Chapter 1

Question 1

Analytics

Answer 1

the process of developing actionable decisions or recommendations for actions based on insights generated from historical data

Question 2

Analytics Ecosystem

Answer 2

classification of sectors, technology/solution providers, and industry participants for analytics (analytics flower centered on user organizations)

Question 3

Artificial Intelligence

Answer 3

behavior by a machine that, if performed by a human being, would be called intelligent

Question 4

Augmented Intelligence

Answer 4

an alternative conceptualization of artificial intelligence that focuses on AI’s assistive role, emphasizing the fact that it is designed to enhance human intelligence rather than replace it

Question 5

Big Data Analytics

Answer 5

application of analytics methods and tools to Big Data

Question 6

Business Intelligence (BI)

Answer 6

a conceptual framework for managerial decision support. It combines architecture, databases (or data warehouses), analytical tools, and applications

Question 7

Choice Phase

Answer 7

Simon’s 3 of 4

Solution to the model
Sensitivity analysis
Selection to the best (good)
alternative(s)
Plan for implementation

Verification, Testing of the Proposed Solution

Question 8

Dashboard

Answer 8

a visual presentation of critical data for executives to view. It allows executives to see hot spots in seconds
and explore the situation

Question 9

Data Mining

Answer 9

a process that uses statistical, mathematical,
artificial intelligence, and machine-learning techniques to extract and identify useful information and subsequent knowledge from large databases

Question 10

Decision or Normative Analytics

Answer 10

this is a type of analytics modeling that aims at
identifying the best possible decision from a large set of alternatives (prescriptive analytics)

Question 11

Design Phase

Answer 11

Simon’s 2 of 4

Formulate a model
Set criteria for choice
Search for alternatives
Predict and measure outcomes

Validation of Model

Question 12

Implementation Phase

Answer 12

Simon’s 4 of 4

the phase that involves putting a
recommended solution to work, not necessarily implementing a computer system

involves collecting and analyzing data to learn from the previous decisions and improve the next decision.

Question 13

Intelligence Phase

Answer 13

Simon’s 1 of 4

Organization objectives
Search and scanning procedures
Data collection
Problem identification
Problem ownership
Problem classification
Problem statement

Question 14

Online Analytical Processing (OLAP)

Answer 14

an information system that enables the user, while at a PC, to query the system, conduct an analysis, and so on. The result is generated in
seconds

Question 15

Online Transaction Processing (OLTP)

Answer 15

a transaction system that is primarily responsible for capturing and storing
data related to day-to-day business functions

Question 16

Predictive Analytics

Answer 16

use of tools that help determine the
probable future outcome for an event or the likelihood of a situation occurring. These tools also identify relationships and patterns

Question 17

Prescriptive Analytics

Answer 17

a branch of business analytics that
deals with finding the best possible solution alternative for a given problem

the goal here is to provide a decision or a recommendation for a specific action

Question 18

Structured Problem

Answer 18

a decision situation where a specific set of steps can be followed to make a straightforward decision

Question 19

Semistructured Problem

Answer 19

a category of decision problems
where the decision process has some structure to it but still requires subjective analysis and an iterative approach

Question 20

Unstructured Problem

Answer 20

a decision setting where the steps
are not entirely fixed or structured, but may require subjective considerations

Question 21

Operational Control

Answer 21

the efficient and effective execution of specific tasks

Question 22

Managerial Control

Answer 22

acquisition and efficient use of resources in the accomplishment of organizational goals

Question 23

Strategic Planning

Answer 23

involves defining long-range goals and policies for resource allocation;