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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 model-
based 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 object-
oriented 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 text-
based 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 term-
document 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
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Cis 519 midterm and final exam – strayer new

  • 1. CIS 519 Midterm and Final Exam – Strayer NEW Click On The Link Below To Purchase A+ Graded Material Instant Download http://budapp.net/CIS-519-Exam-Midterm-and-Final-Exam-Strayer-NEW- CIS519MFE.htm 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
  • 2. 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
  • 3. 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
  • 4. 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
  • 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
  • 6. 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
  • 7. 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
  • 8. 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.
  • 9. 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.
  • 10. 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.
  • 11. 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
  • 12. 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.
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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.
  • 19. 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.
  • 20. 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.
  • 21. 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.
  • 22. Diff: 1 Page Ref: 84
  • 23. 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
  • 24. 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
  • 25. 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
  • 26. 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
  • 27. 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
  • 28. 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.
  • 29. 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.
  • 30. 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.
  • 31. 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.
  • 32. 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
  • 33. 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.
  • 34. 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 model- based 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
  • 35. 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
  • 36. 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
  • 37. 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-
  • 38. 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.
  • 39. 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.
  • 40. 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 object- oriented 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.
  • 41. 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.
  • 42. 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.
  • 43. 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
  • 44. 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
  • 45. 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
  • 46. 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
  • 47. 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
  • 48. 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.
  • 49. 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 ________.
  • 50. 60) The ________ algorithm is the most commonly used algorithm to discover association rules.
  • 51. 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.
  • 52. 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.
  • 53. 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.
  • 54. 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
  • 55.
  • 56. 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
  • 57. 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
  • 58. 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
  • 59. 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
  • 60. 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.
  • 61. 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.
  • 62. 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 text- based 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
  • 63. 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
  • 64. 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
  • 65. 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
  • 66. 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
  • 67. 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
  • 68. 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
  • 69. 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.
  • 70. 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?
  • 71. 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?
  • 72. 66) Diagram and explain the three-step text mining process. 67) List two options for managing or reducing the dimensionality (size) of the term- document 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
  • 73. 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.
  • 74. 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
  • 75. 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
  • 76. 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
  • 77. 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.
  • 78. 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
  • 79. 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.
  • 80. 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.
  • 81. 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.
  • 82. 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.
  • 83. 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.
  • 84. 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