Information Systems Today, 7e (Valacich)
Chapter 6 Enhancing Business Intelligence Using Information Systems
1) Which of the following statements is true about business intelligence?
A) It is an act of outsourcing tasks, traditionally performed by an employee or contractor, to an
undefined, large group of people or community, through the use of information technology.
B) It is the process by which a customer-owned mutual organization or cooperative changes legal
form to a joint stock company.
C) It is the use of information systems to gather and analyze information from internal and
external sources in order to make better business decisions.
D) It is an organization’s process of defining its strategy, or direction, and making decisions on
allocating its resources to pursue this strategy, including its capital and people.
E) It is the use of human resources to gather and analyze information from external sources in
order to make better business decisions.
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
2) “Backward looking” budgets are typically based on ________.
A) forecasts
B) marketing research
C) future trends
D) historical data
E) current market conditions
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
3) Responding to threats and opportunities and continuous planning are based on analyzing
internal data primarily from the ________ level of an organization.
A) operational
B) executive
C) tactical
D) business
E) strategic
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
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4) When we consider entities as tables, each row is a ________.
A) field
B) record
C) bot
D) form
E) query
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
5) When we consider entities as tables, each column is a(n) ________.
A) attribute
B) record
C) form
D) applet
E) query
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
6) An attribute is also referred to as a ________.
A) form
B) record
C) field
D) query
E) bot
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
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7) A ________ is a collection of related attributes about a single instance of an entity.
A) bot
B) form
C) query
D) field
E) record
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
8) In a database management system (DBMS), data are kept separate from the applications’
programming code. This means that ________.
A) an application cannot be changed without making changes to the database
B) an application’s programming code needs to be updated continuously to keep up with the
database
C) an application needs to be changed when the database is changed
D) the database does not need to be changed if a change is made to an application
E) the database needs to be changed when a change is made to an application
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
9) One of the advantages of a database approach is program-data independence. This means that
it is ________.
A) easier to deploy and control data access using a centralized system
B) easier to evolve and alter software to changing business needs when data and programs are
independent
C) a centralized system, thereby making it easier to enforce access restrictions
D) a centralized system, thereby making it much easier to enforce standards and rules for data
creation, modification, naming, and deletion
E) useful for eliminating redundancy, thereby reducing the possibilities of inconsistency
Difficulty: Moderate
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
3
10) Identify an advantage when the database approach makes it easier to deploy and control data
access.
A) improved data accessibility
B) improved data consistency
C) improved data quality
D) increased security
E) improved data sharing
Difficulty: Moderate
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
11) Which of the following is a risk associated with a database approach?
A) enforcement of standards
B) program-data independence
C) organizational conflict
D) minimal data redundancy
E) reduced program maintenance
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
12) Data type helps a database management system (DBMS) to ________.
A) present the data in a useful format
B) format data
C) allocate storage space
D) eliminate data duplication
E) retrieve information
Difficulty: Moderate
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
4
13) Once the data model is created, the format of the data is documented in a data ________.
A) warehouse
B) entry
C) mart
D) domain
E) dictionary
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
14) A data dictionary is also known as a(n) ________.
A) data mart
B) data warehouse
C) metadata repository
D) ubiquitous computing
E) clickstream data
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
15) Bringes, a retail chain, has retail stores across three states. With its current legacy system,
Bringes is having problems tracking the inventory levels for its stores. It is planning to
implement an Oracle database system to replace this legacy system. Which of the following most
supports Bringes’ decision to replace its legacy system with an Oracle database system?
A) Implementing an Oracle database system will require Bringe to hire additional specialized
personnel to manage it.
B) Partial implementation of the Oracle database system can create more problems than it is
likely to solve.
C) Conversion cost required for the implementation of an Oracle database system is not
supported by the IT budget.
D) Bringes’ channel partners use a database system that supports the Oracle database system.
E) Maintenance of an Oracle database system is more expensive than the legacy system presently
in use.
Difficulty: Moderate
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Application
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16) Treston, an automobile manufacturer, recently implemented a new database system. It was
confident that this system would help enhance the company’s internal (employees) and external
(customers and channel partners) communication. Treston had planned to pursue a just-in-time
inventory system soon after the database system was implemented. After the implementation of
the database system, however, Treston realized that the database system was not effective. Which
of the following can be cited as a reason for the failure of Treston’s database system?
A) Aerodoungle launched a new version of Enterprise Database Access, which was better than
Treston’s database system.
B) The maintenance cost of Treston’s new database system was less than the one it was
previously using.
C) Treston’s new database system was not supported by the database system of its suppliers and
distributors.
D) Treston’s competitors implemented its database a few days prior to Treston’s implementation
date.
E) Treston had internally trained personnel managing its new database system, thereby keeping
costs low.
Difficulty: Moderate
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Application
17) Business rules are captured by the designers of a database and included in a data dictionary
to ________.
A) organize and sort the data, complete calculations, and allocate storage space
B) prevent illegal or illogical entries from entering the database
C) eliminate data duplication
D) make sure that each table contains only attributes that are related to an entity
E) capture the structure of the database
Difficulty: Moderate
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
6
18) ________ are used to capture data to be added, modified, or deleted from a database.
A) Forms
B) Reports
C) Queries
D) Bots
E) Layers
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
19) A(n) ________ is a compilation of data from a database that is organized and produced in
printed format.
A) form
B) attribute
C) field
D) entity
E) report
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
20) A query is used to ________.
A) organize and sort the data in a database
B) allocate storage space for a database
C) eliminate data duplication
D) retrieve data from a database
E) prevent illegal or illogical entries from entering the database
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
7
21) ________ systems are designed to handle multiple concurrent transactions from customers.
A) Online transaction processing
B) Product allocation
C) Yield optimization management
D) Network transaction maximization
E) Real utility management
Difficulty: Moderate
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
22) Systems that are used to interact with customers and run a business in real-time are called
________ systems.
A) tactical
B) strategic
C) operational
D) informational
E) executive
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
23) ________ are the data that is deemed most important in the operation of a business.
A) Metadata
B) Master data
C) Reference data
D) Query data
E) Tactical data
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
8
24) Which of the following statements is true about an operational system?
A) Its primary purpose is to support managerial decision making.
B) It consists of historical or point-in-time data.
C) Its goal is to enhance ease of access and use.
D) It consists of narrow and simple updates and queries.
E) It is primarily used by managers.
Difficulty: Moderate
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
25) Which of the following statements is true about an information system?
A) Its primary purpose is to run the business on a current basis.
B) It is primarily used by online customers, clerks, salespersons, and administrators.
C) It consists of narrow and simple updates and queries.
D) Its design goal is to enhance performance.
E) Its design goal is to enhance ease of access and use.
Difficulty: Moderate
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
26) ________ integrates data from various operational systems.
A) A data warehouse
B) A metadata repository
C) Data modeling
D) Master data
E) Data mining
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
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27) The purpose of a data warehouse is to ________.
A) standardize the format of data retrieved from different systems
B) allow managers to run queries and reports themselves without having to know query
languages or the structure of the underlying data
C) provide capabilities for discovering hidden predictive relationships in the data
D) put key business information into the hands of more decision makers
E) increase the complexity of the data to be analyzed
Difficulty: Moderate
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
28) ________ involves standardizing the format of data retrieved from different systems.
A) Data cleansing
B) Data mining
C) Digitizing
D) Content mining
E) Clustering
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
29) A ________ is a data warehouse that is limited in scope.
A) metadata repository
B) compound data
C) data model
D) data entity
E) data mart
Difficulty: Easy
Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a
foundation for gaining business intelligence.
Classification: Concept
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