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Package Title: Testbank Questions

Course Title: MIS 3e


Chapter Number: 5

Question Type: True/False

1) Business intelligence is a limited category of applications used for storing and


accessing data.

Answer: False

Title: Testbank Question 5.01


Learning Objective 1: LO 5.1 Provide a real world example of Business Intelligence.
Section Reference 1: Introduction
Difficulty: Easy
Bloom’s Taxonomy: Knowledge

2) A manager’s primary function is strategic planning.

Answer: False

Title: Testbank Question 5.02


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Knowledge

3) The ratio between organizational inputs and outputs is an indication of the


organization’s productivity.

Answer: True

Title: Testbank Question 5.03


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension
4) Modern information systems support all three managerial roles.

Answer: True

Title: Testbank Question 5.04


Learning Objective 1: LO 5. Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Knowledge

5) In the choice phase of the decision-making process, managers construct a model


that simplifies the problem.

Answer: False

Title: Testbank Question 5.05


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

6) In the implementation phase of the decision-making process, managers set criteria


for the evaluation of alternative potential solutions.

Answer: False

Title: Testbank Question 5.06


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

7) The number of alternatives to be considered in decisions today is increasing.

Answer: True
Title: Testbank Question 5.07
Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

8) Structured decisions address routine, repetitive problems for which standard


solutions exist.

Answer: True

Title: Testbank Question 5.08


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making..
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

9) Human intuition often plays a role in making unstructured decisions.

Answer: True

Title: Testbank Question 5.09


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

10) Unstructured decisions require a combination of standard solution procedures and


individual judgment.

Answer: False

Title: Testbank Question 5.10


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

11) Management control is the acquisition and efficient use of resources in


accomplishing organizational tasks.

Answer: True

Title: Testbank Question 5.11


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

12) The use of BI is limited to large corporations.

Answer: False

Title: Testbank Question 5.12


Learning Objective 1: LO 5.2 Describe and provide examples of different ways that
organizations make use of BI.
Section Reference 1: 5.2 What Is Business Intelligence?
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

13) The BI target “Development of infrastructure to support enterprise-wide BI” is closely


aligned with corporate performance management.

Answer: False

Title: Testbank Question 5.13


Learning Objective 1: LO 5.2 Describe and provide examples of different ways that
organizations use business intelligence (BI)
Section Reference 1: 5.2 What is Business Intelligence?
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

14) KPI stands for key process information.

Answer: False
Title: Testbank Question 5.14
Learning Objective 1: LO 5.2 Describe and provide examples of different ways that
organizations use business intelligence (BI)
Section Reference 1: 5.2 What is Business Intelligence?
Difficulty: Easy
Bloom’s Taxonomy: Knowledge

15) Corporate performance management (CPM) is involved with monitoring and


managing an organization’s performance according to its budget.

Answer: False

Title: Testbank Question 5.15


Learning Objective 1: LO 5.5 Explain how your university could use CPM to effect
solutions to two campus problems.
Section Reference 1: 5.5 Business Intelligence in Action: Corporate Performance
Management
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

16) Targeted marketing is a good example of the discovery of previously unknown or


hidden patterns.

Answer: False

Title: Testbank Question 5.16


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

17) Decision-support systems support only lower- and middle-level managers.

Answer: False

Title: Testbank Question 5.17


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

18) Goal-seeking analysis attempts to find the value of the inputs necessary to achieve
a desired level of output.

Answer: True

Title: Testbank Question 5.18


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

19) A digital dashboard is very user friendly, supported by graphics, provides exception
reporting and drill down, and provides information related to critical success factors.

Answer: True

Title: Testbank Question 5.19


Learning Objective 1: LO 5.4 Describe three BI applications that present the results of
data analyses to users, and offer examples of how businesses and government
agencies can use each of these applications.
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

20) Digital dashboards provide support primarily to analytical, quantitative types of


decisions.

Answer: False

Title: Testbank Question 5.20


Learning Objective 1: LO 5.4 Describe three BI applications that present the results of
data analyses to users, and offer examples of how businesses and government
agencies can use each of these applications.
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
Bloom’s Taxonomy: Comprehension
21) The rise of social media has decreased interest in sentiment analysis.

Answer: False

Title: Testbank Question 5.21


Learning Objective 1: LO 5.5 Summarize the fundamental concepts related to Business
Intelligence.
Section Reference 1: Closing Case 2
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

22) Sentiment analysis can provide marketing managers with near-real-time insight into
what consumers are thinking, so they can adjust their strategies and offers while it is still
possible to influence the outcomes.

Answer: True

Title: Testbank Question 5.22


Learning Objective 1: LO 5.5 Explain how your university could use CPM to effect
solutions to two campus problems.
Section Reference 1: Closing Case 2
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

.
Question Type: Multiple Choice

23) Refer to the Opening Case – How Much Rent Can You Charge?: RentRange
_____.

a) Analyzes apartment rental rates in major cities.


b) Provides rental data to apartment owners.
c) Provides analysis about purchasing low-cost single-family housing for later rental.
d) Determines renter rating for apartment owners.

Answer: c

Title: Testbank Question 5.23


Learning Objective 1: 5.0 Provide a real world example of Business Intelligence.
Section Reference 1: Introduction
Difficulty: Medium
Bloom’s Taxonomy: Comprehension
24) _____ is the process by which organizational goals are achieved through the use of
organizational resources.

a) Organizational decision making


b) Operations
c) Organizational strategy
d) Organizational productivity
e) Management

Answer: e

Title: Testbank Question 5.24


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

25) Which of the following is not an interpersonal role of a manager?

a) figurehead
b) monitor
c) leader
d) liaison

Answer: b

Title: Testbank Question 5.25


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

26) Which of the following is not an informational role of a manager?

a) spokesperson
b) analyzer
c) disseminator
d) liaison
Answer: d

Title: Testbank Question 5.26


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

27) Which of the following is not a decisional role of managers?

a) spokesperson
b) resource allocator
c) entrepreneur
d) negotiator

Answer: a

Title: Testbank Question 5.27


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

28) Which of the following is not a basic role of managers?

a) interpersonal
b) processor
c) informational
d) decisional

Answer: b

Title: Testbank Question 5.28


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension
29) Being a figurehead and leader is part of the _____ managerial role.

a) interpersonal
b) processor
c) informational
d) decisional
e) confrontational

Answer: a

Title: Testbank Question 5.29


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

30) Being an entrepreneur, disturbance handler, and negotiator is part of the _____
managerial role.

a) interpersonal
b) processor
c) informational
d) decisional
e) confrontational

Answer: d

Title: Testbank Question 5.30


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

31) In the _____ phase of the decision-making process, managers examine a situation
and identify and define the problem.

a) implementation
b) choice
c) design
d) intelligence
e) consideration

Answer: d

Title: Testbank Question 5.31


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Application

32) In the _____ phase of the decision-making process, managers construct a model
that simplifies the problem.

a) implementation
b) choice
c) design
d) intelligence
e) consideration

Answer: c

Title: Testbank Question 5.32


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

33) Success in the _____ phase of the decision-making process results in resolving the
original problem, and failure leads to a return to previous phases.

a) implementation
b) choice
c) design
d) intelligence
e) consideration

Answer: a
Title: Testbank Question 5.33
Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

34) In the _____ phase of the decision-making process, managers test potential
solutions “on paper.”

a) implementation
b) choice
c) design
d) intelligence
e) consideration

Answer: b

Title: Testbank Question 5.34


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

35) Which of the following is not a reason why managers need IT support?

a) The number of alternatives is decreasing.


b) Decisions must typically be made under time pressure.
c) Decisions are becoming more complex.
d) There is a growing need to access remote information sources.
e) Decision makers are often based in different locations.

Answer: a

Title: Testbank Question 5.35


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Application
36) Decisions today are becoming _____ complex, due to _____ uncertainty in the
decision environment.

a) less, decreased
b) more, decreased
c) less, increased
d) more, increased
e) neither more nor less, decreased

Answer: d

Title: Testbank Question 5.36


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Analysis

37) Which of the following is not a characteristic of a structured decision?

a) It is routine.
b) It is repetitive.
c) Human intuition is not involved.
d) The first three phases of the decision-making process need not occur in any
particular sequence
e) Standard solutionsexist.

Answer: d

Title: Testbank Question 5.37


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making..
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Comprehension

38) The type of decision that can be made by following a definite procedure is called
a(n) ______ decision.

a) structured
b) unstructured
c) undocumented
d) semistructured
e) procedural

Answer: a

Title: Testbank Question 5.38


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

39) ________ decisions are more common at lower organizational levels.

a) Structured
b) Unstructured
c) Undocumented
d) Semi-structured
e) Procedural

Answer: a

Title: Testbank Question 5.39


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

40) Rank-and-file employees tend to make more _________ decisions.

a) structured
b) unstructured
c) undocumented
d) semi-structured
e) procedural

Answer: a

Title: Testbank Question 5.40


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

41) Calculating gross pay for hourly workers is an example of ________ decision
making.

a) structured
b) unstructured
c) undocumented
d) semi-structured
e) procedural

Answer: a

Title: Testbank Question 5.41


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

42) Which of the following is not a characteristic of unstructured decisions?

a) They are complex.


b) They typically are fuzzy and unclear.
c) Standard solutions exist.
d) Human intuition is involved.
e) The first three phases of the decision-making process occur in no particular
sequence.

Answer: c
Title: Testbank Question 5.42
Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Comprehension
43) When there is no well-understood or agreed-on procedure for making a decision,
the decision is said to be ____________.

a) undocumented
b) structured
c) unstructured
d) semistructured
e) documented

Answer: c

Title: Testbank Question 5.43


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

44) A large foreign automobile manufacturer is considering where to build a new


manufacturing plant in the United States. They are making which type of decision?

a) structured
b) semi-structured
c) unstructured
d) informational
e) wisdom

Answer: b

Title: Testbank Question 5.44


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Application

45) Which type of decision requires a combination of standard solution procedures and
individual judgment?

a) structured
b) semistructured
c) unstructured
d) informational
e) wisdom

Answer: b

Title: Testbank Question 5.45


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Application

46) A company’s annual employee evaluation best fits which type of decision?

a) unstructured
b) structured
c) semi-structured
d) confrontational
e) wisdom

Answer: c

Title: Testbank Question 5.46


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making..
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Application

47) _____ is the efficient and effective execution of specific tasks.

a) Operational control
b) Management control
c) Strategic planning
d) Expertise
e) Wisdom

Answer: a

Title: Testbank Question 5.47


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

48) _____ is the acquisition and efficient use of resources in accomplishing


organizational goals.

a) Operational control
b) Management control
c) Strategic planning
d) Expertise
e) Wisdom

Answer: b

Title: Testbank Question 5.48


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

49) Computer support is greatest for which of the following problems?

a) semistructured and strategic planning


b) unstructured and operational control
c) structured and operational control
d) semistructured and management control
e) structured and management control

Answer: c

Title: Testbank Question 5.49


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Analysis
50) Computer support is least for which of the following problems?

a) semistructured and strategic planning


b) unstructured and strategic planning
c) semistructured and management control
d) unstructured and operational control
e) structured and strategic planning

Answer: b

Title: Testbank Question 5.50


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Analysis

51) Amanda is working for the CEO of a small company. He is trying to make a strategic
decision about a new product. He has asked Amanda to build a model the represents
and simplifies the problem. Amanda’s boss is in the ______________ phase of the
decision-making process

a) implementation
b) choice.
c) design
d) intelligence
e) consideration

Answer: c

Title: Testbank Question 5.51


Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Synthesis

52) Elena is trying to decide whether she should expand her ice cream shop to a bigger
space. She decides to be very methodical about it and follow the phases of the
decision-making process she learned in college. Which of the following statements is
true?
a) During the intelligence phrase, Elena will build a model using assumptions about the
business.
b) During the design phrase, Elena will define the opportunity.
c) During the choice phase, Elena will lay out her options.
d) During the implementation phase, Elena will implement two of her solutions.
e) Elena will use test data to validate her model.

Answer: e

Title: Testbank Question 5.52


Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Hard
Bloom’s Taxonomy: Synthesis

53) Elena is trying to decide whether she should expand her ice cream shop to a bigger
space. She decides to be very methodical about it and follow the phases of the
decision-making process she learned in college. She has developed a few alternatives.
Elena is in the ______________ phase of the decision-making process

a) implementation
b) choice.
c) design
d) intelligence
e) consideration

Answer: b

Title: Testbank Question 5.53


Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Synthesis

54) Which of the following is not a BI target that represents a level of change?

a) The development of one or a few related BI applications


b) Support for organizational transformation
c) The development of infrastructure to support enterprise-wide BI
d) All of the above represent a level of change.

Answer: d
Title: Testbank Question 5.54
Learning Objective 1: LO 5.2 Describe and provide examples of different ways that
organizations use business intelligence (BI)
Section Reference 1: 5.2 What is Business Intelligence?
Difficulty: Easy
Bloom’s Taxonomy: Analysis

55) Refer to IT’s About Business 5.1 – Predicting Airplane Arrivals More Accurately: The
purpose of the first Flight Quest contest was to_______.

a) make it easier for pilots to submit their flight plans.


b) develop an algorithm that could help airlines better predict flight arrival times and
reduce delays.
c) determine the best flight path for individual flights.
d) get baggage off planes faster.

Answer: b

Title: Testbank Question 5.55


Learning Objective 1: LO 5.2 Describe and provide examples of different ways that
organizations use business intelligence (BI)
Section Reference 1: 5.2 What is Business Intelligence?
Difficulty: Easy
Bloom’s Taxonomy: Analysis

56) Refer to IT’s About Business 5.2 – Cardlytics Analyzes Customer Buying Behaviors:
which of the following statements about Cardlytics is not correct?

a) Tracks consumer buying behavior.


b) Uses spending data to learn about and categorize consumer types.
c) Pioneered data-driven advertising called merchant-funded rewards.
d) All of the choices are correct.

Answer: d

Title: Testbank Question 5.56


Learning Objective 1: LO 5.2 Describe and provide examples of different ways that
organizations use business intelligence (BI)
Section Reference 1: 5.2 What is Business Intelligence?
Difficulty: Medium
Bloom’s Taxonomy: Comprehension
57) Searching for valuable business information in a database, data warehouse, or data
mart is referred to as _____.

a) structured queries
b) database queries
c) data mining
d) query by example
e) expert system queries

Answer: c

Title: Testbank Question 5.57


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

58) _____ provides users with a view of what is happening, whereas _____ addresses
why it is happening.

a) Multidimensional data analysis, Structured Query Language


b) Data mining, multidimensional data analysis
c) Data mining, expert system
d) Multidimensional data analysis, neural networks
e) Multidimensional data analysis, data mining

Answer: e

Title: Testbank Question 5.58


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Analysis

59) Credit card companies would most likely use which of the following to check for
fraudulent credit card use?

a) Data mining
b) Expert systems
c) Neural networks
d) Multidimensional data analysis
e) Structured query language

Answer: a

Title: Testbank Question 5.59


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Analysis

60) A company wants to use data from past promotional mailings to identify people who
would likely respond favorably to future mailings. This company would most likely use
____________.

a) Structured Query Language


b) multidimensional data analysis
c) neural networks
d) expert systems
e) data mining

Answer: e

Title: Testbank Question 5.60


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Analysis

61) Which of the following is not a characteristic of decision support systems?

a) They support only lower- and middle-level managers.


b) They are easy to use and construct.
c) They can adapt to changing conditions.
d) They usually utilize quantitative models.
e) They support all phases of the decision-making process.

Answer: a

Title: Testbank Question 5.61


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Analysis

62) At the end of a semester, a student knows that she must achieve a grade of 81 or
higher on her final exam to get an A in the course. She has just performed what kind of
analysis?

a) What-if
b) Qualitative
c) Sensitivity
d) Goal-seeking
e) Simulation

Answer: d

Title: Testbank Question 5.62


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Analysis

63) _____ attempts to find the value of the inputs necessary to achieve a desired level
of output.

a) What-if analysis
b) Qualitative analysis
c) Sensitivity analysis
d) Goal-seeking analysis
e) Simulation

Answer: d

Title: Testbank Question 5.63


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy
Bloom’s Taxonomy: Comprehension

64) You’ve started an internship at the major hospital in your city. Your boss gave you
ten minutes of training on the data warehouse that you have access to. The last thing
she told you was to do some analysis on the Visit cube. Which of the following
statements is false?

a) One dimension of the cube is (probably) day.


b) One dimension of the cube is (probably) treatment.
c) One dimension of the cube is (probably) doctor.
d) One dimension of the cube is (probably) month.
e) One dimension of the cube is (probably) patient.

Answer: d

Title: Testbank Question 5.64


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Synthesis

65) You’ve started an internship at the major hospital in your city. Your boss gave you
ten minutes of training on the data warehouse that you have access to. She then asked
you to see if there is any correlation between treatments and day of the week. To do
this, you will be doing:

a) Transaction processing.
b) Data mining
c) What-if analysis.
d) Goal-seeking
e) Exception reporting

Answer: b

Title: Testbank Question 5.65


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Synthesis
66) Sally is working for her uncle for the summer in the marketing department of
Proctor & Gamble. She tells you she does data mining all day long. Which of the
following statements is false?

a) Data mining can be used to prove assumptions.


b) Data mining is used to identify unknown patterns.
c) Data mining can explain why things happened.
d) Data mining can predict what will happen.
e) Data mining can be used to identify customers.

Answer: e

Title: Testbank Question 5.66


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Synthesis

67) Sally is working for her uncle for the summer in the marketing department of
Proctor & Gamble. One of her recent projects was to use the insights from the data
mining to determine the sales level that will cover expected expenses for the upcoming
year for one product line. Sally will be doing:

a) What-if analysis
b) Qualitative analysis
c) Sensitivity analysis
d) Goal-seeking analysis
e) A simulation.

Answer: d

Title: Testbank Question 5.67


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Synthesis

68) Sally is working for her uncle for the summer in the marketing department of
Proctor & Gamble. One of her recent projects was to build a model of revenue that
would allow her boss to test a variety of price points against forecasts of units sold for
each product in a product line. Sally will be doing:

a) What-if analysis
b) Qualitative analysis
c) Sensitivity analysis
d) Goal-seeking analysis
e) A simulation.

Answer: a

Title: Testbank Question 5.68


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Synthesis

69) Shawn is doing some budgeting for his new start-up business. He has developed a
budget in Excel using formulas, as he was taught to do in college. Which of the
following statements is true?

a) If Shawn changes one of his assumptions, Excel will automatically recalculate the
budget numbers.
b) Shawn would use sensitivity analysis to check the impact of changing his price.
c) Shawn would use roll-up to review his summary numbers.
d) Shawn would use what-if analysis to check the impact of changing his price and the
commission he pays his sales people.
e) Shawn would use goal-seeking analysis to examine the impact of changing his
forecast of units sold.

Answer: a

Title: Testbank Question 5.69


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Synthesis

70) Shawn is doing some budgeting for his new start-up business. He has developed a
budget in Excel using formulas, as he was taught to do in college. He would like to
check the impact of changing his price and the commission he pays his sales people.
Shawn will be doing:

a) What-if analysis
b) Qualitative analysis
c) Sensitivity analysis
d) Goal-seeking analysis
e) A simulation.

Answer: c

Title: Testbank Question 5.70


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Synthesis

71) Shawn is doing some budgeting for his new start-up business. He has developed a
budget in Excel using formulas, as he was taught to do in college. He is fairly confident
about his estimated expenses. He is also sure that his current price is the best price he
can get for his product. He would like to know how many units he needs to sell at that
price (and his cost per product from his supplier) to cover his expenses. Shawn will be
doing:

a) What-if analysis
b) Qualitative analysis
c) Sensitivity analysis
d) Goal-seeking analysis
e) A simulation.

Answer: d

Title: Testbank Question 5.71


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Synthesis

72) A(n) _____ provides rapid access to timely information and direct access to
management reports.
a) decision support system
b) expert system
c) neural network
d) digital dashboard
e) data warehouse

Answer: d

Title: Testbank Question 5.72


Learning Objective 1: LO 5.4 Offer examples of how businesses and government
agencies can use different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy
Bloom’s Taxonomy: Application

73) Which capability of digital dashboards enables users to obtain the latest data
available on key performance indicators or some other metric, ideally in real time?

a) Drill-down
b) Key performance indicators
c) Status access
d) Trend analysis
e) Exception reporting

Answer: c

Title: Testbank Question 5.73


Learning Objective 1: LO 5.4 Offer examples of how businesses and government
agencies can use different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy
Bloom’s Taxonomy: Analysis

74) Which of the following information systems are very user friendly, supported by
graphics, and provide exception reporting and drill down?

a) decision support systems


b) digital dashboards
c) functional area information systems
d) group decision support systems
e) expert systems

Answer: b
Title: Testbank Question 5.74
Learning Objective 1: LO 5.4 Offer examples of how businesses and government
agencies can use different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy
Bloom’s Taxonomy: Analysis

75) Digital dashboards provide all of the following capabilities except:

a) drill-down
b) transaction processing
c) status access
d) key performance indicators
e) exception reporting

Answer: b

Title: Testbank Question 5.75


Learning Objective 1: LO 5.4 Offer examples of how businesses and government
agencies can use different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy
Bloom’s Taxonomy: Application

76) The Management Cockpit best exemplifies which type of system?

a) decision support system


b) expert system
c) digital dashboard
d) functional area information system
e) group decision support system

Answer: c

Title: Testbank Question 5.76


Learning Objective 1: LO 5.4 Offer examples of how businesses and government
agencies can use different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
Bloom’s Taxonomy: Application
77) The primary distinguishing characteristic of geographical information systems is
______________.

a) every record or digital object has a unique identifier


b) every record or digital object is visible to the user
c) every record or digital object must be accessed by programmers
d) every record or digital object has an identified geographical location
e) every record or digital object is encrypted

Answer: d

Title: Testbank Question 5.77


Learning Objective 1: LO 5.4 Offer examples of how businesses and government
agencies can use different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
Bloom’s Taxonomy: Application

78) Geocoding involves ___________.

a) integrating maps with spatially oriented databases and other databases


b) encrypting spatial information
c) accessing geographical information
d) integrating organizational transactions with spatially oriented databases
e) programming spatially oriented databases

Answer: a

Title: Testbank Question 5.78


Learning Objective 1: LO 5.4 Offer examples of how businesses and government
agencies can use different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
Bloom’s Taxonomy: Comprehension

79) Refer to IT’s About Business 5.3 – Geographic Information Systems Have Many
Uses: Based on the case study, what type of company might use GIS data for
engineering and operations?

a) Telecommunications industry
b) Irrigation district
c) School district
d) Restaurant chains
Answer: b

Title: Testbank Question 5.79


Learning Objective 1: LO 5.4 Offer examples of how businesses and government
agencies can use different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
Bloom’s Taxonomy: Comprehension

80) Amanda is working for the CEO of a small company. He asks her to develop a
dashboard. Amanda starts thinking about the questions she needs to ask. Which of the
following questions would not on Amanda’s list?

a) How many levels do you wish to drill down?


b) What are your key performance indicators?
c) Do you need real-time data?
d) Do you want graphs and charts or text?
e) Should it run on your iPhone?

Answer: c

Title: Testbank Question 5.80


Learning Objective 1: LO 5.4 Offer examples of how businesses and government
agencies can use different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
Bloom’s Taxonomy: Synthesis

81) Amanda is working for the CEO of a small company. He asks her to develop a
dashboard. Amanda starts thinking about the questions she needs to ask. She asks her
boss for his critical success factors and how he will measure them. The measures of
CSF’s are called _____________.

a) clustering
b) classification.
c) real-time data
d) key performance indicators
e) status access

Answer: d

Title: Testbank Question 5.81


Learning Objective 1: LO 5.4 Offer examples of how businesses and government
agencies can use different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
Bloom’s Taxonomy: Synthesis

82) Elena is trying to decide whether she should expand her ice cream shop to a bigger
space. She decides to be very methodical about it and follow the phases of the
decision-making process she learned in college. She has developed a few alternatives.
Elena built a model in Excel so she could test her assumptions. This is an example of
_______________.

a) decision support system


b) digital dashboard
c) functional area information system
d) group decision support system
e) expert system

Answer: a

Title: Testbank Question 5.82


Learning Objective 1: LO 5.4 Offer examples of how businesses and government
agencies can use different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
Bloom’s Taxonomy: Synthesis

83) Refer to Closing Case 1 – Conoco Phillips Uses Business Intelligence to Produce
More Oil and Gas: Which of the following statements about Conoco’s PLOT system is
not correct?

a) Requiring company to install landline communications to connect remote wells.


b) Provides data that alerts well operators when adjustments have to be made.
c) Allows company to optimize a well to its true capacity.
d) Calculates pressure and temperature at different parts of the well.

Answer: a

Title: Testbank Question 5.83


Learning Objective 1: 5.1 Identify the phases in the decision-making process, and uses
a decision support framework to demonstrate how technology supports managerial
decision making.
Section Reference 1: Closing Case 1 – Conoco Phillips Uses Business Intelligence to
Produce More Oil and Gas
Difficulty: Medium
Bloom’s Taxonomy: Application
Question Type: Essay

84) Describe the three major roles of managers.

Title: Testbank Question 5.84


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making..
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Analysis

85) Explain why managers need IT support.

Title: Testbank Question 5.85


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making..
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Syntesis

86) Discuss the information technologies that are available to support managers.

Title: Testbank Question 5.86


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making..
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Synthesis

87) Describe the phases in the decision-making process.

Title: Testbank Question 5.87


Learning Objective 1: LO 5.1 Identify the phases in the decision-making process, and
uses a decision support framework to demonstrate how technology supports managerial
decision making..
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Analysis

88) Describe OLAP, and explain what a data cube is.

Title: Testbank Question 5.88


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Analysis

89) Explain data mining, using examples.

Title: Testbank Question 5.89


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Evaluation

90) Explain how what-if analysis is employed, using examples.

Title: Testbank Question 5.90


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Evaluation

91) Explain what data visualization technologies are, using examples.

Title: Testbank Question 5.91


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
Bloom’s Taxonomy: Evaluation
92) Describe how your university could use a decision support system in its admissions
process.

Title: Testbank Question 5.92


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Hard
Bloom’s Taxonomy: Evaluation

93) Discuss the structure of problems, the nature of decisions, and the framework for
computerized decision analysis.

Title: Testbank Question 5.93


Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial
decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
Bloom’s Taxonomy: Evaluation

94) Describe how your university could use a geographical information system in its
admissions process. What value could your university gain from using such a system?

Title: Testbank Question 5.94


Learning Objective 1: LO 5.3 Specify the BI applications available to users for data
analysis, and provide examples of how each application can be used to solve a
business problem at your university.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Hard
Bloom’s Taxonomy: Evaluation

95) Speculate on the future of virtual reality applications in higher (college and
university) education. Describe some possible applications.

Title: Testbank Question 5.95


Learning Objective 1: LO 5.4 Offer examples of how businesses and government
agencies can use different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Hard
Bloom’s Taxonomy: Evaluation

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