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PARTA:INFORMATION,
TECHNOLOGIES
ANDSYSTEMS
FORORGANISATION
PERFORMANCE
Section A questions

OTQ bank – Information, technologies and systems for Q

U
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organisation performance T
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54 mins
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1 WhichTHREE
of the followingare NOT'V'sassociated withbig data?
 Volume
 Visibility
 Verification
 Variability
 Veracity
 Velocity
 Value
 Variety (2 marks)

2 Thefollowingstatements have been made about data and information.

(1) Automatedsystemsfordata capture are generallymorereliablethan data capture
requiringinputby individuals.
(2) Asa generalrule,secondaryinformationis moreexpensiveto collectthan primary
G
data. H

Whichof the abovestatements is/are true?

 1only
 2 only
 Neither1nor 2
 Both1and 2 (2 marks)

3 Indicate,by selectingthe relevantboxes,whethereach of the followingcontrolshelpto

ensurethe securityof highlyconfidentialinformation.
Logicalaccess controls YES NO
Database controls YES NO
Hierarchicalpasswords YES NO
Rangechecks YES NO
(2 marks)

Questions 3

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4 Thefollowingstatements have been made about managementinformationand
managementinformationsystems.
(1) Managementinformationis oftenproducedfromtransactionprocessingsystems.
(2) Thedata used inmanagementinformationsystemscomesmainlyfromsources
withinthe organisationand its operations.
Whichof the abovestatements is/are true?
 1only
 2 only
 Neither1nor 2
 Both1and 2 (2 marks)

5 Arethe followingstatements about managementinformationsystemstrue or false?

Theyare designedto reporton existingoperations. TRUE FALSE
Theyhave an externalfocus. TRUE FALSE
(2 marks)

6 Thefollowingstatements have been made about operationalcontrol.

(1) Budgetingis commonlyassociated withdecision-makingat the operationalplanning
levelwithina managementhierarchy.
G
(2) Operationalcontroldecisionsingeneralare morenarrowlyfocusedand have a H

shortertimehorizonthan managementcontroldecisions.
Whichof the abovestatements is/are true?
 1only
 2 only
 Neither1nor 2
 Both1and 2 (2 marks)

7 Whichof the followingtermsis used to describean informationsystemthat providessenior

executiveswithonlineaccess to importantinformationobtainedfromboth internaland
externalsources?
 Executiveinformationsystem
 Enterpriseresourceplanningsystem
 Managementinformationsystem
 Transactionprocessingsystem (2 marks)

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8 Acompany'sboard of directorswererecentlyembarrassedwhena veryunhappy junior
humanresourcesemployeeemaileddetailsof theirsalariesto the entirecompany. An
investigationrevealedthat the humanresourcesdirectorhad lenthisusernameand
passwordto the junioremployeeso that routinemaintenanceof the humanresources
database couldbe conductedwhilstthe directorwas on vacation.Duringthe director's Q
vacation,the junioremployeehad used the director'susernameand passwordto access U
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the board's salary records.
N
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Whichof the followingcontrolscouldhave helpedto preventthisbreach of confidential
information?
 Monitoringthe database systemlogson a dailybasis to see what informationis
beingaccessed
 Buildinglevelsof access intothe database so that onlyseniorstaff have access to
board records
 Keepingallthe humanresourcerecordsforsalarieson a separate server
 Havinga policyof regularlyupdatingthe passwordsrequiredto access the system
(2 marks)

9 Bigdata analyticsusuallyinvolvesthe analysisof unstructureddata.

Whichof the followingis an exampleof unstructured data?
 Data tables showingmonthlypurchasesfigures
 Spreadsheetanalysisof annual sales
 Emailcommunicationsbetweena customerand the customerservicesdepartment
G
 Atable of suppliernames and addresses (2 marks) H

10 Thefollowingstatements have been made about informationsystems.

(1) Feedbackis informationproducedfroma systemthat is used by managementto
take actionto controlfurtherinputsto the system.
(2) Informationforbenchmarkingpurposesmay be obtainedfromboth internaland
externalsources.
Whichof the abovestatements is/are true?
 1only
 2 only
 Neither1nor 2
 Both1and 2 (2 marks)

Questions 5

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11 CoffCooperatesa chainofcoffeeshops.Ithasaninteractive
websitewherecustomers
canleavefeedback,andhasrecentlyintroduceda customer
loyaltycardthatisswiped
at
thetillwhenever
a purchaseismade.CoffCoiskeentomakeuseofthisnewdata.
WhichTWOofthefollowingarewaysthatCoffCocouldusetheinformation
collected
fromthewebsite
andcustomer loyaltycards?
 Understand
individual
customer preferences
 Update
itsinventory
records
 Analyse
thetake-upoftargetedpromotions
 Compile
branch
salesforecasts (2 marks)

12 Thefollowing
costsrelate
tomanagement
accounting
information
forKiteCoforApril20X8:
Cost $
Employeetimespentfillinginpurchase
requisitions 600
Useofbarcodesandscanners torecord
inventory 200
Storage
ofsalesinformation nolongerneeded 400
Timetakenbystafftoinputdataintoproduction system 900
Whatwerethetotaldirectdatacapture costsforKiteCoforApril20X8?
 $200
 $800
 $1,700
 $2,100 (2 marks)

G H

13 Aneducationdepartment
hasa statutory
obligation
toreport
onthenumber ofstudents
onsitethroughout
theday.Inordertoproduce
thisinformation,
a swipecardsystem
has
beenintroduced.
Thefollowingtabledetails
thecostsoftheswipecardsystem
initsfirstyear:
$ Notes
Purchasepriceoftheswipesystem (vendor
listprice) 100,000 Invoiced andpaid
Installation
costsofthesystem (negotiated
withvendor) 20,000 Invoiced andpaid
Pre-launchtesting
costs(in-house) 17,000 Salaries timespenton
testing
Costper100swipecards 5,000 1,000cardspurchased
inthefirstyear
Apportionmentofthetechnology insurance
cost 9,000 Fixedcost
Salaryofclerkemployed tocollateanddistribute
swipe 36,000 Fixedcost
cardsystem information
Whatistheindirect
costofproducing
theinformation
required
inthefirstyearoftheswipe
cardsystem?
$ (2 marks)

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14 Whichofthefollowing
isanexample
oflocalnetworking?
 Internet
 Fileserver
 Intranet Q
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 Ethernet (2 marks) E
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15 WhichTWOofthefollowing
arebenefits
ofwireless
technology?
 Better
decision-making
 Increased
productivity
 Increased
security
 Reducedcostsasbusinesses
expand (2 marks)

OTQ bank – Information, technologies and systems for

organisation performance 54 mins

16 Whichofthefollowing
statements
isNOTa benefit
ofusingdatamining
byanonline
book
retailer?
 Better
understanding
ofcustomer
behaviour
 Targeted
marketing basedonprevious browsing
history
G
 Fewerstaffrequired
inthefinance
functiontoanalysedata H

 Better
controlofinventories
fromrealtimeinventory
reports (2 marks)

17 WhichTWOofthefollowing
aretrueofcustomer
relationship
management
(CRM)
systems?
 Theyanalysea customer's
interactions
withanorganisation
throughout
the
customer
lifecycle
 Thesoftwaresubscription
andpurchasefeesareinexpensive
 Theyallowmarketing
communication tobetailored
tothecustomer's
interests
 CRMsystemsrequire
nostafftraining (2 marks)

18 Matchthefollowing
levels
inthedatapyramid
totheappropriate
explanation.

Levels Level Explanation

Data Adding
value
Information Revealing
relationships
Knowledge Providing
insights
Wisdom Making
measurements
(2 marks)

Questions7

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19 Whichof the followingis an externalsourceof information?
 Valueof sales, analysed foreach customer
 Valueof purchases,analysed foreach supplier
 Pricesof similarproducts,analysed foreach competitorcompany
 Hoursworked,analysed foreach employee (2 marks)

20 Arethe followingstatements about data and informationsystemstrue or false?

In-depthanalysisof data on a database inorderto identify TRUE FALSE
undiscoveredtrends or patterns inthe data isknownas
data mining.
Largepublicdatabases are a majorsourceof feedbackfor TRUE FALSE
many commercialorganisations.
(2 marks)

21 Whichof the followingstatements concerningbig data analyticsis correct?

 Itrelieson digitalinformation
 Itrelieson writteninformation
 Itrelieson verbalinformation
 Itrelieson confidentialinformation (2 marks)
G H

22 Arethe followingstatements about managementinformationsystemstrue or false?

Budgetarycontrolinformationcomesmainlyfromsources TRUE FALSE
outsidethe organisation.
AnEISprovidesan integrateddatabase systemforthe TRUE FALSE
managementof operations.
(2 marks)

23 Matchthe informationsystemwiththe appropriatelevelon the data pyramid.

Information
Information system system Level

Expertsystem Data
Transactionprocessing
system Information
Decisionsupportsystem Knowledge
Managementinformation
system Wisdom

(2 marks)

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24 Whichof the followingstatements is/are true?
(1) EnterpriseResourcePlanning(ERP)systemsuse complexcomputersystems,usually
comprehensivedatabases, to provideplans foreveryaspect of the business.
(2) EnterpriseResourcePlanning(ERP)systemsare accountingorientedinformation Q
systemswhichaid inidentifyingand planningthe enterprisewideresourcesneeded U
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to resource,make,account forand delivercustomerorders. T
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 1only S
 2 only
 Both1and 2
 Neither1nor 2 (2 marks)

25 WhichTWOof the followingare risksof usingbig data?

 Veracityof data used
 Volumeof data used
 Securityof data collected
 Theuse of real timedata (2 marks)

26 Whichof the followingcontrolsis used to ensureaccuracy of data?

 Dial-back
 Firewall
G H

 Encryption
 Validation (2 marks)

27 WhichTWOof the followingare waysthat big data can be used to improveperformance?

 Reducingthe numberof data analysts (reducinglabourcosts)
 Stockingproductsthat customerswant (increasingsales)
 Beingable to apply target advertising(increasingsales)
 Costs saved by collectinglessdata (reducingcosts) (2 marks)

28 Arethe followingstatements about big data and data analyticstrue or false?

Bigdata can be used to provideinsightsintocosts. TRUE FALSE
Socialmediais a sourceof big data. TRUE FALSE
Predictiveanalyticsis a branch of data analytics. TRUE FALSE
(2 marks)

Questions 9

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29 Whichof the followingsystemshelpsmanagers to see trends and makestrategic
decisions?


Picklist:
Transactionprocessingsystem(TPS)
Managementinformationsystem(MIS)
Executiveinformationsystem(EIS)
Enterpriseresourceplanningsystems(ERPS) (2 marks)

30 Arethe followingstatements about big data analyticstrue or false?

Itenableslarge quantitiesof data to be examinedquickly. TRUE FALSE
Itimprovesorganisationaldecision-making. TRUE FALSE
Itenablescost reduction. TRUE FALSE
Itrequiresadherenceto data privacylaws TRUE FALSE
(2 marks)

Section C question

31 Story 36 mins
G H

Storyis a well-established,globalpublishingconglomerate.Thecorporationis structuredto allow

each countryof operationto functionas an autonomousbusinessunit,that reportsback to head
office.Thedata fromeach businessunitis entered onto the mainframecomputerat head office.
Eachbusinessunitcan makeuse of any serviceofferedby other businessunitsand can also offer
servicesto the otherunits.Theservicesincludetranslationintodifferentlanguages,typesetting,
printing,storage and so forth.Ineach countryof operationthere is at least one, and usually
several,retailoutlets.
Thecore businesswas traditionallybased uponthe provisionof fictionalstoriesforthe mass
market.Forthe past decade Storyhas diversifiedintopublishingtextbooksand technical
literature.Theorganisationcurrentlyenjoysa good reputationinboth areas of the businessand
globalsales are increasingannuallyat a rate of 5%forfictionalbooksand 2%fortextbooks.Last
year 700 millionfictionalworksand 25 milliontextbooksweresold.
Thecorporatemanagementteam wishto increasethe growthinsales of textbooksbut realise
that they cannot affordto allocatesignificantresourcesto thistask as the market,and profit
margin,fortextbooksis verymuchsmallerthan forfiction.Theyalso wishto improvethe sales
performanceof the fictionalbooks.
Storyis currentlyhavingtroubleinmaintaininga corporateimageinsomecountriesof operation.
Forexample,severalbusinessunitsmay be unawareof additionsto the productrange. Another
exampleis that a pricechange ina bookis not simultaneouslyaltered by allthe businessunits,
leadingto pricingdiscrepancies.
Somemembersof the corporatemanagementteam see possibleadvantages to upgradingthe
existingcomputersystemto one that is fullynetworked.Othermembersare morescepticaland
are reluctantto considerenhancingthe system.Somemembershave also wonderedwhetherbig
data couldprovideusefulinformationto aid decision-makingforStorybut othersthinkthere may
be problemswithactuallyusingbig data.

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Required
(a) Discussthe issuesinvolvedinupgradingthe existinginformationsystemand the proposed
changes, withreferenceto both the widerbusinessenvironmentand the decision-making
process. (8 marks)
(b) Explainthe problemsStorymay have tryingto capture and use big data. (6 marks) Q
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(c) Managementinformationsystems(MIS)allowmanagers to maketimelyand effective
decisionsusingdata inan appropriateform.Listthree types of MISand howthey wouldbe N
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used inan organisation. (6 marks)
(Total = 20 marks)

G H

Questions 11

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