CIS 519 Midterm and Final Exam Strayer

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Chapter 1 Through 14
Chapter 1 Decision Support Systems and 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.
Diff: 2

Page Ref: 2

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.
Diff: 2

Page Ref: 4

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.
Diff: 3

Page Ref: 5

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.
Diff: 2

Page Ref: 6

5) One measure of productivity is the ratio of inputs to outputs.

Diff: 2

Page Ref: 7

6) Managers, especially those at high managerial levels, are primarily hands-on

problem solvers.
Diff: 2

Page Ref: 7

7) Because managerial decision making is complex, it is more important to emphasize

methodical, analytical decision making rather than interpersonal communication
skills.
Diff: 3

Page Ref: 7

8) Government regulations, political instability, competition, and changing consumer

demands cause uncertainty that makes it difficult to predict the consequences of a

decision.
Diff: 2

Page Ref: 8

9) Computer applications have progressed from transaction processing and

monitoring to problem analysis and solution applications, and much of the activity is
supported by spreadsheet technologies.
Diff: 2

Page Ref: 9

10) Computerized systems enable people to overcome their cognitive limits by

quickly accessing and processing vast amounts of stored information.
Diff: 2

Page Ref: 10

11) Accounts receivable and accounts payable processes are highly structured, which
makes them easy to program.
Diff: 2

Page Ref: 11

12) Research and development (R & D) planning and social responsibility planning
are unstructured decisions, which cannot be supported by computerized decision
support systems.
Diff: 3

Page Ref: 11

13) The first phase in the decision-making process is design which involves inventing,
developing, and analyzing possible alternative courses of action or solutions.
Diff: 2

Page Ref: 12

14) Automated decision systems (ADS) are rule-based systems that provide solutions
to repetitive managerial problems, usually in one functional area (e.g., finance,
manufacturing).
Diff: 3

Page Ref: 14

15) The term Decision Support Systems (DSS) can be used as an umbrella term to
describe any computerized system that supports decision making in an organization.
Diff: 1

Page Ref: 16

16) The two major DSS types are the model-oriented DSS, in which quantitative
models are used to generate a recommended solution to a problem, and data-oriented
DSS, which support ad hoc reporting and queries.
Diff: 2

Page Ref: 17

17) A BI system has three major components: a data warehouse with source data;
business performance management (BPM) for monitoring and analyzing performance;
and a user interface such as a dashboard.
Diff: 2

Page Ref: 20

18) Most DSS are constructed to directly support specific decision making. In
contrast, BI systems, in general typically provide accurate and timely information to
support decision support indirectly. This difference is diminishing because decision
support tools are being added to BI software packages.
Diff: 3

Page Ref: 24

19) Dashboards and information portals are data visualization tools.

Diff: 2

Page Ref: 26

20) The objective of computerized decision support, regardless of its name or nature,
is to help managers solve problems and assess opportunities faster and better than
would be possible without computers.
Diff: 2

Page Ref: 27

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
Diff: 2

Page Ref: 3

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
Diff: 2

Page Ref: 3

23) Numerous types of business ________ result from today's business climate.
A) decisions
B) responses
C) support
D) pressures
Diff: 1

Page Ref: 5

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
Diff: 2

Page Ref: 5

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
Diff: 3

Page Ref: 5

26) 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
Diff: 1

Page Ref: 6

27) 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
Diff: 3

Page Ref: 6

28) Management is a process by which organizational goals are achieved by using

resources. The resources are considered ________, and attainment of goals is viewed
as the ________ of the process.
A) expenses; profits
B) inputs; output
C) pressures; opportunities
D) scarce; success
Diff: 2

Page Ref: 7

29) Mintzberg's (1980) classic study of top managers suggests that managers perform
ten major roles that can be classified into three major categories. Each of the
following is one of those major categories except:
A) relational
B) interpersonal
C) decisional
D) informational
Diff: 2

Page Ref: 7

30) For years in the past, managers considered decision making a(n) ________, that
is, a talent acquired over a long period through experience and by using intuition.
A) science
B) strategy
C) art
D) methodology
Diff: 2

Page Ref: 7

31) According to Mintzberg's ten managerial roles, a ________ is responsible for the
motivation and activation of subordinates.
A) leader
B) figurehead
C) liason
D) spokesperson
Diff: 2

Page Ref: 7

32) According to Mintzberg's ten managerial roles, a ________ is symbolic head; or

someone who is obliged to perform a number of routine duties.
A) leader
B) figurehead
C) liason
D) spokesperson
Diff: 2

Page Ref: 7

33) 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
Diff: 2

Page Ref: 9

34) Decision-making processes fall along a continuum that ranges from ________ to
________.
A) highly structured; highly unstructured
B) semistructured; unstructured
C) managerial; strategic
D) ad hoc; nonprogrammed
Diff: 2

Page Ref: 11

35) Phases in the decision-making process include each of the following except:
A) intelligence
B) analysis
C) design
D) choice
Diff: 2

Page Ref: 12

36) Solving semistructured problems may involve a combination of both standard

solution procedures and human judgment. Management science can provide models
for the portion of the decision-making problem that is ________.
A) controlled
B) semistructured
C) unstructured
D) structured
Diff: 2

Page Ref: 13

37) 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)
Diff: 2

Page Ref: 14

38) Which of the following is one of the two major types of Decision Support
Systems?
A) Number-oriented
B) Text-oriented
C) Model-oriented
D) Application-oriented
Diff: 2

Page Ref: 17

39) Which of the following is not a component of DSS architecture?

A) Data
B) Model
C) Knowledge
D) Web
Diff: 2

Page Ref: 17

40) 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
41) Management is a process by which organizational goals are achieved using
________.
42) Making a decision means selecting the best alternative from two or more
________ solutions.
43) The level of organization's ________, or the success of management, depends on
the performance of managerial functions, such as planning, organizing, directing, and
controlling.
44) ________ indicates that an individual's problem-solving capability is limited
when a wide range of diverse information and knowledge is required.
45) ________ defines long-range goals and policies for resource allocation.
46) ________ is the efficient and effective execution of specific tasks.

47) Gorry and Scott-Morton suggested, for example, that for semistructured decisions
and unstructured decisions, conventional ________ and management science (MS)
tools are insufficient.
48) ________ involves transforming the real-world problem into an appropriate
prototype structure.
49) Structured problems, which are encountered repeatedly, have a high level of
________.
50) ________ is the application of scientific approach and mathematical models to the
analysis and solution of managerial decision situations.
51) Automated Decision Systems (ADS) is a business ________ system that uses
intelligence to recommend solution to repetitive decisions (such as pricing).
52) Decision support systems are computer-based support systems for management
decision makers who deal with ________ problems.
53) ________ is the first component of the DSS architecture.
54) The process of business intelligence is based on the ________ of data to
information, then to decisions, and finally to actions.
55) 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.

56) ________ 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.
57) ________ 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.
58) ________ are a type of user interface that provides a comprehensive visual view
of corporate performance measures, trends, and exceptions.
59) A ________ is a system in which human participants and/or machines perform a
business process, using information, technology, and other resources, to produce
products and/or services for internal or external customers.
60) List four major business environmental factors in today's business environment.
61) List and define the three interpersonal roles of a manager as described by
Mintzberg.
62) List and define the three informational roles of a manager as described by
Mintzberg.
63) List and define the four decisional roles of a manager as described by Mintzberg.
64) Describe the four phases in the decision-making process.
65) Distinguish between structured and unstructured problems.
66) Describe the three categories that comprise Anthony's taxonomy of management.
67) List the steps involved in the management science (MS) approach to problem
solving.

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

69) Describe the nine elements of a work system.
Chapter 2 Decision Making, Systems, Modeling, and Support
1) When trying to solve a problem, developers at the manufacturer HP consider the
three phases in developing a
model. Their first phase is problem analytics.
Diff: 2

Page Ref: 39

2) If a problem arises due to misalignment of incentives or unclear lines of authority

or plans, then no model can help solve that root problem.
Diff: 2

Page Ref: 39

3) When developers design and develop tools, the first guideline is to develop a
prototype to test the designs and get early feedback from the end users to see what
works for them and what needs to be changed.
Diff: 2

Page Ref: 39

4) It is important to remove unneeded complexity from a model before handoff

because as a tool becomes more complex it requires more automation.
Diff: 3

Page Ref: 39

5) Groupthink among decision makers can help lead to the best decisions.
Diff: 3

Page Ref: 41

6) Experimentation with a real system is possible only for one set of conditions at a
time and can be disastrous.
Diff: 2

Page Ref: 41

7) Collecting information and analyzing a problem are the fastest and least expensive
parts of decision-making.
Diff: 2

Page Ref: 41

8) Fast decision-making requirements tend to reduce decision quality.

Diff: 1

Page Ref: 41

9) According to Simon, managerial decision making is synonymous with managers

using decision support systems.
Diff: 1

Page Ref: 42

10) Most Web-based DSS are focused on improving decision efficiency.

Diff: 1

Page Ref: 42

11) Personality temperament tests are often used to determine decision styles.
Diff: 2

Page Ref: 43

12) Problem identification is the conceptualization of a problem in an attempt to place

it in a definable category, possibly leading to a standard solution approach.
Diff: 3

Page Ref: 48

13) One approach to solving a complex problem is to divide it into simpler

subproblems and then solve those subproblems.
Diff: 2

Page Ref: 49

14) A problem exists in an organization only if someone or some group takes on the
responsibility of attacking it and if the organization has the ability to solve it.
Diff: 2

Page Ref: 50

15) The process of modeling involves determining the (usually mathematical,

sometimes symbolic) relationships among the variables.
Diff: 1

Page Ref: 51

16) "Humans are economic beings whose objective is to maximize the attainment of
goals" is one of the assumptions of rational decision makers.
Diff: 2

Page Ref: 52

17) The idea of "thinking with your gut" is a heuristic approach to decision making.
Diff: 1

Page Ref: 52

18) Rationality is bounded only by limitations on human processing capacities but not
by individual differences.
Diff: 2

Page Ref: 55

19) In general, people have a tendency to measure uncertainty and risk badly; for
example, people tend to be overconfident and have an illusion of control in decision
making.
Diff: 2

Page Ref: 56

20) Web-based systems have clearly influenced how decision making is supported.

Diff: 2

Page Ref: 63

21) Groupthink tends to ________ the quality of decisions.

A) be detrimental to
B) improve
C) prolong
D) complicate
Diff: 2

Page Ref: 41

22) Decision making that involves too much information may lead to a condition
known as _______.
A) groupthink
B) information overload
C) experimentation
D) over assumption
Diff: 1

Page Ref: 41

23) Decisions are often made by ________, especially at lower managerial levels and
in small organizations.
A) groups
B) management teams
C) individuals
D) computerized systems
Diff: 2

Page Ref: 42

24) Different decision styles require different types of support. A major factor that
determines the type of required support is whether the decision maker is ________.
A) autocratic
B) consultative
C) an individual or a group
D) democratic
Diff: 2

Page Ref: 43

25) Which of the following is a physical replica of a system, usually on a different

scale from the original?
A) Complex model
B) Iconic model
C) Duplicated model
D) Composite model
Diff: 2

Page Ref: 44

26) Which of the following model behaves like the real system but does not look like
it?
A) Composite model
B) Analog model
C) Dense model
D) Iconic model
Diff: 2

Page Ref: 44

27) There is a continuous flow of activity from one phase to the next phase in a
decision making process, but at any phase there may be a return to a previous phase.
________ is an essential part of this process.
A) Testing
B) Trial-and-error
C) Experimenting
D) Modeling
Diff: 2

Page Ref: 46

28) The identification of organizational goals and objectives related to an issue of

concern and determination of whether they are being met is the beginning of the
________ of decision making.
A) initial phase
B) intelligence phase
C) brainstorming phase
D) generation phase
Diff: 2

Page Ref: 46

29) Which of the following involves finding or developing and analyzing possible
courses of action in a decision making phase?
A) Consultation phase
B) Communication phase
C) Intelligence phase
D) Design phase
Diff: 2

Page Ref: 46

30) A(n) ________ is a criterion that describes the acceptability of a solution

approach. In a model, it is a result variable.
A) principle of choice
B) optimization variable
C) trade-off
D) worst-case criterion
Diff: 3

Page Ref: 51

31) Which of the following describes normative models?

A) These models are based on anomalies in rational decision making.
B) They are models in which the chosen alternative is demonstrably the best of all
possible alternatives.
C) They are models based on the phenomenon of preference reversal.
D) They lead to an approach known as suboptimization.
Diff: 3

Page Ref: 51

32) Which of the following, by definition, requires a decision maker to consider the
impact of each alternative course of action on the entire organization because a
decision made in one area may have significant effects in other areas?
A) Satisfaction
B) Worst-case
C) Feasibility
D) Optimization
Diff: 1

Page Ref: 51

33) "Thinking with your gut" is a heuristic approach to decision making that would
work best for ________.
A) amateur chefs
B) payroll processors and accountants
C) experienced firefighters and military personnel on the battlefield
D) structured decision situations
Diff: 3

Page Ref: 52

34) With ________, the performance of the system is checked for a given set of
alternatives, rather than for all alternatives. Therefore, there is no guarantee that an
alternative selected is optimal.
A) analytical analysis
B) descriptive analysis
C) optimization analysis
D) quantitative analysis
Diff: 3

Page Ref: 54

35) The usual reasons for ________ are time pressures and recognition that the
marginal benefit of a better solution is not worth the marginal cost to obtain it
A) satisficing

B) settling
C) compromising
D) rationalizing
Diff: 3

Page Ref: 55

36) A ________ describes the decision and uncontrollable variables and parameters
for a specific modeling situation.
A) statement
B) model
C) program
D) scenario
Diff: 2

Page Ref: 57

37) Which of the following is a study of the effect of a change in one or more input
variables on a proposed solution?
A) Sensitivity analysis
B) Boundary analysis
C) Fish bone analysis
D) Input-output analysis
Diff: 2

Page Ref: 58

38) A ________ can help a decision maker sketch out the important qualitative factors
and their causal relationships in a messy decision-making situation.
A) mathematical map
B) cognitive map
C) qualitative map
D) narrative map
Diff: 2

Page Ref: 62

39) The ________ of a proposed solution to a problem is the initiation of a new order
of things or the introduction of change.
A) method
B) implementation
C) approach
D) style
Diff: 2

Page Ref: 62

40) The Museum of Natural History in Aarhus, Denmark uses ________ to collect
detailed information about visitors' use of the exhibits to help determine visitors'
behavior to identify high-demand exhibits.
A) group decision systems
B) algorithms
C) RFID
D) expert systems
Diff: 2

Page Ref: 71

41) ________ is synonymous with the whole process of management.

42) A ________ is a simplified representation or abstraction of reality.
43) ________ are the descriptive representations of decision-making situations that
we form in our heads and think about.
44) The ________ phase in decision making involves scanning the environment and
collecting information.
45) Problem ________ is the conceptualization of a problem in an attempt to place it
in a definable category, possibly leading to a standard solution approach.
46) The process of modeling is a combination of art and science. As an art, a level of
creativity and finesse is required when determining what simplifying ________ are
appropriate and helpful.
47) A ________ describes the alternatives a manager must choose among, e.g., like
how many cars to deliver to a specific rental agency or how to advertise at specific
times.
48) A ________ is a model that prescribes how a system should operate.
49) ________ may also involve simply bounding the search for an optimum by
considering fewer criteria or alternatives or by eliminating large portions of the
problem from evaluation.
50) A ________ is extremely useful in DSS for investigating the consequences of
various alternative courses of action under different configurations of inputs and
processes.
51) ________ is the imitation of reality and has been applied to many areas of
decision making.
52) Another descriptive decision-making model is the use of ________ to describe a
decision-making situation. It is extremely effective when a group is making a decision

and can lead to a more common frame.

53) ________ is a willingness to settle for a satisfactory solution that is, in effect,
suboptimizing.
54) Aside from estimating the potential utility or value of a particular decision's
outcome, the best decision makers are capable of accurately estimating the ________
associated with the resultant outcomes resulting from making each decision.
55) A ________ asks a computer what the effect of changing some of the input data or
parameters would be.
56) The model is the critical component in the decision-making process, but one may
make a number of errors in its development and use. ________ the model before it is
used is critical.
57) A(n) ________ is a step-by-step search in which improvement is made at every
step until the best solution is found.

58) ________ is the critical act of decision making when the actual decision and
commitment to follow a certain course of action are made.
59) A data warehouse can support the intelligence phase by continuously monitoring
both internal and
external information, looking for early signs of problems and opportunities through a
Web-based enterprise information portal called a(n) ________.
60) Much of the information used in seeking new opportunities is ________, or soft.
61) Discuss the importance of decision style.
62) Describe the three classifications of models.
63) List five benefits of using models.

64) Briefly describe Simon's four phases of decision making.

65) Briefly describe the four steps in the intelligence phase of decision making.
66) Briefly describe problem decomposition and its benefits.
67) Describe the three assumptions of rational decision makers used in Normative
decision theory.

68) Compare the normative and descriptive approaches to decision making.

69) Discuss why scenarios play an important role in management support systems.
70) Describe 3 findings about decision making in the Digital Age.
Chapter 3 Decision Support Systems Concepts, Methodologies, and
Technologies: An Overview
1) Decision makers at the Avantas Company selected Planners Lab for data analysis
because Planners Lab offered an easy-to-use alternative to Excel to create "what-if"
scenarios.
Diff: 3

Page Ref: 71

2) A key component of DSS is the ability to visualize the results. For example, it is
important for executives to visualize the results of modifying assumptions.
Diff: 2

Page Ref: 74

3) Business intelligence (BI) is typically built to support the solution of a certain

problem or to evaluate an opportunity.
Diff: 2

Page Ref: 78

4) All DSSs have common components that enable them to provide the same
capabilities and support to users.
Diff: 1

Page Ref: 77

5) Business analytics (BA) implies the use of models and data to improve an
organization's performance or competitive posture
Diff: 2

Page Ref: 78

6) Knowledge Management Systems (KMS) that are developed around communities

that practice collaborative work are a type of document-driven DSS.
Diff: 2

Page Ref: 80

7) The most common end-user tool for DSS development is Microsoft Access, which
includes statistical packages, a linear programming package, and financial and
management science models.
Diff: 2

Page Ref: 80

8) A DSS can be custom-made by assembling the system from a variety of tools

including databases, Web servers and clients, and analytical engines, often from
several vendors.

Diff: 1

Page Ref: 84

9) A DSS database can include multimedia objects, e.g., pictures, maps, and sounds.
Diff: 1

Page Ref: 91

10) XML (eXtensible Markup Language) is becoming more important in DSS due to
the growth of mobile commerce applications, on handheld devices, e.g., PDAs and
cell phones.
Diff: 3

Page Ref: 91

11) To create or load a DSS database or a data warehouse, it is often necessary to

capture data from several sources, which is a simple (trivial) process.
Diff: 3

Page Ref: 92

12) An effective database and its management can support many managerial activities;
however, the real power of a DSS occurs when data are integrated with its models.
Diff: 2

Page Ref: 92

13) A key issue in data management is that of data quality. Poor quality data, which
leads to poor quality information leads directly to waste.
Diff: 1

Page Ref: 93

14) Data integration issues generally become critical when implementing an

enterprise information system like a supply management system.
Diff: 1

Page Ref: 94

15) Planned models are used mainly by middle management to assist in allocating and
controlling the organization's resources.
Diff: 3

Page Ref: 97

16) 3Because DSS deal with semistructured or unstructured problems, it is often

necessary to customize models, using programming tools and languages.
Diff: 1

Page Ref: 98

17) Database directory is a catalog of all the models and other software in the model
base.
Diff: 2

Page Ref: 99

18) User interface of a DSS includes not only the hardware and software but also
factors that deal with ease of use, accessibility, and human-machine interactions.
Diff: 2

Page Ref: 100

19) A difficult user interface is one of the major reasons why managers do not use
computers and quantitative analyses as much as they could, given the availability of
these technologies.
Diff: 1

Page Ref: 100

20) If the main user of a DSS is replaced by another, less knowledgeable user (in
terms of the decision-making problem and environment), the DSS will generally be
less effective.
Diff: 1

Page Ref: 107

21) A DSS is an approach for supporting decision making. It uses an interactive,

flexible, adaptable computer-based information system (CBIS) developed to support
the solution to a specific, ________ management problem.
A) easy
B) problematic
C) nonstructured
D) hard
Diff: 2

Page Ref: 75

22) ________ implies the use of models and data to improve an organization's
performance or competitive posture.
A) Business applications
B) Business analytics
C) Business intelligence
D) Business rules
Diff: 2

Page Ref: 78

23) ________ systems have models embedded in them, but they are still not well
understood in practice.
A) Web analytics
B) Data mining and OLAP
C) XML
D) Data dictionary
Diff: 3

Page Ref: 78

24) By definition, a DSS must include ________.

A) business intelligence
B) an expert system
C) an animation system
D) a user interface
Diff: 2

Page Ref: 86

25) Which of the following subsystem can support any of the other subsystems or act
as an independent component? It also provides intelligence to augment the decision

maker's own?
A) Knowledge-base management subsystem
B) Intelligence-base subsystem
C) User interface subsystem
D) Expertise-base subsystem
Diff: 2

Page Ref: 86

26) A(n) ________ is a collection of interrelated data, organized to meet the needs and
structure of an organization that can be used by more than one person for more than
one application.
A) business intelligence
B) expert system
C) database
D) data repository
Diff: 1

Page Ref: 90

27) The operation of capturing data from several sources and loading it to a data
warehouse is called:
A) extraction.
B) loading.
C) mining.
D) storing.
Diff: 1

Page Ref: 92

28) A database is created, accessed, and updated by a(n) ________.

A) expert system
B) animation system
C) knowledge system
D) database management system
Diff: 2

Page Ref: 92

29) Data directory is a catalog of all the data in the database. It contains ________,
and its main function is to answer questions about the availability of data items, their
source, and their exact meaning.
A) data foundations
B) data definitions
C) data names
D) data sources
Diff: 2

Page Ref: 93

30) The ________ is especially appropriate for supporting the intelligence phase of
the decision-making process by helping to scan data and identify problem areas or
opportunities.
A) intelligence facility
B) query facility
C) data directory
D) knowledge facility
Diff: 1

Page Ref: 93

31) A(n) ________ contains routine and special statistical, financial, forecasting,
management science, and other quantitative models that provide the analysis
capabilities in a DSS.
A) model base
B) application base
C) analytical base
D) query base
Diff: 3

Page Ref: 96

32) Which of the following is used mainly by middle management to assist in

allocating and controlling the organization's resources?
A) Tactical model
B) Planned model
C) Managerial model
D) Middle-management model
Diff: 2

Page Ref: 97

33) When voice input with accompanying ________ software is used, verbal
instructions with accompanied actions and outputs can be invoked.
A) language recognition
B) accent recognition
C) voice recognition
D) speech recognition
Diff: 2

Page Ref: 102

34) Most data mining applications include intelligent systems, such as artificial neural
networks (ANN) and rule induction methods for expert systems (ES), to search for
potentially profitable ________ in data.
A) samples
B) patterns
C) sections
D) trends
Diff: 2

Page Ref: 106

35) ________ control and coordinate the use of software to support group work.
A) Expert tool users
B) Facilitators
C) Analyst
D) Managers
Diff: 2

Page Ref: 107

36) The choice of hardware can be made ________ the design of the MSS software,
but it is often determined by what is already available in the organization.
A) before
B) during
C) after
D) all of the above
Diff: 2

Page Ref: 107

37) The de facto DSS hardware standard is a(n) ________ through which the DBMS
provides data.
A) Web server
B) data center
C) mainframe
D) local area network
Diff: 3

Page Ref: 108

38) Optimization, simulation, statistics systems, and ES currently run in ________.

These developments simplify access to data, models, and knowledge, and simplify
their integration.
A) ASPs
B) user interfaces
C) Java
D) .NET
Diff: 3

Page Ref: 108

39) ________ is a robust DSS modeling language.

A) Ruby on Rails
B) Planners Lab
C) Sybase
D) OLAP
Diff: 2

Page Ref: 108

40) All of the following are characteristics of Planners Lab except:

A) Planners Lab makes it possible for the decision makers to play with assumptions to
reflect alternative views of the future.
B) It lets decision makers describe their plans in their own words and with their own
assumptions.
C) It facilitates a conversation with the decision maker in the process of describing
business assumptions.
D) All assumptions are described in English equations only.
Diff: 2

Page Ref: 110

41) ________ describes the business analytics method of forecasting problems and
opportunities rather than simply reporting them as they occur.
42) ________ are generally utilized to analyze decision-making situations and make a
DSS different from most MIS.
43) A database-oriented DSS features strong ________ capabilities.
44) ________ deal with specific problems that are usually neither anticipated nor
recurring.
45) ________ is the physical data repository organized to provide enterprise wide,
cleaned data in a standardized format.
46) A(n) ________ subsystem includes a database that contains relevant data for the
situation and is managed by software called the database management system.
47) Users of DSS communicate with and command the DSS through the ________
subsystem.
48) In building and using DSS, it is often necessary to access, manipulate, and query
data. The ________ performs these tasks.
Answer: query facility
Diff: 2 Page Ref: 93
49) Selection and ________ are two important functions of a DSS query system.
50) As the size of the data to be stored and accessed increases, processing times and
storage space also grow, sometimes dramatically. Large databases present major
________ problems.
51) One key issue that DBMS must handle is data security. Data can be ________ so
that even in the case of unauthorized access, the viewed data is scrambled and
unintelligible.

52) ________ models are used to support the day-to-day working activities of the
organization. Typical decisions involve e-commerce transaction acceptance, approval
of personal loans by a bank, production scheduling, inventory control, maintenance
planning and scheduling, and quality control.
53) ________ are Web-based business analytics tools to assist in decision making.
54) Operational models mainly support first-line managers' decision making with a
daily to ________ time horizon.
55) The models in the model base can also be classified by functional areas or by
________.
56) ________ are preprogrammed software elements that can be used to build
computerized models. One example is the random-number generator that can be
employed in the construction of a simulation model.
57) Advanced DSS are equipped with a component called a(n) ________ subsystem.
This component can supply the required expertise for solving some aspects of the
problem and provide knowledge that can enhance the operation of other DSS
components.
58) An ________ allows the manager to benefit from the decision support system
without actually having to use the keyboard.
59) Distributed DSS runs on various types of networks, including the Internet,
intranets, and extranets. Access may be provided for mobile devices, e.g., notebook
PCs and mobile telephones. This ________ has become critical for deploying
decision-making capability in the field, especially for salespersons and technicians.
60) Planners Lab is a DSS ________ language.
61) Identify the key characteristics and capabilities of a DSS.
62) List the capabilities of institutional DSS and ad hoc DSS.

63) List the five major components of a DSS.

64) List and describe the four components of the data management subsystem.
65) Describe five of Larry English's Top Ten essential ingredients of data quality
management.

66) List the five elements of the model management subsystem.

67) Explain the differences in strategic, tactical, operational, and analytical models.
68) List the four main functions of MBMS (model base management system) software
69) Explain the role, components, and importance of the user interface (dialog)
subsystem.

70) Discuss the advantages of developing a models for a DSS with Planners Lab
instead of traditional programming languages or spreadsheets?
Chapter 4 Modeling and Analysis
1) The use of an optimization model in the auction bidding process to award school
meal contracts in Chile has significantly decreased costs.
Diff: 1

Page Ref: 138

2) In developing countries, small changes in state-run social programs using

management science support can lead to enormous savings.
Diff: 2

Page Ref: 138

3) All companies, except for those under financial stress, should invest in simulation
models to increase their efficiency.
Diff: 2

Page Ref: 139

4) A DSS can be composed of several models, some standard and some custom built,
used collectively to support strategic decisions in the company.
Diff: 1

Page Ref: 139

5) Modeling involves data analysis with trend lines and establishing relationships with
statistical methods.
Diff: 1

Page Ref: 141

6) Predictive analytics is essential for construction and manipulation of models

because when a decision is implemented, the results usually occur in the future.
Diff: 2

Page Ref: 142

7) Models, like data, must be managed to maintain their applicability, and thus their
integrity.
Diff: 3

Page Ref: 143

8) DSS uses mostly qualitative models, whereas expert systems use quantitative
models in their applications.
Diff: 2

Page Ref: 143

9) To use models and solution techniques effectively, one needs to have gained
experience through developing and solving simple ones.
Diff: 2

Page Ref: 144

10) One recent trend in modeling involves the development of model libraries and
solution technique libraries.
Diff: 1

Page Ref: 144

11) There is a trend toward developing and using Web tools and software to access
and run software to perform modeling, optimization, and simulation, even though this
has complicated the application of many models to real-world problems.
Diff: 3

Page Ref: 144

12) An influence diagram is a graphical representation of a model; that is, it is a

model of a model.
Diff: 2

Page Ref: 145

13) In decision making under uncertainty, the decision maker considers situations in
which several outcomes are possible for each course of action. In this case, the
decision maker can estimate the probability of occurrence of the possible outcomes.
Diff: 2

Page Ref: 148

14) One of the assumptions of the linear programming allocation model is that not all
data are known with certainty.
Diff: 2

Page Ref: 154

15) The pessimistic approach assumes that the best possible outcome of each
alternative will occur and then selects the best of the best.
Diff: 1

Page Ref: 163

16) Today's management systems are designed to help managers attain simultaneous,
but at times, conflicting goals.
Diff: 2

Page Ref: 165

17) The AHP manipulates quantitative and qualitative decision-making criteria in a

fairly structured manner, allowing a decision maker to make trade-offs quickly and
expertly.
Diff: 3

Page Ref: 165

18) Heuristics techniques are used mainly for solving structured problems, usually of
a tactical or operational nature, in areas such as resource allocation or inventory
management.
Diff: 2

Page Ref: 170

19) Blind search techniques are arbitrary search approaches that are not guided.

Diff: 1

Page Ref: 170

20) Continuous distributions are situations with unlimited numbers of possible events
that follow density functions, such as the normal distribution.
Diff: 2

Page Ref: 174

21) Which of the following is a key element in most DSS and a necessity in a modelbased DSS?
A) Database
B) Analytical model
C) Modeling
D) Business intelligence
Diff: 1

Page Ref: 139

22) ________ diagrams are graphical models of mathematical models, which can
facilitate the process of identifying the model's variables.
A) Decision
B) Tree
C) Fish bone
D) Influence
Diff: 2

Page Ref: 141

23) E-commerce has created an immense need for ________ and an abundance of
available information for performing it.
A) nonlinear programming
B) forecasting
C) auction models
D) queuing
Diff: 2

Page Ref: 142

24) Which of the following models takes a single snapshot of a situation where
everything occurs in a single interval?
A) Sliced model
B) Snapshot model
C) Stationary model
D) Static model
Diff: 2

Page Ref: 143

25) Which of the following techniques is used to solve optimization problems that
have few alternatives?
A) Trial-and-error
B) Binary search
C) Expert systems
D) Decision trees
Diff: 3

Page Ref: 144

26) ________ is a type of model that is used to find a good enough solution, or the
best solution among alternatives, using experimentation.
A) Simulation
B) Heuristics
C) Predictive
D) Deterministic
Diff: 2

Page Ref: 144

27) Which of the following are factors that affect the result variables, but are not
under the control of the decision maker?
A) Parameters
B) Decision variables
C) Independent variables
D) Output variables
Diff: 1

Page Ref: 146

28) The four components in a decision support mathematical model are linked
together by the ________ relationships, such as equations.
A) mathematical
B) cause-and-effect
C) analytical
D) data integration
Diff: 2

Page Ref: 147

29) Decision situations are often classified on the basis of what the decision maker
knows about the forecasted results. Which of the following is one of the categories?
A) Indecision
B) Firmness
C) Ambiguity
D) Certainty
Diff: 1

Page Ref: 148

30) Which of the following is not a characteristic of a linear programming model?

A) A limited quantity of economic resources is available for allocation.
B) The resources are used in the production of products or services.
C) The maximum number of constraints is four.
D) There are two or more ways in which the resources can be used.
Diff: 3

Page Ref: 154

31) A model builder makes predictions and assumptions regarding the input data,
many of which deal with the assessment of uncertain futures. Which of the following
attempts to assess the impact of a change in the input data or parameters on the
proposed solution?
A) Mathematical relationships
B) Decision analysis
C) Goal programming
D) Sensitivity analysis
Diff: 3

Page Ref: 158

32) Which of the following calculates the values of the inputs necessary to achieve a
desired level of an output?
A) Goal seeking analysis
B) Decision analysis
C) Trial-and-error
D) Sensitivity analysis
Diff: 2

Page Ref: 161

33) Decision situations that involve a finite and usually not-too-large number of
alternatives are modeled by an approach called ________.
A) exhaustive search
B) decision map
C) decision analysis
D) trial-and-error
Diff: 2

Page Ref: 162

34) Which of the following is a step-by-step search process for obtaining an optimal
solution?
A) Analytic technique
B) Algorithm
C) Heuristic
D) Linear programming
Diff: 2

Page Ref: 169

35) Which of the following are the informal, judgmental knowledge of an application
area that constitute the "rules of good judgment" in the field?
A) Binary search
B) Algorithm
C) Heuristic
D) Rule of thumb
Diff: 2

Page Ref: 170

36) Typically there is some randomness in decision-making situations. Because DSS

deals with semistructured or unstructured situations, reality is complex, which may
not be easily represented by optimization or other models but can often be handled by
________.
A) simulation
B) linear programming
C) statistical analysis
D) forecasting
Diff: 2

Page Ref: 171

37) Which of the following is one of the disadvantages of simulation?

A) The model is built from the manager's perspective.
B) Simulation automatically produces many important performance measures.
C) Simulation is often the only DSS modeling method that can readily handle
relatively unstructured problems.
D) An optimal solution cannot be guaranteed, but relatively good ones are generally
found.
Diff: 3

Page Ref: 173

38) Monte Carlo simulation is a type of ________ simulation.

A) deterministic
B) probabilistic
C) exact
D) analytical
Diff: 2

Page Ref: 174

39) ________ uses animated computer graphic displays to present the impact of
different managerial decisions. It differs from regular graphics in that the user can
adjust the decision making process and see the results of the intervention.
A) Visual interactive simulation
B) Quantitative software
C) OLAP
D) Object-oriented model base
Diff: 2

Page Ref: 178

40) Which of the following packages are preprogrammed (sometimes called ready-

made) models and optimization systems that sometimes serve as building blocks for
other quantitative models?
A) Quantitative software
B) Qualitative software
C) Development tool
D) Application
Diff: 2

Page Ref: 179

41) ________ conducts a search for and an analysis of information in external

databases and flows of information.
42) Customer relationship management systems and revenue management systems
rely heavily on forecasting techniques, which are typically described as ________.
43) ________ models are time dependent; and are valuable because they represent
trends and patterns over time.
44) ________ is a variable that expresses the result of a decision (e.g., one concerning
profit), usually one of the goals of a decision-making problem.
45) ________ are variables that contain the values of intermediate outcomes in
mathematical models.
46) In decision making under ________, the decision maker considers situations in
which several outcomes are possible for each course of action. The decision maker
does not know, or cannot estimate, the probability of occurrence of the possible
outcomes.
47) ________ is a decision-making method that analyzes the risk associated with
different alternatives.

48) ________ is a family of tools designed to help solve managerial problems in

which the decision maker must allocate scarce resources among competing activities
to optimize a measurable goal.
49) The allocation of resources in a linear programming problem is usually restricted
by limitations and requirements called ________.
50) ________ investigates what the effect of changing some of the input data or
parameters would be.
51) ________ analysis calculates the values of the inputs necessary to achieve a
desired level of an output.
52) ________ conveniently organize information and knowledge in a systematic,
tabular manner to prepare it for analysis.
53) A(n) ________ is a step-by-step search process for obtaining an optimal solution
54) ________ is a measure of how difficult a problem is in terms of its formulation
for optimization, its required optimization effort, or its stochastic nature.
55) ________ distributions involve a situation with a limited number of events or
variables that can take on only a finite number of values.
56) ________ distributions are situations with unlimited numbers of possible events
that follow density functions, such as the normal distribution.

57) If the simulation results do not match the intuition or judgment of the decision
maker, a ________ gap in the results can occur.
58) ________ is a simulation approach used in the decision-making process that
shows graphical animation in which systems and processes are presented dynamically
to the decision maker. It enables visualization of the results of different potential
actions.
59) A(n) ________ is a model based management system constructed in an objectoriented environment.
60) ________ is the relational approach to the design and development of a model
base management system.
61) Distinguish between a static model and a dynamic model.
62) Briefly describe three of the seven categories of models.
63) What is an influence diagram? Name a benefit of influence diagrams.

64) Distinguish between decision making under certainty, risk, and uncertainty.

65) List the characteristics of a linear program allocation problem.

66) List and briefly discuss the three major components of linear programming.
67) List five most common optimization models.

68) List the type of relationships sensitivity analysis study can test.
69) List the steps involved in the simulation process.
70) Explain the value of visual interactive simulation (VIS).
Chapter 5 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.
2) Data mining is a prime candidate for better management of companies that are
data-rich, but knowledge-poor.
3) Business analytics cannot be conducted in real time because it includes components
such as metrics and reengineering tools.
Diff: 1

Page Ref: 195

4) 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.
Diff: 2

Page Ref: 196

5) The data mining environment is usually a client-server architecture or a Web-based

information systems architecture.
Diff: 2

Page Ref: 196

6) Data mining offers organizations a decision-enhancing environment to exploit

opportunities by transforming data into a strategic weapon.
Diff: 1

Page Ref: 197

7) At the highest level of abstraction, all data can be divided into interval data and
ratio data.
Diff: 2

Page Ref: 197

8) Two types of categorical data are nominal data and ordinal data.
Diff: 2

Page Ref: 197

9) The variable marital status can be categorized using the codes (1) single, (2)
married, and (3) divorced. These codes are examples of ordinal data.

Diff: 2

Page Ref: 198

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

scale.
Diff: 2

Page Ref: 198

11) Mass, length, time, plane angle, energy, and electric charge are examples of
physical measures whose data are represented in interval scales.
Diff: 2

Page Ref: 198

12) 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.
Diff: 2

Page Ref: 198

13) 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.
Diff: 2

Page Ref: 200

14) 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.
Diff: 1

Page Ref: 200

15) Clustering partitions a collection of things, such as objects and events presented in
a structured dataset into segments whose members share similar characteristics.
Diff: 2

Page Ref: 202

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

Page Ref: 207

17) The first step in the data mining process is to understand the relevant data from
the available databases.
Diff: 2

Page Ref: 208

18) 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
Diff: 2

Page Ref: 209

19) In order to be applied successfully, a data mining study must be viewed as a set of
automated software tools and techniques.
Diff: 2

Page Ref: 214

20) Data mining requires a separate, dedicated database.

Diff: 1

Page Ref: 233

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
Diff: 2

Page Ref: 194

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
Diff: 2

Page Ref: 194

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
Diff: 2

Page Ref: 194

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
Diff: 3

Page Ref: 194

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.
Diff: 2

Page Ref: 195

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
Diff: 2

Page Ref: 196

27) 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 large databases, which sometimes
contain data from several years.
D) The miner needs sophisticated programming skill.
Diff: 3

Page Ref: 196

28) A query that can be run by an end users and is not programmed in advance is
considered a(n) ________ query.
A) tailored
B) casual
C) informal
D) ad hoc
Diff: 1

Page Ref: 196

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
Diff: 2

Page Ref: 197

30) Data that has a meaningful, or nonarbitrary, zero point is ________ data.
A) categorical
B) nominal
C) interval
D) ratio
Diff: 2

Page Ref: 198

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
Diff: 2

Page Ref: 198

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
Diff: 1

Page Ref: 200

33) Predictive analysis uses sophisticated algorithms that can be designed to sift
through data and identify ________.
A) patterns of behavior
B) outlier
C) average statistics
D) minimum and maximum statistics
Diff: 2

Page Ref: 200

34) ________, 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
Diff: 2

Page Ref: 201

35) ________ 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
Diff: 3

Page Ref: 202

36) ________ 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
Diff: 2

Page Ref: 204

37) 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
Diff: 2

Page Ref: 207

38) 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.
Diff: 3

Page Ref: 208

39) 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
Diff: 2

Page Ref: 217

40) 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
Diff: 3

Page Ref: 226

41) ________ means that discovered patterns in a dataset hold true on new data with a
sufficient degree of certainty.
42) Mass, length, time, energy, and electric charge are examples of ________ data
because their scales have a nonarbitrary zero value.
43) ________ data contains codes assigned to objects or events as labels that also
represent the rank order among them; for example, credit score.

44) ________ data contains measurements of simple codes assigned to objects as

labels, such as marital status, but those labels are not measurements.
45) ________ data represent the labels of multiple classes used to divide a variable
into specific groups.
46) Using existing and relevant data, data mining builds models to identify ________
among the attributes presented in the dataset.
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.
48) Generally speaking, data mining tasks can be classified into three main categories:
________, association, and clustering.
49) ________ partitions a collection of things, such as objects and events stored in a
dataset, into segments whose members share similar characteristics.
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.
51) ________ data mining begins with a proposition by the user, who then seeks to
validate the truthfulness of the proposition
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.
53) ________ data, also known as categorical data, contains both nominal and ordinal
data.
54) ________ data can be readily represented by some sort of probability distribution.
55) The model's ability to make reasonably accurate predictions, given noisy data or
data with missing and erroneous values, is called ________.
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.
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.
58) ________ measures the extent of uncertainty or randomness in a dataset.
59) The most commonly used measure to calculate the closeness between pairs of
items in cluster analysis is the ________.

60) The ________ algorithm is the most commonly used algorithm to discover
association rules.

61) List three of the major characteristics and objectives of data mining.
62) Sketch a simple taxonomy of data in data mining.
63) Identify and describe the two types of categorical data. Give an example of each.
64) Identify and describe the two types of numerical data. Give an example of each.

65) List and briefly describe three of the major types of patterns that data mining
attempts to identify.
66) List the six steps in the CRISP-DM Data Mining Process.
67) List the four data preprocessing steps.
68) List and briefly explain four of the factors to be considered when assessing a
model to be used for classification.

69) Explain the simple split methodology for classification. Explain the advantages of
the k-fold cross-validation methodology over the simple split methodology.
70) List five of the data mining mistakes often made in practice.
Chapter 6 Artificial Neural Networks for Data Mining
1) Neural network models are designed as exact replicas of how the human brain
actually functions.
Diff: 1

Page Ref: 245

2) Neural networks have been used in finance, marketing, manufacturing, operations,

and information systems and in many business applications for pattern recognition,
forecasting, prediction, and classification.
Diff: 2

Page Ref: 245

3) The information processing in neural networks makes it attractive for solving

complex problems.
Diff: 1

Page Ref: 245

4) The human brain is composed of special cells called neurons. Neural networks are
composed of interconnected processing elements called artificial neurons.
Diff: 1

Page Ref: 245

5) Typically, the input-output transformation process at the individual neuron level is

performed in a linear fashion.
Diff: 2

Page Ref: 248

6) Minotaur was implemented to prevent fraud. In the first 3 months following

installation of Minotaur, the average fraud loss per case was reduced by 40 percent.
Diff: 2

Page Ref: 248

7) The processing elements (PE) of an ANN are artificial neurons, which receive
inputs, process them, and deliver outputs.
Diff: 1

Page Ref: 249

8) Each ANN is composed of a collection of neurons that are grouped into three types
of layers: input, intermediate (or hidden), and output.
Diff: 1

Page Ref: 249

9) Parallel processing resembles the way the brain and conventional computing
works.

Diff: 2

Page Ref: 249

10) In network information processing, each input corresponds to one or two

attributes.
Diff: 2

Page Ref: 249

11) Several types of data, such as text, pictures, and voice, can be used as inputs in
network information processing.
Diff: 1

Page Ref: 249

12) The output of a network contains the solution to a problem.

Diff: 1

Page Ref: 250

13) Weights are crucial in network information processing because they store learned
patterns of information; and it is through repeated adjustments of these weights that a
network learns.
Diff: 2

Page Ref: 250

14) A threshold value is a hurdle value for the output of a neuron to trigger the next
level of neurons. If an output value is larger than the threshold value, it will not be
passed to the next level of neurons.
Diff: 3

Page Ref: 251

15) Supervised learning uses a set of inputs for which the desired outputs are known.
For example, a dataset of loan applications with the success or failure of borrowers to
repay their loans has a set of input parameters and known outputs.
Diff: 2

Page Ref: 254

16) In neural network, larger data sets increase processing time during training but
improve the accuracy of the training and often lead to faster convergence to a good set
of weights.
Diff: 3

Page Ref: 261

17) Training of artificial neural networks is an iterative process and the iteration
continues until the error sum is converged to below a preset acceptable level.
Diff: 1

Page Ref: 261

18) Implementation of an ANN often requires interfaces with other computer-based

information systems and user training.
Diff: 1

Page Ref: 264

19) A general Hopfield network is a single large layer of neurons with total
interconnectivity.
Diff: 2

Page Ref: 272

20) In general, ANN are suitable for problems whose inputs are both categorical and
numeric, and where the relationships between inputs and outputs are linear or the
input data are normally distributed.
Diff: 2

Page Ref: 276

21) Which of the following is the reason why neural networks have been applied in
business classification problems?
A) Able to learn the data
B) Able to learn the models' nonparametric nature
C) Its ability to generalize
D) All of the above
Diff: 2

Page Ref: 245

22) An artificial neural network is composed of many interconnected ________.

A) artificial units
B) artificial cells
C) artificial neurons
D) artificial atoms
Diff: 1

Page Ref: 245

23) Which of the following is a trait of an artificial neural network?

A) Fault tolerance
B) Duplicate cell
C) Self-repaired
D) Memory less
Diff: 2

Page Ref: 245

24) Pioneers McCulloch and Pitts built their neural network model using a large
number of interconnected ________ artificial neurons.
A) dual
B) binary
C) singular
D) serial
Diff: 1

Page Ref: 245

25) There are about 50 to 150 billion neurons in the human brain and these neurons
are partitioned into groups called ________.
A) teams
B) sects
C) groups
D) networks
Diff: 2

Page Ref: 246

26) ANN can also be used as simple biological models to test ________ about
biological neuronal information processing.
A) hypotheses
B) assumptions
C) theory
D) proposition
Diff: 3

Page Ref: 247

27) ________ is the most commonly used network paradigm.

A) Parallel processing
B) Processing element
C) Minotaur
D) Backpropagation
Diff: 2

Page Ref: 248

28) The way that information is processed by the neural network is a function of its
________.
A) composition
B) formation
C) structure
D) makeup
Diff: 2

Page Ref: 249

29) The output of neurons can be the final result or it can be ________ to other
neurons.
A) sources
B) contributions
C) keys
D) inputs
Diff: 1

Page Ref: 249

30) In single, hidden-layer structured neural network, this hidden layer converts
inputs into a ________ combination.
A) continuous
B) linear
C) nonlinear
D) nonstop
Diff: 3

Page Ref: 249

31) The ways neurons are organized are referred to as ________.

A) topologies
B) contour
C) formation
D) configuration
Diff: 2

Page Ref: 249

32) The connection weights express the ________ of the input data.
A) significance
B) value
C) mathematical value
D) worth
Diff: 2

Page Ref: 250

33) The summation function computes the ________ sums of all the input elements
entering each processing element.
A) weighted
B) averaged
C) total
D) aggregated
Diff: 2

Page Ref: 250

34) Sigmoid function is an S-shaped transfer function in the range of 0 to 1 and is also
a useful ________ transfer function.
A) integer
B) binary
C) linear
D) nonlinear
Diff: 3

Page Ref: 251

35) Learning algorithms specify the ________ by which a neural network learns the
underlying relationship between input and outputs.
A) process
B) method
C) route
D) direction
Diff: 2

Page Ref: 252

36) The backpropagation learning algorithm is an iterative ________ technique

designed to minimize an error function between the actual output of the network and
its desired output, as specified in the training set of data.
A) differential equation
B) binary search
C) gradient-descent
D) exact search
Diff: 2

Page Ref: 255

37) Most implementations of the learning process in neural network include a

counterbalancing parameter called ________ to provide a balance to the learning rate.
A) power
B) energy
C) force
D) momentum
Diff: 2

Page Ref: 257

38) Which of the following is not a consideration in selecting a neural network

structure?
A) Selection of a topology
B) Determination of input nodes
C) Determination of output nodes
D) Determination of weighting functions
Diff: 2

Page Ref: 261

39) Which of the following procedure is used to break datasets into different pairs of
training and testing sets?
A) resampling
B) sampling
C) trial and error
D) random
Diff: 2

Page Ref: 267

40) Because of their ability to capture and represent highly complex relationships, a
new and prosperous area of application for neural networks is in the field of
________.
A) health care and medicine
B) transportation and distribution
C) security
D) financial planning
Diff: 2

Page Ref: 275

41) A(n) ________ network represents a brain metaphor of information processing.

42) ________ refers to a pattern recognition methodology for machine learning.
43) Each biological neuron possesses axons and ________, finger-like projections
that enable the neuron to communicate with its neighboring neurons by transmitting
and receiving electrical and chemical signals.
44) ANN stands for ________.
45) The early neural network model is called ________.
46) ________ is the central processing portion of the biological neuron.
47) A ________ is able to increase or decrease the strength of the connection from
neuron to neuron.
48) There are several neural network paradigms, and one of the easiest ways to
differentiate between the various models is on the basis of how these models
structurally ________ the human brain.

49) One popular approach, known as the feedforward-backpropagation paradigm, in

organizing neurons, does not allow any ________ linkage.
50) A neural network is composed of processing elements organized in different ways
to form the network's ________.
51) The artificial neurons receive the information from external input stimuli, perform
a ________ on the inputs, and then pass on external outputs.
52) In a neural network, the knowledge is stored in the ________ associated with each
connection between two neurons.
53) A ________ is a layer of neurons that takes input from the previous layer and
converts those inputs into outputs for further processing.
54) When information is processed, many of the processing elements of neural
network perform their computations at the same time, which is called ________
processing.
55) The purpose of the neural network is to compute the ________ of the output.
56) In neural network, it is through repeated adjustments of ________ that the
network learns.
57) ________ value is a hurdle value for the output of a neuron to trigger the next
level of neurons.
58) The ________ is the training procedure used by an artificial neural network.
59) In ________, the network is self-organizing; that is, it organizes itself internally
so that each hidden processing element responds strategically to a different set of
input stimuli.
60) ________ testing is used to comparing test results to historical results.
61) List the relationships between biological and artificial networks.
62) Sketch or describe the typical structure of an ANN.
63) Describe the five major concepts / components of neural network information
processing.
64) Explain threshold value and its role in the network.

65) Explain supervised and unsupervised learning modes of neural networks.

66) List the usual process of general learning in neural network.
67) Describe or sketch the supervised learning process of an ANN
68) Briefly describe backpropagation.
69) List the procedures of the learning algorithm.
70) List the development process for an ANN application.
Chapter 7 Text and Web Mining
1) DARPA and MITRE teamed up to develop capabilities to automatically filter textbased information sources to generate actionable information in a timely manner.
Diff: 2

Page Ref: 288

2) A vast majority of all business data are captured and stored in structured text
documents.
Diff: 2

Page Ref: 289

3) Text mining is important to competitive advantage because knowledge is power,

and knowledge is derived from text data sources.
Diff: 2

Page Ref: 289

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.
Diff: 3

Page Ref: 289

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.
Diff: 2

Page Ref: 289

6) Unstructured data has a predetermined format. It is usually organized into records

as categorical, ordinal, and continuous variables and stored in databases.
Diff: 3

Page Ref: 290

7) Stemming is the process of reducing inflected words to their base or root form.
Diff: 1

Page Ref: 290

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.
Diff: 2

Page Ref: 290

9) The goal of natural language processing (NLP) is syntax-driven text manipulation.

Diff: 2

Page Ref: 292

10) Two advantages associated with the implementation of NLP are word sense
disambiguation and syntactic ambiguity.
Diff: 2

Page Ref: 293

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.
Diff: 2

Page Ref: 293

12) Text mining can be used to increase cross-selling and up-selling by analyzing the
unstructured data generated by call centers.
Diff: 1

Page Ref: 296

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.
Diff: 2

Page Ref: 297

14) The corpus for the text mining process consists of organized ACII text files and
structured data.
Diff: 2

Page Ref: 303

15) The main categories of knowledge extraction methods are recall, search, and
signaling.
Diff: 2

Page Ref: 307

16) Web pages consisting of unstructured textual data coded in HTML or XML,
hyperlink information, and logs of visitors' interactions provide rich data for effective
and efficient knowledge discovery:
Diff: 3

Page Ref: 313

17) Web crawlers are Web content mining tools that are used to read through the
content of a Web site automatically.
Diff: 1

Page Ref: 314

18) Amazon.com leverages Web usage history usage dynamically and recognizes the
user by reading a cookie written by a Web site on the visitor's computer.
Diff: 1

Page Ref: 317

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.
Diff: 2

Page Ref: 318

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.
Diff: 3

Page Ref: 320

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
Diff: 1

Page Ref: 289

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
Diff: 2

Page Ref: 289

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
Diff: 2

Page Ref: 289

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.
Diff: 3

Page Ref: 290

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
Diff: 2

Page Ref: 290

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
Diff: 2

Page Ref: 291

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
Diff: 2

Page Ref: 292

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.
Diff: 3

Page Ref: 293

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.
Diff: 2

Page Ref: 304

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
Diff: 2

Page Ref: 307

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;
Diff: 2

Page Ref: 307

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
Diff: 2

Page Ref: 312

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.
Diff: 2

Page Ref: 313

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.
Diff: 3

Page Ref: 313

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
Diff: 2

Page Ref: 314

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
Diff: 2

Page Ref: 315

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
Diff: 2

Page Ref: 315

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
Diff: 2

Page Ref: 316

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
Diff: 1

Page Ref: 317

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.
Diff: 3

Page Ref: 319

41) ________ is the semi-automated process of extracting patterns from large

amounts of unstructured data sources.
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.
43) ________ is the grouping of similar documents without having a predefined set of
categories.
44) In linguistics, a(n) ________ is a large and structured set of texts prepared for the
purpose of conducting knowledge discovery.
45) ________ is the process of reducing inflected words to their base or root form.
46) ________ words or noise words are words that are filtered out prior to or after
processing of natural language data.
47) The term "stop-words" are used by text mining to ________ commonly used
words.

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.
49) ________ 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.
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.
51) In the text mining process, the output of task two is a flat file called a ________
where the cells are populated with the term frequencies.
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.
53) ________ is the discovery and analysis of interesting and useful information from
the Web, about the Web, and usually though Web-based tools.
54) A(n) ________ is one or more Web pages that provide a collection of links to
authoritative pages.
55) ________ mining is the process of extracting useful information from the links
embedded in Web documents.
56) ________ mining is the extraction of useful information from data generated
through Web page visits and transactions.
57) Analysis of the information collected by Web servers can help better understand
user behavior. Analysis of this data is called ________ analysis.
58) ________ 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.
59) Web analytics, CEM, and VOC applications form the foundation of the Web site
________ ecosystem that supports the online business's ability to positively influence
desired outcomes
60) 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
61) Compare and contrast text mining and data mining.
62) Why will computers probably not be able to understand natural language the same
way and with the same accuracy that humans do?

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.
64) Describe a marketing application of text mining.
65) What is the primary purpose of text mining within the context of knowledge
discovery?

66) Diagram and explain the three-step text mining process.

67) List two options for managing or reducing the dimensionality (size) of the termdocument matrix (TDM).
68) What are three of the challenges for effective and efficient knowledge discovery
posed by the Web?
69) Define the three main areas of Web mining and each area's source of information.
70) List three business applications of Web mining.
Chapter 8 Data Warehousing
1) A real-time data warehouse together with a decision support strategy that leverages
the integrated data can provide significant financial benefits for an organization.
Diff: 1

Page Ref: 329

2) 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.
Diff: 1

Page Ref: 329

3) A data warehouse maintains historical data that do not necessarily provide current
status, except in real-time systems.
Diff: 2

Page Ref: 329

4) Once the data are entered into the data warehouse, users cannot change or update
the data.
Diff: 2

Page Ref: 329

5) There are three main types of data warehouses, which are data marts, operational
data stores, and enterprise data warehouses.
Diff: 2

Page Ref: 330

6) An independent data mart is a small warehouse designed for a strategic business

unit (SBU) or a department whose source is an EDW.
Diff: 2

Page Ref: 330

7) Operational data store is used for the medium- and long-term decisions associated
with the enterprise data warehouse (EDW).
Diff: 3

Page Ref: 330

8) An operational data store (ODS) provides a fairly recent form of a customer

information file (CIF), which is often used as an interim staging area for a data
warehouse.
Diff: 2

Page Ref: 330

9) The design, creation, and use of metadata and its accompanying standards may
involve ethical issues, including privacy and intellectual property issues.
Diff: 1

Page Ref: 333

10) There are five levels of metadata management maturity that can be used to
describe where an organization is in terms of how and how well it utilizes its
metadata.
Diff: 2

Page Ref: 333

11) Data warehouses contain vast amounts of internal data but are limited because
they do not contain external data.
Diff: 2

Page Ref: 334

12) There are many middleware tools that business users can use to access data stored
in the data repositories, including data mining, reporting tools, and data visualization.
Diff: 1

Page Ref: 334

13) 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.
Diff: 2

Page Ref: 335

14) An advantage of the hub-and-spoke data warehouse architecture is that they are
easy to build.
Diff: 3

Page Ref: 338

15) The centralized data warehouse helps to simplify data management and
administration.
Diff: 2

Page Ref: 339

16) Because of performance and data quality issues, most experts agree that federated
approaches work well to replace data warehouses.
Diff: 1

Page Ref: 339

17) According to conventional wisdom, independent data marts are a poor

architectural solution.

Diff: 2

Page Ref: 341

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.
Diff: 2

Page Ref: 344

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, in-house development, and in-house support and maintenance.
Diff: 2

Page Ref: 352

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.
Diff: 3

Page Ref: 358

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.
Diff: 2

Page Ref: 327

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
Diff: 2

Page Ref: 329

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
Diff: 2

Page Ref: 329

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
Diff: 2

Page Ref: 330

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
Diff: 2

Page Ref: 330

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
Diff: 2

Page Ref: 330

27) 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
Diff: 2

Page Ref: 334

28) Which of the following is not a data source to a data warehouse?

A) ERP
B) legacy
C) POS
D) ETL
Diff: 2

Page Ref: 334

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
Diff: 1

Page Ref: 335

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
Diff: 2

Page Ref: 338

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
Diff: 1

Page Ref: 342

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)
Diff: 2

Page Ref: 344

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
Diff: 2

Page Ref: 345

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
Diff: 3

Page Ref: 346

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
Diff: 2

Page Ref: 346

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
Diff: 2

Page Ref: 348

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

tables.
A) database
B) fact table
C) data tree
D) data table
Diff: 2

Page Ref: 351

38) Which of the following is not one of the failure factors in data warehousing as
identified by Turban et al.?
A) Cultural issues are ignored.
B) inappropriate architecture
C) unrealistic expectations
D) high levels of data summarization
Diff: 3

Page Ref: 355

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
Diff: 2

Page Ref: 356

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
Diff: 2

Page Ref: 357

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.
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.
43) An ________ is a large-scale data warehouse that is utilized across the enterprise
for decision support.
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.
45) ________ is a small data warehouse designed for a strategic business unit
(SBU)or a department.

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.
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.
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.
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.
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.
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.
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.
53) The data warehouse design is based upon the concept of ________ modeling,
which is a retrieval-based model that supports high-volume query access.

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.
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.
56) It is important to identify the right level of ________ that will be needed during
the scoping of a data warehouse project. A low level of that will result in more data
being stored in the warehouse.
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.
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.
59) ________ is the process of loading and provides data via the data warehouse as
they become available.
60) ________ is the person responsible for the administration and management of a
data warehouse.

61) List four characteristics of a data warehouse.

62) Describe the data warehousing process.
63) What are the issues to consider when deciding which architecture for data
warehousing to use?
64) Describe two of the alternative architectures to the basic architectural design types
in data warehousing.

65) List 5 factors that potentially affect the architecture selection decision.
66) Describe various integration technologies that enable data and metadata
integration.
67) Describe various issues that affect whether an organization will purchase data
transformation tools or build the transformation process itself.
68) Describe a star schema.

69) List five benefits of a hosted data warehouse.

70) Identify at least five data warehouse best practices.
Chapter 9 Business Performance Management
1) Business performance management (BPM) is an outgrowth of decision support
systems (DSS), enterprise information systems (EIS), and business intelligence (BI).
Diff: 1

Page Ref: 374

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.
Diff: 1

Page Ref: 378

3) During the strategic planning process, the time horizon is determined by the
company's market share; rate of technological innovation; and capital intensity of the
industry.
Diff: 2

Page Ref: 380

4) For a low-cost provider such as Wal-Mart, distribution capabilities are a critical

success factor.
Diff: 1

Page Ref: 380

5) The Palladium Group found that 75 percent of organizations tied their budgets to
their strategic plans.
Diff: 1

Page Ref: 382

6) 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.
Diff: 1

Page Ref: 382

7) In a budget-centric operational plan, tactics are established to meet the objectives

and targets established in the strategic plan.
Diff: 1

Page Ref: 382

8) An organization's strategic objectives and key metrics should serve as top-down

drivers for the allocation of an organization's tangible and intangible assets.
Diff: 2

Page Ref: 383

9) A comprehensive framework for monitoring performance should address two key

issues: what to monitor and how to monitor.
Diff: 2

Page Ref: 383

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.
Diff: 2

Page Ref: 389

11) An effective performance measurement system should not change measurements

even when the underlying processes and strategies change.
Diff: 1

Page Ref: 395

12) Both balanced Scorecards and Six Sigma are performance management tools and
methodologies.
Diff: 1

Page Ref: 395

13) 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.
Diff: 2

Page Ref: 399

14) Unlike BPM, DMAIC is an open-loop business improvement model that

encompasses the steps of defining, measuring, analyzing, improving, and controlling a
process.
Diff: 2

Page Ref: 399

15) 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.
Diff: 2

Page Ref: 400

16) Six Sigma is drastically different from other business initiatives.

Diff: 1

Page Ref: 401

17) To dramatically increase the success of Six Sigma, the Six Sigma results should
"pay as you go" and be confirmed by objective parties.
Diff: 2

Page Ref: 402

18) Operational dashboards are used by managers and analysts to track, on weekly
basis, raw data generated from departmental processes and projects.
Diff: 2

Page Ref: 409

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.
Diff: 1

Page Ref: 409

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.
Diff: 2

Page Ref: 410

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.
Diff: 2

Page Ref: 375

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
Diff: 3

Page Ref: 378

23) 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
Diff: 2

Page Ref: 378

24) BPM helps organizations translate a unified set of objectives into plans, monitor
execution, and deliver critical insight to improve financial and ________
performance.
A) strategic
B) tactical
C) operational
D) daily
Diff: 1

Page Ref: 380

25) Which of the following identifies and prioritizes the key customer, market,
competitor, government, demographic, or actually impacting the company?
A) SWOT
B) SWAT
C) ROA
D) CSF
Diff: 1

Page Ref: 380

26) 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
Diff: 1

Page Ref: 381

27) 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
Diff: 1

Page Ref: 382

28) 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
Diff: 1

Page Ref: 382

29) 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
Diff: 1

Page Ref: 383

30) Which of the following is not a part of a cybernetic system?

A) Inputs
B) Standard
C) Feedback channel
D) Diagnostic mechanism
Diff: 3

Page Ref: 384

31) An effective diagnostic control system encourages ________.

A) management by exception
B) strict rules
C) democratic rules
D) elite rules
Diff: 2

Page Ref: 384

32) 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
Diff: 2

Page Ref: 388

33) 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.
Diff: 2

Page Ref: 389

34) 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.
Diff: 2

Page Ref: 395

35) 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
Diff: 1

Page Ref: 395

36) 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
Diff: 1

Page Ref: 396

37) A ________ delineates the process of value creation through a series of causeand-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
Diff: 2

Page Ref: 397

38) Sigma, , is a Greek alphabet letter used by statisticians to measure the ________
in a process.
A) variance
B) mean
C) inconsistency
D) variability
Diff: 2

Page Ref: 399

39) 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.
Diff: 3

Page Ref: 399

40) 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
Diff: 2

Page Ref: 404

41) ________ is a framework for organizing, automating, and analyzing business

methodologies, metrics, processes, and systems to drive the overall performance of
the enterprise.
42) ________ outline those things that an organization must excel at to be successful
in their market space.
43) A(n) ________ is a standard strengths, weaknesses, opportunities, and threats
(SWOT) assessment of the company.
44) ________ is used to identify and prioritize the internal strengths and weaknesses
in an organization's processes, structures, and its technologies and applications.
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
46) In a ________ plan, tactics are established to meet the objectives and targets
established in the strategic plan.
47) Most companies use ________ to monitor organizational performance and correct
deviations from present performance standards.
48) KPIs stand for ________, which are strategically aligned metrics.
49) Targets are measured against a baseline or ________.
50) A ________ delineates the relationships among the key organizational objectives

for all BSC perspectives.

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.
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.
53) DMAIC is a ________ business improvement model.
54) To achieve a Six Sigma level of performance, the company would have to reduce
the number of defects to no more than ________ DPMO.
55) Six Sigma and Lean Production both deal with ________.

56) ________ focuses on the elimination of waste or non-valueadded activities.

57) ________ focuses on reducing the variation or improving the consistency of a
process.
58) In recent years, there has been a focus on combining the Six Sigma methodology
with the ________.
59) ________ refers to both the logical and physical design of a system.
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.
61) What are the three key components of business performance management (BPM)?
62) Describe or sketch the BPM cycle.

63) Describe the common tasks in strategic planning process.

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?
65) Describe the conditions under which an information system can be used as
diagnostic control system.
66) Describe the series of three steps in the discovery-driven planning (DDP).
67) Explain three of the drawbacks or limitations of using financial data as the core of
a performance measurement system.
68) List the basic ingredients of good performance measures.

69) Describe the steps in DMAIC performance model.

70) What are the characteristics of well-designed dashboards and scorecards?
Chapter 10 Collaborative Computer-Supported Technologies and
Group Support Systems
1) Most of the complex decisions in organizations are made by groups whose
members work together in the same location and at the same time.
Diff: 1

Page Ref: 420

2) One of the greatest benefits of using computer-supported collaboration tools is

anonymity when there is tension or sensitive topics within groups.
Diff: 2

Page Ref: 422

3) One of the characteristics of groupwork is that a group can be at one managerial

level or can span across several levels.
Diff: 1

Page Ref: 423

4) There is never a tendency for poor quality compromised solutions in groupwork.

Diff: 1

Page Ref: 425

5) A group may produce synergy during problem solving, which means that the time
to reach a high quality decision is greater for group decision making than for
independent individuals.
Diff: 2

Page Ref: 425

6) Nominal group technique (NGT) uses questionnaires for technological forecasting

and for forecasting of sensitive issues.
Diff: 2

Page Ref: 426

7) A large part of our communication is conveyed via nonverbal cues.

Diff: 1

Page Ref: 430

8) The advancement of Web-based systems such as webex.com and gotomeetings.com

opens the door for improved electronically supported virtual meetings.
Diff: 1

Page Ref: 430

9) Groupware products are either stand-alone products that support only one task,
such as videoconferencing, or are integrated kits consisting of several tools.

Diff: 1

Page Ref: 431

10) Instant messaging, audio conferencing, and polling are asynchronous groupware
tools.
Diff: 1

Page Ref: 432

11) Collaborators can work together on the same document, spreadsheet, or graphics
using the screen sharing software.
Diff: 1

Page Ref: 435

12) Intraspect from Vignette Corp. allows employees to create Web sites, invite coworkers to join discussions and post documents.
Diff: 1

Page Ref: 436

13) The Windows Meeting Space client is included in the Windows operating system.
Diff: 1

Page Ref: 437

14) WebEx delivers active and interactive presentations, allows real-time

collaboration, enhances demonstration of products and services, and assists in
document management.
Diff: 2

Page Ref: 438

15) Successful enterprise-wide collaboration systems such as Lotus Notes/Domino

can be
inexpensive to develop and operate because no support staff is required.
Diff: 2

Page Ref: 440

16) A major characteristic of GDSSs is that they contain built-in mechanisms that
discourage development of negative group behaviors, such as destructive conflict
miscommunication and groupthink.
Diff: 2

Page Ref: 441

17) Voice over IP (VoIP) are communication systems that transmit voice calls over
circuit-based networks.
Diff: 1

Page Ref: 453

18) In contrast with commercial portals such as Yahoo! and MSN, which are gateways
to general information on the Internet, corporate portals provide a single point of
access to information and applications available on the Internet, intranets, and
extranets of a specific organization.
Diff: 2

Page Ref: 456

19) The idea of CPFR is achieve fewer out-of-stock situations and resultant lost sales
by increasing inventory levels in the supply chain.
Diff: 2

Page Ref: 457

20) Personality-related creativity traits include inventiveness, independence,

individuality, enthusiasm, and flexibility, and these traits have been assessed through
the widely used Torrance Tests of Creative Thinking.
Diff: 2

Page Ref: 462

21) Which of the following activities and processes is not a characteristic of

meetings?
A) Differences in opinions are settled by the ranking person present and not through
negotiation or arbitration.
B) A meeting is a joint activity engaged in by a group of people typically of equal or
nearly equal status.
C) The outcome of a meeting depends partly on the knowledge, opinions, and
judgments of its participants and the support they give to the outcome.
D) The process of group decision making can create benefits as well as dysfunctions.
Diff: 2

Page Ref: 424

22) Which of the following refers to a group process wherein people begin thinking
alike and not being tolerant of new ideas?
A) Group brainwash
B) Group politics
C) Group gain
D) Groupthink
Diff: 1

Page Ref: 425

23) Managers spend about ________ percent of their time in formal meetings of five
people or more; and up to ________ percent of their time communicating.
A) 10; 50
B) 20; 85
C) 50; 25
D) 50; 50
Diff: 2

Page Ref: 425

24) Which of the following is a simple brainstorming process for nonelectronic

meetings?
A) NGT
B) NBT
C) NAT
D) NCT
Diff: 1

Page Ref: 426

25) Communication occurs when the receiver gets the information at a different time
than it was sent is called ________ communication.
A) deferred
B) delayed
C) time lagging
D) asynchronous
Diff: 1

Page Ref: 429

26) With ________, group members can work on the same document which is shown
on the PC screen of each participant.
A) data conferencing
B) whiteboards
C) instant messaging
D) screen sharing
Diff: 1

Page Ref: 435

27) The spread of instant messaging and Internet telephony has led to the idea of
linking people via both voice and audio, which is called ________.
A) audio-video conference
B) instant audio
C) instant video
D) conference
Diff: 1

Page Ref: 435

28) Lotus Notes provides online ________ capabilities through Web conferencing on
demand.
A) collaboration
B) cooperation
C) partnership
D) teamwork
Diff: 1

Page Ref: 437

29) Groove Workspace, used with Groove enterprise servers and ________, enables
spontaneous, online-offline collaboration that reduces project costs and speeds timeto-market for products and services.
A) blackboards services
B) whiteboards services
C) server services
D) hosted services
Diff: 1

Page Ref: 437

30) The collaborative experience in Live Meeting is enhanced through added features
like ________.
A) mood indicators
B) opinion sharing
C) user participation
D) instant messaging
Diff: 2

Page Ref: 439

31) GDSS supports group decision making by providing the automation of ________
using information technology tools.
A) participations
B) tasks
C) processes
D) subprocesses
Diff: 2

Page Ref: 441

32) Which of the following is not an option for deploying GDSS/GSS technology?
A) Multiple users functions
B) Decision room
C) Multiple-use facility
D) Internet based or intranet-based groupware
Diff: 2

Page Ref: 445

33) The term, wiki, refers to the collaborative software that facilitates the operation of
a wiki Web site;.and means ________ in the Hawaiian language.
A) slow
B) quick
C) integration
D) collaboration
Diff: 1

Page Ref: 455

34) A wikilogs is an extension of a(n) ________, which is created by an individual or

a small group and may have a discussion board.
A) im
B) wiki
C) log
D) blog
Diff: 1

Page Ref: 455

35) Which of the following is used for the members of a supply chain to help improve
effectiveness between manufacturing companies?
A) Supply chain hub
B) Collaboration hub
C) Member hub
D) Supplier hub
Diff: 2

Page Ref: 455

36) Which of the following is a gateway to a corporate Web site that enables
communication, collaboration, and access to company information?
A) Corporate port
B) Web portal
C) Corporate gateway
D) Enterprise portal
Diff: 1

Page Ref: 456

37) CPFR is an industry-wide project in which suppliers and retailers collaborate in

________ and demand forecasting.
A) planning
B) scheduling
C) purchasing
D) transportation
Diff: 2

Page Ref: 456

38) Retailers make their suppliers responsible for determining when to order and how
much to order by adopting ________.
A) VMM
B) SMM
C) SMI
D) VMI
Diff: 2

Page Ref: 458

39) In order for collective intelligence (CI) to happen, four features are needed. Which
of the following is not one of those features?
A) acting locally
B) openness
C) peering
D) sharing
Diff: 2

Page Ref: 460

40) Which of the following is a key feature of idea-generating GDSS software?

A) The software does all of the thinking.
B) Bombarding the user with many ideas.
C) Information overload.
D) All of the above.
Diff: 2

Page Ref: 463

41) ________ is a team whose members are in different places while in a meeting.
42) ________ are methods used to increase some of the benefits of meetings and
eliminate or reduce some of the losses.
43) ________ that is a qualitative forecasting methodology using anonymous
questionnaires.
44) ________ are computerized tools have been developed to provide group support.
45) ________ tools support synchronous communication of graphical and text-based
information. These tools are also being used in distance learning, virtual classroom,
personnel training, product demonstrations, customer support, e-commerce, and sales
applications.
46) In collaborative work, team members are frequently in different locations. By
using ________ software, group members can work on the same document, which is
shown on the PC screen of each participant.
47) ________, associated with asynchronous mode, allows users to collaborate on
projects but work at different times.
48) The advancement of Web-based systems allows ________ where members are in
different locations and even in different countries.
49) ________ is the use of electronic communication that allows two or more people
at different locations to have a simultaneous conference.
50) The Groove Outliner tool is an open-ended ________ tool that allows shared
space members to build structured hierarchical lists of videos and concepts.
51) WebEx Meeting Center integrates data, voice, and video within a standard
________ for real-time meetings over the Internet from any desktop, laptop, or
wireless handheld device.
52) A ________ is an interactive computer-based system that facilitates the solution of
semistructured and unstructured problems by a group of decision makers.
53) An ________ is a form of GSS that supports anytime/anyplace meetings.
54) A ________ is any combination of hardware and software that enhances
groupwork support in decision making, directly or in indirectly.

55) ________ refers to the ability of participants in a group to work simultaneously on

a task.
56) ________ is the first major step in the GSS process. This exploratory step looks
at the problem and attempts to develop creative ideas about its important features or
alternative solutions in a problem-solving session.
57) The success of a GSS depends mostly on its ________.
58) ________ refers to communication systems that transmit voice calls over Internet
Protocolbased networks.
59) A ________ is a piece of server software available in a Web site that allows users
to freely create and edit Web page content.
60) ________ is an industry-wide project in which suppliers and retailers collaborate
in planning and demand forecasting in order to ensure that members of the supply
chain will have the right amount of raw materials and finished goods when they need
them.
61) Describe the benefits of working in groups.
62) Describe the four cells frameworks of time and space in communications.

63) List and describe the three categories in Groupware products.

64) Describe the major characteristics of a GDSS.

65) List the activities supported by GDSS.
66) Describe the major steps in a standard GSS.

67) Describe the steps that managers must do in creating a work environment that
supports collaboration.
68) List the benefits of VoIP for business users.
69) List the benefits of VoIP for individual users.
70) Describe the steps in the process model for implementing a CPFR project.
Chapter 11 Knowledge Management
1) The goal of knowledge management is to identify, capture, store, maintain, and
deliver useful knowledge in a meaningful form to anyone who needs it, anyplace and
anytime, within an organization.
Diff: 2

Page Ref: 471

2) Knowledge management is about building personal repositories of information at

the department and organization levels.
Diff: 2

Page Ref: 471

3) Since knowledge management (KM) first appeared in the mid-1990s, almost all
organizations have invested in KM systems and reaped significant benefits.
Diff: 2

Page Ref: 472

4) MITRE implemented KM systems because its knowledge was not structured in a

way that encouraged knowledge sharing, and the sharing that was done took place in
an unsystematic, informal way.
Diff: 2

Page Ref: 474

5) KM systems are used to leverage a company's intellectual assets, or intellectual

capitalthe valuable knowledge of its employees.
Diff: 1

Page Ref: 474

6) Knowledge is an important asset, but large companies have difficulties sharing it.
Diff: 1

Page Ref: 474

7) Both the idea of knowledge management and the application of information

technology to facilitate the creation, storage, transfer, and application of previously
uncodifiable organizational knowledge is a new and major initiative in organizations.
Diff: 3

Page Ref: 474

8) Knowledge management is the systematic and active managing of ideas,

information, and knowledge that reside in an organization's external environment.

Diff: 1

Page Ref: 474

9) An up-to-the-minute traffic bulletin along the freeway that indicates a traffic

slowdown due to construction several miles ahead is an example of knowledge.
Diff: 1

Page Ref: 475

10) Knowledge has strong experiential and reflective elements that distinguish it from
information in a given context.
Diff: 1

Page Ref: 475

11) Today's knowledge may become tomorrow's ignorance if an organization fails to

update knowledge as environmental conditions change.
Diff: 1

Page Ref: 476

12) Explicit knowledge deals with objective, rational, and technical knowledge.
Diff: 2

Page Ref: 478

13) Tacit knowledge is usually in the domain of subjective, cognitive, and experiential
learning; it is highly personal and difficult to formalize.
Diff: 2

Page Ref: 478

14) The purpose of building a knowledge management system (KMS) is to maintain a

well-informed, productive workforce and to help large organizations provide a
consistent level of customer service.
Diff: 2

Page Ref: 480

15) A learning organization is one that performs these four main activities well:
systematic problem solving, creative experimentation, learning from the best practices
of others, and transferring knowledge quickly and efficiently throughout the
organization.
Diff: 2

Page Ref: 481

16) Organizational learning and memory depend more on technology than on the
people issues.
Diff: 2

Page Ref: 482

17) Use of strong hierarchy, position-based status, and formal power contribute to
people wanting to share knowledge.
Diff: 2

Page Ref: 483

18) In contrast to the process approach, the practice approach to knowledge

management assumes that a great deal of organizational knowledge is tacit in nature
and that formal controls, processes, and technologies are not suitable for transmitting
this type of understanding.
Diff: 1

Page Ref: 488

19) eXtensible Markup Language (XML) enables standardized representations of data

structures so that data can be processed by different systems without additional
programming.
Diff: 1

Page Ref: 497

20) The situation at Mrs. Fields illustrates that while organizations can achieve
significant short-term gains through KMS, they must not neglect the creative process
of new knowledge creation or they may find themselves applying yesterday's
solutions to tomorrow's problems.
Diff: 3

Page Ref: 520

21) What is an organization's valuable knowledge of its employees?

A) Effective and efficient problem solving
B) corporate information
C) intellectual capital
D) active management
Diff: 2

Page Ref: 474

22) Which of the following is true about knowledge management?

A) Successful managers have always been performing knowledge management.
B) KM focuses on identifying and explicating knowledge so that it can be shared in a
formal manner.
C) The benefits are always clear at the start of the effort.
D) All of the above.
Diff: 2

Page Ref: 475

23) Knowledge is:

A) dynamic.
B) contextual.
C) information in action.
D) all of the above.
Diff: 1

Page Ref: 475

24) Which of the following is a characteristic of knowledge?

A) Knowledge is subject to diminishing returns
B) Knowledge branches and fragments
C) It is easy to estimate the impact of investments in knowledge
D) All of the above
Diff: 2

Page Ref: 476

25) Tacit knowledge is:

A) easy to explain.
B) easy to apply.
C) easy to document.
D) none of the above.
Diff: 2

Page Ref: 478

26) Explicit knowledge is:

A) easy to explain.
B) easy to apply.
C) easy to document.
D) easy to explain, document and apply.
Diff: 2

Page Ref: 478

27) Firms adopt knowledge management systems:

A) to help deal with employee turnover.
B) to increase productivity.
C) to improve customer service.
D) all of the above.
Diff: 2

Page Ref: 480

28) Which of the following is not a learning skill?

A) Openness to new perspectives
B) Awareness of personal biases
C) Exposure to unfiltered data
D) A sense of urgency
Diff: 2

Page Ref: 482

29) Organizational learning and memory depend ________ on technology and

________ on people issues.
A) less; more
B) mostly; not
C) first; secondly
D) primarily; less
Diff: 2

Page Ref: 482

30) All of the following describe the practice approach to knowledge management
except:
A) It deals mostly with tacit knowledge.
B) It provides an environment to generate and transfer high-value tacit knowledge.
C) It uses formal controls and procedures with an emphasis on technology to transfer
and disseminate knowledge.
D) It relies on informal social groups.
Diff: 2

Page Ref: 487

31) A knowledge management portal (KMP) consists of each of the following except:
A) knowledge portal
B) corporate culture
C) knowledge repository
D) information data sources
Diff: 1

Page Ref: 492

32) Artificial intelligence (AI) supports knowledge management in each of the

following ways except:
A) By enhancing knowledge searches
B) By helping to determine the relative importance of the knowledge
C) By manipulating current results
D) By identifying patterns in data
Diff: 2

Page Ref: 496

33) Which of the following is true about a chief knowledge officer?

A) A CKO need not have extensive experience in KMS.
B) A CKO should be technically savvy.
C) A CKO does not have to be actually involved in promoting knowledge sharing.
Diff: 2

Page Ref: 504

34) What is the importance of communities of practice (COP)?

A) They consist of chief officers of the organization.
B) They are a supportive culture needed for a KMS to succeed.
C) They provide necessary technology training.
D) All of the above.
Diff: 2

Page Ref: 506

35) Each of the following is a way to encourage vibrant COP (communities of

practice) in an organization except:
A) manage strictly
B) focus on value
C) combine familiarity and excitement
D) invite different levels of participation
Diff: 2

Page Ref: 508

36) Which of the following is not one of the key knowledge performance dimensions
that drives competitive advantage?
A) creating a corporate knowledge-driven culture
B) fostering innovation
C) providing customer service
D) facilitating organizational learning
Diff: 2

Page Ref: 510

37) There are several essential "preconditions" for effective knowledge management
to succeed. Which of the following is a precondition?
A) a knowledge infrastructure consisting of technology, structure, and culture
B) a knowledge process architecture of acquisition, conversion, application, and
protection
C) economies of scale in obtaining information from external providers
D) A and B
Diff: 3

Page Ref: 510

38) Lessons learned from the British Broadcasting Corporation's (BBC) knowledge
management system includes all of the following except:
A) High-tech and large budgets are necessary to attain knowledge management
success.
B) The BBC runs on knowledge.
C) Design the system to match the way the company functions, e.g., as a social
network.
D) Blogs and wikis have helped break down silos and spread knowledge.
Diff: 3

Page Ref: 511

39) ________ are interactive computerized systems that help employees find and
connect with colleagues who have the expertise required for specific problems in
order to solve specific, critical business problems in seconds.
A) Expert location systems
B) Tacit knowledge systems
C) Knowledge sharing systems
D) Social networks
Diff: 2

Page Ref: 512

40) Which of the following factors is not among the most important for KM success?
A) Quantity the expected and realized ROI of the KM before and after deployment.
B) Build the right team for knowledge capture and creation.
C) If the deployment appears to be falling behind schedule, it is better to focus on
finishing it on schedule rather than narrowing the scope of the knowledge base.
D) Maintain a flexible approach to information access to improve user adoption.
Diff: 2

Page Ref: 513

41) ________ is the systematic and active managing of ideas, information, and
knowledge residing in an organization's employees.
42) A learning organization must have an organizational memory and a means to save,
represent, and ________ its organizational knowledge.
43) Knowledge evolves over time with ________, which puts connections among new
situations and events in context.
44) ________ are information technologies that together make knowledge
management available throughout an organization.
45) ________ refers to an organization's capability of learning from its past
experience.
46) The ability of an organization to learn, develop memory, and share knowledge is
dependent on its ________, which is a pattern of shared basic assumptions.
47) The process approach attempts to ________ organizational knowledge through
formalized controls, processes, and technologies.
48) The practice approach to knowledge management assumes that a great deal of
organizational knowledge is ________ in nature.
49) ________ are the activities and methods that the most effective organizations use
to operate and manage various functions.
50) ________ are software systems that learn how users work and provide assistance
in their daily tasks.

51) ________ enables standardized representations of data structures so that data can
be processed appropriately by heterogeneous systems without case-by-case
programming.
52) Collaboration tools, or ________, were the first tools used to enhance tacit
knowledge transfer within an organization.
53) ________ are the doorways into many knowledge management systems. They
have evolved from the concepts underlying EIS, GSS, Web browsers, and DBMS.
54) ________ systems allow users to access needed documents, generally via a Web
browser over a corporate intranet.
55) A(n) ________ is a group of people in an organization with a common
professional interest.

56) ________ are interactive computerized systems that help employees find and
connect with colleagues with expertise required for specific problems.
57) In order to measure the financial impact of knowledge management, experts
recommend focusing knowledge management projects on specific business problems
that can be easily ________.
58) The first step for companies in increasing the probability of success of knowledge
management projects is to access whether there is a ________ need for knowledge
management.
59) Knowledge management requires a major transformation in organizational
________ to create a desire to share knowledge.
60) Nontrivial ________ methods, such as rewards and recognition, to encourage
users to contribute and use knowledge.
61) Define tacit knowledge.
62) Define explicit knowledge.

63) Identify and list reasons why people do not want to share knowledge.
64) Distinguish between a process approach and a practice approach to knowledge
management.

65) Describe the knowledge management system cycle steps.

66) Identify ways in which Artificial Intelligence helps knowledge management.
67) Describe electronic document management.
68) Describe the role of the CKO.

69) What is a community of practice?

70) Describe the Seven Principles for designing successful communities of practice.
Chapter 12 Artificial Intelligence and Expert Systems
1) Using the knowledge of many wine experts, MenuVino was able to develop an
expert system that mimics the advising that a person would receive from a wine guru.
Diff: 1

Page Ref: 531

2) Most technologies used to support decision situations where expertise is required

use qualitative and/or mathematical models to provide the needed support.
Diff: 2

Page Ref: 532

3) Artificial intelligence (AI) has many different definitions and is an area in

management science.
Diff: 1

Page Ref: 532

4) Deep Blue is the first computer that demonstrated its intelligence in an area that
requires human intelligence.
Diff: 1

Page Ref: 533

5) Artificial intelligent systems have the learning capabilities as humans have.

Diff: 1

Page Ref: 535

6) It is easier to duplicate and disseminate natural intelligence than artificial

intelligence.
Diff: 1

Page Ref: 537

7) The basic objective of computer vision is to generate pictures.

Diff: 2

Page Ref: 540

8) The purpose of an intelligent computer-aided instruction (ICAI) is to learn.

Diff: 2

Page Ref: 540

9) Inexact knowledge and imprecise reasoning are important aspects of expertise in

applying commonsense to decision-making situations.
Diff: 2

Page Ref: 541

10) Expertise is often acquired from training, reading, and experience in practice, and
the level of expertise determines the performance of a decision.
Diff: 1

Page Ref: 543

11) Expert systems (ES) must have the ability to examine their own reasoning and
provide proper explanations as to why a particular conclusion was reached.
Diff: 1

Page Ref: 544

12) Expert systems allow knowledge to be transferred more easily at a lower cost.
Diff: 2

Page Ref: 545

13) Acquiring knowledge from experts is often a bottleneck in expert system

construction.
Diff: 2

Page Ref: 551

14) The knowledge base of an expert system and the knowledge base of an
organization are the same.
Diff: 2

Page Ref: 551

15) The blackboard of an expert system is used for recording intermediate hypotheses
and decisions.
Diff: 2

Page Ref: 551

16) The explanation subsystem of an expert system cannot trace responsibility for
conclusions to their sources and cannot explain the expert system behavior
interactively.
Diff: 2

Page Ref: 552

17) Inference rules, or procedural rules, offer advice on how to solve a problem, given
that certain facts are known.
Diff: 2

Page Ref: 557

18) In IF-THEN rules, the IF part indicates the condition for the rule to be activated,
and the THEN part shows the action or the conclusion if all IF conditions are
satisfied.
Diff: 2

Page Ref: 558

19) The first step in developing an ES is to identify the nature of the problem and to
define who is the proper expert responsible for the solving the problem
Diff: 2

Page Ref: 566

20) By implementing ES and other intelligent systems as knowledge servers, it

becomes economically feasible and profitable to publish expertise on the Web.
Diff: 2

Page Ref: 572

21) One does not have to rethink completely what to do every time a similar problem
is encountered, when using ________.
A) symbolic database
B) knowledge base
C) algorithms
D) rules of thumb
Diff: 2

Page Ref: 535

22) Which of the following technology allows computer users the ability to
communicate with a computer in their native language?
A) NAP
B) NLP
C) NBP
D) XML
Diff: 1

Page Ref: 537

23) Which of the following is an electromechanical device that can be programmed to

perform manual tasks?
A) Robot
B) Sensory systems
C) Tactile systems
D) Signal processing systems
Diff: 1

Page Ref: 539

24) In the traditional Boolean logic, a person's credit score is either good or bad. In
________, the credit record may be assessed as both good and bad, but with different
degrees.
A) genetic algorithms
B) artificial intelligence
C) language translation
D) fuzzy logic
Diff: 2

Page Ref: 541

25) The solution of genetic algorithms is represented as a ________ for a specific

problem.
A) cell
B) gene
C) DNA
D) chromosome
Diff: 2

Page Ref: 541

26) The basic rationale of artificial intelligence is to use ________ rather than
mathematical calculation.
A) mathematical calculation
B) symbolic reasoning
C) genetic algorithms
D) fuzzy logic
Diff: 2

Page Ref: 543

27) A rule-based expert system contains rules in its knowledge base and the rules are
used to generate ________ for the user.
A) questions
B) solutions
C) questions and solutions
D) none of the above
Diff: 2

Page Ref: 545

28) Which of the following is the major objective of an expert system?

A) To learn
B) To teach
C) To provide advice
D) To function as a knowledge repository
Diff: 2

Page Ref: 550

29) Which of the following is used by a nonexpert to obtain expert knowledge and
advice?
A) Query environment
B) Development environment
C) consultation environment
D) Blackboard
Diff: 3

Page Ref: 550

30) Which of the following components appear in virtually every expert system?
A) User interface
B) Database management system
C) Statistical analysis module
D) Numeric data representation
Diff: 2

Page Ref: 550

31) Which of the following is usually included in an expert system that interacts with
users?
A) Blackboard
B) Justifier
C) Knowledge acquisition subsystem
D) All of the above
Diff: 2

Page Ref: 550

32) The knowledge base in expert system is composed of:

A) facts
B) heuristics and meta-rules
C) facts, heuristics, and meta-rules
D) facts, data, and knowledge rules
Diff: 2

Page Ref: 551

33) Which of the following is the brain of an expert system?

A) Knowledge base
B) Inference engine
C) User interface
D) Blackboard
Diff: 2

Page Ref: 551

34) Which of the following is not a typical type of problems recorded on blackboard?
A) Plan
B) Agenda
C) Solution
D) Key
Diff: 2

Page Ref: 552

35) A knowledge engineer helps the expert structure the problem area by doing all of
the following tasks except:
A) decoding the heuristics
B) interpreting and integrating human answers to questions
C) drawing analogies
D) posing counterexamples
Diff: 2

Page Ref: 551

36) A major goal of ________ is to help experts articulate how they do what they do
and to document this knowledge in a reusable form.
A) heuristics
B) knowledge engineering
C) knowledge refinement
D) rule interpreting
Diff: 2

Page Ref: 553

37) Which of the following is not an advantage of using multiple experts in the
development of an ES?
A) groupthink
B) fewer mistakes
C) enhanced quality
D) wider domain
Diff: 2

Page Ref: 556

38) "If the stop light is red AND you have stopped, THEN a right turn is okay" is an
example of:
A) a heuristic
B) a knowledge base
C) an inference rule
D) a production rule
Diff: 2

Page Ref: 557

39) The standard statistical methods are based on the assumption that an uncertainty is
the ________ that an event is true or false, whereas certainty theory is based on the
________ that an event is true or false.
A) estimated probability; calculated probability
B) probability; degrees of belief
C) calculated probability; estimated probability
D) degrees of belief; probability
Diff: 2

Page Ref: 561

40) All of the following are benefits of ES except:

A) Reduced downtime
B) Capture of scarce expertise
C) Work well within wide domains of knowledge.
D) Elimination of the need for expensive equipment
41) ________ is a test designed to measure the intelligence of a computer.
42) ________ are intuitive knowledge, or rules of thumb, learned from experience.
43) An ________ is a system that uses human knowledge captured in a computer to
solve problems that ordinarily require human expertise.
44) ________ is the recognition and understanding of spoken language by a computer.
45) Sensory systems, such as vision systems, tactile systems, and signal-processing
systems, when combined with AI, define a broad category of systems generally called
________.
46) ________ systems bring the power of a computer to bear on the educational
process.
47) A(n) ________ network is a set of mathematical models that simulate the way a
human brain functions.
48) ________ is a technique for processing linguistic terms, which extends the
notions of logic beyond simple true/false statements.

49) ________ are small programs that reside on computers to conduct certain tasks
automatically and it runs in the background, monitors the environment, and reacts to
certain trigger conditions.
50) A(n) ________ is a person who has the special knowledge, judgment, experience,
and methods, and the ability to apply these talents to give advice and solve problems.
51) The ________ is the foundation of an expert system, which includes the relevant
knowledge necessary for understanding, formulating, and solving problems.
52) The process of eliciting knowledge is called ________.
53) The ________ of an expert system is the rule interpreter.
54) ________ is a goal-driven approach in which you start from an expectation of
what is going to happen and then seek evidence that supports or contradicts your
expectation.
55) ________ is a data-driven approach that starts from available information or from
a basic idea, which is used to try to draw conclusions.
56) ________ express belief in an event, fact, or hypothesis based on the expert's
assessment and can be represented by values ranging from 0 to 100.
57) ________ is the process that ensures the resulting knowledge base contains the
knowledge exactly the same as that acquired from the expert.
58) In ________ expert systems, knowledge in the knowledge base is represented in
IF-THEN rules that combine the condition and the conclusion for handling a specific
situation.
59) An ________ is an expert system without the knowledge in the knowledge base.
60) The Web can greatly support the spread of multimedia-based ES. Such systems
are called ________ systems.
61) Describe abilities that are signs of intelligence.

62) Describe the characteristics of artificial intelligence.

63) Describe heuristics and give an example. Why do many AI methods use
heuristics?

64) Identify the advantages of artificial intelligence over natural intelligence.

65) Identify the advantages of natural intelligence over artificial intelligence.
66) List major applications and disciplines of AI.
67) Describe fuzzy logic. Contrast fuzzy logic with Boolean logic.

68) Describe the capabilities of human experts.

69) Describe the characteristics of expertise.

70) List and describe the generic categories of expert systems.

Chapter 13 Advanced Intelligent Systems
1) Machine-learning techniques enable computers to acquire knowledge (i.e., learn)
from data that reflects the historical happenings.
Diff: 1

Page Ref: 582

2) Machines learning overcomes deficiencies of manual knowledge acquisition

techniques by automating the learning process.
Diff: 1

Page Ref: 582

3) Unsupervised learning is a process of inducing knowledge from a set of

observations.
Diff: 2

Page Ref: 584

4) Inductive learning allows the computer to use historical cases to solve new
problems.
Diff: 2

Page Ref: 585

5) Case-based reasoning (CBR) is analogical reasoning that adapts solutions that had
been used to solve old problems to solve new problems.
Diff: 2

Page Ref: 585

6) The foundation of case-based reasoning (CBR) is a repository or library of cases

called a case base that contains a number of previous cases for decision making.
Diff: 2

Page Ref: 585

7) Genetic algorithms (GA) are a part of global search techniques that are used to find
or produce the best solution to a specific problem.
Diff: 2

Page Ref: 593

8) The knapsack problem is a conceptually simple optimization problem that can be

solved directly using analytical methods, but it is ideal for illustrating a genetic
algorithm approach.
Diff: 2

Page Ref: 597

9) Genetic algorithms can be used to solve business problems such as assembly-line

balancing, facility layout, machine and job shop scheduling, creditworthiness
determination, and aircraft design.
Diff: 2

Page Ref: 599

10) The thinking behind fuzzy logic is that decision making is not always a matter of
crisp logic, e.g., black or white or true or false. It often involves tones of gray and
varying degrees of truth.
Diff: 2

Page Ref: 602

11) Fuzzy logic systems can be used in conducting property appraisals since it is
necessary to use judgment, experience, and intuition to generate estimates.
Diff: 2

Page Ref: 604

12) STRATASSIST is a fuzzy ES that helps small- to medium-sized firms plan

strategically by asking questions in five strategic, competitive areas.
Diff: 2

Page Ref: 605

13) Support vector machines (SVM) have a solid mathematical foundation in

statistical learning theory, but are too complex for use in real-world applications.
Diff: 3

Page Ref: 606

14) A hyperplane is a geometric concept commonly used to describe the separation

surface between different classes of things within a multidimensional space.
Diff: 2

Page Ref: 606

15) In SVM, kernel trick allows us to construct a decision surface that is 3D in the
feature space while it is inherently nonlinear in the original input space.
Diff: 3

Page Ref: 608

16) In the SVM model development process, the main advantage of normalizing or
scaling the data is to avoid attributes in greater numeric ranges dominating those in
smaller numeric ranges.
Diff: 3

Page Ref: 609

17) An advantage of SVM models is that they tend to take less time to develop
compared to other predictive models.
Diff: 3

Page Ref: 613

18) A personal daemon must be able to make decisions on its own and alter its course
of behavior when it meets an obstacle and find ways around the impediment.
Diff: 2

Page Ref: 616

19) Interactivity is the most important characteristic of intelligent agents, making

them capable of acting on their own or of being empowered.
Diff: 2

Page Ref: 616

20) Development of a fuzzy inference system is a four-step process: fuzzification,

inferencing, summation, and defuzzification.
Diff: 2

Page Ref: 623

21) Neural networks identify ________ in the data from which they generate
recommended courses of action.
A) patterns
B) outliers
C) movements
D) associations
Diff: 1

Page Ref: 583

22) Machine learning is a family of artificial intelligence technologies that is

primarily concerned with:
A) the use of use neural networks to support simple and repetitive decision making.
B) the design and development of algorithms that allow computers to learn based on
historical data.
C) identifying outliers and patterns in data sets.
D) simulating creativity to generate courses of action.
Diff: 2

Page Ref: 583

23) Which of the following is not a relevant observation on how learning relates to
intelligent systems?
A) Automated learning systems are anchored in a formal bedrock; thus, their
implications are well understood.
B) Automated learning systems demonstrate intriguing learning behaviors.
C) Although AI sometimes matches human-level learning capabilities, it is not able to
learn as well as humans or in the same way that humans do.
D) A common thread running through most AI approaches to learning is the
manipulation of symbols rather than numeric information.
Diff: 3

Page Ref: 583

24) Human learning is a combination of many complicated cognitive processes.

Which of the following is not included in human's cognitive processes?
A) Induction
B) Simulation
C) Deduction
D) Analogy
Diff: 2

Page Ref: 583

25) Machine learning is considered a(n) ________ method.

A) trial-and-error
B) optimization
C) simulation
D) artificial intelligence
Diff: 1

Page Ref: 583

26) In supervised learning:

A) only input stimuli are fed into the network.
B) both the inputs and the desired outputs are known.
C) the desired output and the algorithms are known.
D) the network is controlled by the user.
Diff: 2

Page Ref: 584

27) In unsupervised learning:

A) only input stimuli are fed into the network.
B) both the inputs and the desired outputs are known.
C) the desired output and the algorithms are known.
D) the network is controlled by the user.
Diff: 2

Page Ref: 584

28) Which of the following is not a method of machine learning?

A) Genetic algorithms
B) Generic algorithms
C) Neural computing
D) Case-based reasoning
Diff: 1

Page Ref: 584

29) According to the Simplified Taxonomy of Machine Learning, all of the following
are types of learning except:
A) Supervised learning
B) Reinforcement learning
C) Unreiforced learning
D) Unsupervised learning
Diff: 2

Page Ref: 584

30) ________ allows the computer to examine historical cases and generate rules that
can be used to solve new problems or that can be deployed for automating a decision
support process that repeatedly deals with a specific class of problems (e.g.,
evaluating loan applications).
A) Exploration learning
B) Case-based reasoning
C) Explanation-based learning
D) Inductive learning
Diff: 2

Page Ref: 585

31) The foundation of case-based reasoning is a library of cases called ________.

A) case base
B) data base
C) legacy system
D) reasoning base
Diff: 2

Page Ref: 585

32) Which of the following is not a step in case-based reasoning process?

A) Retrieve
B) Reuse
C) Retain
D) Reserve
Diff: 2

Page Ref: 586

33) Which of the following are special cases that contain rich contents and special
features of deep implications?
A) Descriptive cases
B) Foundation cases
C) Special cases
D) Stories cases
Diff: 2

Page Ref: 586

34) Survival of the fittest (natural selection) is used in ________.

A) genetic algorithms
B) fuzzy logic
C) case-based reasoning
D) fuzzy neural networks
Diff: 1

Page Ref: 593

35) A chromosome in a genetic algorithm refers to ________.

A) crossover
B) summation
C) mutation
D) candidate solution
Diff: 2

Page Ref: 593

36) Crossover means choosing a random position in the string and exchanging the
segments ________ of this point with another string.
A) to the right
B) to the left
C) to both left and right
D) to either left or right
Diff: 2

Page Ref: 593

37) Which of the following is a limitation of GA?

A) Difficult to determine good variables for a particular problem
B) The results of GA may vary
C) It might reach local optimum
D) All of the above
Diff: 2

Page Ref: 595

38) Which of the following is not an advantage of fuzzy logic?

A) Greater flexibility
B) Faster calculations
C) More options
D) All of the above are advantages
Diff: 1

Page Ref: 602

39) Fuzzy logic in consumer products is sometimes called ________.

A) inferencing
B) defuzzification
C) continuous logic
D) crisp logic
Diff: 1

Page Ref: 604

40) Autonomy implies that an intelligent agent takes initiative and exercises control
over its own actions by having each of the following characteristics except:
A) An agent should accept high-level requests indicating what a human wants, and it
should be responsible for deciding how and where to satisfy the requests.
B) An agent should be able to dynamically choose which actions to invoke, and in
what sequence, in response to the state of its external environment.
C) The agent should obey commands and not be able to modify requests.
D) An agent should sense changes in its environment and decide when to act.
41) Human learning is a combination of many complicated ________ processes.
42) ________ is a process of inducing knowledge from a set of observations whose
outcomes are known.
43) ________ is used to discover knowledge from a set of data whose outcomes are
unknown.
44) ________ segmentation is one of the unsupervised machine learning methods
wherein data is put into several groups based on their similarity.
45) The basic principle of machine learning is that there are data that preserve
previous decision experience, and these experience-based records are called
________.
46) ________ allows computers to examine historical cases and generate rules that
can be chained to solve new problems.
47) Genetic algorithms are sets of computational procedures that conceptually follow
steps inspired by the biological processes of ________.
48) Genetic algorithms demonstrate self-organization and ________ in much the same
way that the fittest biological organisms survive and reproduce.
49) Genetic algorithms ________ by producing offspring that are better and better
measured by a fitness-to-survive function.
50) A genetic algorithm represents its candidate solutions as strings of genes called
________ and measures their viability with a fitness function.
51) ________ deals with the kind of uncertainty and partial information that is
inherently human in nature.

52) Fuzzy sets use a spectrum of possible values called ________.

53) The process in which the input and output are processed by fuzzy logic before
entering neural network in fuzzy neural networks is called ________.
54) A(n) ________ is a geometric concept commonly used to describe the separation
surface between different classes of things within a multidimensional space.
55) ________ are one of the most popular machine-learning techniques. They belong
to the family of generalized linear models and are closely associated with
feedforward-type artificial neural networks.

56) In machine learning, the ________ is a method for using a linear classifier
algorithm to solve a nonlinear problem
57) An ________ is an autonomous computer program that observes and acts upon an
environment and directs its activity toward achieving specific goals.
58) ________ is one of the unintended by-products of the information age
characterized by huge volumes of information that cross the desks of mangers and
decision makers.
59) ________ is the degree of autonomy and authority vested in an agent and can be
measured by the nature of the interaction between the agent and other entities in the
system.
60) ________ is the degree to which agents themselves travel through a network.
Some agents may be static, either residing on the client machine or initiated at the
server.
61) Describe case-based reasoning. What type of leaning is it?
62) Compare rule-based reasoning and case-based reasoning (CBR).
63) Define these three categories of cases--ossified cases, paradigmatic cases, and
stories--based on their different characteristics and the different ways of handling
them.

64) What are the advantages of using case-based reasoning?

65) Describe the major steps in case-based reasoning process.
66) List and describe the success factors for a case-based reasoning system.

67) What are genetic algorithms?

68) Describe the genetic operators of Genetic Algorithm in reproduction.
69) What is fuzzy logic?
70) Explain or draw the three-step process description for SVM model development.
Chapter 14 Management Support Systems: Emerging Trends and Impacts
1) RFID technology allows Coca-Cola to test and track new drink flavors and local
preferences.
Diff: 1

Page Ref: 635

2) Fundamentally, RFID is one example of automatic identification technologies,

unlike scanner-based barcodes and magnetic strips.
Diff: 1

Page Ref: 636

3) 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.
Diff: 2

Page Ref: 636

4) One of the applications of the massive amounts of data that are generated by RFID
is in supply-chain management.
Diff: 2

Page Ref: 637

5) 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.
Diff: 2

Page Ref: 641

6) 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.
Diff: 2

Page Ref: 641

7) By applying algorithms that reduce the volume of personally identifiable

information, reality mining can characterize places according to the activity and
movement between them.
Diff: 3

Page Ref: 643

8) Virtual worlds are defined as artificial worlds created by computer systems in

which the user has the impression of being immersed.
Diff: 1

Page Ref: 644

9) Advantages of Second Life are that it operates around the clock and a day in
Second Life is four hours long.
Diff: 2

Page Ref: 645

10) Virtual worlds are well-developed, interesting tools for businesses and consumers
and have gained widespread acceptance.
Diff: 2

Page Ref: 646

11) Web 2.0 is not only changing what is on the Web, but also how it works.
Diff: 1

Page Ref: 649

12) 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.
Diff: 2

Page Ref: 650

13) Virtual communities takes place over a computer network and parallel typical
physical communities,
such as neighborhoods, clubs, or associations.
Diff: 2

Page Ref: 650

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

Page Ref: 653

15) 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.
Diff: 1

Page Ref: 653

16) Advertising and sales are the major EC activities in public social networks.
Diff: 1

Page Ref: 655

17) Cloud computing is an important initiative for a BI professional to watch even

though concerns have been raised about cloud computing, including loss of control
and privacy, legal liabilities, cross-border political issues, and so on.
Diff: 2

Page Ref: 659

18) Management support systems (MSS) are important factors in the information,
Web, and knowledge revolution. This revolution is a cultural transformation like the
Industrial Revolution, both of which took place slowly and affected every facet of our

lives.
Diff: 2

Page Ref: 659

19) Although many jobs may be substantially enriched by MSS, other jobs may
become more routine and less satisfying.
Diff: 1

Page Ref: 664

20) Because the government is acquiring personal data to detect suspicious patterns of
activity, there is the prospect of improper or illegal use of the data. Many see such
gathering of data as a violation of citizens' freedoms and rights.
Diff: 2

Page Ref: 669

21) 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.
Diff: 2

Page Ref: 636

22) 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)
Diff: 2

Page Ref: 637

23) RFID tag data for products consist of the following information except:
A) manufacturer
B) carrier
C) product
D) serial number
Diff: 2

Page Ref: 637

24) 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
Diff: 2

Page Ref: 639

25) The success of today's highly volatile perishables supply chains depends on the
level and the timeliness of ________.
A) product visibility
B) product data
C) supply chain management
D) RFID
Diff: 2

Page Ref: 640

26) 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
Diff: 2

Page Ref: 647

27) 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
Diff: 2

Page Ref: 642

28) 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
Diff: 2

Page Ref: 644

29) 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
Diff: 2

Page Ref: 645

30) 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
Diff: 2

Page Ref: 646

31) One of the most 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.
Diff: 2

Page Ref: 649

32) A ________ is a social network organized around a common interest, idea, task,
or goal; members interact across time, geographic location, and organizational
boundaries to develop personal relationships.
A) virtual community
B) Web 2.0
C) wiki
D) trade fair
Diff: 2

Page Ref: 650

33) Categories of interaction in a virtual community include each of the following

except:
A) communication
B) information
C) EC element, such as advertisements
D) private community
Diff: 2

Page Ref: 651

34) MySpace and Facebook, Wikipedia and YouTube are examples of ________.
A) Web logs
B) online social networks
C) social network analysis software
D) Live Spaces
Diff: 1

Page Ref: 653

35) 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
Diff: 2

Page Ref: 654

36) The term cloud computing originates from a reference to the ________ as a cloud
and represents an evolution of all of previous shared/centralized computing trends.
A) server
B) client
C) Internet
D) network
Diff: 1

Page Ref: 658

37) MSS can have ________ implications.

A) micro
B) macro
C) both micro and macro
D) none of the above
Diff: 1

Page Ref: 659

38) Which of the following is not an impact of management support systems (MSS)
technologies?
A) organizational
B) governmental
C) individual
D) societal
Diff: 2

Page Ref: 659

39) Which of the following is not an impact of automated decision systems (ADS)?
A) Reduction of upper management
B) Empowerment of customers
C) Improved customer service
D) Increased productivity
Diff: 2

Page Ref: 661

40) Privacy has long been a(n) ________ issue.

A) legal
B) ethical
C) social
D) all of the above
41) Placing ________ chips on each flavor cartridge and using readers allows CocaCola 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.
42) On the positive side for RFID, ________ have a longer read range, better
accuracy, more complex rewritable information storage, and richer processing
capabilities
43) RFID tag data, in its purest form, is a series of ________.
44) RFID-enabled environmental ________ provide insight into the changing
environmental conditions experienced by the product and provide the data necessary
to determine to what extent those changes affect the quality or safety of the product.

45) By analyzing and learning from these large-scale patterns of movement, it is

possible to identify distinct classes of behaviors in specific contexts, called ________.
46) ________ provide new immersive experiences for decision support and replicate
many of the features
of physical gatherings.
47) ________ content is a major characteristic of Web 2.0, as is the emergence of
social networking.
48) A major objective of Web 2.0 is to enhance creativity, information sharing, and
________.
49) Wikia is working on community-developed Web searches. If they can create a
successful one, ________ will have a challenger.
50) A(n) ________ is a group of people with common interests who interact with one
another.
51) ________ 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.
52) Mobile social networking is much ________ popular in Japan, South Korea, and
China than it is in the West.
53) ________, which was launched in 2004 by former Harvard student Mark
Zuckerberg, is the second-largest social network service in the world.

54) Business-oriented ________, such as LinkedIn and Xing, concentrate on business

issues both in one country and around the world; e.g., recruiting, finding business
partners).
55) ________ computing offers the possibility of using software, hardware, platform,
and infrastructure, all on a service-subscription basis.
56) Automated decision support (ADS) applications can empower ________-level
frontline employees, giving them more autonomy.
57) In one view, intelligent systems and other MSS will cause massive ________
because of automating jobs, increased productivity, lower required skill levels, and
impacts on all sectors of the economy.
58) Privacy is the right to be left alone and the right to be free from ________
personal intrusions.
59) Serious legal issues may develop with the introduction of intelligent systems;
liability and ________ are the dominant problem areas.
60) Many people recognize that MSS tools are effective and efficient means to
increase ________ even though the privacy of many innocent people is compromised.
61) Define the components of RFID and how active and passive tags works.
62) How are real-world institutions, such as businesses and government agencies,
incorporating virtual worlds into their strategic marketing initiatives?
63) What are four major advantages of using Second Life for decision support?

64) List four major disadvantages of using Second Life for decision support.
65) Describe three representative characteristics of the Web 2.0 environment.
66) Describe social network analysis (SNA) software.
67) What is Twitter and how can it add business value to marketers?
68) Computer technology has already changed our world, and much more change is
anticipated. What are some of the major areas of social impact?
69) What are some of the potential positive and negative impacts of MSS on
managers' jobs?
70) What is privacy? Why is it difficult to enforce privacy regulations?