Lesson 3

Question 1

is a system of computing hardware, high-speed data processing, and analytical algorithms that are combined to make data-based recommendations.

Answer 1

Watson

Question 2

Steps in Decision Making

Answer 2

1. Identify and define the problem
2. Determine the criteria that will be used to evaluate alternative solutions
3. Determine the set of alternative solutions
4. Evaluate the alternatives
5. Choose an alternative

Question 3

involve higher-level issues concerned with the overall direction of the organization; these decisions define the organization’s overall goals and aspirations for the future.

Answer 3

Strategic decisions

Question 4

are usually the domain of higher-level executives and have a time horizon of three to five years.

Answer 4

Strategic decisions

Question 5

concern how the organization should achieve the goals and objectives set by its strategy, and they are usually the responsibility of mid level management.

Answer 5

Tactical decisions

Question 6

usually span a year and thus are revisited annually or even every six months.

Answer 6

Tactical decisions

Question 7

affect how the firm is run from day to day; they are the domain of operations managers, who are the closest to the customer.

Answer 7

Operational decisions

Question 8

is the scientific process of transforming data into insight for making better decisions.

Answer 8

Business analytics

Question 8

is a request for information with certain characteristics from a database.

Answer 8

Data Query

Question 9

are collections of tables, charts, maps, and summary statistics that are updated as new data become available.

Answer 9

Data Dashboards

Question 10

techniques used to find patterns or relationships among elements of the data in a large database.

Answer 10

Data Mining

Question 11

involves the use of probability and statistics to construct a computer model to study the impact of uncertainty on a decision.

Answer 11

Simulation

Question 12

Types of Modelling in Prescriptive Analytics

Answer 12

1. Optimization Model
2. Simulation Optimization Model

Question 13

models that give the best decision subject to constraints of the situation.

Answer 13

Optimization Models

Question 14

use historical investment return data to determine the mix of investments that yield the highest expected return while controlling or limiting exposure to risk.

Answer 14

Portfolio Models in Finance

Question 15

provide the cost-minimizing plant and distribution center locations subject to meeting the customer service requirements.

Answer 15

Supply Network Design Models in Operation

Question 16

Given historical data, yield revenue-maximizing discount levels and the timing of discount offers when goods have not sold as planned.

Answer 16

Price Markdown Models in Retailing

Question 17

Models under Optimization Model

Answer 17

1. Portfolio Models in Finance
2. Supply Network Design Models in Operation
3. Price Markdown Models in Retailing

Question 18

combines the use of probability and statistics to model uncertainty with optimization techniques to find good decisions in highly complex and highly uncertain settings.

Answer 18

Simulation Optimization Model

Question 19

this technique can be used to develop an optimal strategy when a decision maker is faced with several decision alternatives and an uncertain set of future events.

Answer 19

Decision Analysis

Question 20

is simply a set of data that cannot be managed, processed, or analyzed with commonly available software in a reasonable amount of time.

Answer 20

Big data

Question 21

Business Analytics in Practice

Answer 21

A. Financial Analytics
B. Human Resource Analytics
C. Marketing Analytics
D. Health Care Analytics
E. Supply Chain Analytics
F. Analytics for Government and Non-profits
G. Sports Analytics
H. Web Analytics