366 - Exam 2

Neural Networks serve as learning Systems

Allows the computer to change how it functions or reacts to situations based on the feedback it receives. There are computer games with learning abilities. (20Questions) Fuzzy logic and neural networks are often combined to express complicated and concepts (that are vague and ambiguous) in a form that makes it possible to simplify the problem and apply rules with some degree of certainty.

Intelligence agents

accomplish a specific task for the user

User Agents

act as a personal assistant by taking action on your behalf. Examples include: -- sorting and prioritizing email, ----filling out forms on the Web automatically for you ------ automatically storing your information.

Transaction Processing Systems

- They Capture data regarding business transactions/activities. ---That data is stored in a database and then mined/analyzed using one or more decision making techniques -Transactional Data being captured ---Debits and credits ---Inventory going into and out of the system ---Items being bought and sold. ---Payments being made and received Uses source data automation: captures data at the point of origin

WHAT EXPERT SYSTEMS CAN DO

-Can handle massive amounts of information and they can form complex relationships -Can Draw conclusions from complex relationships Can explain their reasoning or suggested decisions -provide consistency in decision making Improve customer service. -provide portable knowledge Reduce errors and costs

Executive info. systems capabilities

-Consolidation - involves the aggregation of information and features simple roll-ups to complex groupings of interrelated information ------would occur when grouping multiple store sales together to get a total for the company -Drill-down - enables users to get details, and details of details, of information ------would occur when digging into the numbers on the balance sheet or income statement, such as revenues broken down into individual product revenues for each store during different dates and times -Slice-and-dice - looks at information from different perspectives -------would occur when users begin looking at information with different dimensions, similar to the cubes of information

Reasons for the growth of decision-making information systems

-People need to analyze large amounts of information -People must make decisions quickly -People must apply sophisticated analysis techniques, such as modeling and forecasting, to make good decisions -People must protect the corporate asset of organizational information

Programmed Decisions (structured decision)

-Structured situations with well defined relationships -Quantifiable. There is an understood and accepted method for making the decision. -Very easy to automate (program) these types of decisions. -Routine and repetitive problems with standard procedures and solutions

EXECUTIVE INFORMATION SYSTEMS

-specialized DSSs designed for use by senior-level executives in order to make upper level decisions.

Which form of artificial intelligence system can be used to detect possible credit card fraud? An expert system A neural network A genetic algorithm An intelligent agent A decision support system

A NEURAL NETWORK

You are a sales representative for a publisher of college textbooks. Your sales area includes the states of Kansas, Missouri, Oklahoma, Colorado, Nebraska, and Texas. There are many college campuses spread throughout this six state area. Your goal is to visit each campus, but you want to make sure that you arrange your campus visits so that your travel the least amount of distance (in miles) between all of the different campuses. What type of information technology system will you use to determine the BEST ROUTE for you to take? A. Genetic Algorithm B. Neural network C. Expert System D. Decision support system E. Transaction processing system

A. Genetic Algorithm

A PMT function is placed in cell A4. Which cell-- A1, A2, A3, or A4--will contain the amount of the loan, given the function =PMT(A1, A2, A3)?

A3

You are the sales manager and it is the end of the year. You have decided to examine the company's sales database containing data for the hundreds of different products that are sold by your company. Which of the following is considered information? Quantity sold for each product each day Date sold for each item Best selling item by month ------This is the correct answer All of the above items are considered information None of the above items are considered to be information

All of the above items are considered information

an artificial intelligence system that applies reasoning capabilities to solve a problem is called? a neural network a genetic algorithm an expert system a DSS an executive info. system

An expert system

Ethical Questions and the Use of Expert Systems

An expert system will act as it is programmed. If you program in bias, then the system will be biased. The expert system is consistent, which is easily defended in court. Can distinguish between good and bad, but may not be able to distinguish between degrees of good.

Which AI system is an adaptive system that works independently, carrying out specific repetitive or predictable tasks? A decision support system An expert system A neural Network A genetic algorithm an intelligent agent

An intelligent agent

Fuzzy Logic applications

Applications -Google's search engine (your perception of a -topic frames your query) -Washing machines that wash until the water is "clean" -Antilock brakes and subway/tram control systems -Auto focus cameras -Temperature sensors attached to furnace controls -Medical equipment that automatically makes corrections based upon patient vital signs. -Accounting: how do you value intangible assets such as "goodwill"?

Neural Networks Cont.

Are artificial intelligence system which is capable of learning because it's patterned after the human brain. Uses parallel processors. A neural network simulates the human ability to classify things based on the experience of seeing many examples. Typically used to combat attempts at fraud --Credit card fraud or insurance fraud. ---Able to detect money laundering attempts Working in conjunction with X-ray machines, can be used to detect weapons and other forbidden items

A TPS is used to ________________ business processes. streamline Automate bottleneck reinvent provide redundancy for

Automate -------Correct Answer

Characteristics of an intelligent agent

Autonomy : can act without you telling them what to do Adaptivity : can change itself and what it does based upon your changing characteristics. Sociability : can communicate and interact with other agents that it encounters.

A DSS Can Help With Analysis Tasks Like

Deciding where to spend advertising dollars Analyzing sales trend information Analyzing drug interactions Developing airline schedules Pricing products Allocating limited investment dollars among several potential projects. Budget setting. Inventory control. Cash flow forecasting.

Genetic Algorithms Can Generate Lots of Solutions As In

Deciding which combination of projects a firm should invest in, given limited investment dollars. Generating solutions to routing problems --How much cable or track to lay? ---What path/route should your delivery vehicles take? Used to optimize production schedules (make the best use of your production resources) Investment companies use them to generate optimal stock/bond portfolios by considering different combinations of stocks and bonds . Clothing manufacturing: cutting a piece of fabric so as to generate the least amount of waste

Decision Support category

Decisions support systems Geographic information systems

A Neural Network Can Perform Tasks Like

Distinguishing different chemical compounds Track habits of insurance customers and predict which ones might not renew their policies Virus Detection Software by IBM Neugent monitors 1,200 data points in the Allstate Insurance network every 5 seconds, trying to predict a potential problem in/with the network

Cam McConkey plans to retire. With her absence will go years of experience and related knowledge. A(n) __________ may be used to capture this information before she leaves A DSS Learning system Neural Network Genetic Algorithm Expert system

Expert system

You are using a computer system that asks you questions regarding dogs and your preferred characteristics. When you have answered a sufficient number of questions the system makes a recommendation regarding the type of dog you should purchase. this system is a: Neural network Intelligent Agent Decision support system Expert system E. Genetic algorithm

Expert system

Artificial Intelligence category

Expert systems Neural Networks Genetic Algorithms Intelligent agents With artificial intelligence, the decision making expertise is built into the system so that the AI system makes the decision for you

The artificial intelligence system that would be best suited to finding the cheapest combination of thousands of components would be a(n)_________. Neural Network Genetic algorithm expert system DSS TPS

Genetic algorithm

WHAT EXPERT SYSTEMS CAN'T DO

Handle all types of domain expertise. Human experts might not fully be aware of the process that they use. Can't put everything into machine form. Can't solve problems in areas not designed for

DECISION SUPPORT SYSTEM (DSS)

Highly flexible and interactive IT system that is designed to support decision making when the problem is not structured ( i.e. Nonprogrammed decision). Spreadsheets are a common form of decision support system (DSS)

Example of Medical Expert System for lung cancer treatment

If lung capacity is high AND X-ray results are positive AND patient has fever AND patient has coughing THEN surgery is necessary. If tumor has spread OR contraindications to surgery exist THEN surgery cannot be performed

Nonprogrammed Decisions (nonstructured decision)

Ill-structured situations with vague or changing relationships between variables Not easily quantifiable in advance. No agreed-on decision making method. There may be several "right" answers (although some answers could be better than other answers). -Fuzzy, complex problems with no cut-and-dried procedures and solutions

Buyer agents, shop bots and googlebots are examples of what type of agent? Data-mining agent Monitoring and surveillance agent Information agent User agent Network administration agent

Information agent

Components of a DSS

Model management component - consists of both the DSS models and the model management system Data management component - stores and maintains the information that you want your DSS to use User interface management component - allows you to communicate with the DSS

The spell checker, grammar checker and other wizards commonly found in Microsoft Office are examples of what type of agent? Data mining agent Information agent User agent Monitoring and surveillance agent Network administration agent

Monitoring and surveillance agent

Neural Networks recognize/learn patterns and can apply that learning to the unknown

Neural networks: system is "guessing" based upon examples and patterns found in the data set- trying to figure out what category something fits in. It is either taught by someone or teaches itself. After it is taught to recognize the pattern, it can adjust itself to reflect new learning.

Neural Networks Cont. 2

Often used to make investment decisions (stocks, bonds, futures markets, etc.) Can also detect inefficiencies in financial markets Learn by looking at a data set and finding patterns in it

Problem solving approaches used by computer-aided decision making systems

Optimization: Satisficing:

Different Decision Types

Programmed Decisions (structured decision) Nonprogrammed Decisions (nonstructured decision)

Expert systems continued.

Programming is in the form of Rules, if-Then statements and Reasons - you provide the facts, it solves the problem --Recommendation from some expert systems is a probability or other type of score -Used as diagnostic and prescriptive EXPERT SYSTEMS apply rules to solve a problem The system uses IF statements and user answers to questions in order to reason just like a human does. It takes something the users doesn't know and applies rules to indicate what to do. -Asks a series of questions to determine what is "known."

Information Agent

Search for information and bring it back to you (from the Internet or a database) Buyer Agents, shopping bots, Search and Filtering Agents, Googlebots that scour the Internet locating and indexing sites that ultimately appear in search results when you do a Google search. Information agents for Amazon display lists of books and other products that customers might like, based on past purchases.

THE CONCEPTS OF EVOLUTION IN GENETIC ALGORITHMS

Selection - or survival of the fittest. The key is to give preference to better outcomes. Crossover - combining portions of good outcomes in the hope of creating an even better outcome. Mutation- randomly trying combinations and evaluating the success (or failure) of the outcome. Seeking an optimal configuration

Neural Network cont. 3

They contain input, output and hidden layers. The hidden layers use various weights of strength to classify and categorize things. As the system learns, it can change the classification weights. Neural networks can adjust or change themselves over time based upon data input regarding successful and unsuccessful mortgage applications. Neural networks can adjust themselves as they "learn". Expert systems follow fixed rules

Characteristics of a Decision Support System

User actively involved with the system. Relies on user expertise. The user must understand problem situation and what needs to be done. The user makes the ultimate decision/choice. Decision Support Systems guide you, but you must reason through the problem.

Artificial Intelligence

User not as actively involved because all of the expertise is built into the system The system makes the ultimate decision/choice.

Which of the following is an example of optimization in Excel? Creating an Absolute or Mixed cell reference using the $ sign. Creating an IF statement. Using the Vlookup. Determining the monthly payment using the PMT function. Using the Solver

Using the Solver.

Which of the following statements DOES NOT FIT the concept of "resources and applications hosted remotely over the Internet"? The current recognized leader is Amazon. The total cost of ownership is reduced. The interface to the applications software is through a web browser. When the browser detects a software upgrade, it is automatically pushed down from the server to the user and installed on the user's local machine. It follows the "software as a service model" where the application is licensed to customers as service on demand. A spreadsheet is an example of a(n)

When the browser detects a software upgrade, it is automatically pushed down from the server to the user and installed on the user's local machine.

AN INTELLIGENT AGENT

a software entity that senses its environment and then carries out some operations on behalf of a user with a certain degree of autonomy, and in doing so, employs knowledge or representation of the user's goals or desires. The Agent will take your profile and preferences and then go out and work on your behalf.

Fuzzy Logic

a special field of computer science that allows for shades of gray and does not require conditions to be black/white, yes/no, or true/false A mathematical method of handling imprecise or subjective information so that ambiguous information such as "short/long" or "Hot/Cold" or other "non-exact areas usable in computer systems

Expert systems

computerized advisory programs that imitate the reasoning process of experts. They consist of a knowledge base and a set of rules for applying that knowledge base to a particular situation. Most common form of AI in business.

Monitoring and Surveillance Agents

constantly observe and report back on what they see --Applications software agents monitor and offer suggestions for improvement. --Agents that monitor web sites for updated info, such as price changes on desired products. --Wizards in Microsoft Office Spell Checker Grammar Checker Monitoring and surveillance agent in Excel

A spreadsheet is an example of a(n) expert system. decision support system. genetic algorithm. intelligent agent. transaction processing system.

decision support system.

Satisficing

find a good solution, one that satisfies all of your decision criteria, without necessarily being the best solution. Satisficing is used when optimization is too difficult, costly, or complex. Satisficing looks only at solutions that are likely to produce a good solution and can thus be done more easily and quickly than optimization, which involves an exhaustive search of all possible solutions. Heuristics, or rules of thumb, are often used in decision making.

Optimization:

find the very best solution given the constraints provided(aka the optimal answer an optimization model can find the optimal labor cost to produce a particular product and meet a specific level of profit, subject to the cost of raw materials and machinery. Profit level is a goal and costs are a constraint in the model.

A genetic algorithm works by? applying rules to solve a problem generating several generations of solutions structuring a problem so that it is easier for you to solve learning to recognize patterns performing all of the above

generating several generations of solutions

Evolution concepts such as selection, crossover, and mutation are used as the basis for? expert systems genetic algorithms intelligent agents learning systems neural networks

genetic algorithms

Digital dashboard

integrates information from multiple components and presents it in a unified display As digital dashboards become easier to use, more executives can perform their own analysis without inundating IT personnel with queries and request for reports Digital dashboards, whether basic or comprehensive, deliver results quickly The quicker employees have information, the quicker they can respond to problems, threats, and opportunities

GEOSPATIAL INFORMATION SYSTEMS (GIS)

is a specialized decision support system designed specifically to analyze spatial information. Spatial information is any information that can be shown in map form, such as roads, population distribution characteristics, sewer systems and other utilities, income levels, health conditions, areas of high or low crime, etc. . The strength of a GIS is the ability to layer information with a mouse click.

Genetic algorithms

mimic the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem. Genetic algorithms work to find the best/optimal answer.

Neural Networks

mimic the way the brain works, analyzing large quantities of data and information to establish patterns and infer relationships They can "see" subtle, hidden and newly emerging patterns within large amounts of complex data

Recognizing a signature is a problem best suited to Expert system Decsion support system neural network Geographic information system Genetic algorithm

neural network

XYZ modifies its approach to reflect experiences in the previous contest, it is a(n)____________? expert system genetic algorithm neural network decision support system intelligent agent

neural network

Data mining agents

operate in a data warehouse by sifting through the data, trying to discover trends, relationships and patterns through the use of multidimensional statistical analysis. Cube - common term for the representation of multi-dimensional information (layers, rows, columns)

The strength of a neural network lies in its ability to ____________. apply rules to solve a problem generate several levels of solutions, improving the solutions each time act independently on your behalf recognize patterns employ the satisficing technique

recognize patterns

Genetic Algorithms cont.

they generate several generations of solutions, with each generation resulting in a better solution to the problem. A genetic algorithm is an artificial intelligence system that mimics the evolutionary, survival of the fittest processes to generate increasingly better solutions to a problem. Genetic algorithms produce several generations of solutions, choosing the best of the current set for each new generation.