Package Title: Testbank Questions
Course Title: MIS 1e
Chapter Number: 5
Question Type: True/False
1) A manager’s primary function is strategic planning.
Answer: False
Title: Testbank Question 5.01
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
2) The ratio between organizational inputs and outputs is an indication of the organization’s
productivity.
Answer: True
Title: Testbank Question 5.02
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
3) Modern information systems support all three managerial roles.
Answer: True
Title: Testbank Question 5.03
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
4) In the choice phase of the decision-making process, managers construct a model that simplifies the
problem.
Answer: False
Title: Testbank Question 5.04
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
5) In the implementation phase of the decision-making process, managers set criteria for the evaluation
of alternative potential solutions.
Answer: False
Title: Testbank Question 5.05
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
6) The number of alternatives to be considered in decisions today is increasing.
Answer: True
Title: Testbank Question 5.06
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
7) Structured decisions address routine, repetitive problems for which standard solutions exist.
Answer: True
Title: Testbank Question 5.07
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
8) Human intuition often plays a role in making unstructured decisions.
Answer: True
Title: Testbank Question 5.08
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
9) Unstructured decisions require a combination of standard solution procedures and individual
judgment.
Answer: False
Title: Testbank Question 5.09
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
10) Management control is the acquisition and efficient use of resources in accomplishing organizational
tasks.
Answer: True
Title: Testbank Question 5.10
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
11) The use of BI is limited to large corporations.
Answer: False
Title: Testbank Question 5.11
Learning Objective 1: LO 5.2 Provide examples of different ways that organizations make use of BI.
Section Reference 1: 5.2 What Is Business Intelligence?
Difficulty: Easy
12) Targeted marketing is a good example of the discovery of previously unknown or hidden patterns.
Answer: False
Title: Testbank Question 5.12
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy
13) Decision-support systems support only lower- and middle-level managers.
Answer: False
Title: Testbank Question 5.13
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy
14) Goal-seeking analysis attempts to find the value of the inputs necessary to achieve a desired level of
output.
Answer: True
Title: Testbank Question 5.14
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy
15) A digital dashboard is very user friendly, supported by graphics, provides exception reporting and
drill down, and provides information related to critical success factors.
Answer: True
Title: Testbank Question 5.15
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy
16) Digital dashboards provide support primarily to analytical, quantitative types of decisions.
Answer: False
Title: Testbank Question 5.16
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
17) KPI stands for key process information.
Answer: False
Title: Testbank Question 5.17
Learning Objective 1: LO 5.5 Explain how your university could use CPM to effect solutions to two
campus problems.
Section Reference 1: 5.5 Business Intelligence in Action: Corporate Performance Management
Difficulty: Easy
18) Corporate performance management (CPM) is involved with monitoring and managing an
organization’s performance according to its budget.
Answer: False
Title: Testbank Question 5.18
Learning Objective 1: LO 5.5 Explain how your university could use CPM to effect solutions to two
campus problems.
Section Reference 1: 5.5 Business Intelligence in Action: Corporate Performance Management
Difficulty: Easy
19) Refer to IT’s About Business 5.1 – Analytics in the National Basketball Association: Key to the
success of Stats is its ability to identify dribbles and passes based on the movement of the players.
Answer: False
Title: Testbank Question 5.19
Learning Objective 1: LO 5.2 Provide examples of different ways that organizations make use of BI.
Section Reference 1: IT’s About Business 5.1 -- Analytics in the National Basketball Association
Difficulty: Easy
Question Type: Multiple Choice
20) _____ is the process by which organizational goals are achieved through the use of organizational
resources.
a) Organizational decision making
b) Operations
c) Organizational strategy
d) Organizational productivity
e) Management
Answer: e
Title: Testbank Question 5.20
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
21) Which of the following is not a basic role of managers?
a) interpersonal
b) processor
c) informational
d) decisional
Answer: b
Title: Testbank Question 5.21
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
22) Being a figurehead and leader is part of the _____ managerial role.
a) interpersonal
b) processor
c) informational
d) decisional
e) confrontational
Answer: a
Title: Testbank Question 5.22
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
23) Being an entrepreneur, disturbance handler, and negotiator is part of the _____ managerial role.
a) interpersonal
b) processor
c) informational
d) decisional
e) confrontational
Answer: d
Title: Testbank Question 5.23
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
24) In the _____ phase of the decision-making process, managers examine a situation and identify and
define the problem.
a) implementation
b) choice
c) design
d) intelligence
e) consideration
Answer: d
Title: Testbank Question 5.24
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
25) In the _____ phase of the decision-making process, managers construct a model that simplifies the
problem.
a) implementation
b) choice
c) design
d) intelligence
e) consideration
Answer: c
Title: Testbank Question 5.25
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
26) Success in the _____ phase of the decision-making process results in resolving the original problem,
and failure leads to a return to previous phases.
a) implementation
b) choice
c) design
d) intelligence
e) consideration
Answer: a
Title: Testbank Question 5.26
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
27) In the _____ phase of the decision-making process, managers test potential solutions “on paper.”
a) implementation
b) choice
c) design
d) intelligence
e) consideration
Answer: b
Title: Testbank Question 5.27
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
28) Which of the following is not a reason why managers need IT support?
a) The number of alternatives is decreasing.
b) Decisions must typically be made under time pressure.
c) Decisions are becoming more complex.
d) There is a growing need to access remote information sources.
e) Decision makers are often based in different locations.
Answer: a
Title: Testbank Question 5.28
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
29) Decisions today are becoming _____ complex, due to _____ uncertainty in the decision
environment.
a) less, decreased
b) more, decreased
c) less, increased
d) more, increased
e) neither more nor less, decreased
Answer: d
Title: Testbank Question 5.29
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
30) Which of the following is not a characteristic of a structured decision?
a) It is routine.
b) It is repetitive.
c) Human intuition is not involved.
d) The first three phases of the decision-making process need not occur in any particular sequence
e) Standard solutionsexist.
Answer: d
Title: Testbank Question 5.30
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
31) The type of decision that can be made by following a definite procedure is called a(n) ______
decision.
a) structured
b) unstructured
c) undocumented
d) semistructured
e) procedural
Answer: a
Title: Testbank Question 5.31
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
32) ________ decisions are more common at lower organizational levels.
a) Structured
b) Unstructured
c) Undocumented
d) Semistructured
e) Procedural
Answer: a
Title: Testbank Question 5.32
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
33) Rank-and-file employees tend to make more _________ decisions.
a) Structured
b) Unstructured
c) Undocumented
d) Semistructured
e) Procedural
Answer: a
Title: Testbank Question 5.33
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
34) Calculating gross pay for hourly workers is an example of ________ decision making.
a) Structured
b) Unstructured
c) Undocumented
d) Semistructured
e) Procedural
Answer: a
Title: Testbank Question 5.34
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
35) Which of the following is not a characteristic of unstructured decisions?
a) They are complex.
b) They typically are fuzzy and unclear.
c) Standard solutions exist.
d) Human intuition is involved.
e) The first three phases of the decision-making process occur in no particular sequence.
Answer: c
Title: Testbank Question 5.35
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
36) When there is no well-understood or agreed-on procedure for making a decision, the decision is said
to be:
a) undocumented
b) structured
c) unstructured
d) semistructured
e) documented
Answer: c
Title: Testbank Question 5.36
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
37) A large foreign automobile manufacturer is considering where to build a new manufacturing plant in
the United States. They are making which type of decision?
a) structured
b) semistructured
c) unstructured
d) informational
e) wisdom
Answer: b
Title: Testbank Question 5.37
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
38) Which type of decision requires a combination of standard solution procedures and individual
judgment?
a) structured
b) semistructured
c) unstructured
d) informational
e) wisdom
Answer: b
Title: Testbank Question 5.38
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
39) A company’s annual employee evaluation best fits which type of decision?
a) unstructured
b) structured
c) semistructured
d) confrontational
e) wisdom
Answer: c
Title: Testbank Question 5.39
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
40) _____ is the efficient and effective execution of specific tasks.
a) Operational control
b) Management control
c) Strategic planning
d) Expertise
e) Wisdom
Answer: a
Title: Testbank Question 5.40
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
41) _____ is the acquisition and efficient use of resources in accomplishing organizational goals.
a) Operational control
b) Management control
c) Strategic planning
d) Expertise
e) Wisdom
Answer: b
Title: Testbank Question 5.41
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Easy
42) Computer support is greatest for which of the following problems?
a) semistructured and strategic planning
b) unstructured and operational control
c) structured and operational control
d) semistructured and management control
e) structured and management control
Answer: c
Title: Testbank Question 5.42
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
43) Computer support is least for which of the following problems?
a) semistructured and strategic planning
b) unstructured and strategic planning
c) semistructured and management control
d) unstructured and operational control
e) structured and strategic planning
Answer: b
Title: Testbank Question 5.43
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
44) Searching for valuable business information in a database, data warehouse, or data mart is referred
to as _____.
a) structured queries
b) database queries
c) data mining
d) query by example
e) expert system queries
Answer: c
Title: Testbank Question 5.44
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy
45) _____ provides users with a view of what is happening, whereas _____ addresses why it is
happening.
a) Multidimensional data analysis, Structured Query Language
b) Data mining, multidimensional data analysis
c) Data mining, expert system
d) Multidimensional data analysis, neural networks
e) Multidimensional data analysis, data mining
Answer: e
Title: Testbank Question 5.45
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
46) Credit card companies would most likely use which of the following to check for fraudulent credit
card use?
a) Data mining
b) Expert systems
c) Neural networks
d) Multidimensional data analysis
e) Structured query language
Answer: a
Title: Testbank Question 5.46
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
47) A company wants to use data from past promotional mailings to identify people who would likely
respond favorably to future mailings. This company would most likely use:
a) Structured Query Language
b) multidimensional data analysis
c) neural networks
d) expert systems
e) data mining
Answer: e
Title: Testbank Question 5.47
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
48) Which of the following is not a characteristic of decision support systems?
a) They support only lower- and middle-level managers.
b) They are easy to use and construct.
c) They can adapt to changing conditions.
d) They usually utilize quantitative models.
e) They support all phases of the decision-making process.
Answer: a
Title: Testbank Question 5.48
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
49) At the end of a semester, a student knows that she must achieve a grade of 81 or higher on her final
exam to get an A in the course. She has just performed what kind of analysis?
a) What-if
b) Qualitative
c) Sensitivity
d) Goal-seeking
e) Simulation
Answer: d
Title: Testbank Question 5.49
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
50) _____ attempts to find the value of the inputs necessary to achieve a desired level of output.
a) What-if analysis
b) Qualitative analysis
c) Sensitivity analysis
d) Goal-seeking analysis
e) Simulation
Answer: d
Title: Testbank Question 5.50
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Easy
51) A(n) _____ provides rapid access to timely information and direct access to management reports.
a) decision support system
b) expert system
c) neural network
d) digital dashboard
e) data warehouse
Answer: d
Title: Testbank Question 5.51
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy
52) Which capability of digital dashboards enables users to obtain the latest data available on key
performance indicators or some other metric, ideally in real time?
a) Drill-down
b) Key performance indicators
c) Status access
d) Trend analysis
e) Exception reporting
Answer: c
Title: Testbank Question 5.52
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy
53) Which of the following information systems are very user friendly, supported by graphics, and
provide exception reporting and drill down?
a) decision support systems
b) digital dashboards
c) functional area information systems
d) group decision support systems
e) expert systems
Answer: b
Title: Testbank Question 5.53
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy
54) Digital dashboards provide all of the following capabilities except:
a) drill-down
b) transaction processing
c) status access
d) key performance indicators
e) exception reporting
Answer: b
Title: Testbank Question 5.54
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Easy
55) The Management Cockpit best exemplifies which type of system?
a) decision support system
b) expert system
c) digital dashboard
d) functional area information system
e) group decision support system
Answer: c
Title: Testbank Question 5.55
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
56) The primary distinguishing characteristic of geographical information systems is:
a) every record or digital object has a unique identifier
b) every record or digital object is visible to the user
c) every record or digital object must be accessed by programmers
d) every record or digital object has an identified geographical location
e) every record or digital object is encrypted
Answer: d
Title: Testbank Question 5.56
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
57) Geocoding involves:
a) integrating maps with spatially oriented databases and other databases
b) encrypting spatial information
c) accessing geographical information
d) integrating organizational transactions with spatially oriented databases
e) programming spatially oriented databases
Answer: a
Title: Testbank Question 5.57
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
58) Refer to the Closing Case #1 – Procter & Gamble Uses Analytics: When executives are changing the
screen in the Business Sphere room to change the image from a view of the world map to a graph of
toothpate prices in India, they are
a) doing what-if analysis.
b) drilling down.
c) looking at key performance indicators.
d) doing sensitivity analysis.
e) looking at an expert system.
Answer: b
Title: Testbank Question 5.58
Learning Objective 1: LO 5.5 Offer examples of how business and government agencies can use
different BI applciations to analyze data.
Section Reference 1: Closing Case 1: Procter & Gamble Uses Analytics
Difficulty: Medium
59) Refer to the Closing Case #2 – Predictive Policing: The software that Santa Cruz Police Department
is using is an example of
a) doing what-if analysis.
b) doing sensitivity analysis
c) looking at key performance indicators.
d) data mining,
e) an expert system.
Answer: d
Title: Testbank Question 5.59
Learning Objective 1: LO 5.5 Offer examples of how business and government agencies can use
different BI applciations to analyze data.
Section Reference 1: Closing Case #2 – Predictive Policing
Difficulty: Medium
60) Refer to the Opening Case – EarthRisk Technologies: Which of the following is true about the
startup company EarthRisk?
a) It makes decisions for its users..
b) EarthRisk uses the same models used by current meteorologists.
c) EarthRisk uses data mining against decades of weather data.
d) EarthRisk focuses on weather less than two weeks away.
e) EarthRisk results can only be used by meteorologists.
Answer: c
Title: Testbank Question 5.60
Learning Objective 1: LO 5.0 Provide a real-world application of business intelligence.
Section Reference 1: Opening Case: EarthRisk Technologies
Difficulty: Medium
61) Refer to IT’s About Business 5.2 – Using Analytics to Save the Grevy’s Zebra: The work done to
understand what was happening to the Grevy’s zebra and the communities they exist in was done using
a) decision support system
b) expert system
c) digital dashboard
d) functional area information system
e) group decision support system
.
Answer: a
Title: Testbank Question 5.61
Learning Objective 1: LO 5.2 Provide examples of different ways that organizations make use of BI.
Section Reference 1: IT’s About Business 5.2 – Using Analytics to Save the Grevy’s Zebra
Difficulty: Medium
62) Refer to IT’s About Business 5.3 – SecureAlert: SecureAlert uses an integration of which two
technologies?
a) data warehouse and DSS
b) DSS and data mining
c) GIS and GPS
d) data mining and clustering
Answer: c
Title: Testbank Question 5.62
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: IT’s About Business 5.3 -- SecureAlert
Difficulty: Medium
63) Refer to IT’s About Business 5.4 – Catalina Marketing: Catalina Marketing systems use which two
technologies?
a) data warehouse and DSS
b) DSS and data mining
c) GIS and GPS
d) data mining and clustering
e) data warehouse and data mining
Answer: e
Title: Testbank Question 5.63
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: IT’s About Business 5.3 -- Catalina Marketing
Difficulty: Medium
Question Type: Essay
64) Describe the three major roles of managers.
Title: Testbank Question 5.64
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
65) Explain why managers need IT support.
Title: Testbank Question 5.65
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
66) Discuss the information technologies that are available to support managers.
Title: Testbank Question 5.66
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
67) Describe the phases in the decision-making process.
Title: Testbank Question 5.67
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
68) Describe OLAP, and explain what a data cube is.
Title: Testbank Question 5.68
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
69) Explain data mining, using examples.
Title: Testbank Question 5.69
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
70) Explain how what-if analysis is employed, using examples.
Title: Testbank Question 5.70
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
71) Explain what data visualization technologies are, using examples.
Title: Testbank Question 5.71
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
72) Describe how your university could use a decision support system in its admissions process.
Title: Testbank Question 5.72
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Hard
73) Discuss the structure of problems, the nature of decisions, and the framework for computerized
decision analysis.
Title: Testbank Question 5.73
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
74) Describe how your university could use a geographical information system in its admissions
process. What value could your university gain from using such a system?
Title: Testbank Question 5.74
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Hard
75) Speculate on the future of virtual reality applications in higher (college and university) education.
Describe some possible applications.
Title: Testbank Question 5.75
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Hard
Question Type: Multiple Choice
77) You’ve started an internship at the major hospital in your city. Your boss gave you ten minutes of
training on the data warehouse that you have access to. The last thing she told you was to do some
analysis on the Visit cube. Which of the following statements is false?
a) One dimension of the cube is (probably) day.
b) One dimension of the cube is (probably) treatment.
c) One dimension of the cube is (probably) doctor.
d) One dimension of the cube is (probably) month.
e) One dimension of the cube is (probably) patient.
Answer: d
Title: Testbank Question 5.77
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
78) You’ve started an internship at the major hospital in your city. Your boss gave you ten minutes of
training on the data warehouse that you have access to. She then asked you to see if there is any
correlation between treatments and day of the week. To do this, you will be doing:
a) Transaction processing.
b) Data mining
c) What-if analysis.
d) Goal-seeking
e) Exception reporting
Answer: b
Title: Testbank Question 5.78
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
79) Sally is working for her uncle for the summer in the marketing department of Proctor & Gamble.
She tells you she does data mining all day long. Which of the following statements is false?
a) Data mining can be used to prove assumptions.
b) Data mining is used to identify unknown patterns.
c) Data mining can explain why things happened.
d) Data mining can predict what will happen.
e) Data mining can be used to identify customers.
Answer: e
Title: Testbank Question 5.79
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
80) Sally is working for her uncle for the summer in the marketing department of Proctor & Gamble.
One of her recent projects was to use the insights from the data mining to determine the sales level that
will cover expected expenses for the upcoming year for one product line. Sally will be doing:
a) What-if analysis
b) Qualitative analysis
c) Sensitivity analysis
d) Goal-seeking analysis
e) A simulation.
Answer: d
Title: Testbank Question 5.80
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
81) Sally is working for her uncle for the summer in the marketing department of Proctor & Gamble.
One of her recent projects was to build a model of revenue that would allow her boss to test a variety of
price points against forecasts of units sold for each product in a product line. Sally will be doing:
a) What-if analysis
b) Qualitative analysis
c) Sensitivity analysis
d) Goal-seeking analysis
e) A simulation.
Answer: a
Title: Testbank Question 5.81
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
82) Shawn is doing some budgeting for his new start-up business. He has developed a budget in Excel
using formulas, as he was taught to do in college. Which of the following statements is true?
a) If Shawn changes one of his assumptions, Excel will automatically recalculate the budget numbers.
b) Shawn would use sensitivity analysis to check the impact of changing his price.
c) Shawn would use roll-up to review his summary numbers.
d) Shawn would use what-if analysis to check the impact of changing his price and the commission he
pays his sales people.
e) Shawn would use goal-seeking analysis to examine the impact of changing his forecast of units sold.
Answer: a
Title: Testbank Question 5.82
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
83) Shawn is doing some budgeting for his new start-up business. He has developed a budget in Excel
using formulas, as he was taught to do in college. He would like to check the impact of changing his
price and the commission he pays his sales people. Shawn will be doing:
a) What-if analysis
b) Qualitative analysis
c) Sensitivity analysis
d) Goal-seeking analysis
e) A simulation.
Answer: c
Title: Testbank Question 5.83
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
84) Shawn is doing some budgeting for his new start-up business. He has developed a budget in Excel
using formulas, as he was taught to do in college. He is fairly confident about his estimated expenses.
He is also sure that his current price is the best price he can get for his product. He would like to know
how many units he needs to sell at that price (and his cost per product from his supplier) to cover his
expenses. Shawn will be doing:
a) What-if analysis
b) Qualitative analysis
c) Sensitivity analysis
d) Goal-seeking analysis
e) A simulation.
Answer: d
Title: Testbank Question 5.84
Learning Objective 1: LO 5.3 Explain the value that different BI applications provide to large and small
businesses.
Section Reference 1: 5.3 Business Intelligence Applications for Data Analysis
Difficulty: Medium
85) Amanda is working for the CEO of a small company. He asks her to develop a dashboard. Amanda
starts thinking about the questions she needs to ask. Which of the following questions would not on
Amanda’s list?
a) How many levels do you wish to drill down?
b) What are your key performance indicators?
c) Do you need real-time data?
d) Do you want graphs and charts or text?
e) Should it run on your iPhone?
Answer: c
Title: Testbank Question 5.85
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
86) Amanda is working for the CEO of a small company. He asks her to develop a dashboard. Amanda
starts thinking about the questions she needs to ask. She asks her boss for his critical success factors and
how he will measure them. The measures of CSF’s are called
a) clustering
b) classification.
c) real-time data
d) key performance indicators
e) status access
Answer: d
Title: Testbank Question 5.86
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium
87) Amanda is working for the CEO of a small company. He is trying to make a strategic decision about
a new product. He has asked Amanda to build a model the represents and simplifies the problem.
Amanada’s boss is in the ______________ phase of the decision-making process
a) implementation
b) choice.
c) design
d) intelligence
e) consideration
Answer: c
Title: Testbank Question 5.87
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
88) Elena is trying to decide whether she should expand her ice cream shop to a bigger space. She
decides to be very methodical about it and follow the phases of the decision-making process she learned
in college. Which of the following statements is true?
a) During the intelligence phrase, Elena will build a model using assumptions about the business.
b) During the design phrase, Elena will define the opportunity.
c) During the choice phase, Elena will lay out her options.
d) During the implementation phase, Elena will implement two of her solutions.
e) Elena will use test data to validate her model.
Answer: e
Title: Testbank Question 5.88
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Hard
89) Elena is trying to decide whether she should expand her ice cream shop to a bigger space. She
decides to be very methodical about it and follow the phases of the decision-making process she learned
in college. She has developed a few alternatives. Elena is in the ______________ phase of the decisionmaking process
a) implementation
b) choice.
c) design
d) intelligence
e) consideration
Answer: b
Title: Testbank Question 5.89
Learning Objective 1: LO 5.1 Explain different ways in which IT supports managerial decision making.
Section Reference 1: 5.1 Managers and Decision Making
Difficulty: Medium
90) Elena is trying to decide whether she should expand her ice cream shop to a bigger space. She
decides to be very methodical about it and follow the phases of the decision-making process she learned
in college. She has developed a few alternatives. Elena built a model in Excel so she could test her
assumptions. This is an example of
a) decision support system
b) digital dashboard
c) functional area information system
d) group decision support system
e) expert system
Answer: a
Title: Testbank Question 5.90
Learning Objective 1: LO 5.4 Offer examples of how businesses and government agencies can use
different BI applications to analyze data
Section Reference 1: 5.4 Business Intelligence Applications for Presenting Results
Difficulty: Medium