well-designed dashboards and scorecards include all of the following except: A) they present a static, real-world view of the data B) they use visual components to highlight, at a glance, the data and exceptions that require action C) they are transparent to the user and extremely easy to use D) they enable drill-down or drill-through to underlying data sources or reports Answer: A Diff: 3 Page Ref: 139 41) ________ is a framework for organizing, automating, and analyzing business methodologies, metrics, processes, and systems to drive the overall performance of the enterprise.

Answer: Business performance management (BPM) Diff: 1 Page Ref: 105 42) ________ outline those things that an organization must excel at to be successful in their market space.

Answer: Critical success factors (CSF) Diff: 2 Page Ref: 108 43) A(n) ________ is a standard strengths, weaknesses, opportunities, and threats (SWOT) assessment of the company.

Answer: environment scan Diff: 2 Page Ref: 108 44) ________ is used to identify and prioritize the internal strengths and weaknesses in an organization's processes, structures, and its technologies and applications.

Answer: Gap analysis Diff: 2 Page Ref: 108 45) A ________ is the quantification of an objective for a designated period of time. For example, if an organization has an objective of increasing profitability, that objective is turned into quantified targets.

Answer: strategic goal Diff: 2 Page Ref: 108 46) In a ________ plan, tactics are established to meet the objectives and targets established in the strategic plan.

Answer: tactic-centric Diff: 2 Page Ref: 110 47) Most companies use ________ to monitor organizational performance and correct deviations from present performance standards.

Answer: diagnostic control system Diff: 2 Page Ref: 111 8 .

48) KPIs stand for ________, which are strategically aligned metrics.

Answer: key performance indicators Diff: 1 Page Ref: 117 49) Targets are measured against a baseline or ________.

Answer: benchmark Diff: 1 Page Ref: 118 50) A ________ delineates the relationships among the key organizational objectives for all BSC perspectives.

Answer: strategy map Diff: 2 Page Ref: 125 51) A ________ is a set of activities that transform a set of inputs that include suppliers, assets, resources, and information into a set of outputs for another person or process.

Answer: business process Diff: 1 Page Ref: 126 52) Six Sigma is a performance management methodology aimed at reducing the number of defects in a business process to as close to ________ as possible.

Answer: zero DPMO Diff: 3 Page Ref: 126 53) DMAIC is a ________ business improvement model.

Answer: closed-loop Diff: 2 Page Ref: 127 54) To achieve a Six Sigma level of performance, the company would have to reduce the number of defects to no more than ________ DPMO. Answer: 3.4 Diff: 2 Page Ref: 126 55) Six Sigma and Lean Production both deal with ________.

Answer: quality Diff: 1 Page Ref: 127 56) ________ focuses on the elimination of waste or non-value–added activities.

Answer: Lean Diff: 1 Page Ref: 128 57) ________ focuses on reducing the variation or improving the consistency of a process.

Answer: Six Sigma Diff: 2 Page Ref: 128

9 .

58) In recent years, there has been a focus on combining the Six Sigma methodology with the ________.

Answer: Lean strategy Diff: 2 Page Ref: 128 59) ________ refers to both the logical and physical design of a system.

Answer: System architecture Diff: 2 Page Ref: 132 60) Dashboards and ________ both provide visual displays of important information that is consolidated and arranged on a single screen so that information can be digested at a single glance and easily explored.

Answer: scorecards Diff: 1 Page Ref: 137 61) What are the three key components of business performance management (BPM)?

Answer: • A set of integrated, closed-loop management and analytic processes, supported by technology, that address financial as well as operational activities • Tools for businesses to define strategic goals and then measure and manage performance against those goals • A core set of processes, including financial and operational planning, consolidation and reporting, modeling, analysis, and monitoring of key performance indicators (KPIs), linked to organizational strategy Diff: 2 Page Ref: 105 62) Describe or sketch the BPM cycle.

Answer: See Figure 3.1 in the textbook.

Diff: 2 Page Ref: 106

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63) Describe the common tasks in strategic planning process.

Answer: • Conduct a current situation analysis. This analysis reviews the company's current situation and establishes a baseline, as well as key trends, for financial performance and operational performance.

• Determine the planning horizon. The more volatile, less predictable, shorter the life cycles, smaller the organization, faster the rate of innovation, and less the capital intensity, then the shorter the planning horizon.

• Conduct an environment scan. This is a standard strengths, weaknesses, opportunities, and threats (SWOT) assessment of the company.

• Identify critical success factors. Critical success factors (CSF) delineate those things that an organization must excel at to be successful in their market space.

• Complete a gap analysis. This analysis is used to identify and prioritize the internal strengths and weaknesses in an organization's processes, structures, and its technologies.

• Create a strategic vision. An organization's strategic vision provides a mental image of what the organization should look like in the future.

• Develop a business strategy. The challenge in this step is to produce a strategy that is based on the data from the previous steps and is consistent with the strategic vision.

• Identify strategic objectives and goals. A strategic plan that fails to provide clear directions for the operational and financial planning process is incomplete.

Diff: 2 Page Ref: 107 64) A number of surveys have highlighted the gap that routinely exists in organizations between their strategic plans and the execution of those plans. What are the reasons for this strategy gap?

Answer: 1. Communication. In many organizations, a very small percentage of the employees understand the organization's strategy. On the other hand, even when the plan is communicated, the strategy often lacks clarity, so that no one is quite sure whether their actions are in line or at variance with the plan.

2. Alignment of Rewards and Incentives. Linking pay to performance is important for successful execution. However, incentive plans are often linked to short-term financial results, not to the strategic plan.

3. Focus. Management often spends time on the periphery of issues rather than concentrating on the core elements.

4. Resources. Unless strategic initiatives are properly funded and resourced, their failure is virtually assured.

Diff: 2 Page Ref: 109

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65) Describe the conditions under which an information system can be used as diagnostic control system.

Answer: • Able to set a goal in advance • Able to measure outputs • Able to compute or calculate absolute or relative performance variances • Able to use the variance information as feedback to alter inputs and/or processes to bring performance back in line with present goals and standards Diff: 2 Page Ref: 111 66) Describe the series of three steps in the discovery-driven planning (DDP).

Answer: 1. Reverse financials. The first step is to use a set of financial documents to model how all the various assumptions in a plan affect one another; and to determine whether the plan is gaining traction or is at risk.

2. Deliverables specification. The second step is to lay out all the activities required to produce, sell, service, and deliver the product or service to the customer.

3. Assumption checklist. All of the activities required to build a business rest on key assumptions. In this step, a written checklist of each of the assumptions associated with the project deliverables laid out in step 2 is created.

Diff: 2 Page Ref: 114 67) Explain three of the drawbacks or limitations of using financial data as the core of a performance measurement system.

Answer: The drawbacks of using financial data as the core of a performance measurement system are well known. Among the limitations most frequently cited are: • Financial measures are usually reported by organizational structures (e.g., research and development expenses) and not by the processes that produced them.

• Financial measures are lagging indicators, telling what happened, not why it happened or what is likely to happen in the future.

• Financial measures (e.g., administrative overhead) are often the product of allocations that are not related to the underlying processes that generated them.

• Financial measures are focused on the short term and provide little information about the longer term.

Diff: 2 Page Ref: 119 68) List the basic ingredients of good performance measures.

Answer: • Measures should focus on key factors.

• Measures should be a mix of past, present, and future.

• Measures should balance the needs of shareholders, employees, partners, suppliers, and other stakeholders.

• Measures should start at the top and flow down to the bottom.

• Measures need to have targets that are based on research and reality rather than arbitrary.

Diff: 2 Page Ref: 120 12 .

69) Describe the steps in DMAIC performance model.

Answer: • Define. Define the goals, objectives, and boundaries of the improvement activity. At the top level, the goals are the strategic objectives of the company. At lower levels–department or project levels–the goals are focused on specific operational processes.

• Measure. Measure the existing system. Establish quantitative measures that will yield statistically valid data. The data can be used to monitor progress toward the goals defined in the previous step.

• Analyze. Analyze the system to identify ways to eliminate the gap between the current performance of the system or process and the desired goal.

• Improve. Initiate actions to eliminate the gap by finding ways to do things better, cheaper, or faster. Use project management and other planning tools to implementing the new approach.

• Control. Institutionalize the improved system by modifying compensation and incentive systems, policies, procedures, manufacturing resource planning (MRP), budgets, operation instructions, or other management systems.

Diff: 2 Page Ref: 127 70) What are the characteristics of well-designed dashboards and scorecards?

Answer: They use visual components to highlight the data and exceptions that require action.

They are transparent to the user, require minimal training, and are easy to use.

They combine data from a variety of systems into a single, summarized view of the business.

They enable drill-down or drill-through to underlying data sources or reports.

They present a dynamic, real-world view with timely data refreshes.

They require little, if any, customized coding to implement, deploy, and maintain.

Diff: 2 Page Ref: 138

13 .

Business Intelligence, 2e PIV (Turban/Sharda/Delen/King) Chapter 4 Data Mining for Business Intelligence 1) Data mining is a way for companies to develop business intelligence from their data to gain a better understanding of their customers and operations and to solve complex organizational problems.

Answer: TRUE Diff: 1 Page Ref: 151 2) Data mining is a prime candidate for better management of companies that are data-rich, but knowledge-poor.

Answer: TRUE Diff: 1 Page Ref: 155 3) Technically speaking, data mining is a process that uses statistical, mathematical, and artificial intelligence techniques to extract and identify useful information and subsequent knowledge from large sets of data.

Answer: TRUE Diff: 2 Page Ref: 157 4) The data mining environment is usually a client-server architecture or a Web-based information systems architecture.

Answer: TRUE Diff: 2 Page Ref: 158 5) Data mining offers organizations a decision-enhancing environment to exploit opportunities by transforming data into a strategic weapon.

Answer: TRUE Diff: 1 Page Ref: 159 6) At the highest level of abstraction, all data can be divided into interval data and ratio data.

Answer: FALSE Diff: 2 Page Ref: 159 7) Two types of categorical data are nominal data and ordinal data.

Answer: TRUE Diff: 2 Page Ref: 159 8) The variable marital status can be categorized using the codes (1) single, (2) married, and (3) divorced. These codes are examples of ordinal data.

Answer: TRUE Diff: 2 Page Ref: 160

1 .

9) A common example of interval scale measurement is temperature on the Celsius scale.

Answer: TRUE Diff: 2 Page Ref: 160 10) Mass, length, time, plane angle, energy, and electric charge are examples of physical measures whose data are represented in interval scales.

Answer: FALSE Diff: 2 Page Ref: 160 11) Data types such as date/time, unstructured text, image, and audio need to be converted into some form of categorical or numeric representation before they can be processed by data mining algorithms.

Answer: TRUE Diff: 2 Page Ref: 160 12) Associations are a type of pattern that discovers time-ordered events, such as predicting that an existing banking customer who already has a checking account will open a savings account followed by an investment account within a year.

Answer: FALSE Diff: 2 Page Ref: 161 13) Predictions tell the nature of future occurrences of certain events based on what has happened in the past, such as predicting the winner of the Super Bowl or forecasting the absolute temperature of a particular day.

Answer: TRUE Diff: 1 Page Ref: 162 14) Clustering partitions a collection of things, such as objects and events presented in a structured dataset into segments whose members share similar characteristics.

Answer: TRUE Diff: 2 Page Ref: 163 15) Cross-Industry Standard Process for Data Mining, or CRISP-DM, is one of the most popular nonproprietary standard methodologies for data mining.

Answer: TRUE Diff: 2 Page Ref: 168 16) The first step in the data mining process is to understand the relevant data from the available databases.

Answer: FALSE Diff: 2 Page Ref: 169

2 .

17) Compared to the other steps in CRISP-DM, data preprocessing consumes the most time and effort; most believe that this step accounts for roughly 80 percent of the total time spent on a data mining project Answer: TRUE Diff: 2 Page Ref: 170 18) In order to be applied successfully, a data mining study must be viewed as a set of automated software tools and techniques.

Answer: FALSE Diff: 2 Page Ref: 170 19) Data mining requires a separate, dedicated database.

Answer: FALSE Diff: 1 Page Ref: 199 20) Newer Web-based tools enable managers at all educational levels to do data mining.

Answer: TRUE Diff: 1 Page Ref: 199 21) In an article in Harvard Business Review, Thomas Davenport (2006) argued that the latest strategic weapon for companies is ________.

A) customer relationship management B) e-commerce C) online auctions D) analytical decision making Answer: D Diff: 2 Page Ref: 155 22) The term data mining was originally used to ________.

A) include most forms of data analysis in order to increase sales B) describe the analysis of huge datasets stored in data warehouses C) describe the process through which previously unknown patterns in data were discovered D) All of the above Answer: C Diff: 2 Page Ref: 155 23) Why has data mining gained the attention of the business world?

A) More intense competition at the global scale driven by customers' ever-changing needs and wants in an increasingly saturated marketplace.

B) Consolidation and integration of database records, which enables a single view of customers and vendors.

C) Significant reduction in the cost of hardware and software for data storage and processing.

D) All of the above Answer: D Diff: 2 Page Ref: 155 3 .

24) On the commercial side, the most common use of data mining has been in ________ sectors.

A) manufacturing and heath care B) finance, retail, and health care C) online retail and government D) R&D and scientific Answer: B Diff: 3 Page Ref: 156 25) Business analytics and data mining provided 1-800-Flowers with all of the following benefits except: A) more efficient marketing campaigns B) increased mailings and response rates C) better customer experience and retention D) increased repeat sales Answer: B Diff: 2 Page Ref: 156 26) Data mining is tightly positioned at the intersection of many disciplines. Those disciplines include all of the following except: A) management science B) statistics C) information systems and databases D) logistics Answer: D Diff: 2 Page Ref: 158 27) A query that can be run by an end user and is not programmed in advance is considered a(n) ________ query.

A) tailored B) casual C) informal D) ad hoc Answer: D Diff: 1 Page Ref: 158 28) What is a major characteristic of data mining?

A) Data mining tools are readily combined with spreadsheets and other software development tools.

B) Because of the large amounts of data and massive search efforts, it is sometimes necessary to use serial processing for data mining.

C) Data are often buried within numerous small databases, which sometimes contain data from several years.

D) The miner needs sophisticated programming skill.

Answer: A Diff: 3 Page Ref: 159 4 .

29) At the highest level of abstraction, data can be classified as ________ and ________.

A) alpha; numeric B) categorical; numerical C) nominal; ratio D) interval; ration Answer: B Diff: 2 Page Ref: 159 30) Data that has a meaningful, or nonarbitrary, zero point is ________ data.

A) categorical B) nominal C) interval D) ratio Answer: D Diff: 2 Page Ref: 160 31) Numeric data represent the numeric values of specific variables, which are ________ variables that can take on an infinite number of fractional values.

A) discrete B) continuous C) interval D) ratio Answer: B Diff: 2 Page Ref: 160 32) Data mining seeks to identify patterns in the data. All of the following are major types of patterns except: A) associations B) regression C) predictions D) clusters Answer: B Diff: 1 Page Ref: 162 33) ________, or supervised induction, is perhaps the most common of all data mining tasks. Its objective is to analyze the historical data stored in a database and automatically generate a model that can predict future behavior.

A) Association B) Clustering C) Prediction D) Classification Answer: D Diff: 2 Page Ref: 163

5 .

34) ________ are essentially a hierarchy of if-then statements. They are most appropriate for categorical and interval data.

A) Neural nets B) Clusters C) Decision trees D) Time-series Answer: C Diff: 3 Page Ref: 163 35) ________ data mining begins with a proposition by the user, who then seeks to validate the truthfulness of the proposition. For example, a marketing manager may begin with the following proposition: "Are BluRay player sales related to sales of HDTV sets?"

A) Hypothesis-driven B) Theory-driven C) Discovery-driven D) Data-driven Answer: A Diff: 2 Page Ref: 165 36) Because the data mining is driven by experience and experimentation, depending on the problem situation and the analyst's knowledge, the whole process can be ________ and ________, i.e., one should expect to go back and forth through the steps quite a few times.

A) simple; iterative B) expensive; hypothetical C) time consuming; iterative D) time consuming; hypothetical Answer: C Diff: 2 Page Ref: 169 37) Because the latter steps in the data mining process are built on the outcome of the former ones, one should: A) start with an understanding of the relevant data.

B) work quickly through the early steps and work in-depth on the latter steps.

C) start by cleaning the relevant data and storing it in a single data warehouse.

D) pay extra attention to the earlier steps in order not to put the whole study on an incorrect path from the onset.

Answer: D Diff: 3 Page Ref: 169

6 .

38) The simple split methodology splits the data into two mutually exclusive subsets called a ________ set and a ________ set.

A) training; test B) positive; negative C) holdout; training D) matrix; test Answer: A Diff: 2 Page Ref: 180 39) A good question to ask with respect to the patterns/relationships that association rule mining can discover is "Are all association rules interesting and useful?" In order to answer such a question, association rule mining uses two common metrics ________ and ________.

A) mean; median B) support; confidence C) standard deviation; confidence interval D) regression; distance measure Answer: B Diff: 3 Page Ref: 187 40) Because of their ability to model highly complex real-world problems, researchers and practitioners have found many uses for ________.

A) neural networks B) clustering feature maps C) backpropagation D) heuristics Answer: A Diff: 3 Page Ref: 192 41) ________ means that discovered patterns in a dataset hold true on new data with a sufficient degree of certainty.

Answer: Valid Diff: 2 Page Ref: 157 42) ________ data contains measurements of simple codes assigned to objects as labels, such as marital status, but those labels are not measurements.

Answer: Nominal Diff: 2 Page Ref: 159 43) ________ data represent the labels of multiple classes used to divide a variable into specific groups.

Answer: Categorical Diff: 2 Page Ref: 159

7 .

44) Mass, length, time, energy, and electric charge are examples of ________ data because their scales have a nonarbitrary zero value.

Answer: ratio Diff: 2 Page Ref: 160 45) ________ data contains codes assigned to objects or events as labels that also represent the rank order among them; for example, credit score.

Answer: Ordinal Diff: 2 Page Ref: 160 46) Using existing and relevant data, data mining builds models to identify ________ among the attributes presented in the dataset.

Answer: patterns Diff: 1 Page Ref: 161 47) ________ tells the nature of future occurrences of certain events based on what has happened in the past, such as predicting the winner of the Super Bowl or forecasting the absolute temperature of a particular day.

Answer: Prediction Diff: 1 Page Ref: 161 48) Generally speaking, data mining tasks can be classified into three main categories: ________, prediction, and clustering.

Answer: association Diff: 2 Page Ref: 161 49) ________ partitions a collection of things, such as objects and events stored in a dataset, into segments whose members share similar characteristics.

Answer: Clustering Diff: 2 Page Ref: 163 50) With ________ forecasting, the data are a series of values of the same variable that is captured and stored over time. These data are then used to develop models to extrapolate the future values of the same phenomenon.

Answer: time-series Diff: 3 Page Ref: 165 51) ________ data mining begins with a proposition by the user, who then seeks to validate the truthfulness of the proposition Answer: Hypothesis-driven Diff: 2 Page Ref: 165

8 .

52) ________ data mining finds patterns, associations, and other relationships hidden within datasets. It can uncover facts that an organization had not previously known or contemplated.

Answer: Discovery-driven Diff: 2 Page Ref: 165 53) ________ data, also known as categorical data, contains both nominal and ordinal data.

Answer: Qualitative Diff: 1 Page Ref: 170 54) ________ data can be readily represented by some sort of probability distribution.

Answer: Quantitative Diff: 1 Page Ref: 170 55) The model's ability to make reasonably accurate predictions, given noisy data or data with missing and erroneous values, is called ________.

Answer: robustness Diff: 2 Page Ref: 178 56) With ________, a fixed number of instances from the original data is sampled (with replacement) for training and the rest of the dataset is used for testing. This process is repeated as many times as desired.

Answer: bootstrapping Diff: 2 Page Ref: 181 57) The ________ index has been used in economics to measure the diversity of a population.

The same concept can be used to determine the purity of a specific class as a result of a decision to branch along a particular attribute or variable.

Answer: Gini Diff: 2 Page Ref: 183 58) ________ measures the extent of uncertainty or randomness in a dataset.

Answer: Entropy Diff: 2 Page Ref: 183 59) The most commonly used measure to calculate the closeness between pairs of items in cluster analysis is the ________.

Answer: distance measure Diff: 2 Page Ref: 186 60) The ________ algorithm is the most commonly used algorithm to discover association rules.

Answer: Apriori Diff: 3 Page Ref: 188

9 .

61) List three of the major characteristics and objectives of data mining.

Answer: • The data mining environment is usually a client-server architecture or a Web-based architecture.

• Visualization tools help to remove the information buried in corporate files or archives.

• The miner is often an end user, who is supported by data drills and power query tools to ask ad hoc questions with little programming.

• Striking it rich often involves finding an unexpected result and requires end users to think creatively throughout the process.

• Data mining tools are readily combined with spreadsheets and other software development tools.

• Because of the large amounts of data and massive search efforts, it is sometimes necessary to use parallel processing for data mining.

Diff: 2 Page Ref: 158 62) Sketch a simple taxonomy of data in data mining.

Answer: See Figure 4.3 in the textbook.

Diff: 2 Page Ref: 159 63) Identify and describe the two types of categorical data. Give an example of each.

Answer: • Nominal data contains measurements of simple codes assigned to objects as labels, which are not measurements. For example, the variable marital status can be generally categorized as (1) single, (2) married, and (3) divorced.

• Ordinal data contains codes assigned to objects or events as labels that also represent the rank order among them. For example, the variable credit score can be categorized as (1) low, (2) medium, and (3) high. Other examples are age group (i.e., child, young, middle-aged, elderly) and educational level (i.e., high school, college, graduate school).

Diff: 2 Page Ref: 159 64) Identify and describe the two types of numerical data. Give an example of each.

Answer: • Interval data are variables that can be measured on interval scales, but that do not have an absolute zero value. An example of interval scale measurement is temperature on the Celsius scale.

• Ratio data include measurement variables such as those found in the physical sciences. Mass, length, time, energy, and electric charge are examples of physical measures that are ratio scales.

Diff: 2 Page Ref: 160

10 .

65) List and briefly describe three of the major types of patterns that data mining attempts to identify.

Answer: Associations find the commonly co-occurring groupings of things, such as beer and diapers going together in market-basket analysis.

Predictions tells the nature of future occurrences of certain events based on what has happened in the past, such as predicting the winner of the Super Bowl or forecasting the absolute temperature of a particular day.

Clusters identify natural groupings of things based on their known characteristics, such as assigning customers in different segments based on their demographics and past purchase behaviors.

Sequential relationships discovers time-ordered events, such as predicting an action based on prior actions.

Diff: 2 Page Ref: 161 66) List the six steps in the CRISP-DM Data Mining Process.

Answer: 1. business understanding 2. data understanding 3. data presentation 4. model building 5. testing and evaluation 6. deployment Diff: 2 Page Ref: 169 67) List the four data preprocessing steps.

Answer: 1. data consolidation 2. data cleaning 3. data transformation 4. data reduction Diff: 2 Page Ref: 171

11 .

68) List and briefly explain four of the factors to be considered when assessing a model to be used for classification.

Answer: Predictive accuracy. The model's ability to correctly predict the class label of new or previously unseen data.

Speed. Computational costs involved in generating and using the model, where faster is better.

Robustness. The model's ability to make reasonably accurate predictions, given noisy data or data with missing and erroneous values.

Scalability. The ability to construct a prediction model efficiently given a large amount of data.

Interpretability. The level of understanding and insight provided by the model.

Diff: 3 Page Ref: 178 69) Explain the simple split methodology for classification. Explain the advantages of the k-fold cross-validation methodology over the simple split methodology.

Answer: The simple split partitions the data into two mutually exclusive subsets called a training set and a test set. The training set is used by the model builder; and the built classifier is then tested on the test set.

K-fold cross-validation helps to minimize the bias associated with the simple split methodology's use of random sampling.

Diff: 3 Page Ref: 180 70) List five of the data mining mistakes often made in practice.

Answer: 1. Selecting the wrong problem for data mining.

2. Ignoring what your sponsor thinks data mining is and what it really can and cannot do.

3. Leaving insufficient time for data preparation.

4. Looking only at aggregated results and not at individual records.

5. Being sloppy about keeping track of the data mining procedure and results.

6. Ignoring suspicious findings and quickly moving on.

7. Running mining algorithms repeatedly and blindly. It is important to think hard about the next stage of data analysis.

8. Believing everything you are told about the data.

9. Believing everything you are told about your own data mining analysis.

10. Measuring your results differently from the way your sponsor measures them.

Diff: 2 Page Ref: 200

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Business Intelligence, 2e PIV (Turban/Sharda/Delen/King) Chapter 5 Text and Web Mining 1) DARPA and MITRE teamed up to develop capabilities to automatically filter text-based information sources to generate actionable information in a timely manner.

Answer: TRUE Diff: 2 Page Ref: 210 2) A vast majority of business data is captured and stored in text documents that are structured.

Answer: FALSE Diff: 2 Page Ref: 212 3) Text mining is important to competitive advantage because knowledge is power, and knowledge is derived from text data sources.

Answer: TRUE Diff: 2 Page Ref: 212 4) The purpose and processes of text mining are different from those of data mining because with text mining the input to the process are data files such as Word documents, PDF files, text excerpts, and XML files.

Answer: FALSE Diff: 3 Page Ref: 212 5) The benefits of text mining are greatest in areas where very large amounts of textual data are being generated, such as law, academic research, finance, and medicine.

Answer: TRUE Diff: 2 Page Ref: 212 6) Unstructured data has a predetermined format. It is usually organized into records as categorical, ordinal, and continuous variables and stored in databases.

Answer: FALSE Diff: 2 Page Ref: 213 7) Stemming is the process of reducing inflected words to their base or root form.

Answer: TRUE Diff: 1 Page Ref: 213 8) Stop words, such as a, am, the, and was, are words that are filtered out prior to or after processing of natural language data.

Answer: TRUE Diff: 2 Page Ref: 213 9) The goal of natural language processing (NLP) is syntax-driven text manipulation.

Answer: FALSE Diff: 2 Page Ref: 216 1 .

10) Two advantages associated with the implementation of NLP are word sense disambiguation and syntactic ambiguity.

Answer: FALSE Diff: 2 Page Ref: 216 11) By applying a learning algorithm to parsed text, researchers from Stanford University's NLP lab have developed methods that can automatically identify the concepts and relationships between those concepts in the text.

Answer: TRUE Diff: 2 Page Ref: 217 12) Text mining can be used to increase cross-selling and up-selling by analyzing the unstructured data generated by call centers.

Answer: TRUE Diff: 1 Page Ref: 220 13) Compared to polygraphs for deception-detection, text-based deception detection has the advantages of being nonintrusive and widely applicable to textual data and transcriptions of voice recordings.

Answer: TRUE Diff: 2 Page Ref: 221 14) The main purpose of establishing the corpus is to collect all of the documents related to the context being studied.

Answer: TRUE Diff: 2 Page Ref: 227 15) The main categories of knowledge extraction methods are recall, search, and signaling.

Answer: FALSE Diff: 2 Page Ref: 230 16) Web pages consisting of unstructured textual data coded in HTML and logs of visitors' interactions provide rich data that can easily provide effective and efficient knowledge discovery.

Answer: FALSE Diff: 3 Page Ref: 237 17) Web crawlers are Web content mining tools that are used to read through the content of a Web site automatically.

Answer: FALSE Diff: 1 Page Ref: 238

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18) Amazon.com leverages Web usage history dynamically and recognizes the user by reading a cookie written by a Web site on the visitor's computer.

Answer: TRUE Diff: 1 Page Ref: 241 19) The quality of search results is impossible to measure accurately using strictly quantitative measures such as click-through rate, abandonment, and search frequency. Additional quantitative and qualitative measures are required.

Answer: TRUE Diff: 2 Page Ref: 242 20) Customer experience management applications gather and report direct feedback from site visitors by benchmarking against other sites and offline channels, and by supporting predictive modeling of future visitor behavior.

Answer: FALSE Diff: 3 Page Ref: 244 21) A vast majority of business data are stored in text documents that are ________.

A) mostly quantitative B) virtually unstructured C) semi-structured D) highly structured Answer: B Diff: 1 Page Ref: 212 22) Text mining is the semi-automated process of extracting ________ from large amounts of unstructured data sources.

A) patterns B) useful information C) knowledge D) all of the above Answer: D Diff: 2 Page Ref: 212 23) All of the following are popular application areas of text mining except: A) information extraction B) document summarization C) question answering D) data structuring Answer: D Diff: 2 Page Ref: 213

3 .

24) Which of the following correctly defines a text mining term?

A) Tagging is the number of times a word is found in a specific document.

B) A token is an uncategorized block of text in a sentence.

C) Rooting is the process of reducing inflected words to their base form.

D) A term is a single word or multiword phrase extracted directly from the corpus by means of NLP methods.

Answer: D Diff: 3 Page Ref: 214 25) ________ is a branch of the field of linguistics and a part of natural language processing that studies the internal structure of words.

A) Morphology B) Corpus C) Stemming D) Polysemes Answer: A Diff: 2 Page Ref: 214 26) Using ________ as a rich source of knowledge and a strategic weapon, Kodak not only survives but excels in its market segment defined by innovation and constant change.

A) visualization B) deception detection C) patent analysis D) semantic cues Answer: C Diff: 2 Page Ref: 214 27) It has been shown that the bag-of-word method may not produce good enough information content for text mining tasks. More advanced techniques such as ________ are needed.

A) classification B) natural language processing C) evidence-based processing D) symbolic processing Answer: B Diff: 2 Page Ref: 215

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28) Why will computers probably not be able to understand natural language the same way and with the same accuracy that humans do?

A) A true understanding of meaning requires extensive knowledge of a topic beyond what is in the words, sentences, and paragraphs.

B) The natural human language is too specific.

C) The part of speech depends only on the definition and not on the context within which it is used.

D) All of the above.

Answer: A Diff: 3 Page Ref: 216 29) At a very high level, the text mining process consists of each of the following tasks except: A) create log frequencies B) establish the corpus C) create the term-document matrix D) extract the knowledge Answer: A Diff: 2 Page Ref: 227 30) In ________, the problem is to group an unlabelled collection of objects, such as documents, customer comments, and Web pages into meaningful groups without any prior knowledge.

A) search recall B) classification C) clustering D) grouping Answer: C Diff: 2 Page Ref: 231 31) The two main approaches to text classification are ________ and ________.

A) knowledge engineering; machine learning B) categorization; clustering C) association; trend analysis D) knowledge extraction; association Answer: A Diff: 2 Page Ref: 231 32) Commercial software tools include all of the following except: A) GATE B) IBM Intelligent Miner Data Mining Suite C) SAS Text Miner D) SPSS Text Mining Answer: A Diff: 2 Page Ref: 236

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33) Why does the Web pose great challenges for effective and efficient knowledge discovery?

A) The Web search engines are indexed-based.

B) The Web is too dynamic.

C) The Web is too specific to a domain.

D) The Web infrastructure contains hyperlink information.

Answer: B Diff: 2 Page Ref: 237 34) A simple keyword-based search engine suffers from several deficiencies, which include all of the following except: A) a topic of any breath can easily contain hundreds or thousands of documents B) many documents that are highly relevant to a topic may not contain the exact keywords defining them C) web mining can identify authoritative Web pages D) many of the search results are marginally or not relevant to the topic Answer: C Diff: 3 Page Ref: 237 35) Which of the following is not one of the three main areas of Web mining?

A) Web search mining B) Web content mining C) Web structure mining D) Web usage mining Answer: A Diff: 2 Page Ref: 238 36) Which of the following refers to developing useful information from the links included in the Web documents?

A) Web content mining B) Web subject mining C) Web structure mining D) Web matter mining Answer: C Diff: 2 Page Ref: 239 37) A ________ is one or more Web pages that provide a collection of links to authoritative pages, reference sites, or a resource list on a specific topic.

A) hub B) hyperlink-induced topic search C) spoke D) community Answer: A Diff: 2 Page Ref: 239

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38) All of the following are types of data generated through Web page visits except: A) data stored in server access logs, referrer logs, agent logs, and client-side cookies B) user profiles C) hyperlink analysis D) metadata, such as page attributes, content attributes, and usage data Answer: C Diff: 2 Page Ref: 240 39) When registered users revisit Amazon.com, they are greeted by name. This task involves recognizing the user by ________.

A) pattern discovery B) association C) text mining D) reading a cookie Answer: D Diff: 1 Page Ref: 241 40) Forward-thinking companies like Ask.com, Scholastic, and St. John Health System are actively using Web mining systems to answer important questions of "Who?" "Why?" and "How?" The benefits of integrating these systems: A) are measured qualitatively in terms of customer satisfaction, but not measured using financial or other quantitative measure.

B) can be significant in terms of incremental financial growth and increasing customer loyalty and satisfaction.

C) have not yet outweighed the costs of the Web mining systems and analysis.

D) can be infinitely measurable.

Answer: B Diff: 3 Page Ref: 242 41) ________ is the semi-automated process of extracting patterns from large amounts of unstructured data sources.

Answer: Text mining Diff: 1 Page Ref: 212 42) ________ is the process of identifying valid, novel, potentially useful, and ultimately understandable patterns in data stored in structured databases, where the data are organized in records structured by categorical, ordinal, or continuous variables.

Answer: Data mining Diff: 1 Page Ref: 212 43) ________ is the grouping of similar documents without having a predefined set of categories.

Answer: Clustering Diff: 2 Page Ref: 213 7 .

44) In linguistics, a(n) ________ is a large and structured set of texts prepared for the purpose of conducting knowledge discovery.

Answer: corpus Diff: 1 Page Ref: 213 45) ________ is the process of reducing inflected words to their base or root form.

Answer: Stemming Diff: 1 Page Ref: 213 46) ________ words or noise words are words that are filtered out prior to or after processing of natural language data.

Answer: Stop Diff: 1 Page Ref: 213 47) The term "stop-words" are used by text mining to ________ commonly used words.

Answer: eliminate Diff: 2 Page Ref: 213 48) ________ is an important component of text mining and is a subfield of artificial intelligence and computational linguistics. It studies the problem of understanding the natural human language.

Answer: Natural language processing (NLP) Diff: 1 Page Ref: 216 49) ________ analysis is a technique used to detect favorable and unfavorable opinions toward specific products and services using textual data sources, such as customer feedback in Web postings and the detection of unfavorable rumors.

Answer: Sentiment Diff: 2 Page Ref: 217 50) At a very high level, the first of three consecutive tasks in the text mining process is to establish the ________, which is a list of organized documents.

Answer: corpus Diff: 1 Page Ref: 227 51) In the text mining process, the output of task two is a flat file called a ________ matrix where the cells are populated with the term frequencies.

Answer: term-document Diff: 3 Page Ref: 227 52) One of the main approaches to text classification is ________ in which an expert's knowledge is encoded into the system either declaratively or in the form of procedural classification rules.

Answer: knowledge engineering Diff: 2 Page Ref: 231 8 .

53) A(n) ________ is one or more Web pages that provide a collection of links to authoritative pages.

Answer: hub Diff: 1 Page Ref: 239 54) ________ mining is the process of extracting useful information from the links embedded in Web documents.

Answer: Web structure Diff: 2 Page Ref: 239 55) ________ mining is the extraction of useful information from data generated through Web page visits and transactions.

Answer: Web usage Diff: 2 Page Ref: 240 56) Analysis of the information collected by Web servers can help better understand user behavior. Analysis of this data is called ________ analysis.

Answer: clickstream Diff: 2 Page Ref: 240 57) ________ applications focus on "who and how" questions by gathering and reporting direct feedback from site visitors, by benchmarking against other sites and offline channels, and by supporting predictive modeling of future visitor behavior.

Answer: Voice of Customer Diff: 2 Page Ref: 244 58) Web analytics, CEM, and VOC applications form the foundation of the Web site ________ ecosystem that supports the online business' ability to positively influence desired outcomes.

Answer: optimization Diff: 2 Page Ref: 244 59) The ________ model, which is one where multiple sources of data describing the same population are integrated to increase the depth and richness of the resulting analysis, forms the framework of the Web site optimization ecosystem.

Answer: convergent validation Diff: 3 Page Ref: 245 60) Fundamental to the optimization process is ________, gathering data and information that can then be transformed into tangible analysis and recommendations for improvement using Web mining tools and techniques.

Answer: measurement Diff: 3 Page Ref: 245

9 .

61) Compare and contrast text mining and data mining.

Answer: Text mining is the semi-automated process of extracting patterns (useful information and knowledge) from large amounts of unstructured data sources. Data mining is the process of identifying valid, novel, potentially useful, and understandable patterns in data stored in structured databases, where the data are organized in records structured by categorical, ordinal, or continuous variables. Text mining is the same as data mining in that it has the same purpose and uses the same processes, but with text mining the input to the process is a collection of unstructured data files such as Word documents, PDF files, and so on.

Diff: 2 Page Ref: 212 62) Why will computers probably not be able to understand natural language the same way and with the same accuracy that humans do?

Answer: Natural human language is vague for computers to understand; and a true understanding of meaning requires extensive knowledge of a topic beyond what is in the words, sentences, and paragraphs.

Diff: 1 Page Ref: 216

10 .

63) NLP has successfully been applied to a variety of tasks via computer programs to automatically process natural human language that previously could only be done by humans.

List three of the most popular of these tasks.

Answer: Any three of the following: • Information retrieval. The science of searching for relevant documents, finding specific information within them, and generating metadata as to their contents.

• Information extraction. A type of information retrieval whose goal is to automatically extract structured information from a certain domain, using machine-readable documents.

• Question answering. The task of automatically answering a question posed in natural language; that is, producing a human-language answer when given a human-language question.

• Automatic summarization. The creation of a shortened version of a text document by a computer program that contains the most important points of the document.

• Natural language generation. Systems convert information from computer databases into readable human language.

• Natural language understanding. Systems convert samples of human language into more formal representations that are easier for computer programs to manipulate.

• Machine translation. The automatic translation of one human language to another.

• Foreign language reading. A computer program that assists a nonnative language speaker to read a foreign language.

• Foreign language writing. A computer program that assists a nonnative language user in writing in a foreign language.

• Speech recognition. Converts spoken words to machine-readable input.

• Text-to-speech. A computer program converts normal language text into human speech.

• Text proofing. A computer program reads a proof copy of a text in order to detect and correct any errors.

• Optical character recognition. The automatic translation of images of handwritten, typewritten, or printed text.

Diff: 2 Page Ref: 219 64) Describe a marketing application of text mining.

Answer: Text mining can be used to increase cross-selling and up-selling by analyzing the unstructured data generated by call centers. Text generated by call-center notes as well as transcriptions of voice conversations with customers can be analyzed by text mining algorithms to extract novel, actionable information about customers' perceptions toward a company's products and services.

Text mining is valuable for customer relationship management (CRM). Companies can use text mining to analyze unstructured text data, combined with the relevant structured data extracted from organizational databases, to predict customer perceptions and subsequent purchasing behavior.

Diff: 2 Page Ref: 220

11 .

65) What is the primary purpose of text mining within the context of knowledge discovery?

Answer: The primary purpose of text mining within the context of knowledge discovery is to process unstructured (textual) data along with structured data, if relevant to the problem, to extract meaningful and actionable patterns for better decision making.

Diff: 1 Page Ref: 226 66) Diagram and explain the three-step text mining process.

Answer: See Figure 5.5 in the textbook.

Diff: 2 Page Ref: 227 67) List two options for managing or reducing the dimensionality (size) of the term-document matrix (TDM).

Answer: • A domain expert goes through the list of terms and eliminates those that do not make much sense for the context of the study.

• Eliminate terms with very few occurrences in very few documents.

• Transform the matrix using singular value decomposition.

Diff: 3 Page Ref: 230 68) What are three of the challenges for effective and efficient knowledge discovery posed by the Web? Answer: • The Web is too big for effective data mining. Because of the sheer size of the Web, it is not feasible to set up a data warehouse to replicate, store, and integrate all of the data on the Web, making data collection and integration a challenge.

• The Web is too complex. The complexity of a Web page is far greater than a page in a traditional text document collection. Web pages lack a unified structure.

• The Web is too dynamic. The Web is a highly dynamic information source. Not only does the Web grow rapidly, but its content is constantly being updated.

• The Web is not specific to a domain. The Web serves a broad diversity of communities and connects billions of workstations. Web users have very different backgrounds, interests, and usage purposes.

• The Web has everything. Only a small portion of the information on the Web is truly relevant or useful to someone or some task.

Diff: 2 Page Ref: 237 69) Define the three main areas of Web mining and each area's source of information.

Answer: • Web content mining refers to the extraction of useful information from Web pages. Source: unstructured textual content of the Web pages, usually in HTML format.

• Web structure mining is the process of extracting useful information from the links embedded in Web documents. Source: the URL links contained in the Web pages.

• Web usage mining is the extraction of useful information from data generated through Web page visits and transactions. Source: the detailed description of a Web site's visits.

Diff: 2 Page Ref: 238 12 .

70) List three business applications of Web mining.

Answer: 1. Determine the lifetime value of clients.

2. Design cross-marketing strategies across products.

3. Evaluate promotional campaigns.

4. Target electronic ads and coupons at user groups based on user access patterns.

5. Predict user behavior based on previously learned rules and users' profiles.

6. Present dynamic information to users based on their interests and profiles.

Diff: 2 Page Ref: 241

13 .

Business Intelligence, 2e PIV (Turban/Sharda/Delen/King) Chapter 6 Business Intelligence Implementation: Integration and Emerging Trends 1) A clear vision and planning are factors critical to the success of BI implementation.

Answer: TRUE Diff: 1 Page Ref: 256 2) Without committed management support and sponsorship a business implementation has a high risk of failure.

Answer: TRUE Diff: 1 Page Ref: 256 3) In general, enterprises have not gained more value from BI by extending information to many types of employees, maximizing the use of existing data assets.

Answer: FALSE Diff: 2 Page Ref: 256 4) To access a data warehouse, users who need to conduct an analysis, find information, or perform data visualization use software known as virtual ware.

Answer: FALSE Diff: 2 Page Ref: 261 5) Web 2.0 is not only changing what is on the Web, but also how it works.

Answer: TRUE Diff: 1 Page Ref: 269 6) Wikia is an example of a new business model that has emerged from Web 2.0. It s the accumulation of the "power of the crowd," but the potential of such a business model remains limited because of competition.

Answer: FALSE Diff: 2 Page Ref: 269 7) Social network analysis (SNA) software is used to identify, represent, analyze, visualize, or simulate network nodes and edges from various types of input data.

Answer: TRUE Diff: 2 Page Ref: 270 8) Mobile social networking refers to social networking where members converse and connect with one another using cell phones or other mobile devices. It is much more popular in Japan, South Korea, and China than it is in the West.

Answer: TRUE Diff: 1 Page Ref: 271

1 .

9) Advertising and sales are the major EC activities in public social networks.

Answer: TRUE Diff: 1 Page Ref: 272 10) Virtual worlds are defined as artificial worlds created by computer systems in which the user has the impression of being immersed.

Answer: TRUE Diff: 1 Page Ref: 275 11) Concepts such as virtual currencies often allow participants to buy or sell virtual goods or services, such as clothes or training.

Answer: TRUE Diff: 1 Page Ref: 275 12) Virtual worlds are well-developed, interesting tools for businesses and consumers and have gained widespread acceptance.

Answer: FALSE Diff: 2 Page Ref: 276 13) Fundamentally, RFID is one example of automatic identification technologies, unlike scanner-based barcodes and magnetic strips.

Answer: FALSE Diff: 1 Page Ref: 282 14) Active RFID tags have their own power source and can initiate the data transmission process on their own, but need a reader to energize them.

Answer: FALSE Diff: 2 Page Ref: 282 15) One of the applications of the massive amounts of data that are generated by RFID is in supply-chain management.

Answer: TRUE Diff: 2 Page Ref: 283 16) RFID technology generates massive amounts of data that can be analyzed to achieve great insights into a company's environment, a major purpose for the very existence of BI and decision support.

Answer: TRUE Diff: 2 Page Ref: 283 17) Just as RFID generates major data streams for further analysis through BI technologies that can assist in decision making, another massive data source and technologies to make sense of the data are emerging. This type of data mining is called reality mining.

Answer: TRUE Diff: 2 Page Ref: 286 2 .

18) By applying algorithms that reduce the volume of personally identifiable information, reality mining can characterize places according to the activity and movement between them.

Answer: FALSE Diff: 3 Page Ref: 287 19) Simulating the real world via the use of tribes makes it possible to provide personalized services to each user without collecting personally identifiable information.

Answer: TRUE Diff: 2 Page Ref: 287 20) RFID technology allows Coca-Cola to test and track new drink flavors and local preferences.

Answer: TRUE Diff: 1 Page Ref: 291 21) Which of the following issues related to BI implementation is false?

A) BI and predictive analytics can lead to serious ethical issues such as privacy and accountability.

B) Developing an effective BI application is no longer complex.

C) Smaller organizations can make the solutions cost effective if they leverage existing databases rather than create new ones.

D) The quality and timeliness of business information for an organization is not the choice between profit and loss--it may be a question of survival.

Answer: B Diff: 2 Page Ref: 256 22) Which of the following is a reason why BI projects fail?

A) Failure to recognize BI projects as enterprise-wide business initiatives and that they differ from typical stand-alone solutions.

B) Lack of business sponsors with the ability to insure funding.

C) Lack of qualified and available staff.

D) All of the above.

Answer: D Diff: 2 Page Ref: 257 23) Major objectives for BI software integration include all of the following except: A) improving dashboard design B) increasing the capabilities of the BI applications C) enabling real-time decision support D) enabling more powerful applications Answer: A Diff: 2 Page Ref: 258

3 .

24) A multitiered application architecture consists of: A) ERP, cpm, and SCM B) Web browser, Web server, application server, and database server C) enterprise applications D) All of the above Answer: B Diff: 3 Page Ref: 260 25) Privacy has long been a(n) ________ issue.

A) legal B) ethical C) social D) all of the above Answer: D Diff: 1 Page Ref: 265 26) One of the significant differences between Web 2.0 and the traditional Web is the ________ of Web 2.0.

A) enhanced privacy and security protection B) opportunity to offer decision support capabilities in a novel way C) greater collaboration among Internet users and other users, content providers, and enterprises D) All of the above.

Answer: C Diff: 2 Page Ref: 269 27) MySpace and Facebook, Wikipedia and YouTube are examples of ________.

A) Web logs B) online social networks C) social network analysis software D) Live Spaces Answer: B Diff: 1 Page Ref: 270 28) A primary reason why Facebook has expanded so rapidly is the ________, which refers to the principle that more users means more value.

A) network effect B) mobile effect C) mobile media D) connection effect Answer: A Diff: 2 Page Ref: 272

4 .

29) The intention of ________ is to achieve a feeling of telepresence and participation from a distance.

A) active environments B) Wikia C) social networks D) virtual worlds Answer: D Diff: 2 Page Ref: 275 30) Which is not a major advantage of using Second Life for decision support?

A) easy access and low cost B) pranksters and spam are filtered out C) experienced and dedicated designer/builders D) encourages active participation and experiential learning Answer: B Diff: 2 Page Ref: 276 31) Although virtual worlds are becoming interesting tools for businesses and consumers, several factors have kept them from gaining widespread acceptance. Which of the following is one of those factors?

A) Requires downloading of a plug-in B) Users get addicted C) Costs are too high D) Lack of technical staff Answer: A Diff: 2 Page Ref: 276 32) Today, collaboration on decisions that are more strategic in nature than ever before-decisions that may transform the business--involves nonroutine activities such as ________ discovering, innovating, creating and leading teams, learning, and relating.

A) visualizing B) mining C) brainstorming D) virtual Answer: C Diff: 2 Page Ref: 281

5 .

33) What is the difference between active and passive RFID tags?

A) Active tags have a battery as their own power source and do not need a reader to energize them like passive tags do.

B) Active tags receive energy from the electromagnetic field created by the reader; and passive tags receive energy from a battery.

C) Active tags are faster and less expensive than passive tags.

D) Passive tags are most frequently found in defense or military systems, and active tags are used more frequently in retail.

Answer: A Diff: 2 Page Ref: 282 34) The most commonly used data representation for RFID technology is the: A) Common Product Code (CPC) B) Universal Product Code (UPC) C) Electronic Product Code (EPC) D) Standard Product Code (SPC) Answer: C Diff: 2 Page Ref: 282 35) RFID tag data for products consist of the following information except: A) manufacturer B) carrier C) product D) serial number Answer: B Diff: 1 Page Ref: 282 36) Gillette has used RFID to determine whether stores have stocked their shelves with particular items for a particular promotion. They found that in those stores that used RFID to move a product from the backroom to the shelf before a promotion started, sales were ________ than those that did not move the product in a timely manner.

A) 8 percent higher B) 18 percent higher C) 28 percent higher D) 48 percent higher Answer: D Diff: 2 Page Ref: 284 37) The success of today's highly volatile perishables supply chains depends on: A) the range of passive tags.

B) the level and timeliness of product visibility.

C) the network effect.

D) the shelf life of the products.

Answer: B Diff: 2 Page Ref: 285 6 .

38) Many devices in use by consumers and business people are constantly sending out their ________.

A) location information B) product data C) triangulation D) RFID Answer: A Diff: 2 Page Ref: 286 39) RFID generates major data streams ready for analysis through BI technologies. Another massive data source is emerging, along with the data mining technologies to make sense of the data, which is referred to as ________.

A) triangulation B) location-enabled services C) reality mining D) sensor mining Answer: C Diff: 2 Page Ref: 286 40) By analyzing and learning from these large-scale patterns of movement, Sense Networks is now adapting this general technology to help consumers find people with similar interests. This application is called ________.

A) Citysense B) Macrosense C) AppleSense D) Second Life Answer: A Diff: 2 Page Ref: 286 41) Privacy is the right to be left alone and the right to be free from ________ personal intrusions.

Answer: unreasonable Diff: 1 Page Ref: 265 42) Serious ________ issues may develop with the introduction of intelligent systems; liability and privacy are the dominant problem areas.

Answer: legal Diff: 1 Page Ref: 265 43) ________ content is a major characteristic of Web 2.0, as is the emergence of social networking.

Answer: User-generated Diff: 2 Page Ref: 268

7 .

44) ________ is the popular term for describing advanced Web technologies and applications, including blogs, wikis, RSS, mashups, user-generated content, and social networks.

Answer: Web 2.0 Diff: 1 Page Ref: 268 45) A major objective of Web 2.0 is to enhance creativity, information sharing, and ________.

Answer: collaboration Diff: 2 Page Ref: 268 46) Wikia is working on community-developed Web searches. If they can create a successful one, ________ will have a challenger.

Answer: Google Diff: 2 Page Ref: 269 47) The virtual elimination of software-upgrade cycles makes everything a perpetual ________ , or work in progress, and allows rapid prototyping, using the Web as an application development platform.

Answer: beta Diff: 2 Page Ref: 269 48) ________ is an effective and efficient Web development technique for creating interactive Web applications.

Answer: Ajax Diff: 2 Page Ref: 269 49) ________ software is used to identify, represent, analyze, visualize, or simulate network nodes and edges from various types of input data, including mathematical models of social networks.

Answer: Social network analysis (SNA) Diff: 2 Page Ref: 270 50) In addition, members of social networks can tag the content they create and post it with key words they choose themselves, which makes the content ________.

Answer: searchable Diff: 2 Page Ref: 270 51) Business-oriented ________, such as InFlow and Netminer, concentrate on business issues.

Answer: social networks Diff: 1 Page Ref: 270 52) Mobile social networking is much ________ popular in Japan, South Korea, and China than it is in the West.

Answer: more Diff: 1 Page Ref: 271 8 .

53) ________, which was launched in 2004 by former Harvard student Mark Zuckerberg, is the second-largest social network service in the world.

Answer: Facebook Diff: 1 Page Ref: 272 54) A major highlight of Orkut is the individual power afforded to those who create their own groups and forums, which are called ________.

Answer: communities Diff: 2 Page Ref: 272 55) By analyzing and learning from these large-scale patterns of movement, it is possible to identify distinct classes of behaviors in specific contexts, called ________.

Answer: tribes Diff: 2 Page Ref: 275 56) ________ provide new immersive experiences for decision support and replicate many of the features of physical gatherings.

Answer: Virtual worlds Diff: 2 Page Ref: 275 57) On the positive side for RFID, ________ have a longer read range, better accuracy, more complex rewritable information storage, and richer processing capabilities.

Answer: active tags Diff: 1 Page Ref: 282 58) At present, the retail supply chain has primarily been interested in using ________ RFID tags.

Answer: passive Diff: 1 Page Ref: 282 59) RFID tag data, in its purest form, is a series of ________.

Answer: binary digits Diff: 2 Page Ref: 283 60) Placing ________ chips on each flavor cartridge and using readers allows Coca-Cola to test new drink flavors and concepts, observe what flavors and combinations customers are choosing, identify regional preferences, and keep track of the amounts they are drinking.

Answer: RFID Diff: 2 Page Ref: 291

9 .

61) List three reasons for BI project failures.

Answer: Any three of the following: • Failure to recognize BI projects as enterprise-wide business initiatives and that they differ from typical stand-alone solutions.

• Lack of business sponsors with the ability to insure funding.

• Lack of cooperation by business representatives from the functional areas.

• Lack of qualified and available staff.

• No appreciation of the negative impact of "dirty data" on business profitability.

• Too much reliance on vendors.

Diff: 2 Page Ref: 257 62) What is the main function of middleware?

Answer: Middleware provides a separate program to be the interface between diverse client and server systems. Its main function is to mediate interaction between the parts of an application or between applications.

Diff: 2 Page Ref: 262 63) List four characteristics and benefits of SaaS. Answer: Any four of the following: • Ability to handle fluctuating demand, even at peak time.

• Reduced investment in server hardware or shift of server use.

• Network-based access to, and management of, commercially available software.

• Activities managed from central locations.

• Centralized feature updating.

• Frequent integration into a larger network of communicating software, either as part of a mashup or as a plug-in to a platform.

• Fees are lower initially than traditional software license fees, but are also recurring, and therefore viewed as more predictable as a service.

• The total cost, in the long run, may be higher or lower or even the same as in purchasing.

• The development of SaaS applications may use various types of software components and frameworks. These tools can reduce the time to market and the cost of converting a traditional on-premise software product or building and deploying a new SaaS solution.

Diff: 3 Page Ref: 264

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64) What is privacy? Why is it difficult to enforce privacy regulations?

Answer: Privacy means different things to different people. In general, privacy is the right to be left alone and the right to be free from unreasonable personal intrusions. Privacy has long been a legal, ethical, and social issue in many countries. The right to privacy is recognized today in every state of the United States and by the federal government, either by statute or by common law. The definition of privacy can be interpreted quite broadly.

However, the following two rules have been followed fairly closely in past court decisions: (1) The right of privacy is not absolute. Privacy must be balanced against the needs of society. (2) The public's right to know is superior to the individual's right to privacy. These two rules show why it is difficult, in some cases, to determine and enforce privacy regulation.

Diff: 2 Page Ref: 265 65) Describe three representative characteristics of the Web 2.0 environment.

Answer: Any three of the following: • The ability to tap into the collective intelligence of users. The more users contribute, the more popular and valuable a Web 2.0 site becomes.

• Data is made available in new or never-intended ways. Web 2.0 data can be mashed up, often through Web service interfaces.

• Web 2.0 relies on user-generated and user-controlled content and data.

• Lightweight programming techniques and tools let nearly anyone act as a Web site developer.

• The virtual elimination of software-upgrade cycles makes everything a work-in-progress and allows rapid prototyping.

• Users can access applications entirely through a browser.

• An architecture of participation and digital democracy encourages users to add value to the application as they use it.

• A major emphasis on social networks and computing.

• Strong support of information sharing and collaboration.

• Rapid and continuous creation of new business models.

Diff: 2 Page Ref: 269 66) Describe social network analysis (SNA) software.

Answer: Social network analysis (SNA) software is used to identify, represent, analyze, visualize, or simulate network nodes (e.g., agents, organizations, or knowledge) and edges (relationships) from various types of input data.

Network analysis tools enable researchers to investigate representations of networks of different forms and different sizes, from small to very large.

Diff: 2 Page Ref: 270

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67) How are real-world institutions, such as businesses and government agencies, incorporating virtual worlds into their strategic marketing initiatives?

Answer: Virtual worlds are becoming an important channel for reaching a wider consumer base, as well as for seeing the customers and interacting with them in a way that was not possible a few years ago. Concepts such as virtual currencies often allow participants to buy or sell virtual goods or services, such as attire or training. Virtual worlds provide rich and enhanced modes of advertising that can be immersive or absorptive, active or passive. Although studies on the use of online avatars in marketing are few, some evidence suggests that avatars and virtual representations may positively influence trust and online purchasing intention, because they simulate experiences customers have in real stores.

Diff: 2 Page Ref: 275 68) What are four major advantages of using Second Life for decision support?

Answer: Any four of the following: Easy access and low cost. The client is a free download and people can participate without paying a membership fee.

Experienced and dedicated designer/builders. Second Life has few restrictions and provides broad and flexible content authoring experiences for developers.

Tools and venues for communications-driven decision support. Tools include streaming video, streaming voice, PowerPoint, agenda and meeting management tools, chat recorders, and even name tags for avatars.

A large, dedicated user base. It doesn't cost much to hire people/avatars to work for you in Second Life. Companies like Manpower are in Second Life and can help sort out employment issues. Second Life is an easy way for a company to "go global."

Impression management and creativity enhancement. Second Life breaks down barriers to creative thinking and frees the imagination. Some people are reluctant to use videoconferencing because of concerns about how they will appear; with Second Life, users can consciously manage the impressions they create during meetings, events, and activities.

Time compression. A day in Second Life is 4 hours long. The 7/24/365 nature of Second Life can speed up activities and change users' time perceptions.

Easy data integration from real life using RSS feeds. The possibilities for integrating data from various Web sources into Second Life are expanding rapidly.

Encourages active participation and experiential learning. People experience Second Life, and those experiences impact real life. A Second Life meeting can be both enjoyable and memorable.

Diff: 2 Page Ref: 276

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69) List four major disadvantages of using Second Life for decision support.

Answer: Any four of the following: Learning time and training costs. Company executives are generally unfamiliar with Second Life and the learning curve is at least 8 hours to gain a basic comfort level.

Distractions are numerous. Second Life is a big virtual space with a lot going on. Some of the distractions are very pleasant, but they create the possibility that employees will be playing when they should be working.

Pranksters and spam are common. All sorts of crazy people are floating around Second Life with too much time to waste. Many devise pranks and engage in nasty activities.

Technology problems persist. Some technology problems include slow responses, lags in resizing objects, and frequent software updates.

Chat is a very slow communication tool. The new voice client will speed up interaction of people in Second Life, but chat will still have a use, especially with the automatic translators for multilanguage communication.

Resistance to use. Second Life is not like anything most executives have experienced, and there will be resistance to using this technology.

Addiction. Some people have become addicted to using Second Life and spend hours on the system, becoming sleep deprived and neglecting real-life activities.

Diff: 2 Page Ref: 277 70) Define the components of RFID and how active and passive tags works.

Answer: In its simplest form, an RFID system consists of a tag attached to the product to be identified, a reader, one or more antennae attached to the reader, and a computer to control the reader and capture the data.

Passive tags receive energy from the electromagnetic field created by the reader and backscatter information only when it is requested. The passive tag will remain energized only while it is within the interrogator's magnetic field.

In contrast, active tags have a battery on board to energize them. Because active tags have their own power source, they don't need a reader to energize them; instead they can initiate the data transmission process on their own.

Diff: 2 Page Ref: 282

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