Information System, Third Canadian Edition Rainer

Chapter 10
Business intelligence

Question Type: True/False

1) The goal of AQUA was to provide a “single version of the truth”.

Answer: True

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

2) Unstructured problems are fuzzy, complex problems for which there are no cut-and-dried solutions.

Answer: True

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

3) A manager’s primary function is strategic planning.

Answer: False

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

4) Decision-making is harder now than it was 20 years ago.

Answer: True

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Medium

5) The ratio between organizational inputs and outputs is an indication of the organization’s productivity.

Answer: True
Information System, Third Canadian Edition Rainer

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

6) Modern information systems support all three managerial roles.

Answer: True

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

7) In the choice phase of the decision-making process, managers construct a model that simplifies the problem.

Answer: False

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

8) In the implementation phase of the decision-making process, managers set criteria for the evaluation of
alternative potential solutions.

Answer: False

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

9) The number of alternatives to be considered in decisions today is increasing.

Answer: True

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

10) Structured decisions address routine, repetitive problems for which standard solutions exist.

Answer: True
Information System, Third Canadian Edition Rainer

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

11) Human intuition often plays a role in making unstructured decisions.

Answer: True

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

12) Unstructured decisions require a combination of standard solution procedures and individual judgment.

Answer: False

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

13) Management control is the acquisition and efficient use of resources in accomplishing organizational tasks.

Answer: True

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

14) The use of BI is limited to large corporations.

Answer: False

Learning Objective: Describe and provide examples of the three different ways that organizations use BI.
Section Reference: 10.2 What Is Business Intelligence?
Difficulty: Easy

15) Business intelligence (BI) is a broad category of applications, technologies, and processes for gathering,
storing, accessing, and analyzing data to help business users make better decisions.

Answer: True
Information System, Third Canadian Edition Rainer

Learning Objective: Describe and provide examples of the three different ways that organizations use BI.
Section Reference: What is Business Intelligence?
Difficulty: Easy

16) BI only works in large organizations.

Answer: False

Learning Objective: Describe and provide examples of the three different ways that organizations use BI.
Section Reference: What is Business Intelligence?
Difficulty: Easy

17) BI can be used to transform the entire business.

Answer: True

Learning Objective: Describe and provide examples of the three different ways that organizations use BI.
Section Reference: What is Business Intelligence?
Difficulty: Medium

18) NC State analyzed their structured Web data to reduce their triage process.

Answer: False

Learning Objective: Describe and provide examples of the three different ways that organizations use BI.
Section Reference: IT’s About Business: North Carolina State University Uses Business Analytics to Monetize
Intellectual Property
Difficulty: Hard

19) Targeted marketing is a good example of the discovery of previously unknown or hidden patterns.

Answer: False
Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy

20) Decision-support systems support only lower- and middle-level managers.

Answer: False

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Information System, Third Canadian Edition Rainer

Difficulty: Easy

21) Goal-seeking analysis attempts to find the value of the inputs necessary to achieve a desired level of output.

Answer: True

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy

22) With goal-seeking analysis, you have to know what you want as a result.

Answer: True

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

23) A group decision support system is an interactive, computer-based system that facilitates a group’s efforts to
find solutions to semistructured and unstructured problems.

Answer: True

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy

24) Reality mining allows analysts to extract information from social networking sites.

Answer: False

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy

25) CSFs are specific measures of KPIs.

Answer: False

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Information System, Third Canadian Edition Rainer

Section Reference: 10.4 Business Intelligence Applications for Presenting Results

Difficulty: Hard

26) An executive dashboard is very user friendly, supported by graphics, provides exception reporting and drill
down, and provides information related to critical success factors.

Answer: True

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy

27) Executive dashboards provide support primarily to analytical, quantitative types of decisions.

Answer: False

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy

28) Geographic Information Systems (GIS) are computer-based systems for capturing, integrating, manipulating,
and displaying data using digitized maps.

Answer: True

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy

29) KPI stands for key process information.

Answer: False

Learning Objective: Describe corporate performance management, and provide an example of how your
university could use CPM.
Section Reference: 10.5 Business Intelligence in Action: Corporate Performance Management
Difficulty: Easy

30) CSFs are qualitative while KPIs are quantitative.

Answer: True
Information System, Third Canadian Edition Rainer

Learning Objective: Describe corporate performance management, and provide an example of how your
university could use CPM.
Section Reference: 10.5 Business Intelligence in Action: Corporate Performance Management
Difficulty: Medium

31) Corporate performance management is involved with monitoring and managing an organization’s
performance according to key performance indicators.

Answer: True

Learning Objective: Describe corporate performance management, and provide an example of how your
university could use CPM.
Section Reference: Business Intelligence in Action: Corporate Performance Management
Difficulty: Easy

32) Corporate performance management (CPM) is involved with monitoring and managing an organization’s
performance according to its budget.

Answer: False

Learning Objective: Describe corporate performance management, and provide an example of how your
university could use CPM.
Section Reference: 10.5 Business Intelligence in Action: Corporate Performance Management
Difficulty: Easy

33) Even though Norfolk Southern doesn’t have as much information to deal with as other companies, they’ve
found a data warehouse has been most useful in their business.

Answer: False

Learning Objective: Summarize the fundamental concepts and skills related to business intelligence.
Section Reference: Closing Case
Difficulty: Easy

Question Type: Multiple Choice

34) Which of the following was NOT a problem Daimler AG’s had?

a) Consistent information
b) Information quality
c) Information silos
d) Lack of information

Answer: d
Information System, Third Canadian Edition Rainer

Learning Objective: Provide a real-world application of business intelligence.

Section Reference: Opening Case
Difficulty: Easy

35) _____ is the process by which organizational goals are achieved through the use of organizational resources.

a) Organizational decision making

b) Operations
c) Organizational strategy
d) Organizational productivity
e) Management

Answer: e

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

36) Which of the following is not a basic role of managers?

a) Interpersonal
b) Entrepreneurial
c) Informational
d) Decisional

Answer: b

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

37) In the definition of management, the organization’s goals are considered _________.

a) input
b) process
c) output
d) none of the above

Answer: c

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Medium
Information System, Third Canadian Edition Rainer

38) A monitor is an example of which managerial role?

a) Decisional
b) Informational
c) Interpersonal
d) Management

Answer: b

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

39) Decision makers construct a model for the situation in the ______ stage of the decision-making process.

a) Choice
b) Design
c) Implementation
d) Intelligence

Answer: b

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

40) _______ control involves decisions concerning acquiring and using resources efficiently in accomplishing
organizational goals.

a) Management
b) Operational
c) Organizational
d) Strategic planning

Answer: a

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

41) Being a figurehead and leader is part of the _____ managerial role.
Information System, Third Canadian Edition Rainer

a) interpersonal
b) entrepreneurial
c) informational
d) decisional
e) confrontational

Answer: a

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference:: 10.1 Managers and Decision Making
Difficulty: Easy

42) Being an entrepreneur, disturbance handler, and negotiator is part of the _____ managerial role.

a) interpersonal
b) entrepreneurial
c) informational
d) decisional
e) confrontational

Answer: d

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

43) In the _____ phase of the decision-making process, managers examine a situation and identify and define
the problem.

a) implementation
b) choice
c) design
d) intelligence
e) consideration

Answer: d

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

44) In the _____ phase of the decision-making process, managers construct a model that simplifies the problem.

a) implementation
Information System, Third Canadian Edition Rainer

b) choice
c) design
d) intelligence
e) consideration

Answer: c

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

45) Success in the _____ phase of the decision-making process results in resolving the original problem, and
failure leads to a return to previous phases.

a) implementation
b) choice
c) design
d) intelligence
e) consideration

Answer: a

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

46) In the _____ phase of the decision-making process, managers test potential solutions “on paper.”

a) implementation
b) choice
c) design
d) intelligence
e) consideration

Answer: b

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

47) Which of the following is not a reason why managers need IT support?

a) The number of alternatives is decreasing.

b) Decisions must typically be made under time pressure.
Information System, Third Canadian Edition Rainer

c) Decisions are becoming more complex.

d) There is a growing need to access remote information sources.
e) Decision makers are often based in different locations.

Answer: a

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

48) Decisions today are becoming _____ complex, due to _____ uncertainty in the decision environment.

a) less, decreased
b) more, decreased
c) less, increased
d) more, increased
e) neither more nor less, decreased

Answer: d

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Medium

49) Which of the following is not a characteristic of a structured decision?

a) It is routine.
b) It is repetitive.
c) Human intuition is not involved.
d) The first three phases of the decision-making process need not occur in any particular sequence
e) Standard solutions exist.

Answer: d

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Medium

50) The type of decision that can be made by following a definite procedure is called a(n) ______ decision.

a) structured
b) unstructured
c) undocumented
d) semistructured
Information System, Third Canadian Edition Rainer

e) procedural

Answer: a

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

51) ________ decisions are more common at lower organizational levels.

a) Structured
b) Unstructured
c) Undocumented
d) Semistructured
e) Procedural

Answer: a

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

52) Rank-and-file employees tend to make more _________ decisions.

a) Structured
b) Unstructured
c) Undocumented
d) Semistructured
e) Procedural

Answer: a

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

53) Calculating gross pay for hourly workers is an example of ________ decision making.

a) Structured
b) Unstructured
c) Undocumented
d) Semistructured
e) Procedural
Information System, Third Canadian Edition Rainer

Answer: a

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

54) Which of the following is not a characteristic of unstructured decisions?

a) They are complex.

b) They typically are fuzzy and unclear.
c) Standard solutions exist.
d) Human intuition is involved.
e) The first three phases of the decision-making process occur in no particular sequence.

Answer: c

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Medium

55) When there is no well-understood or agreed-on procedure for making a decision, the decision is said to be:

a) undocumented
b) structured
c) unstructured
d) semistructured
e) documented

Answer: c

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

56) A large foreign automobile manufacturer is considering where to build a new manufacturing plant in the
United States. They are making which type of decision?

a) structured
b) semistructured
c) unstructured
d) informational
e) wisdom

Answer: c
Information System, Third Canadian Edition Rainer

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Medium

57) Which type of decision requires a combination of standard solution procedures and individual judgment?

a) structured
b) semistructured
c) unstructured
d) informational
e) wisdom

Answer: b

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

58) A company’s annual employee evaluation best fits which type of decision?

a) unstructured
b) structured
c) semistructured
d) confrontational
e) wisdom

Answer: c

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Medium

59) _____ is the efficient and effective execution of specific tasks.

a) Operational control
b) Management control
c) Strategic planning
d) Expertise
e) Wisdom

Answer: a
Information System, Third Canadian Edition Rainer

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

60) _____ is the acquisition and efficient use of resources in accomplishing organizational goals.

a) Operational control
b) Management control
c) Strategic planning
d) Expertise
e) Wisdom

Answer: b

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

61) Computer support is greatest for which of the following problems?

a) semistructured and strategic planning

b) unstructured and operational control
c) structured and operational control
d) semistructured and management control
e) structured and management control

Answer: c

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Easy

62) Computer support is least for which of the following problems?

a) Semistructured and strategic planning

b) Unstructured and strategic planning
c) Semistructured and management control
d) Unstructured and operational control
e) Structured and strategic planning

Answer: b

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Information System, Third Canadian Edition Rainer

Section Reference: 10.1 Managers and Decision Making

Difficulty: Easy

63) Elena is trying to decide whether she should expand her ice cream shop to a bigger space. She decides to be
very methodical about it and follow the phases of the decision-making process she learned in college. Which of
the following statements is true?

a) During the intelligence phrase, Elena will build a model using assumptions about the business.
b) During the design phrase, Elena will define the opportunity.
c) During the choice phase, Elena will lay out her options.
d) During the implementation phase, Elena will implement two of her solutions.
e) Elena will use test data to validate her model.

Answer: e

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Medium

64) _________ is an independent application for a specific functional area.

a) Business intelligence
b) A data mart
c) An enterprise data warehouse
d) An ERP

Answer: b

Learning Objective: Describe and provide examples of the three different ways that organizations use BI.
Section Reference: 10.2 What is Business Intelligence?
Difficulty: Medium

65) Which of the following was NOT a way NC State used IBM’s “Big Data” analytics technology?

a) Analyze its web pages

b) Establish new business opportunities
c) Market more effectively to potential partners
d) Reduce the size of its faculty

Answer: d

Learning Objective: Describe and provide examples of the three different ways that organizations use BI.
Section Reference: IT’s About Business: North Carolina State University Uses Business Analytics to Monetize
Intellectual Property
Difficulty: Medium
Information System, Third Canadian Edition Rainer

66) Adelaid Brighton Cement installed a _________ system to address its problems.

a) BI
b) CRM
c) ERP
d) SCM

Answer: a

Learning Objective: Describe and provide examples of the three different ways that organizations use BI.
Section Reference: IT’s About Small Business: Adelaide Brighton Cement
Difficulty: Easy

67) For Adelaid Brighton Cement, installing a(n) _________ system was cheaper than a(n) ____________ system.

a) BI, ERP
b) BI, SCM
c) ERP, BI
d) ERP, SCM

Answer: a

Learning Objective: Describe and provide examples of the three different ways that organizations use BI.
Section Reference: IT’s About Small Business: Adelaide Brighton Cement
Difficulty: Medium

68) Searching for valuable business information in a database, data warehouse, or data mart is referred to as
_____.

a) structured queries
b) database queries
c) data mining
d) query by example
e) expert system queries

Answer: c

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy

69) _____ provides users with a view of what is happening, whereas _____ addresses why it is happening.

a) Multidimensional data analysis, structured query language

b) Data mining, multidimensional data analysis
c) Data mining, expert system
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d) Multidimensional data analysis, neural networks

e) Multidimensional data analysis, data mining

Answer: e

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

70) Credit card companies would most likely use which of the following to check for fraudulent credit card use?

a) Data mining
b) Expert systems
c) Neural networks
d) Multidimensional data analysis
e) Structured query language

Answer: a

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

71) A company wants to use data from past promotional mailings to identify people who would likely respond
favorably to future mailings. This company would most likely use:

a) Structured query language

b) Multidimensional data analysis
c) Neural networks
d) Expert systems
e) Data mining

Answer: e

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

72) _________ involves “slicing and dicing” data stored in a dimensional format, drilling down in the data to
greater detail, and aggregating the data.

a) ERP
b) OLAP
c) OLTP
Information System, Third Canadian Edition Rainer

d) XML

Answer: b

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy

73) _________ identifies what happened whereas ________ explains why.

a) BI, data mining

b) BI, data warehousing
c) Data mining, BI
d) Data warehousing, BI

Answer: a

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

74) __________ analysis is the study of the impact of a change in the assumptions on the proposed solution.

a) Assumption
b) Goal-seeking
c) Sensitivity
d) What-if

Answer: d

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy

75) The goal of ________ analysis is to see what you can get by changing some criteria.

a) assumption
b) goal-seeking
c) sensitivity
d) what-if

Answer: c
Information System, Third Canadian Edition Rainer

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Hard

76) Which of the following is not a characteristic of DSSs?

a) They support only lower- and middle-level managers.

b) They are easy to use and construct.
c) They can adapt to changing conditions.
d) They usually utilize quantitative models.
e) They support all phases of the decision-making process.

Answer: a

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

77) At the end of a semester, a student knows that she must achieve a grade of 81 or higher on her final exam to
get an A in the course. She has just performed what kind of analysis?

a) What-if
b) Qualitative
c) Sensitivity
d) Goal-seeking
e) Simulation

Answer: d

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

78) _____ attempts to find the value of the inputs necessary to achieve a desired level of output.

a) What-if analysis
b) Qualitative analysis
c) Sensitivity analysis
d) Goal-seeking analysis
e) Simulation

Answer: d
Information System, Third Canadian Edition Rainer

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy

79) Which of the following is not a characteristic of organizational decision support systems?

a) They affect multiple organizational units or corporate issues.

b) They cut across organizational functions or hierarchical layers.
c) They involve computer-based technologies.
d) They are standalone systems.
e) They involve communications technologies.

Answer: d

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

80) You’ve started an internship at the major hospital in your city. Your boss gave you ten minutes of training on
the data warehouse that you have access to. The last thing she told you was to do some analysis on the Visit
cube. Which of the following statements is false?

a) One dimension of the cube is (probably) day.

b) One dimension of the cube is (probably) treatment.
c) One dimension of the cube is (probably) doctor.
d) One dimension of the cube is (probably) month.
e) One dimension of the cube is (probably) patient.

Answer: d

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

81) Sally is working for her uncle for the summer in the marketing department of Proctor & Gamble. She tells you
she does data mining all day long. Which of the following statements is false?

a) Data mining can be used to prove assumptions.

b) Data mining is used to identify unknown patterns.
c) Data mining can explain why things happened.
d) Data mining can predict what will happen.
e) Data mining can be used to identify customers.

Answer: e
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Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

82) Shawn is doing some budgeting for his new start-up business. He has developed a budget in Excel using
formulas, as he was taught to do in college. Which of the following statements is true?

a) If Shawn changes one of his assumptions, Excel will automatically recalculate the budget numbers.
b) Shawn would use sensitivity analysis to check the impact of changing his price.
c) Shawn would use roll-up to review his summary numbers.
d) Shawn would use what-if analysis to check the impact of changing his price and the commission he pays his
sales people.
e) Shawn would use goal-seeking analysis to examine the impact of changing his forecast of units sold.

Answer: a

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

83) A(n) _____ provides rapid access to timely information and direct access to management reports.

a) decision support system

b) expert system
c) neural network
d) digital dashboard
e) data warehouse

Answer: d

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy

84) Dashboards are typically targeted at _________.

a) middle managers
b) operational managers
c) tactical managers
d) top executives

Answer: d
Information System, Third Canadian Edition Rainer

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy

85) ____________ is one feature of dashboards that enables users to get details, and details of details, of
information.

a) Consolidation
b) Detailed
c) Drill-down
d) Status access

Answer: c

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium

86) Which capability of digital dashboards enables users to obtain the latest data available on key performance
indicators or some other metric, ideally in real time?

a) Drill-down
b) Key performance indicators
c) Status access
d) Trend analysis
e) Exception reporting

Answer: c

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy

87) Which of the following information systems are very user friendly, supported by graphics, and provide
exception reporting and drill down?

a) Decision support systems

b) Digital dashboards
c) Functional area information systems
d) Group decision support systems
e) Expert systems

Answer: b
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Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy

88) Digital dashboards provide all of the following capabilities except:

a) Drill-down
b) Transaction processing
c) Status access
d) Key performance indicators
e) Exception reporting

Answer: b

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium

89) The management cockpit best exemplifies which type of system?

a) Decision support system

b) Expert system
c) Digital dashboard
d) Functional area information system
e) Group decision support system

Answer: c

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium

90) The primary distinguishing characteristic of geographical information systems is:

a) Every record or digital object has a unique identifier

b) Every record or digital object is visible to the user
c) Every record or digital object must be accessed by programmers
d) Every record or digital object has an identified geographical location
e) Every record or digital object is encrypted

Answer: d

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
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Section Reference: 10.4 Business Intelligence Applications for Presenting Results

Difficulty: Medium

91) Geocoding involves:

a) Integrating maps with spatially oriented databases and other databases

b) Encrypting spatial information
c) Accessing geographical information
d) Integrating organizational transactions with spatially oriented databases
e) Programming spatially oriented databases

Answer: a

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium

92) Today, geographical information systems are being combined with _____ to form geospatial technologies.

a) dashboards
b) global positioning systems
c) decision support systems
d) expert systems
e) neural networks

Answer: b

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium

93) Amanda is working for the CEO of a small company. He asks her to develop a dashboard. Amanda starts
thinking about the questions she needs to ask. Which of the following questions is not on Amanda’s list?

a) How many levels do you wish to drill down?

b) What are your key performance indicators?
c) Do you need real-time data?
d) Do you want graphs and charts or text?
e) Should it run on your iPhone?

Answer: c

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Information System, Third Canadian Edition Rainer

Difficulty: Medium

94) Which of the following is an example of a CSF?

a) Average customer spending

b) Creating high quality products
c) Number of product returns
d) Turnover rates of employees

Answer: b

Learning Objective: Describe corporate performance management, and provide an example of how your
university could use CPM.
Section Reference: Business Intelligence in Action: Corporate Performance Management
Difficulty: Easy

95) Which of the following is an example of a KPI?

a) Create high-quality products

b) Number of new customers
c) Reduce product costs
d) Retain competitive advantages

Answer: b

Learning Objective: Describe corporate performance management, and provide an example of how your
university could use CPM.
Section Reference: Business Intelligence in Action: Corporate Performance Management
Difficulty: Easy

96) Norfolk Southern uses a(n) ______ to manage its data.

a) business intelligence system

b) data mart
c) enterprise data warehouse
d) ERP

Answer: c

Learning Objective: Summarize the fundamental concepts and skills related to business intelligence.
Section Reference: Closing Case
Difficulty: Medium

97) Which of the following best describes Daimler’s Quality Information System (QUIS)?

a) Users didn’t have the right tools to access the data.

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b) Information was easily evaluated together.

c) The platform had excess capacity.
d) The data for diagnostics were not available.
e) QUIS was used only by garages.

Answer: a

Learning Objective: Provide a real-world application of business intelligence.

Section Reference: Opening Case: Quality Assurance at Daimler AG
Difficulty: Medium

98) Adelaide Brighton Cement decided to use a hosted system called myDIALS for incident hazard and reporting.
Which of the following is not a reason for their choice?

a) The business intelligence application runs on Adelaide’s servers.

b) The BI application runs on myDIALS servers.
c) The hosted system involved minimal risk.
d) The hosted system was less expensive than an ERP system.
e) Implementing the hosted system required no modifications to Adelaide’s existing systems.

Answer: a

Learning Objective: Provide a real-world application of business intelligence.

Section Reference: IT’s About Business: 10.1 Adelaide Brighton Cement
Difficulty: Easy

99) Which of the following is not a by-product of Kelley Blue Book’s use of business intelligence data?

a) Integrated their data with third-party data

b) Improved the speed of estimates on their Web site
c) Helped owners determine the best time to sell
d) Enabled owners to forecast car prices
e) Quicker turnaround to publish a new book.

Answer: e

Learning Objective: Describe and provide examples of the three different ways that organizations use BI.
Section Reference: IT’s About Business: 10.2 Data Analytics Helps Kelley Blue Book Remain Competitive
Difficulty: Easy

100) Norfolk Southern used a data warehouse to manage the information that is accessible via business
intelligence tools. Which of the following statements about Norfolk Southern’s use of BI tools is not true?

a) The data in the data warehouse can be used by all departments in the company.
b) Norfolk Southern does not share its data with external customers.
c) The data were used to determine where to locate field offices.
d) The dashboard application uses visualization technology.
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e) The data for the data warehouse come from operational systems.

Answer: b

Learning Objective: Summarize the fundamental concepts and skills related to business intelligence.
Section Reference: Closing Case: Norfolk Southern
Difficulty: Medium

Question Type: Essay

101) Describe the three major roles of managers.

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Medium

102) Explain why managers need IT support.

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Medium

103) Discuss the information technologies that are available to support managers.

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Medium

104) Describe the phases in the decision-making process.

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Medium

105) Describe OLAP, and explain what a data cube is.

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
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106) Explain data mining, using examples.

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

107) Explain how what-if analysis is employed, using examples.

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

108) Explain what data visualization technologies are, using examples.

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium

109) Describe how your university could use a decision support system in its admissions process.

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Hard

110) Discuss the structure of problems, the nature of decisions, and the framework for computerized decision
analysis.

Learning Objective: Identify the phases in the decision-making process, and use a decision-support framework to
demonstrate how technology supports managerial decision making.
Section Reference: 10.1 Managers and Decision Making
Difficulty: Medium

111) Describe how your university could use a geographical information system in its admissions process. What
value could your university gain from using such a system?

Learning Objective: Specify the BI applications available to users for data analysis, and provide examples of how
each one might be used to solve a business problem at your university.
Section Reference: 10.3 Business Intelligence Applications for Data Analysis
Difficulty: Hard
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112) Speculate on the future of virtual reality applications in higher (college and university) education. Describe
some possible applications.

Learning Objective: Describe three BI applications that present the results of data analyses to users, and offer
examples of how businesses and government agencies can use each of these technologies.
Section Reference: 10.4 Business Intelligence Applications for Presenting Results
Difficulty: Hard
Information System, Third Canadian Edition Rainer

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