Chapter 12 Review

A vendor is giving a presentation on how the dashboard technology offered by his company can help your business access business intelligence analysis results. In his presentation, he mentions that the drill down capability of the dashboard allows you to go into details at many levels by using a series of menus or by clicking on the drillable portion of the screen; critical success factors are the factors that analyses have shown to be most critical to the success of the business; and exception reporting, which shows long-term deviations in KPI metrics using forecasting methods. Should your business purchase his dashboard? Why, or why not?

No. He incorrectly described the usual dashboard capability of exception reporting, which creates reports highlighting only deviations larger than certain pre-set thresholds. If he does not understand how dashboards function, it is likely that the vendor's company will not provide top-level products and services

Which of the following is not true of predictive analytics?

Predictive analytics are used to detect patterns. Predictive analytics provide estimates about the likelihood of a future outcome. Predictive analytics are based on probabilities. All of the statements are true.

LoveMining Inc. wants to make its supply chain more efficient. They need to optimize production, scheduling, and inventory along the supply chain to make this happen. The company should use _____ analytics to accomplish this task.

Prescriptive

Self-driving cars need to make decisions on how to best get to a destination as well as anticipate what might be coming regarding traffic, pedestrians, bicyclists, and any other obstacle on the road. This is possible through ____ analytics.

Prescriptive

Sheila is trying to determine the optimal number of products the company should manufacture at specific times to meet customer demand. Sheila should use _____ analytics to accomplish this task.

Prescriptive

Which of the following is true of prescriptive analytics?

Prescriptive analytics recommend one or more courses of action and show the likely outcome of each decision.

Twiddy implemented ____ analytics to ensure travelers enjoy their stay and that homeowners maximize their profit.

SAS

Which of the following is not a characteristic of DSS?

They support all phases of the decision-making process.

Business analytics is the process of developing actionable decisions or recommendations for actions based on insights generated from historical data

True

Early information systems mainly supported the information roles of managers

True

Excel here is the popular common BA tool

True

Prescriptive analytics require predictive analytics

True

DataKind's data scientists analyzed Simpa's historical customer data to help Simpa assess potential customers and sell their services to poor households and small businesses. This is an example of _______

a social good

In the _____ phase of the decision making process, managers set criteria for the evaluation of alternative potential solutions

design

Using predictive analytics, Nate Silver in his FiveThirtyEight blog _____ accurately predict the 2008 and 2012 presidential elections; he ______ accurately predict the 2016 presidential election.

did; did not

Descriptive analytics are the ______ step in data reduction and prescriptive analytics are the _____ step.

first; third

Juli works for a mortgage company that analyzes not only mortgage holders' payment histories but also their income levels, credit card spending habits, and even geographical and related information about their community and the location of their property. They do this for the purpose of

forecasting bad loans and possible foreclosures that could affect their revenues.

At the end of a semester, a student knows that she must score at least an 81 on the final exam to receive in A in the course. She decided that she can make the 81 by studying the material only the night before the exam, she has just preformed what kind of analysis?

goal seeking

Daniel is using his management dashboard to access timely information and reports. Which of the following is MOST LIKELY a feature of his dashboard?

graphic representation

Fandango is able to change ticket price offerings every _______ due to their use of _____ analytics.

hour; prescriptive

The exception reporting capability of dashboards_____________; the drill-down capability of dashboards____________.

indicates KPIs in which current KPI numbers are allows for an in depth examination of the data

The purpose of predictive analytics ____ to tell decision makers ______.v

is not; what will happen in the future

Gregory is using prescriptive analytics to determine the _________ number of products the company should manufacture at specific times to meet _______.

optimal; customer demand

Lawrence is currently measuring the ratio of the inputs and outputs for which one of the managers in his organization is responsible. He is measuring their

productivity

Which of the following is not a tool used in predictive analytics?

sensitivity analysis

_____ is the study of the impact that changes in one or more variables of a decision-making model have on other variables.

sensitivity analysis

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

structured

Bill's grocery store knows he is likely going to buy more potato chips if they send him an advertisement with a coupon. This is an example of __________ marketing.

targeted

Katie is using her dashboard to examine KPI numbers for the past year. She is utilizing the __________ capability of her dashboard.

trend analysis

____ is the study of the impact of a change in the assumptions (input data) on the proposed solution

what-if- analysis

How many data points are necessary in order to use linear regression in predictive analytics

30

Which wall in the management cockpit room projects the performance of internal processes and employees

Blue

_____ refers to applications and technologies for consolidating, analyzing, and providing access to vast amounts of data to help users make better business and strategic decisions.

Business analytics (intelligence)

Which of the following statistical procedures are likely to be used in prescriptive analytics?

Decision trees

Which of the following is not a reason that managers need IT support?

Decisions are becoming less complex

Which capability of digital dashboards enables users to go into greater detail?

Drill down

Which capability of digital dashboards enables users to have reports that highlight deviations larger than certain thresholds

Exception reporting

Predictive analytics provide decisions makers with guarantees about what will happen

False

Prescriptive analytics present multiple future outcomes based on the decision makers action

False

in general, there are two specific analytics targets that represent different levels of change

False (there are 3)

The process for loading data into data warehouses and data marts is called extract, load and transform or ELT

False, it is Extract, transform, and load (ETL)

Data mining is used by most

Fortune 1000 companies

This information system uses data visualization technologies to analyze and display data in the form of digital maps for planning and decision making purposes.

Geographical information system

The most distinguishing characteristic of geographical information systems is

Its most distinguishing characteristic is that every record or digital object has an identified geographical location

____________ is NOT a statistical tool used for predictive analytics.

Multidimensional analysis