Test Questions & Answers Business Analytics Test Bank Ch12

Package Title: Chapter 12 Test Bank

Course Title: Introduction to IS 5e

Chapter Number: 12


Question type: Multiple Choice


1) Stitch Fix markets itself to ______ who _______.

a) women between 25 and 45; need their clothes mended

b) women between 25 and 45; are willing to pay $55 or more on clothes and accessories

c) women between 45 and 65; need their clothes mended

d) women between 45 and 65; are willing to pay $55 or more on clothes and accessories

Difficulty: Easy

Section Reference: Opening Case

Learning Objective: 12.1

Bloomcode: Knowledge

Standard: AACSB Technology

2) Which of the following is TRUE of Stitch Fix’s business model compared to their competitors?

a) They create more new products to attract customers.

b) They offer the lowest price.

c) They ship faster.

d) They understand their customers better.

Difficulty: Easy

Section Reference: Opening Case

Learning Objective: 12.1

Bloomcode: Knowledge

Standard: AACSB Technology

3) Stitch Fix’s highest level of analytics is _______.

a) descriptive

b) predictive

c) prescriptive

d) presentation

Difficulty: Medium

Section Reference: Opening Case

Learning Objective: 12.4

Bloomcode: Analysis

Standard: AACSB Technology

4) Which is TRUE of Stich Fix?

a) Their business model is such that they offer exclusive lines of clothing, albeit for normal prices.

b) Their business model is such that they offer exclusive lines of clothing at a fraction of the cost that the same clothes would retail for in stores.

c) Their business model offers neither exclusive brands nor reduced prices, instead relying on experience and relevance.

d) Their business model is such that they offer no exclusive clothing lines, however their appeal lies within their transparent pricing and ethical and sustainable clothing options.

Difficulty: Easy

Section Reference: Opening Case

Learning Objective: 12.4

Bloomcode: Comprehension

Standard: AACSB Technology

5) Stick Fix utilizes a process known as ___________ to gain a deeper understanding of its clients’ preferences and style choices, while simultaneously collecting data on its merchandise that feeds into ___________ that help determine merchandise best suited for clients.

a) social media scanning; analytics

b) dark analytics; algorithms

c) deep analysis; merchandising databases

d) unique identification; branded content

Difficulty: Easy

Section Reference: Opening Case

Learning Objective: 12.4

Bloomcode: Knowledge

Standard: AACSB Technology

6) __________ decide what data should be stored in an organization’s data warehouse.

a) Customers

b) IT people

c) Managers

d) Users

Question Title: Testbank 12.06

Difficulty: Medium

Section Reference 1: Managers and Decision Making

Learning Objective 1: 12.1 Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


7) Management is a process by which an organization achieves its goals (called ______) through the use of resources (called _______).

a) the input; inputs

b) the input; outputs

c) the output; inputs

d) the output; outputs

Question Title: Testbank 12.07

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


8) Productivity is a _________.

a) function of the number of inputs and outputs for which a manager is responsible

b) measure of how useful a manager is

c) ratio between the inputs and outputs for which a manager is responsible

d) useful way of seeing how important a product is

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


9) _______ is NOT a phase in decision making.

a) Choice

b) Design

c) Information

d) Intelligence

Question Title: Testbank 12.09

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


10) Suppose you are failing one of your classes. If you don’t know what the problem is, you need to enter the _______ phase of the decision making .

a) choice

b) design

c) intelligence

d) implementation

Question Title: Testbank 12.10

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Application


11) Suppose you are failing one of your classes. You know you need to pay attention in class, study every day, take better notes, read the book before the lectures, or talk to the teacher about ways to improve. You developed this list in the _________ phase of the decision making .

a) choice

b) design

c) intelligence

d) implementation

Question Title: Testbank 12.11

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Application


12) Suppose you are failing one of your classes. Based on your evaluation, you decide to start paying attention in class and talking to the teacher about ways to improve. This decision is part of the _________ phase of the decision making.

a) choice

b) design

c) intelligence

d) implementation

Question Title: Testbank 12.12

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Application


13) Suppose you are failing one of your classes. Based on the choice you made to start studying harder, you look over your notes every day after class and study at least an hour every night for at least a week before an exam. This action is part of the ______ phase of the decision making.

a) choice

b) design

c) intelligence

d) implementation

Question Title: Testbank 12.13

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Application


14) Examination and answering the question “what is the problem” occur in the ______ phase of the decision making.

a) choice

b) design

c) intelligence

d) implementation

Question Title: Testbank 12.14

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


15) Validation of the model and answering the question “what are my options” occur in the _____ phase of the decision making.

a) choice

b) design

c) intelligence

d) implementation

Question Title: Testbank 12.15

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


16) Verification/testing of the proposed solution and picking an option occur in the _____ phase of the decision making.

a) choice

b) design

c) intelligence

d) implementation

Question Title: Testbank 12.16

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


17) Answering the question “did this option work as proposed” occurs in the _____ phase of the decision making.

a) choice

b) design

c) intelligence

d) implementation

Question Title: Testbank 12.17

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


18) _______ is an interpersonal role.

a) Disseminator

b) Disturbance handler

c) Figurehead

d) Monitor

Question Title: Testbank 12.18

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


19)_________ is a decisional role.

a) Disseminator

b) Disturbance handler

c) Figurehead

d) Monitor

Question Title: Testbank 12.19

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


20) _________ is an interpersonal role.

a) Entrepreneur

b) Leader

c) Negotiator

d) Spokesperson

Question Title: Testbank 12.20

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


21) ________ is an informational role.

a) Entrepreneur

b) Leader

c) Negotiator

d) Spokesperson

Question Title: Testbank 12.21

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


22) _______ is a decisional role.

a) Analyzer

b) Leader

c) Liaison

d) Resource allocator

Question Title: Testbank 12.22

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


23) ________ is an informational role.

a) Analyzer

b) Leader

c) Liaison

d) Resource allocator

Question Title: Testbank 12.23

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


24) ___________ decisions deal with routine and repetitive problems.

a) Midstructured

b) Semistructured

c) Structured

d) Unstructured

Question Title: Testbank 12.24

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


25) __________ decisions deal with “fuzzy”, complex problems.

a) Midstructured

b) Semistructured

c) Structured

d) Unstructured

Question Title: Testbank 12.25

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


26) _________ decisions are partially routine and partially complex.

a) Midstructured

b) Semistructured

c) Structured

d) Unstructured

Question Title: Testbank 12.26

Difficulty: EasySection Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


27) As a purchasing manager, you have to purchase widgets every week to replenish your inventory. This is a(n) ________ decision.

a) midstructured

b) semistructured

c) structured

d) unstructured

Question Title: Testbank 12.27

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Application


28) As a board member, you recommend hiring a new CEO to address the scandals that have been reported in the Wall Street Journal. This is a(n) ________ decision.

a) midstructured

b) semistructured

c) structured

d) unstructured

Question Title: Testbank 12.28

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Application


29) Every year, you have to give each of your employees a performance review and decide whether they have earned a raise. This is a(n) ________ decision.

a) midstructured

b) semistructured

c) structured

d) unstructured

Question Title: Testbank 12.29

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Application


30) Considering the nature of decisions, executing specific tasks efficiently and effectively is ___________.

a) financial planning

b) management control

c) operational control

d) strategic planning

Question Title: Testbank 12.30

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


31) Considering the nature of decision, acquiring and using resources efficiently in accomplishing organizational goals is ___________.

a) financial planning

b) management control

c) operational control

d) strategic planning

Question Title: Testbank 12.31

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


32) Considering the nature of decisions, the long-range goals and policies for growth and resource allocation is ___________.

a) financial planning

b) management control

c) operational control

d) strategic planning

Question Title: Testbank 12.32

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


33) You are an employee in Inside Sales. This means you take calls and address customer issues like entering orders, updating orders, and providing order status reports. This is a(n) _____ task and a(n) _______ decision.

a) structured; management control

b) structured; operational control

c) unstructured; management control

d) unstructured; operational control

Question Title: Testbank 12.33

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Application


34) You are a marketing manager responsible for planning the budget for your department. This is a(n) ______ task and a(n) _______ decision.

a) semistructured; management control

b) semistructured; operational control

c) unstructured; management control

d) unstructured; strategic planning

Question Title: Testbank 12.34

Difficulty: Hard

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Application


35) You are the CEO of Widgets R Us. You know your widgets need to be more efficient and cost less, so you ask R&D to develop a plan. This is a(n) _____ task and a(n) ______ decision.

a) structured; management control

b) structured; operational control

c) unstructured; operational control

d) unstructured; strategic planning

Question Title: Testbank 12.35

Difficulty: Medium

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Application


36) Data marts are typically associated with ___________.

a) the development of infrastructure to support enterprise-wide analytics

b) the development of one or a few related analytics applications

c) support for maintaining organizational strategy

d) support for organizational transformation

Question Title: Testbank 12.36

Difficulty: Easy

Section Reference 1: 12.2 The Business Analytics Process

Learning Objective 1: Describe each phase of the business analytics process.

Bloomcode: Knowledge


37) Data silos are often associated with ___________.

a) the development of infrastructure to support enterprise-wide analytics

b) the development of one or a few related analytics applications

c) support for maintaining organizational strategy

d) support for organizational transformation

Question Title: Testbank 12.37

Difficulty: Medium

Section Reference 1: 12.2 The Business Analytics Process

Learning Objective 1: Describe each phase of the business analytics process.

Bloomcode: Knowledge


38) You want to make sure your entire organization is using a single data warehouse instead of using a data mart for every department. This is an example of ___________.

a) the development of infrastructure to support enterprise-wide analytics

b) the development of one or a few related analytics applications

c) support for maintaining organizational strategy

d) support for organizational transformation

Question Title: Testbank 12.38

Difficulty: Medium

Section Reference 1: 12.2 The Business Analytics Process

Learning Objective 1: Describe each phase of the business analytics process.

Bloomcode: Application


39) You decide to implement a new customer loyalty program that rewards customers for shopping in your store. To accomplish this, you need to implement a data warehouse to collect data from all your physical and online stores. This is an example of ___________.

a) the development of infrastructure to support enterprise-wide analytics

b) the development of one or a few related analytics applications

c) support for maintaining organizational strategy

d) support for organizational transformation

Question Title: Testbank 12.39

Difficulty: Medium

Section Reference 1: 12.2 The Business Analytics Process

Learning Objective 1: Describe each phase of the business analytics process.

Bloomcode: Application


40) The entire business analytics process starts with ___________.

a) a business problem

b) analytics

c) data management

d) recommendations

Question Title: Testbank 12.40

Difficulty: Medium

Section Reference 1: 12.2 The Business Analytics Process

Learning Objective 1: Describe each phase of the business analytics process.

Bloomcode: Knowledge


41) __________ analytics answers the question “what has happened”.

a) Descriptive

b) Predictive

c) Prescriptive

a) Useful

Question Title: Testbank 12.41

Difficulty: Easy

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


42) You would use OLAP and DSS as statistical procedures for __________ analytics.

a) descriptive

b) predictive

c) prescriptive

d) useful

Question Title: Testbank 12.42

Difficulty: Easy

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


43) Data reduction is the conversion of raw _______ into a smaller amount of more useful _______.

a) data; information

b) data; knowledge

c) information; data

d) information; knowledge

Question Title: Testbank 12.43

Difficulty: Hard

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Synthesis


44) _________ analytics is the first step in data reduction.

a) Descriptive

b) Predictive

c) Prescriptive

d) Useful

Question Title: Testbank 12.44

Difficulty: Easy

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


45) _________ involves slicing and dicing data, drilling down in the data, and rolling up data to greater summarization.

a) Data mining

b) DSS

c) OLAP

d) OLTP

Question Title: Testbank 12.45

Difficulty: Easy

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


46) __________ can perform two basic operations: 1) identifying previously unknown patters and 2) predicting trends and behaviors.

a) Data mining

b) DSS

c) OLAP

d) OLTP

Question Title: Testbank 12.46

Difficulty: Easy

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


47) Examples of _______ include sensitivity, what-if, and goal-seeking analyses.

a) data mining

b) DSS

c) OLAP

d) OLTP

Question Title: Testbank 12.47

Difficulty: Easy

Section Reference 1: 12.3 Descriptive Analytics.

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


48) If you analyze a data cube, this is an example of using ________.

a) data mining

b) DSS

c) OLAP

d) OLTP

Question Title: Testbank 12.48

Difficulty: Medium

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


49) Affinity analysis is a(n) _________ application.

a) data mining

b) DSS

c) OLAP

d) OLTP

Question Title: Testbank 12.49

Difficulty: Medium

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Analysis


50) If you want to know what items customers typically buy together so that you can place them next to each other on the shelf, you would be using _________.

a) data mining

b) DSS

c) OLAP

d) OLTP

Question Title: Testbank 12.50

Difficulty: Medium

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Application


51) ______ analysis examines the change in an output given the change in a particular input while keeping all other inputs constant.

a) Affinity

b) Goal-seeking

c) Sensitivity

a) What-if

Question Title: Testbank 12.51

Difficulty: Easy

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


52) ______ analysis attempts to predict the impact of changes in the assumptions (input data) on the proposed solution.

a) Affinity

b) Goal-seeking

c) Sensitivity

d) What-if

Question Title: Testbank 12.52

Difficulty: Easy

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


53) _____ analysis attempts to calculate the value of the inputs necessary to achieve a desired level of output.

a) Affinity

b) Goal-seeking

c) Sensitivity

d) What-if

Question Title: Testbank 12.53

Difficulty: Easy

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


54) You are a jeweler who wants to make sure you have the maximum number of diamonds for sale. You notice that the number of diamonds available drops more when the size is relevant versus when the color is relevant. By comparing these factors, you are conducting a(n) _____ analysis.

a) affinity

b) goal-seeking

c) sensitivity

d) what-if

Question Title: Testbank 12.54

Difficulty: Medium

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Application


55) You assume the inflation rate will remain constant over the next few years, so you consider purchasing a home with a variable interest rate. You decide to double-check this assumption with a(n) __________ analysis.

a) affinity

b) goal-seeking

c) sensitivity

d) what-if

Question Title: Testbank 12.55

Difficulty: Medium

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Application


56) You want to spend a maximum of $100,000 on your first house. You need to use a(n) _____ analysis to figure out the location and size of those types of homes.

a) affinity

b) goal-seeking

c) sensitivity

d) what-if

Question Title: Testbank 12.56

Difficulty: Medium

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Application


57) Esurance used the concept of ______ to get customers to add towing to their packages.

a) cross-selling

b) loyalty programs

c) sales promotions

d) up-selling

Question Title: Testbank 12.57

Difficulty: Medium

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


58) The Esurance Coverage Rules Engine is mostly a ______ analytics system.

a) descriptive

b) predictive

d) prescriptive

e) useful

Question Title: Testbank 12.58

Difficulty: Medium

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Analysis


59) OntarioMD (www.ontariomd.ca) has developed an EMR-integrated health management tool to_________

a) provide clinicians with insight into the data they input into the system

b) provide patients with insight into the data they input into the system

c) provide Ontario government with insight into the data they input into the system d) All of the other options.

Question Title: Testbank 12.59

Difficulty: Medium

Section Reference 1: IT’s About Business 12.1

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Analysis


60) The tool developed by OntarioMD is called Insight4Care and presents EMR data in the form of charts such as bar charts and pie charts. Such systems that represent important data and reports in the form of graphics are called________.

a) reports

b) dashboards

c) data marts

d) OLAP

Question Title: Testbank 12.60

Difficulty: Medium

Section Reference 1: IT’s About Business 12.1Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


61) Which of the following is NOT a use for data mining?

a) Comparing products

b) Detecting fraudulent credit card transactions

c) Forecasting bankruptcy

d) Predicting sales

Question Title: Testbank 12.61

Difficulty: Medium

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Analysis


62) Targeted marketing relies on _________ analytical information.

a) descriptive

b) predictive

c) prescriptive

d) useful

Question Title: Testbank 12.62

Difficulty: Medium

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Knowledge


63) ________ analytics examines recent and historical data to detect patterns and predict future outcomes and trends.

a) Descriptive

b) Predictive

c) Prescriptive

d) Useful

Question Title: Testbank 12.63

Difficulty: Easy

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Knowledge


64) _____ is NOT a statistical tool used for predictive analytics.

a) Data mining

b) Linear regression

c) Logistic regression

d) Multidimensional analysis

Question Title: Testbank 12.64

Difficulty: Easy

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Knowledge


65) ________ analytics drives the coupons you get at the grocery store when you use your loyalty card.

a) Descriptive

b) Predictive

c) Prescriptive

d) Useful

Question Title: Testbank 12.65

Difficulty: Medium

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Application


66) _________ analytics answers the question “what could happen?”

a) Descriptive

b) Predictive

c) Prescriptive

d) Useful

Question Title: Testbank 12.66

Difficulty: Easy

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Knowledge


67) You would use linear, multiple, or logistic regression as statistical procedures for __________ analytics.

a) descriptive

b) predictive

c) prescriptive

d) Useful

Question Title: Testbank 12.67

Difficulty: Easy

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Knowledge


68) Simpa Networks provides

a) data analytics software to create a credit score.

b) insurance for impoverished people.

c) solar power to people and small businesses.

d) tracking for water leaks.

Question Title: Testbank 12.68

Difficulty: Easy

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Knowledge


69) Simpa Networks turned to DataKind to

a) develop a credit-scoring model for potential customers.

b) figure out a way to supply solar power inexpensively.

c) identify water leaks in pipes and prevent fraud.

d) predict how likely customers will defect to a competitor.

Question Title: Testbank 12.69

Difficulty: Medium

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Knowledge


70) Simpa Networks uses a __________ model to provide solar power.

a) a-la-carte

b) purchasing

c) rent-to-own

d) subscription

Question Title: Testbank 12.70

Difficulty: Hard

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Evaluation


71) The National Basketball Association’s first analytics system, ______, focused on _____.

a) CourtVision; defense

b) CourtVision; offense

c) Stats; defense

d) Stats; offense

Question Title: Testbank 12.71

Difficulty: Easy

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Knowledge


72) The ________ defines the shift to analytics in the National Basketball Association.

a) free throw

b) long-range two-point jump shot

c) mid-range shot

d) three-point shot

Question Title: Testbank 12.72

Difficulty: Medium

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Knowledge


73) ______ analytics require _______ analytics.

a) Descriptive; predictive

b) Descriptive; prescriptive

c) Predictive; prescriptive

d) Prescriptive; predictive

Question Title: Testbank 12.73

Difficulty: Medium

Section Reference 1: 12.5 Prescriptive Analytics

Learning Objective 1: Provide a definition and a use case example for prescriptive analytics.

Bloomcode: Knowledge


74) _______ are/is NOT a statistical tool for prescriptive analytics.

a) Data mining

b) Decision trees

c) Optimization

d) Simulation

Question Title: Testbank 12.74

Difficulty: Easy

Section Reference 1: 12.5 Prescriptive Analytics

Learning Objective 1: Provide a definition and a use case example for prescriptive analytics.

Bloomcode: Knowledge


75) _______ analytics answers the question “what should we do”.

a) Descriptive

b) Predictive

c) Prescriptive

d) Useful

Question Title: Testbank 12.75

Difficulty: Easy

Section Reference 1: 12.5 Prescriptive Analytics

Learning Objective 1: Provide a definition and a use case example for prescriptive analytics.

Bloomcode: Knowledge


76) You would use optimization or simulation for ______ analytics.

a) descriptive

b) predictive

c) prescriptive

d) useful

Question Title: Testbank 12.76

Difficulty: Easy

Section Reference 1: 12.5 Prescriptive Analytics

Learning Objective 1: Provide a definition and a use case example for prescriptive analytics.

Bloomcode: Knowledge


77) _________ is a capability of dashboards that gives the user the ability to go to details at several levels by a series of menus or by clicking on a portion of the screen that can be expanded.

a) CSF

b) Drill down

c) Exception reporting

d) Trend analysis

Question Title: Testbank 12.77

Difficulty: Easy

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Knowledge


78) _________ is a capability of dashboards that are specific measures of CSFs.

a) Exception reporting

b) KPI

c) Status access

d) Trend analysis

Question Title: Testbank 12.78

Difficulty: Easy

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Knowledge


79) _______ is a capability of dashboards that reflect the latest data available on KPIs or some other metric often in real time.

a) Drill down

b) Exception reporting

c) Status access

d) Trend analysis

Question Title: Testbank 12.79

Difficulty: Easy

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Knowledge


80) _______ is a capability of dashboards that highlights deviations larger than certain thresholds.

a) CSF

b) Drill down

c) Exception reporting

d) Trend analysis

Question Title: Testbank 12.80

Difficulty: Easy

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Knowledge


81) You are looking at a sales report from last month. You notice one salesperson’s numbers are much lower than the rest, so you click on that person’s name to get more details on the products they sold last month. You are using the _______ feature of a dashboard.

a) CSF

b) drill down

c) exception reporting

d) trend analysis

Question Title: Testbank 12.81

Difficulty: Medium

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Application


82) ______ is an example of a CSF.

a) Adding a new location in Mexico

b) Improving customer satisfaction

c) Providing a 2% cost-of-living salary increase

d) Selling 10% more widgets

Question Title: Testbank 12.82

Difficulty: Medium

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Application


83) Dashboards evolved from

a) enterprise resource planning systems.

b) executive information systems.

c) functional area information systems.

d) transaction processing systems.

Question Title: Testbank 12.83

Difficulty: Medium

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Analysis


84) You are an executive working for a Fortune 500 company. You want to see CSFs, ROI, NPV, and other financial information. You would look at the ________ wall in the Management Cockpit.

a) black

b) blue

c) red

d) white

Question Title: Testbank 12.84

Difficulty: Medium

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Application


85) You are an executive working for a Fortune 500 company. You want to see how your company is performing compared to other businesses in your industry and you want to see how your marketing campaigns are performing. You would look at the ________ wall in the Management Cockpit.

a) black

b) blue

c) red

d) white

Question Title: Testbank 12.85

Difficulty: Medium

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Application


86) You are an executive working for a Fortune 500 company. You want to see how each factory floor worker is performing compared to every other worker. You would look at the ________ wall in the Management Cockpit.

a) black

b) blue

c) red

d) white

Question Title: Testbank 12.86

Difficulty: Medium

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Application


87) You are an executive working for a Fortune 500 company. You want to see the status report on your strategic project that extends your business to China. You would look at the ________ wall in the Management Cockpit.

a) black

b) blue

c) red

d) white

Question Title: Testbank 12.87

Difficulty: Medium

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Application


88) GIS is a computer-based system for capturing, integrating, manipulating, and displaying data using

a) analytics.

b) dashboards.

c) digitized maps.

d) solar energy.

Question Title: Testbank 12.88

Difficulty: Easy

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Knowledge


Question type: True/False


89) Stitch Fix’s business model is based on offering customers the most selection so that they can make the best choice in fashion.

Difficulty: Medium

Section Reference: Opening Case

Learning Objective: 12.1

Bloomcode: Analysis

Standard: AACSB Technology


90) Experts argue business analytics and business intelligence should be used interchangeably.

Question Title: Testbank 12.90

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1:Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


91) All organizational information systems support decision making.

Question Title: Testbank 12.91

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


92) Only large organizations use business analytics applications.

Question Title: Testbank 12.92

Difficulty: Easy

Section Reference 1: 12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


93) You can’t return to previous stages of the IDC, so it is really important to do a good job the first time.

Question Title: Testbank 12.93

Difficulty: Easy

Section Reference 1:12.1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


94) You have to go through every step of the IDC every time for every problem.

Question Title: Testbank 12.94

Difficulty: Easy

Section Reference 1: 12. 1Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


95) Lower-level managers typically handle strategic planning decisions.

Question Title: Testbank 12.95

Difficulty: Easy

Section Reference 1: 12. 1Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


96) Middle managers typically handle management control decisions and semi-structured tasks.

Question Title: Testbank 12.96

Difficulty: Medium

Section Reference 1: 12. 1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Analysis


97) Senior executives typically handle strategic planning decisions.

Question Title: Testbank 12.97

Difficulty: Easy

Section Reference 1: 12. 1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


98) Data marts support the development of one or a few related analytics applications.

Question Title: Testbank 12.98

Difficulty: Medium

Section Reference 1: 12.2 The Business Analytics Process

Learning Objective 1: Describe each phase of the business analytics process.

Bloomcode: Analysis


99) The entire business analytics process starts with a business problem or organizational “pain point”.

Question Title: Testbank 12.99

Difficulty: Easy

Section Reference 1: 12.2 The Business Analytics Process

Learning Objective 1: Describe each phase of the business analytics process.

Bloomcode: Knowledge


100) Oracle is the most popular and common business analytics tool.

Question Title: Testbank 12.100

Difficulty: Easy

Section Reference 1: 12.2 The Business Analytics Process

Learning Objective 1: Describe each phase of the business analytics process.

Bloomcode: Knowledge


101) Business analytics vendors typically design their software so that it interfaces with Excel.

Question Title: Testbank 12.101

Difficulty: Easy

Section Reference 1: 12.2 The Business Analytics Process

Learning Objective 1: Describe each phase of the business analytics process.

Bloomcode: Knowledge


102) Data reduction is the conversion of raw information into a smaller amount of more useful data.

Question Title: Testbank 12.102

Difficulty: Medium

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


103) Affinity analysis is a data mining application that discovers co-occurrence relationships among activities performed by specific individuals or groups.

Question Title: Testbank 12.103

Difficulty: Easy

Section Reference 1: 12.2 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


104) Esurance spent more money on their prescriptive analytics system than they save each year.

Question Title: Testbank 12.104

Difficulty: Easy

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


105) About one-third of water distributed by utilities around the world is lost to leaks, so the ability to detect leaks is critical.

Question Title: Testbank 12.105

Difficulty: Medium

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


106) Physicians collect an enormous amount of data about their patients. Most of these data are logged into electronic medical records.

Question Title: Testbank 12.106

Difficulty: Easy

Section Reference 1: Descriptive Analytics

Learning Objective 1: IT’s About Business 12.1Bloomcode: Comprehension


107) The purpose of prescriptive analytics is to tell decision makers what will happen in the future.

Question Title: Testbank 12.107

Difficulty: Medium

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Analysis


108) Data mining is a statistical tool for descriptive and predictive analytics.

Question Title: Testbank 12.108

Difficulty: Easy

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Knowledge


109) Simpa Networks hired DataKind to help them find an optimal mix of customers.

Question Title: Testbank 12.109

Difficulty: Easy

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Knowledge


110) Analytics in the National Basketball Association is a mapping and data visualization challenge.

Question Title: Testbank 12.110

Difficulty: Medium

Section Reference 1: 12.4 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Knowledge


111) Prescriptive analytics require predictive analytics with one additional component: actionable data.

Question Title: Testbank 12.111

Difficulty: Medium

Section Reference 1: 12.5 Prescriptive Analytics

Learning Objective 1: Provide a definition and a use case example for prescriptive analytics.

Bloomcode: Analysis


112) Predictive analytics require prescriptive analytics with two additional components: actionable data and a feedback system that tracks the outcome produced by the action taken.

Question Title: Testbank 12.112

Difficulty: Easy

Section Reference 1: 12.5 Prescriptive Analytics

Learning Objective 1: Provide a definition and a use case example for prescriptive analytics.

Bloomcode: Knowledge


113) A dashboard is an application of the management cockpit.

Question Title: Testbank 12.113

Difficulty: Easy

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Knowledge


114) The Management Cockpit is a dashboard used by executives and board members.

Question Title: Testbank 12.114

Difficulty: Easy

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Knowledge


115) The Management Cockpit has two walls for different business issues that are important to executives: finances and competitive advantage.

Question Title: Testbank 12.115

Difficulty: Easy

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Knowledge


Question type: Text Entry


116) Business _______________ has been defined as a broad category of applications, technologies, and processes for gathering, storing, accessing, and analyzing data to help business users make better decisions.

Question Title: Testbank 12.116

Difficulty: Easy

Section Reference 1: 12. 1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


117) Business intelligence has been defined as a broad category of _____________________ ______________________________________ for gathering, storing, accessing, and analyzing data to help business users make better decisions.

Question Title: Testbank 12.117

Difficulty: Medium

Section Reference 1: 12. 1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


118) ________________ is a process by which an organization achieves its goals through the use of resources.

Question Title: Testbank 12.118

Difficulty: Easy

Section Reference 1: 12. 1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


119) Management is a process by which an organization achieves its goals through the use of ___________.

Question Title: Testbank 12.119

Difficulty: Easy

Section Reference 1: 12. 1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge


120) The IDC created by Herbert Simon stands for ______________.

Question Title: Testbank 12.120

Difficulty: Easy

Section Reference 1: 12. 1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Knowledge

121) Business __________________ is the process of developing actionable decisions or recommendations for actions based on insights generated from historical data.

Question Title: Testbank 12.121

Difficulty: Easy

Section Reference 1: 12.2 The Business Analytics Process

Learning Objective 1: Describe each phase of the business analytics process.

Bloomcode: Knowledge


122) Business analytics is the process of developing actionable decisions or recommendations for actions based on insights generated from ______________ data.

Question Title: Testbank 12.122

Difficulty: Hard

Section Reference 1: 12.2 The Business Analytics Process

Learning Objective 1: Describe each phase of the business analytics process.

Bloomcode: Evaluation


123) ______ is the most popular and common business analytics tool.

Question Title: Testbank 12.123

Difficulty: Easy

Section Reference 1: 12.2 The Business Analytics Process

Learning Objective 1: Describe each phase of the business analytics process.

Bloomcode: Knowledge


124) ______________________ is the process of converting raw data into a smaller amount of more useful information.

Question Title: Testbank 12.124

Difficulty: Medium

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


125) _____________ analytics summarize what has happened in the past and allow decision makers to learn from past behaviors.

Question Title: Testbank 12.125

Difficulty: Easy

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Knowledge


126) ________ analytics examines recent and historical data to detect patterns and predict future outcomes and trends.

Question Title: Testbank 12.126

Difficulty: Easy

Section Reference 1: 12.3 Predictive Analytics

Learning Objective 1: Provide a definition and a use case example for predictive analytics.

Bloomcode: Knowledge


127) _____ analytics go beyond descriptive and predictive models by recommending one or more courses of action and showing the likely outcome of each decision.

Question Title: Testbank 12.127

Difficulty: Easy

Section Reference 1: 12.4 Prescriptive Analytics

Learning Objective 1: Provide a definition and a use case example for prescriptive analytics.

Bloomcode: Knowledge


128) A _____________ provides easy access to timely information and direct access to management reports.

Question Title: Testbank 12.128

Difficulty: Easy

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Bloomcode: Knowledge


Question Type: Essay


129) Suppose someone posted something inappropriate about you online. How would you follow the IDC to address this problem?

Question Title: Testbank 12.129

Difficulty: Medium

Section Reference 1: 12. 1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Application


130) What trends make decision making so difficult? How does technology help with this?

Question Title: Testbank 12.1130

Difficulty: Medium

Section Reference 1: 12. 1 Managers and Decision Making

Learning Objective 1: Use a decision support framework to demonstrate how technology supports managerial decision making at each phase of the decision-making process.

Bloomcode: Analysis


131) There are three specific analytics targets that represent different levels of change. List and describe these targets. If you owned a small organization, what target would you use and why? Now assume you are the CEO of a large organization; what target would you use and why?

Question Title: Testbank 12.131

Difficulty: Medium

Section Reference 1: 12.2 The Business Analytics Process

Learning Objective 1: Describe each phase of the business analytics process.

Bloomcode: Application


132) Suppose you want to know why your car sales have declined but your truck sales have increased over the last three years. What type of analytics is this? List and describe the statistical tools you could use to analyze the problem. Explain which one you would choose and why.

Question Title: Testbank 12.132

Difficulty: Medium

Section Reference 1: 12.3 Descriptive Analytics

Learning Objective 1: Provide a definition and a use case example for descriptive analytics.

Bloomcode: Application


133) List and describe the capabilities of dashboards. Assuming you are the CEO of Uber, draw a dashboard that you would like to see.

Question Title: Testbank 12.133

Difficulty: Medium

Section Reference 1: 12.6 Presentation Tools

Learning Objective 1: Describe two examples of presentation tools.

Hint: Think about what kind of information you would want to see to make decisions as a CEO (hiring drivers, cities to make your service available, etc.).

Bloomcode: Application