Business intelligence And Analytics System For Decision Support 10th Edition by Sharda – Test Bank

Description

Business intelligence And Analytics System For Decision Support 10th Edition by Sharda – Test Bank

 Sample Questions

Instant Download With Answers

Business Intelligence and Analytics: Systems for Decision Support, 10e (Sharda)

Chapter 2   Foundations and Technologies for Decision Making

 

1) When HP approaches problem-solving, the first step in solving business problems is building a model that enables decision makers to develop a good understanding of the problem.

Answer:  FALSE

Diff: 2     Page Ref: 38

 

2) In a decision making environment, continuous change always validates the assumptions of the decision makers.

Answer:  FALSE

Diff: 1     Page Ref: 40

 

3) The most important feature of management support systems is the computational efficiency involved in making a decision.

Answer:  FALSE

Diff: 2     Page Ref: 41

 

4) Web-based decision support systems can provide support to both individuals and groups that act in a decision-making capacity.

Answer:  TRUE

Diff: 1     Page Ref: 42

 

5) Single decision makers rarely face decisions with multiple objectives in organizations and so are not the focus of data analytics tools.

Answer:  FALSE

Diff: 3     Page Ref: 42

 

6) The design phase of decision making is where the decision maker examines reality and identifies and defines the problem.

Answer:  FALSE

Diff: 2     Page Ref: 43

 

7) Only after the failed implementation of a decision can the decision maker return a prior stage of decision making.

Answer:  FALSE

Diff: 3     Page Ref: 43

 

8) Web-based collaboration tools (e.g., GSS) can assist in multiple stages of decision making, not just the intelligence phase.

Answer:  TRUE

Diff: 2     Page Ref: 44

 

 

9) Uncovering the existence of a problem can be achieved through monitoring and analyzing of the organization’s productivity level. The derived measurements of productivity are based on real data.

Answer:  TRUE

Diff: 2     Page Ref: 45

10) Qualitative elements of a problem cannot be incorporated into formal decision models, so one can only seek to minimize their impact.

Answer:  FALSE

Diff: 2     Page Ref: 46

 

11) Since the business environment involves considerable uncertainty, a manager cannot use modeling to estimate the risks resulting from specific actions.

Answer:  FALSE

Diff: 3     Page Ref: 47

 

12) A normative model examines all the possible alternatives in order to prove that the one selected is the best.

Answer:  TRUE

Diff: 2     Page Ref: 49

 

13) Since a descriptive model checks the performance of the system for only a subset of all possible alternatives, there is no guarantee that a selected alternative will be optimal.

Answer:  TRUE

Diff: 2     Page Ref: 50-51

 

14) Generating alternatives manually is often necessary in the model-building process. The best option for the decision makers is to generate as many of these alternatives as is conceivable.

Answer:  FALSE

Diff: 2     Page Ref: 52

 

15) Generally speaking, people intuitively estimate risk quite accurately.

Answer:  FALSE

Diff: 1     Page Ref: 55-56

 

16) A data warehouse can support the intelligence phase of decision making by continuously monitoring both internal and external information, looking for early signs of problems and opportunities through a Web-based enterprise information portal or dashboard.

Answer:  TRUE

Diff: 1     Page Ref: 57

 

17) Business intelligence systems typically support solving a certain problem or evaluate an opportunity, while decision support systems monitor situations and identify problems and/or opportunities, using analytic methods.

Answer:  FALSE

Diff: 2     Page Ref: 59

 

18) Artificial intelligence-based DSS fall into this category of document-driven DSS.

Answer:  FALSE

Diff: 2     Page Ref: 62

 

19) The DSS component that includes the financial, statistical, management science, or other quantitative models is called the model management subsystem.

Answer:  TRUE

Diff: 2     Page Ref: 66

20) Knowledge-based management subsystems provide intelligence to augment the decision maker’s own intelligence.

Answer:  TRUE

Diff: 2     Page Ref: 69

 

21) The HP Case illustrates that after analytics are chosen to solve a problem, building a new decision model from scratch or purchasing one may not always be the best approach. Why is that?

1. A) Decision models should never be purchased, only developed in house.
2. B) A related tool requiring slight modification may already exist.
3. C) CIOs are more likely to allocate funds to new development.
4. D) Analytic models work better when they are built from scratch or purchased.

Answer:  B

Diff: 3     Page Ref: 38

 

22) Groupthink in a decision-making environment occurs when

1. A) group members all use the same analytic tools without having a choice.
2. B) group members accept the same timeframe for problem solving without complaining.
3. C) group members all accept a course of action without thinking for themselves.
4. D) group members are all working together for the firm’s success.

Answer:  C

Diff: 3     Page Ref: 40

 

23) All of the following statements about decision style are true EXCEPT

1. A) autocratic styles are authority-based.
2. B) decision styles are consistent among top managers.
3. C) heuristic styles can also be democratic.
4. D) decision styles may vary among lower-level managers.

Answer:  B

Diff: 3     Page Ref: 41-42

 

24) A search for alternatives occurs in which phase of the decision making/action model?

1. A) the design phase
2. B) the intelligence phase
3. C) the choice phase
4. D) the implementation phase

Answer:  A

Diff: 2     Page Ref: 43

 

25) All of the following are benefits of using models for decision support EXCEPT

1. A) it is easier to manipulate a model than a real system.
2. B) you can find out probable outcomes of an action before actually taking it.
3. C) using well-designed models always guarantees you success in implementation.
4. D) the cost of a model is usually much lower than manipulating the system in implementation.

Answer:  C

Diff: 2     Page Ref: 47

26) In the design phase of decision making, selecting a principle of choice or criteria means that

1. A) if an objective model is used with hard data, all decision makers will make the same choice.
2. B) risk acceptability is a subjective concept and plays little part in modeling.
3. C) using well-designed models guarantees you success in real life.
4. D) optimality is not the only criterion for acceptable solutions.

Answer:  D

Diff: 2     Page Ref: 49

 

27) What form of decision theory assumes that decision makers are rational beings who always seek to strictly maximize economic goals?

1. A) the theory of bounded rationality
2. B) normative decision theory
3. C) satisficing decision theory
4. D) human optimal decision theory

Answer:  B

Diff: 3     Page Ref: 49

 

28) When an Accounts Payable department improves their information system resulting in faster payments to vendors, without the Accounts Receivable Department doing the same, leading to a cash flow crunch, what can we say happened in decision-theoretic terms?

1. A) optimization
2. B) profit minimization
3. C) suboptimization
4. D) cash flow problems

Answer:  C

Diff: 3     Page Ref: 49-50

 

29) All of the following statements about risk in decision making are correct EXCEPT

1. A) all business decisions incorporate an element of risk.
2. B) decision makers frequently measure risk and uncertainty incorrectly.
3. C) methodologies are available for handling extreme uncertainty.
4. D) most decision makers are pessimistic about decision outcomes.

Answer:  D

Diff: 3     Page Ref: 53

 

 

30) The Web can play a significant role in making large amounts of information available to decision makers. Decision makers must be careful that this glut of information does not

1. A) increase their enthusiasm for data available on the web.
2. B) take on the same credibility of internally-generated data.
3. C) take on the same role as human intuition.
4. D) detract from the quality and speed of decision making.

Answer:  D

Diff: 3     Page Ref: 57

31) All of the following statements about the decision implementation phases are true EXCEPT

1. A) implementation is every bit as important as the decision itself.
2. B) employees need only the decisions from the CEO, not the rationale.
3. C) ERP, CRP, and BPM tools can all help track decision implementation.
4. D) ES and KMS can help in training and support for decision implementation.

Answer:  B

Diff: 3     Page Ref: 58-59

 

32) For DSS, why are semistructured or unstructured decisions the main focus of support?

1. A) There are many more unstructured and semistructured decisions than structured in organizations.
2. B) MIS staff prefer to work on solving unstructured and semistructured decisions.
3. C) Unstructured and semistructured decisions are the easiest to solve.
4. D) They include human judgment, which is incorporated into DSS.

Answer:  D

Diff: 3     Page Ref: 59

 

33) What class of DSS incorporates simulation and optimization?

1. A) model-driven DSS
2. B) data-driven DSS
3. C) communications-driven/Group DSS
4. D) knowledge-driven DSS

Answer:  A

Diff: 3     Page Ref: 62-63

 

34) When a DSS is built, used successfully and integrated into the company’s business processes, it was most likely built for a(n)

1. A) recurrent decision.
2. B) one-off decision.
3. C) unimportant decision.
4. D) ambiguous decision.

Answer:  A

Diff: 3     Page Ref: 63

 

 

35) The fact that many organizations share many similar problems means that in sourcing a DSS, it is often wiser to acquire a(n)

1. A) ready-made DSS.
2. B) custom-made DSS.
3. C) offshored DSS.
4. D) consultant-developed DSS.

Answer:  A

Diff: 2     Page Ref: 63-64

 

36) The software that manages the DSS database and enables relevant data to be accessed by DSS application programs is called

1. A) KWS.
2. B) ERP.
3. C) DBMS.
4. D) CRM.

Answer:  C

Diff: 2     Page Ref: 65

37) The model management subsystem provides the system’s analytical capabilities and appropriate software management. Which of the following is NOT an element of the model management subsystem?

1. A) model base
2. B) MBMS
3. C) DBMS
4. D) model execution, integration, and command processor

Answer:  C

Diff: 2     Page Ref: 66

 

38) While Microsoft Excel can be an efficient tool for developing a DSS, compared to using a programming language like C++, a shortcoming of Excel is

1. A) it cannot be used effectively for small or medium sized problems.
2. B) Excel is not widely understood compared to a language like C++.
3. C) it is not widely available for purchase.
4. D) errors can creep into formulas somewhat easily.

Answer:  D

Diff: 2     Page Ref: 67

 

39) What type of user interface has been recognized as an effective DSS GUI because it is familiar, user friendly, and a gateway to almost all sources of necessary information and data?

1. A) ASP.net
2. B) Web browsers
3. C) visual basic interfaces
4. D) mainframe interfaces

Answer:  B

Diff: 2     Page Ref: 68

 

 

40) The user communicates with and commands the DSS through the user interface subsystem. Researchers assert that some of the unique contributions of DSS are derived from

1. A) the Web browser.
2. B) the user being considered part of the system.
3. C) some DSS user interfaces utilizing natural-language input (i.e., text in a human language).
4. D) the intensive interaction between the computer and the decision maker.

Answer:  D

Diff: 3     Page Ref: 68

 

41) At two opposite ends of the spectrum are autocratic and ________ decision styles.

Answer:  democratic

Diff: 1     Page Ref: 41

 

42) ________ in decision making involves scanning the environment, either intermittently or continuously.

Answer:  Intelligence

Diff: 2     Page Ref: 44

 

43) The elevators case study shows that correct problem ________ is important in decision-making.

Answer:  identification

Diff: 2     Page Ref: 45

44) ________ is the conceptualization of a problem in an attempt to place it in a definable category, possibly leading to a standard solution approach.

Answer:  Problem classification

Diff: 2     Page Ref: 46

 

45) In creating a normative model, a decision maker examines all the alternatives to prove that the one selected is indeed the best, and is what the person would normally want. This process is basically known as ________.

Answer:  optimization

Diff: 2     Page Ref: 49

 

46) A(n) ________ is a typically mathematically based model that describes things as they are or as they are believed to be.

Answer:  descriptive model

Diff: 1     Page Ref: 50

 

47) A(n) ________ map can help a decision maker sketch out the important qualitative factors and their causal relationships in a messy decision-making situation.

Answer:  cognitive

Diff: 2     Page Ref: 51

 

 

48) The best decision makers accurately estimate the ________ associated with decision alternatives to aid their selection.

Answer:  risk

Diff: 2     Page Ref: 53

 

49) The ________ phase involves putting a recommended solution to work, not necessarily implementing a computer system.

Answer:  implementation

Diff: 2     Page Ref: 55

 

50) Early definitions of a(n) ________ identified it as a system intended to support managerial decision makers in semistructured and unstructured decision situations.

Answer:  decision support system (DSS)

Diff: 2     Page Ref: 59

 

51) DSS applications have been classified in several different ways. ________-driven DSS rely on knowledge coding, analysis, search, and retrieval for decision support.

Answer:  Document

Diff: 3     Page Ref: 62

 

52) DSS developed around optimization or simulation models and incorporate model formulation, maintenance, and management in distributed computing environments, are known as ________-driven DSS.

Answer:  model

Diff: 2     Page Ref: 62-63

 

53) A DSS application can employ a data management subsystem, a model management subsystem, a user interface subsystem, and a(n) ________.

Answer:  knowledge-based management subsystem

Diff: 3     Page Ref: 64

54) The model management subsystem includes financial, statistical, management science, and other quantitative models that provide the system’s analytical capabilities plus appropriate software management. This software is often called a(n) ________.

Answer:  model base management system (MBMS)

Diff: 2     Page Ref: 65-66

 

55) In the Station Casinos case, the decision support system brought about benefits from being able to capture, analyze and segment ________.

Answer:  customers

Diff: 1     Page Ref: 66

 

56) Because DSS deal with semistructured or unstructured problems, it is often necessary to customize models, using programming tools and languages. For small and medium-sized DSS or for less complex ones, ________ software is usually used.

Answer:  spreadsheet

Diff: 2     Page Ref: 67

 

57) The user communicates with and commands the DSS through the ________ subsystem.

Answer:  user interface

Diff: 2     Page Ref: 68

 

58) The knowledge-based management subsystem can be interconnected with the organization’s knowledge repository (part of a knowledge management system [KMS]), which is sometimes called the ________.

Answer:  organizational knowledge base

Diff: 2     Page Ref: 69-70

 

59) The Watson Question Answering computing platform uses machine ________ to acquire vast amounts of new medical knowledge.

Answer:  learning

Diff: 2     Page Ref: 70

 

60) Geographical Information Systems (GIS) can be readily integrated with other, more traditional ________ components and tools for improved decision making.

Answer:  decision support system (DSS)

Diff: 2     Page Ref: 72

 

61) Olavson and Fry (2008) have worked on many spreadsheet models for assisting decision makers at HP and have identified several lessons from both their successes and their failures when it comes to constructing and applying spreadsheet-based tools. How do they define a tool?

Answer:  They define a tool as “a reusable, analytical solution designed to be handed off to nontechnical end users to assist them in solving a repeated business problem.”

Diff: 3     Page Ref: 38

 

62) According to Simon (1977), managerial decision making is synonymous with the entire management process. Give a working definition of decision making.

Answer:  Decision making is a process of choosing among two or more alternative courses of action for the purpose of attaining one or more goals.

Diff: 2     Page Ref: 41

63) Computer support can be provided at a broad level, enabling members of whole departments, divisions, or even entire organizations to collaborate online. Name some of the various systems that have evolved from computer support.

Answer:  Computer support has evolved over the past few years into enterprise information systems (EIS) and includes group support systems (GSS), enterprise resource management (ERM)/enterprise resource planning (ERP), supply chain management (SCM), knowledge management systems (KMS), and customer relationship management (CRM) systems.

Diff: 2     Page Ref: 42

 

 

64) Name Simon’s four phases of decision making and mention how they are impacted by the web.

Answer:

• Intelligence

– Access to information to identify problems and opportunities from internal and external data sources

– Access to analytics methods to identify opportunities

– Collaboration through group support systems (GSS) and knowledge management systems (KMS)

• Design

– Access to data, models, and solution methods

– Use of online analytical processing (OLAP), data mining, and data warehouses

– Collaboration through GSS and KMS

– Similar solutions available from KMS

• Choice

– Access to methods to evaluate the impacts of proposed solutions

• Implementation

– Web-based collaboration tools (e.g., GSS) and KMS, which can assist in implementing decisions

– Tools, which monitor the performance of e-commerce and other sites, including intranets, extranets, and the Internet

Diff: 3     Page Ref: 44

 

65) A major characteristic of a DSS and many BI tools (notably those of business analytics) is the inclusion of at least one model. How does the text describe a model?

Answer:  A model is a simplified representation or abstraction of reality. It is usually simplified because reality is too complex to describe exactly and because much of the complexity is actually irrelevant in solving a specific problem.

Diff: 2     Page Ref: 47

 

66) According to Simon (1977), most human decision making, whether organizational or individual, involves a willingness to settle for a satisfactory solution, “something less than the best.” This is called satisficing. How does a decision maker go about satisficing?

Answer:  When satisficing, the decision maker sets up an aspiration, a goal, or a desired level of performance and then searches the alternatives until one is found that achieves this level.

Diff: 2     Page Ref: 51-52

67) A scenario is a statement of assumptions about the operating environment of a particular

system at a given time; that is, it is a narrative description of the decision-situation setting. What does a scenario describe, and what may it also provide?

Answer:  A scenario describes the decision and uncontrollable variables and parameters for a specific modeling situation. It may also provide the procedures and constraints for the modeling.

Diff: 2     Page Ref: 54

 

 

68) Relate four specific technologies that support all phases of the decision making process, and describe what they provide.

Answer:  Databases, data marts, and especially data warehouses are important technologies in supporting all phases of decision making. They provide the data that drive decision making.

Diff: 1     Page Ref: 56

 

69) A DSS is typically built to support the solution of a certain problem or to evaluate an opportunity. Describe three key characteristics and capabilities of DSS.

Answer:

1. Support for decision makers, mainly in semistructured and unstructured situations, by bringing together human judgment and computerized information. Such problems cannot be solved (or cannot be solved conveniently) by other computerized systems or through use of standard quantitative methods or tools. Generally, these problems gain structure as the DSS is developed. Even some structured problems have been solved by DSS.
2. Support for all managerial levels, ranging from top executives to line managers.
3. Support for individuals as well as groups. Less-structured problems often require the involvement of individuals from different departments and organizational levels or even from different organizations. DSS support virtual teams through collaborative Web tools. DSS have been developed to support individual and group work, as well as to support individual decision making and groups of decision makers working somewhat independently.
4. Support for interdependent and/or sequential decisions. The decisions may be made once, several times, or repeatedly.
5. Support in all phases of the decision-making process: intelligence, design, choice, and implementation.
6. Support for a variety of decision-making processes and styles.
7. The decision maker should be reactive, able to confront changing conditions quickly, and able to adapt the DSS to meet these changes. DSS are flexible, so users can add, delete, combine, change, or rearrange basic elements. They are also flexible in that they can be readily modified to solve other, similar problems.

Diff: 3     Page Ref: 60

70) Name and give a brief description of each of the components of a DSS application.

Answer:

• A data management subsystem, which includes a database that contains relevant data for the situation
• A model management subsystem, which is the component that includes financial, statistical, management science, or other quantitative models that provide the system’s analytical capabilities and appropriate software management
• A user interface subsystem, through which the user communicates with and commands the DSS, and which a user is considered a part of
• A knowledge-based management subsystem, which provides intelligence to augment the decision maker’s own.

Diff: 3     Page Ref: 65-70

 

 

Chapter 4   Business Reporting, Visual Analytics, and Business Performance Management

 

1) The WebFOCUS BI platform in the Travel and Transport case study decreased clients’ reliance on the IT function when seeking system reports.

Answer:  TRUE

Diff: 1     Page Ref: 137

 

2) The dashboard for the WebFOCUS BI platform in the Travel and Transport case study required client side software to operate.

Answer:  FALSE

Diff: 2     Page Ref: 138

 

3) Data is the contextualization of information, that is, information set in context.

Answer:  FALSE

Diff: 1     Page Ref: 139

 

4) The main difference between service level agreements and key performance indicators is the audience.

Answer:  TRUE

Diff: 2     Page Ref: 143

 

5) The balanced scorecard is a type of report that is based solely on financial metrics.

Answer:  FALSE

Diff: 1     Page Ref: 143

 

6) The data storage component of a business reporting system builds the various reports and hosts them for, or disseminates them to users. It also provides notification, annotation, collaboration, and other services.

Answer:  FALSE

Diff: 2     Page Ref: 144

 

7) In the FEMA case study, the BureauNet software was the primary reason behind the increased speed and relevance of the reports FEMA employees received.

Answer:  TRUE

Diff: 2     Page Ref: 145

 

8) Google Maps has set new standards for data visualization with its intuitive Web mapping software.

Answer:  TRUE

Diff: 2     Page Ref: 149

 

9) There are basic chart types and specialized chart types. A Gantt chart is a specialized chart type.

Answer:  TRUE

Diff: 2     Page Ref: 152

10) Visualization differs from traditional charts and graphs in complexity of data sets and use of multiple dimensions and measures.

Answer:  TRUE

Diff: 2     Page Ref: 155-156

 

11) When telling a story during a presentation, it is best to avoid describing hurdles that your character must overcome, to avoid souring the mood.

Answer:  FALSE

Diff: 2     Page Ref: 157

 

12) For best results when deploying visual analytics environments, focus only on power users and management to get the best return on your investment.

Answer:  FALSE

Diff: 2     Page Ref: 158

 

13) Information density is a key characteristic of performance dashboards.

Answer:  TRUE

Diff: 2     Page Ref: 160

 

14) In the Dallas Cowboys case study, the focus was on using data analytics to decide which players would play every week.

Answer:  FALSE

Diff: 2     Page Ref: 161

 

15) One comparison typically made when data is presented in business intelligence systems is a comparison against historical values.

Answer:  TRUE

Diff: 1     Page Ref: 162

 

16) The best key performance indicators are derived independently from the company’s strategic goals to enable developers to “think outside of the box.”

Answer:  FALSE

Diff: 3     Page Ref: 166

 

17) The BPM development cycle is essentially a one-shot process where the requirement is to get it right the first time.

Answer:  FALSE

Diff: 2     Page Ref: 167

 

18) With key performance indicators, driver KPIs have a significant effect on outcome KPIs, but the reverse is not necessarily true.

Answer:  TRUE

Diff: 2     Page Ref: 171

 

 

19) With the balanced scorecard approach, the entire focus is on measuring and managing specific financial goals based on the organization’s strategy.

Answer:  FALSE

Diff: 2     Page Ref: 175

20) A Six Sigma deployment can be deemed effective even if the number of defects are not reduced to 3.4 defects per million.

Answer:  FALSE

Diff: 2     Page Ref: 176

 

21) For those executives who do not have the time to go through lengthy reports, the best alternative is the

1. A) last page of the report.
2. B) raw data that informed the report.
3. C) executive summary.
4. D) charts in the report.

Answer:  C

Diff: 2     Page Ref: 140

 

22) All of the following are true about external reports between businesses and the government EXCEPT

1. A) they can include tax and compliance reporting.
2. B) they can be filed nationally or internationally.
3. C) they are standardized for the most part to reduce the regulatory burden.
4. D) their primary focus is government.

Answer:  D

Diff: 2     Page Ref: 140

 

23) Kaplan and Norton developed a report that presents an integrated view of success in the organization called

1. A) metric management reports.
2. B) balanced scorecard-type reports.
3. C) dashboard-type reports.
4. D) visual reports.

Answer:  B

Diff: 2     Page Ref: 143

 

24) Which component of a reporting system contains steps detailing how recorded transactions are converted into metrics, scorecards, and dashboards?

1. A) data supply
2. B) business logic
3. C) extract, transform and load
4. D) assurance

Answer:  B

Diff: 2     Page Ref: 144

 

 

25) Which of the following is LEAST related to data/information visualization?

1. A) information graphics
2. B) scientific visualization
3. C) statistical graphics
4. D) graphic artwork

Answer:  D

Diff: 2     Page Ref: 145

26) The Internet emerged as a new medium for visualization and brought all the following EXCEPT

1. A) worldwide digital distribution of visualization.
2. B) immersive environments for consuming data.
3. C) new forms of computation of business logic.
4. D) new graphics displays through PC displays.

Answer:  C

Diff: 2     Page Ref: 149

 

27) Which kind of chart is described as an enhanced variant of a scatter plot?

1. A) heat map
2. B) bullet
3. C) pie chart
4. D) bubble chart

Answer:  D

Diff: 3     Page Ref: 151

 

28) Which type of visualization tool can be very helpful when the intention is to show relative proportions of dollars per department allocated by a university administration?

1. A) heat map
2. B) bullet
3. C) pie chart
4. D) bubble chart

Answer:  C

Diff: 3     Page Ref: 151

 

29) Which type of visualization tool can be very helpful when a data set contains location data?

1. A) bar chart
2. B) geographic map
3. C) highlight table
4. D) tree map

Answer:  B

Diff: 2     Page Ref: 152

 

 

30) Which type of question does visual analytics seeks to answer?

1. A) Why did it happen?
2. B) What happened yesterday?
3. C) What is happening today?
4. D) When did it happen?

Answer:  A

Diff: 2     Page Ref: 156

 

31) When you tell a story in a presentation, all of the following are true EXCEPT

1. A) a story should make sense and order out of a lot of background noise.
2. B) a well-told story should have no need for subsequent discussion.
3. C) stories and their lessons should be easy to remember.
4. D) the outcome and reasons for it should be clear at the end of your story.

Answer:  B

Diff: 2     Page Ref: 157

32) Benefits of the latest visual analytics tools, such as SAS Visual Analytics, include all of the following EXCEPT

1. A) mobile platforms such as the iPhone are supported by these products.
2. B) it is easier to spot useful patterns and trends in the data.
3. C) they explore massive amounts of data in hours, not days.
4. D) there is less demand on IT departments for reports.

Answer:  C

Diff: 2     Page Ref: 158

 

33) What is the management feature of a dashboard?

1. A) operational data that identify what actions to take to resolve a problem
2. B) summarized dimensional data to analyze the root cause of problems
3. C) summarized dimensional data to monitor key performance metrics
4. D) graphical, abstracted data to monitor key performance metrics

Answer:  A

Diff: 3     Page Ref: 162

 

34) What is the fundamental challenge of dashboard design?

1. A) ensuring that users across the organization have access to it
2. B) ensuring that the organization has the appropriate hardware onsite to support it
3. C) ensuring that the organization has access to the latest web browsers
4. D) ensuring that the required information is shown clearly on a single screen

Answer:  D

Diff: 3     Page Ref: 162

 

 

35) Contextual metadata for a dashboard includes all the following EXCEPT

1. A) whether any high-value transactions that would skew the overall trends were rejected as a part of the loading process.
2. B) which operating system is running the dashboard server software.
3. C) whether the dashboard is presenting “fresh” or “stale” information.
4. D) when the data warehouse was last refreshed.

Answer:  B

Diff: 2     Page Ref: 165

 

36) Dashboards can be presented at all the following levels EXCEPT

1. A) the visual dashboard level.
2. B) the static report level.
3. C) the visual cube level.
4. D) the self-service cube level.

Answer:  C

Diff: 2     Page Ref: 166

 

37) Why is a performance management system superior to a performance measurement system?

1. A) because performance measurement systems are only in their infancy
2. B) because measurement automatically leads to problem solution
3. C) because performance management systems cost more
4. D) because measurement alone has little use without action

Answer:  D

Diff: 3     Page Ref: 172

38) Why is the customer perspective important in the balanced scorecard methodology?

1. A) because dissatisfied customers will eventually hurt the bottom line
2. B) because customers should always be included in any design methodology
3. C) because customers understand best how the firm’s internal processes should work
4. D) because companies need customer input into the design of the balanced scorecard

Answer:  A

Diff: 2     Page Ref: 173

 

39) All of the following statements about balanced scorecards and dashboards are true EXCEPT

1. A) scorecards are less preferred at operational and tactical levels.
2. B) dashboards would be the preferred choice to monitor production quality.
3. C) scorecards are best for real-time tracking of a marketing campaign.
4. D) scorecards are preferred for tracking the achievement of strategic goals.

Answer:  C

Diff: 3     Page Ref: 175

 

 

40) What is Six Sigma?

1. A) a letter in the Greek alphabet that statisticians use to measure process variability
2. B) a methodology aimed at reducing the number of defects in a business process
3. C) a methodology aimed at reducing the amount of variability in a business process
4. D) a methodology aimed at measuring the amount of variability in a business process

Answer:  B

Diff: 2     Page Ref: 176

 

41) A(n) ________ is a communication artifact, concerning business matters, prepared with the specific intention of relaying information in a presentable form.

Answer:  business report

Diff: 2     Page Ref: 135

 

42) Travel and Transport created an online BI self-service system that allowed ________ to access information directly.

Answer:  clients

Diff: 2     Page Ref: 137

 

43) There are only a few categories of business report: informal, ________, and short.

Answer:  formal

Diff: 2     Page Ref: 140

 

44) In the Delta Lloyd Group case study, the ________ is the stage of the reporting process in which consolidated figures are cited, formatted, and described to form the final text of the report.

Answer:  last mile

Diff: 2     Page Ref: 142

 

45) ________ management reports are used to manage business performance through outcome-oriented metrics in many organizations.

Answer:  Metric

Diff: 2     Page Ref: 143

46) In the Blastrac case study, Tableau analytics software was used to replace massive ________ that were loaded with data from multiple ERP systems.

Answer:  spreadsheets

Diff: 2     Page Ref: 146

 

47) ________ charts are useful in displaying nominal data or numerical data that splits nicely

into different categories so you can quickly see comparative results and trends.

Answer:  Bar

Diff: 1     Page Ref: 151

 

48) ________ charts or network diagrams show precedence relationships among the project activities/tasks.

Answer:  PERT

Diff: 1     Page Ref: 152

 

49) ________ are typically used together with other charts and graphs, as opposed to by themselves, and show postal codes, country names, etc.

Answer:  Maps

Diff: 1     Page Ref: 152

 

50) Typical charts, graphs, and other visual elements used in visualization-based applications usually involve ________ dimensions.

Answer:  two

Diff: 2     Page Ref: 155

 

51) Visual analytics is widely regarded as the combination of visualization and ________ analytics.

Answer:  predictive

Diff: 2     Page Ref: 156

 

52) Dashboards present visual displays of important information that are consolidated and arranged on a single ________.

Answer:  screen

Diff: 1     Page Ref: 160

 

53) With dashboards, the layer of information that uses graphical, abstracted data to keep tabs on key performance metrics is the ________ layer.

Answer:  monitoring

Diff: 2     Page Ref: 162

 

54) In the Saudi Telecom company case study, information ________ software allowed managers to see trends and correct issues before they became problems.

Answer:  visualization

Diff: 1     Page Ref: 163

 

55) Performance dashboards enable ________ operations that allow the users to view underlying data sources and obtain more detail.

Answer:  drill-down/drill-through

Diff: 2     Page Ref: 164

56) With a dashboard, information on sources of the data being presented, the quality and currency of underlying data provide contextual ________ for users.

Answer:  metadata

Diff: 2     Page Ref: 165

 

57) Business performance management comprises a ________ set of processes that link strategy to execution with the goal of optimizing business performance.

Answer:  closed-loop

Diff: 2     Page Ref: 167

 

 

58) In the Mace case study, the IBM Cognos software enabled the rapid creation of integrated reports across 60 countries, replacing a large and complex ________.

Answer:  spreadsheet

Diff: 1     Page Ref: 169

 

59) A strategically aligned metric is also known as a key ________.

Answer:  performance indicator

Diff: 2     Page Ref: 171

 

60) The ________ perspective of the organization suggested by the balanced scorecard focuses on business processes and how well they are running.

Answer:  internal business process

Diff: 2     Page Ref: 174

 

61) List and describe the three major categories of business reports.

Answer:

• Metric management reports. Many organizations manage business performance through outcome-oriented metrics. For external groups, these are service-level agreements (SLAs). For internal management, they are key performance indicators (KPIs).
• Dashboard-type reports. This report presents a range of different performance indicators on one page, like a dashboard in a car. Typically, there is a set of predefined reports with static elements and fixed structure, but customization of the dashboard is allowed through widgets, views, and set targets for various metrics.
• Balanced scorecard—type reports. This is a method developed by Kaplan and Norton that attempts to present an integrated view of success in an organization. In addition to financial performance, balanced scorecard—type reports also include customer, business process, and learning and growth perspectives.

Diff: 2     Page Ref: 143

 

62) List five types of specialized charts and graphs.

Answer:

• Histograms
• Gantt charts
• PERT charts
• Geographic maps
• Bullets
• Heat maps
• Highlight tables
• Tree maps

Diff: 2     Page Ref: 151-152

 

63) According to Eckerson (2006), a well-known expert on BI dashboards, what are the three layers of information of a dashboard?

Answer:

1. Monitoring. Graphical, abstracted data to monitor key performance metrics.
2. Analysis. Summarized dimensional data to analyze the root cause of problems.
3. Management. Detailed operational data that identify what actions to take to resolve a problem.

Diff: 2     Page Ref: 162

 

64) List five best practices of dashboard design.

Answer:

• Benchmark key performance indicators with industry standards
• Wrap the dashboard metrics with contextual metadata
• Validate the dashboard design by a usability specialist
• Prioritize and rank alerts/exceptions streamed to the dashboard
• Enrich the dashboard with business users’ comments
• Present information in three different levels
• Pick the right visual construct using dashboard design principles
• Provide for guided analytics

Diff: 2     Page Ref: 165-166

 

65) What are the four processes that define a closed-loop BPM cycle?

Answer:

1. Strategize: This is the process of identifying and stating the organization’s mission, vision, and objectives, and developing plans (at different levels of granularity–strategic, tactical and operational) to achieve these objectives.
2. Plan: When operational managers know and understand the what (i.e., the organizational objectives and goals), they will be able to come up with the how (i.e., detailed operational and financial plans). Operational and financial plans answer two questions: What tactics and initiatives will be pursued to meet the performance targets established by the strategic plan? What are the expected financial results of executing the tactics?
3. Monitor/Analyze: When the operational and financial plans are underway, it is imperative that the performance of the organization be monitored. A comprehensive framework for monitoring performance should address two key issues: what to monitor and how to monitor.
4. Act and Adjust: What do we need to do differently? Whether a company is interested in growing its business or simply improving its operations, virtually all strategies depend on new projects–creating new products, entering new markets, acquiring new customers or businesses, or streamlining some processes.

The final part of this loop is taking action and adjusting current actions based on analysis of problems and opportunities.

Diff: 2     Page Ref: 167-168

 

66) List and describe five distinguishing features of key performance indicators.

Answer:

• Strategy. KPIs embody a strategic objective.
• Targets. KPIs measure performance against specific targets. Targets are defined in strategy, planning, or budgeting sessions and can take different forms (e.g., achievement targets, reduction targets, absolute targets).
• Ranges. Targets have performance ranges (e.g., above, on, or below target).
• Encodings. Ranges are encoded in software, enabling the visual display of performance (e.g., green, yellow, red). Encodings can be based on percentages or more complex rules.
• Time frames. Targets are assigned time frames by which they must be accomplished. A time frame is often divided into smaller intervals to provide performance mileposts.
• Benchmarks. Targets are measured against a baseline or benchmark. The previous year’s results often serve as a benchmark, but arbitrary numbers or external benchmarks may also be used.

Diff: 2     Page Ref: 171

 

67) What are the three nonfinancial objectives of the balanced scorecard?

Answer:

1. Customer. This defines how the organization should appear to its customers if it is to accomplish its vision.
2. Internal business process. This specifies the processes the organization must excel at in order to satisfy its shareholders and customers.
3. Learning and growth. This indicates how an organization can improve its ability to change and improve in order to achieve its vision.

Diff: 2     Page Ref: 174

 

68) Six Sigma rests on a simple performance improvement model known as DMAIC.  What are the steps involved?

Answer:

1. Define. Define the goals, objectives, and boundaries of the improvement activity. At the top level, the goals are the strategic objectives of the company. At lower levels–department or project levels–the goals are focused on specific operational processes.
2. Measure. Measure the existing system. Establish quantitative measures that will yield statistically valid data. The data can be used to monitor progress toward the goals defined in the previous step.
3. Analyze. Analyze the system to identify ways to eliminate the gap between the current performance of the system or process and the desired goal.
4. Improve. Initiate actions to eliminate the gap by finding ways to do things better, cheaper, or faster. Use project management and other planning tools to implement the new approach.
5. Control. Institutionalize the improved system by modifying compensation and incentive systems, policies, procedures, manufacturing resource planning, budgets, operation instructions, or other management systems.

Diff: 2     Page Ref: 176

 

69) What are the basic ingredients of a good collection of performance measures?

Answer:

• Measures should focus on key factors.
• Measures should be a mix of past, present, and future.
• Measures should balance the needs of shareholders, employees, partners, suppliers, and other stakeholders.
• Measures should start at the top and flow down to the bottom.
• Measures need to have targets that are based on research and reality rather than be arbitrary.

Diff: 2     Page Ref: 177

 

70) In the Expedia case study, what three steps were taken to convert drivers of departmental performance into a scorecard?

Answer:

• Deciding how to measure satisfaction. This required the group to determine which measures in the 20 databases would be useful for demonstrating a customer’s level of satisfaction. This became the basis for the scorecards and KPIs.
• Setting the right performance targets. This required the group to determine whether KPI targets had short-term or long-term payoffs.
• Putting data into context. The group had to tie the data to ongoing customer satisfaction projects.

Diff: 2     Page Ref: 178