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Test Bank Solutions Information Technology for Management 10th

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Solutions Manual for Information Technology for Management 10th

Edition Turban Volonino

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Chapter 3: Data Management, Big Data Analytics, and

Records Management

Test Bank

Multiple Choice

1. The supply of oranges used by Coca-Cola has a three-month growing season, but orange

juice production is year-round. Therefore, producing orange juice with a consistent taste

year-round is complex. How does Coca-Cola deal with this complexity and keep their

orange juice taste consistent?

a. An orange juice decision model was developed that combines detailed data on the

600+ flavors that make up an orange.

b. A decentralized data model was developed to respond to consumer preferences.

c. Legacy systems were replaced with data silos to manage big data.

d. A data governance program was implemented to ensure that juice preferences are

achieved.

Answer: A

Difficulty: Medium

Section Reference: Chapter Snapshot and Opening Case

Learning Objective: Provide a real-world example of data management, big data analytics, and

records management.

AACSB: Use of Information Technology

2. Which of the following data management technologies store data that are generated by

business apps and operations?

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a. Data marts

b. Data warehouses

c. Databases

d. Transaction-processing systems (TPS).

Answer: C

Difficulty: Medium

Section Reference: Database Management Systems

Learning Objective: Describe the functions of database and data warehouse technologies, the

differences between centralized and distributed database architecture, how data quality impacts

performance, and the role of a master reference file in creating accurate and consistent data

across the enterprise.


3. ________ tools and techniques process data and do statistical analysis for insight and

discovery.

a. Operational intelligence

b. Business intelligence

c. Information accessibility

d. Information fluidity

Answer: B

Difficulty: Medium







4. Ad-hoc requests for specific data from a database or warehouse are called ___________.

a. Unplanned reports

b. Relational reports

c. Volatile

d. Queries

Answer: D

Difficulty: Easy







5. After data are extracted from a database and processed to standardize their format, they are then

loaded into a ________ and ready for analysis.

a. Synchronized, low-latency system

b. Decision support system

c. Data warehouse

d. DBMS

Answer: C

Difficulty: Medium







6. Users typically access data as needed from a database management system by using

________.

a. BI tools

b. SQL

c. Transaction processing

d. Data filtering

Answer: B

Difficulty: Easy







7. Data in a ________ are volatile because record transactions.

a. Database

b. Data warehouse

c. Data mart

d. Data silo

Answer: A

Difficulty: Easy







8. Organizations that cannot afford the cost of a data warehouse, but want the benefits of online

analytic processing invest in___________.

a. spreadsheets

b. big data

c. text mining

d. data marts

Answer: D

Difficulty: Easy







9. Data warehouses and data marts are optimized for all of the following except:

a. Transaction processing

b. Data mining

c. Business intelligence

d. Decision support

Answer: A

Difficulty: Medium







10. An accurate and consistent view of data throughout the enterprise is needed so one can make

informed, actionable decisions that support the business strategy. A function performed by a

DBMS to integrate, match, or link data from disparate sources is data _____________.

a. filtering

b. profiling

c. synchronization

d. maintenance

Answer: C

Difficulty: Medium







11. NoSQL systems have increased in popularity because of the growing need for ________,

which means the system can increase in size to handle data growth.

a. scalability

b. fault tolerance

c. handling big data

d. large Web apps

Answer: A

Difficulty: Easy







12. Which of the following is not a consequence of poor quality or dirty data?

a. The company loses sales or customers

b. Information workers are constrained in their jobs

c. Decision makers face too much uncertainty to make intelligent decisions

d. The company faces data ownership problems

Answer: D

Difficulty: Medium







13. The primary benefits of centralized database configuration are better ___________ and

____________.

a. Reports / Statistical Tools

b. Quality / Security

c. Speed / Access

d. Software / Hardware

Answer: B

Difficulty: Hard







14. The primary disadvantage of centralized database systems is ________.

a. Data security

b. Data quality

c. Availability of statistical analysis tools

d. Transmission delay when users are geo-dispersed

Answer: D

Difficulty: Hard







15. Distributed databases use ___________ architecture to process information requests.

a. Client/server

b. NoSQL

c. Private clouds

d. Public clouds

Answer: A

Difficulty: Hard







16. In terms of the major functions performed by a DBMS, “data filtering and profiling” refers to

which of the following?

a. Inspecting the data for errors, inconsistencies, redundancies, and incomplete

information.

b. Correcting, standardizing, and verifying the integrity of the data.

c. Integrating, matching, or linking data from disparate sources.

d. Checking and controlling data integrity over time.

Answer: A

Difficulty: Medium







17. Sometimes organizations place too much emphasis on the costs associated with acquiring

high levels of data quality and ignore the costs of “dirty” or poor quality data. Which of the

following sets of factors make up the total costs associated with poor quality data?

a. Technology costs + Training costs + Marketing costs

b. Value of lost business + Cost to prevent errors + Cost to correct errors

c. Cost of repeating analyses + Lost opportunity costs + Cost of unrealized threats

d. Value of lost business + Cost to correct errors + Cost of repeating analyses (on

corrected data)

Answer: B

Difficulty: Easy







18. Despite the need for high-quality data, ____________ and technical issues often make it a

difficult goal to achieve.

a. High costs

b. Untrained or undertrained IT personnel

c. User errors

d. Organizational politics

Answer: D

Difficulty: Easy







19. The principle of ________ explains why most organizations cannot operate at peak

performance with blind spots (lack of data availability) of 30 days or longer. Global financial

services institutions rely on near-real-time data for peak performance.

a. data in context

b. 90/90 data use

c. diminishing data value

d. data quality

Answer: C

Difficulty: Easy







20. According to the ________, a majority of data is seldom accessed after a 3 month period.

a. Principle of data in context

b. Principle of 90/90 data use

c. Principle of diminishing data value

d. Principle of data quality

Answer: B

Difficulty: Easy







21. ___________ is a set of processes that aid organizations in integrating data from various

sources or enterprise applications to create and maintain a more unified view of a customer,

product, or other core data entity that is shared across systems.

a. Client/server architecture

b. OLAP

c. Master data management

d. Data synchronization

Answer: C

Difficulty: Medium







22. MDM consolidates data from various data sources into a __________, which then feeds data

back to the applications, thereby creating accurate and consistent data across the enterprise.

This helps eliminate redundancies, inaccuracies and omissions that might otherwise hinder

business processes.

a. Data silo

b. Master reference file

c. Backup file

d. Central directory

Answer: B

Difficulty: Hard







23. ________ enable managers to predict how customers would behave and use that knowledge

to be prepared to respond quickly.

a. Big data analytics

b. Data discovery

c. Master data management

d. Information optimization

Answer: A

Difficulty: Medium

Section Reference: Data Warehouse and Big Data Analytics

Learning Objective: Evaluate the tactical and strategic benefits of big data and analytics.


24. In the past, data was transferred from OTLP databases to data warehouses periodically, say

once a month or even once a week. Now, the trend is toward ___________, or real-time,

data warehousing so that analysis and decision support apps use current data.

a. Active

b. Always-on

c. Dynamic

d. Operational

Answer: A

Difficulty: Easy




25. What is the key advantage of an active data warehouse compared to a traditional data

warehouse?

a. The ADW is less expensive to install and operate

b. Data from an ADW can be used for DSS, report generation and Business

Intelligence

c. Data in an ADW is constantly updated, providing more current data than a

traditional data warehouse

d. The ADW is more widely available from a larger number of vendors

Answer: C

Difficulty: Hard




26. When customer X calls an organization’s customer service center, the service representative

has access to a complete history of X’s previous calls, as a list of the services X has

purchased, and customer profitability score. All of this information is up-to-date and is

accessed from the company’s _________.

a. Management information system

b. Transactional database system

c. Active data warehouse

d. Online transaction processing system

Answer: C

Difficulty: Medium




27. The McKinsey Global Institute (MGI) estimates that retailers using big data analytics

increase their operating margin by more than ________ percent.

a. 10

b. 20

c. 40

d. 60

Answer: A

Difficulty: Medium




28. ________ processes move data from databases into data warehouses or data marts, where the

data are available for access, reports, and analysis.

a. Big data analytics

b. Data mining

c. Extract, transformation, load (ETL)

d. Data de-duplication

Answer: C

Difficulty: Medium




29. Machine-generated sensor data from________ are becoming a much larger proportion of big

data and analytics.

a. physical objects

b. satellites

c. smartphones

d. vehicles

Answer: A

Difficulty: Medium




30. Big data volumes that exceed the processing capacity of conventional infrastructures are

processed using the ________ platform.

a. Oracle

b. Hadoop

c. ADW

d. MySQL

Answer: B

Difficulty: Medium




31. ____________ software enables users to analyze data from various dimensions or angles,

categorize them, and find correlations or patterns among fields in the data warehouse.

a. NoSQL

b. Data mining

c. Hadoop

d. Nexus

Answer: B

Difficulty: Medium

Section Reference: Data and Text Mining

Learning Objective: Describe data and text mining, and give examples of mining applications to

find patterns, correlations, trends, or other meaningful relationships in organizational data stores.


32. _____________ helps companies tap into the massive volume of customer opinions

expressed online.

a. Media metrics

b. Unstructured analytics

c. Text mining

d. Media mining

Answer: C

Difficulty: Hard





33. With text analytics, information is extracted out of large quantities of various types of textual

information. Which of the following is not one of the steps involved in text analytics

described in your text?

a. Exploration of documents for preliminary categorization or identification of

common topics

b. Preprocessing of documents to standardize content as much as possible

c. Categorization and modeling of document content using statistical models and

business rules

d. Visualization – translating text data to graphic format (e.g. charts, graphs) for

effective reporting

Answer: D

Difficulty: Hard





34. Which of the following is not a risk associated with cloud-based BI?

a. Slower response time

b. Security risk

c. Backup risk

d. Increased costs

Answer: D

Difficulty: Medium

Section Reference: Business Intelligence

Learning Objective: Explain the operational benefits and competitive advantages of business

intelligence, and how forecasting can be improved.


35. All of the following are factors contributing to the increased use of BI, except:

a. Smart devices and demand for 24/7 access to insights

b. Proprietary information systems

c. Cloud-enabled BI and analytics

d. Increased amounts of data

Answer: B

Difficulty: Medium





36. ________ are documentation of business events, actions, decisions, or transactions.

a. data

b. reports

c. information

d. records

Answer: D

Difficulty: easy

Section Reference: Electronic Records Management

Learning Objective: Describe electronic records management, and how it helps companies meet

their compliance, regulatory, and legal obligations.


37. ______________ systems consist of hardware and software that manage and archive

electronic documents and image paper documents; then index and store them according to

company policy.

a. Electronic records management

b. Business management

c. Compliance

d. Digital Document

Answer: A

Difficulty: easy





38. ________ must ensure that their companies comply with legal and regulatory duties by

managing electronic records.

a. Senior management

b. CIOs

c. Corporate lawyers

d. Workers

Answer: A

Difficulty: Medium





39. Improperly managed or destroyed business records become ________.

a. archives

b. liabilities

c. breach of contracts

d. lawsuits

Answer: B

Difficulty: Medium





40. Companies have always faced the challenge of managing physical documents. Which of the

following is the most significant challenge associated with managing physical documents?

a. The volume of documents that must be reviewed to determine if they should be

retained or destroyed

b. Loading documents onto company websites

c. Sharing documents across geographic locations

d. Translating documents into other languages

Answer: A

Difficulty: Hard





True/False

41. Volatile refers to data that change frequently.

Answer: True

Difficulty: Easy







42. Online transaction processing (OLTP) systems are designed to manage transaction data,

which are volatile.

Answer: True

Difficulty: Easy







43. Operational intelligence refers to the credentials, technological skills, decision making

abilities, and industry experience of key leaders in an organization.

Answer: False

Difficulty: Easy







44. Traditional databases are not well suited for managing unstructured data such as customer

comments and tweets.

Answer: True

Difficulty: Easy







45. SQL is an ad-hoc request for specific data or information from a database or warehouse.

Answer: False

Difficulty: Easy







46. Relational databases store data in tables consisting of columns and rows, similar to the

format of a spreadsheet.

Answer: True

Difficulty: Easy







47. Data latency is the elapsed time or delay between when data are created and when they are

available for a query or report.

Answer: True

Difficulty: Easy







48. Many database management systems use the Syntax Query Language (SQL) for

programming queries.

Answer: False

Difficulty: Easy







49. Data warehouses and data marts are optimized for extremely fast transactions processing.

Answer: False

Difficulty: Easy







50. Data generated by business apps, sensors, and transaction processing systems (TPS) are

typically stored first in a database.

Answer: True

Difficulty: Easy







51. Adaptive means the system can increase in size to handle data growth or the processing load

of an increasing number of concurrent users.

Answer: False

Difficulty: Medium







52. Databases need one or more backups and should be archived either onsite or offsite in case

of a crash or security incident.

Answer: False

Difficulty: Medium







53. Databases are stored on servers that reside in the company’s data centers, a private cloud, or

a public cloud.

Answer: True

Difficulty: Easy







54. Data ownership, data quality, and formally managed data are high on the agenda of database

managers because they are held personally accountable if their company is found to be in

violation of regulations.

Answer: False

Difficulty: Medium







55. According to the 90/90 data-use principle, a majority of stored data, as high as 90 percent, is

often accessed after 90 days.

Answer: False

Difficulty: Easy







56. Master data entities are the main entities of a company, such as customers, products,

suppliers, employees, and assets.

Answer: True

Difficulty: Medium







57. Profit margin is a measure of the percent of a company's revenue left over after paying for

its variable costs, such as wages and raw materials.

Answer: False

Difficulty: Medium




58. Big data can have a significant positive impact on the success of any enterprise, or be a low-

contributing major expense.

Answer: True

Difficulty: Easy




59. Data analytics will produce results, but those results might be meaningless or misleading.

Answer: True

Difficulty: Medium




60. Data are worthless if you cannot analyze, interpret, understand, and apply the results in

context.

Answer: True

Difficulty: Easy




61. Low-cost sensors make it possible to monitor and control the behavior of all types of

physical things.

Answer: False

Difficulty: Medium




62. A limitation of Apache Hadoop is that it imposes conditions on the structure of the data it

can process.

Answer: False

Difficulty: Medium




63. MapReduce breaks up the huge dataset into smaller subsets; then distributes the subsets

among multiple servers where they are partially processed.

Answer: True

Difficulty: Hard




64. The primary disadvantage of distributed database configurations is transmission delay when

users are geo-dispersed.

Answer: False

Difficulty: Medium




65. A distributed database allows apps on computers and mobiles to access data from local and

remote databases.

Answer: True

Difficulty: Medium




66. Distributed databases use a client/server architecture to process information requests.

Answer: True

Difficulty: Medium




67. Distributed databases use a Select Query (SQ) architecture to process information requests.

Answer: False

Difficulty: Medium




68. Data and text mining are used to discover knowledge that you did not know existed in the

databases.

Answer: True

Difficulty: Easy





69. To improve quality, McDonald’s bakery operation replaced manual equipment with high-

speed photo analyses to inspect thousands of buns per minute for color, size, and sesame

seed distribution.

Answer: True

Difficulty: Medium





70. Up to 25 percent of an organization’s data are nonstructured word-processing documents,

social media, text messages, audio, video, images and diagrams, fax and memos, call center

or claims notes, and so on.

Answer: False

Difficulty: Medium





71. Data mining is important because any customer can become a brand advocate or adversary

by freely expressing opinions and attitudes that reach millions of other customers on social

media.

Answer: False

Difficulty: Medium





72. Social commentary and social media are mined for sentiment analysis or to understand

consumer intent.

Answer: True

Difficulty: Medium





73. Mining text or nonstructural data enables organizations to forecast the future instead of

merely reporting the past.

Answer: True

Difficulty: Medium





74. Preprocessing text is needed before text mining to standardize it, correct misspelled words,

and transform slang.

Answer: True

Difficulty: Medium





75. Using BI, Quicken Loans has increased the speed from loan application to close, which

allows it to meet client needs as thoroughly and quickly as possible.

Answer: True

Difficulty: Medium





76. BI systems are powerful, but limited to the support of strategic decision making because of

their cost and complexity.

Answer: False

Difficulty: Medium





77. BI programs usually combine a database, dashboard, and platform to transform data into

usable, actionable business information.

Answer: False

Difficulty: Hard





78. Companies invest in BI in order to be able to analyze all of their data.

Answer: False

Difficulty: Medium





79. In order to help align business and BI strategies, each department identifies its targets, KPIs,

and plans to achieve those targets.

Answer: False

Difficulty: Medium





80. The principle of diminishing data values suggests that many global financial services

institutions need near real time data for peak performance.

Answer: True

Difficulty: Medium





81. Most business records are kept in physical format and archived throughout their life cycle.

Answer: False

Difficulty: Medium





82. ERM systems consist of hardware and software that manage and archive electronic

documents and image paper documents; then index and store them according to company

policy.

Answer: True

Difficulty: Hard





83. The major ERM tools are servers, word processors, presentation software, and spreadsheets.

Answer: False

Difficulty: Medium





84. ERM systems have query and search capabilities so documents can be identified and

accessed like data in a database.

Answer: True

Difficulty: Hard





85. Companies need to be prepared to respond to an audit, federal investigation, lawsuit, or any

other legal action against them.

Answer: True

Difficulty: Medium





86. ERM is necessary to help defend against charges of patent violations, product safety

negligence, theft of intellectual property, breach of contract, wrongful termination,

harassment, and discrimination.

Answer: True

Difficulty: Medium





87. Effective ERM systems capture all business data and documents at their first touchpoint—

data centers, laptops, the mailroom, at customer sites, or remote offices.

Answer: True

Difficulty: Medium





88. A key benefit of ERM is that it creates a paperless office as had been predicted.

Answer: False

Difficulty: Medium





89. When workflows are digital, productivity increases, costs decrease, compliance obligations

are easier to verify, and green computing becomes possible.

Answer: True

Difficulty: Easy





90. Before selecting a vendor, it is important to examine workflows and how data, documents,

and communications flow throughout the company.

Answer: True

Difficulty: Easy





Short Answer

91. ________ equals 1,000 terabytes.

Answer: petabyte

Difficulty: Medium



records management.


92. A ________ quantifies the relationship between variables, which reduces uncertainty.

Answer: decision model

Difficulty: Hard



records management.


93. In terms of the dependability or reliability of an information system, _________ means the

system has zero-downtime, zero data loss, and continuous access to data.

Answer: Fault tolerant

Difficulty: Medium







94. ___________ and judgment are needed to interpret the output of data analytics.

Answer: Human expertise

Difficulty: Medium







95. Data ________ are the primary source of cleansed data for analysis, reporting, and BI.

Answer: warehouses

Difficulty: Medium







96. An ad-hoc request for specific data or information from a database or warehouse is called a

______________.

Answer: Query

Difficulty: Easy







97. Databases are ________ because data are constantly being updated, added, or edited.

Answer: volatile

Difficulty: Medium







98. A widely used big data processing platform is Apache ________.

Answer: Hadoop

Difficulty: Medium







99. Data generated by business apps, sensors, and transaction processing systems (TPS) are

typically stored first in a ___________.

Answer: Database

Difficulty: Medium




100. Data ___________ integrate data from multiple databases and data silos and organize them

for complex analysis, knowledge discovery, and to support decision making.

Answer: Warehouses

Difficulty: Medium




101. ___________ are small-scale data warehouses that support a single function or department.

Answer: Data marts

Difficulty: easy




102. Data warehouses that integrate data from databases across an entire organization are called

____________ data warehouses.

Answer: Enterprise

Difficulty: Easy




103. Data warehouses are designed as OLAP systems, meaning that the data can be queried and

analyzed much more efficiently than __________ application databases.

Answer: OLTP

Difficulty: Medium




104. _____________ data warehouses are relatively new OLAP systems that are updated in real-

time, providing the most current data available for analysis and decision support apps.

Answer: Active

Difficulty: easy




105. A widely used platform for processing big data is Apache ________.

Answer: Hadoop

Difficulty: Medium




106. Specialized software used to analyze large data sets to find patterns, correlation, trends, or

other meaningful relationships are called __________ tools.

Answer: Data mining

Difficulty: Medium





107. _____________________ is a process used to analyze an organization’s non-structured data

that comes from word processing documents, social media, text messages, audio, faxes,

memos, call center or claims notes, and so on.

Answer: Text mining

Difficulty: Medium





108. ______________ is a broad category that involves analyzing and interpreting words and

concepts in context.

Answer: Text mining

Difficulty: Medium





109. A business ________ is documentation of a business event, action, decision, or transaction.

Answer: record

Difficulty: Medium





110. Companies have a ________ duty to retain business records.

Answer: legal

Difficulty: Easy





Essay Questions

111. Identify the primary functions of a database and data warehouse and explain why enterprises

need both of these data management technologies.

Answer:

Databases store data generated by business apps, sensors, and transaction processing

systems (TPS). Data contained in databases is considered “volatile” because it is

constantly being changed or updated. Therefore, databases are not considered a good

source of data for Decision Support, Reporting or Statistical Analysis applications.

Data warehouses integrate data from multiple databases and data silos and organize them

for complex analysis, knowledge discovery, and to support decision making. Because

data warehouses do not contain volatile data, they are considered more appropriate for

complex problem solving applications. They are also are larger than transactional

databases.

Difficulty: Medium







112. Describe the characteristics of dirty data. Explain three negative consequences of dirty data.

What is the general formula showing the costs of poor quality data?

Answer:

Answers will vary.

Dirty data is of such poor quality data that they lack integrity and cannot be trusted. Too often

managers and information workers are actually constrained by data that cannot be trusted

because they are incomplete, out of context, outdated, inaccurate, inaccessible, or so

overwhelming that they require weeks to analyze. In those situations, the decision maker is

facing too much uncertainty to make intelligent business decisions. This can result in lost

business and costs related to correcting and/or preventing errors. The cost of poor quality data is

expressed by the following formula.

Cost of Poor = [Value of Lost Business + Cost to Correct Errors + Cost to Prevent Errors]

Quality Data

Difficulty: Medium







113. The value of data analytics depends on these factors: high-quality data and human expertise

and judgment. Assume that management believes the data analytics depends solely on the

technology—that is, the data analytics tools. Compose a response to management

explaining why data analytics is not simply a technology issue, but depends on data quality,

human expertise, and the data analytics.

Answer:

Answers will vary. Students should mention issues such as:

Human expertise is necessary because analytics alone cannot explain the reasons for

trends or relationships; know what action to take; or provide sufficient context to

determine what the numbers represent and how to interpret them.

Human expertise and judgment are needed to interpret the output of analytics (refer to

Figure 3.1).

Data are worthless if you cannot analyze, interpret, understand, and apply the results

in context.

The "cleanliness" of data is very important to data mining and analysis projects.

Analysts have complained that data analytics is like janitorial work because they

spend so much time on manual, error-prone processes to clean the data. Large data

volumes and variety mean more data that are dirty and harder to handle.

Data must be put into meaningful context. If the wrong analysis or datasets are used,

the output would be nonsense,

Difficulty: Medium




114. Describe each of the four V’s of data analytics: variety, volume, velocity, and veracity.

Answer:

Variety: The analytic environment has expanded from pulling data from enterprise

systems to include big data and unstructured sources.

Volume: Large volumes of structured and unstructured data are analyzed.

Velocity: Speed of access to reports that are drawn from data defines the difference

between effective and ineffective analytics.

Veracity: Validating data and extracting insights that managers and workers can trust are

key factors of successful analytics. Trust in analytics has grown more difficult with the

explosion of data sources.

Difficulty: Medium




115. Explain why electronic records management (ERM) is a senior management issue and not

simply an IT issue? What does the success of ERM depend upon in the private and public

sectors? List 3 situations when a company might have to produce business records.

Answer:

Answers will vary. Examples of answers are:

Companies may be required by law to retain financial documents for at least seven years, product

design for many decades, and e-mail messages about marketing promotions for a year. Because

senior management must ensure that their companies comply with legal and regulatory duties,

managing electronic records (e-records) is a strategic issue for organizations in both the public

and private sectors. Properly managed, records are strategic assets. Improperly managed or

destroyed, they become liabilities.

The success of ERM depends greatly on a partnership of many key players, namely, senior

management, users, records managers, archivists, administrators, and most importantly, IT

personnel.

Companies need ERM in order to be prepared to respond to an audit, federal investigation,

lawsuit, or any other legal action against them.

Difficulty: Medium





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