Chapter 1

1) Computerized support is only used for organizational decisions that are responses to
external pressures, not for taking advantage of opportunities.

Answer: FALSE

2) The complexity of today's business environment creates many new challenges for
organizations, such as global competition, but creates few new opportunities in return.

Answer: FALSE

3) In addition to deploying business intelligence (BI) systems, companies may also perform
other actions to counter business pressures, such as improving customer service and
entering business alliances.

Answer: TRUE

4) The overwhelming majority of competitive actions taken by businesses today feature

computerized information system support.

Answer: TRUE

5) PCs and, increasingly, mobile devices are the most common means of providing managers
with information to directly support decision making, instead of using IT staff intermediaries.

Answer: TRUE

6) In today's business environment, creativity, intuition, and interpersonal skills are effective
substitutes for analytical decision making.

Answer: FALSE

7) In a four-step process for decision making, managers construct a model of the problem
before they evaluate potential solutions.

Answer: TRUE

8) Due to the fact that business environments are now more complex than ever, trial-and-
error is an effective means of arriving at acceptable solutions.

Answer: FALSE

9) Group collaboration software has proved generally ineffective at improving decision-

making.

Answer: FALSE

10) Due to the fact that organizations seek to store greater amounts of data than ever
before, the cost per byte of computer-based data storage devices is rapidly rising.

Answer: FALSE
11) Computerized information systems help decision makers overcome human cognitive
limitations in assembling and processing varied information. However, this is of little use in
most analytical applications.

Answer: FALSE

12) In the Gorry and Scott-Morton framework of structured, semi-structured, and

unstructured decisions, computerized decision support can bring benefits to unstructured
decisions.

Answer: TRUE

13) The term decision support system is a very specific term that implies the same tool,
system, and development approach to most developers.

Answer: FALSE

14) The access to data and ability to manipulate data (frequently including real-time data)
are key elements of business intelligence (BI) systems.

Answer: TRUE

15) One of the four components of BI systems, business performance management, is a

collection of source data in the data warehouse.

Answer: FALSE

16) Actionable intelligence is the primary goal of modern-day Business Intelligence (BI)
systems vs. historical reporting that characterized Management Information Systems (MIS).

Answer: TRUE

17) The use of dashboards and data visualizations is seldom effective in finding efficiencies in
organizations, as demonstrated by the Seattle Children's Hospital Case Study.

Answer: FALSE

18) The use of statistics in baseball by the Oakland Athletics, as described in the Moneyball
case study, is an example of the effectiveness of prescriptive analytics.

Answer: TRUE

19) Pushing programming out to distributed data is achieved solely by using the Hadoop
Distributed File System or HDFS.

Answer: FALSE

20) Volume, velocity, and variety of data characterize the Big Data paradigm.

Answer: TRUE

21) In the Magpie Sensing case study, the automated collection of temperature and
humidity data on shipped goods helped with various types of analytics. Which of the
following is an example of prescriptive analytics?
A) real time reports of the shipment's temperature
B) warning of an open shipment seal
C) location of the shipment
D) optimal temperature setting

22) In the Magpie Sensing case study, the automated collection of temperature and
humidity data on shipped goods helped with various types of analytics. Which of the
following is an example of predictive analytics?
A) real time reports of the shipment's temperature
B) warning of an open shipment seal
C) location of the shipment
D) optimal temperature setting

23) Which of the following is NOT an example that falls within the four major categories of
business environment factors for today's organizations?
A) globalization
B) increased pool of customers
C) fewer government regulations
D) increased competition

24) Organizations counter the pressures they experience in their business environments in
multiple ways. Which of the following is NOT an effective way to counter these pressures?
A) reactive actions
B) anticipative actions
C) adaptive actions
D) retroactive actions

25) Which of the following activities permeates nearly all managerial activity?
A) planning
B) controlling
C) directing
D) decision-making

26) Why are analytical decision making skills now viewed as more important than
interpersonal skills for an organization's managers?
A) because interpersonal skills are never important in organizations
B) because personable and friendly managers are always the least effective
C) because analytical-oriented managers produce better results over time
D) because analytical-oriented managers tend to be flashier and less methodical

27) Business environments and government requirements are becoming more complex. All
of the following actions to manage this complexity would be appropriate EXCEPT
A) hiring more sophisticated and computer-savvy managers.
B) deploying more sophisticated tools and technique.
C) seeking new ways to avoid government compliance.
D) avoiding expensive trial and error to find out what works.

28) The deployment of large data warehouses with terabytes or even petabytes of data been
crucial to the growth of decision support. All the following explain why EXCEPT
A) data warehouses have enabled the affordable collection of data for analytics.
B) data warehouses have enabled the collection of decision makers in one place.
C) data warehouses have assisted the collection of data for data mining.
D) data warehouses have assisted the collection of data from multiple sources.
29) Which of the following statements about cognitive limits of organizational decision
makers is true?
A) Only top managers make decisions where cognitive limits are strained.
B) The most talented and effective managers do not have cognitive limitations.
C) All organizational decision-making requires data beyond human cognitive limits.
D) Cognitive limits affect both the recall and use of data by decision makers.

30) For the majority of organizations, evaluating the credit rating of a potential business
partner is a(n)
A) strategic decision.
B) structured decision.
C) unstructured decision.
D) managerial control decision.

31) For the majority of organizations, a daily accounts receivable transaction is a(n)
A) strategic decision.
B) structured decision.
C) unstructured decision.
D) managerial control decision.

32) All of the following may be viewed as decision support systems EXCEPT
A) an expert system to diagnose a medical condition.
B) a knowledge management system to guide decision makers.
C) a system that helps to manage the organization's supply chain management.
D) a retail sales system that processes customer sales transactions.

33) Business intelligence (BI) can be characterized as a transformation of

A) data to information to decisions to actions.
B) Big Data to data to information to decisions.
C) actions to decisions to feedback to information.
D) data to processing to information to actions.

34) In answering the question "Which customers are most likely to click on my online ads
and purchase my goods?", you are most likely to use which of the following analytic
applications?
A) customer profitability
B) propensity to buy
C) customer attrition
D) channel optimization

35) In answering the question "Which customers are likely to be using fake credit cards?",
you are most likely to use which of the following analytic applications?
A) channel optimization
B) customer segmentation
C) fraud detection
D) customer profitability

36) When Sabre developed their Enterprise Data Warehouse, they chose to use near-real-
time updating of their database. The main reason they did so was
A) to provide a 360 degree view of the organization.
B) to aggregate performance metrics in an understandable way.
C) to be able to assess internal operations.
D) to provide up-to-date executive insights.

37) How are descriptive analytics methods different from the other two types?
A) They answer "what-if?" queries, not "how many?" queries.
B) They answer "what-is?" queries, not "what will be?" queries.
C) They answer "what to do?" queries, not "what-if?" queries.
D) They answer "what will be?" queries, not "what to do?" queries.

38) Prescriptive BI capabilities are viewed as more powerful than predictive ones for all the
following reasons EXCEPT
A) prescriptive BI gives actual guidance as to actions.
B) understanding the likelihood of certain events often leaves unclear remedies.
C) only prescriptive BI capabilities have monetary value to top-level managers.
D) prescriptive models generally build on (with some overlap) predictive ones.

39) Which of the following statements about Big Data is true?

A) Data chunks are stored in different locations on one computer.
B) Hadoop is a type of processor used to process Big Data applications.
C) MapReduce is a storage filing system.
D) Pure Big Data systems do not involve fault tolerance.

40) Big Data often involves a form of distributed storage and processing using Hadoop and
MapReduce. One reason for this is
A) centralized storage creates too many vulnerabilities.
B) the "Big" in Big Data necessitates over 10,000 processing nodes.
C) the processing power needed for the centralized model would overload a single
computer.
D) Big Data systems have to match the geographical spread of social media.

The desire by a customer to customize a product falls under the ________ category of
business environment factors.

consumer demand

An older and more diverse workforce falls under the ________ category of business
environment factors.

Societal

Organizations using BI systems are typically seeking to ________ the gap between the
organization's current and desired performance.

close

Mintzberg defines the ________ as a managerial role that involves searching the
environment for new opportunities

entrepreneur

Group communication and ________ involves decision makers who are likely to be in
different locations.

collaboration
________ technology enables managers to access and analyze information anytime and
from anyplace.

Wireless

A(n) ________ problem such as setting budgets for products is one that has some structured
elements and some unstructured elements also.

semistructured

A(n) ________ problem such as new technology development is one that has very few
structured elements.

unstructured

________ is an umbrella term that combines architectures, tools, databases, analytical tools,
applications, and methodologies.

Business intelligence

A(n) ________ is a major component of a Business Intelligence (BI) system that holds source
data.

data warehouse

A(n) ________ is a major component of a Business Intelligence (BI) system that is usually
browser based and often presents a portal or dashboard.

user interface

________ cycle times are now extremely compressed, faster, and more informed across
industries.

Business

The fraud ________ analytic application helps determine fraudulent events and take action.

detection

Sabre used executive ________ to present performance metrics in a concise way to its
executives.

dashboards

________ analytics help managers understand current events in the organization including
causes, trends, and patterns.

Descriptive

________ analytics help managers understand probable future outcomes.

Predictive

________ analytics help managers make decisions to achieve the best performance in the
future.

Prescriptive
The Google search engine is an example of Big Data in that it has to search and index billions
of ________ in fractions of a second for each search.

web pages

The filing system developed by Google to handle Big Data storage challenges is known as the
________ Distributed File System.

Hadoop

The programming algorithm developed by Google to handle Big Data computational

challenges is known as ________.

MapReduce

Chapter 2
1) When HP approaches problem-solving, the first step in solving business problems is
building a model that enables decision makers to develop a good understanding of the
problem.

Answer: FALSE

2) In a decision making environment, continuous change always validates the assumptions of

the decision makers.

Answer: FALSE

3) The most important feature of management support systems is the computational

efficiency involved in making a decision.

Answer: FALSE

4) Web-based decision support systems can provide support to both individuals and groups
that act in a decision-making capacity.

Answer: TRUE

5) Single decision makers rarely face decisions with multiple objectives in organizations and
so are not the focus of data analytics tools.

Answer: FALSE

6) The design phase of decision making is where the decision maker examines reality and
identifies and defines the problem.

Answer: FALSE

7) Only after the failed implementation of a decision can the decision maker return a prior
stage of decision making.

Answer: FALSE

8) Web-based collaboration tools (e.g., GSS) can assist in multiple stages of decision making,
not just the intelligence phase.

Answer: TRUE
9) Uncovering the existence of a problem can be achieved through monitoring and analyzing
of the organization's productivity level. The derived measurements of productivity are based
on real data

Answer: TRUE

10) Qualitative elements of a problem cannot be incorporated into formal decision models,
so one can only seek to minimize their impact.

Answer: FALSE

11) Since the business environment involves considerable uncertainty, a manager cannot
use modeling to estimate the risks resulting from specific actions.

Answer: FALSE

12) A normative model examines all the possible alternatives in order to prove that the one
selected is the best.

Answer: TRUE

13) Since a descriptive model checks the performance of the system for only a subset of all
possible alternatives, there is no guarantee that a selected alternative will be optimal.

Answer: TRUE

14) Generating alternatives manually is often necessary in the model-building process. The
best option for the decision makers is to generate as many of these alternatives as is
conceivable.

Answer: FALSE

15) Generally speaking, people intuitively estimate risk quite accurately.

Answer: FALSE

16) A data warehouse can support the intelligence phase of decision making by continuously
monitoring both internal and external information, looking for early signs of problems and
opportunities through a Web-based enterprise information portal or dashboard.

Answer: TRUE

17) Business intelligence systems typically support solving a certain problem or evaluate an
opportunity, while decision support systems monitor situations and identify problems
and/or opportunities, using analytic methods.

Answer: FALSE

18) Artificial intelligence-based DSS fall into this category of document-driven DSS.

Answer: FALSE

19) The DSS component that includes the financial, statistical, management science, or other
quantitative models is called the model management subsystem.

Answer: TRUE
20) Knowledge-based management subsystems provide intelligence to augment the decision
maker's own intelligence.

Answer: TRUE

21) The HP Case illustrates that after analytics are chosen to solve a problem, building a new
decision model from scratch or purchasing one may not always be the best approach. Why is
that?
A) Decision models should never be purchased, only developed in house.
B) A related tool requiring slight modification may already exist.
C) CIOs are more likely to allocate funds to new development.
D) Analytic models work better when they are built from scratch or purchased.

22) Groupthink in a decision-making environment occurs when

A) group members all use the same analytic tools without having a choice.
B) group members accept the same timeframe for problem solving without complaining.
C) group members all accept a course of action without thinking for themselves.
D) group members are all working together for the firm's success.

23) All of the following statements about decision style are true EXCEPT
A) autocratic styles are authority-based.
B) decision styles are consistent among top managers.
C) heuristic styles can also be democratic.
D) decision styles may vary among lower-level managers.

24) A search for alternatives occurs in which phase of the decision making/action model?
A) the design phase
B) the intelligence phase
C) the choice phase
D) the implementation phase

25) All of the following are benefits of using models for decision support EXCEPT
A) it is easier to manipulate a model than a real system.
B) you can find out probable outcomes of an action before actually taking it.
C) using well-designed models always guarantees you success in implementation.
D) the cost of a model is usually much lower than manipulating the system in
implementation.

26) In the design phase of decision making, selecting a principle of choice or criteria means
that
A) if an objective model is used with hard data, all decision makers will make the same
choice.
B) risk acceptability is a subjective concept and plays little part in modeling.
C) using well-designed models guarantees you success in real life.
D) optimality is not the only criterion for acceptable solutions.

27) What form of decision theory assumes that decision makers are rational beings who
always seek to strictly maximize economic goals?
A) the theory of bounded rationality
B) normative decision theory
C) satisficing decision theory
D) human optimal decision theory

28) When an Accounts Payable department improves their information system resulting in
faster payments to vendors, without the Accounts Receivable Department doing the same,
leading to a cash flow crunch, what can we say happened in decision-theoretic terms?
A) optimization
B) profit minimization
C) suboptimization
D) cash flow problems

29) All of the following statements about risk in decision making are correct EXCEPT
A) all business decisions incorporate an element of risk.
B) decision makers frequently measure risk and uncertainty incorrectly.
C) methodologies are available for handling extreme uncertainty.
D) most decision makers are pessimistic about decision outcomes.

30) The Web can play a significant role in making large amounts of information available to
decision makers. Decision makers must be careful that this glut of information does not
A) increase their enthusiasm for data available on the web.
B) take on the same credibility of internally-generated data.
C) take on the same role as human intuition.
D) detract from the quality and speed of decision making.

31) All of the following statements about the decision implementation phases are true
EXCEPT
A) implementation is every bit as important as the decision itself.
B) employees need only the decisions from the CEO, not the rationale.
C) ERP, CRP, and BPM tools can all help track decision implementation.
D) ES and KMS can help in training and support for decision implementation.

32) For DSS, why are semistructured or unstructured decisions the main focus of support?
A) There are many more unstructured and semistructured decisions than structured in
organizations.
B) MIS staff prefer to work on solving unstructured and semistructured decisions.
C) Unstructured and semistructured decisions are the easiest to solve.
D) They include human judgment, which is incorporated into DSS.

33) What class of DSS incorporates simulation and optimization?

A) model-driven DSS
B) data-driven DSS
C) communications-driven/Group DSS
D) knowledge-driven DSS

34) When a DSS is built, used successfully and integrated into the company's business
processes, it was most likely built for a(n)
A) recurrent decision.
B) one-off decision.
C) unimportant decision.
D) ambiguous decision.
35) The fact that many organizations share many similar problems means that in sourcing a
DSS, it is often wiser to acquire a(n)
A) ready-made DSS.
B) custom-made DSS.
C) offshored DSS.
D) consultant-developed DSS.

36) The software that manages the DSS database and enables relevant data to be accessed
by DSS application programs is called
A) KWS.
B) ERP.
C) DBMS.
D) CRM.

37) The model management subsystem provides the system's analytical capabilities and
appropriate software management. Which of the following is NOT an element of the model
management subsystem?
A) model base
B) MBMS
C) DBMS
D) model execution, integration, and command processor

38) While Microsoft Excel can be an efficient tool for developing a DSS, compared to using a
programming language like C++, a shortcoming of Excel is
A) it cannot be used effectively for small or medium sized problems.
B) Excel is not widely understood compared to a language like C++.
C) it is not widely available for purchase.
D) errors can creep into formulas somewhat easily.

39) What type of user interface has been recognized as an effective DSS GUI because it is
familiar, user friendly, and a gateway to almost all sources of necessary information and
data?
A) ASP.net
B) Web browsers
C) visual basic interfaces
D) mainframe interfaces

40) The user communicates with and commands the DSS through the user interface
subsystem. Researchers assert that some of the unique contributions of DSS are derived
from
A) the Web browser.
B) the user being considered part of the system.
C) some DSS user interfaces utilizing natural-language input (i.e., text in a human language).
D) the intensive interaction between the computer and the decision maker.

At two opposite ends of the spectrum are autocratic and ________ decision styles.

democratic

________ in decision making involves scanning the environment, either intermittently or

continuously.
Intelligence

The elevators case study shows that correct problem ________ is important in decision-
making.

identification

________ is the conceptualization of a problem in an attempt to place it in a definable

category, possibly leading to a standard solution approach.

Problem classification

In creating a normative model, a decision maker examines all the alternatives to prove that
the one selected is indeed the best, and is what the person would normally want. This
process is basically known as ________.

optimization

A(n) ________ is a typically mathematically based model that describes things as they are or
as they are believed to be.

descriptive model

A(n) ________ map can help a decision maker sketch out the important qualitative factors
and their causal relationships in a messy decision-making situation.

cognitive

The best decision makers accurately estimate the ________ associated with decision
alternatives to aid their selection.

risk

The ________ phase involves putting a recommended solution to work, not necessarily
implementing a computer system.

implementation

Early definitions of a(n) ________ identified it as a system intended to support managerial

decision makers in semistructured and unstructured decision situations.

decision support system (DSS)

DSS applications have been classified in several different ways. ________-driven DSS rely on
knowledge coding, analysis, search, and retrieval for decision support.

Document

DSS developed around optimization or simulation models and incorporate model

formulation, maintenance, and management in distributed computing environments, are
known as ________-driven DSS.

model

A DSS application can employ a data management subsystem, a model management

subsystem, a user interface subsystem, and a(n) ________.

knowledge-based management subsystem (KBMS)

The model management subsystem includes financial, statistical, management science, and
other quantitative models that provide the system's analytical capabilities plus appropriate
software management. This software is often called a(n) ________.

model base management system (MBMS)

In the Station Casinos case, the decision support system brought about benefits from being
able to capture, analyze and segment ________.

customers

Because DSS deal with semistructured or unstructured problems, it is often necessary to

customize models, using programming tools and languages. For small and medium-sized DSS
or for less complex ones, ________ software is usually used.

spreadsheet

The user communicates with and commands the DSS through the ________ subsystem.

user interface

The knowledge-based management subsystem can be interconnected with the

organization's knowledge repository (part of a knowledge management system [KMS]),
which is sometimes called the ________.

organizational knowledge base

The Watson Question Answering computing platform uses machine ________ to acquire
vast amounts of new medical knowledge.

learning

Geographical Information Systems (GIS) can be readily integrated with other, more
traditional ________ components and tools for improved decision making.

decision support system (DSS)

Chapter 3
In the Isle of Capri case, the only capability added by the new software was increased
processing speed of processing reports. (T/F)

FALSE

The "islands of data" problem in the 1980s describes the phenomenon of unconnected data
being stored in numerous locations within an organization. (T/F)

TRUE

Subject oriented databases for data warehousing are organized by detailed subjects such as
disk drives, computers, and networks. (T/F)

FALSE

Data warehouses are subsets of data marts.(T/F)

FALSE
One way an operational data store differs from a data warehouse is the recency of their
data.(T/F)

TRUE

Organizations seldom devote a lot of effort to creating metadata because it is not important
for the effective use of data warehouses.(T/F)

FALSE

Without middleware, different BI programs cannot easily connect to the data

warehouse.(T/F)

TRUE

Two-tier data warehouse/BI infrastructures offer organizations more flexibility but cost
more than three-tier ones.(T/F)

FALSE

Moving the data into a data warehouse is usually the easiest part of its creation.(T/F)

FALSE

The hub-and-spoke data warehouse model uses a centralized warehouse feeding dependent
data marts.(T/F)

TRUE

Because of performance and data quality issues, most experts agree that the federated
architecture should supplement data warehouses, not replace them.(T/F)

TRUE

Bill Inmon advocates the data mart bus architecture whereas Ralph Kimball promotes the
hub-and-spoke architecture, a data mart bus architecture with conformed dimensions.(T/F)

FALSE

The ETL process in data warehousing usually takes up a small portion of the time in a data-
centric project.(T/F)

FALSE

In the Starwood Hotels case, up-to-date data and faster reporting helped hotel managers
better manage their occupancy rates.(T/F)

TRUE

Large companies, especially those with revenue upwards of $500 million consistently reap
substantial cost savings through the use of hosted data warehouses.(T/F)

FALSE

OLTP systems are designed to handle ad hoc analysis and complex queries that deal with
many data items.(T/F)

FALSE
The data warehousing maturity model consists of six stages: prenatal, infant, child, teenager,
adult, and sage.(T/F)

TRUE

A well-designed data warehouse means that user requirements do not have to change as
business needs change.(T/F)

FALSE

Data warehouse administrators (DWAs) do not need strong business insight since they only
handle the technical aspect of the infrastructure.(T/F)

FALSE

Because the recession has raised interest in low-cost open source software, it is now set to
replace traditional enterprise software.(T/F)

FALSE

The "single version of the truth" embodied in a data warehouse such as Capri Casinos'
means all of the following EXCEPT
A) decision makers get to see the same results to queries.
B) decision makers have the same data available to support their decisions.
C) decision makers get to use more dependable data for their decisions.
D) decision makers have unfettered access to all data in the warehouse.

Operational or transaction databases are product oriented, handling transactions that

update the database. In contrast, data warehouses are
A) subject-oriented and nonvolatile.
B) product-oriented and nonvolatile.
C) product-oriented and volatile.
D) subject-oriented and volatile.

Which kind of data warehouse is created separately from the enterprise data warehouse by
a department and not reliant on it for updates?
A) sectional data mart
B) public data mart
C) independent data mart
D) volatile data mart

All of the following statements about metadata are true EXCEPT

A) metadata gives context to reported data.
B) there may be ethical issues involved in the creation of metadata.
C) metadata helps to describe the meaning and structure of data.
D) for most organizations, data warehouse metadata are an unnecessary expense.

A Web client that connects to a Web server, which is in turn connected to a BI application
server, is reflective of a
A) one tier architecture.
B) two tier architecture.
C) three tier architecture.
D) four tier architecture.
Which of the following BEST enables a data warehouse to handle complex queries and scale
up to handle many more requests?
A) use of the web by users as a front-end
B) parallel processing
C) Microsoft Windows
D) a larger IT staff

Which data warehouse architecture uses metadata from existing data warehouses to create
a hybrid logical data warehouse comprised of data from the other warehouses?
A) independent data marts architecture
B) centralized data warehouse architecture
C) hub-and-spoke data warehouse architecture
D) federated architecture

Which data warehouse architecture uses a normalized relational warehouse that feeds
multiple data marts?
A) independent data marts architecture
B) centralized data warehouse architecture
C) hub-and-spoke data warehouse architecture
D) federated architecture

Which approach to data warehouse integration focuses more on sharing process

functionality than data across systems?
A) extraction, transformation, and load
B) enterprise application integration
C) enterprise information integration
D) enterprise function integration

In which stage of extraction, transformation, and load (ETL) into a data warehouse are data
aggregated?
A) transformation
B) extraction
C) load
D) cleanse

In which stage of extraction, transformation, and load (ETL) into a data warehouse are
anomalies detected and corrected?
A) transformation
B) extraction
C) load
D) cleanse

Data warehouses provide direct and indirect benefits to using organizations. Which of the
following is an indirect benefit of data warehouses?
A) better and more timely information
B) extensive new analyses performed by users
C) simplified access to data
D) improved customer service

All of the following are benefits of hosted data warehouses EXCEPT

A) smaller upfront investment.
B) better quality hardware.
C) greater control of data.
D) frees up in-house systems.

When representing data in a data warehouse, using several dimension tables that are each
connected only to a fact table means you are using which warehouse structure?
A) star schema
B) snowflake schema
C) relational schema
D) dimensional schema

When querying a dimensional database, a user went from summarized data to its underlying
details. The function that served this purpose is
A) dice.
B) slice.
C) roll-up.
D) drill down.

Which of the following online analytical processing (OLAP) technologies does NOT require
the precomputation and storage of information?
A) MOLAP
B) ROLAP
C) HOLAP
D) SQL

Which of the following statements is more descriptive of active data warehouses in contrast
with traditional data warehouses?
A) strategic decisions whose impacts are hard to measure
B) detailed data available for strategic use only
C) large numbers of users, including operational staffs
D) restrictive reporting with daily and weekly data currency

How does the use of cloud computing affect the scalability of a data warehouse?
A) Cloud computing vendors bring as much hardware as needed to users' offices.
B) Hardware resources are dynamically allocated as use increases.
C) Cloud vendors are mostly based overseas where the cost of labor is low.
D) Cloud computing has little effect on a data warehouse's scalability.

40) All of the following are true about in-database processing technology EXCEPT
A) it pushes the algorithms to where the data is.
B) it makes the response to queries much faster than conventional databases.
C) it is often used for apps like credit card fraud detection and investment risk management.
D) it is the same as in-memory storage technology

With ________ data flows, managers can view the current state of their businesses and
quickly identify problems.

real-time

In ________ oriented data warehousing, operational databases are tuned to handle

transactions that update the database.
product

The three main types of data warehouses are data marts, operational ________, and
enterprise data warehouses.

datastores

________ describe the structure and meaning of the data, contributing to their effective
use.

Metadata

Most datawarehouses are built using ________ database management systems to control
and manage the data.

relational

A(n) ________ architecture is used to build a scalable and maintainable infrastructure that
includes a centralized data warehouse and several dependent data marts.

hub-and-spoke

The ________ data warehouse architecture involves integrating disparate systems and
analytical resources from multiple sources to meet changing needs or business conditions.

federated

Data ________ comprises data access, data federation, and change capture.

integration

________ is a mechanism that integrates application functionality and shares functionality

(rather than data) across systems, thereby enabling flexibility and reuse.

Enterprise application integration (EAI)

________ is a mechanism for pulling data from source systems to satisfy a request for
information. It is an evolving tool space that promises real-time data integration from a
variety of sources, such as relational databases, Web services, and multidimensional
databases.

Enterprise information integration (EII)

Performing extensive ________ to move data to the data warehouse may be a sign of poorly
managed data and a fundamental lack of a coherent data management strategy.

Answer: extraction, transformation, and load (ETL)

The ________ Model, also known as the EDW approach, emphasizes top-down
development, employing established database development methodologies and tools, such
as entity-relationship diagrams (ERD), and an adjustment of the spiral development
approach.

Answer: Inmon

The ________ Model, also known as the data mart approach, is a "plan big, build small"
approach. A data mart is a subject-oriented or department-oriented data warehouse. It is a
scaled-down version of a data warehouse that focuses on the requests of a specific
department, such as marketing or sales.

Answer: Kimball

________ modeling is a retrieval-based system that supports high-volume query access.

Answer: Dimensional

Online ________ is arguably the most commonly used data analysis technique in data
warehouses.

Answer: analytical processing

Online ________ is a term used for a transaction system that is primarily responsible for
capturing and storing data related to day-to-day business functions such as ERP, CRM, SCM,
and point of sale.

Answer: transaction processing

In the Michigan State Agencies case, the approach used was a(n) ________ one, instead of
developing separate BI/DW platforms for each business area or state agency.

Answer: enterprise

The role responsible for successful administration and management of a data warehouse is
the ________, who should be familiar with high-performance software, hardware, and
networking technologies, and also possesses solid business insight.

Answer: data warehouse administrator (DWA)

________, or "The Extended ASP Model," is a creative way of deploying information system
applications where the provider licenses its applications to customers for use as a service on
demand (usually over the Internet)

Answer: SaaS (software as a service)

________ (also called in-database analytics) refers to the integration of the algorithmic
extent of data analytics into data warehouse.

In-database processing

Chapter 4
The WebFOCUS BI platform in the Travel and Transport case study decreased clients'
reliance on the IT function when seeking system reports.

True

The dashboard for the WebFOCUS BI platform in the Travel and Transport case study
required client side software to operate.

False

Data is the contextualization of information, that is, information set in context.

False
The main difference between service level agreements and key performance indicators is
the audience.

True

The balanced scorecard is a type of report that is based solely on financial metrics.

False

The data storage component of a business reporting system builds the various reports and
hosts them for, or disseminates them to users. It also provides notification, annotation,
collaboration, and other services.

False

In the FEMA case study, the BureauNet software was the primary reason behind the
increased speed and relevance of the reports FEMA employees received.

True

Google Maps has set new standards for data visualization with its intuitive Web mapping
software.

True

There are basic chart types and specialized chart types. A Gantt chart is a specialized chart
type.

True

Visualization differs from traditional charts and graphs in complexity of data sets and use of
multiple dimensions and measures.

True

When telling a story during a presentation, it is best to avoid describing hurdles that your
character must overcome, to avoid souring the mood.

False

For best results when deploying visual analytics environments, focus only on power users
and management to get the best return on your investment.

False

Information density is a key characteristic of performance dashboards.

True

In the Dallas Cowboys case study, the focus was on using data analytics to decide which
players would play every week.

False

One comparison typically made when data is presented in business intelligence systems is a
comparison against historical values.

True
The best key performance indicators are derived independently from the company's
strategic goals to enable developers to "think outside of the box."

False

The BPM development cycle is essentially a one-shot process where the requirement is to
get it right the first time.

False

With key performance indicators, driver KPIs have a significant effect on outcome KPIs, but
the reverse is not necessarily true.

True

With the balanced scorecard approach, the entire focus is on measuring and managing
specific financial goals based on the organization's strategy.

False

A Six Sigma deployment can be deemed effective even if the number of defects are not
reduced to 3.4 defects per million.

False

For those executives who do not have the time to go through lengthy reports, the best
alternative is the
A) last page of the report.
B) raw data that informed the report.
C) executive summary.
D) charts in the report.

All of the following are true about external reports between businesses and the government
EXCEPT
A) they can include tax and compliance reporting.
B) they can be filed nationally or internationally.
C) they are standardized for the most part to reduce the regulatory burden.
D) their primary focus is government.

Kaplan and Norton developed a report that presents an integrated view of success in the
organization called
A) metric management reports.
B) balanced scorecard-type reports.
C) dashboard-type reports.
D) visual reports.

Which component of a reporting system contains steps detailing how recorded transactions
are converted into metrics, scorecards, and dashboards?
A) data supply
B) business logic
C) extract, transform and load
D) assurance
Which of the following is LEAST related to data/information visualization?
A) information graphics
B) scientific visualization
C) statistical graphics
D) graphic artwork

The Internet emerged as a new medium for visualization and brought all the following
EXCEPT
A) worldwide digital distribution of visualization.
B) immersive environments for consuming data.
C) new forms of computation of business logic.
D) new graphics displays through PC displays.

Which kind of chart is described as an enhanced variant of a scatter plot?

A) heat map
B) bullet
C) pie chart
D) bubble chart

Which type of visualization tool can be very helpful when the intention is to show relative
proportions of dollars per department allocated by a university administration?
A) heat map
B) bullet
C) pie chart
D) bubble chart

Which type of visualization tool can be very helpful when a data set contains location data?
A) bar chart
B) geographic map
C) highlight table
D) tree map

Which type of question does visual analytics seeks to answer?

A) Why did it happen?
B) What happened yesterday?
C) What is happening today?
D) When did it happen?

When you tell a story in a presentation, all of the following are true EXCEPT
A) a story should make sense and order out of a lot of background noise.
B) a well-told story should have no need for subsequent discussion.
C) stories and their lessons should be easy to remember.
D) the outcome and reasons for it should be clear at the end of your story.

Benefits of the latest visual analytics tools, such as SAS Visual Analytics, include all of the
following EXCEPT
A) mobile platforms such as the iPhone are supported by these products.
B) it is easier to spot useful patterns and trends in the data.
C) they explore massive amounts of data in hours, not days.
D) there is less demand on IT departments for reports.
What is the management feature of a dashboard?
A) operational data that identify what actions to take to resolve a problem
B) summarized dimensional data to analyze the root cause of problems
C) summarized dimensional data to monitor key performance metrics
D) graphical, abstracted data to monitor key performance metrics

What is the fundamental challenge of dashboard design?

A) ensuring that users across the organization have access to it
B) ensuring that the organization has the appropriate hardware onsite to support it
C) ensuring that the organization has access to the latest web browsers
D) ensuring that the required information is shown clearly on a single screen

Contextual metadata for a dashboard includes all the following EXCEPT

A) whether any high-value transactions that would skew the overall trends were rejected as
a part of the loading process.
B) which operating system is running the dashboard server software.
C) whether the dashboard is presenting "fresh" or "stale" information.
D) when the data warehouse was last refreshed.

Dashboards can be presented at all the following levels EXCEPT

A) the visual dashboard level.
B) the static report level.
C) the visual cube level.
D) the self-service cube level.

Why is a performance management system superior to a performance measurement

system?
A) because performance measurement systems are only in their infancy
B) because measurement automatically leads to problem solution
C) because performance management systems cost more
D) because measurement alone has little use without action

Why is the customer perspective important in the balanced scorecard methodology?

A) because dissatisfied customers will eventually hurt the bottom line
B) because customers should always be included in any design methodology
C) because customers understand best how the firm's internal processes should work
D) because companies need customer input into the design of the balanced scorecard

All of the following statements about balanced scorecards and dashboards are true EXCEPT
A) scorecards are less preferred at operational and tactical levels.
B) dashboards would be the preferred choice to monitor production quality.
C) scorecards are best for real-time tracking of a marketing campaign.
D) scorecards are preferred for tracking the achievement of strategic goals.

What is Six Sigma?

A) a letter in the Greek alphabet that statisticians use to measure process variability
B) a methodology aimed at reducing the number of defects in a business process
C) a methodology aimed at reducing the amount of variability in a business process
D) a methodology aimed at measuring the amount of variability in a business process
A(n) ________ is a communication artifact, concerning business matters, prepared with the
specific intention of relaying information in a presentable form.

business report

Travel and Transport created an online BI self-service system that allowed ________ to
access information directly.

clients

There are only a few categories of business report: informal, ________, and short.

formal

In the Delta Lloyd Group case study, the ________ is the stage of the reporting process in
which consolidated figures are cited, formatted, and described to form the final text of the
report.

last mile

________ management reports are used to manage business performance through

outcome-oriented metrics in many organizations.

Metric

In the Blastrac case study, Tableau analytics software was used to replace massive ________
that were loaded with data from multiple ERP systems.

spreadsheets

________ charts are useful in displaying nominal data or numerical data that splits nicely

Bar

________ charts or network diagrams show precedence relationships among the project
activities/tasks.

PERT

________ are typically used together with other charts and graphs, as opposed to by
themselves, and show postal codes, country names, etc.

Maps

Typical charts, graphs, and other visual elements used in visualization-based applications
usually involve ________ dimensions.

two

Visual analytics is widely regarded as the combination of visualization and ________

analytics.

predictive

Dashboards present visual displays of important information that are consolidated and
arranged on a single ________.

screen
With dashboards, the layer of information that uses graphical, abstracted data to keep tabs
on key performance metrics is the ________ layer.

monitoring

In the Saudi Telecom company case study, information ________ software allowed
managers to see trends and correct issues before they became problems.

visualization

Performance dashboards enable ________ operations that allow the users to view
underlying data sources and obtain more detail.

drill-down

With a dashboard, information on sources of the data being presented, the quality and
currency of underlying data provide contextual ________ for users.

metadata

Business performance management comprises a ________ set of processes that link strategy
to execution with the goal of optimizing business performance.

closed-loop

In the Mace case study, the IBM Cognos software enabled the rapid creation of integrated
reports across 60 countries, replacing a large and complex ________.

spreadsheet

A strategically aligned metric is also known as a key ________.

performance indicator

The ________ perspective of the organization suggested by the balanced scorecard focuses
on business processes and how well they are running.

internal business process

Chapter 5
In the Cabela's case study, the SAS/Teradata solution enabled the direct marketer to better
identify likely customers and market to them based mostly on external data sources.

False

The cost of data storage has plummeted recently, making data mining feasible for more
firms.

True

Data mining can be very useful in detecting patterns such as credit card fraud, but is of little
help in improving sales.

False
The entire focus of the predictive analytics system in the Infinity P&C case was on detecting
and handling fraudulent claims for the company's benefit.

False

If using a mining analogy, "knowledge mining" would be a more appropriate term than "data
mining."

True

Data mining requires specialized data analysts to ask ad hoc questions and obtain answers
quickly from the system.

False

Ratio data is a type of categorical data.

False

Interval data is a type of numerical data.

True

In the Memphis Police Department case study, predictive analytics helped to identify the
best schedule for officers in order to pay the least overtime.

False

In data mining, classification models help in prediction.

True

Statistics and data mining both look for data sets that are as large as possible.

False

Using data mining on data about imports and exports can help to detect tax avoidance and
money laundering.

True

In the cancer research case study, data mining algorithms that predict cancer survivability
with high predictive power are good replacements for medical professionals.

False

During classification in data mining, a false positive is an occurrence classified as true by the
algorithm while being false in reality.

True

When training a data mining model, the testing dataset is always larger than the training
dataset.

False

When a problem has many attributes that impact the classification of different patterns,
decision trees may be a useful approach.
True

In the 2degrees case study, the main effectiveness of the new analytics system was in
dissuading potential churners from leaving the company.

True

Market basket analysis is a useful and entertaining way to explain data mining to a
technologically less savvy audience, but it has little business significance.

False

The number of users of free/open source data mining software now exceeds that of users of
commercial software versions.

True

Data that is collected, stored, and analyzed in data mining is often private and personal.
There is no way to maintain individuals' privacy other than being very careful about physical
data security.

False

In the Cabela's case study, what types of models helped the company understand the value
of customers, using a five-point scale?
A) reporting and association models
B) simulation and geographical models
C) simulation and regression models
D) clustering and association models

Understanding customers better has helped Amazon and others become more successful.
The understanding comes primarily from
A) collecting data about customers and transactions.
B) developing a philosophy that is data analytics-centric.
C) analyzing the vast data amounts routinely collected.
D) asking the customers what they want.

All of the following statements about data mining are true EXCEPT
A) the process aspect means that data mining should be a one-step process to results.
B) the novel aspect means that previously unknown patterns are discovered.
C) the potentially useful aspect means that results should lead to some business benefit.
D) the valid aspect means that the discovered patterns should hold true on new data.

What is the main reason parallel processing is sometimes used for data mining?
A) because the hardware exists in most organizations and it is available to use
B) because the most of the algorithms used for data mining require it
C) because of the massive data amounts and search efforts involved
D) because any strategic application requires parallel processing

The data field "ethnic group" can be best described as

A) nominal data.
B) interval data.
C) ordinal data.
D) ratio data.
The data field "salary" can be best described as
A) nominal data.
B) interval data.
C) ordinal data.
D) ratio data.

Which broad area of data mining applications analyzes data, forming rules to distinguish
between defined classes?
A) associations
B) visualization
C) classification
D) clustering

Which broad area of data mining applications partitions a collection of objects into natural
groupings with similar features?
A) associations
B) visualization
C) classification
D) clustering

The data mining algorithm type used for classification somewhat resembling the biological
neural networks in the human brain is
A) association rule mining.
B) cluster analysis.
C) decision trees.
D) artificial neural networks.

Identifying and preventing incorrect claim payments and fraudulent activities falls under
which type of data mining applications?
A) insurance
B) retailing and logistics
C) customer relationship management
D) computer hardware and software

All of the following statements about data mining are true EXCEPT
A) understanding the business goal is critical.
B) understanding the data, e.g., the relevant variables, is critical to success.
C) building the model takes the most time and effort.
D) data is typically preprocessed and/or cleaned before use.

Which data mining process/methodology is thought to be the most comprehensive,

according to kdnuggets.com rankings?
A) SEMMA
B) proprietary organizational methodologies
C) KDD Process
D) CRISP-DM

Prediction problems where the variables have numeric values are most accurately defined as
A) classifications.
B) regressions.
C) associations.
D) computations

What does the robustness of a data mining method refer to?

A) its ability to predict the outcome of a previously unknown data set accurately
B) its speed of computation and computational costs in using the mode
C) its ability to construct a prediction model efficiently given a large amount of data
D) its ability to overcome noisy data to make somewhat accurate predictions

What does the scalability of a data mining method refer to?

A) its ability to predict the outcome of a previously unknown data set accurately
B) its speed of computation and computational costs in using the mode
C) its ability to construct a prediction model efficiently given a large amount of data
D) its ability to overcome noisy data to make somewhat accurate predictions

In estimating the accuracy of data mining (or other) classification models, the true positive
rate is
A) the ratio of correctly classified positives divided by the total positive count.
B) the ratio of correctly classified negatives divided by the total negative count.
C) the ratio of correctly classified positives divided by the sum of correctly classified positives
and incorrectly classified positives.
D) the ratio of correctly classified positives divided by the sum of correctly classified
positives and incorrectly classified negatives.

In data mining, finding an affinity of two products to be commonly together in a shopping

cart is known as
A) association rule mining.
B) cluster analysis.
C) decision trees.
D) artificial neural networks.

Third party providers of publicly available datasets protect the anonymity of the individuals
in the data set primarily by
A) asking data users to use the data ethically.
B) leaving in identifiers (e.g., name), but changing other variables.
C) removing identifiers such as names and social security numbers.
D) letting individuals in the data know their data is being accessed.

In the Target case study, why did Target send a teen maternity ads?
A) Target's analytic model confused her with an older woman with a similar name.
B) Target was sending ads to all women in a particular neighborhood.
C) Target's analytic model suggested she was pregnant based on her buying habits.
D) Target was using a special promotion that targeted all teens in her geographical area.

Which of the following is a data mining myth?

A) Data mining is a multistep process that requires deliberate, proactive design and use.
B) Data mining requires a separate, dedicated database.
C) The current state-of-the-art is ready to go for almost any business.
D) Newer Web-based tools enable managers of all educational levels to do data mining.
In the opening vignette, Cabela's uses SAS data mining tools to create ________ models to
optimize customer selection for all customer contacts.

predictive

There has been an increase in data mining to deal with global competition and customers'
more sophisticated ________ and wants.

needs

Knowledge extraction, pattern analysis, data archaeology, information harvesting, pattern

searching, and data dredging are all alternative names for ________.

data mining

Data are often buried deep within very large ________, which sometimes contain data from
several years.

databases

________ represent the labels of multiple classes used to divide a variable into specific
groups, examples of which include race, sex, age group, and educational level.

Categorical data

In the Memphis Police Department case study, shortly after all precincts embraced Blue
CRUSH, ________ became one of the most potent weapons in the Memphis police
department's crime-fighting arsenal.

predictive analytics

Patterns have been manually ________ from data by humans for centuries, but the
increasing volume of data in modern times has created a need for more automatic
approaches.

extracted

While prediction is largely experience and opinion based, ________ is data and model
based.

forecasting

Whereas ________ starts with a well-defined proposition and hypothesis, data mining starts
with a loosely defined discovery statement.

statistics

Customer ________ management extends traditional marketing by creating one-on-one

relationships with customers.

relationship

In the terrorist funding case study, an observed price ________ may be related to income
tax avoidance/evasion, money laundering, or terrorist financing.

deviation
Data preparation, the third step in the CRISP-DM data mining process, is more commonly
known as ________.

data preprocessing

The data mining in cancer research case study explains that data mining methods are
capable of extracting patterns and ________ hidden deep in large and complex medical
databases.

relationships

Fayyad et al. (1996) defined ________ in databases as a process of using data mining
methods to find useful information and patterns in the data.

knowledge discovery

In ________, a classification method, the complete data set is randomly split into mutually
exclusive subsets of approximately equal size and tested multiple times on each left-out
subset, using the others as a training set.

k-fold cross-validation

The basic idea behind a ________ is that it recursively divides a training set until each
division consists entirely or primarily of examples from one class.

decision tree

As described in the 2degrees case study, a common problem in the mobile

telecommunications industry is defined by the term ________, which means customers
leaving.

customer churn

Because of its successful application to retail business problems, association rule mining is
commonly called ________.

market-basket analysis

The ________ is the most commonly used algorithm to discover association rules. Given a
set of itemsets, the algorithm attempts to find subsets that are common to at least a
minimum number of the itemsets.

Apriori algorithm

Chapter 6
In the opening vignette, the high accuracy of the models in predicting the outcomes of
complex medical procedures showed that data mining tools are ready to replace experts in
the medical field.

False

Though useful in business applications, neural networks are a rough, inexact model of how
the brain works, not a precise replica.

True
The use of hidden layers and new topologies and algorithms renewed waning interest in
neural networks.

True

Compared to the human brain, artificial neural networks have many more neurons.

False

In the mining industry case study, the input to the neural network is a verbal description of a
hanging rock on the mine wall.

False

The network topology that allows only one-way links between layers, with no feedback
linkage permitted, is known as backpropagation.

True

With a neural network, outputs are attributes of the problem while inputs are potential
solutions to the problem.

False

The most complex problems solved by neural networks require one or more hidden layers
for increased accuracy.

True

The task undertaken by a neural network does not affect the architecture of the neural
network; in other words, architectures are problem-independent.

False

Prior to starting the development of a neural network, developers must carry out a
requirements analysis.

True

No matter the topology or architecture of a neural network, they all use the same algorithm
to adjust weights during training.

False

Neural networks are called "black boxes" due to the lack of ability to explain their reasoning.

True

Generally speaking, support vector machines are less accurate a prediction method than
other approaches such as decision trees and neural networks.

False

Unlike other "black box" predictive models, support vector machines have a solid
mathematical foundation in statistics.

True
In the student retention case study, support vector machines used in prediction had
proportionally more true positives than true negatives.

True

Using support vector machines, you must normalize the data before you numericize it.

False

The k-nearest neighbor algorithm is overly complex when compared to artificial neural
networks and support vector machines.

False

The k-nearest neighbor algorithm appears well-suited to solving image recognition and
categorization problems.

True

In the Coors case study, a neural network was used to more skillfully identify which beer
flavors could be predicted.

True

In the Coors case study, genetic algorithms were of little use in solving the flavor prediction
problem.

False

In the opening vignette, predictive modeling is described as

A) estimating the future using the past.
B) not yet accepted in the business world.
C) the least practiced branch of data mining.
D) unable to handle complex predictive problems.

In the opening vignette, which method was the best in both accuracy of predicted outcomes
and sensitivity?
A) ANN
B) CART
C) C5
D) SVM

Neural networks have been described as "biologically inspired." What does this mean?
A) They are faithful to the entire process of computation in the human brain.
B) They were created to look identical to human brains.
C) They crudely model the biological makeup of the human brain.
D) They have the power to undertake every task the human brain can.

Which element in an artificial neural network roughly corresponds to a synapse in a human

brain?
A) node
B) input
C) output
D) weight
Which element in an artificial neural network roughly corresponds to a dendrite in a human
brain?
A) node
B) input
C) output
D) weight

All the following statements about hidden layers in artificial neural networks are true
EXCEPT
A) hidden layers are not direct inputs or outputs.
B) more hidden layers increase required computation exponentially.
C) many top commercial ANNs forgo hidden layers completely.
D) more hidden layers include many more weights.

In developing an artificial neural network, all of the following are important reasons to pre-
select the network architecture and learning method EXCEPT
A) some configurations have better success than others with specific problems.
B) development personnel may be more experienced with certain architectures.
C) most neural networks need special purpose hardware, which may be absent.
D) some neural network software may not be available in the organization.

Backpropagation learning algorithms for neural networks are

A) the least popular algorithm due to their inaccuracy.
B) used without hidden layers for effectiveness.
C) used without a training set of data.
D) required to have error tolerance set in advance.

Why is sensitivity analysis frequently used for artificial neural networks?

A) because it is required by all major artificial neural networks
B) because some consequences of mistakes by the network might be fatal, so justification
may matter
C) because it is generally informative, although it cannot help to identify cause-and-effect
relationships among variables
D) because it provides a complete description of the inner workings of the artificial neural
network

Support vector machines are a popular machine learning technique primarily because of
A) their relative cost and superior predictive power.
B) their superior predictive power and their theoretical foundation.
C) their relative cost and relative ease of use.
D) their high effectiveness in the very few areas where they can be used.

In the student retention case study, which of the following variables was MOST important in
determining whether a student dropped out of college?
A) high school GPA and SAT high score math
B) college and major
C) completed credit hours and hours enrolled
D) marital status and hours enrolled

In the student retention case study, of the four data mining methods used, which was the
most accurate?
A) ANN
B) DT(C5)
C) SVM
D) LR

When using support vector machines, in which stage do you transform the data?
A) preprocessing the data
B) developing the model
C) experimentation
D) deploying the model

When using support vector machines, in which stage do you select the kernel type (e.g., RBF,
Sigmoid)?
A) preprocessing the data
B) developing the model
C) experimentation
D) deploying the model

For how long do SVM models continue to be accurate and actionable?

A) for as long as the developers stay with the firm
B) for as long as management support continues to exist for the project
C) for as long as you choose to use them
D) for as long as the behavior of the domain stays the same

All of the following are disadvantages/limitations of the SVM technique EXCEPT

A) model building involves complex and time-demanding calculations.
B) selection of the kernel type and kernel function parameters is difficult.
C) they have high algorithmic complexity and extensive memory requirements for complex
tasks.
D) their accuracy is poor in many domains compared to neural networks.

The k-nearest neighbor machine learning algorithm (kNN) is

A) highly mathematical and computationally intensive.
B) a method that has little in common with regression.
C) regarded as a "lazy" learning method.
D) very complex in its inner workings.

Using the k-nearest neighbor machine learning algorithm for classification, larger values of k
A) sharpen the distinction between classes.
B) reduce the effect of noise on the classification.
C) increase the effect of noise on the classification.
D) do not change the effect of noise on the classification.

What is a major drawback to the basic majority voting classification in kNN?

A) It requires frequent human subjective input during computation.
B) Classes that are more clustered tend to dominate prediction.
C) Even the naive version of the algorithm is hard to implement.
D) Classes with more frequent examples tend to dominate prediction.

In the Coors case study, why was a genetic algorithm paired with neural networks in the
prediction of beer flavors?
A) to replace the neural network in harder cases
B) to complement the neural network by reducing the error term
C) to enhance the neural network by pre-selecting output classes for the neural network
D) to best model how the flavor of beer evolves as it ages

The opening vignette teaches us that ________ medicine is a relatively new term coined in
the healthcare arena, where the main idea is to dig deep into past experiences to discover
new and useful knowledge to improve medical and managerial procedures in healthcare.

evidence-based

Neural computing refers to a ________ methodology for machine learning.

pattern-recognition

A thorough analysis of an early neural network model called the ________, which used no
hidden layer, in addition to a negative evaluation of the research potential by Minsky and
Papert in 1969, led to a diminished interest in neural networks.

perceptron

In a neural network, groups of neurons can be organized in a number of different ways;

these various network patterns are referred to as ________.

topologies

In a typical network structure of an ANN consisting of three layers-input, intermediate, and

output-the intermediate layer is called the ________ layer.

hidden

In an ANN, ________ express the relative strength (or mathematical value) of the input data
or the many connections that transfer data from layer to layer.

connection weights

Kohonen's ________ feature maps provide a way to represent multidimensional data in

much lower dimensional spaces, usually one or two dimensions.

self-organizing

In the power generators case study, data mining—driven software tools, including data-
driven ________ technologies with historical data, helped an energy company reduce
emissions of NOx and CO.

predictive modeling

The development process for an ANN application involves ________ steps.

nine

________ is the most widely used supervised learning algorithm in neural computing.

Backpropagation

________ has proved the most popular of the techniques proposed for shedding light into
the "black-box" characterization of trained neural networks.
Sensitivity analysis

In the formulation of the traffic accident study in the traffic case study, the five-class
prediction problem was decomposed into a number of ________ models in order to obtain
the granularity of information needed.

binary classification

________ are of particular interest to modeling highly nonlinear, complex problems,

systems, and processes and use hyperplanes to separate output classes in training data.

Support vector machines (SVMs)

In the mathematical formulation of SVM's, the normalization and/or scaling are important
steps to guard against variables/attributes with ________ that might otherwise dominate
the classification formulae.

larger variance

Writing the SVM classification rule in its dual form reveals that classification is only a
function of the ________, i.e., the training data that lie on the margin.

support vectors

In machine learning, the ________ is a method for converting a linear classifier algorithm
into a nonlinear one by using a nonlinear function to map the original observations into a
higher-dimensional space.

kernel trick

Due largely to their better classification results, support vector machines (SVMs) have
recently become a popular technique for ________-type problems.

classification

Historically, the development of ANNs followed a heuristic path, with applications and
extensive experimentation preceding theory. In contrast to ANNs, the development of SVMs
involved sound ________ theory first, then implementation and experiments.

statistical learning

In the process of image recognition (or categorization), images are first transformed into a
multidimensional ________ and then, using machine-learning techniques, are categorized
into a finite number of classes.

feature space

Chapter 7
In the chapter's opening vignette, IBM's computer named Watson outperformed human
game champions on the game show Jeopardy!

True
Text analytics is the subset of text mining that handles information retrieval and extraction,
plus data mining.

False

In text mining, inputs to the process include unstructured data such as Word documents,
PDF files, text excerpts, e-mail and XML files.

True

During information extraction, entity recognition (the recognition of names of people and
organizations) takes place after relationship extraction.

False

Categorization and clustering of documents during text mining differ only in the preselection
of categories.

True

Articles and auxiliary verbs are assigned little value in text mining and are usually filtered
out.

True

In the patent analysis case study, text mining of thousands of patents held by the firm and
its competitors helped improve competitive intelligence, but was of little use in identifying
complementary products.

False

The bag-of-words model is appropriate for spam detection but not for text analytics.

True

Chinese, Japanese, and Thai have features that make them more difficult candidates for
natural language processing.

True

Regional accents present challenges for natural language processing.

True

In the Hong Kong government case study, reporting time was the main benefit of using SAS
Business Analytics to generate reports.

True

Detecting lies from text transcripts of conversations is a future goal of text mining as current
systems achieve only 50% accuracy of detection.

False

In the financial services firm case study, text analysis for associate-customer interactions
were completely automated and could detect whether they met the company's standards.

True
In text mining, creating the term-document matrix includes all the terms that are included in
all documents, making for huge matrices only manageable on computers.

False

In text mining, if an association between two concepts has 7% support, it means that 7% of
the documents had both concepts represented in the same document.

True

In sentiment analysis, sentiment suggests a transient, temporary opinion reflective of one's

feelings.

False

Current use of sentiment analysis in voice of the customer applications allows companies to
change their products or services in real time in response to customer sentiment.

True

In sentiment analysis, it is hard to classify some subjects such as news as good or bad, but
easier to classify others, e.g., movie reviews, in the same way.

True

The linguistic approach to speech handles processes elements such as intensity, pitch and
jitter from speech recorded on audio.

False

In the BBVA case study, text analytics was used to help the company defend and enhance its
reputation in social media.

True

In the opening vignette, the architectural system that supported Watson used all the
following elements EXCEPT:
A) massive parallelism to enable simultaneous consideration of multiple hypotheses.
B) an underlying confidence subsystem that ranks and integrates answers.
C) a core engine that could operate seamlessly in another domain without changes.
D) integration of shallow and deep knowledge.

Which of these applications will derive the LEAST benefit from text mining?
A) patients' medical files
B) patent description files
C) sales transaction files
D) customer comment files

In text mining, stemming is the process of:

A) categorizing a block of text in a sentence.
B) reducing multiple words to their base or root.
C) transforming the term-by-document matrix to a manageable size.
D) creating new branches or stems of recorded paragraphs.
In text mining, tokenizing is the process of:
A) categorizing a block of text in a sentence.
B) reducing multiple words to their base or root.
C) transforming the term-by-document matrix to a manageable size.
D) creating new branches or stems of recorded paragraphs.

All of the following are challenges associated with natural language processing EXCEPT:
A) dividing up a text into individual words in English.
B) understanding the context in which something is said.
C) distinguishing between words that have more than one meaning.
D) recognizing typographical or grammatical errors in texts.

What application is MOST dependent on text analysis of transcribed sales call center notes
and voice conversations with customers?
A) finance
B) OLAP
C)CRM
D) ERP

In text mining, which of the following methods is NOT used to reduce the size of a sparse
matrix?
A) using a domain expert
B) normalizing word frequencies
C) using singular value decomposition
D) eliminating rarely occurring terms

What data discovery process, whereby objects are categorized into predetermined groups, is
used in text mining?
A) clustering
B) association
C) classification
D) trend analysis

In the research literature case study, the researchers analyzing academic papers extracted
information from which source?
A) the paper abstract
B) the paper keywords
C) the main body of the paper
D) the paper references

Sentiment classification usually covers all the following issues EXCEPT:

A) classes of sentiment (e.g., positive versus negative).
B) range of polarity (e.g., star ratings for hotels and for restaurants).
C) range in strength of opinion.
D) biometric identification of the consumer expressing the sentiment.

In sentiment analysis, which of the following is an implicit opinion?

A) The hotel we stayed in was terrible.
B) The customer service I got for my TV was laughable.
C) The cruise we went on last summer was a disaster.
D) Our new mayor is great for the city.
In the Whirlpool case study, the company sought to better understand information coming
from which source?
A) customer transaction data
B) delivery information
C) customer e-mails
D) goods moving through the internal supply chain

What do voice of the market (VOM) applications of sentiment analysis do?

A) They examine customer sentiment at the aggregate level.
B) They examine employee sentiment in the organization.
C) They examine the stock market for trends.
D) They examine the "market of ideas" in politics.

How is objectivity handled in sentiment analysis?

A) It is ignored because it does not appear in customer sentiment.
B) It is incorporated as a type of sentiment.
C) It is clarified with the customer who expressed it.
D) It is identified and removed as facts are not sentiment.

Identifying the target of an expressed sentiment is difficult for all the following reasons
EXCEPT:
A) the review may not be directly connected to the target through the topic name.
B) blogs and articles with the sentiment may be general in nature.
C) strong sentiments may be generated by a computer, not a person.
D) sometimes there are multiple targets expressed in a sentiment.

In text analysis, what is a lexicon?

A) a catalog of words, their synonyms, and their meanings
B) a catalog of customers, their words, and phrase
C) a catalog of letters, words, phrases and sentences
D) a catalog of customers, products, words, and phrase

What types of documents are BEST suited to semantic labeling and aggregation to
determine sentiment orientation?
A) medium- to large-sized documents
B) small- to medium-sized documents
C) large-sized documents
D) collections of documents

Inputs to speech analytics include all of the following EXCEPT

A) written transcripts of calls to service centers.
B) recorded conversations of customer call-ins.
C) live customer interactions with service representatives.
D) videos of customer focus groups.

In the Blue Cross Blue Shield case study, speech analytics were used to identify "confusion"
calls by customers. What was true about these calls?
A) They took less time than others as frustrated customers hung up.
B) They led customers to rely more on self-serve options.
C) They were not documented by customer service reps for speech analytics.
D) They were difficult to identify using standard phrases like "I don't get it."
IBM's Watson utilizes a massively parallel, text mining—focused, probabilistic evidence-
based computational architecture called ________.

DeepQA

________ is probably the most often used form of information extraction.

Named entity extraction

________, also called homonyms, are syntactically identical words with different meanings.

Polysemes

When a word has more than one meaning, selecting the meaning that makes the most sense
can only be accomplished by taking into account the context within which the word is used.
This concept is known as ________.

word sense disambiguation

________ is a technique used to detect favorable and unfavorable opinions toward specific
products and services using large numbers of textual data sources.

Sentiment analysis

In the text mining system developed by Ghani et al., treating products as sets of ________
rather than as atomic entities can potentially boost the effectiveness of many business
applications.

attribute-value pairs

In the Mining for Lies case study, a text based deception-detection method used by Fuller
and others in 2008 was based on a process known as ________, which relies on elements of
data and text mining techniques.

message-feature mining

At a very high level, the text mining process can be broken down into three consecutive
tasks, the first of which is to establish the ________.

Corpus

Because the term-document matrix is often very large and rather sparse, an important
optimization step is to reduce the ________ of the matrix.

dimensionality

Where ________ appears in text, it comes in two flavors: explicit, where the subjective
sentence directly expresses an opinion, and implicit, where the text implies an opinion.

sentiment

________ is mostly driven by sentiment analysis and is a key element of customer

experience management initiatives, where the goal is to create an intimate relationship with
the customer.

Voice of the customer (VOC)

________ focuses on listening to social media where anyone can post opinions that can
damage or boost your reputation.

Brand management

In sensitivity analysis, the task of differentiating between a fact and an opinion can also be
characterized as calculation of ________ polarity.

Objectivity-Subjectivity (OS)

When identifying the polarity of text, the most granular level for polarity identification is at
the ________ level.

word

When viewed as a binary feature, ________ classification is the binary classification task of
labeling an opinionated document as expressing either an overall positive or an overall
negative opinion.

polarity

When labeling each term in the WordNet lexical database, the group of cognitive synonyms
(or synset) to which this term belongs is classified using a set of ________, each of which is
capable of deciding whether the synset is Positive, or Negative, or Objective.

ternary classifiers

In automated sentiment analysis, two primary methods have been deployed to predict
sentiment within audio: acoustic/phonetic and ________ modeling.

linguistic

The time-demanding and laborious process of the ________ approach makes it impractical
for use with live audio streams.

acoustic/phonetic

________ models operate on the premise that, when in a charged state, a speaker has a
higher probability of using specific words, exclamations, or phrases in a particular order.

Linguistic

Among the significant advantages associated with the ________ approach to linguistic
modeling is the method's ability to maintain a high degree of accuracy no matter what the
quality of the audio source, and its incorporation of conversational context through the use
of structured queries.

phonetic indexing and search