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Business Analytics 6th Edition Camm TESTBANK PDF

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, TESTBANK FOR Business Analytics 6th Edition Camm

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, Business Analytics 6E (Camm) – Test Bank


Chapter 01: Introduction to Business Analytics


1. Which of the following best represents a strategic decision made by a company?
a. Determining the number of staff to schedule next week
✓ b. Deciding the type of aircraft to purchase for future fleet expansion
c. Selecting the supplier for this month's raw materials
d. Adjusting the sales target for the current quarter

2. A store manager deciding how many cashiers to schedule is making which type of
decision?
a. Strategic
b. Tactical
✓ c. Operational
d. Predictive

3. Picks and Axes Inc. is an Internet-based retail seller of hiking boots and mountaineering
gear. The company decides to open retail stores across the major areas of the city to help
complement its Internet-based strategy. This activity would be categorized as a(n) _____.
a. tactical decision
b. operational decision
✓ c. strategic decision
d. financial decision

4. What is the most critical step of the decision-making process?
a. Choosing an alternative
✓ b. Identifying and defining the problem
c. Evaluating the alternatives
d. Determining the set of alternatives

5. Which of the following is NOT an approach to making decisions?
a. Tradition
b. Rules of thumb
c. Intuition
✓ d. Guess and check

6. Data-driven decision making tends to decrease a firm's _____.
a. market value
b. productivity
✓ c. risk
d. profit

,7. An airline uses simulation to evaluate pricing strategies. This is an example of _____
analytics.
a. predictive
b. descriptive
✓ c. prescriptive
d. decision

8. The extraction of information on the number of shipments, how much was included in each
shipment, the date each shipment was sent, and so on from the manufacturing plant’s
database exemplifies _____.
a. spreadsheet models
b. data dashboards
c. data mining
✓ d. data queries

9. Which of the following do corporate-level managers use to summarize sales by region,
current inventory levels, and other company-wide metrics all in a single screen?
a. Simulations
b. Cross-tabulations
✓ c. Data dashboards
d. Tables

10. A forecast that helps direct police officers to areas where crimes are likely to occur based
on past data is an example of _____.
✓ a. predictive analytics
b. decision analysis
c. prescriptive analytics
d. descriptive analytics

11. Which one of the following is used in predictive analytics?
a. Data dashboard
✓ b. Linear regression
c. Data visualization
d. Optimization model

12. A retail store owner offers a discount on product A and predicts that the customers would
purchase products B and C in addition to product A. Identify the technique used to make such
a prediction.
a. Data query
b. Simulation
✓ c. Data mining
d. Data dashboards

13. Which of the following is used in the pharmaceutical industry to assess the risk of
introducing a new drug?

, a. Data dashboard
b. Chart
c. Spreadsheet model
✓ d. Simulation

14. Which of the following analytical techniques helps us arrive at the best decision?
a. Predictive analytics
b. Data mining
✓ c. Prescriptive analytics
d. Descriptive analytics

15. What makes Generative AI different from traditional AI?
a. It does not require data.
✓ b. It generates new content such as text, images, or audio.
c. It only works in manufacturing.
d. It requires manual coding for every function.

16. A decision maker faced with several alternatives and an uncertain set of future events
uses what to develop an optimal strategy?
a. Utility theory
b. Predictive analytics
c. Data mining
✓ d. Decision analysis

17. Which of the following is an example of AI being used behind the scenes in business?
a. Using ChatGPT to write reports
✓ b. Recommendation engines suggesting online products
c. Handwriting notes in meetings
d. Filing taxes manually

18. Which of the following best exemplifies big data?
a. Five hundred Facebook users upload one thousand pictures per day.
✓ b. Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and
browsing the Web on a daily basis.
c. A local grocery store collects data from those that scan their loyalty card.
d. A pharmacy keeps track of customer purchases to send its customers coupons.

19. Which of the following sources of big data is NOT publicly available?
a. Twitter
b. Weather data
✓ c. Medical records
d. Sports records

20. A company analyzes customer tweets and call recordings. This demonstrates which “V” of
big data?

, a. Volume
✓ b. Variety
c. Veracity
d. Velocity

21. In the financial sector, what models are used to construct financial instruments such as
derivatives?
a. Descriptive and prescriptive
✓ b. Predictive
c. Descriptive
d. Prescriptive

22. Optimization models can be used to _____.
a. assess the risk of investment portfolios
b. forecast future financial performance
c. successfully manage commercial real estate risk
✓ d. decide on how to invest cash received from insurance policies

23. What does utility theory study that basically means the relative desirability of a particular
outcome that reflects the decision maker’s attitude toward a collection of factors, such as
profit, loss, and risk?
✓ a. Total worth
b. Total cost
c. Feasibility
d. Financial wellness

24. What is the main concern addressed by the veracity characteristic of big data?
a. The ethical use of algorithms
b. The real-time nature of streaming data
✓ c. The uncertainty or trustworthiness of data
d. The size and scope of data

25. Which of the following best defines artificial intelligence in business analytics?
a. Making decisions with no human involvement
b. Using rules and formulas to make graphs
✓ c. Using data and algorithms to enhance or automate decision making
d. Outsourcing decision making to external consultants

26. An open-source programming environment that supports big data processing through
distributed storage and distributed processing on clusters of computers is _____.
✓ a. Hadoop
b. Excel
c. Java
d. MapReduce

,27. What techniques use models, constructed from past data, to predict the future or to
ascertain the impact of one variable on another?
✓ a. Predictive analytics
b. Descriptive analytics
c. Simulation
d. Prescriptive analytics

28. Which type of decision involves higher-level issues and is concerned with the overall
direction of the organization, defining the overarching goals and aspirations for the
organization’s future?
✓ a. Strategic
b. Tactical
c. Intuitive
d. Operational

29. Which type of decision is concerned with how the organization should achieve the goals
and objectives set by its strategy?
✓ a. Tactical
b. Strategic
c. Intuitive
d. Operational

30. What type of analytics uses techniques that take input data and yield a best course of
action?
✓ a. Prescriptive
b. Simulation
c. Strategic
d. Operational

31. In the spectrum of business analytics, which is the most complex?
a. Descriptive
b. Predictive
✓ c. Prescriptive
d. Operational

32. In order to manage an organization’s human resources activities, such as hiring
employees, tracking, and influencing employee retention, HR personnel use _____.
✓ a. both descriptive and predictive analytics
b. both descriptive and prescriptive analytics
c. both predictive and prescriptive analytics
d. only predictive analytics

33. A clearer understanding of consumer behavior through analytics directly leads to _____.
a. more profits
✓ b. better pricing strategies

, c. reduced advertising costs
d. reduced risk

34. A light bulb manufacturer uses descriptive analytics to _____.
✓ a. present supply chain to managers visually
b. achieve efficiency in delivery of goods
c. schedule staff and vehicle for delivery
d. plan capacity utilization by incorporating the inherent uncertainty in commodities pricing

35. What does the U.S. Internal Revenue Service use to identify patterns that distinguish
questionable annual personal income tax filings?
a. Utility theory
b. Prescriptive analytics
✓ c. Data mining
d. Decision analysis

36. Which analytics technique is used by HR departments to forecast employee turnover?
a. Prescriptive analytics
✓ b. Predictive analytics
c. Descriptive analytics
d. Supervised robotics

37. How do Coca-Cola Freestyle machines use business analytics?
a. To conduct employee evaluations
b. To track competitor pricing
✓ c. To collect customer drink preference data
d. To encrypt beverage formulas

38. In supply chain analytics, what is the new focus beyond efficiency?
a. Employee training
✓ b. Resiliency under disruption
c. Merging with HR analytics
d. Sentiment forecasting

39. According to INFORMS ethics, analytics professionals should _____.
a. prioritize speed over accuracy
b. withhold analysis from stakeholders
✓ c. be objective and transparent
d. focus only on profits

40. What ethical problem arises from using biased data in modeling?
a. Models perform faster.
b. Models reflect outdated software.
✓ c. Models lead to unfair decisions.
d. Models become more secure.

,41. What concern does Zeynep Tufecki raise about algorithmic recommendation systems?
a. They fail to collect enough data.
b. They are too expensive to implement.
✓ c. They unintentionally promote extreme content.
d. They violate consumer purchase rights.


Chapter 02: Descriptive Statistics


1. A quantity of interest that can take on different values is known as a(n) _____.
✓ a. variable
b. parameter
c. sample
d. observation

2. A set of values corresponding to a set of variables is defined as a(n) _____.
a. quantity
b. event
c. factor
✓ d. observation

3. The difference in a variable measured over observations (time, customers, items, etc.) is
known as _____.
a. observed differences
✓ b. variation
c. variable change
d. descriptive analytics

4. Which of the following acts as a representative of the population?
a. The variable
b. The variance
✓ c. A sample
d. A random variable

5. The act of collecting data that are representative of the population data is called _____.
✓ a. random sampling
b. sample data
c. population sampling
d. sources of data

6. The letter grades (A, B, C, D, F) of business analysis students are recorded by a professor.
This variable’s classification _____.
a. is quantitative data
b. cannot be determined

, ✓ c. is categorical data
d. is time series data

7. The amount of time taken by each of 10 students in a class to complete an exam is an
example of what type of data?
a. Cannot be determined
b. Categorical data
c. Time series data
✓ d. Quantitative data

8. Which data are collected from several entities at the same point in time?
a. Time series data
b. Categorical and quantitative data
✓ c. Cross-sectional data
d. Random data

9. Data collected from several entities over a period of time (minutes, hours, days, etc.) are
called _____.
a. categorical and quantitative data
✓ b. time series data
c. source data
d. cross-sectional data

10. In what study are one or more variables identified and controlled or manipulated so that
data can be obtained about how they influence the variable of interest identified first?
✓ a. Experimental study
b. Observational study
c. Categorical study
d. Variable study

11. The data collected from the customers in restaurants about the quality of food is an
example of a(n) _____.
a. variable study
b. cross-sectional study
c. experimental study
✓ d. observational study

12. When working with large spreadsheets with many rows of data, it can be helpful to do what
with the data to better find, view, or manage subsets of data?
a. Split
✓ b. Sort and filter
c. Chart
d. Manipulate

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