,Business Intelligence, 3e (Sharda/Delen/Turban)
Chapter 1 An Overview of Business Intelligence, Analytics, and Decision Support
1) Computerized support is only used for organizational decisions that are responses to external
pressures, not for taking advantage of opportunities.
Answer: FALSE
Diff: 2 Page Ref: 6-7
2) The complexity of today's business environment creates many new challenges for
organizations, such as global competition, but creates few new opportunities in return.
Answer: FALSE
Diff: 2 Page Ref: 7
3) In addition to deploying business intelligence (BI) systems, companies may also perform other
actions to counter business pressures, such as improving customer service and entering business
alliances.
Answer: TRUE
Diff: 1 Page Ref: 8
4) The overwhelming majority of competitive actions taken by businesses today feature
computerized information system support.
Answer: TRUE
Diff: 1 Page Ref: 8
5) The access to data and ability to manipulate data (frequently including real-time data) are key
elements of business intelligence (BI) systems.
Answer: TRUE
Diff: 2 Page Ref: 8-9
6) One of the four components of BI systems, business performance management, is a collection
of source data in the data warehouse.
Answer: FALSE
Diff: 3 Page Ref: 10
7) Actionable intelligence is the primary goal of modern-day Business Intelligence (BI) systems
vs. historical reporting that characterized Management Information Systems (MIS).
Answer: TRUE
Diff: 3 Page Ref: 12
8) Data warehouse and BI initiatives typically follow a process similar to that used in military
intelligence initiatives.
Answer: TRUE
Diff: 2 Page Ref: 13
,9) The two critical partnerships required for BI governance are (a) a partnership between
functional area users and/or product/service area employees, and (b) a partnership between
representatives of the marketing and vendor sides.
Answer: FALSE
Diff: 3 Page Ref: 13
10) The term intelligence in a BI context is used to describe clandestine operations dedicated to
stealing corporate secrets, in the manner of the government's CIA and other covert agencies.
Answer: FALSE
Diff: 2 Page Ref: 14
11) Information systems that support such transactions as ATM withdrawals, bank deposits, and
cash register scans at the grocery store represent transaction processing, a critical branch of BI.
Answer: FALSE
Diff: 2 Page Ref: 15
12) Many business users in the 1980s referred to their mainframes as "the black hole," because
all the information went into it, but little ever came back and ad hoc real-time querying was
virtually impossible.
Answer: TRUE
Diff: 2 Page Ref: 15
13) The success of BI is assured not because of which personnel would be the most likely to use
it, but as a result of pervasive adoption across the organization.
Answer: FALSE
Diff: 2 Page Ref: 16
14) BI represents a bold new paradigm in which the company's business strategy must be aligned
to its business intelligence analysis initiatives.
Answer: FALSE
Diff: 2 Page Ref: 16
15) Traditional BI systems use a large volume of static data that has been extracted, cleansed,
and loaded into a data warehouse to produce reports and analyses.
Answer: TRUE
Diff: 2 Page Ref: 17
16) Almost all BI applications are constructed with shells provided by an outsourcing provider
who may themselves create a custom solution for a vendor or work with another client.
Answer: FALSE
Diff: 3 Page Ref: 18
17) The use of dashboards and data visualizations is seldom effective in finding efficiencies in
organizations, as demonstrated by the Seattle Children's Hospital Case Study.
Answer: FALSE
Diff: 2 Page Ref: 21
, 18) The use of statistics in baseball by the Oakland Athletics, as described in the Moneyball case
study, is an example of the effectiveness of prescriptive analytics.
Answer: TRUE
Diff: 2 Page Ref: 23
19) Pushing programming out to distributed data is achieved solely by using the Hadoop
Distributed File System or HDFS.
Answer: FALSE
Diff: 2 Page Ref: 28
20) Volume, velocity, and variety of data characterize the Big Data paradigm.
Answer: TRUE
Diff: 2 Page Ref: 29
21) In the Magpie Sensing case study, the automated collection of temperature and humidity data
on shipped goods helped with various types of analytics. Which of the following is an example
of prescriptive analytics?
A) real time reports of the shipment's temperature
B) warning of an open shipment seal
C) location of the shipment
D) optimal temperature setting
Answer: D
Diff: 3 Page Ref: 4-5
22) In the Magpie Sensing case study, the automated collection of temperature and humidity data
on shipped goods helped with various types of analytics. Which of the following is an example
of predictive analytics?
A) real time reports of the shipment's temperature
B) warning of an open shipment seal
C) location of the shipment
D) optimal temperature setting
Answer: B
Diff: 3 Page Ref: 4-5
23) Which of the following is NOT an example that falls within the four major categories of
business environment factors for today's organizations?
A) globalization
B) increased pool of customers
C) fewer government regulations
D) increased competition
Answer: C
Diff: 2 Page Ref: 7
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