Chapter 7

Question 1

What are raw facts representing events such as business transactions?

Answer 1

Data

Question 2

Data that is shaped into a form that is meaningful and useful to human beings is:

Answer 2

Information

Question 3

What is created by analyzing information; and may lead to action?

Answer 3

Knowledge

Question 4

What converts data into useful info and, through human analysis, into knowledge?

Answer 4

Business intelligence (BI)

Question 5

“Business decisions are only as good as the quality of the info used to make them” relates to what term?

Answer 5

Gi-go (garbage in garbage out)

Question 6

High quality information must be:

Answer 6

• Accurate
• Complete
• Consistent
• Unique
• Timely

Question 7

What are the 4 primary sources of low-quality info?

Answer 7

1) Online customers purposely enter inaccurate info to protect their privacy
2) Data or info from different systems have different entry formats
3) Call centre operators enter abbreviated info by accident or to save time
4) Third party and external info contains inconsistencies, inaccuracies, and errors

Question 8

Low-quality info can cause these problems:

Answer 8

• Inability to track customers
• Difficulty to identify valuable customers
• Marketing to nonexistent customers
• Inability to build strong customer relationships

Question 9

A logical collection of information gathered from many different operational databases that supports business analysis activities and decision-making tasks is a:

Answer 9

Data warehouse

Question 10

True or false: the primary purpose of a data warehouse is to aggregate info throughout an organization into a single system for decision-making purposes.

Answer 10

True

Question 11

True or false: A DW is an important asset for the organization to maintain efficiency, profitability, and competitive advantage.

Answer 11

True

Question 12

True or false: databases store the info for DAY to DAY transactions.

Answer 12

True

Question 13

What is time-variant, non-volatile, and integrated?

Answer 13

A data warehouse

Question 14

A process that weeds out and fixes or discards inconsistent, incorrect, or incomplete info is called information_____:

Answer 14

Cleansing or scrubbing

Question 15

A set of processes by which data is extracted from sources, transformed, and loaded into the data warehouse is called:

Answer 15

ETL (extract, transform, load)

Question 16

What provides summary and historical data for a single department rather than an entire organization?

Answer 16

A data mart

Question 17

What uses algorithms to analyze data in a DW to find patterns that can be used to guide decision making?

Answer 17

Data mining

Question 18

A technique used to divide info into mutually exclusive groups such that the members of each group are as close as possible to one another is called:

Answer 18

Cluster analysis

Question 19

A technique used to determine the likelihood of events occurring together at a particular time or following each other is called:

Answer 19

Association detection

Question 20

Applications and technologies used to gather, provide access to, and analyze info to support decision making is called:

Answer 20

Business intelligence

Question 21

True or false: BI takes the volume of data your organization collects and stores, and turns it into meaningful reports and analysis that everyone can use.

Answer 21

True

Question 22

What is the most challenging aspect of BI?

Answer 22

Getting data in

Question 23

What are the 4 characteristics of BI?

Answer 23

1) Reliable
2) Consistent
3) Understandable
4) Easily manipulated