Business Intelligence and Analytics: Systems for Decision Support, 10e (Sharda)
Chapter 1 An Overview of Business Intelligence, Analytics, and Decision Support
101) Computerized support is only used for organizational decisions that are responses to
external pressures, not for taking advantage of opportunities.
Answer: FALSE
Diff: 2 Page Ref: 5
102) The complexity of today's business environment creates many new challenges for
organizations, such as global competition, but creates few new opportunities in return.
Answer: FALSE
Diff: 2 Page Ref: 6
103) In addition to deploying business intelligence (BI) systems, companies may also perform
other actions to counter business pressures, such as improving customer service and entering
business alliances.
Answer: TRUE
Diff: 1 Page Ref: 6-7
104) The overwhelming majority of competitive actions taken by businesses today feature
computerized information system support.
Answer: TRUE
Diff: 1 Page Ref: 7
105) PCs and, increasingly, mobile devices are the most common means of providing managers
with information to directly support decision making, instead of using IT staff intermediaries.
Answer: TRUE
Diff: 2 Page Ref: 7
106) In today's business environment, creativity, intuition, and interpersonal skills are effective
substitutes for analytical decision making.
Answer: FALSE
Diff: 2 Page Ref: 8
107) In a four-step process for decision making, managers construct a model of the problem
before they evaluate potential solutions.
Answer: TRUE
Diff: 2 Page Ref: 9
108) Due to the fact that business environments are now more complex than ever, trial-and-error
is an effective means of arriving at acceptable solutions.
Answer: FALSE
Diff: 2 Page Ref: 9
109) Group collaboration software has proved generally ineffective at improving decision-
making.
Answer: FALSE
Diff: 3 Page Ref: 9-10
1
,Business Intelligence and Analytics: Systems for Decision Support, 10e (Sharda)
Chapter 1 An Overview of Business Intelligence, Analytics, and Decision Support
110) Due to the fact that organizations seek to store greater amounts of data than ever before, the
cost per byte of computer-based data storage devices is rapidly rising.
Answer: FALSE
Diff: 3 Page Ref: 10
111) Computerized information systems help decision makers overcome human cognitive
limitations in assembling and processing varied information. However, this is of little use in most
analytical applications.
Answer: FALSE
Diff: 3 Page Ref: 10
112) In the Gorry and Scott-Morton framework of structured, semi-structured, and unstructured
decisions, computerized decision support can bring benefits to unstructured decisions.
Answer: TRUE
Diff: 2 Page Ref: 12
113) The term decision support system is a very specific term that implies the same tool, system,
and development approach to most developers.
Answer: FALSE
Diff: 3 Page Ref: 13
114) The access to data and ability to manipulate data (frequently including real-time data) are
key elements of business intelligence (BI) systems.
Answer: TRUE
Diff: 2 Page Ref: 14
115) One of the four components of BI systems, business performance management, is a
collection of source data in the data warehouse.
Answer: FALSE
Diff: 3 Page Ref: 15
116) Actionable intelligence is the primary goal of modern-day Business Intelligence (BI)
systems vs. historical reporting that characterized Management Information Systems (MIS).
Answer: TRUE
Diff: 3 Page Ref: 17
117) The use of dashboards and data visualizations is seldom effective in finding efficiencies in
organizations, as demonstrated by the Seattle Children's Hospital Case Study.
Answer: FALSE
Diff: 2 Page Ref: 21
118) The use of statistics in baseball by the Oakland Athletics, as described in the Moneyball
case study, is an example of the effectiveness of prescriptive analytics.
Answer: TRUE
Diff: 2 Page Ref: 23
2
,Business Intelligence and Analytics: Systems for Decision Support, 10e (Sharda)
Chapter 1 An Overview of Business Intelligence, Analytics, and Decision Support
119) Pushing programming out to distributed data is achieved solely by using the Hadoop
Distributed File System or HDFS.
Answer: FALSE
Diff: 2 Page Ref: 28
120) Volume, velocity, and variety of data characterize the Big Data paradigm.
Answer: TRUE
Diff: 2 Page Ref: 28
121) In the Magpie Sensing case study, the automated collection of temperature and humidity
data on shipped goods helped with various types of analytics. Which of the following is an
example of prescriptive analytics?
A) real time reports of the shipment's temperature
B) warning of an open shipment seal
C) location of the shipment
D) optimal temperature setting
Answer: D
Diff: 3 Page Ref: 4
122) In the Magpie Sensing case study, the automated collection of temperature and humidity
data on shipped goods helped with various types of analytics. Which of the following is an
example of predictive analytics?
A) real time reports of the shipment's temperature
B) warning of an open shipment seal
C) location of the shipment
D) optimal temperature setting
Answer: B
Diff: 3 Page Ref: 4
123) Which of the following is NOT an example that falls within the four major categories of
business environment factors for today's organizations?
A) globalization
B) increased pool of customers
C) fewer government regulations
D) increased competition
Answer: C
Diff: 2 Page Ref: 5-6
124) Organizations counter the pressures they experience in their business environments in
multiple ways. Which of the following is NOT an effective way to counter these pressures?
A) reactive actions
B) anticipative actions
C) adaptive actions
D) retroactive actions
Answer: D
Diff: 2 Page Ref: 6
3
, Business Intelligence and Analytics: Systems for Decision Support, 10e (Sharda)
Chapter 1 An Overview of Business Intelligence, Analytics, and Decision Support
125) Which of the following activities permeates nearly all managerial activity?
A) planning
B) controlling
C) directing
D) decision-making
Answer: D
Diff: 2 Page Ref: 7
126) Why are analytical decision making skills now viewed as more important than interpersonal
skills for an organization's managers?
A) because interpersonal skills are never important in organizations
B) because personable and friendly managers are always the least effective
C) because analytical-oriented managers produce better results over time
D) because analytical-oriented managers tend to be flashier and less methodical
Answer: C
Diff: 3 Page Ref: 8
127) Business environments and government requirements are becoming more complex. All of
the following actions to manage this complexity would be appropriate EXCEPT
A) hiring more sophisticated and computer-savvy managers.
B) deploying more sophisticated tools and technique.
C) seeking new ways to avoid government compliance.
D) avoiding expensive trial and error to find out what works.
Answer: C
Diff: 2 Page Ref: 9
128) The deployment of large data warehouses with terabytes or even petabytes of data been
crucial to the growth of decision support. All the following explain why EXCEPT
A) data warehouses have enabled the affordable collection of data for analytics.
B) data warehouses have enabled the collection of decision makers in one place.
C) data warehouses have assisted the collection of data for data mining.
D) data warehouses have assisted the collection of data from multiple sources.
Answer: B
Diff: 2 Page Ref: 10
129) Which of the following statements about cognitive limits of organizational decision makers
is true?
A) Only top managers make decisions where cognitive limits are strained.
B) The most talented and effective managers do not have cognitive limitations.
C) All organizational decision-making requires data beyond human cognitive limits.
D) Cognitive limits affect both the recall and use of data by decision makers.
Answer: D
Diff: 2 Page Ref: 10
4
Chapter 1 An Overview of Business Intelligence, Analytics, and Decision Support
101) Computerized support is only used for organizational decisions that are responses to
external pressures, not for taking advantage of opportunities.
Answer: FALSE
Diff: 2 Page Ref: 5
102) The complexity of today's business environment creates many new challenges for
organizations, such as global competition, but creates few new opportunities in return.
Answer: FALSE
Diff: 2 Page Ref: 6
103) In addition to deploying business intelligence (BI) systems, companies may also perform
other actions to counter business pressures, such as improving customer service and entering
business alliances.
Answer: TRUE
Diff: 1 Page Ref: 6-7
104) The overwhelming majority of competitive actions taken by businesses today feature
computerized information system support.
Answer: TRUE
Diff: 1 Page Ref: 7
105) PCs and, increasingly, mobile devices are the most common means of providing managers
with information to directly support decision making, instead of using IT staff intermediaries.
Answer: TRUE
Diff: 2 Page Ref: 7
106) In today's business environment, creativity, intuition, and interpersonal skills are effective
substitutes for analytical decision making.
Answer: FALSE
Diff: 2 Page Ref: 8
107) In a four-step process for decision making, managers construct a model of the problem
before they evaluate potential solutions.
Answer: TRUE
Diff: 2 Page Ref: 9
108) Due to the fact that business environments are now more complex than ever, trial-and-error
is an effective means of arriving at acceptable solutions.
Answer: FALSE
Diff: 2 Page Ref: 9
109) Group collaboration software has proved generally ineffective at improving decision-
making.
Answer: FALSE
Diff: 3 Page Ref: 9-10
1
,Business Intelligence and Analytics: Systems for Decision Support, 10e (Sharda)
Chapter 1 An Overview of Business Intelligence, Analytics, and Decision Support
110) Due to the fact that organizations seek to store greater amounts of data than ever before, the
cost per byte of computer-based data storage devices is rapidly rising.
Answer: FALSE
Diff: 3 Page Ref: 10
111) Computerized information systems help decision makers overcome human cognitive
limitations in assembling and processing varied information. However, this is of little use in most
analytical applications.
Answer: FALSE
Diff: 3 Page Ref: 10
112) In the Gorry and Scott-Morton framework of structured, semi-structured, and unstructured
decisions, computerized decision support can bring benefits to unstructured decisions.
Answer: TRUE
Diff: 2 Page Ref: 12
113) The term decision support system is a very specific term that implies the same tool, system,
and development approach to most developers.
Answer: FALSE
Diff: 3 Page Ref: 13
114) The access to data and ability to manipulate data (frequently including real-time data) are
key elements of business intelligence (BI) systems.
Answer: TRUE
Diff: 2 Page Ref: 14
115) One of the four components of BI systems, business performance management, is a
collection of source data in the data warehouse.
Answer: FALSE
Diff: 3 Page Ref: 15
116) Actionable intelligence is the primary goal of modern-day Business Intelligence (BI)
systems vs. historical reporting that characterized Management Information Systems (MIS).
Answer: TRUE
Diff: 3 Page Ref: 17
117) The use of dashboards and data visualizations is seldom effective in finding efficiencies in
organizations, as demonstrated by the Seattle Children's Hospital Case Study.
Answer: FALSE
Diff: 2 Page Ref: 21
118) The use of statistics in baseball by the Oakland Athletics, as described in the Moneyball
case study, is an example of the effectiveness of prescriptive analytics.
Answer: TRUE
Diff: 2 Page Ref: 23
2
,Business Intelligence and Analytics: Systems for Decision Support, 10e (Sharda)
Chapter 1 An Overview of Business Intelligence, Analytics, and Decision Support
119) Pushing programming out to distributed data is achieved solely by using the Hadoop
Distributed File System or HDFS.
Answer: FALSE
Diff: 2 Page Ref: 28
120) Volume, velocity, and variety of data characterize the Big Data paradigm.
Answer: TRUE
Diff: 2 Page Ref: 28
121) In the Magpie Sensing case study, the automated collection of temperature and humidity
data on shipped goods helped with various types of analytics. Which of the following is an
example of prescriptive analytics?
A) real time reports of the shipment's temperature
B) warning of an open shipment seal
C) location of the shipment
D) optimal temperature setting
Answer: D
Diff: 3 Page Ref: 4
122) In the Magpie Sensing case study, the automated collection of temperature and humidity
data on shipped goods helped with various types of analytics. Which of the following is an
example of predictive analytics?
A) real time reports of the shipment's temperature
B) warning of an open shipment seal
C) location of the shipment
D) optimal temperature setting
Answer: B
Diff: 3 Page Ref: 4
123) Which of the following is NOT an example that falls within the four major categories of
business environment factors for today's organizations?
A) globalization
B) increased pool of customers
C) fewer government regulations
D) increased competition
Answer: C
Diff: 2 Page Ref: 5-6
124) Organizations counter the pressures they experience in their business environments in
multiple ways. Which of the following is NOT an effective way to counter these pressures?
A) reactive actions
B) anticipative actions
C) adaptive actions
D) retroactive actions
Answer: D
Diff: 2 Page Ref: 6
3
, Business Intelligence and Analytics: Systems for Decision Support, 10e (Sharda)
Chapter 1 An Overview of Business Intelligence, Analytics, and Decision Support
125) Which of the following activities permeates nearly all managerial activity?
A) planning
B) controlling
C) directing
D) decision-making
Answer: D
Diff: 2 Page Ref: 7
126) Why are analytical decision making skills now viewed as more important than interpersonal
skills for an organization's managers?
A) because interpersonal skills are never important in organizations
B) because personable and friendly managers are always the least effective
C) because analytical-oriented managers produce better results over time
D) because analytical-oriented managers tend to be flashier and less methodical
Answer: C
Diff: 3 Page Ref: 8
127) Business environments and government requirements are becoming more complex. All of
the following actions to manage this complexity would be appropriate EXCEPT
A) hiring more sophisticated and computer-savvy managers.
B) deploying more sophisticated tools and technique.
C) seeking new ways to avoid government compliance.
D) avoiding expensive trial and error to find out what works.
Answer: C
Diff: 2 Page Ref: 9
128) The deployment of large data warehouses with terabytes or even petabytes of data been
crucial to the growth of decision support. All the following explain why EXCEPT
A) data warehouses have enabled the affordable collection of data for analytics.
B) data warehouses have enabled the collection of decision makers in one place.
C) data warehouses have assisted the collection of data for data mining.
D) data warehouses have assisted the collection of data from multiple sources.
Answer: B
Diff: 2 Page Ref: 10
129) Which of the following statements about cognitive limits of organizational decision makers
is true?
A) Only top managers make decisions where cognitive limits are strained.
B) The most talented and effective managers do not have cognitive limitations.
C) All organizational decision-making requires data beyond human cognitive limits.
D) Cognitive limits affect both the recall and use of data by decision makers.
Answer: D
Diff: 2 Page Ref: 10
4
