Chapter 01 – Specify the Question: Using Business Analytics
/ f / f / f / f / f / f / f / f / f to
Address Business
© / f McGraw / f Hill / f LLC. / f All / f rights / f reserved. / f No / f reproduction / f or / f distribution / f without / f the
prior written consent of
1
, Chapter 01 – Specify the Question: Using Business Analytics
/ f / f / f / f / f / f / f / f / f to
Address Business
Chapter 1 End-of-Chapter Assignment Solutions
/f /f /f /f
Multiple Choice Questions
/ f / f
1. (LO 1.1) A coordinated, standardized set of activities conducted by both people and
/ f / f / f / f / f / f / f / f / f / f / f / f
equipment to accomplish aspecific business task is called .
/ f / f /f / f / f / f / f / f
a. business processes / f
b. business analysis / f
c. business procedure / f
d. business value / f
2. (LO 1.2) According to the information value chain, data combined with context is
/ f / f / f / f / f / f / f / f / f / f / f / f
a. Information.
b. Knowledge.
c. Insight.
d. Value.
3. (LO 1.5) Which phase of the SOAR analytics model addresses the proper way to
/ f / f / f / f / f / f / f / f / f / f / f / f / f
communicate results to thedecision maker?
/ f /f / f / f / f
a. Specify the question / f / f
b. Obtain the data / f / f
c. Analyze the data / f / f
d. Report the results / f / f
4. (LO 1.5) Which phase of the SOAR analytics model involves finding the most appropriate
/ f / f / f / f / f / f / f / f / f / f / f / f / f
data needed to address the business question?
/ f / f /f / f ww / f / f
a. Specify the question / f / f
b. Obtain the data / f / f
c. Analyze the data / f / f
d. Report the results / f / f
5. (LO 1.5) Which questions seek information about Tesla’s sales in the next quarter?
/ f / f / f / f / f / f / f / f / f / f / f / f
a. What happened? What is happening? / f / f / f / f
b. Why did it happen? What are the causes of past results?
/ f / f / f / f / f / f / f / f / f / f
c. Will it happen in the future? What is the probability something will
/ f / f / f / f / f / f / f / f / f / f / f
happen? Can we forecast what will happen?
/ f / f / f /f / f ww / f
d. What should we do, based on what we expect will happen? How do we
/ f / f / f / f / f / f / f / f / f / f / f / f / f
optimize our performance basedon potential constraints?
/ f / f /f / f / f / f
6. (LO 1.5) Which questions seek information on the routing of products from
/ f / f / f / f / f / f / f / f / f / f / f
Queretaro, Mexico to Chicago, United States in the last quarter?
/ f / f / f /f ww / f / f / f / f / f
a. What happened? What is happening? / f / f / f / f
b. Why did it happen? What are the causes of past results?
/ f / f / f / f / f / f / f / f / f / f
c. Will it happen in the future? What is the probability something will happen?
/ f / f / f / f / f / f / f / f / f / f / f / f
Can we forecast what willhappen?
/ f / f / f /f / f
d. What should we do, based on what we expect will happen? How do we
/ f / f / f / f / f / f / f / f / f / f / f / f / f
optimize our performance basedon potential constraints?
/ f / f /f / f / f / f
© / f McGraw / f Hill / f LLC. / f All / f rights / f reserved. / f No / f reproduction / f or / f distribution / f without / f the
prior written consent of
2
, Chapter 01 – Specify the Question: Using Business Analytics to
/ f / f / f / f / f / f / f / f / f
Address
7. (LO 1.5) Business
Which questions ask why net income is increasing when revenues are
/ f / f / f / f / f / f / f / f / f / f / f / f
/ f decreasing, counter to expectations?
/f / f ww
a. What happened? What is happening?
/ f / f / f / f
b. Why did it happen? What are the causes of past results?
/ f / f / f / f / f / f / f / f / f / f
c. Will it happen in the future? What is the probability something will happen?
/ f / f / f / f / f / f / f / f / f / f / f / f
Can we forecast what willhappen?
/ f / f / f /f / f
d. What should we do, based on what we expect will happen? How do we
/ f / f / f / f / f / f / f / f / f / f / f / f / f
optimize our performance basedon potential constraints?
/ f / f /f / f / f / f
8. (LO 1.5) Which questions help managers understand how to organize future
/ f / f / f / f / f / f / f / f / f / f
shipments based on expecteddemand?
/ f / f / f /f
a. What happened? What is happening? / f / f / f / f
b. Why did it happen? What are the causes of past results?
/ f / f / f / f / f / f / f / f / f / f
c. Will it happen in the future? What is the probability something will happen?
/ f / f / f / f / f / f / f / f / f / f / f / f
Can we forecast what willhappen?
/ f / f / f /f / f
d. What should we do, based on what we expect will happen? How do we
/ f / f / f / f / f / f / f / f / f / f / f / f / f
optimize our performancebased on potential constraints?
/ f / f /f / f / f / f
9. (LO 1.5) Which term refers to the combined accuracy, validity, and consistency of
/ f / f / f / f / f / f / f / f / f / f / f / f
data stored and used overtime?
/ f / f / f /f / f
a. Data integrity / f
b. Data overload / f
c. Data value / f
d. Information value /f
10. (LO 1.3) A specialist who knows how to work with, manipulate, and statistically test data is
/ f / f / f / f / f / f / f / f / f / f / f / f / f / f / f
a
/ f
a. decision maker. / f
b. data scientist. / f
c. data analyst. / f
d. decision scientist. / f
11. (LO 1.4) Which type of analysts predicts the amount of money that a company will
/ f / f / f / f / f / f / f / f / f / f / f / f / f / f
receive from its customers tohelp management evaluate future investments based on
/ f / f / f /f / f / f / f / f / f / f / f
expected investment performance, such as investments in equipment or employee training?
/ f / f / f /f / f / f / f / f / f / f / f
a. Marketing analyst / f
b. Operations analyst / f
c. Financial analyst / f
d. Accounting analyst / f
12. (LO 1.4) / f / f Which type of analyst addresses questions regarding tax and auditing?
/ f / f / f / f / f / f / f / f / f
a. Marketing analyst / f
b. Operations analyst / f
c. Financial analyst / f
d. Accounting analyst /f
13. (LO 1.5) Suppose a company has timely product reviews that are available when
/ f / f / f / f / f / f / f / f / f / f / f / f
needed, but the reviews arebiased. These product reviews are which type of data?
/ f / f / f /f / f / f / f / f / f / f / f / f / f
a. Reliable
b. Relevant
c. Curated
d. Consistent
© / f McGraw / f Hill / f LLC. / f All / f rights / f reserved. / f No / f reproduction / f or / f distribution / f without / f the / f prior / f written / f consent
/ f of / f McGraw / f Hill / f LLC.
3
, Chapter 01 – Specify the Question: Using Business Analytics to
/ f / f / f / f / f / f / f / f / f
Address
14. (LO 1.6) Business
/ fWhich common visualization type shows trends in values over time?
/ f / f / f / f / f / f / f / f / f / f
a. Line graph / f
b. Scatterplot
c. Pie chart / f
d. Bar chart / f
15. (LO 1.6) Which common visualization type shows the composition of values over time?
/ f / f / f / f / f / f / f / f / f / f / f / f
a. Line graph / f
b. Scatterplot
c. Pie chart / f
d. Bar chart / f
Discussion Questions / f
1. (LO 1.1) Give five examples of business processes at Tesla. How do they create
/ f / f / f / f / f / f / f / f / f / f / f / f / f
business value for Tesla and its shareholders?
/ f / f / f /f / f / f ww
Suggested Solution: /f
Answers will vary, / f / f
1. Tesla procures automobile parts from auto suppliers – Because of Tesla’s unique
/ f / f / f / f / f / f / f / f / f / f / f
styling, getting qualityparts from its suppliers on a timely basis will support its
/ f / f /f / f / f / f / f / f / f / f / f / f / f
manufacturing business.
/ f / f
2. Tesla manufactures batteries for its electric vehicle at its desired specifications –
/ f / f / f / f / f / f / f / f / f / f / f
The quantity and qualityof its batteries are of critical importance to Tesla.
/ f / f /f / f / f / f / f / f / f / f / f / f
3. Accepting and processing preorders from its customers – Tesla receives some
/ f / f / f / f / f / f / f / f / f / f
indication of the demand foreach of its products, that helps with planning.
/ f / f / f /f / f / f / f / f / f / f / f / f
4. Tesla markets its products – Tesla works to get Tesla products in the front of mind for
/ f / f / f / f / f / f / f / f / f / f / f / f / f / f / f / f
its customers.
/ f / f
5. Tesla car and truck design – Tesla designs its automobiles in a way that
/ f / f / f / f / f / f / f / f / f / f / f / f / f
will appeal to its customers (forexample, Cybertruck).
/ f / f / f / f /f / f / f
2. (LO 1.2) Explain the information value chain by summarizing how data are transformed
/ f / f / f / f / f / f / f / f / f / f / f / f
into knowledge insights for decision-making. Use the example of a book review on
/ f / f /f / f / f / f / f / f / f / f / f / f / f
Amazon and how it might lead Amazon to decide howmany of those books to stock at
/ f / f / f / f / f / f /f / f / f / f / f / f / f / f / f / f
its warehouses.
/ f / f
Suggested Solution: /f
Amazon allows those who purchase books and other products at its website to give
/ f / f / f / f / f / f / f / f / f / f / f / f / f
product reviews and assignproduct ratings. The product reviews may provide text which
/ f / f /f / f / f / f / f / f / f / f / f / f
textual analytics could use to understand the general sentiment about the specific book.
/ f / f / f / f / f /f / f / f / f / f / f / f / f
The product rating could also be used to understand how well the book is liked by
/ f / f / f / f / f / f / f / f /f / f / f / f / f / f / f / f
verified buyers. Statistical correlations could be run among product review sentiment,
/ f / f / f / f / f / f / f / f /f / f / f
product ratings and product sales to help forecast demand for the product. This will
/ f / f / f / f / f / f / f / f / f / f / f / f /f / f
help Amazon determine how manybooks to keep in its warehouse ready for delivery.
/ f / f / f / f / f / f / f / f / f / f / f / f / f
This is an example of how data turns into information, knowledge and ultimately helps
/ f / f / f / f / f / f / f / f / f / f / f / f / f
with decision making.
/ f / f /f
3. (LO 1.3) Explain the information value chain by summarizing how data are transformed
/ f / f / f / f / f / f / f / f / f / f / f / f
into knowledge insightsfor decision-making. Use the example of a book review of this
/ f / f /f / f / f / f / f / f / f / f / f / f / f
3
/ f / f / f / f / f / f / f / f / f to
Address Business
© / f McGraw / f Hill / f LLC. / f All / f rights / f reserved. / f No / f reproduction / f or / f distribution / f without / f the
prior written consent of
1
, Chapter 01 – Specify the Question: Using Business Analytics
/ f / f / f / f / f / f / f / f / f to
Address Business
Chapter 1 End-of-Chapter Assignment Solutions
/f /f /f /f
Multiple Choice Questions
/ f / f
1. (LO 1.1) A coordinated, standardized set of activities conducted by both people and
/ f / f / f / f / f / f / f / f / f / f / f / f
equipment to accomplish aspecific business task is called .
/ f / f /f / f / f / f / f / f
a. business processes / f
b. business analysis / f
c. business procedure / f
d. business value / f
2. (LO 1.2) According to the information value chain, data combined with context is
/ f / f / f / f / f / f / f / f / f / f / f / f
a. Information.
b. Knowledge.
c. Insight.
d. Value.
3. (LO 1.5) Which phase of the SOAR analytics model addresses the proper way to
/ f / f / f / f / f / f / f / f / f / f / f / f / f
communicate results to thedecision maker?
/ f /f / f / f / f
a. Specify the question / f / f
b. Obtain the data / f / f
c. Analyze the data / f / f
d. Report the results / f / f
4. (LO 1.5) Which phase of the SOAR analytics model involves finding the most appropriate
/ f / f / f / f / f / f / f / f / f / f / f / f / f
data needed to address the business question?
/ f / f /f / f ww / f / f
a. Specify the question / f / f
b. Obtain the data / f / f
c. Analyze the data / f / f
d. Report the results / f / f
5. (LO 1.5) Which questions seek information about Tesla’s sales in the next quarter?
/ f / f / f / f / f / f / f / f / f / f / f / f
a. What happened? What is happening? / f / f / f / f
b. Why did it happen? What are the causes of past results?
/ f / f / f / f / f / f / f / f / f / f
c. Will it happen in the future? What is the probability something will
/ f / f / f / f / f / f / f / f / f / f / f
happen? Can we forecast what will happen?
/ f / f / f /f / f ww / f
d. What should we do, based on what we expect will happen? How do we
/ f / f / f / f / f / f / f / f / f / f / f / f / f
optimize our performance basedon potential constraints?
/ f / f /f / f / f / f
6. (LO 1.5) Which questions seek information on the routing of products from
/ f / f / f / f / f / f / f / f / f / f / f
Queretaro, Mexico to Chicago, United States in the last quarter?
/ f / f / f /f ww / f / f / f / f / f
a. What happened? What is happening? / f / f / f / f
b. Why did it happen? What are the causes of past results?
/ f / f / f / f / f / f / f / f / f / f
c. Will it happen in the future? What is the probability something will happen?
/ f / f / f / f / f / f / f / f / f / f / f / f
Can we forecast what willhappen?
/ f / f / f /f / f
d. What should we do, based on what we expect will happen? How do we
/ f / f / f / f / f / f / f / f / f / f / f / f / f
optimize our performance basedon potential constraints?
/ f / f /f / f / f / f
© / f McGraw / f Hill / f LLC. / f All / f rights / f reserved. / f No / f reproduction / f or / f distribution / f without / f the
prior written consent of
2
, Chapter 01 – Specify the Question: Using Business Analytics to
/ f / f / f / f / f / f / f / f / f
Address
7. (LO 1.5) Business
Which questions ask why net income is increasing when revenues are
/ f / f / f / f / f / f / f / f / f / f / f / f
/ f decreasing, counter to expectations?
/f / f ww
a. What happened? What is happening?
/ f / f / f / f
b. Why did it happen? What are the causes of past results?
/ f / f / f / f / f / f / f / f / f / f
c. Will it happen in the future? What is the probability something will happen?
/ f / f / f / f / f / f / f / f / f / f / f / f
Can we forecast what willhappen?
/ f / f / f /f / f
d. What should we do, based on what we expect will happen? How do we
/ f / f / f / f / f / f / f / f / f / f / f / f / f
optimize our performance basedon potential constraints?
/ f / f /f / f / f / f
8. (LO 1.5) Which questions help managers understand how to organize future
/ f / f / f / f / f / f / f / f / f / f
shipments based on expecteddemand?
/ f / f / f /f
a. What happened? What is happening? / f / f / f / f
b. Why did it happen? What are the causes of past results?
/ f / f / f / f / f / f / f / f / f / f
c. Will it happen in the future? What is the probability something will happen?
/ f / f / f / f / f / f / f / f / f / f / f / f
Can we forecast what willhappen?
/ f / f / f /f / f
d. What should we do, based on what we expect will happen? How do we
/ f / f / f / f / f / f / f / f / f / f / f / f / f
optimize our performancebased on potential constraints?
/ f / f /f / f / f / f
9. (LO 1.5) Which term refers to the combined accuracy, validity, and consistency of
/ f / f / f / f / f / f / f / f / f / f / f / f
data stored and used overtime?
/ f / f / f /f / f
a. Data integrity / f
b. Data overload / f
c. Data value / f
d. Information value /f
10. (LO 1.3) A specialist who knows how to work with, manipulate, and statistically test data is
/ f / f / f / f / f / f / f / f / f / f / f / f / f / f / f
a
/ f
a. decision maker. / f
b. data scientist. / f
c. data analyst. / f
d. decision scientist. / f
11. (LO 1.4) Which type of analysts predicts the amount of money that a company will
/ f / f / f / f / f / f / f / f / f / f / f / f / f / f
receive from its customers tohelp management evaluate future investments based on
/ f / f / f /f / f / f / f / f / f / f / f
expected investment performance, such as investments in equipment or employee training?
/ f / f / f /f / f / f / f / f / f / f / f
a. Marketing analyst / f
b. Operations analyst / f
c. Financial analyst / f
d. Accounting analyst / f
12. (LO 1.4) / f / f Which type of analyst addresses questions regarding tax and auditing?
/ f / f / f / f / f / f / f / f / f
a. Marketing analyst / f
b. Operations analyst / f
c. Financial analyst / f
d. Accounting analyst /f
13. (LO 1.5) Suppose a company has timely product reviews that are available when
/ f / f / f / f / f / f / f / f / f / f / f / f
needed, but the reviews arebiased. These product reviews are which type of data?
/ f / f / f /f / f / f / f / f / f / f / f / f / f
a. Reliable
b. Relevant
c. Curated
d. Consistent
© / f McGraw / f Hill / f LLC. / f All / f rights / f reserved. / f No / f reproduction / f or / f distribution / f without / f the / f prior / f written / f consent
/ f of / f McGraw / f Hill / f LLC.
3
, Chapter 01 – Specify the Question: Using Business Analytics to
/ f / f / f / f / f / f / f / f / f
Address
14. (LO 1.6) Business
/ fWhich common visualization type shows trends in values over time?
/ f / f / f / f / f / f / f / f / f / f
a. Line graph / f
b. Scatterplot
c. Pie chart / f
d. Bar chart / f
15. (LO 1.6) Which common visualization type shows the composition of values over time?
/ f / f / f / f / f / f / f / f / f / f / f / f
a. Line graph / f
b. Scatterplot
c. Pie chart / f
d. Bar chart / f
Discussion Questions / f
1. (LO 1.1) Give five examples of business processes at Tesla. How do they create
/ f / f / f / f / f / f / f / f / f / f / f / f / f
business value for Tesla and its shareholders?
/ f / f / f /f / f / f ww
Suggested Solution: /f
Answers will vary, / f / f
1. Tesla procures automobile parts from auto suppliers – Because of Tesla’s unique
/ f / f / f / f / f / f / f / f / f / f / f
styling, getting qualityparts from its suppliers on a timely basis will support its
/ f / f /f / f / f / f / f / f / f / f / f / f / f
manufacturing business.
/ f / f
2. Tesla manufactures batteries for its electric vehicle at its desired specifications –
/ f / f / f / f / f / f / f / f / f / f / f
The quantity and qualityof its batteries are of critical importance to Tesla.
/ f / f /f / f / f / f / f / f / f / f / f / f
3. Accepting and processing preorders from its customers – Tesla receives some
/ f / f / f / f / f / f / f / f / f / f
indication of the demand foreach of its products, that helps with planning.
/ f / f / f /f / f / f / f / f / f / f / f / f
4. Tesla markets its products – Tesla works to get Tesla products in the front of mind for
/ f / f / f / f / f / f / f / f / f / f / f / f / f / f / f / f
its customers.
/ f / f
5. Tesla car and truck design – Tesla designs its automobiles in a way that
/ f / f / f / f / f / f / f / f / f / f / f / f / f
will appeal to its customers (forexample, Cybertruck).
/ f / f / f / f /f / f / f
2. (LO 1.2) Explain the information value chain by summarizing how data are transformed
/ f / f / f / f / f / f / f / f / f / f / f / f
into knowledge insights for decision-making. Use the example of a book review on
/ f / f /f / f / f / f / f / f / f / f / f / f / f
Amazon and how it might lead Amazon to decide howmany of those books to stock at
/ f / f / f / f / f / f /f / f / f / f / f / f / f / f / f / f
its warehouses.
/ f / f
Suggested Solution: /f
Amazon allows those who purchase books and other products at its website to give
/ f / f / f / f / f / f / f / f / f / f / f / f / f
product reviews and assignproduct ratings. The product reviews may provide text which
/ f / f /f / f / f / f / f / f / f / f / f / f
textual analytics could use to understand the general sentiment about the specific book.
/ f / f / f / f / f /f / f / f / f / f / f / f / f
The product rating could also be used to understand how well the book is liked by
/ f / f / f / f / f / f / f / f /f / f / f / f / f / f / f / f
verified buyers. Statistical correlations could be run among product review sentiment,
/ f / f / f / f / f / f / f / f /f / f / f
product ratings and product sales to help forecast demand for the product. This will
/ f / f / f / f / f / f / f / f / f / f / f / f /f / f
help Amazon determine how manybooks to keep in its warehouse ready for delivery.
/ f / f / f / f / f / f / f / f / f / f / f / f / f
This is an example of how data turns into information, knowledge and ultimately helps
/ f / f / f / f / f / f / f / f / f / f / f / f / f
with decision making.
/ f / f /f
3. (LO 1.3) Explain the information value chain by summarizing how data are transformed
/ f / f / f / f / f / f / f / f / f / f / f / f
into knowledge insightsfor decision-making. Use the example of a book review of this
/ f / f /f / f / f / f / f / f / f / f / f / f / f
3
