Test bank for essentials of mis 14th edition kenneth c laudon jane p laudon

Test Bank for Essentials of MIS, 14th Edition, Kenneth C. Laudon Jane P. Laudon

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Essentials of MIS, 14e (Laudon/Laudon) Chapter 6 Foundations of Business Intelligence: Databases and Information Management 1) From your reading of the chapter-opening case study, Domino's implemented a new data management platform in order to solve which of the following problems?

A) Domino's revenue was declining.

B) Domino's wanted to be able to capture more data.

C) The entities and attributes of Domino's customer records were poorly organized.

D) Domino's was unable to easily analyze data for a detailed understanding of its customers and their buying patterns.

E) Domino's computer networks were outdated.

Answer: D Difficulty: Moderate AACSB: Analytical Thinking LO: 6-1: What is a database, and how does a relational database organize data?

2) In a business relational database, tables contain: A) one table for each entity.

B) relations among entities.

C) bytes.

D) three-dimensional relations.

E) links to other tables.

Answer: A Difficulty: Moderate AACSB: Application of Knowledge LO: 6-1: What is a database, and how does a relational database organize data?

3) Which of the following best illustrates the relationship between entities and attributes?

A) The entity CUSTOMER with the attribute PRODUCT B) The entity CUSTOMER with the attribute ADDRESS C) The entity PRODUCT with the attribute PURCHASE D) The entity PRODUCT with the attribute CUSTOMER E) The entity ADDRESS with the attribute CUSTOMER Answer: B Difficulty: Moderate AACSB: Analytical Thinking LO: 6-1: What is a database, and how does a relational database organize data?

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4) Which of the following is the type of logical database model that treats data as if they were stored in two-dimensional tables?

A) Two-tiered DBMS B) Pre-digital DBMS C) Open source DBMS D) Hierarchical DBMS E) Relational DBMS Answer: E Difficulty: Moderate AACSB: Application of Knowledge LO: 6-1: What is a database, and how does a relational database organize data?

5) What are the relationships that the relational database is named for?

A) Relationships between rows and columns B) Relationships between entities C) Relationships between fields and records D) Relationships between databases E) Relationships between attributes Answer: B Difficulty: Moderate AACSB: Application of Knowledge LO: 6-1: What is a database, and how does a relational database organize data?

6) A characteristic or quality describing an entity is called a(n): A) field.

B) tuple.

C) key field.

D) attribute.

E) table.

Answer: D Difficulty: Easy AACSB: Application of Knowledge LO: 6-1: What is a database, and how does a relational database organize data?

7) The most basic business database is comprised of: A) three tables: for suppliers, parts, and sales.

B) four tables: for customers, suppliers, parts, and sales.

C) four tables: for customers, suppliers, sales, and employees.

D) five tables: for customers, employees, suppliers, parts, and sales.

E) attributes instead of tables.

Answer: D Difficulty: Challenging AACSB: Application of Knowledge LO: 6-1: What is a database, and how does a relational database organize data?

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8) In a table for customers, the information about a single customer would reside in a single: A) field.

B) entity.

C) column.

D) table.

E) row.

Answer: E Difficulty: Moderate AACSB: Application of Knowledge LO: 6-1: What is a database, and how does a relational database organize data?

9) Relational databases organize data into two-dimensional tables, called ________ with columns and rows.

A) tuples.

B) key field C) attributes D) fields E) relations Answer: E Difficulty: Moderate AACSB: Application of Knowledge LO: 6-1: What is a database, and how does a relational database organize data?

10) A field identified in a table as holding the unique identifier of the table's records is called the: A) primary key.

B) key field.

C) primary field.

D) foreign key.

E) identifying field.

Answer: A Difficulty: Moderate AACSB: Application of Knowledge LO: 6-1: What is a database, and how does a relational database organize data?

11) A field identified in a record as holding the unique identifier for that record is called the: A) primary key.

B) entity field.

C) primary field.

D) foreign key.

E) identifying field.

Answer: B Difficulty: Easy AACSB: Application of Knowledge LO: 6-1: What is a database, and how does a relational database organize data?

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12) A schematic of the entire database that describes the relationships in a database is called a(n): A) data dictionary.

B) intersection relationship diagram.

C) field key diagram.

D) data definition diagram.

E) entity-relationship diagram.

Answer: E Difficulty: Easy AACSB: Application of Knowledge LO: 6-1: What is a database, and how does a relational database organize data?

13) A one-to-one relationship between two entities is symbolized in a diagram by a line that ends: A) in two short marks.

B) in one short mark.

C) with a crow's foot.

D) with a crow's foot topped by a short mark.

E) with a crow's foot topped by two short marks.

Answer: A Difficulty: Challenging AACSB: Application of Knowledge LO: 6-1: What is a database, and how does a relational database organize data?

14) A one-to-many relationship between two entities is symbolized in a diagram by a line that ends: A) in two short marks.

B) in one short mark.

C) with a crow's foot.

D) with a crow's foot preceded by a short mark.

E) in three short marks.

Answer: D Difficulty: Challenging AACSB: Application of Knowledge LO: 6-1: What is a database, and how does a relational database organize data?

15) A table that links two tables that have a many-to-many relationship is often called a(n): A) derived table.

B) intersection relation.

C) foreign table.

D) entity-relationship table.

E) derived relation.

Answer: B Difficulty: Challenging AACSB: Application of Knowledge LO: 6-1: What is a database, and how does a relational database organize data?

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16) The process of streamlining data to minimize redundancy and awkward many-to-many relationships is called: A) normalization.

B) data scrubbing.

C) data cleansing.

D) data administration.

E) data management.

Answer: A Difficulty: Moderate AACSB: Information Technology LO: 6-1: What is a database, and how does a relational database organize data?

17) Which of the following best describes the importance of creating an accurate data model for your business's database?

A) It is not essential, as the data model itself is modified by the database continuously.

B) It is critical, as without one, your data may be inaccurate, incomplete, or difficult to retrieve.

C) It is essential, as table relationships cannot be created without an accurate data model.

D) It is somewhat important, as the type of data model will define what kinds of data will be stored.

E) It is unnecessary, as a well-designed database should not require one.

Answer: B Difficulty: Challenging AACSB: Information Technology LO: 6-1: What is a database, and how does a relational database organize data?

18) You are working in the IT department of a small paper supply company and planning a new database that monitors employee benefits and productivity. What would be the relationship you need to establish between Employee_ID in the Employee table and Parking_spot_number in the Perks table?

A) One-to-many B) One-to-one C) Many-to-many D) Many-to-one E) One-to-all Answer: B Difficulty: Moderate AACSB: Information Technology LO: 6-1: What is a database, and how does a relational database organize data?

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19) As described in the chapter case, all of the following are benefits of Domino's new data management platform except the ability to: A) assess the buying patterns of each customer as an individual.

B) cleanse data from different data sources.

C) enrich data with data from third-party sources.

D) assess the performance of individual stores and franchise groups.

E) keep the data more secure.

Answer: E Difficulty: Challenging AACSB: Information Technology LO: 6-1: What is a database, and how does a relational database organize data?

20) The smallest unit of data a computer can handle is called a: A) file.

B) record.

C) field.

D) byte.

E) bit.

Answer: E Difficulty: Easy AACSB: Information Technology LO: 6-1: What is a database, and how does a relational database organize data?

21) A grouping of characters into a word, a group of words, or a complete number is called a byte.

Answer: FALSE Difficulty: Easy AACSB: Information Technology LO: 6-1: What is a database, and how does a relational database organize data?

22) Every record in a file must contain at least one key field.

Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 6-1: What is a database, and how does a relational database organize data?

23) A foreign key is a field that links to a separate table.

Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 6-1: What is a database, and how does a relational database organize data?

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24) A small publishing company that you work for would like to develop a database that keeps track of the contracts that authors and publishers sign before starting a book. What fields do you anticipate needing for this database? Identify at least seven fields. Which of these fields might be in use in other databases within the firm?

Answer: Author first name, author last name, author address, agent name, agent address, title of book, book ISBN, date of contract, amount of money, payment schedule, date contract ends.

Other databases might be an author database (author names, address, and agent details), a book title database (title and ISBN of book), and financial database (payments made).

Difficulty: Moderate AACSB: Information Technology; Written and Oral Communication LO: 6-1: What is a database, and how does a relational database organize data?

25) What types of relationships are possible in a relational database? Describe and give an example of each.

Answer: There are three types of relationships: one-to-one, one-to-many, and many-to-many. A one-to-one relationship occurs when each record in one table has only one related record in a second table. An example might be a table of salespeople and a separate table of company cars.

Each salesperson can only have one car or be related to the one car in the database. A one-tomany relationship occurs when a record in one table has many related records in a second table.

An example might be a table of salespeople and clients. Each salesperson may have several clients. A many-to-many relationship occurs when records in one table have many related records in a second table, and the records in the second table have many related records in the first table. An example might be a Clients table and a Products table. Clients may buy more than one product, and products are sold to more than one client.

Difficulty: Challenging AACSB: Information Technology; Written and Oral Communication LO: 6-1: What is a database, and how does a relational database organize data?

26) The small publishing company you work for wants to create a new database for storing information about their author contracts. What difficulties do you anticipate?

Answer: Data accuracy when the new data is input, establishing a good data model, determining which data is important and anticipating what the possible uses for the data will be, beyond looking up contract information, technical difficulties linking this system to existing systems, new business processes for data input and handling, and contracts management, determining how end users will use the data, making data definitions consistent with other databases, what methods to use to cleanse the data.

Difficulty: Moderate AACSB: Information Technology; Written and Oral Communication LO: 6-1: What is a database, and how does a relational database organize data?

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27) A DBMS makes the: A) relational database available for different analytical views.

B) logical database available for different analytical views.

C) physical database available for different relational views.

D) relational database available for different physical views.

E) physical database available for different logical views.

Answer: E Difficulty: Moderate AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

28) The logical view of a database: A) shows how data are organized and structured on the storage media.

B) presents an entry screen to the user.

C) allows the creation of supplementary reports.

D) presents data as they would be perceived by end users.

E) shows the relationships between entities and attributes.

Answer: D Difficulty: Moderate AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

29) Which of the following allows users to add, change, delete, or retrieve data in a database?

A) Attribute generation B) Report generation tools C) Data dictionary D) Query wizard tool E) Data manipulation language Answer: E Difficulty: Easy AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

30) In a relational database, the three basic operations used to develop useful sets of data are: A) select, project, and where.

B) select, join, and where.

C) select, project, and join.

D) select, from, and join.

E) who, what, and where.

Answer: C Difficulty: Easy AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

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31) The select operation: A) combines relational tables to provide the user with more information than is otherwise available.

B) creates a subset consisting of columns in a table.

C) identifies the table from which the columns will be selected.

D) creates a subset consisting of all records in the file that meet stated criteria.

E) specifies the content of the database.

Answer: D Difficulty: Moderate AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

32) The project operation: A) combines relational tables to provide the user with more information than is otherwise available.

B) creates a subset consisting of columns in a table.

C) organizes elements into segments.

D) identifies the table from which the columns will be selected.

E) stores definitions of data elements.

Answer: B Difficulty: Moderate AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

33) Which of the following is an automated or manual file that stores information about data elements and data characteristics such as usage, physical representation, ownership, authorization, and security?

A) Referential integrity module B) Data definition diagram C) Entity-relationship diagram D) Relationship dictionary E) Data dictionary Answer: E Difficulty: Easy AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

34) Which of the following is the most prominent data manipulation language today?

A) Access B) DB2 C) SQL D) Crystal Reports E) Hadoop Answer: C Difficulty: Easy AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

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35) Nonrelational databases: A) store information in an unstructured format.

B) use rows and columns to organize data.

C) are used to store structured and unstructured data.

D) are used to store low volumes of transactional data.

E) use database-mapping to normalize relations.

Answer: C Difficulty: Moderate AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

36) DBMS typically include report-generating tools in order to: A) retrieve and display data.

B) display data in tables.

C) display data in graphs.

D) perform predictive analysis.

E) display data in an easier-to-read-format.

Answer: E Difficulty: Moderate AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

37) MongoDB and SimpleDB are both examples of: A) open source databases.

B) SQL databases.

C) NoSQL databases.

D) cloud databases.

E) big data databases.

Answer: C Difficulty: Challenging AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

38) Both Oracle and Microsoft Access use SQL to retrieve information from a database.

Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

39) DBMS simplify how end users work with databases by separating the logical and physical views of the data.

Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

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40) Microsoft Access is a database management system for large mainframe computers.

Answer: FALSE Difficulty: Easy AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

41) A logical view of data shows data as it is organized on the storage media.

Answer: FALSE Difficulty: Easy AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

42) The select operation in a relational database joins records from different tables.

Answer: FALSE Difficulty: Easy AACSB: Information Technology LO: 6-2: What are the principles of a database management system?

43) Identify and describe the three basic operations used to extract useful sets of data from a relational database.

Answer: The select operation creates a subset consisting of all records (rows) in the table that meet stated criteria. The join operation combines relational tables to provide the user with more information than is available in individual tables. The project operation creates a subset consisting of columns in a table, permitting the user to create new tables that contain only the information required.

Difficulty: Moderate AACSB: Information Technology; Written and Oral Communication LO: 6-2: What are the principles of a database management system?

44) Describe the process of querying and reporting in a database using DBMS. Answer: DBMS include tools for accessing and manipulating information in databases. A data manipulation language is used to handle data in the database–adding, changing, deleting, and retrieving data. Structured Query Language (SQL) is the most common data manipulation language in use today. DBMS also include the ability to generate reports to display information in a more accessible format using a report generator.

Difficulty: Challenging AACSB: Information Technology; Written and Oral Communication LO: 6-2: What are the principles of a database management system?

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45) What are some of the benefits of using the cloud as a database platform?

Answer: Cloud-based data management services are ideal for smaller to medium-sized businesses looking to establish database capabilities without paying for expensive in-house database products. Companies can use a public cloud-based service or they can use a private cloud to share hardware and software between users, reducing the number of servers, DBMS, and storage devices required.

Difficulty: Easy AACSB: Information Technology; Written and Oral Communication LO: 6-2: What are the principles of a database management system?

46) A ________ is a repository for raw unstructured data or structured data that for the most part have not yet been analyzed.

A) data mart B) data warehouse C) dashboard D) data lake E) relational DBMS Answer: D Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

47) Data mining tools use clustering to find: A) new groupings within data.

B) related predictions from existing values.

C) several events grouped by time.

D) new associations.

E) forecasts for future events.

Answer: A Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

48) Big data refers to any database that: A) contains more than one petabyte of data.

B) discovers patterns in data.

C) has a large volume and variety of data.

D) includes data from thousands of websites.

E) stores data in rows and columns.

Answer: C Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

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49) Data mining is more ________ than OLAP. A) data-focused B) multidimensional C) query-oriented D) discovery-driven E) streamlined Answer: D Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

50) All of the following are tools or technologies for extracting information from unstructured data sets except: A) sentiment analysis software.

B) SQL queries.

C) Hadoop.

D) a nonrelational DBMS. E) text mining.

Answer: B Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

51) Which of the following database types would be best suited for storing unstructured audio and video data?

A) SQL DBMS B) Open source DBMS C) HBase D) Cloud-based database E) NoSQL DBMS Answer: C Difficulty: Challenging AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

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52) Pre-configured hardware-software systems that use both relational and nonrelational technology optimized for analyzing large data sets are referred to as: A) hybrid DBMS. B) Hadoop.

C) BI. D) analytic platforms.

E) data marts.

Answer: D Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

53) Which of the following statements about data warehouses is not true?

A) They store supply data to be used across the enterprise for management analysis and decision making.

B) Data warehouse systems provide a range of ad hoc and standardized query tools, analytical tools, and graphical reporting facilities.

C) They may include data from website transactions.

D) Data warehouse systems provide easy-to-use tools for managers to easily update data.

E) Data warehouses make data available for anyone to access as needed.

Answer: D Difficulty: Challenging AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

54) A data mart usually can be constructed more rapidly and at lower cost than a data warehouse because: A) it typically focuses on a single subject area or line of business.

B) all the information is historical.

C) it uses a web interface.

D) all of the information belongs to a single company.

E) it is created using open-source software.

Answer: A Difficulty: Challenging AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

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55) Capabilities and tools to manage and analyze large quantities and different types of data from multiple sources are collectively known as: A) DSS. B) business intelligence infrastructure.

C) OLAP. D) data mining.

E) in-memory computing.

Answer: B Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

56) Which of the following enables users to view the same data in different ways using multiple dimensions?

A) Hadoop B) SQL C) Big data D) Data mining E) OLAP Answer: E Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

57) OLAP is a tool that enables users to: A) rapidly obtain online answers to ad hoc questions.

B) view both logical and physical views of data.

C) quickly diagram data relationships.

D) normalize data.

E) find hidden patterns in large databases.

Answer: A Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

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58) Data mining is a tool for allowing users to: A) quickly compare transaction data gathered over many years.

B) perform multidimensional data analysis.

C) obtain online answers to ad hoc questions in a rapid amount of time.

D) summarize massive amounts of data into much smaller, traditional reports.

E) find hidden relationships in data.

Answer: E Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

59) In terms of the data relationships found by data mining, associations refer to: A) events linked over time.

B) patterns that describe a group to which an item belongs.

C) occurrences linked to a single event.

D) undiscovered groupings.

E) classification when no groups have yet been defined.

Answer: C Difficulty: Moderate AACSB: Application of Knowledge LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

60) In terms of the data relationships found by data mining, sequences refer to: A) events linked over time.

B) patterns that describe a group to which an item belongs.

C) occurrences linked to a single event.

D) undiscovered groupings.

E) classifications when no groups have yet been defined.

Answer: A Difficulty: Moderate AACSB: Application of Knowledge LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

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61) Which of the following would you use to find patterns in user interaction data recorded by web servers?

A) Web usage mining B) Web server mining C) Web structure mining D) Web content mining E) Web protocol mining Answer: A Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

62) Which of the following would you use to find out which websites with content related to database design were the most often linked to by other websites?

A) Web usage mining B) Web server mining C) Web structure mining D) Web content mining E) Web protocol mining Answer: C Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

63) Businesses use ________ tools to search and analyze unstructured data sets, such as emails and memos.

A) Hadoop B) web mining C) text mining D) OLAP E) DBMS Answer: C Difficulty: Easy AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

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64) Hadoop is a(n): A) NoSQL database technology that stores both data and procedures acting on the data as objects.

B) data mining platform designed for storing and analyzing big data produced by web communications and transactions.

C) open source software framework designed for distributing data-processing over inexpensive computers.

D) pre-configured hardware-software system designed for analyzing big data.

E) high-speed platform used to analyze large data sets.

Answer: C Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

65) A data ________ stores current and historical data of potential interest to decision makers throughout the company.

A) warehouse B) mart C) archive D) mine E) center Answer: A Difficulty: Easy AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

66) A(n) ________ is a dedicated computer in a client/server environment that hosts a DBMS. A) web server B) online server C) database server D) client server E) application server Answer: C Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

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67) Which of the following is an example of a company whose business model is based on access to large databases through the web?

A) Gartner B) Fortune C) IBM D) Microsoft E) Facebook Answer: E Difficulty: Easy AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

68) Links pointing to an online document are a sign of: A) richness or variety of topics covered.

B) popularity.

C) data quality.

D) data usage.

E) marketing.

Answer: B Difficulty: Challenging AACSB: Application of Knowledge LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

69) Links coming out of an online document are a sign of: A) richness or variety of topics covered.

B) popularity.

C) data quality.

D) data usage.

E) marketing.

Answer: A Difficulty: Challenging AACSB: Application of Knowledge LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

70) Text mining is the discovery of useful patterns on the web.

Answer: FALSE Difficulty: Easy AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

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71) Sentiment analysis is used to identify patterns in blogs and social media conversations to detect favorable and unfavorable comments.

Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

72) Hadoop is an open source software framework for processing large quantities of any type of data, including video and Twitter feeds.

Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

73) Two key services of Hadoop are HDFS and MapReduce.

Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

74) A data warehouse is best used for storing unstructured data.

Answer: FALSE Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

75) A data warehouse extracts current and historical data from multiple operational systems in an organization.

Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

76) OLAP enables users to view data from different perspectives.

Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

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77) OLAP is used to quickly find answers to ad hoc questions.

Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

78) In-memory computing relies on a computer's main memory for storing data.

Answer: TRUE Difficulty: Challenging AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

79) Web servers can directly access a firm's back-end databases using HTML. Answer: FALSE Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

80) Facebook is an example of a business based on access to large databases through the web.

Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

81) In linking databases to the web, the role of the application server is to host the DBMS. Answer: FALSE Difficulty: Challenging AACSB: Information Technology LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

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82) List and describe three main capabilities or tools of a DBMS. Answer: A DBMS includes capabilities and tools for organizing, managing, and accessing the data in the database. The most important are its data definition capability, data dictionary, and data manipulation language. The data definition capability specifies the structure of the content of the database. It is used to create database tables and to define the characteristics of the fields in each table. This information about the database would be documented in a data dictionary. A data dictionary is an automated or manual file that stores definitions of data elements and their characteristics. Data dictionaries for large corporate databases may capture additional information, such as usage; ownership (who in the organization is responsible for maintaining the data); authorization; security; and the individuals, business functions, programs, and reports that use each data element. The data manipulation language is a specialized language used to add, change, delete, and retrieve the data in the database. This language contains commands that permit end users and programming specialists to extract data from the database to satisfy information requests and develop applications.

Difficulty: Challenging AACSB: Information Technology; Written and Oral Communication LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

83) Describe the ways in which database technologies could be used by an office stationery supply company to achieve low-cost leadership.

Answer: Student answers will vary; an example answer is: Databases could be used to make the supply chain more efficient and minimize warehousing and transportation costs. You can use OLAP to better analyze sales forecasts. You can also use sales databases and predictive analysis to determine what supplies are in demand by which customers, and whether needs are different in different geographical areas. DSS databases could be used to predict future trends in office supply needs, to help anticipate demand. You could use text mining to identify service issues or inefficiencies within the company. Databases could be used to determine the most efficient methods of transportation and delivery. In addition, you could allow customers to order supplies through the web and have these orders influence the entire supply chain and minimize warehousing costs.

Difficulty: Challenging AACSB: Information Technology; Written and Oral Communication LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

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84) Explain what big data refers to. What benefits does it have, and what challenges does it pose?

Answer: Big data are datasets with volumes so huge that they are beyond the ability of typical DBMS to capture, store, and analyze. Big data is often characterized by the "3Vs": the extreme volume of data, the wide variety of data types and sources, and the velocity at which the data must be processed. Big data doesn't designate any specific quantity but usually refers to data in the petabyte and exabyte range–in other words, billions to trillions of records, respectively, from different sources. Big data are produced in much larger quantities and much more rapidly than traditional data. It is created by the explosion of data coming from the web, such as web traffic, email, Twitter, and Facebook, as well as information from other electronic and networked devices such as sensors and meters. Businesses are interested in big data because they contain more patterns and interesting anomalies than smaller data sets, with the potential to provide new insights into customer behavior, weather patterns, financial market activity, or other phenomena.

However, to derive business value from these data, organizations need new technologies and tools capable of managing and analyzing non-traditional data along with their traditional enterprise data. They also need to know what questions to ask of the data and limitations of big data. Capturing, storing, and analyzing big data can be expensive, and information from big data may not necessarily help decision makers.

Difficulty: Challenging AACSB: Information Technology; Written and Oral Communication LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

85) What are the differences between data mining and OLAP? When would you advise a company to use OLAP? Answer: Data mining uncovers hidden relationships and is used when you are trying to discover data and new relationships, and is used to answer questions such as, are there any product sales that are related in time to other product sales. In contrast, OLAP is used to analyze multiple dimensions of data and is used to find answers to complex, but known, questions, such as sales of a product broken down by month and geographical region, and compared to sales forecasts. I would advise a company to use OLAP when they need to analyze sales in different areas or for different products to see complex views of data.

Difficulty: Challenging AACSB: Information Technology; Written and Oral Communication LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

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86) What makes data mining an important business tool? What types of information does data mining produce? In what type of circumstance would you advise a company to use data mining?

Answer: Data mining is one of the data analysis tools that helps users make better business decisions and is one of the key tools of business intelligence. Data mining allows users to analyze large amounts of data and find hidden relationships between data that otherwise would not be discovered. For example, data mining might find that a customer that buys product X is ten times more likely to buy product Y than other customers.

Data mining finds information such as: • Associations, or occurrences that are linked to a single event.

• Sequences, or events that are linked over time.

• Classifications, or patterns that describe the group to which an item belongs, found by examining existing items that have been classified and by inferring a set of rules.

• Clusters, or unclassified but related groups.

• Forecasts, using a series of existing values to predict what other values will be.

I would advise a company to use data mining when they are looking for new products and services, or when they are looking for new marketing techniques or new markets. Data mining might also be helpful when trying to analyze unanticipated problems with sales whose causes are difficult to identify.

Difficulty: Challenging AACSB: Information Technology; Written and Oral Communication LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

87) What are the similarities and differences between a data warehouse and a data mart?

Answer: A data warehouse stores current and historical data of potential interest throughout a company. Data warehouses gather data from multiple operational systems inside the organization. Data warehouses make data available, but do not allow that information to be altered. Data marts are subsets of data warehouses, in which a highly focused portion of an organization's data is placed in a separate database for specific users. Data marts are decentralized, whereas data warehouses are enterprise-wide, central locations for data.

Difficulty: Moderate AACSB: Information Technology; Written and Oral Communication LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

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88) Imagine you are running a growing business with an active presence on social media. How would you better understand what your customers think about your business using these platforms?

Answer: Text mining and web mining techniques would help a business in this situation. Using text mining tools, businesses can analyze transcripts of calls, texts of email messages, blogs, and social media posts using sentiment analysis, or survey forms, gleaning valuable information about customer opinions on specific topics. web mining involves similar techniques but using web pages and Google search results as the source of data.

Difficulty: Challenging AACSB: Application of Knowledge; Written and Oral Communication LO: 6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

89) All of the following are elements of a data governance policy except identifying: A) which users and organizational units can share information.

B) where information can be distributed.

C) who is responsible for updating and maintaining information.

D) how data resources should be secured.

E) the structure of the company's database.

Answer: E Difficulty: Moderate AACSB: Information Technology LO: 6-4: Why are data governance and data quality assurance essential for managing the firm's data resources?

90) Which of the following establishes rules for sharing, disseminating, acquiring, standardizing, classifying, and inventorying information?

A) Data cleansing B) Data mining C) Data governance D) Logical database design E) Data quality audit Answer: C Difficulty: Moderate AACSB: Information Technology LO: 6-4: Why are data governance and data quality assurance essential for managing the firm's data resources?

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91) Detecting and correcting data in a database or file that are incorrect, incomplete, improperly formatted, or redundant is called: A) data auditing.

B) defragmentation.

C) data scrubbing.

D) data optimization.

E) data repair.

Answer: C Difficulty: Easy AACSB: Information Technology LO: 6-4: Why are data governance and data quality assurance essential for managing the firm's data resources?

92) A ________ is a structured survey of the accuracy and level of completeness of the data in an information system.

A) data quality audit B) systems analysis C) systems audit D) data analysis E) data overview Answer: A Difficulty: Challenging AACSB: Application of Knowledge LO: 6-4: Why are data governance and data quality assurance essential for managing the firm's data resources?

93) Common data quality problems include all of the following except: A) misspelled names.

B) transposed numbers.

C) incorrect codes.

D) missing codes.

E) Internet connectivity problems.

Answer: E Difficulty: Easy AACSB: Information Technology LO: 6-4: Why are data governance and data quality assurance essential for managing the firm's data resources?

94) Data governance establishes the organization's rules for sharing, disseminating, acquiring, standardizing, classifying, and inventorying information.

Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 6-4: Why are data governance and data quality assurance essential for managing the firm's data resources?

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95) Redundant data often stems from the use of different codes to identify the same data in a firm's various information systems.

Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 6-4: Why are data governance and data quality assurance essential for managing the firm's data resources?

96) Data cleansing is the same process as data scrubbing.

Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 6-4: Why are data governance and data quality assurance essential for managing the firm's data resources?

97) A data governance policy specifies the procedures and rules for defining the content of corporate databases.

Answer: FALSE Difficulty: Moderate AACSB: Information Technology LO: 6-4: Why are data governance and data quality assurance essential for managing the firm's data resources?

98) Gartner Inc. reported that about 10 percent of the critical data in large Fortune 1000 companies' databases is inaccurate or incomplete.

Answer: FALSE Difficulty: Moderate AACSB: Information Technology LO: 6-4: Why are data governance and data quality assurance essential for managing the firm's data resources?

99) List at least two ways that a business's data can become redundant or inconsistent.

Answer: Data redundancy and inconsistency can occur because of (1) employing different names and descriptions for the same entities or attributes; (2) multiple systems feeding a data warehouse; (3) incorrect data entry.

Difficulty: Challenging AACSB: Application of Knowledge; Written and Oral Communication LO: 6-4: Why are data governance and data quality assurance essential for managing the firm's data resources?

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Test Bank for Essentials of MIS, 14th Edition, Kenneth C. Laudon Jane P. Laudon

100) Why might you receive multiple pieces of the same piece of mail, or multiple emails featuring the same promotion?

Answer: These events often occur because of redundant information in a database. If you used your middle initial one time and not another, it might generate two entries for you, leading to extra advertising. These types of errors are caused by data input and are becoming more frequent as companies migrate to the web and allow individuals to enter their own data into websites.

Organizations must identify and correct this type of error using a data quality audit and by performing data cleansing.

Difficulty: Challenging AACSB: Analytical Thinking; Written and Oral Communication LO: 6-4: Why are data governance and data quality assurance essential for managing the firm's data resources?

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